Indigenous Land Corporation gpo box 652 Adelaide sa 5001

Challenges and opportunities

The 2013–14 year proved to be very challenging for the Queensland cattle business. Much of western Queensland experienced its second consecutive failed wet season and this resulted in unprecedented numbers of cattle being sent to market for the second year in a row with the Queensland cattle market paying low prices as a result. The average price received for all ILC cattle sold in Queensland was $382/head, compared to an average $629/head for all ILC cattle sold in the NT and an average $569/head for all ILC cattle sold in WA. The higher average prices in the NT and WA were a direct result of a significant improvement in the demand for live export cattle sold through Darwin and Broome.

However, the ILC was able to take advantage of the long drought being experienced in Queensland and the strong live export market in the NT by purchasing 2,143 weaner cattle from other Queensland producers in October 2013 and transporting them to the ILC NT properties Gunbalanya Station and Banka Banka West where they are being grown to live export target sale weight.

Looking forward

The buying strategy described above will be implemented again in 2014–15 with the Bureau of Meteorology indicating a high probability of an El Niño developing in 2014. For Australia, El Niño is usually associated with below-average rainfall over southern and eastern inland Australia, with about two thirds of El Niño events since 1900 causing major drought over large parts of the continent.

This forecast indicates that there is a high probability of drought affecting the Banana district properties and Mimosa in QLD, and plans to manage this risk have been developed. For 2014–15, with the continuing good prospects of the live export market in the NT and the security of good quality pasture on the Gunbalanya flood plain, the ILC is planning to transfer 2,500 weaner steers from the Queensland breeding properties to Gunbalanya Station to be grown to live export weight for sale out of Darwin. In addition to these internal transfers, the plan includes a budget for Gunbalanya Station to purchase 1,000 store steers from other drought-affected Queensland producers in July–August 2014.

During 2013–14, the LAMBET Committee, worked on developing a new strategic plan for the ILC’s agricultural businesses to ensure the ILC maximises opportunities for Indigenous Australians in the agricultural industry. The strategic plan is based on the concept of using the experience and knowledge built up by the ILC over the last 15 years to increase the benefits delivered to Indigenous people by increasing the area of land managed by the ILC, doubling the size of the ILC herd over the next five to 10 years and thereby doubling the size of the ILC agricultural businesses. At the same time, the ILC will continue to operate existing ILC agricultural businesses while striving to improve business efficiency and profitability and maximise Indigenous employment.

The ILC agribusiness strategic plan is based on complementary strategies of consolidation and diversification. Opportunities under the consolidation strategy support the delivery of Indigenous benefits through maximising and leveraging the existing positioning of the ILC in the pastoral industry. This strategic approach deepens the ILC engagement within existing regions, markets and industries beyond business as usual through additional resource investment. Opportunities under the diversification strategy support the delivery of Indigenous benefits through expanding the regions, industries, markets and/or activities undertaken by ILC pastoral businesses through additional investment.