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November 20, 2014
A proposal to develop a multi-million dollar dairy project based on farms in the South Burnett was discussed in a Senate Estimates hearing today.
This follows confirmation that Hope Dairies, which is controlled by Gina Rinehart’s Hancock Prospecting, has already begun purchasing farms in the South Burnett area.
Representatives from the company briefed South Burnett Mayor Wayne Kratzmann and Member for Nanango Deb Frecklington separately about the $500 million project yesterday.
Hope Dairies aims to supply up to 30,000 tonnes of infant formula a year to China.
Milk would be raised from farms in the South Burnett and then shipped to a specialist drying plant which would be built in the Mary Valley.
However, the ABC reported this afternoon that Liberal Senator Richard Colbeck, from Tasmania, told a Senate Estimates hearing today the deal may have to be scrutinised.
China CAMC Engineering Co, a subsidiary of a Chinese Government-owned China National Machinery Industry Corporation, is a minority shareholder in Hope Dairies.
“I’m not aware of the complete details and as the (Department of Agriculture) Secretary has said, any investment that might eventuate from the proposal would be worked through with the Foreign Investment Review Board,” Senator Colbeck told the Estimates hearing.
Gina Rinehart and representatives from Hope Dairies signed a Memorandum of Understanding with the State Government on Saturday.
The company estimates 350 jobs would be created during the construction phase of the project, and 480 would be created during the operational phase, which is expected to begin in the second half of 2016.
Three hundred of those jobs have been forecast to be in the South Burnett, where Hope Dairies aims to create a 16,000-strong dairy herd.
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Several questions
1. In 2014 cattle producers in the South Burnett have had to reduce their stock numbers because of the shortage of both feed and water. Rainfall in 2014 so far has been less than half our yearly average. Can someone explain how could the South Burnett have supported an extra 16,000 dairy cows this year?
2. How many litres of milk is needed to produce one tonne or 30,000 tonnes of dry milk powder?
3. How many people believe that a Chinese company will employ South Burnett workers on this project when they can bring in their own cheap labour from China as they do in the Chinese owned Tully sugar mill?
Great to see a member of the management committee of the hillbilly social club aka South Burnett Resident’s Action Group SBRAG supporting much needed investment in our region (sarcasm). What lightweight questions! How backward thinking is SBRAG?!
As if Rinehart would do anything other than something that would be of financial gain to herself.
She is a person that believes Australians should work for her at $2/hr while she earns around $600 per second. You can guarantee she is not looking to benefit the local area of her choice.
Queensland cannot even produce enough milk now as have to import from interstate just to supply our own needs. Around 100 million litres short to put a figure on it. The continual depletion of dairy farms has almost destroyed the entire milk industry. Mainly from the duopoly supermarkets, continual harsh weather and farming times and struggling financial compensation from milk production, I can not see a magic solution from an intensive farming exercise in an area which may not be suitable.
Of course it would have nothing to do with the mineral resources contained underground within the Mary Valley area that has had any impact on the placement of this industry.
If the dairy farmers actually believe that their on-farm price will increase due to Rineharts’ fanatical approach to money, unfortunately they will be sadly mistaken.
The other major concern is that Barnaby Joyce considers this to be a wonderful idea. If that doesn’t rate alarm bells, nothing will.
It appears some politically minded people still support the old saying “if you cannot discredit the message, then shoot the messenger”. An astute businessman will always keep a cool head and consider all the possibilities. While some people may still believe in Santa, I find it difficult when Santa is actually the boss of a big mining company and Santa’s helpers are a Chinese Government owned company.
The South Burnett doesn’t need another “Cougar”. Incidentally, if people posting a comment on this site were to use their correct names rather than hiding behind imaginative nom de plumes, it may add a little creditability to their opinions.
Terry – If you care to look at the Comments section on any major newspaper website you will note that nom de plumes are extremely common. We publish comments that we believe raise a new point or advance an argument. All IP numbers are logged.
And Santa’s deer would currently die in the current drought here in the South Burnett…maybe Gina Reinhardt has a scheme in mind to pipe water from Nth Qld… needs and could be done, but would she??
Water and its availability will determine where this dairy farm will be centred with the Mary Valley well ahead of the South Burnett.
The South Burnett consists mostly of dry land farming with lands purchased in this area most likely used for fodder production given the limited water supply available for irrigation including under ground reserves. The proposed dehydration plant is to be located in the Gympie regain.
For every litre of milk produced, a cow needs to drink at least three litres of water. For high performing cows this could be 150 litres of water every day, 2,400,000 litres each day for the herd. Not included are irrigation for cropping and water consumption withn the milking shed and the processing plant.
Depending on availability of dairy cattle in the marketplace, production will take years to reach full capacity. A cow only starts to produce milk once her first calf is born. Cows typically have their first calf when they are around two years old.
There may be a small gain in employment if other grain and fodder production dependent industries are not affected.
For the pork industry and cattle lot feed industry, added competition for grain and hay will add costs to their operations and may spell the end for many smaller producers in these industries.
Gas and coal deposits are in this area and recent changes to resources legislation would make the application process to mine or extract gas little more then a formality with locals unable to object to land usage changes.
Two videos about intensive dairying in the US: https://www.youtube.com/watch?v=zDo5c-ksmRs and https://www.youtube.com/watch?v=yBrHdxUwLVc
You lost all credibility Jack by quoting what US farmers do, they would have to be the most inefficient farmers of any. Jack, please leave the farming Australian style to those who know…
re. “Progressive Thinking Farmer”
Not progressive, not thinking, and definitely not a farmer. Farmers are not normally infected with so much vitriol.
The two comments that you have attacked both contain very good substance and do appear to be written by people who appear to know what they are on about. A very worthwhile addition to this mostly very useful forum which I would not like to see wither because of some pettiness…
Your first comment here was only to totally insult and criticize SBRAG. What is SBRAG?, And what does it have to do with the important news item, so mate chill out and move on.
Your next comment was rather silly as in my view “Jack Black’s” comments were right on the money.
The links he put up were really well worth watching especially for people not versed in intensive animal production techniques.
Your comments on efficiencies have no relevance here at all.
You do sound as if you are a obsequious sycophant of the perceived “establishment”!
The Mary Valley is already pushing very hard for “new water” for their region {there are three probabilities for sites}. The Kingaroy region has no new water availability sites, Murgon/Wondai does have a site.
Jack, in your comment you mention coal and gas deposits. I suspect if minerals are a part of the equation I suspect there is another mineral not mentioned which will in the near future feature heavily on the world stage. Gina is not silly…
Anyway, Go Jack! I always admire your frank and decent comments on all the subjects that you choose to comment on.
Glenn, If you want to see vitriol you should check out the SB RAG website and you’ll see what these people say about local councillors and business people personally. Pull Terry up first about what his group has been saying first before attacking others…
Could you tell me what you or Jack know about dairy farming that the industry group doesn’t know about dairy farming? It seems the industry group is right behind it and the jobs to come.
I’m just sick of the crap that comes from people who don’t know what they’re talking about but yet claim to want the best for our region.
P.T.Farmer. Where do you get off on the idea that I or Jack or Terry are actually opposed to the mentioned development. You are dreaming! Asking questions is not opposition. It is caution which is sorely needed. Surely you must agree.
As for experience, I left secondary school over 55 years ago, into dairying with as large a herd as most of the dairy farms around this area. Those days most or all S.B. towns had a dairy factory and also a few villages ie. Tansey and Yamsion, I think. We even had a real live working railway all the way to Windera and Proston and all places in between. I do know how hard it is to get enough good quality tucker into the cows to keep up good production. I have also had enough experience with irrigated cropping having owned an 960 meg allocation. I also have had Council experience with intensive animal production applications and approvals and denials of approval.
I do hope the project goes well for everyone concerned as well as the community and region. No doubt a lot of people will prosper, in the short term at least. Only time will tell for the long term benefits though. By then I will be past caring!! By the way not all the dairy farmers are jumping for joy yet.
P.T. Farmer you have produced no information to support this project, water availability, the effect on other industries and adjacent properties etc.
“In your comment you mention coal and gas deposits. I suspect if minerals are a part of the equation I suspect there is another mineral not mentioned which will in the near future feature heavily on the world stage.”
Yes, Glenn you are correct. There is a variety of mineral deposits in this area and throughout the region including gas, coal and uranium.