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Eco Capitalism
Wave of Innovation

By Juliet Duffy

A sustainable wave of innovation and alternative thinking will be required to manage the next “eco” industrial revolution.

After many years of managing our scarce water resources in regional Australia, it has finally hit the media stage and political agenda and is now considered critical and of national significance.

It is hard not feel that it is too little too late or that heaven forbid is just political opportunism. Australians impact one of the biggest ecological footprints in the world according to a recent report by the WWF.

Basically the amount of land and water we use is 6.6 global hectares per person to support our lifestyle, desalination plants and more promises of dams would appear to be politically motivated and short term band aids as opposed to long term sustainable management and conservation of our resources.

Historically it is hard not to be skeptical of the federal government who is finally showing commitment to manage what is essentially a global resource in a closed system. Irrigators and communities in regional Australia will welcome the management of water resources on a federal level as opposed to in-fighting between the States, water has no boundaries it is a global community resource.

We are all aware that climate change will continue to significantly affect our regional economies as we are highly dependant on water resources for agricultural, manufacturing and mining processes.

Coupled with the de-population of many rural communities’ this places significant pressures on the long term sustainability and viability of regional Australia. The development and implementation of adoption strategies will require the active involvement of all spheres of government, business and the community.

Professor David Mitchell of the School of Environmental Sciences, CSU Albury Campus, proposes that to effectively manage our water now and into the future we need to think laterally and to be adventurous in finding solutions.

Australia needs to manage its water resources effectively whilst ensuring that agribusiness and regional businesses earn a living in periods of water extremes, investment into long term planning is imperative. What if…in 1 out of 5 years where rainfall records historically say that it will be too wet or too dry for production, farmers and the services businesses are contracted by the Catchment Management Authorities (CMAs), to undertake work that will assist to remediate and make the land more environmentally sound?

The agribusiness sector has the intellectual property, equipment and labour to undertake such contracts; it will reward the farming enterprise and the community for future generations, and will shift away from the handout mentality.

These are successful and proud business people who have unfortunately at the core of their business model, the reliance and dependence upon water to ensure business success.

Snapshot: Team Irrigation Pty Ltd
Web: www.teamirrigation.com.au
Phone: 6885 5220

Company Structure:private Company, with two Directors; Craig Chandler and Bob Johnson. Both Directors had worked in the irrigation industry, Bob was an engineering and installation technician and Craig was in design and project management, and has proved to be a good complimentary marriage of skills for the business.

Established: In 2003, and working capital from agreement on consignment of stock, based upon an actual sale of machinery. Worked for two years off Bob’s farm in a rented portable office, stock was stored on the property, and had workshop facilities. Prior to rented site Craig worked out of the family bedroom.

Primary Products or Services: Articulated Pivots, Centre Pivots, Control Systems, Lateral Move Irrigators, Machinery Servicing, Mini Pivots, New Machinery, Pumps, Sprinklers, Waste Water Management,

Main Customers or Clients: Farmers, other industry niches include Dairy, Councils, Diversification approaches in specific industries that maybe experiencing oversupply, for example the wine industry, diversifying into cattle production, Biofuels for production of the energy mass eg corn, canola, Agricultural practices shifting away from flood irrigation, to adopting a more controlled and efficient irrigation technique. Water allocations are constantly changing, so Team Irrigation works with the farmers to maximise the use of their water through more efficient practices and equipment.

Office or Plant Locations: Dubbo is the head office; however they service entire NSW and Northern Victoria.

Number of Employees: 6 staff and trying to recruit 2 trainees

Environmental: The whole business has been built around water management, what is the most efficient way of putting water onto the ground.

Industry Prediction: Water metering is the other part of measurement of flow, $10 billion dollar plan proposed from the Federal Government will include metering and the changes to open flow channels. Irrigators will have to have an accurate flow meter and be accountable for every MgL of water they use or don’t use. The big push will be onto water licenses that are not used, “sleeper licensees” will be cut to make regional production more sustainable. A big push from the regulators will be inefficient methods and techniques will become redundant, the more efficient spray and drip irrigation will be promoted and enforced through more mechanised monitoring techniques.

Top impediments to Regional Business: Water, Skills Shortages, Infrastructure in regards to freight and lack of adequate freight rail system, the amount of trucks on the roads are only going to increase. Price of fuel imposed onto regional businesses, for example one of our freight companies fuel levy increased to 15 per cent.

“We have reached the limit with our certainty of water supplies, businesses can not be solely dependant upon water, and it should be viewed as an opportunity when it is available,” Professor Mitchell said.

Team Irrigation is a regional firm that is starting to see the shifts in water management first hand, including the realisation that it is not a dependable resource.

Craig Chandler a Director of Team Irrigation genuinely expressed concerns about business survival for regional Australia, if, like Professor Mitchell stated, we do not think outside the square and approach water management with innovation, long term solutions, capacity building and improvements to our existing water infrastructure.

Businesses maybe allocated water, but if there are no water allocations there is no business. Team Irrigation services regional NSW and Northern Victoria (see Business Snapshot for more information) and have experienced first hand the effects of no longer having a dependant water supply.

“The situation is serious, we have not undertaken any work for 2 years in the Hunter or Lachlan Valley's because there has physically been no water allocated to irrigators, and the Macquarie Valley is critical as we only have 3 to 4 weeks of supply remaining,” Craig stated.

Having an understanding of the effects this is having on regional businesses Craig also found that there was confusion about federal and state government assistance that is available, professional business people are not familiar with the grants and welfare system.

Tenders and undertaking meaningful work that would provide long term community and economic returns and in turn build our capacity would be a much more sustainable approach to providing assistance in the water extreme years.

Regional businesses have not failed, they just haven't been provided with the resource – water; that is critical and at the core of their businesses making a living, we need business and community leaders that are challengers and are adventurous enough to make long term sustainable decisions.

The Federal government is proposing to modernise regional irrigation infrastructure through a $6 billion dollar investment, over 10 years and estimate they will find an extra 3600 billion litres of which only 1800 billion litres will be returned to regional economies, which should equate to an extra $1 billion in gross value terms for food and fibre through efficiency gains.

Need More Information?
Juliet Duffy is the Managing Director of Wireless Marketing Pty Ltd and can be contacted on (02) 6885 5361 or by email on juliet@wirelessmarketing.com.au.

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