THE ROLLING out of close to $100 million to upgrade key cattle roads in the north has been hailed a major step toward unlocking the potential Asia is presenting for Australian agriculture.
However, beef industry leaders have been quick to label it ‘just the first step’, given the $3 billion plus they estimate is required to bring road infrastructure in the north up to scratch.
In the breakdown of yesterday’s funding announcement under the Federal Government’s Northern Australia Beef Roads Program, Queensland will receive $56m, the Northern Territory $30m and Western Australia $12.
Key work will include major upgrading to flood-prone and dangerous sections of the Barkly Stock Route and Tablelands Highway in the Territory and upgrades between the Gracemere saleyards and the Rockhampton abattoirs in Queensland to provide access for type one road trains.
The process of developing a priority list for beef road work in the north had been robust and thorough and had delivered a long and detailed list that would justify an annual $100m northern beef roads program, industry leaders said.
Northern Territory Cattlemen’s Association chief executive officer Tracey Hayes said the two NT projects were essential pieces of beef road infrastructure and the work would make a real difference to the future development of the northern cattle sector.
NTCA was also very pleased with the proportion of the $100m northern beef road funds it received, she said.
Allocation of funds under the program drew on the CSIRO’s state-of-the-art logistics modelling, which for the first time looked at the whole cattle supply chain, economies and communities rather than just cattle numbers and population.
“We argued strongly for a significant allocation which reflects the vast trucking distances involved between our stations and markets, and our industry’s dominant role in the broader economy,” Ms Hayes said.
“It’s difficult for us to compete on traditional cost benefit analysis - this tool added rigour to the analysis and allowed us to justify our position.”
The NTCA wants the beef roads program to be become an ongoing initiative so as to build on the cooperative platform established between government and industry.
“The submission process has resulted in a blueprint for critical infrastructure spend required across the north of Australia and it is important we utilise that resource for future strategic allocation of funds - we don’t want to see it sit on a shelf and gather dust,” said Ms Hayes.
Chief executive officer of Consolidated Pastoral Company Troy Setter agreed.
“We now have an objective and detailed list of projects and we’d like to see the Federal Government commit to $100m a year, matched by the States where possible, so we can continue to develop northern Australia to reach full potential,” he said.
Director of Australian Agricultural Company David Crombie said there was so much generational opportunity presenting for northern Australia with the growth of demand for quality food, mining supplies, tourism and much more.
“For us to take advantage, the supporting infrastructure must be there,” he said.
“The process has been very good - strong consultation with input from all stakeholders, particularly transport operators who are the ones who best know the problems.
“These funds are not a total network but it will deliver efficiencies.”
AgForce cattle president Bim Struss said Queensland transported the largest volume of cattle in Australia by road over long distances for supply to markets, feedlots, saleyards, abattoirs and ports, so funding for improved transport networks was warmly welcomed.
"Queensland is home to about half of Australia's cattle herd and employs about 20,000 Queenslanders so an investment in the industry is an investment in the state's future," he said.
Cattle Council of Australia chief executive officer Jed Matz said many producers in Northern Australia were forced to use sub-standard road networks to get to their nearest town or transport livestock.
“Transport inefficiencies can cost producers up to 40 per cent of the price received," he said.
“Upgraded roads will alleviate the cost burden on producers caused by second-rate road infrastructure and benefit the whole supply chain."