Category Archives: Cost-price squeeze

advocate, Coffs Coast, Corporate control of food, Cost-price squeeze, Fair Food Week, Farmers Markets, Local and regional food economies, New market mechanisms, Small-scale farming, Supermarket Duopoly

Crowd-funding for farming

A version of this article first appeared in the Coffs Coast Advocate on Saturday, 28th September, 2013

It’s been said many times: there is a crisis of profitability in Australian agriculture. Many factors are involved, including drought, the high Australian dollar, softening commodity prices, and the market power of the duopoly.

In May this year the Australian Financial Review reported that ‘at least 80 farming operations worth more than $1mn across Australia are in receivership or some form of financial distress.’

Debt levels feature prominently in this picture. According the Australian Bureau of Agricultural Research Economics and Science (ABARES), total farm debt for broad-acre farms averaged $476,000 as at 30 June, 2013. For dairy farms, average farm debt was $701,500. Debt levels in the Queensland beef industry have increased 500% in under 20 years, with most of the increase coming in the post-GFC period.

Commenting on the AFR report, financial blogger Steven Johnson of Intelligent Investor wrote,

“Any Australian farm funded with more than 50% debt is a Ponzi operation. There are thousands of them.”

Low interest rates bring some relief, and have been welcomed by the NFF. Before it left office, the ALP introduced a two-year Farm Finance package worth $420 mn of concessional loans (interest-only payments for 5 years, before reverting to market rates). But in the absence of a genuinely ‘farmer-friendly’ national food policy (which would likely include substantial tax breaks), this package, which is also supported by the incoming administration, may simply be deferring the inevitable.

At the other end of the scale, smaller scale farmers selling into niche local markets are successfully exploring a different financing alternative: crowd-funding. With its origins dating famously to Joseph Pulitzer’s 1884 campaign that raised $100,000 from 125,000 people to complete the pedestal of the Statue of Liberty, crowd-funding has really taken off alongside the rise of the social network era of the internet. US platforms such as IndieGoGo, GiveForward and KickStarter have helped artists, musicians and others raise tens of millions of dollars, mostly in small donations from large numbers of individuals, to enable them to make music videos, write books, fund travel and a host of other projects. Pledges are made securely via encypted software (using a credit or debit card), as you would do if you were purchasing a book on Amazon.com, and typically are only redeemed if the campaign reaches 100% of its target figure within the alloted time frame.

In Australia, the Pozible website (www.pozible.com) was launched in May 2010, and by August 2013 had raised $13 mn for more than 4000 projects. These have included in the past few months: $12,000 to send 5 Australian farmers to the Via Campesina global conference in Jakarta (June 2013), $27,570 to finance an on-farm butchery at the free range heritage pig farm, Jonai Farms in Daylesford, Victoria (June 2013), and $29,250 to finance the making of Just Food, an Australian-first Fair Food documentary (August-September 2013).

In the Coffs region, the owners of Nana Glen Synchronicity Farm, Josh and Tomoko Allen, recently launched a pozible campaign, seeking to raise $30,000 to finance a ‘gourmet food hub’ based on their property. As well as creating a farm-gate store which will be an additional market outlet for local producers, they intend to build a community facility for educational workshops on organic farming, permaculture, aquaculture, shitake mushroom farming and a venue for long table farm lunches to support access to good food for community members on low incomes.

Synchronicity Farm Stall, Coffs Harbour Harbourside Market
Synchronicity Farm Stall, Coffs Harbour Harbourside Market

Josh and Tomoko sell their heirloom fruit and veg at the Sunday Harbourside Market and the Nana Glen general store. Their campaign has around one month to run.

The project is in its early days, but it would make an important addition to food retailing diversity for this region. The food hub sector in the US is booming, with over 100 now in existence. It’s also starting in Australia, with projects in Casey, Trentham, Shepparton and Kyabram, amongst others. For more information, visit www.foodhubs.org.au.

Coffs Coast, Corporate control of food, Cost-price squeeze, Fruit growing, Local and regional food economies, Retailers, Small-scale farming, Supermarket Duopoly

A long road to Paradise


In August last year Master Grocers Australia (MGA), a national employer organisation which represents independent grocery supermarkets and liquor retailers in Australia, released its ‘Let’s Have Fair Competition!’ report, calling for regulatory reform to redress alleged abuse of market power and anti-competitive practices that MGA claimed Australia’s supermarket duopoly – Coles and Woolworths – were engaging in.

The Executive Summary of that August 2012 report claims that the duopoly, through tactics such as ‘price discrimination, shopper docket schemes, store saturation and over-sized store strategies [building huge supermarkets in small local markets in order to drive out existing competition and prevent new market entrants]’, is ‘crowding out all competition [and] rapidly reducing the choices in shopping format, brands, locally-derived products and service levels’.

Faced with inaction on the part of policymakers, the MGA released in August this year a follow-up report, ‘Finding a Solution’, which makes a number of specific proposals for reforms to the Competition and Consumer Act to achieve the MGA’s goal of a fairer grocery retail market in Australia.

These are issues that Gary Gardiner, co-proprietor of Paradise Fruits, a small fruit, veg and grocery shop in Sawtell, is all too familiar with.

DSC_0127

 

Gary’s family has been living and farming on small acreages in the Boambee / Coffs Harbour region since about 1890, first in middle Boambee, then to Stadium Drive, and finally on Sawtell Road.

“The original farm was developed as a diverse farm, with dairy and small cropping. In the early 1900s my family did a run to Bellingen and Nambucca to supply the local shops and markets”, Gary told me.

A century ago, family farming on a small property in this region offered a viable livelihood.

“In the older days, 10 acres was about what one family could manage on their own. Any bigger than that, you needed multiple families and / or outside workers”, Gary said.

“Most farmers grew a commercial crop – usually bananas – supplemented with other, smaller, cash crops, like tomatoes, cucumbers or zucchinis. The income from the smaller crops was what they lived on, and what they produced commercially just about covered the costs of running the farm itself”, Gary said.

There was also a strong ethic of self-sufficiency. “Back in those days, most of the food the family ate was produced on the farm as well. That was certainly true during the Depression era – and even we still did that up to the 1970s”, Gary added.

Gary Gardiner
Gary Gardiner

As the food supply chain in Australia became steadily more centralised over the decades, the viability of the small-scale, diversified family farming model was increasingly threatened, as Gary explained:

“About 24 years ago, we were still growing bananas and small crops, and around that time we set up ripening rooms so we could supply the two Coffs Harbour independent supermarkets, Cox’s, and Tucker Bag. But they could only take 10% of our production. But the profit we got from that 10% equalled the returns we got from the other 90% going through the mainstream marketing system.”

“That’s how much we were all getting ripped off”, Gary remembers. “So we [aimed to] take out the middle men. And when you do that, you have a chance of actually making a living [as a grower].”

“It’s basically the difference between being a price-maker and a price-taker. If you were selling to the [central] markets, new cartons had to be used, so you had to buy those – $1.50 each. Freight – $1 per carton to get the product to market. Agent’s commission – $3 a carton back then. We were only getting $10 a carton.”

“And during the summer, when there was a glut, we got nothing back at all. You’d be doing all of that work, carrying all those costs, and you’d actually be paying to send your product to market, and you’d get nothing for it.”

Cox’s and Tucker Bag closed their doors not long after Woolworths opened, in the late 1980s. We’ll hear Gary’s thoughts on the impacts of the supermarket duopoly next time.

advocate, Corporate control of food, Cost-price squeeze, Food policy, Global hunger, National Food Plan, Supermarket Duopoly

A food plan for corporate agribusiness

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A National Food Plan, but not for us

A version of this article first appeared in the Coffs Coast Advocate on Saturday 20th July, 2012

On 17th July, the Federal Government released its green paper for a National Food Plan. This is the next step in the development of Australia’s first-ever national food policy. The first was the release, in June 2011, of an Issues Paper, followed by a two-month period of consultation and invite-only roundtable discussions. The green paper will also be followed by a two-month period of public consultation, and I’ll provide the relevant link at the end of the article.

During the first phase of public consultation, 279 written submissions were received from Australians, many of them from ordinary members of the public, and from community groups and small farmers. One of them was Graham Brookman, CEO of a permaculture farm (foodforest.com.au) in Hillier, SA, which produces 160 varieties of fruits, nuts and vegetables.

DAFF

The Food Forest is a family farm, run by Graham, his wife Annemarie, and their two children. The family’s aim is to ‘ demonstrate how an ordinary family, with a typical Australian income, can grow its own food and create a productive and diverse landscape’.

Graham took the trouble to write 13 pages in his submission to the National Food Plan consultation. He pointed out that ‘the dogma that internatioanl free trade will solve food insecurity has been proven to be faulty over centuries, billions continue to starve while others die of obesity in a world with relatively free movement of food’.

This would seem to be a simple statement of facts. Close to half the world’s population is malnourished in one form or another, either because they have inadequate intake of key micronutrients, or excessive intake of the wrong types of (highly processed) foods. Free trade, vigorously pursued by Australia and many other countries for the past few decades, has not resolved these issues; indeed there is a good argument that it has made them worse.

But in the green paper, the Federal Government has shown, to quote a(n) (in)famous lady, that ‘it’s not for turning’ when it comes to free trade. On the contrary, it’s full steam ahead on the trade liberalisation agenda, and we can expect increasing amounts of food imports. The Government wants your opinion on free trade – but only for suggestions on how Australia can export more, not whether the free trade agenda itself might require further thought.

Then Graham pointed out that the impacts of climate change, peak oil and geopolitical instability mean that ‘the whole food system needs rethinking and massive effort needs to go into rebuilding the skills of our agricultural producers such that the nation can remain domestically food-secure’.  To the free trade dogma, Graham adds the ‘free market dogma [which] has given Australia the duopoly of Woolworths and Coles who have driven farmers from the land by reducing profit margins for producers to miniscule levels and requiring them to use every technical device available to maximise yields.’ Broccoli crops in the Adelaide Hills, he points out, are ‘sprayed with biocides approximately 30 times to meet the cosmetic standards of the supermarkets.’

But Graham and the Government are inhabiting parallel universes, it seems. According to the green paper, Australia ‘has a strong, safe and stable food system’ and ‘Australians enjoy high levels of food security’; our food industry is ‘resilient and flexible’ and we ‘have one of the best food systems in the world’. A key plank of our national food strategy should be about us becoming ‘the food bowl of Asia’, in the Prime Minister’s words. This is a frankly preposterous example of wishful thinking, given that even on the most optimistic scenarios, Australia would supply food for no more than 1% of Asia’s 3.5 billion people.

So it’s no surprise that Graham, on reading the green paper, wrote to tell me that, ‘in terms of a sustainable food future for Australia there is virtually nothing in the ‘national food plan’ or its structure that is acceptable’.

There’s a simple reason for this: the ‘National Food Plan’ is actually a Plan for corporate agri-business and retailers, not ordinary people. If we want a food plan that meets our needs, we’ll have to work on it ourselves.

occupy_our_food_supply_new

If you want to read the green paper and tell the Government what you think about it, follow this link: http://www.daff.gov.au/nationalfoodplan/process-to-develop/green-paper.

Update: 8th November 2013

Following the election of the conservative Liberal-National Coalition, led by Tony Abbott, there is considerable doubt about the future of the National Food Plan. Apparently the new administration is not that happy with it, and the proposed Australian Council on Food has already been abandoned. This is not to suggest that we are likely to see a change of tack on free trade or any other aspects of the big corporate agenda. On the contrary, we are likely to see an intensification of that agenda, via the so-called ‘Northern Foodbowl Plan’, of which more in a later post.

 

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advocate, Corporate control of food, Cost-price squeeze, Demographic crisis, Ecological constraints, Food sovereignty, Growth paradigm, Local and regional food economies, Small-scale farming, Supermarket Duopoly

The poverty of farming in the Tweed

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The poverty of farming in the Tweed

A version of this article first appeared in the Coffs Coast Advocate, on 10th December 2011

Last time I introduced Tweed mango grower Mike Yarrow, whom I met recently while in Murwillumbah as part of a team working with the Tweed Council to prepare a strategy for sustainable agriculture.

Mike would like this process to be a success, but he believes that it’s ’30 or 40 years too late’, at least in the case of him and his wife; and other farmers of their vintage (Mike is 67), which is the vast majority of farmers in the region.

Your problem as I see it”, he told us, “is that we, the farmers, have reached the end of our working lives. There are no new young farmers.

The aging of the farming population is an issue that affects the country as a whole. By far the largest category of farmers in Australia is in the 65+ age bracket. In this as in other aspects of food policy, the Federal Government has made the complacent assumption that there is really nothing to worry about, and that what objectively appears to be a demographic crisis will simply correct itself over time. Projections issued after the Australia 2020 Summit in 2008 saw the age of the average Australian farmer peaking in 2011 at just under 55 years, and then gradually declining past 2030.

mangos

Yet no convincing explanation was given as to where the next generation of Australian farmers would come from. On the contrary, all the indications are that the decades-long trend of an aging rural workforce is likely to continue. According to Mike Yarrow, the heart of the issue lies in what he calls ‘the deliberately destroyed profitability’ of farmers.

In Mike’s view, successive Federal Governments wanted ‘to keep the lid on industrial unrest by keeping the gap between a worker’s income and the cost of living apart’. He recalls that when he and his wife arrived in Australia in 1974, petrol was 7 cents a litre, and the minimum wage was $1 an hour. Both have since risen about 20-fold, in line with general cost of living increases. A box of fruit, on the other hand, was $10 in 1974 – and hasn’t gone up much.

You could take issue with Mike; dismiss him as a conspiracy theorist; say that the Government has never intended to screw farmers; that it’s simply a case of the way the markets (and supermarkets) operate. But that’s exactly his point.

By de-regulating rural industries, opening Australia to cheaper imported produce, and generally ‘letting market forces rip’, the market has done what it always does. It’s a competitive system, and it produces winners and losers. In this case, the losers happen to be the majority of Australia’s farmers, and the big winners have been Australia’s two major supermarkets, whose market share has more than doubled since the mid-1970s.

You could argue that in delivering ‘cheap food’ for shoppers, the Australian public as a whole have also ‘won’ in this process.  Yet as five farmers continue to leave the land every day, and very few are stepping into their shoes, the question remains: who is going to produce our food for the rest of this century, and beyond? Agriculture may be less than 3% of Australia’s GDP, but to understand its significance only through an economist’s eyes is unbelievably naïve and short-sighted.

At a deeper level, Mike is quite right. The market system – capitalism – has always depended on ‘cheap food’, in one form or another, to drive its major cycles of expansion. In the Industrial Revolution, it was sugar from the slave plantations of the Caribbean. Last century, it was the mountains of corn made possible by hybrid seeds, agro-chemicals and cheap oil. This century they tell us agricultural productivity will be driven by ‘environmentally-benign’ GM technologies. Meanwhile, food prices are starting to rise, and food riots are becoming more common. Food is too important to take for granted, and so are farmers. We need to be asking some hard questions.

advocate, Cost-price squeeze, Local and regional food economies, Small-scale farming

Sustainable Agriculture in the Tweed

Sustainable Agriculture in the Tweed

A version of this article first appeared in the Coffs Coast Advocate on 26th November 2011

The Tweed Shire Council is preparing a strategy for Sustainable Agriculture. This is part of the multi-faceted Northern Rivers Food Links project, in which the seven councils of the Northern Rivers, together with Rous Water, have been working together for the past three years on more than two dozen food security and sustainability initiatives. These include a source identification project, a Sustainable Food Directory, a sustain food website and ‘virtual marketplace’, the promotion of land-sharing to connect would-be growers with land-owners, a local government resource toolkit showcasing best case policy development across the region, and support for a number of community gardens and farmers’ markets.

Mount Warning, near Murwillumbah
Mount Warning, near Murwillumbah

The Strategy aims to set out a vision and a pathway in which the whole of the Tweed community can work together to ensure that agriculture remains economically and ecologically viable in the Tweed shire, contributing to the economic vitality and food security of the Tweed and beyond.

As I discovered through listening to the concerns of farmers and growers in the Tweed over a number of days, bringing the community together for this purpose will be no simple matter.

There is amongst many farmers a level of distrust and suspicion of the Council’s motives in preparing the Strategy. Specifically, there is a feeling that the Strategy may be used to further entrench existing restrictions on the subdivision of agricultural land.

For many farmers, in the Tweed as elsewhere, being able to sell part of their land is fundamental to their retirement plans. Restrictions on sub-divisions are seen as almost callous indifference to the huge burdens that farmers have been under for the past several decades.

This is a complex issue, because what typically happens with subdivisions is that they are purchased in five-acre lots by lifestyle ‘tree changers’ who spend a great deal of time mowing, slashing and fighting a largely losing battle against environmental weeds. After a number of summers spent that way, many urban refugees throw their hands up in despair, put their properties on the market, and gratefully return to the city. Sound familiar?

The one remaining agricultural machinery dealer in Murwillumbah confirmed this pattern. Whereas 15 years ago there were five dealers and most of the machinery sales were to commercial farmers, now it’s just him, and 90% of his sales are to lifestylers.

This pattern is resulting in the progressive loss of productive agricultural land, and so you can understand the Council’s reluctance to permit further subdivisions. But you can also understand the deep frustrations and bitterness felt by many farmers. These are the words of mango farmer Mike Yarrow, who has lived and worked in the Tweed since the early 1970s:

The core of our complaint [is] in relation to our deliberately destroyed profitability, which has left us at the end of our working lives – I am 67, whilst many [farmers] here are nearer 80 – with no super, no health insurance, no holiday houses by the sea, no life insurance, no income, no stocks, no shares…the list goes on…all we have left is our land, and many in places of power, or in the community, with no understanding of our deliberately induced poverty, call us ratbags for trying to take the only path out of this mess. I survive on a pension of $250 / week…

Mike has a quite sophisticated theory of what he terms ‘the deliberately induced poverty’ of smaller-scale farmers in Australia, and I’ll discuss that next time.

The Tweed Sustainable Agriculture Strategy Discussion Paper can be downloaded here: http://www.tweed.nsw.gov.au/Agriculture/default.aspx

The Northern Rivers Food Links project can be visited here: http://www.northernriversfoodlinks.com.au/

The Sustain Food website is here: http://www.sustainfood.com.au/

Coffs Coast, Community gardening, Corporate control of food, Cost-price squeeze, Fair Food systems, Food policy, Food sovereignty, Global hunger, Growth paradigm, Local and regional food economies, National Food Plan, Self-sufficiency, Small-scale farming, Uncategorized

Interview: Nick Rose

Thanks to Juliette Anich for the opportunity to create this portrait. Being able to explain at length my motivations is a rare opportunity and much appreciated.

advocate, Coffs Coast, Cost-price squeeze, Fruit growing, Small-scale farming

The decline of the big banana – Part 3

The story of Bill O’Donnell – Part 3

Nick Rose

This article first appeared in the Coffs Coast Advocate, 5.3.11

Bill O'Donnell's property today, near Bundagen, Coffs Coast, NSW
Bill O’Donnell’s property today, near Bundagen, Coffs Coast, NSW

In the last of a three-part interview, veteran Coffs Coast fruit grower Bill O’Donnell shares his reflections on the future of agriculture in the region

Bill has spent a lifetime growing fruit in the region – first bananas, then tropical peaches and nectarines – and he has seen the changes ringing over the last 50 years. Unfortunately, they’ve all tended to be in one direction, and it hasn’t been favourable to the growers of the Coffs Coast.

We’ve already talked about the deep crisis in the local banana industry. The massive Queensland industry and the uniformity in appearance demanded by the supermarkets quite simply means that – in current market conditions, cyclones aside – it’s uneconomic to grow bananas on a commercial basis in our region. The industry is literally in its death throes.

The relatively high cost of labour is a major impediment to viability. As Bill says, bananas are physical work in this region, where the plantations are on slopes, compared to the heavily mechanised Queensland industry.

“When I was involved”, he says, “we could afford to hire workers and pay ourselves a fair wage, because we were getting a decent price from the wholesalers. These days you just could not afford to do that, because the price hasn’t gone up while the costs have. I heard the other week that they were getting $8 a box. I can remember in the mid-1950s we were getting 8 pound a box – that’s $16, and the wages were 5 pound a week. You only needed one case of bananas a week to pay the wages. And in those days we might do 100 cases of bananas a week.”

How times have changed.

Cost-price squeezes also turned Bill away from the central markets with his tropical peaches and nectarines.

He believes that if they wanted, the supermarkets could set a minimum floor price at a level which would keep fruit growing viable. ‘But they won’t’, Bill says. ‘They’re chasing the farmers out of it. They really are.’

Another serious problem in Bill’s view is the death of publicly-funded experimental farms, which used to import and test the new varieties, and share the knowledge with the growers. Now it’s all privatized, says Bill, with the supermarkets buying up all the plant variety rights and licensing them to selected growers only.

‘It’s a nasty one, that’, says Bill, ‘I don’t care what anybody says. Those PVR rights, that’s where they squeeze the little bloke out, because you just cannot get the raw material. They will say, we don’t buy that variety.’

Increasing costs, low farm-gate prices, low bargaining power, lack of public investment – these are all serious challenges for agriculture in the region – and the country as a whole.

Blueberries are doing alright, says Bill, ‘for now’; but he puts at least some of that down to the cheap labour that a genuine family farm operation enables. ‘But you can see the writing on the wall with them’, he adds, because you can grow them from Atherton right down – so there’ll be an oversupply. They’re having prosperous days at present, but it’ll be like the bananas in ’59.’

The result is that agriculture is an aging industry, ‘and that’s a real problem for the country’, says Bill. The only real key to it I think is the local markets. You’ve got to be able to sell locally, because the grower has to be able to get a retail price…the killer for the retailer is the rent. In the old days, shopfront rents were next to nothing for greengrocers. ..Half the cost of fruit and vegetables I think is the rent that these people have got to pay. It’s just – well I think it’s criminal.’

Farmers themselves though can be their own worst enemies – in their refusal to cooperate with each other.

‘ I’ve seen them’, says Bill, ‘they had the banana growers’ federation for years – and that was one of the most successful co-ops that ever was. It was fantastic. But it took one bloke to ruin it… He worked out that he could make a dollar a case more if he took it to Adelaide – money was all it was. The answer to everything’s money, somewhere along the line. That’s how things can fall apart.’

If nothing changes, in Bill’s view, Australia will ultimately ‘depend on imported produce.’

advocate, Corporate control of food, Cost-price squeeze, Demographic crisis, Small-scale farming

The real costs of cheap food

Food Inc - lifting the lid on the industrialised food system
Food Inc – lifting the lid on the industrialised food system

The real costs of ‘cheap’ food

Nick Rose

This article first appeared in the Coffs Coast Advocate, 19.2.11

There’s been plenty of talk over the past month or so about the impact that the extreme weather events north of the border will have on food and grocery prices, vegetables and bananas especially.

There’s lots of things to say about this, beginning with the fact that if the mid-north coast still had a viable banana industry, and if production wasn’t so centralised and concentrated in cyclone-prone areas of north Queensland, then consumers might not be so vulnerable to the sorts of price spikes we’re likely to see in the coming months.

Be that as it may, there’s a bigger question at stake which is rarely addressed, and that’s whether the ‘normal’ price we pay for our groceries is sufficient to maintain a healthy, diverse and viable agricultural sector in this country over the medium and long-term, given the way that current market mechanisms operate.

It’s hardly any secret that many farmers are doing it tough, and have done so for a long time. So it should come as no surprise that Australia has lost around 50,000 farmers since the mid-1960s, and the exodus continues, with five farmers leaving the land every day.

Nor should it be any surprise that the average age of the Australian farmer is approaching 60. There simply aren’t the incentives for young people to want to embrace agriculture as a career and lifestyle choice. Which begs the question: who’s going to do the work of feeding us in 15 or 20 years’ time, when most farmers will be approaching 80, and there’ll be 35,000 fewer of them?

Does this sound like a crisis-in-the-making to you? It certainly does to me. In fact, it’s a crisis that’s been with us for many years now.

Which brings us back to the central issue: the proper cost of food. Through the centuries, farmers have always sought a fair price – a just price – for their produce. The trouble in recent decades is that they simply have not been getting it. At the heart of the global crisis in agriculture – Australia is but one of dozens of countries affected – is that farm-gate prices have failed to keep pace with the rising costs of inputs, freight and labour. In many cases farm-gate prices have barely risen at all.

Alongside this cost-price squeeze, we have seen an equally strong trend towards the concentration of ownership and control of most aspects of the food-value chain: from seed, to agro-chemicals, to grain trading and meat-packing, to food processing and manufacturing, and to retailing. We have witnessed the corporatisation and monopolisation of food and agriculture.

Many would say that the two trends  – the farm crisis, and the growth of agri-food monopolies – are closely linked. So closely, that the latter brings about the former.

There’s no simple answer to this, and I’m certainly not advocating a big price hike in groceries for consumers, least of all the many millions of middle and low-income Australians who are experiencing cost-of-living pressures already, with electricity and petrol price rises, not to mention the constantly rising cost of housing. But the question remains: how do we make farming viable – especially for smaller scale, bio-diverse farms – and yet keep food affordable?

We do need to move away from the culture of cheap food, where price is the sole criterion for making purchasing decisions. The logic of the food system as it stands points in one direction: the factory farm. And if you want to know why that’s a future we ought to say no to, come and watch Food Inc: see the interviews with factory farmers and workers in the United States; the conditions in which the animals are kept; the phenomenal waste that is generated, and the severe consequences for human and environmental health. The good news is that there are alternatives, and they’re being implemented all over the world, including on the Coffs Coast.

advocate, Coffs Coast, Cost-price squeeze, Fruit growing, Small-scale farming, Supermarket Duopoly

The decline of the big banana – Part 2

The story of Bill O’Donnell – Part 2

Nick Rose

This article first appeared in the Coffs Coast Advocate, 5.2.11

In the second of a three-part interview, veteran Coffs Coast fruit grower Bill O’Donnell talks about his peach and nectarine orchards, and how his lifeline to farm-based economic viability was ultimately ended by the inflexible application of regulations.

Bill left banana growing in the early 1970s and took himself off travelling for some years. He also kept up his passion for fun-running, and even the occasional marathon – hence the nick-name, ‘Runner Bill’.

On his return to Australia and the Coffs Coast, he took up professional book-making, which he continued, fairly successfully, for the next two decades. Bill wanted to go back to fruit growing, because, as he puts it, he had ‘too much physical energy’.

He purchased a badly run-down 200-acre dairy property a few kilometres from the Bundagen multiple occupancy community. He spent the first few years cleaning up the farm, and then he had to make it pay, because the book-making started to go bad – ‘the crowds weren’t going to the races any more’.

Bill tells how he made ‘a couple of false starts’:

“I put in an orchard of oranges, which was alright, insofar as you could grow lovely oranges, but you couldn’t sell them. I had the first lychee plantation in the district, but that got wrecked in a gale – so I gave that away, and anyway I had the wrong variety.”

It was the local rep from the Golden Dawn agent who then advised him to go for tropical peaches and nectarines, early fruiting varieties. Bill put in 2800 trees – 1800 peaches and 1000 nectarines – in 1986, and they began fruiting two years later. But he was caught unawares by a ‘real stinker of a problem – the [fruit] bats’:

“.. I could sit at my place, and it was like watching the Luftwaffe coming over in the Battle of Britain. The first three or four would come, and then three or four hundred, and… then 30 and 40 thousand. You couldn’t sleep at night. And they broke the trees down… they’d just get so full of peaches and nectarines, and they were that heavy, and [the bats would] just break the branches down. It was just a complete disaster – I spent maybe $70-$80,000, looking to get a return, and I just lost it all. Never got a quid… There were peach seeds on the highway, from the Sawtell turnoff to the Bellingen turnoff – it was awful, a horrible experience.”

Not a man to be deterred, Bill committed himself much more deeply to his new orchard:

“So I had to net them. We had to trim all the broken branches, and it cost $90,000 to net the place. This was before I got any return. It took me a long while to get over that – that was when we were paying 16-17% interest. And I had to do it in one hit, if I wanted to survive, I had to protect the trees. It was crippling. But we overcame it…”

The trees recovered quickly, and Bill harvested a good crop the next year, which he sold through Paul Bayliss at Golden Dawn, of whom he speaks very highly. When Paul left, Bill sent his fruit to Melbourne through a ‘terrific little Italian bloke’ that Paul recommended.

And for a while all was good – but then Bill found that while his costs – wages, freight, packing – were rising, the price wasn’t. Why? “Because the supermarkets [have] conditioned the people to pay bugger all for their fruit.”

So at that point the ‘only solution for me was to go local, with the roadside stall in Bonville [8 weeks a year], and the Sunday markets, and that kept the show going.’ Bill’s roadside stall out of the Bonville caravan park was highly successful, and extremely popular.

The stall lasted 14 years, but ultimately its success was its undoing, as other fruit vendors complained to the council that Bill’s stall was a ‘traffic hazard’. The first council officer to investigate the complaints took a reasonably relaxed approach, but in the last couple of years another officer took a very hard-line approach, and Bill was forced to close the stall.

And the trees? All bulldozed, and the netting’s gone too.

Bill O'Donnell in the field where his peach and nectarine orchard used to be
Bill O’Donnell in the field where his peach and nectarine orchard used to be