Prepared and distributed by: ADELAIDE BRUSH 23 Pangari Drive, FAIRVIEW PARK, SA 5126 Tel 08 8251 3309, Mob. 0418 841889, Fax 8289 3155, e-mail hagues@adbrush.com.au web site www.adbrush.com.au Edition No 11. October 1999
URGENT RESPONSE REQUIRED 19/10/99
The BCCG has been approached for an industry response to the Final Draft Report of the National Competition Policy Legislation Review in South Australia, which recommends (among other things) the introduction of a brush bundle tagging and cutter licensing system in South Australia. See attached extracts from the Report.
A BCCG submission is required to be lodged with the Review Panel by the 10th November and feedback from industry members to BCCG will be required by 4th November at the latest to allow time for preparation of the response.
Industry members who cannot be bothered replying or stating their views should not complain in the future, if outcomes do not meet their expectations or requirements. A lengthy discussion paper is posted in the Bulletin section of the Adelaide Brush web-site www.adbrush.com.au outlining some of the issues at hand and providing background to help you to provide informed comment. For those wanting a hard copy faxed or mailed, give me a call.
Any comments or ideas on the proposals, should be stated in writing, signed and mailed to the BCCG at the above address prior to 5th Nov. It is not practical or possible to hold a meeting due to the dispersed location of members (cutters and contractors) throughout the country and due to the time frame involved.
The BCCG submission to the Review Panel, and which will form part of the final report presented to the Minister for Environment, Heritage and Aboriginal Affairs, will be important in determining the Minister's adoption or otherwise of the recommendations of the Panel. The BCCG document will summarize the general opinions expressed by industry members and the originals of all written comment received, will be attached to the submission.
The opinions of interstate members are important and welcomed. Even though the current matter pertains to SA legislation, being the subject of a National Competition Policy Legislation Review means that changes here may also flow on during the review of legislation in the other States. It is also hard to see how such a tagging system could work on anything but a National basis. It is important, therefore, that our response is an Australia-wide industry response.
This is not the first time bundle tagging has been proposed in SA. About five years ago a similar initiative was met by concerted opposition from the brush fencing industry in this State and shelved.
The problems and issues remain, however, and once again the proposal has reappeared, with DEHA (Department for Environment, Heritage and Aboriginal Affairs) this time using the National Competition Policy Legislation Review in SA, as the vehicle for change.
As an industry we cannot go on burying our collective heads in the sand, we must address the issues and propose, resolve and implement workable solutions. The other option is to have unpalatable solutions forced upon us, if not now or next year then in certainty at some point in the future.
Queries please give me a call.
Regards,
Hague Showell, Adelaide Brush (SA)
Preparation and distribution of this Newsletter is funded by Adelaide Brush
For further information see the Bulletin section of the Adelaide Brush web-site www.adbrush.com.au
The paper posted there contains discussion of the following subjects:
What are the Problems Driving the Need for Change?
What is the Size of the Brush Industry? (ballpark statistics)
What Does the Future Hold for the Brush Industry?
How Will Plantation Brush Affect Illegal Cutting?
What are the Options for Better Industry Management?
Tagging of Bundles and Licensing of Cutters as per Review Panel Proposal
Questions and Problems with the Proposed Bundle Tagging System
Licensing of SA Cutters and Users of Brush as an Alternative to Tagging
If you don't have access to the internet and would like a hard copy of the discussion paper faxed to you, give me a call.
Edition No 10. August 1999
FIELD DAYSThis issue heralds the approach of the Lameroo (SA) field days to be held in October. For those who have a long term interest in the brush industry, whether it be contractor, panel maker, cutter, grower, land care professional or environmentalist, this weekend is a 'must attend event'.
Fragmentation and lack of direction have characterized the brush fencing industry and brush cutting has been seen by many as an inappropriate and unsustainable activity. Fire damage to fences and unprofessional conduct and poor craftsmanship (by some contractors) have tended to give the industry a bad name as well. It is not surprising, therefore, that brush fencing has been seen as a 'sunset industry' and an anachronism with little time left to run - an environmental dinosaur waiting for oblivion.
Work that has been done over the past 10 years, with brush plantations, machine panel manufacture and modular systems, provide us with new insight and directions. In fact, as a renewable resource and with the current initiatives, it is likely that brush fencing and brush harvesting will be alive and strong well into the future.
The October field days will give you the opportunity to learn of the advances in the industry and the potential for the future, as well as providing an opportunity to contribute to the direction the industry will take. Aspects to be touched on include brush as a potential weapon in the land care arsenal and a look at current research into the extraction of proline derivatives as a byproduct from brush leaf. The main aim of the weekend, however, will be to provide prospective growers with enough information to make an informed decision about whether or not to pursue growing brush for profit and land protection.
Refer attached provisional itinerary and registration details.
RESEARCH INTO BY-PRODUCTS FROM BRUSH LEAF
Professor Graham Jones will be attending the field days in October to outline his research and has provided the following precis of his work.
Proline Analogues in Melaleuca uncinata
By
Dr Graham Jones
Senior Lecturer in Oenology
Department of Horticulture, Viticulture and Oenology
University of Adelaide
'GRASS FENCING'"A number of chemically similar compounds related to proline, an essential amino acid in human nutrition, have been found in the genus Melaleuca. Melaleuca uncinata leaves contain two of these compounds, namely MHP and DMP. Both of these substances are related to glycinebetaine, a substance that has been shown to increase the yield of horticultural crops and to act as a nutritional supplement in animal feed. MHP and DHP occur at approximately 1% each in the dry leaves. Currently, MHP and DHP are being extracted from M.uncinata leaves to provide material for further trials into the usefulness of these compounds. If these trials are successful, the green tips of M.uncinata branches could be another source of income for those involved in the broom bush industry."
For those SA based contractors, Graham Jones would appreciate your assistance from time to time in supplying clean leaf for his research. He is currently after about a tonne of leaf offcuts to produce 10kg of the derivative. Adelaide Brush has supplied him with some material, but more is required - so if you can help, contact Graham on 08 8303 6649.
WESTBRUSH FENCINGSome months ago an Adelaide based brush fence repairer said to one of his clients that the fences being built in Adelaide were "grass fences" and that they were all badly built. A fellow fencer heard this back from the client and phoned the repairer to ask him why he was 'bagging' fellow contractors. His reply was that too much 'leaf' was used in the fences and that none of us knew how to build good brush fences in Adelaide.
Hearing of this I was astounded, as I believed that the quality of some Adelaide fencing was the best in the country. I phoned the repairer myself and took him to task. My comments were that with the length of the brush that we are getting and the way brush fences are built (with the bushy end top and bottom and stalks crossing in the centre), it was inevitable that leaf would predominate in the very top and bottom of the fence. I also said that as he didn't even build new fences, how could he criticize new fencing contractors. I also said that as he was known to use the leaf offcuts as stuffing in his fence repair work (to sagged fences), how could he judge our new work as having too much leaf.
Since that discussion, I have given the matter some thought, and although his motives could be questioned (in bagging our work to his clients), in essence his 'grass' analogy was correct. One only has to take a drive through any street in Adelaide to see the vast number of sagged fences and that is 90% attributable to the loss/deterioration of the 'grass' that comprises the top 150mm and bottom 150mm or so of the fence.
This begs the question! Why hasn't a better method of brush packing been devised so that the stick is uniformly distributed through the fence from top to bottom? Well it has - they are called machine packed panels.
Whilst machine panels have never taken off in Adelaide (even though they have been around for 20 years), they are in fact commanding major market share in Sydney, Melbourne, Perth and Auckland. Although they are not ideal for every situation (sloping sites, small returns, arches, scallops and tapers etc), they actually represent the future of brush fencing (when done well). Machines not only can provide a superior product in terms of brush density, wire clip spacing and uniform distribution of woody material from top to bottom, but they can also use brush too coarse and short to hand pack. They are ideal in fact for the use of mechanically harvested plantation brush --- and therein lies the future of the brush industry. That is not to say that all current machine made panels are good, but they do have the potential.
Hand packed fences and hand cut brush, I believe, will always have a significant market share, because of the design flexibility and more integrated smoother/finer look of the traditional methods. Machine panels come into their own on the level straightforward runs in the existing markets and for shipment to new markets where brush and brush craftsmen are hard to get. Come to the field days and learn more.
BUNYIP BRUSH PANELS (& BRUSH SUPPLIES) - NORTH BOURKE, NSWLinda Taylor and Glen Bartlett have hung out their shingle as Westbrush Fencing, based in Pinjarra WA. For information on their brush fencing services contact Linda on 08 95313 920 or by email on pitch@southwest.com.au. We wish them all the best with the success of their new business.
John O'Malley informs us that he has bought Terry Morris's panel machine and business, Bunyip Brush Panels (not to be confused with Peter Blackwood's 'Bunyip Brush Fencing Panels' based in Caloundra Qld).
John says he has also taken over Terry Morris's NSW brush cutting license (FPL) and is selling brush bundles at very competitive prices.
Further information on the supply of either panels or brush bundles contact John at North Bourke ph 02 6872 2507, mobile 0409 03 5142 or fax 02 6872 2507.
EMU LADY
Expatriate Portland (Oregon, USA) native, Susie McEvoy, now based in Adelaide has developed a series of beautifully hand-crafted emus and echidnas, made from broombush. They are the first of a series Susie hopes to manufacture here and in the US under the Aussie Bush Critters label.
The emu family comprising her current life-sized product range, named Edward, Edwina and Egbert have proved immensely successful in Australia and are now being marketed to the USA, while souvenir sized Edina has just been released for the Sydney Olympics.
Susie is also excited to announce the release of the echidna family, Edwin, Ellie and Emmie. These unique critters really speak for themselves, a truly Australian product, each individually handcrafted from broombush and mounted on Australian gum tree rounds.
The critters are made of freshly cut brush and treated so that they will retain the green look for a number of years when kept out of the sun and elements.
Too bad it took a Yank to show us how.
For further information contact; Susie McEvoy, 34 O.G. Road, Klemzig, South Australia 5087, ph +61 8 8363 9415, mob 0414 183229.
If you have news you would like included in the next letter or know of anyone who would like to be included on the mail list - just send the details along!
Well that's all for this letter! See you at the field days!
Regards,
Hague Showell, Adelaide Brush, SA.
Preparation and distribution of this Newsletter is funded by Adelaide Brush.
Registration
Jo West at Primary Industries & Resources SA, Murray Bridge phone 08 8531 1420. Please advise Jo of your numbers, names & contact details, transport and accommodation plans. (For options regarding transport and accommodation - see below). All interested persons Welcome!
What should come out of the weekend?
- Prospective growers better able to make an informed decision about whether or not to pursue growing brush for profit and land protection
- An appreciation of the merit of an industry representation (& self-determination) for grower, cutter and contractors interests. A better understanding of industry goals and directions.
- An enjoyable and memorable social experience!
In a nutshell
An appreciation of historical industry (cutting in wild); brush quality requirements for traditional hand packing; prospects of panel construction and use; brush plantation establishment and management options with the associated risks, costs and returns; market demand projections and arson issues.
To get the most out of it read Growing Broombush for Profit and Land Protection (avail for $12 + p/h ex Murray Bridge Revegetation Centre Tel 08 8531 1420) and arm up with questions before coming.
Who should come?
Current and prospective growers, cutters and contractors, panel makers, those who influence land management decision-making and those professionally interested in sustainable land management issues
Transport
First in best dressed on a 24-seat bus ($15/head), balance in convoy (copies of 1:100,000 maps available to show location of sites).
Publicity
Web site and mail out using combined Adbrush and PIRSA databases plus popular press (PIRSA will pick up the tab for mailing and adverts), Agroforestry News, Stock Journal article, Landcare News article, Australian Forest Growers and Institute of Foresters.
More information:
Pete Bulman (0417 852 669), Clive Bowman (08 8576 3071) and Hague Showell (08 8251 3309)Provisional Itinerary - Broombush Field Days
| Time | Where | Comments |
| Sat 16th Oct | ||
| 9.30am sharp | Nairne | Leave Nairne Institute car park (maps left on steps for stragglers) |
| 10.00am | Harrogate | Yield projections relative to site and rainfall, and product specifications for hand-packing (and panel construction?) on strength of trial cutting - Alex Knight & Cutter |
| BYO lunch | In transit | |
| 12.00pm | Kanmantoo | 1993 pilot trial; 1996 direct seeding and irrigated cutting; costs and returns; weed control - Peter Bulman - State Flora |
| 2.30pm | Callington | 1994 Weed control (lack of) story very brief - Peter Bulman - State Flora |
| 3.30pm | Murray Bridge | 1980 plantation and yields; optimal harvest time; regrowth mgt., irrigated plantations - Philip Beale and Alex Knight - State Flora |
| Accommodation | Pinnaroo | Pinnaroo Hotel - details available on registration |
| 7.00pm | Pinnaroo | Social night & group
discussions. Graham Jones (Uni of Adelaide) the potential for extracting proline as a derivative/by-product from foliage. Hague Showell on industry goals & directions, export markets, code of practice, brush supplies & newsletter. |
| Sun 17th | ||
| 9.30am | Bush stop over in transit to Lameroo. | DEHAA on native stands and mgt. regrowth times, brush quality & environmental impact? |
| 11.30am | Lameroo | Clive Bowman & State Flora on irrigated plantations, genetics and cuttings and Clive Bowman on mechanically made panels |
| Lunch | On return | 'Roadhouse lunch' |
SOUTH AUSTRALIA
ADELAIDE BRUSH HEWITT FENCING ALLTYPE FENCING AUSTRALIAN BRUSH FENCING EXCLUSIVE BRUSH FENCING EAGLE FENCING BARKER ECONOMY FENCING BRUSHCRAFT BANWELL BRUSH FENCING B & B FENCING & GATES A1 BRUSH FENCING BALNAVES BRUSH FENCING HOLDFAST FENCING SUMMIT FENCING A. KNIGHT FENCING A-AAH FENCING REPAIRS JUST BRUSH FENCING BUDGET FENCING BANKSIA BRUSH FENCING THE FENCE DOCTOR A & J BRUSH REPAIR WALLER FENCING RIVERLAND BRUSH LINCOLN BRUSH FENCING WEST COAST BRUSH SMEDLEY SHADE & FENCING GREENWITH FENCING ROBIN WAIT FENCING CLIVE BOWMAN PANELS FIRE RESEARCH LABS NEW SOUTH WALES
ABSOLUTE BRUSHWOOD EXTERIORS AUSTRALIAN BRUSHWOOD ORIGINAL BRUSHMAN BRUSHWOOD DESIGN COMPANY AVALON BRUSHWOOD BRUSHWOOD IS BEST ALL BRUSHWOOD FENCING BRUSH FENCING CO PTY LTD EASTGATE BRUSH FENCING AUSSIE ART BRUSHWOOD FENCING BRUSHWOOD PROFESSIONALS AUSTRALIAN NATIVE & FEATURE CONSOLIDATED BRUSHWOOD BRUSHWOOD COLONIAL NATURAL BRUSH & FEATURE SOUTH AUSTRALIA BRUSH WARATAH FENCING JIM BRADLEY BRUSH SAPPHIRE FENCING ANDREW TILLEY FENCING NATIVE BRUSH DESIGN NORTHLAKES FENCING COASTAL BRUSHWOOD BRUSHWOOD EXPERIENCE BARRY GRAHAM TIMBERSALES TWEED BYRON BRUSH VICTORIA
BRUSH FENCING & GATE COMPANY ADELAIDE BRUSH FENCING P/L GOODWOOD FENCING&GATE BUDGET BRUSH FENCING NATIVE BRUSH FENCE BETA BRUSH FENCES SPRINGVALE BRUSH FENCING P/L SOLOMIT BRUSH PANELS ACT
OZ BRUSH FENCING BRUSHWOOD EXTERIORS BELCONNEN BRSUH FENCING QLD
BRUSHWOOD CREATIONS POLYNESIAN BRUSHWOOD J.L. SALA PTY LTD BUNYIP BRUSH FENCING PARADISE BRUSHWOOD BRUSHWOOD SOLUTIONS WA
BRUSHWOOD AUSTRALIA
CO-ORDINATORS
Hague Showell
Tel: 08 8251 3309 Fax: 08 8289 3155 Mobile: 0418 841 889 Adelaide Brush (SA) 23 Pangari Drive FAIRVIEW PARK SA 5126 Lyn Spalding
Tel: 08 8296 3600 Holdfast Brush 10 Illawarra Ave HOVE SA 5048 Chris Hewitt
Tel: 08 8281 8911 Fax: 08 8281 8911 Mobile: 0419 820 420 Hewitt Fencing 189 Ryans Rd, BOLIVAR SA 0418 830893
As advised in the last Newsletter all brush contractors in Australia have now been invited to join the BCCG, which began in SA.
The reason for expansion to include all States, is primarily to aid in the definition and establishment of an industry Quality Assurance Programme, Code of Conduct and Australian Standard for brush fencing, but also to provide a united industry rallying point and lobby group with regard to brush supply, pricing, environmental, fire damage and other central industry issues.
The Newsletter and BCCG will also provide a line of communication to all those with an interest in the Industry and which, until now, did not exist.
For those new to the BCCG we extend a warm welcome! All
brush contractors in Australia, including brush panel erectors/manufacturers are automatically included.If we have omitted anyone please let us know. If you do not wish to be a part of the Group or do not want further Newsletters, please advise.
Cutters, growers and other interested persons, groups and bodies have been included in the Newsletter mail-list and are invited to contribute ideas, articles and information relating to the industry as they feel the need or as subjects arise.
If you know of anyone that should he on the mail-list please let us know. Newsletters will be forwarded every two or three months and as issues arise and initiatives progress.
About the BCCG
The BCCG is an informal, voluntary Group and there are no annual membership fees. A simple phone call is all it takes to join or de-list as a member. As it is not practical to try and hold regular meetings all initiatives will be developed in the public arena in a democratic manner via the Newsletter forum and your response. It is important therefore to respond, so that your views are reflected in initiatives undertaken by the Group. If you see issues that need to be addressed, let us know.
What we do need is a representative from each State or region, knowledgeable in the local industry, to raise local issues and provide input to the Newsletter forum and BCCG initiatives.
Representation is required from Melbourne,
ACT, Sydney/Newcastle, Coffs Harbour region, Ballina, Brisbane, Tewantin and Perth or other distinct regions you may identify. So if you would like the job or know of someone that could do the job in your area, please give Hague Showell a call on 08 8251 3309 ah or 0418 841889.We need plenty of feedback from all members on subjects raised, if the Group is to achieve anything of value.
Contact points for feedback will be your local representative or direct to either myself (Hague Showell) or Lyn
Spalding or Chris Hewitt (see contact numbers on letterhead).
You will be advised of the regional representatives in the next newsletter.
The BCCG was formed in South Australia in 1997 and initially sought to reduce industry cost structures through Group tendering of materials supplies. A detailed analysis of cost structures was also distributed to members, together with a recommended minimum industry price structure, the aim being to improve industry profit margins by assisting those contractors with little business experience in more realistically pricing their product. Latterly the Group has turned its attention to such matters as sub-contract packing rates and construction standards and professionalism within the industry as well as long term issues such as brush sustainability and the environment.
BRUSH PRICE RISES
Nearly all contractors contacted in the states of NSW, VIC, QLD and WA, have expressed real concern over price hikes of up to 40% in their brush supply over the past six months. However not all the news is bleak, as the following assessment concludes.
Cutters, Contractors, Government
Cutters need a market and contractors need brush and without each other, neither group would have a business. Without the NSW State Forest supply of brush from Crown Land a large slice of the Australian brush industry would die. One industry and common interests do not leave room for anything other than cooperation in the longer term.
The object of the analysis below is not to attack individuals or groups, but to achieve a stronger, more efficient and sustainable brush fencing industry.
In researching the topic nearly every brush contractor in Australia has been contacted, most of the major NSW cutters, marketing managers at NSW State Forests, plantation growers and panel manufacturers and we believe that the following accurately summarises the current situation.
Prior to distribution, draft copies of this Newsletter have been circulated to contractors in each State and to the NSW State Forests Western Region Sales Managers, Ross Irvine and Rod Clarke, for comment on the accuracy of the analysis. Comments returned and discrepancies identified have been incorporated into the Newsletter. If factual errors in the analysis are identified, please let us know and they will be put right in the next Newsletter.
The Price Rises
In a competitive open market situation, prices should reflect the market forces of supply and demand. On that premise the rise in the price of NSW brush by around 40% over the past 6 months would seem to indicate that brush is in short supply. Is that the case?
The supplies for NSW, VIC and QLD and some SA contractors, which come from the NSW Western Districts Crown Lands and freehold areas, have increased dramatically in price in the past six to twelve months, from around $9 per 30kg bundle including freight, to a current $12 to $13 per bundle (semi-trailer load quantities).
Higher prices for smaller contractors buying through the larger metropolitan contractors/wholesalers of around $14 and even $15 per bundle have been reported. The average price currently being asked of Victorian and NSW contractors is now $13/bundle and Queensland $14 to $15 per bundle.
Brush in semi loads to the Sydney market from freehold land around the West Wyalong area is currently costing $12/bundle.
Hand packing contractors are worried about the affect the rises will have on their fencing prices and market. Most contractors in all States are now charging around $105 per metre for roll top type fencing on a 20 metre run, and are looking at rises to around $115 per metre if the current bundle prices are rnaintained. South Australian local brush supply prices have not as yet been affected.
New South Wales brush supplies from the Western District Crown Lands under pastoral lease and freehold areas, service a large proportion of the total Australian market and so anything affecting that supply must eventually have a major effect on the industry as a whole. Brush cutting has been dis-allowed on Victorian and Western Australian Crown Lands for a number of years and South Australian stocks are restricted by licensing requirements under the Native Vegetation Act and heritage agreements.
Well, are the prices rises caused by a shortage in supply? They are, but we do not believe that the shortage is caused entirely by a lack of available brush in the wild, as the following analysis concludes. But first, what is the system in NSW.
How Does the NSW Supply System Work?
Enquiries to NSW State Forests has revealed the following.
There are only six major licensed cutters in the Western District, who are issued with "Product Licences or FPL's ", comprising approximately 1/3rd of the NSW land area and most of the Crown Land brush. They are;
Tom Ellison
Tony Cabot
Trevor Ingram
Mark Dureau
Wally Fardell
Terry Morris
Contact details for all FPL's, are available from Andrew Deane or Rod Clarke of NSW State
Forests - Forbes, on (02) 6852 2255, or from Hague Showell, Adelaide 08 8251 3309 and 0418 841889.
A smaller cutter,
Clint McMillan is licensed to service the smaller patches which are uneconomic for the larger cutters.I am advised by State Forests that as patches/leases are cut out, the FPL's either ask and are told where they can cut next, or they look for suitable areas and then State Forests will approach/advise the pastoral lessees that licencees will be cutting on the property.
NSW State Forests response to matters canvassed in a Draft of this Newsletter provided to them, is as follows;
"State Forests is the NSW Government agency responsible for marketing the broombush resource growing on State Forests and Crown timber lands, including Western Lands LeasesWe surveyed the resource last year. It is clear that careful progressive allocation of the areas with marketable size brush is needed to ensure long term supply to Forest Product Licensees, (FPL's), and to care for the environment. There is no surplus resource available to expand the amount of broombush harvested annually.
The changes to the broombush harvesting industry in NSW are evolution, rather than crackdown. All will benefit from less variability in the measurement of broombush harvested, as we get from weighing truckloads. The industry's small size and remote location only delayed the extension of workers compensation insurance cover to the broombush harvesting industry. It was coming.
State Forests values it's broombush customers, and where possible manages area allocations to give them the type of broombush they want to cut. We do not have a role, however, in determining what market they will sell their product into, or what price they place on it.
Currently we have 6 FPL's cutting broombush and competing for available markets. They decide where and how they market their product. The group is rapidly becoming more professional in their work and business practices. We expect that their willingness to respond to market demands is also growing. As broombush users make clear their needs to the producers, those needs should be better met.
State Forests welcomes the publication of this newsletter. We hope that our broombush customers, as well as the fencing contractors read it and contribute to it. It is part of the communication web in the industry. We are sure it will contribute to a better understanding of the needs and concerns of all sections of the industry."
by Rod Clarke, NSWState Forests, Forbes 19/2/99
Attempts were made to contact all of the 6 FPL's to see if brush could be obtained and what the prices were being asked. Tom Ellison and Mark Dureau have a full book, with Tom charging around $8 per bundle ex-freight and with Mark selling nearly all his brush to a panel manufacturer for
$6.50 per bundle ex-freight. Trevor Ingram is supplying brush for around $11 per bundle ex-freight and is taking on anyone prepared to pay his prices. Messages left for Wally Fardell at the Mt Hope pub were not returned and we could not obtain a contact number for him. Terry Morris could not be located and industry sources have indicated he is not cutting at present. State Forests did not have a current contact number for him.Tony Cabot has just obtained his FPL (used to cut for Tom Ellison) and would be a good place to try for brush if you are looking for another source of supply.
What Caused the Price Rises?
One NSW State Forests officer has indicated that the reasons for the rises in market rates, are to do with a change in the methods of calculating royalties (from estimates of truck weights to requiring weighbridge dockets) and a crackdown on the employment requirements of cutters with regard to workcover insurance etc.
The calculations in the following section, which are based on the actual current cutter cost and royalty structures, would indicate that these factors have had some direct effect on prices (approximately $1 per bundle), and also an indirect effect, but they are not the only causes.
Cutters have indicated that enforcement of the law with regard to Product Licensee employment conditions (workcover & super), has to a large degree de-stabilised the prior competitive relationships between cutters and therefore prices. i.e. FPL's have changed their workforce numbers or quit employing cutters.What that means is that at present not all FPL's are producing as much brush on their allocations as they could or might have under the previous regime and thus affecting the supply situation.
We are also advised that the large volume of work to Sydney at present (attributed in part to the Olympics) has also affected the demand and pricing of brush.
With Current Cutter Cost Structures, What Should Brush Cost Assuming an Open Market and Plentiful Supply?
Royalties
On NSW Crown land the royalties are $37.50 per tonne, which equates to a little over $1 per 30kg bundle. On freehold land the royalties being paid are from $2 to $3 per bundle to farmers for the same bundle size.
Freight
Transport costs on average from $1.50 to $2.50
per bundle to most markets from the region. Freight to Sydney is around $2/bundle and up to $3.20 to $4.00/bundle to Tewantin (North of Brisbane) while to Perth you might pay $7 per bundle in freight.Cutting Labour
Cutters earn around $4 to $4.20 per 30kg bundle and can cut on average around 40 to 50 bundles per day. Some are able to cut up to 70 bundles per day depending on skill and the patch they are in. If Workcover @ 10% and Super @ 7% are paid for cutters employed, then cost of cutting rises to around $5 per bundle. However as cutters are required to have their own government "Operator's Licence", one could quite easily argue that cutters are true sub-contractors who should provide their own cover and super.
So in a competitive market situation and allowing for a business profit and overhead margin of say 20%, brush should sell for;
a) Using true sub-contract cutters or sole operators;
From NSW Western District Crown land;
To Sydney ($1.00 royalty + $4.20 cutting + $2.00 freight) x 1.2 = $8.60/bdl.
To Tewantin the same brush should sell for ($1.00 + $4.20 + $3.20) x 1.2 = $10.00/bdl.
From NSW private land;
To Sydney ($200 royalty + $4.20 cutting + $2.00 freight) x 1.2= $9.30/bdl,
To Tewantin, North of Brisbane, should sell for ($2.00 + $4.20 + $3.20) x 1.2 = $11.30/bdl
b) Using casual labour with super and workcover insurance;
From NSW Western District Crown land;
To Sydney ($1.00 royalty + $5.00 cutting + $2.0 freight) x 1.2 = $9.60/bdl.
To Tewantin the same brush should sell for ($1.00 + $5.00 + $3.20) x 1.2= $11.00/bdl.
From NSW private land;
To Sydney ($2.00 royalty + $5.00 cutting + $2.00 freight) x 1.2 = $10.80/bdl,
To Tewantin, North of Brisbane, should sell for ($2.00 + $5.00 + $3.20) x 1.2= $12.25/bdl
Self-employed cutters do not have the same legal overhead or profit margin requirements as large contractors employing gangs of cutters and so their prices could be expected to be at least 15% to 20% less than the above.
Rough brush is still being supplied in large quantities from a number of cutters for $6.50 per bundle ex-freight to the machine panel manufacturing industry, allowing cutters a business margin of around 50c per bundle. This would tend to confirm the cost structures outlined above.
Our estimation is that present brush prices of $13 per bundle in the Sydney and Melbourne markets are at least $2 to $3 per bundle overpriced assuming a freely competitive market and no shortage of brush and allowing casual labour with legal workcover and super cover.The reality is that brush is fetching the higher prices, which can only be caused by a shortage in supply and higher demand.
Conclusion and Action
If prices are higher, the only way they can stabilise or come down is if more brush is produced, or demand drops.
From the preceding input from State Forests, it would seem that no further FPL's can be issued if the supply is to be sustainable. However not all current FPL's are producing to capacity from their allocations and so it would seem that there is room for a greater supply from the existing licences.
We acknowledge the important role that NSW State Forests have in managing the NSW brush supply resource. They are very capably managing cutting rates with respect to the long term sustainability of brush supply and we applaud them for the work that they have done and are doing.
If you are a contractor, what action can you take?
Phone the State Forests and obtain a complete list of current cutter contacts and shop around before you buy. Look to the freehold land cutters as well as licensed cutters. Stock up through the winter months' slack season. if you have to, put an advertisement in the rural press. It's a big country and there are a lot of farmers on freehold land who might have a patch or two and appreciate the additional income. Buy in smaller shipments (50 to 300 bundles) from the smaller cutters. And when the Olympics have finished and demand slackens, remember the cutters who looked after you and maintained reasonable prices.
Healthy competition is good for any industry!
If you have any other ideas on action that could be taken by the BCCG as an industry group, to better and more fairly manage brush prices from both the cutters and contractors points of view, please advise.Weight Based Transaction Problems!
Contractors have also complained that, as semi-trailer loads are now mainly available on a weight basis, rather than on a bundle basis as previously, it is creating real problems in splitting loads with fellow contractors. It can also difficult to accurately weigh from remote loading locations (ie tare weights) and confirm quantities at the receiving end if there is no access to a weigh-bridge. Wet loads also are more costly than dry ones.
We are told that weight based transactions are now occurring because cutters are now required to pay their royalties to the NSW State Forests on a weigh-bridge docket, rather than on an estimate of bundle numbers by estimated per bundle weight. However there is no logical nexus between what contractors pay cutters for brush and what cutters pay in royalties. One could rightly argue that an approximate $1 per bundle in royalties
($37.50 per tonne) to NSW State Forests is really irrelevant as to whether contractors should pay a cutter by the bundle rather than by weight.Fencing contractors do not get paid on the weight of fences they build and weight can never reflect brush quality/suitability or the distance a bundle will pack in a fence.
Transaction Security Problems!
With semi-trailer loads of brush crying up to
850 bundles and with shipment values of up to $11,000, security for both cutters and contractors is a problem.Cutters cite examples of where they have not been paid at all for shipments, or paid less than agreed amounts, and contractors where they are being forced to make up front payments in full into bank accounts a week in advance of shipment, unsecured, amounts of up to $11,000.
Contractors also report shipments paid for in full in advance have been of such poor quality, that additional brush has had to be purchased to mix with the material.
There must be a better way for both cutters and contractors which is fair to both parties. Any ideas?
Other Industry Impacts of Price Changes
While brush contractors using hand packed methods are suffering because of the bundle price rises of around 40% over the last six months, in contrast brush machine panel prices have only increased by around 5% to 8%.
The reason for this is that brush is still being supplied at $6.50 per bundle (ex-freight) to Australia's panel manufacturers. One cutter contacted advised that while he was supplying good quality hand packing brush to the Sydney market at $12/bundle, and coarser brush to the panel manufacturer for $6.50/bundle (ex-freight), he was happy with the returns from the panel brush. The reason for this he indicated, is that the cutters can go through an area and take all the brush, which can be quite rough for machine packing, whereas for hand packed brush only a percentage (straight brush) could be cut in any patch. Also because the panel brush was much rougher it took less brush to fill a cradle and therefore less cutting to make a bundle. (Another cutter said he thought that it took as much work to cut rough brush, as good brush though).
Brush machine panel erectors and manufacturers must be very pleased with the price increases for hand packed brush, and the already significant market share by machine made panels in all states (except SA) can only be tipped to rise in the near future. As 'good' brush seems to becoming more difficult to obtain, the future for machine made panels looks very rosy both from the local market and export points of view.
The Sustainability of Brush Cutting in NSW.
In the freehold areas around West Wyalong, farmers are rolling the bush after the cutters have been through to promote future re-growth. A cutter contacted there believes that although the short term outlook for brush is not very good, he believes that with the rolling technique, in ten years or so good brush for hand packing should be plentiful. A major panel manufacturer also concurs with this assessment of the availability of good brush in the future.
One of the NSW Crown Lands cutters says that good brush is now very dilficult to get and that the current rate of cutting isn't sustainable, although it may be that he has poor lease allocations.
The NSW State Forests assessment quoted previously asserts that production is currently at a maximum level on Crown Lands. As stated earlier, however, it would appear from our research that not all FPL's are producing as much brush on their allocations as they have been, due to recent upsets caused by changes to the employment condition requirements.
Anyone with knowledge or opinion in this area is invited to contribute to this debate in the next Newsletter or to contact me (Hague) on 08 8251 3309 or 0418 841 889.
PLANTATION BRUSH
Trial plantations have been underway in SA over the past 9 years and quite large commercial crops in WA are at the 2 year old stage. It is likely that in the longer term (20 to 30 years) that a large proportion of the brush used in fencing will come from machine harvested plantations rather than from native stands, as at present. It is also conceivable that brush could be grown in other countries and that brush fencing will become popular overseas. Enquiries received and current panel export-initiatives would tend to support this contention.
Plantation work undertaken by Clive Bowman (est. November 1990, Lameroo in SA) in conjunction with the SA Primary Industries & Resources Department over the past 9 years has followed on from earlier work by John Scarvelis (1980, Murray Bridge Re-vegetation Centre) and John Wisniewski (1988, Dimboola, Lake Hindmarsh and Tempy).
As a result of the trials,
"Growing Broombush for Profit and Land Protection" has been published, by Peter Bulman, Philip Beale and Aleex Knight of the SA Department of Primary Industries and Resources. Copies are available from the Murray Bridge office of the Department at a cost of $12 plus $3 postage & handling. - tel 08 8539 2117 if you would like to order. This work is based on the yield data from harvesting parts of the Murray Bridge and Lameroo plantations.Although not commercially proven, the profitability (Internal Rates of Return and Net Present Values) of the crop based on cash flow modelling undertaken in the report looks promising especially in the light of current Vic and NSW prices.
One of the problems experienced in the trials has been the configuration of the brush and suitability for use in fencing. This has been compounded by the unreliability of the seed in producing "true to type" propagation ie only about 1% of seed from a particular bush is true to type and there may be over 200 provenances or varieties of brush. Propagation from cuttings and using irrigation have also been trialed, but at 1998 prices did not look economically attractive.
The BCCG is actively supporting this work and will be monitoring the progress of the plantations and seed development. Representatives of the BCCG have been invited to inspoct and cut in the Departments Harrogate plantation trial shortly, to help ascertain the brush suitability.
We have been advised of a field days and investor seminar to be held by Clive Bowman in conjunction with the Department in September of this year. We will advise of the dates and details as they become available.
In WA a brush contractor I spoke to recently advises that he has been supplying seed and encouraging farmers to plant broom, for several years now. It is mostly planted between rows of barley and wheat on saline soils and there are a number of properties under cultivation with up to 40,000 plants on each and with up to 2 year old growth. With high costs of freight for NSW brush, it should be a good investment for him in the future.
There have also been enquiries from time to time to the BCCG from farmers interested in growing broom.
Further details on this subject will also be updated on the www.adbrush.com.au web-site section headed "Growing Brush".
FENCING PRICES
Most reputable contractors m SA, VIC & NSW indicate that they are achieving around the $105 per metre mark for new hand packed brush roll top type fencing 1500mm high on a 20 metre or more run. In the Tewantin and Noosa area I am told prices as high as $120 per metre are being charged (mainly island and resort work). In WA the prices are in the $105 to $120 per metre region I am advised for concrete based hand packed fencing. Machine panel fencing prices are very comparable to hand packed fencing in most States, although some say that panel fences cost more but are easier to erect. Obviously there are many sitnations where machine panels are not practical (arches, scallops, slopes small returns etc). Quality and aesthetics wise, hand packing versus panel ... well that is another issue.
In Sydney and Melbourne a large proportion of the fences have timber (treated pine or cypress pine slab) bases, rather than the universal concrete plinth used in SA. Cost of material wise the timber would be dearer, but the labour saving on timber bases would indicate that SA prices fetched are slightly lower than those across the border. One contractor in Melbourne contacted, however, actually charges more for the timber based fence than the concrete, because he says he is geared for concrete. He says however that other contractors who use just timber swear that it is a much more cost-effective way to go.
Price rises have been foreshadowed by some contractors in Victoria to around $115 per metre because of the higher NSW brush costs. Sydney contractors report a very busy brush fencing market, attributed primarily to the Olympic Games.
WEB SITE www.adbrush.com.au
As mentioned in our last Newsletter, Adelaide Brush launched last November, the first comprehensive brush fencing web site in Australia and included is a BCCG section.
We are hoping that as more contractors are linked to the internet, that they and their clients can access and use the site as a resource in their own businesses. A file of past Newsletters will be included on the site for future reference.
The content of the site at present is South Australian flavoured, but will over the next few months be broadened to the wider Australian industry experience, i.e. local brush-cutting laws, construction techniques etc.
My e-mail for those that are already connected is hagues@adbrush.com.au
QUALITY ASSURANCE
The need for an industry Quality Assuance programme is long overdue and most well organised industries have such a QA programme (dolphin-safe, motor traders etc). However QA goes beyond the brushwork considerations. It really encompasses standards for the whole industry, including client/contractor relationships, materials specifications and standards and finishes and most importantly provides for environmental sustainability. It really is a stamp of approval, a code so that a customer knows that if (s)he deals with someone displaying the QA logo in their advertising, then they will be treated in a uniform, principled and professional manner and the product will be built to an accepted industry standard.
It is in the long term interests of the hand packing industry to have beautifully crafted, long lasting fences erected rather than shoddy, sagging monuments to stupidity. The only way that is going to happen is for the industry to do something about it.
AUSTRALIAN STANDARDS
Chain wire fencing is subject to an Austlian Standard and so too should brush have a standard as a plank in the QA programme. A submission
outlining a case for the introduction of a standard first needs to be put to the Australian Standards Association, and once the need is ratified, a committee of industry representatives is formed from around the country under the auspices of the ASA to define the standards. The process can take several years.The kind of matters which might be addressed in a standard could include product performance, safety and design, installation requirements, fire risk/measures, environmental aspects, harvesting methods etc.
The need would address such matters as community savings through introduction of a standard (eg repairs, fire damage caused to associated structures by poor location etc), export potential (panel standards) and size of the industry (value to the community).
A case will be prepared by the BCCG if you agree that we need a Standard. What do you think? Feedback please.
Is brush fencing a craft or just a cheap and nasty product? What constitutes a well-built brush fence, a fine finish or woody finish? One that looks good with a shorter life or one that looks rougher, with a longer life (needle versus stick)? Working up an Australian Standard may be impossible, but we'll give it a shot.
FEEDBACK
Your feedback is essential if the BCCG group is to have any relevance.
Yours Sincerely
Hague Showell
Co-ordinator BCCG (Adelaide Brush, SA).
Preparation and distribution of this Newsletter is funded by Adelaide Brush. Subjects for the next Newsletter: no 10, June 1999- Reader response to this Newsletter, incl. bundle pricing & transaction problems.
- Australian Standard submission draft
- History of brush fencing (info.relating to the industry in Vic, Qld, NSW and WA)
- Cutters perspective (any input from cutters will be printed in full).
- Panel manufacturer perspective (any input will be printed in full).
- Industry code for fire damage minimisation.
One Industry! Your views are important and your input essential!
© Copyright 1998, Adelaide Brush, 23 Pangari Drive, Fairview Park, South Australia 5126; Tel +61 8 82513309, Fax. +61 8 82893155, Mobile 0418 841 889.