❓ A WA parliamentary question examines the viability of irrigation for cattle in the Kimberley and Pilbara regions, focusing on project locations, water allocation, cattle numbers, and economic viability, particularly referencing Bruce Cheung's Pardoo Beef Corporation.
AnsweredQoN 3346Legislative Council
QuestionView source ↗
I refer to the irrigation for cattle in the North West, and I ask: (a) how many hectares of irrigation for cattle are there in the following areas: (i) Kimberley region; and (ii) Pilbara region; (b) where are these irrigation projects located; (c) what pastoral leases are these irrigation projects located on; (d) how many hectares are each of these irrigation projects; (e) how much water is allocated to these irrigation projects at each location; (f) how many cattle are grazed on these projects and what is the average length of time they are there for; (g) is the Minister aware that Bruce Cheung’s irrigation projects in the Pilbara were making a loss according to an article in Farmonline ‘Cost of production the challenge in Pardoo's vision for Pilbara Wagyu’, it costs around $4.50 a kilogram of beef to produce on Mr Cheung’s irrigation set-up whereas the Pilbara benchmark is $1.60 per kilogram; and (h) does the Minister agree that even with significant capital to pay for irrigation set up costs, irrigation for growing cattle fodder is not economically viable in the North West: (i) if no to (h), what evidence does the Minister have to show this is the case and will the Minister table it?
AnswerView source ↗
Answered
25 November 2020
Responded by
Minister for Regional Development
Response time
11 days
(a) (i) In the Kimberley region, 1,399 hectares are under irrigation on pastoral leases.
(ii) In the Pilbara region, 2,588 hectares are under irrigation on pastoral leases.
(b-e) Please refer to tables below.
Kimberley pastoral stations with irrigation for cattle:
Station name
Location (by Shire)
Area currently under irrigation (ha)
Water licence (GL)
Gogo
Derby – West Kimberley
68
1.5
Debesa
Derby – West Kimberley
28
0.3
Liveringa
Derby – West Kimberley
270
6
Mowanjum
Derby – West Kimberley
38
0.7
Kilto
Broome
300
2
Nita Downs
Broome
80
4
Anna Plains
Broome
25
0.6
Wallal Downs
Broome
590
14.2
Total
1,399
29.3
Pilbara pastoral stations with irrigation for cattle:
Station name
Location (by Shire)
Area currently under irrigation (ha)
Water licence (GL)
Pardoo
Port Hedland
950
14.6
Minderoo
Ashburton
100
13.2
Hammersley
Ashburton
1,500
18.25
Warrawagine
East Pilbara
38
2.7
Total
2,588
48.75
The Department of Water and Environmental Regulation provided the approved volumes as authorised under the Rights in Water and Irrigation Act 1914 . Note these figures are authorised amounts and that the full water allocations may not yet be utilised.
(f) The number of cattle on these projects and length of time they are there for is dependent on a large range of factors, including type of operation (stand and graze or cut and carry), type of crop, size and genetics of cattle being fed, the market being targeted, time of year and seasonal factors.
(g) The full text from the article provides further clarification to the figures quoted. The Pilbara benchmark quoted in the article is an average estimate of the cost of production under a rangelands system with standard breeds of cattle, such as short horn and brahman. Production of wagyu cattle is a high-value end product which has a higher economic cost of production and would attract a higher price than the benchmarks quoted.
(h) No.
(i) The Department of Planning, Lands and Heritage has been provided documents from Pardoo Beef Corporation, reviewed by an independent agribusiness consultant, showing that irrigated pasture aggregation and associated land at Pardoo station have a high likelihood of being financially viable. These documents are currently under review and are not yet in a position to be distributed.
Further, the results presented in the Mowanjum Irrigation Trial Industry Report and a recent report, ‘Irrigated Fodder and Grazing Animal Production Systems Analysis for the Northern Beef Industry’, completed by the Kimberley Pilbara Cattleman’s Association in partnership with the Department of Primary Industries and Regional Development (DPIRD) outline important considerations in deciding to diversify a pastoral enterprise with irrigated fodder. DPIRD is also finalising a Technical Bulletin ‘Mosaic agriculture – a guide to irrigated crop and forage production’ which will share further research and understanding with producers.
There are challenges in generating a positive return on investment from irrigated agriculture given factors including remoteness, high capital cost of development and variable rainfall. Indeed, there are still only a small number of properties that have pursued irrigated agriculture to date, which in turn brings a large opportunity to increase efficiency and management through improved understanding of how best to integrate irrigated agriculture into existing cattle enterprises.
However, where local conditions are favourable, trials and an increasing body of research are indicating that improved cattle production is both possible and profitable through irrigated agriculture with good management. Even where profits take a considerable period of time to be realised and may be marginal, producers may still seek to pursue irrigated agriculture for the other benefits it can provide to their operations, such as:
(ii) In the Pilbara region, 2,588 hectares are under irrigation on pastoral leases.
(b-e) Please refer to tables below.
Kimberley pastoral stations with irrigation for cattle:
Station name
Location (by Shire)
Area currently under irrigation (ha)
Water licence (GL)
Gogo
Derby – West Kimberley
68
1.5
Debesa
Derby – West Kimberley
28
0.3
Liveringa
Derby – West Kimberley
270
6
Mowanjum
Derby – West Kimberley
38
0.7
Kilto
Broome
300
2
Nita Downs
Broome
80
4
Anna Plains
Broome
25
0.6
Wallal Downs
Broome
590
14.2
Total
1,399
29.3
Pilbara pastoral stations with irrigation for cattle:
Station name
Location (by Shire)
Area currently under irrigation (ha)
Water licence (GL)
Pardoo
Port Hedland
950
14.6
Minderoo
Ashburton
100
13.2
Hammersley
Ashburton
1,500
18.25
Warrawagine
East Pilbara
38
2.7
Total
2,588
48.75
The Department of Water and Environmental Regulation provided the approved volumes as authorised under the Rights in Water and Irrigation Act 1914 . Note these figures are authorised amounts and that the full water allocations may not yet be utilised.
(f) The number of cattle on these projects and length of time they are there for is dependent on a large range of factors, including type of operation (stand and graze or cut and carry), type of crop, size and genetics of cattle being fed, the market being targeted, time of year and seasonal factors.
(g) The full text from the article provides further clarification to the figures quoted. The Pilbara benchmark quoted in the article is an average estimate of the cost of production under a rangelands system with standard breeds of cattle, such as short horn and brahman. Production of wagyu cattle is a high-value end product which has a higher economic cost of production and would attract a higher price than the benchmarks quoted.
(h) No.
(i) The Department of Planning, Lands and Heritage has been provided documents from Pardoo Beef Corporation, reviewed by an independent agribusiness consultant, showing that irrigated pasture aggregation and associated land at Pardoo station have a high likelihood of being financially viable. These documents are currently under review and are not yet in a position to be distributed.
Further, the results presented in the Mowanjum Irrigation Trial Industry Report and a recent report, ‘Irrigated Fodder and Grazing Animal Production Systems Analysis for the Northern Beef Industry’, completed by the Kimberley Pilbara Cattleman’s Association in partnership with the Department of Primary Industries and Regional Development (DPIRD) outline important considerations in deciding to diversify a pastoral enterprise with irrigated fodder. DPIRD is also finalising a Technical Bulletin ‘Mosaic agriculture – a guide to irrigated crop and forage production’ which will share further research and understanding with producers.
There are challenges in generating a positive return on investment from irrigated agriculture given factors including remoteness, high capital cost of development and variable rainfall. Indeed, there are still only a small number of properties that have pursued irrigated agriculture to date, which in turn brings a large opportunity to increase efficiency and management through improved understanding of how best to integrate irrigated agriculture into existing cattle enterprises.
However, where local conditions are favourable, trials and an increasing body of research are indicating that improved cattle production is both possible and profitable through irrigated agriculture with good management. Even where profits take a considerable period of time to be realised and may be marginal, producers may still seek to pursue irrigated agriculture for the other benefits it can provide to their operations, such as:
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