In this issue:

1. Quick [ASK]
2. Welcome and announcements
3. Giving away your only marketing advantage
4. Update your diary
5. Other people's activities coming up
6. Books and materials you can use
7. Quotes that mean something

1. Quick [ASK]

Farmers who have decided to be really, truly biologically sound producers can decide not to play the price game this year. They will decide the level of their inputs, and for some, they will choose zero, because they can afford to sit out the market! They will not compromise their position and give away their only real marketing advantage, which is their low cost of production.

2. Welcome and announcements
In this issue I look at two things that really drive me these days. Firstly, our human health. A health problem in 2005 has changed me, and I make no apologies for that. What couldn't happen to me did. And I consider myself fortunate: I got a tap on the shoulder, and have no lasting damage. My life goes on normally, except that "normal" is now different, especially in relation to what I leave out of my diet. The things I leave out are industrialised foods of any sort: if the lable mentions 'vegetable oil', I'm outa here. Fast.

The second subject is related. Industrial food can in part only come about because we accept industrial agricultural practices on the farm. Sometimes we find that without a goal for ourselves others downstream have a goal for us. My main feature talks about marketing and low cost of production. I have realised now that in order to abandon low cost of production in commodity industries, it is necessary to choose, farm by farm, to give away the one marketing advantage over which we have control. Giving that away usually means playing the homogenous, industrial game. Enjoy this issue.

3. Giving away your only marketing advantage
I have banged on about this before, but its worth revisiting. I was prompted to write this article after reading Allan Nation's blog site recently. Allan is Editor of the prestigous Stockman Grass Farmer newspaper, based in Missouri. In this blogsite article Nation talks about the fact that if US corn growers could receive 2007 prices for their corn, grown at 2006 costs, they would be "sitting pretty" with Gross Profits of around $270/acre ($667/hectare). In reality they are growing 2007 crops at 2007 prices and have GP's of around $50/acre ($123/hectare), and if corn comes back to 2006 prices, most would be bankrupted. Of course that won't happen. Uncle Sam will step in to maintain the peasants on the farm.

This got me thinking a bit more. There is a widespread belief in agriculture and its service industries that Marketing is the big thing, the salvation of the peasant farmer. And in many ways marketing is important, very important. What I started to realise is this: with few exceptions, good marketing ideas can be replicated. Once people cotton on to what is happening, others move into the space. Until recently in the US, prices (to the farmer) for organic dairy products have been up to 100% higher compared to similar products produced conventionally. Guess what? Right now there is a dramatic oversupply of organic milk as literally hundreds of farmers move into the space. The conversion is partly fueled from a moral standpoint by producers who want to do things better, but in reality much of the movement has been dollar driven. There is no doubt in my mind that much of the perceived "marketing advantage" of organic agriculture will continue to erode as more producers move into the space, and organic production becomes 'commodified'.

At the same time I work with some of the lowest cost producers of beef, lamb and wool in the world. These people know they are producing nothing but a commodity, and have worked hard to make themselves bullet proof should prices decline, as they inevitably will. They make themselves bullet proof with productivity gains and more importantly, by making deliberate decisions about keeping costs low. Every overhead taken on increases your break even point. When working with one farmer recently we figured that the overhead of their new web site cost them 1 cent per kg of their wool production, and would not produce a single additional kilo of wool. Why did they have a web site? For marketing purposes!! Will the expected premium last in the event of a world downturn in prices? I have no idea, but I know that my clients won't make that price decision, the "market" will. Here is my new saying:

And the relevance of this in Australia, in particular? Guess what: with better grain prices the price of inputs is going through the roof. MAP and DAP are at all time highs. The salesmen are telling farmers this is connected to high oil prices, but your heart tells you that these people price their products at what the market will bare, and that this is not related in any meaningful way to their cost of production. Farmers with biologically unsound practises will be forced to continue buying high volumes of expensive inputs in order to sustain their production. Farmers who have decided to be really, truly biologically sound producers can decide not to play the price game this year. They will decide the level of their inputs, and for some, they will choose zero, because they can afford to sit out the market! They will not compromise their position and give away their only real marketing advantage, which is their low cost of production.

4. Update your Diary

TRAINING:
I will be running a limited number of courses this year. Please keep your eyes open for these opportunities.

Krambach (near Wingham, NSW) - May 23 to 25
A short course program organised by the Hunter-Central Rivers CMA. I believe there are only two places left. Focus is on ecosystem processes, decision-making and growing season grazing planning
For more details call Alison Allan or Lyn Booth on (02) 6557 0244 or (04) 2757 0244

Fremantle, WA - June 8 to 10
Full program over three modules. Farmbis subsidy approved for eligible people. The first session will cover ecosystem processes, decision-making and growing season grazing planning. Subsequently we will address holistic financial planning, and grazing planning in the non-growing season.
For more details call Phil Diprose on (03) 9878 9794 or (04) 2576 0596, or Suzie Ward on (02) 9929 5568 or (04) 2532 7577

Repeat attendence is welcome at both courses - tell your friends they are on!

COACHING:
For those who wish to establish or improve the holisticgoal, graze plan, land plan or financial plan for the next year

WA: I have time available in WA during the period 4 to 7 June. eMail me now to arrange a time

NZ: I am available during the period 2 to 6 July. eMail me now to arrange a time

CONFERENCES:
Two important ones coming up.

Steps to Sustainability: Cash and Credit from Carbon Conference, (*****)
June 26 and 27 at Timaru, NZ
John King (visit his web site here), Holistic Management CE in NZ has again organised the annual NZ conference. The program is fantastic, and I urge all Aussies to get off their tractors and take this in. There will be a strong field of Kiwis all spoiling to have a drink with you! Highlights include talks by outstanding soil researcher Kim Stevenson; Stephen Bell-Booth, who has done wonders for the soils on many farms in NZ.

For me the very special double feature is the presentation by Rit Fisher on Day One. The following day there is a field trip to Shenley Station, where Rit farms with his wife, Sara. Shenley is predominantly leasehold land, very similar to the NSW Western Land Leases and other similar titles in Australia. Read the link to study what goes on at Shenley - I know of no herd of cattle that exhibit the longevity this herd experiences. Truly remarkable.

To cheer us all up, there is a visit to South Canterbury Textiles, an investment of Russell and Jeanette Emmerson. This was the Swanndri factory until the company closed the facility in favour of manufacturing its famous NZ 'Swannis' in China. It is now churning out a range of products and working on many more innovative wool products.

Holistic Management International's Gathering, Albuquerque, New Mexico (*****)
November 1 to 4, 2007
This will be an absolutely fantastic event. Here is the link to check out the most incredible array of activities and to make your bookings. Both Joel Salatin (Salad Bar Beef) and Temple Grandin (the lady who does incredible things with stock handling) are booked to speak.

Forget the drought. It'll still be there when you get back! Forget the kids exams! Just do it, because the best holistic managers in the world will all be in the one room. I cannot rate this event highly enough.

Give Suzie a call on +61 4 2532 7577 to talk about who's going and what they are doing whilst there

5. Other people's activities coming up

Sally Fallon's Australian Tour is on this month and in June(Check your local dates here)
Author Sally Fallon (Nourishing Traditions and a number of other books) has a very strong message and sensible message about the food we eat. Find out more about the real benefits of traditional foods - eg grass fed meat and milk products, and many more natural and traditional foods.

6. Books and Materials you can use

"Nourishing Traditions" ISBN 0-9670897-3-5
Sally Fallon

In her preface, Sally Fallon says, "The premise of this book is that modern food choices and preparation techniques constitute a radical change from the way man has nourished himself for thousands of years, and from the perspective of history, represents a fad that not only has severely compromised his health and vitality but may well destroy him... She says, "We have almost forgotten that our natural state is one of balance, wholeness and vitality".

The book is founded on the work of noted US dentist, Dr Weston A. Price, who in the 1920's and 30's studied the diets of fourteen healthy indiginous populations located on every continent (including Australia) who were not yet exposed to western processed foods. His startling research showed how healthy these "primitives" were when compared against the "civilised" western diet. These fourteen groups exhibited virtually no dental problems, his area of immediate scientific interest. He showed that subsequent exposure to western diet not only increased tooth decay in a very short time, but it physically altered the facial construction of these people. Added to this is ample evidence of increases in heart mortality and the eruption of previously unknown degenerative diseases.
The solutions seem simple, and includes (not an exhaustive list here, as the book is 675 pages): a return to grass fed meats and unpastuerised (and definitely not homogenised) grass produced milk products; the use of broths and gelatin, and lacto-fermentation; and totally avoiding hydrogenated vegetable oils. Vicky Poulter sells this and many other books: Call her on (04) 1135 7270 or check our favourite bookstores listed below.

By the way:
Most books we recommend are available at The Book Connection in Dubbo, NSW
Ph: 02 6882 3311 Fax: 02 6882 3311 or E-mail them
(Also ask David Pankhurst about their Mail Order Catalogue - it is terrific)
or
Scorpio Books in Christchurch, NZ
Ph: 03 379 2882 Fax: 03 379 2886 or E-mail them

7. Quotes that mean something

"How wonderful it is that nobody need wait a single moment to improve the world."
-- Anne Frank

"Always listen to experts. They'll tell you what can't be done and why. Then do it."
-- Robert Heinlein

"An optimist sees an opportunity in every calamity; A pessimist sees a calamity in every opportunity."
-- Winston Churchill