Dear Valued Interested Persons,

The Kenya Livestock Insurance Program (KLIP), a very meritorious Livestock Insurance Program, referred to in OBA update here , is precisely the kind of Government funded Livestock Drought Insurance program OBA Consulting and Australian Farmers have been calling for in Australia – in the case of Farmers ‘literally desperately’ calling for:

April 2019 – full article here

October 2019 – full article here

Does it surprise, shock, astound or otherwise anyone to know that the Australian Department of Foreign Affairs & Trade financially supports the KLIP when such a program fails to established in Australia for Australian Farmers?

Please find as follows from November 2018 in ‘Land Portal’ full article here

Further evidence of such financial support in Kenya here and here and below:

Pebbles the Cocky certainly doesn’t seem too happy our Government supports offshore funding of Livestock Drought Insurance Programs yet we do not have one in Australia for Australian Famers here

The KLIP is precisely the kind of program OBA Consulting has written to the Government about (attached from 5th June 2019) and the kind of program Australian Farmers have been pleading for.

Shortly after the October 4th 2019 Sky News article above ABC News reported on Mick Keelty’s review of the Murray-Darling Basin here which OBA Consulting released as an update, attached, on the 6th December 2019:

The Murray-Darling Basin’s top cop has tipped a bucket on the federal Agriculture Department,
saying it suffers from inaction and a risk-averse culture and has no clear mission when it comes to water.

David Littleproud & Mick Keelty

Article excerpt below with the full 135 page report is contained here

The Northern Basin Commissioner report, tabled on the final parliamentary sitting day of the year, said the Department of Agriculture (DA) “does not enjoy a good reputation”.

“The department suffers a reputation of having too many bureaucratic barriers preventing programs from being funded and completed in a timely fashion,” it said.

Illustrated below is how KLIP works* with involvement of Government and Insurers:

*How it works:

Satellites measure the colour of the land at both visible and infrared frequencies. By comparing the differences between two pictures, the data can tell if there is enough green food available for cattle.

If not, the insurance is triggered and money is made available to farmers to purchase feed.

Below is an excerpt from a press release on payouts to more than 10,000 herders covered by KLIP in 2017:

Similarly in Mexico, Swiss Re successfully worked with the Mexican Government to insure 5,200,000 head of Livestock – excluding sheep.

Australia has 27,000,000 head of Cattle thus 5.2 million head of Livestock in Australia would represent 20% of Australia’s entire Cattle resources:

Further interesting to note the Mexican Government provided 100% subsidy:

Here in Australia we need to protect our:

27,000,000 head of cattle    

45,000 Pastoralists across Australia

and our $20,000,000,000 Red Meat & Livestock worldwide market

When the worst of this Drought passes the next one won’t be far away and we have all seen enough weather related graphs without seeing another one to know that is true.

Science has no agenda:

We have got to get ahead of the issues around Drought and build some genuine resilience – Livestock Drought insurance being a key pillar within a wholistic resilience plan

Brett O’Brien – Managing Director OBA Consulting

‘Whilst sadly it is impossible to eliminate Livestock loss due to Drought being able to purchase feed subsequent to access to funds via Livestock Drought Insurance could quite literally be lifesaving for Farmers and their Cattle’

Brett O’Brien – Managing Director OBA Consulting

‘Noting Australia is currently ranked 3rd in terms of Developed Countries, are we going to take responsibility for protecting our Cattle resources?

The responsibility should not rest with the Government to cyclically, reactively hand out tax payer funded bail out packages.

Nor should the Government rely on tax payer funded bail out packages to secure re-election.

Insurers including re-insurers require Government assistance to be able to provide responsible Pastoralists the option to insure their Livestock against Drought.

Tax payer funded bail out packages subsequent to foreseeable events are reactive and not the actions of responsible nations’

Brett O’Brien – Managing Director OBA Consulting 

OBA Cunsulting Youtube Channel here

If you have missed any previous updates from OBA Consulting they are catalogued monthly as follows here

Best wishes, good health and prosperity to all our Valued Interested Persons for the festive period.

May 2020 be the year we materialise Livestock Drought Insurance in Australia:

As always thank you for reading and again good health and prosperity.

Cheers!,
Pat