Latest / The Front / How Elon Musk became the bushie's friend
Transcript
- 0:06Speaker 1: You can listen to the Front on your smart sneaker
- 0:08Speaker 1: every morning to hear the latest episode, Just say play
- 0:12Speaker 1: the news from the Australian. From the Australian, here's what's
- 0:23Speaker 1: on the Front. I'm Claire Harvey. It's Thursday, July eighteen.
- 0:30Speaker 1: Australia is accepting Israel's explanation for the airstrike that killed
- 0:34Speaker 1: aid worker Zomi Frankom in Gaza. FRANKLM and your colleagues
- 0:38Speaker 1: from the World Central Kitchen charity died instantly on April
- 0:43Speaker 1: one in what the Israeli Defense Force said was a
- 0:45Speaker 1: tragic accident. The Albanese government sent former Defense chief Mark
- 0:49Speaker 1: Binskin to investigate the deaths, and today The Australian reveals
- 0:53Speaker 1: Binskin will recommend new protocols for international aid organizations working
- 0:59Speaker 1: in war zones. The Greens want Labor to overrule the
- 1:05Speaker 1: Reserve Bank of Australia if it tries to hike interest
- 1:08Speaker 1: rates again. That story is part of the Australian series
- 1:11Speaker 1: on the Small Party with Big Ambitions, and it's live
- 1:14Speaker 1: now at the Australian dot com dot au. If you
- 1:20Speaker 1: live in the Bush, you're probably listening to the Front
- 1:23Speaker 1: via satellite like Elon Musk's Starlink network, which has become
- 1:27Speaker 1: a crucial part of Australia's food belt. In today's episode,
- 1:32Speaker 1: we'll dive into the big issues for the Bush, including
- 1:35Speaker 1: patchy internet and why you might be eating mince for
- 1:39Speaker 1: dinner tonight. I'm willing to bet you're cooking dinner at
- 1:49Speaker 1: home much more often these days, and I reckon you've
- 1:52Speaker 1: cut back on takeaway coffee times are tight and at
- 1:56Speaker 1: the supermarket we're buying stuff in tins and stuff on special.
- 2:00Speaker 1: But here's the twist, many Australians are also buying more
- 2:04Speaker 1: expensive supermarket products. Here's Cole's chief commercial officer and A Croft.
- 2:11Speaker 2: Definitely a trendom frozen in bulk as customers become ready
- 2:15Speaker 2: savy around how they shop.
- 2:17Speaker 1: Croft is speaking at the Australians Global Food Forum, a
- 2:21Speaker 1: gathering of farmers, manufacturers, retailers and investors we hold every year.
- 2:27Speaker 2: But we are seeing customers trading into the premium tes
- 2:29Speaker 2: so there's nodar as customers are eating more at home
- 2:32Speaker 2: that premium section across lots of our brands coming through
- 2:34Speaker 2: and with seeing that and our calls fine us up
- 2:36Speaker 2: kind of twenty percent.
- 2:37Speaker 1: At the independent supermarket chain IgA Richies. They call it
- 2:41Speaker 1: the mincemeat Index.
- 2:43Speaker 3: We're finding out mid sales beef min's chicken mince is
- 2:47Speaker 3: through the roof, and that's an indication that people are
- 2:50Speaker 3: trading down, perhaps from a steak and instead buying the
- 2:53Speaker 3: cheaper cuts of meat.
- 2:55Speaker 1: This is the boss of Ida Richies, Fred Harrison. He's
- 2:59Speaker 1: talking at the food to our retail reporter Eli greenblat
- 3:03Speaker 1: but I don't.
- 3:03Speaker 3: Think people are making a lovely specific meal five nights
- 3:06Speaker 3: a week. I think people are making big batches of food.
- 3:09Speaker 3: We know now our pasta sales are through the roof,
- 3:12Speaker 3: and the ingredients are going the pasta sources, et cetera,
- 3:15Speaker 3: And people are making big batches and might put in
- 3:17Speaker 3: the fridge or the freezer and use that two or
- 3:19Speaker 3: three times through the week.
- 3:21Speaker 1: And that twist again. We're buying a nicer kind of mints.
- 3:26Speaker 3: It is a little bit more of the premium intwo,
- 3:27Speaker 3: not just the cheapest means some of the premium minss.
- 3:30Speaker 3: But that category is going strengths to strength.
- 3:34Speaker 1: So we're shopping more. But we are not loving the
- 3:37Speaker 1: supermarkets right now. Allegations of price gouging and excessive market
- 3:42Speaker 1: power have coals and woolies under pressure, but the retailers
- 3:47Speaker 1: are suffering with the cost of living too, as manufacturers
- 3:50Speaker 1: push up prices and the cost of fuel and energy
- 3:53Speaker 1: saws and so are suppliers. Jeff Kennett is the former
- 3:58Speaker 1: Premier of Victoria and now chair of the original Juice Company.
- 4:04Speaker 4: Right now, the public are looking around more than ever
- 4:07Speaker 4: before for value, and that's tough on all the supermarkets,
- 4:12Speaker 4: small and large. But there is a point which the
- 4:15Speaker 4: public says, I'm not going to pay more than this
- 4:17Speaker 4: price for a liter and a half of juice. So
- 4:21Speaker 4: we're getting squeezed. One end. The public understandably is squeezing,
- 4:25Speaker 4: as is the end, and I'm drinking more whiskey.
- 4:28Speaker 1: Here's a little example from IgA Richie's Fred Harrison says
- 4:32Speaker 1: on July one, twenty three, the company's costs in Victoria
- 4:37Speaker 1: rose by four million dollars in government charges overnight. That
- 4:42Speaker 1: was an increase in payroll tax, a mental health levy,
- 4:45Speaker 1: and work cover. That's just one.
- 4:47Speaker 4: State governments are screwing the private sector. They're screwing them.
- 4:54Speaker 4: Why is it always the poor bloody supermarkets for actually
- 4:58Speaker 4: delivering the farmer's product, employing the people paying the taxes
- 5:02Speaker 4: and charges who have been whipped to death.
- 5:05Speaker 1: And here's another challenge staff.
- 5:08Speaker 3: We're finding people want to come in and perhaps work
- 5:11Speaker 3: in the store, but they don't want any responsibility, so
- 5:13Speaker 3: to get management, whether it be store management or deli
- 5:16Speaker 3: managers or produce managers. I just want to come in
- 5:19Speaker 3: work nine to five, had no hassles, don't want to
- 5:20Speaker 3: take on responsibility. Getting leaders is one of the biggest
- 5:23Speaker 3: problems in Australia at the moment.
- 5:25Speaker 4: And they want to serve in a supermarket from home,
- 5:27Speaker 4: don't they thank you?
- 5:32Speaker 1: Supermarkets are so unpopular right now that there's a strange
- 5:36Speaker 1: double act the Coalition and the Greens both want the
- 5:40Speaker 1: power to force the powerful duopoly Coals and Woolies to
- 5:43Speaker 1: break up. It sounds good, right, more owners, more competition,
- 5:48Speaker 1: hopefully lower prices and better deals for workers and suppliers.
- 5:52Speaker 1: But and across from Coal's totally like she doesn't think
- 5:55Speaker 1: it would work.
- 5:56Speaker 2: We're run eight hundred and fifty super markets across office
- 6:00Speaker 2: see their whole national footprints, and I think we have
- 6:03Speaker 2: a very large fixed cost base. And if that was
- 6:05Speaker 2: seven hundred and fifty supermarkets, it actually wouldn't make a
- 6:08Speaker 2: meaningful difference to our cost base, and therefore it would
- 6:12Speaker 2: really impede our ability to fractionalize those costs across our
- 6:15Speaker 2: business and to drive greater efficiency, and therefore, as a
- 6:19Speaker 2: result of that that could or may lead higher prices
- 6:22Speaker 2: for customers.
- 6:23Speaker 1: Ida Richies has a different take. Asked if they could
- 6:27Speaker 1: buy supermarkets in say, regional Queensland if Coals or Woolies
- 6:32Speaker 1: was forced to sell them off. Fred Harrison said this.
- 6:36Speaker 3: Look in the instance of Richie's, we probably could. However,
- 6:40Speaker 3: it's not quite as simple as the government saying you've
- 6:44Speaker 3: got to offload one hundred stores or slow these landlords involved,
- 6:47Speaker 3: and landlords have made decisions and borrowed money and have
- 6:50Speaker 3: commitments and cap rates that are important to them, and
- 6:54Speaker 3: a lot of these Coals Wooly stores pay significant rents
- 6:58Speaker 3: that independents are necessarily in a position to mat set rent.
- 7:02Speaker 1: Fred Harrison poses another solution, draw a line in the
- 7:06Speaker 1: sand and accept the deewopoly as it is for the moment,
- 7:09Speaker 1: but then plan for a future which gives shoppers more options.
- 7:14Speaker 3: In other words, instead of having Woolish Coals on every
- 7:17Speaker 3: second or third street corner, what we could possibly do
- 7:20Speaker 3: before a new site is approved, whether it be a
- 7:22Speaker 3: greenfield site or an acquisition, is to a competition test
- 7:26Speaker 3: and say, okay, in that market a five kilometer radius,
- 7:30Speaker 3: say a metro, how many woolies or coals are there
- 7:33Speaker 3: there now? And is there an independent or good independent
- 7:36Speaker 3: in that area or an only I think the more
- 7:39Speaker 3: independence to get out there, the better it's going to
- 7:41Speaker 3: be for competition in the long run.
- 7:46Speaker 1: After the break, why frustrated farmers have turned to Elon
- 7:50Speaker 1: Musk's Space program to get reliable internet. The Global Food Forum,
- 7:55Speaker 1: sponsored by Visi, is part of how the Australian gets
- 7:57Speaker 1: into the contest of ideas from the city to the sticks.
- 8:02Speaker 1: Check us out at the Australian dot com dot au
- 8:05Speaker 1: and we'll be back after this break. Starlink, if you've
- 8:23Speaker 1: heard of it, you might know this is one of
- 8:25Speaker 1: the businesses owned by the world's richest man, Elon Musk.
- 8:29Speaker 1: It's probably the business rather than Tesla or Twitter that
- 8:33Speaker 1: makes Masks so influential. Starlink is a satellite internet provider
- 8:39Speaker 1: fired by Masks SpaceX rockets.
- 8:42Speaker 2: One confession and with a pad that go free back
- 8:48Speaker 2: so it.
- 8:51Speaker 1: Mask's big innovation was to create reusable rockets which can
- 8:55Speaker 1: launch into space, set satellites into a low orbit, and
- 8:59Speaker 1: then return to Earth to be deployed all over again.
- 9:03Speaker 1: On the grim battlefields of Ukraine, Russian and Ukrainian soldiers
- 9:08Speaker 1: alike are buying Starlink boxes so vacant connect to the world,
- 9:13Speaker 1: and in the Australian Bush, anyone who wants reliable Internet
- 9:17Speaker 1: is also buying a starlink box. They are about three
- 9:20Speaker 1: hundred and sixty dollars and then you pay around one
- 9:23Speaker 1: hundred and forty dollars a month to connect. Starlink says
- 9:26Speaker 1: it has more than two hundred thousand customers in Australia.
- 9:30Speaker 5: We've had Starlink for quite a while. I still have
- 9:32Speaker 5: my Mbian Skymaster. I'm big on having a bit of
- 9:35Speaker 5: security and redundancy.
- 9:37Speaker 1: This is Georgie Somerset. She's a farmer and a grazier
- 9:41Speaker 1: and she's one of those powerful country women who was
- 9:44Speaker 1: turned speaking up for the bush into her lifetime's calling.
- 9:49Speaker 5: But our businesses have become very reliant on being connected.
- 9:52Speaker 5: So it's not a it'd be nice to have mobile coverage.
- 9:54Speaker 5: It's actually we rely on it for telemetry and observations
- 9:58Speaker 5: and things like that now. And when we we saw
- 10:00Speaker 5: one of the satellites failed last year, that's directing our tractors.
- 10:04Speaker 5: That's our data and our planting and our harvesting data,
- 10:07Speaker 5: you know. So we're this is not a nice to have,
- 10:10Speaker 5: it's a actual business operations one I one to have
- 10:13Speaker 5: connectivity now.
- 10:15Speaker 1: She's on the board of the ABC, a director of
- 10:17Speaker 1: the National Farmers Federation and the general president of ag
- 10:21Speaker 1: Force Queensland. For many farmers, local internet providers just aren't
- 10:27Speaker 1: cutting it. Sales of the NBN satellite services have been
- 10:31Speaker 1: in rapid decline, the number of connections falling almost twenty
- 10:35Speaker 1: percent in the first quarter of this year alone. Starlink
- 10:39Speaker 1: says it delivers between one hundred and two hundred and
- 10:42Speaker 1: fifty megabits of download per second across Australia. That's up
- 10:46Speaker 1: to twice as fast as four G. While Georgie's keeping
- 10:50Speaker 1: her Skymaster service, many others are not. It's not just
- 10:55Speaker 1: connecting to the internet, which is fraught. Some regional areas
- 10:58Speaker 1: could lose their phone in coming months. Telstra will shut
- 11:03Speaker 1: down their three G services, also known as their next
- 11:06Speaker 1: G networks, in August. Optus isn't far behind with their
- 11:10Speaker 1: three G networks to shut down in September. While most
- 11:14Speaker 1: of Australia moved off the three G network to four
- 11:17Speaker 1: G and five G long ago, some regional areas still
- 11:21Speaker 1: don't receive those signals. For some this goes beyond being
- 11:25Speaker 1: able to make a phone call or send a text.
- 11:28Speaker 1: Older automated farming equipment which uses the three G network
- 11:32Speaker 1: will also become obsolete. Georgie Somerset says the cost of
- 11:39Speaker 1: living crisis in the Bush is a little different.
- 11:42Speaker 5: And I think it's interesting when you hear that they
- 11:44Speaker 5: talk about sort of twenty percent of people are chasing
- 11:46Speaker 5: the specials. You often don't have that privilege of chasing
- 11:49Speaker 5: the specials when you only go into town once every
- 11:51Speaker 5: couple of weeks.
- 11:52Speaker 1: Are you seeing changes in the ability of families to
- 11:56Speaker 1: remain on the land, to remain producing food.
- 12:00Speaker 5: I'm not saying a diminution of that at the moment,
- 12:02Speaker 5: but what I think will see is probably more families
- 12:05Speaker 5: doing the labor, so less labor units required, which then
- 12:08Speaker 5: can have a flow through in rural communities, and when
- 12:10Speaker 5: those families go, it has a flow on to schools
- 12:13Speaker 5: and things like that as well. It's a tricky Conundrum, an.
- 12:26Speaker 1: Artwork by the Australians cartoonist Johannes Leek, has prompted Green
- 12:30Speaker 1: senator at Marine Feruki to threaten legal action. To see
- 12:34Speaker 1: the cartoon and read Why Feruki is Upset, join ours
- 12:37Speaker 1: subscribers at the Australian dot com do AU