Food and agribusiness. South Australia a clean, green environment Invest and grow with us in South Australia If your business interests are in agriculture or food, wine and beverages production, then South Australia offers rich opportunities for growth and competitive advantages unique to our state. We have a global reputation for producing safe, high quality food and beverages, grown in our pristine land and marine environments. In fact, agriculture, food and wine production and forestry are South Australia’s largest export earners, generating $21 billion a year and accounting for 52 per cent of total exports. As an example, South Australia’s average annual grain harvest is seven million tonnes and 85 per cent is exported to countries including China, Indonesia, the United Arab Emirates and Belgium. South Australia’s Riverland is Australia’s largest citrus producing region and we export an average of 55,000 tonnes each year to markets including Japan, China and Malaysia. Our geographical location in the centre of Australia makes our state the ideal hub for distribution of food and beverages within Australia and we have established export networks by air and sea. In addition, new frequent airline connections from our 2 Investment Attraction South Australia | Food and Agribusiness capital city, Adelaide, offer excellent cold chain logistics to markets in China, the Middle East and South East Asia. Australia has free trade agreements with many countries, including China, Japan, Korea, Singapore, Malaysia and Thailand. Figures from Austrade show that ten of the country’s top 12 goods and services export markets are in the Asian region. Australia’s two-way trade in goods and services totalled A$664 billion in 2014 (42 per cent of GDP). Producers in South Australia benefit from this open door approach and our state government is proactive in supporting export industries. Investment Attraction South Australia offers tailored, personalised support for all prospective investors to streamline the process of investing in our State. We invite you to explore all that South Australia has to offer to help your business grow. We have a global reputation for producing safe, high quality food and beverages, grown in our pristine land and marine environments. South East China Qatar Dubai Direct flights to our capital city, Adelaide Hong Kong Kuala Lumpur Singapore Denpasar Adelaide Auckland A major force in our economy Food and wine produced in South Australia for domestic and export markets generates revenues worth $18 billion a year. This sector accounts for half our total goods exports and employs one in five South Australians. Considering that world demand for food is forecast to rise by 70% by 2050, these figures present an exciting opportunity for our future and investors keen for a slice of the action. In 2014-15, finished food and wine values grew by $781 million, or 10.5% compared with the previous financial year, reaching a record level of $8.2 billion. This included significant increases in the wholesale value of processed meat and more moderate growth in fruit and vegetable processing and packing. Total overseas exports of food and wine increased by $397 million, or 8%, to reach a record $5.2b, representing almost half of all goods exports from the state. Food and wine grape production, measured in farm gate values, rose by $525 million, or 11% in 2014-15, due to solid growth in the value of livestock, grain and horticulture production. The Government of South Australia is a strong supporter of agriculture and the production of premium food and wine from our clean environment is one of the state’s Seven Strategic Priorities. Excellent freight logistics World leading R&D Clean, green environment Food safety & integrity Free trade agreements Counter seasonal growing Investment Attraction South Australia | Food and Agribusiness 3 We are looking for smart, innovative businesses in areas where South Australia has comparative advantages. Our comparative advantages 4 Food Safety Biosecurity Freight networks Cold chain logistics Investment Attraction South Australia | Food and Agribusiness How we work with you Investment Attraction South Australia is the peak agency for supporting investment into South Australia. We are the people to speak to if you are: >> establishing a presence in South Australia or starting a new business on a scale that creates jobs >> seeking joint venture opportunities >> growing an existing business in South Australia >> investing in South Australian businesses for growth. We are looking for smart, innovative businesses in areas where South Australia has comparative advantages. That’s why food and agribusiness is a key focus for us and we are here to help you make your investment in South Australia a success. With our agency partners, Investment Attraction South Australia will work with you by: >> offering a dedicated point of contact for all your requirements >> assisting with site selection >> ensuring you have the best support to expedite your project in South Australia >> simplifying dealings with government and other business partners >> providing policy and regulatory guidance >> providing access to government decision makers >> helping you access skilled workers and specialised professionals >> linking you to new and relevant technologies, services, skills and processes. Let’s talk We pride ourselves on our personalised approach and we want to understand your needs. Please contact us to get started. Nicolle Sincock Director Food and Agribusiness E [email protected] M +61 418 215 838 Investment Attraction South Australia | Food and Agribusiness 5 SUCCESS STORIES Ingham’s South Australia is set to become a strategic national hub for leading Australian chicken meat producer, Ingham’s, following the company’s decision to invest $275 million across multiple projects in our capital city, Adelaide, and nearby regional areas. The expansion is expected to create 850 direct jobs and 620 construction jobs. To meet growing local and national demand, the company is expanding its facilities to significantly increase its capacity throughout the production chain, including breeding, hatching, processing, feed production and product distribution at 15 sites. With this project, the company will double its rate of investment and the majority of that investment will be in South Australia. The company has comprehensive and ongoing support from Investment Attraction South Australia to help bring its plans to fruition in areas including transport, planning, regulation and water resources. The agency’s networks within the state government are assisting Ingham’s to expedite the project. Ingham’s supplies local supermarkets and food service companies. It also provides chicken products to national supermarket chains and quick service restaurants throughout Australia. 6 Investment Attraction South Australia | Food and Agribusiness South Australia is set to become a strategic national hub for this leading Australian chicken meat producer. SUCCESS STORIES Sundrop Farms This company is a leader in sustainable horticulture in arid environments, growing high-value crops using seawater and sunlight near Port Augusta in South Australia’s north. The farm harnesses thermal energy to power 20 hectares of adjoining glasshouses, which produce about 350 tonnes of tomatoes each week. The sun’s energy is reflected upwards to a 127 metre tall tower by 24,000 mirrors arrayed around the tower. The energy is used to heat seawater, generating electricity from the steam and providing thermal heating for the glasshouses. The electricity drives a desalination plant that processes seawater from nearby Spencer Gulf, which is used to irrigate the hydroponically grown crops. Sundrop Farm’s pioneering technology allows it to produce food in non-traditional locations that typically have limited access to arable land, fresh water sources or grid energy. The Port Augusta farm is also spearheading a global shift towards intensive yet sustainable food production, using lower inputs on a bigger scale with greater efficiency. Investment Attraction South Australia and its predecessor agency has maintained a long-term relationship with the company since the farm at Port Augusta was proposed and continues to provide strategic support to this pioneering company. A leader in sustainable horticulture for the arid world, growing high-value crops using seawater and sunlight. Investment Attraction South Australia | Food and Agribusiness 7 Global strength in research, education and training From plant genetics and genomics, to food safety and post-harvest food quality, South Australia is able to respond to the global upsurge of interest in food, agribusiness and food manufacturing, thanks to our world class research, development and extension. Our significant investment in research and innovation, through three world-class public universities and more specialised institutions, provides opportunities for food producers and agribusiness to access markets and respond to new challenges. The Waite Research Precinct, only 5.5 kilometres from Adelaide’s central business district, is the largest of its kind in the Southern Hemisphere. It underpins Australia’s agricultural industries with both fundamental and applied research, with particular strengths in grains, soil science and wine production. The precinct is home to 17 research organisations, centres and nodes, and has about 1,500 scientists, technicians, teachers, support staff and students. It aims to contribute solutions to the emerging challenges of global food security and agricultural sustainability by stimulating and supporting international research on profitable and sustainable production in target sectors. The precinct is: > Australia’s centre of research capability for both grains and wine research > a global leader in agriculture, food, wine and natural resources science > An international model with capability in whole-of- value chain approaches > 80% of southern Australian cereal production is from varieties developed at Waite. 8 Investment Attraction South Australia | Food and Agribusiness Waite partners include: University of Adelaide, Commonwealth Scientific and Industrial Research Organisation, South Australian Research and Development Institute, Australian Wine Research Institute, Australian Centre for Plant Functional Genomics, FOODplus Research Centre and the industry organisation, Food South Australia. Among the precinct’s key national and international partners are Mosaic, Viterra, Carlsberg, Sapporo, Heineken, Monsanto and Dupont/Pioneer. The South Australian Research and Development Institute (SARDI) provides services to the state government, commercial clients and research partners to help make South Australia’s primary industries and regions competitive and ecologically sustainable. SARDI’s programs are designed to increase the productivity, sustainability and adaptability of the tate’s agriculture, food and wine, fisheries and aquaculture and bioscience enterprises. South Australia is able to respond to the global upsurge of interest in food, agribusiness and food manufacturing. South Australian research on human health and nutrition complements the research on agriculture and food production. The purpose-built South Australian Health and Medical Research Institute has begun attracting some of the world’s best and brightest researchers to an outstanding medical precinct. More than 30,000 international students from 125 countries study here every year, creating a pool of expertise that makes Adelaide an ideal base for Asia Pacific growth. University of Adelaide, University of South Australia, and Flinders University offer a range of undergraduate and postgraduate courses relevant to food and agriculture, including: South Australia also produces skilled workers and specialised professionals to suit food and agribusiness, as the focus on these sectors in research is reflected in the graduates and trainees produced. >> food and nutrition science >> nutrition and dietetics >> food technology >> agricultural science >> veterinary science >> animal husbandry >> wine and oenology >> global food and resources. South Australia also has private specialist training institutions which produce graduates skilled and ready to work in the food industry. Regency College, a campus of Technical and Further Education South Australia, is home of the International Centre for Tourism, Hospitality and Food Studies. Its food and beverage courses include baking, cooking, food technology, meat processing, cheese making, viticulture and wine production. Le Cordon Bleu has a campus in Adelaide, which is also the company’s Australian head office. It offers a range of courses in gastronomy and culinary arts. The Australian Food Training Centre provides specialist training and consulting for food industries, including food processing, food safety and process manufacturing. The universities also offer engineering, science, maths, computer science, marketing and a range of other complementary disciplines suited to the food industry. Investment Attraction South Australia | Food and Agribusiness 9 Our productive regions FAR NORTH EYRE and WESTERN annual $139m Total agricultural output annual $1.5b Total agricultural output Key commodities: beef, sheep meat, wool. Key commodities: southern bluefin tuna, marine scalefish, oysters, mussels, abalone, wheat, barley. Famed as Australia’s seafood frontier, producing 82% of SA’s seafood, most exported as premium product. Home of Australia’s biggest commercial fishing fleet. Total aquaculture output in 2014-15 valued at $171 million, from a state total of $189m. A major grain producer, growing 1.8 million tonnes of wheat and 399,000 tonnes of barley. Covers 80% of South Australia’s land mass. Home of huge pastoral properties, including Anna Creek, the world’s largest working cattle station on 24,000 square kilometres. Home of Sundrop Farms, the pioneering greenhouse facility that utilises solar power and desalinated sea water to produce truss tomatoes. ADELAIDE HILLS, FLEURIEU AND KANGAROO ISLAND LIMESTONE COAST annual $1.3b Total agricultural output Key commodities: beef, dairy products, sheep meat, pig meat, wool, potatoes, onions, rock lobsters, wine, stock feed, pasture seeds. Lush region of 21,000 square kilometres in the state’s south east and a primary production powerhouse. Annual output from dairy valued at $130 million and much of the milk is processed locally into cheeses, yoghurts, milk powders and other dairy products. Supplies locally grown potatoes and onions to major Australian supermarket chains Woolworths and Coles. Lamb and beef processed at Bordertown and Naracoorte and sold to the world. annual $834m Total agricultural output Key commodities: dairy goods, almonds, pears, apples, strawberries, cherries, honey, chocolate, premium wines, craft beers, boutique ciders, gourmet foods. High rainfall region close to South Australia’s capital city, Adelaide, with five premium food and wine sub-regions, and significant agritourism. Total dairy output in 2014-15 was $99 million, produced by 25,000 cattle. Total food and beverage processing output was $453.5m. South Australia’s Agricultural sector 2014 -15 $9b Total $1.6b Exports production (overseas and interstate) 38,000 Full time equivalent employment Source: Econsearch (2016), Input-Output Tables for South Australia and its Regions 2014-15 Update, prepared for Department of Premier and Cabinet. YORKE and MID NORTH annual $1.8b Total agricultural output Key commodities: cereals, pulses, poultry, eggs, pigs, sheep meat, beef, wool. Produces about 28% of the state’s poultry meat and eggs for a total value of $131 million per year, to be boosted when a new free range farm for 180,000 chickens near Port Germein is completed by Days Eggs. Grows 44% of the State’s grain for an annual value of $1.26 billion and about 22% of its pig output, valued at $80 million. Pigs raised in the region and surrounding areas are processed at JBS/ Primo abattoir at Port Wakefield, one of the biggest in Australia. Region’s strategic central location enhanced by Bowman’s Intermodal hub, with direct rail links to shipping ports of Port Pirie and Port Adelaide. AGT Foods Australia new $850,000 expansion of its facility at the hub has South Australia’s only dedicated storage and processing facility for export cereals and pulses. MURRAY and MALLEE $2b Total annual agricultural output Key commodities: Almonds, citrus and stone fruit, wine and table grapes, vegetables, pigs, poultry. Known as the food bowl of South Australia, thanks to horticultural properties irrigated from the River Murray. Produces about half of the state’s vegetables, including potatoes, onions, carrots, mushrooms and lettuce, for a total annual value of $533 million. Grows $300 million of grapes, more than half of South Australia’s total harvest. Pig industry has an annual output of $145 million, or 40% of state’s total. Nine million tonnes of almonds grown each year. Growth in commodities complemented by growth in major abattoirs and food processors, including Thomas Foods International, Big River Pork, Almondco and Nippy’s Fruit Juices. BAROSSA, LIGHT and LOWER NORTH annual $768m Total agricultural output Key commodities: wines and spirits, fruit and vegetables, poultry, pigs, smallgoods, dairy products, gourmet foods. Australia’s best known wine region, producing 38% of South Australia’s wines and spirits, worth $635 million In 2014-15. Total manufactured foods produced, such as smallgoods, cheese and conserves, worth $243m, nearly half of the state’s total. Intensive, high tech horticulture also thrives here. Fpr example, the multimillion dollar investment by D’Vine Ripe in state-of-the-art greenhouse facilities, which has boosted tomato production by 25%. The region also produces a range of flour products and stock feeds. It raises 25% of the state’s poultry and 28% of its pigs for annual outputs of $140 million and $99 million respectively. Exporting safe food from a clean environment South Australia’s status as a producer of premium food and beverages from our clean environment is supported by robust systems for biosecurity, environmental protection and food safety, making our state the ideal location for agriculture and food production. South Australia is the only Australian mainland state that is free of fruit fly, and one of the few places in the world free of the vinedestroying pest phylloxera. Every year, the state government spends about $5 million keeping fruit fly and other plant pests out of the state, through prevention, detection and eradication. A strong and effective biosecurity system is a priority for the state government and it covers: > animal health – disease surveillance and control > plant health – keeping fruit fly and other plant pests out of the state > weed and pest animal control – management and biosecurity > aquatic pest management > food safety > rural chemical operations > emergency management. 12 Investment Attraction South SA | Food Australia and Agribusiness | Food and Agribusiness South Australia also supports a national approach to biosecurity and has signed an Intergovernmental Agreement on Biosecurity. Biosecurity SA works in partnership with other state government agencies to ensure the highest possible standards are followed for food production in our state. Safety standards, accreditations and regulations cover all food commodities, including meat, seafood, fruit and vegetables, dairy products and eggs. Our state government is also committed to maintaining its moratorium on genetically modified crops, which will remain in place until at least 2019. All grain and food produced in South Australia is non-genetically modified. Being able to differentiate our products by their reliability and quality is a great opportunity for producers and suppliers, particularly those focussed on export markets. A strong and effective biosecurity system is a priority for the state government. South Australia – a strategic hub South Australia’s location in the middle of Australia makes it a strategic industry hub at the centre of the nation’s road, rail, sea and air networks. Our state is ideally located for the production and distribution of food and beverage products within and beyond Australia. It offers time and cost advantages for air and sea freight to key Asian markets and the state’s time zone is within two hours of major Asia Pacific centres, which suits doing business with these growing and populous markets. Our southern hemisphere location allows us to supply counter seasonal produce such as fruit, vegetables and seafood when it is at its best and at opposite times of the year to food produced in the Northern Hemisphere. South Australia exports premium food and beverages to more than 100 countries through an extensive logistics network of container loading and deep sea ports. We also have frequent and direct air freight connections to the growing food and beverage markets of South East Asia, China and the world through the Middle East. 10.30am Adelaide 9am Singapore The Adelaide-based Australian Produce Collective this year began daily exports of fresh fruit and vegetables to Dubai and has signed a memorandum of understanding for daily fresh produce exports to Singapore. B - d Farm Paris Creek, located south of Adelaide, exports its luxury, biodynamic dairy products to Singapore, Dubai, Hong Kong, Brunei and Fiji. And premium oysters grown at world famous Coffin Bay on Eyre Peninsula are still alive when they arrive at export markets across Asia, including Hong Kong, China and Singapore, thanks to unbroken cold chain logistics from farm to market. This includes the Pak Fresh facility at Adelaide Airport, a 1000 square metre cold store with full international accreditation. The facility is registered for seafood, meat, produce and dairy products. It is billed as the only one of its kind in Australia and is strategically located airside. 9am Hong Kong 10am Tokyo 9am Shanghai Investment Attraction South Australia | Food and Agribusiness 13 Food for the future South Australia is ideally positioned to meet the future food needs of countries in Asia, the Middle East and beyond. We have the natural resources, the primary production systems, the trade and freight networks, the expertise and the commitment to grow our food and agribusiness industries – creating rich opportunities for potential investors. Populations are booming in our neighbouring countries such as Singapore, Indonesia and Vietnam, which are restricted in domestic food production by lack of land and suitable growing environments. This has prompted governments and businesses in those countries to look abroad more than ever to secure food supplies. Between 2006 and 2015, Singapore’s population shot up from 4m to 5.5m, Indonesia grew from 223m to 255.5m people and Vietnam’s population expanded from 83m to 91.7m. Figures from the Australian Bureau of Statistics show that between 2004-05 and 2014-15, Australia’s overall exports to ASEAN countries grew by 92% from $15m to $28.7m. Many Asian countries are also achieving growing affluence, which has created an expanding middle class and an accompanying growth in demand for ready-made meals, Western style produce, luxury products and functional foods, which offer the promise of enhanced health benefits. 14 Investment Attraction South Australia | Food and Agribusiness South Australia grows and manufactures food commodities and finished products in all these categories and we have plenty of capacity to expand and diversify, particularly in grains, meat, dairy, seafood, fruit and vegetables, beverages, ready-made meals and functional foods. Of particular interest is the development of new techniques and technology in intensive vegetable production, enabling South Australian growers to increase their crop volumes and to offer year round supply to meet counter seasonal demand from the northern hemisphere. Another strong trend amongst Asian consumers is demand for food produced in jurisdictions with strong biosecurity and food safety standards. South Australia’s reputation for safe food and biosecurity is second to none and we have seen increased interest in the past 12 months in products such as dairy and seafood following major food safety concerns in other countries. We are ready and willing to work with you as potential investors in our state’s growing food and agribusiness industries. South Australia is ideally positioned to meet the future food needs of countries in Asia, the Middle East and beyond. Our opportunities in food and agribusiness Grains & pulses Dairy Meat & livestock Seafood Horticulture Food processing Beverages Ready made meals Functional food Investment Attraction Investment South Attraction Australia SA | Food and Agribusiness 15 Our state’s advantages for food manufacturing are backed up by strong support for this sector from the state government . Technology meets innovation for food processing of the future All the elements you need for successful and profitable food processing are right here in South Australia. We’ve got abundant and high quality raw materials, manufacturing capability and skills, suitable land and sites, access to critical infrastructure and logistics, outstanding research, and a supportive state government. We are ideally located as a base for enterprises keen to sell into the growing markets of Asia. It all adds up to a food and agribusiness ecosystem that nurtures innovation, collaboration and profitability. 16 Investment Attraction South Australia | Food and Agribusiness Some of the major food and beverage processing companies operating in South Australia include Pernod Ricard, Kirin Group Holdings, Mondelez International, Coca Cola, JBS, Ingham’s and Cargill. Smaller, national and locally owned operations include Thomas Foods International, Beerenberg gourmet foods, Bickford’s beverages, the Clever Cooks and Banquet brands from Australian Wholefoods, Nippy’s fruit juice and gourmet produce from Barossa Valley celebrity cook, Maggie Beer. In fact, South Australia’s food processing sector is a growing success story. As the table opposite shows, the value of finished food products has risen steadily in the past 10 years to reach $6.6 billion in 2014-15. The stand-out growth has been in meat processing, with increases in the value of beef, sheep, lamb and pig meat. 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 Value of finished foods, South Australia, 2004 - 05 to 2014 -15 7,000 6,000 4,000 3,000 $million 5,000 2,000 1,000 0 South Australia has a strong culture of innovation and collaboration between industry and research in food and agribusiness, enabling new developments in science and technology to be efficiently applied and commercialised by industry. This includes the development of new techniques for food manufacturing and refinement of existing processes and materials. Our state is also known as an early adopter of new technology and innovation across all sectors of industry. Adelaide convenience food manufacturer Mexican Express has recently invested in a new packaging machine, one of only seven in the world, which allows the company to package dairy products in pouches without the use of preservatives. This enables the company to put new products on the market, like its instant Nachos to Go, aimed at convenience stores, vending machines and cinemas. This product is shelf stable yet free of preservatives and gluten, making it an appealing choice for health conscious consumers. Our state’s advantages for food manufacturing are backed up by strong support for this sector from the state government, including regulatory reform to cut red tape, financial incentives, tax minimisation, investment to improve infrastructure such as transport corridors, and technical support from a range of agencies. Staff from Investment Attraction South Australia can provide guidance on these programs and the range of support available. Please get in touch with us if you are interested in what South Australia has to offer and we can help you to identify and investigate opportunities which will work for your business. Should you decide to go ahead with an investment, we will be with you every step of the way, providing access to key decision makers in the public and private sectors, and streamlining the process of bringing your project to reality. In addition, both the state and federal government have a range of programs to promote and support innovation and the use of new technology in manufacturing industries, including food processing. Investment Attraction South Australia | Food and Agribusiness 17 Processors surging ahead 18 In August 2016, South Australian company Thomas Foods International signed a memorandum of understanding with Thailand’s largest private business, the Charoen Pokphand Group, to build an advanced food processing centre in Adelaide to produce ready-made meals for export. The Midfield Group is planning for annual processing capacity of 220 million litres of milk a year at its $70 million plant, now under development in South Australia’s Limestone Coast. It will utilise the region’s abundant dairy to produce milk powders for Australia and export markets. Iconic beverage producer Bickford’s is creating a new market for grain and grapes, with the establishment of a spirit distillery and accompanying visitor centre and cellar door in South Australia’s Riverland. The investment will ensure spirit brands such as Black Bottle Brandy will continue to be distilled, matured and bottled in the region, as well as replacing significant volumes of imported distillate for other key trademarks. The company said it chose the Riverland based on the availability of raw materials, affordable land, local workforce, and the opportunity and tourism potential. Beston Global Food Company is developing a new state of the art cheese processing facility at Murray Bridge, which will greatly expand the range of premium cheeses which can be produced. In 2015, the company signed a distribution deal with Chinese retail giant Dashang Group to be its preferred Australian supplier of food and beverages. Investment Attraction South Australia | Food and Agribusiness “South Australia from a food and agriculture point of view offers many advantages. We see it as a very attractive place, both for our farming operations and our processing operations. Investment Attraction South Australia has provided us with a single focal point, someone who could help us manage our way through planning issues or local or state government matters.” Ingham’s Executive Chairman Mick McMahon Disclaimer Investment Attraction South Australia and its employees do not warrant or make any representation regarding the use, or results of the use, of the information contained herein as regards to its correctness, accuracy, reliability and currency or otherwise. Investment Attraction South Australia and its employees expressly disclaim all liability or responsibility to any person using the information or advice. This document is subject to change by Investment Attraction South Australia. Contact Nicolle Sincock Director Food and Agribusiness E: [email protected] M +61 (0) 418 215 838 Dr Vicki Mavrakis Business Development Manager Food and Agribusiness E [email protected] M +61 434 368 959 Zac McCrindle Business Development Manager Food and Agribusiness E [email protected] M +61 (0) 466 412 473 Brad Karanicolou Business Development Manager Food and Agribusiness E [email protected] M +61 (0) 431 220 641 www.invest.sa.gov.au Published October 2016
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