AGRIBUSINESS IN SOUTH AUSTRALIA
Developed in association with Primary Industries & Regions SA
South Australia produces
premium food & wine
from a
clean environment.
WINE • 62% of Australian
exports
• 50% of Australian red
wine production
• 40% of Australian wine
white production
• Premium brands &
regions
• Exports to 100 countries
FORESTRY • 188,000ha of plantations
• Softwood Radiata pine
• Hardwood Tasmanian
Blue Gums
• 35% of the labour force
in the South East
HORTICULTURE • Potatoes
• Tomatoes
• Citrus
• Almonds
• Carrots
• Mushrooms
SOUTH AUSTRALIA’S LARGEST EXPORT INDUSTRY
LIVESTOCK • Dairy
• Lamb
• Beef Cattle
• Pigs
• Chickens
• Wool
GRAIN • 20% of Australian
production
• 85% product
exported
• Wheat
• Barley
• Canola
• Pulses
FISHERIES &
AQUACULTURE • Southern Bluefin Tuna
exports to Japan
• Southern Rock Lobster
exports to Hong Kong &
China
• Oysters, Prawn, Abalone
• Kingfish
Source: PIRSA Food & Scorecards; ABS International Trade in Goods & Services 5368; ABS Labour Force, Australia, Detailed 6291. * PIRSA estimates agribusiness exports as 36% as shown in the ABS data plus a further 10% to capture the other/confidential items relating to agribusiness items (e.g. bulk barley) 3
AGRIBUSINESS IN SOUTH AUSTRALIA
KEY FACTS
$16 billion gross food & wine revenue
$4.80 billion exports
45% share of the State’s exports*
18% of the State’s workforce
Source: PIRSA Food Scorecard; PIRSA Field Crops Scorecard; ABARES Agricultural Commodity Statistics 2013
0.00
4.00
8.00
12.00
2008 2009 2010 2011 2012 2013
Other
Canola
Pulses
Barley
Wheat
Production volume (Mt)
85% of South Australian
grain is exported to
countries in the Middle
East, China, Japan &
South East Asia.
4
GRAIN
Wheat
Barley
4.03m tonnes produced
16% of Australian wheat production
Pulses
Canola
2.22m tonnes produced
24% of Australian barley production
516,600 tonnes produced
Strong focus in lentils, peas and beans
341,200 tonnes produced
11% of Australian canola production
KEY GRAIN FACTS
7.54 million tonnes produced
$1.78 billion production value
4.02 million hectares of planted area
4,500 grain farms
STORAGE & HANDLING
Capacity of over 10 million tonnes
126 grain receival sites
Efficient road and rail transport system
8 export terminals
Comparative time and cost advantage to key Asian export
markets
MARKETING
Established international and local grain marketing firms
PRIMARY PROCESSING
• Flour
• Malt
• Animal feed
• Biofuels
SECONDARY PROCESSING
• Pasta
• Beer
• Bakery products
5
GRAIN
OPPORTUNITIES
Growing global demand for grain food, animal protein, biofuels
International export importance Australia, Europe, South America
Industry consolidation opportunity farm scale increasing
Productivity enhancements in production
Improving processing efficiencies New processing opportunities
MAJOR LABELS
Source: ABS: Australian Wine & Grape Industry; PIRSA: Wine Scorecard 6
WINE
KEY WINE FACTS
49% of Australia’s planted area
50% of Australian red wine production
40% of Australian white wine production
$1.77 billion net wine revenue
0
500
1,000
1,500
2,000
1997 1999 2001 2003 2005 2007 2009 2011 2013
Other White Red
South Australian Wine Exports by Value ($m)
Source: Phylloxera & Grape Industry Board of SA; ABS: Australian Wine & Grape Industry; PIRSA: Wine Scorecard
7
Region Plantings Crush
Riverland 27% 62%
Barossa Valley 15% 6%
McLaren Vale 10% 5%
Langhorne Creek 8% 7%
Coonawarra 7% 3%
Clare Valley 7% 3%
Variety Plantings Crush
Shiraz 34% 30%
Cabernet Sauvignon 22% 17%
Merlot 5% 6%
Chardonnay 13% 19%
Riesling 4% 2%
Sauvignon Blanc 3% 4%
PREMIUM WINE REGIONS & BULK
PRODUCTION
South Australia is famous as a producer of premium wine with
world renowned regions including the Barossa Valley, McLaren
Vale, Coonawarra and the Clare Valley.
South Australia is also a major producer of bulk wine with 62%
of the State crush coming from the Riverland region.
7
WINE
-
200.00
400.00
600.00
800.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
China
USA
UK
South Australian Wine
Exports Major Markets ($m)
OPPORTUNITIES
Combined vineyard and winery acquisitions
Growth in emerging markets Food & wine tourism
Exports
Key Markets
84% of production is exported
$1.17 billion export value
62% of Australian wine exports
United Kingdom
North America
Emerging Markets China
Korea
India
CLEAN ENVIRONMENT
Much of the production is based in the Southern Ocean, one of the cleanest
oceans in the world leading to a premium product from a clean & safe
environment.
Source: PIRSA: Seafood Scorecard 9
FISHERIES AND AQUACULTURE
Southern Bluefin Tuna
Southern Rock
Lobster
7.09 million kilograms produced
$146 million production value
1.54 million kilograms produced
$87 million production value
KEY FISHERIES & AQUACULTURE FACTS
$822 million gross food revenue
$266 million export value
50 commercial live catch and aquaculture species
Oysters Abalone Prawns Yellowtail
Kingfish
OPPORTUNITIES
Development of underutilised species blue mackerel, sardines, oysters, algae for biofuels
Growing demand for fresh fish in
export and domestic markets
Growth of aquaculture production
Innovation in production
techniques
Location advantages to key
export markets
TRACEABILITY
The livestock industry have implemented world leading measures across
the supply chain to ensure the safety, quality and integrity of Australian
meat.
These initiatives are headlined by the National Livestock Identification
System which track livestock from birth to slaughter enhancing the ability
to quickly contain any safety incident.
The livestock industry supplies a premium product driven by effective
food safety regulations, traceability from the farm to the consumer
and a focus on animal welfare.
Source: PIRSA: Livestock Scorecard 10
LIVESTOCK
FARMING & PROCESSING
KEY LIVESTOCK FACTS
$4.50 billion gross revenue
$1.91 billion farm gate value
$734 million export value
Lamb
Beef cattle
Dairy Wool
Pigs Chicken
SHEEP / LAMB BEEF CATTLE DAIRY CATTLE PIGS CHICKENS WOOL
Herd Size (head) 11m 1.2m 84,600 791,000 86m 11m
Farm Gate Value $401m $437m $223m $170m $215m $338m
Annual Processing* 4.9m head 420,000 head 117ML milk
5m kg cheese
1.2m head 86m head 35m kg
Processing Value* $585m $454m $228m $366m $499m $161m
Domestic Share of
Processing
17% 6% Not disclosed 26% 15% Not disclosed
Live Export Value $13m $16m n/a Nil Nil n/a
Processed Export Value* $381m $246m $8m $8m $12m $85m
Export Markets Japan
USA
Korea
USA, UK,
China
Middle East
Japan
China
Hong Kong
Singapore
PNG
Hong Kong
South Africa
China
India
EU, US
MAJOR PLAYERS
11
LIVESTOCK
* Excludes hides and skins
Source: PIRSA: Livestock Scorecard; Australian Chicken Meat Federation; Dairy Australia; Australian Pork; ABS Value of Principal Agricultural Commodities Produced 7501
Biosecurity SA Plant Health Program
Managing the safety of South Australian
fruit & vegetables
Strict quarantine rules throughout the
State
Protection against disease and pests
Australia New Zealand Food Standards
Code
Framework to manage food safety and
labelling
PRODUCTION VALUE
Potatoes $103 million
Tomatoes $70 million
Citrus $55 million
Almonds $51 million
Carrots $49 million
Mushrooms $48 million
Source: PIRSA: Horticulture Scorecard 12
HORTICULTURE
Citrus
Almonds
$64 million export value
Japan, United States, Hong Kong
$53 million export value
India, Germany, New Zealand
CLEAN & SAFE
EXPORTS
OPPORTUNITIES
Expansion of export markets Counter seasonal growing markets
Large producer base Location advantages to emerging
markets
Strong domestic consumption
South Australia was the first state in Australia to
establish commercial forestry plantations.
South Australia now bases its entire processing industry solely on
plantations.
The State’s south east is the largest forestry region in the State where the
industry makes up 35% of the regions employment and contributes 28% of
the gross regional product.
Source: PIRSA: Forestry in South Australia ; ABARES Australian Forest & Wood Product Statistics March 2013 13
FORESTRY
KEY FORESTRY FACTS
188 thousand hectares of plantation forests
Softwood – 128 thousand hectares of Radiata Pine
Hardwood – 59 thousand hectares of Tasman Blue Gums
2.4 million cubic metres of softwood log harvested annually
OPPORTUNITIES
Investment in existing
processing facilities and new
value added initiatives
Renewable energy
opportunities using forest and
processing waste
SOUTH EAST FORESTRY PARTNERSHIPS PROGRAM
The South East Forestry Partnerships Program is a $27 million State Government
assistance package designed to encourage a viable and strong timber sawmilling
industry.
Funding is available to the private sector for capital investment in the timber industry,
with the aim to create and secure jobs in the State’s South East.
SOUTH AUSTRALIA HAS WORLD LEADING AGRICULTURAL RESEARCH & DEVELOPMENT
CENTRES
Our research delivers outcomes that have direct significance to agribusiness across the globe
WAITE RESEARCH INSTITUTE
Soil & Water Science
Plant Science
Wine Science
Food & Human Nutrition
Value Chains
SUPPORTED BY THE STATE’S
LEADING UNIVERSITIES
SOUTH AUSTRALIAN RESEARCH & DEVELOPMENT
INSTITUTE
Aquatic Sciences
Innovative Food & Plants
Livestock & Farming Systems
Sustainable Systems
COMMONWEALTH SCIENTIFIC INDUSTRIAL RESEARCH
ORGANISATION
Food & Nutritional Sciences
Plant Industry
Land & Water
14
RESEARCH AND DEVELOPMENT
FOREIGN INVESTMENT IN SOUTH AUSTRALIAN AGRIBUSINESS
FEDERAL INCENTIVE SCHEMES AVAILABLE TO SUPPORT
INVESTMENT
Clean Technology
Research & Development
Specific venture capital projects relating to innovation
THE FOREIGN INVESTMENT REVIEW BOARD
The Foreign Investment Review Board (FIRB) examines foreign
investment proposals to ensure the investment is in Australia’s
interest.
FIRB must be notified on certain acquisitions, irrespective of the
value or the nationality of the investor. All other acquisitions which
do not require notification must meet certain thresholds.
One important threshold for an interest in an Australian business
is an investment with a value less than $248 million (as a
1 January 2014).
Other exemptions and thresholds apply including a lower
threshold for real estate assets and certain investment types.
Further information can be found at www.firb.gov.au
15
FOREIGN INVESTMENT IN SOUTH AUSTRALIA
www.invest.sa.gov.au
Published November 2014
The information contained in this presentation has been compiled by the Department of State Development (DSD) and originates from a variety of
sources. Although all reasonable care has been taken in the preparation and compilation of the information, it has been provided in good faith for
general information only and does not purport to be professional advice. No warranty, express or implied, is given as to the completeness,
correctness, accuracy, reliability or currency of the materials.
DSD and the Crown in the right of the State of South Australia does not accept responsibility for and will not be held liable to any recipient of the
information for any loss or damage however caused (including negligence) which may be directly or indirectly suffered as a consequence of use of
these materials. DSD reserves the right to update, amend or supplement the information from time to time at its discretion.
CONTACT DETAILS
Nicolle Sincock
Director – Food and Agribusiness
Investment Attraction South Australia
Level 9, The Conservatory
131-139 Grenfell Street
Adelaide 5000
South Australia
T: +61 8 8303 2174