Australia: Tasmanian taskforce aims to double produce sales by 2020
The Tasmanian produce industry aims to become an "innovative, profitable and sustainable" supplier to the world with annual sales of AUD$750 million (US$655 million) by 2020.
In a Federal Government-commissioned report, the Tasmanian Fruit and Vegetable Industry Taskforce described the vision to raise revenues to this level from last year's AUD$349 million which also includes nuts, as realistic and measurable.
The taskforce - made up of government representatives and leading growers, exporters and processors - said previous reform schemes had often been patchy with unclear responsibilities for implementation.
In light of this, the recent proposal sets out eight clear recommendations, mostly surrounding the nuts and bolts of establishing a Tasmanian Horticulture Market Growth Project that would need funding sources of up to AUD$4 million (US$3.5 million) over five years.
"The Taskforce report indicates to me that the future success of the industry is firmly in the hands of industry," Minister for Agriculture Barnaby Joyce said in a release.
Joyce is a taskforce member along with industry representatives from the likes of Hansen Orchards, Reid Fruits, Costa Group and Simplot Australia.
The group draws inspiration from the reforms undertaken by Tasmanian Irrigation Pty Ltd, and is also upbeat about the opportunities that AUD$310 million (US$271 million) worth of new irrigation developments could bring to the sector.
"Furthermore, an estimated additional (AUD)$265 million (US$231 million) will be invested in on-farm infrastructure by the private sector," the report said.
"These developments are estimated to deliver up to 100 000 megalitres of water per year, to an area of around 146 000 hectares with the potential to deliver up to $192 million (US$168 million) of new produce per annum at the farm gate.
"The Taskforce considers the increased irrigation capacity will provide opportunities for the growth of the fruit and vegetable sectors, especially in the development of 'greenfields' sites."
The report emphasized a need for Tasmanian growers and suppliers to exploit particular niches where they had a unique comparative advantage or faced continued pressure to reduce production costs.
"The Taskforce notes reports of the growing demand in Asia for premium quality, safe food. Tasmania is considered a relatively high-cost producer compared to alternative international suppliers," the report said.
"The Taskforce considers success in developing profitable export markets requires a strategic, long term approach as opposed to the opportunistic use of export markets in response to domestic over-supply.
"There are a number of export markets (such as Hong Kong, Malaysia, Singapore and Vietnam) that are currently open to a range of Australian fruit and vegetables with no quarantine barriers, as well as other markets that are accessible with varying degrees of regulation."
Tasmanian farmer Andrew Craigie said it was a privilege to be a member of the Taskforce and to work with other industry members to address a range of issues.
"It is great to have a Minister for Agriculture and Parliamentary Secretary to the Minister for Agriculture who are genuinely interested about the future of the industry," he said.
Taskforce member Lucy Gregg, of Reid Fruits, said the appointment of a market growth facilitator would greatly assist in converting potential fruit and vegetable exports to actual sales.
"With the recent decline of the Australian dollar the opportunities for export are the best they have been for many years," she said.
"Whilst we acknowledge there are barriers in relation to exporting produce they are not insurmountable, but potentially the biggest barrier is the cultural and mental barrier to commit to export. We need to empower growers to embrace export opportunities."
The press release highlighted Tasmania's fruit, vegetable and nut sector currently provided employment for 2,500 people.
Australian Bureau of Statistics (ABS) figures show Tasmania makes up for around 3% of Australia's fruit and nut production, and 6% of its vegetable production, with potatoes, onions, carrots, cherries, pome fruit and berries as the main crops.
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