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Northern Horticulture Industry Contents Department of Agriculture and Food Investment opportunities in Western Australia’s northern horticulture industry Contents Horticultural investments in northern Western Australia ��������������� 3 Gascoyne (including Carnarvon Horticultural District) ������������������ 4 The region’s strengths������������������������������������������������������������� 4 Industry overview �������������������������������������������������������������������� 7 Markets ��������������������������������������������������������������������������������� 10 Opportunities for investments ���������������������������������������������� 11 West Kimberley ��������������������������������������������������������������������������� 12 The region’s strengths����������������������������������������������������������� 12 Industry overview ������������������������������������������������������������������ 14 Markets ��������������������������������������������������������������������������������� 18 Opportunities for investments ���������������������������������������������� 18 East Kimberley and Ord River Irrigation Area ������������������������������ 21 The region’s strengths����������������������������������������������������������� 21 Industry overview ������������������������������������������������������������������ 23 Markets ��������������������������������������������������������������������������������� 25 Opportunities for investments ����������������������������������������������������� 26 Other important information �������������������������������������������������������� 28 How to progress �������������������������������������������������������������������������� 29 Investment opportunities in Western Australia’s northern horticulture industry | 3 Horticultural investments in northern Western Australia Western Australia (WA) has a strong horticultural industry stretching from the Ord River Irrigation Area in the north to temperate production areas in the south-west� This enables production of year-round supply of many fruit and vegetables� Industry supplies fresh fruit and vegetables, grains and fodder for domestic markets in Australia and for export internationally� The export sector has been critical to the profitability of many of Western Australia’s horticultural industries because the relatively small population limits the domestic market� Although WA’s population is expected to reach 4 million by 2050 and the national population will grow to 36 million, Western Australia will continue to produce more food than it can consume� More broadly, global food demand is expected to rise 77% in monetary terms by 2050 with growth in demand for food in Asia forecast to double� Asia’s population will account for 52% of the increase in world food demand� The greatest increase will be for vegetables and fruit, and protein� With Western Australia’s well established export focus in horticultural products, it is ideally placed to contribute to both the future food needs of Australia and to the food security needs in Asia and the Middle East� Much of this growth, particularly driven by increases in consumer incomes, will be from China and India although other South-East Asian economies should also experience strong growth� The Western Australian Government has a clear commitment to the expansion and diversification of the Western Australian agrifood sector particularly because of Western Australia’s position in the ‘Asia Zone’� There is commitment to not only strengthen the sustainability of food production but also to ensure the growth in demand for reliable, diverse, safe and high quality fresh foods can be satisfied� The State Government is also working to position Western Australia as a supplier of choice in Asia and the Middle East� Efforts have focused on opening new markets, boosting export production and supporting Western Australia’s strong and profitable horticultural industry� In addition, investments in the Gascoyne Food Bowl Initiative, the Ord River Irrigation Area (Stages 1, 2 and 3) and expanding large scale irrigation in the East and West Kimberley, Pilbara and Mid West Regions, have all provided very significant profitable opportunities for investment in irrigated agricultural production in the north of Western Australia (that is, north of the 26th parallel of south latitude)� These investments can be made with confidence� Not only does the north offer ample opportunities for irrigated agriculture, it also has a safe and stable environment for investments� Western Australia has: • a stable political environment • a well-regulated and transparent commercial environment • a low sovereign risk • a strong and growing economy • a strong biosecurity system supporting a low pest and disease environment • a highly skilled workforce • a ready access to relevant research and development� Opportunities for investment in three northern regions – Gascoyne, West Kimberley and East Kimberley are covered in this business case and their locations are shown in Figure 1 (opposite)� Gascoyne (including Carnarvon Horticultural District) The region’s strengths – land, water and climate The Gascoyne is one of nine administrative regions in Western Australia and is located in the north-west� It encompasses the shires of Carnarvon, Exmouth, Shark Bay and Upper Gascoyne� The Gascoyne enjoys about 600 kilometres (km) of Indian Ocean coastline and extends inland for about 500km with an overall area of approximately 138 000 square kilometres (km²)� Carnarvon, the regional centre, is about 1000km north of Perth� The Gascoyne Region has well-established, diverse and thriving horticultural industries� These industries have benefited from the fertile soil, good climate, seasonal advantages in both domestic and export markets, minimal pests and diseases, and industry-driven development� Horticulture is an important employer, economic driver and social component of the region� Investment opportunities in Western Australia’s northern horticulture industry | 5 Developing irrigated agriculture in the North West East Kimberley and ORIA La Grange, Kimberley West Kimberley Region Pilbara Gascoyne Region Food Bowl Gascoyne Region Mid West Region Figure 1 Developing irrigated agriculture in the north-west The Carnarvon Horticultural District (see Figure 2) is situated on the lower reaches of the Gascoyne River� This is an ephemeral river that only flows following high rainfall inland at the headwaters, usually associated with cyclonic activity� CarnarvonCarnarvon Horticultural Horticultural District District Figure 2 Carnarvon Horticultural District The water supply for the Carnarvon Horticultural District comes from aquifers beneath and adjacent to the Gascoyne River� The intermittent river flow recharges these aquifers� The Gascoyne climate is semi-arid and subtropical making it ideal for growing a very diverse range of tropical and subtropical fruit as well as winter vegetables� The average maximum daily temperatures range from 40°C in summer through to a mild 22°C in the winter months of June and July� There are no frosts and around 320 days of sunshine each year� The region’s rainfall is low and averages around 200 millimetres (mm) per year� Carnarvon Horticultural District’s annual rainfall is slightly higher at 230mm� Rainfall events occur sporadically in both summer and winter� For this reason, horticultural production is based on irrigation� Investment opportunities in Western Australia’s northern horticulture industry | 7 All towns in the Gascoyne use groundwater for domestic, commercial, horticultural and agricultural purposes� There is no source of surface water available� Groundwater varies greatly in quality and quantity across the region, however water obtained from groundwater aquifers in and around the Gascoyne River and used in Carnarvon, is of good quality� It requires no filtration or other pre-treatment apart from simple chlorination prior to human consumption� The Department of Water is responsible for managing the water resource and the Water Corporation operates the Southern bore field and maintains water supplies to all towns in the Gascoyne Region� The Gascoyne Water Cooperative, a grower-owned entity, is responsible for supply and distribution of the irrigable water� All towns generate their own electricity� Carnarvon is served by the only power station in regional WA that can run on diesel, gas or a combination of the two� It has a generating capacity of about 12 megawatts (MW)� A new gas-fired power station with capacity of 18MW is being commissioned with a further 6MW generated by wind turbines� Industry overview Most irrigated agriculture is along the banks of the Gascoyne River near Carnarvon� The dry subtropical climate makes Carnarvon suitable to grow a wide range of temperate, tropical and subtropical produce across the seasons� Production is intensive on small landholdings that range in size from 2 to 40 hectares� There are between 150 and 170 plantations on an area of approximately 1500 hectares, of which 1000 to 1200 hectares are cultivated at any one time, depending on the time of year and seasonal effects� Most land has good alluvial soils ranging from light-textured red earthy sands to medium-textured red earthy loams� Annual horticultural production is growing strongly and now exceeds A$100m� Tomatoes, bananas, grapes and melons are the most significant fruits in terms of both volume and value while capsicums and pumpkins are the major vegetables (see Tables 1 and 2)� Table 1 Production and value of crops – Carnarvon Horticultural District*
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