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DAFWA Growing the North Market Opportunities.Pdf GROWING THE NORTH Market opportunities for irrigated agricultural produce from northern Western Australia FINAL DISCUSSION DOCUMENT; under contract DAFWA244; November 2015 INHERENT LIMITATIONS ACCESSIBILITY This work was commissioned by the Department of Agriculture and e. any Coriolis Commentary accompanying the Coriolis document Coriolis seeks to support the widest possible audience for this Food Western Australia (DAFWA) and prepared by Coriolis. This is an integral part of interpreting the Coriolis document. research. This document has been designed to be as accessible to work is based on secondary market research, analysis of Consideration of the Coriolis document will be incomplete if it is as many users as possible. information available or provided to Coriolis by our client, and a reviewed in the absence of the Coriolis Commentary and Coriolis range of interviews with industry participants and industry experts. conclusions may be misinterpreted if the Coriolis document is Any person – with or without any form of disability – should feel Coriolis have not independently verified this information and make reviewed in absence of the Coriolis Commentary. free to call the authors if any of the material cannot be understood no representation or warranty, express or implied, that such or accessed. information is accurate or complete. Coriolis is not responsible or liable in any way for any loss or damage incurred by any person or entity relying on the information We welcome opportunities to discuss our research with our Projected market information, analyses and conclusions contained in, and the Recipient unconditionally and irrevocably releases readers and users. herein are based (unless sourced otherwise) on the information Coriolis from liability for loss or damage of any kind whatsoever described above and on Coriolis’ judgement, and should not be arising from, the Coriolis document or Coriolis Commentary Unless otherwise noted, all photos used in this discussion construed as definitive forecasts or guarantees of future including without limitation judgements, opinions, hypothesis, document were purchased by Coriolis from a range of stock performance or results. Neither Coriolis nor its officers, directors, views, forecasts or any other outputs therein and any photography providers. Our usage of them complies with their shareholders, employees or agents accept any responsibility or interpretation, opinion or conclusion that the Recipient may form as various license agreements. © Dollar Photo Club and Wikipedia liability with respect to this document. a result of examining the Coriolis document or Coriolis Public Domain. Commentary. Coriolis wishes to draw your attention to the following limitations COPYRIGHT of the Coriolis document “Growing The North - Market The Coriolis document and any Coriolis Commentary may not be Opportunities“ (the Coriolis Document) including any relied upon by the Recipient, and any use of, or reliance on that Copyright © Western Australian Agriculture Authority, 2015 accompanying presentation, appendices and commentary (the material is entirely at their own risk. Coriolis shall have no liability Coriolis Commentary): for any loss or damage arising out of any such use. a. Coriolis has not been asked to independently verify or audit the information or material provided to it by or on behalf of the Client or any of the parties involved in the project; b. the information contained in the Coriolis Document and any Coriolis Commentary has been compiled from information and material supplied by third party sources and publicly available information which may (in part) be inaccurate or incomplete; c. Coriolis makes no representation, warranty or guarantee, whether express or implied, as to the quality, accuracy, reliability, currency or completeness of the information provided in the Coriolis Document and any Coriolis Commentary or that reasonable care has been taken in compiling or preparing them; d. the analysis contained in the Coriolis Document and any Coriolis Commentary are subject to the key assumptions, further qualifications and limitations included in the Coriolis Document and Coriolis Commentary, and are subject to significant uncertainties and contingencies, some of which, if not all, are outside the control of Coriolis; and 2 CONTENTS Introduction/Executive Summary 5 The Market Opportunity 11 The Three Regions of the North 19 Analysis/Conclusions 22 Supporting Material - Screen 3: Qual/Quant Product Profiles 46 - Screen 2: Quantitative trade code screen 127 - Screen 1: Climatic peer group product screen 136 - Animal feed 144 3 Why did DAFWA undertake this project? DAFWA aims to create a progressive, innovative and profitable agriculture and food sector that benefits Western Australia - in this role, they are leading a number Core questions that of irrigated agriculture development projects including Coriolis were those in the Gascoyne, Pilbara and Kimberley engaged to address: What products do DAFWA recognises that there are many products that our key target could be grown successfully in the North – identifying those markets want… with strong demand that are experiencing growth in the markets of the future will ensure greater potential for … that can be success competitively produced in the In order to make the best decisions for the regions, North of Western DAFWA and stakeholders need to gain an understanding of Australia? the different agricultural options - the scale requirements and capacity needed to meet demand, what is WA’s competitive advantage and the potential for adding value 4 EXECUTIVE SUMMARY The North of Western Australia can realise the potential of new irrigation precincts CONCLUSION 2: The North can increase agricultural production. coming on stream. However, success will require new thinking about the products Climatic peers demonstrate there are major opportunities to increase agriculture in being demanded today in the markets of the future, rather than the products of the North. A screen of these climatic peers concludes many products can be grown European immigrants of the past. in the North. Countries in a similar climatic zone, from Mozambique to Israel, are producing and exporting high value products and products to the world. If climatic Northern Western Australia currently produces limited food or agricultural peers can produce theses products, so can Western Australia. products. Irrigation projects provide an opportunity to expand production and increase exports. A number of irrigation projects are underway with the potential However, due to conditions in the North, success will depend on growing products new agrifoods exports to come online. How should Western Australia best utilise that are robust, mechanically harvested, and which thrive in the heat. Achieving this water? scale and utilising modern farm practices is critical for Western Australia to compete globally. Too often the agricultural sector is “production driven” rather than “market led.” Instead, this discussion document identifies high potential products at the CONCLUSION 3: There are a wide range of high potential options. intersection of what markets are demanding and what the North can produce. Eighteen high potential products have been identified as opportunities for irrigated agriculture in Northern Western Australia. An extensive quantitative screen and CONCLUSION 1: Markets want what the North can produce. category evaluation highlighted eighteen products with significant potential for High growth target markets in Asia and the Middle East are demanding products Northern Western Australia. A wide range of agricultural products were identified, that the North can produce. Asia and the Middle East are attractive markets to with products ranging from walnuts to cotton. These products all have a growing Western Australia. These countries are high growth markets and importing market with a wide spread of buyers and sellers. significant volumes from our climatic peers. Western Australia can compete in these markets. 5 The Western Australia Government has a wide range of projects underway to facilitate the growth of irrigation in the North ROYALTIES FOR REGIONS PROJECTS INVOLVING IRRIGATION IN THE NORTH OF WESTERN AUSTRALIA As of mid/late 2015 Region Project Key stakeholders Project type Summary Pilbara Pilbara Hinterland Local stakeholders Demonstration - Assess the potential of irrigated agriculture in the Pilbara utilising Agricultural Development Leaseholders surplus mine dewater and other in-situ water resources Initiative (PHADI) - Strong focus on practical research through pilot site trials and a comprehensive assessment of Pilbara soil and water resources Gascoyne Middle Gascoyne water Local stakeholders Prospecting - Define & scale water in alluvial aquifers upstream investigations - Agreed strategic direction for Gascoyne horticulture industry Kimberley Mowanjum Irrigation Trail Mowanjum Aboriginal Demonstration - Dry season feeding of large cow; “stand-and-graze” Corporation - Develop a pivot irrigation area - Use for grazing and silage Knowsley Agricultural Area Local stakeholders Prospecting - Find water for area on outskirts of Derby water investigation - Land is currently unallocated Crown Land Fitzroy Valley Local stakeholders Prospecting - Confirm groundwater potential to support irrigation around Willare, Leaseholders Liveringa and Gogo areas, and potential irrigation start-ups on Aboriginal pastoral stations La Grange – West Canning Local stakeholders Prospecting - Presence,
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