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City of Albany, Shire of Plantagenet, Shire of Denmark & Great Southern CITY OF ALBANY, SHIRE OF PLANTAGENET, SHIRE OF DENMARK & GREAT SOUTHERN DEVELOPMENT COMMISSION SOUTH COAST INDUSTRIAL ECOLOGY MAPPING AND INDUSTRY ATTRACTION STRATEGY FINAL REPORT OCTOBER 2015 DISCLAIMER This report has been prepared for City of Albany, Shires of Denmark and Plantagenet, the Great Southern Development Commission and LandCorp. The information contained in this report has been prepared with care by the authors and includes information from apparently reliable secondary data sources which the authors have relied on for completeness and accuracy. However, the authors do not guarantee the information, nor is it intended to form part of any contract. Accordingly all interested parties should make their own inquiries to verify the information and it is the responsibility of interested parties to satisfy themselves in all respects. This report is only for the use of the party to whom it is addressed and the authors disclaim any responsibility to any third party acting upon or using the whole or part of its contents. Document Control Document Version Description Prepared By Approved By Date Approved Jason McFarlane v 1.0 Draft SCIEMIAS Jason McFarlane 22nd May 2015 Dawson Demassiet-Huning Jason McFarlane v 2.0 Draft SCIEMIAS Michael Chappell 22nd July 2015 Dawson Demassiet-Huning v 3.0 Draft SCIEMIAS Dawson Demassiet-Huning Michael Chappell 4 August 2015 v 4.0 Draft SCIEMIAS Dawson Demassiet-Huning Jason McFarlane 18 September 2015 v 5.0 Final SCIEMIAS Dawson Demassiet-Huning Jason McFarlane 20 October 2015 PERTH: 23 Lyall Street South Perth Western Australia 6151 • t (08) 9367 1511 • f (08) 9367 4066 MELBOURNE: Cannons House Level 7, 12-20 Flinders Lane Melbourne Victoria 3000 • t (03) 9654 5775 e [email protected] • www.pracsys.com.au CONTENTS 1 INTRODUCTION 1 2 A MODEL OF REGIONAL DEVELOPMENT 3 3 GREAT SOUTHERN REGIONAL PERFORMANCE 4 3.1 The Great Southern Economy 4 3.2 Capacity 6 4 STRATEGIC INDUSTRY PROFILES 9 4.1 Horticulture Industry 9 4.2 Forestry 14 4.3 Dairy 18 4.4 Livestock and Meat Processing 22 4.5 Viticulture and Wineries 26 4.6 The Grain Industry – Current Situation 29 4.7 Grain Industry – Opportunities 32 5 OPPORTUNITIES FROM INDUSTRY ECOLOGY ANALYSIS 33 5.1 The Great Southern Opportunity Table 33 5.2 The Opportunities 41 6 STRATEGIC FRAMEWORK FOR SOUTH COAST INVESTMENT 72 6.1 Imperative 1. A Coordinated Approach to Great Southern Strategic Infrastructure Investment 74 6.2 Imperative 2. Ensure effective configuration and supply of industrial land 75 6.3 Imperative 3. Supply Chain Augmentation of the Great Southern Economy 77 6.4 Imperative 4. Support Cooperative Local Export Industry Development 78 6.5 Imperative 5. Sub-Regional Approach to the Optimal Utilisation of Varying Qualities of Agricultural Land 79 7 CONCLUSION 81 i South Coast Industrial Ecology Mapping and Industry Attraction Strategy APPENDIX 1: SUMMARY OF STAKEHOLDERS CONSULTED 82 APPENDIX 2: METHODOLOGY FOR SUPPLY CHAIN MAPPING 83 9.1 STEP 1 83 9.2 STEP 2 83 9.3 STEP 3 84 APPENDIX 3: GLOSSARY OF TERMS 85 APPENDIX 4: GREAT SOUTHERN OPPORTUNITY TABLE 90 APPENDIX 5: ILOMS 91 12.1 Industrial Land Online Management System Background 91 12.2 Methodology 91 12.3 Develop model user interface 92 12.4 ILOMS Functionality 92 12.5 Current Status 93 APPENDIX 6: ILOMS OUTPUT 94 ii 1.0 1 INTRODUCTION The Great Southern has been an important • Building on existing activity – where are region for Western Australia since the State’s the best opportunities to facilitate growth inception. The Region is known for its from within the Region? resilience and has been steadfast in its growth • Attraction of external investment and throughout its history. Though the growth has activity – what are the most attractive been slightly slower than the rest of the State opportunities to attract investment from in recent times, the Region is well placed to outside the Region? capitalise on its many competitive advantages. This report has been prepared in the context of Regional development in Western Australia has the Great Southern Development Commission’s historically resulted from a region being able to Draft Regional Blueprint, with a specific focus take advantage of natural resources to facilitate on supporting the following project areas: trade with external markets. Ultimately through direct, indirect and induced activity, • Growing Value: Premium food production this leads to local economic and population and value adding; growth. Unlike other regions within the State, • Access to Energy: Providing regional many of which have become increasingly energy security; reliant on the exploitation of mineral resources, the Great Southern has had to find other • Water for Growth: Providing water ways to build its economy and sustain its security; and population. This has meant that instead of a • Avenues to Opportunity: Transport and historical pattern of booms and falls that has industry hubs connecting to markets. been observed in mineral resource-dependent regions, the Great Southern has seen steady As such, it focuses on factors that impact growth over the years. upon the Great Southern’s industrial ecology. This means that other critical elements of the The Industrial Ecology Mapping and economy, such as tourism and commercial Investment Attraction Strategy for the City of activity centre performance, sit outside of the Albany and Shires of Denmark and Plantagenet scope of this work. (this geographic area is referred to within the Strategy as the South Coast) provides This report specifically concentrates on the the various stakeholders of Great Southern industrial ecology of six key export industries. businesses and industries with an oversight of These industries were chosen based on ecology potential opportunities to enhance economic mapping and interviews with key stakeholders development within the study area. This is in the Region. They are: based upon a clear understanding of the • Horticulture; following three principles: • Forestry; • Regional capacity - how can the Region best prepare itself to capture future • Dairy; opportunities and benefit from future • Livestock; investment? 1 South Coast Industrial Ecology Mapping and Industry Attraction Strategy • Viticulture; and • Grain. These industries show the most potential for growth based on the Region’s natural resources and potential future demand in local, national and international markets. This report highlights key opportunities associated with these industries and concludes with future steps to be taken in order to capitalise on these opportunities in the future. 2 2.0 2 A MODEL OF REGIONAL DEVELOPMENT This chapter provides an understanding of the factors affecting regional economic development. Central to the understanding of a regional economy’s current and future economic performance are the interrelated concepts of ‘capacity’ and ‘drivers’ of transformation (see Figure 1). Figure 1. Capacity-Driver Model for Transformative Change Source: Pracsys 2015 Drivers refer to the trends and behaviours that determine demand for goods and services. Capacity, on the other hand, describes the ability of an area to take advantage of these drivers for the benefit of the local economy. The capacity of, and drivers for, transformation away from a ‘business as usual’ path of development in a regional economy need to be considered in order to understand its future potential for a competitive advantage, and to support achievement of that region’s strategic aspirations. 3 3.0 3 GREAT SOUTHERN REGIONAL PERFORMANCE This chapter provides a snapshot of the opportunities for employment in the Great current state of the Great Southern economy Southern decreased between 2006 and to provide a baseline understanding of where 2011 (see Figure 2). This led to an increase opportunities may exist to build capacity or in unemployment, with the percentage of take advantage of local or external drivers. unemployment in 2011 for the Region being The information collated in this section 4.86%, marginally higher than the State includes both information specific to the Great average of 4.25%. Southern as a whole as well as the three South Coast municipalities that form the study area The extent of the employment challenge in the deemed to be relevant. This forms the basis for Great Southern is exemplified by its industry understanding where proactive interventions profile (see Figure 3). Of the top 10 industries by agencies may be desirable. by employment, eight are predominately population-driven, servicing the demands of 3.1 THE GREAT SOUTHERN the local population (e.g. retail, healthcare and ECONOMY education). These jobs typically saturate at around 30-35% of the total market in a regional The Great Southern economy contributes economy. around 1.7% of the total Gross State Product, with a value of $4.2B in 2012-131. Of this, Figure 3. Top 10 Industries by Employment agriculture is the largest industry with (2011) production valued at $1.04B. Percentage Category Jobs of Total After examining employment data for the Employment Region, the challenges for employment are Sheep, Beef Cattle and Grain Farming 2,849 13.09% quite clear. Despite an increasing labourforce, School Education 1,641 7.54% Figure 2. Changes in Great Southern Employment Hospitals 767 3.53% Conditions 2006-2011 Cafes, Restaurants and Takeaway Food Services 720 3.31% Supermarket and Grocery Stores 583 2.68% Local Government Administration 574 2.64% Residential Care Services 484 2.22% Accommodation 482 2.22% Public Order and Safety Services 469 2.16% Meat and Meat Product Manufacturing 428 1.97% Source: Pracsys 2015, ABS Census 2011 The two industries that are strategic in nature are Sheep, Beef Cattle and Grain Farming Source: ABS Census 2006, 2011 and Meat and Meat Product Manufacturing. These are considered strategic as they focus 1 Regional Snapshot, Department of Regional Development (2013) on trading goods and services with external 4 South Coast Industrial Ecology Mapping and Industry Attraction Strategy markets, although they may also provide some Figure 5.
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