Accelerating Growth for the Gippsland Food and Fibre Industry

Accelerating growth for the Gippsland food and fibre industry

Supported by

March 2019

KPMG.com.au 2 Accelerating growth for the Gippsland food and fibre industry

Supporting Food & Fibre Gippsland

Newly formed entity Food & Fibre This paper proposes six capability The keys to growth of the region’s Gippsland has engaged with platforms to accelerate growth, and food and fibre sector is dependent KPMG to assist in developing will inform an industry alignment upon attracting and developing this discussion paper to set an workshop with key stakeholders in capability of the current and future aspirational growth target for the the first half of 2019. work force and equipping them with regional food and fibre industry the skills, connectivity and enabling that will contribute to the economic • Positioning food and fibre as the infrastructure needed to produce prosperity of the Gippsland region. backbone of Gippsland’s economy higher value added products and services. Without an aspiration for • Transforming food and fibre’s Roughly the same size as the world’s growth Gippsland’s Food and Fibre innovation ecosystems second largest food exporter, the industry will struggle to compete for Netherlands, Gippsland covers over and retain the necessary capital and 1 • Developing future industries 41,500 square kilometres, with 28 talent from competing industries percent of the land being used for • Connecting Gippsland and regions. A growth target agricultural purposes. The region had backed with a growth mindset and a population of approximately 274,600 • Sustainable energy, land use innovation framework is fundamental in 2017 and some 15,400 people and water to aligning interests of stakeholders are directly employed in agriculture, across Gippsland’s Food and Fibre forestry and fisheries activities. The • Attracting and cultivating talent and sector. Simply, an industry that is industry stakeholders can see the leadership for the industry growing attracts ambitious talent potential for compounding annual and capital that sustains momentum We engaged with a number of growth at around 5% to 2025, if the and innovation. six identified capability platforms are stakeholders in the Gippsland food delivered for the region. The aim of and fibre industry, and leveraged this report is to shine light on the KPMG’s industry insights and challenges and opportunities for expertise to highlight the key growth, inform industry stakeholders emerging issues and drivers to assist on the six enabling platforms Gippsland in achieving its aspirational identified and set the foundations for growth target. The topics covered are action to accelerate growth across not exhaustive, and there are other Gippsland’s Food and Fibre sector. issues and growth enablers that may We gratefully acknowledge the be raised by stakeholders that are not Ben van Delden leadership of Agribusiness Gippsland in this report. KPMG Partner, Head of AgriFood Tech Inc, Gippsland Regional Partnership and East Gippsland Food Cluster; the collaboration of RMIT and Food Agility CRC, the many industry leaders who shared their insights on growth and innovation; and the support of Regional Development Victoria and the new Minister for Agriculture Hon. Jaclyn Symes.

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. Accelerating growth for the Gippsland food and fibre industry 3

Contents

Foreword 04

Introduction 05

Setting the scene – Food and fibre in Gippsland 06

Supercharging the food and fibre value chain by defining and meeting a SMART growth target 12

Gippsland food and fibre platforms underpinning growth 19

1. Positioning food and fibre as the backbone of Gippsland’s economy 20

2. Transforming food and fibre’s innovation ecosystems 24

3. Developing future industries 30

4. Connecting Gippsland 36

5. Sustainable energy, land use and water 42

6. Attracting and cultivating talent and leadership for the industry 48

Taking action: next steps for growth 55

Contributors and acknowledgments 57

References 58

Key contacts 60

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. 4 Accelerating growth for the Gippsland food and fibre industry

Foreword

The Andrews Labor Government is The future of the sector also requires committed and passionate to support a partnership to respond to the the growth of Gippsland communities challenges of fire, flood and drought. – from our paddocks to our local businesses, we know the importance We know our farmers in East and of investing in what matters most Central Gippsland have been doing to locals. it tough with unprecedented dry conditions – and while we can’t It’s why we started the Regional make it rain, we can stand with our Partnership model of engaging with producers and offer them immediate local communities, hearing from assistance while we also plan for locals what they need and creating a the future. direct voice to government. As a Government, we will continue This growth requires a thriving to support the Gippsland Regional agriculture sector and I welcome Partnership to drive its priorities. the work of the Gippsland Regional The partnership is made up of local Partnership to support Gippsland’s community and business leaders farmers and food and fibre industries. who are passionate about their region and they heard at all three Regional This discussion paper creates a Assemblies of the importance of food solid base for the Partnership, the and fibre for the region. sector and the community to identify strategies and actions needed In response the Government provided to support the future growth of $700,000 to establish a food and agriculture in Gippsland. fibre taskforce to deliver a strategic response. This paper is the first stage It is a goal consistent with the actions of an ongoing process. of our government. I am confident the Partnership will We have set an ambitious target continue to work with the sector and to increase food and fibre exports community to develop a strong and to $20 billion by 2030 by improving comprehensive strategy to drive the market access, supporting regional growth of food and fibre industries businesses and cutting red tape. in Gippsland. We’re expanding agricultural research to respond to climate change and improve productivity. In Gippsland this means investing in state‑of‑the‑art research facilities at the National Centre for Dairy Research and Development in Ellinbank.

We’re investing $27 million in a Digital Agriculture Strategy which Jaclyn Symes will establish on-farm Internet of Minister for Agriculture, Things trials across the state with a Regional Development and Resources dairy focussed trial to connect farms in Maffra.

Introduction

Gippsland has a long and rich history This paper directly addresses a At time of writing, Food & Fibre in the production of food and fibre request by the region’s food and Gippsland Inc. is being formed from produce. For thousands of years fibre stakeholders at Regional an amalgamation of AGI and EGFC. indigenous communities traded Partnership Assemblies to develop The new peak body for Gippsland’s products up and down the east a growth target for the sector. food and fibre sector is the first step west corridor. Following European It is also a targeted response to in creating a strong voice to work settlement, dairy, meat, horticulture, initiatives such as the National on behalf of all those involved in the fisheries and fibre industries Farmer’s Federation (NFF) 2030 sector and to see food, fibre and our flourished with the combination of a Roadmap and how Gippsland region prosper. stable climate and fertile land. can achieve future growth, and importantly, what is needed to As chairs of these three The Gippsland region is undergoing a underpin that growth. organisations, we are committed period of transition triggered largely to collaboration on this vital from the change in power generation. Industry parties Agribusiness project. We invite you to join us to Food and fibre in Gippsland is Gippsland (AGI), East Gippsland Food grow Gippsland’s food and fibre estimated to contribute $7 billion Cluster (EGFC), and the Gippsland sector together. of the $16 billion gross regional Regional Partnership Food & Fibre product, and has been identified by Working Group are focused on Stuart Quigley government and stakeholders as a transformation of the sector. Chair priority future industry. Agribusiness Gippsland AGI has been operating for 20 years The transition in food and fibre is and has focused on building a strong not just about growing what we network of key stakeholders. EGFC currently have. There is the challenge has operated for 10 years and is Andrew Bulmer of connecting to global networks valued for delivering a portfolio of Chair and value chains, and in collecting projects with a focus on clustering. East Gippsland Food Cluster and collating meaningful data that Gippsland Regional Partnership has can be used to focus effort, and thus provided a communication channel transform our innovation processes to directly to government on key unlock growth in the small, medium emerging issues for the sector. Maree McPherson and large enterprises that operate Chair across Gippsland. Gippsland Regional Partnership

Focus on the action agenda for Gippsland’s food and fibre industry

This discussion will inform an The co-design workshop aims to This collaborative approach will be industry co-design workshop with deliver a clear and measurable action crucial to obtain agreement from key stakeholders assembled from the agenda that will determine capability Gippsland food and fibre industry food and fibre industry in Gippsland platforms and related actions to drive stakeholders on the action agenda, proposed for early 2019. the growth objectives of the region and the process to implement and through a value chain lens. monitor its progress and success.

1 2 3 Food Agility CRC & Enabling Growth Co-design workshop RMIT Sprint Project discussion paper Analyse regional food and fibre Identify a SMART regional growth Establish a detailed action agenda value chains target and key capability platforms to achieve the agreed regional that will drive that growth growth target

November 2018 March 2019 May/June 2019

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. 6 Accelerating growth for the Gippsland food and fibre industry

NSW

Setting the scene – VIC Food and fibre in Gippsland

Overview, opportunities and current challenges

Located in Victoria’s South East, Gippsland is one of the most diverse regional areas in Australia, renowned for its quality products across a range of industries such as food and fibre, energy, forestry, manufacturing and tourism. Gippsland is famous for its pristine EAST GIPPSLAND agricultural land close to key transport hubs, world class innovation G Y centres, and regional universities. R A E W A H T G Roughly the same size as the Netherlands, Gippsland covers A I

L H

P over 41,500 square kilometres, with 28 percent of the land being O I N

E used for agricultural purposes. The region had a population of A

R N approximately 274,600 in 2017, and is made up of six municipalities – O O A PRINCES HIGHWAY Latrobe City, Bass Coast Shire, Baw Baw Shire, East Gippsland Shire, D M South Gippsland Shire and Wellington Shire. WELLINGTON Mallacoota Lakes Airport Mallacoota Entrance Inlet Airport Tullamarine International Airport GREATER Bairnsdale Orbost Airport MELBOURNE PRINCES HIGHWAY Airport Bairnsdale Port of Snowy River (Marlo)

Port Melbourne BAW BAW KEY Gippsland Lakes Ports Airports Gippsland Rail Line Latrobe Regional Airport West Sale Airport OPPORTUNITIES FOR INTERCONNECTED HUBS

Traralgon A recent Victoria Parliament Research Paper highlights the concept of a circular economy to maximise value at each point in the products life. The research paper notes that a circular economy seeks to close industrial loops and to turn LATROBE outputs from one part of the value chain into inputs for another and, in doing so, reduce the consumption of virgin materials and the generation of waste. Yarram Airport Gippsland’s food and ﬁbre industry has the opportunity to create a circular economy by proactively interconnecting production, innovation and transport Newhaven S OUT Airport BASS COAST H GIP hubs along the food and ﬁbre value chain. PSLAND HIGHWAY An example of such an opportunity might be the development and Anderson interconnection of inter-regional air freight hubs at Latrobe Regional Airport and Inlet or West Sale Airport with the Food Manufacturing Hub at Morwell and the food SOUTH GIPPSLAND central hub within the Innovation Centre of the new Hi-Tech Precinct.

Corner Inlet, Port Albert and Port Welshpool

NSW

VIC

EAST GIPPSLAND

G Y R A E W A H T G A I

L H

I O N

R N O O A PRINCES HIGHWAY D M

WELLINGTON Mallacoota Lakes Airport Mallacoota Entrance Inlet Airport Tullamarine International Airport GREATER Bairnsdale Orbost Airport MELBOURNE PRINCES HIGHWAY Airport Bairnsdale Port of Snowy River (Marlo)

Port Melbourne BAW BAW KEY Gippsland Lakes Ports Airports Gippsland Rail Line Latrobe Regional Airport West Sale Airport OPPORTUNITIES FOR INTERCONNECTED HUBS

Corner Inlet, Port Albert and Port Welshpool

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. 8 Accelerating growth for the Gippsland food and fibre industry

Food & Fibre Gippsland accepts and Agriculture Victoria in its publication on the Australian Harmonised Export supports the scoping definition of released on December 2018 to set Commodity Classification (AHECC) the food and fibre industry set by a food export target5. The report code descriptions. Fibre exports are the Victorian Government to include refers to food exports as products referred to as products “of wool and “farming, fishing, forestry, food considered suitable for consumption other animal fibre products, including and beverage and textile, clothing by humans with a classification skins and hides, forestry products and footwear manufacturing”.This made by the Department of Job, and textiles, clothing and footwear”. definition is also being used by Precincts and Regions (DJPR) based

1 2 3 4 5 Primary Processing and Inputs Distribution Consumer production manufacturing

• Farming • Food • Domestic • Fishing • Beverage • Export • Forestry • Textile, clothing & footwear

Supply chain

The story emerging from Gippsland has a reputation as a Gippsland’s food and fibre industry stakeholders in the Gippsland food reliable supply of safe food and has many of the required attributes to and fibre industry is that the sector is fibre products. Global demand is lead the regional economic renewal. contributing in the vicinity of $7 billion exceeding supply in many sectors, However, the industry identifies gross regional product (GRP), making which gives long-term opportunities some key challenges that need to be up approximately half of Victoria’s to engage with the highest value-add overcome. The region is in transition largest region’s economic outputs. markets – especially fast growing from power generation and food and Isolated data available provides a global demand for food and fibre fibre is identified by Government as fragmented view of some sectors products from 2005-20509 driven by a ‘future industry’ which can play a that are part of the value chain: dairy the world population growth as per key role to contribute to the regional ($3 billion), forestry ($1.2 billion), meat the Food and Agriculture Organisation wealth by attracting and retaining and horticulture ($1 billion each), (FAO) of the UN’s predictions. the talent and capital that leads to fishing, wild catch and aquaculture creating job opportunities for the ($500 million)6. These figures are The region's industry bodies local communities. commodity‑output focused and do are active on the food and fibre not capture the full value chain impact sector. It takes part in the Smart Another main challenge is linked that Gippsland has on food and fibre Farming program supported by the to the source of data on which the produce flowing from or through Department of Agriculture. Also, as sector is valued, emerging issues the region. part of the Victorian Government’s are identified, and key projects are Connecting Regional Communities initiated that do not easily, reliably There are an estimated 6,5007 Program (CRCP), four regions and and accurately reflect on-ground agriculture, forestry and fishing sectors have been selected as the realities. Available data of the GRP businesses contributing to around focus of a $27 million and 2-year for Gippsland’s food and fibre 250 small communities across the on-farm Internet of Things (IoT) trial, industry is indeed a critical challenge. region. There are another 2,500 with the dairy farming in Maffra The Australian Bureau of Statistics business dependent on the food involved. The purpose of the trial (ABS) reports data by Australian and fibre value chain for their vitality. is to assess the contribution that New Zealand Standard Industrial Agriculture, forestry and fishing is IoT makes to farm performance Classification codes, a format which the largest employment sector with within the four selected agricultural collates data into pre-farm gate 15,400 employees (12 percent of sectors – dairy, grains, sheep, and ‘Agriculture, forestry and fishing’, the region’s workforce)8, contributing horticulture10. Other key Government while post-farm gate data is blended to the job market of the broader innovations include the creation of into ‘manufacturing’ data. This lack of food and fibre industry from inputs an innovation in milk production at distinction inhibits the ability to deep to consumer. Ellinbank Gippsland, and in plant dive into the detail across the whole and animal breeding at Bio 21 at food and fibre value chain. La Trobe University.

Previous work has been undertaken The sector also needs to transform by RMIT University with the RMIT & innovation processes from the Food Agility Cooperative Research traditional Research, Development Centre (FACRC) Gippsland food & Extension linear models. value chain: Data-driven regional Contemporary best practice should development report11. The report consider a framework of the EU highlighted the inconsistent Smart Specialisation concept with availability of data across the sectors elements of clustering design‑led in the food and fibre industry, and the innovation and open innovation as a porosity of the value chain as goods hybrid of the best parts. and services flow in and out of the region as part of the product’s value Informed decisions rely on adding journey. accurate measures of performance, underpinning the need for the For example, Gippsland raw milk is industry to own the process of processed into yoghurt and cheese collecting, collating and analysing in Dandenong, while specialist data. There is a need to invest and dairy ingredients manufactured in develop a data platform for more Gippsland are also exported and used accurate and reliable information to manufacture chocolate in export to better reflect the whole food markets. Dairy or red meat farmers and fibre value chain, based on a measure production data at the consistent definition of the industry. animal level (in some cases multiple This is a key function of the proposed times a day); milk and livestock truck food and fibre central hub in the new movements are recorded; electronic Hi-Tech Precinct, and builds on a core ID ear tag records (as part of a food capability of Federation University: safety system administered by collection, collation and analysis of Government i.e. Dairy Food Safety mega data. The sector needs to be Victoria or Prime Safe) also capture connected, respected and valued data about production of the sector. for its ability to provide insights on Other sectors like horticulture do not emerging issues, then mobilise have as much readily available data at action in response. the orchard or farm level. Improved collation of data about Gippsland’s food and fibre sector performance Other existing challenges will provide a more precise baseline of value chain GRP, and enable mentioned by Gippsland’s annual repeatable assessments of stakeholders include: the industry’s progress towards an aspirational growth target. • Lack of critical mass in delivery of research

• Lack of a strong and consistent food and fibre value chain story to attract talent and investments

• Lack of solid data to evaluate the GRP of the food and fibre value chain and know where growth pockets are

• The need to find better ways to bring students and new workers into the sector to have practical experience.

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. 10 Accelerating growth for the Gippsland food and fibre industry

NSW SA

ACT 274,600 people live in Gippsland in 2017**

VICTORIA 6,500 15,400 total estimated farming people directly families living in and employed in Gippsland contribution to some 250 agriculture, forestry small Gippsland communities* and ﬁshing in 2018** on egi d r an sl p ip G

The Gippsland region produces The Gippsland region has 32% 25% 28% 27% 25% of Victoria’s of Victoria’s of Victoria’s land of Victoria’s of Victoria’s Milk Production beef by area of agricultural vegetable plantation Gippsland Snapshot by volume*** value† commodities†† growing area† timber estate†

The Gippsland region covers a total area of 4,155,375ha. = 18.27% of the State**

Agriculture and food production generates $2 billion in exports from the Gippsland region*

476,404 334,000 18,810 625,737 1,835,259 Size of Size of Total number Size of Size of broiler beef cattle herd†† dairy herd*** of pigs†† sheep ﬂock†† chicken ﬂock††

NSW SA

ACT 274,600 people live in Gippsland in 2017**

The Gippsland region covers a total area of 4,155,375ha. = 18.27% of the State**

Sources * Invest Gippsland, 2018, Agri-Business & Food Production, Invest Gippsland, http://www.investgippsland.com.au/the-opportunities/agri-business- food-production/ Agriculture and food production generates ** ABARES, 2018, About my region – Latrobe-Gippsland Victoria, Australian Government, http://www.agriculture.gov.au/abares/research-topics/ $2 billion aboutmyregion/vic-latrobe#employment *** Dairy Australia, 2018, Australian dairy industry – in focus 2018, page 37, https://www.dairyaustralia.com.au/industry/farm-facts/in-focus in exports from the Gippsland region* † Invest Gippsland, 2018, Gippsland by the numbers, Invest Gippsland, http://www.investgippsland.com.au/ † † ABS, 2018, Latrobe – Gippsland (SA4) (205), Australian Bureau of Statistics, http://stat.abs.gov.au/itt/r. jsp?RegionSummary®ion=205&dataset=ABS_REGIONAL_ASGS2016&geoconcept=ASGS_2016&measure=MEASURE&datasetASGS=ABS_ REGIONAL_ASGS2016&datasetLGA=ABS_REGIONAL_LGA2017®ionLGA=LGA_2017®ionASGS=ASGS_2016

476,404 334,000 18,810 625,737 1,835,259 Size of Size of Total number Size of Size of broiler beef cattle herd†† dairy herd*** of pigs†† sheep ﬂock†† chicken ﬂock††

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Supercharging the food and fibre value chain by defining and meeting a SMART growth target

Action is needed in order to attract and retain necessary talent and investment to further grow Gippsland's food and fibre industry. As stakeholders and contributors to this important engine of Gippsland’s economy, all parties must seize the opportunity to establish an aspirational GRP growth target in response to the Victorian Government’s Regional Partnership challenge.

Since 2016, there has been extensive however not following the trend of • Considered as achievable by engagement activities with a wide the Gross State Product in Victoria, key stakeholders part of the range of Gippsland stakeholders with an annual CAGR of +2.5 percent initial consultations across to identify emerging priority issues from 2012 to 2017 as reported by the Gippsland’s food and fibre in the region, and more than 300 the ABS13. industry, under certain conditions stakeholders attended each of the to support the growth (refer to the three regional assemblies. As well Defining an aspirational growth capability platforms) as regional assemblies, there has target will help Gippsland’s food 14 been extensive dialogue with key and fibre industry to provide a • Realistic, based on 2.5 percent stakeholder groups in the food and clear objective to focus its limited CPI forecast estimation per annum fibre sector. At the 2016 Regional resources for maximum positive (vs 1.9 percent in September 2018) Assembly, stakeholders including impact for the sector. Achieving the and lined up against global, national, Former Minister of Agriculture the growth will position the food and regional and local contexts: Hon Jaala Pulford, East Gippsland fibre industry as the backbone of • Global – supported by a Food Cluster, Agribusiness Gippsland Gippsland’s economy to make the 60 percent increase in demand and the Victorian Farmers Federation region a point of attraction for local, for food and fibre products asked for a definitive growth target national and international talent and from 2005-205015, which gives for Gippsland’s food and fibre sector investment flows. opportunities to engage with to focus investment commitment value‑add markets and draw talent into the industry. This initial GRP growth The ambition was motivated • National – target defined by by the observed slowdown in target needs to be SMART. the NFF for Australia to achieve Gippsland’s GRP. In other words Specific, Measurable, $100 billion of farm gate outputs by 203016 Statistics on Gippsland’s GRP across Achievable, Realistic and Time based so stakeholders can hold themselves all sectors provided by Regional • Regional – Victorian Government to account and make resourcing Development Victoria highlight a target for increased food and fibre decisions that will prioritise the biggest compound growth rate per annum export to $20 billion by 203017 of +2.49 percent between 2002 contribution to their target. The defined to 2007, slowing down to +0.45 growth target per annum is: • Local – growth of the GRP can percent to 2012 before dropping by be achieved through increase • Specific to the food and fibre -1.3 percent from 2012 to 201712. of volumes but also value, as industry in Gippsland as per a Focusing on food and fibre, the mentioned by some stakeholders common definition of the value Gippsland Regional Growth Plan looking to reach highest value-add chain (refer to capability platform 1) identified agriculture, forestry and markets and also improving their fishing as well as manufacturing as • Based on an estimated baseline efficiency and profitability. “low growth sectors” for the last value of the industry with the period of time quoted (acknowledging • Time based on a 6-year time ability to repeat and monitor the the performance in growth would horizon, i.e. by 2025. performance over time in order vary from one sector to another). The to measure the growth achieved performance of Gippsland’s GRP is per annum

egional results fro Agriculture ictoria food 3-8% initial consultations 4.5% s national target 3% and fibre eport target with ey staeholders

arget of 5% growth per annu by for Gippslands ood and ibre ndustry

Where will the growth meat would need to grow at three Agricultural and food service come from? times the rate of the dairy sector industries will play key roles in how to contribute the same dollar value the region accesses economic return increase in GRP as dairy. The best – from commercialising IP relating Whilst the national target set efforts of the whole industry are to how food and fibre is produced by NFF of $100 billion is by required, acknowledging that the and processed, to diversifying enablers to unlock growth should economic dependency from the 2030, the first five years to address as many needs as possible actual commodity. 2025 is considered critical for across the sectors. Milk flows from New markets for the region’s food building the growth momentum the Gippsland region into other parts of Victoria for processing into and fibre produce and "know-how" to support the longer term value-added products, and urban need to be opened up, enabling the 2030 target. encroachment, farm gate milk prices, many regional producers to get their and access to a regional workforce fresh produce to the highest paying It is important to acknowledge that has put pressure on the dairy consumers. A regional intermodal for a 5 percent compound annual industry’s economic contribution in food hub at Traralgon Airport could growth rate (CAGR) in GRP to be Gippsland. To diversify dependency transport ready meals and protein achieved by 2025, it will require from major dairy companies and parcels from Gippsland, via regional support by various types of entities, forestry and paper producers, we consolidation airports, where export markets and sectors, each being must enable the estimated 6,50018 scale could be accessed to open driven by a different dynamic. agriculture, forestry and fishing new markets for Gippsland produce. For instance, some sectors like businesses to unlock growth, to Purpose built infrastructure that can horticulture are likely to achieve deliver better returns, and create provide dependable transport links, a higher growth than 5 percent more employment prospects. communication networks and energy based on consultations with key sources to food processors, such stakeholders who suggested 10 As seen with the mining and energy as Latrobe City Council’s planned percent could be achieved. However sector, Gippsland’s food and fibre food manufacturing precinct in as the baseline contribution from industry must diversify growth across Morwell, could enable hi-tech value sectors like horticulture is much lower all the sectors and participants, adding food production to occur – than for example dairy, stakeholders and not be dependent on dairy and such as protein and function food will need to unlock growth in new, forestry. New industries need to be facilities to convert waste from emerging and mature sectors nurtured whilst mature industries spinach and broccoli into high value to achieve 5 percent CAGR for continue to innovate and develop food ingredients. Gippsland’s food and fibre industry. new value streams for their products. Sectors such as horticulture and red

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. 14 Accelerating growth for the Gippsland food and fibre industry

Working back from the Victorian and connected industry participants, national and international innovation government’s 2030 target of reaching and access to current and planned in food and fibre sectors of relevance $20 billion of food and fibre export infrastructure, a 5 percent CAGR to to Gippsland requires a coordinated earnings, and the NFF national target 2025 appears a reasonable SMART effort. Lessons from global exemplars of $100 billion in farm gate value by stretch target. suggest a representative body that 2030, it would suggest CAGRs of 3 sits across industry, government and percent and 4.5 percent are needed Leading a focus on growth across research can deliver the greatest to deliver these targets. Interviews the region’s food and fibre industry outcomes. The proposed Gippsland conducted with leaders from is a critical role for a representative Food & Fibre Central could activate Gippsland food and fibre businesses industry led body. Collecting the a connected virtual community, identified support for a stretch growth necessary data points, engaging and coordinate activities across the target of between 3 percent and 8.5 with leaders across industry, physical infrastructures. percent CAGR to 2025. Considering education and research, local and the region’s natural assets, strong state government, and linking into

How do we get there?

The paper aims to identify key enablers to unlock 5 percent growth per annum based on existing challenges, the most likely drivers, and initial consultations with key stakeholders.

We have identified six capability platforms to unlock growth:

Positioning food and fibre as the Enable a connected region and 1 backbone of Gippsland’s economy 4 industry to prosper

Transforming food and fibre’s Sustainable energy, land use and 2 innovation eco-Systems 5 water

Attracting and cultivating talent and Developing future industries 3 6 leadership for the industry

Based on the early consultations, these capability platforms resonated across all key sectors within the regional food and fibre industry.

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. 16 Accelerating growth for the Gippsland food and fibre industry

What is the region doing Highlights of 2017 and 2018 to unlock growth? • Provided insight to the CSIRO • Provided industry input to the 19 The Victorian Government has Food Roadmap released in creation of the new Gippsland 24 established nine partnerships that July 2017. Tech School (opened in April bring together public, private and 2018). This tech school is key • Attended the NFF Warragul community sectors. Created in 2016, to attracting, retaining and Roadshow in May 2018, which the Gippsland Regional Partnership developing talented young people harnessed the collective ideas aims to foster the communities’ to choose food and fibre as of the Australian farming and economies, engage and consult their career. agribusiness communities to with people living and working in the grow the farm gate outputs • Led and finalising plans for region to understand local challenges towards $100 billion by 2030. It a new Gippsland High-Tech faced and existing opportunities, was further to the release of the Precinct (refer to section present the region’s priorities, and discussion paper Talking 203020. Transforming food and fibre’s obtain state government financial The roadshow resulted in the innovation ecosystems). support to turn them into live release of the NFF Talking 2030 projects with tangible outcomes for Roadmap21 in October 2018, • Contributed to the Gippsland food the community. setting targets. precinct development ambition linking four interconnected The Gippsland Regional Partnership • AGI, City of Greater Dandenong and interdependent hubs set up industry working groups able Council, Federation University, (refer to section Developing to join forces and work collaboratively. KPMG and the Victorian future industries). The Gippsland Regional Partnership Government became members Food & Fibre Working Group was of the new Food Agility CRC. AGI • EGFC delivered, in partnership established consisting of multi- partnered with RMIT University22 with CSIRO a significant skilled members from the food and to pioneer a project that pre‑feasibility study that identifies fibre industry to identify emerging defines regional food and fibre the regional opportunity in a issues, develop business cases on value chains. high-tech processing facility priority projects, and have these for Gippsland. recommendations taken forward • Latrobe Valley Authority to the Premier’s Rural & Regional have used the EU Smart • EGFC – in partnership with Budget & Finance Committee specialisation23 initiative to AGI - being declared one of four for consideration of inclusion in re-imagine the processes for winning national cluster initiatives the Victorian State Budget. The innovation. Gippsland’s food and by FIAL – with funding of Victorian 2017/2018 budget included fibre is the lead sector with both $900,000 provided over 3 years. $700,000 to implement a taskforce East Gippsland Food Cluster and • Significant growth opportunities to develop a food and fibre action Agribusiness Gippsland providing identified by EGFC and the agenda in Gippsland. Its governance industry input. will be driven by the Food & Fibre Food Source Victoria project — Working Group. sea urchin, craft malting, wild deer meat and others. There is momentum to address current challenges and opportunities • EGFC is a part of the successful faced by the industry and the region, ‘Fight Food Waste CRC’ bid. with stakeholders consolidating their efforts to make this transformation a success.

Actions for 2019

Governance Stream • EGFC and Agribusiness Gippsland will amalgamate to form Food & Fibre Gippsland Inc. (F&F Gippsland).

• Food & Fibre Gippsland to establish and recruit its CEO and the board and appoint Independent Chair.

Action agenda stream • Develop and deploy an engagement program for key stakeholders that positions food and fibre as the economic engine of the region.

• Design and deliver a co-design workshop with 80 to 100 stakeholders from industry, government and the research sector to agree actions for unlocking growth.

• Food & Fibre Gippsland to have its business plan endorsed by the board and an annual “state of the industry” paper published detailing the major priorities and developments in the industry, together with a priority listing of actions to achieve.

Innovation ecosystem stream • Create and deploy a Food and Fibre Central Hub as part of the Gippsland Hi-tech Precinct.

• Food & Fibre Gippsland will lead a process of transforming innovation. It is anticipated that the EU Smart Specialisation processes will provide a framework, with clustering, open innovation, sprint and scrum innovation.

Long-term transformation initiatives • Build a sector that is globally connected, respected and valued for its products, services and contribution to the vitality of the region’s economy and small regional communities.

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Gippsland food This report is presented through the lens of six and fibre platforms capability platforms detailing underpinning growth key opportunities to support the food and fibre industry in Gippsland to achieve 5 percent of growth per annum by 2025.

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Positioning food and fibre as the backbone of Gippsland’s economy

Gippsland’s food and fibre sector is the largest single contributor to the region’s economy. While this fact highlights the importance of food and fibre to Gippsland, it is critical that the region continues to promote both its existing and potential production capabilities to ensure that investors, businesses, labour and customers look to the region as a centre of excellence. Gippsland must utilise best practice technology to guide and measure its production, use data from multiple sources, and leading methodologies to inform the 1 establishment and implementation of a strategy.

What does this mean the GRP of the Gippsland food and providing a variety of opportunities, for Gippsland? fibre sector across the value chain. from fresh meat and vegetables This unique approach for a regional to the largest pulp and paper mill • Based on interviews with food scale involves the application of in Australia. Examples of high and fibre industry stakeholders, Australian National Accounts input- value emerging industries such as increasing the contribution of output data to a smaller region using olives, garlic, saffron and truffles value-add activities within the Compensation of Employees (COE) have been identified as potential industry may drive a significant data to arrive at a base estimate26. growth opportunities for the region growth of the GRP and job However, the nature of the available to consider31. creation opportunities. data means the resulting figures can only be indicative estimates. Without Raising awareness of food and fibre’s • Alternate high value emerging consistent data at a regional level contribution is critical to attract both industries will provide growth across the end-to-end value chain, new investment to the sector and opportunities for the region, i.e. attributing a value to the sector talented people to build a career in olives, garlic, saffron or truffles. is a challenge. Gippsland food and fibre.

• The development of a regional food Development of an initial target value chain intelligence platform will need to be based on the best Economic development has the potential to harness available data, acknowledging that data and drive strategic policy data collection and analysis is a at this pace should development. key function of a contemporary be supported by the innovation centre like that proposed community.” • Development of a region-wide at AATLIS in Toowoomba, the campaign to develop and market Netherlands World Horti Centre, and Food and fibre industry stakeholder the ‘Gippsland’ brand will drive FoodHQ New Zealand, etc. It will be recognition for the region and its a key function of Gippsland's Food & high value produce. Fibre Central.

Getting an accurate and Raising awareness of food reliable value of the food and fibre’s contribution to and fibre value chain the region’s GRP

To be able to quote a value for the Gippsland is renowned for its food and fibre industry, first there high end agricultural products, must be a consistent definition. grown on some of Australia’s best The Victorian Government defines agricultural land27. Food and fibre is food and fibre to include ‘farming, the backbone of the economy with fishing, forestry, food and beverage half of Gippsland’s economy being and textile, clothing and footwear agribusiness dependent28. manufacturing’25. As discussed, access to consistent data across the Food production and processing has value chain is difficult to obtain, and been identified as one of the key thus an approach to estimating a economic sectors ripe for growth value is a challenge. in the area. Total global agricultural production is predicted to increase Previous work has been undertaken by 60 percent from 2005 to 205029. by RMIT University in the Gippsland The substantial increase presents Food value chain: Data-driven a considerable opportunity for regional development report to Gippsland’s food products30. The develop a methodology to calculate region has a particularly diverse base

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Telling our story to attract The RMIT report proposes the Leveraging new technology investment and talent development of a regional food to connect Gippsland’s story value chain intelligence platform. with the market The Gippsland region needs to design The intelligence platform would harness data from a variety of and deliver an effective stakeholder Data and technology can play a sources including farm tagging and engagement program to tell the critical role in authenticating and tracking (via IoT), seasonal and trend Gippsland story and attract both communicating the provenance story analysis, relevant web content, investments and talents. This should of a brand and highlighting digital providing value network analysis, identify the top 100 key stakeholders innovation in the agricultural sector. and role identification, which can across the industry, entrepreneurs, Not only will technology authenticate inform discussions with industry innovators, government and the provenance of products, it stakeholders and ultimately, strategic community that shape and drive the can help producers meet evolving policy development. Mega data sector. The engagement program consumer expectations34. should take stakeholders through the collected with respect to regional process of raising awareness of the production, trade and employment The effective collection of data at region’s food and fibre prosperities, collected in isolation can be each step along the supply chain is and demonstrate why food and fibre instructive but flawed, but of great much easier than ever before thanks is relevant. use when collated with other detail to the IoT. On farm and supply chain 33 and interpreted holistically . sensors are now connected to The program should engage key devices such as tablets and smart stakeholders with the goal to phones. Data captured at trust points encourage them to invest and CASE STUDY: upstream in the supply chain can advocate for Gippsland food and New Zealand Agribusiness Agenda create value at stages downstream, fibre. This program should not be a KPMG’s eighth New Zealand as the product journey is tracked to communications strategy, but rather Agribusiness Agenda (Agenda) the consumer. a platform built on metrics, using provides the opportunity for industry an annual survey to highlight and stakeholders to identify and prioritise In addition, the ability to add critical bring awareness to key elements the importance of a variety of data into a secure platform, like and emerging issues in the sector, issues, establishing trends that can blockchain, will enable more trust, proactively engaging Food & Fibre inform strategy and decision making confidence and value to be captured over time. Central. The platform should enable in each transaction. The ability to the collection of both quantitative and Content for the Agenda is developed provide food quality, sustainability qualitative data and serve as a powerful through roundtables with industry and environmental assurance tool for the industry to identify trends stakeholders discussing issues validation, and provide trust to and provide deep insight of emerging identified by KPMG. Questions consumers across all points of the issues. With this information collated are consistent year-on-year so that supply chain, will drive value for the over time, industry representatives responses can be tracked to inform Gippsland brand. policy and strategy. can provide evidence to support or advocate for policy change and The Agenda fosters an environment Underpinning the Gippsland the prioritisation of investment. An in which ideas are shared and brand as a data driven economy example of consistent, definable data debated for the benefit of the collection is provided in the form of broader industry. will create flow-through benefits for each participant in the the New Zealand Agribusiness Agenda Publication of the Agenda ensures 32 detailed further along . that the story of New Zealand supply chain. agriculture is continually told and evolved, providing the means for a For consumers, the collection and In Gippsland there is a mature conversation with industry presentation of supply chain data great opportunity to attract leaders and consumers, highlighting reinforces trust and confidence in investment, and to do so both achievements of the industry, the brands and supply chain. The and efforts to improve the quality of provenance story such as history, we need a strong narrative farming processes and produce. quality control, authenticity, origin and and prospectus and to certifications can be communicated build confidence in those electronically to a consumer using referral pathways.” contemporary digital channels.

Food and fibre industry stakeholder

For supply chain partners, the seize on this emerging technology will be valuable if it addresses collection and sharing of data allows along with DJPR digital program that the priorities of the key consumer access to detailed information is promoting IoT connectivity (in the markets, their concerns or requests. including chain of responsibility Maffra region) to position Gippsland Each step along the supply chain and biosecurity risks. This can drive as a data rich region. has the potential to add value to the operational efficiency. consumer, i.e. sustainability, social A range of digital solutions and licence, or organic. For regulators, the digital collection sensors have hit the agricultural and storage of data in a common market to support the evolution Gippsland can look to Ireland’s Origin format would enable efficient toward digitised supply chains. Green sustainable food program, and streamlined compliance, i.e. The introduction of the mandatory driving sustainable and eco-friendly export certification, environmental NLIS sheep and goat tags on 1 production will be key to the compliance and food safety. January 2017 was a move by the longevity of the brand’s success. Victorian Government to mandate For farm management, accuracy the electronic tracing of stock of decisions becomes particularly movements and accelerate the CASE STUDY: powerful when data can be industry towards a data driven measured back to the smallest economy. While the tags alone do not geo‑truth possible, i.e. a specific provide ground breaking data on an plant or animal at a particular location. animal-by-animal basis, they provide Collection and storage of data then a platform to integrate sensors which drives real-time, informed decision can draw data from the tags. For Origin Green making to allow precision application example, placing sensors beside a In Ireland, Origin Green has over 90 of irrigation, chemicals and fertiliser trough which reads the tag of any percent of farmers and processors along with analysis of growth and nearby stock wearing an EID tag registered and subject to greenhouse production trends. enables a farmer to account for stock gas audits36. It is Ireland’s food movements, but more importantly and drink sustainability program If Gippsland were to prioritise where stock have not consumed which brings together the country’s technology connectivity and end-to-end food industry with the water in days. Incorporating walk-over enablement of the food and fibre common goal of sustainable food weigh scales at gate and watering 37 sector it would allow industry to production . The brand is providing points enables farmers to collect optimise decision making and B2B customers with confidence average daily weight gain data for productivity, leading to willing that the products they source are the herd/flock, and make more data being grown to minimise their exchanges of data by growers informed decisions on stocking rates. environmental impact38. with producers and the research community. The exchange of clean data unlocks the opportunity Creating and leveraging for producers to communicate production growth curves and brand Gippsland optimise process scheduling that the Positioning the Gippsland region new industries such as powdered as a recognised ‘brand of origin’ vegetable facilities would require. for consumers could drive value. It would also enable more effective Building a ‘brand story’ has been a and cooperative planning to help get recommended action for the region produce through supply chains. for a number of years, and there is fresh opportunity to do so aligned to Major telecommunication providers the SMART growth agenda. are developing a data exchange platform for data owners to use as The provenance story and narrative a mechanism for exchanging data of the producing region enables with approved actors in their supply consumers to trust and distinguish chain, enabling the data owner to quality products, whilst also enabling decide what they share and who producers to better market their they share it with. Gippsland could products35. The ‘Gippsland brand’

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Transforming food and fibre’s innovation ecosystems

Gippsland is fortunate to be located on fertile soils, to receive (relatively) consistent rainfall, and be located in close proximity to domestic markets and export channels for its production. However, it is still susceptible to domestic and international 2competition if it fails to innovate.

The current research, What is needed is a capstone to What does this mean development and extension facilitate the interaction between for Gippsland? these initiatives and broker model is outdated, highly engagement across the food and • Execution of the vision for a food evidenced by the low level of fibre community. A model similar and fibre innovation ecosystem is investments made in innovation to the successful Foodvalley key and must take into account on average in Australia. Australia network in the Netherlands is what collaboration required and key many stakeholders are seeking for th success factors. is currently ranked 76 in the Gippsland. The proposed Food & world for innovation efficiency, Fibre Central could be the virtual hub • Development of a hybrid model of and is specifically lacking in which brokers connections between innovation strategies and methods education, research, industry, will help ensure maximum output commercialisation ability39. government and investors to optimise and innovative success. Development of collaboration Gippsland’s food and fibre innovation. Food & Fibre Central should also • Attracting both entrepreneurs and networks and an innovation investors to the region through ecosystem model is key to provide a connection gateway between Gippsland and other the development of incubator successful translation of innovation and accelerator programs will into commercial adoption. To unlock regional, national and international food and fibre research facilities to drive innovation and ability to profitable growth, the Gippsland commercialise new ideas. region needs to foster innovation ensure the sector is in touch with leading insights and innovations. which will contribute to the growth • Applying best practice ideas of the target sectors in the region, Development of a successful from world leading food but also identify new opportunities innovation ecosystem will incorporate innovation clusters and precincts (i.e. development of new products) incubator/accelerator programs, is a key to developing a and address practical issues facing co-working spaces, access to progressive ecosystem. industry stakeholders. Technology specialist service providers and providers and innovators need to mentors, applied research facilities work closely with farmers and food To remain competitive and commercialisation pathways. processors to ensure the right issues Once developed, the reputation in export markets we are being addressed and the correct of the Gippsland food and fibre must collaborate locally opportunities are being seized. innovation ecosystem will attract and and globally, privately retain interest within the region in a There is recognition that the current and publically to create innovation system needs overhauling cyclical nature. in order to enable future prosperity innovative products.” For example, good accelerator for the region. Gippsland must programs will attract investors to Food and fibre industry stakeholder cultivate an environment for research, the region, and access to investors skilled labour and progressive will attract quality entrepreneurs to businesses to flourish. The the accelerator programs. A strong establishment of Gippsland’s Hi-Tech innovation ecosystem supports Precinct, Latrobe Valley Authority’s existing industry to identify new Gippsland Smart Specialisation solutions and to unlock value in Strategy work with the University their businesses. Investment in of Melbourne, and East Gippsland developing and transitioning to this Food Cluster’s $890,000 support new innovation ecosystem is crucial from Food Innovation Australia to its success. Ltd.’s Cluster Fund are several new initiatives and resources that can enable innovation.

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Framing our future-proofing from researchers, start-ups and observed learnings from attending a innovation ecosystem entrepreneurs. Innovation resources Netherlands AgriFood Traction Tour need to be easily accessible for is that Dutch agrifood businesses The key challenge for the Gippsland all levels of industry, whether embrace the principles of clustering, region is to create an interconnected it be farmers, cooperatives or co-investment in core infrastructure ecosystem for the food and fibre larger corporates. (water, energy, research facilities), participants to understand what collaboration and partnering, and component parts exist, what each industry led research and innovation. component’s purpose and target How farmers adopt customer is, how to access the innovation is going to be Dutch businesses like Friesland innovation resources, and most Campina and Unilever co-locate different from big industries, their R&D facilities on Wageningen importantly, how industry can inform we have to facilitate all those the directional focus of innovation University and Research campus and research resources. This is a conversations.” within Foodvalley NL. Major food critical enabler to unlock value from production and processing hubs, Food and fibre industry stakeholder the investments in the regional such as Venlo Food Park and innovation resources. AgriPort A7, co-locate and share core infrastructure and distribution Gippsland has the same land mass centres. From startups to major To enhance collaboration across the as the Netherlands, the world’s corporates, the Dutch agrifood innovation networks, there must be second largest agrifood exporting producer mindset is to think, “Who is multiple innovation approaches to nation (US$158 billion exports), and my research/innovation partner?” The create a hybrid innovation ecosystem much more available productive challenge for Gippsland is to create which enhances commercialisation land. Granted, Gippsland does not an integrated innovation ecosystem ability, and leverages the regions share the same level of infrastructure with the right capabilities and access existing R&D and innovation abilities and population intensity as the points for the food and fibre sector (i.e. the Ellinbank National Centre Netherlands (17 million people), but 40 participants, from small to large, and for Dairy Excellence) . The region it does have a mature dairy sector foster greater partnering to support must improve the ability to match and range of horticultural production and enable growth. industry needs with capabilities streams in common. One of the

Key success factors for a successful innovation ecosystem

Vision: Strategy for proposed food and fibre tech hub Funding: A coordinated ecosystem will bring together backed by government but led by industry. regional development agencies, investors with start-ups and research partners around projects that require capital Commitment: From both sides of government and to commercialise. corporate partners to drive innovation change and support the ecosystem. Marketing: Driving community awareness and support by promoting the activities and successes of the ecosystem. Culture: An encouraging safe-to-fail innovation culture with a focus on collaboration with research and technology Talent: A team running and governing the hub of partners needs to be nurtured, brokered and promoted. experienced specialists, with strong awareness of global and national innovation networks to provide a trusted Partnerships: Support innovation with successful intermediary service. collaboration between educational institutions, industry, government, research facilities and start-ups. Support system: Mentoring and support systems are required to guide start-ups and assist in collaboration and Education: Needs to be focused on the various skills partner with regional development agencies. required in the hub (IT, data and analytics, genetics).

CASE STUDY: The essential role of Food & Fibre Central in the new innovation framework

The Gippsland Hi-Tech Precinct is expected to open in 2020 and ecosystems that will drive growth in the sector. The second will be located in Morwell. The precinct is designed to bring is to provide an open innovation environment to foster together education, training, research and industry to support collaborative solutions and identify emerging challenges and the expansion of the region’s growth sector (new energy, opportunities facing Gippsland’s food and fibre sector for the health, food and fibre, advanced manufacturing). innovation ecosystem to respond to. The third is to respond to individual company requests for innovation and growth support, The Centre will host an Innovation Centre and incubation hub, to broker introductions to ecosystem participants, and nurture 2,800m Tech School, TAFE College, conference facilities, a 2 in-house confidential requests. business incubator, research and start-up support, and a data centre. Food & Fibre Central is the engine dedicated to food Latrobe Valley Authority has engaged the University and fibre activities within the Gippsland Hi-Tech Precinct. The of Melbourne to conduct a study of European Smart innovation system will be integrated with the Gippsland Hi Specialisation Strategies with a view to creating a Gippsland Tech School which will enable it to link researchers with local Smart Specialisation Strategy (G S3), which would include industries and students. Food & Fibre Central will be a project a focus on food and fibre, and promote the advantages of of Food & Fibre Gippsland supported by State Government and clustering specialist research and processing activities together. other funding. It will support the establishment of Gippsland Food & Fibre Central as an innovation conduit for the region’s businesses and Food & Fibre Central’s role within this precinct will have three specialist facilities.farming processes and produce. key aspects. The first is to deploy best practice innovation

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Building on existing foundations and fostering new initiatives to create a vibrant innovation ecosystem and enhance collaboration

Innovation intelligence Food & Fibre Gippsland has been created to build and nurture a strong, diverse, global and growing network of farmers, food producers, financiers, public sector and knowledge sector focused on For students, entrepreneurs growing Gippsland's food and fibre. Ensure Gippsland and food and fibre innovators and producers participants to experiment are plugged into the with leading technologies in emerging tastes and living laboratory preferences of consumers environment and Industry globally, embrace and Education leaders to technology, and sustainable Ensure Gippsland Food Link to global build skills and capabilities & Fibre is embedded in energy, land use and water. food & fibre in value add industries. the new Gippsland High innovations Tech Precinct

Gippsland Food & Fibre Innovation Mobilise focus Eco-System Prepare and action to annual address Gippsland the emerging Food & Fibre As well as proactively issues Agenda Annual publication to mobilising projects that highlight evolving directly address emerging priorities of the top 10 issues for the sector, we are emerging opportunities also trying to build capability: Conduct annual and challenges for the prioritisation alignment Gippsland food and • Continuously reviewing and and action planning ﬁbre sector. enhancing the innovation ecosystem workshop • Continually positioning food & ﬁbre as a key economic driver for the region Workshop with representatives • Proactively engaging in regional from industry, research and leadership groups, Regional government to agree the work Partnership Programs, support of program and regional initiatives. new infrastructure, strengthening of small rural communities for example.

Better practices from well-established food innovation clusters

CASE STUDY: CASE STUDY: CASE STUDY:

Innovation intelligence Food & Fibre Gippsland has been created to build World Horti Centre – FoodHQ New Zealand Foodvalley NL – and nurture a strong, diverse, global and growing promoting innovation Based in Palmerston North, New “Shaping the Future of Food” network of farmers, food producers, financiers, Opened in 2018 and covering Zealand, FoodHQ is a collaboration Foodvalley is a knowledge- public sector and knowledge sector focused on 22,000m2, the Netherlands’ World between established research intensive agrifood ecosystem in the For students, entrepreneurs growing Gippsland's food and fibre. Ensure Gippsland Horti Centre (WHC) is a leading organisations and educational Netherlands. Since its creation in and food and fibre innovators and producers innovation hub for the international institutes that aims to create 2004, Foodvalley NL has gained a participants to experiment are plugged into the greenhouse horticulture sector. opportunities to enhance and deep understanding of the challenges with leading technologies in emerging tastes and The precinct provides “a platform further develop New Zealand’s faced by the food industry and has living laboratory preferences of consumers where business, education and future food production. With over used its vast network to help tackle environment and Industry globally, embrace government jointly innovate, connect, 2,500 researchers and food experts, these problems. and Education leaders to technology, and sustainable create and inspire” with over 40,000 FoodHQ is able to provide collective Ensure Gippsland Food 41 Foodvalley offers resources to help Link to global international professionals visiting thinking and progressive ideas . build skills and capabilities & Fibre is embedded in energy, land use and water. accelerate innovation, focusing on food & fibre per year. in value add industries. the new Gippsland High FoodHQ’s first food super-campus societal challenges such as health, innovations Tech Precinct By connecting with local schools is located at Massey University’s nutrition, functional foods and and universities specialised in Manawatu campus, where leaders in sustainability to create engagement horticulture, WHC is driving talent food research are clustered together and attract potential partners development through education. allowing global customers access and investors. WHC’s focus on collaboration to the best opportunities in food Gippsland between the private and public sector innovation, whilst creating a more The ecosystem has dedicated start-up company pathways and a Food & Fibre helps provide solutions to relevant efficient way for food companies social themes surrounding water and to work with partners. Funded by strong emphasis on collaboration Innovation food supply, food safety, wellbeing AgResearch, Fonterra, Massey both internally and with other Mobilise focus Prepare Eco-System and sustainability. University, Plant & Food Research, agri-food hubs. It has a strong and action to annual research presence fostered through address Gippsland the Riddet Institute and the Building https://www.worldhorticenter.nl/en/ Clever Companies, and supported by collaboration from over 8,000 the emerging Food & Fibre home scientists, 70 science companies, 20 issues Agenda Palmerston North City and Manawatu As well as proactively Annual publication to research institutes and a dedicated mobilising projects that highlight evolving District councils, the objective is to enable the nation’s food exports to on site presence from a leading directly address emerging priorities of the top 10 reach $60 billion by 2025. university. This has culminated in issues for the sector, we are emerging opportunities the Foodvalley Society, with over also trying to build capability: Conduct annual and challenges for the Project manager Mark Ward believes 145 members that collectively sets prioritisation alignment Gippsland food and having innovative organisations the agenda for innovation, creates • Continuously reviewing and and action planning fibre sector. working together at FoodHQ will collaboration and networking, and enhancing the innovation ecosystem workshop create higher revenue and jobs, allows for representation at an 43 • Continually positioning food & fibre promoting New Zealand’s “shift to international level . as a key economic driver for the being a value-added food nation, building on its strength as a Foodvalley NL has partnered with region commodity producer”42. Foodvalley China to create a Sino- Workshop with representatives Dutch bridge of agrifood research. • Proactively engaging in regional from industry, research and A core element to Foodvalley NL’s leadership groups, Regional government to agree the work success has been the physical Partnership Programs, support of program and regional initiatives. clustering of research and new infrastructure, strengthening of development operations of world small rural communities for example. leading food businesses alongside leading scientists at research institutions such as Wageningen University and Research, and a focus on the needs of food companies through an annual survey.

Some of the many innovations to come out include the soil scanner, sustainable crop production systems, and a virtual reality breeding tool44.

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Developing future industries

Gippsland’s abundant natural resources present the opportunity for the region to deliver innovative new value-added food and fibre products to complement existing production. The development of new products or alternative industries diversify markets, utilise resources more efficiently, and minimise waste. By extracting maximum value from its production, Gippsland can improve on the inherent sustainability of food and fibre production and reinforce the 3industry’s social license to operate.

What does this mean Stakeholder interviews identified that Packaging is a key industry ripe for Gippsland? a number of high value emerging for disruption. Development of industries such as olives, garlic, bio packaging is being driven by • Diversification of existing industries saffron and truffles present an a move to attract environmentally will drive growth for the region, opportunity to diversify existing conscious consumers with a focus whether it be through new supply chains and develop new high on sustainability. As a traditional models of existing categories or value industries. and long-standing industry, and development of niche products. a huge consumer of energy and Development of new and specialised trees, the pulp and paper industry • Interaction of other sectors brands within existing product is a world leader in sustainability outside food and fibre is categories is also an opportunity and innovation55. Even mature, long important for development of the for growth for the region. A key standing traditional industries are innovation ecosystem. example of this is the movement thinking about how they need to toward specialised fresh milk by pivot and play a different role. The • Development of supporting companies like Gippsland Jersey Maryvale Paper Mill, located in the 48 structures and processes for and Bass River Dairies , or the heart of Gippsland, is Australia’s industry export strategies and disruption in the dairy industry from largest integrated fine paper-making pathways to export is important to the new direction in milk production and packaging papers complex56. 49 ensure export success. by A2Milk . Opportunities also exist The company is continually looking in development of the bio packaging to predict what food will be coming • Cross-utilising the outcomes and industry, and production of powdered out of Gippsland in 3 to 4 years’ developments of the planned waste broccoli and spinach into a time, and how packaging will need to Gippsland Food Precinct’s four high value functional food product. underpin this. interconnected and interdependent The Gippsland region should look hubs to maximise their success to the Netherlands for inspiration, a The fibre industry is booming, with and growth opportunities for country that develops niche markets demand well outweighing supply. the industry. and utilises technology and their The minimum plant-to-harvest period trading experience50. of approximately 10 years means • There is opportunity to derive the industry is forward planning to new value-added products from The region should also leverage the predict fibre demands and changing waste streams in the production link between food and fibre and the market needs. However, packaging of existing food and fibre products, health sector. Globally, health and solutions for export must sustain unlocking growth through circular wellness is positioned as one of the cool and high humidity environments. economy principles. fastest growing food and beverage This provides a challenge for the 51 categories . This is largely driven by fibre industry to create sustainable a rise in chronic disease and illness packaging solutions that are Develop new industries in 52 linked to lifestyle and diet . The sufficiently robust. There is a need the Gippsland region rise in health and wellness provides to focus on exploring the consumer opportunities for the development There are a number of opportunities needs, and communicating this to of new industries such as medicinal across the region to diversify and producers, along with liaising to cannabis, extracting collagen, and enhance sustainable farming45. withstand export processes. development of 3D body parts. In the 2017-18 year the value of Israel’s CollPlant is a regenerative Victorian food and fibre export medicine company focused on 3D bio 64 percent of what we 53 increased from $12.8 billion the printing of tissues and organs . The produce is exported, so we previous year, to $14.1 billion46. company’s technology is transforming the tobacco plant, a product that is need a packaging regime to However, the volume of exports support this. If our export over the same period reduced associated with lung disease, into from 10.8 thousand tonnes to 10.6 a collagen-expressing plant that market grows then the thousand tonnes47. This 11 percent will be utilised in the production of 54 packaging market grows.” increase in export value has been transplantable lungs . This company driven by an increase in high value is demonstrating a transformational Food and fibre industry stakeholder exports, especially meat, animal fibre change that could use glasshouse and dairy. infrastructure in a completely different and value-add way that produces a product selling at $2 million per kilogram.

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Opportunities for Some opportunities exist to In both the domestic and international interconnected hubs incorporate principles of circular markets there is a trend toward economies (refer to capability grouping producers and farmers in A recent Victoria Parliament Research platform 5) through the utilisation clusters and food precincts. Paper highlights the concept of a of what was previously deemed circular economy to maximise value ‘waste’. For instance, waste broccoli In South East Queensland the FKG at each point in the products life. and spinach can be processed to Group are building an innovation form a nutrient rich powder that can smart hub for food and fibre, just The research paper notes that a 60 circular economy seeks to close be re-purposed as a food additive, outside Toowoomba . The precinct industrial loops and to turn outputs multivitamin or pet food ingredient. will focus on the new digital from one part of the value chain into The development of this processing and circular economy, involving inputs for another and, in doing so, activity contributes to the broader collaborative business models in reduce the consumption of virgin GRP and creates job opportunities. order to ensure Australia and the materials and the generation of The high water content of these Toowoomba region can remain vegetables provides an opportunity globally competitive in food waste. Gippsland’s food and fibre 61 industry has the opportunity to create to treat and repurpose water for production . It aims to create a circular economy by proactively irrigation and other uses. Such intensive food production and interconnecting production, initiatives require discussion around processing facilities engaged in innovation and transport hubs along technology, investment, market a circular economy supported by the food and fibre value chain. development and solutions to 5G IoT connectivity and an onsite mitigate the risk of consistent supply Innovation and Research centre, An example of such an opportunity of raw materials. which will enable accelerated might be the development and innovation between industry and interconnection of inter-regional air Another example of waste turned research partners. freight hubs at Latrobe Regional into value is bio packing solution. Airport and or West Sale Airport Companies such as BioPak Another example is the proposed with the Food Manufacturing Hub (Australia and New Zealand’s agribusiness precinct at Western at Morwell and the food central hub first packaging company) and Pac Sydney Airport, looking to generate within the Innovation Centre of the Trading aim to reduce the negative an additional 12,000 jobs in a diverse new Hi-Tech Precinct. impact businesses have on the range of areas from innovation environment by offering sustainable through to manual handling and 62 The East Gippsland Food Cluster has food packaging supplies made from processing . Not only does a precinct initiated a preliminary investigation plants58. Pac Trading uses renewable help to integrate the food value chain carried out by CSIRO into the plant fibres such as corn and both vertically and horizontally, but viability of establishing a high-tech sugarcane which both reduces the it also enables the creation of job processing hub in Gippsland focused waste stream and creates valuable opportunities and the development on horticultural products. According 100 percent recycled material out of new industries such as protected to CSIRO, this project might deliver of waste59. cropping and land‑based aquaculture. the region broader benefits and might generate a net present value There are a number of existing of $93.1 million over a 15 year period. Creating high value is not just international precincts that can The estimated processing capacity of provide guidance on success. Key about high value products. examples are the Venlo Food Group’s the facility would be 22,000 tonnes, Gippsland needs to think generating annual revenue of $66.4 Fresh Park Venlo and Agriport million. The preliminary findings from about different attributes A7, located in the Netherlands. that analysis recommend to progress such as shorter value chain Collaboration of companies, local to more detailed feasibility57. government and research is at the or new type of product such core of each precinct, enabling as new protein products companies to work together and like insect‑based and thrive in the community environment. seaweed‑based food produce.”

Food and fibre industry stakeholder

An example of such an opportunity A number of regions are currently Stakeholders are acutely aware that might be the development and developing airport precincts to while Australia is renowned for (and interconnection of inter-regional air support export market opportunities. can exploit) its clean, high quality freight hubs at Latrobe Regional The Wellcamp Airport in Toowoomba food reputation, it does not have Airport and or West Sale Airport operates a fully licensed international a monopoly over the ‘clean and with the Food Manufacturing Hub air cargo terminal with export green’ brand. Australian producers at Morwell and the food central hub registered premises and cold storage must be aware of competitors and within the Innovation Centre of the facilities64. The airport has been their continuing efforts to improve new Hi-Tech Precinct. developed with the capability to production quality and exploit export fresh Australian produce to competitive advantages, particularly The scale of these hubs can also international markets. so when these markets have reduce input costs by allowing economies of scale. collective ordering and utilisation Internationally, the Schiphol Airport of transport. The clusters do not is a key example of innovation need to be restricted to food and in practice in an airport precinct. We cannot ignore our fibre businesses. Further value can At Schiphol the aim is to be the competitors when be added when research, related smartest air cargo hub in Europe, services, logistics providers and with collaboration, communication assessing the viability of education are also co-located and are (with the government) and sharing export markets. They have contributing to shared problems63. of information at the forefront of competitive advantages and 65 all developments . Avalon Airport disadvantages as well.” in Melbourne has identified the Develop export markets potential for prompt access for Food and fibre industry stakeholder fresh food to export markets, and While Australian (and Victorian) demand the Traralgon Airport presents an will grow over time, it does not have opportunity for the Gippsland region Export opportunities can also directly the ability to consume (or invest) at a to explore the same. Development of be stimulated by coordinated rate that will support the accelerated the airport as regional intermodal hub market tours to Gippsland for and consistent growth sought by the will enable this. potential buyers and investors to Gippsland food and fibre industry. visit producers, processors and in Stakeholders consulted consistently Market access is key to developing the innovation precincts. Initiatives voiced that a diversification of domestic export markets. While Australia has such as the tour organised in May and export markets provided not only a number of bi-lateral agreements in 2017 by Invest Gippsland66 enabled a the potential for growth, but also an place with many of the countries in delegation of purchasing managers opportunity to mitigate the risk of our region, Free Trade Agreements from major hotels and supermarkets reliance on a single or limited number and reduced tariffs are key to from Malaysia, Singapore and of markets. export success. For Gippsland, it Thailand to work closely with the is imperative that industry bodies Victorian Agribusiness Council, Meat inform on market access to enable and Livestock Australia, Regional Domestic demand will grow, the region to take advantage of open Development Australia Gippsland, and but we must also explore markets. Informative documents the six Gippsland local councils. The export markets to diversify regarding key trade barriers and trade mission was a key opportunity and expand the potential of instructions on navigating trade for Gippsland producers to showcase corridors can be particularly helpful. premium food products. A comment the region.” from a stakeholder highlighted the importance of showcasing only Food and fibre industry stakeholder Some more coordinated ready‑to-export produce, and the approaches to investigate ability to scale production to meet With the growing global population market opportunities, new demand. and predicted increase in demand for fresh food, significant export and how to get there, opportunities exist in the Australian is a key support.” market to export fresh Australian produce. Thus development of export Food and fibre industry stakeholder markets and pathways to export are imperative for Gippsland to tap into this opportunity.

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CASE STUDY: CASE STUDY: Medicinal Manuka Venlo Food Group, Netherlands Manuka honey is made from Fresh Park Venlo is Europe’s largest pollination of the leptospermum plant fresh food hub69. The precinct is the native to Australia and New Zealand. home base for over one hundred Researchers are increasingly finding companies that are engaged in healing capabilities of Manuka honey the business of fresh produce and and its medicinal value in speeding food, and is focused on delivering wound treatment and managing fresh food to the right place at the bacterial infections. right time70.

Researchers assess the effectiveness The collaborative nature of the of Manuka honey using Unique precinct is conducive to developing Manuka Factor (UMF) ratings which new food products and services. range from 5 to 20. Manuka honey The precinct facilitates companies in with a high UMF is more effective the food business and creates the in the treatment of wounds than conditions that enable companies to Manuka honey with a low UMF work collaboratively to service the rating67. Demand is exceeding European fresh food market71. supply across multiple industries such as medical, cosmetic, food Fresh Park Venlo is made up of and pharmaceutical. 135 hectares of private food park, 25 hectares of business space, A partnership between AgriFutures and over 350,000 square metres Australia, ManukaLife, and Kings of warehouses. Given its central Park Botanical Garden has led to the location, the business park is development of a leptospermum a logistic hotspot with direct plant breeding program located connections to rail, water and in Western Australia to produce highways. It supports more than 50 premium quality Manuka honey. percent of the road and rail freight The aim is to build a “sustainable trade between Netherlands and commercial Manuka honey Germany72. It is accessible to over industry, inclusive of propagation, 152 million European consumers plantations, growers, apiarists, within a 9-hour drive73. through to production and product distribution”68. ManukaLife has Fresh Park Venlo also houses planted an estimated 650 hectares practice-oriented education and of leptospermum from more than research institutions specialising in 1,000,000 propagated seedlings. food and logistics. The precinct is constantly expanding and looking New Zealand is the global leader in for new ways to develop the the supply of Manuka honey with food industry. reports indicating export value to increase to over $1 billion by 2028.

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Connecting Gippsland

Gippsland’s food and fibre industry must ensure that research and education institutions, producers and the many small, medium and large businesses are empowered by access to technology and skilled personnel to enable growth.

Access to technology (including connectivity) is critical to allow timely collaboration in education, training, the day-to-day operation of smart supply chains, and for regional communities to retain talent and prosper in spite of their distance to markets. The provision of digital infrastructure will enhance the ability of the region to create innovative solutions and products, which will create an environment where skilled labour is attracted to and retained in the region. Exposure to leading digital technologies in environments such as high-tech precincts and innovation hubs can help accelerate digital literacy and provide people with skills needed for future industries.

However, high speed regional broadband connectivity is critical to adoption of new technologies behind the farm gate, in the small businesses, and running Gippsland’s large production facilities. Regions like Gippsland are critical to Victoria’s economic prosperity, and fast, reliable phone, internet and energy connections are vital to 4the region achieving its full potential.

What does this mean Capturing data about biosecurity, for Gippsland? climate, environment, freight and Our regional partnerships logistics efficiencies, on farm have told us that improving • The ability to harness the passion productivity, irrigation requirements digital access is an and beyond is helpful at a single point, within the region and cultivate it 76 towards development and continual but it is more beneficial when actors in absolute must.” up-skilling is crucial. the Gippsland food and fibre industry can elect to exchange portions of their The Hon Jaala Pulford, Former Minister • Promoting a safe to fail innovation data with other selected participants in for Agriculture, Minister for Regional mindset will encourage and support their supply chain. Development and Deputy Leader of the creativity for the region. Government in the Legislative Council A connected region would mean leafy • Development of a compelling story green growers could elect to share The adoption of new network behind a career in agriculture will harvest data with a protein powdering technologies is critical to achieving attract talent to both the industry factory about the amount of crop connectivity, especially in remote and the region. that is being directed to the factory areas of our regional communities. in the next 72 hours. Or orchardists • Development programs and other Connectivity enables the viable use could transmit the objective fruit of on-farm IoT technologies that opportunities that cultivate learning scores of fruit bins at harvest point experiences and opportunities to will play a central role in boosting to the pack house before the fruit is the productivity and resilience of lead and excel are important to transferred from the farm. This would retain talented people. Australia’s agricultural industry, help the producers, transporters and with the potential to contribute an processors unlock efficiencies and • Connecting people, plants, animals additional $20.3 billion gross value improve their product provenance and assets to high-speed broadband product (GVP)77. story for consumers. will enable the region to unlock efficiency gains and derive new The Victorian Government’s work Major telecommunication providers through the DJPR on the $45 million, value from a better connected are working on data exchange supply chain. 4-year CRCP has been deployed to platforms that will enable data owners assist in the uptake of technology. The to elect to share and exchange clean • Technologies such as the IoT will purpose of the CRCP is to increase data with identified parties. Securing a help optimise existing businesses connectivity and usability in Victoria’s trusted data exchange platform for the and government infrastructure, regions. Part of the CRCP includes a Gippsland food and fibre sector would reduce wastage and improve flow of $27 million on-farm IoT trial which will enable fast transfer of knowledge, people and goods in the region. assess the contribution IoT makes to better optimisation of supply chains, farm performance across four sectors and the ability to track and improve including grain, dairy, sheep and Communities need to be on productivity in the region. horticulture. The plan is to provide 600 board to support economic farms in the pilot (125 farms in each of development at this pace.” Department of Jobs, the four regions of which Maffra (dairy) is one), with IoT connectivity and Precincts and Regions and Food and fibre industry stakeholder co-funding via a government voucher the Internet of Things for the farmers to procure agtech solutions to improve their productivity. Digital agriculture in Australia is in an Data exchange platforms are immature state in many parts including This trial program kicks off in 2019 and on the horizon strategy, culture, governance, presents an opportunity for Maffra technology, data, analytics and dairy farmers and processors to Connectivity will make farming life training. This is to the detriment of participate in a technology enablement simpler and more efficient. Existing innovation and producer adoption of trial. One of the intended outcomes is mobile networks have started our digital agriculture in Australia75. to provide improved connectivity and journey and new technologies such associated community benefits for as low-power-optimisation LTE regional citizens. It will be important Cat-M1 and NB-IoT, the upcoming for Gippsland’s food and fibre industry 5G mobile network, and near orbit to support and monitor the findings. satellite technologies will continue this evolution74 .

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Technology and Discussion of the interaction of The ability to assess pain points connectivity options social research and digital agriculture in the region’s supply chains and is also insightful, highlighting innovation ecosystem is critical that the adoption of technology to prioritising the research and 25 percent of producers need not always be an individual innovation community into the surveyed in a 2017 study question, with producers able to addressable issues worth solving. explore collaborative structures to identified limited adoption of use and invest in technology such As noted earlier, one of the on-farm telecommunication as cooperative structures, shared fundamental challenges is assessing the full value chain economic infrastructure that would data, and even renting of equipment contribution that Gippsland makes 78 dependent on variable climatic facilitate use of IoT . conditions and land ownership84. to the food and fibre industry. In part this is because data is captured There are a range of network manually, and in annual surveys technologies that provide low-cost We can utilise technology focused on outdated ANZSIC value propositions for farmers codes and commodities, and not including LPWANs (Low Power to de-risk investment at the detailed value added goods Wide Area Networks), LoRaWan, in our businesses, or services level needed to truly NB-IoT and Taggle. Consideration providing accurate and appreciate the health and contribution has been given to wireless network of the sector. 6LoWPAN, Low Earth Orbit (LEO) transparent data.” satellite technology, and the use Food and fibre industry stakeholder To strive for growth and inspire of linear access layer networks79. capital and talent to flow into the The implementation of these businesses and research facilities solutions can fast-track adoption within Gippsland will require regular, of the technology to harness Gippsland Food & reliable and useful productivity data latent productivity. Fibre Central to be collected.

To aid in the uptake of innovative A key enabler to Gippsland’s food solutions, funding grants exist and fibre industry is a coordinated to accelerate adoption of new facilitation of food and fibre meta technologies, improve productivity, data, to both enable data and and increase innovation. For example, analytics for innovation and enable the Horticulture Innovation Fund the accurate assessment of regional (R&D grants up to $50,000)80 economic growth and innovation and a $2.5 million investment progress. Food & Fibre Central could by the Victorian Government in represent the region’s food and fibre agtech innovation81. While it is industry participants to establish critically important to invest in the the data exchange protocols, future, it is also incumbent upon infrastructure and knowledge research, industry and government partnerships, as well as monitor the organisations to identify technology adoption and benefits of a Gippsland that can be used now for immediate food and fibre data exchange. productivity gains82. Creating a virtually connected Mandating adoption of technologies food and fibre industry, similar to that are proven to provide sustainable Foodvalley NL, requires a base increases in production has been communication protocol, and raised in New Zealand. Ideas such data interoperability and privacy as this may work in conjunction arrangements in order for data with tax incentives (such as and goods to flow with confidence accelerated depreciation) to fast track through the value chain. technology uptake83.

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Licensed LPWAN:

NB-IoT and CAT M1 NB-IoT On-Farm Connectivity Solutions — Australia Nano satellites Picking the right technology for your farm There is no one size ﬁts all. The context of deployment (including location, business requirements and use cases) will dictate which communication network(s) is most ﬁt for purpose. What does it all mean and who are some of the providers? Unlicensed LPWAN: Low Power Wide Area Networks (LPWAN)

a) Unlicensed LoRaWAN / Satellite LoRaWAN

LoRaWAN: “Deploy your own network” model. Multiple providers in Australia. Low upfront costs for hardware installation and no subscription costs for public connection. Can transmit small data packets 20km+ (depending on topography). Very long battery life (5-10 years+). Proven effectiveness in agriculture.

Sigfox: Can use existing infrastructure if in range, or can deploy your own gateway. Can transmit small data packets up to 20km+ (depending on topography). Subscription model with monthly Sigfox payment per device. Very long battery life (5-10 years+). Focus is cities and utilities but can service agricultural use cases as well.

b) Licensed

NB-IoT and Cat M1: Use existing Telco infrastructure, so no installation costs if inside network range. Can transmit small data packets 20km+. Subscription fees are modest, but relatively few case studies at this point in time due to recent deployment of networks. Cat M1 is better suited to Key: sensors that are moving (wearables), NB-IoT is better suited to most agricultural use cases sending smaller IoT Speciﬁc Voice and Video packets of data, more infrequently.

Nanosatellites Wireless Mesh / On Farm WiFi Provide connectivity for IoT sensors from any Provides farmers with internet coverage across their location without the need for local infrastructure. properties and helps eliminate black spots using Particularly viable solution in remote locations and for repeaters to extend an existing connection (whether Wireless Mesh / On Farm WiFi intermittent data transfer use cases. Additionally, the this exists on their property or somewhere nearby). newly emerging LoRaWAN/Satellite hybrid solution The primary use cases for this connectivity type in combines the beneﬁts of LoRaWAN with backhaul this context is voice over WiFi and video (e.g. for capability via satellite. Technology is new and with surveillance or facial recognition). Whilst it is limited case studies – but lots of promise. possible to use wireless mesh for IoT use cases, it NB: Sample selection of Australian is not generally practical due to its power market players only. consumption impacting sensor battery life and its Not intended to be comprehensive. lower range, as compared to LPWANs. Developed October 2018.

Licensed LPWAN:

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Sustainable energy, land use and water

Energy, water and land use are three elements which play an integral role in sustainable growth.

Growth of the food and fibre sector in Gippsland needs to be sustainable with reliable access to energy, water and land. Ongoing water access has the potential to limit the region’s ability to grow and prosper. As climate change and other factors begin to change the environment and introduce further volatility, reliable and consistent access to water will be vital in ongoing growth of the region’s food and fibre sector.

Access to energy and efficient energy use is an issue highlighted by a number of stakeholders. The ability to ‘close the loop’ through introduction of a number of circular economy principles and initiatives will change the way waste and energy are viewed and used. Industry’s commitment to embrace energy innovation, drive sustainable growth, and overcome water and energy 5challenges will significantly contribute to the region’s brand.

What does this mean The importance of climate for Gippsland? change in Gippsland Some business opportunities are lost for the region. Some • Embracing innovation in energy and Climate change brings negative companies for example water use and enticing sustainable consequences for water resources practices to drive the region’s food in Gippsland. have to outsource packaging and fibre industry. activities due to low access These include demand for irrigation, to water.” • Development of water use increased strain in the lower parts strategies and understanding how of major rivers such as the Mitchell, Food and fibre industry stakeholder collaboration of water use can decreased quality of water in the maximise available water. lakes, reduced flows to wetlands, and subsequently, increased salinity. The RMIT FACRC Report states • Application of circular economy that agriculture in the Latrobe Valley practices and promotion of Climate change also influences the region has reached its capacity of collaboration between sectors that rate of evaporation and allocation of what can be produced with the can cross-benefit from ‘closing water resources which leads to loss water available89. About 92 percent the loop’. of wetlands, decrease in forestry, of the water extracted for towns, change in aquatic plant community industry and agriculture in Gippsland • Development of energy trading structure, decline in biodiversity and is sourced from waterways, with models similar to water licence introduction of exotic species85. the rest drawn from groundwater and water use trading may and a very small proportion assist in developing sustainable By 2040, climate change will have a drawn from alternative sources energy practices. significant effect on the agriculture such as stormwater and recycled and forestry sector in Gippsland86. waste90. One of the fundamental • Local government must encourage A 2013 report by the former decisions that is to be made by the productive land and water use with Department of Primary Industries management of Gippsland’s water a planning use that allows farming indicated that shorter winters, longer resources was how much water is and food industry activities. summers, and decreased winter/ shared between different users in summer rainfall is likely to occur 91 • Future livestock water systems the community . in Victoria. The report also stated must address possible warmer increased frequency and magnitude Stakeholders interviewed identified climate and variability in rainfall to of extreme weather events. If an opportunity to utilise surplus support livestock needs. Gippsland farmers are able to adapt water previously allocated to power and increase productivity, Gippsland generation and related businesses. Assessing water and energy farmers may in fact benefit from the This is a key consideration for challenges of climate change. State Government policy and water requirements and ensuring authorities as the water from power access for all The challenges presented by climate stations becomes available to use for change require the need to change farming and food industry. The discussion of an aspirational systems in Gippsland. On behalf growth rate for Gippsland’s food of the Victorian Government, the and fibre sector requires detailed CSIRO has made some suggestions Uncertainty of energy supply consideration of water and energy in order to combat climate change87. and price range is still a requirements. To enable such The suggestions include change in consideration, a detailed assessment the management of soil to retain concern for businesses in of the optimal use of land by sector carbon and water, flexible grazing remote areas. It’s challenging (e.g. dairy, beef, horticulture, techniques, shelter for stock to run a business with aquaculture and others) and specific during periods of extreme heat, confidence.” products (e.g. raw or value added increasing water storage on farms, requiring further processing) will and change in the variety of crops Food and fibre industry stakeholder determine the quantity and source of to conserve biodiversity. Further water and energy required. This will suggestions by West Gippsland allow for a prioritisation of the actions Catchment Management Authority and investment required to achieve include targeted education and the aspirational growth target by 2025, awareness programs that promote including a focus on renewable and understanding of climate change and sustainable water and energy sources. its impacts and trends88.

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There are examples of concerted efforts to maximise water use, with Gippsland Water’s Agribusiness (GWA) division utilising treated water on agricultural assets it owns in central Gippsland. GWA properties utilise recycled water for the irrigation of pastures, fodder, winter and summer crops, for cattle breeding and finishing, dry land cropping and soft wood forestry92.

Supply of treated and potable water Macalister Irrigation Gippsland Water’s will underpin growth of existing farms District beneficial reuse of and industries in the region and can also influence new companies and treated wastewater The Macalister Irrigation District factories to consider Gippsland as a 95 (MID) is the largest irrigation and biosolids viable option to settle and step up district in Southern Victoria, their operations. Gippsland Water reuses situated around Maffra in central 21.23 percent (2,168ML) of Gippsland with 61 percent of Making the most of the existing the total wastewater that is the 54,753 ha total area of regional water assets is another key available for reuse purposes. the district under irrigation93. challenge to overcome to ensure Nine out of the 10 wastewater The MID sources its water these are being used at optimal treatment plants with resuse from the Macalister River, level for Gippsland’s food and fibre arrangements with Gippsland via Lake Glenmaggie, and industry to produce more food Water’s Agribusiness arm or third from the Thomson River, via and drive a more efficient supply party agreements are reusing Cowwarr Weir94. of energy. 100 percent of treated water The MID 2030 strategy plans produced, largely in irrigation. to upgrade and improve the We need to think about Biosolids produced by water and infrastructure to transform the being better at reusing water wastewater treatment are reused efficiency, service levels and at the Soil and Organic Recycling especially at larger firms.” environmental impact of the Facility to produce compost used Macalister Irrigation District. Food and fibre industry stakeholder on pastures and crops and for Among other outcomes, the supply to external customers. project works will enable to save water due to evaporation. Gippsland’s food and fibre industry The level of waste water can look to the progressive economy recycling is about a quarter However, with the expected of Israel, where limited natural of what Israel achieves (circa growth in the food and fibre resources combined with political 80 percent), and is an area for sector, combined with climate and geographical circumstances focus in Gippsland as water change challenge, additional necessitated a strong lead in scarcity increases. water infrastructure planning is innovation. 80 percent of Israel’s required to support a sustainable horticulture exports come from the food and fibre industry desert where only two millimetres of in Gippsland. rain fall each year96.

Driving a more efficient One such application of ‘closing use of energy to support a the loop’ of product lifecycles is CASE STUDY: Recycling Aquaculture Systems Regional advanced agrifood sustainable growth (RAS), land-based fish farming102. innovation precinct RAS builds on the reuse of refreshed The AATLIS (Australian AgriFood A circular economy fundamentally and purified water. Sludge can be Technology Logistics Innovation involves turning waste streams into utilised in energy from waste plants, Solutions) precinct is being built in new sources of energy or revenue, energy utilisation can take place Toowoomba Queensland. AATLIS will enabled by a collaborative ethos of on-site, and nutrients from effluents foster a collaborative and creative all parties involved. Having a circular culture across co-located businesses, can be used as fertiliser or inputs economy reduces environmental transforming food production, to hydroponics103. The potential to impact, allows for better profitability, manufacturing and value-adding use effluent nutrients to produce and increases capacity to sustainable industries and unlocking value for the key parts of fish feed is also driving water and energy access. This model Toowoomba region and Australia. opportunities for ‘closing the loop’ anticipates and designs for resources and developing a circular economy The 761 hectare precinct incorporates to be either safely returned to nature, system104. As highlighted in capability an integrated community comprising or back into systems where they can four sub-precincts and optimising the platform 3, using vegetable waste be reused or renewed97. circular economy model to convert to turn it into processed powder is a waste to value. It is: Internationally there is a drive demonstration of how the high water towards circular economies, and content of these vegetables provides • An integrated agricultural and food manufacturing community a particular focus on ‘closing the an opportunity to treat and repurpose enabling agricultural commodities loop’ through recycling and reuse. water for other uses, such as irrigation or for harvesting as bottled to be efficiently converted into high The Netherlands has a significant value food products for a global drinking water. focus on promoting circular consumer. economies, where “Who can turn my waste into value?” is a commonly • A low cost energy solution through asked question98. Some of our industries have the development of on-site solar waste products that can be and gas energy generation. A dedicated sub-precinct will be In Noord, Holland, Microsoft has used by others to be turned established a large new data centre, the energy engine delivering operational cost advantages at AgriPort A7 Business Park, where into value-added products. for tenants. Microsoft’s computer servers However current planning produce heat and carbon dioxide, code needs to keep up with • Curated and facilitated innovation and collaboration, focused on both of which are received by the the technology. Coordination 450 hectares of nearby glasshouses leveraging global and domestic growing capsicums, cucumbers is also key to ensuring that opportunities to create and and tomatoes99. other bodies are aware of adopt new technologies and solutions to increase productivity what is available around to The European Commission adopted and profitability. be used.” an action plan back in 2015, aimed • A practical learning environment at accelerating Europe’s transition for developing the talent and Food and fibre industry stakeholder toward a circular economy and capabilities needed for the jobs of promoting sustainable economic the future in agriculture and food. growth100. The action plan sets out 54 measures to ‘close the loop’ of product lifestyles including a market for secondary raw materials101.

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For the Gippsland region, the Soliculture develops and to invest in growing manufacturing application of a circular economy commercialises transparent solar capacity. Farmers and processors is about driving more efficient use panels105. These panels contain a low indicated that they want more of raw materials, infrastructure and density of silicon photovoltaic strips certainty over pricing and quality of land. It is thinking more about how arranged on a panel of glass, allowing supply of energy. to turn what one organisation sees light to transmit through the strips. as waste in its processes into a The panels convert green light to red For example, power brown outs valuable input for another, which will light, enhancing power production over 0.5 of a second in modern milk in turn help improve profitability and and plant growth. plants will close down a drier; which reduce the environmental impact of is why a power supply company with production methods. Additionally, one of the greatest a view that a brown out occurs when benefits of adopting solar panels power is interrupted for 2.0 or more Agtech supports the application to greenhouses is the cost benefit. seconds causes frustrations for some of inputs and production of food The use of solar panels to generate Gippsland dairy producers. Exploring and fibre and can enable increased electricity significantly lowers the efficient onsite energy production by production. With energy expended cost of powering a greenhouse106. farmers and processors will be a key throughout these phases (and beyond contributor to Gippsland’s regional in the value chain to the consumer) For a region famous for its energy economic growth. it is important to use innovative generation, Gippsland is now facing methods to keep costs down critical energy supply uncertainty and support agriculture’s license that is impeding the confidence of to operate. some food and fibre industry leaders

The food and fibre industry may want to consider how to fall within a number of actions listed by the NFF in its roadmap for Australian agriculture, including but not limited to107:

illar 2 illar 3 Unlocking innovation Growing sustainably 3.3.1. ak poliy reform for the eletriity and 2.1.3. Support the introdution of green loan transport setors. ommerial bank produts whih reward sustainable praties. 3.3.2. Support transition to renewable and deentralised energy soures, inluding piloting 2.3.1. Implement water reform poliy that is offgrid renewable energy preints based on sustainable, produtive and profitable. egional Agriulture eals.

3.3.3. Invest in researh to ommerialise new energy rop varieties and waste to energy opportunities.

Land use Getting inspired from CASE STUDY: better practices For Gippsland’s region, one of the Peer to peer energy trading for dairy farmers key planning and social licence The Clean Energy Finance challenges to resolve in terms of Corporation (CEFC) is focusing A study funded by the Australian Renewable Energy Agency (ARENA) land use is the tension between on investment in agriculture by could lead to Latrobe Valley dairy uses of high quality farming land for committing $100 million to the farming versus urban sprawl due farmers having the ability to buy and agricultural platform of Macquarie sell locally generated renewable to its proximity with Melbourne. Infrastructure and Real Assets energy using blockchain. Gippsland’s regional growth plan (MIRA)109. CEFC is establishing a also recommends to “ensure rural specialist energy, emissions and ARENA has provided a $370,000 housing and subdivision is for an efficiency advisory committee to grant towards a $775,000 feasibility project looking into a virtual microgrid agricultural or forestry purpose, and support new standards for on-farm or online marketplace, allowing critically assess other proposals for energy efficiency and emissions non-agricultural uses within the areas participants to buy and sell renewable reduction. Of relevance to Gippsland, energy within the localised area111. of strategic significance (agriculture CEFC is encouraging the use of and forestry) for their comparative solar power irrigation pumps and This project will be led by LO3 economic, social and environmental conversion of biomass waste to Energy, a company based in 108 benefits” as part of the strategy for energy. Some examples of clean Brooklyn, NY, and will include up to 200 dairy farms, 150 homes and 20 future land use. energy initiatives relative to industry industrial consumers participating in are shown below110: Other challenges include an this innovative project. The feasibility study is predicted to be completed by increasing number of lifestyle farms Beef that could be a threat for the sector’s the end of 2018 and if successful, a JBS Australia, the country’s largest pilot microgrid could be rolled out in ability to grow, as well as identifying meat processor is capturing and Gippsland in 2019112. strategic locations to develop using biogas at its Dinmore, more intensive farming production Dairy farmers typically utilise the QLD facility. (e.g. feedlot operations or poultry most energy in the morning and afternoon during milk production. This production) which need to be in JBS installed a biogas and water keeping with local communities. project will allow farmers to sell the treatment plant that has reduced excess electricity being generated carbon emissions by 89 percent and Gippsland might be willing to explore by solar panels after midday back to is saving more than $1 million a year new methods of farming, looking at the grid. on natural gas costs. the ability to cluster lifestyle farms Dairy farmers, businesses and and collaborate to maximise the Biogas generated is used in the residents in Gippsland are being output, instil productive, sustainable natural-gas fired boiler plant to encouraged to partake in an energy farming practices, and work with local produce steam and hot water to trading scheme similar to this, government to provide long-term meet the site’s demand for sanitation allowing farmers more control over their energy consumption and planning for urban development, and sterilisation. sensitive to both urban spread and distribution whilst simultaneously, saving money. food and fibre production. Horticulture Victorian business Nightingale Bros The encroachment of Pty Ltd has upgraded its refrigeration to cut energy costs by just under Melbourne will impact land 40 percent. values and access to water. The food and fibre industry The apple and chestnut grower replaced its old system with an needs to be prepared ammonia water cooled central plant. for this.” As refrigeration can be responsible Food and fibre industry stakeholder for up to 85 percent of total energy consumption in cold storage businesses, identifying alternative means of cooling can be very lucrative.

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Attracting and cultivating talent and leadership for the industry

Talent and leadership are key elements in achieving both growth and success for the food and fibre industry in Gippsland. Attracting, cultivating and retaining talent should be a key focus for the region by providing attractive career pathways and demonstrating the passion and vitality of the industry.

Leadership development is also key – and should be a twofold approach. Firstly, individual leadership opportunities will assist in talent attraction and retention, while industry leadership will ensure that a clear vision is articulated and acted upon to the 6ultimate benefit of the industry.

What does this mean developed a yoghurt with added to the food and fibre value chain, for Gippsland? folate for pregnant women. The idea or new learning for the existing was taken to the Murray Goulburn labour force, i.e. technology or new • Development of leadership office in Melbourne and presented to industry developments. programs is important to up- the board. skill existing talent and enable The Gippsland Hi-Tech Precinct will leadership opportunities. The Gippsland region could draw be co-located and integrated with inspiration from these examples the Gippsland Tech School, linking • Industry leadership is important and focus on promotion of job students directly with the local to unite stakeholders behind a opportunities and career pathways. industry and skills119. This will provide regional, industry-wide goal to drive The sector needs to present an clear pathways for students through continued growth for the sector. attractive pathway to students, but to vocational training and tertiary also to parents, teachers, and any and research120. • Defining KPIs and outcomes will person interacting with students provide a measurement of industry as they are the best people to The backlash from the recent decision success and a framework to guide recommend a pathway and promote to close two agricultural colleges leadership principles. the positive impact of a career in food in Queensland, Longreach Pastoral and fibre. College and Emerald Agricultural College, highlights the importance of Talent development and In November 2012, the Parliament regional education within the sector. career path: attract, train and of Victoria Education and Training Developing pathways and easily retain skilled people in our Committee submitted an extensive accessible opportunities in regional report, the Inquiry into agricultural communities can be the difference communities education and training in Victoria117. It between losing and attracting highlights strengths and opportunities talent. Development of programs In 2016, 24 percent of employees in presented to individuals who seek such as apprenticeships and other Australian agricultural sector were education and careers in agriculture. similar pathways within the industry under 35 years of age, compared to One focus point incorporated will provide practical alternatives 21 percent in 2011113. 30 percent of recommendations on “attracting to university. young agricultural employees were people to agricultural careers and women in 2016, compared to 28 agricultural education and training”, i.e. percent in 2011114. But this interest a promotional campaign to improve We need more apprentices is not enough, and development of the image of agriculture, developing in agriculture.” talent should be a focus. an agricultural careers awareness Food and fibre industry stakeholder Attracting talented people program for Victorian school students, developing an online careers hub, The need to highlight job opportunities developing career pathways and Retaining skilled people and career pathways in the industry supporting workforce development for was commonly mentioned by the the sector. International and interstate stakeholders interviewed. opportunities can lure talented people The Government responded by elsewhere. Gippsland is willing to The dairy industry is an example acknowledging the importance of position itself as the region of choice of a focused approach to attracting agriculture in Victoria as it “is integral for a career in food and fibre. The passionate new talent. The industry to our economy”118. More than three region could focus on investment in created Cows Create Careers – a quarters of the 45 recommendations the latest capabilities in technology farm module which involves dairy made were supported by the and connectivity to create excitement farmers and industry advocates and Government in full, in principle or in and industry leading developments. is delivered to over 9,000 secondary part, e.g. the Government launched 115 school students each year . The the Grow Your Food and Fibre Succession planning and creating module promotes education and Future website which showcases pathways for the younger generations careers in the dairy industry. Sale opportunities for young people who to enter and begin to lead the industry College in Macalister has developed are seeking a career in agriculture. are also key considerations. The the Broadening Horizons Program ability to nurture a future leader to which is centred around real life Training people perform on a regional, national and problems that businesses face, and Development of training facilities and international scale should be a focus. developing strategies to assist in pathways will assist in up-skilling the resolving them116. Students from sector, whether it be new entrants the Broadening Horizons Program

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Establishing, co-ordinating enable career paths to be developed There will be competition and developing leadership in from school to the industry through apprenticeships, internships and for the best talents, so the industry Gippsland needs to create an co‑operative programs. environment and supportive Good leaders have the ability A key initiative is the creation of to envision the future, devise ecosystem that can attract an Emerging Food & Fibre Leaders strategies to deliver that future, and Alumni. This will create a proactive 121 new entrepreneurial talent communicate with passion . alumni of emerging entrepreneurial from other industries or leaders across the Gippsland Establishing industry leadership is a agribusiness value chain that are other countries coming to two tiered approach for the Gippsland connected, trusted and valued to the region.” region. The first is a top down provide insight on current issues. It structure enabling a single entity to will focus on leaders that have the Food and fibre industry stakeholder coordinate stakeholders, gain access passion and networks to mobilise to funding, promote the sector and projects that have real world benefits. the brand, initiative projects, and The program will commence in the CASE STUDY: find resources. third quarter of 2019 and aim to Gippsland Community Leadership Program The amalgamation of Agribusiness fast track young people to lead the industry in 3 to 4 years’ time. Gippsland Community Leadership Gippsland and the East Gippsland Food Cluster is a key initiative to Program (GCLP), established in 1996, The new entity resulting from the enabling this. The Boards have is one of Australia’s longest running amalgamation will have two roles regional community leadership worked hard to evaluate the potential to play: programs. GCLP is a unique platform for an amalgamation and creation for the development and growth of of a single entity to consolidate and 1. Act as the regional food and fibre existing and emerging leaders within build a stronger voice for food and body, driving the vision and related the Gippsland region, enhancing fibre in the Gippsland region and actions; and participant’s leadership skillsets at their recent AGMs (December and enabling them to return to their 2. Inspire leaders across the industry 2018) each entity confirmed the regional community as better leaders. to own different initiatives and help recommendation to amalgamate. The create the leaders of tomorrow. Participants attend approximately interim board was established and at 25 program days – all based on the time of writing awaits approval The Gippsland region must continue visits to parts of Gippsland, such as from Consumer Affairs Vic to formally dairy farms, dairy processing plants, to learn from other industry bodies create Food & Fibre Gippsland as and initiatives and apply key horticulture farms, fisheries, power an incorporated association under generation, the MID. insights to develop its own industry Victorian legislation. With assistance leadership model. GCLP seeks to promote growth from Regional Partnerships, the in the social, environmental and transition to a new entity has economic future of Gippsland. commenced. It is anticipated that It develops emerging leaders by Food & Fibre Gippsland will be creating a better understanding of operational early in 2019122. the issues affecting Gippsland. It influences the future direction of the The second is a bottom up approach, region through the exchange of ideas where the merged entity has to and fostering networks. play a role in creating the leaders Over the past 23 years GCLP of tomorrow, and developing an has a graduate base of over 570 ecosystem through which projects community leaders, including such as alumni networks, mentoring Chairman of Ambulance Victoria and programs, and the transfer of former Victoria Police Commissioner know-how from one generation Ken Lay APM, Senator Bridget to another can thrive. This should McKenzie. In 2019 the program has two Agriculture Victoria funded places for Women in Agriculture & Biosecurity in Agriculture.

VIEW THE CASE STUDY

CASE STUDY: Dairy leadership, an industry blueprint In 2009 Dairy Australia identified the need for an industry-wide plan to increase the efficiency and effectiveness of investments from key stakeholders123. From here came a blueprint guide to leadership development across the dairy industry value chain. The rationale was the desire to develop future leadership capacity to influence public policy, and manage collective investments across the value chain.

The blueprint highlights the importance of collaboration to achieve the industry’s vision. It outlines the need for a formalised plan to increase the chances of better outcomes as efforts will be streamlined and more efficient. It is easier for participants to tap into opportunities with a clearer and more transparent path, joint resources can be allocated, and better stewardship and coordination maximises the chance of attracting and retaining good candidates.

There could be a greater level of consolidation of regional priorities and focusing on those activities will give us the greatest return rather than dispersing money, effort, time and resources.”

Food and fibre industry stakeholder

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Be connected, respected Measurement of achievements and and valued for insights outcomes of the following KPIs CASE STUDY: will inform successful leadership in Leadership initiatives launched on emerging issues and the region: by the NFF proactively deploying The NFF is paving the way for projects that respond with 1. Community access to women in leadership in agriculture. leadership positions real world outcomes. President Fiona Simson has been a 2. Women in leadership within strong advocate for the role women The ability to drive high performing the industry play from paddock to plate. The NFF cultures almost always requires strives to recognise women through certain key characteristics of good 3. Collaboration within industry a number of initiatives including the leadership, i.e. the ability to unite Rural Women’s Award, Empowering people around a vision. 4. Establishment of an Ugandan Women in agriculture, alumni network International Rural Women’s Day and Leadership is also demonstrated various other avenues which pledge by results. The ability to enable 5. Passion within the food and to fix gender balance. fibre industry and monitor results will ensure the The NFF led Diversity in Agriculture industry is moving toward its targets. 6. Mentoring programs developed. Leadership Program (DiALP) gives aspiring female leaders the The first approach to measuring Establishing industry leadership chance to take part in a one-on-one leadership success is the analysis mentoring program126. of action against defined strategy is critical to providing a pathway and vision. The Australian Dairy for an industry vision; a group to In conjunction with the Australian Industry Council Inc.’s (ADIC) industry champion the values and goals set. Rural Leadership Foundation, the NFF has also invested in the NFF leadership blueprint is a key example But it cannot happen without industry collaboration. 2030 Leaders Program, following the of setting desired outcomes of a release of Talking 2030. The program strategy to be measured against. The NFF touches on the importance is designed to foster the leadership The blueprint set out four key of collaboration in achieving the skills of farmers and others across outcomes, but also acknowledged vision of their 2030 Roadmap thanks the agriculture supply chain. Eight that leadership is required in all to a stepped approach and a strong participants from around Australia 124 were selected to take part127. They multi-person dairy businesses . engagement with stakeholders. Thus it outlined a three-tiered developed an exciting initiative, The same considerations apply to #ThisIsAusAg, which represents the approach to defining leadership, the Gippsland region’s broader food the skills required, and existing diverse elements that contribute to and fibre sector. Collaboration of Australian agriculture, and aims to opportunities across the dairy value key stakeholders, common vision of assist with the NFF’s ambition to chain at a district/regional, state and the journey, alignment of agendas grow Australian agriculture to a $100 125 national level . towards a common growth target, billion industry by 2030128. and industry leadership are key enablers for the region to thrive.

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Taking action: next steps for growth Food & Fibre Gippsland Inc, the entity formed by the amalgamation of AGI and EGFC is the next step in the growth of the region.

Food & Fibre Gippsland Inc. will continue to work closely with the Gippsland Regional Partnership and the Food and Fibre Working Group.

Through the support of Regional Partnerships, Food & Fibre Gippsland will develop a co-designed workshop, to engage with industry stakeholders to turn the capability platforms addressed in this paper into a detailed plan and actions including addressing the innovation ecosystem within the region.

We look forward to working with the stakeholders from all sectors, from artisans to small-to-medium enterprises and multinationals, as we all have a contribution to make to our future growth and success in the Gippsland region.

March 2019

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Contributors and acknowledgments

On behalf of Agribusiness Gippsland and KPMG, we wish to thank the stakeholders of Gippsland’s food and fibre industry who accepted to take part of this discussion paper for their insightful contribution and passion to position the sector as a key economic engine in the region.

Contributing stakeholders, by alphabetical order:

Dr Danielle Auldist, Lecturer, School of Health and Life Sciences, Federation University

Andrew Bulmer, Managing Director, Bulmer Farms

Mark Coleman, Business Development Officer, Wellington Shire Council

Grant Crothers, Chief Executive Office and Managing Director, Burra Foods

Paul Ford, Chair, Gippsland Regional Partnership Food & Fibre Working Group

Kate Gunn, Coordinator Agribusiness, Promotions and Strategy, Wellington Shire Council

Geoff Hay, Senior Business Development Officer, Wellington Shire Council

Alison Leighton, Chief Executive Officer, Baw Baw Shire Council, Member of Food and Fibre Working Group of Gippsland Regional Partnership

Hamish McAlpin, Regional Manager Southern Victoria & Tasmania, Rabobank

Tim McAuliffe, Manager of Investment and Trade, Regional Development Victoria

Lachlan McKinnon, Director, Aust Asia Seafood Pty Ltd

Meg Parkinson, Chair, Victorian Farmers Federation Workplace Relations Committee

Steve Parkinson, General Manager Bio Manufacturing, Australian Paper Mill

Dr Christine Pitt, Chief Executive Officer, Food Futures Company

Stuart Quigley, Chair, Agribusiness Gippsland

Dr Julie Simons, Director of Rural Development and Transition Policy, DJPR

Tim Tamlin, Chief Executive Officer, South Gippsland Shire Council

Grant Williams, Chair, GippsDairy

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Food & Fibre Gippsland KPMG www.foodandfibregippsland.com.au Ben van Delden Stuart Quigley Partner Co Deputy Chair Head of AgriFood Tech [email protected] [email protected] +61 419 773 007 +61 3 9288 5894

Andrew Bulmer Marie-Claire Renault Co Deputy Chair Manager +61 03 5157 1709 Food and Agribusiness [email protected] [email protected] +61 3 9838 4350

Other KPMG contributors Gippsland Regional Partnership Lucy Gubbins Maree McPherson Food and Agribusiness Chair Gippsland Regional Partnership Troy Nixon [email protected] Food and Agribusiness +61 3 5173 6854

Gippsland Regional Partnership Food & Fibre Working Group

Paul Ford Chair [email protected] +61 412 519 850

KPMG.com.au

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