Accelerating Growth for the Gippsland Food and Fibre Industry
Total Page：16
File Type：pdf, Size：1020Kb
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. © 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 5 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