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Limestone Coast Potato Industry Snapshot

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Limestone Coast Potato Industry Snapshot POTATO INDUSTRY LIMESTONE COAST CONTENTS Introduction 1 Economic Contribution 4 Industry Trends 7 Industry Advantages 12 Industry Challenges 13 Further information 15 References 16 DOCUMENT DETAILS Owner Regional Development Australia Limestone Coast Author Jayne Miller Version 1.0 Creation 2015 Review 2016 This report is a snapshot of the South Australian potato industry at a regional, state and national level, complied from numerous data sources. Information in this report is intended for general information only, and does not constitute professional advice, and should not be relied upon as such. Readers should make their own inquiries and seek independent professional advice before acting on, or relying on the information provided. Potato Industry - Limestone Coast Region INTRODUCTION The Limestone Coast Region covers an area of 21,330 square kilometres or 2.2 per cent of South Australia’s land mass. It is a region home to a diverse agricultural industry including: › Beef › Sheep › Dairy › Wool › Seed › Cropping › Viticulture › Aquaculture › Horticulture The region has a well-balanced climate, fertile soils and the volume of underground water accessible, which in many areas is the only source of water for irrigation, industry, stock and domestic use1. It contributes $2.681million (06/07) per annum to the state’s economy or 3.9 per cent to the gross state Potatoes are a key horticultural In the Limestone Coast Region, product2. crop grown in the region. They potato farms are concentrated are a cool season vegetable, in the Upper Limestone Coast Local Government Areas which require a mild, frost- and Mallee and the Lower › District Council of Grant free growing season with Limestone Coast. Fresh or › Naracoorte Lucindale regular rainfall or irrigation3. ware potatoes are generally Council South Australia is the largest produced in the Upper › District Council of Robe producer of potatoes in the Limestone Coast and Mallee › City of Mount Gambier nation, with a value of $206M and processing potatoes equating to 385,000 tonnes are produced in the Lower › Kingston District Council annually. The Limestone Coast Limestone Coast. › Tatiara District Council produces 45% of the state’s › Wattle Range Council potatoes. 1 PIRSA. Limestone Coast Region - Development Potential for Agriculture, Forestry and Premium Food and Wine from our clean environment 2 www.pir.sa.gov.au 3 Department of Primary Industries NSW. Prime fact 912. 1 INTRODUCTION cont. Growing Regions in South Australia Across the state, 11,900 hectares are under potato production, and the average yield is 39.5 tonnes per hectare. This yield does vary across regions, and in the Lower Limestone Coast the average yield is 50-60 tonnes per hectare, however the Mallee region produces 40-42 tonnes per hectare4. Source: Potatoes SA Strategic Plan 2014-2017 Land area estimates (ha) for potatoes in each LGA Product Grant Kingston Mount N’coorte/ Robe Tatiara Wattle Total Gambier Kingston Range Study Area Potatoes ha 77,429 51,589 1,992 165,260 19,478 279,829 134,010 729,596 % 40.88 15.46 58.81 36.60 17.86 42.92 34.17 34.23 Source: PIRSA. Limestone Coast Region - Development Potential for Agriculture, Forestry and Premium Food and Wine from our clean environment. 4 Potatoes South Australia. Strategic Plan November 2014. Potato Industry - Limestone Coast Region Harvest Times in South Australia SUMMER AUTUMN WINTER SPRING District Region DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV Adelaide Hills Woodside, £ £ £ Mt Barker Lake Langhorne £ £ £ £ £ £ £ Alexandrina Creek Adelaide Plains Virginia, £ £ £ £ £ £ £ Angle Vale Lower South Mt Gambier, £ £ £ East Penola Upper South Pinnaroo, East & Mallee Lameroo, £ £ £ £ £ £ £ £ Bordertown Port Pirie Port Pirie £ £ £ £ £ Lower Murray Murray Bridge £ £ £ £ £ Upper Murray Waikerie, £ £ £ £ £ £ £ Loxton Source: Potatoes SA Strategic Plan 2014-2017 Prescribed Well Area Groundwater used per crop type for the prescribed well area in the Lower Limestone Pasture, 61% Coast (2008/09) shows that pasture is the dominant Lucerne Pasture 13% irrigated crop, accounting / Hay, for 61 per cent of the total Potatoes, 8% licensed volume of water Vines, 7% extracted for irrigation. This is followed by Lucerne (13 per Lucerne Seed, 4% cent), and potatoes (8 per Fodder, 3% cent). Vegetables, 2% Cereals, 2% Source: PIRSA. Limestone Coast Region – Development Potential for Agriculture, Forestry and Premium Food and Wine from our clean environment. 3 ECONOMIC CONTRIBUTION The potato sector is critical to FRESH Fresh Potatoes the economy of the Limestone The fresh market is dominated Coast Region and is an $132M by seven major vertically intrinsic part of its identity. integrated companies, There are three sectors that supplying 80 per cent of fall within the potato industry: the country’s fresh washed 220,000T › Fresh product. Average production › Processing for this sector is 280,000 › Seed tonnes with a farm gate value of $132,000,0005. The main growing regions are the Riverland, Mallee and Northern Tonnage Farmgate Adelaide Plains. Value PROCESSING The processing sector There is a group – South East contributes more than Potato Growers Association 100,000 tonnes annually, (SEPGA) who have formed making up 25 per cent of as the principle suppliers to total potato production6. McCain’s in the region. The main growing regions The Crisping sector accounts are the Limestone Coast and for 23% of processing, with Southern Murraylands. There approximately 98% of that is also some production in the market to Smiths Snack Food Northern Adelaide Plains. Company (PepsiCo). French Fries are processed at Around 14,000 tonnes McCain’s Foods Pty Ltd (Aust.) of crisping potatoes are in Ballarat, Victoria. The French produced annually throughout Fry sector accounts for 77% the Lower Limestone Coast7. of all processing in the region. 5 www.potatoessa.com.au 6 www.potatoessa.com.au 7 Potatoes South Australia. Strategic Plan November 2014 Potato Industry - Limestone Coast Region Lower Limestone Coast Potato Processing Industry $29.5M $4.9M 100,000T 14,000T French Fry sector Crisping Sector SEED South Australia currently located in the Riverland8. contributes 30,000 tonnes South Australian seed of certified seed potato to certification is provided by the national production, with Victorian Certified Seed Potato the main seed stock growing Authority (ViCSPA). regions being Kangaroo Island, the Mallee and Riverland and Seed Potatoes the Limestone Coast. The $6.7M seed market is growing, and the Limestone Coast Region boasts one of the largest seed stock facilities in Southern 9,000T Australia, Dowling AgriTech Pty Ltd who are supplying seed to domestic and Asian markets. Producers are well regarded in this industry and have a reputation and image Tonnage Farmgate of “pristine, clean and green”. Value South Australia also has the only active, fully accredited seed supply chain in Australia, 8 Potatoes South Australia. Strategic Plan November 2014 5 ECONOMIC CONTRIBUTION cont. Regional data from the Fruit and Vegetable Products Department of Premier and Cabinet provides an indication Gross Regional Product $12.2M 0.3% of the economic impact Gross Regional Output $51.4M 0.7% the industry has across the Total Exports $29.9M 1.1% region (2012/2013). This data Imports $5.3M 0.2% however, takes into account all vegetable crops (including Food Product Manufacturing potatoes), all vegetable manufacturing (including Gross Regional Product $14.5M 0.4% frozen potato products) and all Gross Regional Output $43.3M 0.6% food product manufacturing Total Exports $2.0M 0.1% (including potato crisps). Imports $3.1M 0.1% Vegetables Gross Regional Product $31.2M 0.9% Gross Regional Output $54.7M 0.7% Total Exports $23.2M 0.9% Imports $5.7M 0.2% Source: www.data.sa.gov.au Potato Industry - Limestone Coast Region INDUSTRY TRENDS Potatoes represent the fourth There are 1,000 potato largest food crop globally. growers in Australia9, but this number is falling nationally. NATIONAL Agriculture, Forestry and INDUSTRY Fishing has the oldest age SNAPSHOT profile of any industry, with about 59% of workers aged 45 › Annual production is years or older and only 10% $614 million aged 15-24 years. › 1.2 million tonnes produced annually Age Profile: Agriculture, Forestry & Fishing (% of industry total) › 36,400 hectares under cultivation › 20 per cent of all vegetable production › 55 per cent of 15-24 years 25-34 years 35-44 years 45-54 years 55 years + households purchase potatoes each week Source: Department of Employment – Australian Jobs 2015 › Fresh potatoes are 36 per cent of the value chain The Australian Potato Industry Potatoes are the second is behind the world in regards largest type of levied › Processing potatoes to competitiveness and by vegetable export ($24m) in are 56 per cent of the 2017 needs to be caught up to 2013/14 and has increased by value chain the pace of the global markets. 99% since 2008/09. Indonesia › Seed potato production Levy funded and effective is the largest export of represents 8 per cent of research and development potatoes with a value of $7m.11 the value chain is vital as yields need to Imports of processed potato › The industry supports a increase to 70 tonnes per product are rapidly growing national certified seed hectare rather than the current from 15,000 tonnes in 2003 potato industry average of 40, particularly to 77,000 tonnes in the six › The industry is as costs of production in months ending December 2011. dominated by ten Australia are much higher. major packing facilities Imports are affecting the which supply directly to processing potato industry, retailers and in the last 6 months of › The industry is 2011 imports reached 77,200 fragmented and tonnes compared with the uncoordinated across whole of 2010 where imports the value chain were 82,900 tonnes.10 › Export capacity and capability is unrealised › There is no national 9 AusVeg. Australian Fresh Potato Industry Strategic Investment Plan 2012-2017.
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