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Organic Horticulture: Strategic Opportunities in Western Australia

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Organic Horticulture: Strategic Opportunities in Western Australia Research Library Bulletins 4000 - Research Publications 6-2004 Organic horticulture: strategic opportunities in Western Australia Steven McCoy Follow this and additional works at: https://researchlibrary.agric.wa.gov.au/bulletins Part of the Horticulture Commons, and the Other Plant Sciences Commons Recommended Citation McCoy, S. (2004), Organic horticulture: strategic opportunities in Western Australia. Department of Primary Industries and Regional Development, Western Australia, Perth. Bulletin 4622. This bulletin is brought to you for free and open access by the Research Publications at Research Library. It has been accepted for inclusion in Bulletins 4000 - by an authorized administrator of Research Library. For more information, please contact [email protected]. BULLETIN 4622 ISSN 1448-0352 Department of Agriculture organic horticulture: strategic opportunities in western australia expanding opportunities with a sustainable direction BULLETIN 4622 ISSN 1326-415X June 2004 organic horticulture Strategic opportunities for Western Australia prepared by Steven McCoy Important disclaimer The Chief Executive Officer of the Department of Agriculture and the State of Western Australia accept no liability whatsoever by reason of negligence or otherwise arising from use or release of this information or any part of it. © State of Western Australia, 2004. organichorticulture Contents Executive summary Regional location analysis: opportunities for organic horticulture Background - Defining organic farming systems Economic relevance: potential industry scale - Industry scale estimates Expanding organic horticulture: resource constraints - Nutrient management Strategic benefits of organic horticulture - Optimising the value of waste streams Nutrient supply principles: a different approach to - Nutrient and water use efficiency – Crop type focused soil management on preferred soil type - Nitrogen - Water allocation - Integration of horticulture with livestock Soil types and nitrogen input: preferred soils - Nitrogen imports and energy balance Location of preferred soil types - Public good benefits from organic - Trade barriers Nitrogen input: available materials - Rural community and employment - System and product innovation Generalised nitrogen input budget - Resource accounting - Preferred supplier status Estimated potential area for organic horticulture - Regional estimates – potential area for organic References horticulture Crop selection advantage 2 Executive summary This report considers the potential to develop organic • greater propensity to accumulate organic matter horticulture in WA. The study examines key factors (OM); limiting industry scale and scope and identifies preferred • better accommodation of biologically driven soil soil types, regional locations, prospective crops and fertility functions; potential scale where organic production may offer • higher N fixation and biomass production capacity; comparative economic advantage. • increased capacity to store excess N. Multi billion dollar organic markets are a rapidly Locations where these preferred soil types predominate expanding sector of the food industry in affluent are mapped and include areas around the regional consumer markets notably the USA, Japan, UK and centres of Geraldton, Moora, along the Darling Scarp many EU countries. The growth in organic production from Gingin to Harvey, Donnybrook, Manjimup and is driven primarily by consumer concerns about Walpole. Kununurra and Carnarvon are also identified. conventional agricultural production methods and resultant food health and safety scares and Efficient use of limited nitrogen materials suggest environmental problems. These problems have intensive vegetable production with high demand for undermined consumer trust in the conventional farming off-farm nitrogen should predominate on the better systems and regulation of food production. loamy soil types, whereas the relatively low nitrogen demanding perennial fruit trees may be located on the Agriculture in Western Australia has yet to develop poorer sandy soil types. The implication here is that significant supply capability in order to capture a share sandy soils on the Swan Coastal Plain may be better used of this expanding organic market opportunity. for orchards than vegetables as strategy for optimising A key factor limiting the total area of organic horticulture nutrient and water use efficiency and minimising in Western Australia is provision of adequate nitrogen nutrient pollution. for productive profitable crops. The provision of nitrogen The main sources of nitrogen used in organic systems to crops in organic systems is further constrained by the according to organic principles and standards are as organic standards and certification requirement to adopt follows in order of priority: a biological approach to feeding soil and plants. This 1. Legume N fixation sophisticated indirect approach to feeding plants provides the essential mechanism for simultaneously 2. Green manure incorporation achieving the key aims of organic agriculture. 3. Composted materials/animal manure 4. Nitrogen supplements Nitrogen self-sufficiency within an organic system is generally not possible. The need for off-farm nitrogen Major source materials for nitrogen supplement supplements varies according to horticulture crop type identified are animal manures and by-products of animal and rotational system. Mixed arable/livestock processing. Compost and other sources of plant protein enterprises and perennial horticulture (orchards) have also can contribute useful quantities of nitrogen. Total lower dependence for off-farm nitrogen materials than volumes of nitrogen provided by these materials are annual horticulture (vegetables) with limited land. The estimated to be in the order of 15,000 tonnes of nitrogen integration of animal/pasture production into vegetable per annum. However, the availability of these materials rotations can reduce the demand for off-farm sources of for horticultural industry depends on price and demand nitrogen. by other buyers competing for the same material, especially by animal feed supplement users. Soil type can also influence nitrogen use efficiency and gross demand for off-farm sources of nitrogen. In general, Cost of the N component from these materials varies loamy soils are likely to be preferred initially, compared widely from a range of around $700/t of N to over to sandy soils due to: $6500/t of N – the lower cost generally being for bulky • less total N input required due to less N leaching animal manure that will require additional costs for losses and better water-holding properties; composting and transport. 3 organichorticulture The estimated gross potential area for organic The economic relevance of developing organic horticulture – based on 4500 t of N/yr (30 per cent of horticulture in Western Australia is dependent in part total N identified) – ranges from about 4100 ha for on the crops grown and the scale of industry intensive vegetables with high N requirement, to development. Initial targets for organic horticulture 90,000 ha for perennial fruit trees with low N should focus on perennial orchard crops and livestock/ requirement. vegetable rotations situated on the better loamy soil types. The potential scale for organic horticulture is most In general terms organic fruit production – based on significant in the Perth region and the Harvey SWIA conventional N levels – can potentially occupy around region. Gingin and Manjimup also have considerable five to ten times more land area than organic vegetable potential especially for orchard production, while production for the same amount of input N material. organic mango and grapefruit production at Kununurra The regional breakdown of this total area for organic could potentially cover a significant area. horticulture is difficult to estimate. Majority of nitrogen A number of economic and strategic benefits, additional materials are found around Perth and south to Bunbury. to private financial returns, indicate that investment in However, some of the high analysis materials like organic horticulture can provide flow-on value to bloodmeal and other high protein materials or conventional horticulture in terms of systems innovation, composted pelletised poultry manure, etc. may be market positioning and environmental performance. economically transported to other regions. Bulky Increased labour requirements and opportunities for materials like compost and animal manures are likely to developing high value organic products can contribute suffer prohibitive transport costs beyond their regional to economic development in regional communities, source. particularly for family farms where increasing Prospective crops for organic horticulture are determined management efficiency is possible but increasing scales using a range of selection criteria, including pest and of efficiency may be difficult. disease problems, nitrogen demand and market prospects. The following crops were identified as having potential for development. • Mango • Olives • Apples • Plums • Grapes • Citrus • Carrots • Melons Regional locations were also assessed for organic opportunities using a range of selection criteria, including existing horticulture industries, available nitrogen material and interest or activity in organics. Key regional centres with good opportunity for organic horticulture are Harvey (South West Irrigation Area), Perth, Gingin, Manjimup and Kununurra. 4 Background Consumer demand
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