GUNNEDAH SHIRE OPPORTUNITY OVERVIEW a Few Words from the Gunnedah Introduction by Jamie Chaffey, Chamber of Commerce and Mayor, Gunnedah Shire Council
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GUNNEDAH SHIRE OPPORTUNITY OVERVIEW A few words from the Gunnedah Introduction by Jamie Chaffey, Chamber of Commerce and Mayor, Gunnedah Shire Council Industry President It brings me great pleasure to introduce the Gunnedah region and a number of the opportunities that exist for prospective It is with great pride that the Gunnedah Chamber of Commerce investors on behalf of Gunnedah Shire Council. The information and Industry, in collaboration with the Gunnedah Shire Council, in this document has been prepared in collaboration with the present this introduction to the clean, green and highly Gunnedah and District Chamber of Commerce and Industry. productive region of Gunnedah located in some of the most prime resource-rich land in NSW. I trust that the Agricultural Investments Opportunity Overview We are proud to showcase a select few local businesses that will give you a taste of what is on offer in the region, and will give an indication of the quality and professionalism in particularly in relation to cattle supply and the potential industry that is available in the Gunnedah region. The “Snap for development of beef production and related export Shots” of local businesses contained within this document opportunities. The Gunnedah region is a prime location for the are a sample of the diversity of exporters, producers and development and expansion of beef production and processing processors of primary products that are in rich abundance in industries. the Gunnedah region and proof of the professional business people that make up our business community. The profiles of a selection of varied local businesses highlight how many have already taken advantage of the abundance of My vision for the future is to connect our region and our high opportunities that Gunnedah provides. It also showcases the quality business community to potential partners that can willingness and readiness of Gunnedah Shire Council to work share in our riches and provide opportunities to add diversity with investors. to the industries and processors already established within the Gunnedah region. I warmly invite you to peruse a sample of what we have to offer and look forward to a chance to welcome you to Please enjoy the content of the introduction to Gunnedah and Gunnedah to further investigate the opportunities that exist. I look forward to developing meaningful outcomes into the future. Michael Broekman Councillor Jamie Chaffey President Mayor Gunnedah Chamber of Commerce and Industry Gunnedah Shire Council 2 CONTENTS Foreword 2 Contents 3 Gunnedah in Brief 4 Socio Economic Profile 5 Strong Population Base 6 Diverse Economy 6 A Significant Tourism Destination 6 Skilled and Valuable Workforce 7 Agricultural Industry Opportunity Overview 8 Agricultural Investment in Gunnedah 9 Agricultural Resources 9 Agricultural Production 9 Investment Opportunity: Regional Beef Processing 11 The Opportunity 11 Market Outlook and Drivers 11 Cattle Supply 11 Skilled Labour 12 Transport Linkages 12 Site Availability 12 Our Business Community 13 Snapshots 14-23 Contact 24 2 3 GUNNEDAH IN BRIEF The Shire of Gunnedah is situated in the north-east of New South Wales, 425kms north west of Sydney and covers nearly 5,000 square kilometres of land. Within the Shire’s boundaries the township of Gunnedah is the major population hub and also includes the townships of Curlewis, Breeza, Carroll, Mullaley and Tambar Springs. The Shire is situated in the centre of the highly productive Liverpool Plains, and hosts a highly productive agricultural industry including grains, cotton and beef cattle. The surrounding area is also rich in coal and natural gas reserves. Further support from strong manufacturing, tourism and retail trade sectors provide a diverse array of employment and investment opportunities within the Shire. Disclaimer: Whilst all care and diligence have been exercised in the preparation of this report, AEC Group Pty Ltd does not warrant the accuracy of the information contained within and accepts no liability for any loss or damage that may be suffered as a result of reliance on this information, whether or not there has been any error, omission or negligence on the part of AEC Group Pty Ltd or their employees. Any forecasts or projections used in the analysis can be affected by a number of unforeseen variables, and as such no warranty is given that a particular set of results will in fact be achieved. 44 SOCIO ECONOMIC PROFILE 4 Figure 2: Gunnedah Shire Contribution to GRP (2014-15) Strong Population Base Mining Gunnedah Shire presents a strong investment location, with Agriculture, Forestry & Fishing a diverse economy and solid long term outlook. The region hosts a resident population of approximately 12,800 persons Construction supporting the core regional industries of agriculture and Manufacturing resources. Healthcare & Social Assistance Public Administration & Saftey The regional population has grown by nearly 1% per annum since 2005 and is projected to reach 13,300 people by 2031. Retail Trade Financial & Insurance Services Figure 1: Gunnedah Shire Population Transport, Postal & Warehousing 1.8% 14,000 Education & Training 1.6% Rental, Hiring & Real Estate Services 12,000 1.4% Electricity, Gas, Water & General Waste Services 10,000 1.2% Accomodation & Food Services 1.0% Other Services 8,000 0.8% Professional, Scientific & Technical Services 6,000 0.6% Administration & Support Services 4,000 0.4% Wholesale Trade 0.2% Arts & Recreation Services 2,000 0.6% Information Media & Telecommunications 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2021 2026 2031 -0.2% Source: AEC Population % Growth Source: ABS (2016), Department of Planning and Environment (2014) A Significant Tourism Destination Diverse Economy Gunnedah possesses a significant visitor economy, adding further diversity to the regional economy. The region is Gunnedah possesses a substantial economy which generated recognised as the Koala Capital of the World with other over $800 million in Gross Regional Product (GRP) over 2014- significant attractions including Lake Keepit, the Waterways 15. The region has a diverse economic base, with no sector Wildlife Park and the Rural Museum. contributing more than 11% of GRP. Over 2014-15 Gunnedah attracted over 220,000 visitor arrivals, Major industry sectors in Gunnedah include: representing growth of 1.5% per annum since 2010-11. • Mining (11.0% of GRP): The Gunnedah Basin contains Figure 3: Gunnedah Shire Visitor Arrivals around 10% of the estimated recoverable coal reserves in 250 NSW. There are currently three coal mines within Gunnedah Shire ‐ Vickery South, Rocglen and Sunnyside, plus four additional operations in the immediate surrounding area. 200 • Agriculture, Forestry and Fishing (10.6%): Gunnedah forms part of one of Australia’s most productive agricultural 150 regions, with major commodities including beef, wheat, sorghum, barley, cotton, canola, sunflowers, faba beans, Visitors (’000) Visitors soya beans, chick peas, corn and horticulture. 100 • Construction (8.4%): Gunnedah Shire supports over $50 million in construction industry GRP each year through 50 residential, commercial and infrastructure construction. • Manufacturing (7.0%): Gunnedah’s significant value adding 0 manufacturing sector includes four grain mill plants, two 2010/11 2011/12 2012/13 2013/14 2014/15 stock feed plants and a cotton gin. Day Trips Domestic Overnight International Overnight Source: TRA (2016) 6 7 Skilled and Valuable Workforce Gunnedah Shire has an available labour force of over 6,000 persons with a flexible and highly trained workforce including strong regional specialisations in engineering, farm management and agricultural services. The Shire is a competitive investment option with both labour and living costs well below New South Wales averages due to a lower cost of living. Table 1: Cost and Income Benchmarks Factor Gunnedah Shire New South Wales % of NSW Average Personal Incomes $660 $750 88.0% Average Weekly Mortgage Repayment $365 $500 73.0% Average Weekly Rent $190 $295 64.4% Average Weekly Disposable Income (Mortgage)1 $295 $250 118.0% Average Weekly Disposable Income (Rent)1 $470 $455 103.3% 1Note: Calculated as gross incomes less mortgage/rent payments for comparative purposes only. Source: ABS (2011) Brisbane Gunnedah Tamworth Newcastle Sydney 7 AGRICULTURAL INDUSTRY OPPORTUNITY OVERVIEW AGRICULTURAL INVESTMENT IN GUNNEDAH Agricultural Resources Climate Gunnedah features a highly conducive climate for agricultural Land production enabling cropping and grazing to be undertaken Gunnedah is situated in the heart of the Liverpool Plains area, year-round. featuring deep, highly fertile alluvial soils which are amongst Average maximum temperatures vary from 34 degrees the most productive in Australia. Over 400,000ha within the Celsius in January to 16.9 degrees Celsius in July. Minimum Shire is used for agriculture, with over 90% of this land used temperatures range from 18.4 degrees Celsius in January to 3 for dryland agriculture, with the remaining 10% used for highly degrees Celsius in July. productive irrigated agriculture production. The Shire receives 500-600mm of rain per annum, Water predominately during the summer monsoon. Gunnedah Shire is situated on the Namoi River and three of its headwater tributaries (the Mooki and Peel Rivers and Coxs Agricultural Production Creek). Gunnedah Shire is a major agricultural centre, producing over In addition to surface water, the Gunnedah Basin has extensive