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Casey and Cardinia Regional Agricultural Audit and Action Framework

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Casey and Cardinia Regional Agricultural Audit and Action Framework Casey and Cardinia Regional Agricultural Audit and Action Framework. Final Report – February 2004 TABLE OF CONTENTS INTRODUCTION .............................................................................................1 METHODOLOGY ............................................................................................4 ECONOMIC OUTPUT OF AGRICULTURE IN THE REGION.........................6 FINDINGS, THEMES AND ISSUES EMERGING FROM THE PROJECT. ...10 The Survey ............................................................................................................................................10 The Focus Groups.................................................................................................................................18 DISCUSSION OF MAJOR ISSUES...............................................................31 Rural: Urban Interface ........................................................................................................................31 The Escalating Cost of Land in the Region ........................................................................................39 Sustainability and Land Management................................................................................................42 Water.....................................................................................................................................................43 Roads and Transport ...........................................................................................................................46 Costs versus Returns Price Squeeze....................................................................................................47 The Profile / Perception of Farming ...................................................................................................49 Business Administration and Legislative Issues ................................................................................51 Planning Issues Relevant to Agriculture ............................................................................................52 REPORTS OF ONE ON ONE INTERVIEWS.................................................55 LIST OF PRIORITY ACTIONS ......................................................................60 COMMENTS FROM THE SURVEY QUESTIONNAIRE................................62 ACKNOWLEDGEMENTS There are a large number of people without whose input this project would not have been completed. The Project Officer, Barrie Pickersgill, would like to thank the following organisations and people who have been so willing to give their time, experience and knowledge during the course of the project. The program was funded under the Regional Assistance Program by the Department of Transport and Regional Services. Thanks to Michael Cummins and Renee Crossley from the Melbourne office for their assistance. Steering Committee Chairman - Halvard Dalheim, Manager Strategic Development, City of Casey Des Wynne, Manager Economic Development, Cardinia Shire Ian Anderson, President, Cardinia Branch VFF Richard Percy, Executive Officer, South East Development David Young, Dairy Representative, Cardinia Branch VFF Miranda Cox, Equine Project Manager, South East Development Chas Harding, Hardings Orchards, Pakenham Kim McFarland, Strategic Development, City of Casey Lyn Link, Beef Farmer & Women on Farms Representative Joanna Redmond, Business Development Officer, Cardinia Shire Luis Gazzola, Chairman, South East Vegetable Growers Arthur Giaccotto, Australian Asparagus Council Jason Keating, Regional Marketing Officer, Dept of Primary Industry Colin McQuillan, Licensing Supervisor, Southern Rural Water Frank Crameri, Southern Rural Water Jenni Ireland, Manager Applied Science & Horticulture, Chisholm Institute Tom Schreurs, South East Vegetable Growers Other Contributors Peter Schreurs, Devon Meadows Ian Ada, Sustainable Agribusiness Officer, Shire of Yarra Ranges Max Coster, Department of Primary Industry Geoff Kirton, Economic Development Project Officer, Shire of South Gippsland Ibrahim Malas, Sales and Marketing General Manager, Lemnos Foods Penny Taramides, Export Adviser, Tradestart Anne Langworthy, Director, Centre for Regional Development, Swinburn University of Technology Marie Harding, Hardings Orchards, Pakenham Joanne Butterworth-Gray, Drouin West Fruit and Berry Farm Jenny Pullar, President, Cardinia Ranges Vignerons Association John Osmelak, CEO, Flowers Victoria Theo Van Roy, Dairy and Poultry Farmer, Pakenham Kevin Crehan, Poultry Farmer, Longwarry Campbell Chapman, Dairy Farmer, Caldermeade John Clarke, President, VFF Chicken Meat Group Barry Jones, Manager Regulatory Services, Cardinia Shire Allan and Glenda Williams, Allanglen Lodge, Cranbourne Dr Danielle Auldist, Executive Officer, GippsDairy Sophie O’Neil, Cardinia Food and Wine Development Sincere thanks to those farmers who donated their valuable time to attend the Focus Group sessions and whose input proved invaluable. Thanks to the enthusiastic group of farmers and other stakeholders who attended the ‘Focus on Farming’ Agribusiness Workshop which added enormous value to the work previously done during the course of the project. Many thanks to the members of the City of Casey Strategic Development and City Development teams, with special thanks to Halvard Dalheim, Kim McFarland, Jocelyn Blair, Angela Smyth, Trevor Wakefield, Anna Kijowska, Leanne Terrington and Lorna Benoiton along with Joanna Redmond, Cardinia Development Project Officer for their invaluable assistance, input, advice and support. To Allison Jones, previously with the City of Casey and Carla Boord previously with Cardinia Shire, thank you for your support early in the project and for your ongoing interest. EXECUTIVE SUMMARY This audit of agriculture in Casey and Cardinia was brought about by the recognition within the two municipalities that there was a lack of knowledge in the region about the farming sector. A successful funding application was made to the Commonwealth Governments Department of Transport and Regional Services and additional funding was provided by the City of Casey as the lead proponent with additional funds from Cardinia Shire. An Agribusiness Officer was appointed in January 2003 to conduct the audit. The process used to collect the data required was as follows: • A steering committee was established to provide direction and local community input to the project. • Desktop research was conducted into other similar research projects and studies. • Statistical financial data was sourced from the Australian Bureau of Statistics (ABS) and supplemented by industry data where this was available. • A survey was undertaken of all landholdings outside the urban area. The response rate was 22.1% which can be considered to provide statistically valid data. • An SPSS statistical software package was used to assist in the analysis of the returned questionnaires. • Respondents to the survey were given the opportunity to indicate whether or not they would like their names to be included in a register of people who are interested in forming some type of agribusiness organisation for the region. Over 130 farmers indicated that they would like to be registered. • Focus groups were conducted with the major industry sectors in the region. • A one day regional agribusiness workshop, Focus on Farming, was held to discuss and refine the issues raised throughout the remainder of the project. • A number of one-on-one interviews were conducted with individuals across the agribusiness sector including farmers, executive officers of agribusiness organisations, authors of other relevant reports and appropriate officers of other Local Authorities. The Estimated Value of Agricultural Operations as recorded by the ABS is $109,568,683 for Casey and $173,091,457 for Cardinia giving an annual value of $282,660,140 for the region (refer to comments regarding these values under ‘Economic Output of the Region’ later in this report). The survey indicated that 42% of the land holdings outside the urban area in Casey were income earning and the same figure for Cardinia was 73%. The largest percentage of farms in the region are beef properties. These comprise 55.6% of the farms in the two municipalities followed by dairy farms at 12.6%. Dairy farms tend to be the largest farms by size in the region with an average size over 110 hectares followed by vegetable farms averaging almost 60 hectares. Beef properties average just over 50 hectares. 69% of the regions farmers estimate that all or most of their farm inputs are sourced from within the region indicating that there is a significant economic flow on effect from the farm sector. Business confidence tends towards the positive for both the short term twelve month period and for the longer five year outlook. This result does however need to be interpreted with the understanding that the region is hopefully coming out of a long period of drought. The region employs a large workforce and the survey captured 1503 full time and permanent part time employees. This number includes property owners and their employed family members. It is not clear whether there is respondent bias in the employee numbers in the survey but the data suggests that there is a large permanent and part time employment base in the agricultural sector in the region. The region also employs a large seasonal workforce with the asparagus industry being the largest seasonal employer and orchard fruit and the vegetable industry also contributing seasonal jobs. Around
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