Submission for Inquiry into growing Australian agriculture to $100 billion by 2030

Overview

The work of the Australian Government, through the Department of Infrastructure, Transport, Cities and Regional Development (the Infrastructure portfolio) contributes to a strong and viable primary production sector through a range of policy and program mechanisms. The Infrastructure portfolio delivers benefits to regional communities and contributes to realising the Australian agricultural sector’s ambition to achieve a combined $100 billion value of production by 2030. It does so through design, implementation and coordination of its infrastructure, transport, cities and regional development programs and policies.

The Infrastructure portfolio supports the Australian agricultural sector through investments in both regional development and in transformative infrastructure including rail and roads which improve freight routes and national networks. These projects seek to increase the efficiency of transporting produce from farm-gates to markets across Australia and facilitate access to opportunities in the global market. A new inter-governmental National Freight and Supply Chain Strategy is also helping to connect producers to markets via ports, airports and other transport hubs. Australia’s aviation policy settings have also facilitated more international services and encourage the disbursement of international flights to regional centres, which is assisting with the growth in air freight of agricultural exports. In addition, the Infrastructure portfolio is leading work on the development of a whole-of- government framework to manage drones which offer clear innovative and economic advantages for agriculture.

This investment in transport infrastructure is supported by a range of targeted regional programs and policies aimed at better-equipping communities to take advantage of emerging opportunities associated with both public and private investment. These regional development grants programs support the agriculture sector by strengthening regional communities through funding important community infrastructure.

Access to sustainable and economical water supply is also crucial to a strong agricultural sector. Through the Infrastructure portfolio, the Australian Government is delivering the $1.5 billion National Water Infrastructure Development Fund (NWIDF) to assist state and territory governments to fast-track water infrastructure projects as well as providing $2 billion in concessional loans through the National Water Infrastructure Loan Facility (NWILF). Furthermore, the Australian Government’s recently established $100 million National Water Grid Authority will lead a science-based approach to the future requirements of Australia’s water infrastructure to support our farmers, businesses and regional communities.

The Regional Deal model is being trialled in three locations around Australia and seeks to build upon the success of the City Deals. These deals offer significant opportunities for governments, the community and businesses to partner together to help to shape the future growth of our cities and regional centres. Australian Government commitments and initiatives under the trial Hinkler Regional Deal, Townsville City Deal, Launceston City Deal and Hobart City Deal are already helping to create regional jobs and growth opportunities, including for agriculture.

The Australian Government also supports 52 Regional Development Australia Committees (RDAs) across Australia. RDAs work with all levels of government, industry bodies and their communities to facilitate strong sustainable regional economies and provide valuable insights on the economic development challenges of our north and other regions.

Australia’s external territories, such as Norfolk Island, for which the Infrastructure portfolio has responsibility, play a small but important role in contributing to Australia’s primary production sectors. These territories’ unique advantages could provide opportunities to grow agricultural exports.

This submission provides information and examples to demonstrate the manifold ways in which the Infrastructure portfolio contributes to the growth of the Australian agricultural sector. National Freight and Supply Chain Strategy

Efficient logistics are a key contributor to growing the agricultural sector. The National Freight and Supply Chain Strategy and National Action Plan were released in August 2019. The Strategy articulates the agenda for coordinated and well-planned government and industry action to meet our freight challenges for the next 20 years. It integrates all national transport modes and involves all levels of government.

The need to manage increased freight flows and the importance of cost-efficient supply chains in ensuring profitability through to the farm gate is captured in Pillar 1 of the National Farmers Federation’s 2030 Roadmap. This document reiterates the significant contribution the National Farmers Federation and many other agricultural sector stakeholders have made to the development of the Strategy and its implementation.

The Strategy and Action Plan respond to the Roadmap by encouraging innovative solutions to meet freight demand, while ensuring that governments regulate Australia’s freight networks in a way that appropriately balances the benefits against the requisite regulatory burden and costs. All Australian governments and industry are working together through the Action Plan to achieve the following:

 Ensure our supply chains are serviced by resilient and efficient key freight corridors, precincts and assets  Provide agricultural areas with infrastructure capable of connecting them to major gateways  Adopt global standards and common platforms to support technological interoperability  Improve regulation to be more outcomes-focused and risk-based to support innovation

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Key Australian Government contributions across the four critical areas identified for action by the Strategy include the following:

 Smarter and targeted infrastructure investment - $4.5 billion for the Roads of Strategic Importance (ROSI) initiative and $9.3 billion for the development of Inland Rail  Enable improved supply chain efficiency - $44 million for an Inland Rail Interface Improvement Program and $32 million to improve agriculture export systems  Better planning, coordination and regulation - $8 million for the National Heavy Vehicle Regulator to streamline the approval process for road access by heavy vehicles  Better freight location and performance data - $8.5 million to settle the design of the National Freight Data Hub in response to industry calls for better freight data availability and sharing. National networks and freight routes

Improved transport connectivity for regional communities provides opportunities for agricultural producers in regional areas though major infrastructure projects and by better linking industries to domestic and international markets.

Infrastructure Investment Pipeline

The Australian Government has increased its investment in key freight routes including $1 billion for the Princes Highway and $700 million for Newell Highway Upgrades, to ensure a safer and more efficient road network for all Australians. Significant upgrades also continue to be made to the Pacific Highway in New South Wales, the Bruce Highway in Queensland, the North-South Corridor in South Australia and the Midland Highway in Tasmania.

The 1,700 kilometre Bruce Highway is Queensland's major north-south road corridor and runs from Brisbane to Cairns. It provides critical linkages for freight movements between inland production areas and eleven coastal ports and major regional centres. To support freight efficiency and connectivity along the Queensland coast, the Australian Government has committed $10 billion to the Bruce Highway Upgrade Program over 15 years from 2013-14 to 2027-28 to deliver priority upgrades along the route.

The Australian Government has also committed $4.5 billion to upgrade key freight routes through the ROSI initiative. ROSI will ensure our key freight roads efficiently connect agricultural and mining regions to ports, airports and other transport hubs. This program delivers works such as road sealing, flood immunity, strengthening and widening, pavement rehabilitation, bridge and culvert upgrades and road realignments. Importantly, the rolling nature of the investment over 10 years will ensure that ROSI will deliver substantial social and economic benefits including ongoing opportunities for greater regional employment and business growth.

ROSI will support important regional freight corridors including $235 million for the Alice Springs to Halls Creek corridor in Western Australia and the Northern Territory. This funding is targeting the

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agricultural industry, such as $15 million towards the proposed Mango Industry Roads Upgrades and the Litchfield project in the Northern Territory, which will better connect the mango product to interstate and overseas markets. The Litchfield Mango industry accounts for almost 24 per cent of the Australian market.

Additionally, the Australian Government has also committed $70 million of ROSI funding to the Wheatbelt Secondary Freight Network which comprises approximately 4,400 kilometres of local government managed roads that connect with state and national highways to provide access for heavy vehicles into the region. These roads are essential for supporting key freight supply chains including grain-related freight. They form part of a whole of network approach in improving freight productivity in the region and enabling vital agricultural commodities to access domestic markets and international markets via key Western Australian ports. They also support tourism in the region.

The Australian Government is also delivering 37 projects across both the $600 million Northern Australia Roads Program and the $100 million Northern Australia Beef Roads Program including the following commitments across both programs:

 Over $280 million towards 25 projects in Queensland  Over $184 million towards five projects in Western Australia  Over $222 million towards seven projects in the Northern Territory

Approximately 480km of roads are being upgraded (including more than 270km of sealing) across Queensland, Western Australia and the Northern Territory as a result of projects committed to under both Northern Australia roads programs. Works being undertaken include safety and productivity improvements, such as sealing, strengthening, widening and pavement renewal. It is expected that more than 2,000 jobs will be supported by the Northern Australia roads programs.

The Australian Government is also investing $330 million to upgrade key sections of the Outback Way over a ten-year period. The investment in the 2,800 kilometre route that links Laverton in Western Australia with Winton in Queensland via Alice Springs in the Northern Territory comprises a number of commitments.

In addition to significant investment in key freight routes, the Australian Government also invests in local projects to increase freight access to ports and other access points. For example, currently there is no easy route to connect the Cairns Airport and Cairns Port with the region's agricultural producing areas including the Atherton Tablelands, Cape York Peninsula and Mossman. This access has been identified as a critical enabling factor for the continued development of Cairns as an export and service hub. Accordingly, the Australian Government has committed up to $287.2 million towards the Cairns Ring Road project that will upgrade the Captain Cook Highway from the Cairns CBD to Smithfield. This project will ease congestion and improve connectivity between key activity hubs in the region, for example between the Cairns Port and the region’s agricultural producing areas including the Atherton Tablelands, Cape York Peninsula and Mossman. The Project is currently in the early planning stages with the Queensland Government.

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The Australian Government is investing an additional $2.2 billion in road safety funding from 2019–20 through the Local and State Government Road Safety Package. This package includes additional funding for the Black Spots Program, Roads to Recovery, Bridges Renewal Program and the Heavy Vehicle Safety Productivity Program (HVSPP).

The funding adds $25 million per year to the Bridges Renewal Program, bringing the total investment in the Program to $640 million for the period 2015-16 to 2022-23. Round Four, which provided funding for 125 local projects in 2019, was open to local governments to apply for funding for up to two timber bridges that will enhance access for local communities or facilitate higher productivity vehicle access.

The HVSPP funds infrastructure projects that improve the productivity and safety outcomes of heavy vehicle operations across Australia. Six funding rounds have been successfully completed under the Program.

Inland Rail Construction and Operation Opportunities

The agricultural sector will also benefit from Inland Rail that will connect agricultural producers in the eastern Australian states to ports in Brisbane and Melbourne and, via connections to the national freight rail network, to all mainland state capital cities and major ports. The Australian Government is investing up to $9.3 billion in Inland Rail that will provide for heavier, faster and longer trains and a Brisbane to Melbourne transit time of less than 24 hours with 98 per cent reliability.

This significant change in rail freight capacity will deliver new market opportunities for existing producers. It will also open new and lower-cost transport options for agricultural inputs such as fertilisers and feedlot grains. The projected capability of Inland Rail to support lower costs at both the input and output stages of production aligns with the Customers and Value Chain pillar of the National Farmers Federation 2030 Roadmap.

In addition, over time, the Inland Rail’s operation will lead to large modal shift in goods from road to rail. Currently, approximately 24 per cent of the intercity Brisbane to Melbourne goods freight travels on rail: this is projected to be over 60 per cent by 2050 with Inland Rail. This road to rail shift means that, in relative terms, there will be fewer heavy vehicles on the road, and therefore reduced congestion in both urban and rural areas.

Furthermore, because one 1,800-metre double stacked Inland Rail train replaces up to 110 B-double trucks, by 2050 Inland Rail will deliver a reduction of 750,000 tonnes per year of carbon dioxide equivalent emissions. This supports the Unlocking Innovation pillar in the National Farmers Federation 2030 Roadmap.

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Oversize Overmass Vehicles

Oversize Overmass (OSOM) vehicle access arrangements can form a significant impediment to the primary production sector as farmers are often required to move vehicles from paddock to paddock at short notice in response to seasonal demands.

On 29 June 2018, in response to concerns identified through the National Freight and Supply Chain Inquiry, the Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development, the Hon Michael McCormack MP, announced the Australian Government would fund an independent review of OSOM vehicle access arrangements (Review). The Review assessed the productivity, asset management and safety impacts of existing access arrangements for OSOM vehicles and produced a report making 38 recommendations.

In response to this Review, the National Heavy Vehicle Regulator has issued a National Class 1 Agricultural Vehicle and Combination Notice (Notice). The Notice exempts eligible agricultural vehicles and combinations from certain mass and dimension requirements of the Heavy Vehicle National Law and Heavy Vehicle (Mass, Dimension and Loading) National Regulation, and other certain requirements of the Heavy Vehicle (Vehicle Standards) National Regulation, and places conditions on their operation in designated Agricultural Heavy Vehicle Zones. The purpose of the Notice is to reduce the need to submit access applications and to harmonise the dimension limits and operating conditions.

Airports – Air Freight

The Infrastructure portfolio is responsible for providing advice to the Australian Government on the policy and regulatory framework for Australian airports and the aviation industry. The Australian Government, through the Infrastructure portfolio, contributes to the growth of agricultural airfreight exports by supporting liberal provisions under Australia’s bilateral air services arrangements.

Over recent years, agricultural producers have been able to take advantage of the additional freight opportunities afforded by the increase in the number of international passenger flights due to growth in international tourism, noting the vast majority of international airfreight is carried in the belly hold of passenger services.

This growth has been facilitated by updated air services arrangements with a range of key economies, including a historic ‘open skies’ arrangement settled with China in 2016 that removes all capacity restrictions between Australia and China for each country's airlines.

The Infrastructure portfolio is aware of a number of regional airports that are investigating opportunities to grow their air freight business, potentially benefitting agricultural exporters. While there are a range of commercial impediments to international services in regional airports, the Government’s aviation policy settings encourage the disbursement of international flights to regional centres. For example, under the “regional package”, Australia provides foreign airlines unlimited

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access to airports other than the four major gateways of Sydney, Melbourne, Brisbane and Perth. It should be noted that an airport operator seeking to introduce international services at an airport where no border services are provided, or where there is a change to an existing business model that impacts on border services capabilities, needs to apply to the Infrastructure portfolio so that an assessment can be made on whether the provision of these services are in the national interest.

Toowoomba Wellcamp Airport (Wellcamp) in Queensland provides a case study of a regional airport successfully commencing international freight services. In December 2016, the Australian Government designated Wellcamp as a ‘restricted use’ international airport under the Air Navigation Act 1920. This enabled Wellcamp to operate international flights to Hong Kong (one service per week) under Australia’s existing air services arrangements. Producers in Queensland are able to take advantage of this localised air freight service to gain access to the growing fresh produce market in Asia. In 2018, the weekly scheduled outbound Cathay Pacific freight service (Hong Kong-Sydney- Melbourne-Wellcamp-Hong Kong) carried just over 1,000 tonnes of outbound freight, including a mixture of agricultural and other products1.

Coastal Shipping

Our exports and imports rely on shipping – 99 per cent of the volume and 80 per cent of the value of our international trade in goods are moved by ship. Accordingly, efficient maritime supply chains are an important part of building and maintaining competitive advantages in agricultural value chains, and supporting increased production. The mode is essential for the movement of bulk goods from producer to domestic consumer and also crucial for the movement of key agricultural inputs such as feed and fertiliser.

Domestic shipping is regulated under the Coastal Trading (Revitalising Australian Shipping) Act 2012. Industry members have identified a range of inefficiencies and trade impediments created by the current coastal trading framework. All Australian governments agreed to Coastal Trading reform as an action under the Transport Infrastructure Council’s Nation Freight and Supply Chain Strategy National Action Plan, released 2 August 2019. This reform presents an opportunity to improve the efficiency of maritime supply chains and improve the competitiveness of Australia’s agricultural sector.

Tasmanian Freight Equalisation Scheme

In 2013-14, Tasmanian agriculture accounted for 4.7 million tonnes or 21 per cent of Tasmania’s total freight task by volume. Agricultural freight is diverse and highly dispersed, with freight movements to and from farms, production and processing centres. Fifty-five per cent of Tasmania’s agricultural

1 BITRE International Airline Activity for 2018

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freight originates in the north-west region, with a further 20 per cent transported to the north-west from the north and south2.

The Tasmanian Freight Equalisation Scheme (TFES) was introduced in 1976 to provide financial assistance for costs incurred by shippers of eligible non-bulk goods moved by sea across the Bass Strait. The amount of assistance is based on the difference between the freight costs of moving the goods by sea and the notional freight costs of moving them by road over an equivalent distance.

The TFES aims to provide Tasmanian industries with equal opportunities to compete in other markets, recognising that, unlike their mainland counterparts, Tasmanian shippers lack the option of transporting goods interstate by road or rail.

The southbound component of the TFES supports Tasmanian agriculture, forestry and fishing, manufacturing, mining, and businesses that use inputs shipped from the mainland.

The northbound component of the TFES provides assistance for goods produced in Tasmania, including agricultural good such as dairy products, fruit and fruit preparations, livestock, and vegetables and vegetable products. For more information on eligible goods under the scheme, see the Ministerial Directions for the TFES at: www.infrastructure.gov.au/maritime/tasmanian-transport- schemes/files/Ministerial_Directions_July_2019.pdf

Expenditure under TFES increased from $128 million in 2011-12 to $153 million in 2018-19. This represents a 19.5 per cent increase in assistance paid under the Scheme, over an eight year period.

Recent Developments On 1 January 2016, the TFES was expanded to cover eligible northbound goods shipped to a port on the mainland for the purposes of transhipment.

On 9 August 2018, the TFES was expanded to include fodder being donated to mainland farmers as an eligible northbound good, until the end of 30 June 2020. This time limited expansion is in response to farmers affected by drought in New South Wales and Queensland. The assistance provided under the Scheme will help reduce the cost of shipping the fodder donations across Bass Strait for the specified period.

On 23 August 2019, the Australian Government announced improvements to the TFES to increase assistance for high-density goods and enable businesses to receive support for imported inputs to production.

2 Department of State Growth, 2013-14 Information Paper 1

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Drone Use in Agriculture

Drone use is rapidly emerging in agriculture to deliver innovative means of economic growth within the sector. The technology is used primarily for data gathering, such as monitoring crop growth, fertiliser application, monitoring weeds, water usage or irrigation impacts, and undertaking soil and field health analysis.

While not new technology – remote sensing through using satellites and aircraft have been long-used – drones enable cost and access barrier reductions. This in-turn allows greater flexibility and efficiency of gathering data for the sector across vast swathes of agricultural land. Due to more accurate and timely data collected to better inform actions taken by agricultural workers, using drones for remote sensing data has the potential to increase yields.

Drones can also be used for environmental monitoring and conservation purposes. It provides current data which is not reliant on publicly-available sources (for example, Google), and offers clearer and more detailed imagery. Data obtained through drone imagery is also more accurate when undertaking species counts. It both mitigates human interference impact on a conservation site and facilitates hazard reduction associated with some environmental activities such as crocodile egg counting.

The Infrastructure portfolio is leading work on the development of a whole-of-government framework to manage drones. As a first step, it will be releasing an issues paper for consultation in the coming months. Regional Development Programs

The Australian Government’s regional development grants programs support the agricultural sector by building important community infrastructure for regional Australia. The Infrastructure portfolio delivers the Australian Government’s regional development programs that provide funding for initiatives that boost employment in regional areas. The Australian Government is providing a further $200 million from 2019-20 for an additional round of the Building Better Regions Fund that will open in late 2019, and a further $22.7 million in 2019-20 for another round of the Stronger Communities Programme. These programs provide funding support for a range of projects that aim to strengthen regional communities and their economies, including the agricultural sector. Water Infrastructure

Water is a vital resource for Australia, with water supply and security a key limiting factor to growing the primary production sector to a combined $100 billion value of production by 2030. Increasing water supply and improving water security will help expand primary production, allow producers to move towards higher value commodities, and build the resilience of regional economies to the effects of variable water availability.

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The Australian Government is delivering its election commitment to invest $100 million to establish the National Water Grid Authority (the Authority). The Authority commenced operation on 1 October 2019 and plays a key role in shaping national water infrastructure policy and bringing together world best science to identify and plan the next generation of water infrastructure that will support the growth of primary industries, build drought resilience and meet the needs of a growing population.

The Authority’s objectives are to:

 Develop, in partnership with state and territory governments, a national framework for investment in water infrastructure to identify a pipeline of priority water infrastructure projects that will increase the capacity, connectivity and resilience of Australia’s water storage and supply infrastructure  Use world best science to determine where and how Australia’s water resources can be sustainably developed to increase security and reliability of supply  Deliver the Australian Government’s $3.5 billion commitment to identify and build new water infrastructure through the $1.5 billion NWIDF and the $2 billion NWILF

Through the NWIDF, the Australian Government is providing $1.5 billion to assist state and territory governments to fast-track water infrastructure projects such as dams, weirs, pipelines, managed aquifer recharge and water recycling projects that will enhance water security, maintain the prosperity of agriculture and grow the resilience of rural and regional economies. The NWIDF comprises $1.35 billion for the capital component to invest with state and territory governments in the construction of water infrastructure and $149.5 million for the feasibility component to support the detailed planning necessary to inform water infrastructure investment decisions. Complementing the NWIDF, the Australian Government is also has $2 billion in concessional loans available through the NWILF. These initiatives aim to ensure that finance is not a limiting factor to investments in economically viable water infrastructure projects.

The purpose of the NWIDF is to enable state and territory governments, and their project partners, to make informed investment decisions for new or augmented water infrastructure that helps to secure the nation’s water supplies and deliver strong economic benefits for Australia. Key objectives of the NWIDF include the following:

 Accelerate planning to inform public and private water infrastructure investment decisions  Increase and improve the information base available to inform water infrastructure planning and decision making  Help accelerate and facilitate the construction of viable water infrastructure projects in partnership with state and territory governments  Facilitate long-term economic and regional development through supporting viable water infrastructure projects

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In establishing the Authority, the Australian Government is providing national leadership to plan for and meet the water needs of our farmers, businesses and regional communities and to secure the future prosperity of all Australians. Regional Deals and City Deals

The Australian Government is committed to delivering City and Regional Deals. The Deals are helping to shape the future growth of our cities and regional centres by cementing long-term partnerships across governments, the community and businesses. Among other benefits, Australian Government commitments and initiatives under Regional and City Deals are helping to create regional jobs and growth opportunities for the future in regional cities, towns and rural and remote areas. This includes supporting industry growth of which agriculture growth opportunities may be an option for particular industries.

The Australian Government is currently trialling the Regional Deal model in three locations in the Barkly Region in the Northern Territory, Hinkler in Queensland and Albury-Wodonga on the New South Wales and Victorian border. Each trial Deal is unique and tailored to each region’s comparative advantages, assets and challenges. Each trial location will yield important lessons that will inform the ongoing development of the Regional Deal model.

Importantly, the Hinkler Deal trial highlights an initiative to support the agricultural sector. The Australian Government’s $5 million commitment to developing a new ‘Ag-tech’ facility in the region will provide opportunities to develop new and improved solutions to maximise farm productivity and meet emerging market trends.

The Townsville City Deal includes an Australian Government commitment of $195 million for the construction of Stage 2 of the Haughton Pipeline to support Townsville’s access to a reliable water supply. The pipeline will allow water from the existing Haughton Main Channel to be returned to irrigators, resulting in ongoing agricultural benefits of around $3 million per year.

The Launceston City Deal features the following commitments that support local agriculture industry:

 The draft Regional Economic Development Plan which outlines a vision to improve the region’s capabilities and market access capacity of local agriculture businesses enabling them to substantially increase export values  The Launceston Hub of the National Institute for Forest Products Innovation which will provide grants to proponents aiming to grow Australia’s forest and forest products industry by exploring and facilitating innovation in the forest products sector  The Greater Launceston Transformation project which will include the establishment of a Tasmanian Agritech Start-up Accelerator Program focusing on improving the efficiency and production of agriculture

Under the Hobart City Deal, the Australian Government is providing $82.3 million over the life of the Deal for border services to allow direct international flights at Hobart Airport. This will improve

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international access for Tasmanian agricultural producers and exporters, allowing them to get their products to markets more quickly and in fresher condition. Regional Development Australia Committees

The Australian Government is investing $76.7 million over four years for 52 RDAs across Australia to work with all levels of government, industry bodies and their communities to support the development of their regions. Each RDA is required to develop a business plan that describes its work program, priorities and resourcing for the coming Financial Year, and specifically how it will facilitate job creation, investment attraction and the development and implementation of Australian Government policies and programs. Many RDAs identified priorities for agribusiness growth and diversification (including export); and food production and innovation in their 2019-20 business plans.

RDA committees play an active and facilitative role in their communities and have a clear focus on growing strong and confident regional economies that harness their competitive advantages, seize on economic opportunities and attract investment. Reforms to the RDA network in 2017-18 have resulted in greater collaboration across RDAs and a renewed focus on working with key regional stakeholders to deliver high-quality economic development outcomes. RDAs provide valuable insights to the Australian Government on the economic development challenges of our regions, including the needs of regional businesses. They have access to strong grassroots networks and the ability to bring stakeholders together to focus on regional outcomes. As the regional development voice of their communities, RDAs do the following:

 Consult and engage with communities  Promote and participate in regional programs and initiatives  Provide information and advice on their region to all levels of government  Support informed regional planning

Case Study: RDA Adelaide Hills, Fleurieu and Kangaroo Island - Middle East Market Opportunities

In 2018, RDA Adelaide Hills, Fleurieu & Kangaroo Island (RDA AHFKI) embarked on a Trade Development and Investment Attraction program focusing on the Middle East and North Africa region.

AsiaAustralis was engaged by RDA AHFKI to complete a high-level study of key markets in the Middle East that could be suitable for the region. Through this study, United Arab Emirates, Saudi Arabia and Qatar were identified for potential development of trade in vegetables, fruit, dairy, meat products and beverages.

Subsequently, RDA AHFKI led an outbound delegation in February 2019 to attend Gulfood 2019, the world’s largest food and beverage trade show. This visit allowed RDA AHFKI to conduct market research and engage in early relationship building. As a consequence of this visit, agreements were signed between Australian and Middle East businesses to progress trade.

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For example, an MOU and formal agreement were made between Innovative Total Solutions Australia and Agrico Qatari Farms to commence the business specialising in food security, composting and organic waste management services along with agriculture development.

There has also been a trial shipment of fresh produce in addition to value-added tea and juice products direct into a Qatar supermarket. The quality and presentation of the products exported led to all the produce being sold within 24 hours.

In 2019-20, RDA AHFKI will expand on its initial work, including increasing airfreight shipments of fresh produce into Qatar supermarkets and leading additional in and outbound delegations.

Case Study: RDA Central Coast - Food Innovation Precinct

With the continual squeeze on industrial land in Western Sydney, RDA Central Coast identified an opportunity to develop a world class Food Innovation Precinct on the Central Coast between the airport and freight port hubs of Sydney and Newcastle. The Central Coast Food Innovation Precinct (CCFIP) will take advantage of the current upgrades to the M1, the delivery of North Connex, and industrial lands adjacent to the M1.

The CCFIP will leverage the NSW Central Coast’s underlying existing strengths and realise economic benefits through growing and innovating the local food industry, growing jobs, building regional business competitiveness, and encouraging national and international trade through innovation, education and research. The CCFIP will use a best practice innovation model developed by the Newcastle Institute for Energy and Resources (NIER).

A formal MOU has been established between RDA Central Coast, the University of Newcastle, NIER and Central Coast Industry Connect to build the Central Coast’s reputation as an internationally renowned centre of excellence in food innovation.

Following the MOU partnership’s successful application for funding through the Food Innovation Australia Limited Cluster fund, a food industry cluster has been established to support small and medium-sized enterprises in the Central Coast’s food and agriculture sectors. The Cluster will also attract industry investment to fund research that could be utilized to innovate national and international food and food related industries. External Territories

The Australian Government, through the Infrastructure portfolio administers the territories of Christmas Island and the Cocos (Keeling) Islands (collectively known as the Indian Ocean Territories) and Norfolk Island.

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Indian Ocean Territories

The Christmas Island and the Cocos (Keeling) Islands communities are limited in their ability to develop commercial agriculture, horticulture and aquaculture that can substantially contribute to growing Australian agriculture to $100 billion, due to:

 Inconsistent weather patterns make predicting plant production challenging, while the tropical climate also facilitates growth of invasive weeds  The introduction of four species of fruit fly on Christmas Island  Limited or no access to business insurance reducing local entrepreneurship and impacting the ability for businesses to raise finances  The Export Control Act 1982 does not apply to the Indian Ocean Territories, impacting ability to certify products for export  Despite the Indian Ocean Territories’ proximity to south-east Asian markets, freight is expensive, impacting the benefit of the proximity.

Norfolk Island

The community on Norfolk Island has a history of self-sufficiency in food. However, since 2016 there has been an increase in food and other products imported from mainland Australia, with some also coming from New Zealand. Opportunities for local agriculture include developing niche agricultural businesses which build upon unique advantages that could be useful to the industry. For example, Norfolk Island’s lack of pests and diseases could enable the export of bees and bee products. Value- added products such as cosmetics and personal care products are already manufactured on-island.

RDA Norfolk Island runs an incubator program to assist the development of new on-Island businesses. In 2019-20 RDA Norfolk Island will be running an agribusiness incubator to support on- Island agriculture businesses with a focus on value-add agricultural activities.

The Australian Government is assisting Norfolk Island’s agricultural industry through the following:

 Implementing stricter import protocols for the import of live animals, stock feed and other goods under the Biosecurity Act 2015  Providing $42,000 to a consultancy to provide a Proposal for Improving Ruminant Livestock Performance on Norfolk Island: Artificial Reproduction Focus  Providing up to $100,00 for the Norfolk Island Regional Council for the purchase of a First Point of Entry (FPoE) compliant incinerator for biosecurity waste and engaging a consultant to advise on relevant facilities required for the airport and seaport to become FPoE compliant  Subsidising air freight services to improve reliability

Challenges to the development of commercial agriculture, horticulture and aquaculture on Norfolk Island include the following:

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 The scale of the Island and its industries mean that bulk export of product is not viable  There is limited agricultural processing equipment on Norfolk Island  The Export Control Act 1982 does not apply to Norfolk Island, impacting ability to certify products for export  Air and sea freight is expensive, and sea freight between Norfolk Island and the mainland goes via New Zealand  Norfolk Island does not have a deep sea port - all freight is broken down and moved between Island and vessel by lighters  Rainfall is declining and there are limited groundwater resources Conclusion

The Infrastructure portfolio of the Australian Government recognises a wealth of opportunity to support the Australian agricultural sector to attain its goal of growing to $100 billion by 2030. The Portfolio is doing so through mobilising multiple levers. These include infrastructure investment, regional programs and specific place-based initiatives. Supporting the Australian agricultural industry is an integral part of supporting Australia’s regions. In doing so, the Infrastructure portfolio is contributing to national prosperity which will benefit all Australians through both direct and indirect employment effects and the economic benefits of a more efficient and growing agricultural sector.

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