PROFILE 2015/16

PEOPLE

GROWTH INNOVATION

PLACE Photo courtesy of Shane Strudwick CONTENTS Introduction from the Chair 2

The Murraylands - Regional Food Production 4 - Location map 6 - Our Assets 7

Murraylands Food Alliance - Priorities 8

MFA Members 10

Murraylands Food Alliance - Benefit to the Economy 14

1 INTRODUCING THE MURRAYLANDS FOOD ALLIANCE MESSAGE FROM THE CHAIR direct regional output

I’m proud to introduce to you the business environment mean that there Murraylands Food Alliance (MFA). is a need to be vigilant in looking for $ ways to improve their individual and MILLION The Murraylands Food Alliance (MFA) collective competitiveness, and as a is a collective of the Murraylands result members see value in being part 1100 $ biggest food producers, processors of the MFA. and manufacturers. Collectively we produce more than 48 per cent of the MFA members have high potential 1000 $ Murraylands gross regional product. for growth and ambitions for the next five years are strong. Current estimates As MFA members, we see an opportunity indicate a combined growth rate of 900 in collaborating to develop strategies 22.7 per cent or a compound growth which will increase the competitiveness of 4.2 per cent. This will see the MFAs of the Murraylands Food Industry. direct output from the region increase 800 Collectively we directly employ more from $910.5 million to around than 3,300 staff with flow on effects $1.1 billion. resulting in an additional 1,700 jobs 700 in the region. Murraylands Food Alliance members are strongly committed to increasing Members are involved in different the competiveness of the Murraylands 600 aspects of the food value chain. Region and ensuring the Murraylands

From primary production of animal develops a reputation as premium $1.1 BILLION and horticultural product, to value producer of clean green food and wine. 500 adding food manufacturers, packers, processors, wholesalers and retailers; David McKay all of whom combine to generate local Chair, Murraylands Food Alliance Murraylands Food Alliance Chair David McKay. 400 jobs in the region and provide food to Chief Operating Officer, national and international markets. Thomas Foods International

All members agree that the Murraylands 300 $910.5 MILLION is a great place to do business. The level of industry support, available infrastructure and community have all 200 contributed to their individual success. Nevertheless the pressures of today’s 100

0 2 2011/12 2016/17 WHO WE ARE

The Murraylands Food Alliance is a collective of the Murraylands largest food producers, processors and manufacturers who collectively account for 48% of the Murraylands gross regional product.

OUR AIM

To foster relationships to further develop and support the Murraylands region.

WHAT WE DO

Together we aim to advance the productivity of the Murraylands food industry through initiatives related to the four priority areas of People, Place, Innovation and Growth.

Figures quoted in this document have been collated directly from feedback from MFA members for the 2011/12 Financial Year. 3 THE MURRAYLANDS REGIONAL FOOD PRODUCTION & PROCESSING

DAIRY

CARROTS t Capacity to process over 30% of the state’s milk t9,896 tonnes produced (ABS 2011/12) t Largest cheese factory in SA t Production on the Lower Murray t34% of the state’s carrot production Floodplain and shores of Lake Albert and Alexandrina

GREEN-LEAF VEGETABLES LAMB & BEEF t Process 50% of ’s t 6 million heads of iceberg lettuce per annum lamb production t 1000 tonnes of broccoli per annum t Australia’s largest lamb, mutton t 1 million heads of cauliflower per annum & beef exporter t Largest producer of lettuce & broccoli in t Australia’s 3rd largest processor South Australia

4 MUSHROOMS PORK t Capacity to process over 20,000 t 6,240 tonnes annually pigs per week t Largest producer in SA t Produce 70% of South Australia’s pigs t 70% of SA’s mushrooms t Process 65% of South Australia’s pigs t Export to all states

OLIVES POTATOES t 5,381 tonnes produced (ABS 2011/12) t 173,290 tonnes produced t 56% of South Australia’s Olive production (ABS 2011/12) t Australia’s largest Super High Density t 50% of South Australia’s Potatoes Olive Grove t 15% of Australia’s Potatoes t Home to the peak Industry Body t Exports 80% washed potatoes to – Australian Olive Association Ltd eastern states

ONIONS POULTRY t 62,728 tonnes produced (ABS 2011/12) t Produces 50% of South Australia’s t 50% of South Australia’s Onions meat chickens t 19% of Australia’s Onions t Hatch 1 million chicks per week

5

NSW

VIC

SA SA SYDNEY MELBOURNE PINNAROO LOXTON 5 SOUTHERN MALLEE DC 10 km www.mappingsa.com.au KEITH 02040 LAMEROO THE DC COONALPYN 3 9 International Thomas Foods 10 Foods Beston Pure Enterprises 11 Inghams EAST MURRAY OF KAROONDA 4 COORONG DC TAILEM BEND TAILEM SWAN REACH COUNCIL 10 MENINGIE BRIDGE MID MURRAY MID MURRAY 6 8 1 7 10 9

Lake 2

Alexandrina 11

Bay 6 Encounter 5 Potatoes Premium Parilla 6 Pty Ltd R.G.F.M. 7 Rivapak Harvest 8 Swanport VICTOR HARBOR VIC NSW PORT WAKEFIELD

Gulf

St Vicent SA Murraylands Council Regions Council Murraylands Major Road Railway Line Gas Pipeline 1 Big River Pork 2 Costa Group: Adelaide Mushrooms Olives 3 Longridge Potatoes 4 Oakville MURRAYLANDS FOOD ALLIANCE FOOD MURRAYLANDS THE MURRAYLANDS OUR CONTRIBUTION

INDUSTRY INFRASTRUCTURE COMMUNITY The food industry is big business in The region’s key position on strategic Having a proud local and skilled the Murraylands. The regions ten national freight routes is a key workforce is critical to the MFA. biggest food companies together have advantage to businesses in the region. The MFA alone employs more than a combined sales revenue of $1.5 Located an hour east of Adelaide the 3,300 people with an intention to billion. These companies are involved region is positioned on key transport employ a further 847 people in the in difference facets of the production, routes to Melbourne, Sydney, and next five years. MFA members place processing and manufacturing of Adelaide. Planning is also underway to high importance on their staff living animal products such as lamb, beef, develop a local intermodal, which will locally and reinvesting their income pork and cheese and vegetables increase transport & logistics efficiencies within the region. including potatoes, onions, carrots, and support logistics companies already olives, and green vegetables. located in the region. The Murraylands is home to several quality schools, hospitals Innovation and investment has been key The region has access to power, gas and entertainment venues which to the development of the Murraylands and water. The and are essential to supporting a local food industry. Murraylands Food Mallee aquifers provide an adequate workforce. Together with local Alliance members collectively spend supply of clean water, gas is available government the MFA is working to more than 2 million annually on R&D through two gas pipelines, and power ensure these services are of the highest projects relating to productivity and is available throughout the region. standard into the future and to ensure efficiency gains through water use Planning is also underway to develop that the Murraylands continues to be efficiency, bio energy, refrigeration, a bio energy powered industry precinct a proud multicultural community with genetics and robotics. To further support which will not only be a great outcome a long and passionate history in the this innovation MFA members spent for the environment but also decrease food industry. more than $32m on capital expenditure power costs for businesses located in in the 2011/12 financial year. the precinct.

mfa industry $32 Million $1.5 Billion $2 million statistics Capital Expenditure* Combined sales revenue* Annual combined Research & Development expenditure*

All statistics are provided my the MFA members for the 2011/12 financial year 7 MURRAYLANDS FOOD ALLIANCE PRIORITIES PEOPLE PLACE

The members of the Murraylands Food Alliance was established in WORKFORCE DEVELOPMENT PROUD REGIONAL FOOD INDUSTRY November 2013. Members soon realized that there was opportunity to be gained in COMMUNITY INFRASTRUCTURE POSITIVE SOCIAL IMPACT WORKPLACE DEVELOPMENT PLANNING FACILITATING GROWTH t Creating an effective networking forum MFA CLUSTER FACILITATION UTILITIES & SERVICES DEVELOPMENT t Leveraging the strength derived as a group to apply influence over critical areas beyond what would be possible individually, and t The establishment of cooperative business development opportunities A prime focus of the MFA has The Murraylands is a region primed The MFA has identified four key ares which they have prioritised for been to develop the relationships for growth and we aim for the future work: People, Place, innovation and Growth between member companies and Murraylands for it to be recognised to gather an understanding of the as a premium food producing strengths that can be developed region. The Murraylands as a great within the group. place to live work and play and we are actively looking for ways to Members also note that one of increase the pride in our regional our greatest barriers to growth food industry. is workforce development. The combined MFA workforce has a Members are also aware of the significant migrant employment positive social impact that we base and we want to see more of can contribute through working our employees staying long term in with council and being more the region. involved in community projects and initiatives. We encourage and look forward to being involved in more pro-active planning policy, including increasing access and reducing costs to utilises such as power, water, waste and logistics infrastructure to meet the industry’s growing needs. 8 INNOVATION GROWTH

KNOWLEDGE SHARING ECONOMICALLY VIABLE SUPPLY CHAIN INNOVATION ENVIRONMENTALLY SUSTAINABLE LEADING USE OF TECHNOLOGY LONG TERM VISION R&D PARTNERSHIP DEVELOPMENT A STRONG REGIONAL VOICE

MFA Members are focused on Over the next five years, all MFA increasing the competitiveness members have indicated that they of our regional food industry. To have positive expansion plans. To achieve this we have committed to achieve this growth we need to sharing knowledge of our individual meet the needs of our consumers companies, discovering common to be environmentally and ethically areas for industry improvement and sound. being open to exploring new and innovative concepts. MFA members will work together to develop a united vision and ensure Our Members already lead industry that we advocate infrastructure and in supply chain innovation and utility provisions that support this we continually seek to implement vision’s expansion opportunities. new technology and access new markets to provide a competitive Collectively we realise that the MFA edge. We wish to forge strong will be a strong regional voice for R&D relationships to tailor these the region. We will speak together opportunities to fit the individual to build the community pride in our and collective business need of our regional food industries, and gain members. Packaging, consumer the ear of business and government research, energy alternatives, genetics to ensure that our region has and irrigation technology have all the infrastructure and service been raised as focus R&D areas. requirements needed to support future industry growth. Photo courtesy of Shane Strudwick 9 MFA MEMBERS There are eleven members of the Murraylands Food Alliance. These companies include Big River Pork, Costa – Adelaide Mushrooms, Longridge Estate, Parilla Premium Potatoes, Oakville Potatoes, Rivapak, RGFM Pty Ltd, Swanport Harvest, Beston Pure Foods, Thomas Foods International and Inghams Enterprises. BIG RIVER PORK COSTA-ADELAIDE MUSHROOMS

Profiles on our members are showcased over the next few MURRAY BRIDGE MONARTO pages. We welcome inquiries from other businesses who may be interested in joining us to build the Murraylands Big River Pork, was established in 2001 and is a state of the The Costa Group’s Adelaide Mushrooms business is a state Food Industry. art processing facility that manages pork production from of the art mushroom growing facility with 32 growing rooms the farm to retail. The export accredited abattoir has the which was completed in 2010. Costa Adelaide Mushrooms capacity to process over 20,000 pigs per week and has a produces on average 120,000 kilos per week and have a workforce of 230 people. workforce of 266 people. The business uses other farming bi-products to generate mushroom substrate onsite enabling Big River Pork acts as a service provider to four shareholders them to grow, pick and pack mushrooms daily. and other clients. The pork is boned or sent as carcasses for further processing; frozen pork offal is exported to many Costa Adelaide Mushrooms is the second largest mushroom overseas countries and provides fresh packed pork offal for farm and most modern mushroom cultivation facility in the Singapore market for the 4 shareholder companies. Australia. The “farm” utilises state of the art processes to produce over 6,240 tonnes annually of primarily White The purpose built factory, has just recently undergone Mushrooms as well as some Swiss Brown Mushrooms which extensive expansions to its chiller capacity and boning are both packed for local and interstate markets. room to increase efficiencies and processing potential. Currently Costa Adelaide Mushrooms sells mushrooms Big River Pork‘s shareholders include Auspork, whole in cartons direct to the markets. The business is B. E Campbell, George Weston Foods and also producing pre-packs including sliced mushrooms Hurstbridge Abattoirs. and supplies 90% of the pre-packaged mushrooms in South Australia. It is exploring new value added products www.bigriverpork.com.au and expects growth in this area. The business had the space to double as the market grows.

www.costaexchange.com.au

10 LONGRIDGE OLIVES PARILLA PREMIUM POTATOES OAKVILLE POTATOES COONALPYN PARILLA NILDOTTIE

Located 21 km North East of Coonalpyn, Longridge Olives Parilla Premium Potatoes is a dynamic vertically integrated Established in 1997, Oakville Golden Sunrise is a 7000ha is currently the largest Super High Density (SHD) olive horticultural business supplying potatoes, carrots and onions modern farming operation, which harvests and packs orchard in Australia. across Australia and overseas. Privately owned by the Pye potatoes on a daily basis to supply markets nationally. family, Parilla Premium Potatoes has more than 120 full time Oakville Golden Sunrise operates three farms at Parrakie, Privately owned by the Rowntree family, Longridge Olives and seasonal workers. Head office is located at Virginia with Peebinga and Nildotte with washing and packing plant at comprises 87,000 specially selected olive trees. The 60 operations at Pinnaroo, Peebinga, Robe and Parilla. Nildotte employing 120 full time and seasonal employees. hectare estate consists of varieties including Picual, Barnea, Arbequina, Arbosona, Koroneiki and FS17. The company produces more than 55,000 tonnes of fresh Oakville Golden Sunrise is responsible for developing produce per year to supply both fresh and processing proprietary breeds of washed potato including the Delight The secure underground water supply, Medierranean climate markets in Australia and overseas. Potato Range and as a result there are high levels and experienced grove management ensures that the of product innovation. orchard provides a consistent and reliable supply of high Parilla Premium Potatoes has established its own Onion quality 100% Certified Australian Extra Virgin Olive Oil Packing Shed and Cool Storage Facilities at Parilla where First launched onto the market in 2011, the Delight Potato either in bulk or packaged to customer specifications. onions are graded and packed into bags or cartons before Range is made up of three varieties – Cream Delight, being sold. The packing shed operates from February to Golden Delight and Red Delight all of which are available Currently the majority of olive oil produced is sold November and constantly has a crew of 40-50 people. exclusively through Woolworth’s stores nationally 52 weeks domestically to leading Australian brands; some is exported The Cool Storage facilities that are used to store onions of the year. to the USA, and Japan (under another label); and a small as well as potato seed and have the capacity to store up percentage is packaged into two litre casks and sold via local to 3000 tonnes of produce. www.delightpotatoes.com.au IGA supermarkets and speciality tourism and retail outlets. www.parillapremiumpotatoes.com.au www.longridgeolives.com.au

11 RIVAPAK RICHARD GUNNER FINE MEATS SWANPORT HARVEST MANNUM MT BARKER/MENINGIE MURRAY BRIDGE

Rivapak is a purpose built, state-of-the-art onion packing Richard Gunner Fine Meats (RGFM) is a premium Swanport Harvest is an innovative, quality assured facility located in Mannum, by the River Murray that ‘paddock to plate’ producer of fine meats. A private family horticultural company, known for its successful brand provides colour vision onion grading and packing for its business, RGFM was established in 2001 and now has Staycrisp. Established by the Ruggiero Family in 1975 on grower shareholders. seven retail outlets, a production facility in Mt Barker, and the banks of the Murray River, this third generation company an online store, in addition to the existing family farm at is well known in the market for its range of premium, Established in 2000, Rivapak processes 15,000 tonnes of Meningie known as Gemlake Pty Ltd. Gemlake operates wrapped, fresh produce labelled Staycrisp. brown, red, mild and white onions per year for its grower the Wanderriby feedlot, Coorong Designer Angus, Stony shareholders. Rivapak has installed a modern highly flexible Point Stud and Suffolk sheep enterprise. The family business Swanport Harvest proudly offers freshly cut Iceberg Lettuce, cold storage facility with a capacity in excess of 3 500 tonnes employs more than 80 staff between these operations. Broccoli, Cauliflower and Cos Lettuce in its range of to enable onions to be supplied consistently for 12 months preservative free products. The Staycrisp Iceberg Lettuce and of the year. Under the brand of Feast! Fine Foods, RGFM aims to Staycrisp Cauliflower is especially unrivalled as they are cut understand production better than any other meat retailer in the field, wrapped and vacuum snap-chilled within minutes Rivapak is a grower and wholesaler consortium with five in Australia and supply Australia’s best restaurants with of harvest, increasing the product’s freshness and extending shareholders and employs 40 people. premium quality meat. its shelf life to beyond 2 weeks.

A pre-packing plant has also been installed which enables Feast! Fine Foods aims to understand customer requirements Swanport Harvest are the largest growers of lettuce and the company to provide different requirements to the and to bring the best produce direct from the farm to the broccoli in South Australia and have a 20% supplier supermarket trade. consumer. market share within SA. Staycrisp Iceberg Lettuce and other Swanport Harvest products are available through Woolworths www.feastfinefoods.com.au stores in SA & interstate and through most other local independent retailers.

www.staycrisp.com.au

12 BESTON GLOBAL FOOD COMPANY THOMAS FOODS INTERNATIONAL INGHAMS ENTERPRISES - BESTON PURE FOODS MURRAY BRIDGE MONARTO MURRAY BRIDGE & JERVOIS Thomas Foods International is Australia’s largest 100% Monarto is currently home to the Inghams Hatchery and family owned meat processing company with a long-term Breeder Farms. Inghams Enterprises Pty Ltd is one of Australia’s Beston Pure Foods is an arm of the ASX-listed Beston Global commitment to the meat export industry through quality, largest privately owned companies and Australia’s largest Food Company (BGFC). Established in 2014 the company reliability and value-adding. poultry producer of meat and layer chickens and turkey. has investments in the Dairy, Seafood, Meat and Health & Nutrition industries. Established in 1988 and based in Murray Bridge, Thomas A vertically integrated business, Inghams contracts growers Foods International employs more than 2400 people across to grow out the hatchlings to full size at which time the In July 2015, BGFC acquired the dairy processing facilities, the group which has processing facilities in South Australia, chickens are processed at the Inghams Bolivar Plant. formerly owned by United Dairy Products (UDP), at Murray NSW and Queensland as well as distribution facilities The Murraylands is also home to several businesses Bridge and Jervois in South Australia. Beston’s aim is to in Adelaide, Coffs Harbour, Brisbane, Darwin and USA. restructure the operations and build a broader presence in contracted as Inghams Broiler and Breeder Farms. Significant investment in lairage and processing facilities, the domestic and export marketplace including new product The Monarto hatchery currently employs 60 staff and a lines under its Beston Pure Foods label. wastewater treatment and sustainable energy generation has made it one of Australia’s top five meat processors further 80 staff are employed by their contracting partners The Murray Bridge processing facility features an end-to-end demonstrating market-leading expertise in procurement, in the Murraylands. cheddar manufacturing system, whey separation room and processing and exports. Ingham’s Enterprises Pty Ltd built their Hatchery at Monarto nano-filtration plant. The plant produces cheddar and artisan hard cheeses such as Romano and Pepato. Thomas Foods International exports to more than 80 in the early 2000’s. Ingham’s Enterprises Pty Ltd currently countries with airfreight consignments of 1.3 tonnes regularly has plans to expand their Hatchery facility and further The Jervois processing plant features an advanced milk shipped globally. Its Thomas Farms branded products are develop their breeder and free range operations within production system, cheese making facilities, butter maker also available at supermarkets across the country. the Murraylands. with 3,000 kg/ hr capacity, a recently installed modern whey powder plant and various ancillary and packaging equipment. www.thomasfoods.com www.inghams.com.au The site will continue to produce high value protein ‘Lactoferrin’ - a key ingredient in infant formulae that is in short supply - from the state-of-the-art facility. www.bestonglobalfoods.com.au

13 MURRAYLANDS FOOD ALLIANCE BENEFIT TO THE ECONOMY

SALES REVENUE PRODUCTION CAPITAL ECONOMIC IMPACT In 2013, the Murraylands Food VOLUMES EXPENDITURE Analysis by Econsearch has indicated Alliance’s combined sales revenue was More than 2.5 million tonnes of produce The consolidated Capital Expenditure that the Murraylands Food Alliance over $1.5 billion (including operations and 1.5 million litres of other product in of the member companies in 2013 contributes $769 million in Gross in other parts of the state and country). 2013 made its way to local, intrastate, was almost $52 million with member Regional Product (GRP) which is Over 3,300 people were employed interstate and international markets* companies spending significant amounts 48 per cent or almost half of the in these member companies from the member companies of the MFA on expansion and upgrading of facilities, 2011/12 entire Murraylands GRP Australia wide. in 2013. This equates to a total volume sustainable energy initiatives, farm ($1.61 billion). This results in 6,917 of 8,520 containers and 42,500 pallets equipment and machinery. In doing full time equivalent (FTE) jobs which In the Murraylands region itself of food produce that was produced or so they stimulated the local and state is 47 per cent of 2011/12 regional Econsearch estimated that the total value added by MFA members. economies as they confidently prepare employment in the Murraylands region. revenue from operations by these themselves for future growth in their companies specifically from the businesses and prosperity for the region. Murraylands region to be $910 million and employing approximately 1,847 fte.

the murraylands food alliance million tonnes contributes almost 2.5 of produce half of the 2011/12 containers of murraylands grp 8,520 food produce

million litres 1.5 of other product* pallets 42,500 of food produce 48% Ȏ 0,//,21ȏ GROSS REGIONAL PRODUCT (GRP)

2013

14 * ‘other product' relates to either dry or liquid cheese whey, which is on sold to other processors. FLOW ON EFFECTS Econsearch compared the direct economic impacts against the value added (GRP equivalent for these industries) and employment for food related agriculture and manufacturing sectors (i.e. excluding wine grapes, wine and other beverage manufacturing and seafood catch and manufacturing).

The Murraylands Food Alliance contributes: t 54 per cent to food related value added ($670million in 2011/12) in the Murraylands region and t 37 per cent to food related employment (fte) (5,005 fte jobs in 2011/12) in the Murraylands region

In addition Econsearch estimated that the sectors where the flow-on impacts are likely to be the greatest are: t GRP: beef cattle (25 per cent), ownership of dwellings (9 per cent), road transport (8 per cent), sheep (8 per cent) and retail trade (6 per cent). t Employment (fte): beef cattle (47 per cent), retail trade (9 per cent), road transport (7 per cent), sheep (6 per cent) and personal and other services (4 per cent).

murraylands murraylands food related food related value added employment

54% 3% ȎȎ00,//,21ȏ0,///,21ȏ Ȏ5,0055,005 ))7(7( --2%6ȏ2%6ȏ

15 SUPPLIERS SUPPORTING Suppliers to MFA members benefited INDUSTRIES greatly from a staggering total The MFA has also attracted businesses expenditure of more than $441 million to the region, relevant to supporting in 2013, of which $388 million (87.9%) the scale of its activities. Without being was spent within the state and an exhaustive, examples include; attraction additional $53 million (12.1%) was of businesses in the following areas: spent on interstate suppliers. t transport and logistics services t irrigation supplies and services t electrical supplies and services t fertiliser supplies t employment services.

441 $388 million 0,//,21 spent within the state

87.9%

$53 million on interstate suppliers

16 12.1% THE MURRAYLANDS FOOD ALLIANCE Fostering relationships to further develop and support the Murraylands Region. Proudly facillitated by Regional Development Australia Murraylands & Inc with the support of Primary Industries & Regions SA Food and Wine Co-Innovation Cluster Projects www.murraylandsfoodalliance.com.au [email protected] P +61 8 8535 7170