Northern Australia Agriculture Investor Identification PricewaterhouseCoopers Acknowledgments This research is funded by the CRC for Developing Northern Australia (CRCNA) is supported by the Cooperative Research Centres Program, an Australian Government initiative. The CRCNA also acknowledges the support of its investment partners: the Western Australian, Northern Territory and Queensland Governments. Disclaimer Any opinions expressed in this document are those of the authors. They do not purport to reflect the opinions or views of the CRCNA or its partners, agents or employees. The CRCNA gives no warranty or assurance and makes no representation as to the accuracy or reliability of any information or advice contained in this document, or that it is suitable for any intended use. The CRCNA, its partners, agents and employees, disclaim any and all liability for any errors or omissions or in respect of anything or the consequences of anything done or omitted to be done in reliance upon the whole or any part of this document. Peer Review Statement The CRCNA recognises the value of knowledge exchange and the importance of objective peer review. It is committed to encouraging and supporting its research teams in this regard. The author(s) confirm(s) that this document has been reviewed and approved by the project’s steering committee and by its program leader. These reviewers evaluated its: ● originality ● methodology ● rigour ● compliance with ethical guidelines ● conclusions against results ● conformity with the principles of the Australian Code for the Responsible Conduct of Research (NHMRC 2018), and provided constructive feedback which was considered and addressed by the author(s). 2 Table of contents Disclaimer ................................................................................................................................................................. 2 Peer Review Statement ............................................................................................................................................ 2 List of Tables ............................................................................................................................................................ 6 List of Figures ........................................................................................................................................................... 7 Glossary ................................................................................................................................................................... 8 Executive Summary ................................................................................................................................................ 10 Competitive Advantage .......................................................................................................................................... 10 Production capability and potential to expand ................................................................................................... 11 Favourable conditions of trade .......................................................................................................................... 11 Proximity to and importance of Asia .................................................................................................................. 11 A unique part of the global tropics ..................................................................................................................... 12 Barriers and Investment Considerations ................................................................................................................. 12 Investor Identification .............................................................................................................................................. 13 Recommendations .................................................................................................................................................. 13 Introduction ............................................................................................................................................................. 16 Project objectives ................................................................................................................................................... 17 Report structure ...................................................................................................................................................... 18 Current state of Northern Australia ......................................................................................................................... 19 Introduction ............................................................................................................................................................. 19 Size of the agricultural industry in Northern Australia ............................................................................................. 19 Western Australia .............................................................................................................................................. 19 Northern Territory .............................................................................................................................................. 20 Queensland....................................................................................................................................................... 22 Foreign investment ................................................................................................................................................. 26 Competitive advantage definition ............................................................................................................................ 28 Introduction ............................................................................................................................................................. 28 Northern Australia’s advantages ............................................................................................................................. 28 Production capability and potential to expand ................................................................................................... 28 Favourable conditions of trade .......................................................................................................................... 29 Proximity to and importance of Asia .................................................................................................................. 29 A unique part of the global tropics ..................................................................................................................... 31 Advantage over competitors as an investment decision ................................................................................... 31 Key location considerations .................................................................................................................................... 32 Introduction ............................................................................................................................................................. 32 Soil .................................................................................................................................................................... 32 Water ................................................................................................................................................................ 33 Energy (electricity) ............................................................................................................................................ 33 Labour ............................................................................................................................................................... 34 Logistics ............................................................................................................................................................ 34 Land tenure ....................................................................................................................................................... 35 3 Regulatory environment .................................................................................................................................... 35 Summary ................................................................................................................................................................ 35 Barriers to investment ............................................................................................................................................. 37 Introduction ............................................................................................................................................................. 37 Barriers ................................................................................................................................................................... 37 Cost of freight and a more expensive supply chain ........................................................................................... 37 Lack of necessary infrastructure ....................................................................................................................... 37 Adverse weather conditions .............................................................................................................................