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Investment attraction : Western Australia

"Western Australia is an ideal base for food and beverage companies seeking to produce safe, premium food ingredients"

Investment opportunities in the agri-food industry

Western Australia is an ideal base for food and beverage companies seeking to produce safe, premium quality food and ingredients for rapidly expanding Asian markets and quality conscious consumers worldwide. Food manufacturing makes up nearly 15 per cent by value of manufacturing industries in Western Australia; food processing, agriculture and fisheries production make up about nine per cent of Gross State Product.

The Western Australian Government strongly supports the establishment and expansion of industries targeting export market growth, particularly in the area of agricultural production and value adding through further processing. There is a range of opportunities available for investors in the agri-food industry in Western Australia involving the following sectors:

Grains Processing
Pig Production and Processing
Dairy Production and Processing
Horticulture Production and Processing

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Grains processing

While Western Australia is the major grain producing State in Australia, the majority of grain is exported unprocessed. The Western Australian Government encourages further processing of grain, as there are opportunities to produce and export a range of quality products, including flour, pre-mixes, noodles, pasta, ethanol, starch and gluten. For example, Western Australia is a major supplier of quality wheat for noodle manufacture, and particularly specialty wheat for udon noodle production in Japan. Western Australia is also Australia's largest producer of lupins. In addition to being a high-protein feed grain, lupins provide exciting opportunities for production of specialty food ingredients and nutriceuticals.

Other industry advantages include:

grain production in Western Australia has averaged more than 12.7 million tonnes per year in the last five years;
Western Australia's cereal production represents around 40 per cent of Australia's winter grain production;
grain is readily available, providing opportunities to produce biofuel including ethanol and biodiesel;
the domestic grain market is not regulated, enabling processors to source grain direct from producers;
he State has an excellent grain storage and handling system which is regarded as the most efficient and economical in Australia; and
the Department of Agriculture and Food operates a world class grain breeding and testing program to produce grain to buyers' specifications.

Pig production and processing

Opportunities for investment have been identified in all sectors of the Western Australian pig industry. A world-competitive pig processing centre opened in Western Australia in 2003. Further investment is required to expand exports to Asia, currently valued at approximately AUD30 million.

Western Australia has many advantages as a strategic location for investment in the pig industry, including:

good access to markets for fresh pork, such as Singapore and Japan;
a reliable supply of feed grain;
competitive production costs;
a pig herd free of major diseases, such as foot-and-mouth disease and swine fever;
minimal environmental concerns for correctly sited operations;
an ideal climate for pig production, including 'outdoor' production, where pigs are grown in shelters on straw rather than in intensive piggeries. This system produces healthier pigs, as the pigs receive more exercise with a reduced risk of disease; and
the Western Australian Government is committed to expansion of the pig industry and welcomes foreign investment.

Dairy production and processing

The State's dairy industry is aiming to double production to 800 million litres by 2012, and is offering opportunities for investment in milk production and dairy processing. Increased production is aimed at exports, which have tripled in value in the last 10 years. The milk production system in Western Australia is different to those in other parts of Australia and New Zealand. The combination of pasture and supplementary rations results in milk production volumes per cow that are equivalent to European and northern American feedlot systems.

The cost of this milk is competitive with that of other producers in Oceania.

Over many years, surveys and benchmarking exercises have shown that Western Australian farmers can produce milk at prices equal to anywhere in the world. In 2005, a benchmark study of 100 dairy enterprises across 35 countries included three Western Australian dairy farms. All were very competitive with New Zealand and Victorian farms.

The dairy industry in Western Australia offers:

milk production year round at internationally competitive production costs;
a Mediterranean climate that is repeatable and predictable;
strong potential for industry expansion based on the State's large grain supply;
high quality milk with low bacterial count and good flavour and colour;
access to large volumes of grain and forage crops;
very high herd health status - free of diseases such as foot and mouth (FMD) and bovine spongiform encephalopathy (BSE);
state-of-the-art processing facilities owned by international companies including San Miguel Foods and Fonterra Brands;
good access to the rapidly expanding markets for dairy products in Asia and the Middle East.

Horticulture production and processing

Western Australia produces a wide range of horticultural products including fruit, vegetables, flowers, nursery products and wine. The industry has a strong export culture, resulting from its proximity to Asia and traditional sales to the United Kingdom and Europe.

Strategic advantages for investment and some investment opportunities include:

counter season production to the northern hemisphere;
a reputation for supplying safe, quality assured products;
good land and water resources available in areas suitable for horticultural production, providing scope for industry expansion;
diverse climatic regions ranging from temperate in the south to sub-tropical in the north, supporting a wide range of crops and creating an extended production season;
Western Australia is Australia's largest vegetable exporter, with investment opportunities existing in the production of a range of Asian vegetables and investment in value added processing of vegetables for export;
Western Australia accounts for around 52 per cent of Australia's cut flower and foliage exports. Sound opportunities exist for commercialisation of native flower species in conjunction with the Department of Agriculture and Food;
Western Australia has a reputation as a quality wine producer. Investment opportunities exist in wine making and marketing, as well as the further development of wine tourism-related ventures;
the development of up to 16,000 hectares of irrigated land in Stage 2 of the Ord River Irrigation Area (ORIA) scheme provides opportunities for large-scale investment in production of sugar and other broad area crops. Ord River Stage 2 provides an excellent growing environment and reliable water supply close to the proven Ord Stage 1 development

Services

The Government of Western Australia welcomes inquiries about investment in the food and fibre industries from national and international companies. Staff can provide the following services to assist your business:

product and supplier sourcing;
detailed information on investment and trade opportunities;
arranging meetings and tours of industries;
assisting with pre-feasibility studies to assess new opportunities;
coordinating the approval process through Government;
supplying contacts such as project managers, joint venture partners, financiers, etc;
advising on Government incentive schemes;
access to research and development; and
advising on Government incentive schemes;
access to research and development; and
information on lifestyle, community and social issue.

Links

Contact: Paul Frapple, Tel: +61 8 9368 3682

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Page created: 17 July 2007