AGRIBUSINESS IN SOUTH AUSTRALIA

Developed in association with Primary Industries & Regions SA

South Australia produces

premium food & wine

from a

clean environment.

WINE • 62% of Australian

exports

• 50% of Australian red

wine production

• 40% of Australian wine

white production

• Premium brands &

regions

• Exports to 100 countries

FORESTRY • 188,000ha of plantations

• Softwood Radiata pine

• Hardwood Tasmanian

Blue Gums

• 35% of the labour force

in the South East

HORTICULTURE • Potatoes

• Tomatoes

• Citrus

• Almonds

• Carrots

• Mushrooms

SOUTH AUSTRALIA’S LARGEST EXPORT INDUSTRY

LIVESTOCK • Dairy

• Lamb

• Beef Cattle

• Pigs

• Chickens

• Wool

GRAIN • 20% of Australian

production

• 85% product

exported

• Wheat

• Barley

• Canola

• Pulses

FISHERIES &

AQUACULTURE • Southern Bluefin Tuna

exports to Japan

• Southern Rock Lobster

exports to Hong Kong &

China

• Oysters, Prawn, Abalone

• Kingfish

Source: PIRSA Food & Scorecards; ABS International Trade in Goods & Services 5368; ABS Labour Force, Australia, Detailed 6291. * PIRSA estimates agribusiness exports as 36% as shown in the ABS data plus a further 10% to capture the other/confidential items relating to agribusiness items (e.g. bulk barley) 3

AGRIBUSINESS IN SOUTH AUSTRALIA

KEY FACTS

$16 billion gross food & wine revenue

$4.80 billion exports

45% share of the State’s exports*

18% of the State’s workforce

Source: PIRSA Food Scorecard; PIRSA Field Crops Scorecard; ABARES Agricultural Commodity Statistics 2013

0.00

4.00

8.00

12.00

2008 2009 2010 2011 2012 2013

Other

Canola

Pulses

Barley

Wheat

Production volume (Mt)

85% of South Australian

grain is exported to

countries in the Middle

East, China, Japan &

South East Asia.

4

GRAIN

Wheat

Barley

4.03m tonnes produced

16% of Australian wheat production

Pulses

Canola

2.22m tonnes produced

24% of Australian barley production

516,600 tonnes produced

Strong focus in lentils, peas and beans

341,200 tonnes produced

11% of Australian canola production

KEY GRAIN FACTS

7.54 million tonnes produced

$1.78 billion production value

4.02 million hectares of planted area

4,500 grain farms

STORAGE & HANDLING

Capacity of over 10 million tonnes

126 grain receival sites

Efficient road and rail transport system

8 export terminals

Comparative time and cost advantage to key Asian export

markets

MARKETING

Established international and local grain marketing firms

PRIMARY PROCESSING

• Flour

• Malt

• Animal feed

• Biofuels

SECONDARY PROCESSING

• Pasta

• Beer

• Bakery products

5

GRAIN

OPPORTUNITIES

Growing global demand for grain food, animal protein, biofuels

International export importance Australia, Europe, South America

Industry consolidation opportunity farm scale increasing

Productivity enhancements in production

Improving processing efficiencies New processing opportunities

MAJOR LABELS

Source: ABS: Australian Wine & Grape Industry; PIRSA: Wine Scorecard 6

WINE

KEY WINE FACTS

49% of Australia’s planted area

50% of Australian red wine production

40% of Australian white wine production

$1.77 billion net wine revenue

0

500

1,000

1,500

2,000

1997 1999 2001 2003 2005 2007 2009 2011 2013

Other White Red

South Australian Wine Exports by Value ($m)

Source: Phylloxera & Grape Industry Board of SA; ABS: Australian Wine & Grape Industry; PIRSA: Wine Scorecard

7

Region Plantings Crush

Riverland 27% 62%

Barossa Valley 15% 6%

McLaren Vale 10% 5%

Langhorne Creek 8% 7%

Coonawarra 7% 3%

Clare Valley 7% 3%

Variety Plantings Crush

Shiraz 34% 30%

Cabernet Sauvignon 22% 17%

Merlot 5% 6%

Chardonnay 13% 19%

Riesling 4% 2%

Sauvignon Blanc 3% 4%

PREMIUM WINE REGIONS & BULK

PRODUCTION

South Australia is famous as a producer of premium wine with

world renowned regions including the Barossa Valley, McLaren

Vale, Coonawarra and the Clare Valley.

South Australia is also a major producer of bulk wine with 62%

of the State crush coming from the Riverland region.

7

WINE

-

200.00

400.00

600.00

800.00

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

China

USA

UK

South Australian Wine

Exports Major Markets ($m)

OPPORTUNITIES

Combined vineyard and winery acquisitions

Growth in emerging markets Food & wine tourism

Exports

Key Markets

84% of production is exported

$1.17 billion export value

62% of Australian wine exports

United Kingdom

North America

Emerging Markets China

Korea

India

CLEAN ENVIRONMENT

Much of the production is based in the Southern Ocean, one of the cleanest

oceans in the world leading to a premium product from a clean & safe

environment.

Source: PIRSA: Seafood Scorecard 9

FISHERIES AND AQUACULTURE

Southern Bluefin Tuna

Southern Rock

Lobster

7.09 million kilograms produced

$146 million production value

1.54 million kilograms produced

$87 million production value

KEY FISHERIES & AQUACULTURE FACTS

$822 million gross food revenue

$266 million export value

50 commercial live catch and aquaculture species

Oysters Abalone Prawns Yellowtail

Kingfish

OPPORTUNITIES

Development of underutilised species blue mackerel, sardines, oysters, algae for biofuels

Growing demand for fresh fish in

export and domestic markets

Growth of aquaculture production

Innovation in production

techniques

Location advantages to key

export markets

TRACEABILITY

The livestock industry have implemented world leading measures across

the supply chain to ensure the safety, quality and integrity of Australian

meat.

These initiatives are headlined by the National Livestock Identification

System which track livestock from birth to slaughter enhancing the ability

to quickly contain any safety incident.

The livestock industry supplies a premium product driven by effective

food safety regulations, traceability from the farm to the consumer

and a focus on animal welfare.

Source: PIRSA: Livestock Scorecard 10

LIVESTOCK

FARMING & PROCESSING

KEY LIVESTOCK FACTS

$4.50 billion gross revenue

$1.91 billion farm gate value

$734 million export value

Lamb

Beef cattle

Dairy Wool

Pigs Chicken

SHEEP / LAMB BEEF CATTLE DAIRY CATTLE PIGS CHICKENS WOOL

Herd Size (head) 11m 1.2m 84,600 791,000 86m 11m

Farm Gate Value $401m $437m $223m $170m $215m $338m

Annual Processing* 4.9m head 420,000 head 117ML milk

5m kg cheese

1.2m head 86m head 35m kg

Processing Value* $585m $454m $228m $366m $499m $161m

Domestic Share of

Processing

17% 6% Not disclosed 26% 15% Not disclosed

Live Export Value $13m $16m n/a Nil Nil n/a

Processed Export Value* $381m $246m $8m $8m $12m $85m

Export Markets Japan

USA

Korea

USA, UK,

China

Middle East

Japan

China

Hong Kong

Singapore

PNG

Hong Kong

South Africa

China

India

EU, US

MAJOR PLAYERS

11

LIVESTOCK

* Excludes hides and skins

Source: PIRSA: Livestock Scorecard; Australian Chicken Meat Federation; Dairy Australia; Australian Pork; ABS Value of Principal Agricultural Commodities Produced 7501

Biosecurity SA Plant Health Program

Managing the safety of South Australian

fruit & vegetables

Strict quarantine rules throughout the

State

Protection against disease and pests

Australia New Zealand Food Standards

Code

Framework to manage food safety and

labelling

PRODUCTION VALUE

Potatoes $103 million

Tomatoes $70 million

Citrus $55 million

Almonds $51 million

Carrots $49 million

Mushrooms $48 million

Source: PIRSA: Horticulture Scorecard 12

HORTICULTURE

Citrus

Almonds

$64 million export value

Japan, United States, Hong Kong

$53 million export value

India, Germany, New Zealand

CLEAN & SAFE

EXPORTS

OPPORTUNITIES

Expansion of export markets Counter seasonal growing markets

Large producer base Location advantages to emerging

markets

Strong domestic consumption

South Australia was the first state in Australia to

establish commercial forestry plantations.

South Australia now bases its entire processing industry solely on

plantations.

The State’s south east is the largest forestry region in the State where the

industry makes up 35% of the regions employment and contributes 28% of

the gross regional product.

Source: PIRSA: Forestry in South Australia ; ABARES Australian Forest & Wood Product Statistics March 2013 13

FORESTRY

KEY FORESTRY FACTS

188 thousand hectares of plantation forests

Softwood – 128 thousand hectares of Radiata Pine

Hardwood – 59 thousand hectares of Tasman Blue Gums

2.4 million cubic metres of softwood log harvested annually

OPPORTUNITIES

Investment in existing

processing facilities and new

value added initiatives

Renewable energy

opportunities using forest and

processing waste

SOUTH EAST FORESTRY PARTNERSHIPS PROGRAM

The South East Forestry Partnerships Program is a $27 million State Government

assistance package designed to encourage a viable and strong timber sawmilling

industry.

Funding is available to the private sector for capital investment in the timber industry,

with the aim to create and secure jobs in the State’s South East.

SOUTH AUSTRALIA HAS WORLD LEADING AGRICULTURAL RESEARCH & DEVELOPMENT

CENTRES

Our research delivers outcomes that have direct significance to agribusiness across the globe

WAITE RESEARCH INSTITUTE

Soil & Water Science

Plant Science

Wine Science

Food & Human Nutrition

Value Chains

SUPPORTED BY THE STATE’S

LEADING UNIVERSITIES

SOUTH AUSTRALIAN RESEARCH & DEVELOPMENT

INSTITUTE

Aquatic Sciences

Innovative Food & Plants

Livestock & Farming Systems

Sustainable Systems

COMMONWEALTH SCIENTIFIC INDUSTRIAL RESEARCH

ORGANISATION

Food & Nutritional Sciences

Plant Industry

Land & Water

14

RESEARCH AND DEVELOPMENT

FOREIGN INVESTMENT IN SOUTH AUSTRALIAN AGRIBUSINESS

FEDERAL INCENTIVE SCHEMES AVAILABLE TO SUPPORT

INVESTMENT

Clean Technology

Research & Development

Specific venture capital projects relating to innovation

THE FOREIGN INVESTMENT REVIEW BOARD

The Foreign Investment Review Board (FIRB) examines foreign

investment proposals to ensure the investment is in Australia’s

interest.

FIRB must be notified on certain acquisitions, irrespective of the

value or the nationality of the investor. All other acquisitions which

do not require notification must meet certain thresholds.

One important threshold for an interest in an Australian business

is an investment with a value less than $248 million (as a

1 January 2014).

Other exemptions and thresholds apply including a lower

threshold for real estate assets and certain investment types.

Further information can be found at www.firb.gov.au

15

FOREIGN INVESTMENT IN SOUTH AUSTRALIA

www.invest.sa.gov.au

Published November 2014

The information contained in this presentation has been compiled by the Department of State Development (DSD) and originates from a variety of

sources. Although all reasonable care has been taken in the preparation and compilation of the information, it has been provided in good faith for

general information only and does not purport to be professional advice. No warranty, express or implied, is given as to the completeness,

correctness, accuracy, reliability or currency of the materials.

DSD and the Crown in the right of the State of South Australia does not accept responsibility for and will not be held liable to any recipient of the

information for any loss or damage however caused (including negligence) which may be directly or indirectly suffered as a consequence of use of

these materials. DSD reserves the right to update, amend or supplement the information from time to time at its discretion.

CONTACT DETAILS

Nicolle Sincock

Director – Food and Agribusiness

Investment Attraction South Australia

Level 9, The Conservatory

131-139 Grenfell Street

Adelaide 5000

South Australia

T: +61 8 8303 2174

E: nicolle.sincock@sa.gov.au