agribusiness investment guide - macleay valley food...
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1 Message from the Council 1
2 Why invest in the
Macleay Valley Food Bowl? 2
3 The Macleay Valley Food Bowl Region 3
Regionalsnapshot 3
Location&transport 4
Servicesavailabletonewbusinesses&people 4
4 Commercial information 6
Landavailability,propertysizes&value 6
Infrastructurecapability 8
Marketinformation 9
5 Land suitability 11
Sub-regions 11
Landcapability&soiltypes 11
Climate 14
Wateravailability 15
Topography 15
6 Key investment opportunities
– overview 16
7 Key aspects of selected investment
opportunities 19
7.1 Grazing-redmeatproductionfrombeef 19
7.2Animalhusbandry–poultry,meatchickens 22
7.3Animalhusbandry–pigs 26
7.4Dairy 26
7.5Buffalos 27
7.6Goat&sheepmilkproduction 27
7.7Cropping 27
7.8Perennialhorticulture–fruit,nuts,flowers, &specialitycrops 28
7.9Annualhorticulturecrops–vegetables,
herbs&spices 29
7.10Otherpotentialopportunities 29
8 Getting started 30
9 Further information 33
Appendix 1: Maps 34
Contents
PreparedbyRMCG,publishedJuly2016
KempseyShireCouncilacknowledgesthesupportofNSWDepartmentofIndustry.
Coverimages(mainimage):TheMacleay’scleanandgreenenvironment,combinedwithitssubtropicalweather,makeitidealforgrowingawiderangeofproduce.
Bottomleft:BurrawangGaianFarmnorthofKempseyproducesducksthatarehighlysoughtbysomeofthecountry’sleadingchefs,includingKylieKwong.
Bottomright:PipersCreekGroveproducersshowcasetheircropofBloodLimes.
Aromaticfreshgarlicbulbs
BlueberryGreensproducerCaitlinWilliamsinspectshercrop
Whenitcomestoinvestment,timingiskey,along
withhavingaqualityproduct,strongmarketdemand,
asupportiveenvironment,professionalnetworksand
solidrelationships.TheMacleayValleyisalready
thelocationofchoiceforsomeofAustralia’smost
recognisedproductsandbrands.LegendaryAkubra
hatshasmanufacturedfromitsKempseyplantfor
thepast40years,whileNestle’siconicMilobrand
wasinventedatthevillageofSmithtown80years
agoandisstillproducedheretoday.
TheMacleayisalsohometoagrowingindustry
ofhighvaluefoodproducers,atrendKempsey
ShireCouncilproudlysupports,inpartnershipwith
industry,throughtheMacleayValleyFoodBowl
brandanditsAgribusinessInvestmentProject.
Theregion’sclean,greenenvironment,includingits
soilsandclimate,producestopqualityproducethat,
putsimply,tastessensational.
Ourhistoryofbeef,dairyandtimberproductionhas
todaygivenrisetoavibrantnewgenerationofhigh
valueandvalue-addedprimaryproduction.From
ourprosperousorganicsindustry,tonativebush
foods,intensivehorticulture,highgradebeef,dairy
andpasture-raisedpoultry,theMacleayValleyiswell
suitedtoabroadrangeofagribusinessventures.
Allinvestmentcarriesadegreeofrisk,butthe
MacleayValleyofferssomeuniquecharacteristics
toincreaseyourchanceofsuccess.Firstly,your
up-frontcostsarelower,withpropertypricessome
ofthemostaffordableontheNSWeastcoast.
Secondly,youwillhaveaccesstoareadyworkforce.
Thirdly,youwillbecomepartofastrongandvibrant
MacleayValleyFoodBowlnetworkofproducers
whoenjoythecompetitiveadvantageofabranded
destinationwithareputationforthebestproduce
moneycanbuy.Fourthly,ourhighwaytransport
linkstomajormarketsarefirstrateandwillcontinue
toimproveasupgradesarecompleted,further
reducingtraveltimes.Andfinally,theMacleay’s
pristineandpicturesquehinterland-to-coast
environmentoffersabeautifulplacetoliveandbuild
yourdreamhomeandbusiness.
KempseyShireCouncil,withsupportfromNSW
DepartmentofIndustry,hasinvestedinproducing
thisInvestmentGuidebecausetheresearchtells
usthereisasignificantopportunityforinvestment.
Thisviewissharedbythosealreadyinvestingand
isevidencedbytheunprecedentedmarketdemand
forMacleayValleyFoodBowlproduce.
Thereisnobettertimeoropportunitytoinvestright
here,rightnow,intheMacleayValley.
CrLizCampbell
Mayor,KempseyShireCouncil
1 Message from the Council
1CrescentHeadeastofKempseyisanationallyrecognisedSurfReserveandagrowinghubforhighqualityproduceanddiningexperiences.
TheMacleayValleyisontheMidNorthCoastof
NSW,mid-waybetweenSydneyandBrisbaneand
onlyanhourineitherdirectiontotheregional
centresofPortMacquarieandCoffsHarbour.
TheMacleayissuitableforawiderangeof
agriculturalproductsassociatedwithanimal
husbandryandcropproduction,withmany
naturalandstrategicfactorsbenefitingtheregion
comparedtoneighbouringareasontheMidNorth
CoastandotherproductiveareasaroundAustralia.
Theseinclude:
High quality agricultural land
Highqualitylandcanbefoundontherichalluvial
plains,upriverofKempseyoutsideofthealluvial
plains,andinthesurroundinghinterland.This
geographicdiversityprovidesopportunitiesacross
multipleagriculturalactivities.
Affordable land values
Agriculturallandistypicallypricedatadiscount
of20%ormorecomparedtosimilarlandin
neighbouringareas.
A sub-tropical climate
Amildandlargelyfrost-freecoastalclimatewithfew
extremelyhotdaysmakestheMacleayValleywell
suitedtoawiderangeofagriculturalenterprises,
andprovidesopportunityforcounter-seasonal
supplyofagriculturalproducts.
High rainfall and abundant water supplies
TheMacleayValleyhashighandconsistentrainfall,
positioningtheregionwellforbothrainfedand
irrigatedsystems.
Strategic location
Locatedhalf-wayalongtheSydney-Brisbane
corridor,primaryproducersintheregioncan
easilyaccessbothlocalregionalmarketsatPort
MacquarieandCoffsHarbour,aswellaslarger
marketsinSydneyandBrisbane.
Excellent infrastructure and services
RecentupgradestothePacificHighwayhave
reducedroadtransporttimestomajormarkets.
Bothnearbyregionalcentresofferregular
commercialpassengerandfreightairservices.
Theregionisalsohometoanabattoir,apublicly
availablecommercialkitchen,transportservicesand
agronomicservices.
Enviable lifestyle
TheMacleayValleyoffersaqualitylifestylewith
communityinfrastructurethatincludesarecently
upgradedhospital,schoolsandTAFE,anduniversity
campusesinCoffsHarbour,PortMacquarieand
Armidale.Asatouristdestinationtheregionis
well-knownforthelaidbackmixofcoastaland
hinterlandexperiences.
KempseyShireCouncilisstronglysupportiveof
agriculturalinnovationandhasledthedevelopment
oftheMacleayValleyFoodBowl,seekingtoprovide
tangiblesupporttheMacleay’sagribusinessindustry.
Already,theMacleayValleyFoodBowlbrandis
becomingwellknownintheSydney,Melbourne
andBrisbanemarkets,wheretheregion’sproduce
isbeingsoughtbyleadingchefsandgourmet
retailers.1
RisingexportdemandfromChinaforAustralian
milkproducts,includingthosefromNorco,whichall
dairyfarmersintheMacleayValleysupplyto,isalso
resultinginrenewedinvestmentinthelocaldairy
sector.
Nomatterwhatyourinterestorareaofagricultural
expertise,opportunitiesexistforyouintheMacleay
Valley.ThisGuidehasbeenpreparedtooutlinewhat
theregionhastooffer,andtohelpyouidentifywhat
opportunitiesmightsuityou.
2 Why invest in the Macleay Valley Food Bowl?
1 Forfurtherinformationsee:macleayvalleyfoodbowl.com.au 2
Regional snapshotTheMacleayValleyislocatedontheMidNorth
CoastofNSW,betweenPortMacquarieandCoffs
Harbour.
ThemajorurbancentreisthetownofKempsey,
whichisaround450kmfrombothSydneyand
Brisbane.Thetownhasapopulationofaround
9,000,andthebroaderShire’spopulationisaround
30,000.2
Theregion’sagriculturehastraditionallyfocussed
onanimalhusbandry,withbeefcattleanddairy
industriesremainingthedominantsectorsbyland
use,employmentandproduction.However,the
mildclimate,highrainfallandlowlandcostmakes
theregionsuitableforavastrangeofcropsand
livestock.
Agriculture at a glance
• LargestindustryinKempseyShireintermsof
numberofbusinesses,comprising29%ofthe
total(2,191)
• Contributes$54.1million,or4%ofthetotal
GrossRegionalProduct(GRP),forthe
KempseyShire
• Productivityaverageof$42.39,whichwas
higherthanthesectoraveragesfortheMid
NorthCoast($41.37)andNSW($38.81)
• Comprises4.9%ofthetotalworkforceofthe
KempseyShire(8,807persons)
• Hasagreaterindustryconcentration(i.e.
locationquotientgreaterthan1)thanthe
nationaleconomy–andthereforehasnet
exportsfromtheregion(1.98)
• Grazingisthemostprominentlandusetype
inKempseyShire,comprised114,003ha,or
83.3%ofthetotalareaofholdings,followed
byLandsetasideforconservation(10,633ha,
or7.8%),Otherareasnotusedforagricultural
production(3,200ha,or2.3%)andCrops
(2,946ha,or2.2%)
• Grossvalueofagriculturalproductionof
$42.4million.3
3 The Macleay Valley Food Bowl Region
2Formoredetailssee:profile.id.com.au/kempsey/highlights
3LawrenceConsulting(2014)KempseyShireAgriculturalIndustryProfile2014,reportpreparedforKempseyShireCouncil
3AsaleinprogressatKempseyRegionalSaleyards
Location and transport Road
ThePacificHighwaypassesthroughtheShireonthe
outskirtsofKempsey,connectingtheMacleayValley
toneighbouringtowns,aswellastoSydneyand
Brisbane:
• 35minutes’drivesouthtoPortMacquarie
(49kmsviathePacificHighway)
• 1.5hours’drivenorthtoCoffsHarbour
(112kmsviathePacificHighway)
• 4.5hours’drivetosouthSydney
(428kmsviathePacificHighway)
• 6hours’drivetonorthBrisbane
(538kmsviaPacificHighway).
UpgradestothePacificHighwaywillfurtherreduce
traveltimetomajorcentres,withthemajortown
ofKempseybypassedin2013andadditional
upgradestothesouthandnorthscheduledfor
completionin2016and2017.Theformerhighwayis
beingprogressivelyupgradedtodualcarriageway.
CompletionofthePacificHighwaywillreducetravel
timefromBrisbanetoSydneyby2hours.
Air
KempseyAirportisaregisteredairportwithan
airstripcapableofhandlingcommercialairline
services,althoughnocommercialservicescurrently
operatefromtheairport.Ithasrecentlyundergone
a$2.5millionupgradetocreateanewAviation
BusinessParkandishometoamajorinternational
pilottrainingschool.
PortMacquarieAirportlocated35minutessouth
ofKempseyreceivesdailyflightsfromSydney,
BrisbaneandCanberrawithQantasandVirgin.
Rail
TheKempseyRailwayStationconnectstheregion
byrailtoBrisbaneandSydneyalongtheNorth
CoastLine.
Transportation companies
Multipletransportationcompaniesandestablished
networksoperatewithinthevalleyincluding
MacleayValleyTransport.
Services available to new businesses and peopleCouncil services
KempseyShireCouncil’sEconomicSustainability
Unitisresponsibleforeconomicdevelopment,
tourismandcommercialassetmanagement.The
ESUteamisavailableasafirstpointofcontactfor
newandexistingbusinesseskeenforinformation
aboutthelocaleconomyandbusinessenvironment,
oradvicefromCouncil’splanningteam.
Overview of general services
TheKempseyregionhasanumberofservicesthat
supportavibrantagriculturalsector.4
Table 3-1: Overview of general services in the Kempsey region
Service Description
Sale
yard
s TheCouncilownedKempseyRegionalSaleyardshavebeenupgradedandaccreditedundertheNationalSaleyardsQualityAssuranceProgramsince2001.Kempseyisoneof22saleyardswithfullaccreditation.Approximately40salesareheldannuallyandattractvendorsandbuyersofallformsoflivestockthroughouttheMidNorthCoast.
Ab
att
oir
s EversonsFoodProcessorsisanabattoirandmeatpackerbasedinFrederickton,northofKempsey,thatservicesthelocalarea.Itisamultispeciesabattoirprocessinglamb,sheep,cattle,pigsandgoats.
Ed
ucati
on
TheregionhasastrongeducationsectorwithTAFE,theUniversityofNewEnglandatArmidale,SouthernCrossUniversityatCoffsHarbourandLismore,andCharlesSturtUniversityandtheUniversityofNewcastleatPortMacquarie.
Healt
h KempseyHospital’s$80millionupgradewascompletedin2016andtheregionalsooffersnumerousprivately-ownedmedicalpractices.
Co
mm
un
ity Sportsgroundsandrecreationalfacilities
•11licensedclubs•4publicswimmingpools•10registeredclubs•4golfcourses•Horseandgreyhoundracingtracks•Indoorcricketandtenpinbowling•14tenniscourtcomplexesand3
squashcomplexes•ServiceclubsincludingRotary,Lions,
Apex,Quota,ProbusandViewClubs.
Sh
op
pin
g ShoppingcentresandstoresincludingBigW,CountryTarget,Woolworths,Coles,IGA,Aldiandmanyspecialtyandgiftretailers.TheKempseytowncentrehasrecentlyundergonea$3.6millionupgradefeaturingnewpaving,lighting,plantingsandstreetfurniture.4ForfurtherinformationseetheMacleayValleyWelcomepack
2015-2016:kempsey.nsw.gov.au/econodev/pubs/macleay-valley-welcome-pack-2015-2016.pdf 4
Agricultural production advice
Adviceandsupportforarangeofindustriesis
providedbyLocalLandServices(lls.nsw.gov.au).
Forregionalsupport,contactNorthCoastLocal
LandServiceson1300795299or0265636700,
orsendanmailtoadmin.northcoast@lls.nsw.gov.au
orPOBox108NSW2440.Theofficeislocatedat
83BelgraveStreetKempsey.
NSWFarmers(nswfarmers.org.au/home)canalso
beofassistance.
Council,MacleayValleyBusinessChamberandNorth
CoastLocalLandservicesareabletoputnewcomers
totheregionintouchwithlocalproducergroups,
includingfordairy,beef,organicsorotherspecialist
producerslocatedwithintheMacleayValleyFood
Bowl.Council’smacleayvalleyfoodbowl.com.au
websitecontainsacomprehensiveandup-to-date
localproducercontactlist.
TheMacleayLandcareNetworkisactiveinthe
regionandwelcomesnewcomers.Joininga
Landcaregroupcanbeagoodwaytomeetlike-
mindedpeople,learnaboutopportunitiesandover-
comechallenges.MacleayLandcarehasaResource
KitforRuralLandholders:macleaylandcare.org.
au/#!farming-and-soil-health/c12ae.
Fee-for-serviceagronomicadviceisavailablefrom
severalagribusinessserviceprovidersandrural
producestoresinthearea.Currently,thereisgreater
expertiseinlivestockproductionwithspecialiststaff
focussingmoresoonbeefanddairycattlethanin
horticulture.Forthisreason,specifichorticultural
expertisemayneedtobesourcedfromoutsideof
theimmediateareainadjacentregionssuchasCoffs
Harbour.
Business support
Generalinformationisavailablefromthe
DepartmentofIndustry,InnovationandScience
(business.gov.au).Thisincludesguidanceon
starting,runningandexitingabusiness,aswellas
grantsandassistance,advisoryservicesandevents.
EnterpriseConnectcanalsoofferadviceand
supporttoeligibleAustraliansmallandmedium-
sizedbusinesses,includingacomprehensive,
confidentialandindependentBusinessReviewat
nocharge.(businesscentre.com.au/item/enterprise-
connect)
Smallbusinesssupportservicesareavailablein
theKempseyarea,alongwithallmajorAustralian
bankingservices.Informationisavailablefrom
KempseyBusinessChamber(macleayvalleychamber.
com),SouthWestRocksChamberofCommerce
(southwestrocks.org.au)andKempseyShireCouncil
(kempsey.nsw.gov.au).
TheNSWDepartmentofIndustry,throughthe
OfficeofRegionalDevelopmentandOfficeof
SmallBusiness,offersregionalbusinesssupport
andadvice,includingadviceonfundingprograms,
andhasaregionalofficeatnearbyPortMacquarie
(industry.nsw.gov.au).
AusIndustryalsoprovidesadviceonarangeof
business,employment,finance,insurance,taxand
exportmatters,withregionalofficersservicingthe
KempseyareafromtheNewcastle,Tamworthand
Sydneyoffices(business.gov.au).
Otherkeyindustrycontactsareavailableonthe
MacleayValleyFoodbowlwebsiteunder‘Links’.
5Kempsey’sCBDhasrecentlyundergoneamajormulti-milliondollarupgrade
KempseyShireCouncil’splanningstaffareavailabletoprovideadviceallthewaythroughtheplanningapprovalprocess
Table 4-1: Property size range 5
Property size range (ha)
Number Proportion number (%)
Area (ha) Proportion area (%)
0-10 10,642 82% 9860 5%
11-50 1708 13% 43,763 21%
51-100 357 3% 24,630 12%
>101 322 2% 128,890 62%
Total 13,029 100% 207,143 100%
NSW Right to Farm Policy
TheNSWRighttoFarmPolicyhighlights
thevalueofagricultureandtheprincipleof
sharedobligationsaswellastheimportance
ofcertainty,resourceaccessandcriticalmass,
infrastructure,processingfacilitiesandmarkets
foragriculture.
Sociallicencetooperateandcommunity
engagementareimportantaspectstolong-term
agribusinesssuccess.
Newagribusinessdevelopmentshouldbe
located,designedandoperatedsoastoavoid
orminimisepotentialforlanduseconflictwith
neighboursandadjoiningorotherlocalland
uses.
Land availability, property sizes and valueLand availability and property sizes
TheMacleayValleyhasquality,affordableland
availableforagriculture.Onequarterofthe
propertiesintheregioncontain99%ofthe
landarea.Thismeanstherearepropertiesofan
appropriatesizetosuitmostcommercialagricultural
enterprises,includingannualandperennial
horticulture(11-50ha),dairy,animalhusbandry
andgrazing(51-100ha),andcropping(>100ha).
Theaveragepropertysizeisapproximately16ha.
(Refer Appendix 1, Property Size Range Map (Figure
A1-1).)
Whilepropertysizeisimportant,itisnottheonly
determinantofpotentiallanduseandproductivity.
Commercialbeefcattlegrazingenterpriseswould
generallybeassociatedwithlargetoverylarge
properties.Largelandholdingsmayalsobe
necessaryforsomeenterprisestocreatebuffers
forodour,organicwastereuseorotherpotential
amenityissues.
Land Value
TherurallandvalueintheKempseyregionis
generallylowerthaninsurroundingmunicipalities
inCoffsHarbourandPortMacquarie-Hastings.The
averagepriceforrurallandisapproximately$2,500
perhectareatthetimethisGuidewaspublished.
4 Commercial information
5Note:excludespubliclandsuchasnationalparksandstateforests.BasedonGeographicInformationSystem(GIS)analysisoftheKempseyShireCouncilpropertylayer. 6
Tovaluerepresentativeruralproperties,valuers
inNSWcomparesalesevidencewiththeland
theyarevaluing.Valuersconsiderallfactorsthat
influencetheland’svalue,suchas:
•Landclassification
•Landsize
•Productivityoftheland
•Propertymarketconditionsasat1Julyinthe
yearofvaluation
•Mostvaluableuseoftheland.
Landclassificationsarecommonlandclasses
basedongeneralusesuchascropping,grazing,
irrigationandhorticulture.Theyarefurther
definedbyconsiderationofphysicalfeatures
ofthelandsuchassoil,topographyortimber.
Propertiesmaycontaindifferentlandclasses.
Whenvaluingtheseproperties,arateforeach
landclasswillgenerallybedeterminedand
applied.
TheNSWLandValuationServicecanbe
contactedbyphone:1800110038during
businesshoursorinwriting:
ValuationServices,LandandProperty
Information,POBox745,BATHURSTNSW2795
email:valuationenquiry@lpi.nsw.gov.au.
Itisstronglyrecommendedthatyouinvestigateand
comparecurrentlandvalueswhenlookingtobuya
ruralproperty,andthatyoutalktoseveralrealestate
agencies.Inadditiontothefactorsconsidered
forlandvaluationpurposes,investorswillhave
additionalconsiderations,including:
• Infrastructure
• Closenesstomarkets
• Labouravailability
• Accesstosupplies
• Planningsupport/restrictions
• Accesstoservicessuchaseducation,health
care,legal/accountingservices,recreation
opportunities
• Opportunitiesrelatedtotourism
• Lifestyle,aestheticappealoflandscapeand
townships.
ThisInvestmentGuideprovidesfurtherinformation
onsomeoftheseadditionalaspects.Othersarenot
coveredwithintheGuide,asKempseyCouncilhas
informationavailablethroughotherresources.
Eachinvestorhastoconducttheirowndue
diligenceandassessmentoflandvalues,aswellas
otheraspectsofspecificinteresttothebusinessand
itspeople.
7StunningStuart’sPointisapopulartouristdestinationandalsohometoanumberofprosperousavocadofarms
Infrastructure capabilityTransport services
Anumberoffreightserviceprovidersoperatein
thearea,takingproducetoregionalmarketsas
wellastoSydney,BrisbaneandMelbourne.
AirfreightcanbesentfromPortMacquarie
Airport,whichhasdailyservicestoSydney.
Other infrastructure
ACouncil-ownedcommercialkitchenisavailable
forhireforfoodproduction.Thekitchenoffers
twocommercialovensandgascooktopsand
largerangehood.Equipmentincludesafridge
andfreezer,pots,pansandcookwaretogether
withadishwasher.
Localorregionalmarketsforproducecanbe
foundinthefollowingcentres:
• Gladstone:GladstoneQualityMarkets,Kinchela
Street,Gladstone
• Kempsey:MarketatRiversidePark,Kempsey,
withnumerousothermarketsdetailedat
macleayvalleycoast.com.au
• PortMacquarie:HastingsFarmersMarket
atPortMacquarieWestportPark,Port
Macquarie:growersmarket.net.au,orWauchope
MarketsWauchopeShowgroundHighStreet:
wauchopefarmersmarket.com.au
• CoffsHarbour:CoffsCoastGrowers’Market
CitySquareHarbourDrive,CoffsHarbour
• Bellingen:GrowersMarket,cornerofHammond
St&BlackSt,Bellingen.
Informationongrowersmarketsnationallycanbe
foundatmarkethere.com.au.
Freshhorticulturalproduce(fruit,vegetables,
herbs,flowers)wholesalemarketsexistinallmajor
centres:
• Sydney:sydneymarkets.com.au
• Newcastle:newcastlemarkets.com.au
• Brisbane:brisbanemarkets.com.au
• Melbourne:melbournemarkets.com.au
• Adelaide:saproducemarket.com.au
• Perth:perthmarket.com.au/wholesale-markets.
Informationtoassistinexportconsiderationscan
befoundinthefollowingresources:
• NSWGovernmentexportassistance
• NSWGovernmentExportAcceleratorToolkit
• Austradeguidetoexporting
• ExportCouncilofAustraliamarketresearch
advice
• AUSVEGexportreadinesschecklist.
8
TheGreenRoomcafeatCrescentHeadisapopulareaterywithbothlocalsandvisitors
GladstoneMarketsareapopularplacetobuyandsellfreshlocalproduce
L-BoStButcherJoshBallproudlyproduceshisownpaddocktoplateretailrangeofmeats
Market informationGeneral market trends
Thetablebelowprovidesanoverviewofcurrenttrendsthatagricultureinvestorsshouldconsider.
Mostfreshproduceisinoversupplyatcertaintimesoftheyear.Itisimportanttofindamarketnicheor
advantagebasedontiming,aspecialvariety,service,productofferingorrelationship.
Observation Opportunity
Consumersshowapreferenceforlocalproductsandlocalproviders,aswellasotherpersonalandsocialaspirationssuchasenvironmentalstewardshiporethicalanimalhusbandry.
Opportunities exist where there is an ability to capitalise on tailored marketing of local products, providers and practices.
A ‘local’ supply chain can offer the benefit of increased flexibility and tailoring to meet local demand, and potentially shorter lead times.
This trend may also be a way to galvanise the advantages held by local or domestic processing supply chains against competitive threats from greater volumes of imported products.
Demandforconvenienceremainsastrongconsumerpreference,despitefluctuationsinsentimentanddiscretionaryspendingonfood.
There is an opportunity to expand the offering of ready-meal products, across a range of price points to meet the consistent demand for convenience.
This is particularly true where it helps manage portion size, offers ‘wholesome’ nutrition and reduces waste.
An opportunity exists to use produce that does not meet Grade 1 market specifications, due to size or shape, to manufacture quality convenience food.
Thedevelopmentandgrowthinalternativedistributionchannels(includingformeals,freshproduceanddiningoutoptions)makesthisanincreasinglyviableoption,includingfor‘provenance’brandedfoodproducts.
These alternative channels, such as the delivery of ‘fruit and vegetable boxes’, hampers and other internet or application (‘app’) based sales, can be cost-effective alternatives to some traditional channels.
Suppliers can capitalise on available and emerging technologies to improve consumer convenience in access, ordering and delivery.
Institutionalfoodserviceprovisioncouldbeimprovedintermsofbothvarietyandqualityofproductsandserviceswhencomparedtowhatiscurrentlyavailable.
There is an opportunity for a group of producers, with capacity to operate with sufficient scale, to create ‘meal solutions’ to improve the efficiency and meal options for the institutional health care sector and other institutions. This would be especially attractive if nutritional, logistical and administrative challenges were reduced for institutional buyers.
This may provide scope for producers to utilise nutritious ingredients that do not meet Grade 1 market specifications due to size and shape.
Thereisanincreaseinthesizeofthe‘matureaged’consumermarketandthehealthconsciousmarketsegmentswhodemandconvenient,healthyandfunctionalfood.
There are opportunities to meet the demands of the ageing, health-conscious population through an expanded range of convenient, nutritious, healthy and functional food.
Further, through the institutional sector such as aged care homes, there is demand for tasty, nutritious food, including part-prepared food.
Buildingonpracticesalreadyinuse,thereispotentialforexpansionoffoodserviceconvenience,furtherreducingsomeofthein-housepreparationrequirementsandcostsforproviders.
Labour remains a significant cost component for many food service providers. There is potential to reduce this cost, improve energy efficiency, food safety and make operators more competitive and responsive through products that enable reduced in-house preparation in restaurants.
There can be an opportunity to combine convenience with provenance, health and quality attributes and new flavour experiences, eg for restaurants, catering and take-away businesses.
Despitestrongretailcompetition,thereisanongoingopportunityforspecialistproviderswheretheycanprovidehigh-qualityspecialtyproductssupportedbystrongcustomerservicetolocalmarkets,intospecialtystoresortoselectedwholesalers.
The strong patronage by value, health and quality-conscious consumers means there is an opportunity for specialist providers who are able to improve the shopping experience and widen the appeal to retain and grow their customer base.
9
Where to get market and other information on various industries
Thetablebelowsummarisessourcesofmarketinformationforthemajortypesofenterprises.Mostlinksalso
provideproductioninformationanddetailsaboutlearningopportunities.
Enterprise types Market information sources
Dairy DairyAustralia:dairyaustralia.com.au
Dairyprocessingcompanies,egNorco,BegaCooperativeFonterra
Grazing(redmeat) MeatandLivestockAustralia:mla.com.au
Animal husbandry(egpoultry,rabbits)
Everson’sFoodProcessors:eversons.serverau.com
AustralianChickenMeatFederation:chicken.org.au
PoultryHub:poultryhub.org
AustralianEggCorporationLimited:aecl.org
AusMeatLimited:ausmeat.com.au
Specialisedsmallfarmadvice:farmstyle.com.au/news/farming-meat-rabbits-introduction
Animal husbandry(pigs)
PorkCRC:porkcrc.com.au–research
AustralianPorkLimited(APL):australianpork.com.au–producerorganisation
PROOF:australianpigfarmers.com.au–freerangegrowerassociation
Perennial horticulture(fruitandnuts)
HorticultureInnovationAustraliaLimited:horticulture.com.auprovideslinkstofruitandnutpeakindustrybodieswhoprovidemarketinformation
Annual horticulture(vegetablesandherbs)
HorticultureInnovationAustraliaLimited:horticulture.com.au–research
AUSVEG:ausveg.com.au–vegetableandpotatopeakindustrybody
ausveg.com.au/intranet/vegetable-market/project-harvest-2015.htm
Cropping GrainsResearchandDevelopmentCorporation(GRDC)
Game RuralIndustryResearch&DevelopmentCorporation(RIRDC):rirdc.gov.au
AussieGameMeats:gamemeatprocessing.com.au
Niche and native crops RuralIndustryResearch&DevelopmentCorporation(RIRDC):rirdc.gov.au
AustralianNativeFoodIndustryLimited(ANFIL):anfil.org.au
Nursery HorticultureInnovationAustraliaLimited:horticulture.com.auprovideslinkstonurserypeakindustrybody
Protected cropping, hydroponics
ProtectedCroppingAustralia(PCA):protectedcroppingaustralia.com
Aquaculture (oyster and fishing industries)
TheMacleayRiverestuarysupportsalargerecreationalfishery,anestuarygeneralfisherywithupwardsof12professionalfishersandanoysteraquacultureindustry.KempseyCouncilactivelysupportsthisindustryandworkscollaborativelytoprotectwaterqualityintheMacleayRiver.FurtherinformationcanbesoughtdirectlyfromCouncil.
General agricultural market information
Websitepromotinglocal,freerangeandorganicproduce(milk,eggs,pork,garlic,chicken,turkey,fruitandvegetables):flavourcrusader.com
Examplesoffreerangemeatmarketingwithsimilarapproachespossibleforothertypesofproduce:freerangebutcher.com.au
Rabobank:rabobank.com.au
ANZRural:anz.com/small-business/agribusiness
ABARES:agriculture.gov.au/abares
Austrade:austrade.gov.au
ExportCouncilofAustralia:export.org.au
MarketInsider:intracen.org/itc/market-insider
FreshPlaza:freshplaza.comforfruitandvegetables
HortiDaily:hortidaily.comforcropsgrowningreenhousesandtunnels
Processing/Value adding
TheNSWFoodAuthorityshouldbeconsultedbyanyoneintendingtoundertakevalueaddingsuchasprocessing/foodmanufacturingwww.foodauthority.nsw.gov.au
10
Sub-regions TheMacleayValleyisextremelydiverseand
offerssomethingforeveryone.Itscompetitive
advantages,includingaccesstonaturalresources
suchaswater,aswellasitsfavourablesoil
andclimate,combinetosupportarangeof
agriculturalenterprises.Theseconditionsvary
acrossthreedistinctsub-regions:
1. AlluvialplainseastofKempseytothemouthof
theMacleayRiver
2.UpriverwestofKempseytoWillawarrin
3.HillcountryfromWillawarrinwesttotheshire
boundary.
Land capability and soil typesAlandscapemapofKempseybylandcapability
canbefoundinAppendix1(FigureA1-2).
TheKempseyregionhasalargeareaofhigh
(Class3)andmoderate(Class4)landcapability
capableofsupportingarangeofagricultural
enterprises.
Landcapabilityisdefinedastheinherentphysical
capacityofthelandtosustainarangeofland
usesandmanagementpracticesinthelong-
term,withoutdegradingsoil,land,airandwater
resources.TheLandandSoilCapability(LSC)
assessmentschemeusesthebiophysicalfeatures
ofthelandandsoil,includinglandformposition,
slopegradient,drainage,climate,soiltypeand
soilcharacteristics,toderivedetailedratingtables
forarangeoflandandsoilhazards.Class1isthe
bestandhighestcapabilityland,whileClass8is
theworstorlowestcapabilityland.6Thedifferent
Classes,areasandindicativesoiltypesforthe
regionareshowninTable5-1onthenextpage.
ThereisnoClass1or2landintheregion,whichis
notunusual.
5 Land suitability
6OfficerofEnvironmentandHeritage(2013)Thelandandsoilcapabilityassessmentscheme;Secondapproximation;AgeneralrurallandevaluationsystemforNewSouthWales,NSWGovernment,Sydney 11
AcropoforganicgarlicthrivesatSweetWaterFarm,located10minuteswestofKempsey
TheMacleayValleyisproudofitsstrongagriculturalhistory
Table 5-1: Land and soil capability class areas and indicative soil types 7
Class Description Area (ha) Proportion area (%) Indicative soil types
3 High 17,952 8% Non-calcicBrownsoils
4 Moderate 25,427 12% BrownEarths
5 Moderate-low 28,026 13% AlluvialSoils–LightSandyTextured
6 Low 60,023 28% SolodicSoils
7 Verylow 45,775 21% CalcareousSands
8 Extremelylow 35,899 17% AcidPeats
Total 213,102 100%
Differentlandandsoilcapabilityclassesareabletosupportdifferenttypesofagriculturalenterprises,as
showninthetablebelow.Class3(high)isabletosupportthefullspectrumofagriculturalactivitiesfrom
intensiveirrigatedannualhorticulturetolowintensitydrylandgrazing.HoweverClass7(verylow)isonlyable
tosupportlowintensity(extensive)grazingactivities.
Table 5-2: Land and soil capability class and compatible agricultural enterprises
Class Description Grazing Animal husbandry
Dairy 8 Cropping Perennial horticulture
Annual horticulture
3 High
4 Moderate
5 Moderate-low X
6 Low X X X X
7 Verylow X X X X X X
8 Extremelylow X X X X X X
Decreasing intensity
Landcapabilityisgenerallyhigherinthealluvialplainsandupriverareascomparedtothehillcountry,and
isabletosupportawiderrangeofagriculturalenterprises.Thevariationsinlandandsoilcapabilitybysub-
regionareoutlinedbelow.
Table 5-3: Variation in land and soil capability by sub-region
Sub-region Land and soil capability description Generally suitable enterprises
Alluvialplains Areasofhigh(Class3)borderingtheMacleayRiver,withpredominantlymoderate(Class4)andmoderate-low(Class5)awayfromthewaterway.Theseareinter-dispersedwithlargeareasoflow(Class6)andverylow(Class7)nearpubliclandboundaries.
Annualhorticulture,perennialhorticulture,cropping,dairy,animalhusbandry,grazingFloodriskneedsconsideration
Upriver Predominatelymoderate-low(Class5)andmoderate(Class4)withisolatedareasofhigh(Class3)alongtheMacleayRiver,mainlyintheeasttowardsKempsey.
Perennialhorticulture,cropping,dairy,animalhusbandry,grazing
Hillcountry Predominatelylow(Class6)andverylow(Class7)inthecentralareasouthofBellbrook,withverysmallareasofhigh(Class3)alongtheriver.Thewesternareaisdominatedbyextremelylow(Class8)towardtheboundariesofNationalPark.
Animalhusbandry,grazing
Decre
asin
g in
ten
sity
7Note:excludespubliclandsuchasnationalparksandstateforests
8Dairycowsorgoats 12
Specific considerations relating to soils and land capability
Soils
Individualsiteslocatedwithinotherwisesuitable
areasoftheMacleayValleymayhavemorelimited
landusesduetoparticularaspectswithspecific
managementrequirements.Theseinclude,for
instance,potentialacidsulphatesoilsinthelower
lyingpartsofthealluvialplains.
Manyoftheregion’ssoilsthathavenotbeen
intensivelyusedarelikelytobeacidicandthis,
alongwithlowinherentfertility,isatypicalfeature
ofAustraliansoils.Plantsotherthannatives,such
asblueberries,wouldrequireaninitialinvestmentin
soilimprovement.Thiscouldincludelimingandthe
additionoffertiliserstoreachtherequiredpHand
fertilitystatusfortheselectedcroporpasture.Organic
soilamendmentsmayalsobebeneficialinsomecases.
Itisimportantthatyouseekoutexpertadvicewhen
selectingaspecificsiteforaparticularlanduse
(referSection3.3,Services).
Soilonsteeperhillslopescanbeshallowandeasily
eroded.Itisnotadvisabletoclearslopesbymore
than15%forcroppingorgrazingpurposesonnorth-
facingslopes,evenifpermissible.
FurtherinformationisavailablefromtheResource
KitforRuralLandholdersintheNambucca,Macleay
andHastingsValleys,2008Landcare,DAFF,
NRCMA.
Land capability
Class5landissuitableforcroppinganddairying,
withsomespecificconsiderations.Thelandneeds
tobemanagedcarefullyandinasite-specific
mannertopreventsoildegradation,forexample
viacompaction,organicmatterlossorerosion.
Generally,thismeansthatcroppingrequiring
intensivetillagewouldonlybepracticalonceor
twicewithineightyears,unlesssoilsareameliorated
andmanagedwithcare,forexampleviasuitablesoil
amendments,drainageasrequiredandminimum
tillage,controlledtraffic,covercroppinganderosion
control.Rockysoilsareusuallynotsuitablefor
conventionalcropping.
Dairyingmayrequiredrainage,higherinputsthanon
betterclassland,orlowerstockingratestoprevent
soildegradation.Animalsshouldnotbegrazed
onwaterloggedpastures.Goatsareespecially
susceptibletofootdiseasesifkeptonwetground.
However,smalleranimalscouldbeeasilykept.
Perennialcropswouldbeeasiertomanagebut
wouldstillrequiregoodsoilpreparationtothemain
rootingdepth,whichcouldincludea1-yearcover
croptostartwith.
Floodrisksneedtobeconsideredwithinthevicinity
oftheriverandestuary,withpermanentstructures
tobebuiltandpositionedaccordingly.Perennial
cropsarenotrecommended,andanimalsmay
requirestandoffareasorshiftingtohigherground.
Higherlabourinputsareusuallyrequiredonsloping
land.
Adequateskillsandknowledgearerequiredto
manageClass4andespeciallyClass5land,as
indicatedinTable5-3.
13
GreenLeafFarmatClybuccaisasignificantnewagribusinessintheMacleayValley
Climate Kempsey’slocationontheMidNorthCoastofNSWprovidesitwithanumberofclimaticadvantages.This
includesamildtemperaturerange,withfewdaysabove35°C,andfewbelow2°C.Thereisalsohighand
consistentrainfall,averagingover1,200mmannually,withamonthlyaverageminimumof55mm(September)
andahighof158mm(January).
Amildclimatewithhighrainfallallowsforabroadrangeofcropandlivestockproduction,includingthe
potentialtoproduce‘counter-seasonal’crops.
Table 5-4: Average climate data 9
Parameter Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ann
Temperature
Meanmaximum(°C) 29.2 28.8 27.8 25.5 22.6 20.0 19.7 21.3 24.0 25.6 27.1 28.5 25.0
Meanminimum(°C) 17.7 17.9 16.6 13.3 9.7 7.1 5.7 6.3 9.0 11.8 14.4 16.6 12.2
Days≥35°C(#)10 0.7 0.6 0.1 0.0 0.0 0.0 0.0 0.0 0.1 0.3 0.8 0.9 3.5
Days≤2°C(#) 0.0 0.0 0.0 0.0 0.2 1.2 3.2 2.6 0.1 0.0 0.0 0.0 7.0
Rainfall
Meanrainfall(mm) 133.1 158.1 151.4 115.3 91.6 99.4 65.2 62.6 55.4 78.0 95.3 110.0 1215.7
Meandays≥1mm(#) 9.3 9.8 10.5 8.2 6.8 6.1 5.1 4.8 5.2 7.0 8.0 8.8 89.6
Theclimatevariesfromsubtropicalonthecoastalalluvialplains(12-25°C,1,216mmrainfall),tosubhumid
ontheslopesupriver(12-24°C,1,272mmrainfall),totemperateinthewesternhillcountry(8-18°C,1,515mm
rainfall).Thevariationinclimatebysub-regionisoutlinedbelow.
Table 5-5: Variation in climate by sub-region
Parameter Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ann
Alluvial plains 11
Meanmax.(°C) 29.2 28.8 27.8 25.5 22.6 20.0 19.7 21.3 24.0 25.6 27.1 28.5 25.0
Meanmin.(°C) 17.7 17.9 16.6 13.3 9.7 7.1 5.7 6.3 9.0 11.8 14.4 16.6 12.2
Meanrainfall(mm) 133.1 158.1 151.4 115.3 91.6 99.4 65.2 62.6 55.4 78.0 95.3 110.0 1215.7
Upriver 12
Meanmax.(°C) 27.7 27.4 26.4 23.9 20.9 18.9 18.3 20.2 22.2 24.7 27.1 28.3 23.8
Meanmin.(°C) 17.2 18.1 16.7 12.9 9.3 7.6 6.1 6.3 8.3 11.4 13.9 16.1 12.0
Meanrainfall(mm) 149.4 191.3 145.7 96.2 64.2 109.9 70.1 101.2 45.0 77.6 95.6 120.1 1272.2
Hill country 13
Meanmax.(°C) 23.7 22.6 20.8 17.9 14.6 12.2 11.7 13.0 16.2 19.4 22.1 23.8 18.2
Meanmin.(°C) 12.3 12.9 11.2 7.9 4.7 2.8 1.6 2.5 4.8 7.9 10.2 11.7 7.5
Meanrainfall(mm) 205.9 209.8 209.0 106.3 79.9 119.8 76.1 81.7 64.7 98.1 111.6 151.0 1514.5
9BureauofMeteorology(2016)ClimatestatisticsforAustralianlocations;Monthlyclimatestatistics;Kempsey(WideStreet)sitenumber059017,bom.gov.au/climate/averages/tables/cw_059017.shtml
10WeatherZone(2016)KempseyClimate,weatherzone.com.au/climate/station.jsp?lt=site&lc=59017
11 BureauofMeteorology(2016)ClimatestatisticsforAustralianlocations;Monthlyclimatestatistics;Kempsey(WideStreet)sitenumber059017,bom.gov.au/climate/averages/tables/cw_059017.shtml
12BureauofMeteorology(2016)ClimatestatisticsforAustralianlocations;Monthlyclimatestatistics;TanbanForestrysitenumber059031,bom.gov.au/climate/averages/tables/cw_059031.shtml
13BureauofMeteorology(2016)ClimatestatisticsforAustralianlocations;Monthlyclimatestatistics;Jeogla(JeolgaOld.SF.Site)sitenumber057017,bom.gov.au/climate/averages/tables/cw_057017.shtml
14
Water availability WateravailabilityintheMacleayValleyislessofachallengethansomeotherproductiveregionsinAustralia,
duetohighrainfall,availabilityofbothsurfacewaterandgroundwaterentitlements,andcatchmentinon-
farmdams.
SurfaceandgroundwaterextractionisgovernedbyWaterSharingPlans(WSP)inNSW.AnupdatedWater
SharingPlanfortheMacleayValleyisexpectedinmid-2016,withthefollowingfeatures:
• Almost3,500mlofsurfacewaterentitlementintheMacleayValley(noadditionalentitlementavailable)
• Noadditionalgroundwaterallocationforcommercialuse,howevermanypropertiesalreadyhave
groundwaterentitlementinuse.
ThenewWSPseparateslandandwaterrights,facilitatingtradeofentitlementwithintheValley,andalso
upstreamfromthebroaderExtractionManagementUnit(afurther20,000mlofentitlement).Thiswill
increasethepotentialpoolofsurfacewaterentitlementavailableforuseintheMacleayValley.
Manyfarmssourcewaterfromon-farmdamswhichdonotrequirealicenceifsizedaccordingtoitsmaximum
harvestableright.
Itshouldbenoted,particularlyforirrigationuse,thatsurfacewaterdownstreamofthetownofKempsey
canbeaffectedbysalinity.Whilewateravailabilityisnotanissue,floodrisksneedtobeconsideredforland
locatedwithinthevicinityoftheriverandestuary.
TheNSWOfficeofWaterhasanofficeinKempseyandcanprovidefurtherinformationonwater
infrastructureandwateravailabilityforirrigation.
TopographyThemajorityoftheKempseyregionisflat(0%slope)orslightlyundulating(1-2%or3-5%slope),makingit
idealforagriculturallanduse(ReferAppendix1,FigureA1-3).Topographyisimportanttoconsider,asthis
determinestheriskofsoilerosion,nutrientandsedimentrunoff,andtheabilitytosafelyfarmthelandwith
machineryandavoidpotentialoff-siteimpacts.
Slopegenerallyneedstobelessthanorequalto15%forsustainableagriculturallanduse,howeverthisvaries
dependingontheenterprise.Itispreferableforannualhorticulturetobeundertakenonslopeslessthan,or
equalto,5%.Croppingandpasturefordairy,animalhusbandryandgrazingisbestundertakenonslopesless
than,orequalto,10%,whileperennialhorticulturecanbeundertakenonslopesofupto15%.
Landisflattestinthealluvialplainssub-region,followedbyslightlyslopinglandupriver.Landbecomesmore
undulatingandsteeperfurtherwestinthehillcountry.Thevariationinslopebysub-regionisoutlinedbelow.
Table 5-6: Variation in slope by sub-region
Sub-region Slope description Most suitable enterprises
Alluvialplains Predominatelyflat(0%)ontheareassurroundingtheMacleayRiver,withsmallareasofslightlyundulatingland(3-5%)aroundGrassyHeadinthenorthandCrescentHeadinthesouth.Verysmallisolatedareaofsteeperland(6-10%)onthemunicipalboundaryinthenorth.
Annualhorticulture,perennialhorticulture,cropping,dairy,animalhusbandry,grazing
Upriver Concentratedareasofflatland(0%)closetotheriver,increasinginslopewestwardstowardsWillawarrin(1-2%and3-5%).Smallareasofsteeperland(6-10%)inthenorthandsouthawayfromthevalley.
Perennialhorticulture,cropping,dairy,animalhusbandry,grazing
Hillcountry Undulatingland,primarily3-5%inter-dispersedwithsteeper(6-10%)andflatter(1-2%)land.Moderateareasofsteep(11-15%)andverysteep(16-20%and21-25%)landsouthwestofBellbrooktowardsthenationalparkboundaries,withisolatedareasextremelysteep(26-40%).
Perennialhorticulture,animalhusbandry,grazing
15
Thetableonthefollowingpagesummarises
investmentopportunitiesbyenterprisetype
andMacleayValleysub-region,outliningthe
competitiveadvantagesandkeyconsiderations
foreach.Furtherdetailsaboutopportunities
foreachtypeofenterprise,alongwithmarket
considerations,areprovidedinSection7.
Whenitcomestopracticaldecision-makingfor
specificinvestments,keyopportunitieswillbe
foundwherethereisadequatelandcapability
andpropertysizetosupportyourparticular
agriculturalcommodityofinterest.Thisisshown
ataregionalscaleinTable6-1,withfurther
analysisprovidedinTable6-2.Forexample,
thiscouldincludehighervalue(Class3)land
on11-50hapropertiesforannualhorticulture
andspecialitycrops,ormoderate(Class4)
landonpropertiesgreaterthan100hafor
grazingpurposes.Indooranimalhusbandryand
hydroponicproductionmaybeplacedonpoorer
qualityland.
6 Key investment opportunities - Overview
16
BloodLimes,picturedatPipersCreekGrovefarmatDondingalong
KempseyFarmersMarketsinBelgraveSt,Kempsey
TheMacleayValleyhasarichagriculturalheritage
Table 6-1: Key investment opportunities by enterprise type and Macleay Valley sub-region
Enterprise Alluvial plains
Upriver Hill country Competitive advantage
Key considerations for production
Grazing (red meat)
Yescattle
Yes,mainlycattle
Yes •Beefisawellestablished,predominantindustryandahistoricagriculturallanduseintheregion
•Networksorcooperationwithotherproducerspossible
•Localdomesticabattoir
•Landmanagementonsteeperhillcountry
•Standoffareasorsomehigherlyinglandneededduetofloodriskonalluvialplains
•Theclimateisnotsuitableforlargerscalesheepandgoatproductioninlowerlyingareas(wetsoils,humidity)
•Shelterandriparianfencingrecommended
Animal husbandry (poultry, pigs)
Yes Yes Yes •Favourableclimaticconditions
•Smallersizepropertiesavailable
•Localdomesticabattoir
•Landmanagementonsteeperhillcountry
•Effluentandmanuremanagementifanimalsarehousedoronsmallareaswithlittlerotation
•Farmingrabbitshasbecomeexpensiveduetovirusvaccinationneeds
•Shelterneededforfreerangeanimals
Dairy Yes Mainlysmallerscale,Heifers
Limitationsinmostareas-refertolandcapability
•Establishedindustryandprocessor
•Goodpastureandfodderproductioncountry
•Scale,agistmentpotential•Effluentandmanuremanagement•Wateravailabilityforanimalsand
pastures•Technology,egmilkingshed,
electricitygeneration•Processingchoice•Standoffareasorsomehigherlying
landneededduetofloodriskonalluvialplains
•Shelterandriparianfencingrecommended
Cropping Innon-floodingareas
Smallscale
No •Goodgrowingseason•Rainfall•Mildclimate
•Floodriskonalluvialplains•Landmanagementonundulating
uprivercountry•Smallfarmsizesandlandformsmay
belimiting•Profitablecroprotationsneeded•Seedcrops(pasture,grain,vegetables)
growninisolationfromcommercialcropscouldbeexplored
Perennial horticulture (fruit and nuts)
Innon-floodingareas
Yes Suitablecropsonverysmallscale
•Potentialtogrowawiderangeofsubtropicalmildtemperate/Mediterraneanandnativecrops
•Accesstogoodqualitywaterforirrigation
•Floodriskonalluvialplains•Irrigationwateravailability•Highrainfallcandamagecrops
duringharvest•Windprotectionneeded•Limitationsposedbyundulating
country•Productgrading,packingandcool
storageneeds•Cooltransportavailabilityandcosts
Annual horticulture (vegetables, herbs)
Innon-floodingareas
Yes Suitablecropsonverysmallscale
•Potentialtogrowawiderangeofsubtropicalandmildtemperate(Mediterranean)crops
•Accesstogoodqualitywaterforirrigation
•Protectedcroppingpossibleincoolerareas(e.g.tunnels)
•Floodriskonalluvialplains•Irrigationwateravailability•Erosionriskonslopesdueto
exposedsoil•Profitablecroprotationsneeded•Productgrading,packingandcool
storageneeds•Cooltransportavailabilityandcosts•Greenhousesortunnelsshouldbe
onflatareasandwellventilated•Windprotectionrecommended
Nursery, turf & ornamentals
Innon-floodingareas
Somesites,notturf
Suitablenativeplantsinlimitedsmallareas
•SupplytoBrisbaneandSydney
•Greenhousesortunnelsshouldbeonflatareasandwellventilated
•Windprotectionrecommended
17
Table 6-2: Guidance on key opportunities considering land capability and property size for a commercially viable operation 1
Enterprise Land capability (LSC)
Property size (ha)
Considerations
Grazing (red meat)
•3-5suitable •Mediumtolargesize
•HigherLandandSoilCapability(LSC)requiredtogrowfoddercrops,hayandsilage
•SheepandgoatscanbegrazedonlowerLSCland,eghillcountry
•Adjuststockingratestopastureproductivity,whichdeclineswithincreasingLSCnumber
Animal husbandry (pigs)
•3-5suitable•6,dependingon
locationandtypeofenterprise
•Mediumsizepreferableforpigs
•Pigsareverydestructivetosoilstructureifmanagedfreerange,sosufficientareaisneededtorotatethemandreinvigoratepastures
•Ifpigsarehoused,lowerLSCisacceptableiflandisflat.Sufficientproductivelandisneededtodealwithpiggeryeffluent,forexampleviairrigationormanureuse
Animal husbandry (poultry)
•3-5suitable•LSC6depending
onlocationandtypeofenterprise
•Smalltomediumsizesuitable
•Poultrymaybedestructivetothesoilifmanagedfreerange,sosufficientareaisneededtorotatethemandreinvigoratepastures
•Ifpoultryishoused,lowerLSCisacceptableiflandisflat.Sufficientproductivelandisneededtodealwithmanure
Dairy •3-5suitable •Mediumtolargesize
•HigherLSCrequiredtogrowfoddercrops,hayandsilage
•Adjuststockingratestopastureproductivity,whichdeclineswithincreasingLSCnumber.This,andpotentlyhigherinputs,arelikelytopreventeconomicallyviabledairyproduction,especiallyforconventionalmilkprocessorsonLSC4&particularlyLSC5
Cropping •3-4suitable •Mediumtolargesize
•Lowermargincropsrequirelargerareas•Highervaluecropssuchasseedcrops(pasture,grain,
vegetables)maybeproducedprofitablyonsmallersizeproperties
Perennial horticulture
•3-4,some5mayalsobesuitable
•Medium •Productionsystems,treesizesandcropvaluesvaryandshouldbewellresearchedtodetermineoptimumpropertysize
Annual horticulture
•3-4,lowerLSClandforgreenhouses
•Dependingoncroptype
•Intensive,highvalueproductioningreenhousestructuresrequireslesslandthan,forexample,vegetableproductionoreasilygrown,lowervaluecrops
Nursery, turf & ornamentals
•3-5,lowerLSClandforgreenhouses
•Smalltomedium
•Accesstohighqualitywaterintegral•Lowsalinesoilsanecessaryrequirement
1Lifestylefarmshavingoff-farmincomemaybesmallerthanindicatedinTable6-2. 18
7 Key aspects of selected investment opportunities
Teninvestmentopportunitiesareoutlinedinthis
section,including:
7.1 Grazing-redmeatproductionfrombeef
7.2 Animalhusbandry–poultry,meatchickens
7.3 Animalhusbandry–pigs
7.4 Dairy
7.5 Buffalos
7.6 Goatandsheepmilkproduction
7.7 Cropping
7.8 Perennialhorticulture
7.9 Annualhorticulturecrops
7.10 Otherpotentialopportunities
7.1 Grazing - red meat production from beefBeefcattlehavetraditionallybeenproducedinthe
MacleayValley.Itisawell-suitedenterpriseforthe
regionandanyscaleofproduction.Opportunities
existtodevelopalocal,highqualitybeefbrand.
Current industry context
AsatJune30,2012,Australia’snationalcattleherd
stoodat28.5millionhead,ofwhich13.6millionwere
beefcowsandheifers.Thesecattlewererunon
77,164cattlepropertiesacrossAustralia.Australia
producedaround2.2milliontonnesofbeefand
vealin2012-13,ofwhich67%wasexportedto
morethan100countriesatavalueofoverAU$5
billion.Australiaistheworld’sseventhlargestbeef
producer,producing4%oftheworld’sbeefsupply
andisthethirdlargestbeefexporter.Australia’s
largestbeefexportmarketisJapan,followedbythe
USandSouthKorea.
Beefindustrybodiesinclude:
• Meat&LivestockAustralia(MLA)
• CattleCouncilofAustralia(CCA)
• AustralianMeatIndustryCouncil(AMIC)
• AustralianMeatProcessorCorporationLtd
(AMPC)
• AustralianLivestockExportCorporationLtd
(LiveCorp)
• AustralianLotFeedersAssociation(ALFA)
• RedMeatAdvisoryCouncilLimited(RMAC).
Competitive advantage
Nearlyyearroundrainfallmeanstheremaybelittle
needtobuyinfeed,providingthatpastures,fodder
cropsandstockingrates,andgrazingarewell
managedthroughouttheyear.Whenproduction
isbasedontraditionalimprovedpasturesystems,
basedonintroducedtropicalandsubtropicalwarm
seasondominantperennialgrasses,theareahas
asignificantwinter/springfeedgapduetolow
pastureproductivityandfeedquality.
Specificwintergrowingpasturessuchasryeand
otherfoddercropswouldhavetobeplanted.Low
winterrainfallmeansthatannualwintergrowing
speciesmayberequired.Therainfalldistribution
maymakemaintaininglegumesinmixedpastures
challenging.NSWDepartmentofPrimaryIndustries
hasconductedresearchonwinterfoddercrops.
Informationcanalsobyfoundatfuturebeef.com.
au/knowledge-centre/pastures-and-forage-crops/
aswellasfromresourcesproducedbyMeatand
LivestockAustralia(MLA).
Thedevelopmentofsuitable,productivepasture
basedsystemsmaybechallengingbutworthwhile
fortheregion.Thereisamarketforqualitypasture-
fedbeefandtheMacleayValleymaybesuitedto
developinganew,localbeefbrandthatisbasedon
MSAgradingandprovenance.
Asalways,beforeinvestinginbeefproduction,
seekoutadvicefrompeoplewiththerequired
experience.
19
Markets - Selling red meat
Arangeofoptionsareavailableformarketinglivestockforredmeat.Refertothebelowtableand
explanatorynotesforfurtherinformation.
Table 7-1: Sale options, red meat
Option Cattle Sheep / lambs Goats
Saleyardauction
MeatStandardsAustralia(MSA)eligiblesales
Stockyardsales
Paddocksales
Overthehooks(OTH)
Forwardpricecontracts
AuctionsPlus
Value-basedmarketing
Newsellingoptions
Produceralliances
Sheepsales
Saleyard auction-Livestockaretransportedtocentralsaleyardsandsoldtothehighestbidder.Pricesreflect
supplyanddemandinthemarketontheday.
Meat Standards Australia (MSA) eligible sales-CattlecanonlybesoldonlythroughMSAlicensedsaleyards
orlivestockexchanges.Producersandagentsmustberegistered.
Stockyard sales-Livestockareweighed,gradedandpricedforsale.
Paddock sales-Livestockareinspectedonthevendor’spropertybyabuyeroragentandsoldfromthe
paddock.
Over the hooks (OTH)-Livestockaredelivereddirectlytotheabattoirwithchangeofownershiptakingplace
attheabattoirscales.Termsofsalevarybetweenabattoirs.Livestockmustbeaccuratelyassessedforsaleto
avoidpricepenalties.
Forward price contracts-Acontractualagreementbetweenaseller(eg,producer)andbuyer(eg,processor)
tosupplyagivenproduct,atafuturepointintime,foragivenprice.Insomecasesthepriceisfixed,reducing
theproducer’sexposuretoafallinmarketprice.
AuctionsPlus-Anelectroniconlineauctionforthesaleoflivestockbydescription(previouslyCALM).
Combinesthebestfeaturesofthesaleyardsystemandallowsdirectconsignmenttotheabattoirorbuyer.
Value-based marketing-Theprincipleofbeingpaidfortheinherentvalue(qualityandquantity)ofthe
producttothebuyerandtheenduser,suchassystemsthatprovideclearfeedbackfromtheconsumertothe
producerandhasapricingsystemsupportingthesesignals.
New selling options-ApaymentsystembasedonleanmeatyieldisavailableintwoAustralianandeight
NewZealandprocessingplants.Itrewardsthoseproducerswhocarefullymanagestockforoptimumweight,
muscleandfatnessoftheirslaughterlambs.
Producer alliances-Agroupofproducersworkingtogethertoservicemarketrequirements.
Sheep sales-Thebuyerwillpayonanestimatedoractualweightofcarcasewithaskinvalueadded,
regardlessofthesellingmethodused.
20
Key considerations
Initialinvestment,infrastructurerequirementsand
timetobreakevenareallimportantconsiderations
wheninvestinginorexpandinganagribusiness
enterprise.Whenyoupurchaseagrazingproperty,
lookforgoodexistinginfrastructure,especially
fencing,torotategrazingandprovidecattlewith
wateraccessotherthanallowingcattletoaccess
streams.
Regulatoryconsiderations
Requirementsexistinrelationtovarious
regulationsrelatingtoanimalwelfare,on-farm
animalwelfare,requirementsinfeedlotsand
animaltransportation.Theregulationsapplyto
bothdomesticandliveexportanimals.Meat&
LivestockAustralia’sAnimalWelfarepageprovides
furtherinformationontheseregulations.
Thebeefindustryhasalsoinitiatednumerous
supplychainmeasurestoensuremeatsafetyand
traceability.Thesemeasuresareessentialtoensure
consumerscontinuetodemandAustralia’sred
meatproducts.
Future outlook
Likeanyprimaryproductionenterprise,thereare
arangeofrisksassociatedwiththecommercial
productionofbeefcattle.Theseincludethelossof
vitalexportmarkets,weather,diseaseandpests,
inputpricesandsaleprices.Whilemostofthese
arebeyondtheproducer’scontrol,therearea
rangeoftoolsthatcanassistyoutomanagethe
risks.
Forcurrentinformationonmarketsandprices,
refertotheindustrybodiesandorganisations
listedinthisGuide.
21
CattlegrazingintheMacleayHinterland
KempseyRegionalSaleyardsofferregularsalesforbuyersandsellers
LBoStreetButchery
7.2 Animal husbandry – poultry, meat chickensCurrent industry context
About560millionchickensareproducedand
processedannuallyforchickenmeatinAustralia,
whichequatestomorethanonebillionkilogramsof
chickenmeat.Thegrossvalueofpoultrymeatatthe
timeofslaughterwasAU$2.2billionin2013.Chicken
meatisthemostpopularformofmeatprotein
consumedinAustralia,withpercapitaconsumption
averagingmorethan44kg/year.Chickenmeathas
arelativelysmallenvironmentalfootprintcompared
withotherland-basedmeatproteinsources.
Australiaproducesaround1%oftheworld’schicken
meat,withtheUSA,ChinaandBrazilbeingthe
largestchickenmeatproducingcountries.Thereare
anumberofwayschickensarerearedandmarketed
inAustralia,butthemostcommonareconventional,
freerangeandorganic.
Australiahasstricttradepoliciesandbiosecurity
measuresinplacetoensurethecountry,andits
domesticpoultryindustries,areprotectedfrom
diseasesnotusuallyfoundinAustralia.Importsof
chickenmeataresubjecttostringentconditions,
resultinginverylimitedimportsofprocessed
chickenmeatandnoimportsoffreshchicken
meat.Thismeansvirtuallyallchickenmeateaten
inAustraliaisgrowninAustralia.Also,almostall
chickenmeatproducedinAustraliaisconsumed
locally,withlessthan5%beingexported.90%of
thepopulationeatschickenmeatatleastoncea
week,andathirdeatitthreeormoretimesaweek.
Percapita,consumptionofpoultrymeathassoared
from10.5kg(1969–70)to44.6kg(2012-13).
Conventionalchickenfarming
Unlikeotheranimalhusbandryindustries,the
chickenmeatindustryismostlyverticallyintegrated.
Typically,thismeansindividualcompaniesown
almostallaspectsofproduction,includingbreeding
farms,multiplicationfarms,hatcheries,feedmills,
somebroilergrowingfarms,andprocessingplants.
Twolargeintegratednationalcompaniessupply
morethan70%ofAustralia’sbroilerchickens.They
areBaiada(withbrandsLilydaleandSteggles)and
Inghams(ownedbyUS-basedTPGCapital),with
enterprisesinall6states.Themajorityof834,000
tonne-a-yearchickenmeatissoldonsupermarket
shelves.
Anothersixmedium-sized,privatelyownedcompanies
supplythebalanceofthemarket,witheachsupplying
betweenapproximately3-9%ofthenationalmarket.
Thereareamyriadofothersmallerprocessors.
Processingcompaniesgenerallycontractgrowers
togrowbroilerchickens,fromday-oldchicksto
thedayofprocessing.Approximately800growers
produceabout80%ofAustralia’smeatchickens
underthesecontracts.Othermeatchickensare
producedonlargecompanyfarms,oronfarms
ownedandmanagedby‘intermediary’companies.
Thesecompaniesownanumberoffarms,each
managedbyafarmmanager,andenterinto
contractswithprocessingcompaniestogrowout
chickensonalargerscale.
22
BurrawangGaianFarm’sproduceisproudlycertified‘HumaneChoice’
BurrawangGaianFarm’sHayden&BethMcMillanathome
Freerangechickenfarming
Thereisanichemarketforfreerangechickens,with
someconsumershappytopaymoreforfreerange
birds.Freerangebirdsarematuredforanextra
10-12daysandhavelessfatthanconventionally
farmedbirds.Examplesofniche,highvaluepoultry
productionalreadyexistintheMacleayValley
(seetheMacleayValleyFoodBowlwebsitefor
informationonBurrawongGaianpoultryfarm).
Organicchickenfarming
Certifiedorganicchickenfarmingmustfollowthe
rulesoforganiccertificationbodies.
Gamebirds
Gamebirdsincludespeciesofbirdstraditionally
huntedinvariouspartsoftheworldforfoodorsport.
Theyincludepheasants,partridges,guineafowl,
quail,geeseandpigeons(squab).
Opportunitiesmayexisttoproducegamebirdsfor
specialtymarkets,includingrestaurantsorbutchers.
Competitive advantage
ThemainadvantageoftheMacleayValleyregion
forchickenmeatproductionisthemildclimateand
accesstomajormarketsforthosewhodonotwant
togrowundercontractforthemajorproducers.
Markets - selling chicken meat
Ifyoudonotwanttogothroughthemajorchicken
meatproducersandsupermarkets,trytolinkwith
localproducersandproducergroups.Oneoption
istolistyourfarmathttp://flavourcrusader.com/
orwithsimilarorganisations.Trytocollaborate
withexistinglocalproducerstogetstarted.Inthe
Macleay,thereisstrongmarketdemandforHumane
Choiceaccreditedchicken,withtheownersof
BurrawongGaianpoultryfarmatBarraganyatti
willingtotrainothersinhowtoraisepasture-raised,
HumaneChoiceaccreditedbirds.
Key considerations
Ifyouareconsideringgettingintochicken
production,besureyouconsideryourinitial
investmentcosts,infrastructurerequirementsand
timetobreakeven.
Growingmeatchickensundercontracttoa
processorcanprovidearegularincomecompared
tomanyothertypesofagriculturalenterprises,butit
doesrequireahighlevelofinitialcapitalinvestment.
Emergencyandotherdiseasespresentsome
risks,particularlyasitisnotpossibletocontrolthe
movementsofwildbirds,whichcanoftenbethe
hostsofdiseaseagents.However,adherenceto
acceptedindustrybiosecuritymeasuressignificantly
mitigatesthisrisk.
Approvalforapoultryfarmdevelopmentneeds
tobeobtainedfromKempseyShireCounciland
DevelopmentApplicationsinvariablyneedtobe
supportedbyastrongcasethattheenvironment
(includingfortheneighbouringhumanpopulation)
willnotbesignificantlyadverselyimpacted.Notall
siteswillbesuitableforapoultryfarmdevelopment.
Aconsultantcanbeengagedtoassistinthe
preparationofaDA(includinganEnvironmental
ImpactStudy).Thecostsofthiswillneedtobetaken
intoaccountwhencalculatingyouroperationset-up
costs.
23
FresheggsfromBurrawangGaianFarm Pasture-raisedpoultryatBurrawangGaianFarm
Itisstronglyrecommendedthatanyoneinterested
inestablishingameatchickenfarmcontacttheir
closestchickenprocessing/marketingcompaniesto
findoutwhatopportunitiesexistforgrowingand
supplying,aswellasanyadditionaladviceonthe
bestwaytoproceed.
Regulatoryconsiderations
Poultryfarming,aswithanyintensiveanimal
farming,canonlybeundertakenindesignated
zones.Newfarmswillnormallyneedbothplanning
approvalfromKempseyShireCouncilaswellas
environmentalapprovalfromlocalgovernment,the
StateEnvironmentProtectionAuthority(EPA)or
theStateagriculturedepartmentorequivalent.
Statedepartmentsresponsibleforagriculture
canassistnewentrantstounderstandthevarious
regulatoryrequirementsthatneedtobemetby
chickenfarms(suchasplanningandenvironmental)
togainapprovaltooperate.Theycanalsoprovide
guidanceastootherregulatoryrequirements
thatneedtobemetoncethefarmisoperational
(suchasbirdwelfarestandardsandfoodsafety
requirements).
Further information
TheDepartmentofPrimaryIndustries(DPI)NSW
providessupporttothepoultryindustrythrough
itsextensionofficers,researchscientists,diagnostic
laboratories,publications,poultrykeepingcourses
andregulatoryservices(referto:dpi.nsw.gov.au/
agriculture/livestock/poultry).
DPINSWpublishedapracticalAgGuidehandbook
“Gettingstartedinfreerangepoultry”.Toorder,
visit:dpi.nsw.gov.au/aboutus/resources/bookshop/
poultry-agguide-free-range
Alsocheckout:PoultryHub:poultryhub.organd
www.chicken.org.au.
Theindustrybodiesare:
• AustralianChickenMeatFederationInc.
• AustralianChickenGrowersCouncil.
Future outlook
Forecastscurrentlyuniformlypredictcontinued
steadygrowthinbothproductionanddomestic
consumptionofchickenmeat.Onedriverfor
increasedconsumptionisthefactthatchicken
meathascontinuedtogetcheapercomparedto
othermeat.Thisisduetoimprovedbreedsandbird
management.Chickenmeatexportsareprojected
toremainrelativelylow,withmostproduction
consumeddomestically.
Thepositiveoutlookfortheindustryandpotential
increaseddemandforfreerangepoultrymay
provideopportunitiesforthosewhowanttoruna
hatcheryorgrowmeatchickens.
Up-to-dateinformationonmarketsandprices
shouldbeobtainedfromtheorganisations
suggestedinthisGuide,includingindustrybodies.
24BurrawangGaianFarm
Poultry egg production (layers)
Thebestwaytoobtaininformationonopportunities
andrequirementsforpoultryeggproduction
istoobtainacopyofthe2015NSWPoultry
EggIndustryOverview,publishedbytheNSW
DepartmentofPrimaryIndustries(NSWDPI).It
canbeobtainedat:dpi.nsw.gov.au/__data/assets/
pdf_file/0010/578422/poultry-egg-industry-
overview-2015.pdf
NSWDPIhasalsopublishedinformationspecifically
forsmallholders,whichcanbefoundat:dpi.nsw.
gov.au/content/agriculture/livestock/poultry/
production-small-scale.
25BurrawangGaianFarm
7.3 Animal husbandry – pigsOpportunitiesmayexisttoproducefree-range
pigsforspecialtymarkets,includingrestaurantsor
butchers.
DownloadafreecopyofthePROOFe-book,
‘GettingStartedinFreeRangePigs’at:
australianpigfarmers.com.au.
7.4 Dairy ThedairyindustryiswellestablishedintheMacleay
Valleyregion,withgoodnetworks,supportand
apathtomarket.Anopportunitymayexistto
producelocallybrandedspecialtycheeses.There
arealreadyanumberofsmall-scale,nichemarket
dairyoperatorsintheareatothesouthofthe
Macleay,withEwetopiaandComboyneCultureboth
producingcheesesandotherdairyproducts.
Otherexamplesofthistypeofdevelopmentinclude
KingIslandCheesesorAshgroveCheese,Tasmania.
Current industry context
About40%ofAustralianmilkproductionisexported
toAsia,predominantlyJapanandGreaterChina.
CurrentlymilkistransportedoutsidetheMacleay
regionforprocessing.
Awell-establishedprocessor,Norco,supports
growersintheregionandexploresmarket
opportunities.Strongnetworksexist.DairyNSWand
DairyAustraliaprovidestrategicdirection,research,
developmentandextensionsupporttothelocal
dairyindustry.
Competitive advantage and opportunities
• Climateandalluvialsoilssupportrain-fedpastures
• Growingconditionsforfoddercropsaregood
• Goodagronomyandsupportnetworksexist
• Localmanufacturingofbrandedspecialitymilk
productshaspotential.
Markets for milk
ThedairyindustryinAustraliaislargelyvertically
integrated.Processorscontractdairyfarmersto
producecertainvolumesofmilk.Takingthisroute
tomarketsuitspeoplewhodonotwanttoprocess
andmarkettheirownproduce.Thebestwaytoget
informationonthesupplychainistotalktolocal
producers,advisersandaNorcorepresentative,as
theyareregionallylocated.
Key considerations
Majorconsiderationsincludemarkets,initial
investment,infrastructurerequirementsandtimeto
breakeven.Globally,productionexceedsdemand
mostofthetime,whilecurrentexporttrade
agreementsarefavouringcompetitors.Fluctuations
inkeyinputpricescanoccur,especiallyforfertiliser
andfodder,whichcanaffectprofitability.Still,
specialitycheesesandothermilkproductswitha
provenancebrandmaybeabletowithstandmarket
fluctuations.Existingregionaloperatorsshouldbe
consultedtoconfirmthis.
Future outlook
TheAustralianBureauofAgriculturalandResource
EconomicsandSciences(ABARES)predictionisfor
short-termimprovementduetoincreasingdemand,
butdecliningrealtermmilkpricesinthemedium
termduetocompetitionfromotherexporting
nations(Source:ABCRural,4March2015).
26
MacleayValleycafésandrestaurants,includingNetherbyHouseinKempsey,arekeentouseasmuchfreshlocalproduceaspossible
AlastairSmedleywithhisherdofRobin-WoodAlpacasathisDondingalongfarm
7.5 Buffalos Buffalosareprimarilydairyanimals,butcanalso
beasourceofmeatandleather.Farmingbuffalo
requiresapermitorlicenceinallstatesand
territoriesexcepttheNorthernTerritoryandfarming
isbannedinsomelocations,suchastheKimberley
inWesternAustralia.
Asat2011–12,therewere65buffalofarmsin
Australiaandthenationalherdwas12,000.In2014
anaerialsurveyofArnhemLandintheNorthern
Territoryestimatedaminimumof100,000headof
free-rangebuffalo.Abuffalodairyexistsjustnorth
ofKempseyatEungaiCreekBuffalo,withnumerous
handcraftedgourmetdairyproductsbeingmade
onsite.
Australiancommercialbuffaloaretheswampand
riverinetypesofwaterbuffalo(Bubalusbubalis),or
variouscrossesofboth.Thefarmingofbuffalois
verysimilartofarmingbeefanddairycattle,except
thatbuffaloaremoreefficientatconvertingpoor
feedtoenergy.
Whilegoodmarketsexistforliveexportandbuffalo
milk,meatproductionislimitedbythelackof
abattoirfacilitieswillingtoslaughterbuffalo.Buffalo
areconsideredapestspeciesinsomestatesandon-
farmanimalsmustberegisteredannually.Alltrade
oflivestockrequiresStateGovernmentpermits.
7.6 Goat and sheep milk production Goodinformationaboutfarmingandmarketing
goatandsheepmilkproductscanbeobtainedvia
theRIRDCPublicationNo08/207availablethrough
https://rirdc.infoservices.com.au/downloads/08-207
orcontactingRIRDCvia0262714160,or
publications@rirdc.gov.au.
TheNSWbranchoftheDairyGoatSocietyof
Australiacanprovideregionallyrelevantinformation.
Findinformationviadairygoatnsw.com.auorcontact
thebranchvia(02)98261371orwritetobyerst@
nswfarmers.org.au.
7.7 CroppingDuetoitsclimate,theMacleayiscapableof
producingabroadrangeofcrops.Thetwo
variablesthatyouneedtoresearcharemarket
opportunitiesandtheavailabilityofsuitableland.
Soils,microclimateandlandparcelinformation
containedinthisGuideprovidessomedirectionon
thesuitabilityofspecificlocationsforwheat,barley,
grainsorghum,maize,chickpeas,lentils,favabeans,
sweetsorghumandsoybeans.
Typicalbroadacrecropsrequirescaleofproduction
andmostcurrentfarmsizesintheMacleaydonot
providetherequiredscale.Specialtymarketsfor
organicgrainsmayexistandshouldbeexploredon
anindividual,case-by-casebasis.
27BushtuckergrownatWigayFarminKempseyisapopulartouristattraction
Localbananasarerenownedfortheirsizeandsweettaste
7.8 Perennial horticulture – fruit, nuts, flowers, and speciality crops Basedontheregion’sclimate
andsoiltypes,therearea
numberofperennialcrops
thatcanbegrownonsuitable
farmsintheMacleayValley.
Marketopportunitiesshould
beidentifiedonacase-by-case
basis.Soils,landcapability,
andmicroclimateinformation
fromthisGuidecanbeusedfor
initialdirectiononthesuitability
ofspecificlocations.Details
onthespecificproduction
requirementsforeachof
thecropslistedbelowcan
beundertakenbydoinga
comprehensiveinternetsearch,
beginningwiththeorganisations
suggestedinthisGuide.It
isrecommendedthatyou
followupyourdeskresearch
withsitevisits,advicefrom
thelocalandindustryservice
providerslistedinthisGuide
andsuggestedbyKempsey
ShireCouncil.Forsomecrops,
financialinformationisavailable
online.However,itisessential
togetindividualadvicefroma
registeredfinancialadviser.
Suitablefruitcrops• Avocado
• Blueberry
• Cacao
• Citrus,eg
–Nativecitrustypes
–Grapefruit
–Lime
• Custardapple
• Dragonfruit(Pitaya)
• NativeDavidsonplum
• Fig
• Grape
• Kiwifruit
• Lychee
• Melon
• Persimmon
• Pawpaw/papaya
• Pomegranate
• Raspberry
• Riberry
• Tomato(fieldorhydroponic)
• Nativebushtomato
• Arangeofexoticsubtropical
fruitfromaroundtheworld
couldbegrownifplanting
stockisavailableinAustralia
Suitablenutcrops• Almond
• Chestnut
• Hazelnut
• Macadamianut
• Pecan
• Pistachio
• Walnut
Suitableornamentalcrops/flowers• Banksia
• Eucalyptusfoliage
• FlannelFlower
• Kangaroopaw
• Waratah
• Waxflower
• Leucospermum
• Leucadendron
Suitablespecialitycrops• Coffee
• NativeAniseMyrtle
• Blacktea
• Ginger
• Lavenderoil
• Lemonmyrtle(Myrtlerust
freeareas)
• Teatreeoil
28
MacleayOptionsMomacsproducts
MacleayOptionsprocessesmacadamianutsfromthroughouttheregionandalsoproducesitsownvalue-addedproductline,Momacs
7.9 Annual horticulture crops – vegetables, herbs and spicesThefollowingvegetableand
herbcropscouldbegrownin
suitablelocationsintheMacleay
Valleyifmarketopportunities
havebeenidentified.Similar
toperennialhorticulturecrops,
thesoilsandmicroclimate
informationfromthisGuide
canbeusedfordirection
onthesuitabilityofspecific
locations.Detailsonthespecific
productionrequirementsof
eachcroplistedbelowcanbe
obtainedviaacomprehensive
internetsearch,startingwith
theorganisationssuggested
intheGuide.Forsomecrops,
financialinformationisavailable
online.However,itisessential
togetindividualadvicefroma
registeredfinancialadviser.
• Asianleafygreens
• Bittermelon
• Culinarybambooshoots
• Jerusalemartichoke
• Artichoke
• GreenSnakebean
• Capsicum-fieldor
hydroponic
• Chilli
• Cucumber-fieldor
hydroponic
• Eggplant
• Okra
• Pumpkin
• Taro
• Zucchini
7.10 Other potential opportunities• Nursery,turfandornamentals
• Industrialhemp
• Widerangeofleafyherbsor
spices
–Turmeric(fresh)
–Garlic(fresh)
–Ginger(fresh)
–Seeds(sesame,sunflower
etc)
–Wattleseed
–Nativepepperberries
–Aniseedmyrtle
–Seedsprouts-hydroponic
• Mushrooms
• Timber(CalifornianRedwood,
RiverSheoak,SpottedGum,
BlackWalnut,RedCedar,
Sandalwood,RedIronbark,
SilkyOak)
• Organics(localorganics
producersarestrongly
supportedbythelocally
basedOrganicMarketing
Company).
29Ownersandproducersoforganicgarlicoperation,SweetWaterFarm,SallyAyre-Smith&MarcusSkipper
LocalgarlicrackedtodryatSweetWaterFarm
8 Getting started
Beforeyoustartdiversifyingyourfarm,orsetting
upanewagribusiness,takeafewminutestoanswer
thesequestions1:
Canyoudescribetheproposedendproducttobe
sold?
Ifyoucandescribetheproduct/saccurately,
andidentifythemarketsfortheproduct/s,then
someofthehardworkmaybedone.Ifyouare
unabletodescribetheproduct/saccurately,then
itsmarketabilitymaynotyetbedetermined.
Althoughtherangeofpossibleproductsfromanew
enterprisemaybeexciting,ifthereisnoestablished
demandormarket,orthepathwaytomarketis
unclear,thensubstantialworkmayneedtobedone
tocultivatethesemarkets.Thiscantakeyears,
financialinvestmentandpersonalcommitment.
Isthereanestablishedmarketordemandforthe
proposedproduct?
Researchingandunderstandingthemarketsfor
anewenterpriseisessential.Ifthemarketisnot
established,youmayneedtodevelopdemandfor
yourproductinordertosellit.Ifitisanestablished
market,youwillneedtounderstandanyregulations,
suchasproductstandards,thatgovernthetrading
oftheproduct.Somequestionsthatcanhelpguide
yourmarketresearchinclude:
• Whoisthecustomer(agent,wholesaler,retailer,
consumer)?
• Istheproductcurrentlytradedhereoroverseas?
• Wherearetheexistingmarketsfortheproduct?
• Whattypeofmarketsarethese,intermsofsize?
• Whereisthetargetmarketfortheintendednew
product?
• Arethereanylimitationsimposedbythemarket?
• Whatistheproductusedfor,leadingto
identificationofsubstitutesfortheproductand
thenatureofthesubstitution?
• Whatistheestimatedmarketprice(pricepoint)
thatisrequiredfortheventuretobeviable,taking
intoaccountthecostofproduction,possible
pricesofsubstitutes,andimport/exportprices?Is
thepricepointachievableandsustainable?
• Whatpackagingisrequiredandistherea
distributionmechanismavailable?
• Whatistheestimatedfuturedemand(takinginto
accounteconomicanddemographicfactorsand
factorswhichmayaffectthisdemand)?
• Arethereexistingandaccessiblesupplychains
fortheproposedproduct?
• Whatmarketingand/orpromotionalstrategies
willberequired,anddoyouhavetheexperience
todeliverthese?
1farmdiversity.com.au
30FishingvesselsatJerseyville
Areyoucomfortablewithtakingrisks?
Tryinganewenterprisecanbeariskybusiness,
especiallyifitisanewordevelopingindustry.Anew
enterpriseshouldbeapproachedinthesamewayas
anynewbusinessventureandthesamecommercial
businessprinciplesandpracticesshouldbeapplied.
Manyfarmershavetriedanewenterprise,onlyto
findthatitfailedtoreturnaprofitandhadtobe
abandoned.Enteringanewbusinessinvolvesrisk,
whichmeansyoumayneedtobepreparedtocut
yourlossesandwalkaway.
Canyouaffordtolosethemoneyinvestedinanew
enterpriseorventure?
Enteringanewenterpriseorventuregenerally
requiresfinancialinvestmentthatmaynotreturn
aprofitformanyyears.Insomecases,itmay
neverprovideanyfinancialreturn.Thehighcostof
production,climateandenvironmentalfactors,poor
management,difficultmarketaccessandchanging
marketsarejustsomeofthereasonsanenterprise
mayfail.Youshouldonlygamblewhatyoucan
affordtolose.
Cantheproposedenterprise/venturebeproduced
inyourtargetregion?
Ifthenewenterpriseiswellestablishedinyourarea,
knowledgeabouthowtoproduceitisprobably
welldeveloped.If,however,thisinformationisnot
clear,youwillneedtoinvestigatetheconditions
(eg,environment,infrastructure,logistics)under
whichitissuccessfullycommerciallyproducedto
seeiftheserequirementscanbemetinyourarea.
Fornewcropsandanimals,trialsareoftenusedto
determineifitcanbegrowninanewarea,evenif
theenvironmentalconditionsaresimilar.
Ifyouhavedecideduponaspecificindustryor
venture,doyouhaveeasyandaffordableaccessto
researchandinformation?
Successfuldiversificationrequiresresearch,research,
andmoreresearch.Beforeyouplantacrop,
purchaseananimalormakeanyseriousinvestment,
youshouldunderstandtheproductyouareselling,
howtogrowandfarmit,whatthemarketdemands
andaccessare,whattheregulatoryrequirements
are,andthetimeandmoneyrequiredtogetupand
running.Farmerswhohavesuccessfullydiversified
orbegunastart-upbusiness,haveundertaken
extensiveresearchontheirchosennewindustryand
equippedthemselveswithknowledgebeforeeven
starting.
31EversonsFoodProcessingofferslocalproducersamulti-specieprocessingfacility
Isthereanestablishedindustryandindustrybody?
Ifthereisanestablishedindustrybody,theywill
beaninvaluablesourceofinformationregarding
yournewbusiness.Theyshouldbeoneofyour
firstpointsofcontactduringyourinitialresearch
phase.Ifthereisnoindustrybody,thiscouldmean
theindustrymaystillbesmallanddifficulttoenter.
Informationmaybelimitedanddifficulttosource,
andyourproposedbusinessmaycarryincreased
risk.
Whatisyourfarminglifestyle?
Diversifyingorestablishingafarmingbusiness
requiresacommitmentoftimeandresources.If
yourprimaryreasonforlivingonaruralproperty
isforlifestyleenjoyment,thenyouneedtogive
seriousconsiderationtotheresourcesyouwillneed
toinvestinanewenterprise.Specificstoconsider
includewhetheryouwillbeawayfromtheproperty
forextendedperiodsoftime?Doyouhavethe
timetocommittoproducingtheproduct?Areyou
physicallyabletodothework,especiallyinthe
yearstocome?Andwillyouenjoythework?
Whatpersonalinterestdoyouhaveintheproposed
enterpriseorventure?
Manyfarmerswhohavesuccessfullystarteda
newplant,animalorotherventurehadapersonal
interestintheirchosenenterprise.Apersonal
interest,orotherdrivingforce,helpsyouto
staymotivatedtoundertakeresearch,establish
agronomic/husbandrypracticesand,insomecases,
sourcebuyersanddevelopamarketfortheproduct.
Arethereotherthingsthatyouwouldratherbe
doing?
Ifallthissoundstooexhaustingandthereareother
thingsyouwouldratherdo,thenyoumaywantto
reconsiderwhetherinvestinginanewenterpriseis
therightoptionforyou.
32FreshproducefromTheGreenRoomatCrescentHead
DondingalongOrganicProductsisasuccessfullocalcompanythatgrowsandvalue-addsindigenousbushfoods
TheRuralResearchandDevelopmentCorporation
(RIRDC)providesausefulresourceasafirststep
inexploringsomethingdifferentforexistingornew
farms.Thisinitiativeallowssearchingforcropand
animalproductionenterprisealternativesbytype
orlocationtodiscoverwhichmaybebestsuited
toyourfarm.Pleasevisit:farmdiversity.com.au.
Forfurtherinformationaboutagribusiness
intheregion,contactKempseyShireCouncil’s
EconomicSustainabilityUnit:
SusannahSmith
Manager,EconomicSustainability
Phone:(02)65663122
Mobile:0427271485
Email:Susannah.Smith@kempsey.nsw.gov.au
KristyForche-Baird
EconomicSustainabilityOfficer
Phone:(02)65663113
Email:Kristy.Forche-Baird@kempsey.nsw.gov.au
Council’sCustomerFirstCentreislocatedat
22TozerStreet,WestKempsey,NSW2440.
9 Further information
33Council’sfriendlyCustomerServiceCentreteamisreadytotakeyourenquiry
ManyoftheMacleay’s550,000annualtouristvisitorsareinterestedinafarmgateexperience
Appendix 1: Maps
34
GreenleafFarmatClybuccagrowslargevolumesofhighqualitysummervegetablesthroughthewintermonths
KempseyFarmersMarketsinBelgraveSt,Kempsey
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top related