an agribusiness initiative - capricorn enterprise...fairbairn dam – emerald irrigation scheme...
TRANSCRIPT
An Agribusiness Initiative
Outline
• Where is Central Queensland?
• What is Growing Central Queensland?
• History of agricultural development in CQ
• Review of CQ agribusiness
• The way forward
Central Queensland?
Where the bloody hell are ya?
Growing Central Queensland Concept • Fitzroy Industry and Infrastructure Study
• Renewed interest in water infrastructure
• United we stand
• RDAFCW facilitation
• Getting started
• GCQ Review
• Beef 2015
CQ Agricultural Production • Rockhampton; Gladstone; Emerald; Biloela
• 118,000 km2
• 230,000 people
• Fitzroy Basin
• >$1billion agricultural production annually
• Beef cattle; Cropping; Irrigation
• Sub-tropical, highly variable climate
History of Agricultural Production • 1853 – The Archer Brothers hit town
• Pastoral industry commences – squatters; selections; settlements
• Kidston Group Settlement Scheme
• Immigration of workers
• Germans, Russians, Italians
Irrigated Production • 1922: Nathan Dam on the Dawson River proposed
• 1926: First irrigated farms at Theodore
• 1930 to 1987: Weirs constructed along Dawson but no Nathan – the growth of the cotton industry
• Irrigation area eventually expands to about 7,000 ha
2015 1928
Brigalow Scheme • Post WW2, cattle industry continues to expand
• 1962: Brigalow Land Development Scheme
• 1962-1977: Clearing of 4.5M hectares in Fitzroy Basin
• Introduction of new pasture species
• Increased cattle production by >250%
• Development of roads, electricity, telecommunications and communities.
Broad Acre Dryland Production
• 1948-1956: Qld-British Food Corporation commences broad-acre grain production (Central Highlands)
• 200,000 ha acquired (Clermont to Springsure)
• Corporation failed but showed grain and oilseed production was feasible
• Beginning of dryland production (Now up to 700,000 ha cropped)
Fairbairn Dam – Emerald Irrigation Scheme • 1968 decision to build Fairbairn Dam complemented by
Bedford, Bingegang, Tartrus Weirs
• Emerald Irrigation Scheme developed 14,000 ha supplied by channel system and 11,500 ha supplied downstream along Mackenzie River
• Wide range of agricultural enterprises supplied including cotton, horticulture, peanuts, cereals
• Enabled growth of a vibrant prosperous community for over 40yrs
Development on Hold 1990s
• Natural Resource Management • vegetation clearing stopped; soil erosion issues; impacts on Reef
recognised; BMPs introduced
• Water Resources Studied • water resource plan; regional water supply study
• water trading introduced; separate title for water
• water for urban/industrial uses vs agriculture
• Water Storage Studied but not progressed • Nathan Dam; Connors River Dam; Rookwood Weir; Eden Bann
Weir
• Privately-funded, incremental development
Catalysts for Renewed Interest • Global demand for food
• Deloittes fantastic five 10%+ growth: agribusiness, gas, tourism, international education & wealth management
• Australia’s competitive advantage – we are situated where we can meet demand
• Federal White Papers • Agricultural competitiveness • Northern Australia development • Infrastructure Australia Audit • Water Infrastructure Options paper
• Central Queensland opportunities – water, infrastructure, land & people.
Review of CQ Agribusiness
• Literature review • Policy Federal and State
• Economic forecasts
• Natural resources review • Water resources planning
• Qld Land Audit
Stakeholder Consultation
Key Messages from GCQ Review
• Distinct Geographic investment regions
• New infrastructure • Water Infrastructure
• Impediments and opportunities in existing infrastructure • Supply chain, transport & logistics
• Industry Restructure • Alternate capital models • Farm debt • Investment ready opportunities
Key Messages from GCQ Review
Distinct geographical investment areas
• McKenzie River Agricultural
Corridor • Dawson River Agricultural
Corridor • Fitzroy River Agricultural
Corridor • Gladstone Agribusiness
Precinct
Water Infrastructure
Other New Infrastructure
Impediments and Opportunities in Existing Infrastructure
Industry Restructure
• Alternate capital/business models
• Farm debt
• Investment ready opportunities
Alternate Capital/Business Models Cooperatives
Beef Model
Farm Debt/Capital 20,000 acres vs $200,000,000.00
Investment Ready Ag? 30, 000 Head Feedlot Proposal
Current position: • Suitable site with water
allocation • Guaranteed access to cattle
supply • Contracted feed supply • DA approval • International Environmental
accreditation • Indigenous employment
providers • All weather access to road and
rail • Direct containerisation to port • Within 70km of three abattoirs Opportunity: Take or pay contract on 7.8 million tonnes of beef
What sits behind this deal? • Cattle buyer to source cattle
within specs (May be 150 suppliers in this area)
• Breeder contracts premium linked to higher grade kill specs
• Water allocations • Feeder contracts • Contracted access to
containerised rolling stock from abattoir to port
• Shipping contracts • Port access • Killing contracts abattoir • Environmental approvals • DA local, state and federal • Who puts it together?
Immediate Priorities • Currently $140 million in investment opportunities
• CQUniversity Partnership – smarter regions • Industry training and education for investment ready projects
• Build alternate investment models for agriculture through cooperative and external capital models
• Fund Eden Bann and Rookwood Weirs
• Fund our current $140 million investment opportunites
• Cost benefit analysis of supply chain impediments and opportunities to be ready for funding
• Advocate and promote Growing Central Queensland as a regional brand (e.g. Darwin event November 8-10 & NQ Economic Summit?)
• Build an inclusive regional membership model that creates an investment ready environment for investors and opportunities.
The Way Forward
• Maintaining cooperation and communicating the vision
• Recognition and price premium for the Growing Central Queensland Brand
• Attracting further capital into agricultural investment
• Supply chain readiness for product from Eden Bann and Rookwood
• Continue to kill distractions
Summary
• Collaboration is key
• Successful history of development
• Build on strengths
• Seize opportunities
Growing Central Queensland – Its time for the next harvest!
Growing Central Queensland We are open for business
Thankyou!
Anne Stünzner www.rdafcw.com.au