Address to Gippsland Local Government Network, June 17, 2011

Address to Gippsland Local Government Network, June 17, 2011

Alex Arbuthnot AM, chairman, Agribusiness Gippsland Inc.

[email protected]

How much is Gippsland agriculture worth?

Source: ABS 2008/09 value of agricultural commodities.

East Gippsland GippslandGross value Local value Gross value Local value

650,332,393 619,939,980 990,851,865 955,628,871

TOTAL GROSS VICTORIAN FIGURE: $10,200,508,779

GIPPSLAND OFFERS…

- 85% of Victoria’s electricity - 26% of Australia’s oil - 42% of Australia’s LPG - 23% of Australia’s natural gas - 33% of Victoria’s dairy production - Increasing horticultural production - Significant forest resources

Areas generating 80% of farm profits: 1997

Ratio of rural land value to agricultural production value per hectare. Source: Barr 2005

Ratio of land value per hectare to production value per hectare, 1997

Water projections

Range of projected change in rainfall relative to 1990 levels (%)

AMERICA: Food insecurity 2009

Source: US Bureau of Economic Research

Definition: “Households without consistent access throughout the year to adequate food for active healthy living for all household members.”

Victoria: Food stress 2011• Source: Victorian Food Supply Scenarios, VicHealth April 2011

Even older… but no fewer Victorian farmersSource: Wilkinson DPI, 2010

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Food-future Gippsland• Horticulture in Macalister Irrigation District• More intensive dairying in dryland regions• Off-river water capture in East Gippsland• Larger, corporate (family-owned) farms• East Gippsland grain belt/double cropping• Value adding and agritourism sector growth • Preferential water/power supply for agriculture• Land clearing for food production• Converting hobby to food farms• Differential farm rates• Consolidated food processing assets

GIPPSLAND NEEDS…

Future water resource scopingPopulation impact study on Gippsland agribusiness

A Gippsland Food PlanEmployment & trainingCost-competitive power

Transport/logistics synergies

THANK YOUhttp://agribusinessgippsland.com.au