An Agribusiness Initiative - Capricorn Enterprise...Fairbairn Dam – Emerald Irrigation Scheme •1968 decision to build Fairbairn Dam complemented by Bedford, Bingegang, Tartrus

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