The Northern Grampians Economic Report Card and Outlook aims to provide the community with a snapshot of economic health in the shire. It examines how our local economy is changing, the types of businesses we have, employment, revenue and wages and salaries. These figures help us to

determine appropriate actions to improve the economic health of the shire by seeking new opportunities and expanding on existing ones.

‘Improving the social and economic viability of the shire’

AgricultureOur vision: Attracting and encouraging new enterprise while supporting existing businesses through the implementation of targeted industry sector plans.

The agriculture sector in Northern Grampians Shire contributes over $120 million to the local economy, making it the municipality’s third largest sector in terms of output. It is also the second largest employment sector, providing 646 jobs (13.6%). The agriculture sector includes units mainly engaged in growing crops, raising animals and harvesting animals from farms or their natural habitats. The division makes a distinction between two basic activities: production and support services to production. Included as production activities are horticulture and livestock production.

www.ngshire.vic.gov.

Key result areas

Northern GrampiansEconomic Report Card and Outlook

Spring 2014

Case study:

Melaluka Trading - investing in MarnooMelaluka Trading are specialist commodity traders and accumulators for grain producers and grain industry stakeholders who buy and sell grain in Australia.

Based in Geelong, this commodity trading firm is built on the sound business practice of trusted relationships with suppliers and consumers, managing negotiations with integrity and leveraging its extensive experience of the grain trade in Australia to deliver reliable service for a competitive margin.

Grain traders Michael Fitzgerald and Simon Pritchard have built the company on the same values they built their partnership- dealing direct, having hands on contact at each stage of the process and keeping an eye to the future. They both understand local markets intimately but also worked in international trading organisations where they honed the logistics and processes they bring to commodity trading.

Melaluka Trading has recently received a notice of decision for the use and development of rural industry (grain storage facility) in Marnoo. This new development will consist of eight bunkers, seven silos, machinery shed, weigh bridge and grain sampling station.

Simon said due to Marnoo’s geographical advantages, the site was the perfect position for this type of investment.

“The site is situated on the major transport routes currently used by grain handlers, which is a bonus,” he said.

“Melaluka is looking forward to working closely with the community and using as many local suppliers as possible during the construction and running of the development.”

In the spotlight:

Global demand for foodIn the years ahead Australia’s food system will face challenges, such as climate change, population growth, changing economic conditions, competition for resources and diet-related health issues. Along with the challenges there will be unprecedented opportunities for Australia’s food industry.

The rise of Asia is transforming the world. In the 21st century–the Asian century– Asia’s rise will have profound effects on Australia’s food system. By 2050 world food consumption is expected to be 75 per cent higher than in 2007, and almost half of this increased demand will come from China alone. Australia will never be able to put food on every table in Asia, but an expanding Asian middle class offers an important opportunity for Australia’s food industry. While we will continue to be a reliable and trusted supplier of quality staple foods there is also an opportunity to supply

growing markets with high-value food products that meet increasing preferences for safe, premium goods. However, the competition will be fierce and we will have to work to seize this opportunity, building on our strengths, such as our proximity to Asia and the skills and capabilities of our workforce. Source: Australian Government National Food Plan, 2013.

Contact us: Northern Grampians Shire Council Business Services and Tourism Unit Phone: (03) 5358 0504 Email: business@ngshire.vic.gov.au

Domestic Day Trips

Intensive Animal

Sector

Number of

Businesses

Annual

Production

Volume

Annual Production

Value

Pig Production 29 17,900

tonnes

$49.5 million

Poultry Production 43 14,370

tonnes

(meat)

2.98 million

dozen

(eggs)

$75.2 million

Lamb Lot Feeding 13 842 tonnes $4.7 million

Other Intensive

Animal Enterprises

2 3.2 million

litres milk

55,000

head cattle

$23.1 million

Interest in Lot

Feeding

20

Growers/businesses

with unused facilities

18

Total 125 $152.5 million

Stawell Rainfall in mm2004 - 2014

Year Jan Feb March April May June July Aug Sept Oct Nov Dec

2004 17.2 1.8 20 14.8 13.4 73 54 48.6 43.6 11.8 60 24.4

2005 32.8 63.2 1.8 10 9.4 98.2 33.4 69 55.4 55 51.8 45.4

2006 33.2 19.4 5.8 37.2 25.8 19.8 29.4 28 43.2 4.2 9.4 7.6

2007 104.8 66.2 5.4 68.4 95.6 12 80.2 19.2 28.8 6.4 98.2 37.8

2008 33 7.6 45 11.2 64 41.6 81.6 46.8 19.8 7.2 25.4 68

2009 0 1.6 22 29.6 61.2 67.4 79.6 68.2 79.6 19.8 80.6 27.8

2010 18.6 41.2 41.8 53.4 25.6 42.4 56.8 122.2 66.6 81 79.4 82.6

2011 172.4 61.2 16.2 22.4 22 19.2 49.4 51.4 12.6 39.8 50.6 100.8

2012 18.6 24.6 43.8 15.6 23.8 50.6 53.4 61.2 31 15.2 10.4 18.2

2013 0 50.2 3.4 13.2 24.2 56.6 82.8 68.6 41.8 57 9.2 10.2

430.6 337 205.2 275.8 365 480.8 600.6 583.2 422.4 297.4 475 422.8

Ave 43.06 33.7 20.52 27.58 36.5 48.08 60.06 58.32 42.24 29.74 47.5 422.8

2014 19.4 4.8 4.8 48.6 31.2 66 35 12.8 14.2

STAWELL AERODROME : Monthly Rainfall (millimetres)

Statistic analysis:

Monthly rainfall

Industry focus:

Pig farmingThe industry is expected to grow moderately over the next five years, as production volumes continue to expand and pig meat prices rise marginally. The decline in industry participation is projected to slow, with farm size growth expected to continue. Imports of pig meat are expected to remain an important influence on the industry, although the anticipated depreciation of the Australian dollar will make imports more expensive and less attractive. Over the five years through 2019-20, industry revenue is forecast to grow by an annualised 2.1% to reach $1.1 billion. Source: IBISWorld Industry Report A0192, Pig Farming in Australia, July 2014.

Case Study:

Riverlea Australia- leading the way Rivalea is one of Australia’s leading integrated agri-food companies and is focused on delivering high quality consistent pork products to consumers. Rivalea produces 20% of Australia’s fresh pork as well as supplying stockfeed to dairy and pig farms and porcine genetics to the pig industry.

Previously known as Bunge and QAF, the business is now more than 40 years old. The company operates across a number of farming, processing and distribution sites in southern NSW & Victoria.

Rivalea owns a number of farms in the Northern Grampians Shire at St Arnaud and Gre Gre as well as utilising a valuable network of contract grower farms in the district. It has been an active investor and employer in the area since 1989 and has expanded its operations over that time to employ over 30 people locally.

Riverlea’s pig farming method allows sows to live together in group housing. Its progeny are raised in large breezy shelters (known as eco-shelters) on straw bedding. Sows and progeny can both socialise naturally.

Recently Riverlea has developed free-range farming systems targeting niche markets in Australia. Its second free-range farm is based at Gre Gre and the success of its systems and consumer demand has encouraged Riverlea to expand its free-range operations, utilising successful contract farmer arrangements.

All of Riverlea’s farming operations are quality assured under the Australian Pork Industry Quality Program - APIQ. Its free-range farms utilise a rotational grazing program that ensures environmental management is a key focus. Nutrient removal via cropping programs are essential to the long-term sustainability of free-range.

“Our challenges will be to optimise the productivity of our herd with the variability of outdoor production while providing consumers with a choice of high quality free-range pork products,” said Kenton Shaw, General Manager of Agricultural Operations for Rivalea.

“We believe this area is well suited to free-range pig farming and welcome the community support as we further develop our enterprises.”

Project update: Wimmera Southern Mallee Intensive Livestock Mapping ProjectWimmera Development Association identifies support for agriculture as a key regional priority, along with business development incorporating growth water from Wimmera Mallee pipeline and maximising ground water reserves.The Intensive Livestock Mapping project builds on a range of foundation work previously undertaken by the Department of Primary Industries and Wimmera Development Association.

The objective of this project has been to map the location of intensive livestock operations across six municipalities, to gather information to assist with potential expansions and further value adding facilities and to identify strategic plans and activities to support the increased opportunity for the agricultural sector. This strategic information will be used in conjunction with councils and State Government departments to help drive strategic assistance with economic development, training and employment opportunities. The project was commissioned by the Wimmera Development Association and has identified that there are currently eighty seven enterprises involved in intensive animal production in the Wimmera Southern Mallee, with an estimated total production value of $152.5 million per annum. There are a further 18 businesses with unutilised intensive animal production facilities, and at least 20 sheep and lamb producers interested in more structured lot feeding, under the right circumstances.

A range of business development opportunities, areas for collaboration, supply chain development, and other strategic directions for intensive livestock in the Wimmera Southern Mallee have been highlighted through this project.

As a direct outcome of this project, Wimmera Development Association has facilitated a number of poultry industry investment/information forums. In 2015 sessions are planned for the pig, lamb and beef industries.