IRIS Tasmania: Opportunities

The State's agricultural industry is well established and innovative but has potential for expansion. Current industry strengths are in wool, dairy, beef cattle, vegetables and fruit, with many smaller sectors showing growth, such as vineyards, plants for the pharmaceutical industry and speciality foods.

Tasmania has the following advantages over over States:

a mild climate, clean air, rich soils, high quality water
four distinct seasons
an international reputation for quality, with many products commanding premium prices
established overseas food and beverage sales into established markets
easy access to the Australian market and niche export markets
the ability to supply out-of-season fresh produce to northern hemisphere markets
island isolation, resulting in absence of major pests and diseases
GM moratorium
vegetable processing.

Key points of contact

Brand Tasmania is an independent body formulated to promote a place-of-origin branding for Tasmania. It offers information and services relevant to each sector.

The State of Growth, which is a framework for developing primary industries in Tasmania. From this a number of initiatives are reported on regularly. A number of Industry Action Partnerships have been established to support industry such as organics, dairy, stonefruit, wool, wine, beef, wild fisheries, aquaculture, potatoes, fresh and processed vegetables and other specialty crops.

The Farmpoint website, established under the SMART farming initiative, provides comprehensive information on a range of issues relating to the agricultural industry, including:

regulations and controls affecting Tasmanian farmers
resources
research and development
market repots
grants and funding
climte change
water
on-farm management.

Areas of opportunity

Numerous opportunities exist for investment in food production and value-adding processes in the agricultural sector.

Tasmania is relatively weed, pest and disease free and provides significant advantages for cropping. An extensive knowledge base exists in the State for the growing of a variety of crop types and there are also opportunities for producing products to replace imports.

Dairy Industry

The Tasmanian dairy industry is looking to grow with a target of 750 million litres by 2010. According to Dairy Tas, the dairy industry has the potential to grow to 1 billion litres over the next ten years, depending on the availability of irrigation water. There is scope for investment in current dairy farms and for new dairy farm conversions.

The Department of Primary Industries and Water has established extensive information sources and support for the dairy industry, including an industry partnership to develop the dairy industry and a number of supporting programs. These include:

The Pastures Plus$ program provides applied skills training for dairy farmers in dairy nutrition, pastures and business management.

The Dairy 500 program is designed to foster growth and development for the Tasmanian dairy industry.

The 20/12 Pasture Business project aims to improve the productivity of Tasmanian dairy farmers through on-farm coaching to maximize pasture utilisation and improved use of supplements and fertilisers.

Red meat industry

The Department of Primary Industries and Water provides extensive information sources and support for the red meat industry. A number of support programs have been developed including:

Red Meats Targets Program
A comprehensive industry improvement program addresses a number of key opportunities and priorities for the red meat industry, including:

increased production of beef from pasture based feeding systems with the aim of achieving at least 1,000 kilogram live weight gain per hectare per year
integrated meat production into irrigated cropping enterprises
growing and utilising more pasture for red meat production
improving performance of feedlot finished steers.

PROGRAZE
A grazing management skills course for sheep and beef producers which puts pasture and animal management skills together to improve grazing decisions on the farm and more effectively meet production and sustainability goals.

Wool

The Department of Primary Industries and Water has established extensive information sources and support for the wool industry.

Due to climate, geographic location and flock structure, Tasmania is well placed to capitalise on a number of opportunities.

Market access
Opportunities have arisen because of two market driven issues: the Tasmanian image and the development of production systems which allow wool to be produced in a sustainable manner while minimising pesticide residues in wool. Many growers ae exploring ways of including environmental accreditation within their production systems. Tasmanian wool is well placed to supply markets demanding zero or low pesticide residue wools. Another opportunity is to develop integrated marketing of the Tasmanian wool clip to achieve an identified and sustainable premium for Tasmanian wool. This initiative is being championed by local wool brokering firms.
Technological changes in testing wool
This has enabled wool producers to make significant advances in wool classing, genetic selection and wool marketing.
Disease and breeding advances.

The 8x5 Wool Profit Program aims to assist Tasmanian wool producers to achieve an 8 per cent annual return on assets managed for wool production within five years. The program provides co-ordinated training, research and extension systems for the effective delivery of technical information and training, as well as access to benchmarking, best practice information, group improvement initiatives and a Statewide wool profit awards program.

The current 8x5 Wool Profit Program is delivering the results of these projects through a network of wool production and grower groups.

Given that Tasmania is well placed to capitalise on a number of opportunities unique to its environment, the industry has established a quality assurance scheme, Tasmanian Quality Wool, which aims to establish and maintain access to high value markets.

Vegetable industry

A number of opportunities exist for Tasmania's vegetable industries:

better ultilsation of the shallow marginal soils
development of market opportunities
increased use of centre pivot irrigation and a commitment by growers to adopt new technology, particularly in the area of water development
continued development of sustainable water resources
disease and breeding advances.

The Farmpoint website is a portal to Tasmanian farming information.

The Department of Primary Industries and Water provides information and support to the vegetable industry, including new crop development.

Fruit and nut industries
- Fruit
  The fruit industry in Tasmania has developed over many years to the extent that it is dynamic and diverse, with many new growers and a high level of new investment. Tasmania's reputation for high quality produce enables strong development of export markets.
  
  Fruit Growers Tasmania was formed in 2004 after the amalgamation of the Tasmania Stonefruit Growers' Association and the Tasmanian Apple and Pear Growers' Association. The organisation is designed to represent the interests of Tasmania's fruit growers.
  
  A Fruit Growers' Tasmania Scholarship is available through the University of Tasmania to help develop employment and research opportunities for the industry. The aim of the scholarship is to have students continue their study into fruit growing research and development to assist in solving potential problems.
- Nuts
  Tasmania's climate is horticulturally suited to the production of walnuts, hazelnuts and chestnuts. Opportunities for walnut growing, in particular, have arisen in recent years with the recognition that the State could meet some of the huge demand in Europe, and especially Germany, as well as significant import replacement opportunities. The industry is organised by Webster Walnuts Tasmania.
  
  The possibility exists for similar enterprises for hazelnuts and chestnuts, however a careful assessment of the long-term world markets for these nuts would need to be undertaken.
Wine industry

Tasmania occupies a niche in the Australian wine industry, focusing on high quality, cool climate wines and is continuing to grow in stature.

There are approximately 13 major and 15 smaller commercial wineries in Tasmania. Contract wine making services are made available to growers with a range of commercial arrangements. Export markets are particularly important for larger producers. Cellar door sales are particularly important for smaller producers. All levels in the wine industry are progressively investing in the development of on-site cellar door infrastructure. From sales desks to fully integrated café/winery facilities, these investments show the increasing industry integration with tourism.

A reduction in the 2008 wine grape harvest highlighted the need for more growers.

There are opportunities for investment in new integrated vineyards, wineries and wine marketing businesses. These opportunities exist for a wide range of business sizes. Investors may wish to specialise in one aspect of the value chain depending on the specific skill sets.

All investments in Tasmanian wine will contribute to realising the industry vision 'To be recognised internationally as a world leader and innovative producer of premium cool climate wines'.

An advisory program based on industry planning best practice implementation and vine improvement is available through the Department of Primary Industries and Water. The Department provides information on grape growing and winemaking. It also maintains links with the industry through Wine Industry Tasmania and other organisations.

Wine Industry Tasmania, established in 2006, is the peak body for Tasmanian grape growers and winemakers. Its focus is to build the profile of, and market, Tasmania's premium cool-climate wines.

Organic industry

Tasmania has a natural, clean, green image and Tasmanian organic products rate highly in quality against other national and international products. The organic industry in Tasmania is worth around $20 million, with the national market at $400-500 million. The industry is expanding but more large-scale operators are needed. The incentive is the premium available for organic products,WS?WS?nancial returns being comparable or exceeding conventional farming q??q?? property achieves 'in conversion' status.

Further information is available from the Department of Primary Industries and Water.

Specialty crops

Tasmania's agricultural industry also includes a range of specialty field crops which have been successfully commercialised:
Japanese strawberries, red fuji apples, kaboocha and buckwheat are examples of successful new export crops.

A number of specialised non-food agricultural industries exist in Tasmania that have significant impacts on niche global markets. These include:

raw opiates for pharmaceutical use
pyrethrum
essential oils (edible and non-edible). Volatile oils are extracted from peppermine, spearmint, parsely, boronia, blackcurrant, fennel, dill, mountain pepper, lavender, clary sage and hops
lavender products
cut flowers, flower bulbs, seeds
seaweed-based fertilisers.

Other new industry opportunities

New opportunities being developed include:

greenhouse capsicums
wasabi
kyocho grapes
truffles
herbs for both culinary and medicinal purposes
exotic muchrooms such as the Asian maitake
sprouts.

Tasmania

State of Success

Agriculture Opportunities

Tools:

Links:

Key points of contact

Areas of opportunity

Other new industry opportunities