PROFILE 2015/16

PEOPLEPEOPLE

PLACE

INNOVATIONINNOVATIONGROWTHGROWTH

Photo courtesy of Shane Strudwick

CONTENTSIntroduction from the Chair 2

The Murraylands

- Regional Food Production 4

- Location map 6

- Our Assets 7

Murraylands Food Alliance

- Priorities 8

MFA Members 10

Murraylands Food Alliance

- Benefit to the Economy 14

1

I’m proud to introduce to you the Murraylands Food Alliance (MFA).

The Murraylands Food Alliance (MFA) is a collective of the Murraylands biggest food producers, processors and manufacturers. Collectively we produce more than 48 per cent of the Murraylands gross regional product.

As MFA members, we see an opportunity in collaborating to develop strategies which will increase the competitiveness of the Murraylands Food Industry. Collectively we directly employ more than 3,300 staff with flow on effects resulting in an additional 1,700 jobs in the region.

Members are involved in different aspects of the food value chain. From primary production of animal and horticultural product, to value adding food manufacturers, packers, processors, wholesalers and retailers; all of whom combine to generate local jobs in the region and provide food to national and international markets.

All members agree that the Murraylands is a great place to do business. The level of industry support, available infrastructure and community have all contributed to their individual success. Nevertheless the pressures of today’s

business environment mean that there is a need to be vigilant in looking for ways to improve their individual and collective competitiveness, and as a result members see value in being part of the MFA.

MFA members have high potential for growth and ambitions for the next five years are strong. Current estimates indicate a combined growth rate of 22.7 per cent or a compound growth of 4.2 per cent. This will see the MFAs direct output from the region increase from $910.5 million to around $1.1 billion.

Murraylands Food Alliance members are strongly committed to increasing the competiveness of the Murraylands Region and ensuring the Murraylands develops a reputation as premium producer of clean green food and wine.

David McKay Chair, Murraylands Food Alliance Chief Operating Officer, Thomas Foods International

MESSAGE FROM THE CHAIRMURRAYLANDS FOOD ALLIANCE

Murraylands Food Alliance Chair David McKay.

direct regional output

$910

.5

MILL

ION

$1.1

BIL

LION

0

100

200

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400

500

600

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800

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$MILLION $

$

2011/12 2016/17

INTRODUCING THE

2

Figures quoted in this document have been collated directly from feedback from MFA members for the 2011/12 Financial Year.

WHO WE AREThe Murraylands Food Alliance is a collective of the Murraylands largest food producers, processors and manufacturers who collectively account for 48% of the Murraylands gross regional product.

WHAT WE DOTogether we aim to advance the productivity of the Murraylands food industry through initiatives related to the four priority areas of People, Place, Innovation and Growth.

OUR AIMTo foster relationships to further develop and support the Murraylands region.

3

REGIONAL FOOD PRODUCTION & PROCESSINGTHE MURRAYLANDS

CARROTS9,896 tonnes produced (ABS 2011/12)34% of the state’s carrot production

GREEN-LEAF VEGETABLES

6 million heads of iceberg lettuce per annum1000 tonnes of broccoli per annum1 million heads of cauliflower per annumLargest producer of lettuce & broccoli in South Australia

DAIRYCapacity to process over 30% of the state’s milk Largest cheese factory in SAProduction on the Lower Murray Floodplain and shores of Lake Albert and Alexandrina

LAMB & BEEFProcess 50% of South Australia’s lamb production Australia’s largest lamb, mutton & beef exporter Australia’s 3rd largest processor

4

OLIVES 5,381 tonnes produced (ABS 2011/12)56% of South Australia’s Olive production Australia’s largest Super High Density Olive GroveHome to the peak Industry Body – Australian Olive Association Ltd

MUSHROOMS 6,240 tonnes annuallyLargest producer in SA70% of SA’s mushroomsExport to all states

ONIONS 62,728 tonnes produced (ABS 2011/12)50% of South Australia’s Onions 19% of Australia’s Onions

POTATOES 173,290 tonnes produced (ABS 2011/12)50% of South Australia’s Potatoes15% of Australia’s PotatoesExports 80% washed potatoes to eastern states

PORK Capacity to process over 20,000 pigs per weekProduce 70% of South Australia’s pigsProcess 65% of South Australia’s pigs

POULTRY Produces 50% of South Australia’s meat chickensHatch 1 million chicks per week

5

Lake Alexandrina

Gulf St Vicent

EncounterBay

MENINGIE

PINNAROO

COONALPYN

10

SA VIC

SA NSW

SYDNEY

MELBOURNE

KEITH

7

6 9 8

2 1

11

4

5

36

10

MANNUM

LOXTON

LAMEROO

ADELAIDE

SWANREACH

TAILEM BEND

VICTORHARBOR

PORT WAKEFIELD

MURRAYBRIDGE

THE DCOF KAROONDAEAST MURRAY

MID MURRAYCOUNCIL

SOUTHERNMALLEE DC

COORONG DC

SA

NSW

VIC

0 20 4010 km

www.mappingsa.com.au

Murraylands Council Regions

Major Road

Railway Line

Gas Pipeline

1 Big River Pork2 Costa Group: Adelaide Mushrooms3 Longridge Olives4 Oakville Potatoes

5 Parilla Premium Potatoes6 R.G.F.M. Pty Ltd7 Rivapak8 Swanport Harvest

9 Thomas Foods International

10 Beston Pure Foods11 Inghams Enterprises

MURRAYLANDS FOOD ALLIANCE

INDUSTRYThe food industry is big business in the Murraylands. The regions ten biggest food companies together have a combined sales revenue of $1.5 billion. These companies are involved in difference facets of the production, processing and manufacturing of animal products such as lamb, beef, pork and cheese and vegetables including potatoes, onions, carrots, olives, and green vegetables.

Innovation and investment has been key to the development of the Murraylands food industry. Murraylands Food Alliance members collectively spend more than 2 million annually on R&D projects relating to productivity and efficiency gains through water use efficiency, bio energy, refrigeration, genetics and robotics. To further support this innovation MFA members spent more than $32m on capital expenditure in the 2011/12 financial year.

INFRASTRUCTUREThe region’s key position on strategic national freight routes is a key advantage to businesses in the region. Located an hour east of Adelaide the region is positioned on key transport routes to Melbourne, Sydney, and Adelaide. Planning is also underway to develop a local intermodal, which will increase transport & logistics efficiencies and support logistics companies already located in the region.

The region has access to power, gas and water. The Murray River and Mallee aquifers provide an adequate supply of clean water, gas is available through two gas pipelines, and power is available throughout the region. Planning is also underway to develop a bio energy powered industry precinct which will not only be a great outcome for the environment but also decrease power costs for businesses located in the precinct.

COMMUNITYHaving a proud local and skilled workforce is critical to the MFA. The MFA alone employs more than 3,300 people with an intention to employ a further 847 people in the next five years. MFA members place high importance on their staff living locally and reinvesting their income within the region.

The Murraylands is home to several quality schools, hospitals and entertainment venues which are essential to supporting a local workforce. Together with local government the MFA is working to ensure these services are of the highest standard into the future and to ensure that the Murraylands continues to be a proud multicultural community with a long and passionate history in the food industry.

$32 Million Capital Expenditure*

$1.5 Billion Combined sales revenue*

$2 millionAnnual combined Research & Development expenditure*

All statistics are provided my the MFA members for the 2011/12 financial year

OUR CONTRIBUTION THE MURRAYLANDS

mfa industry statistics

7

PRIORITIES

MURRAYLANDS FOOD ALLIANCE

WORKFORCE DEVELOPMENT

COMMUNITY INFRASTRUCTURE

WORKPLACE DEVELOPMENTMFA CLUSTER FACILITATION

PROUD REGIONAL FOOD INDUSTRY

POSITIVE SOCIAL IMPACT

PLANNING FACILITATING GROWTH

UTILITIES & SERVICES DEVELOPMENT

A prime focus of the MFA has been to develop the relationships between member companies and to gather an understanding of the strengths that can be developed within the group.

Members also note that one of our greatest barriers to growth is workforce development. The combined MFA workforce has a significant migrant employment base and we want to see more of our employees staying long term in the region.

The Murraylands is a region primed for growth and we aim for the Murraylands for it to be recognised as a premium food producing region. The Murraylands as a great place to live work and play and we are actively looking for ways to increase the pride in our regional food industry.

Members are also aware of the positive social impact that we can contribute through working with council and being more involved in community projects and initiatives. We encourage and look forward to being involved in more pro-active planning policy, including increasing access and reducing costs to utilises such as power, water, waste and logistics infrastructure to meet the industry’s growing needs.

PEOPLE PLACE

The members of the Murraylands Food Alliance was established in November 2013. Members soon realized that there was opportunity to be gained in

Creating an effective networking forum

Leveraging the strength derived as a group to apply influence over critical areas beyond what would be possible individually, and

The establishment of cooperative business development opportunities

The MFA has identified four key ares which they have prioritised for future work: People, Place, innovation and Growth

8

KNOWLEDGE SHARING

SUPPLY CHAIN INNOVATION

LEADING USE OF TECHNOLOGY

R&D PARTNERSHIP DEVELOPMENT

ECONOMICALLY VIABLE

ENVIRONMENTALLY SUSTAINABLE

LONG TERM VISION

A STRONG REGIONAL VOICE

MFA Members are focused on increasing the competitiveness of our regional food industry. To achieve this we have committed to sharing knowledge of our individual companies, discovering common areas for industry improvement and being open to exploring new and innovative concepts.

Our Members already lead industry in supply chain innovation and we continually seek to implement new technology and access new markets to provide a competitive edge. We wish to forge strong R&D relationships to tailor these opportunities to fit the individual and collective business need of our members. Packaging, consumer research, energy alternatives, genetics and irrigation technology have all been raised as focus R&D areas.

Over the next five years, all MFA members have indicated that they have positive expansion plans. To achieve this growth we need to meet the needs of our consumers to be environmentally and ethically sound.

MFA members will work together to develop a united vision and ensure that we advocate infrastructure and utility provisions that support this vision’s expansion opportunities.

Collectively we realise that the MFA will be a strong regional voice for the region. We will speak together to build the community pride in our regional food industries, and gain the ear of business and government to ensure that our region has the infrastructure and service requirements needed to support future industry growth.

INNOVATION GROWTH

Photo courtesy of Shane Strudwick 9

MFA MEMBERS

BIG RIVER PORKMURRAY BRIDGE

Big River Pork, was established in 2001 and is a state of the art processing facility that manages pork production from the farm to retail. The export accredited abattoir has the capacity to process over 20,000 pigs per week and has a workforce of 230 people.

Big River Pork acts as a service provider to four shareholders and other clients. The pork is boned or sent as carcasses for further processing; frozen pork offal is exported to many overseas countries and provides fresh packed pork offal for the Singapore market for the 4 shareholder companies.

The purpose built factory, has just recently undergone extensive expansions to its chiller capacity and boning room to increase efficiencies and processing potential.

Big River Pork‘s shareholders include Auspork, B. E Campbell, George Weston Foods and Hurstbridge Abattoirs.

www.bigriverpork.com.au

COSTA-ADELAIDE MUSHROOMSMONARTO

The Costa Group’s Adelaide Mushrooms business is a state of the art mushroom growing facility with 32 growing rooms which was completed in 2010. Costa Adelaide Mushrooms produces on average 120,000 kilos per week and have a workforce of 266 people. The business uses other farming bi-products to generate mushroom substrate onsite enabling them to grow, pick and pack mushrooms daily.

Costa Adelaide Mushrooms is the second largest mushroom farm and most modern mushroom cultivation facility in Australia. The “farm” utilises state of the art processes to produce over 6,240 tonnes annually of primarily White Mushrooms as well as some Swiss Brown Mushrooms which are both packed for local and interstate markets.

Currently Costa Adelaide Mushrooms sells mushrooms whole in cartons direct to the markets. The business is also producing pre-packs including sliced mushrooms and supplies 90% of the pre-packaged mushrooms in South Australia. It is exploring new value added products and expects growth in this area. The business had the space to double as the market grows.

www.costaexchange.com.au

There are eleven members of the Murraylands Food Alliance. These companies include Big River Pork, Costa – Adelaide Mushrooms, Longridge Estate, Parilla Premium Potatoes, Oakville Potatoes, Rivapak, RGFM Pty Ltd, Swanport Harvest, Beston Pure Foods, Thomas Foods International and Inghams Enterprises.

Profiles on our members are showcased over the next few pages. We welcome inquiries from other businesses who may be interested in joining us to build the Murraylands Food Industry.

10

LONGRIDGE OLIVESCOONALPYN

Located 21 km North East of Coonalpyn, Longridge Olives is currently the largest Super High Density (SHD) olive orchard in Australia.

Privately owned by the Rowntree family, Longridge Olives comprises 87,000 specially selected olive trees. The 60 hectare estate consists of varieties including Picual, Barnea, Arbequina, Arbosona, Koroneiki and FS17.

The secure underground water supply, Medierranean climate and experienced grove management ensures that the orchard provides a consistent and reliable supply of high quality 100% Certified Australian Extra Virgin Olive Oil either in bulk or packaged to customer specifications.

Currently the majority of olive oil produced is sold domestically to leading Australian brands; some is exported to the USA, and Japan (under another label); and a small percentage is packaged into two litre casks and sold via local IGA supermarkets and speciality tourism and retail outlets.

www.longridgeolives.com.au

OAKVILLE POTATOESNILDOTTIE

Established in 1997, Oakville Golden Sunrise is a 7000ha modern farming operation, which harvests and packs potatoes on a daily basis to supply markets nationally. Oakville Golden Sunrise operates three farms at Parrakie, Peebinga and Nildotte with washing and packing plant at Nildotte employing 120 full time and seasonal employees.

Oakville Golden Sunrise is responsible for developing proprietary breeds of washed potato including the Delight Potato Range and as a result there are high levels of product innovation.

First launched onto the market in 2011, the Delight Potato Range is made up of three varieties – Cream Delight, Golden Delight and Red Delight all of which are available exclusively through Woolworth’s stores nationally 52 weeks of the year.

www.delightpotatoes.com.au

PARILLA PREMIUM POTATOESPARILLA

Parilla Premium Potatoes is a dynamic vertically integrated horticultural business supplying potatoes, carrots and onions across Australia and overseas. Privately owned by the Pye family, Parilla Premium Potatoes has more than 120 full time and seasonal workers. Head office is located at Virginia with operations at Pinnaroo, Peebinga, Robe and Parilla.

The company produces more than 55,000 tonnes of fresh produce per year to supply both fresh and processing markets in Australia and overseas.

Parilla Premium Potatoes has established its own Onion Packing Shed and Cool Storage Facilities at Parilla where onions are graded and packed into bags or cartons before being sold. The packing shed operates from February to November and constantly has a crew of 40-50 people. The Cool Storage facilities that are used to store onions as well as potato seed and have the capacity to store up to 3000 tonnes of produce.

www.parillapremiumpotatoes.com.au

11

RIVAPAKMANNUM

Rivapak is a purpose built, state-of-the-art onion packing facility located in Mannum, by the River Murray that provides colour vision onion grading and packing for its grower shareholders.

Established in 2000, Rivapak processes 15,000 tonnes of brown, red, mild and white onions per year for its grower shareholders. Rivapak has installed a modern highly flexible cold storage facility with a capacity in excess of 3 500 tonnes to enable onions to be supplied consistently for 12 months of the year.

Rivapak is a grower and wholesaler consortium with five shareholders and employs 40 people.

A pre-packing plant has also been installed which enables the company to provide different requirements to the supermarket trade.

SWANPORT HARVESTMURRAY BRIDGE

Swanport Harvest is an innovative, quality assured horticultural company, known for its successful brand Staycrisp. Established by the Ruggiero Family in 1975 on the banks of the Murray River, this third generation company is well known in the market for its range of premium, wrapped, fresh produce labelled Staycrisp.

Swanport Harvest proudly offers freshly cut Iceberg Lettuce, Broccoli, Cauliflower and Cos Lettuce in its range of preservative free products. The Staycrisp Iceberg Lettuce and Staycrisp Cauliflower is especially unrivalled as they are cut in the field, wrapped and vacuum snap-chilled within minutes of harvest, increasing the product’s freshness and extending its shelf life to beyond 2 weeks.

Swanport Harvest are the largest growers of lettuce and broccoli in South Australia and have a 20% supplier market share within SA. Staycrisp Iceberg Lettuce and other Swanport Harvest products are available through Woolworths stores in SA & interstate and through most other local independent retailers.

www.staycrisp.com.au

RICHARD GUNNER FINE MEATSMT BARKER/MENINGIE

Richard Gunner Fine Meats (RGFM) is a premium ‘paddock to plate’ producer of fine meats. A private family business, RGFM was established in 2001 and now has seven retail outlets, a production facility in Mt Barker, and an online store, in addition to the existing family farm at Meningie known as Gemlake Pty Ltd. Gemlake operates the Wanderriby feedlot, Coorong Designer Angus, Stony Point Stud and Suffolk sheep enterprise. The family business employs more than 80 staff between these operations.

Under the brand of Feast! Fine Foods, RGFM aims to understand production better than any other meat retailer in Australia and supply Australia’s best restaurants with premium quality meat.

Feast! Fine Foods aims to understand customer requirements and to bring the best produce direct from the farm to the consumer.

www.feastfinefoods.com.au

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BESTON GLOBAL FOOD COMPANY - BESTON PURE FOODSMURRAY BRIDGE & JERVOIS

Beston Pure Foods is an arm of the ASX-listed Beston Global Food Company (BGFC). Established in 2014 the company has investments in the Dairy, Seafood, Meat and Health & Nutrition industries.

In July 2015, BGFC acquired the dairy processing facilities, formerly owned by United Dairy Products (UDP), at Murray Bridge and Jervois in South Australia. Beston’s aim is to restructure the operations and build a broader presence in the domestic and export marketplace including new product lines under its Beston Pure Foods label.

The Murray Bridge processing facility features an end-to-end cheddar manufacturing system, whey separation room and nano-filtration plant. The plant produces cheddar and artisan hard cheeses such as Romano and Pepato.

The Jervois processing plant features an advanced milk production system, cheese making facilities, butter maker with 3,000 kg/ hr capacity, a recently installed modern whey powder plant and various ancillary and packaging equipment. The site will continue to produce high value protein ‘Lactoferrin’ - a key ingredient in infant formulae that is in short supply - from the state-of-the-art facility.

www.bestonglobalfoods.com.au

THOMAS FOODS INTERNATIONALMURRAY BRIDGE

Thomas Foods International is Australia’s largest 100% family owned meat processing company with a long-term commitment to the meat export industry through quality, reliability and value-adding.

Established in 1988 and based in Murray Bridge, Thomas Foods International employs more than 2400 people across the group which has processing facilities in South Australia, NSW and Queensland as well as distribution facilities in Adelaide, Coffs Harbour, Brisbane, Darwin and USA. Significant investment in lairage and processing facilities, wastewater treatment and sustainable energy generation has made it one of Australia’s top five meat processors demonstrating market-leading expertise in procurement, processing and exports.

Thomas Foods International exports to more than 80 countries with airfreight consignments of 1.3 tonnes regularly shipped globally. Its Thomas Farms branded products are also available at supermarkets across the country.

www.thomasfoods.com

INGHAMS ENTERPRISESMONARTO

Monarto is currently home to the Inghams Hatchery and Breeder Farms. Inghams Enterprises Pty Ltd is one of Australia’s largest privately owned companies and Australia’s largest poultry producer of meat and layer chickens and turkey.

A vertically integrated business, Inghams contracts growers to grow out the hatchlings to full size at which time the chickens are processed at the Inghams Bolivar Plant. The Murraylands is also home to several businesses contracted as Inghams Broiler and Breeder Farms.

The Monarto hatchery currently employs 60 staff and a further 80 staff are employed by their contracting partners in the Murraylands.

Ingham’s Enterprises Pty Ltd built their Hatchery at Monarto in the early 2000’s. Ingham’s Enterprises Pty Ltd currently has plans to expand their Hatchery facility and further develop their breeder and free range operations within the Murraylands.

www.inghams.com.au

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SALES REVENUEIn 2013, the Murraylands Food Alliance’s combined sales revenue was over $1.5 billion (including operations in other parts of the state and country). Over 3,300 people were employed in these member companies Australia wide.

In the Murraylands region itself Econsearch estimated that the total revenue from operations by these companies specifically from the Murraylands region to be $910 million and employing approximately 1,847 fte.

PRODUCTION VOLUMESMore than 2.5 million tonnes of produce and 1.5 million litres of other product in 2013 made its way to local, intrastate, interstate and international markets* from the member companies of the MFA in 2013. This equates to a total volume of 8,520 containers and 42,500 pallets of food produce that was produced or value added by MFA members.

CAPITAL EXPENDITUREThe consolidated Capital Expenditure of the member companies in 2013 was almost $52 million with member companies spending significant amounts on expansion and upgrading of facilities, sustainable energy initiatives, farm equipment and machinery. In doing so they stimulated the local and state economies as they confidently prepare themselves for future growth in their businesses and prosperity for the region.

ECONOMIC IMPACTAnalysis by Econsearch has indicated that the Murraylands Food Alliance contributes $769 million in Gross Regional Product (GRP) which is 48 per cent or almost half of the 2011/12 entire Murraylands GRP ($1.61 billion). This results in 6,917 full time equivalent (FTE) jobs which is 47 per cent of 2011/12 regional employment in the Murraylands region.

BENEFIT TO THE ECONOMYMURRAYLANDS FOOD ALLIANCE

48%

GROSS REGIONAL PRODUCT (GRP)

the murraylands food alliance contributes almost half of the 2011/12 murraylands grp

2013

8,520

42,500

containers of food produce

pallets of food produce

1.5 million litres of other product*

2.5 million tonnes of produce

* ‘other product' relates to either dry or liquid cheese whey, which is on sold to other processors.14

FLOW ON EFFECTSEconsearch compared the direct economic impacts against the value added (GRP equivalent for these industries) and employment for food related agriculture and manufacturing sectors (i.e. excluding wine grapes, wine and other beverage manufacturing and seafood catch and manufacturing).

The Murraylands Food Alliance contributes:

54 per cent to food related value added ($670million in 2011/12) in the Murraylands region and

37 per cent to food related employment (fte) (5,005 fte jobs in 2011/12) in the Murraylands region

In addition Econsearch estimated that the sectors where the flow-on impacts are likely to be the greatest are:

GRP: beef cattle (25 per cent), ownership of dwellings (9 per cent), road transport (8 per cent), sheep (8 per cent) and retail trade (6 per cent).

Employment (fte): beef cattle (47 per cent), retail trade (9 per cent), road transport (7 per cent), sheep (6 per cent) and personal and other services (4 per cent).

54% 00

3 % 5,005 5,005

murraylands food related value added

murraylands food related employment

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SUPPLIERSSuppliers to MFA members benefited greatly from a staggering total expenditure of more than $441 million in 2013, of which $388 million (87.9%) was spent within the state and an additional $53 million (12.1%) was spent on interstate suppliers.

SUPPORTING INDUSTRIESThe MFA has also attracted businesses to the region, relevant to supporting the scale of its activities. Without being exhaustive, examples include; attraction of businesses in the following areas:

transport and logistics services

irrigation supplies and services

electrical supplies and services

fertiliser supplies

employment services.

441

$53 million on interstate suppliers

$388 million spent within the state

87.9%

12.1%16

THE MURRAYLANDS FOOD ALLIANCEFostering relationships to further develop and support the Murraylands Region.

Proudly facillitated by

Regional Development Australia Murraylands & Riverland Inc with the support of Primary Industries & Regions SA Food and Wine Co-Innovation Cluster Projects

www.murraylandsfoodalliance.com.au

info@rdamr.com.au

P +61 8 8535 7170