An Agribusiness Initiative Outline Where is Central Queensland? - - PowerPoint PPT Presentation

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

• n 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
• pportunities 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