FOOD PLAN

Mr O'BRIEN (Napier) (15:50): As the convener of the Premier's Food Council, I thought it appropriate that I keep the house up to date on developments in the new Food Plan 2007-10. The food industry is an important and often underestimated component of the South Australian economy. Gross state food revenue in 2005-06 was a staggering $10 billion—just about equivalent to the state budget in its dimensions. Notwithstanding the current drought conditions, the government considers the food sector as a potential growth industry. It is committed to delivering appropriate assistance to emerging food producers and providing the conditions in which established businesses can continue to flourish.

The headline target of the plan is for 8 per cent annual growth in the total value of finished food. Finished foods are either processed foods or those that have the highest value in their natural state (such as oysters). This debate occurred within the Food Council. There was an initial focus on processed foods, but we realised that aquaculture, in particular, ought to be very much confined within the strategy of the Food Plan, so that is the definition to which we are working and that is where we are expecting to drive our 8 per cent growth.

Having had considerable involvement in the development of this plan, I can inform the house that the strategy was to pick a growth figure that was both challenging yet realistic and then ensure that all aspects of the plan contributed to that growth figure. This is standard business practice and my experience, both as a small to medium business operator and working in the corporate sector, and having done a Masters of Business Administration, has very much convinced me that this is the way in which we ought to be driving the Food Plan. The emphasis on finished food was to ensure the greatest potential value adding was captured here in South Australia.

The Food Plan is broken down into three pillars, namely, industry development, innovation and product development, and market development. The three pillars will assist emerging companies along their total business chain from production capacity—and a lot of this is starting pre farm gate—to production development and, ultimately, to the market. The main vehicle for delivering this assistance on the ground will be five industry development officers (IDOs) who will assist emerging companies to develop business plans and provide information and direction on services available under the product and market development pillars. The IDOs will also act as gatekeepers to state and federal grants and services available to food producers. Most of this work will occur outside the metropolitan area, and I would think it may be of some interest to members opposite.

This role was previously undertaken by 12 government officers (FIDOs) operating across the 12 state regions under the South Australian Strategic Plan. The truth of the matter is that not all the 12 state regions have an equal capacity to develop food industries and government expertise should be channelled into areas that do. The role of the IDO requires a broad set of skills. They must possess business acumen, extensive industry knowledge and contacts, and they must be aware of the broad range of services available at both state and federal levels.

It was the view of the council and the Minister for Agriculture, Food and Fisheries that emerging South Australian food companies would be better served by a smaller number of more highly skilled officers. The pay scales of the new officers have been set and adjusted upward to reflect their higher skills set. The target of 8 per cent growth will be reached only if government support and assistance is directed to the right types of companies.

One problem in the past has been that too much government effort has been expended on people who might best be described as hobbyists; that is, extremely small-scale producers who see their businesses as a hobby or lifestyle choice. There is little benefit to the state in providing resources to mums and dads whose only ambition is to earn a little spending money by selling homemade jams or other products at producer markets. Ultimately, these mums and dads do not want their time wasted by attending business seminars and having government officials attempting to assist them in developing business plans.