Almond Centre of Excellence

Mr WHETSTONE (Chaffey) (15:49): I rise today to speak about a very important initiative that I would like this current state government to support; that is, the Almond Board of Australia has put a business case to both the South Australian and Victorian governments to establish an almond centre of excellence. The project cost is expected to be around the $10 million mark, and there will be significant industry investment.

The board is seeking state government funding to help construct what is believed to be the first purpose-built facility that incorporates all aspects of development for the almond industry. The Minister for Agriculture has previously told the board to apply for the South Australian River Murray Sustainability Program, but at this stage it provides no guarantees. Given the scope of this project and what it could provide to the South Australian almond industry, the South Australian economy and the Riverland, I am calling on the state government to provide concrete support for an investment in critical research and development.

The Riverland has a very high unemployment rate of above 7 per cent, and with vacant properties as a result of the Small Block Irrigators Exit Grants coming back onto the market there is an opportunity for this project to help grow jobs and boost our economy. Almond demand is growing at nearly 10 per cent per year in Australia and globally, this year producing 70,000 tonnes of kernel. It is the largest horticultural export industry in the nation and worth approximately $450 million.

The board believes that an opportunity exists to develop advanced production systems that will provide a move forward in terms of crop yields, water use efficiency, reduced fertiliser inputs, harvesting efficiencies, disease and pest management, product quality, and diminished food safety risk. The establishment of the almond centre of excellence will develop a field laboratory to conduct trials on varieties suited for both large-scale and smaller orchards. It is planned to look at new concepts to develop highly efficient and sustainable production systems that will be available to the new industry entrants looking to adjust from less viable crops, and for when the existing orchards require renewal.

The facility will not only be focused on production but will also assist in market development by showcasing the industry, its product and production practices to export buyers from key markets. Not only would it be a state-of-the-art facility offering training and research facilities for the industry but the centre is expected to attract researchers and scientists from across the world.

South Australia produces 20 per cent of Australia's almonds, and the Riverland has the majority of almond growers in the state. An almond centre of excellence would continue to enhance the Riverland's reputation as a premium food bowl of South Australia and provide important long-term research and development in the nut industry.

The Premier, the Minister for Regional Development and the Minister for Agriculture have all been briefed on this initiative. I am urging the state government to invest in a project like this, and I warn the government that we cannot afford to miss this opportunity. The proposal has been put to the South Australian government and it has been put to the Victorian government. If the state government misses this opportunity, Victoria is waiting in the wings to take it on.

This project is something that could help grow this very buoyant industry. I am led to believe that current prices for almonds are around $8 per kilogram. With droughts and the forecast of upcoming water shortages in the United States, which is the world engine room for nut production, we could see those prices go over $10 per kilogram. That is music to any nut producer's ears, but it is also music to the ears of this state government, which is looking for winners in our state's economy.

It is about this state government investing in an industry that is on the boil; it is looking to grow, and there is plenty of opportunity for the nut industry—not only in almonds but in pistachios, walnuts and macadamias—to be a powerhouse in the horticulture industry here in South Australia.