Livestock and Meat Sector

Ms BEDFORD (Florey) (14:17): My question is to the Minister for Agriculture, Food and Fisheries. Minister, can you update the house about opportunities in the livestock and meat sector in South Australia?

The Hon. L.W.K. BIGNELL (Mawson—Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Tourism, Minister for Recreation and Sport, Minister for Racing) (14:17): I thank the member for Florey for that question, and acknowledge her as a member of the Australasian Meat Industry Employees Union.

Agriculture is South Australia's most significant industry, worth over $16 billion each year. There is growing global demand for protein, and South Australia can help meet that demand with our high quality livestock products produced in our clean, green environment. Emerging markets for meat include China, South-East Asia and the Middle East. South Australia is a significant producer of livestock products, as we know, and the latest monthly figures show exports from South Australia in the meat and meat preparation sector are up 15 per cent on last year.

These exports have been a shining light in the South Australian economy; however, we also know it is an industry which experiences fluctuations. I have been talking to industry members, including Graham Smith, Federal Secretary of the Australasian Meat Industry Employees Union, about jobs in the sector. I notice Mr Smith is in parliament today, and he had the beef at lunch—it is good to see him supporting the industry and jobs in his industry, as he always does.

We know both JBS at Bordertown and Teys at Naracoorte have recently stood down workers. There are a number of reasons behind this, including high prices for sheep and cattle, a shortage of livestock, pressure of drought, and a record price for red meat. The high volume of meat exports, and an increase in the live export trade, has dramatically reduced stock numbers right across the country. Current kill levels mean there is no room to allow for restocking. What this means is that we need to brace for some more hard times ahead in the red meat sector. But people like Mr Smith are optimistic and tell me the industry will improve again with time, and it's part of the cycle that the industry often experiences.

The state government is playing its part to support and develop the sector. For example, the Regional Development Fund has contributed $2.5 million to Thomas Foods International at Murray Bridge to upgrade their beef boning facility, resulting in the creation of 200 jobs; $165,000 has gone to Samex at Peterborough to replace a boiler, creating 15 jobs; and the state government provided $120,000 to the Migrant Resource Centre to support migrant workers and their families at Bordertown, where JBS is located. The government has also contributed $140,000 towards the development of the South Australian Sheep Industry Blueprint, which aims to increase production by 20 per cent and is due to be launched soon.

I must also acknowledge there are sectors of the meat industry which currently have room for large growth. Chicken meat production and processing is the fastest growing livestock industry in South Australia. During the past decade, it's grown faster here than in any other state in Australia, and with global demand for chicken meat also rising, South Australia is primed to help meet this demand. South Australia has emerged, too, as a leading processor of pork in Australia. We anticipate new jobs being created in both pork and poultry in the very near future.

Can I congratulate the member for Florey for her wonderful production called Australian Products—a shopping guide. She has put it out to her constituents just in time for Easter, and it's got a list of local supermarkets in her electorate and all the Australian produce that's available there, and the South Australian produce is in bold print. It's a very handy guide for those of us who are out there trying to ensure that we keep jobs right here in South Australia and help support farmers and food manufacturers in South Australia. So, I commend the member for Florey for her wonderful work.