AUSTRALIAN MILLING GROUP

The Hon. R.P. WORTLEY (14:37): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about the Australian Milling Group.

Leave granted.

The Hon. R.P. WORTLEY: As a food lover, I have a keen interest in ingredients of all sorts. Lately, I have been working (as we all should) on being healthier. I have listened to advice in the media from various allied health professionals about how to balance food and exercise and how to increase the intake of vegetables to get the daily target of two servings of fruit and five servings of vegetables each day.

Another part of my health mission has to been to look at the source of daily protein servings which would usually be meat, chicken or fish. However, these are not the only good sources of protein and, increasingly, beans or pulses such as lentils have made an appearance in my diet. I am sure I am not alone in this change. Will the minister advise the chamber about recent developments to support South Australia's export of this important food source?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises) (14:38): It is with great pleasure that I thank the member for this most important question and his interest in pulses. Indeed, South Australia is a prime agricultural producer and has a significant interest in pulses. I understand that lentils currently earn South Australia's farmers between $55 million and $75 million at the farm gate.

An honourable member: How much?

The Hon. G.E. GAGO: Between $55 million and $75 million at the farm gate—this is lentils alone. Lentils are a premium source of protein, served daily on millions of dinner tables around the world. They are a very important ingredient in cuisines, particularly in places like India, for foods like dal. South Australian farmers have seen the financial benefits of participating in the lentil market, which is why the total acreage under crop has increased by 37 per cent, I am advised, in the past year.

I am pleased to tell the chamber that the South Australian government has recently helped to support this important market by allocating up to $390,000 through the Regional Development Infrastructure Fund towards a new storage and processing plant for pulses near Port Wakefield.

The Australian Milling Group is building a major facility at Bowmans, between Balaklava and Port Wakefield; a regional site well positioned at the gateway of Yorke Peninsula and within easy reach of Adelaide. The Australian Milling Group's primary business is the acquisition, processing, packaging and distribution of peas, beans and lentils. The RDIF grant will contribute to the cost of installing transport, power, telecommunications and water infrastructure needed to support this new facility. The total project cost is $8 million—so this is good leverage use of South Australian money—with additional investment likely as business develops. I am advised that the project is likely to begin shortly.

This project will enhance the regional economy, and I am advised that it is expected to create 25 new jobs within four years of operation and to double production from a projected 40,000 tonnes in 2011 to 80,000 tonnes in 2013. The RDIF plays an important role in the implementation of South Australia's Strategic Plan by helping to meet a number of targets for regional jobs, investment and export earnings. The development of this processing and storage facility will add value for growers and deliver social and economic benefits for the region.

What it means is that we will be value adding to the pulses that are grown in South Australia. Instead of bulk shipping peas, beans and lentils overseas for sorting and packing, as I understand currently occurs, they will be sorted by colour and then packaged before sending them to market. We are always very keen to invest in value-adding projects. It translates to more local jobs for South Australians and is a great example of investment in growing an industry that is obviously good for this state. It is also an excellent program in terms of helping to add to the diversification of our agriculture sector, which is something else we are attempting to do. Of course, we intend to increase diversification to improve our long-term sustainability across all of our agriculture sector.