RIVERLAND SUSTAINABLE FUTURES FUND

The Hon. G.A. KANDELAARS (14:45): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about a recent investment by the state in regional South Australia.

Leave granted.

The Hon. G.A. KANDELAARS: Since the late 1960s the avocado industry in South Australia has continued to expand. Avocados are a perennial fruit, an Australian premium produce available all year round. Recent years have seen bumper crops in South Australia due to the combination of hot and humid weather. Can the minister provide members with an update of the funding provided to the local horticultural sector in the Riverland?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (14:46): I thank the honourable member for his most important question. I am delighted to inform the chamber of another successful grant from the Riverland Futures Fund to a local applicant, C.F. Fechner and Co. This grant reflects this government's commitment to the regions and embodies one of the seven strategic priorities promoting South Australia as a clean, green food bowl.

The Riverland is Australia's major horticultural producing region, offering a cost-effective manufacturing potential, a strategic location, a stable workforce and an enviable lifestyle, too. It is a very beautiful area. Ninety-eight per cent of South Australia's avocados are grown in the Riverland region—

The Hon. R.L. Brokenshire: They're good for you, too.

The Hon. G.E. GAGO: —with approximately 67 per cent going to interstate markets, and domestic consumption of avocados continues to rise. The Hon. Robert Brokenshire interjects by saying that they are healthy for you, and they are, indeed. Not only are they very delicious but they are very good for you as well.

Colin Fechner commenced operations as a sole trader in 1990 and has, over time, come to pack avocados for 18 other Riverland growers. The operation has substantial experience and support from the broad avocado industry. Mr Fechner is active in the avocado industry, previously sitting on the board of a peak industry body, Avocados Australia, for 10 years.

CF Fechner and Co., which is based in Ramco, was successful in its application for over $110,000 from the Riverland Sustainable Futures Fund towards the modernisation of its packing plant, the expansion of the shedding and loading areas and the extension of the existing cool room.

The project is expected to have a wider impact also by helping to expand on the existing competitive advantage that the avocado industry holds, increasing market responsiveness and providing business with succession opportunities.

In addition to the creation of a job for a full-time employee, three new casual workers in the first year and two casuals each year after the project are hoped to increase throughput of packed avocados from 95,000 trays in 2011-12 to 130,000 trays by 2015.

These targets align with the five strategic criteria considered in the assessment process, including: contributing to the SASP targets of economic growth, total exports, business investment and employment; contributing to the RDA roadmap through food innovation and beverage production and diversification; the regional prospectus value adding to food and beverage manufacturing outputs and internal expansion of Riverland business; and also local government strategic plans. The RDA and Riverland have offered their support to the project, along with the Loxton Waikerie council which has noted the growth of seasonal and permanent employment opportunities.

The $222,000 project, which is expected to be completed later this year, will use local contractors and will also allow the company to store significantly higher quantities of fruit for existing avocado growers and improve quality control measures while also changing the management structure of the business so that the business can be run without relying on a single person. I am advised that this business has been known for its ability to provide consistently high quality fruit throughout the year. I understand the expansion will help build on the competitive edge gained by providing fruit into high value markets.