NIPPY'S

The Hon. CARMEL ZOLLO (14:36): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about development in the Riverland.

Leave granted.

The Hon. CARMEL ZOLLO: The minister has spoken in this place previously about the importance of the Riverland and the aim of the Riverland Sustainable Futures Fund to ensure that there is sustainable economic development in one of our most important food bowls. My question to the minister is: can she update the chamber about the progress of the project occurring in Waikerie and Moorook?

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) (14:37): I thank the honourable member for her most important question. Members may recall that over six months ago $2.61 million was committed to Nippy's to make major upgrades to its facilities. As part of a major rejig, the company planned to increase its processing capacity at Moorook by installing a new filling line for contract milk packing as well as new mixing and blending tanks, a new dispatch warehouse and upgrades to water and electricity infrastructure. In addition, the company's project includes work at Waikerie to install a new auto packing machine and feed line and to upgrade both worker accommodation and its factory shop.

I am very pleased to be able to tell the chamber that the company's progress has been good and shows that several of the milestones of the project have, in fact, been achieved. So far, I understand the company's work at Moorook has included commencing power supply, wastewater system upgrades and the complete installation of new mixing tanks. To complement these changes, the new storage facility has also been finished, and I am advised that the additional packing line has also been completed in time for use in the current citrus season.

The grant was awarded to help the iconic Nippy's business increase its packing capacity and employ more people in the Riverland, as well as expanding its milk processing operations. The grant has already had a very positive impact in the region by helping a very important local business to grow and strengthen its capacity. Supporting a company such as Nippy's, which has a very good track record in the food and beverage industry, is a tangible step in our commitment to building sustainable and innovative food industries. The $1.7 million injected into the region so far has seen significant changes at the two sites. I am advised that about 16 FTE new jobs have resulted from this work, and that is obviously good for the region.

One of the benefits of the new mixing tanks is that Nippy's can do more contract packing and work for other firms. I am advised that the company is also well advanced in production trials for a new customer, which is expected to have a very positive impact on Nippy's throughput and to bring estimated extra earnings of around $2 million a year, which is again a good outcome for the region.

I congratulate Nippy's on its very careful planning and strategic thinking. The project obviously has been well considered and is showing direct benefits. Nippy's is an iconic South Australian business producing a premium product of which South Australia can be proud. The Riverland creates premium produce and the upgrades help meet growing demand for high-quality, healthy, local products. This kind of manufacturing is a key player in the Riverland and it makes a significant contribution to the area.

In addition to its export work, Nippy's has been able to provide work for other local businesses, with 16 different Riverland based businesses directly involved in the expansion project. Once the project is complete, the investment will help provide longer-term work and obviously job security as Nippy's looks to source increased supplies of goods and services.

It is a great story for the Riverland and for the state and I would like to take this opportunity to congratulate the company for meeting these milestones by investing in the region and in Nippy's demonstrating its confidence in the Riverland and helping to promote it. Obviously we are very pleased to see that the state government fund, which this government put in place—the $20 million—is working successfully to expand businesses and create jobs.