ALMOND INDUSTRY

The Hon. G.A. KANDELAARS (14:41): Thank you, Mr President. If I may—

Members interjecting:

The Hon. G.A. KANDELAARS: Can I continue, Mr President?

The PRESIDENT: The Hon. Mr Kandelaars, you have the call.

The Hon. G.A. KANDELAARS: I seek leave to ask the Minister for Agriculture, Food and Fisheries a question about the export of almonds.

Leave granted.

The Hon. G.A. KANDELAARS: The minister has spoken before about assistance to the Riverland following a significant drought. Previously, the minister has given details of some of the projects which have been assisted to help secure—

Members interjecting:

The PRESIDENT: The Hon. Mr Kandelaars, can you go through your brief explanation from the top once again?

Members interjecting:

The PRESIDENT: Order! I want to hear this.

The Hon. G.A. KANDELAARS: If I may, I will start again, Mr President. The minister has spoken before about assistance to the Riverland following a significant drought. Previously, the minister has given details of some of the projects which have been assisted to help secure the diversification of the economy in that important food producing area. Can the minister update the chamber on the project which supports exports of almonds?

The Hon. J.S.L. Dawkins interjecting:

The PRESIDENT: The Hon. Mr Dawkins knows he is out of order by interjecting. The Minister for Agriculture, Food and Fisheries will be heard in silence.

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (14:42): It is with great pleasure that I report to the chamber that, as a result of the $1.9 million grant from the Riverland Sustainable Futures Fund—a highly successful fund—Almondco, an iconic Riverland company based at Renmark, has completed a project which is poised to see it set new industry standards for food safety. Almondco is certainly not a minnow when it comes to the almond business, representing close to 30 per cent of the nation's harvest.

The Hon. D.W. Ridgway interjecting:

The Hon. G.E. GAGO: Look it up, you lazy thing. They are so lazy they even want me to provide definitions of words for them, Mr President. That is how lazy they are. The Hon. David Ridgway doesn't know what the meaning of 'minnow' is and he wants me to provide a definition for him. Look it up!

The PRESIDENT: Minister, you have the call and you should do what I do and ignore most of their interjections.

The Hon. G.E. GAGO: Thank you, Mr President. Thank you for your protection.

The PRESIDENT: You don't need it.

The Hon. G.E. GAGO: Almondco's business represents close to 30 per cent of the nation's harvest and is supplied by more than 80 per cent of Australia's almond growers. This season, this cooperative is expected to process approximately 20,000 tonnes of quality Australian almonds, of which about half are South Australian-grown almonds. The 2013 Almondco crop is forecast to be 50 per cent more than last year's record company intake, providing new employment opportunities for the region.

Almonds are one of the premium food products of which South Australians can be very proud, and our production is growing. Almond production in South Australia has almost doubled in the last 10 years to 12,500 tonnes and, while a significant quantity of our almonds is consumed locally, $40 million worth of almonds were exported out of South Australia in 2011-12.

This $4.2 million project began in November 2011 and enabled the Almondco cooperative to purchase and install pasteurisation equipment at its Renmark premises so that its customers can be assured that even natural almonds are fully pasteurised and food safety risks from any micropathogens on the surface of the almond are minimised. The equipment needed to provide this assurance includes two pasteurisation towers, a cooling tower, a unique conveying system and an automated bulk bag filler.

I am advised that the new equipment has been undergoing trials and commissioning work during April and early this month. It is expected to be ready for full commercial production this week. I understand that where possible this Riverland icon has also chosen local contractors and service providers to help it deliver the project for its cooperative members.

We have seen that communities around the world are becoming more conscious of food safety standards and, in any business, meeting consumer expectations is vital. Commissioning a full validated pasteurisation system for natural almonds is expected to give Almondco a distinct market advantage, particularly with our national competitors, and it will also enable the business to diversify by giving the company the capacity to process other food and nut products on a fee-for-service basis.

I am advised that meeting this standard helps open up further export opportunities and bolsters the long-term sustainability of the business and enhances its competitive advantage in the national and international marketplace. I congratulate Almondco on its commitment to innovation and excellence. It is a great example of the ability of South Australian business to produce high quality product—an exemplar of one of the Weatherill government's key priorities, premium food from a clean environment. Of course, our commitment to regional South Australia is evident, too.

Members would be aware of the importance of the Weatherill government's priority concerning premium food and wine. South Australia's regions are the backbone of our food and wine industry which I am advised generates $6 billion in revenue annually and employs one in five South Australian workers. It is imperative then that we continue to support the industry because as you know, Mr President, South Australian food and wine is some of the best in the world.

The government continues to support regional South Australia and it has certainly helped it to create a sustainable economic development in one of South Australia's most important food bowls, which has been devastated by prolonged drought. As at May 2013, approximately $15 million has been committed to projects in the region, creating about 219 FTE positions and generating a total investment of over $33 million.