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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2024-03-07 Daily Xml
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Public Works Committee: South Australian Produce Markets Post-Harvest Biosecurity Precinct Project

Mr BROWN (Florey) (11:12): I move:

That the 55th report of the committee, entitled 'South Australian produce markets post-harvest biosecurity precinct project', be noted.

The Department of Primary Industries and Regions, in collaboration with South Australian Produce Market Limited, proposes to construct a post-harvest biosecurity precinct for the South Australian Produce Market located in my electorate of Florey. The project is a major milestone project for South Australia that will transform the horticultural industry and has received strong support from industry and state and commonwealth governments.

A fumigation service with pressure cooling and an X-ray sterilisation technology service will be established to deliver a treatment service to growers that will enable export of all South Australian produce to overseas destinations. The precinct will also potentially benefit South Australian businesses across the food, health, medical and agriculture sectors.

The South Australian horticulture industry is valued at $1.4 billion at the farm gate and represents over one million tonnes of produce. The industry employs 13,500 direct staff and 24,000 seasonal workers and provides fresh fruit, vegetables and nuts to the South Australian community daily. South Australian Produce Market Limited facilitates the exchange of produce between growers, wholesalers, retailers and consumers. It is expected that this project will enable growth of the horticulture sector revenue from $3.5 billion to $5 billion by 2030.

The capital cost of the development is $49 million and will be funded through a mix of state and commonwealth funding as well as commercial and private investors. Currently, the project is in the tendering process, and I can say that it cannot come soon enough.

The Post-Harvest Biosecurity Precinct will be located on the site of the South Australian Produce Market in Pooraka. This initiative will minimise fruit fly impacts in South Australia and other pest diseases, grow and protect the sector, take a leadership position in biosecurity and provide export efficiency. Addressing biosecurity issues takes many forms and a significant fruit fly outbreak can cause the market and consequently the state to face critical food availability and contamination issues that need to be managed.

The South Australian Produce Market has stated that, as of November 2023, there had been 45 outbreaks of Queensland fruit fly, known as Qfly, in the Riverland, causing considerable stress for growers. A Mediterranean fruit fly outbreak occurred in South Australia in 2020, which cost the market $1 million as there was no facility of this kind located here, therefore a fumigation and separate X-ray sterilisation technology service will serve as critical infrastructure to address these biosecurity issues.

The biosecurity precinct will provide benefits to the SA horticultural industry and include minimising supply chain disruptions, ensuring environmental stability and safeguarding the continuity of supply and market access for overseas and interstate markets, as well as the ability to manage significant outbreaks of fruit fly.

The technology utilised at the precinct will address demands in the sector, be accessible in all regions of South Australia and be used in multiple industries to ensure the products are verified and quality assured from start to finish. This will reduce the economic impact and maintain South Australia's status as the only fruit fly-free mainland state.

A fumigation service will address the needs of South Australian industry as:

certain produce and other product categories are required to be treated before being transported interstate or overseas;

fumigation is suited to low-cost produce;

X-ray sterilisation technology is not accepted in all export countries;

it enables produce to be treated at a central location and can be mobile into the regions; and

fumigation has been used in SA on a small scale with two commercial operators based in the state.

The X-ray sterilisation technology processing service will address the needs of South Australian industry as:

SA companies across food, health, medical and agriculture are incurring significant additional costs by needing to transport the produce interstate for treatment prior to export or for internal domestic use;

it is an effective, more sustainable alternative to chemical treatments;

growth in key industries identified by the state government, such as health, medical, defence and space, where SA has growing capabilities, seeks to attract local companies; and

having an X-ray sterilisation technology processing service in our state will increase the state's value proposition for international companies to view South Australia as a place to have a presence, be that from a manufacturing sense or significant operations perspective, to service industry and customers in the broader Asia-Pacific region.

Sustainable development strategies have been incorporated into the fumigation and X-ray sterilisation technology systems to ensure they are cleaner and greener than other infrastructure currently used. This includes incorporating an efficient solar-powered electricity grid, which creates a 30 per cent reduction in carbon dioxide and enables the precinct to be completely self-sufficient in its energy supply, removing any threat of power outages. These sustainable strategies will ensure there is a healthy and sustainable future for the environment and horticulture sector to benefit future generations.

Extensive consultation and engagement have occurred with the relevant stakeholders, including the commonwealth, state and local governments. Additionally, preliminary discussions have occurred between the project team and the City of Salisbury in relation to consultation on the various planning, building and engineering divisions within the council.

After consultation with the Attorney-General's Department's Aboriginal Affairs and Reconciliation unit, it was determined that there are no registered or reported Aboriginal sites, objects or ancestral remains within the project area. There are no state, local or contributory non-Aboriginal heritage-listed places expected to be directly impacted by the project.

The committee examines written and oral evidence in relation to the South Australian Produce Markets Post-Harvest Biosecurity Precinct Project. Witnesses who appeared before the committee were: Professor Peter Appleford, Executive Director, Major Programs and Regions, Department for Primary Industries and Regions; Angelo Demasi, Chief Executive Officer, South Australian Produce Market; Paul Blandis, Commercial Financial Controller, South Australian Produce Market; and Peter Nicolaci, Senior Strategist, TSM Consulting. I thank the witnesses for their time.

I also take the opportunity to put on record my support as the local member for this particular project. Based upon the evidence considered and pursuant to section 12C of the Parliamentary Committees Act 1991, the Public Works Committee reports to parliament that it recommends the proposed public work.

Mr PEDERICK (Hammond) (11:19): I rise to support this committee report into the South Australian Produce Market's biosecurity actions that they are taking to protect this multibillion dollar industry that runs in many corners of the state. Angelo Demasi and his team do a magnificent job. This is a huge project which goes to making sure we keep fruit fly at bay. We note that many, many tens of millions—it is probably running into the hundred of millions of dollars in recent times—have been invested to control fruit fly throughout the state, whether it is the outbreaks that occur in the Riverland or in the city of Adelaide and other places. It is vital that this work continues at whatever level.

I note the sterile insect project that has been ongoing for several years now. We went to the launch of that quite a few years ago now.

The Hon. L.W.K. Bignell interjecting:

Mr PEDERICK: You did. That is a great project so that we can keep up our status for exporting around the world. This project is vital because it will see the growth of the sector go from $3.5 billion to $5 billion by 2030. The estimated cost is just short of $50 million, and it is funded through state and commonwealth funding and also through the South Australian Produce Market Limited and commercial and private investor contributions.

Obviously, as I said, it is about building facilities at the Produce Market site for the control of fruit fly, and that is absolutely needed. This is a major facility that has been open for quite a while now as the new market area for South Australia, not just Adelaide, for those interstate exports, I guess you call them, that we send of our magnificent produce from this state.

As we know, horticulture has gone ahead in leaps and bounds, when you see broadacre horticulture practices applied here or interstate. When you think of it, years ago, decades ago, it was very small scale; it might be several acres. Now we are talking up to 1,000 acres of one crop. For instance, I will never forget seeing—and I know it is not in this state—1,000 acres of tomatoes grown in raised beds near Deniliquin. That is serious. The Italian family running it had their own packing shed, and that was quite a novel experience going through that as well. They were doing it from paddock to plate, essentially, the whole produce.

Very similar things happen here and right across the state. We have produce that has been grown in many areas around the north, in Virginia and Angle Vale, the Pedericks' old stomping ground. In many areas we see a lot of new technology, like we see in the Virginia area and up at Port Augusta, with trellised tomatoes and other crops that really boost production. Then we see the more broadacre practices that happen out at places like Parilla potatoes, Zerella Fresh.

Also, throughout my electorate I have many growers involved in the broadacre production of potatoes, onions, carrots and other vegetables right across the board. This has essentially brought bulk practices to a game—and it is a very serious game—to something that 40 years ago would not have even been envisaged on this scale of mass production to keep up with the demands of an ever-growing economy, not just here but overseas, because a lot of this stuff can be exported and is. I take my hat off to the people who have been prepared to spend tens of millions of dollars of their own money in developing projects so that they can produce this food.

I look at Zerella Fresh, for instance, in the Mallee: to accommodate workers they build homes in both Pinnaroo and Lameroo, which is a boost to the regional economy, to make sure we can house workers. It is one of those sectors, a bit like the food processing sector, where we absolutely rely on migrant workers to come in. We saw that during COVID, where we got Pacific Islanders in for various food processing sectors. But right across the board we are absolutely reliant on migrants coming in on various visas to make sure that we can have this production right across the board.

At the other end of it, obviously, are the produce markets, and they are so well set up. I have been around a couple of days. I can remember the East End produce markets; not everyone in here would. That was a magnificent place. It is totally different now down there. You are more likely to be able to go down for a beer than buy a carrot. It was quite a novel place back in the day. If you look at it compared to what we have got set up out of the markets there at Pooraka, it was quite niche.

In fact, a friend of mine, Paul Simmons, who is now the Mayor of Coorong: his family had a—I will call it a chocolate shop. They sold a whole range of bulk sweets. I think it was pretty handy that he had that shop for a while. They did quite well with a whole range of things—really more niche things like chocolates and other confectionery but other things as well: they sold a lot of seeds and that sort of thing. But, obviously, that disappeared with the market moving out to Pooraka.

So Pooraka will service this state and this country for many more years to come, as it does service the growers. More and more it is getting to I guess in a way what happens in farming: you get fewer growers at times, because it becomes more of a bulk commodity. But they do, as I have emphasised, have to employ many people just to get the process done. While there are robots and other machines in the packing sheds, it still needs people to do the preparation of ground, the sowing, the caring for products as they are grown in the soil, and then the harvest and the packing.

Then it gets through to the packing sheds and to the end result of the produce markets, which are truly top class. I applaud them for putting this technology in place with all the other partners. The more we can do to protect our valuable horticulture sector the better.

Mr BASHAM (Finniss) (11:27): I, likewise, rise to wholeheartedly support this project that is happening out at the South Australian Produce Market. It is a wonderful facility. I was privileged in my time as Minister for Primary Industries and Regional Development to spend time out at that facility to see what they do.

The work that is being done in this area in relation to biosecurity is so important. The management of fruit fly in this state is something I think we should be proud of as a state in the way we have been able to manage it. We are sitting between the two varieties of fly, and being attacked from both sides, with Western Australia having Mediterranean fruit fly and the Eastern States having Queensland fruit fly. We are certainly having to hold that off here in South Australia.

Unfortunately, we do get outbreaks, and we have had a long-term outbreak in the Riverland. I am really pleased that the current government is continuing the good work to try to get on top of that. I must thank the staff at PIRSA. The work they do in this space is amazing, and the efforts they go to to try to get on top of this for the industry are so important; the efforts of the general public likewise.

Probably one of the things I was most proud of as minister was to see us get on top of the fruit fly outbreaks in the Adelaide areas that occurred during my time as minister. It was great to get on top of those. Unfortunately, we were not able to get on top of the Riverland ones. Interestingly, in the process, we were literally one week away from being on top of those outbreaks and we had one detection in the last week that kept it going, and sadly it has maintained that detections regime going forward.

It is such an important thing. It is something very important to our state. It gives us great access to sell our fruit worldwide. This will give the assurance that when we do have these difficulties of outbreaks of fruit fly we are still able to maintain market access. The ultimate is to get back to that freedom status in the Riverland so that we can sell those products fruit fly free. It is such a bonus to be able to do so.

As another aside, interestingly I have only ever seen fruit fly in two pieces of fruit in my lifetime. They were both while I was minister. One was a strawberry from Queensland and one was a piece of stone fruit from Victoria. Both had dead fruit fly larvae in them and both were from commercial facilities I was at: a supermarket and a restaurant that were serving these up. It is disappointing when they are there; we do not want them there. I really am pleased that we are supporting the industry by putting this facility there to maintain its access.

I implore the government to continue all efforts to get on top of the fruit fly outbreaks. It is very disappointing to hear that we have had a recent outbreak in the metropolitan area, and hopefully we can get on top of that relatively quickly. I implore the public to do the right thing. These outbreaks do not happen accidentally. It is that someone has brought something into a region they should not have and that has led to an outbreak. Please, members of the public, do what is right in managing fruit fly and looking after the wonderful growers in this state.

Mr BROWN (Florey) (11:31): I would like to take the opportunity to thank those who have contributed to the debate on this motion: the member for Finniss and also the member for Hammond.

I also wanted to place on record how pleasing it was that I was able to spend some time with the member for Hammond and the member for Chaffey late last year at the Pooraka markets. It is always a pleasure to welcome people of any particular political persuasion to my electorate, but it was particularly good to be able to spend some time with the member for Chaffey and the member for Hammond under those particular circumstances.

The Pooraka markets are a fantastic facility, and I would encourage all members to pay a visit there to see a part of the industry of this state that perhaps we are not always exposed to. I would like to indicate to the house that I had a conversation with Mr Angelo Demasi yesterday, when he informed me that this particular facility is progressing well, which is good, because it is certainly needed at this particular time. Again, I take this opportunity to recommend this report to the house.

Motion carried.

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