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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2013-06-05 Daily Xml
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Question Time

FOOD AND WINE INDUSTRY

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:20): I seek leave to make a brief explanation before asking the Minister for Agriculture, Food and Fisheries a question regarding the contribution the sector makes to South Australia, and certain Labor promises.

Leave granted.

The Hon. D.W. RIDGWAY: In 2010, facing a difficult election, Labor made some promises. It said that the food and wine sector would be worth $16 billion by 2015, the year after next. It said there would be a further 15,000 people working in the food and wine sector by 2015. It promised an extra $1 million a year for new food and wine export programs. It promised to set up a consumer and market innovation centre in Adelaide based at what was then the SA Food Centre at Regency Park. This would involve an alliance between the University of Kent, the state government, industry and leading researchers and would become the national focus for research into consumer and market insight—whatever that is, Mr President—and product and process innovation for Australia's food and wine industries. My questions are:

1. How much has the food and wine sector grown annually since 2010 and the promise that the minister made on that target, and are we on target to reach the $16 billion figure by 2015?

2. How many jobs have been created in the food and wine sector annually since that 2010 promise, and are we on target to reach the 15,000 figure by 2015?

3. Since 2010, has the government provided an extra $1 million a year for new food and wine export programs?

4. Has the minister ever visited the consumer market innovation centre? If so, where did she find it; if not, is it because the centre does not exist?

5. Where in South Australia can we find the University of Kent?

6. Can the minister name her favourite products innovated for Australia's food and wine industries by the centre, and advise how many she has in her pantry?

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) (14:22): I thank the member for his very long questions. I am very pleased to have this opportunity to answer those questions and put on the record some of our fabulous achievements in this area.

In 2011-12 gross food and wine revenue reached a record level $16 billion, with gross food revenue reaching a record $14.27 billion and gross wine revenue recovering a little to $1.75 billion. So we are well on the way to meeting our target. Highlights of the 2011-12 year—and these are just very recent achievements—include gross food revenue increasing by $442 million, a 3 per cent increase, to reach record levels of $14.3 billion, and finished food values growing by about $200 million, or 4 per cent, to reach record levels of $4.9 billion. As I said, this is just in the 2011-12 year.

Food production, measured in farm gate values, decreased to $3.74 billion due to a decline in grain crop value following the very exceptional grain crop experienced in South Australia in 2010-11, but things are looking very promising for this harvest.

The value of Australian farm and fisheries production was $42.6 billion in 2011-12, and 3.4 per cent higher than in 2010-11. That is the value of our farms and fisheries for the 2011-12 and 2010-11 years. Our total overseas exports exceeded record levels of 2010-11 by $207 million (or 6 per cent) to reach a record $3.7 billion. The value of Australian food exports increased by nearly 12.3 per cent to $30.5 billion.

South Australian food retail and food services sales grew by over $300 million (4 per cent) to reach a record of over $8.7 billion. The value of food and liquor retailing in Australia grew by 4.2 per cent in 2011-12 to $135.8 million. South Australian food imports rose by $74 million (10 per cent) in response to a continued high Australian dollar, and the value of food imports increased in 2011-12 to $11.3 billion—$0.9 billion (or 8.6 per cent) higher than in the 2010-11 year.

According to the latest Australian Bureau of Statistics labour force survey, the average quarterly South Australian agribusiness employment to February 2013 was 143,200 with 35,200 employed in primary production; food manufacturing, 23,100; food wholesaling and retailing, 38,400; and food services, 46,500. The South Australian food industry and their value chains represented almost one in five or 17.8 per cent of the state's employed workforce. Employment in food and beverage manufacturing in Australia was around 226,500 in 2011-12, which was a very slight decrease in the 2010-11 year.

Despite very positive growth of around $300 million in retail service—again, as I have talked about, attributed to grain stock issues—over the last 20 years there has certainly been real growth in our agriculture, food and fisheries. As I said, we can see that a great deal has been done in that sector to generate very positive outcomes. In relation to the other matters that the honourable member raises in his questions, I am happy to take those on notice and bring back a response.

The PRESIDENT: A supplementary question from the Hon. Mr Ridgway.

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