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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2023-11-01 Daily Xml
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Question Time

Commercial Horticulture

The Hon. N.J. CENTOFANTI (Leader of the Opposition) (14:20): I seek leave to make a brief explanation prior to addressing a question to the Minister for Primary Industries and Regional Development about commercial horticulture viability in South Australia.

Leave granted.

The Hon. N.J. CENTOFANTI: A Stock Journal article from 26 October entitled 'Cost pains heighten insolvency danger' notes that declining consumer spending, higher interest rates, several years of labour shortages, steep labour expenses and an increase in the cost of consumables used in business have left many with low cash reserves and a lack of confidence to continue.

The article predicts a wave of insolvencies in horticultural farming and packing. It notes farm inputs have jumped 37 per cent in the past two years to July. Fuels and packaging resources are up 55 per cent, some fertilisers are now costing 107 per cent more than two years prior and it is no secret that the federal Department of Agriculture, Fisheries and Forestry predicts farming comes to be down an average of 41 per cent right across the board in Australia, according to their own media release on 5 October.

The Stock Journal article also notes that for fruit and vegetable production nationally, many farmers were reporting the 2022-23 financial year was the toughest in at least two decades. My question to the minister is: what is the minister and her government doing to keep the cost of doing business down for South Australian horticulturalists?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:22): I thank the honourable member for her question. I think it certainly is of concern. We hear a lot about the cost-of-living crisis, which of course we can experience and see every day, but also when we look at businesses and in particular small businesses, but not only small businesses, they are similarly facing increased costs.

We know, of course, that since COVID there have been huge disruptions in terms of international trade, in terms of obtaining certain goods and particularly inputs for agriculture and a number of other barriers and challenges. I would also like to put on the record something which I guess we all know but that is certainly worth emphasising: the innovation and the resilience of many of our small businesses, particularly and including in the horticulture sector.

We continue to work with all sectors within our $17.3 billion agribusinesses and primary industries sector, including the horticulture industry. One of those initiatives, which has been industry led, is the recently announced biosecurity precinct, which will certainly help a number of people within our horticultural sectors—that is just one—as well as investments in things like agtech and maintaining the capacity at SARDI for a number of programs.

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