Regional Economics
Key Points
The Sunraysia region is a significant area for irrigated horticulture production. The area has an excellent network of infrastructure and expertise but is suffering from depressed commodity prices and low water allocations.
The Sunraysia region is one of Australia's most important areas for agribusiness, and in particular irrigated horticultural production. For example:
- the region produces over 20% of the nations wine grapes
- is Australia's largest wine manufacturing and packaging centre
- produces 95% of Australia's dried vine fruit
- producers 69% of Australia's table grapes
- produces 22% of Australia's citrus;
- and produces more than 60 types of fruit, vegetables and nut products.
This large agribusiness base provides an excellent network of infrastructure and expertise, which includes:
- technical advice and support from government agencies, research institutions and the CSIRO;
- packing sheds and packaging facilities;
- fruit processing operations;
- storage facilities, including cool stores;
- a network of air, rail and road transport providers and facilities for fresh produce;
- a substantial labour force, which has many years of experience in managing "harvest labour" workforces;
- a strong agricultural and business services sector which includes providers of
- Chemicals and other farm supplies;
- Machinery and equipment, some of which is locally manufactured;
- Pumps and spraying equipment;
- Accounting, legal and marketing services;
- Several industry associations and peak bodies; and
- Contract services
In the 'Economic Sustainability Study of Mildura Horticultural Region' report by Thompson, it states that "The Mildura Horticultural Region is currently suffering depressed wine, dried fruit and citrus prices. Incomes in many businesses are expected to be down by more than 30% and the value of production is expected to be down by around $117M for the region." In February 2008, a report was tabled with the Mildura Rural City Council that estimated that up to $150 million had been lost in production as a result of low water allocations in the 2007/08 season and 3200 jobs were at risk of being lost in the wider community if water allocations are at 30% in the 2008/09 season."
Assistance is required to enable the horticulturalists to adjust by:
- Expanding to achieve economics of scale;
- Adopting more efficient technology to reduce costs;
- Adopt systems that improve yields (not usually for wine grapes);
- Adding value or moving to higher value products (not usually for wine grapes)
- Providing emergency financial relief to survive the exceptional circumstances
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