“However, the rate of expansion in access to irrigation water is unlikely to match previous levels. As a result, there will be an increased emphasis on productivity improvements and optimising irrigation,” he said. Moving forward, Mr Harvey said, there will also be further investment required downstream in the supply chain, as agricultural production grows.This will include in areas such as production capabilities, innovation and market development. MARKETS OPPORTUNITIES The report says long-term market opportunities remain positive for Tasmanian agriculture. When it comes to markets for agricultural production, the state has a mix of local consumption, interstate trade and overseas exports, RaboResearch says, with growth in the sector largely export-led. Mr Harvey said seafood (especially salmon), dairy products, red meat, onions and cherries “have notable export sectors, underpinned by rising demand across a number of Asian economies” Amid a growing global focus, Tasmania will need to continue to focus on actively leveraging its ‘unique brand proposition’, marketing the strong regional identity and quality assurance, the report says. “One thing is constant, Tasmania’s solid brand reputation for sustainability, quality and biosecurity credentials remains critical in the quest for market differentiation,” Mr Harvey said. SECTORS For dairy, the report says, the sector has enjoyed a period of above-average profitability in Tasmania in recent years. Between 2019/20 and 2023/24, the Tasmanian dairy industry had four out of five seasons of profitability above the long-term average, buoyed by elevated milk prices. Despite a decline in the number of operating dairy farms, the state’s dairy herd has grown at an average rate of 1.1 per cent per year over two decades while milk yield per cow has increased by 1.2 per cent annually over the same period, RaboResearch says. With a relatively small domestic market for drinking milk, approximately 95 per cent of Tasmania’s milk is directed towards manufacturing, primarily for export. “Tasmania’s dairy industry remains well position for further growth,” Mr Harvey said. “With Australia’s national milk pool challenged to grow over the medium term, any growth in milk production is likely to be concentrated in a few regions, with Tasmania being a standout.” Tasmania’s vegetable industry boasts a diverse product mix – including substantial crops of carrots, peas, onions and leafy greens – the report says. However, it is the potato industry that continues to be the standout performer. In 2023/24, Tasmania produced over 568,000 metric tonnes of vegetables overall, generating a farmgate value of AUD 630 million – punching above its weight in terms of share of national production in onions, beans, potatoes and peas. The state also boasts a vibrant and steadily-growing fruit industry, RaboResearch notes, “underpinned by its cool climate, fertile soils and pristine environment”. In 2023/24, the Tasmanian fruit sector achieved a combined farmgate value of AUD 223 million, reflecting an impressive average annual growth rate of 7.6 per cent since 2012/13, the report said. “Historically known as the ‘Apple Isle’, Tasmania has a rich legacy in apple production,” Mr Harvey said,“and while apples and pears continue to standout, the industry has diversified significantly, with cherries and berries emerging as major contributors.” Among all the fruit categories, berries have led the charge in production growth, the report said, with farmgate value increasing by an average of 14 per cent per year between 2012/13 and 2023/24. Salmon remains Tasmania’s largest primary production industry, the report says, with the ‘farmgate’ value of the state’s salmon industry surpassing AUD 1 billion back in 2021/22, having doubled over the previous decade. In 2022/23, the farmgate value of Tasmanian salmon stood at AUD 1.4 billion, Mr Harvey said, contributing to a total Tasmanian seafood farmgate value of AUD 1.56 billion. “Tasmania has been producing more than 80,000 metric tonnes of salmon annually in recent years, cementing its position as Australia’s largest producer, though growth is maturing,” he said. Mr Harvey said the Australian market consumes the majority of Tasmania’s salmon, with export channels also having been developed, mainly for ‘out-of-home’ food service channels. Tasmania’s sheep and beef sectors have “been a story of many parts” over the past two decades, the report says, with a gradual transition away from wool and a growing focus on natural attributes to leverage premiums. The state’s beef sector has seen production increase to an estimated AUD 420 million farmgate value in 2024/25, as increased volumes and improved prices have supported growth, RaboResearch said. Higher prices in the lamb industry have also supported an increase in sheepmeat production value over the past 20 years, estimated at AUD 80 million farmgate value in 2024/25. The overall value of wool produced in the state has also increased, despite the drop in production volumes – driven by increased wool prices over that period. A key to the growth of the Tasmanian cattle and sheep sectors in the future will be the ability to leverage the natural attributes associated with Tasmanian production, Mr Harvey said. 10 BUSINESS VIEW OCEANIA VOLUME 07, ISSUE 09
RkJQdWJsaXNoZXIy MTI5MjAx