Bunyip Food Belt

Submission from Participating Council officers collaborating on theBunyip Food Belt project

Background

The Bunyip Food Belt is a large area south east of Melbourne. The South East Melbourne region contains some of Australia’s most fertile and valuable agriculture areas. Local government (Mornington Peninsula, Casey, Cardinia) and water authorities (Melbourne Water, South East Water and Southern Rural Water) in this region are keen to protect and support the growth of the Bunyip Food Belt as a key food producing area for metropolitan Melbourne and Victoria.

The Project Management Team is currently investigating the practicality of establishing an intensive agricultural area within the Bunyip Food Belt which can be supplied with Class A recycled water from the Eastern Treatment Plant (ETP). Such a project offers significant opportunities to build on existing agricultural activities, fully utilise high quality soils, secure the agricultural economy of this area, reinforce the value of the green wedge and enhance Melbourne’s food security. Although the areas nominated are already zoned and used for agriculture, this project seeks to strengthen the role of agriculture in this region through proposed changes to existing planning controls with improved water supply.

Map of Study Area

The Bunyip Food Belt region takes in rural areas around Tyabb and Somerville in Mornington Peninsula Shire, and the rural areas near Devon Meadows, Pearcedale, Clyde, Dalmore, Cora Lynn, Iona, Catani, Lang Lang, and Koo Wee Rup, in the southern region of Casey and Cardinia municipalities.

Disclaimer

It should be noted that, due to the short timelines involved in developing and delivering this submission, this issue has not yet been reported to, or adopted by Councils participating in the Bunyip Food Belt project. Consequently, this submission and the views expressed within it should be treated as the views of the contributing authors, and not that of the respective organisations that they represent.

The Local Governments (Mornington Peninsula Shire/ Cardinia Shire / City of Casey) may wish to make further comment after this matter has been reported to respective Councils. The Bunyip Food Belt Council officers would also be pleased to discuss the proposed arrangements of a National Food Plan with the Department of Agriculture, Fisheries and Forestry in more detail. Please contact Economic Development, Cardinia Shire (ph: 03 5945 0404) for further information.

Responses to Consultation Questions for the National Food Plan Issues Paper

Overarching questions

2. What do you think the vision and objectives for a national food plan should be?

The vision for the National Food Plan should enable the agri-food sector to increase its productive capacity – yield, production – and improve supply chain efficiency – investment in transport and logistics infrastructure - to feed a growing national and global population. A national food plan should be closely tied to national policy objectives and strategies relating to Natural Resource Management, Agriculture and Water Management. Finally, the overarching objectives and goals of the Plan should be aligned with the key vision of the United Nations Food and Agricultural Organisation (UNFAO) which is for countries to ensure its people have access to safe, affordable and nutritious food in sufficient quantities.

Australia should strive to become self-reliant in food. This does not mean self-sufficient. A self-sufficient country would have the capacity to produce enough to feed its entire population, and therefore, would not need to trade with other countries, an outcome which is neither pragmatic nor desirable. Self reliance does mean that a country, such as Australia, would be able to put in place a long-term plan, to produce the majority of its own basic foods in sufficient quantities to feed its growing population, rather than becoming increasingly reliant on other countries in the future.

A national food plan would have several component tasks, covering the spectrum of the agri-food value chain, to put in place a suite of complementary strategies and tools to achieve the following:

• Increase the competitiveness of family farm businesses by facilitating a transition to more sophisticated business models and structures being employed – bringing together of corporate business acumen with farming knowledge and skills;
• Gains in farm productivity through encouraging effective R&D investment, facilitating innovation uptake, removing policy constraints to growth, and facilitating effective responses to climate change and other environmental pressures.
• Increase levels of investment and resourcing of research and development corporations, education and extension providers, and State Department agricultural research facilities (such as Department of Primary Industries in Victoria);
• Promote employment opportunities and career pathways in the agri-food sector, based on a positive and contemporary image of successful young owners and operators , to encourage more young people to enter the work-force;
• Provide funding to grow the number of tertiary and industry-specific training course options, with a view to improving existing skills and knowledge within the agri-food workforce, and increasing overall course participation rates;
• Facilitate investment in recycled water projects and initiatives for intensive agricultural production in regions where there are significant public benefits involved, and backed by a solid business case. Public benefits may include employment and economic growth in peri-urban / growth areas, protection of high quality agricultural land, increased export opportunities, increased profitability and capital growth of farming enterprises through intensive agricultural production, and providing long-term certainty for farming businesses to make investment decisions.

3. What do you see as the major risks to Australia’s food supply in the coming years and decades? How could they be avoided or managed more effectively?

Major risks identified to Australia’s food supply in the future include:

• Bio-security threats such as exotic pests and diseases from imported fresh and processed products (e.g. importing NZ apples leads to an increased probability of fire blight being introduced to local orchards) ;
• Decreasing number of qualified workers in the agricultural and first stage value adding food sector, resulting in a weaker industry capacity and technical knowledge, in order to meet the consumer demands;
• Availability of water to farmers. Working with water authorities to diversify irrigation water supply by implementing alternate water scheme’s such as recycled water, stormwater or sewer mining where possible rather than rely solely on rainfall;
• Decreasing availability of arable land for broad-acre farm production and reduced security of land tenure for agricultural / food production purposes on productive soils, i.e. competition from other industry sectors for productive land such as mining, coal-seam gas, and urban development.
• Decreasing nutritional value of fresh and processed food products being consumed, owing to declining soil fertility and imported products that are lower in cost and;
• Over the past 40 yrs, productivity growth in agriculture has increased at a rate of 1.75 % per annum. At present, the rate of productivity growth is closer to 1.0 % per annum. Ideally, this indicator needs to be closer to 2.0 % per annum for agricultural production to keep pace with global demand;
• Increasing occurrence, duration and intensity of extreme weather events, such as droughts, floods and frosts - stability of commodity production will be impacted upon on a seasonal basis. Providing primary producers with improved access to climatic information and longer term weather forecasts, through all communication;
• Economic, social or political instability within other countries that are key trading partners for Australia’s agricultural sector;
• Is the crop worth more than the land, or vice-versa? In peri-urban and outer metropolitan shires, land prices are being increasingly driven higher due to speculative investment by land developers and commercial investors for non-agricultural land use. The value of agricultural production that can be achieved on a hectare of land in peri-urban areas is less than the price being paid for non-agricultural uses. A review and rethink of planning legislation by the State and Territory Governments, lead by a shift in national policy objectives, would aim to classify and retain areas of regional and national significance for agricultural production;
• Increasing price volatility of agricultural commodities as a result of a) commercial priorities and decisions by major players in first-stage value add and retail stages of the agri-food value chain (e.g. Coles supermarket and retail price of home brand milk lines), b) impact of extreme weather events on agricultural sectors that are geographically concentrated (e.g. banana production in northern Queensland), c) the impact of reactionary policy decisions (e.g. the recent handling of live cattle exports to Indonesia, resulting in temporary spikes in local market prices).
• Accessibility and distance to fresh produce outlets including farm markets, wholesale markets and farm-gate stalls and cellar doors.
• Increasing household costs associated with storing, preparing and cooking food, such as water, gas, electricity prices;
• Growing reliance on imported fresh and processed food products;
• Scale and diversity of farming systems in Australia – the mix of farming activities and systems in Australia is currently transitioning to a greater proportion of agricultural production coming from a smaller number of large commercial farm operations. Opportunities remain to increase the competitiveness and industry mix of the domestic agricultural sector, including high value sectors that are currently dominated by small scale operations such as organic and permaculture production.
• Low rates of succession planning by farm business owners / families, coupled with an increase in the average age of farmers, which may result in a reduction of intergenerational knowledge and skills being transferred to the next generation of farm owners and operators;
• Lack of knowledge and awareness of the seasonal availability of local produce, which can be addressed by introducing and establishing an increased number of food and nutrition education programs into the national curriculum at primary and secondary school level;
• Achieve stronger connectivity and social inclusion amongst local communities to farming and food production, to identify and implement initiatives to increase community participation rates in setting up and maintaining community gardens, and attending farmers markets.
• Supermarket duopoly – the increasing influence of supermarkets in being able to determine the specifications to which food needs to be grown / produced;
• Agricultural enterprises located close to metropolitan and regional townships experience right-to- farm issues, and expansion of urban development into agricultural areas.

7. What do you see as the major opportunities for Australia’s food industry in the coming years and decades? How could they be realised?

A major opportunity in coming years is to develop an improved understanding within metropolitan and regional communities of the importance of peri-urban agricultural regions in providing high quality, safe and nutritional food for a growing population, supporting local jobs in outer suburban areas, and contributing to local and regional economies. Peri-urban agricultural regions need to be recognised for their productive capacity, as well as their strategic location and close proximity to large urban populations. Peri-urban regions tend to be located on highly productive soils, have access to various water resources, and have the capacity to generate high yields and production quantities for horticultural crops.

Even in fragmented peri-urban regions, agribusiness provides the foundation for sustainable land management practices and provides the opportunities for value adding industries to operate in areas with an established agricultural sector, thereby diversifying the economic base of the region. At present, production is limited by such factors as land parcel size, soil type, length of growing season, security of water supply to meet seasonal requirements, and reduced profit margins as a result of rising farm input costs relative to farm income.

Identifying and overcoming the constraints to agricultural productivity and profitability in peri-urban regions in the short to medium term will not only increase agricultural production and farm income, but will also provide the opportunity for each tier of government to improve community awareness and understanding of the importance of having a strong, competitive agricultural sector, and the corresponding long-term socio-economic benefits. If this opportunity is not seized, then prime agricultural land will be utilised for non-productive uses such as housing or industrial developments, hobby/lifestyle properties, or by extractive resource industries (mining, gas) with a short business life span relative to agricultural production.

Raising targeted awareness of the critical importance of peri-urban agricultural systems is a great opportunity for these regions to place a higher value on the productive worth of the regions soils and landscape. Keeping food production as close as possible to local markets is critical in terms of transport and distribution costs, meeting consumer expectations to reduce food miles across the food distribution system, and to continue to meet consumer demand for boutique food products and ingredients which is greatest in metropolitan centres.

Other opportunities for the food production sector include:

• Property owners could be encouraged to grow their own fresh produce – even small garden scale;
• Maintain quality agricultural soils in close proximity to population centres (cities and regional towns) to maximise agri-food tourism opportunities, and provide agri-food businesses with access to an available labour pool and end markets;
• Continue to invest in new technology, industry training, and improvements in farming methods and systems;
• Ensuring agricultural production remains close to population centres increases the public benefits of sustainable initiatives and projects with high upfront capital (e.g. recycled water projects for agricultural production), and would help to 'drought proof'' the region, ensuring year on year food supply;
• Keeping food production 'clean and green' with a high emphasis on quality will lead to increased export opportunities in the future;
• Introduce farm visits and work experience programs for primary and secondary school students will assist to educate the next generation of the benefits of buying local produce, recognising local branding, and buying Australian made and grown;
• Increased involvement of multicultural communities and people of different ethnic backgrounds in agriculture to tap into a broader range of farming knowledge, experience, techniques and skills.

11. What two or three actions:

1. by the government sector would most benefit communities that are highly dependent on food production, processing, distribution or sale?
   • Provide a secure, affordable and fit-for purpose water supply to those communities heavily reliant on primary production and associated downstream industry.
   • Government must recognise, acknowledge, fund and implement recommendations from key peer-reviewed agriculture research and science reports, thus increasing the level of public investment in research, development and extension programs, targeting specific projects that are identified by the private sector as having a high probability of being commercially viable.
   • Increase the number of extension officers and programs through the State Agricultural Departments (e.g. Department of Primary Industries in Victoria) to tackle regional agricultural issues that are acting as constraints to growth, and to implement regional strategies to increase the competitiveness and resilience of agricultural industries identified as having existing or probable competitive advantages relative to other countries over the next ten years.  

    

2. by the non-government sector would most benefit communities that are highly dependent on food production, processing, distribution or sale?
   • Banks could provide low interest loans to support development of a community heavily reliant on primary production and related infrastructure required e.g. Storage dams and pipelines for recycled water.
   • Major supermarkets could setup local and regional food section / floor spaces within their stores to stock and supply produce from adjacent food production regions, and actively market these products to increase consumer awareness of regional and local food suppliers and brands, As an example the Traralgon Safeway store (Victoria) could stock Gippsland based products in the “local produce” section.
   • The creation of “inland ports” to improve distribution costs and efficiency. The “ports” planned for the outer suburbs of Melbourne (e.g. Dandenong) could be extended to include regional locations.

Chapter 3 Food Security

14. What specific additional actions by:

1. the government sector would most benefit our food security status?
   • As the world population increases and the demand on food production systems and distribution channels increases, Government can assist agricultural trade by strengthening key strategic relationships with regions experiencing large population growth;
   • Industry education and training programs to ensure Australian farmers stay abreast of international best practice, commercial developments, international trade opportunities, and research and development priorities.
   • Strengthening strategic industry relationships and alliances from both vertical and horizontal angles, e.g. local food associations linked to regional branding, product awareness, health and well being and enhanced awareness of food production systems targeting urban populations;
   • Adjust statutory and strategic planning policies to retain arable farmland that has good access to water resources and infrastructure, with a view to preserving the productive capacity of agricultural soils at a regional scale;
   • 'Right to farm' or similar legislative protection could be introduced via State Planning Schemes and critiqued every five years, and where necessary, practical adjustments made to support food production systems in peri-urban regions;
   • Identify and protect peri-urban farming regions and industries of both national and regional significance. These regions have a very valuable place in the food production landscape, as we don’t tend to perceive or value these regions as farming areas. There is a need to more frequently debate this issue, as custodians of the land, regardless of property size, need to be encouraged to increase their knowledge of, and involvement in food production, and the importance of retaining arable land for agricultural production;
   • Tax incentive issues on the peri-urban fringe need to be reviewed, due to increases in land tax on farm businesses through disproportionate land valuation driven by speculative investors and land developers.
   • Prioritise critical and targeted investment in Research, Development & Education across the agricultural and food sector with a view to enhancing technical support, creating new knowledge and increasing capacity to support on-farm practices, decisions and management of food producers.
   • Policies and programs aimed at reducing food wastage, to align consumer perceptions and expectations of fresh produce that is available all-year-round versus on a seasonal basis;
   • Provide education models and programs that are available to all residents to improve their food and nutrition literacy, and develop food preparation and cooking skills that can be taken back to every home, which are able to be coordinated by local government authorities.
   • Australia needs to position itself to take a lead role in international agricultural education, research and science, to be a socially responsible global citizen.
   • National register for land capability per commodity that includes soil, climate (temperature, wind, chill, water), rainfall (irrigation), to serve as baseline information per production region, to support farm businesses to make choices on types of crops and livestock.
     
2. the non-government sector would assist in maintaining our food security status?
   • Maintaining strong and proactive industry associations, e.g. Mornington Peninsula Gourmet, Vegetable Growers Association of Victoria;
   • Political decision makers could use industry groups as a sounding board to inform policy development and implementation;
   • Food retailers and wholesalers should aim to educate their customers within their premises about where their food comes from, and various grades of food available for purchase;

Lack of coordination between Federal and State Governments, industry associations and farming federations to implement policies and strategies that prioritise food security objectives and goals.

Chapter 4 Diet, nutrition, food safety and the consumer

19. How do consumer perceptions of food production (across the food supply chain) affect food-related businesses and regional communities? What research has been done on this?

Consumer perceptions are formed early on, in the home, with family shopping and eating practices and by passively observing whichever Government healthy eating programs are being implemented at that point in time. These values, beliefs and perceptions are confirmed or re-shaped through individual experience or media persuasion. Today, the consumer has the choice of the two major Australian grocery retailers, and which of their respective marketing schemes to follow. Alternatively, take another route to an independent small chain retailer or support a local shop in your neighbourhood strip-shopping precinct.

The taste of pasture-fed versus grain-fed beef argument is ongoing, but Australian’s of late, largely agree that animals raised for food, especially cattle, must be ethically raised and slaughtered. This message is illustrated in most modern day food outlets and restaurants through utilising in-house advertising to alert the consumer, that there has been humane treatment of the animals that end up on their plates. If a farm or slaughter-house is perceived to not be following a preferred standard, the consumer that cares about this, will walk to another supplier and retailer, perceiving that product is processed elsewhere, and therefore it is ethical to consume. This reactionary behaviour affects the primary producer, as the distributor will request a smaller order of product and the farmer gradually becomes unable to continue producing at a profit, and therefore sells up and moves on.

The recent disconnect between the urban consumer and rural primary producer has resulted in the retailer being the only part of the food chain that the consumer is familiar with. The farmer is out of sight, out of mind for the majority of consumers today. The consumer is focussed on retail price per product, rather than the cost of production, legislative requirements, industry regulations, on-farm practices and technology employed, which all influence the price paid for one lettuce that is on the family table. Therefore, the farmers and supporting businesses have to cope with getting squeezed out by the cost per product policy of the two major retailers. In addition, if they face right to farm and land-use pressures, such as in the Bunyip Food Belt region, due to expanding urban growth zones, a farmer does not receive direct public support to continue farming. The majority of urban consumers are not aware of the context of these current issues, even if it is close to their backyards.

What research has been done?

The 2011 National Vegetable Expo – Growing a Healthy Australia, had consumer signage throughout the expo site, promoting a five step Food Chain: The Seed, The Seedling, The Grower, The Customer, The Table. This was followed up by inviting consumers to experience a wonderful array of fresh Victorian produce at Melbourne’s Good Food and Wine Show, hosted by the Melbourne Market Authority, which showcases the range of produce Melbourne’s wholesale market has to offer, and presentations on seasonality of fruit and vegetables, the role of the Markets and their experiences working in the industry. These types of public events invite the urban consumer to meet, greet and understand who their rural and regional primary producers are, and why they need ongoing local consumer market support.

Farmers' markets, primary producer expo days, or your local butcher and green grocer can talk to you about the farmer and you can find out exactly how your beef was reared. The farmer’s market and organic movements are attempting to re-educate the lost knowledge, that healthy animals taste better or fresh seasonal fruit and vegetable has a true taste and lasts longer in the fridge.

Groups such as The Victorian Farmers' Markets Association (vicfarmersmarkets.org.au), Enviromeat (enviromeat.com.au), Isola Farm (chianina.com.au), or Gippsland Pasture (pasturefedmeat.com.au), Hopkins River Beef (which produces grain and grass-fed, see hopkinsriverbeef.com) and Tasmania's Cape Grim (capegrimbeef.com.au), all have first hand market research through direct client feedback, about the “before- and-after” consumer perception of their beef production chain.

The Horticulture industry groups, Vegetable Grower’s Association (vgavic.org.au), Australian Asparagus Council (asparagus.com.au), and other member groups within the Victorian Farmers Federation (vff.org.au) have years of research from published articles, through to community engagement at open days about consumer perceptions of food production.

Chapter 5 Competitive, productive and efficient food industry

Capital, Stock and infrastructure

24. What are the key issues relating to infrastructure that positively or negatively affect the food businesses along the food supply chain? Is there a role for governments in addressing those issues?

• Establish a localised wholesale market (e.g. in Dandenong, Victoria) to keep food prices down through lower transport costs.
• Creation of food industry precincts incorporating transport, logistics, processing and manufacture, storage, retail and education – to maximise opportunities for networking, knowledge transfer, increased interaction between businesses, and other benefits associated with industry clusters.
• Under-investment on infrastructure projects by State and Federal Governments over the last ten years – rail, road, ports and airports – has resulted in less efficient distribution channels for farmers to move their product to markets, storage facilities and export facilities. Governments could allocate expenditure on infrastructure projects on a fixed percentage of GDP basis;
• In the outer metropolitan growth areas of major Australian cities, as is the case for municipalities within Bunyip Food Belt region, infrastructure is a major issue of increasing regional importance. Investment in hard infrastructure is not keeping pace with population growth. Major infrastructure issues in outer suburban areas of Melbourne include road upgrades and improvements, accessible and reliable information and communication technology (i.e. broadband), accessibility to markets, and the provision of adequate employment infrastructure (i.e. factory and office space); the rectification of these issues needs to be urgently facilitated by Government.

Innovation

32. How could the food industry make the most of emerging market opportunities, including niche markets such as food tourism? Could the Australian Government play a role in this area?

In Victoria, food and wine tourism experiences include:

• Winery cellar doors and winery tours
• Microbreweries and breweries
• Experiencing Melbourne’s diverse range of restaurants, cafés and bars
• Dining in Victoria’s regional restaurants
• Festivals and events that feature local food and wine
• Farmers’ markets
• Agri-food tourism activities, such as fruit picking
• Farm visits (including purchasing produce at the farm gate)
• Factory tours
• Cooking schools
• Purchasing local fare at produce stores
• Food and wine trails
• Winery tourism experiences including accommodation, restaurants and activities
• Integrated food and wine experiences with events, arts and culture, touring, business events, adventure, shopping and golf.

All this needs to continue, or expand, however there needs to be an increased emphasis on regional branding. This has happened for the wine industry with various locales being considered wine growing areas and branded accordingly. Rutherglen and Yarra Valley are prime examples for Victoria.

Regional food branding is an accepted method of promoting regions in Europe. Examples include Provence in France and Tuscany in Italy. However regional food branding in Australia is at a relatively early stage.

Expansion of branding into area other than wines needs to be a focus of future tourism and food plans. There have been attempts into food branding (e.g. Gippsland’s Gourmet Trail) however the brand did not ‘stick’ and has virtually disappeared.

The freshness and quality of Victorian produce should be enhanced. The State has a reputation of excellent food, but this usually equates to prepared food (i.e. restaurants, cafes, etc) but is well placed to also become a fresh food tourism destination. The relatively short distances in Victoria, coupled with the benefits of having a major city nearby, provides an opportunity to use food as a driver for increased tourism.

Outer south-east Melbourne is uniquely placed to be a location for possible food tourism ventures. It contains have a thriving market garden area, has a history of food tourism with the West Gippsland gourmet food trails and the obvious benefits that the availability of recycled water brings with the Bunyip Food Belt project. It is the gateway to Gippsland food region, and is accessible to other major tourist destinations including the Dandenongs, Phillip Island and Mornington Peninsula.

A study commissioned by ABARE (Drivers of regional agri-tourism and food tourism in Australia by Ecker, Clarke, Cartwright, Kancans, Please and Binks, October 2010) concluded that “Regional areas that are successful in agri-tourism and food tourism tend to display a common set of features, including access to accommodation, appropriate infrastructure and proximity or easy access to nearby urban areas. Agri-food tourism regions offer an appealing variety of ‘lifestyle drawcards’ which include food and agricultural-based experiences for visitors and the local community. These include food and wine production and consumption opportunities, aesthetics, rural culture, and farm-based recreational activities. These features of agri-food tourism are underpinned by a range of motivating forces and institutional drivers, which are explored in detail in this study.”

Government can play a strong role in fostering regional food tourism concepts which should be a major focus of any Government Tourism strategy. Government can assist in regions being able to market and coordinate food based tourism activities. Longer term assistance programs are needed to help regions develop their areas.

Thank you again for the opportunity to provide input to the National Food Plan (NFP) and it’s aim to integrate food policy by looking at the whole food supply chain, thus protecting Australia’s food security, both in the Bunyip Food Belt region and nationally. As discussed, Council officers contributing to this submission views this opportunity as an essential step in developing a key strategy to maximising food production within Australia, and therefore being a key player in the global marketplace.

Bibliography

1. Ecker, Clarke, Cartwright, Kancans, Please and Binks, (2010): Drivers of regional agri-tourism and food tourism in Australia, ABARE
2. Stewart G (2010): Mornington Peninsula Shire Agricultural Audit Report, Mornington Peninsula Shire Council.
3. Williams J (2011): What do food systems designed to meet the challenges of the 21st century look like? Presentation: National Sustainable Food Summit, Melbourne 2011.
4. KPMG (2011): Australia Report 2011 - Risks & Opportunities, Developed by ADC Forum. Survey report. Release Date 18/07/2011 - http://www.kpmg.com/au/en/issuesandinsights/articlespublications/australia-report/pages/australia-report-2011-risk-and-opportunities.aspx
5. Jackson P (2009): Economic Profile, Cardinia Shire Council.
6. McKinna D (2010): Report - Performance Issues impacting on development of the Victorian agrifood sector, Regional Development Victoria.
7. Morris V (2004): Agricultural Audit and Action Framework, Cardinia Shire Council.