The Good Oil by Rod Brown *
The seat of Eden Monaro has been a litmus test in federal elections since the early 1970s, and the press is forever pushing stories about governments’ use of grants to attempt to woo voters. However, this masks the fact that this region has deep seated problems that require government/industry collaboration.
In this context, an action based Strategic Plan for the medium term development of the Far South Coast/East Gippsland region is currently underway – and it is unveiling issues that transcend politics.
The work is funded by the Commonwealth Department of Transport and Regional Development in partnership with the Eurobodalla, Bega Valley, Bombala and East Gippsland Councils. To date, the work has drawn on interviews with over 100 stakeholders across the key industries – dairy, forestry, beef and fishing – as well as new and prospective industries.
Some of the preliminary findings, which will be of interest to most Australians, are outlined below.
Dairy
The leadership and connectivity provided by the Bega Cooperative and Murray Goulburn (Maffra) is important at a time of major structural change. The dairy farmers are fortunate in being part owners of organisations that can use all the milk they produce.
There is a growing realisation that a deregulated environment demands alliances to proactively seek out new commercial opportunities and address constraints to growth – as well as making intelligent use of the Dairy Regional Adjustment Package (DRAP).
Another finding is that farmers have little ‘organised’ information to assist them in weighing up their options. They are largely left to their own devices in deciding whether to enlarge existing operations, exit the industry, or diversify into new activities.
The interviews also reveal that farm forestry is not that attractive to dairy farmers because of perceptions about the long pay back periods, linked to their need for cash flow, and a general belief that the land should continue to be applied to reasonably intensive agriculture.
Beef
Beef farmers are under pressure, having to contend with low incomes and high debt while searching for greater value adding and scale. The industry has to make the saleyards and abattoirs economic.
The Bairnsdale saleyards have been a major step in attracting cattle and boosting the East Gippsland economy, but this is just one of the stages in the supply chain where improvement has to be made. New techniques and approaches are needed – and best practice in Australia and overseas must be adopted as a matter of priority.
Some say that the climatic vagaries in the region lead to farmers forming an opinion that something new will not work. This and the constant battle to overcome weeds, which takes a major portion of their time and a fair slice of overheads in chemicals, weary even the most optimistic.
However, the dramatic dislocation in the EC due to BSE and foot and mouth disease provides an opportunity for the region. Preliminary discussions have been held with Meat & Livestock Australia about linking local beef producers with EC meat processors under some form of international beef arrangement.
Aquaculture & fishing
Despite the extensive fishing and aquaculture resources and value adding potential, there are no research facilities of any consequence between Wollongong and Melbourne. Developmental constraints are also evident in the Gippsland Lakes, that is water quality and algal blooms, while land use conflict has been flagged, such as tourism and residential development not necessarily sitting well with aquaculture.
This will come into focus when local Councils are faced with development applications, which means that the Victorian Government will not be required to take a position. The NSW Government is close to completing land/water use plans that should identify where and how aquaculture development can take place. This will assist investors in making long term decisions.
New/alternative industries
Opportunities have been identified in respect of goatmeat – few realise that it is the world’s most consumed meat, and Australia is the world’s biggest exporter. Organic milk is receiving attention – some dairy farmers are considering using DRAP to attain organic accreditation (NAASA) and apply this to related farm ventures.
Suggestions have been made regarding speciality non cheddar cheese and dairy products (Italian, Greek, French, Nordic) trading on the clean green image of the region, with the sources of milk being goats and sheep as well as dairy cows.
Agendas in respect of horticulture and farm tourism are also being developed, and the Bombala/Monaro groups are particularly keen to progress this.
Cross industry agendas
A major constraint to the region’s long term development is the lack of identity and parochial instincts. While there is reasonably strong stakeholder affinity despite the State border, the marketing of the region is fragmented – the labels include the Sapphire Coast, the Far South Coast, the Monaro, the Eurobodalla Coast, the Riviera, the Nature Coast and so forth.
Most people outside the region would only relate to Bega Cheese and Riviera perhaps in the case of Victorians. There are moves to convince a critical mass of industries or companies to market under a regional brand or hierarchy of brands.
In my view, the development of some focal points for investors and the wooing of super funds and international investors must be a priority. Joint ventures in research and downstream processing and industry development are needed to open out the economy. More committed involvement from industry associations and trade/investment agencies must also be secured.
There is thus a rich tapestry of agendas unfolding in this region, but unless the dots are connected, the region will not shed its ‘economic cul de sac’ status identified by the Kelty Taskforce in 1995.
The Victorian and NSW Governments recently agreed some ground rules for Albury-Wodonga – can the same be done for this region?
The New Horizons website at www.newhorizons.org.au has a discussion board to generate dialogue with you.
*Rod Brown’s Canberra based consultancy group, Australian Project Developments Pty Ltd, specialises in industry/regional development and government liaison. For further information telephone (02) 6231 7261 or email apd@orac.net.au.
