AN inquiry into Tasmania’s economy has found labour and freight constraints are the biggest hurdles to greater growth for the State’s agricultural sector.
The inquiry, into Growing Tasmania’s Economy, was chaired by Western Tiers Independent MP Greg Hall.
“The evidence put to the inquiry paints a picture of a Tasmanian economy in a growth phase – particularly in agriculture and tourism – but handicapped by freight constraints, unsuitable labour arrangements and some areas of State taxation and regulation,” Mr Hall said.
“For the first time in decades I have the feeling that we are seeing positive change on a scale we have not seen since the hydro industrialisation of the twentieth century.
“It may not produce the same big enterprises - but, taken together, the many elements will amount to a stronger economy and a stronger society.”
Mr Hall said agriculture was one of two pillars, driving the State’s economy.
“Our irrigation schemes are bearing fruit,” Mr Hall said.
“They enable us to grow different things in different areas and have the produce available for local, interstate and world markets.”
But groups who put submissions to the inquiry identified labour as a key issue, particularly for dairy farmers.
DairyTas chief executive Mark Smith said labour shortages were being experienced in right through the sector, from workers to managers and supervisors.
“There is quite a bit of industry effort going into that space, but it is a work in progress and it is an issue that requires ongoing effort,” Mr Smith said.
“I guess part of that is getting the community to understand the opportunities that are out there in dairy.
“The industry has progressed and has moved quite a way from historically what we see is an industry where you might be overworked, underpaid and it is not real flash work.
“It has changed a lot from that.”
Both Rabobank and the Tasmanian Farmers and Graziers Association (TFGA) backed the claim there was an increasing demand for skilled labour.
And Anthony Houston, Houston Farms, said the lack of educational and entrepreneurial skills was the number one constraint for the State.
“It really is almost the only one,” Mr Houston said.
The TFGA submission called for “a shift in focus, to developing strong partnerships with industry to deliver the practical side of programs.
“Farmers need to be much more proactive in helping to develop their own skilled workforce,” the submission said.
Keith Rice, Primary Employers Tasmania, said good training was available, through groups such as TasTAFE.
“It is not the inadequacy of training places, in our view; it is the ability of the small employer to compete in the labour market,” Mr Rice said.
“It is the return that they are getting for their produce to give them the confidence to take on somebody without any skills to be able to perform and learn on that.”
And the TFGA said penalty rates imposed high imposts on producers competing with their counterparts in countries where similar rates did not apply.
“At the height of harvesting many farmers and agricultural contractors are faced with paying penalty provisions that add a substantial layer of production cost generally not borne by those countries that Tasmanian agriculture seeks to compete with in global markets,” the TFGA submission said.
Minimum hours of work also needed to be freed up, to allow the employment of more casuals.
The other issue raised by the sector was the cost burden of freight and limited freight capacity.
Rabobank’s submission pointed out freight and logistics efficiencies were critical to the profitability of the agricultural sector.
“Tasmanian producers and processors face a number of challenges, most notably the cost burden associated with moving Tasmanian agricultural produce on domestic sea freight routes, and the ageing infrastructure that exists to move these goods to port,” the submission said.
Transhipping through the Port of Melbourne immediately put agricultural producers at an economic disadvantage.
The extension of the Hobart Airport was seen as an advantage, by Howard Hansen, Hansen’s Orchards.
“A 747 can already land there but it can't take off again when it's full of fuel and product,” Mr Hansen said.
But multiple 747 flights travelled in, and out, of Sydney to Hong Kong each week.
“It is entirely realistic for us, when this runway is extended, to be working on regular airfreight shipments direct out of Hobart, to avoid all that Melbourne cost,” Mr Hansen said.
“The Melbourne cost - if you're talking about sea freight again, it costs us more to get to Melbourne than it does from Melbourne to virtually anywhere else in the world.”
He said direct flights would get rid of that extra cost.
“On a busy day during summer we're doing 60 tonnes on our own, and that's just our business, without the rest of the cherry industry,” Mr Hansen said.
“We could very easily imagine, a few times a week, 10 or 15 tonnes of salmon, 10 or 15 tonnes of fresh milk, cream, cheese and butter.
“We talk about the opportunities for apples, cherries, fresh vegetables, lettuce, wine, red meat - there is no reason you could not be flying red meat out as well.”