Food and Fibre

Sector Fact Sheet

Victoria is Australia’s largest exporter for food and fibre and accounts for 23% of Australian exports. Victoria has a moderate yet diverse climate ideal for many different agriculture sectors. The state records Australia’s second highest average annual rainfall with diverse soil types and quality pastures for livestock. Victoria is renowned for its dairy, meat, seafood, grain, wool and wine industry. The sector is an important economic driver, contributing 5.9% to the State’s Gross State Product (GSP) and employing 6.4% of the Victorian workforce.

STRONG ECONOMY & QUALITY PRODUCE

Victoria has experienced 23 years of continuous economic growth and 2.4% average annual growth over the last 10 years. Victoria’s excellent reputation for clean and green produce gives it a competitive edge. Stringent regulatory procedures and an emphasis on environmental sustainability ensure that food is safe and produced at the highest standards.

CONNECTED TO INTERNATIONAL MARKETS

Australia has preferential access to Asia’s largest markets and has Free Trade Agreements (FTAs) with China, Japan, Korea, Malaysia, Chile, New Zealand, the United States, Singapore and Thailand. It is conveniently placed across major time zones to offer a practical location for global organisations looking for success in the region. It also can provide counter seasonal supply of high demand products to Asian countries in the Northern Hemisphere.

MAJOR EXPORTER

Victoria continues to be Australia’s largest food and fibre exporter, accounting for 23% of Australian food and fibre exports. Victoria’s largest food and fibre export is meat, including sheep meat and beef, valued at just over $2.45 billion followed by animal fibre products totalling $1.84 billion and grain totalling $1.81 billion.

VICTORIA AT AT GLANCE

$13.08bn

AGRICULTURE PRODUCTION

$38.1bn

FOOD PROCESSING INDUSTRY

$6.1M

POPULATION

$14.5bn

OF FOOD & FIBRE EXPORTS

$1.48bn

PROCESSED FOOD EXPORTS


WORLD CLASS FREIGHT AND LOGISTICS

Victoria is a compact state, meaning production areas are accessible to freight, processing and export infrastructure within close proximity. Government is investing in traceability technology, biosecurity risk management, paddock to plate operation campaigns, local freight road upgrades, water efficiency infrastructure, manufacturing hubs, weed management and climate change.

Victoria is home to Australia’s fastest growing capital city, Melbourne, and has quality freight and logistics infrastructure to move produce to other states and internationally. Victoria accounts for 35% of the national freight task and is home to Australia’s largest curfew-free airport and container port. Farming regions and freight hubs are accessible to markets and export infrastructure.

Approximately $26bn of locally produced and manufactured exports pass through Victoria’s commercial ports annually, handling almost a quarter of Australia’s total food and fibre exports.

CUTTING EDGE RESEARCH & TALENT

Victoria leads Australian research, development and extension (RD&E) in agriculture and food processing. The state has a critical mass of cutting-edge facilities, such as the Centre for AgriBioScience, DairyBio, the Grains Innovation Park, and CSIRO’s Food Innovation Centre. Victoria accounts for approximately 40% of Australia’s food processing RD&E, and there is extensive collaboration between government and industry. Victoria has more students graduating from agricultural and environmental studies than any other Australian state.

DAIRY

Dairy is Victoria’s largest agricultural industry and the powerhouse of Australia’s $13b dairy farm, manufacturing and export industry. The State has 4,284 dairy farms produce more than six billion litres of milk a year, providing work for 16,000 Victorians on farms and another 11,000 in milk processing factories. Victoria is export-oriented, accounting for 86% of Australia’s dairy exports.

AQUACULTURE

Oysters, mussels, trout and salmon are well represented in Victoria. Victoria’s wild-catch fisheries stretch along the coast from Portland to Mallacoota and though inland waterways. Abalone farming is renown on the south-west coast, mussel farming in Port Phillip Bay and salmon farming in the Goulburn Valley. Significant government investment is being made to upgrade and develop local boat ramps and fishing, including a new fish hatchery in Shepparton to produce up to $1.6 million in additional fish stock every year and $2.5 million for extra reefs in Port Phillip to seed 400,000 native flat oysters and 10 tonnes of blue mussels.

WINE

Victoria has been exporting world-class wines for more than 150 years and is the third largest wine producing state in Australia, spread across 21 wine regions and over 600 different winemakers. Victoria has more cellar doors than any other Australian state, producing wines for every palate and budget. Exports of Victorian wines are valued at $363m and red wine exports are the strongest contributor, accounting for 79% of the total wine exports.

23%

of Australia’s total gross value of agriculture

43%

of Australia’s sheep and lamb meat

62%

of Australia’s milk

32%

of Australia’s horticultural products

GLOBAL INVESTMENT

Victoria is internationally recognised for its quality, safety and clean and green production. Our stringent regulatory procedures and a focus on environmental sustainability ensures high quality produce. Victoria has attracted investments from world leading global food companies such as Nestle (Switzerland), Unilever (UK) and Heinz (USA).

Ararat Meat Exports is a Victorian-based meat exporter that sells high quality sheep and lamb products to many international companies. The company processes around one million sheep per annum, and is Halal accredited to ensure its access to the Middle East and other export destinations with large Muslim populations.

Chobani is one of the fastest growing yoghurt brands in Australia, with over 20% market share in the Australian yoghurt retail category. To bring operations to Australia, in 2011 Chobani invested more than $40 million in a production facility in Dandenong South, Victoria.


CONTACT

Email us at:

bd@melbournecb.com.au