DEPARTMENT OF PRIMARY INDUSTRIES
Agriculture
| In the northern irrigation district of the catchment, dairying is one of the key agricultural sectors and this region is the most rapidly expanding dairy producing area in Australia. Combined with significant growth in pig production, tomato (and other fruit) growing, horticulture and viticulture, the region provides excellent opportunities for value-adding and the introduction of new agri-technology (Campaspe Economic Development Board, 1998). The stone fruit industry is predominant in northern Victoria, particularly in the Goulburn Valley and northern Mallee districts. In the North Central catchment this industry is centred in the Harcourt Valley & Boort district and mainly involves growing deciduous fruit and vegetables. The pear industry in the Goulburn Valley has developed a strategic plan to enhance the industry’s international competitiveness in collaboration with Agriculture Victoria, Food Victoria and the Department of Agriculture, Forestry and Fisheries (AFFA). A Pear Industry Steering Group is implementing the plan which addresses marketing, benchmarking, quality management, education, training, R&D, transport and packaging (Campaspe Economic Development Board, 1998). This will assist existing and prospective growers in the North Central region to substantially improve prospects for adding value to this product and locating both domestic and international markets which have to date been unutilised. |  |
The northern irrigation districts have become prolific wine grape growing centres with many vineyards established throughout the district. Combined with strong output in rice growing and processing, dairy, beef cattle, sheep cattle and cropping (barley, faba beans, vetches, lupin, oats, wheat and canola) the viticulture and horticulture sectors of the regional economy provide a strong base from which to continue growth in agricultural output in the near future. ABARE forecast that Australian winegrape production will increase by 16% between 1998-99 to 2000-01 (Shepherd, 1998). There are only fifteen key winegrape producing regions in Australia which produce 99% of output and the northern district (Kerang-Swan Hill) of the North Central catchment is one of these regions.
 | Winegrape production in the Kerang-Swan Hill District is expected to grow by more than 40 000 tonnes per year between 1998-99 to 2000-01. The most significant contributors to this output will be on behalf of the multipurpose varieties, premium red and premium white varieties. |
Source: Derived from data provided in Shepherd (1998).
The fastest growing variety is likely to be premium red, with output projected to grow by 78% during the period 1998-99 to 2000-01. Production of premium white is projected to expand by 17% and minor varieties by 14%. The most notable disparity between output volume and percent growth (decline) is from the multipurpose varieties. Output for this sector is expected to decline by 5% over the projection period but it will remain the largest contributor of output within the sector.
Source: Derived from data provided in Shepherd (1998).
Output for specialist winegrapes is projected to increase by 28% in Victoria between 1998-99 to 2000-01 and by approximately 41% in the Kerang-Swan Hill District:
Projected Production (tonnes) | Percent Growth | |||
| 1998-99 | 1999-00 | 2000-01 | 1998-99 to 2000-01 | |
| Kerang-Swan Hill District | 17 | 20 | 24 | 41 |
| Victoria | 135 | 153 | 173 | 28 |
Output for some even more specialised varieties are expected to grow rapidly during the projected period, including Merlot (326% growth), Ruby cabernet (261% growth), Semillon (108% growth) and Cabernet sauvignon (85%). However, these varieties are launching from a very small base and will take a number of years to capture significant market share in the winegrape industry. This, however, represents many unique opportunities to invest in the likely niche markets of the future.
Projected production (Tonnes) | Percent Growth | |||
| 1998-99 | 1999-2000 | 2000-01 | ||
| Premium white varieties | ||||
| Chardonnay | 3805 | 4103 | 4581 | 20 |
| Chenin blanc | 1430 | 1430 | 1430 | 0 |
| Colombard | 1578 | 1618 | 1657 | 5 |
| Muscadelle | 51 | 51 | 51 | 0 |
| Riesling | 522 | 602 | 681 | 30 |
| Sauvignon blanc | 217 | 217 | 217 | 0 |
| Semillon | 288 | 444 | 600 | 108 |
| Traminer | 47 | 47 | 47 | 0 |
| Verdelho | 0 | 0 | 0 | |
| Total Premium White | 7937 | 8511 | 9264 | 17 |
Nonpremium white varieties | ||||
| Crouchen | 567 | 567 | 567 | 0 |
| Doradillo | 24 | 24 | 24 | 0 |
| Palomino | 8 | 8 | 8 | 0 |
| Trebbiano | 0 | 0 | ||
| Total Nonpremium White | 598 | 598 | 598 | 0 |
Premium red varieties | ||||
| Cabernet franc | 0 | 0 | 0 | |
| Cabernet sauvignon | 1678 | 2354 | 3110 | 85 |
| Malbec | 24 | 24 | 24 | 0 |
| Merlot | 317 | 835 | 1352 | 326 |
| Pinot noir | 0 | 0 | 0 | |
| Ruby cabernet | 735 | 1695 | 2654 | 261 |
| Shiraz | 4204 | 4608 | 5212 | 24 |
| Total Premium Red | 6958 | 9515 | 12352 | 78 |
Nonpremium red varieties | ||||
| Grenache | 1020 | 1020 | 1020 | 0 |
| Mataro | 296 | 296 | 296 | 0 |
| Total Nonpremium Red | 1316 | 1316 | 1316 | 0 |
| Multipurpose varieties | 20150 | 19510 | 19150 | -5 |
| Minor varieties | 3781 | 3934 | 4327 | 14 |
| Total winegrapes | 40740 | 43384 | 47006 | 15 |
From these output projections it can be seen that significant opportunities exist in investing in growth and processing of winegrapes within premium red, premium white and other more specialised varieties, especially in the irrigated district in the north of the catchment region.
Irrigation areas, such as the Kerang-Swan Hill District, are crucial to the successful development of the specialist winegrape industry because in 1997-98 an estimated 52% of this product was produced in irrigated districts. By 2000-01, this proportion is expected to increase to 56% while total winegrape production is expected to increase by 21% in irrigation districts nationwide for the same period. Meanwhile, dryland winegrape production also presents significant growth opportunities in the North Central region because it is projected to increase by 19% Australia-wide for the period (Shepherd, 1998).
Changes to wine making technology have also facilitated production of better quality wines from regions such as Kerang-Swan Hill, so significant opportunities exist for growers to also process grapes for wine making.
Agriculture and associated industries are paramount to the economic and social well-being of communities dwelling and working throughout the North Central catchment. To assist agricultural development there are a number of regional economic development organisations operating here. They have the role of attracting investment, job creation, facilitating provision of infrastructure and responding to economic development opportunities (NCCALPB, 1997).
For more information regarding investing in agriculture, horticulture or viticulture in the North Central region contact:
Department of Primary Industries and Department of Sustainability and Environment
Call Centre
Phone: 136 186
References
Campaspe Economic Development Board, (1998). Shire of Campaspe: Economic Profile.
North Central Catchment & Land Protection Board (NCCLPB), (1997). Regional Catchment Strategy.
Shepherd, A., (1998). Winegrapes: Projections of winegrape production and winery intake to 2000-01. ABARE Research Report 98.9, Canberra.
© The State of Victoria, 1996 - 2008.
This document was last reviewed on 15/09/2008