ANZ modelling has predicted an additional $15 billion in capital and 3 per cent productivity growth per year would increase the size of the northern Australian agricultural sector by 52pc and generate $73 billion in production by 2030.
Released at the Northern Australia Food Futures Conference in Darwin, ANZ agri-insight report said while the focus has predominately been dominated by the beef sector, a renewed focus on sugar and other horticulture commodities including bananas, mangoes, melons and avocados, has been driven by the promise of greater infrastructure spend.
ANZ, head of business banking, Northern Territory and South Australia, Brendan Rinaldi said attracting new investment and utilising it well would be fundamental to expanding the existing base and developing future opportunities.
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“With its relatively stable cost base, along with its proximity to Asia, large land mass, high rainfall and water resource developments, northern Australia presents an appealing agricultural opportunity to investors,” he said.
“In comparison with southern Australia, land affordability can help achieve scale and free-up capital investment for key cash flow drivers such as productivity improvements and stock.”
The report said land usage for intensive irrigated production would be a driver of future growth, modelling a possible increase of 1.1m hectares of irrigated land, growing production by as much as $7.4 billion.
“The key is in broadening its commodity specialisation, maximising land arrangements, and investing in research and technology to attract much needed capital investment,” Mr Rinaldi said.
Sharon O’Keeffe travelled as a guest of conference sponsor ANZ.
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