GASCOYNE FOODTHE BEST KEPT SECRET

A Discussion Paper on developing the

GASCOYNE FOOD INDUSTRY

Prepared by the Gascoyne Development Commission November 2006

Contents

Introduction ...4 Primary production in the Region.5 Broader community benefits of food for the Region9 Past food initiatives ....11 Current food initiatives ..13 Discussion, analysis and conclusion 17

Introduction
In recent years, regionally based food interest groups across Australia have stimulated a renewed awareness of local and regional resources. This interest has encouraged the creation of new networks and partnerships and contributed to the development of regional food cultures that bring about broader health, tourism, social and economic benefits. The Gascoyne region has an impressive and diverse food base. However, it has not developed a consistent regional food approach or become as well known for its food as have other regions in Australia with a similar strong food base. It is our best kept secret. The Gascoyne Development Commission (GDC) recognizes that the fishing, horticultural and pastoral industries (the food industries) individually continue to be major contributors to the Gascoyne economy. However it believes that a regional food approach has the potential to both build and strengthen those contributions besides offering additional social, tourism and other benefits to producers and regional residents. This discussion paper explores opportunities that will increase the exposure and value of fresh produce grown in the Gascoyne region. It includes a brief overview of the key industries and previous and current initiatives. It identifies potential benefits of food innovation to the broader community. It aims to generate discussion throughout the community and gauge the degree of regional interest for further developing food initiatives in a coordinated and effective manner.

Kevin Leahy Chairman Gascoyne Development Commission

Primary production in the Gascoyne region

The Gascoyne region has a diverse economy with fishing, horticulture and pastoralism being the main industries. In 2004/05 the Gascoynes total fishing catch was 6,818 tonnes and was valued at $53 million. Prawns dominate the catch with the Gascoyne region having the largest prawn catch in Western Australia, making up 82 per cent of the States total. The total agriculture sector was valued at $54 million for 2003/04 with pastoral making up $21 million. However the agriculture sector was dominated by horticulture which has contributed between $54 and $60 million per year over the last 5 years. A well established horticulture industry flanks either side of the Gascoyne River and supplies an extensive range of fruit and vegetables for mainly domestic markets and for export markets. The pastoral industry including livestock, disposal and wool, continues to remain an important contributor to the regions economy. (Gascoyne Economic Perspective 2006) Fishing The Gascoyne Region is home to the States major trawl fisheries, with managed fisheries for prawns and scallops in Shark Bay and Exmouth Gulf. In addition, the region supports the important Shark Bay Snapper Fishery and Shark Bay Beach Seine and Mesh Net Managed Fishery, which respectively provide most of the pink snapper and whiting catch for Western Australia. An experimental fishery for blue swimmer crabs, based primarily in Carnarvon, but operating throughout the waters of Shark Bay, has recently been developed. The primary species caught in the Region are prawns, scallops, various fin fish (including snapper, mackerel and mullet), crabs and lobsters. The Gascoyne Region has the largest prawn catch in Western Australia. King prawns are the dominant species, with Tiger and Endeavour prawns making up most of the remaining catch. The Shark Bay and Exmouth prawn fisheries are well established and export primarily to Asia. In 2003/04, recovering from a downward trend, 1,722 tonnes of mollusc (primarily scallops) was caught with an estimated value of $5.8 million.

Wetline fish generally includes mackerel, snapper, red emperor, whiting and mullet across the region Crabs are readily available in the Region. The lobster catch in the Gascoyne region has fallen sharply since its peak in 1997/98 when 41 tonnes were caught.

Horticulture Horticulture is carried out along the banks of the Gascoyne River, between 5 and 18 kilometres from the river mouth at Carnarvon township. Horticulture is the Gascoyne region's largest agricultural industry and takes advantage of the region's climate, producing out-of-season commodities for the Perth market, as well as exporting produce to the eastern states, Asia and the Middle East. The diversity of the produce grown in the area is considerable as outlined below. Fruit: Bananas, grapes, melons and mangoes are the major fruit crops grown in Carnarvon (Department of Agriculture production statistics, 2004). The main varieties of grapes grown are Red Globe, Flame Seedless and Dawn Seedless. The market has grown substantially over the last decade producing fruit for both the domestic and export market. Bananas are synonymous with Carnarvon and the industry has developed its practices and techniques over time. The Lunch Box banana idea was introduced by the Sweeter Banana Company and has been an excellent marketing tool for the smaller bananas. Carnarvon bananas are readily available from plantation based shops, roadside stalls and the Gascoyne Growers Markets. Bananas have also been value added into chips, dried banana, fruit leather, chocolate coated banana, chutney, jam and wine on a cottage industry level. The main mango variety grown in Carnarvon is Kensington Pride. Other varieties include R2E2, Zillate, Kiett, Heidi, Bangalore, David Hayden, Valencia Pride, Palmer and Brooks. Kensington Pride is considered by many as the industry standard and is most suitable for value adding into canned, frozen and dried produce. Sliced mango, frozen mango, fruit leather, dried mango, mango chips and mango wine have all been produced in Carnarvon to some extent. Tourists can often find dried mango, mango sauces, chutney and puree at the Gascoyne Growers Markets and at other plantation outlets. Other fruit crops grown in Carnarvon include avocados, grapefruit and papaya. Ruby Grapefruit has become a popular variety suited to the Carnarvon climate and also a favorite with consumers due to the sweetness and color of the flesh.

Minor fruit crops include carambola, custard apple, jackfruit, nectarine, orange, passionfruit, peach, plums, strawberries and longans. Carnarvon fruit and value added products are generally available from a number of plantation located shops, roadside stalls or the Gascoyne Growers Markets. Consumers can also purchase organic produce from roadside stalls and through the Growers Markets. Vegetables: The major vegetables grown include tomatoes, capsicum, cucumber and pumpkins. Other crops grown in Carnarvon include basil, beans, chilli, eggfruit, sweet corn, cherry tomatoes and zucchini. Miscellaneous crops include baby capsicum, bitter melon, gourmet eggfruit, okra, paprika, squash and winter melon. The vegetables grown in Carnarvon may have value adding potential that could meet consumer demands for convenient foods. Seasonal fruit and vegetables vary with climatic conditions and the following list is an approximation only. (Department of Agriculture production statistics 2004)

Fruit Avocados Bananas Table Grapes Grapefruit Mango Paw paw Rockmelon Watermelon Carambola Jackfruit Custard Apple Peach Nectarine Plum Orange

Season Feb Sept All year Nov Jan/Feb March/April - Nov Dec Feb All year Nov June April Jan March Sept Dec March March Oct August Nov Aug Nov Oct Nov May - Aug

Vegetable Basil Beans Butternut Pumpkin Capsicum Chilli Cucumber Eggplant Pumpkin Sweetcorn Tomato Cherry Tomato Zucchini Baby Capsicum Bitter Melon Gourmet Eggplant Okra Paprika Squash Winter melon

Season March Jan March/April Dec/Jan May Jan May Jan All year April - Dec March Jan All year May Dec April Jan April Dec March - Dec June Dec April Dec April - Dec May Dec April Dec April - Nov March - Nov

Pastoral The pastoral industry is one of the Gascoyne Region's older industries, commencing with the introduction of sheep to the Region in 1876. Livestock Disposals: Livestock disposals are dominated by the sale of sheep and lambs and cattle, although there is increasing interest in the export goat market. In 2003/04, the Regions flock totaled 287,974 sheep and lambs. Over the last decade the cattle herd in the Gascoyne increased from approximately 33,000 to 67,000 cattle and calves by 2002/03. Numbers dropped in 2003/04 to 49,400. The goat industry is developing and comprises of both rangeland and domesticated goats. Gascoyne rangeland goats are part of the estimated 700,000 within Western Australian rangelands, which are harvested opportunistically by pastoralists by mustering and trapping. Both rangeland and domesticated goats are sold for meat or live export to South East Asia and the Middle East. The main challenge for the industry is to maintain consistent supply and quality. Kangaroo is widely eaten however it is not sold for human consumption through any facility, rather it is opportunistically harvested. Kangaroo is sold for pet meat through the two local pet meat businesses. Similarly goat is obtained by gaining permission to enter a pastoral property and shooting an animal for personal use and consumption and is not sold through any outlet in Carnarvon. Meat cannot be sold without being slaughtered in an appropriate facility that is compliant with health regulation requirements. Locally produced meat also varies in quality due to drought and the lack of a finishing facility. The Gascoyne Abattoirs closed in 2001. It had the capacity to process 1,000 head of goat a day. The Gascoyne region at that time could supply 300,000 head of goat per annum. The business required enough total kills to occur in order to justify operating the facility for 12 months of the year. The required quota for goat meat was not met due to competing high demand for lamb from Japan. The cost required to wash down other meats before commencing the goat line coupled with the need for introduction of late shifts made continued abattoir operations unviable.

Broader community benefits of food for the Region

The connection between food and health, food and culture or food and tourism is becoming more understood with regional centres developing initiatives that provide benefits for their local and visiting populations. Food has also become the catalyst in many regional areas for existing businesses to develop opportunities and for new business initiatives. Food and health Food diversification infers health advantage and there is much evidence to support this. Reports consistently draw attention to generally higher mortality and morbidity rates in regional Australia compared to major cities. Limited access to health services, less preventative activity and socio economic disadvantage can be cited as principal reasons for this rural-urban health disparity. A vigorous local food economy that can ensure equity of access to a range of high quality, nutritious, local, seasonal and affordable food coupled with incentive for primary producers and processors to keep producing, will go a long way toward reducing this disparity. Research conducted in Carnarvon by the Combined Universities Centre for Rural Health, Social Capacity Survey (2003) measured social community and civic participation. Results determined that the Gascoyne Growers Markets were by far the most commonly attended civic event (74%). The drawing power of this effective population health initiative is food and recognition amongst consumers that it not only tastes good because it is fresh and local, but that it is also good for them. Food and community Marketing of Gascoyne produce through the central marketing system in Perth has weakened the links between place of origin and the product. Fresh, local, quality and regionally produced food is a product that appeals to the consumer and helps build an identity that connects Gascoyne people with their region. Carnarvon has a diversity of cultures with their own food preparation and consumption habits driven by interesting customs and beliefs. Whether it be food related activity amongst the Vietnamese, Croatians or Aboriginal people traditionally this has provided the impetus for these groups to socialize. Food activity has also been introduced into public events that have raised the profile of the cultural groups and assisted the revitalisation of communities as well as fostering a sense of community pride and belonging (Payet, Gilles, Howat, 2005)

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Food and tourism Across Australia the growing influence of the food movement is demonstrated by the increasing number of produce markets, publications, tourism campaigns and restaurant menus. Consumers are showing a desire to travel in order to seek out regional products first hand which supports the earlier prediction that food is putting regions on the map. Local Government tourism policies are recognising the value of regional food as a valuable tourist resource. Recreational fishing activity both boat based and shore based provides excellent opportunity for good fishing and generally guaranteed catches to eat. A major appeal of the region is being able to catch your own fish. Tourism is a vital and fast growing industry in the Gascoyne Region. Tourism Western Australia estimated that in 2004, there were 901,866 international and domestic visitors to the Coral Coast region. The tourist industry is based on the region's unique natural attractions however Carnarvon is often referred to as the food bowl of the North West. (Regional tourism results, Tourism research Australia 2005). Food and economy Expansion and diversification of food production in a regional context can create a range of benefits for both the producer and consumer. It can create opportunity for direct marketing and generate flow on effects to the local economy. Increased profit margins encourage continued expansion and diversification opportunities for the producer. A region rich in food resources has potential to support initiatives that encourage the spending of the local dollar on local product, further encouraging the community to place a value on an asset that is considered to be unique to the region. Retaining the dollar within the region may then serve as a catalyst for small business expenditure, enterprise and innovation. This will result in increased community appreciation and pride which may then generate a positive change for the region. Food is universal regionally, nationally and internationally and is now known to play a significant role in providing the tourist with the local experience they so crave. Offering a diversity of experiences leads to increased visitor stays resulting in more dollars being spent in the region. Therein lays the opportunity for a region such as the Gascoyne, rich in its diversity of product, to capitalise on potential for strong economic return.

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Past food initiatives

Over the years, the Gascoyne has experienced and introduced a range of food related initiatives in response to growing recognition for the need to do something different. Project proponents have had to call upon industry related support of either an in principal or in kind form or upon Government support for financial assistance. Most grant opportunities exist for the greater benefit of the industry or region and it is often more appropriate to apply as an industry body or incorporated group. The challenge rests for potential proponents to access this information, access assistance, develop viable proposals, secure equity, present a case in a competitive field and effectively manage projects. The challenge identified from past initiatives has been achieving long term viability and sustainability. Funding for both operational and salary components has been for a defined period of time only and not recurrent. Primary producers generally want to get on with the business of what they do best, that is; growing or harvesting the product. Developing new value added products or diversifying their business requires a new area of expertise and is generally not a role primary producers see themselves filling. In addition expertise in marketing and promotions is essential to any new business operator branching into something new and innovative for the region and can be the make or break of a successful business. The following are examples of projects that faced these challenges. Carnarvon horticulture marketing facilitator A full time horticultural marketing facilitator was employed in February 2000. The 12 month position was managed by the GDC and funded jointly by the Commonwealth Regional Assistance Program, Regional Initiatives Fund and the GDC. The facilitator was based at the Carnarvon Growers Association. The position was responsible for increasing potential for value adding, identifying new marketing opportunities, facilitating branding of regional produce and developing strategies to improve quality, consistency and supply of product. The position ceased after 12 months.

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Regional branding Regional branding is not a new idea to Western Australia and the success of such branding has been well-documented in the past. One of the aims of regional branding is to establish a regional, national and sometimes international reputation for products that possess or offer a unique flavor or characteristic. A good example is the Gascoyne fishing industry. It is unique because few places in the world can compete with the range, quality, freshness and proximity to local markets. This gives the Gascoyne products a point of difference and creates regional interest for consumers. In 1999/2000 workshops, food events and forums were held to investigate regional branding. This initiative was driven by Progress Rural WA, through the Department of Agriculture. The program ceased in 2001. Mango processing A privately operated mobile mango processing plant commenced operations in 2001 and continued operations throughout 2002. The mango product was peeled, sliced, and wrapped for cool or freeze storage. It was proposed that the unit operate in mango growing regions throughout Western Australia. Some smaller scale locally piloted marketing and processing projects had been undertaken previous to this and had generally proven successful. Formative research proved that the benefits of operating a machine in WA could provide economic advantages to the WA mango market economy. Mango product was sourced from Kununurra, Broome and Carnarvon and the plant operated in both Broome and Carnarvon. The plant has since been sold. It remains in Western Australia but is currently not in operation.

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Current food initiatives

An appreciation of the value of the Gascoyne primary product continues to be a sound reason for the Gascoyne to review how it might highlight this asset more effectively. Producers generally dedicate little time to promoting their product due to time constraints and a possible belief that this is not necessary. They have developed a traditional reliance on Perth agents to fulfill this role. It would be fair to say that the consideration of benefits of a more diversified approach to the market place have not been a high priority. Based on other regional food models in Australia appreciation and interest from the producers at the grass roots level appears to be the main key criteria in achieving successful regional outcomes. Provision of ongoing and well coordinated support across the community can dictate the difference between success and failure.

Gascoyne Growers Markets The Gascoyne Growers Markets were established in 2001 and operate every Saturday morning from May to November attracting up to 2,500 shoppers during peak periods. They have proven a major success assisting the region build on its primary produce profile, increasing profit margins for stallholders and providing incentive for visitors to remain in the region longer. The Gascoyne population have learned to build the markets into their weekly shopping routines and the markets have helped build up a sense of community pride. The markets were initially a Health Promotion initiative driven by the Gascoyne Population Health Unit. They are now managed by an incorporated body that employs a part time coordinator. Plantation shops and roadside stalls Generally Carnarvon has taken an ad hoc approach to selling direct to the public which has been taken up by individual producers wishing to turn over excess or seconds produce. Some roadside stalls operate on an honesty box system and other producers maintain a shop presence. In the Shire of Carnarvon there is no formal food trail guide or pathway to identify a common route and infrastructure such as roads and signage are in need of improvement and consistency of presentation.

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Group marketing There are three horticulture group marketing entities that conduct central packaging. These are Sweeter Banana Company, Love Apple (tomato) and Gascoyne Gold (tomato, capsicum and other). These were established to address market demand for continuity of supply, quality of product and consistency of packing with a view to increasing profits for the facilities and in turn the producers. Group marketing was set up to increase marketing power through consistency of quality and supply. This strategy has built a stronger profile for Carnarvon produce. Value adding Value adding has generated a new cottage industry specialising in dried, frozen and preserved products. The operators have invested into their traditional plantation businesses and developed strong and regular customer bases both within and outside the region. Of the roadside stallholders six primary producers have undertaken production and sales of value added products and have complied with regulatory health requirements establishing registered commercial kitchens on their properties. Some of these operators have also had a regular presence at the Gascoyne Growers Markets which compliments their roadside sales. There has been some exploration over the years of value adding potential for the region. Anecdotal evidence tells us that the following could be perceived barriers to the progression of ideas: Capital infrastructure. Suitability of product to be processed. Funding support and resources. Market opportunities. Health standard requirements.

Direct marketing Many producers have developed their own form of direct selling to retailers and private distributors either intra regionally, inter regionally or through export markets. Some horticultural producers have also developed regular mail order sales by arrangement. This has required the identification of individual transport and payment systems. The advantages of direct marketing are that it can provide an alternative to the additional costs of agent fees and marketing levies. It will also reduce the time taken to get the product to the public (less food miles) therefore providing a better quality, fresher product at the end of the food chain.

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This method can also be fraught with challenges of continuity of supply through seasonal change, debt collection, breach of contract and unreliable transportation for both the supplier and the purchaser. Direct sales currently occur at Nor West Seafoods, Kai Fisheries, Emerald Eggs, Hacienda Crabs, Shark Bay Fish Factory and the Gascoyne Growers Markets. Carnarvon supermarket IGA has also adopted a buy local approach and purchases direct from the producer. Local seafood can be bought from several outlets in Carnarvon including Nor West Seafoods, Kai Fisheries and Hacienda Crabs. Shark Bay whiting, mullet, bream, crabs, snapper and mackerel is processed in Denham and sold direct to the public from the Shark Bay Fish Factory. In Exmouth direct sales occur from Kailis Fisheries a long line fishery off Nor West Cape.The majority of seafood packaged and processed in the region is destined for the export and domestic markets. The Gascoyne Growers Markets commissioned a feasibility study in 2005 to investigate potential to supply produce direct to the North West from the Gascoyne region. The study was funded by the Gascoyne Development Commission and identified strategies to address barriers to product distribution and the resources required to implement recommendations. A small scale project to supply produce direct to Exmouth is being piloted as a result of this study. Generally it has been difficult for the local and visiting population to seek out retail outlets in each town. Lack of exposure through low key marketing contributes to this difficulty or simply a lack of presence and exposure of specialist retail outlets in the central business districts.

Export A joint initiative between the GDC and Austrade provides the Gascoyne region with the Tradestart program. The Tradestart program is designed to assist Gascoyne businesses develop their manufacturing and export potential. Exporting can play a vital role in building and strengthening regional economies, by creating jobs and opportunities for small and medium businesses across a wide range of industry sectors. The services offered by the Tradestart program are designed to help Australian companies successfully venture into and establish business relationships in overseas markets, while also helping to reduce the risks associated with developing an international focused business. Product being regularly exported from the Gascoyne region includes table grapes, crabs, prawns and scallops.

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Hospitality The use of local food in accommodation and restaurant houses has been tried however the lack of impetus for individual operators and businesses to adopt a committed full scale specialty approach has brought few successes. Generally it has taken food entrepreneurs from outside of the region to highlight the value of the Gascoyne food. For example: Vogue Lifestyle and Spice magazines, ABC Surfing the Menu series and SBS food appreciation series have each capitalized on our rich food resources. However the ability to access the full range of local food is still limited. The food industry is not positioned strongly enough to back up any promotional efforts in the hospitality industry. Some primary producers would argue that the hospitality sector is not welcoming of local product as the local producers can not always guarantee continuity of supply all year round. Alternatively for the producers to supply local may not be financially viable or is too time consuming and difficult to balance with bigger crop production responsibilities and Perth market agent commitments. Recently industry, regional and local government demonstrated their commitment to the importance of Gascoyne food as a marketable asset by supporting the Jane Adams workshops hosted by the Gascoyne Growers Markets and the inaugural Taste of the Gascoyne event held in July 2006.

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Discussion, analysis and conclusion

Growth in regional confidence is vital to the progression of food initiatives in the Gascoyne. The integration of health, tourism, economic and social factors into a food system can pave the way for a successful formula that may provide exciting prospects for the Gascoyne. There has been an interest in food initiatives for some time. However there has not been a coordinated approach to this. Previous and current activities demonstrate the need for continued provision of resources and support to achieve food industry initiatives that can be more sustainable in nature. The quality, diversity and uniqueness of the Gascoyne food product are contributing to the development of an identity that can create significant leverage for the community. The Gascoyne region has a diverse food base however it has not developed or become well known when compared to other food regions in Australia. There are initiatives now that are in their infancy yet have further potential to be progressed forward. Intrinsic to this must be a genuine belief in the home grown product and a belief that the region can add value to its asset. The concept of thinking longer term must also be introduced to ensure industry advancement occurs simultaneously to the existing activities that are evolving and will continue to evolve from a passionate interest in the regions food. For example regional food groups are a new phenomenon in Australia and are generally perceived as having a first hand knowledge and understanding of regional food. Driven by local philosophy and understanding, traditionally they have adopted a ground up approach and are steered by local passion. These food groups are generally known to exist for the purpose of marketing and showcasing the food of the region. A recognized entity as this has greater ability to draw support from a range of Government agencies, Federal and State and Local Councils and could perhaps take on an industry approach also. This paper seeks to generate community discussion. Feedback will form the basis of a future community workshop to explore the concept of a Regional Food Group. The workshop could explore an all round approach to enhancing the Gascoyne food product and industry with some attention given for example, to the following areas; marketing and promotion, food trail, value adding, gourmet food tours, food bank, community gardens and industry development. The Gascoyne Development Commission invites you to respond to this discussion paper with comment on how the food industry can be further

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developed for the Gascoyne region. The following points may be used to guide your responses however are optional.

1. The potential of the Gascoyne to be visible and competitive in the food industry at a range of levels including the retail, industry, tourism, and hospitality sectors. 2. Potential stakeholders who may have an interest in supporting the development of food industry initiatives for the Gascoyne. 3. Critical success factors needed to enhance the Gascoyne food industry. 4. Community interest in participating in a Gascoyne food industry workshop.

Thank you for your response. Submissions will collectively be used to provide direction for future activities, particularly in framing the content of a workshop in early 2007. If your submission, or any part of it, contains confidential information, please mark your submission or the relevant part Confidential. Submissions will be received until 5pm Monday 29 January 2007 and can be sent to: Tami Maitre Senior Project Manager Gascoyne Development Commission PO Box 781 CARNARVON WA 6701 Phone: 99411803 Fax: 99412576 Email: tmaitre@gdc.wa.gov.au

References *Payet J, Gilles M, Howat P., Gascoyne growers markets: A sustainable health promotion activity developed in partnership with the community, Australian Journal Rural Health (2005) 13, 309-315

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