Outlining major transport & logistics needs for Queensland’s horticulture exporters


Published on

Alex Livingstone, CEO, Growcom delivered this presentation at the 2012 Queensland Transport Infrastructure Summit.
The State Transport Infrastructure Series of events represent the leading forums in Australia to assess the future plans for transport infrastructure development and financing across Australia. For more information, please visit http://www.statetransportevents.com.au

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Outlining major transport & logistics needs for Queensland’s horticulture exporters

  1. 1. Transport and logistical needs for the Queensland horticulture industry Alex Livingstone CEO, Growcom
  2. 2. Growcom • Representation, leadership, information and consultancy services for fruit, vegetable and horticultural industries. • Specialising in – Policy development and advocacy – Industrial relations & workforce development – Climate impacts and adaptation for horticulture – InfoPest and biosecurity – Sustainable land and water management – Industry communications
  3. 3. Qld Horticulture – an overview • Second largest agricultural sector in Qld • Production horticulture includes vegetables, fruits, nuts, mushrooms • 2011/2012 GVP $2.4 B • Australia relies on Qld’s fresh produce – one third of national production – 70% exported beyond state boundaries
  4. 4. Essential ingredients for a successful horticulture industry • Land • Water • People – growers, skilled labour • Transport – Critical supply chain partner – 20% production costs – Transport of produce to market must be rapid, reliable, cost efficient, professional – Cool chain must be maintained – Handling, damage, delay must be minimised
  5. 5. • Major crops – bananas, tomatoes, capsicum & chilli, strawberries, avocados, mango • Key highways – Bruce, Warrego, Cunningham, Burnett, Kennedy, Dawson • Major international exports – Citrus, mango, avocado, tropical fruits Production regions
  6. 6. Industry structure & supply chains Export Import Production Wholesalers Other Intermediaries Retail Foodservice Grocery Independent Specialty Takeaway Dining Out Event Institutional • Exporters • Fresh Cuts • Canneries/Juice • Food Manufacture
  7. 7. Pathways to markets • 90% fruit & veg produced is for domestic markets • Domestic – Supermarkets, independent grocers, food services – Processing • Domestic market trends to watch – Growth of food services sector – Regional and local food networks – Decline in processing due to increasing import of ingredients
  8. 8. Transport to domestic markets • 80% of fresh produce transported via refrigerated vehicles • Supermarkets – Direct to RDCs or from wholesale markets • Grocers – Mostly via wholesalers, some direct supply • Food services – Via light processors / fresh cuts or wholesale markets • Processors – Generally direct to processing facilities
  9. 9. Transport to international export markets • Most horticultural exports by ship – Consignments packed, loaded onto shipping containers, trucked to exporters at wholesale markets then on to ports. – Some direct from grower to air/sea port via truck • Major export markets – Japan, USA, Singapore, Hong Kong, Malaysia, United Arab Emirates
  10. 10. Performance of transport systems • Freight systems meet needs of most growers, regions and commodities most of the time • Some lack of availability in peak times (winter/spring) – from Wet Tropics, Bowen-Burdekin, Emerald, Wide-Bay, central and southern Burnett • Air freight capacity sometimes inadequate
  11. 11. Impact of natural disasters on transport • Cyclone Larry March 2006 – No transport of fresh produce out of Wet Tropics for more than a month • Flooding 2009 – Road closures in Wet Tropics and Central Highlands disrupted supplies to southern markets • Flooding Dec 2010/Jan 2011 – Road closures, load restrictions across state – Closure of Brisbane Markets • Cyclone Yasi 2011 – Multiple road closures across North
  12. 12. Transport challenges • Highway upgrades • Efficiency • Changes to post-harvest treatments • Disaster and contingency planning • Responsiveness to market trends • Possible growth of export markets
  13. 13. Highway Upgrades • The lack of an all weather highway system the greatest concern for horticulture • Protect key highways from flood, landslide, extreme weather events • Bypasses for regional towns to reduce travel times • Apply improved hydrological / catchment data in road planning
  14. 14. Efficiency • Hort & transport under cost/price pressures – Retailers; increasing fuel / input costs; carbon price impacts in longer term • Growers - sharper focus on delivering specific products to specific markets – Reduce unplanned transhipping • Supermarkets - rationalising suppliers • Regional food systems • Some commodities may consider rail
  15. 15. Changes to post-harvest treatments • Deregistration of key chemicals for post-harvest treatment e.g. for fruit fly • Irradiation/X-ray may become the primary treatment • Produce would be treated at central facilities en route to southern / X markets – Will require unload and reload – May add 1- many hours to journey
  16. 16. Disaster and contingency planning • Events of 2010/2011 highlight need for better emergency response and contingency planning – Alternative routes to markets – Alternative transport modes – Improved communication systems – More precise application of load limits – Improved collaboration between stakeholders
  17. 17. Responsiveness to market trends • Regional food networks forming in TNQ, Bundaberg/Burnett, SEQ – Customised transport services a key ingredient • Growth of food services sector – In particular institutional catering
  18. 18. International export market growth? • Horticulture seeks to grow export markets – Capitalise on global population growth and food security concerns – Main focus on Asia and the Middle East • Qld Government goal to double horticultural production by 2040 – Domestic markets too small – Requires export market development
  19. 19. Opportunities to collaborate • Advocate for investment in road infrastructure improvements • Contingency planning • Statistics and data to support better transport planning
  20. 20. Take home message The transport industry is an essential supply chain partner for horticulture - critical to the current and future operation of successful horticultural businesses and industries.