What is Innovation Cluster?

1. INNOVATION CLUSTERING
Building a Place-based Agrifood Ecosystem
Dr Chris Vas
General Manager

2. Key Tenets
1. Ecosystem approach
2. Resilience
3. Technology underpinning
4. Skill and talent development
5. Policy acceleration
6. Network activation
7. Sustainability
SMART CLUSTERING
Source: Randall McHugh (2020) Australian agrifood hubs: Industry cluster and precinct approaches,
Future Food Systems, Sydney
INNOVATION CLUSTERING

3. Population: 18,651
9 towns. Main town Pinjarra
44%>50 years old
VS
33% > 50 years old in Perth
7,640 jobs, but 57% of workers live
outside Shire
22% high income
VS
31% in Perth
High level of disadvantage
(44th out of 138 SEIFA score)
90% coastal plain cleared of
vegetation
Waterways under threat from
catchment use and drying climate
Heavy car reliance, but only 62%
own their own car
37% long-term health issues
VS
30% Perth
Shire of Murray

4. Shire of Murray
…to 2051 4

5. Diversification of Murray’s Economy
The search for 74,000 new jobs in Peel by 2050

6. POPULATION = 146,486 in 2021 (2011 - 107,607)
GROWTH RATE 2011-2021 = 36.13% (3.61% p.a)
FORECAST POPULATION
2031 = 212,540 TO 2050 = 444,000
AREA = 5,600 SQ KMS / 0.2% OF WA
Gross Regional Product 20-21 = $8.984 Billion
Regional Economic Output = $14.327 Billion
Major Contributors to GRP – Manufacturing,
Mining, Construction
AVERAGE AGE = 42 years
MEDIAN WEEKLY INCOME = $680
ECONOMIC TASK FOR THE PEEL REGION

7. The Big Picture
v Intergenerational transformation agenda (to 2050)
v Population growth (130K to 440K by 2050)
v Socio-economic transformation through integrated
approach and regional resilience
v Environmental considerations
v Three Pillar Strategy – Food Zone, Business Park, Water
Initiative
To achieve:
1. sustainable economic growth & industry diversification
2. Improved standard of living
3. Provide an innovative, sustainable source of food and
water
TRANSFORM PEEL

8. BUILDING THE ECOSYSTEM OF PARTNERS
PARTNER ECOSYSTEM

9. THE PEEL BUSINESS PARK
Microgrid
Stage 2
General Industry
Vertical Farm Commercial Bushfire
Centre of
Excellence
Food Innovation
Precinct WA
MAR Bore

10. Food Security
Experience over the past 50 years has shown
that secure food systems at the national level
are NOT achieved simply through the
domestic production of sufficient food.
…critical to ensure that individuals are able to
access good quality, safe and nutritious food,
and to utilise it effectively for an active and
healthy life.
Source: Second Murdoch Commission of Food Security, Trade and
Partnerships, 2015
PRODUCTION – PRODUCTIVITY conundrum:
Population growth and longevity
• Population has grown from 3 billion in 1960 to
over 6 billion in 2001 hitting 8 billion in 2023 and we
are on track to hit 10 billion by 2050
• Longevity has increased from only 90,000 people
living to 100+ back in 1990 to 3.7M by 2050
Source: UN FAO 2020, World Economic Forum 2021
THE BURNING PLATFORM – WHY?

11. WHAT CAN WE DO TO IMPROVE THE FOOD PRODUCTION SYSTEM PARTICULARLY
THE PRODUCTIVITY WITH WHICH FOOD IS PRODUCED AND/OR MANUFACTURED INTO
INNOVATIVE F&B PRODUCTS THAT CONSUMERS NEED/DEMAND?
WHAT CAN WE DO TO HARNESS A CIRCULAR ECONOMY ECOSYSTEM THAT CAN AID
REDUCTION OF FOOD LOSS DURING PRODUCTION AND TRANSPORT; AND, FOOD
WASTE AT THE HOUSEHOLD LEVEL?
Technological solutions for new forms of production
Data capture / Precision farming
Supply chain efficiencies
Advanced F&B manufacturing
Innovative food products
etc … etc … etc
FOOD SECURITY – PRODUCTION & PRODUCTIVITY
FIPWA MISSION

13. Mission
Build trust in WA’s production
• Industry-led certification
Maintain and build competitiveness
• Improve digital connectivity
• Improve logistics for supply chain connectivity
• Develop new skills for primary industries workforce
Differentiate, value-add and diversity primary industries
• Expand value-add in the agribusiness sector
Secure and grow markets
• Strengthen market access and marketing
• Create industry growth partnerships

14. RESEARCH AND DEVELOPMENT- MURDOCH UNIVERSITY
› Food science R&D labs - microbiology, food sensory lab, test kitchen,
bench scale food processing
› Learning facilities – Food Science and Nutrition Degree
› New inputs for food manufacturing, cosmetics and nutraceuticals
› New methods and technological innovations for the food industry
FOOD TECH FACILITY- FUTURE FOOD SYSTEMS CRC
› Common-use industry facility for processing, manufacturing and packaging
› Small batch commercial food manufacturing
› New product creation for domestic markets and export
› Support existing and new companies focus on value-add in WA
› Product lines could include grains, oil seeds, animal protein, dairy, horticulture
INNOVATION
› Co-working spaces
› F&B consulting – Asia focussed in relation to consumer and market
testing, export strategies and financing/investing solutions
› Trade and distribution into Asia including e-commerce, retail and white-
labelled product branding

15. Capacity-building with
local schools
Trade and
distribution
Chubu Association of
Corporate Executives
Protein Trial
Protein Trial
International
conferences Australia Malaysia Business
Chamber
INDUSTRY ENGAGEMENT

16. FOOD
INNOVATION
PRECINCT
WESTERN
AUSTRALIA
INNOVATION
SHOWCASE
Indoor
Production
Eden Towers

17. • Controlled Environment Agriculture (CEA)
• Vertical Farming - Significantly greater
productivity: yield, quality, consistency
• Internet of Things (IOT) remote growth monitoring
• First industrial-scale indoor vertical farm in WA
• R & D Collaboration with FIPWA and MU
• Enterprise support programs and grants
EDEN TOWERS

19. FOOD
INNOVATION
PRECINCT
WESTERN
AUSTRALIA
INNOVATION
SHOWCASE
Supply Chain
Traceability
GrowHub SG

20. Technology driven traceability solutions
THE GROWHUB INNOVATIONS

21. › FIPWA could increase WA’s food
and beverage (F&B) output by 1-
3% in the first 5 years
› Equates to:
› 17-51 new F&B businesses
› $110m to $330m economic
output
› $247m to $737m value add to
other sectors
› 169-506 direct FTE
› 323-977 indirect FTE
IMPACT
Trade
and
distribution
Australia Malaysia Business Chamber
Industry Innovation Chubu Association of Corporate Execs

22. ENTERPRISE SUPPORT PROGRAM (ESP)
INDUSTRY ACTIVATION - A $3.85M COMPETITIVE GRANT PROGRAM
OBJECTIVES:
• Facilitate innovative developments in the agri-business
sector
• Support (new) product development, innovation and the
commercialisation of research
• Scale up small-medium enterprise and enhance export
capability
• Create new opportunities for value-added and food
processing and manufacturing
• Develop FIPWA as the hub of agrifood innovation in WA
A PARTNERSHIP BETWEEN:
Shire of Murray, DevelopmentWA and the Department of
Primary Industries and Regional Development
• Provides up to $600K in 1:1 (minimum) co-funding
• Maximum project duration: Two years
• Applications accepted at any time
BUSINESS/PRODUCT DEVELOPMENT, COMMERCIAL RESEARCH AND DEVELOPMENT
COMMON-USE EQUIPMENT
USER INCENTIVES TO ACCESS WAFIP SPACE, FACILITIES AND SERVICES
1
2
3
Research projects may include - the commercialisation of new ag-technology, business
development opportunities, product development and value-adding, adopting innovation,
enabling market access and increasing local capabilities and efficiencies.
Funding to enable the purchase of specialty equipment to drive innovation, diversification and
business development outcomes. Equipment must operate from the FIPWA for no less than fou
years.
Funding is available to undertake a project, access to the FIPWA through leasing common-use
workspaces, programs or services, facilities. Funds will enable applicants to access these
facilities at a subsidised cost to deliver innovative business development projects.

23. Innovation Agenda

24. Work in progress…
1. Ecosystem approach … aligning vision, strategy and partners is
challenging;
2. Resilience … building an appetite for continuous change and innovation;
3. Technology underpinning … digital but place-based;
4. Skill and talent development … at all levels of education and training;
5. Policy acceleration … building capability in the bureaucracy;
6. Network activation … need to value add beyond institutional boundaries;
7. Sustainability (e.g. renewable energy) … needs a focus on ESG.
SMART CLUSTERING - TAKEAWAYS
INNOVATION CLUSTERING - TAKEAWAYS