Governments will not be convinced to support agriculture, according to Ord farming businessman Tony Galati. “Bigger growers than us haven’t been able to make a difference with Government,” he told Fresh Plaza. “This is our fourth year farming up there [Ord] and it’s very costly. Nearly $5,000 per acre.” The costs issue has resurfaced following the release of new land for development. If successfully developed the latest release will increase the size of the irrigation scheme area to 35,000ha.
The Government is aware of the issues facing farmers across the country, according to Mr Galati, but he said he didn’t see any signs of action, apart from agreement from Western Australia Premier Colin Barnett, who has said it should be easier for farmers to hire foreign workers. His comments also echo those of Kagome CEO John Brady, who told Fresh Plaza at the end of May that energy prices had almost tripled for his tomato processing business, based in Echuca, Victoria. “Last year the average price of water was about $75 per megalitre. It’s now up around $180-$200 per megalitre. We’re going to have to pass on increased water prices to consumers,” he explained. Kagome also made submissions to the Agricultural Competitiveness White Paper to present its views to Government.
Labour costs, and water costs were the two biggest factors disrupting the Galati business efforts to re-establish a banana plantation in Ord, following the release of more land in the area, Mr Galati said. “Back in the ‘70s and ‘80s all bananas came from Kununurra, but I’d be looking at other alternatives now,” he said. “We can’t see the benefit in it anymore. It’s all a numbers game and with bananas now they don’t add up.”
When it comes to hiring workers, Mr Galati said the issue is the red tape employers have to jump through. “We’re not really asking a lot. When we hire visa workers we pay super, and they never probably claim it.” Things have gotten so bad that the current generation are starting to walk away from their farms, according to him. “I don’t blame them. I don’t think there’s anything to look forward to for the younger generation.”
The Government finally released the Agricultural Competitiveness Whitepaper in the first week of July, and water costs have not featured heavily in commentary since it was made public.