Storm-hit growers facing threat of foreign investors being allocated critical water supplies

FLOOD-HIT farmers fear they could be put out of business as the State Government considers allocating critical water supplies to foreign investors.

GROWING CONCERN: Farmers Thang Le and Daniel Hoffmann are opposed to an international consortium opening farms in the area. Picture:Tom Huntley

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FARMERS recovering from devastating floods fear they could be put out of business as the State Government considers allocating critical water supplies to foreign investors.

Adelaide Plains farmers say the plan to allow investors, including two Spanish companies, to establish hi-tech greenhouses in the Virginia region threatens their livelihoods.

Growers in the area receive about 17 gigalitres of recycled water from the Bolivar Waste Water Treatment Plant each year, via the Virginia Pipeline Scheme. SA Water plans to make an extra 20GL of recycled water available through the pipeline.

Local growers say they are relying on that extra 20GL to maintain and enhance their business.

But two Spanish firms — water technology experts Valoriza Agua and horticultural company New Growing Systems — have joined South Australian firms Tonkin Consulting and Leed Engineering and Construction to put forward a proposal to use the additional water to grow crops in new hi-tech greenhouses said to “maximise production and water-use efficiency”.

The State Government has agreed to conduct a feasibility study on the potential economic and employment benefits of the plan, which proponents say will create 5000 jobs.

It is expected to report back by the end of the year.

However, local farmers are warning it would be disastrous if the proposal is approved.

Hillier farmer Thang “Kevin” Le said many existing producers were reluctant to expand their family businesses and were concerned about their future because of uncertainty about where the extra water might go.

“They can deal with a flood because the water will recede and people can recover, but when there’s too much competition and no support for the existing farmers, there’s no point expanding,” he said. “There’s no point thinking about the future, no point getting educated to progress your own business.”

Mr Le said it was unlikely that produce from the proposed greenhouses would attract export deals into China because the Chinese market wanted vegetables “grown out of the soil — that’s what Australia is famous for”.

“So they're going to flood the local market,” he said.

“They say it’s going to create about 5000 jobs but, realistically, it’s going to destroy about 10,000 (existing) jobs.”

Penfield tomato and capsicum producer Daniel Hoffman said many farmers were not even aware of the plan and “would break down and cry” if they knew. “We’ve gone through 12 months of trying to work out where the water is going to go, for them to basically now take it out from under us. They really need to look after the existing farmers.

“There’s no place left for them to come back into the market if they recover (from the floods).”

The Horticultural Coalition of SA has written to the State Government warning against the consortium’s proposal.

A Government spokeswoman said it was seeking “a proposal that offers the greatest economic benefit and jobs growth for South Australia”.

“Sourcing goods and services locally is included in the evaluation criteria and this will be further explored during the feasibility study,” she said.

The spokeswoman said the Government had held briefings with key industry and community groups.

Opposition agriculture spokesman David Ridgway said it would make “more sense” to direct the extra 20GL to existing producers “so they can all expand and put on a couple of extra employees”.

“You bring a new producer in that has big volumes — if they don’t export, all it means is that they drive prices down and eventually put all of these (existing) people out of business,” he said.

About 100 farmers met yesterday in Virginia to assess storm damage to farms and greenhouses in the region — which has been estimated to be as high as $150 million — and apply for assistance to pump out floodwater and clear away debris.

Among those hardest hit by the recent floods was capsicum farmer Chao Tha, who lost 140,000 plants worth about $300,000. Mr Tha, was due to harvest his crop within weeks but fears it will now take up to two years to fully recover.