The value of the struggling agricultural sector to the SA economy is often overlooked

South Australia’s primary producers, who are currently struggling with poor seasonal conditions, don’t get the credit they deserve, the South Australian Business Chamber argues.

SA farmers are doing it tough this year.

“You’ve made good money the last couple of years, so you won’t mind if we don’t

pay you anything for the next 12 months.”

It’s hard to imagine business owners accepting this offer and certainly not the

employee whose bank account is topped up every fortnight in a PAYG arrangement.

Yet I’ve heard this sentiment expressed about the dire scenario facing businesses

working across the agricultural sector. The implication being that those working the

land should “make hay while the sun shines” and be grateful for it when it comes.

Across our state, our agricultural sector is facing significant seasonal challenges. I’ve

travelled through our regions in the past few months and seen the impact of lack of

rain, which has sometimes felt at odds with the conditions we have experienced in

Adelaide. The good people of the fertile South-East reacquainted me with the

expression “green drought” telling stories of hay being shipped from across the

border because locals could not grow their own feed.

In other regions, crops won’t be sown this year and livestock is being sold off rather

than incurring the additional cost of feeding the animals.

Like many primary producers, the wine community has been devastated by frost. I’ve

spoken to a winery that lost 100 per cent of their estate, while losses in the vicinity of 60-

80 per cent are not uncommon in some regions. To believe this is nature’s way of

addressing a structural oversupply is both simplistic and ill-informed. There is still

strong demand for our grape varieties and the investment made by growers and

wineries needs to be recouped.

Meanwhile our tomato growers – and related industries such as capsicum and chillies

– are either locked out of markets, or under threat due to the national and

international restrictions being placed on supply out of South Australia linked to the

highly contagious tomato brown rugose fruit virus. Their livelihoods are under threat

and workers have lost their jobs.

Businesses operating in our agricultural community feel their plight is not being

heard or taken seriously by government. For a sector that contributed $18.5bn to the

state’s coffers last year, agriculture seems to be getting lost in the state’s messaging

about what drives the South Australia economy.

While I appreciate an image of a farmer driving a header may not capture the

imagination like an astronaut in a space suit, a warship crashing through the waves,

or a street party lighting up the East End, it is who we are and will continue to play a

critical part in our role as the nation’s food bowl.

If you think an affiliation with technology should earn sectors like defence, space,

renewables, biomed etc, greater attention in the 21st century, spend a few minutes

with the smart operators across meat, wine, dairy, fruit, nuts – in fact any agricultural

producer. You will learn of the massive role advanced technology is playing to find

innovative solutions to tackle climate challenges, drive productivity and improve

global competitiveness.

This approach is a survival mechanism for an industry that battles climate, market

conditions, trade tensions and the role of price taker every single day.

As the saying goes, “Let’s not waste a good crisis.” The season may be a disaster, but

it is also an opportunity to shine the spotlight on the value of this sector, its

businesses and community. That may take shape through policy reform, government

support initiatives or simply appreciation and understanding.

For all it provides South Australia, this is an industry we should nurture and treasure,

not cheer on in the good years and turn away from in the bad.

Andrew Kay is chief executive of the South Australian Business Chamber

Originally published as The value of the struggling agricultural sector to the SA economy is often overlooked