Central Land Council

Commercial Horticulture

In recent years horticulture has emerged as an important new industry in Central Australia with potential to provide significant economic and employment opportunities for Aboriginal landowners. This potential has been clearly demonstrated by the success of the table grape industry in the Pine Hill and Ti Tree areas, north of Alice Springs, where production valued at $14.5 million was achieved in 1999/2000. Projected production for 2000/2001 is expected to be in the vicinity of $18 million.

Research undertaken for the CLC Aboriginal Horticulture Strategy indicates there are a number of areas of Aboriginal land in Central Australia with climate, soils and ground water supplies which are suitable for commercial horticulture. Consultations with Aboriginal landowners in Central Australia have shown a strong interest in developing commercial horticulture projects on Aboriginal land.

Aboriginal landowners see horticulture as having the potential to create significant economic activity on their own lands and deliver major benefits by way income and employment. CLC Aboriginal Horticulture Strategy In February 1999 the CLC and the Indigenous Land Corporation agreed to jointly develop an Aboriginal Horticulture Development Strategy for Aboriginal land in Central Australia.

The Strategy document was prepared by agronomic consultant Sam Miles and Associates using market analysis prepared by Scholefield and Robinson Pty Ltd. The key elements of the CLC Aboriginal Horticulture Strategy are:

Aboriginal landowners in Central Australia have expressed strong interest in developing commercial horticulture projects on their land to provide benefits through income, employment and training.

At least seven areas of Aboriginal land with commercial horticultural potential have been identified by two workshops (March 1999, May 2000) conducted jointly by CLC and NT Department of Primary Industry.

Areas of Aboriginal land suitable for commercial horticulture have been identified at Ti Tree, Utopia, Willowra, Finke, Alekarenge and two separate locations near Tennant Creek. (See attached Map. Please note that the boundaries of water basins indicated on the map are notional only.)

Market analysis has identified a number of suitable commercial crops for Aboriginal land in central Australia including table grapes, citrus, dates and other fruits and vegetables.

A joint venture model seems most appropriate for developing commercial horticulture on Aboriginal land. Under this structure Aboriginal landowners provide land, water, equity and labour whilst the joint venture partner brings investment, technical expertise, management and marketing.

Joint venture management agreements should give high priority to achieving Aboriginal training and employment outcomes.

Access to Aboriginal land for commercial horticulture projects will require a long term lease arrangement to provide sufficient security to encourage investment and participation in the joint venture.

Project finance can be sourced from Aboriginal funding agencies such as ATSIC, Indigenous Land Corporation, Aboriginals Benefit Account and private investment. Financial assistance for Aboriginal training and employment is available from the Department of Employment Workplace Relations and Small Business (DEWRSB).

A strategic approach to developing horticulture on Aboriginal land must be taken with consideration given to whole of basin management, Aboriginal equity in packing and marketing operations, strategic alliances with industry groups and integrated development across a variety of crops.

The Aboriginal horticulture strategy requires the support and ongoing involvement of Aboriginal agencies such as ATSIC, Indigenous Land Corporation, Aboriginals Benefit Reserve and NT Government departments of Primary Industry, Industries and Business, Asian Relations and Trade, Lands Planning & Environment

The strategy calls for the creation of an Aboriginal horticulture development corporation for Central Australia. In the strategy this body is referred to as the Centrefarm Aboriginal Corporation. Its purpose is to drive the project development process and ensure that Aboriginal interests achieve a significant level of equity and employment from enterprises developed on their land

Aboriginal Horticulture Working Group

The CLC has established an Aboriginal Horticulture Working Group for Central Australia. The purpose of the Working Group is to provide agency support for the development of Aboriginal horticulture projects and to implement the CLC Strategy. Membership includes ATSIC, Indigenous Land Corporation, Aboriginals Benefits Account and the NT Departments of Primary Industry & Fisheries, Lands Planning & Environment, Industries & Business and Asian Relations & Trade.

Utopia Citrus Project

Since 1997 the CLC has assisted the Aboriginal landowners of the Angarapa Aboriginal Land Trust (formerly Utopia) to advance a proposal to establish a 200 hectare joint venture citrus development on their land. In July 1999 a water supply feasibility study was completed by Coffey Geosciences Pty Ltd and a business plan prepared by Scholefield and Robinson.

Both of these expert studies confirm the technical and commercial viability of this project. Subsequent financial and commercial assessments have been undertaken by Deloitte Touche Tohmatsu (on behalf of ATSIC), NT Office of Resource Development and Randall McGuckian agribusiness consultants. After receiving a formal joint venture proposal from a leading SA citrus company based in the Riverland, CLC consulted with Aboriginal landowners of the Angarapa Aboriginal Land Trust in relation to leasing of the land and establishing a joint venture agreement.

CLC also facilitated consultations between Utopia Farms Aboriginal Corporation (representing the Aboriginal landowners) and ATSIC, ILC and ABA in relation to securing project finance. In May 2001 a meeting of the key Aboriginal funding agencies decided that a commercial trial project at Utopia would be supported.

The purpose of the trial is to test the viability of the proposed larger scale citrus development and also to examine the feasibility of growing other crops such as table grapes. In July 2001 the CLC engaged a consultant, who will work closely with the NT Department of Primary Industries and Fisheries, to prepare a detailed proposal and operational plan. The consultant's report will be completed by August 2001. It is hoped that funds can be made available for work on this project to commence by late 2001 or early 2002.

CLC Horticulture Study Tour of Israel

A group of five Aboriginal landowners from Central Australia took part in a ten day horticulture study tour of Israel in May 2000. The purpose of the trip was to examine Israeli approaches to rural and regional development under arid conditions and the operations of the kibbutzim and moshavim farming systems. Israel is a recognised world leader in irrigation technology and desert farming systems. The CLC party visited a variety of farms producing dates, citrus, grapes, vegetables, olives, almonds, aquaculture and dairy produce for domestic and export markets.

The tour group also visited the Knesset (Israel Parliament), horticulture research centres, the Netafim irrigation company and historic and religious sites in Bethlehem and Jerusalem.

The Aboriginal landowners on the trip came from five areas of Aboriginal land in central Australia with potential for commercial horticulture. They were Lennie Jones Ngwarai (Utopia), Patch Price (Ti Tree), William Brown (Willowra), Jeffrey Lauder (Alekarenge) and Richard Doolan (Finke). The CLC party also included horticulture experts and representatives from NT DPI & F and ATSIC. The Aboriginal landowners found the trip to be a rewarding and memorable experience. They were impressed with Israeli achievements in desert farming and returned to Australia convinced that much of what they saw could be applied on their land in central Australia provided there was coordinated development approach taken by government and relevant agencies.

The CLC Israel Study Tour was largely financed by a grant from the Richard Pratt Foundation with generous assistance also being provided by Netafim Australia Pty Ltd the Israeli based irrigation company.

Centrefarm Aboriginal Corporation

The CLC worked closely with relevant Aboriginal landowners to establish the Centrefarm Aboriginal Horitculture Limited in August 2002 to assist Indigenous landowners develop commercial horiculture in the CLC region.

The company will conduct feasibility studies, analyse market potential and attract investors and joint venture partnerships. Centrefarm will also guide and advise landowners on all aspects of enterprise development.