investNT - Primary Industries

Primary Industries

Primary Industries in the Territory Comprise:

cattle and other livestock (including buffalo, crocodiles, poultry, pigs and camels)
horticulture (fruit, vegetables, nursery and cut flowers)
mixed farming (field crops, hay and seeds and forestry).

Cattle

The cattle industry is the largest contributor to agriculture, forestry and fisheries in the Territory, comprising 47.9% of the production value in 2009-10. The flow-on effects from the cattle industry, particularly transport and retail trade, are major contributors to regional economies in the Territory. The value of Northern Territory cattle production for 2009-10 is estimated at $251.1 million, down 4.1% from 2008-09.

In 200-10, 291 048 head of live cattle, valued at $165.5 million, were exported through the Port of Darwin. This represented 45% of Territory cattle, with the remaining 55% sent to interstate markets. As the Northern Territory does not have a commercially operational abattoir all meat products are slaughtered interstate or overseas.

NT cattle represented an estimated 32.1% of total Australian live cattle exports in 2009-10. The 291 048 Territory cattle exported in 2009-10 predominantly went to South East Asia with 95% going to Indonesia, 3.2% to the Philippines and 1.6% to Malaysia and Brunei combined.

Cattle Outlook

Cattle numbers are expected to increase in 2011 and 2012 as pastoralists rebuild herds following destocking in 2007-08. Productivity improvements such as better sub-division fencing and watering points are also expected to support increased cattle numbers.

The price of cattle is expected to remain strong in 2011 and 2012 with reduced levels of competition in South East Asia from Argentina and other South American countries as a result of recent drought conditions.

Future Market Developments

The proposed reopening of the Batchelor abattoir in 2011 and the possible addition of a large scale abattoir in Darwin in 2012 would provide outlets for cattle which do not meet export specifications and may support growth in interstate imports of out-of-scope cattle.

Continued import restrictions into Indonesia, coupled with a strong Australian dollar, are expected to result in decreased live cattle exports from the Port of Darwin in 2011 and 2012.

Other Livestock Industries

Other livestock includes the live export of buffaloes, horses, camels, deer, pigs and goats with horses, camels and crocodiles exported live interstate. Crocodile skins and flesh are produced for local and export markets.

In 2009-10, the production value of other livestock industries in the Territory was $14.8 million. This is a 13.2% decrease from 2008-09. This decrease in exports is primarily due to a decrease in the exports of buffalo to Asian markets and a decrease in crocodile skins.

Horticulture

The Territory horticulture industry includes fruit, vegetables, nursery products and cut flowers. Melons and Mangos comprise about two thirds of the Territory’s horticultural production by value.

In 2009-10, Department of Resources (DoR) reports that there were about 630 horticultural enterprises in the Territory. DoR estimates that the value of the Territory horticulture industry in 2010-11 was $138.7 million, a 17.9% increase from 2009-10, largely reflecting significantly increased melon production.

Bananas	Bananas are mainly grown in Darwin’s rural area, Lake Bennett and Yirrkala near Gove. Banana production in the Territory declined significantly between 2002-03 and 2008-09 reflecting the impact of Panama disease on the Territory’s banana industry. However, new management strategies for this disease, such as annual crop rotation, resulted in a 23% increase in the value of banana production in the Territory in 2009-10. DoR estimates that the value of banana production in the Territory in 2010-11 remained unchanged compared to 2009, reflecting a modest increase in production volumes, offset by slightly lower banana prices.
Grapes	Table grape production is mainly at Ti Tree, about 300 kms south from Tennant Creek, although there are trial plantings at Katherine. Table grape production has suffered from poor yields in recent years due to nematode infestation and depressed prices due to increased interstate competition. DoR estimates that the value of table grape production in the Territory declined by 55.7% in 2010-11, reflecting a 15.6% decrease in table grape production volumes and significantly lower prices.
Mango	Mangoes are the second most valuable horticultural industry in the Territory. Production is mainly located in Katherine and Darwin’s rural area. Due to climatic conditions, mango trees in the Territory tend to flower earlier than those in the eastern states and Kununurra. The Katherine region also produces relatively high-quality mangoes due to hot and dry ripening conditions. In 2010-11, the value of mango production in the Territory is estimated to have declined by 1.4% to $45.4 million, reflecting lower production volumes, which were slightly offset by a small increase in mango prices. Production in the Katherine region increased in 2010-11 driven by higher yields, particularly among younger plantings reaching maturity. However, production in the Darwin region decreased due to unusually warm weather between July and September 2010.
Melons	The main melons grown in the Territory are rockmelons and seedless watermelons. These are sold to southern interstate markets in the winter months. Melon production in the Territory is estimated to have increased by 90.3% to $46.4 million in 2010-11, overtaking mangoes to become the largest contributor to the value of horticulture production. This growth reflects additional plantings in the Darwin, Katherine and Tennant Creek regions. The volume of melons produced is estimated to have increased by 70.6% in 2010-11, while the price is estimated to have increased by 11.5%.
Mixed Farming	Mixed farming in the Territory includes hay and pasture seed production, cereal crops such as sorghum and maize, and other crops such as peanuts, sesame and soybeans. Hay and fodder grown in the Katherine, Douglas Daly and Darwin areas for the live cattle export industry accounts for the bulk of mixed farming in the Territory. Katherine also produces many of the Territory’s seed and cereal, and other crops such as peanuts. The value of field crop production in 2010-11 is estimated at about $14.7 million, a decrease of 11.6% from 2009-10, reflecting lower peanut production.
Vegetables	Vegetable production in the Territory mainly comprises cucumber, bitter melon, okra and snake bean with a range of other vegetables grown in small volumes. Production is primarily located in Darwin’s rural area, with cucumbers the largest contributor to the value of production. In 2010-11, the value of vegetable production in the Territory is estimated to have increased by 14.2% to $22.6 million, reflecting higher prices for cucumbers, bitter melons and snake beans, and higher pumpkin production. The quantity of vegetables produced increased, mainly reflecting higher demand for pumpkins. Increased bitter melon, snake bean, and cucumber production volumes also contributed to growth in the year.

Horticultural Outlook

The value of horticultural production is expected to increase in 2011-12, reflecting increased mango, vegetable and citrus production. Melon production is expected to remain stable following significant growth in recent years.

Higher mango and citrus production is expected, driven by maturing plantings in the Katherine region, while the expected rise in vegetable production reflects significant investment in new packing and storage facilities in the Territory to meet increased demand from large buyers in southern states.

Harvest of late-flowering mango varieties planted from 2004-05 is also expected to support increased mango production in coming years.

Forestry

Forestry plantations continue to be a growth area for Territory rural industries. Plantations on the Tiwi Islands continue to grow towards maturity with an expected initial harvest estimated in 2012. African mahogany planting in the Douglas Daly region is another area being developed by agricultural investment companies in the Territory. Plantations will potentially exceed 40 000 hectares, with harvesting estimated to begin in 2023. These hardwoods are expected to be exported to Asia. High levels of forestry investment in the Douglas Daly region by hardwood plantation companies in 2007-08 are signalling a land use change in the region. Global demand has been increasing steadily for decades and it is this market opportunity that agribusiness investors are looking to exploit in the Douglas Daly region.

Source: 2011-12 NT Budget.

Key Industry Contacts

Northern Territory Cattlemen's Association Inc

The Northern Territory Cattlemen’s Association Inc represents more than 90% of pastoral operations in the NT, from small family operations to the large corporate organisations. Its members manage a landmass in excess of 620 000 square kilometres producing 532 000 high quality cattle per year.

Tel: +61 8 8981 5976
Fax: +61 8 8981 9527
Email: office.darwin@ntca.org.au
Web: www.ntca.org.au

Northern Territory Horticultural Association

The Northern Territory Horticultural Association is an industry organisation that is directed by a council whose voluntary members and office bearers are elected by members of their relevant industry commodity groups.

Tel: +61 8 8983 3233
Fax: +61 8 8983 3244
Email: ntha@ntha.com.au
Web: www.ntha.com.au

Northern Territory Agricultural Association

The Northern Territory Agricultural Association represents agricultural industries in the Northern Territory. Established in 1996, it represents the priorities of primary producers and agribusiness entities in the Katherine Region.

Tel: +61 8 8972 3440
Fax: +61 8 8972 3441
Email: office@ntaga.com
Web: www.ntaga.org.au

Government Support

Primary Industries Group

The Primary Industries Group delivers strategic services that support profitable and sustainable primary production.

It works in partnership with producers, industry bodies, community groups and related agencies to promote industry growth and ensure access to markets for animals, plants, and animal and plant products.

Services include:

inspection, treatment and certification services for animals, animal products, plants and plant products
research and extension programs to help producers sustainably lift crop and stock yields and capacity
development of best-practice farming methods and new crop for specific environments
Indigenous pastoral and horticultural development
bio-security and laboratory services for plant and animal health
monitoring of, and response to, emergency and endemic animal and plant pests and diseases.

With input from other relevant Northern Territory Government agencies, Primary Industries has coordinated the production of a booklet entitled: Information for Prospective Investors in Agricultural Enterprises in the Northern Territory. This booklet is available from the Department of Resources website.