Food and agriculture

The perfect location for food and agriculture

With ideal growing conditions, affordable land, relative freedom from disease and pests, abundant water resources and strong research and development capability, it is no wonder that Tasmania is a destination of choice for food manufacturing and agri-businesses.

Tasmania’s food and agricultural sector is highly diversified and includes:

• dairy
• potatoes, carrots, onions, brassica and other vegetable varieties
• livestock production including beef, lamb, pork, poultry, and wool
• fruits (including berries, cherries, apples and pears), nuts and vegetables
• viticulture
• field crops including wheat, barley, seeds, poppies, hemp, pyrethrum and hops
• niche produce such as honey, truffles, herbs, cut flowers, bulbs and essential oils.

Tasmania has a globally competitive food processing sector. This includes dairy products, meat, seafood (Atlantic salmon and ocean trout predominantly, but also abalone, crayfish, mussels, oysters and scallops), potatoes and other vegetables, confectionery, beer and wine.

There are many small producers of award-winning boutique beverages, including whisky, gin, vodka and non-alcoholic varieties, as well as preserves, olives and olive oils, small goods and baked goods.

Much of Tasmania’s food production is marketed as fresh, premium products. It is estimated that the total packed and processed food and agriculture sector contributes approximately 15.8 per cent towards Tasmania’s Gross State Product. About 82 per cent of Tasmania’s food and beverages are sold overseas or to other Australian states. The state is well connected to markets via sea and air freight and given the timing of the Tasmanian production also provides counter-seasonal supply opportunities to the northern hemisphere.

Climate advantage

Tasmania has a temperate maritime climate, cooled by prevailing westerlies off the Southern Ocean, providing regular rainfall and conditions that are generally free from extremes in temperature. There is also a lower risk of extreme weather events such as heat waves and hailstorms that affect many other key agricultural regions.

Tasmania’s climate is not predicted to change as rapidly as other Australian regions and therefore climate change is not likely to impact significantly on the state’s suitability for agricultural investment.

Biosecurity

As an island, Tasmania has a clear biosecurity advantage. Tasmania’s rigorous biosecurity standards are at the very core of the Tasmanian brand, as its natural environmental values and quality produce rely upon the state’s relative freedom from pests, diseases and weeds. Tasmania’s relative pest-free status offers additional opportunities to access a variety of international markets that are closed to other regions.

Strong trade

The food and agriculture sector produces a surplus worth in excess of $4.3 billion in interstate and overseas sales. Tasmania’s food export value has increased by 24 per cent in 2019-2020 to a record of $954 million reaching now over 80 countries across the globe. Agri-food accounted for 29.3 per cent of Tasmanian international merchandise exports and it is continuing to grow. Many businesses such as cellar doors, farm shops, farmers’ markets, craft breweries, and retail outlets at food processing establishments exist directly as a result of Tasmanian agri-food production, providing jobs and enabling producers to sell directly to buyers.

Accessibility

In most instances, Tasmanian agricultural producers are located with less than 100 kilometres between farm or factory to port, providing fast access to distribution channels. Frequent freight shipping services from Tasmania's major ports exist. The Tasmanian Freight Equalisation Scheme provides financial assistance to shippers of eligible freight destined for Australian markets. The Spirit of Tasmania also offers regular freight shipping services between Tasmania and mainland Australia. Airports in Hobart, Launceston, Devonport and Burnie provide quick and easy access to mainland Australia. Air freighted produce can arrive at overseas markets within 48 hours of dispatch.

Agri technology

Tasmania is home to a vibrant and internationally respected science and research community and is a global agriculture technology (agtech) laboratory for ‘systems testing’ across the entire value chain.

With active projects in precision agriculture, cultivation, production and operational optimisation, Tasmania is committed to demand-driven agtech and growth of the bioeconomy. Tasmania’s focus is on three common agtech scenarios including reducing production costs; optimising the supply and value chain; and opening farmers and agricultural cooperatives to demand-driven production and collective productivity gains.

Tasmania’s arable land and supply and cold chain transport systems makes it an ideal model for testing agtech solutions. It is geographically separated, and more than a quarter of land is committed to agriculture. The supply and cold chain transport systems have a range of freight options including air, rail, sea, and roads which is highly suited to agtech testing on high value, highly perishable products.

Expertise

Tasmania’s strong pool of agricultural and aquaculture expertise stems from both farmers and research organisations including but not limited to the Tasmanian Institute of Agriculture (TIA), the Centre for Food Innovation (CFI), the Research Centre for Innovative Horticulture & Hub for Transforming Food Industry, CSIRO Marine and Atmospheric Research (CMAR), the Institute of Marine and Antarctic Studies (IMAS) and the Australian Maritime College (AMC).

Useful links

Department of Natural Resources and Environment