KIMBERLEY Economic Perspective AGRICULTURE

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K I M B ER LEY Economic Perspective East Kimberley - Ord River Irrigation Area (ORIA)

Of all the domestic visitors to the Region between 2004 and 2005, 62 per cent came for holiday/leisure and/or to visit friends/relatives, while 28 per cent visited for business reasons. When staying overnight in the Region, 50 per cent stayed in hotels, resorts, motels and motor inns, 17 per cent stayed in caravans, camping grounds or private property, while an additional 15 per cent stayed in property of friend or relative.

The Ord River Irrigation Area includes approximately 14,000 hectares of developed land, which has access to considerable water resources from Lake Argyle on the Ord River. In 1995/96 the crop area was 9,714 hectares, which increased to 12,298 hectares in 2004/05.

By contrast, 92 per cent of international visitors came to the Region for holiday/leisure, with 47 percent staying in caravans, and an additional 36 per cent staying in backpacker hostels. A significant number also staying in hotels, resorts and motels. The remaining domestic and international visitors utilised a wide range of accommodation options including rented houses and bed and breakfast establishments. Tourism Western Australia monitors the level of private sector tourism development and reported that at June 2005, a total of 10 tourist accommodation projects worth $82.2 million were in the planning stage. A further five accommodation projects worth $12.7 million were under construction.

Source: Department of Agriculture Western Australia.

The Department of Agriculture Western Australia estimates that sugar production accounts for approximately one third, by area, of the cultivated land in the ORIA, with a range of crops grown on the remaining two thirds. These crops include chickpeas, sorghum seed, melons, pumpkins, mangoes, bananas, citrus, irrigated pasture and tropical forests. There is potential for the sugar crop to expand further with the development of the Ord River Stage 2 Irrigation Scheme.

AGRICULTURE In 2003/04, the Australian Bureau of Statistics and the Kimberley Development Commission estimated that there were approximately 170 agricultural establishments in the Kimberley, covering 23 million hectares and representing around half of the Region's total land mass.

Crops grown in the ORIA are in a period of transition, which has seen a decline in the total value of production over the five years to 2003/04. Conventional horticulture crops, with an annual crop cycle, are being replaced by perennial tree crops, which take six to eight years to grow to a commercially harvestable size. The expansion of sandalwood plantations with long-term growing cycles (over 18 years) will cause the trend for the value of production to remain lower until this tree crop is harvested. The value of production as a consequence has fallen from $67.5 million in 1999/00, to $46.6 million in 2003/04. However, despite these developments the value of production rose in 2004/05 to $53.6 million, a 15 per cent increase over the previous year. This is due to the supply of high quality pumpkins and melons which led to exceptional market prices and good return to the growers.

Source: Australian Bureau of Statistics.

The value of agriculture production has fluctuated over the years. In 1994/95, the value was $71.6 million, gradually increasing to $126.8 million 2000/01, before declining to $95.9 million in 2003/04. The total value of agriculture is largely split between crops and livestock, dominated by the beef cattle industry. Crop production is dominated by the Region's largest irrigated agricultural project, the Ord River Irrigation Area, located near Kununurra. There are also horticultural activities undertaken in the West Kimberley, near Broome and Derby.

Source: Department of Agriculture Western Australia.

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K I M B ER LEY Economic Perspective In 2004/05, the ORIA crops consisted of sugar ($16.1 million), melons ($12.2 million), mangoes ($1.9 million), hybrid seeds ($3.6 million), pumpkins ($9.0 million), bananas ($0.5 million) and other (a range of crops grown in smaller quantities with an aggregate value of $10.4 million). Beef fattened on irrigated pastures and leucaena had a combined value of $1.5 million (included in other).

The live cattle trade is expected to increase in 2005/06, following the signing of recent agreements with Eritrea, Saudi Arabia and Jordan.

MINI NG Mining activity in the Kimberley has a long history, commencing with the discovery of gold near Halls Creek in 1885. Construction of an iron ore mine on Cockatoo Island began in 1944, with the first shipments of iron ore made in 1951. In the 1980s, diamonds and zinc/lead deposits were discovered and mines were commissioned at Argyle (diamonds) and Cadjebut (zinc/lead). Further exploration for a variety of resources, including gold near Halls Creek, continues. In 2004/05, the top five mineral and petroleum commodities in the Region were diamonds, nickel, iron ore, crude oil and rock. The Region's total mineral and petroleum production was valued at $660.6 million. This was an increase of 12 per cent compared to the previous year. The Region currently contributes 2 per cent of the State's total mineral production by value.

Source: Department of Agriculture Western Australia.

West Kimberley - Horticulture There is a relatively small horticulture industry operating near Broome and Derby in the West Kimberley currently producing mangoes, melons, bananas and irrigated pasture seeds.

Value of Mineral & Petroleum Production - 2004/05 Mineral Diamonds Nickel Iron Ore Crude Oil Rock Aggregate Sand Gravel Lime and Limestone Fire Clay Total All Industries

Pastoral Industry The pastoral industry is one of the Region's most established industries, with the first herds arriving in the 1880s following the overland movement of cattle from Queensland and New South Wales. The Department of Agriculture reports that there are an estimated 100 pastoral stations in the Region. The value of cattle disposals from the Region was $48.0 million in 2003/04, being 9.7 per cent of the State total. This value has increased to between $60 to $70 million in 2004/05. The Department also estimates that the Kimberley herd of beef cattle is around 600,000, representing around 30 per cent of the total State herd.

Value ($) 467,472,989 122,458,713 39,569,461 14,676,826 13,519,969 2,306,496 361,817 178,936 46,860 2,700 660,594,768

Source: Department of Industry and Resources.

During the seven years from 1995/96 to 2002/03, the total value of mineral and petroleum production increased by 55 per cent to $948.5 million. Value declined in 2003/04 due to the temporary closure of zinc and lead mining at the Lennard Shelf, near Fitzroy Crossing. However, the Region's mineral production was boosted in 2004/05 by the commencement of the new Sally Malay nickel project, located near Halls Creek. This has translated into a 12 per cent increase in the value of production for 2004/05 from the $591.3 million in 2003/04.

Source: Department of Agriculture Western Australia.

Most cattle turnoff from the Kimberley is exported live to Indonesia, Malaysia and the Middle East. In 2003/04, approximately 128,000 Kimberley cattle were exported live from the Region. A further 36,000 were sold as store cattle (transferred from one station to another) and 10,000 to abattoirs.

Source: Department of Industry and Resources.

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