CORRECTED VERSION
OUTER SUBURBAN/INTERFACE SERVICES AND DEVELOPMENT
COMMITTEE
Inquiry into sustainable development of agribusiness in outer suburban Melbourne
Mornington — 10 February 2009
Members
Mr N. Elasmar
Ms D. Green
Mr
Guy
Ms M.
R. Buchanan
Ms C. Hartland
Mr D. Hodgett
Mr D. Nardella
Mr G. Seitz
Mr K. Smith
Chair: Mr G. Seitz
Deputy Chair: Mr K. Smith
Staff
Executive Officer: Mr S. Coley
Research Officer: Mr K. Delaney
Witness
Mr Mick Gallace, Sunny Ridge Strawberry Farm (sworn).
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The CHAIR — I declare the meeting of the Outer Suburban/Interface Services and
Development Committee open. Thank you all for being here. Yesterday we were contemplating
cancelling the meeting in view of the bushfire disaster. Before we start the official proceedings, I
ask you all to stand for 1 minute’s silence for the people who perished in the fires.
Committee, witnesses and members of the public stood in silence.
The CHAIR — Thank you.
Before you begin, Mr Gallace, could you clearly state your name and address?
Mr GALLACE — My name is Mick Gallace. We reside at 244 Shands Road, Main Ridge,
Victoria. I will give you a brief history of how Sunny Ridge evolved.
Together with my wife and daughter, we operate Sunny Ridge Strawberry Farm in this wonderful
part of Victoria called the Mornington Peninsula. Our family has been blessed to own and operate
a successful agritourism enterprise in a location I consider to be Melbourne’s playground. The
passion for agrarian development began some 45 years ago when my father visited this area to
catch a few bunnies with his mates. It did not take him long to recognise and appreciate the beauty
of the area and what it offered. He immediately purchased a 30-acre property where he often
stayed on weekends, such was his love affair with the land.
I was only 14 years of age when we moved to the area, and had no idea of the hard work that was
to come. We started growing apples and cherries, because that was what everyone else did, plus
we grew a variety of vegetable crops including potatoes, beans, tomatoes and peas. Around 1967
we helped harvest our neighbour’s strawberries. The following year my father decided
strawberries were the go as they seemed to thrive in the fertile soils in this maritime climate.
One-third of an acre was a lot of strawberries back in those days, so from sun-up to sundown we
picked and packed strawberries. The strawberry enterprise grew to 1 acre by 1974.
From 1971 to 1977 the family also operated three greengrocer outlets, which added financial
support to the farming enterprise. The long hours needed to operate the retail shops soon took their
toll, and we decided to concentrate solely on horticulture. By 1985 strawberries had become our
principal crop. We were growing 5 acres of strawberries — approximately 80 000 plants. It was
about this time that visitors began arriving at our farm to buy fresh from the farm gate. Gradually
we succumbed to pressure from customers wanting to pick their own fresh strawberries.
Our fate was sealed. Twenty-four years later visitation to our strawberry facility approaches
250 000 people annually. We have an annual production of around 8 million punnets of
strawberries from 200 acres, which is almost 10 per cent of the entire Victorian strawberry
industry. We also grow 10 acres of blueberries, glasshouse raspberries and a few avocados as
well.
The tourist facility at Sunny Ridge was initiated after we had experienced a couple of seriously
bad financial years. Crop insurance was too expensive and we needed to ensure our viability if we
were to eke out a living from our rural holding.
Our agritourism business has ensured our survival, but it is still a problem when being classified as
a tourist destination. We are seasonal and we do not fit into the normally accepted tourism
categories. We need this to be changed. If agritourism is to be part of the Mornington Peninsula in
the future, signage must be improved. This is a constant frustration for me. Without adequate
signage, potential new customers — motorists — get frustrated at not being able to find the
location. Our most common, no. 1 complaint is, ‘We have been driving around for ages trying to
find you. Why don’t you have more signage?’. My answer is simple, ‘It’s bureaucrats’. Have you
ever tried to give directions over the phone to 10 different ethnic groups when they cannot even
tell you where they are to start with?
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If the peninsula is to benefit from its rural image, which does attract visitors to our region, we need
to consider carefully how we can support rural industry to prosper. The planners of the peninsula
need assistance to understand what makes small agricultural enterprises viable. Owners of small
agricultural holdings need assistance to establish suitable and viable enterprises for their
properties. They need the opportunity to see what others are doing across Australia and around the
world to decide on their own endeavours.
There are many lost rural arts and historic agricultural practices, for instance, that present an
enormous opportunity for educating the public. The government has an obligation to assist them
in their endeavours to be viable if it is to superimpose agricultural restrictions on them in an
attempt to preserve our natural heritage. They need to know how best to do it without losing what
we have. The city folk are looking to us to understand what happens in the country. They want the
experience, without the hard work of course. They are idealistic about country life. Therein lies an
opportunity for small agricultural operators on our peninsula to create a rural experience they can
share with the public.
There is a growing interest among consumers as to where their food comes from. In our case the
entire business model of Sunny Ridge is based around the activity of harvesting strawberries.
People simply enjoy getting back to basics and collecting their own food the way nature intended.
Could we not capitalise on this and turn the rural regions of the peninsula into one big farmers
market? Imagine a peninsula that is crisscrossed by quiet country tracks used only by walkers,
joggers, pushbikes and the like, all joined together to provide a huge farming experience. Such a
system exists in countries like Belgium.
Everybody realises that due to climate change we are experiencing a change in rainfall patterns
with more frequent heatwaves. When we first arrived here in 1964 a guaranteed annual rainfall of
40 to 45 inches, or approximately 900 millimetres, was common. Forty-five years later, last
season’s rainfall totalled just 600 millimetres, or just under 25 inches. Any significant reduction in
rainfall will severely impact on the viability of our agribusiness operations. It is well-recognised
that you cannot grow crops without water. Developments such as the recycled water scheme soon
to be accessed at Boneo are essential to the future of horticulture on the peninsula; come
September 2009 I am sure champagne corks will be popping.
One of the most efficient ways to generate high-value horticultural produce is through
hydroponics. The intensive nature of hydroponic production enables growers to grow a potentially
better quality product on smaller parcels of land. Hydroponics is a system of agriculture Sunny
Ridge has often considered. The predominant factor preventing such activities on the peninsula is
the availability of suitable water quality, which can only be achieved from catchment run-off. The
peninsula does not have the necessary infrastructure to support large-scale horticultural operations,
nor is it suitable.
Hobby farming is an idealistic and attractive way for many to enjoy life on the Mornington
Peninsula. These properties generally rely on some sort of off-farm income and are not a source of
employment, nor do they make a significant contribution to the local economy. Going forward it
will be important that these idealistic enterprises do not distort or skew the anticipated needs of the
commercial farmer.
All around the world farmers need to expand their production and increase their economies of
scale to maintain profitability year after year. Strawberries grown on the Mornington Peninsula
have an ever-increasing demand from the public, but in order for us to grow our business we are
faced with considerations unlikely to be acceptable to our local governance.
In the near future we will most likely outgrow our current packing facility. We are also likely to
require some form of processing, but this requires more trucks, upgrading of electricity supplies,
increased car parking facilities and so forth. Do we move to an industrial estate? There is very
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limited suitable industrial land available. Sunny Ridge is now faced with having to be not only a
grower but also a processor and a factory owner.
Growers who think outside the square and consider onsite processing are often at odds with the
demands of the general public. How does a business like ours add value? They need to vertically
integrate, be innovative and develop all of those other exciting commercial opportunities when
many of our activities do not strictly come under the banner of farming. We are struggling to get
our identity clearly understood or supported.
Another major issue is labour. Most horticultural operations are seasonal and rely on migrant
workers. To date the south-eastern suburbs of Melbourne have been a reliable source of labour for
us. However, seasonal employment becomes increasingly difficult as these migrants are better
educated and become fluent in English. They no longer need to work in the fields preferring to
work in the cities. Interest from backpackers from around the world is increasing. However, there
continues to be issues during the summer months when we are in peak production.
In other parts of the world we have seen growers purchase hotels, caravan parks and even military
bases to house all of their migrant workers for the season. We have never entertained that, given
we live in one of the strictest shires for planning, and because we fear we would never get any one
of these ideas over the line — at least not in my lifetime. Besides, even if we could accommodate
or house 200 seasonal employees during the summer months, they would not be eligible for a
second working holiday visa — a strong attraction for backpackers travelling around Australia —
since the Mornington Peninsula shire does not qualify as a suitable rural location and they
certainly could not access our farm without their own means of transport.
In conclusion, I would like to say that if the Mornington Peninsula is serious about creating a
70:30 mix of rural to residential land, it is vital that operations like ours are given every assistance
to maintain their viability. The high cost of land on the Mornington Peninsula is preventing more
agricultural operations from considering this area by opting for more affordable areas around
Victoria where councils are giving every assistance. Such was our experience in the Baw Baw
shire. Thank you.
Ms HARTLAND — I am quite interested in what you were saying, and I would like you to
elaborate on the issue. You are a tourist attraction and yet you are not classified as a tourist
attraction. Can you explain how that works?
Mr GALLACE — Because we open the farm six months of the year — but it is every day,
seven days a week — and during the winter months we are not in harvest season. I think to be
classified as a tourist facility you have to be open for a certain length of time during they year.
Ms HARTLAND — By not being classified as a tourist attraction — —
Mr GALLACE — If we were open all year — seven days a week or five days a week
throughout the whole of the 12 months.
Ms HARTLAND — I understand that, but by not being classified as a tourist attraction, what
does that take away? You were talking about signage et cetera. Is that the kind of thing you lack
because you are not designated as a tourist attraction?
Mr GALLACE — I think there are certainly restrictions, and signage is probably one of them.
That would probably be the main one.
Ms HARTLAND — People come and pick, and you have an on-site shop as well?
Mr GALLACE — Yes, a cafe and a strawberry facility.
Ms HARTLAND — But you are only allowed to sell what you produce?
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Mr GALLACE — That is correct, and that is all we want to do anyway. It is only what comes
off the farm.
Mr K. SMITH — What have you done about the lack of signage problem?
Mr GALLACE — I think we are still working on it. I think it is one of the things we would
like to get cleared up. There are bigger signs. In the last 12 months we have had much bigger
signs, but maybe it relates to the groups of people who do not have GPS or who cannot follow
signs. It is fairly common. They come in at 6.30 p.m. and say, ‘We have been driving around for
ages’. We close at 5.00 p.m. It is one of those things.
Ms HARTLAND — As someone who is directionally challenged, I understand that
completely.
Mr HODGETT — How many people do you employ currently in both production and
tourism?
Mr GALLACE — It can be up to 200.
Mr HODGETT — You say you have peaked in production on your current site and if you
were to grow jobs you would have to look at another packing facility.
Mr GALLACE — Yes, we have outgrown it substantially. We need to be able to —
maybe — move to another location. I guess one of the biggest problems from a farming point of
view is whether you overcapitalise. Do you spend too much money? Who is going to buy you
out?
We may be looking at an industrial estate — an offsite one — to put in a packing facility. Of
course, when you are trying to build a facility you have neighbours to consider. Land-holdings are
getting a lot smaller, and more people are moving in. Obviously they are wary of increased traffic.
There are all those sorts of issues that we have to deal with.
Ms HARTLAND — There is also the issue of having residential and agricultural land.
Mr GALLACE — But smaller holdings. There are people moving into the area all the time.
They think they are coming to a wonderful, rural escape.
Mr HODGETT — How far would you have to go to find land for a packing facility?
Mr GALLACE — Rosebud. It would be 10 kilometres.
Mr HODGETT — That would be on industrial land?
Mr GALLACE — That’s right.
Mr K. SMITH — How much land have you got?
Mr GALLACE — All up it is about 350 acres.
Mr K. SMITH — And you are running out of land?
Mr GALLACE — Strawberries do not like growing on old land. They develop a lot of
diseases and so forth, so you have to keep rotating your fields to be able to maintain a reasonable
yield. The cost of land can be anything up to $50 000 an acre.
Mr K. SMITH — But you grow other crops as well?
Mr GALLACE — Yes, but they are being rationalised. We are slowly moving out of
avocados. We are going to move out of cherries because we want to focus on the berry fruit crops.
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Leased land is pretty hard to get in our area. The limiting factor is water. Availability of water is
probably the key issue. You can afford the land because it is your superannuation investment, but
obviously water is the problem. That is why we have had to move down to Boneo where we get
more secure water with the Boneo recycled water scheme that we have been involved with.
Mr HODGETT — Finally, you mentioned hydroponics. Did you say you were moving in that
direction?
Mr GALLACE — Over the last five years we have considered it. It has been on our agenda
for quite a while. I guess the capital investment that is required is pretty large. It would be a big
step for our company to go into some sort of hydroponic venture because it is quite capital
intensive.
Mr K. SMITH — You talked about local government restrictions as far as expansion on your
current site is concerned. What sort of restrictions? Planning restrictions?
Mr GALLACE — Yes, planning restrictions; the size of the buildings and the height of
buildings. Obviously if you expand a building you have to put in more car parking.
Mr K. SMITH — I think you were mainly talking about a bigger packing shed?
Mr GALLACE — Yes, that is one of them. Our production is increasing, but our packing
facility has not increased. That is something we have put on the backburner. We have said, ‘Can
we contain it all? Can we become more efficient?’.
Mr K. SMITH — How many people do you employ?
Mr GALLACE — Up to 200 at any one time.
Mr HODGETT — Is that with the seasonal workers?
Mr GALLACE — Yes.
Mr HODGETT — That is at peak?
Mr GALLACE — Yes, at peak. During the winter it might be down to about 20 to 25, but
during the summer months it gets up to 200 and even slightly more. It depends on whether or not
you get a heatwave.
Mr K. SMITH — How close are your nearest neighbours?
Mr GALLACE — That is another issue that I did not raise: the right to farm. We have had
problems with neighbours with the operation of our agricultural equipment and spraying and that
sort of thing. That has always been another issue as land-holdings get smaller around us. We have
larger acreages. People are very conscious of the agricultural equipment we use, which is crop
spraying and things like that. That is also something we have to be responsible about when it
comes to farming. We try to limit those problems by putting in windbreaks and limiting the drift
and so forth. You are always going to have those sorts of issues.
Mr K. SMITH — Are they neighbours who have moved in since you have been established,
or you have expanded out to them?
Mr GALLACE — No, they have moved into the area.
Mr HODGETT — Farmers?
Mr GALLACE — No, they are not, they are just hobby farmers. They came down and
inspected a property on one particular day — ‘It’s great, it’s fantastic’ — and then they moved in
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and thought, ‘We didn’t know you sprayed crops at 3 o’clock in the afternoon’ or, ‘had the pumps
going’, and all that sort of thing. They move in and it is not that idealistic.
Mr K. SMITH — What is the council’s attitude to that when they complain?
Mr GALLACE — I think they are sympathetic.
Mr K. SMITH — To them or you?
Mr GALLACE — To me, because obviously we need to have our crops sprayed because of
disease and insect pests. They try to keep everyone happy, I guess, where it is possible to do that.
Mr K. SMITH — But they have allowed them to build next to your farm?
Mr GALLACE — Yes, but these people have already got dwellings. You cannot say, ‘Go and
move away’; they have come down, they live in it, and so we have to try to work together with
them, basically.
Mr HODGETT — Mick, in terms of your cafe cellar door, is that growing?
Mr GALLACE — Yes, it is.
Mr HODGETT — How long has that been open?
Mr GALLACE — The facility has been up for about 10 years.
Mr HODGETT — So it has the potential for job growth, and the operation is more geared to
agribusiness?
Mr GALLACE — Yes, it is.
Mr HODGETT — How long a year is it open? Did you say all year around?
Mr GALLACE — No, six months — seven days a week for six months.
The CHAIR — Thank you very much. In due course you will get a copy of the Hansard
transcript to make any major or minor corrections that you might think of. There are never any
major corrections because Hansard is spot on. Whatever you said here in the committee has
parliamentary privilege.
Mr GALLACE — That’s fine.
The CHAIR — Therefore, you cannot be sued over whatever you have a go at, but if you say
it outside, it is a different story.
Mr GALLACE — Okay.
Mr K. SMITH — Is there anything else you want to say before we finish up with you, now
that you know you have got protection?
Mr GALLACE — No.
Witness withdrew.
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