Recommendations and implementation pathway

The report’s key findings inform recommendations for the improvement of the FNQ region’s agricultural supply chains. Four key recommendation themes have been identified that will enable the region to transition from the current to the desired future state export supply chain, with each consisting of a number of corresponding recommendations. The four recommendation themes are:

Collaboration initiatives

Export readiness

Advocacy priorities

Intangible recommendations to encourage the reduction of regional and product silos and enable supply chain participants to collectively deliver value for the region Tangible and intangible recommendations relating to the processes involved in enhancing export opportunities for the region across all supply chain participants by increasing awareness, capabilities, and/or market access Intangible recommendations relating to the streamlining and strengthening of public and political support for recommendation of particular policies, programs, studies, and/or regional development strategies Tangible recommendations for exploration into the development of physical structures and facilities to accommodate regional development including agricultural export supply chains

Infrastructure development

The recommendations were developed leveraging input from a variety of research methods. The literature review, desktop analysis and stakeholder consultations played a vital role in informing which priority areas recommendations should cover and the most feasible pathways to achieve them. These consultations included participants from all aspects of the agricultural supply chain, including but not limited to a breadth of producers and production enterprises, freight forwarders, transport and logistic companies, local councils and other government bodies, wholesalers and industry cooperatives. A com plete list of all stakeholders engaged can be seen in Appendix 2: Stakeholder consultation list.

The recommendations are all co-dependent. Without the required market access and supply chain coordination there is lack of scale to drive exports from the region and lack of incentive to invest in supply chain infrastructure, logistics and processing equipment. While some recommendations would benefit the growth of the agricultural industry in FNQ over time, others would be of most value if implemented as a short term priority. For example, it will be feasible to pursue the development of an overarching coordinated infrastructure investment plan for FNQ in the short term, while constructing a regional export-accredited aggregation facility will culminate the long term. Regardless, the more recommendations implemented, the better the opportunity to grow the export potential and opportunity for the FNQ region.

Increasing freight capacity

Securing increased freight capacity out of Cairns International Airport underpins the ability to achieve the $120M export vision by 2030. Evidently wide body aircraft are beneficial due to their capacity for larger amounts of passengers and freight volume. However, a continuing trend in aviation is the movement towards increased use of narrow body aircraft for long-haul flights. Narrow body planes are typically more efficient given fuel consumption and less time required to board and deplane. As such, the goal to increase agricultural exports out of Cairns International Airport should be considered through the options of both wide and narrow body planes, pending future airline agreements with the Airport. The following is an example scenario based implementation timeline for potential long term utilisation of a dedicated freighter aircraft to increase capacity from Cairns International Airport.

Figure 31 : Example scenario based implementation timeline

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Secure airline agreements that provide freight capacity to priority export markets with an emphasis on Singapore, Hong Kong and Japan.

Drive increased utilisation of existing and future Cairns International Airport export facilities infrastructure through enhanced awareness and collaboration.

Ensure key enabling infrastructure is secured, with priority given to water and improving connectivity that will underpin increased production potential in the region.

Collaboration initiatives

Export readiness

Advocacy priorities

1 .1 Implement an industry led ‘Export 2030 supply chain taskforce’ to coordinate and drive a FNQ region infrastructure strategy, ongoing collaboration initiatives and drive the required supply chain developments. 1 .2 Connect the FNQ region with priority market importers to build stronger export relationships and drive investment attraction. 1 .3 Advocate for greater R&D connectivity between the newly created taskforce (1 .1), industry and research organisations (such as CSIRO, JCU, USQ, QAAFI , CQU, DAF QLD ) to facilitate development of innovation in production for FN Q agriculture.

2.1 Optimise the Cairns International Airport export supply chain to enable growth in international air freight exports through: · Increasing awareness and utilisation of existing handling infrastructure and capability for export at Cairns International Airport. · Provide assistance in simplifying processes for farming businesses to become export-certified and accredited. · Ensuring effective cross-supply chain planning, construction and delivery of the

Regional Trade Distribution Centre to underpin export growth for the region. 2.2 Secure airline agreements that provide both increased passenger numbers to enhance FNQ tourism as well as expedited freight capacity out of Cairns International Airport to priority export markets with an emphasis on Singapore, Hong Kong, China and Japan (both passenger and freight aircraft).

3.1 Work together to develop a cross-sector FNQ regional positioning strategy.

3.2 Secure favourable protocol access and reduce non-tariff barriers in priority markets.

3.3 Continue to examine the economic opportunity for growing value-add opportunities, including food manufacturing in the FNQ region with longer term focus on beef (i.e. feedlots, beef processing).

Infrastructure development

4.1 Develop an overarching coordinated infrastructure investment plan for the FNQ region that considers domestic and international freight and tourism with immediate priority for: · Road network: Improve Atherton Tablelands to Cairns connectivity through advocating for the Kuranda Range Road upgrade with short term emphasis on the development of decoupling pads. Enable alternative B- Double freight route to Charters Towers and Townsville through advocating for investment to upgrade Gregory Highway. And Palmerston Highway upgrades for road trains to

Mourilyan Port for beef live exports. · Water: Ensure appropriate review of the Nullinga Dam and North Johnstone diversion scheme outcomes and ongoing regional coordination with the five major water supply and infrastructure projects to secure long-term water assets in the FNQ region. · Telecommunication connectivity: Continue to engage with mobile providers to improve connectivity and reduce Black Spots in the FNQ region. · Aggregation facility: Develop a regional export-accredited aggregation site (including treatment facilities) within 100km of Cairns International Airport that is prioritised based on economic outcomes and delivers coordinated integration through the airport export facilities.