Appetite for food and beverage hub put to the test

MEDIA RELEASE - Appetite for food and beverage hub put to the test

February 2017

A prefeasibility study for a Food and Beverage Hub in Manjimup, to support the value adding of agricultural produce from the area, was recently completed by Ernst and Young.The Prefeasibility study: Manjimup food and beverage hub was commissioned through the Department of Agriculture and Food Western Australia (DAFWA) as a component of the Manjimup Agricultural Expansion Project, made possible by the State Government's Royalties for Regions program.

The study was commissioned to ascertain the level of interest of producers in the concept of a food and beverage hub in the Manjimup region. The study involved targeted stakeholder consultation to identify the types of facilities and services that would be of most value to producers in the area, identify potential sites, determine the most preferred site and assess the financial viability of a dedicated food and beverage hub.

Three shortlisted sites for the hub in Manjimup were identified and evaluated. Relative strengths and opportunities were assessed, as well as development costs for each site to meet the required functionality. Shire President Wade DeCampo explained that study suggests that local agribusinesses are interested in services that could be offered by such a hub, including business support, commercial kitchen, food technology laboratories and new produce research trials, but that there was limited appetite or capacity to contribute financially by respondents within the study area.

"The report suggests that if such an initiative is to go ahead without government support, it will require a larger catchment area," Cr DeCampo said. "The candid responses from participants provided a valuable insight to the opportunities, challenges and feasibility of a Food and Beverage hub concept at the current time; but it is only a snapshot, so it will be interesting to gauge what the response is from the wider industry," said Cr DeCampo.

The business structure and income streams of international and interstate examples of Food Hubs were also reviewed. The majority of the funding for these hubs is supplied through ongoing government grants, membership fees or industry levies. Some of the functional demand may be met by the newly established WA Premium Foods Centre, which is part of the DAFWA's Food Industry Innovation project, also made possible by Royalties for Regions investment, or by ventures that are in final planning stages of private entities within the town of Manjimup.

A report summary is available by clicking here and feedback may be directed via Andrew Campbell, Chief Executive Officer of the Shire of Manjimup.

-ENDS-

Authorised by Andrew Campbell, Chief Executive Officer

Contact Gina Nieuwendyk, Coordinator Communication and Executive Support

Contact: 9771 7777

Contact for comment: Wade DeCampo, Shire President.

Contact: 0427 094 081