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Build Back Better: Apple Industry Bushfire Recovery Plan

Executive Summary Damage of up to $72 million has been caused to three main apple growing regions, the worst affected being Batlow, with serious concern over the future of the town. Much of the damage was caused by factors beyond the growers’ control, such as proximity to state pine forests. Orchards are highly capital intensive and take more than 5 years to regrow. Each hectare can cost $342,000 to replace and this does not include lost income during this period. Trees are not insured1, and there is limited insurance on netting and irrigation infrastructure.

Build Back Better A unique opportunity exists to rebuild world leading orchards to position the industry and region for growth, while future proofing against environmental challenges. Batlow provides a clear commercial competitive advantage due to its soil and altitude. Apples are currently at the top of the list of horticulture products being assessed for access to the lucrative China market. Other industries, such as table grapes and citrus have seen massive export expansion off the back of this access. To achieve this, direct assistance is required to rebuild orchards that are:

• Drought and fire resistant • Weather and pest proof • Highly productive utilising high-density planting, and • Growing high-margin varieties

In addition, there is a need to invest in:

• The Batlow brand and packing facilities • Education and training • Accommodation, • Infrastructure, including ACT road link, and • Regional tourism

Industry is asking for Federal and NSW government to invest $60m over five years to rebuild the region2 based upon a sustainable and viable economic industry. There is the potential for a further $14m contingency amount depending how some orchards respond to the excessive heat.

1 Due to prohibitive commercial cost of insurance 2 Includes minor impacted regions of Adelaide Hills and Bilpin

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The Need – Build Back Better: A Five-Year Investment Schedule

Industry is asking for Federal and NSW government to invest up to $60m over five years to rebuild the region3 based upon a sustainable and viable economic apple industry. This is based upon 170.5 hectares of orchards estimated to be replaced – a contingency of potentially an additional 39.5 hectares ($14m) may be required for those possibly exposed to extreme heat.

Year Priorities

Year 0 June 2020

$4.6m

• Clear land of dead orchards & prepare soil o Total cost $2.6m ($15,000 /ha)

• Replace damaged netting (Year 1 of 5 year rolling program) o Total cost $2m ($60,000 ha)

Year 1 June 2021

$11.5m

• Propagate trees (Year 1 of 3 year rolling program) o Total cost $5.7m (283,000 trees @ $204 per tree)

• Replace damaged netting (Year 2 of 5 year rolling program) Total cost $2m per annum ($60,000 ha)

• Planting, irrigation, and trellis (Year 1 of 3 year rolling program) o Total cost $3.8m ($67,000 /ha)

Year 2 June 2022

$16.3

• Propagate trees (Year 2 of 3 year rolling program) o Total cost $5.7m (283,000 trees @ $20 per tree)

• Replace damaged netting (Year 3 of 5 year rolling program) Total cost $2m per annum ($60,000 ha)

• Planting, irrigation, and trellis (Year 2 of 3 year rolling program) o Total cost $3.8m ($67,000 /ha)

• Orchard development (prune, train, water etc) o Total cost $4.8m ($28,000 /ha)

Year 3 June 2023

$16.3m

• Propagate trees (Year 3 of 3 year rolling program) o Total cost $5.7m (283,000 trees @ $20 per tree)

• Replace damaged netting (Year 4 of 5 year rolling program) Total cost $2m per annum ($60,000 ha)

• Planting, irrigation, and trellis (Year 1 of 3 year rolling program) o Total cost $3.8m ($67,000 /ha)

• Orchard development (prune, train, water etc) o Total cost $4.8m ($28,000 /ha)

Year 4 June 2024

$6.8m

• Replace damaged netting (Year 5 of 5 year rolling program) o Total cost $2m per annum ($60,000 ha)

• Orchard development (prune, train, water etc) o Total cost $4.8m ($28,000 /ha)

Year 5 June 2025

$4.8m • Orchard development (prune, train, water etc)

o Total cost $4.8m ($28,000 /ha)

§ Total cost over 5 years - $60m, plus potential of up to $14m contingency

o Amounts also include smaller regions of Bilpin (NSW) and Adelaide Hills (SA)

3 Includes minor impacted regions of Adelaide Hills and Bilpin 4 5,000 hectares is aiming at world best and aims to increase the average in Batlow from 3,000 per hectare