TWO major agricultural deals finalised this week will usher in a food boom for the South West, bringing big economic benefits to the region.
Two South West companies – V&V Walsh and Harvey Fresh – have announced deals that are set to bolster the agriculture industry in the region.
V&V Walsh will join Grand Farm, China’s biggest importer of Australian and New Zealand red meat, in a $1 billion deal to supply an extra 500,000 lambs and 30,000 cattle a year to Inner Mongolia.
As part of the deal, $200 million will be offered to entice livestock farmers to supply meat to the Bunbury processor.
Parmalat Australia, which owns Harvey Fresh, yesterday announced it wanted to reverse the downward trend of milk production in the South West by offering greater bonuses to farmers.
Farmers will be offered a price bonus of 30c a litre to supply milk during summer which is part of a $7 million investment into the WA dairy sector.
The State Government and local business leaders expect the deals to create jobs for the South West.
Bunbury Chamber of Commerce and Industries chief executive officer Ray Philp said the meat deal should create jobs in related businesses including transport.
WA Farmers president Dale Park said there was no doubt farmers would take the price signals and meet the supply demands from the businesses.