Investor Ready Incentive Scheme grants help build WA agrifood businesses
One of Western Australia’s best known horticulture enterprises, Manjimup-based Newton Orchards owned by the Giblett family, is about to embark on a new pathway to growth, following support from a State Government Investor Ready Incentive Scheme (IRIS) grant.
Newton Orchards was one of three successful applicants from the pilot matching IRIS grants, administered by the Department of Primary Industries and Regional Development (DPIRD), as part of its endeavours to help premium food and beverage enterprises become investment ready.
The company received a $50 000 grant and by matching funds has been able to develop and refine a new company strategy, develop an appropriate company structure and attract external investment to grow the business under the Newton Orchards brand.
This has involved creating a new business model, including developing and implementing a new operating company, establishing an independent board and supporting the executive team.
As part of this process, the company initiated an independent business valuation and sought expert assistance to develop an investable proposition to promote to key investors.
Expansion plans
The IRIS grant helped lay the foundation to realise Newton Orchard’s plan to increase turnover by investing in a new property to grow Hass avocados and apples, including the premium BRAVOTM and Kanzi varieties, as well as capital infrastructure to produce value added products.
The land acquisition will lift production levels by about a third and, with external investors, enabling it to retain control of its productive capacity.
The family’s intent is to increase the scale of the company’s packing facility – already one of the largest in WA – which will boost its capacity to process apples and pears and allow for avocado packing.
This improved capacity will assist Newton Orchards to expand export markets for apples, pears, avocadoes and small amounts of cherries.
The investment in capital machinery will enable the company to explore value adding opportunities, including the use of apples for juice, cider and pomace – a by-product from cider production used for fodder and fertiliser – which will also help to eliminate waste produce.
Other expansion options are being investigated, including investing in a small nursery to supplement current bulk supplies and reinforce supply.
IRIS benefit
The Giblett family believes the IRIS grant has been most beneficial, helping to transform their enterprise into a stronger business for the long term.
The family considers the grant helped bring succession plans together and enabled them to re-set their direction to ensure sustainable business success for the future.
The family says the IRIS grant assisted the family and its management team in deliberations about how to transition from a family business into a family corporate business structure.
The process helped the family to put real value into their operations, by analysing business strengths and weaknesses to position the business to thrive in a rapidly changing horticultural marketplace.
As a result, the business is now in good stead to attract outside investors to roll out future expansion plans.
Investor Ready Businesses
DPIRD continues to provide support to agriculture and food businesses to become investor ready and raise capital to expand operations, develop products and service offerings, and advance export capabilities.
A guide to assist WA agribusiness to become investor ready has been developed and is available here.
Further capacity building programs to support investor readiness will be rolled out in 2019.
Previous IRIS grant applicants include Great Southern beef producers, Irongate Wagu, and premium juice producers, Pressed Earth.
Both businesses are now in discussions with potential investors.
To find out more about a range of support the department provides agribusiness investors and businesses seeking to attract investors click here.
For more information contact Susan Hall, acting general manager, WA Open for Business, Perth, +61 (0)8 6552 2064