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Pros And Cons Of Sundrop

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Innovative agricultural enterprises such as Sundrop should be funded by the Government in order to address South Australia’s increasing water shortages. Sundrop is an agriculture business, running greenhouse practicing various technology solutions to produce crops with small dependence on finite resources than orthodox farming. One of the primary arguments to support this is due to the fact that South Australia’s agriculture is a vital part of the nation’s economy. In fact, statistics show that from 2015 to 2016, agriculture has generated $18.6 billion in revenue, which is 45% of the state’s total merchandise exports (Economic Priorities, 2017). Sundrop’s initiatives to harvest and desalinate sea water has been coined as one of the greatest …show more content…

In fact, the Australian Bureau of Statistics (2014) has determined that South Australia's unemployment rate is currently at its worst in 12 years at 8.2%. SA director, Rick Cairney (2014) states that South Australia needs to commit to innovative green technologies such as Sundrop in order to promote job growth. This is particularly relevant to the Iron Triangle which has recently witnessed decay in jobs associated with the fall in iron prices (The Advertiser, 2016). The Regional Development Fund (2014) has recognized how critical new initiatives such as Sundrop are to rural economies and have funded $15 million per annum aiming to rise economic growth and efficiency. The Sundrop Farms have been a valuable addition to the labour market with over 100 jobs being created in the manufacture stage, which took approximately 18 months, and an additional 200 positions being generated when the greenhouse began functioning. Philipp Saumweber (2014) Sundrop Farms founder and CEO, claims that the Sundrop plant has received a $100 million investment by Kohlberg Kravis Roberts, the world’s leading private equity firm, and also a decade long resource contract with Coles. He also states that the business will offer green and technological developing professions that offers education for local and regional communities such as Port Augusta. In fact, Gail Gago, Higher Education and Skills Minister has funded $50,000 for skills development project with Sundrop Farms and this highlights how innovation in rural areas can help rebuild

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