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Luke Lay

Citrus backed in fresh funding following water concerns

Record high power, water and fuel prices have brought new threats to citrus growers. (Dean Lewins/AAP PHOTOS)

The Knispel family are no strangers to a challenge.

For 60 years, they've overcome severe droughts, a salmonella outbreak, and market regulation that nearly squeezed their citrus packing business out of the industry.

Now, record high power, water and fuel prices have brought new threats to growers already competing against an oversupply in the global market and a disappointing season.

"Normally it's quite bullish at this time of the year. This year's quite the reverse and it's very difficult to get orders from anywhere around the world," joint managing director of Nippy’s Group, Jeff Knispel said.

"The trends in all those areas is not favourable to running a business like ours."

AUSTRALIAN CITRUS GROWERS
"Without water, we haven't got a business," Jeff Knispel of Nippy's Group says simply. (PR IMAGE PHOTO)

From selling oranges from the back of a delivery truck in the 1950s to expanding into flavoured milk and fresh juice, the Nippy's Group business has become synonymous with schoolyard tuckshops and cafes across the country.

But with growth comes heavier losses.

"There's a little bit of feeling of the bigger you are the harder you fall," Mr Knispel said.

Up to 80 per cent of their citrus packing remains exported and workforce has grown from being mostly family orientated to more than 300 workers across three properties.

On top of the list of concerns is water, and as Murray River irrigators compete against water allocation, Mr Knispel is looking in the past for inspiration to future-proof the industry.

"Without water, we haven't got a business," he said.

"Between the 1920s and 1970s, as the nation grew, we grew water security through infrastructure, whether it was locks on the river, or snowy hydro, and dams in general."

"Then you look at the 1970s to now ... we've done nothing to shore up security for the nation."

Adding to the woes, the lower Murray River was listed early in 2026 as critically endangered prompting a $430 million buyback scheme aimed to shore up commonwealth-owned water in the Murray away from irrigators and into environmental use.

Mr Knispel believes a more long-sighted approach to conserve and produce new water would set businesses like his up further into the future.

MURRAY WATT PRESSER
Australians are aware the Murray River is facing extreme environmental pressure, Murray Watt says. (Mick Tsikas/AAP PHOTOS)

Environment Minister Murray Watt announced a $3.5 million package for a range of projects across the Riverland, including $640,000 for a new fruit grading line at Nippy's Waikerie facility.

It's the first round of a joint state and federal $12.7 million investment into South Australia's Murray communities with Riverland growers Venus Citrus Loxton receiving $1.7 million into water efficiency infrastructure.

The Murray River was facing extreme environmental pressure, Senator Watt said.

"We have seen, over many years, over-allocation of water and that is having environmental effects," he said.

"These investments will go a long way to make sure that we continue to have these industries, the support that growers that we need and the jobs that these industries provide for these industries for a long time to come."

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