THE State Government's $67 million rescue package for irrigators will be worth up to $1.5 billion to the Riverland, fruit juice maker Nippy's managing director Jeff Knispel says.
AdelaideNow reports Mr Knispel said giving irrigators water would be worth many times more through the increased production of citrus, grapes, almonds and other crops.
The flow of money through the Riverland community would provide economic benefits worth up to $1.5 billion, he said.
"The funding approach is a lot cheaper than letting the industry and community die and resorting to rescue packages," Mr Knispel said.
"It's given irrigators with permanent plantings close to the minimum amount required to keep plantings alive."
While it is not designed to help growers with blocks of less than 15 ha, the water program will provide a major help for the industry's larger operators.
The State Government announced in September it would spend up to $67 million "underwriting" critical water needs to ensure the survival of permanent plantings for irrigators with a viable, long-term future.
Mr Knispel, who also revealed he is buying the entire Nippy's business from other family members, said the water allocation program had given him confidence he had made the right decision.
AdelaideNow reports the program is expected to provide multiple benefits for Nippy's, including meeting its need for 25,000 tonnes of citrus for its packing shed which exports $5 million worth of oranges a year.
Mr Knispel said it also would help ensure enough oranges are grown to allow Nippy's to maintain its $30 million-a-year business producing fresh orange juice for sale around Australia.
It also would help keep the Knispel family's extensive citrus plantings at Ramco, Sunlands and Moorook alive.
Riverland community and industry groups will unite in Berri on Wednesday to form a Riverland Coalition, an advocacy group to fight for a fairer future for farmers.
That will include Riverland Wine Grape Growers, Stone Fruit Growers and SA Citrus Farmers group representatives.
