• To convey clear and useful information, analysis and guidance for Australian companies, agribusiness, farmers, exporters and investors, together with Australian policy-makers, about the continuing major changes underway in the pattern of Asian agrifood demand and supply and, in particular, about the agrifood supply opportunities in Asia over the coming decade or so, ways of better accessing Asian markets and problems to be overcome.
• The report will be a single-volume accessible resource and guide to the Asian agrifood markets, written in clear, straight-forward language and presented in a user-friendly layout. As a public good, the report will be sold at a moderte price (c$40) affordable for small and medium-sized businesses and primary producers.

(1) macroecoomic trends and forecasts for individual Asian economies and the Asian region, plus of some selected provinces/states; (2) Asian consumer category profiles and consumer trends; (3) Asian agrifood supply trends, including Asian government policies, developments in Asian agricultural production and agribusiness, Asian corporate developments, and agrifood trade and investment flows. Commenced and continuing data compilation and analysis of Australian agrifood-related companies’ trade and investment activities in relation to Asian markets. Designed and part-way through commissioning consultancy work in several Asian economies on profiles of leading Asian agrifood-related companies. Part-way through design and commissioning of modelling work on likely agrifood demand trends in Asia over 2000-2010.

• To develop a methodology to test the theory that in marketing Australian agri-food products to Asian customers, changing people's perceptions (the usual target of market research and promotion) may or may not change their actual behaviour (the desired outcome of promotion). 
• Incongruity (misalignment) between perceptions and behaviours may indicate the need to change traditional ways of thinking about how marketing policy is formulated and how market research is focused. 
• Specifically, we aim to case study two horticultural products to identify the degree of congruence between perceptions and behaviours relating to product quality, service and value for money along the marketing chain from Australian grower to Asian consumer.

• To identify whether current knowledge allows a reliable conclusion to be made about the existence and effects of market power in Australian food markets by undertaking a literature review and holding a workshop to assess the conclusions of the review.

One thing that is becoming clear is that there is a fine line separating the exercise of market power that might be questionable under the Trade Practices Act and the aggressive behaviour of firms consistent with contemporary theories of how firms remain competitive. Another thing that seems clear is that there are important implications for farmers resulting from changing management practices in the food chain.

• To produce a theoretical and empirical report from the viewpoint of rural and regional Australia of the impact of National Competition Policy on the provision and pricing of economic infrastructure. 
• To produce (1) an Issues Paper in April 1999 addressing key theoretical and practical issues at stake for rural and regional Australia. The Issues Paper will be coming out at the same time as the draft report of the Productivity Commission on National Competition Policy and rural and regional Australia.

In relation to network infrastructure (such as railtracks, gas pipelines and electricity wires), the National Competition Policy access regimes for competing users require fixing an access price which generates a reasonable return on investment for the (natural monopoly) infrastructure provider. What is an appropriate rate of return and how should regulators measure invested capital (eg historic cost, replacement cost or market value)? Does price capping regulation generates a bias against infrastructure provision in higher cost rural areas? 

The complexity of price regulation and public review mechanisms are outlined with attention being drawn to the need for rural and regional user input to the rate review processes if they are not to be disadvantaged by regulatory outcomes.

• more informed and therefore effective policy development and negotiation positions in Australia and elsewherein the next WTO agricultural negotiations;
• a strengthened Australian negotiating position in the negotiations through increasing the awareness in key countries of the benefits of multilateral trade liberalisation for agriculture.

The first part of the report is advanced, with sections on problems from agricultural protection, desirability of trade liberalisation, trends in support and links to world prices, and why the Uruguay Round was only a beginning for reform, drafted. The final section of this part on gains from liberalisation is currently in progress with development of a baseline and simulations using the GTEM general equilibrium model.

The second part is in progress with authors working through effects of various forms of protection, and associated market distortions. A chapter on the multifunctionality of agriculture is drafted but being developed further. An adaptation of this chapter will also be published separately.

The final part on necessary reforms to achieve benefits from reform is contingent on results from the first two parts and has only just been commenced.

• The publication and broad presentation of a RIRDC report, including at public symposiums, involving Australian and Japanese researchers covering issues (eg. food security, environment), options (eg. more open trade and investment) and 
• Strategies for improving Japanese agricultural policies which affect an important agri-food export market for Australia.

A visit to Japan was undertaken by Dr Ray Trewin in late April to hold discussions with collaborators (e.g. Professor Honma), bureaucrats (e.g. MAFF), academics (e.g. Professor Shogenji, Tokyo University), business (e.g. MLA), the Embassy (e.g. Agricultural Counselor) and to obtain copies of relevant material such as the New Basic Agricultural Law. 

A review of the literature and analysis of background data has commenced to be built into an issues paper. This paper and others by Professor Honma on the New Basic Agricultural Law, by Dr Jennifer Amyx on political economy aspects, and by Professor Allan Rae on relevant modelling, will be presented at a workshop, ‘A way forward for Japanese agriculture’, planned for 13 July. The workshop will include a lunchtime panel session and will involve members of the Research Advisory Group and other relevant parties such as ABARE as discussion openers.

• developing a detailed analysis of the product requirements of Japanese Consumer Co-operatives
• identifying potential strategic aliances between Australian producers and the Japanese Consumer Co-operative movement

• and providing this information to targeted producers and producer groups through a report and input to producer and Agribusiness seminars aimed at improving marketing skills and the understanding of the import process.

• Completion of an in-market research visit to co-ops to obtain additional data on supply chains and reinforce the contacts developed during the project. The visit has been an important catalyst to the expansion of the supply of product from a single co-op to a larger group of co-operatives. The expanded direct deliveries are expected to commence in August 1999. The project final report will be completed in December 1999.
• Presentation of the results of the study to two international audiences: the International Agribusiness Management Association Congress in Uruguay and the Asia Pacific Congress of the International Co-operative Alliance. The address to the ICA Agricultural Committee in Korea was made by invitation from the Japanese Consumer Co-operative Union.
• Presentation of research results to industry groups including the Brigalow Beef Group; Queensland Co-operative Federation Co-op Manager's Conference and Austrade/Qld State Develeopment Organic Symposium in Brisbane.
• Support has been provided to two producer groups (one horticultural and one beef) to establish and build relationships with the Japanese co-ops.

• An in-depth understanding of the relative importance of the various factors contributing to the export-led growth success of the Australian wine industry and its lessons for other small rural industries seeking to expand via export sales.

Other important contributors to growth include upgrading of domestic preferences, increases in national income, input-saving technological changes and (negatively) increases in domestic consumer taxes on wine. Looking forward, recent and intended vine plantings ensure wine output in 2003 will be about twice that of the mid-1990s. Our model is used to examine how that vineyard expansion might affect the market, especially grape and wine prices and wine exports early next century. Results are reported in Wittwer, Glyn and Kym Anderson, "Accounting for Growth in Australia's Grape and Wine Industries, 1986 to 2003", CIES Seminar Paper 99-02, March 1999.

Work has now begun on drawing parallels (or lack of them) between the wine industry and the olive industry, with a view to eventually drawing lessons for such other industries seeking to expand their international competitiveness, whether via exporting or import replacement.

• To identify and analyse the key quality attributes and trade impediments that are influencing Australian rural goods in Asia. 
• To assess the impacts of these attributes and impediments on the returns received and to suggest marketing and trade strategies to enhance Australia's rural exports to Asian markets.

• To produce a RIRDC research report pulling together the proceedings and evaluation of a four-day cooperative leaders program.
• To produce a research report providing an international comparison of cooperative marketing arrangements between Australia, United States and Europe.

The program highlighted the fact that the keys to successful cooperatives are that prospective cooperative members should understand the:

• Environmental factors that shape the need for a cooperative. These factors will include a thorough understanding of market conditions and the attributes of the membership base; and

• Range of cooperative options that exist for creating a structure that suits those needs.