Global Competitiveness Resilient Agricultural Systems Human Capital, Communications & Information Systems

Sub-Program 4.1: Global Competitiveness

Objective: To identify important impediments to the development of a globally competitive Australian agricultural sector and support research that will lead to options and strategies that will remove these impediments.

Budget:    $650 000

Background

International trade liberalisation and the general globalisation of the world economy during the past two decades has meant that all countries have had to focus attention on ensuring that their industries are globally competitive.

Many studies have highlighted the substantial benefits to the world that can be gained from trade liberalisation. Some have shown that the Australian agricultural sector in particular stands to gain billions of dollars in welfare gains from this process.

As well as being actively involved at an international level, through trade policy changes, for Australia to maximise the gains from globalisation it is crucial to ensure that domestic policies and processes are continually reviewed and effectively adapted.

While evidence of the longer-term gains from globalisation is clear, the processes involved in achieving them can often be complex and difficult to understand. They will, in many cases, present challenges that many businesses and community groups are not familiar with. They also require access to information and business institutional arrangements and practices which many businesses have not been use to in the past.

RIRDC believes that research can provide improved understanding in many areas, domestically and internationally, that will support the process of globalisation and ensure that the benefits from it are maximised and the difficulties associated with the change minimised. It believes that the nature of much of the research related to understanding the processes for the change has public good characteristics and therefore will not necessarily be undertaken if left to the private sector.

Key sub-program strategies
 

• Support analyses identifying new opportunities in the marketplace. Develop collaborative links with the Government’s ‘Supermarket to Asia’ initiative. Develop a research program supporting the development of a more globally focused competitive food sector.

• Support analyses focusing on domestic impediments to industry performance, thereby enhancing export performance and an export culture, particularly in those industries that have had a domestic focus.

• Develop options and strategies improving global competitiveness of the agricultural sector by improving the current set of trade policies and therefore removing existing trade barriers.

• Develop a better understanding of domestic and international markets for agricultural products when there is a clearly established market failure in the provision of such information.

• Support analyses of the linkages between various stages in the producer to consumer chain and identify areas — regionally, domestically and internationally — where these linkages can be better integrated and their efficiency improved.

• Evaluate other existing and alternative policies and institutions affecting the development of a globally competitive agricultural sector.

Strategies for 2000–2001
 

• Investigate the efficiency and effectiveness of credit financing for the rural sector.

• Development of a set of reports that will provide research background and support for Australia’s input into the next World Trade Organisation (WTO) round of trade policy negotiations and other important trade policy forums.

• Support analysis of a range of domestic impediments that are hindering the efficient development of the agricultural sector.

Expected key outputs in 2000–2001
 

• A book that updates information on the potential for resurgence of agribusiness in Asian markets and the implications for Australian businesses.

• A series of research reports on crucial issues, which will support the next WTO round of trade policy reform negotiations.

• Analyses of a range of domestic impediments that are hindering the efficient development of agricultural industries, especially such things as provision and pricing of economic infrastructure, and impediments to credit flows in rural Australia.

• Short reports to support most of the research reports.

• Production of a range of news articles promoting the results of the research reports and their distribution to the media.

• Support for a range of workshops, conference sessions and awards of excellence that promote specific project results or all program research.

• Articles incorporated in general R&D publications that highlight the main implications of research reports.

Expected key outcomes in 2000–2001
 

• A better informed Australian agrifood sector regarding the implications of the Asian financial crisis for food products through reports on changing conditions in many important Asian markets.

• An improving base of research information to support Australia’s input to the next WTO round of trade policy negotiations plus support for seminars and other activities which promote wider understanding of the results.

• An improved base of research information to support policy change regarding domestic impediments currently affecting Australian rural industry performance.

• Improved linkages between consumers and producers and therefore better satisfaction of consumer requirements through agricultural products.

• Improved skills of recently trained agribusiness professionals available to this sector of the Australian economy.

Sub-Program 4.1: Global Competitiveness — new projects being funded in 2000–2001

Project No.		Title	Researcher	Phone
GLC00-25		Efficient equity and credit financing for the rural sector: enhancing competitiveness	Mr Bob Lim	02 9957 3552
GLC00-27	*	Implications for Australian Industry of Japanese related agri-food investment	Dr Ray Trewin	02 6249 0134
GLC00-08		Export subsidy measures: important considerations for the WTO agricultural negotiations	Mr Ivan Roberts	02 6272 2239
GLC00-04		Study of regulatory cost methodologies for rural utility pricing and a guide to the utility regulatory process for rural Australia	Mr Bob Lim	02 9957 3552
GLC00-26	*	The potential impact on agricultural producers of consumer responses to genetically modified products	Dr Kate Owen	02 9351 7368

Note: An asterisk (*) indicates that the Corporation is still to finalise amendments to the project in terms of, for example, a lower budget or project design.

Achievements in 1999–2000
 

• Publications which provided updated information on the potential for resurgence of agribusiness in Asian markets and the implications for Australian businesses.

• A series of research reports on crucial issues, which have supported activities preparing for the next WTO round of trade policy reform negotiations plus associated seminars and meetings to promote the results of this research.

• Analyses of a range of domestic impediments that are hindering the efficient development of agricultural industries, especially such things as provision and pricing of economic infrastructure, and the potential impact of occupational licensing.

• A report which analyses the reasons for the export-led growth and success of the Australian wine industry and highlighted the implications for other emerging industries.

Background

The strategic plan for Sub-Program 4.2 has been developed in the context of Australia’s rural industries undergoing a period of rapid change and the need for a strong underpinning of innovation. Some changes are resulting from global trends that are significantly altering the operation of the agri-industry system. Other changes are resulting from the realisation that some historical approaches to agriculture in Australia have caused significant environmental problems.

Most changes are not marginal. They involve paradigm shifts that require strategic research with new parameters and a focus on applied outcomes integrated with improved systems.

The key trends impacting on Australia’s rural industries include:
 

• A shift from a production-driven approach to a market-driven approach including demands by consumers for product consistency, reliability of supply, food safety, product choice and most recently sustainability of production

• Concern for the environment, especially the issues of water quality and quantity, soil salinity, acidification and degradation, air quality and climate change

• Increased globalisation resulting in greater competition and growing power of transnational companies especially in food industry research, processing and marketing

• Reduced government involvement in agriculture and rural services and increased privatisation — this includes resourcing of research

• New technologies involving a trend to patented input systems including genetic manipulation of plants and animals, precision farming and information management

• The development of an industrialised system of agriculture with increased vertical integration, a systems approach to agri-industries and implementation of industry-wide quality assurance

Reduction in the number of mainstream commercial farms, increasing farm size, a rise in the number of part-time farmers and significant ongoing structural adjustment in agriculture

Key sub-program strategies
 

• Through new approaches to agri-industry production, develop systems that are compatible with environmental sustainability, and deliver viable economic outcomes. Evaluate economic and other returns to Australian stakeholders of proposed systems.

• Research methods of addressing the impediments to achieving sustainable agri-industry systems. Include consideration of alternative land tenure arrangements, improved financial systems, and alternative capital structures

• Research the management implications of new technology systems for agri-industry, especially in the areas of genetic engineering of plants and animals, precision farming and information management.

• Provide the R&D base to underpin the development of internationally acceptable accreditation systems for sustainable agricultural production and new and emerging agri-industry systems.

Strategies for 2000-2001
 

• Investigate new agri-industry systems that encompass alternative land tenure arrangements, enable the multiple use of water, encourage diversity of enterprises including integration of wildlife and tourism and facilitate value adding of production and niche marketing.

• Facilitate the development of emerging non-traditional agricultural systems for food and fibre production, including their integration with other land uses of aquaculture, hydroponics and the use of wild plant and animal resources particularly in the rangelands.

• Support research into alternative land tenure arrangements for encouraging enterprise diversification and examine the feasibility of community supported agriculture (Subscription farming) in Australia

• Encourage sustainable production systems by seeking fresh approaches to sustainable management that recognise there are poor and fragile soils over much of Australia, soil salinity problems which occur on an extensive scale, climatic variability impacts on sustainability, and the need for integrated management of pests, weeds and diseases.

• Assist Australian agriculture, business and policy makers to develop strategies to address threats arising from a range of sources including climate variability and to deal with opportunities and uncertainties arising from risks such as climate change.

• Conduct a cost–benefit analysis of the applicability of internationally acceptable, environment management and accreditation schemes for sustainable agricultural production. Facilitate research that will enable premiums for products produced in accordance with ecologically sustainable development principles.

• Address research issues and support coordination of the market led demand for internationally acceptable accreditation systems for the supply of food and fibre products

• Provide advice on management implications of some of the new technologies that are revolutionising the conduct of agriculture and placing new demands on the skills and capabilities of managers, including genetic engineering, precision farming, remote sensing and information management.

• Identify the constraints and risks imposed by pests, weeds and diseases and improve the methods used to control them.

Expected key outputs in 2000-2001
 

• A review of agriculture’s potential to provide pharmaceuticals, nutraceuticals and industrial products.

• Release of Australian Rainman as a Windows, multimedia CD and Internet compatible product to improve management of climate variability.

• Transfer to a commercial partner one or more gene/enzyme systems that can detoxify pyrethroid insecticides.  This will be one of a set of enzyme-based pesticide bioremediation capabilities under development at CSIRO.

• A report on the potential benefits of rare earths to agriculture.

• Development of a scientifically sound and operationally feasible, management plan for addressing incursions of selected grouping of agricultural pests.

• Identification of biological control agents for Serrated Tussock to the stage where they can be introduced into quarantine in Australia. Investigation of the specificity of these pathogens against key Australian native and agricultural grasses

• A report on the utilization of wastes from agri-industries in the Melbourne/Metropolitan region by identifying, characterising and developing them as resources.

Expected key outcomes in 2000-2001
 

• Greater awareness of the opportunities and benefits from new agri-industry systems that encompass alternative land tenure arrangements, enable the multiple use of water, encourage diversity of enterprises including integration of wildlife and tourism and facilitate value adding of production and niche marketing.

• Increased understanding among the rural community that international accreditation in accordance with ecologically sustainable development principles assists in obtaining premiums.

• Enhanced knowledge and skills in rural communities about climatic risks and opportunities, seasonal forecasts, and ways to improve management decisions through use of the Australian Rainman package.

• Greater awareness of opportunities to increase the diversity of farm enterprises, particularly irrigation enterprises incorporating multiple use of water and integrated aquaculture into farm operations.

• A better understanding of what is important about soil biodiversity and what are the major research needs, following publication of a workshop report on managing soil biodiversity for agricultural sustainability

This sub-program has its own Five Year Plan which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/ras5yr.htm

• Publication of a report on the Rural Adjustment Scheme - Its Role, Operation and Effectiveness. The study investigates the role, operation and effectiveness of the former Rural Adjustment Scheme in dealing with farm businesses experiencing difficult financial circumstances.

• Proceedings of Environmental Management Systems Workshop that identified the potential significance of EMS, areas for further research and support, the importance of education and communication, the need for practical examples of systems approaches to farming, and the first steps towards developing a national approach to the use of EMS in Australian agriculture.

• Publication of a report on incursion management for exotic pests of plant industries.

• Completion of an investigation into how to increase the productivity of peanut and maize crops and into the viability of a rice-cotton cropping system in the tropics.

• Report on nematodes as a useful indicator of soil condition. Details investigations into the effects of tillage on free-living soil nematodes, and how the differences in nematode populations are related to soil properties.

• Publication of an R & D plan to assist the integration of aquaculture into farm operations and to increase the diversity of farm enterprises, particularly irrigation enterprises.

• Publication of an authoritative information kit on sustainable harvesting native species by the Australian Academy of Science's Nova:  Science in the news Internet site (www.science.org.au/nova) leading to greater media and community awareness and support.

Budget: $1 700 000
 

Background

In the past significant productivity gains in agriculture were achieved by adopting new technical products or processes. Today productivity growth requires the adoption of a range of new skills and activities in addition to new production technologies. Growth now involves investing in human skills and education, analysing and using information, developing quality systems, marketing products, financial, technical and personnel management and adapting the institutional organisation and structure of the industry. Links between farmers and the regional society in which they live are also important to the continuing development of vibrant rural communities.

The current era is known as the information age. In OECD countries, the information sector accounts for one-third to one-half of gross domestic product and of employment. Information and the skills, knowledge and systems to apply it to management are required for Australia’s rural industries to become more innovative. Innovation is necessary in order to maintain a competitive edge in today’s global markets. The better the quality of information and the more targeted and accessible it is to appropriately skilled farmers, the more successful the agricultural sector will be.

This program focuses on developing effective, accessible, client-centred information, communication and education systems and processes. It will fund underpinning R&D which will enhance the capacity of farm managers to identify, acquire and apply the skills and information needed to improve the performance of their farm businesses both in terms of profitability and sustainability.

The program also aims to enhance human capital available to rural industries through improved practices for farm health and safety, research related to social issues in rural communities and households and the provision of scholarships for rural leadership and postgraduate research.

Key sub-program strategies
 

• Develop electronic communication systems with emphasis on responsiveness to farmers’ needs.

• Further investigate farmer education and training, particularly delivery mechanisms and the links between formal and informal sectors.

• Investigate rural social issues and issues relating to rural communities both in towns and on farms.

• Evaluate existing and alternative policies and institutions affecting the development of a more innovative rural sector.

• Support farm occupational health and safety research focusing on improved uptake mechanisms, data, hazard profiles for each commodity group and design.

• Develop research and leadership capabilities through postgraduate scholarships, support for the Australian Rural Leadership Program and support for strengthening the role and profile of rural women.

Strategies for 2000-2001
 

• Continue to focus on the development of accessible client-centred information and communication systems with particular emphasis on electronic commerce and the development of global networks.

• Develop a business plan on behalf of RIRDC, DRDC, MLA, The Woolmark Company and GRDC for a joint research program to facilitate improved uptake of education and adaptation to change on farm and to enhance the professional development of change agents.  This plan should result in a joint program of research between the partners.

• Implement a project to develop a new series on Options for Farming People:  Doing things differently to assist family farms to make decisions on business development options including enterprise improvement, diversification, alternative asset use and ownership and exiting the industry

• Develop a national database of education and training programs relevant to producers and scope  a decision support tool to help providers find courses that suit their needs

• Continued production of data and information on farm deaths, injury and illness to support policy and programs development in Occupational Health & Safety

• Implement a national farm machinery strategy

• Develop a five-year strategic plan for the program.

• In addition to targeting the rural print and electronic media, seek to widen the impact of the communications strategy by creating alliances, where relevant, with the NFF’s Farmwide organisation, rural advisers and policy makers.

Expected key outputs in 2000-2001

Information and communications systems

• A report on selected case studies of the use of e-commerce in agriculture

• A database of automation technology and expertise in agriculture

• The creation of global networks for FM500 farming families and their accelerated adoption of the internet

• Continued production of the Shaping the Future for the Internet and Information Technology newsletter

• Establishment of the Kondinin FarmLine information system on line

• Provision to north Australian rural communities of daily access to remotely sensed fire data

Extension, education and training

• A report which recommends mechanisms to develop more suitable entry selection into universities and provides more clear direction for course development in line with industry needs

• A manual of tested tools for gaining participation of farmers and other stakeholders in rural R&D

• A project which scopes an integrated national education and training database

• A project on indigenous participation in rural/agricultural learning

Rural communities and social issues

• A project to develop a series on Options for Farming People: Doing things differently that explores many of the key business development options available to farming families

• A project with other RDCs and agencies on improving learning processes for change on farms

Farm occupational health and safety

• A project to implement a national farm machinery strategy

• A report which reviews regulation of farm machinery safety

Leadership

• Two Australian Rural Leadership Program scholarships awarded.

Scholarships

Expected key outcomes in 2000-2001
 

• Farmers assisted by the availability of improved services through the Internet.

• Farmers assisted by the availability of data and information to aid implementation of automation technology

• Improved capability of extension agents to achieve high levels of participation by stakeholders in R&D activities

• Improvements in farm occupational health and safety available from the delivery of the Managing Farm Safety course.

• Farmers with greater leadership capacities developed through the Australian Rural Leadership Program, the Rural Women’s Award 2000 and the Nuffield Foundation.

This sub-program has a Five Year Plan on Farm Safety which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/ohs5yr.htm
 

Sub-Program 4.3 Human Capital, Communications & Information Systems sub-program — new projects being funded in 2000-2001
 

Project No.		Title	Researcher	Phone
HCC00-06	*	Reducing all-terrain vehicle injury	Dr Tony Lower	08 9266 4123
HCC00-29		Options series:  Sources of farm household income - policy implications	Mr Tony Gleeson	07 3844 2370
HCC00-35		Options series - Leaving the land - A study of farm families in transition	A/Prof John Carey	03 9818 3763
HCC00-36		Options series - Techniques for the growth of the family farm business	Mr Geoffrey Tually	03 5362 2222
HCC00-39	*	Impacts of changing farm business structures on rural communities	Dr Matthew Tonts	08 9400 5804
HCC00-55	**	Evaluation of the efficacy and outcomes of the Heywire Youth Issues Forum	Ms Fiona Haslam-McKenzie	08 9273 8781
HCC00-56	**	Staying at home - Integrating rural youth in rural communities	Dr Lia Bryant	08 8302 4363
HCC00-65	**	Effectiveness of competency based workplace training in rural industries	Professor Snow Barlow	03 9250 6811
HCC00-69	*	Indigenous participation in rural learning related to agriculture	Dr Elspeth Young	02 6249 4954
HCC00-75		Government responses to farm poverty 1989-1998	Ms Linda Botterill	02 6249 5534
HCC00-81		Options series:  - Review of succession planning for farmers based on successful case studies	Mr Mike Stephens	03 5341 7652
HCC00-82		Options series:  - Syndication of machinery building and infrastructure	Mr Mike Stephens	03 5341 7652
HCC00-85		Heywire – The ABC gives regional youth a voice	Ms Justine McSweeney	03 9626 1861

Achievements in 1999–2000

Information and communications systems

• A report evaluating the use of the Internet as a tool to increase the cost-effectiveness of interactions among scientists, advisers and farmers when using computer simulation models.

• The second edition of The Australian Farmer’s Guide to the Internet

• A new guide was produced: Websites for Rural Australia – Designing for Accessibility

• A report on farmers’ usage patterns of computers and the impact on farm management

• An information web site for tree crops

• A CD ROM of rural and remote health papers

• A report on a standardised classification system and thesaurus for Australian agricultural extension information.

Extension, education and training

• Recommendations on strategies to enhance farmer learning in marketing and management for male and female farmers.

• A report on the role of stock and station agents as information providers.

• A report on strategies to revitalise agricultural extension

Issues relating to rural communities

• Completion and launch of Missed Opportunities II,  a successfultrial of strategies to increase women’s participation in agricultural industry associations

• A report on priorities for research into social issues in rural communities

• A report on the impact of declining infrastructure in rural Western Australia.

Evaluate existing and alternative policies and institutions

Farm occupational health and safety

• A project on establishing the Managing Farm Safety course delivery system.

• A report on overcoming the barriers to implementation of practices to prevent farm injuries

• A report on the influence of seat modifications to tractors on the lower back.

Leadership

• Awarded two scholarships for participation in the Australian Rural Leadership Program.

Scholarships

• Awarded three new scholarships for PhD studies in RIRDC-related areas of study.