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

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:     $680,000

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 accustomed 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, which 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 2001-2002
 

• Detailed investigation of the existence and consequences of market power in the food processing/food-retailing sector.
• A series of trade policy analyses and reports which consider: the implications of trade reforms on bank lending in developing countries; the costs and benefits of preferential trade access for developing countries; and the environmental effects of global agricultural subsidies.
• An assessment of whether there has been a consistent error in world population predictions and if so what the implications are likely to be for Australian agriculture.
• An analysis of the consequences for Australian exporters of biotechnology adoption and differences in government policy responses to this new innovation around the world.
• An integrated activity linked with farmer organisations which aims to convert value chain information into producer-based actions.

Expected key outputs in 2001-2002
 

• A better understanding of the organisation and operation of the Japanese agrifood sector and its implications for better Australian access.
• A series of reports highlighting agricultural trade policy reform implications and their use to support WTO trade negotiation developments.
• A range of reports on the implications of domestic policies and institutional structures on the competitiveness of the agricultural sector and any suggestions for changes to improve this competitiveness.

Expected key outcomes in 2001-2002
 

• A better informed Australian agrifood sector regarding the implications of the Asian financial crisis and subsequent developments 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 community understanding of the implications of these changes.
• 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 2001–2002 include
 

Project No.		Title	Researcher	Phone
GLC01-02	*	Food processor/retailer market power in input markets	Dr. Chris O'Donnell	(02) 6773 2815
GLC01-08		Global demographic and income trends: their impact on food consumption	Prof. Ronald  Duncan	(02) 6249 4765
GLC01-09		Global biotechnology adoption and policy responses: consequences for Australian exporters	Prof. Kym Anderson	(08) 8303 4712
GLC01-15	*	Agricultural trade reform and bank lending in Cairns Group developing countries	Dr. Andrew Stoeckel	(02) 6248 6699
GLC01-17	*	Preferential access, trade reform and bank debt for developing countries	Dr. Andrew Stoeckel	(02) 6248 6699
GLC01-19		Converting value chain information into producer-based action	Dr. Ray Collins	(07) 5460 1328

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 2000–2001
 

• A major book that 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 several meetings aimed at progressing the next WTO round of trade policy reform negotiations. For example, the WTO meeting in Seattle and the Cairns Group meeting in Banff.
• Reports on a range of domestic impediments that are potentially hindering the efficient development of agricultural industries. These included: an assessment of market power in the food processing and retailing chain; an assessment of the implications of professional regulations; analysis of trends in foreign investment in the agri-food sector and implications for exports; and an analysis of developments in the provision and pricing of infrastructure to regional Australia.
• Reports on a range of institutional structures, which can have an impact on the competitiveness of the agricultural sector. These included: trends domestically and internationally in co-operative structures; and the implications of changes equity and credit financing for the rural sector.

 

 

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Budget:     $984,743

Background

This program sponsors research and development into ways that farm based agribusiness systems can be developed and/or made both sustainable and more profitable. RAS aims to make agricultural systems more resilient and at the same time develop commercial opportunities. As a sub-program of RIRDC Future Agricultural Systems Program it supports biophysically-based systems thereby complementing the trade and human capital foci of the other two sub-programs.

Over past decades, Australian farmers have responded to Australia's declining terms of trade for many rural products by reducing costs and increasing productivity. Yet there are physical and environmental limits to the capacity of Australia's natural resources to do so - particularly in drought.

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 sustainability of production and most recently accreditation of production systems.
• 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 including a trend to patented input systems including genetic manipulation of plants and animals, precision farming and information management.
• The intensification of agriculture resulting in development of industrialised systems 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.
• Threats to the economic, social and environmental sustainability of rural and regional communities, resulting in quests to develop new businesses and ways of doing business.

Key sub-program strategies
 

• Develop new agricultural production opportunities that are more compatible with Australia’s fragile soils and difficult climatic conditions.  Assist Australian agriculture, business and policy makers to develop new agricultural industries to utilise saline land.
• Consider alternative land tenure arrangements, improved financial systems, and alternative capital structures that could address impediments to achieving sustainable agri-industry systems of critical business size.
• Identify the implications of new technology systems for agri-industry such as precision farming, information management and genetic engineering of plants and animals.
• Provide the R&D base to underpin the development of internationally acceptable accreditation systems for sustainable agricultural production, environment management and new agri-industry systems.

Strategies for 2001-2002

RAS is helping find solutions to the challenges identified above by:
 

• improving risk management and enhancing diversity, flexibility and robustness of production systems.
• supporting the development of new agri-industry systems integrating new technologies and /or new combinations of established technologies.
• supporting non-traditional agricultural systems for food and fibre production, especially those based on multiple use of resources, the use of wild plant and animal resources.
• converting liabilities into assets, for example using inland saline water for aquaculture and sea weed production.
• supporting research to realise private commercial benefits inherent in conservation and environment protection practices.
• enabling Australian producers to respond to the market led demand for internationally acceptable accreditation systems for the supply of food and fibre products.

Expected key outputs in 2001-2002
 

• Publication of report on Environmental Partnerships:  Combining Sustainability and Commercial Advantage in the Commercial Sector.
• Second conference on accreditation of Environment Management Systems.
• Commercialisation of  substances that bioremediate Pyrethroid contaminated wastes.
• Review of the farm and resource management issues relating to genetically modified plants.
• Commercialisation of Distichlis for rehabilitation of highly saline areas for grain, turf and grazing.
• Publication of book ‘Farming Beyond 2000: Systems Theory for Sustainable Development and Food Security’.  The book describes key emerging theories and principles that will underpin farming systems as they evolve in the 21st century.

Expected key outcomes in 2001-2002
 

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

Sub-Program 4.2: Resilient Agricultural Systems — new projects being funded in 2001–2002 include

Project No.		Title	Researcher	Phone
RAS01-07	*	Converting processes to standards - Integrating quality, food safety and environmental codes of practice	Dr Barbara Geno	07 5459 4469
RAS01-08	*	Certification systems in the agrifood industries	Dr Stefan Fabiansson	02 6272 5328
MUL01-16	*	Environmental management guidelines for trout production in inland saline water	Dr Alan Lymbery	08 9360 2729
RAS01-13	*	Plant virus reference collections	Ms Jane Moran	03 9210 9222
RAS01-25	*	Multiple use of water - Integrated agri-aquaculture demonstration facility	Dr Adrian Collins	07 3400 2024
RAS01-71	*	Industrial Seaweed agronomy in saline drainage water evaporation basins	Mr Robert Cordover	02 6282 6181
AFT01-05	*	Building regional Australia's capacity to initiate markets for ecosystem services	Mr Carl Binning	02 6246 5924
RAS01-65	*	Conference and Workshop on the Future of Farming	A/Prof Ken Rickert	07 5460 1113
RAS01-50	*	Bioplastics Supply Chains - Implications and opportunities for Australian agriculture	Mr David Michael	02 9369 2735

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 2000–2001
 

• A review of agriculture’s potential to provide pharma-ceuticals, nutraceuticals and industrial products.
• A report on the potential benefits of rare earths to agriculture.
• Development of a scientifically backed 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 utilisation of wastes from agri-industries in the Melbourne/Metropolitan region by identifying, characterising and developing them as resources.
 

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Budget:     $2,358,000

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 2001-2002
 

• Continue to focus on development and capacity building in e-commerce.
• Implement a Cooperative Research and Development Venture on Innovating and developing human capacity in rural industries.
• Complete publications and guides for the series Options for Change 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 and implement a communications strategy for the guides.
• Continued production of data and information on farm deaths, injury and illness to support policy and program development in Occupational Health and Safety.
• Implement a national farm machinery strategy.
• 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 other R&D Corporations, rural advisers and policy makers.

Expected key outputs in 2001-2002

Information and communications systems
 

• A farmers’ guide to the use of e-commerce in agriculture.
• A report on interactive internet support for farmers to work with scientists.
• Continued production of the Shaping the Future for the Internet and Information Technology newsletter.

Extension education and training
 

• Projects with other R & D Corporations and agencies on innovating and developing human capacity in rural industries.
• A report on indigenous participation in rural learning for rangeland sustainability.

Rural communities and social issues
 

• Publication and communication of a series on Options for Change for Farming People:  Doing Things Differently that explores many of the key business development options available to farming families.
• A report which identifies the social needs of youth and strategies to encourage youth to remain in rural communities.
• A report which identifies strategies for enhancing the leadership role of schools in rural communities.
• A leadership training course for youth winners of ABC Heywire competition.

Policies and institutions
 

• A report which proposes concrete ways to encourage creativity in agricultural research institutions.

Farm occupational health and safety.
 

• Training resources for farm machinery safety.
• A report which reviews regulation of farm machinery safety.
• A report on the comparison between different approaches to farm injury prevention in Victoria and Queensland.

Leadership
 

• A new Rural Women’s Award launched.
• Two Australian Rural Leadership Program scholarships awarded.

Scholarships
 

• Three scholarships awarded.

Expected key outcomes in 2001-2002
 

• Farmers assisted by the availability of e-commerce training materials.
• Improved information for farmers on options for change.
• Improved capability of extension agents to achieve higher levels of participation by stakeholders in R&D activities.
• Farmers with greater leadership capacities developed through the Australian Rural Leadership Program, the Rural Women’s Award 2000 and the Nuffield Foundation.

Sub-Program 4.3 Human Capital, Communications & Information Systems
— new projects being funded in 2001-2002 include
 

Project No.		Title	Researcher	Phone
HCC01-06	*	Developing E-Commerce in supply chains - Case studies and how to's	Mr Graham Forsythe	0409 691 345
HCC01-13		Case studies of the emergence of E-work in rural Australia	Dr Peter Standen	08 9273 8335
HCC01-19	*	The Australian Farmers Guide to Electronic Commerce	Mr Robert Parker	0411 812 730
HCC01-43	**	Rural industry national education and training website project	Mr Tony Audley	02 6273 2514
HCC00-39	*	The Impacts of Changing Farm Business Structures on Rural Communities II	Dr Matthew Tonts	08 9400 5804
HCC01-51		Profiling Australia 's rural population and industries	Dr Gerald Haberkorn	02 6272 5195
HCC01-60	*	Development of programs and strategies to prepare entrants to farming	Mr Richard Stayner	02 6773 2281
HCC01-66		Heywire III - The ABC gives regional youth a voice	Ms Justine McSweeney	03 9626 1861
HCC01-03	**	Getting the Message:  Improving manual handling in the wool industry	Dr Sue Kilpatrick	03 6324 3018
HCC01-04	*	Noise injury prevention in agriculture	Mr Richard Franklin	02 6752 8215

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. Two asterisks (**) indicates the project will only proceed if external funds become available.

Achievements in 2000–2001
 

• A CD Rom of Prime Notes for Agricultural Extension.
• A report on the assessment of the demand for online services in rural Australia and the infrastructure available to support this demand.
• A report and workshop on e-commerce case studies

Extension, education and training
 

• Release of prospectus for a cooperative venture in Innovating and developing human capacity in rural industries.
• A report on control, innovation and strategy in farming.

Rural communities and social issues
 

• A report on what motivates rural men to improve their health status.

Farm health and safety
 

• Establishment of the Managing Farms Safety course delivery system.
• A priority-setting workshop on agricultural pesticides and human health in Australia.
• A report on farm-related fatalities in Australia.
• A report on rural injury in central Queensland.
• A report on The Health and Safety of Australia’s Farming Community.

Leadership
 

• Awarded two scholarships for participation in the Australian Rural Leadership Program.
• Awarded seven bursaries in the Rural Women’s Awards.

Scholarships
 

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



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