RIRDC ANNUAL OPERATIONAL PLAN 2002-2003

Rural Industries Research & Development Corporation

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RIRDC ANNUAL OPERATIONAL PLAN 2002-2003

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Program 4: Future Agricultural 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.

Research Budget: $650,000

Research Manager:
Dr Jeff Davis
Phone: 02 6272 4152
Fax: 02 6272 5877
Email: jeff.davis@rirdc.gov.au

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 2002–2003

Detailed investigation of the applicability of securitisation in agriculture to improve access to finances by the agricultural sector.

A series of trade policy analyses and reports which consider: the implications for Australia from the claims of countries during the Doha meetings; assesses whether FTAs in general have lead to avoiding policy reform; and the implications of trade reforms on bank lending in developing countries.

An assessment of conditions under which generic versus brand advertising will be beneficial to agricultural industries.

An assessment of the effects of income tax laws on investments in Australian agriculture.

Expected key outputs in 2002–2003

A detailed analysis of market power in the grains and oilseeds sector and development of a template for use by regulatory authorities and industry groups for considering this issue on an ongoing basis.

A series of reports highlighting agricultural trade policy reform implications and their use to support WTO trade negotiation developments.

Development of two reports which consider the issue of the impact of genetic modification of plants and animals on agricultural exports and also domestic consumer attitudes and therefore demand.

An analysis of social and cultural barriers to developing trust in supply chains and evaluation of the importance of the application of supply chain management principals to the success of new agricultural industry development.

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 2002–2003

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 2002–2003 include

Project No. Title Researcher Phone

GLC02-03 * Advancing the securitisation of Australian agriculture Dr. Terry Dwyer (02) 6286 5900

GLC02-08 * Agriculture in the current WTO negotiations: market access barriers and multilateral environmental agreements Ms. Fran Freeman (02) 6272 2068

GLC02-09 * Challenging the formation of FTAs as a means of avoiding agricultural policy reform Dr. Andrew Stoeckel (02) 6248 6699

GLC02-17 Economic effects of income tax-law on investments in Australian agriculture (with particular reference to new and emerging rural industries) Dr. Alastair Watson (03) 9370 7438

GLC02-19 * Generic promotion in the food chain Prof. John Freebairn (03) 8344 6414

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 2001–2002

In collaboration with Supermarket to Asia and other organisations released a major book (several volumes) which updates information on the potential for resurgence of agribusiness in Asian markets and the implications for Australian businesses.

A detailed analysis of the organisation and operation of the Japanese agrifood sector and its implications for better Australian access and wholesale markets for agricultural products in China.

A series of trade policy analyses and reports which considered: the implications of export subsidies for trade reforms; the costs and benefits of preferential trade access for developing countries; the implications of recent US farm policy developments for trade policy reforms; and the implications for agriculture from a bilateral free trade agreement between Australia and the US. Reports from this research have been used extensively to support a range of WTO meetings throughout the year. Sections of one report have been reproduced in a recent World Bank book. Support was also provided for workshops in Australia to promote the results of this research to farmer groups.

Analysis of a range of institutional structures, which can have an impact on the competitiveness of the agricultural sector. This especially included the implications of changes in equity and credit financing for the rural sector and a detailed benchmarking analysis of the technology used on the Australian waterfront and its implications for agricultural export industries.

Provided support for the annual awards for excellence in agribusiness.

Sub-Program 4.2: Resilient Agricultural Systems

Research Manager:

Dr George Wilson

Phone: 02 6281 2160

Fax: 02 6285 1195

Email: george.wilson@awt.com.au

Objective: To foster the development of agri-industry systems that have sufficient diversity, integration, flexibility and robustness to be resilient enough to respond opportunistically to continued change.

Research Budget: $945,000

Some Key Performance Indicators

The availability, for selected weeds, pests and diseases, of control strategies that are integral parts of improved sustainable agri-industry systems
Identification of new opportunities for enterprise diversity
The availability of issues papers relating to Australian agriculture's potential role as a provider of pharmaceuticals, nutraceuticals and industrial products by 2000
Availability of specific decision support software products by 2003
Provision of measures for testing the sustainability of systems

Resilient Agricultural Systems R&D Plan 1999-2004
Adopted by Board Resolution 47-1998-5

Background

The Resilient Agricultural Systems Subprogram 4.2 sponsors research and development into ways that farm based agribusiness systems can be made both sustainable and more profitable. Resilient Agricultural Systems aims to make agricultural systems more resilient in particular through the development of new commercial opportunities.

As a sub-program of RIRDC's Future Agricultural Systems Program, Resilient Agricultural Systems supports biophysically based systems, thereby complementing the trade and human capital foci of the other two subprograms.

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.

Key challenges and trends in Australia’s rural industries include:

How to be less production-driven and more market-driven. Farmers seek increasingly to meet the consumer demands for product consistency, reliability of supply, food safety, and most recently, environmental sustainability through accreditation of production systems.

Concern for the environment, especially issues of water quality and quantity, soil salinity, acidification and degradation, air quality biodiversity loss 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.

Adoption of resource conserving technologies including precision farming and information management, and a trend to patented input systems including genetic manipulation of plants and animals.

Increased vertical integration, and a systems approach to agri-industries and implementation of industry-wide quality assurance.

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

Pressure on the economic, ecological social fabric of rural and regional communities, resulting in quests to develop new businesses and ways of doing business.

Key sub-program strategies

Providing the R&D base to underpin the development of internationally acceptable accreditation systems for sustainable agricultural production, environment management and new agri-industry systems.

Developing new agricultural production opportunities that are more compatible with Australia’s fragile soils and variable climate.

Support the development of innovative agri-industry systems for production of food, fibre and bioenergy based on multiple use of resources and the conversion of liabilities into assets

Considering alternative land tenure arrangements, improved financial systems, and alternative capital structures.

Identifying the implications of new technology systems for agri-industry such as precision farming, information management and genetic engineering of plants and animals.

Strategies for 2002–2003

RAS is helping find solutions to the challenges identified above by

enabling the development of Environment Management Systems that are operationally effective at minimal cost and avoid duplication of audit and certification procedures.

improving risk management, enhancing diversity, flexibility and robustness of production systems by integrating enterprises such as agriculture, aquaculture and tourism.

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 and the use of wild plant and animal resources.

converting liabilities into assets, for example using saline land, inland saline water for aquaculture and sea weed production.

supporting research to realise private commercial benefits inherent in conservation and environment protection practices

Expected key outputs in 2002–2003

Interim report on seaweed project Industrial Seaweed agronomy in saline drainage water evaporation basins

report on Bioplastics Supply Chains - Implications and opportunities for Australian agriculture

Integrated agri-aquaculture - extension material from the Queensland demonstration facility for multiple use of farm water.

A report on the control of Parthenium weed through the use of fire.

Publication of book Farming beyond 2000: Systems theory for sustainable development and food security. Book describes key emerging theories and principles that will underpin farming systems as they evolve in the 21st century.

Expected key outcomes in 2002–2003

Increased understanding among the rural community that international accreditation in accordance with ecologically sustainable development principles is important to maintaining market access and possibly obtaining premiums.

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.

Better knowledge and skills in rural communities about climatic risks and opportunities, and effectiveness of computer-based seasonal forecasting and production prediction packages such as Rainman / Streamflow and Aussiegrass.

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

Sub-Program 4.2: Resilient Agricultural Systems — new projects being funded in 2002–2003 include

Project No.		Title	Researcher	Phone
RAS02-01		Linking incentives - Integrated policy instruments to achieve sustainable agricultural systems	Neil Gunningham	02 6249 3397
RAS02-04		Innovative paths for sustainable farm business expansion	Rod Ashby	03 5224 2663
RAS02-21		Economics of conservation through commercial use of wildlife - FATE	Michael Archer	02 9320 6110
RAS02-19		National audit of peri-urban agriculture (incorporating RAS02-16)	Peter Houston	08 8204 1633
RAS02-23		Opportunities for tourism on agricultural land through mammal reintroduction	Narelle King	07 3875 7931
MUL02-33	*	Development of an integrated pesticide risk assessment and risk management system	Sundaram Baskaran	02 6272 5767
RAS02-29	*	Climate variability in agriculture R&D program (CVAP)	Barry White	02 6257 3379
RAS02-33	*	National pest risk alert system to respond to climate variability	Robert Sutherst	07 3365 1867
RAS02-35	*	Native Vegetation and profitable perennials to ameliorate salinity, and enhance biodiversity, benefit	Nancy Schellhorn	08 8303 9543
RAS02-38		Implementation of blue heliotrope biocontrol strategy	David Briese	02 6246 4045
RAS02-20		Investigation into legumes with pharmaceutical and aquaculture potential	Shao Fang Wang	08 9222 3040
RAS02-57		Developing sustainable agriculture certification standards for marketing Australian produce	Claudio Cowell	02 8584 8888

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 2001–2002

A report on Environmental Partnerships: Combining sustainability and commercial advantage in the commercial sector

Principal sponsor of the second conference on accreditation of Environment Management Systems in Australian Agriculture, 6-8 November 2001, Ballina, NSW – Major themes at the conference were:

EMS case studies
Integration of management systems, policy innovations and trade, and environmental outcomes
Eco-labelling and green marketing, certification and auditing
Beyond compliance – EMS and regulation
Organisation of a national approach to EMS

Publication of a report on Hydroponics as an Agricultural Production System that aims to increase the understanding of hydroponics as an alternative to conventional soil based agricultural production 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

Handbook on integrated agri-aquaculture systems

Report on the development of industry standards (benchmarks) for the long-term sustainability and viability of grazing businesses.

Report on quarry rock dust as a soil ameliorant.

Proceedings of InFoRM 2000, a national workshop on integrated food production and resource management, held in Brisbane in November. It brought together farmers, industry leaders, technologists, resource managers and planners to explore integrated options for a new, sustainable Australia.

Report that sought to improve Community Participation in rangeland management. The research revealed many approaches for involving local communities in planning implementation methods for sharing decision-making power with local people.

Sub-Program 4.3: Human Capital, Communications and Information Systems

Research Manager:
Dr Roslyn Prinsley
Phone: 02 6271 4033
Fax: 02 6272 5877
Email: roslyn.prinsley@rirdc.gov.au

Objective: To enhance human capital and facilitate innovation in rural industries and communities.

Research Budget: $2,520,000

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 has a strong focus on developing effective, accessible, client-centred information, communication and education systems and processes. It funds 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 Cooperative Venture for Capacity Building for Innovation in Rural Industries is a major new initiative within Sub–Program 4.3 that was developed in 2001–2002 by a number of agencies with an interest in rural industry education and extension. Though implementation of its Business Plan, it aims to provide the R&D basis to ensure an effective rural industries’ research, education and extension system. It is managed by RIRDC on behalf of DRDC, AFFA Farmbis, MLA, GRDC, SRDC, LWA, MDBC and GWRDC.

The new Five Year Strategic Plan for the Joint Research Venture in Farm Health and Safety program has also recently been published and it focuses on developing market incentives for the adoption of Farm Health and Safety. It is managed by RIRDC on behalf of several R&D Corporations, including GRDC, MLA, AWI, CRDC, SRDC, DRDC and HAL. The development of safe systems of work on farms is vital to the enhanced well being and productivity of people in rural industries.

Sub-program 4.3 also aims to enhance human capital available to rural industries through 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, largely through the Cooperative Venture for Human Capacity Building

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.

Develop research and leadership capabilities through postgraduate scholarships and support for the Australian Rural Leadership Program

Strategies for 2002–2003

Continue to focus on development and capacity building in e-commerce and in use of the Internet for rural industry and community development

Continue and complete commissioned projects and contract new projects for the Cooperative Venture in Human Capacity Building in accordance with the Business Plan

Initiate key strategies in the new Strategic Plan for Farm Health and Safety

Implement the communications strategy for Options for change for farming people: Doing things differently

Develop a Social Atlas for Australia’s rural population and industries

Expected key outputs in 2002–2003

Information and communications systems

A report on case studies of the emergence of e-work in rural Australia

A report on case studies of developing e-commerce supply chains

A report on interactive Internet support for farm-situated learning and planning

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

Extension education and training

Reports for the Cooperative Venture on Strategies to foster involvement in learning activities and on Optimising organisational arrangements and institutional structures

A report on Older farmers and retirement

A report which identifies how attitudinal factors impact on farm family business performance

Rural communities and social issues

Publication of a report – Regional foods – Australia’s health and wealth

An evaluation report of the efficacy and outcomes of Heywire, the ABC’s Rural Youth Initiative

Policies and institutions

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

Farm occupational health and safety (Joint Research Venture)

Profile of falls in the agricultural sector

Reports of health and safety in the dairy, beef cattle and grains industries

Reports published on Benefit cost studies in farm health and safety – Literature review and Undertaking benefit cost studies in farm health and safety – Manual and case study

State farm health and safety profiles for Queensland and NSW

Training resources for farm machinery safety

A report on managing farm safety in the Sugar Industry Field Sector

A report on rural health and safety intervention for the agricultural sector in the South West of WA

An external evaluation of the National Farm Injury Data Centre and Project

Leadership and scholarships

Two Australian Rural Leadership Program scholarships awarded

Three scholarships awarded

Expected Key Outcomes in 2002–2003

Farmers and rural communities assisted by the availability of new e-commerce training materials

A better understanding for rural and regional areas of the opportunities for e-work

Cost effective tools for enhancing participation of farmers in learning activities

New strategies for facilitating appropriate farmer retirement

A basis for predicting hazards related to preventing falls on farms

Guidelines for undertaking benefit cost analyses for farm health and safety

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

HUMAN CAPITAL, COMMUNICATIONS AND INFORMATION SYSTEMS SUB-ACCOUNT

BUDGETED 2001–2002($)
Forecast 2002–2003($)
Budget

Opening Balance - -

Total Revenues - 2,739,025

Total Expenditure - 2,640,000

Surplus/(Deficit) - 99,025

Closing Balance - 99,025

Sub-Program 4.3 Human Capital, Communications & Information Systems —
new projects being funded in 2002–2003 include

Project No. Title Researcher Phone

HCC02-01 ** Organophosphate exposure in agricultural industry workers: Risk management and human exposure Michael Capra 07 3964 5804

HCC02-05 Farmers' perceptions of risk and the implications for drought policy Linda Botterill 02 6125 5534

HCC02-09 * Study of success factors of innovative off-farm rural enterprises Peter Kenyon 08 9433 2222

HCC02-10 Attitudes to recreational use of rural properties Elaine Barclay 02 6773 5141

HCC02-15 Farm succession and inheritance - Comparing Australian and international trends Ros Foskey 02 6773 2094

HCC02-20 Online group processes to facilitate rural internet research and development Warwick Easdown 07 5460 1493

HCC02-22 * ** How rural communities use and benefit from innovative communication technologies Franco Papandrea 02 6201 5083

HCC02-26 * ** Participative evaluation of learning and impacts from "farmer-driven" RDE Peter Carberry 07 4688 1377

HCC02-28
* **
Collaboration as a change management strategy in Australian agriculture Ron Passfield 07 3399 5750

HCC02-32 * Improved understanding of drivers of change for land stewardship in the small farm sector Carol Hollier 02 6030 4500

HCC02-33 Fresh Fields Rob Fletcher 07 5460 1311

HCC02-38 * ** Effective computer-mediated decision support in the 'pragmatist' market Lisa Brennan 07 3214 2373

HCC02-41 * Determination of cost of staff turnover on rural properties Jenette Martin 07 4927 4300

HCC02-48 * ** Reconceptualising extension to deliver triple bottom line outcomes Ruth Beilin 03 9250 6859

HCC02-52 * ** Creating inspiration - how visual and performing arts shape environmental behaviour Nick Reid 02 6773 2759

HCC02-56 * ** Building on leadership as a way to rural socio economic revitalisation Barbara Chambers 02 6201 5141

HCC02-61 Retaining human service professionals in rural Australia Anthony Herrington 08 9400 5571

HCC02-65 Supporting rural SMEs in selection of E-marketplaces Craig Standing 08 9400 5545

HCC02-67 National Farm Injury Data Project - continuation Richard Franklin 02 6752 8215

HCC02-69 E-Learning Pilot Program in Farm Management Cameron Archer 02 4939 8888

HCC02-70 * All Terrain Vehicles Farmsafe Australia

HCC02-71 ** On farm safety packages for horticulture and extensive beef industries ACAHS, University of Sydney

ZZX-59A Identification and development of market incentives for the adoption of safe work systems on farm To be commissioned

MS-023 Succession Handbook To be commissioned

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 2001–2002

Information and communications systems

A rural and regional guide to E-commerce

Continued web site upgrades of the Farmers’ Guide to the Internet

Extension education and training

A Business Plan for the Cooperative Venture for Capacity Building for Innovation in Rural Industries and commissioning of three central projects

A publication on control, innovation and strategy in farming

Rural communities and social issues

Publication and launch of the Kit for Small Town Renewal

Finalisation of the Options for change for farming people: Doing things differently guide that explores innovative business development options available to farmers

Publication of research reports related to the Options series on:

Leaving the Land
Costs and Benefits of Diversification
Case studies in Off Farm Income
Adding value on farm
Practical guidelines for initiating and developing farmer/producer marketing groups
Syndication of machinery, buildings and infrastructure
Succession planning

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

Farm occupational health and safety (Joint Research Venture)

Reports on:

Occupational health and safety risk associated with sheep and wool production in Australia
Health and safety risks associated with cotton production on-farm
Occupational health and safety risks associated with horticultural produce production
The health and safety of Western Australian farmers, farm families and farm workers

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 and scholarships

Two Australian Rural Leadership Program scholarships awarded
Three scholarships awarded

The Rural Women's awards completed

Links

HUMAN CAPITAL, COMMUNICATIONS AND INFORMATION SYSTEMS SUB-ACCOUNT
BUDGETED	2001–2002($) Forecast	2002–2003($) Budget
Opening Balance	-	-
Total Revenues	-	2,739,025
Total Expenditure	-	2,640,000
Surplus/(Deficit)	-	99,025
Closing Balance	-	99,025