General Manager
Ms Margie Thomson
Ph: 02 6272 4152
Fax: 02 6272 5877
margie.thomson@rirdc.gov.au
 

Portfolio Strategies
Invest in R&D for RIRDC’s established rural industries:

Portfolio Success Measures
We will know we are successful when:

Background
The Established Rural Industries Portfolio spans the rice, chicken meat, horse, pasture seeds, fodder crops, honeybee, deer and buffalo industries. Separate research programs are managed by RIRDC on behalf of these eight industries and are funded through one or more of the following sources:

The impact of the drought on agricultural production has led to reduced levy revenue available to fund R&D within the Established Rural Industries Portfolio.

RIRDC will continue its focus on support for higher yielding and improved quality crops and pastures through support for the development of improved oat varieties for hay production, definition of best practice Oaten Hay production techniques, determination of the impact of nematodes on pasture seed production and release of techniques to support lucerne pollination with leafcutter bees. A focus on innovation and development in established rural industries will play a key role in ensuring the commercialisation of products such as:

Challenges and Opportunities
To remain profitable and sustainable, while improving the condition of Australia's natural resources, remains a key challenge for established rural industries. The high level of competitiveness in international markets also means that issues such as biosecurity, targeting of products to enhance market access, assessment of product integrity, and animal and crop health issues need to remain a central focus. For example:

Key Deliverables for 2007–08

Research Manager
Dr Vivien Kite
Ph: 02 6272 4152
Fax: 02 9925 0627
vivien.kite@chicken.org.au

Objectives
hrough focused R&D, support increased sustainability and profitability in the chicken meat industry.
Strategic plan and internet accessibility

The program has its own five-year R&D plan which is accessible in hard copy and at http://www.rirdc.gov.au/pub/chick5yr.htm

Sources of funds
The Program is funded by statutory levies paid by industry participants. This levy revenue is matched by RIRDC at up to 0.5 percent of GVP. No new source of joint funding has been identified.

Total R&D expenditure budget  $3,015,000

Background
Average annual domestic consumption of chicken meat is currently approximately 35.9 kg / person. In 2005–06, the chicken meat industry produced 772,000 tonnes of chicken meat from 474.5 million birds.

NSW is the largest producer(34%), followed by Victoria (28%), Queensland (19%), South Australia (9%), Western Australia (9%) and Tasmania (1%). Production has increased steadily over the past decade, with annual growth rates ranging between0% and 7%. In 2005–06, the number of birds produced increased by 2.4% over 2004–05.

Production is dominated by a small number of large, vertically integrated, privately owned enterprises. These companies typically own hatcheries, feed mills, breeding farms and processing plants across a number of States, and contract the growing of their meat chickens to independent growers, of which there are approximately 850 nationally. Each of the major companies operating in the industry invests significant funds into in-house R&D, particularly in the areas of market research and product development, processing technologies, quality control procedures, distribution and packaging.

Australia is a very small producer of chicken in a global context. The largest international chicken producing countries are the US (28% of world production), China (19%), Brazil (14%) and the EU (13%). The US, Brazil, the EU and Thailand are the biggest exporters of chicken meat, holding approximately 37%, 31%, 13% and 9% of the world export market.

Only 22,000 tonnes (less than 5% of domestic production) was exported in 2005–06, at a value of $21 million. Australia is considered to have a good bird health status compared to most countries, and is one of the few continents untouched to date by the impacts of the H5N1 strain of avian influenza. This may provide opportunities for the export of breeding stock.

The RIRDC Chicken Meat R&D Program is a major partner in the Australian Poultry CRC which ensures a comprehensive and well coordinated research program for the Australian chicken meat industry. The RIRDC Program has been adapted to collaborate with and complement the CRC program.

To remain competitive and expand its markets, the industry also recognises the need for it to continue to make significant gains in areas of technical and cost efficiency. While its record in this respect over the past fifty years has been impressive, new and more effective solutions to old problems will need to be devised to support industry growth and sustainability. Flock health and optimal bird nutrition and feed utilisation are critical to the productivity and efficiency of the industry. Therefore, the Chicken Meat Program will, in collaboration with the CRC, continue to seek new ways to manage these issues, particularly through the exploration of alternative approaches for manipulating gut microflora so as to deliver beneficial impacts in terms of gastrointestinal health, feed efficiency and overall flock performance.

Environmental management issues will also continue to pose many challenges for industry over coming years, and there will therefore be a growing need to monitor the industry’s environmental impacts and to develop and implement management programs and technologies which reduce these impacts.

Industry participants can and do undertake significant amounts of R&D (particularly in nutritional and bird health management, processing practices and product development). However, there remains a recognised need for the more ‘generic’ R&D that can best be undertaken through whole of industry funding bodies such as RIRDC and the Australian Poultry CRC. Industry support for the RIRDC Chicken Meat Program continues to be strong. The Australian Chicken Meat Federation has become much more active in the area of product and industry image management.

Key long term strategies

Key Performance Indicators

Note: An asterisk (*) indicates that the Corporation is still to finalise amendments to the project.

Chicken Meat Budget Statement for 2007–08

Research Manager
Ms Margie Thomson
Ph: 02 6272 4152
Fax: 02 6272 5877
margie.thomson@rirdc.gov.au

Objectives
To improve the productivity and profitability of the Australian bee keeping industry.

Strategic plan and internet accessibility
This program has its own five-year R&D plan, accessible in hardcopy and at http://www.rirdc.gov.au/programs/hb.html

Sources of funds
The Honeybee R&D Program is funded by statutory levies paid by industry participants. The levy is matched on a dollar for dollar basis by the Commonwealth up to 0.5 per cent of the gross value of farm production.

Total R&D expenditure budget  $625,400

Background
Average Australian honey production ranges between 20–30,000 tonnes per year (ABARE 2003). NSW is the largest producer (41%), followed by Victoria (19%), Queensland (15%), South Australia (13%), Western Australia (8%) and Tasmania (4%). The gross value of production is estimated to average around $65 million. Average production per hive was 118 kilograms per hive in 2005.

There are around 9,600 apiarists in Australia operating around 500,000 hives. Over 70% of hives are operated by commercial beekeepers managing more than 200 hives. Most commercial honeybee keepers are regionally based. Domestic honey consumption is likely to remain relatively elastic with other spreads representing a close substitute as retail prices increase. There is currently a strong demand in the horticultural industry for hive pollination services.

International bulk honey prices peaked at $US1,600 per metric tonne in 2003, but fell dramatically in 2005 to $US800 per metric tonne. Key international honey producing countries are China, the US and Argentina. Australia is the 9^th largest producer (USDA 2005). China and Brazil exports are estimated to increase.

Australia normally imports a relatively small quantity of honey apart from drought years ($12 million in 2004, $38.3 million in 2003 (DFAT 2005). Australian exports average around 8–9 million kilograms per annum. Prices are highly variable pending on international market conditions.

Future growth of the honeybee industry is dependent on international demand and supply conditions, access to public flora resources and the industry’s ability to cope with pests and diseases.

Varroa mite is an external honeybee parasite that attacks both the adults and the brood and can kill honeybee colonies. The introduction of varroa mite would have a dramatic impact on domestic production and the industry is reliant on R&D to address this and other potential threats from pests and diseases. Several recent research projects have focused on this.

There continues to be strong support for the Program by industry (RIRDC Five-year Planning Workshop 2006) and opportunities for productivity enhancements through improved technology are significant and are a key component of the RIRDC Honeybee Program.

The industry continues to lobby for access to native flora, as without this, commercial beekeeping would not exist.

Key long term R&D strategies

Honeybee Budget Statement for 2007–08

Queenbee Budget Statement for 2007–08

Research Manager
Ms Margie Thomson
Ph: 02 6272 4152
Fax: 02 6272 5877
margie.thomson@rirdc.gov.au

Objective:
To improve the profitability and sustainability of the Australian rice industry.

Strategic plan and Internet accessibility:
This Program has its own five-year R&D Plan, accessible in hard copy and at www.rirdc.gov.au/programs/rice.html

Source of funds:
The Rice R&D Program is funded by statutory levies paid by industry participants. This levy revenue is matched on a dollar for dollar basis by the Commonwealth up to 0.5 percent of the gross value of farm production.

Total R&D expenditure budget  $2,139,000

Background
The Australian rice industry is primarily based in the Murrumbidgee and Murray Valleys of southern New South Wales. During a ‘normal’ growing season a crop of over one million tonnes can usually be expected. However, average rice production has been severely affected by water availability as a result of poor seasonal conditions, water prices and fluctuations in temperatures during the growing season. Production peaked in 2001 with over 1.7 million tonnes being produced. In 2006 just over 1 million tonnes were produced however, rice production is expected to be less than 150,000 tonnes in 2007 due to a return to severe drought conditions.

The Gross Value of Production (GVP) has fluctuated over the last five financial years due to changes in production caused by severe drought conditions in 2003, 2004 and 2005. GVP has averaged $198 million over the last five years, peaking at $333 million in 2006 (ABARE). Prices received by rice growers are highly variable with rice paddy returns averaging $204 per tonne in 2000–01 and $299 per tonne in 2003–04. Returns averaged around $280 per tonne in 2005–06.

Over the last 20 years the number of farm businesses that have predominantly grown rice has declined as the size of the area operated per business has increased. ABARE estimate there are currently around 1,500 rice farm businesses. Rice yields averaged 8.7 tonnes per hectare over the last five years. The highest yield recorded was in 2003 with 10.2 tonnes per hectare being produced and the lowest yield being 6.7 tonnes per hectare in 2005. Cold temperatures during panicle formation can dramatically reduce yields, as experienced during 2005.

Domestic per capita rice consumption has increased from 2 kg per person in the late 1970s to 11kg per person in recent years. Rice consumption is expected to continue to increase due to a number of factors including immigration from Asia and the Middle East; changes in cuisine that include rice, and continued growth of the food service and processing sectors. International demand for Australian rice is also expected to increase, despite import protection barriers restricting sales in a number of potential key markets.

Continued improvements in efficient water usage will be key to the future profitability and sustainability of the industry.

To address the impact of the current drought on Program income, a significant drawdown in financial reserves will be required in 2007–08. Further, researchers of current projects have been requested to reduce their budgets by up to 15%. This will allow a Program budget of $2.0 million in 2007–08 and no new projects will be funded.

Key long term R&D strategies

Rice budget statement for 2007–08

Research Manager
TBA
Ph: 02 6272 4152
Fax: 02 6272 5877
margie.thomson@rirdc.gov.au

Objective:
Assist in developing the Australian horse industry and enhancing its export potential.

Strategic plan and internet accessibility:
This program has its own Five-year R&D Plan, accessible in hardcopy and at http://www.rirdc.gov.au/programs/hor.html

Source of funds:
This program is funded by voluntary industry revenue and matching RIRDC funds. The industry is seeking to put these arrangements on a statutory basis.

Total R&D expenditure budget $1,221,200

Background
The number of horses in Australia is estimated to be 1.2 million. Of these between 10–50% are registered. There are estimated to be 300,000 feral horses – most in the north of Australia. In the 2005–06 breeding season 29,070 thoroughbred mares were covered by 883 stallions. The mares produced 17,854 foals (64% success rate) of which 13,618 were registered.

Considering all sectors of the horse industry, breeding and racing (particularly thoroughbreds) contributes the greatest gross value of production. In 2005–06 the thoroughbred industry in Australia had 379 race clubs maintaining 355 racetracks. These clubs held 2,752 race meetings during which 19,963 races were conducted with 195,720 starters.

The majority of elite thoroughbred stallions, mares and horse farms are owned by a relatively small number of individuals or corporations. Future growth of the thoroughbred industry is directly related to prize money which is in turn related to wagering. Both have continued to increase annually and as such the racing industry is likely to continue to expand. However, competition for the wagering dollar will continue to place pressure on this part of the industry.

Australia has the second largest number of registered thoroughbreds in the world (USA 1^st). The international market for high quality thoroughbred horses remains robust. Australia is likely to continue to be a net exporter of horses for the foreseeable future. In 2005–06, 1,695 thoroughbred horses were exported from Australia (with 892 being imported). The majority are exported to New Zealand with significant percentages going to Singapore, Hong Kong, Korea, Macau and China with those in the latter groups mainly being males to be used as racehorses. Eighty percent of thoroughbred imports in the same period came from New Zealand, with 10% from the USA and 3–4% each from Great Britain and Ireland.

In addition to the thoroughbred industry, which does supply horses to the pleasure sector, there are many other smaller but important components of the horse industry. A significant example is the Australian Stock Horse Society. Established in 1971 the Society is one of the largest of more than 70 individual horse breed associations in Australia. Membership approaches 9,500 individuals with in excess of 170,000 registered horses. The successful performance of the Australian Stock Horse has not only been recognised throughout Australia, but exports to the United Kingdom, United States of America, Africa, New Zealand and Asia have given this quintessential Australian horse worldwide recognition.

Other major performance breeds in Australia include Arabian and Quarter horses. The Arabian Horse Society of Australia, one of the oldest organisations, saw 117,331 horse registrations and 3,771 full members in 2005. The Australian Quarter Horse Association (AQHA) founded in 1972, serves a growing and diverse industry. The organisation has been enjoying approximately 7,000 new horse registrations in each of the past few years. The Association has 6,000 members with over 139,000 horses registered.

Australia has a long tradition of elite performance in Olympic equestrian disciplines, particularly in eventing but also Dressage, Show Jumping, Vaulting, and Carriage Driving. All the activities are under the overall auspices of the Equestrian Federation of Australia (EFA). The EFA has been critical in the process of assisting Australian horses and riders compete successfully in international competitions. To that end Australia now has several horse and rider combinations participating in each of the prestigious European show jumping, dressage and eventing competitions. Australia is expected to field teams in each of these disciplines at the 2008 Beijing Olympic Games; with the equestrian events being held in Hong Kong. The EFA also oversees the FEI (Fédération Equestre Internationale) aspects of endurance riding competitions which continue to increase in number and popularity in Australia. There is a growing international market for Australian bred endurance horses which are mostly Arabians.

The Pony Club movement in Australia is a grass roots organisation that underpins the social fabric of a large sector of Australia’s junior and youth constituency. Since its inception in 1946, Pony Club Australia has grown to the extent that it now has around 40% of the junior membership in the world. Pony Club in Australia is a world leader in encouraging young people to ride, offering a well structured curriculum for young riders, an efficient central administration and a comprehensive insurance system to highlight just a few features. Australian pony club riders enjoy international and trans-Tasman competition success and in 2006 the Australian team came 2^nd at the International Mounted Games Championships in Great Britain.

A major problem for the horse industry as a whole is persisting drought. As a result there has been loss of available grazing and with the cost of feed more than doubling over the past 12 months, many farm, breeding, ‘backyard’ and/or ‘pet’ horses have been sent to sale. Of those horses passing through sales, around 30,000 per annum are processed for human consumption, with this meat being exported.

Australia has the enviable reputation of being free of many of the major endemic horse diseases. This includes freedom from Equine Influenza, African Horse Sickness, Surra, West Nile Virus, and Glanders to name but a few. An initiative by the Australian Horse Industry Council to develop a levy on new horse registrations in order for the horse industry to become a signatory to the Emergency Animal Disease Response Agreement is likely to be supported and enacted in 2007–08.

A new five-year R&D plan for the horse industry covering the period 2006–11 is currently being implemented.

The previous plan was reviewed in the development phase of the new plan.

There is currently no industry levy for the Horse R&D Program and all funds are provided as donations, largely from the racing and thoroughbred breeding industries. Since the commencement of the Horse Program financial support has been received from Racing Victoria, Equestrian Federation of Australia, the Australian Stock Horse Society, the Australian Quarter Horse Association, the Australian Equine Veterinary Association, the Australian Thoroughbred Breeders Club, Hawkesbury, Mr Gerry Harvey, Coolmore Australia, Tyreel Stud, Alanbridge Stud, Logans Insurance, Howard Insurance, Peptech Animal Health, Magic Millions, International Racehorse Transport, the Paint Horse Association, Ms Barb Vial, Dolly van Zaane and the Australian Harness Racing Council. Racing Victoria Limited contributed $200,000 to the RIRDC Horse Program in 2006–07 with a commitment for three years, contingent on the outcomes of a review of program outputs after the first twelve months. The research program has been substantially expanded as a result of this investment by Racing Victoria and the Advisory Committee has put in place a plan to maximise the use of the additional funding. A number of large projects have been initiated including:

Horse Budget Statement for 2007–08

2.5 Fodder Crops

Research Manager
Ms Annette Sugden
Ph: 02 6271 6497
Fax: 02 6272 5877
\annette.sugden@rirdc.gov.au

Objectives
To facilitate the development of a sustainable and profitable Australian fodder industry producing quality product.

Strategic plan and internet accessibility
This program has its own five-year R&D plan, accessible in hardcopy and at http://www.rirdc.gov.au/programs/fca.html

Sources of funds
The Fodder Crops R&D Program is funded through a mixture of RIRDC core funds, a voluntary levy on both domestic hay and exports of cereal hays and some contributions from other RDCs to co-funded projects.

Total R&D expenditure budget  $457,000

Background
Fodder production includes hay of all types, chaff, vetch and pelletised forage. There are currently around 20,000 fodder producers on 46,000 properties across Australia, although not all of these are specialist producers.

Annual hay production ranges between 4,900,000 and 7,600,000 metric tonnes (mt) per annum with demand consistently outstripping supply. In 2006–07 production is likely to be around 4,000,000 mt. Around 2 million tonnes of silage is produced each year.

Fodder production is concentrated in Victoria (45%) and NSW (18%). Western Australia and South Australia (each 11%) are the major exporting states. Production data is limited as there is no formal production levy and around 30–35% of the hay and silage produced is traded off-farm. Indications are that production has been significantly affected by the drought and while this has brought an upward trend in prices and extended the range of fodder types sold, it has impacted heavily on research and development funding which is currently provided as a voluntary contribution based on production volumes. GVP of production averages around $1.1 billion per year and has grown by 50% over the past 10 years.

The domestic market accounts for around 85% of consumption with the largest users comprising the horse, dairy and beef feedlot industries. The industry peak body, the Australian Fodder Industry Association (AFIA) forecasts an increase in demand for fodder of between 25 and 30% to 2010. The industry is proactive in its support for research into improved technology to support productivity. Opportunities for product enhancement through analysis and standardisation of hay and silage products are very good. These are currently being addressed through RIRDC projects. The industry is heavily reliant on the export industry and has focused strongly on addressing market requirements, establishing new markets and developing a high quality product targeted at specific markets.

From 2001–02 to 2005–06 Australia imported 308 tonnes of fodder valued at $538,000. 79 tonnes were imported in 2005–06. Imports have trended downward over the past five years, however the impact of drought has caused short term increase in volumes imported.

In 2005–06 Australia exported 725,000 tonnes of fodder valued at $203 million. From 2001–02 to 2005–06 Australia exported 3.26 million tonnes of fodder valued at $876 million. The Asian export market now consumes around 750,000 tonnes of Australian fodder each year with the animal feeds industry in East Asia estimated to be valued at $US10 billion and growing. Japan is the greatest importer of hay and chaff from Australia with expanding markets in the Middle East, Korea and Taiwan. In 2005–06, Japan imported over 625,000 tonnes of Australian hay and chaff – comprising over 73% of the Australian fodder crops export market and valued at over $170 million to the Australian economy. 80% of non lucerne hay exports go to Japan as oaten hay.

The Fodder R&D Program has had a confluence of critical issues to address that have had a strong negative impact on the program budget for 2006–07.

Hay is being sold into the Japanese market at historically high US dollar prices and purchasers are buying greater volumes of wheat and oat hay. However, the small volumes available to exporters due to high domestic demand and unfavourable exchange rates are leading to a tough environment for hay and straw exporters in 2006–07 and for the research program which is dependant on high export volumes for income.

In July 2006, fodder exporters agreed to replace the existing voluntary fodder research levy (50 cents per tonne contributed by growers and collected by exporters on hay and straw delivered for export) by levies paid by all exporters on shipments at the rates of 50 cents per tonne on hay exported, and 25 cents per tonne on straw exported. This proposal was to be implemented during the 2006–07 harvest and was expected to generate additional income for the Program. It is hoped that this will occur in 2007-08 as drought conditions have impacted on income received via the exporter levy.

Key outputs of the program include further development of oat varieties for hay production through the National Oat Breeding Program, and the development of improved vetch varieties for hay and silage using new Vicia species with genetic versatility. A review of disease constraints to oaten hay production has led to the development of a priority list of the important diseases of oaten hay for the major production areas and an assessment of producer capacity to identify and manage these. This study has clearly demonstrated the need for further training for producers in identification of disease symptoms.

Key long term R&D strategies

Note: An asterisk (*) indicates that the Corporation is still to finalise amendments to the project.
 

Fodder Crops Budget Statement for 2007–08

Research Manager
Ms Annette Sugden
Ph: 02 6271 6497
Fax: 02 6272 5877
annette.sugden@rirdc.gov.au

Objective:
To facilitate the growth of a profitable and sustainable pasture seeds industry based on a reputation for the reliable supply, domestically and internationally, of a range of pasture species.

Strategic plan and Internet accessibility:
This Program has its own five-year R&D plan and more information on the Program available online at http://www.rirdc.gov.au/programs/ps.html

Source of funds:
This program is funded by statutory levies paid by industry participants. This levy revenue is matched on a dollar-for-dollar basis by the Commonwealth up to 0.5 percent of the gross value of farm production.

Total R&D expenditure budget   $495,000

Background
The Pasture Seeds R&D Program covers levied temperate pasture seeds of which the major crops comprise lucerne, medicago species, clover and sub-clover seeds. Leviable pasture seed production is concentrated in SA, Victoria and NSW however the majority of pasture seed growers are multi-commodity farmers and do not identify as seed growers in census and survey collections.

In 2004–05 Australia produced around 15,000 tonnes of certified seed – around 2.6% of all OECD seed produced. Around half this was pasture seed. The GVP of production of pastures and grasses harvested for seed in 2003–04 is estimated at $120.5 mill (ABS 2005). Production data is limited as the levy only covers a small proportion of seeds grown, there is little data collected for the industry, and farm based trading is common.

Trends suggest that the volume of Australian production has been significantly affected by drought conditions and that this trend is likely to increase for another one to two years due to lag effects of the drought on production. The current high fodder prices are also impacting on seed production as growers are cutting their crops before seed set to take advantage of good returns.

Opportunities for productivity and product enhancements through improvements to technology, analysis and standardisation of seed products, and crop management are moderate to good and the industry has focused strongly on addressing market requirements, establishing new markets and developing a high quality product.

In 2005–06 Australia imported 7,000 tonnes of pasture seeds valued at $16.5 million. Imports have trended downward over the past five years, however the impact of drought has caused an interim spike in volumes imported. In this period, the major pasture seeds imported have been rye grass, fescue and clover seed. Most imported seeds arrived from New Zealand (4,700 tonnes worth $10 million) and the United States of America (2,000 tonnes worth $5.5 million). The value of imports of pasture seeds within this program’s scope from 2001–02 to 2005–06 was $80 million.

The export value of certified pasture seeds has been steadily climbing since 2001–02 from $50.3 million to $60.5 million in 2005–06 – a growth rate of approximately 17%. In 2005–06 Australia exported 14,400 tonnes of pasture seeds valued at $60.5 million. This compares with a five-year average for the period 2001–02 to 2005–06 of 16,500 tonnes and a total value of $270,731 million. The USA is the biggest importer of Australian pasture seeds, namely lucerne (alfalfa), worth $16.4 million to the Australian economy in 2005–06 and worth about 30 % of the Australian pasture seeds export market. There are also expanding markets in China, Argentina, Brazil, United Arab Emirates, Saudi Arabia, China, Korea and Germany. The majority of exports were clover and lucerne seed, providing 2,434 tonnes ($12.5 million) and 6,590 tonnes ($29 million) respectively to the export market.

Future growth of the industry is dependant upon maintaining high quality certified seeds, identifying new markets and targeting cropping to market needs.

The current levy encompasses only a small proportion of the industry and this impacts upon the level of funding that can be generated to support R&D. The R&D Advisory Committee have been working with key stakeholders seeking their assistance in negotiating an expansion to the range of leviable seeds. In addition, a change to current regulation for levy payment is expected to be passed in Parliament in early 2007 to expand the number of authorised levy collection agencies.

Key long term strategies

New projects being funded or under consideration in 2007–08 include:

Project No	Title	Researcher	Phone
000023	Improved harvesting and thrashing methods for medic and biserrula pods*	Leigh Ballard	08 9881 5711
000024	Agronomic support packages for raised bed lucerne seed production *	Luke Kirkby	0428 512 963
000027	Alternative harvest methods for subterranean clover seed and management of arrowleaf seed crops*	Belinda Hackney	02 6938 1858
000030	Development and assessment of leafcutter bee survival, management and reproduction in Southern Australia	Scott Campbell	0417 887 562
000032	Economic analysis and feasibility study of the Australian lucerne seed industry	Tom Yeatman	08 8842 6224

Note: An asterisk (*) indicates that the Corporation is still to finalise amendments to the project.

Pasture Seeds Budget Statement for 2007–08

Research Manager
Dr Laurence Denholm
Ph: 02 6365 5482
Fax: 02 6365 5560
denholml@bigpond.com

Objectives
To improve industry performance in four key areas where the industry has identified problems at both whole-of-industry and industry sector-specific levels, including: efficiency, profitability and sustainability of deer farm production; supply chain efficiency, quality management and value adding; market access and marketing arrangements; human capital formation, industry organisation and communications.

Strategic plan and internet accessibility
This program has its own five-year R&D plan, accessible in hardcopy and at http://www.rirdc.gov.au/programs/deer.html

Sources of funds
The Deer R&D Program is funded by statutory levies paid by industry participants. The levy is matched by the Commonwealth on a dollar for dollar basis up to 0.5 per cent of the gross value of farm production.

Total R&D expenditure budget   $414,500

Background
Production of venison and velvet antler in Australia is concentrated in Victoria, South Australia, NSW and Tasmania. The industry is characterised by a large number of small scale producers, many in mixed farming operations, although there are now a number of deer farms with more than 1,000 animals where deer farming is the sole enterprise. In 1997–98 there were 190,000 farmed deer in Australia and the national herd further expanded until the onset of the drought in 2002, but then contracted to the current estimate of 150,000 head. Red deer and red deer hybrids are the predominant farmed deer species because their larger carcass size reduces slaughter and processing costs, but there are also significant numbers of fallow deer.

The gross value of production (GVP) for 2005–06 is estimated at $3.362 million, compared with $4.785 million in 2004–05 and $7.466 million in 2003–04 (ABARE 2006).In 2000–01,1,680 tonnes of venison were produced – representing 50,000 animals slaughtered. In recent years there has been a decline in production, particularly in Queensland and Western Australia. Production has contracted in response to drought, reduced returns in domestic and export markets and problems with access to slaughter facilities. Over the last decade, prices for prime slaughter stock in the optimal carcase weight range varied from a low of $1.60 in 1999 to a high of $3.50 to $4 per kg hot carcase weight. in late 2006. Despite weaker market prices, between 2002 and 2006 the number of deer slaughtered annually increased, largely as a result of drought. The apparent increase in the number of female animals and ‘whole herds’ that were slaughtered over this period is a concern as it suggests the industry’s production capacity has been reduced.

Global prices for velvet antler were also depressed in historic terms over the last five years but rose to about $150/kg,in early 2007, a level that provides Australian farmers with a gross return above $150/DSE. Estimated velvet antler production in 2001–02 was 27.8 tonnes but has fallen since then. In 2006, second cut velvet re-growth sold for $75/kg, possibly indicating a major shift in the velvet market following scientific evidence of greater bioactivity in the growing antler tips.

Most commodities currently produced by the Australian deer industry are sold onto export markets – with venison exported predominantly to the European Union and South East Asia, and velvet exported to Korea, Hong Kong and China. Australia is currently a very small player on the international markets for deer products which are dominated by New Zealand.

The industry has gone through a number of cycles of expansion and contraction in the last three decades. The key challenge for the industry is to improve and sustain the profitability of deer production by balancing demand with supply as the industry grows its production base.

The industry believes it has the potential for real growth but this has been hindered by a commodity trading approach to deer production and product marketing. The industry is now giving priority to market development projects aimed at improving demand for its products and value-adding to ensure maximum returns to producers and processors..

Research in 2005 undertaken through a RIRDC funded project identified five key areas for industry success. The industry has taken a first step toward addressing these priorities through a program establishing Market-Focused Venison Supply Chain Alliances and has directed all its R&D funds towards this program as a short term measure to restructure the industry.

Major problems for the industry include the small number of deer processed, high slaughter costs and lack of access to slaughter facilities within a reasonable distance. One of the areas the research program is targetting is improved technologies in abattoir chilling, skinning and packaging operations to enhance industry production efficiency.

Individual producers and Alliances are now undertaking a range of venison value adding activities including making sausages, special cuts, roasts, pastramis and prosciuttos, pies and jerky using both primary and secondary cuts and the program is supporting research into development of frozen venison products. Improved shelf-life packaging technologies have been central to this new direction.

With appropriate R&D and support for technology transfer, further opportunities exist for value-adding venison and velvet. New research into the use of velvet antler for therapeutic application for animals will be a further focus for the program.

Key long term R&D strategies

Expected key outcome in 2007–08

Key Performance Indicators

Note: An asterisk (*) indicates that the Corporation is still to finalise amendments to the project.
 

Deer Budget Statement for 2007–08

Research Manager
Dr Peter McInnes
Ph: 08 8556 7331
Fax: 08 8556 7289
mcinnes2@comstech.com

Objectives
To accelerate the commercial development of the buffalo industry.

Strategic plan and internet accessibility
This program has its own five-year R&D plan, accessible in hardcopy and at http://www.rirdc.gov.au/programs/buffalo.html

Sources of funds
The Buffalo R&D Program is funded by statutory levies paid by industry participants. The levy is matched by the Commonwealth up to 0.5 per cent of the gross value of farm production.

Total R&D expenditure budget  $69,600

Background
A buffalo industry has been in existence in Australia for well over a century with hides the main export and live exports commencing in 1958.

The population of buffalo is concentrated in Northern Territory where there are around 15,000 domesticated buffalo. In 1992, a disease eradication program for brucellosis/tuberculosis reduced numbers significantly leaving only 40–50 buffalo. Since 1992 the industry has expanded with the establishment of many farmed buffalo enterprises in NT and some in all Australian states. A feral population of around 40,000 still exists in NT. Most states and the NT have an industry Council and the Australian Buffalo Industry Council was formed in 2000.

A levy of $5.33 per head at slaughter and for live exports provide the basis for the RIRDC R&D Program.

The importation of some Riverine buffalo to Australia in the 1990s has provided the opportunity for crossbreeding with the local swamp buffalo. Progeny from this breeding have faster growth rates and reach a quality tenderbuff carcase with well defined specifications at a young age. Crossbreeds, particularly with a high infusion of the Riverine breed, and purebred Riverine, are being milked for cheese and yoghurt products. The export of live buffalo has increased substantially in 2006–07 with most entering the meat trade in Asia

Key long term R&D strategies

Key Strategies for 2007–08

Note: An asterisk (*) indicates that the Corporation is still to finalise amendments to the project.

Buffalo Budget Statement for 2007–08

Last updated: July 2007  Copyright © RIRDC
http://www.rirdc.gov.au/aop07-08/aop3.html