Key Elements of the 1999–2000 Plan

When we commence 1999–2000 the Corporation will be managing more than 600 ongoing projects and this Plan will result in more than 150 new projects being contracted in 1999–2000.

These 750 projects are managed across four program areas and all are directed at achieving a more profitable, dynamic and sustainable rural sector.

This Corporation has the widest industry coverage of any research and development corporation and this Annual Operational Plan is, like our Five Year Strategic Plan and program framework, structured predominantly on an industry basis. Information on each sub-program is presented on pages  of this Plan. This is where the more detailed industry-specific information is presented, including a listing of new projects to be funded in 1999–2000. Key elements of this Plan are as follows:
 

Program 1: Prospective New Industries

1.1 New Plant Products

• Initiate research on bushfoods, olives and tropical fruits in line with agreed industry R&D needs and priorities.
• Commence new projects on pesticide Maximum Residue Limits (MRLs)s for culinary herbs, the field evaluation and multiplication of clonal teas, virus-free garlic production, coriander, walnut, market strategies for longan and rambutan, and an acacia species and Dorycnium as forage species.
• Initiate work on cocoa as a potential crop for northern Australia.
• Act on the findings of the market and technical feasibility study for non-wood fibres.
• Establish research on prospective broadacre crops.
• Continue the cashew breeding program and nutrition management strategies, and undertake further research into the biological control of major cashew pests.

1.2 New Animal Products

• Assess the feasibility of rabbit and hare industries in Australia.
• Develop market strategies for buffalo meat for the domestic trade.
• Complete assessment and development of compounded pellets for farmed crocodiles in place of feeding fresh meat products.

Program 2: Emerging New Industries

Budget: $6 094 909

The Joint Venture Agroforestry Program will also receive funds from the Land and Water Resources Research and Development Corporation, the Forest and Wood Products Research and Development Corporation, the Natural Heritage Trust and the Murray Darling Basin Commission.

2.1 Asian Foods

• Develop production guides for a range of newer Asian vegetables, including water chestnuts, lotus, hot chilli pepper, wasabi and mioga.
• Commercialise research outputs for Asian-style tempeh-based snack foods.

2.2 Agroforestry and Farm Forestry

• Commence a major collaborative project to develop species suitable for medium to low rainfall agroforestry in southern Australia.
• Assess the extent to which native hardwood farm forestry on cleared agricultural land can contribute to achieving biological conservation goals.
• Develop a whole farm and regional agroforestry decision-making system.
• Provide information to farm forestry groups on commercially important tree species and their wood properties and a handbook to assist species/provenance selection.
• Produce a farm-forestry site-selection manual.

2.3 Deer

• Identify new niche venison market opportunities in Europe, North America and Australia.
• Facilitate the adoption of an industry quality assurance program by producers, transporters and processors.

2.4 Essential Oils and Plant Extracts

• Assess the market opportunities in North America for Australian essential oils and plant extracts.
• Develop new projects on boronia, parsley, chamomile, and on the medicinal herb valerian.

2.5 Organic Produce

• Hold regional industry development seminars illustrating farmer/processor conversion from conventional farming to organic farming systems.
• Strengthen a training program to encourage greater awareness and adoption of organic farming systems and practices.
• Contribute to technical R&D sessions for an industry conference.

2.6 Rare Natural Animal Fibres

• Develop improved breeding methods for cashmere and mohair producing goats.
• Foster development of mohair products in Australia by cooperative activities with commercial interests.
• Strengthen producer adoption of clip preparation standards for Australian alpaca fibre.

2.7 Tea Tree Oil

• Further yield gains expected from the next stage of the tea tree breeding program.
• Assess the anti-inflammatory activity of tea tree oil and its components to provide strengthened market demand.
• Assess skin sensitivity to tea tree oil in vivo to provide firm proof that tea tree oil is a safe topical antimicrobial agent.

2.8 Wildflowers and Native Plants

• Continue evaluation and licensing of promising new wildflowers and foliage.
• Assure the effective flow of appropriately tailored information to growers.
• Start new work on evaluating the commercial potential of North Queensland wildflowers and foliages; the grafting of Eriostemon australasius to enable its cultivation, a potential new means of extending vase life; the selection of eucalyptus buds and flowers for export, and new forms of Boronia heterophylla and Scholtzia species.

Program 3: Established Industries

3.1 Chicken Meat

• Initiate a research program to develop alternative control measures for necrotic enteritis.
• Develop a strategy for improving the management of wastes from broiler chicken farms, with a particular emphasis on litter usage and disposal.
• Achieve an improved understanding of the source and epidemiology of the virulent Newcastle disease viruses associated with recent outbreaks in Australia.

3.2 Eggs

• Support the industry to use the results from the international benchmarking study completed in 1998–99.
• Provide a comparative assessment of all aspects of different egg productions systems.
• Improve the security and quality of feed grain supply.

3.3 Honeybee

• Finalise the development of bait hives to assist in preventing Apis cerana incursions.
• Support increased adoption of quality assurance programs by honey producers.
• Complete a hospital assessment of the efficacy of ‘active’ honeys against infections.

3.4 Rice

• Advance several new varieties to testing for future release.
• Develop an innovative ground rig-spraying mechanism as a substitute for aerial spraying.
• Assess rice blast fungicide development for Australia.

3.5 Horses

• Enhance the research and development expertise available to the Australian horse industry.
• Implement a strategy for an epidemiologically based project on developmental orthopaedic disease, involving the key breeding areas in Australia.
• Enhance collaborative research projects between institutions and between researchers and veterinary practitioners.

3.6 Fodder Crops

• Release several new fodder crop varieties.
• Finalise a more accurate screening test for monitoring Corynetoxin contamination of fodder so that the industry can integrate this into its quality assurance system.
• Produce a fodder industry production atlas that will provide a better picture of the structure of the industry.

3.7 Pasture Seeds

• Finalise a detailed industry cost study.
• Release several new legume varieties with good export potential.
• Develop international standards for disease testing in lucerne.

Program 4: Future Agricultural Systems

4.1 Global Competitiveness

• Produce a series of research reports on crucial issues, which will support the next World Trade Organisation (WTO) round of trade policy reform negotiations.
• Analyse a range of domestic impediments to the efficient development of agricultural industries, especially such things as the provision and pricing of economic infrastructure and the potential impact of occupational licensing.
• Analyse the reasons for the export-led growth and success of the Australian wine industry and especially the implications for other emerging industries.

4.2 Resilient Agricultural Systems

• Provide the R&D base to underpin the development of internationally acceptable accreditation systems for sustainable agricultural production and new and emerging agri-industry systems.
• Encourage the emergence of innovative production systems for food and fibre including the integration with other land uses of aquaculture, hydroponics, and the use of wild plant and animal resources particularly in the rangelands.
• Identify the constraints and risks imposed by pests, weeds and diseases and improve the methods used to control them.
• Review agriculture’s potential role as a provider of pharmaceuticals, nutraceuticals and industrial products.

4.3 Human Capital, Communications and Information Systems

• Assess the attitudinal factors that have an impact on farm business performance to establish how training and learning methodologies can be improved.
• Support a new Rural Women’s Award.
• Publish a second edition of the Farmer’s Guide to the Internet.
• Undertake a study of older farmers and retirement including the development, pilot and evaluation of a retirement planning education program for farmers.

The Corporation's Revenue and Expenditure for 1999–2000

The proposed expenditure in 1999–2000 is $24.68 million. In aggregate terms, the key expenditure areas are as follows:
 

Research and Development	$m	As % of total expendi-ture
Prospective New Industries	2.46	10
Emerging New Industries	6.09	25
Established Rural Industries	8.47	34
Future Agricultural Systems	3.59	15
Program Development	0.43	2
Research Coordination and Management	1.60	6
Communications and Consultation	0.30	1

Functional Support Areas	$m	As % of total expendi-ture
Corporate	0.53	2
Communications	0.33	1
Administration	0.88	4

 

Corporation's Financial Position

On a cash basis, the figures are as follows:
 

	RIRDC Core ($)	Sub-Accounts ($)	Consolidated ($)
Estimated  end June 1999	815 698	6 903 404	7 719 102
Forecasted  end June 2000	32 158	5 136 539	5 168 697

Where the Sub-Program is funded by statutory levies or significant external income, separate industry sub-accounts are held. Details begin on page. Nearly all of these sub-accounts hold reserves, which are forecast to be around $5.14 million at the end of June 2000. This is down from $6.90 million at the end of June 1999.

For RIRDC Core (the remainder), the reserves are negative in accrued terms and just positive in cash terms.

It will be tight but, in the view of the Board, the reserves set out in the above tables are sufficient for 1999–2000 operations given the risk profile of the Corporation. In making this judgment, Directors are aware that industry-funded reserves cannot be used to underpin the financial viability of the non-levy based accounts.

Program Evaluation

Consultations with Industry

• National Farmers’ Federation
• Australian Chicken Meat Federation Incorporated
• Australian Egg Industry Association
• Deer Industry Association of Australia
• Ricegrowers’ Association of Australia
• Australian Honey Bee Industry Council
• Australian Horse Industry Council.

In the case of the National Farmers’ Federation, consultations were on the total Plan and, in the case of the others, on those parts of the Plan that related directly to them.

Notification of Significant Events

During 1998–99 the Corporation upgraded and tested its IT systems for year 2000 compliance. The Corporation believes that the year 2000 will now not pose any significant technology problems for the Corporation.