2.1: Asian Foods  2.3: Cashews  2.4: Deer  2.6: Organic Produce  2.8: Tea Tree Oil

2.2: Agroforestry and Farm Forestry  2.5: Essential Oils and Plant Extracts  2.7: Rare Natural Animal Fibres  2.9: Wildflowers and Native Plants

Key sub-program strategies will:

• Foster research on Asian vegetable production and processing.
• Undertake market-focused product development (non-vegetable).
• Support generic research - including marketing, sociological and technical studies.

Background

The market for Australian grown Asian vegetables in many Asian countries is large. For instance, Japan imports $2.3 billion of fresh, frozen, preserved and dehydrated vegetables each year. There are off-season windows of opportunity in Australia for fresh products when prices are high and supply from competing Asian sources is low.

There is no coordinated proactive market development by the Australian industry. Conservative estimates predict that, given appropriate research and development, the current value of the Australian industry will double within three years. Foods other than vegetables, particularly processed foods, are popular and opportunities include sauces, ready-made meals, and possibly snacks. Domestically, with increases in the Asian-Australian population, Asian tourists in Australia and changes in eating habits of Australians, demand continues to grow at a substantial annual rate. This program was developed in close consultation with Australian producers and processors and the Asian community following extensive review.

Achievements for 1997-98

• Conducted a detailed study assessing the potential profitability and feasibility of production and export of major Asian vegetables from Australia.
• Released a report assessing the potential for production of a range of Asian food processed products from Australian produced ingredients.
• Commenced a national Asian Foods and Asian Vegetables Newsletter to improve the dissemination of the results from R&D projects and improve communication within the industry.
• Conducted meetings and workshops encouraging the development of collaboration groups for the bamboo and aquatic Asian vegetable industries.
• Reported on the results of leafy Asian vegetable production with recommendations for postharvest treatments and varietal recommendations in Victoria.

Strategies for 1998-99

Second stages for past research efforts in bamboo shoots, wasabi, and Japanese ginger are being supported. Consolidation of R&D efforts for an emerging aquatic vegetables industry group, especially water chestnuts and lotus root, has been developed. Major efforts to consolidate research for leafy Asian vegetables both in terms of Australia wide production and postharvest handling methods.

Expected key outcomes in 1998-99

• Report on the opportunities for Indian condiments and pickles in Australia.
• Assessment of the potential for a dried and pickled Asian vegetable industry for domestic, Japanese and other Asian markets.
• Summary of current information on postharvest handling methods for leafy Asian vegetables.

Sub-Program 2.2: Agroforestry and Farm Forestry

Key sub-program strategies will:

Strategies for the widespread adoption of agroforestry

• Establish R&D addressing market, economic, social, policy, resource and regional planning opportunities and constraints.
• Support the development of extension and educational tools and strategies.

• Develop more sustainable use of natural resources (soil, water, biodiversity) at regional, catchment and farm levels.
• Optimise the impact of trees on crop, pasture and animal productivity.
• Optimise returns from tree products.
• Investigate tree /crop /pasture /animal interactions to develop design principles to meet commercial and environmental objectives.

Background

Agroforestry has the potential to improve agricultural productivity, diversify and increase farm income, conserve land, maintain biodiversity and contribute to the national timber supply. Given appropriate research development and extension, agroforestry could become a widespread, profitable and sustainable system of land use.

A Joint Venture Agroforestry Program was established in 1993 with three partners: the Rural Industries Research and Development Corporation (RIRDC), the Land and Water Resources Research and Development Corporation (LWRRDC) and the Forest and Wood Products Research and Development Corporation (FWPRDC).

Funding was also provided for some activities by the Murray Darling Basin Commission (MDBC) the Grains Research and Development Corporation and the Department of Primary Industries and Energy.

The priorities for the Program have been revised following significant new developments in funding sources and a mid-term review conducted by AACM International.

In February 1998 the Minister for Primary Industries and Energy advised that $4 million, sourced from the Natural Heritage Trust, would be set aside for national farm forestry research and development and invited the Management Committee of the Joint Venture Agroforestry Program to determine a specific funding program on the basis of a set of priorities established by the Minister.
 

• $2.5 million will be available to assess new tree-crop products and industries with an emphasis on native species. The aims of this component are to support development of commercial farm forestry as an integral part of sustainable agricultural systems, enhance biodiversity and protect the natural resource base. Of particular relevance will be areas where farm forestry uptake has so far been limited, for example in mid to lower rainfall areas. These funds will be managed by RIRDC.
• $1.5 million will focus on timber production and processing elements of the Farm Forestry Program and the sustainable management and use of private native forests and woodlands. These funds will be managed by the FWPRDC.

The MDBC has contributed $150,000 to the Joint Venture in 1997-98 and will be contributing $275,000 in each of the subsequent two years.

Achievements for 1997-98

Market, economic, policy and social research

• Developed an economic model demonstrating substantial benefits to a region developing new farm forestry industry – generating significant employment and flow-on to other industries.
• Developed and disseminated to stakeholders the principles and practices of effective market links between farm foresters and the forest processing industry.
• Disseminated a review of progress by industry, government and R&D Corporations towards removing impediments to farm forestry development.

Sustainable use of natural resources

• Released comprehensive, up-to-date information on tree water use and its relevance to species selection for agroforestry.
• Published interim guidelines for revegetating areas with shallow, saline watertables.
• Refined a physically based catchment model for predicting the effect of salt build-up in the root zone of trees planted over shallow watertables.
• Developed a new series of publications titled "Water and Salinity Issues in Agroforestry".

Optimising returns from tree products

• Produced a book – "Commercial Timber Species for Sub-tropical Australia".
• Released a report on tree performance databases and selection systems.
• Assessed four cheaper (preliminary) options for replacing conventional fencing.
• Assessed and disseminated information on low rainfall carob agroforestry.
• The growth of several high value rainforest tree species was assessed for South East Queensland.

Cost effective agroforestry systems to meet commercial and environmental objectives

• Published a review of scientific principles of alley farming contributing to development research priorities.
• Identified for Northern Australia, several timber species promoting pasture production and quality, which provide dry season fodder.

General

• Developed a communications strategy for the program.
• Published the outcomes of a priority setting project which will contribute to development of the Five Year Plan.
• Produced several advisory publications in conjunction with Greening Australia:
• "Putting Back the Bush"
• "Making Farm Trees Pay"
• "A Haven from Storm and Drought"
• "Farm Forestry Success Stories"
• Distributed the second and third program newsletters to over 2,000 stakeholders respectively.

Strategies for 1998-99

A specific call for new project proposals in April/May 1998 will elicit new projects particularly relevant to NHT priorities identified above.

Commercial opportunities for growing a range of tree species in low rainfall areas of Australia will be assessed. Additional priority will also be given to agroforestry systems in northern Australian.

The Windbreaks sub-program will be finalised and results developed through communications tools for use by farmers.

The latest JVAP research results on use of trees to address salinity problems will be synthesised into guidelines for practitioners.

Expected key outcomes in 1998-99

• Development of a farm forestry market information system.
• Development of on-farm decision support tools for agroforestry.
• Research the effects of salt on wood and fibre formation in eucalypts.
• Analysis of information on the impact of windbreaks on crop and pasture productivity.
• Determination of the feasibility and best options for small scale farm harvesting of timber.
• Assessment of commercial opportunities for growing a range of tree species in low rainfall areas of Australia.
• Development of a National Catchment classification system to allow extrapolation of research findings to other sites.

Sub-Program 2.3: Cashews
 

Key sub-program strategies will:

• Develop varieties capable of yielding 5 tonnes per hectare through varietal selection and breeding.
• Achieve environmentally acceptable and cost-efficient pest and disease control and plantation management strategies.
• Explore opportunities for economic processing and marketing of cashews for the world market.

Background

A concerted R&D program in recent years has aimed to provide the platform for future development of a viable cashew industry. It is likely that Australia now has the most diverse and comprehensive genetic collection of cashew material in the world.

Furthermore, breeding efforts and production research arguably put Australia at the forefront in terms of establishing an internationally competitive industry based on the marketing of high quality fresh nuts and a range of value-added, processed products.

Achievements for 1997-98

• Developed a manual on cashew production for potential investors and growers.
• Identified 49 high yielding hybrids through breeding research.
• Identified green ants as a dominant predatory species in cashew plantations – providing a useful species around which to establish an integrated pest management program.

Strategies for 1998-99

The breeding program, R&D to develop nutrition management strategies, and research into biological control of major pests utilising green ants, will continue.

The manual on cashew production will be used as a communications tool for a communications strategy to attract new growers and investors to the industry.

Expected key outcomes in 1998-99

• Continuation of the breeding program.
• Provision of guidelines on the maximum levels of fertilisers that can be applied to Australian soils highly suitable for cashew growing.
• Development of a phenological model on which to base plantation management strategies.
• Development of a calibration system to guide nitrogen fertilisation.
• Provision of preliminary guidelines for an integrated pest management system for cashew plantations utilising green ants.

Sub-Program 2.4: Deer
 

Key sub-program strategies will:

• Focus on increasing deer numbers by unlocking farm level production constraints, bearing in mind that the industry will only continue its development as a mainstream enterprise option for Australian agriculture if the R&D program is linked to the value chain, be it from pasture to plate or from pasture to consumer.
• Continue to guide the R&D program by it’s Five Year Plan which identifies eight strategic areas to move forward. These are:
• Increasing supply of deer
• Improving slaughtering and meat processing efficiencies
• Enhancing information transfer
• Producing high quality deer products
• Identifying and developing non-chemical means of harvesting velvet
• Improving production efficiency
• Developing value-added products
• Developing current markets more effectively and identifying new markets
• Place extra focus on developing current markets and identifying new markets because of the downturn in venison and velvet prices caused by the Asian crisis.

Background

The Australian deer industry has an estimated gross value of production of around $6 million, farmgate. The majority of the herd continues to be in NSW and Victoria. There is expansion in Western Australia and Queensland, albeit from a small base. Fallow and Red deer make up more than 90 percent of the national herd.

Australian venison production is around 1,000 tonnes with around 80 percent exported. Velvet production/harvesting has increased in recent years with about 23 tonnes, being harvested in 1997-98. Over 75 percent continues to be marketed by the Australian Velvet Pools Pty Ltd. A small but increasing quantity of velvet is processed in Australia before sale on domestic or international markets.

Prices for deer product declined in 1997-98, primarily because of the downturn in Asian economies. All of Australia’s velvet exports continue to go to North Asian markets. For venison, selling prices for prime stock declined from around $5/kg to a low of around $2.65/kg during the currency crisis in Asia, but averaged around $4/kg carcase weight in 1997-98. Prices for velvet fell sharply in 1997-98 with the average selling price in the velvet pool around $25 per kg. This price is down from $60 per kg in 1996-97.

By way of comparison, the New Zealand deer herd is around 1.5 million with slaughterings of around 300,000 animals in 1997-98.

Achievements for 1997-98

• Published five industry manuals by the Program Funded Industry Development Manager. This person facilitates information transfer and the following five manuals were produced in 1997-98:
• Vol 1: Investment and Economies
• Vol 2: Fencing and Handling Yards
• Vol 3: Origins, Classification and Choice of Deer Species
• Vol 4: Deer Health
• Vol 5: Deer (Velvet Antler)
• Finalised new arrangements for the Deer Industry Research and Development Newsletter
• Better defined alternative practices to minimise the meat quality defect blood splash, otherwise known as Ecchymosis.
• Published a research project establishing the feasibility of immunocastration vaccines to control rutting behaviour and so prevent weight loss.
• Developed stronger linkages between Chinese users of velvet and Australian producers and a better understanding of velvet market developments.
• Clarified the microbial status of deer velvet.

Strategies for 1998-99

The industry is seeking to expand the Australian deer population by 50 percent over the next four years. Enhanced communications and information transfer will continue to be vital elements in achieving this.

The investment in the Industry Development Manager is taking 35 percent of the annual R&D budget and will be our single most important investment in 1998-99. The other priority areas will be deer nutrition and expanding market opportunities.

Expected key outcomes in 1998-99

• Further develop the office of the Industry Development Manager as the key reference point for information transfer within the industry. Active encouragement of financial institutions to objectively assess the deer industry.
• Continue focussing on research related initiatives to unlock farm level production constraints, with particular reference to nutrition.
• Encourage producers to become accredited under the Deer Industry Quality Assurance Scheme.
• Commencement of a research project to improve velvet harvesting methods.
• Identification of new market niches for venison exports to Europe.

Sub-Program 2.5: Essential Oils and Plant Extracts
 

 Key sub-program strategies will:

• Develop new and improved varieties and species for Australian conditions and international markets.
• Provide agronomic systems for the profitable and sustainable production of high quality oils and extracts.
• Devise extraction technology to increase yields and/or secure specified product characteristics required by markets and registration authorities.

Background

There is growing interest in essential oils in Australia. The current value of production (excluding tea tree oil but including the refining of imported eucalyptus oils) is $6-7 million farmgate and $20-25 million wholesale/retail a year. The eucalypt and tea tree oil segments aside, the principal foci for essential oil production are Tasmania and Victoria.

Essential oils are largely used in the food flavouring and fragrance industries but their use in aromatherapy and other health care areas is growing.

The recent change in the ownership of Essential Oils of Tasmania and increased planting of peppermint in Victoria are welcome fillips to the industry.

The success of the pyrethrum, poppy, and hop industries, with a combined farmgate GVP of some $27 million, suggests that there are significant opportunities for producing plant extracts from both native and exotic species.

There is strong market demand for locally produced medicinal herbs. At present, only about one-third of the 250 tonnes used each year is supplied from Australia. Several native plants are used for the production of substances such as scopolamine, Esculin, Castanospermine and Methyl cinnamate, within the fine chemicals sector.

Australia has a comparative advantage as a reliable supplier of clean, good quality, unique oils and extracts based on the use of high technology in both production and extraction.

Achievements for 1997-98

Published an industry-generated newsletter under the aegis of the Essential Oil Producers Association of Australia.

Strengthened peppermint R&D, through new projects and improved interaction between researchers in Tasmania and Victoria.

Held a workshop for the medicinal herbs and plant extracts industries providing a clearer picture of the future for this burgeoning sector and enabled RIRDC’s R&D plan for these industries to be amplified. It also provided guidance as to which herbs and plant extracts are in currently in demand.

Initiated new projects on the medicinal herbs Echinacea and skullcap.

New projects will be started on market opportunities for essential oils and plant extracts, and cytotoxic alkaloids.

Support will be renewed for double-harvesting of peppermint, anti-sprouting agents from dill, pesticide MRLs, boronia, Tasmannia lanceolata and ginseng.

Expected key outcomes in 1998-99

• A report on untapped market prospects for Australian essential oils and plant extracts.
• An evaluation of the economic feasibility of growing scotch spearmint.
• A report on the potential of novel extraction and formulation technologies for Australian essential oils and plant extracts.
• A report on how best to maximise the market and pharmaceutical quality of Australian-grown Echinacea.

Sub-Program 2.6: Organic Produce
 

Key sub-program strategies will:

• Promote consistency in policy development across the spectrum of organic produce.
• Undertake development activities enhancing organic produce consumption.
• Evaluate and develop export market opportunities.
• Coordinate and disseminate the results of existing R&D in the organic industry.

Background

Consumers are increasingly aware of the quality and safety of food and fabrics they consume. At the heart of this worldwide trend is a desire to consume products, especially foods, that are safe, produced from environmentally sustainable farming systems, and ethically acceptable. In growing numbers, consumers are seeking organically grown products in response to this concern.

The Australian organic industry has around 1300 certified/registered members collectively marketing production estimated to be worth approximately $110 million annually. Members come from all sectors of the value chain – growers, processors and manufacturers, wholesalers, retailers, and consumers – across all states. Six organisations are currently registered with AQIS to inspect and certify organic farming and processing systems. More will follow.

Rising domestic and overseas demand for Australian organic products is prompting a greater number of traditional farmers to consider and adopt organic farming systems. Typically the attraction is either improved market access and/or higher prices from niche markets.

Achievements for 1997-98

• Developed and published the Australian Organic Industry Development Plan.
• Formed a national peak body for the organic industry.
• Formed an organic industry R&D advisory committee.
• Completed a draft R&D Plan for the industry.
• Initiated new products.

Strategies for 1998-99

The Industry intends to bed down the new peak body and R&D organisations formed in 1997-98. This will involve completion of the R&D Plan and dissemination to researchers and other stakeholders, creation of appropriate communication structures via newsletters, etc to ensure R&D activities are disseminated widely, and scheduling of a number of industry workshops and fora to assist industry development.

Specific R&D projects will be initiated according to R&D priorities identified in the new R&D Plan.

Expected key outcomes in 1998-99

• Completion of the Organic R&D Plan and dissemination to industry.
• Establishment of a national organic industry R&D Newsletter.
• Consultation and collaboration with other R&D Corporations and agencies regarding joint organic/sustainable farming systems R&D projects of mutual benefit.
• Design and implementation of an industry training and awareness program to encourage greater awareness and adoption of organic farming systems.
• Design and implementation of industry market development and promotions program.

Sub-Program 2.7: Rare Natural Animal Fibres
 

Key sub-program strategies will:

• Address major strategies and targets published in the R&D Plan 1998-2003.
• Increase productivity on-farm, particularly from goats producing high levels of commercial fibre.
• Identify and research fibre properties required by processors to produce yarn, fabric and garments demanded further along the value-added chain.
• Continue support for blending R&D between rare fibres and traditional fibres such as wool and cotton.
• Disseminate results and measure impact of some earlier publications from the sub-program.

Background

The program can incorporate cashmere, mohair, alpaca fibre and camel hair projects. To date the R&D has been limited to mohair and cashmere since these industries fund R&D via means of levies on fibre sales. Other animal rare fibres are also being considered for funding.

World prices for cashmere and mohair fibres have been relatively buoyant during 1997 with some difficulty of selling some "lines" due to a fall in demand. Australian production of both mohair and cashmere has declined in recent years. On a world basis Australian cashmere production remains less than 1 percent of world production and the corresponding figure for mohair is 2 percent. Only by raising the efficiency of production, and producing what is required by processors, will productivity and net returns increase.

Achievements for 1997-98

• Formulated a five year R&D Plan (1998-2003) in partnership with the various mohair, cashmere and alpaca associations and RIRDC. The Corporation’s advisory committee for the sub-program played a prominent role in contributing to the Plan.
• Continued R&D at the University of NSW on blending cashmere or mohair fibre with other fibres and evaluated the value added products.
• Progressed in using an innovative early stage processing technique to convert mohair and alpaca from scoured fibre to finished yarn. The process develops products equivalent to that normally made when conventional worsted carding is used. Attempts made to develop a new approach in dehairing rare natural fibres were of limited value partly due to unavailability of required equipment and insufficient detailing in planning and project assessment.

Strategies for 1998-99

Future strategies for funding in the sub-program will be aligned to the R&D Plan. In many instances a pro-active approach will be necessary. Briefs of projects are being prepared and tenders invited. In addition projects addressing priorities will be invited in the normal passive annual advertising for RIRDC Proposals. Consideration will be given to the funding of a reproduction project in alpacas.

Close monitoring of current projects will occur and inputs from members of the RIRDC Advisory Committee will be used in this context as appropriate.

Expected key outcomes in 1998-99

• Assessment of Australian marketing options for mohair.
• Evaluation of the impact and adoption of economic analysis of previously published reports for mohair and cashmere production
• Assessment of production performance of the initial results of utilisation of Boer goats crossed with fibre and dairy goats.
• Improvement in the value and adoption of the MOPLAN breeding system.
• Identification of cashmere producers interested in elite breeding schemes and an evaluation of their interest and ability to network with other parts of the industry
• Assessment of how present R&D results in mohair blending can be taken up by Australian commercial fabric produces

Sub-Program 2.8: Tea Tree Oil  
 

Key sub-program strategies will:

• Develop efficacy and safety data packages to support the registration of tea tree oil for use as a medical product.
• Select or develop high yielding varieties of tea tree with good oil quality.
• Develop improved and sustainable crop management procedures, including the control of weeds and pests.
• Improve the knowledge base and skills within the industry on the plantation management of tea tree oil.

Background

Tea tree (Melaleuca alternifolia) is native to the north coast of New South Wales. Its oil has gained widespread therapeutic use for fungal and microbial infections but is not yet registered for use by the medical profession.

The current annual production of tea tree oil in Australia is about 350 tonnes, having a farmgate value of around $16 million. Because of recent plantings in northern NSW and in North Queensland, it is likely that supply will exceed market demand, at least in the short-term, and hence depress prices. Current hopes for continued and increased market demand are largely based on acceptance of tea tree oil by the US Food and Drug Authority for first aid and health care.

Achievements for 1997-98

• Published an industry newsletter reporting on improvements in productivity due to breeding; new findings related to pest control and residue elimination and other key issues.
• Released the following new reports:
• Improving tea tree yield and quality through breeding and selection
• Why cineole is not detrimental to tea tree oil
• Weed control alternatives in tea tree plantations
• Development of the North Queensland tea tree industry
• Completed a project firmly establishing that tea tree oil has significant antimicrobial activity providing the industry with a firm basis for the next step in the promotion of tea tree oil as a bona fide topical antibiotic.

Strategies for 1998-99

Continuation of the breeding program. Two projects focussing on efficacy will also continue:

• hospital testing of tea tree oil to control MRSA ("Golden Staph")
• Investigation of the anti-viral activity of tea tree oil

Expected key outcomes in 1998-99

• Clinical trials of skin sensitivity testing.
• Preparation of the first seedlings from improved seed orchard seed.
• Clinical trials of tea tree oil as a topical decolonisation solution for adult inpatients with methicillin-resistant Staphylococcus aureus.

Sub-Program 2.9: Wildflowers and Native Plants
 

Key sub-program strategies will:

• Define and develop new markets.
• Monitor, maintain and expand existing markets.
• Identify and develop new fresh products.
• Identify and develop novel dried and preserved products.
• Enhance the ability of Australian flower exporters to deliver quality products on time.
• Extend continuity of supply.
• Improve production efficiency.
• Improve the chain of confidence within the industry.

Background

Wildflowers are now cultivated in all states, but Western Australia still accounts for about half of Australia's annual wildflower production of around $30 million (farmgate). The relative importance of bushpicked flowers is declining, even in WA, and now represents only about 16 percent of the total value of wildflower production.

In 1995-96, exports of wildflowers and native plants amounted to about $30 million. The key commercial wildflowers are Geraldton wax, kangaroo paw, Thryptomene, and species of Banksia, Leucadendron and Protea. The major markets are Japan, the USA, Germany and the Netherlands.

Achievements for 1997-98

• Continued commercial field evaluation of new and improved wildflowers such as rice flower, Baeckea species, and flannel flower and progressed arrangements for the commercialisation of the rice flower Redlands Sandra.
• Published seven, industry-friendly, Short Reports and a revised version of the RIRDC Wildflower Newsletter and disseminated them to industry organisations and interested parties.
• Completed a Wattle Production Manual. Test marketing of wattle blossom in Japan has indicated that some Australian-grown wattles are favoured over those currently in France, Italy and Japan.
• Achieved support for Ausindustry for a Business Plan and Feasibility Study for a novel flower and foliage preservation process.
• The Flower Export Council of Australia completed well-received studies of the Japanese, Dutch and British flower markets were aimed at facilitating entry of Australian exporters into those markets.
• Completed projects on several species of West Australian wildflowers and on flannel flower and koala fern from Eastern Australia, helping focus further development and testing of the most attractive and productive forms for use as cutflowers and foliage. Arranged for grower testing of two forms of yellow bells (Geleznowia) showing promise as cutflowers and/or pot plants.

Strategies for 1998-99

Efforts to establish a more specifically wildflower-orientated R&D levy will continue in spite of the failure of a national floricultural levy to supported by the flower industry as a whole.

Emphasis will continue to be given to improving the flow of research findings to growers via publications, workshops and the field evaluation and licensing of promising new wildflowers and foliages.

New research will be undertaken on Leucadendron species, on terminal flowering forms of Grevillea on Quality Management, and on improved fumigation technology. Support will also be provided for a major industry workshop.

Expected key outcomes for 1998-99

• Broadening of the range of new wildflowers under grower evaluation or subject to commercialisation agreements.
• More grower-friendly Short Reports on completed R&D, including that on smoke treatments to enhance germination of normally recalcitrant species.