RIRDC Completed Projects in 1999-2000 & Research in Progress as at June 2000

4.1 GLOBAL COMPETITIVENESS RESEARCH  IN  PROGRES
PROJECT No	PROJECT TITLE	RESEARCHER	PHONE	ORGANISATION

New Market Opportunities for the Food Sector
 

DFT-1A	Asia's Food and Agribusiness Revolution Continues: New Opportunities in a Resurgent Asia (Subsistence to Supermarket II)	Mr Graeme Thomson	(02) 6261 2545	Department of Foreign Affairs and Trade
UQ-62A	Incongruity between perceptions and behaviours in agri-food marketing: Are perceptions alone a valid basis for policy formulation and research investment?	Dr Ray Collins	(07) 5460 1328	The University of Queensland

Domestic Impediments to Industry Performance
 

BLC-2A	Study of regulatory cost methodologies for rural utility pricing and a guide to the utility regulatory process for rural Australia	Mr Bob Lim	(02) 9957 3552	Bob Lim & Company Ltd
ACI-5A	Occupational licensing: impact on Australian agriculture	Mr Greg Cutbush	(02) 6249 8055	ACIL Consulting Pty Ltd

Trade Policy Reform
 

ABA-9A	Key domestic support issues for the next WTO negotiations	Mr Ivan Roberts	(02) 6272 2239	Australian Bureau of Agricultural and Resource Economics
ANU-36A	Issues, options and strategies for improving Japanese agricultural trade policies	Dr Ray Trewin	(02) 6249 0134	Australian National University
ABA-11A	Export subsidy measures: important considerations for the WTO agricultural negotiations	Mr Ivan Roberts	(02) 6272 2239	Australian Bureau of Agricultural and Resource Economics
CIE-10A	The political economy challenge of agricultural trade reform	Dr Andrew Stoeckel	(02) 6248 6699	Centre for International Economics

Markets for Agricultural Products
 

US-92A

The potential impact on agricultural producers of responses to genetically modified products

Dr Kate Owen

(02) 9351 7368

The University of Sydney

Supply Chain Linkages
 

DAQ-263a	Social and cultural barriers to developing trust within demand chains	Mr Hayden Hodges	(07) 3239 3350	Dept of Primary Industries (Qld)
UQ-89A	Unlocking successful new rural industries: is supply chain management the key?	Dr Ray Collins	(07) 5460 1328	The University of Queensland
IMS-2A	International trends in the structure of agricultural cooperatives	Mr John O’Connor	(03) 9629 6287	Industry Management Services

Policy and Institutional Analysis
 

CIE-7A

Agricultural implications from knowledge replacing land as the scarce factor

Mr Brent Borrell

(02) 6248 6699

Centre for International Economics

New Market Opportunities for the Food Sector

Project Title	Asia's Food and Agribusiness Revolution Continues: New Opportunities in a Resurgent Asia (Subsistence to Supermarket II)
RIRDC Project No:	DFT-1A
Start Date:	06/07/98
Finish Date:	15/12/00
Researcher:	Mr Graeme Thomson
Organisation:	Department of Foreign Affairs and Trade Trade Negotiations and Organisations Division RG Casey Bldg John McEwen Crescent BARTON ACT 0221
Phone:	(02) 6261-2545
Fax:	(02) 6261-1858
Email:	graeme.thomson@dfat.gov.au
Objective	The principle purpose of the production and dissemination of the report will be to convey clear and useful information, analysis and guidance for Australian companies, agribusiness, farmers, exporters and investors, together with Australian policy-makers, about the continuing major changes underway in the pattern of Asian agrifood demand and supply and, in particular, about the agrifood supply opportunities in Asia over the coming decade or so, ways of better accessing Asian markets and problems to be overcome. The report will be a single-volume accessible resource and guide to the Asian agrifood markets, written in clear, straightforward language and presented in a user-friendly layout. As a public good, the report will be sold at a moderate price (c$40) affordable for small and medium-sized businesses and primary producers.
Current Progress	Key aspects of current progress: · Asian agrifood demand trends 2000-2010 modelling consultancy being undertaken jointly by team from Australian National University, Canberra, and International Food Policy Research Institute (IFPRI), Washington, using IFPRI IMPACT demand-based model; terms of reference expanded to include addition to IFPRI model of three separate agrifood categories of sugra, fruit and vegetables, to add to existing 17 agrifood categories; workshop held in Canberra, April 2000; first draft report due in May 2000. · Six consultancies plus DFAT work well underway putting together profiles of leading Asian agrifood companies from Japan, China/HK, ROK, Taiwan, Singapore, Malaysia, Thailand, Indonesia, Philippines, Brunei, India, Sri Lanka, and possibly others as time and project budget allows (c500 profiles); c200 draft profiles received for which detailed comments provided so far. · About half of DFAT first drafts completed of profiles of leading 100 North American and European agrifood MNCs.  · Drafting of chapters underway for final report.

Project Title	Incongruity between perceptions and behaviours in agri-food marketing: Are perceptions alone a valid basis for policy formulation and research investment?
RIRDC Project No:	UQ-62A
Start Date:	1/02/97
Finish Date:	31/07/00
Researcher:	Dr. Ray Collins
Organisation:	The University of Queensland School of Natural and Rural Systems Management GATTON COLLEGE QLD 4345
Phone:	(07) 5460 1328
Fax:	(07) 5460 1324
Email:	rcollins@uqg.uq.edu.au
Objective	Our objective is to develop a methodology to test the theory that in marketing Australian agri-food products to Asian customers, changing people's perceptions (the usual target of market research and promotion) may or may not change their actual behaviour (the desired outcome of promotion). Incongruity (misalignment) between perceptions and behaviours may indicate the need to change traditional ways of thinking about how marketing policy is formulated and how market research is focused. Specifically, we aim to case study two horticultural products to identify the degree of congruence between perceptions and behaviours relating to product quality, service and value for money along the marketing chain from Australian grower to Asian consumer.
Current Progress	This project is in the writing-up phase. Over the last three years, more than 1000 face to face consumer interviews at point of sale in Malaysian supermarkets have been completed. All major importers of apples and broccoli in Malaysia have been interviewed twice or three times and major Australian exporters of apples and broccoli have been interviewed at least once. Literature on international marketing, supply chain management, and consumer behaviour has been reviewed. Data have been analysed using qualitative (content analysis) and quantitative (pattern recognition mapping) tools. Results indicate that consumers’ needs are not entirely being met, even though importers profess an intimate knowledge of these needs. Both exporters and retailers rely on importers for information upon which their decisions are made, thus the supply chain can be shown to be underperforming on a number of counts. Growth in consumption of Australian product in Malaysian markets tends to mask the underperformance of the chain.

Domestic Impediments to Industry Performance




Project Title	Study of regulatory cost methodologies for rural utility pricing and a guide to the utility regulatory process for rural Australia
RIRDC Project No:	BLC-2A
Start Date:	1/02/00
Finish Date:	31/12/00
Researcher:	Mr. Bob Lim
Organisation:	Bob Lim & Company Ltd c/- Management Frontiers Level 10, 118 Alfred Street MILSONS POINT NSW 2061
Phone:	(02) 9957 3552
Fax:	(02) 9959 3461
Email:	boblimco@ozemail.com.au
Objective	The project will produce an issues paper higlighting critical factors which will assist rural interest in the Year 2000 National Competition Policy review and ongoing regulatory reviews. It will also develop a report which crystallises NCP pricing issues crucial to the international competitiveness of rural and regional Australia. Finally, rural industries will have a plain English guide to the utility regulatory processes which affect their cost base to enable effective participation in ongoing regulatory hearings and official inquiries.
Current Progress	The project has completed its first milestone with the release and circulation of an issues paper. The issues paper was canvassed with the project reference committee and covers a range of normative and positive issues raised by the cost methodologies used in utility pricing and regulation. The normative part of the issues paper examines questions such as the role of replacement or historic actual cost and whether depreciation, for example, should be based on replacement or actual cost. Other issues canvassed include the appropriateness of costs based on valuations which in turn rest upon capitalisation of future revenue streams and whether scarcity or congestion pricing is appropriate when there is no requirement for scarcity rents to be applied towards utility investment. The second part of the issues paper is designed to serve as the basis of a questionnaire to regulators and itemises a range of questions designed to establish existing regulatory practices in relation to determining utility costs. Among other practices to be examined are the regulatory treatment of recouped costs or pre-existing assets and external costs and benefits. The determination and measurement of cross subsidies is another area for further documentation.

Project Title	Occupational licensing: impact on Australian agriculture
RIRDC Project No:	ACI-5A
Researcher:	Mr Greg Cutbush
Organisation:	ACIL Consulting Pty Ltd GPO Box 1322 CANBERRA ACT 2601
Phone:	(02) 6249 8055
Fax:	(02) 6257 4170
Email:	g.cutbush@acil.org.au
Objective	To inform agriculturalists and other rural industry people about the way professional licensure is affecting the prices and quality of goods and services; to assist their participation in the reviews of such regulations which are underway; and (ultimately) to draw decision makers' attention to areas where reforms may be appropriate to promote rural industries' and Australia's competitiveness.
Current Progress	Work began in July 1999 with a meeting between ACIL’s team, Greg Martin and Greg Cutbush, with the Project Review Panel. A number of useful tips and suggestions were obtained in these discussions. In particular, the Panel suggested the researchers adopt a regional focus rather than a purely agricultural focus and select two case studies. These ideas were taken up. The chosen case studies are  · Health services in rural Victoria; and  · Professional Services in the Dubbo region of New South Wales.  Information for the analysis of health services in rural Victoria was collected through discussions with the Rural Workforce Agency Victoria, VFF, and the Victorian Department of Human Services, Public Health & Development.  The AusIndustry business licence databases were used as the basis for a field visit to Dubbo. Extensive interviews were undertaken and follow-up research was undertaken. A 100-page draft report was completed in June 2000 and has been circulated to Panel-members for comment with a meeting to be held in July.

Trade Policy Reform

Project Title	Key domestic support issues for the next WTO negotiations
RIRDC Project No:
Start Date:	1/5/1999
Finish Date:	30/9/2000
Researcher:	Ivan Roberts
Organisation:	Australian Bureau of Agricultural and Resource Economics (ABARE) GPO Box 1563 CANBERRA ACT 2601
Phone:	02 6272 2239
Fax:	02 6272 2346
Email:	iroberts@abare.gov.au
Objectives	The outcome will be: · More informed and therefore effective policy development and negotiation positions in Australia and elsewhere for the next multilateral agricultural trade negotiations; · A better-informed Australian community concerning domestic policies pursued in other countries and their links to trade policies that will affect the competitiveness of Australian industries. · The deliverable will be a research report to be released in mid-2000.
Current Progress	Work on this report is well advanced. Drafts of the introduction and the first two chapters are complete and substantial progress is being made on the third and forth chapters on what is to be a report in four chapters plus conclusions.  The first chapter canvasses issues involving domestic support in the context of the present WTO Agreement on Agriculture. The second examines the application of the 'Aggregate Measurement of Support' (AMS), the main concept being used for implementing agreed cuts to domestic support. This latter chapter includes analyses of how the European Union, the United States, Japan and developing countries are applying the AMS and an appraisal of the strengths and weaknesses of the concept in reducing market distortions. The third chapter addresses issues regarding market distortions from various forms of support that are likely to be important in the present WTO negotiations.  Analyses of agricultural insurance and disaster relief have been carried out and we are working with an outside specialist on analysis of complex decision making to address issues concerning decoupling and production limiting arrangements. The forth chapter is on the uneven distribution of support payments, using the US and EU as examples. Substantial progress has also been made on this chapter.

Project Title	Issues, options and strategies for improving Japanese agricultural trade policies
RIRDC Project No:	ANU-36A
Start Date:	1/04/99
Finish Date:	31/8/00
Researcher:	Dr. Ray Trewin
Organisation:	Australian National University Australia-Japan Research Centre (AJRC) Building 13  CANBERRA ACT 0200
Phone:	(02)62490134
Fax:	(02)62490767
Email:	ray.trewin@anu.edu.au
Objective	The key outcomes and deliverable’s will be the publication and broad presentation of a RIRDC report, including at public symposiums, involving Australian and Japanese researchers covering issues (eg. food security, environment), options (eg. more open trade and investment) and strategies for improving Japanese agricultural policies which affect an important agri-food export market for Australia.
Current Progress	Milestones have altered since the last report, mainly driven by changed circumstances following failure of the Seattle WTO meeting. The project produced a policy brief for this meeting which received positive feedback and was placed on the NFF and RIRDC websites. This and a presentation by Professor Honma on the political economy of Japanese agriculture was the basis of a meeting around Outlook 2000 involving the Australian Research Advisory Group and other interested parties such as DFAT. The earlier Australian workshop papers were published as a set in Pacific Economic Papers in March. An Australian workshop was held early May at which papers on the key issues of the political economy, food security, sanitary and phyto-sanitary measures, and land reform were discussed. Research to date is being incorporated into a short report for a seminar and meetings, including of the Japanese Research Advisory Group and with some involvement of the Australian Embassy, in Tokyo in mid-June. Work on food security has been accepted for presentation at the International Association of Agricultural Economists conference in Berlin in August. A RIRDC report incorporating all the research papers will be produced by August.

Project Title	Export subsidy measures: important considerations for the WTO agricultural negotiations
RIRDC Project No:	ABA-11A
Start Date:	1/4/2000
Finish Date:	31/8/2001
Researcher:	Ivan Roberts
Organisation:	Australian Bureau of Agricultural and Resource Economics (ABARE) GPO Box 1563 CANBERRA ACT 2601
Phone:	02 6272 2239
Fax:	02 6272 2346
Email:	iroberts@abare.gov.au
Objective	Enhanced appreciation of policy makers, negotiators and industry representatives of the importance of reducing or limiting a range of export measures that distort markets for agricultural products. The deliverables of the project will be a research report detailing the export subsidy issues facing world agricultural trade negotiations, together with one or more Current Issues papers which communicate the key research findings in a manner which can be distributed widely to key policy makers, negotiators and industry representatives in Australia and overseas.
Current Progress	This project is in the initial planning stages preparing to commence in July 2000.

Project Title	The political economy challenge of agricultural trade reform
RIRDC Project No:	CIE-10A
Start Date:	1/5/00
Finish Date:	31/12/00
Researcher:	Dr Andrew Stoeckel
Organisation:	Centre for International Economics GPO Box 2203 CANBERRA ACT 2600
Phone:	(02) 6248 6699
Fax:	(02) 6247 7484
Email:	astoeckel@intecon.com.au
Objective	Better chance of Australia gaining a successful outcome from the next round of trade talks on agriculture. Key deliverable's are a booklet updating and developing ideas on the political economy issues to be addressed in agricultural trade and a strategic plan for Cairns Group Farmers to follow.
Current Progress	This project has only recently commenced.  No significant progress to report at this stage.

Markets for Agricultural Products

Project Title	The potential impact on agricultural producers of responses to genetically modified products
RIRDC Project No:	US-92A
Start Date:	1/5/00
Finish Date:	30/4/01
Researcher:	Dr Kate Owen
Organisation:	The University of Sydney Department of Agricultural Economics Faculty of Agriculture SYDNEY NSW 2006
Phone:	(02) 9351 7368
Fax:	(02) 9351 4953
Email:	k.owen@agec.usyd.edu.au
Objectives	Outcomes include: 1. A detailed plan for research that has the aim of providing estimates of consumers' and wholesalers/retailers' likely demand response to genetically modified food and fibre products, and how this response may vary according to the benefits arising from GM and to different publicity scenarios (eg negative, positive). 2. A survey of consumers and wholesalers/retailers' to: · Ascertain the strength of concern over GM products relative to other food, social and environmental concerns held by Australian consumers · Determine how consumers and wholesalers/retailers expect government/industry to respond in the event of a problem arising in relation to GM products, and how the context of the incident may change this.
Current Progress	This project has only recently commenced.  No significant progress to report at this stage.

Supply Chain Linkages

Project Title	Social and cultural barriers to developing trust within demand chains
RIRDC Project No:	DAQ-263A
Start Date:	26 October 1999
Finish Date:	23 October 2002
Researcher:	Mr Hayden Hodges
Organisation:	Department of Primary industries (Qld) GPO Box 46 BRISBANE QLD 4001
Phone:	(07) 32393350
Fax:	(07) 32393379
Email:	hodgesh@dpi.qld.gov.au
Objective	The project will provide a sound theoretical basis for new and developing chains to use in dealing with the complex social and cultural issues which must be overcome in building the trust necessary for successful development and operation of agribusiness based demand chains.
Current Progress	The trend in global agribusiness markets is moving towards competition between demand chains. This research investigates the social and cultural influences on the development of trust within Australian agribusiness demand chains, based largely on an in-depth study of the horticulture, nursery and landscape industries in Queensland. A steering committee comprising representatives of the Queensland Department of Primary Industries, the Horticulture and Nursery, Landscape and Allied Industries Development Councils, RIRDC and the academic supervisors is providing support for the project. The project began in October 1999, when University of Southern Queensland PhD student, Deborah Bond, began reviewing literature and conducting some stage one, scoping interviews with key industry representatives. Initial difficulties associated with scholarship funding delays have been overcome and the project is on track. A conceptual framework has been established based on five states of alliance development, with the emphasis on the first of these five states, need awareness within horizontal alliances. The stage one interviews will be finished by July 2000, and a workshop will be held with industry and government representatives and academics in August. Data collection and analysis for stage two's case studies will begin then. The project will finish in October 2002.

Project Title	Unlocking successful new rural industries: is supply chain management the key?
RIRDC Project No:	UQ-89A
Start Date:	1/09/99
Finish Date:	30/09/02
Researcher:	Dr. Ray Collins
Organisation:	The University of Queensland School of Natural and Rural Systems Management GATTON COLLEGE QLD 4345
Phone:	(07) 5460 1328
Fax:	(07) 5460 1324
Email:	rcollins@uqg.uq.edu.au
Objective	The objective of this proposed research is to study the interaction of success or failure in new rural industries in Australia with the adoption of SCM thinking, planning and execution. If a linkage with SCM principles can be shown to be associated with a new rural industry's prospects of success, it should then be possible to identify approaches that could improve new industry development processes in Australia.
Current Progress	This project is in its first year, following the appointment of Ms Lilly Lim as Research Scholar. Literature on new industry development in agriculture and supply chain management has been reviewed. The database of new industry development related projects funded by RIRDC and AFFA over the last ten years has been examined, and a set of potential industry case studies has been identified. From the literature and available documentation on the case studies mentioned above, a preliminary investigative protocol has been developed. The olive industry has been chosen to pilot test this protocol. Over the last two months, five interviews with key participants in the olive industry, representing both growers and processors, key have been completed. Ms Lim has also attended industry field days. Drafts of interview transcripts have been prepared. Detailed analysis of this case study will be completed by July 2000.

Project Title	International trends in the structure of agricultural cooperatives
RIRDC Project No:	IMS-2A
Start Date:	1/4/00
Finish Date:	1/8/00
Researcher:	Mr John O’Connor
Organisation:	Industry Management Services  Level 2 470 Collins Street MELBOURNE VIC 3000
Phone:	(03) 9629 6287
Fax:	(03) 9629 6287
Email:	johnoconnor@access.net.au
Objectives	The purpose of the project is to inform members and officers of Australian agricultural cooperatives of trends in the structure and organisation of cooperatives in other developed countries. The ultimate outcome will be that Australian cooperatives will be restructured in a way that makes them more competitive in the markets in which they operate. As a result, the farming industries they serve shoudl also become more competitive.
Current Progress	This project has only recently commenced.  No significant progress to report at this stage.

Policy and International Analysis

Project Title	Agricultural implications from knowledge replacing land as the scarce factor
RIRDC Project No:	CIE-7A
Start Date:	31/05/99
Finish Date:	30/11/00
Researcher:	Mr Brent Borrell
Organisation:	Centre for International Economics GPO Box 2203 CANBERRA ACT 2601
Phone:	(02) 6248 6699
Fax:	(02) 6247 7484
Objective	Better understanding of how Australia's comparative advantage in agriculture may be changing as knowledge replaces land as the scarce factor.
Current Progress	A draft paper is almost complete. This paper will form the basis for discussion of the steering committee, which we intend to assemble next month. The paper has five chapters. The first chapter sets out the issue: "How Australia develops and uses it agricultural knowledge may be crucial". Chapter 2 discusses the role of knowledge in economic growth, discusses productivity growth in agriculture, its character, the place of knowledge as the main source of productivity growth and who gains from Australia's agricultural knowledge. It then looks at trends in productivity growth and challenges for the rural sector, such as can agriculture continue to attract sufficient knowledge resources. Chapter 3 looks at the so-called new growth theory and features of the new 'knowledge economy, including what seem to be required to achieve success. Chapter 4 brings chapters 2 and 3 together to look at agriculture in the knowledge age and what it might need to do to be successful. Chapter 5 draws out implications for agriculture. We anticipate that the steering committee will comment on the paper, after which we will complete the paper for publication.

Site map Contact us Feedback Links Disclaimer Privacy Statement

Last updated: 3 August 2000
Copyright © RIRDC
http://www.rirdc.gov.au/comp00/glc.html