| Project
Title: |
A
model for expansion of the Australian domestic temperate pasture seed market |
| RIRDC
Project No: |
DAV-106A |
| Researcher: |
Mr
Peter Schroder |
| Organisation: |
Rural
Consulting
2 Rippon Road
HAMILTON VIC 3300 |
| Phone: |
(03)
5572 3825 |
| Fax: |
(03)
5572 3828 |
| Email: |
pandjschroder@bigpond.com |
| Objectives |
To
develop a promotional model that will double the demand for pasture seed
in temperature Australia where grazing is the main enterprise. |
| Background |
Australia
produces about 28,000 tonnes of pasture seed annually with an estimated
value of $67 million. Certified temperate pasture seed production statistics
from 1980 – 81 to 1992 – 93 show a stagnant market situation. A National
Seed Industry Workshop held in Canberra in 1990, which was funded by RIRDC,
identified improving market penetration as one of six priority areas. The
future viability of the pasture seed industry depends on action being taken
on this. ‘Growing’ the domestic pasture seed market is particularly attractive
as the infrastructure is already in place. This means expansion can be
achieved quickly, at a relatively low cost and with minimal risk. The goal
will not be achieved by tinkering around with product, price, promotion
and place. |
| Research |
The
project involved five integrated steps:
1. Qualitative market research,
from which flowed a model.
2. Implementation of the
model over 2 years.
3. Evaluation of the impact
of the implementation.
4. Quantify the size and
attitudinal profile of the different market segments identified.
5. Testing, in other regions,
to verify the validity of the model.
The first 4 steps were done
in one district in south west Victoria. The fifth step involved work in
several other ares in Victoria and with one rural merchandise group. |
| Outcomes |
The
strongest impression gained from the qualitative research was graziers
lacked a detailed understanding of the system they managed and the key
drivers of its profitability. Two main groups were identified – intensive
and extensive graziers. The intensive group had a productivity orientation,
aimed to run their enterprise as a business and were comfortable working
with anyone who may be able to help them. The extensive group focussed
on reducing costs, over coming problems and relied heavily on rural merchandisers
for information. Peers influenced decisions in both groups but this was
particularly strong in the extensive group.
Over 2 years 5 groups of
intensive graziers were taken through a program by the author that challenged
them to take a managing directors view of their business and to identify
it’s key profit drivers. In this time 3 groups of intensive graziers were
taken through a program, in their paddocks, by a rural merchandiser, to
solve a problem which was of concern to them.
Evaluation of the program
found there had been a significant change in the way pastures were considered
by both groups. These changes flowed through into increased sales of pasture
related inputs. Testing parts of the model in other areas indicated it
could be applied successfully with very little modification. Discussions
with rural merchandisers added further to this belief.
The quantitative research
in the main study are found 35% of graziers fitted into the intensive group,
21% into the extensive group and would be receptive to the program and
46% were unlikely to ever become more interested in pastures no matter
what approach was taken. |
| Implications |
Change
to the consumption of pasture seed will be largely determined by the actions
taken by local service providers to the grazing industry. It is recommended
that an extension program be put in place to sell the vision flowing from
this project to these providers and ensure they have the knowledge, skills
and follow up support required to get local programs well established.
The follow up support is crucial because of the sharp change in mind set
required by all these providers. |
| Publications |
Schroder,
P M, (2001). A model for expansion of the Australian domestic temperate
pasture seed market. RIRDC Publication No: R01/132.
Schroder, P M, O’Keeffe,
M J and Marks, N L (1997). A model to double the demand for temperate pasture
seed in Australia. Wool Technology and Sheep Breeding, 45 (1) pp 81–87.
Schroder, P M and O’Keeffe,
M J. (1997). Getting more people to sow more pasture more often. 2nd
Australasia and Pacific Extension Conference, Albury November 1997. Pp
541-546. |