4. Review of Operations
PROGRAM 1- Prospective New Industries: PROGRAM 2 - Emerging New Industries: PROGRAM 3 - Established Industries: PROGRAM 4 - Future Agricultural Systems:
Program 1 - Prospective New Industries
Our Five Year Plan 1997–2002 has the following performance indicators for Program 1.
Objective: To investigate and to develop prospects for new industries in rural and regional Australia. Expenditure in 1998/99: $2,223,297
Some key performance indicators and achievements in 1998/99 were as follows:
Program 1
Prospective New Industries
We will measure our success by:Performance in 1998/99 The development of sustainable new industries
- Established an R&D plan for bushfood and appointed an industry advisory panel for this industry.
- With Cadbury Schweppes and three State departments, initiated a study on the feasibility of growing cocoa in northern Australia.
- Completed market studies on the prospects for the Australian olive and jojoba industries and for non-wood fibres such as hemp, flax and kenaf.
- Released Chalus, a cultivar of Lathyrus, a promising new grain legume for drier areas.
- Completed a marketing analysis of 19 new animal industries along with more detailed research for buffalo and camel meat marketing.
Industry adoption of the results of research that we organise and support
- Publication of guides on Establishing Walnuts; Cashew Production for Potential Investors and Growers and New Rural Industries Financial Indicators.
- Dairy goat industry is increasingly relying on research outputs on positive management and utilisation. Software programs to aid management are being used in the ostrich industry.
Achievement of average benefit–cost ratios of two and/or internal rates of return greater than 15 per cent on R&D projects
- The Corporation has a four year rolling evaluation program and the two sub-programs in Program 1 are scheduled for inclusion in this evaluation process in 2001–2002.
The level of industry funding support for our research programs
- Cash contributions to R&D projects made by cocoa, coffee, culinary herbs, durian, lychee, olive, pet food and rambutan industries and by GRDC.
- Kangaroo industry is developing a procedure for collection of voluntary funding contributions to support R&D.
The growth in industry outputs over a 5–10 year period
- The newly established buckwheat industry achieved a value of $2.5 million during the year.
- Kangaroo, dairy goat and sheepmilk industries are expanding while ostrich and emu industries, after declining, are reaching a consolidated phase at a lower production base.
* Does not include $200,000 research expenditure for the 1998/99 Cashews sub-program which has been subsumed by the New Plant Products sub-program due to a program restructure on 1 July 1999.
Objective: To facilitate the development of new industries based on plants or plant products that have commercial potential for Australia. Expenditure in 1998/99: $1,306,413*
Strategies
This sub-program has several five-year R&D plans, which are accessible in hardcopy (durian, rambutan, mangosteen, lychees, olives, longans and bushfoods). The last three are also available on the Internet.
- Support preliminary market and technical feasibility studies.
- Identify, evaluate, test market and develop species, varieties, processes or products with prospects of commercial viability.
- Develop integrated production, harvesting, processing and marketing systems.
- Foster the development of policy, infrastructure and R&D plans and other initiatives to underpin industry growth.
Olives:
www.rirdc.gov.au/pub/olive5yr.htm
Longans:
www.rirdc.gov.au/pub/cat/contents.htm
Bushfoods:
www.rirdc.gov.au/pub/bush5yr.htm
Background
RIRDC supports a diverse program of R&D within its charter of encouraging and assisting prospective industries. Existing small industries are also supported so that they may contribute to regional development and to the national economy as a whole. Frequently, the research and development needs of these smaller industries are just as demanding as those of the larger established industries.
The program has six components:
The Corporation views the program as a seed-bed or nursery in which stand-alone programs of the future can be germinated and raised. The program also provides a means of supporting commercially viable but intrinsically small rural industries.
- bushfoods;
- culinary herbs, spices and beverages;
- extractive and fibre crops;
- prospective fruit, vegetable and nut crops, including cashews;
- prospective grain and pulse crops; and
- miscellaneous crops and activities.
Achievements in 1998/99
Truffles: Successfully invested in a six-year project with Perigord Truffles, which has seen 26 individual trufferies developed in Tasmania. Seven truffles were found in June and there are positive signs RIRDC's investment has developed another new industry for Australia's farmers. There are now plans to expand into ground breaking tree cloning and varietal research which will take the industry from its very juvenile stage to a stable level.
- Bushfoods R&D Plan: Obtained industry support for the Corporation’s R&D plan for bushfoods and appointed an industry advisory panel to assist in addressing the plan’s objectives. Initiated projects on baobab tubers and novel, value-added products from bushfoods.
- Black tea: Completed a commissioned evaluation that highlighted the current marginal profitability of Australia’s black tea industry and the potential of using new clonal teas to lift productivity and quality.
- Coffee: Strengthened research on coffee through a new project on the better use of irrigation water in subtropical regions and by supporting the evaluation of a tractor-drawn harvester for small-scale growers.
- Cocoa: With Cadbury Schweppes, supported an overseas study tour that recognised improved clonal material, mechanical harvesting and mechanical seed separation as key factors for establishing a viable cocoa industry in a high labour-cost country such as Australia.
- Non-wood fibre crops: Completed a market and technical feasibility study on non-wood fibre crops such as cereal straw, flax, hemp, kenaf, linola and sugar cane bagasse.
- Olives R&D plan: Supported an industry workshop to obtain industry endorsement of the Corporation’s draft R&D plan for the olive industry.
- Olive market study: Completed a study on the market prospects for and customer reactions to Australian olive oil and funded a project on the relationship between water use and yield in olive groves.
- Olive industry newsletter and video: Contributed to the cost of an olive industry newsletter that will help in disseminating research findings to this new industry and shared the cost with the Australian Olive Association of a video on the pruning of young olive trees.
- Jojoba: Supported a study on the market prospects for jojoba.
- Tropical fruits: Launched a major study on improving the postharvest quality of lychee and initiated research projects on pepper spot disease in lychee, on nutrition and irrigation in longan and rambutan, and on Phytophthora disease in durian.
- New projects: Started new projects on canary seed, culinary herb information systems, alternative oil seed crops, and potential sources of food gums.
- Garlic, hazelnuts: Extended RIRDC’s support for work on virus-free garlic production systems and a varietal evaluation of hazelnuts.
- Inaugural conference: Supported the first national new rural industries conference in Perth in October 1998.
- Conference assistance: Provided financial assistance for five industry and research personnel to attend national and international conferences.
- New crops newsletter: Extended support for the Australian New Crops Newsletter, an increasingly important source of information and awareness on new crops.
- New research reports: Published final reports on projects concerned with: new industries based on herbs and spices for Queensland’s Callide Valley; potential new salads and vegetables of sub-Antarctic origin; the cultivation in Tasmania of certain medicinal herbs; green tea production systems; varietal evaluation of hazelnuts; quality management in walnut; lathyrus - a promising new grain legume; and the potential of morel fungi.
- Cashew production manual: Released a manual on cashew production for potential investors and growers.
- Cashew breeding: Refocused the cashew breeding research program.
- Cashew pest management: Identified green ants as a dominant predatory species in cashew plantations, a useful species around which to establish an integrated pest management program.
Publications in 1998/99
- R&D plan for the olive industry - New plant products publication flyer SR57 Financial analysis indicators for new rural industries 98/62 Proceedings of second hemp workshop 98/69 Effect of native vegetation on cashew insect pests 98/76 Introduction to herb growing 98/80 New plant products: research in progress 98/111 R&D plan for the bushfood industry 1998-2002 98/115 Production and export of buckwheat grain and value added products 98/122 Validation of fertiliser strategies for cashews in North Queensland 98/145 New salad and vegetable crops from Australia’s sub-Antarctic islands 98/148 Duckweed – a potential high protein source for feeds for domestic animals 98/149 Australian longan industry strategic plan 99/6 A field evaluation of the productivity of hazelnuts 99/22 Australian ginseng - crop establishment research 99/28 Review of the prospects for the Australian black tea industry 99/38 Financial analysis indicators for new rural industries 99/45 Developing a herb and spice industry in Callide Valley, Qld Research Manager: Dr David Evans
Phone: (02) 4454 3039 Fax: (02) 4454 5131 Email: davide@shoalhaven.net.au
1.2 New Animal Products
Objective: To accelerate the development of viable new animal industries. Expenditure in 1998/99: $916,884
Strategies Background
- Identify R&D priorities.
- Assess RIRDC’s opportunity to fund innovative R&D.
- Facilitate market development based on customers’ demands.
- Fund production, processing, transport and storage R&D on animal products.
- Assist in the development of business plans for some potential innovative animal industries.
- Stimulate co-funding of R&D from industry, enterprises and public sector interests.
- Communicate outcomes in final reports, at field days and industry meetings, and via media.
There are more than 35 prospective and emerging animal-based industries for which RIRDC receives research proposals or inquiries regarding R&D funding. The annual value of livestock and products traded from these industries exceeds $160 million with approximately 50 per cent traded on export markets.
In 1998/99 the Corporation funded specific projects for eleven of these industries. Other individual projects covered a broad spectrum of species and their products. Projects are increasingly covering value-added R&D past the production system. For the very small industries, initial R&D is directed as necessary to feasibility studies and/or the development of a business plan.
Funding continues on the commercialisation of native and feral animal products where enhancement of the environment and biodiversity are not threatened. Specific projects are in progress for the kangaroo, emu, crocodile and camel industries. Other projects continue in buffalo, dairy goats and milking sheep. New projects commenced in 1998/1999 for farmed rabbits, ducks and earthworms.
Achievements in 1998/99
- Marketing report of new animal industries: Prepared an overview of 19 new animal industries, describing their stages of development, estimating wholesale values, and predicting market potential and outlooks. Using case studies, demonstrated strategic principles and guidance for new meat, milk and fibres industries. Undertook additional market analysis for the buffalo and camel industries.
- Kangaroo specifications manual: Published a manual on kangaroo specifications and selected meat cuts, which is being adopted nationally and for some export markets.
Kangaroo Meat
- Camel industry manuals: Published information on camel statistics and the logistics of harvesting and processing meat products in Western Australia as well as manuals from other research on a descriptive language for trading live camels and the methods for capturing and handling camels destined for abattoirs. Continued research on assessing any advantages of grazing camels with cattle in extensive commercial operations in Northern Territory.
- Innovative semen collection: Developed an innovative approach to collecting semen from animals, resulting in humane techniques based on stimulation procedures. Routine use is a possibility and significant progress has been made on identifying and overcoming problems in semen emission in some livestock species.
- Improved productivity of goat cheese: Used a national survey of dairy goat production enterprises, grazing and management demonstrations in Victoria and Tasmania and a visit by key producers to New Zealand as a basis for improving the productivity of speciality goat cheese and for creating a national goat cheese industry organisation.
- Spreadable sheep milk cheese: Analysed the chemical composition of semi-mature, soft spreadable and recotti cheeses made from sheep milk, which showed high nutritive values. Results from extensive consumer surveys have demonstrated that the local market would be prepared to pay relatively high prices, particularly for the soft spreadable type. Assessed the lactation performance of East Friesian milking sheep as well as of the progeny from crossing this breed with Awassi ewes.
- Grading animal skins: Commenced research on skins from new animal industries, initially with an inception study on grading kangaroo skins.
- ‘IVF’ for buffalos: Combined the collection and cryopreservation of buffalo semen with oestrous synchronisation for artificial insemination. Novel govadotrophin protocols have been used in multiple ovulation and embryo transfer programs. The resulting embryos have been cryopreserved for transfer to recipient buffalo cows and the procedures lay a foundation for rapidly spreading improved genotypes for buffalo meat production.
- Crocodile research facilities: Completed facilities for R&D in crocodiles from one year of age to marketable weights. Made further advances in developing a feeding pellet using a system that should result in producers being able to manufacture the pellet on farm.
- Ostrich nutrition: Ceased ostrich nutrition research in Tasmania due to the withdrawal of a commercial farm input and modified other similar research in Queensland for the same reason. Developed the nutritional requirements of breeder birds based on on-farm mixing to obtain the effects of diet in growing emus being offered diets of varying energy and protein concentration.
BUFFALO SUB-ACCOUNT ACTUAL 1997/1998($) 1998/1999 ($) Opening Balance 17,017 89,406Total Revenues 118,803 18,876Total Expenditure 46,414 41,200Surplus/(Deficit) 72,389 (22,324)Closing Balance 89,406 67,082Publications in 1998/99
98/72 Kangaroo specifications and selected meat cuts 98/81 New animal products: research in progress 98/109 Crocodile farming: research, development and on-farm monitoring 98/113 Reproducing ostrich fading syndrome – PCR development 98/114 The kangaroo island tammar wallaby 98/116 Specialty goat cheese 98/133 Innovative semen collection techniques 98/139 Information systems for new animal industries 98/147 Commercial emu rearing 99/23 Overcoming the constraints of emu egg laying season 99/38 Financial analysis indicators for new rural industries 99/53 Marketing of new animal products SR57 Financial analysis indicators for new rural industries
Research Manager: Dr Peter McInnes
Phone: (08) 8556 7331 Fax: (08) 8556 7289 Email: mcinnes2@intertech.net.au