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4. Review of Operations (cont.)
Program 2 - Emerging New Industries
2.1 Asian Foods
2.2 Agroforestry and Farm Forestry
2.3 Deer
2.4 Essential Oils and Plant Extracts2.5 Organic Produce
2.6 Rare Natural Animal Fibres
2.7 Tea Tree Oil
2.8 Wildflowers and Native Plants
Objective: To expedite the growth and development of emerging new rural and associated processing industries. Expenditure in 1998/99: $5,604,601*
* Includes $200,000 of 1998/99 research expenditure for the Cashews sub-program which has been subsumed by the New Plant Products sub-program (Program 1 – Prospective New Industries) due to a program restructure on 1 July 1999.
Our Five Year Plan 1997–2002 has the following performance indicators for Program 2.Some key performance achievements in 1998/99 were as follows:
Program 2 Emerging New Industries We will measureour success by: Performance in 1998/99 The growth in emerging industries over a five year period
- The medicinal herb industry continued to grow as herbal medicine companies sought to source more of their raw materials locally.
- Although export value plateaued, export volume of wildflowers continued to increase as did the area under cultivation.
- Prices of mohair increased appreciably while cashmere exports recommenced but at lower prices.
- Tea tree oil production increased from 137t in 1996 to 361t in 1998. But prices have eased from $48 per kg in 1996 to $37 per kg in mid 1999.
Our establishment of R&D plans that address each industry’s agreed strategies and goals
- All sub-programs in Program 2 other than 2.1 Asian Foods now have their own Five Year Plans. New plans issued in 1998/99 included 2.2 Agroforestry; 2.5 Organic Produce; and 2.7 Tea Tree Oil.
The level of industry funding support for the research programs we established and support
- Cash contributions were made on a project-by-project basis to both 2.4 Essential Oils and 2.8 Wildflowers & Native Plants. Support was given to developing levy options for the wildflower industry.
- Funding support from industry for the tea tree oil program has increased by over 70 per cent since 1995/1996.
- The Alpaca industry is seeking to commence a voluntary funding arrangement to support project funding.
The level of the adoption by industry of the results of research we organise and support
- There was strong industry involvement in the development of best practice for the peppermint industry and continued adoption of pesticide MRLs established by RIRDC research.
- Industry evaluation of promising new lines of wildflowers continued. There was increased grower attendance at the 5th national Wildflower Workshop complemented by a strong demand for the Corporation's wildflower-related Short Reports.
- Sales of improved seed from the Tea Tree Breeding Program reached nearly $100,000 in 1998/1999 .
Achievement of an average benefit–cost ratio of five and/or internal rates of return greater than 20 per cent on R&D projects
- The Corporation has a four year rolling evaluation program and Program 2 was reviewed in 1997/98. The results indicate internal rates of return to the investment ranging from 3 per cent for a series of breeding projects on cashews, 14 per cent on a set of projects aimed at identifying and development new flower varieties, 23 per cent on a series of breeding projects on tea tree for oil, to 59 per cent on reducing costs in farm tree establishment and 61 per cent on increasing yields in boronia oil production.
Most projects were found to have provided a rate of return in excess of the strategic plan performance target of 20 per cent. The equivalent range for the benefit–cost ratios was 0 to 11.8 (discount rate of 8 per cent) and again the majority were greater than the performance target of 5. Expenditure in 1998/99: $580,105
Strategies
- Assess market information and prospects for Asian foods.
- Foster Asian vegetable production by identifying appropriate varieties, nutritional requirements, diseases, pests and post-harvest handling constraints.
- Address Asian vegetable processing constraints.
- Investigate potential Asian food-product development.
- Improve industry communication and technology transfer.
BackgroundThe 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 are that, with 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 theAsian Australian population, Asian tourists in Australia and changes in the 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 in 1998/99
- Specialty mushrooms: Refined methods for growing a range of specialty mushrooms, including matsutaki mushrooms grown in conjunction with pine forests in Australia, and more cost-effective methods for producing shitake, maitake and bunashimeji mushrooms.
- Identified possible domestic and export markets for these types of mushrooms.
- Post-harvest handling: Completed the first stages of developing post-harvest handling methods for leafy Asian vegetables.
- Pickling and drying methods: Identified pickling and drying methods best suited for Australian-produced product but meeting East Asian consumer requirements.
- ·Indian condiments: :Reported on the Indian condiments and pickle market opportunities for production in Australia.
- ·Newsletters:Consolidated the Asian Foods and Asian Vegetables newsletters with wide distribution to industry.
Publications in 1998/99
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Research Manager: Dr Jeff Davis
