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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 Plants2.2 Agroforestry and Farm Forestry
Strategies
Objective: To integrate sustainable and productive agroforestry within Australian farming systems. Expenditure in 1998/99: $2,833,734
- Address targeted strategies for the implementation of farm forestry, focusing on identifying impediments and opportunities and improving information flows.
- Investigate how agroforestry can contribute to more sustainable management of natural resources — for example, soil, water, biodiversity.
- Seek to optimise the productivity of crops and pastures by assessing the effects of agroforestry on productivity of other agricultural enterprises.
- Promote optimised direct returns from tree products through species development, including in medium and low rainfall areas, and investigate harvesting, processing and management systems.
- Develop cost-effective multipurpose agroforestry systems to meet commercial and environmental objectives, including farm forestry design options and decision-making tools.
This sub-program has its own five-year R&D plan, which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/aft5yr.htm
- Develop effective communications.
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.
The Joint Venture Agroforestry Program was established in 1993 with three partners: RIRDC, the Land and Water Resources Research and Development Corporation and the Forest and Wood Products Research and Development Corporation. Funding was also provided for some activities by the Murray Darling Basin Commission, the Grains Research and Development Corporation and the Department of Agriculture, Forests and Fisheries, Australia.
The priorities for the program were revised in 1998 following 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.
A total of $2.5 million has been made available to assess new tree-crop products and industries with an emphasis on native species. The aims of this component are to support the 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-low rainfall areas. These funds are being managed by RIRDC.
A total of $1.5 million has been made available to focus on timber production and processing elements of farm forestry and the sustainable management and use of private native forests and woodlands. These funds are being managed by the Forest and Wood Products Research and Development Corporation.
The Murray Darling Basin Commission is contributing $275,000 in the 1998/99 and 1999/2000 financial years.
The Joint Venture Agroforestry Program has been managing the Biomass Taskforce since 1998. This taskforce was established initially for three years to foster and facilitate the development of biomass for energy, liquid fuels, and as a chemical feedstock.
Achievements in 1998/99
General
Targeted strategies for implementation of farm forestry
- Finalised a new strategic plan for the program.
- Completed the process of selecting projects to be funded under the program’s revised priorities, including the identification of projects to be supported with Natural Heritage Trust funds.
- Transferred the management of the Biomass Taskforce from the former Energy Research and Development Corporation to RIRDC and released a strategic plan for the taskforce.
- Published the outcomes of the Research Working Group 11 (Farm Forestry), which summarised current research and outlined recommendations for future R&D.
- Developed a consultancy to assess the potential genetic impact of agroforestry tree species on remnant vegetation. Drafted a risk management strategy to minimise the potential impact of tree breeding R&D activities.
More sustainable management of natural resources
- Published results from an investigation of the reforms necessary to overcome impediments to agroforestry.
- Completed a review of existing extension information. Documented activities and systems perceived by stakeholders to be the most successful methods for developing agroforestry and recommendations for future extension strategies.
Optimised productivity of crops and pastures
- Held a workshop in October 1998 to identify key knowledge gaps relating to biodiversity values of agroforestry systems. The workshop served to identify short and long term research priorities, and to refine existing research proposals.
- Developed a scenario tool for running simulations using a physically based catchment model to explore the impact of a number of agroforestry designs under a wide range of environmental conditions.
- Published a National Catchment Classification System to allow extrapolation of research findings to other sites.
- Produced a booklet that provides advice on the thinning of native regrowth for timber production and improved biodiversity.
Optimised direct returns from tree products
- Analysed and compiled the final phase of the National Windbreaks Sub-Program.
- Completed a report that investigates the impact of windbreaks on the mechanical damage to crops on the Atherton Tablelands.
Cost-effective multipurpose agroforestry systems to meet commercial and environmental objectives
- Developed a national database for the collection of silvicultural information relevant to farm forestry.
- Published a study that investigates the potential of Aleppo pines for agroforestry in low rainfall areas.
- Facilitated a multi-agency project to assess low rainfall tree species suitable to agroforestry in southern Australia. An integrated tree-breeding project was developed involving researchers from Western Australia, South Australia, Victoria, New South Wales and Tasmania.
- Published a series of case studies used to assess the potential for commercial agroforestry from existing timber resources.
- Continued to assess the commercial opportunities for growing a range of tree species in medium-to-low rainfall areas of Australia.
- Published a report on the use of native trees on farms for productive farm forestry.
AGROFORESTRY SUB-ACCOUNT ACTUAL 1997/1998($) 1998/1999 ($) Opening Balance Total Revenues Total Expenditure Surplus/(Deficit) Closing Balance Publications in 1998/99
- Agroforestry newsletter (2 issues) - Agroforestry & farm forestry five year plan - Agroforestry publication flyer SR34 Progress towards commercial farm forestry in Australia SR35 Creating a viable farm forestry industry in Australia SR36 Links between small scale growers and industry SR38 On-site processing for farm forestry – does it stack up? SR39 Water use by trees SR40 Groundwater uptake and salt accumulation by trees over shallow watertables SR46 Interim guidelines for revegetating areas with shallow, saline water tables SR59 Trees face the acid test 98/41 Links between farm forestry and the wood processing industry 98/63 Agroforestry water use in Mediterranean regions of Australia 98/66 Workshop on agriculture as a mimic of natural ecosystems 98/74 Creating a viable farm forestry industry in Australia - What will it take? 98/78 National classification of catchments 98/79 On-site processing for farm forestry 98/83 Agroforestry research in progress 98/103 Farm forestry in Australia: a research update 98/136 Review of evaluation in agricultural extension 98/142 Agroforestry with high value trees 99/16 An investigation of Aleppo Pine for low rainfall farm forestry 99/21 Native forests on farms 99/36 Agroforestry over shallow water tables 99/37 The ways trees use water Research Manager: Mr Tony Byrne
Phone: (02) 6272 4033 Fax: (02) 6272 5877 Email: tonyb@rirdc.gov.au Assistant Research Manager: Ms. Sharon Davis
Phone: (02) 6271 6671 Fax: (02) 6272 5877 Email: sharond@rirdc.gov.au
2.3 Deer
Objective: To foster an Australian deer industry as a profitable and efficient mainstream agricultural enterprise.
Expenditure in 1998/99: $274,150Strategies
- Focus on increasing deer numbers by unlocking farm level production constraints, bearing in mind that the industry will continue its development as a mainstream enterprise option for Australian agriculture only 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 its five-year plan, which identifies eight strategic areas to move forward. However, program priorities have changed for 1999/2000 after consultation with industry. In recognition of their needs, market development research has been given greater priority. The eight strategic areas are:
- developing current markets more effectively and identifying new markets;
- 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.
- Place extra focus on developing current markets and identifying new markets because of the downturn in venison and velvet prices caused by international developments.
- Communicate research outcomes and market their adoption to the deer industry through the continued strong relationships with key industry players and audiences, while maintaining the Corporation’s high standards of accountability.
This sub-program has its own five-year R&D plan, which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/deerr&d1.html
Background
The Australian deer industry has an estimated gross value of production of around $6 million at the farm gate. The majority of the herd is in New South Wales and Victoria. There is expansion in Western Australia and Queensland, albeit from a small base. Fallow and Red deer make up more than 80 per cent of the national herd.
Australian annual venison production is around 1000 tonnes, with around 90 per cent exported. Velvet production/harvesting has increased in recent years to an estimated 23–25 tonnes a year. Over 75 per cent continues to be marketed by Australian Deer Horn and Co-Products Ltd. A small but increasing quantity is processed in Australia and New Zealand before being sold on international or domestic markets.
Following industry product price declines that occurred in 1997/98 growers' returns for velvet antler rose during the 1999/2000 season. Expectations are that prices will at least be maintained or even increased during the 2000/2001 season. Average venison prices fell to around $4.20/kg hot carcass weight in June/July 1999. These low values are expected to be the 'trough' prices and slow but continual improvements are expected during 2000/2001.
Although venison prices are low, more than 30,000 animals are estimated to have been processed during 1998/99. This number is about 10,000 animals more than the number generally accepted as an average number processed per year and supports the view that some farmers are selling stock to leave the industry.
Early indications from Australian Deer Horn and Co-Products Ltd suggest that the average velvet antler price in 1998/99 increased by about $10.00/kg from the 1997/98 level. The six-year average price for all velvet sold by Australian Deer Horn and Co-Products Ltd is still more than $55.00/kg.
Observers of the international velvet market suggest that the average price for velvet antler will increase significantly in 1999/2000, principally due to the significant increase in the number of male deer slaughtered in New Zealand in 1998/99, causing a drop in the supply of velvet stags.
New Zealand has also been affected by the downward pressure on venison prices, although the effect appears less significant. By way of comparison, the New Zealand deer herd is around 1.5 million and more than 360,000 were slaughtered in 1998/99 (about 40 per cent above the previous year’s figure). In aggregate, it is nearly ten times the size of the Australian industry.
Achievements in 1998/99
The Deer Industry Development Officer put the following in place:
- Trained deer industry quality assurance assessors for each State.
- Developed and registered an industry quality assurance mark.
- Developed and produced an information/promotion kit (leaflets) for use by the industry.
- Purchased display equipment and developed a portable industry promotion kit for field days and seminars.
- Developed and re-released export marketing support material.
- Developed a standardised weight schedule used by a majority of venison processors.
- Field tested a non-chemical means of harvesting velvet.
- Developed cold set binder technology as an option to put more value into under-utilised venison forequarters and trimmings.
- Released a report on factors that cause ecchymosis (blood splash) in deer.
- Commenced the development of venison marketing strategies for Europe and tested paddock-to-plate marketing strategies for venison on the domestic market.
DEER SUB-ACCOUNT ACTUAL 1997/1998($) 1998/1999 ($) Opening Balance Total Revenues Total Expenditure Surplus/(Deficit) Closing Balance
Publications in 1998/99
- Deer publication flyer - Deer products R&D newsletter (4 issues) 98/85 Deer research in progress 98/100 Report on 2nd world deer farming congress 98/102 Adding value to venison forequarters 99/48 Ecchymosis – what causes it? 99/52 Exporting venison to Israel
Research Manager: Mr Peter Core
Phone: (02) 6272 4819 Fax: (02) 6272 5877 Email: peterc@rirdc.gov.au
2.4 Essential Oils and Plant Extracts
Objective: To support the growth of a profitable and sustainable essential oils and natural plant extracts industry in Australia. Expenditure in 1998/99: $452,633
Strategies
This sub-program has its own five-year R&D plan, which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/essentoi.html
- 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 at the farm gate and $20–25 million wholesale/retail a year. The eucalypt and tea tree oil segments aside, the principal regions 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 success of the pyrethrum, poppy, and hop industries, with a combined farm gate gross value of production 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 in Australia each year is supplied locally. 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 in 1998/99
Industry newsletter: Published an industry-generated newsletter under the banner of the Essential Oil Producers Association of Australia.
- Peppermint research:
Augmented peppermint research by funding additional equipment for irrigation and nutrient monitoring research and by supporting further industry–researcher workshops. Extended funding for maximising peppermint yields through double cutting.- New projects:
Initiated new work on weed control in kesom, the production of ginseng, quality stabilisation of the oil of Tasmannia lanceolata (native pepper), the quality of boronia extracts, and pesticide Maximum Residue Limits (MRLs).- Dill potato sprout inhibitor:
Extended funding for the development of a natural potato sprout inhibitor from dill.- Completed projects:
Completed and reported on studies on the biology and epidemiology of mint rusts; optimising production and harvesting systems for echinacea; genetic diversity in Eucalyptus polybractea; the production of betaines from melaleuca species; the economic feasibility of growing scotch and native spearmints in Australia; CO2 extraction of essential oils; and adding value to essential oils through novel extraction and formulation techniques.- Market opportunities:
Initiated a study on market opportunities for essential oil and plant extracts in the North American market.- Conference support:
Provided support for researchers and industry members to attend national and international conferences.Publications in 1998/99
98/86 Essential oils: research in progress
Research Manager: Dr David Evans
Phone: (02) 4454 3039 Fax: (02) 4454 5131 Email: Davide@shoalhaven.net.au
