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4. Review of Operations (cont.)
Program 2 - Emerging New Industries (cont.)
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 Plants2.5 Organic Produce
Objective: To optimise the profitability of Australian organic production in both domestic and overseas markets and to promote the utilisation of organic farming systems as a means of enhancing the sustainability of Australian agricultural systems. Expenditure in 1998/99: $238,326
Strategies
- Address major strategies and targets published in the R&D Plan 1998–2003.
- Promote consistent and robust industry policy and R&D development.
- Increase awareness and adoption of organic farming systems in conventional agriculture.
- Undertake development activities that increase consumption of organic produce.
- Evaluate and develop export market opportunities jointly with industry.
- Coordinate and disseminate the results of new and existing R&D to all industry stakeholders.
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/pub/org5yr.htm
Background
Consumers are increasingly aware of the quality and safety of the food and fabrics they consume. At the heart of this worldwide trend is a desire to consume products, especially foods, that are safe, produced from environmentally sustainable farming systems, and ethically and socially acceptable. In growing numbers, consumers are seeking organically grown products in response to this concern.
The Australian organic industry has around 1500 certified/registered members collectively marketing production estimated to be worth approximately $140 million a year. Members come from all sectors of the value chain — growers, processors and manufacturers, retailers and consumers — across all States. Seven organisations are currently registered with the Australian Quarantine and Inspection Service (AQIS) to inspect and certify organic farming and processing systems.
Rising domestic and overseas demand for Australian organic products is prompting a greater number of conventional farmers and processors to consider and adopt organic farming and processing systems. Typically the attraction is either improved market access and/or higher prices from niche markets, together with recognition by the marketplace of better and more sustainable farming practices.
Achievements in 1998/99
- Industry R&D plan:
Completed and released the Organic Produce R&D Plan to industry.- Development of OFA:
Supported the further development of the Organic Federation of Australia (OFA) as the industry peak body.- Industry newsletter:
Successfully launched and supported a new quarterly national organic industry newsletter, jointly published with the OFA.- 300% increase in project proposals:
Increased the number of R&D project proposals by more than 300 per cent, reflecting the increased awareness of organic industry needs among industry participants and researchers.- Conference support:
Supported travel by key industry personnel to international organic events in Tokyo (Foodex 99); Buenos Aires (IFOAM), and Ottawa (Codex).- Industry workshop support:
Supported industry workshops (Mildura, Sydney, Canberra) to facilitate certification training, industry planning and linkages with government.Publications in 1998/99
- Organic tillage practices:
Completed reports on organic tillage practices, and organic crop and pasture systems for south-eastern Australia.
Organic produce newsletter (3 issues) - Organic produce publication flyer 98/97 Organic produce: research in progress
2.6 Rare Natural Animal Fibres
Objective: To facilitate the development of new and established industries based on rare natural fibres. Expenditure in 1998/99: $190,396
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/rna/index.htm
- Address major strategies and targets published in the R&D plan for 1998–2003.
- Increase productivity on-farm, particularly from goats producing high levels of commercial fibre.
- Identify and research fibre properties required by processors to produce yarn, fabric and garments demanded further along the value-adding chain.
- Continue support for blending R&D between rare fibres, traditional fibres such as wool and cotton and synthetic fibres.
- Communicate to stakeholders and other interests via research reports progress and conclusions of program projects.
Background
The program can incorporate cashmere, mohair, alpaca fibre, camel hair and other rare fibre projects. The R&D projects currently cover the first three of these fibres.
In 1998 world prices for cashmere fell but towards the end of the year prices for mohair, particularly for fine fibre, increased and there were greater clearances both internationally and in Australia for much of the coarser lines. Australian cashmere production remains less than one per cent of world production and the corresponding figure for mohair is two per cent. Only by raising the efficiency of production and by producing what is required by processors will productivity and net returns increase.
Achievements in 1998/99
- Improving mohair marketing:
Published recommendations for improving the marketing of mohair covering production issues related to quality, market development opportunities based on greater communication of processors’ requirements, and increased value adding to the fibre in Australia.- Commercial angora and cashmere enterprises:
Assessed the impact of a recent RIRDC report on the economics of commercial Angora goat and cashmere goat enterprises by surveying industry stakeholders. The project demonstrated the importance of separate stages that produce progress in deciding whether to adopt research outputs. Of the diverse range of ways to disseminate information, regional conferences have an appreciable impact.- Increased mohair fibre through introduced genotypes:
Showed that introduced Texan and South African genotypes increased mohair fibre of Australian Angoras by 30 per cent at the first shearing and 50 per cent at the second shearing. Samples taken from cashmere producing goats at 18 and 24 weeks were shown to be significant predictors of future quality production.- Cashmere performance recording:
Surveyed leading cashmere breeders to ascertain interest in participating in a performance recording scheme. Sufficient interest was shown to move to the next step of inquiring about the opportunity of linkages, identification of superior sires, standardisation of performance recording, use of common sires and benchmarking of outcomes.- Detecting Johne’s disease in goats:
Developed laboratory techniques based on the ELISA technique to improve the specificity and sensitivity of detecting Johne’s disease in goats. These serological tests are being considered for endorsement by the appropriate Commonwealth agency for inclusion in market assurance programs.- Boer goat cross outputs:
Continued collecting data in Western Australia and Queensland on the fibre and meat production and marketing of progeny from various crosses of Boer goats with cashmere, Angora, dairy and feral dams. A review of the project in 1998 identified some problems in livestock management and data handling and these constraints are now being mitigated.- Commercial volumes of mohair:
Commenced a project to facilitate the production and marketing of commercial volumes of mohair and mohair blended products(s) in Australia. Various textile enterprises are being approached to gauge their willingness and ability to conduct appropriate market research, product design, manufacture and sale of mohair products.- Upgrading of MOPLAN:
Placed on hold the upgrading of MOPLAN to improve breeding outcomes for Angoras until a revised costing is negotiated. The development of analytical techniques (BLUP) for multispecies is imminent and reduced costings for MOPLAN will be considered.
GOAT FIBRE SUB-ACCOUNT ACTUAL 1997/1998($) 1998/1999 ($) Opening Balance Total Revenues Total Expenditure Surplus/(Deficit) Closing Balance
Publications in 1998/99
98/88 Rare natural animal fibres: research in progress 98/118 Innovative processing of rare natural fibres 98/134 Australian goat fibre improvement research 98/135 Johne’s disease in goats 98/138 Increasing the production of mohair and cashmere sought by processors Research Manager: Dr Peter McInnes
Phone: (08) 8556 7331 Fax: (08) 8556 7289 Email: mcinnes2@intertech.net.au
2.7 Tea Tree Oil
Objective: To support the continued development of a profitable Australian tea tree oil industry in Australia. Expenditure in 1998/99: $339,288
Strategies
This sub-program has its own five-year R&D plan, which is accessible in hardcopy and on the Internet at http://www.rirdc.gov.au/pub/tto5yr.htm
- Improve the understanding of markets for tea tree oil.
- Improve existing products and develop new ones.
- Enhance the ability of the industry to meet appropriate safety and efficacy standards.
- Provide production systems that are both ecologically sustainable and profitable.
- Enhance the human capital of the industry.
Background
Tea tree (Melaleuca alternifolia) is native to the north coast of New South Wales. Its oil has gained widespread therapeutic use for fungal and microbial infections but is not yet registered for use by the medical profession.
The current annual production of tea tree oil in Australia is about 400 tonnes, having a farm-gate value of around $18 million. The industry comprises some 250–280 growers and is located principally in northern New South Wales and on the Atherton Tableland in Queensland.
More than 90 per cent of Australian tea tree oil is exported, principally to North America and Europe. The major end uses of the oil are in antimicrobials and cosmetics, with much of the oil being sold as a pure oil.
As plantings increase, there are concerns about the balance between supply and demand in coming years. However, the industry remains optimistic about its future. The challenge is to build on recent achievements, particularly relating to safety and efficacy, and to pursue a more cohesive marketing effort.
The R&D program can contribute to this by improving the understanding of markets to enable greater product differentiation and better product descriptions. Acceptance of tea tree oil by the US Food and Drug Authority for first aid and health care remains a key priority.
Tea Tree Oil GDP
figures provided by ATTIA June 1999
Year Price Volume 1996 $48 - $52 kg 137 tonne 1997 $45 - $48 kg 203 tonne 1998 $45 kg 361 tonne 1999 $37 - $38 kg 192 tonne declared On the production side, research on plant nutrition is seen as a high priority because of concerns that this may become a major limiting factor in future production of tea tree oil. Continued work on breeding superior genetic material also remains a priority.
Achievements in 198/99
- Industry R&D plan:
Published a new five year strategic plan for the tea tree oil R&D program following a series of consultations with the industry.- Increased oil yield and quality:
Significantly increased oil yield and quality by selecting tea tree lines of different provenance, and wide sales of improved seed.- Antimicrobial activity:
Released report on the antimicrobial activity of tea tree oil.- Registration as a first aid antiseptic:
Made a further submission to the US Food and Drug Authority (USFOA) regarding registration of tea tree oil as a first aid antiseptic.- Industry newsletter:
Continued the publication of an industry newsletter as a means of improving communication with the industry on the R&D program.- Skin sensitivity testing:
Completed a trial report report on Skin Sensitivity Testing for Tea Tree Oil required for USFOA registration.- Nutritional practices:
Commenced a project to survey current nutritional practices in the industry.
TEA TREE OIL SUB-ACCOUNT ACTUAL 1997/1998
($)1998/1999 ($) Opening Balance Total Revenues Total Expenditure Surplus/(Deficit) Closing Balance
Publications in 1998/99
- Tea tree oil newsletter (1 issue) 98/70 Anti microbial activity of tea tree oil 98/89 Tea tree oil: research in progress 99/1 Tea tree oil five year plan Research Manager: Mr Tony Byrne
Phone: (02) 6272 4033 Fax: (02) 6272 5877 Email: tonyb@rirdc.gov.au
2.8 Wildflowers and Native Plants
Objective: To improve the profitability, productivity and sustainability of the Australian wildflower and native plant industry. Expenditure in 1998/99: $495,969
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/wildflow.html
- Define and develop new markets.
- Monitor, maintain and expand existing markets.
- Identify and develop new fresh products.
- Identify and develop novel dried and preserved products.
- Enhance the ability of Australian flower exporters to deliver quality products on time.
- Extend continuity of supply.
- Improve production efficiency.
- Improve the chain of confidence within the industry.
Background
Wildflowers are now cultivated in all States, but Western Australia still accounts for about half of Australia’s annual wildflower production valued at around $45 million at the farm gate. The relative importance of bush-picked flowers is declining, even in Western Australia, and now represents only about 16 per cent of the total value of wildflower production.
In 1997/98 the value of exports of wildflowers and native plants amounted to about $27 million. The key commercial wildflowers are Geraldton wax, kangaroo paw, Thryptomene, and species of Banksia, Leucadendron and Protea. The major markets are Japan, the United States, Germany and the Netherlands, with Europe increasing in importance.
Achievements in 1998/99
- New research:
Initiated new research on off-season Leucadendron hybrids, on improved fumigation procedures for export flowers, and on overcoming propagation difficulties in a promising new double waxflower.- Workshop support:
Underwrote the 5th National Workshop on Australian Native Flowers and provided special sponsorship for a session on quality management, for student attendance and for publication of the conference proceedings.- Overseas market studies:
Published analyses of the market for wildflowers in Germany, Italy and the United States.- Smoke germination:
Published the findings of a study of smoke treatments as a means of improving the germination of hitherto recalcitrant wildflower species.- Expanding riceflower lines:
Completed a study on the potential of new Asteraceae to complement current riceflower lines.- Preserving foliage and flowers:
Finished a project on an immersion technique for preserving foliage and flowers and supported the production of a brochure to aid commercialisation of the process.- Commercialising Baeckea behrii: Successfully concluded a two-year commercial evaluation of several promising lines of Baeckea behrii.
- Industry newsletter:
Published and distributed through industry associations several user-friendly short reports on completed projects and a revised version of the RIRDC Wildflower Newsletter.- Research and promotion levies:
Provided assistance to enable the industry to consider options for research and promotion levies.
AUSTRALIAN EXPORTS Traditional & native
$(FOB)% Change 1988-99 $14.5m 95.94 1990-91 $17.6 21.37 1992-93 $23.1 31.25 1993-94 $25.7 11.25 1994-95 $26.6 3.5 1995-96 $30.1 13.15 1996-97 $27.01 (10.03) 1997/98 $27.4 1.01 Publications in 1998/99
- Wildflower newsletter (1 issue) - Wildflowers publication flyer SR45 Developing native acacia species as an export cutflower crop SR48 Smoke stimulated germination of Australian species for horticulture SR53 Australian summer flowering plants for the northern hemisphere winter cut flower market SR60 Waxflowers for floriculture – collection and selection 98/54 A study of the USA flower market 98/55 A study of the German flower market 98/57 A study of the Italian flower market 98/90 Wildflowers research in progress 98/108 Smoke stimulated germination of Australian species for horticulture 99/7 Cultivating Australian native plants 99/29 Waxflowers for floriculture – collection and selection 99/34 A study of the Canadian flower market 99/40 A study of the Taiwan flower market Research Manager: Dr David Evans
Phone: (02) 4454 3039 Fax: (02) 4454 5131 Email: davide@shoalhaven.net.au
