PROGRAM 3. ESTABLISHED INDUSTRIES
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Program 4 - Future Agricultural Systems
Objective: To identify key generic cross-sectoral issues confronting the rural sector and devise appropriate R&D programs that will benefit the sector and the nation. Expenditure in 1998/99: $3,517,487
Our Five Year Plan 19972002 has the following performance indicators for Program 4.
Some key performance achievements in 1998/99 were as follows:
Program 4
Future Agricultural SystemsPerformance in 1998/99 4.1 Global Competitiveness
We will measure our success by:Establishing an R&D plan that addresses the needs of stakeholders
- The needs of stakeholders are currently being met through the incorporation of individual steering committees in most projects. A five year plan will be developed during 1999/2000.
Developing options and strategies that identify new opportunities in the marketplace and in particular, contribute effectively to the Government’s ‘Supermarket to Asia’ initiative
- Published several reports on Asian market prospects for Australian exporters, developed in collaboration with the Government’s Supermarket to Asia initiative.
Identifying options and strategies for reducing trade barriers and domestic policy impediments for Australian agriculture
- Published three reports on the implications of trade policy changes for Australian agriculture and the Australian economy in general.
Improving linkages between producers, consumers and providers of agribusiness goods and services
- Produced a report outlining the results of an innovative approach to hands-on experience as part of training for potential agribusiness leaders.
Research project outcomes that have enhanced export performance and culture and resulted in the removal of impediments to effective trade with Asia in the food sector
- Produced a compendium of Asian religious and cultural events and customs that impinge on food consumption patterns and are potentially important to firms contemplating entering markets in Asia.
Identifying new policies or institutional arrangements which will improve Australia’s global competitiveness
- Produced reports which: analysed structural change in the Australian farm input supply sector and implications for improved efficiency in the agricultural sector; and assessed the impact of indirect taxation on the farm sector and implications of possible changes.
Our ability to demonstrate that average benefit–cost ratios of 10 and/or internal rates of return greater than 25 per cent can be achieved for R&D projects A major benefit–cost analysis of the program Future Agricultural Systems is planned for 2000/2001 as part of RIRDC's clearly defined evaluation program.
4.2 Resilient Agricultural Systems
We will measure our success by:The establishment of R&D plans that address the needs of stakeholders
- A new Five Year Plan for the program has been published. The plan refocuses the program with the objective of looking forward and building on opportunities for developing strong sustainable agri–industry systems into the next century.
The adoption level of results from our research projects
- Program management is placing increased emphasis on adoption. A range of commissioned projects targeted at identified needs is being developed.
Pilot trialed accredited sustainable production systems in a range of industries and regions
- Held a national workshop on Environmental Management Systems in Agriculture to provide guidance on future research agenda in this area. The proceedings report on trials and effectiveness of accredited systems in various industries including overseas.
Analytical processes for conceptualising/ developing new agricultural systems
- Began a review of Environmental Partnerships as a means of combining sustainability and economic advantage in the commercial sector.
- Participated in a project called Irrigated cropping advance 2000 which aims to develop and implement best practice in the irrigation Industry.
The development of new agricultural systems
- Testing the use of saline ground water to grow marine fish, and culture beta-carotene.
- Preparation of a report and strategy for integrating aquaculture with other agriculture systems including effective use of irrigation water.
- Trialed the use of Distichlis for rehabilitation of highly saline areas for grain, turf and grazing.
The development of adaptive responses and new opportunities for rural industries related to climate change and variability
- Further developed Australian Rainman to improve management of climate variability.
- Continued involvement in the National Climate Variability Lands Program.
Improved management of pest-related constraints and risks
- Development of a national electronic modeling network for pest, disease and weed management.
- Development of a monitoring service for nematode pests.
Safe use of biotechnology to improve profitability and sustainability
- Isolation and characterization of gene/enzyme systems that can detoxify pyrtheroid insecticides. Some of the enzymes have been developed to point of laboratory scale proof of concept trials Agreement has been developed with Orica (formerly ICI) for testing industrial production.
The identification of policies and institutions that are more responsive to the needs of sustainable and profitable agricultural systems
- Completion of a study on land use in northern Australia that indicates the interaction between and the impact of markets, policy and climate change.
Continued a project that is applying climate change scenarios to water resource forecast policy issues.
Our ability to demonstrate that average benefit–cost ratios of 10 and/or internal rates of return greater than 25 per cent can be achieved for R&D projects The Corporation has a four-year rolling evaluation program and the three sub-programs in Program 4 are scheduled for inclusion in this evaluation process in 2000/2001.
4.3 Human Capital, Communications and Information Systems We will measure our success by:
The establishment of R&D plans that address the needs of stakeholders
- Five Year Plan for Farm Health and Safety component issued.
The adoption level of results from our research projects
- Greater attention is being paid by RIRDC Research Managers to ensuring that individual projects are structured to improve the uptake of their results.
The increased use of the Internet and other new information and communication systems by farmers to improve farm management
- Release of four reports on aspects of Internet use by farm businesses. Pilot project on the delivery of the AUSIM Crop Simulation Model through the Internet demonstrates farmer acceptance of this method of delivering information.
Improved communication between end users (including farmers) and researchers
- The Corporation adopted a new communications strategy, and published a report on the communication planning requirements and evaluation procedures of research funding agencies.
The increased responsiveness of policies and institutions involved in agricultural education and communication
- Research will provide improved information for policy making and learning institutions on how farmers access management and market training. A report on evaluation techniques for extension programs was published.
Better practices for farm health and safety
- Completed a study on current and potential initiatives addressing the barriers to the adoption of farm safety practices.
Up to three new rural leaders trained per year and contributing to RIRDC industries
- Two scholarships were awarded for participation in the Australian Rural Leadership Programs and support was provided for participants in a course for rural decision makers run by the Institute of Company Directors.
Up to five research post-graduates per year contribute to RIRDC industries
- Five post-graduate scholarships were awarded in 1998/99 .
Our ability to demonstrate that average benefit–cost ratios of 10 and/or internal rates of return greater than 25 per cent can be achieved for R&D projects
- The RIRDC Board has approved a detailed benefit-cost analysis of projects in this sub-program in 2000/2001.
4.1 Global Competitiveness
Objective: To identify important impediments to the development of a globally competitive Australian agricultural sector and support research that will lead to options and strategies that will remove these impediments. Expenditure in 1998/99: $609,415
Strategies
Background
- Support analyses identifying new opportunities in the marketplace. Develop collaborative links with the Government’s ‘Supermarket to Asia’ initiative. Develop a research program supporting the development of a more globally focused competitive food sector.
- Support analyses focusing on domestic impediments to industry performance, thereby enhancing export performance and an export culture, particularly in those industries that have had a domestic focus.
- Develop options and strategies improving global competitiveness of the agricultural sector by improving the current set of trade policies and therefore removing existing trade barriers.
- Develop a better understanding of domestic and international markets for agricultural products when there is a clearly established market failure in the provision of such information.
- Support analyses of the linkages between various stages in the producer to consumer chain and identify areas -regionally, domestically and internationally - where these linkages can be better integrated and their efficiency improved.
- Evaluate other existing and alternative policies and institutions affecting the development of a globally competitive agricultural sector.
International trade liberalisation and the general globalisation of the world economy during the past two decades has meant that all countries have had to focus attention on ensuring that their industries are globally competitive.
Many studies have highlighted the substantial benefits to the world that can be gained from this liberalisation. Some have shown that the Australian agricultural sector in particular stands to gain billions of dollars in welfare gains from this process.
While the evidence for these longer term gains is clear, the processes involved in achieving them can often be complex and difficult to understand. They will, in many cases, present challenges that many businesses and community groups are not familiar with.
RIRDC believes that research can provide improved understanding in many areas that will support the process of liberalisation and ensure that the benefits from it are maximised and the difficulties associated with the change minimised.
It believes that the nature of much of the research related to understanding the processes for the change has public good characteristics and therefore will not necessarily be undertaken if left to the private sector.
Achievements in 1998/99
Publications in 1998/99
- Trade policy reports:
- Published three reports on the implications of trade policy changes for Australian agriculture and the Australian economy in general.
- Asian market reports:
Published several reports on Asian market prospects for Australian exporters, developed in collaboration with the Government’s Supermarket to Asia initiative.- Compendium of Asian festivals and customs:
Produced a compendium of Asian religious and cultural events and customs that impinge on food consumption patterns and are potentially important to firms contemplating entering markets in Asia.- Structural change in farm inputs:
Analysed structural change in the Australian farm input supply sector and implications for improved efficiency in the agricultural sector.- Indirect taxation report:
Produced a report that assessed the impact of indirect taxation on the farm sector and implications of possible changes.- Agribusiness leader training:
- Produced a report outlining the results of an innovative approach to hands-on experience as part of training for potential agribusiness leaders.
- Global competitiveness publication flyer SR49 Asian economic crisis strategies for Australian agrifood comapnies SR56 Structural changes for the farm inputs industry 98/77 Trojan horse or more horsepower? 98/97 Global Competitiveness: Research in Progress 98/106 Liberalising world trade in agriculture 98/110 Impact of indirect taxes on Australian farms 98/126 Collaborative marketing by agricultural producers 98/127 World agricultural products trade: towards a strategy for Australia 98/130 Economic change and agrifood developments in Indonesia 98/131 Economic change and agrifood developments in Malaysia 98/132 Economic change and agrifood developments in Republic of Korea 99/17 Structural change in the farm inputs industry 99/42 Agribusiness opportunities in Kalimantan & Sulawesi Research Manager: Dr Jeff Davis
Phone: (02) 6272 4152 Fax: (02) 6272 5877 Email: jeffd@rirdc.gov.au
4.2 Resilient Agricultural Systems
Objective: To enable agricultural production systems that have sufficient diversity, flexibility and robustness to be resilient and respond to challenges and opportunities. Expenditure in 1998/99: $1,392,072
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/ras5yr.htm
- Through new approaches to agri-industry production, develop systems that are compatible with environmental sustainability, and deliver viable economic outcomes. Evaluate economic and other returns to Australian stakeholders of proposed systems, including the global competitive advantage. Research methods of addressing the impediments to achieving sustainable agri-industry systems.
- Use scenario planning processes and tools to assist strategic planning and identify issues impeding structural adjustment. Include consideration of improved financial systems, use of alternative capital structures for Australian agriculture, development of decision support systems and risk management tools.
- Research the management implications of new technology systems for agri-industry, especially in the areas of genetic engineering of plants and animals, precision farming and information management, particularly through the development of case studies and development of decision support software associated with the management of new technologies.
- Provide the R&D base to underpin the development of internationally acceptable accreditation systems for sustainable agricultural production and new and emerging agri-industry systems.
Background
The new strategic plan for Sub-Program 4.2 was developed in the context of Australia’s rural industries undergoing a period of rapid change and the need for a strong underpinning of innovation.
Some changes are resulting from global trends that are significantly altering the operation of the agri-industry system. Other changes are resulting from the realisation that some historical approaches to agriculture in Australia have caused significant environmental problems.
Most changes are not marginal. They involve paradigm shifts that require strategic research with new parameters and a focus on applied outcomes integrated with improved systems.
The key trends impacting on Australia’s rural industries include:
Achievements in 1998/99
- a shift from a production-driven approach to a market-driven approach.
- reduced government involvement in agriculture and rural services and increased privatisation - this includes resourcing of research.
- increased globalisation resulting in greater competition.
- growing power of transnational companies especially in food industry research, processing and marketing.
- an exacting range of demands by consumers including product consistency, choice and most recently sustainability of production.
- an imminent revolution in technologies applied to agriculture including genetic manipulation of plants and animals, precision farming and information management involving a trend to patented input systems.
- the development of an industrialised system of agriculture with increased vertical integration, a systems approach to agri-industries and implementation of industrywide quality assurance.
- concern for the environment, especially the issues of water quality and quantity, soil salinity, acidification and degradation, air quality and climate change.
- reduction in the number of mainstream commercial farms, increasing farm size, a rise in the number of part-time farmers and significant ongoing structural adjustment in agriculture.
- an increase in the ‘critical mass’ for specific agricultural industries, which is required to support up-to-date infrastructure, information systems, processing and marketing.
- focus on farming as a highly competitive business.
- a negative image of agriculture arising from environmental and food safety concerns.
- a need to rapidly develop the human resources in agri-industry systems to manage the changes.
Publications in 1998/99
- Updated Rainman software:
Further developed Australian Rainman to improve management of climate variability. Continued involvement in the National Climate Variability R&D Program as a member of the consortium. This program aims to better prepare the agricultural sector to manage the vagaries of Australia’s climate through better information and implementing strategies based on self-reliance.- Developed molecular diagnostic techniques:
Developed molecular diagnostic techniques for soil-borne fungal pathogens. Made advances in the commercial development of a biomolluscicide and assisted in the preparation of management plans for the incursion of exotic pests and diseases so as to reduce the threat of non-tariff trade barriers (quarantine restrictions based on dubious pest and disease records) to Australia’s export industries.- Pesticide risk reduction:
Searched for bio-control agents for the weeds Serrated Tussock and Blue Heliotrope, identified opportunities for pesticide risk reduction in a range of Australian agricultural industries and reviewed the economic viability of a monitoring service for nematode pests in the Bundaberg region.
- Resilient agricultural systems five year plan 98/15 Impact of rural subdivision on agriculture 98/37 Better planning for rural development 98/67 Managing soil biology to optimise resilience and sustainability in agro ecosystems 98/68 Sustainable horticulture using in-situ mulches 98/98 Resilient agricultural systems: research in progress 99/10 Survey of cadmium levels in vegetables and soils of greater Sydney 99/12 Maximum yield research: assessing limitations to farming systems 99/18 Managing soils in agriculture – impact of soil tillage practices 99/14 Drought in the 1990s 99/24 New methodology for lime requirements 99/25 Improving crop growth and water use efficiency 99/41 Advisory services for nematode pests Research Manager: Dr George Wilson
Phone: (02) 6281 2160 Fax: (02) 6285 1195 Email: gwilson@awt.com.au
4.3 Human Capital, Communications
and Information Systems
Objective: To enhance human capital and facilitate innovation in rural industries and communities.
Expenditure in 1998/99: $1,516,000
Strategies
This sub-program has a five year R&D plan for farm occupational health and safety, which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/ohs5yr.htm
- Develop electronic communication systems with emphasis on responsiveness to farmers’ needs.
- Further investigate farmer education and training, particularly delivery mechanisms and the links between formal and informal sectors.
- Investigate rural social issues and issues relating to rural communities both in towns and on farms.
- Evaluate existing and alternative policies and institutions affecting the development of a more innovative rural sector.
- Support farm occupational health and safety research focusing on improved uptake mechanisms, data, hazard profiles for each commodity group and design.
- Develop research and leadership capabilities through postgraduate scholarships, support for the Australian Rural Leadership Program and support for strengthening the role and profile of rural women.
Background
In the past, significant productivity gains in agriculture were achieved by adopting new technical products or processes.
Today productivity growth requires the adoption of a range of new skills and activities in addition to new production technologies.
Growth now involves investing in human skills and education, analysing and using information, developing quality systems, marketing products, financial, technical and personnel management and adapting the institutional organisation and structure of the industry. Links between farmers and the regional society in which they live are also important to the continuing development of vibrant rural communities.
The current era is known as the information age. In OECD countries, the information sector accounts for one-third to one-half of gross domestic product and of employment. Information and the skills, knowledge and systems to apply it to management are required for Australia’s rural industries to become more innovative.
Innovation is necessary in order to maintain a competitive edge in today’s global markets. The better the quality of information and the more targeted and accessible it is to appropriately skilled farmers, the more successful the agricultural sector will be.
This program focuses on developing effective, accessible, client-centered information, communication and education systems and processes. It will fund underpinning R&D which will enhance the capacity of farm managers to identify, acquire and apply the skills and information needed to improve the performance of their farm businesses both in terms of profitability and sustainability.
The program also aims to enhance human capital available to rural industries through improved practices for farm health and safety, research related to social issues in rural communities and households and the provision of scholarships for rural leadership and postgraduate research.
Achievements in 1998/99
Information and communication systems
Completed a report on current and future use of personal computers by farmers.
- Published a series of four reports on aspects of the development of Internet services for Australian farm businesses and their impact on the farm sector.
- Completed a study on the availability and use of computer-aided learning resources for agricultural education and training.
Farmer education and training
- Commenced a project to update the website for The Australian Farmer's Guide to the Internet.
- Supported a conference that identified key future rural communications issues.
Issues relating to rural communities
- Completed an interim report on how farmers learn farm management and marketing skills.
- Published a report on techniques for evaluating extension programs.
Evaluate existing and alternative policies and institutions
- Completed a report on the medium term impact on the career behaviour of participants in the Young Achievement Australia Enterprise Development Program.
Farm occupational health and safety
- Completed study on the impact of tax-driven financial investment on new industry development.
- Finalised a strategic plan for this research area.
- Finalised a study on current and potential initiatives addressing the barriers to the adoption of farm safety practices and the evaluation of the initial implementation of a national initiative.
- Supported the Kondinin Group study on farm machinery safety.
Farmer Adoption of New Technology
as at March 1998
Leadership
Scholarships
- Awarded two scholarships for participation in the Australian Rural Leadership Program.
- Provided support for participants in a course for rural decision makers run by the Institute of Company Directors.
- Supported Heywire, the ABC Rural Youth Award.
- Awarded four new scholarships for Ph.D. studies in RIRDC-related areas of study.
Publications in 1998/99
- Farm occupational health & safety plan - Rural Australia online newsletter (1 issue) SR58 Farmers and the internet SR43 Mental models and communication in agriculture SR44 Improving farmers’ management practices through learning and group participation 98/19 Seasonal intelligence for rangeland managers 99/31 Managing farming: how farmers learn 98/71 Improving farmers’ management practices 98/99 Human capital research in progress 98/117 Creating effective reports for busy decision makers 98/120 Computer aided learning in agriculture 98/140 Mental models and communication in agriculture 99/2 Demand and supply of internet content for Australian farm businesses 99/3 Buying and selling online 99/4 Online education and training for Australian farmers 99/5 Standards for horticultural information 99/13 Computers on the farm – farmers’ usage patterns 99/54 Communicating research Research Manager: Mr Tony Byrne
Phone: (02) 6272 4033 Fax: (02) 6272 5877 Email: tonyb@rirdc.gov.au Contact for RIRDC Scholarships:
Mr Claudio Ciuffetelli
Manager, Business & Finance
Phone: (02) 6272 4656 Fax:
Email:(02) 6272 5877
claudioc@rirdc.gov.auContact for Australian Rural Leadership Program:
Mr Mike Beckingham
Phone: (02) 6281 0680 Fax: (02) 6285 4676 Email: arlp@iacom.com.au