2000 ANNUAL REPORT - Contents Page

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Program 1

Prospective New Industries

Objective:  To investigate and to develop prospects for new industries in rural and regional Australia.

Expenditure in 1999/2000: $2,453,054

Our Five Year Plan 1997–2002 has the following performance indicators for Program 1.
Some key performance indicators and achievements in 1999/2000 were as follows:
 
Program 1 
Prospective New Industries
We will measure our success by:
Performance in 1999/2000 
The development of sustainable new industries
  • Completed a study advocating that bushfoods will be better positioned in the market if they are renamed native Australian foods and are supported by consumer education and promotion.

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  • Assisted the newly formed Australian Culinary Herbgrowers Association to draft an R&D plan.

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  • Completed a study on the market prospects for the Australian olive industry.

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  • Released a number of reports on various aspects of camel meat production, processing and marketing.

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  • Assisted in the formation of the National Buffalo Industry Council, the Kangaroo Industry Advisory Council and the Australian Goat Milk Association.

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  • Produced an ostrich software program to assist management on-farm.
  • Industry adoption of the results of research that we organise and support
  • Provided the major sponsorship for the Triennial Lychee Conference at which reports were given on several RIRDC-funded projects.

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  • Published reports on various aspects of producing bushfoods, herbs, olives, sugar beet, buckwheat, asparagus and truffles.

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  • Published 12 final reports on various new animal industries or products, including new methods of immobilising crocodiles and treatment of crocodile skin diseases.
  • Achievement of average benefit–cost ratios of two and/or internal rates of return greater than 15 per cent on R&D projects
  • A major benefit- cost study of 21 new industries’ projects was undertaken in 1999/2000. This found rates of return ranging from 6 to 230 per cent, with all but three exceeding the target rate of 15 per cent. It also found benefit-cost ratios between 1.1 and 36, with all but two exceeding the target rate of 2.
  • The level of industry funding support for our research programs
  • Cash contributions to RIRDC projects made by cocoa, coffee, culinary herbs, durian, lychee, olive, pet food and rambutan industries.

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  • The kangaroo industry has organised a voluntary contribution of funds, commencing in 2000/2001, and is seeking approval for a statutory levy system.
  • The growth in industry outputs over a 5–10 year period
  • NSW coffee industry projected to be worth $18 million at the farmgate by 2010.
  • Herb industry estimated to have a farmgate value of $25 million a year.
  • Exports of ostrich and kangaroo meat are increasing substantially and production of dairy goat milk continues to rise, particularly in the southern states.
  • Investment priorities for sub-programs of Program 1 – Prospective New Industries

    1.1 New Plant Products

    Objective: To facilitate the development of new industries based on plants or plant products that have commercial potential for Australia.

    Expenditure in 1999/2000: $1,526,411

    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 seedbed 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.

    Strategies

  • 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 initiatives to underpin industry growth.

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    R & D Plans
    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.

    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

    Key outputs in 1999/2000

    Publications in 1999/2000 
    99/85 Australian jojoba products - Discovering their market potential 
    99/86 The Olive Industry: a Marketing Study
    99/107 NPP research in progress
    99/119 Hemp and other natural fibres - today and tomorrow
    99/142 Storage of culinary herbs
    99/149 Commercial production of medicinal herbs in Tasmania
    99/150 Lathyrus – a new grain legume
    99/158 Improving access to bushfood production and marketing information
    99/160 Market opportunities for non-wood fibre crops
    00/5 Opportunities for New Agricultural Industries
    00/15 Information System for the Cashew Industry
    00/22 Asparagus - Productivity response to droughting in tropical environment
    00/24 The effect of nitrogen on cashew in north Qld
    00/29 Lychee, Longan and Rambutan - Optimising canopy management
    00/38 The food safety of three species of Native Mint
    00/61 Marketing the Australian Native Food Industry
    00/58 High Yielding, Virus-free Garlic for Greater Profits
    00/60 Business Plan for the NSW Coffee Growing Industry
    SR 69 Storage of culinary herbs
    SR 70 Development of Lathyrus as a new grain legume

    GARLIC
    Garlic has long been cited as having a range of health benefits, in particular, the capacity to lower blood cholesterol. Scientists have linked this effect to the compound allicin. Garlic has the added benefit of having few known side effects and there is a multi-million dollar global business in the production and sale of cholesterol lowering drugs and other treatments.

    Previous commercial research had shown that one of the problems in using garlic as the raw commodity basis for cholesterol lowering drugs was inconsistency. The yield of allicin from garlic bulbs was often low and fluctuated from batch to batch causing the extraction process to become uneconomical.

    RIRDC funded a project through Agriculture Victoria to study the varietal, production and storage conditions that affect the level of allicin extracted from garlic. The project showed that Australian garlic has very high levels of allicin by world standards. The project also optimised a range of garlic varieties, production areas and management practices for allicin formation and crop yield. 

    The demonstration of the high quality of Australian garlic has provided a strong opportunity for the re-positioning of Australian garlic on world markets. This has been evidenced in recent market developments with the export of high quality Australian garlic to the United States.


      
    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 1999/2000: $926,643

    Background

    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 1999/2000 the Corporation funded specific projects for fifteen of these industries. Other individual projects covered a broad spectrum of species and their products. Projects are increasingly covering R&D across the value added chain. For the very small industries, initially 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 1999/2000 for snails, hares and crayfish.

    Strategies

  • Identify R&D priorities.
  • Facilitate export market access and development.
  • Fund production, processing, transport and storage R&D on animal products.
  • Strengthen development within and across industries by supporting creativity, innovation and integration along the value-added chain
  • 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 releases.
  • Key outputs in 1999/2000
  • Facilitated industry research and development, particularly for ostrich, buffalo and kangaroo, by funding national and international travel, supporting national meetings and the formation of appropriate councils.
  • Released a number of reports on various aspects of camel meat production, processing and marketing. Three documents were published concerned with the handling of camels and meat trading language and meat specification. A pre-feasibility study of a potential camel industry in WA indicates opportunity. A marketing analysis and plans were developed for camel meat distributors and the wholesale/retail trade in the domestic market.
  • Completed an analysis of the feasibility of farming rabbits now that the supply of wild rabbits has been greatly reduced due to the control program using the calicivirus. Results support the need for research to improve the production system to ensure profitability.
  • Produced an ostrich software program to assist management on-farm including objective assessment of the potential profitability and the effect of economics of scale.
  • Developed and demonstrated to industry a stunning device that immobilises crocodiles and allow safe treatment and measurement under experimental conditions.
  • Identified export markets for goat cheese products to utilise a milk surplus in the spring.
  • Scanned cartilages of a number of livestock – eg emu, crocodile, kangaroo, ostrich – to complement the supply of shark cartilage that is purported to have anti-cancer properties.
  • Identified issues that prospective animal industries experience as development occurs. Marketing and processing constraints and impediments hinder many of the industries partly because of the lack of alliances along the supply/marketing chain.
  • Published reports on strategies, particularly related to nutrition, for emu for meat and oil production.
  • Reported on the therapeutic properties of emu oil. Using rat modules anti-inflammatory properties of the oil were demonstrated. Research continues on identifying the potent constituents. Experiments showed limited evidence of antimicrobial effects of oil samples and there was insufficient responses to support tissue regeneration properties.
  • Obtained sound scientific data on the implications of declawing emus by measuring the effects on gait, behaviour and histological examination for the presence or absence of neuromas.
  • Published reports on the feasibility of viable enterprises for silkworms, hares and snails.
  • Published an analysis and business plan on the marketing of quality buffalo meat in Southern Australia.
  • Analysed the potential and scope of camel racing in Australia in light of public interest, increasing prize-money and the possibility of support from international interests.
  • Published 12 Final Reports, launched a buffalo marketing analysis at an industry meeting and provided articles for inclusion in general RIRDC publications.
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    BUFFALO SUB-ACCOUNT
    ACTUAL
    1998/1999 ($)
    1999/2000 ($)
    Opening Balance
    89,406
    67,082
    Total Revenues
    18,876
    18,956
    Total Expenditure
    41,200
    10,245
    Surplus/(Deficit)
    (22,324)
    8,711
    Closing Balance
    67,082
    75,793
    Publications in 1999/2000 
    99/69 Development of speciality dairy products from sheep milk 
    99/71 Australian Buffalo Industry - Market Research and Feasibility Study
    99/89 Australian Farmed Rabbit 
    99/108 NAP research in progress
    99/117 Ostrich enterprise budgeting software
    99/118 Developing a sustainable camel industry – Western Australia and Northern Territory
    99/120 Australian camel racing 
    99/121 First national new rural industries conference
    99/132 Emu Oil – its Antimicrobial and anti-viral potential 
    99/133 Emu oil – its anti-inflammatory properties
    99/134 Growing juvenile ostrich in a grazing environment
    99/143 Emu products – increasing production and profitability
    99/177 Declawing of farmed emus – harmful or helpful?
    00/9 Marketing Analysis and Plan for the Camel Industry
    00/17 Novel Drugs from Toad Skins
    00/21 Improving the quality of Australian crocodile skins
    00/31 Year round supply of Goat Milk
    00/37 Emu Farming – Development of reproductive technology
    00/35 Cartilage Co-products – Commercial development of alternative production species
    00/56 Potential for Silk Production in Australia
    Research Manager: Dr Peter McInnes
    Phone:  (08) 8556 7331 
    Fax: (08) 8556 7289
    Email: mcinnes2@intertech.net.au

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    Last updated: 5 October 2000
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