Rural Industries Research & Development Corporation

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Program 2

Emerging New Industries

• Asian Foods
• Agroforestry & Farm Forestry
• Deer
• Essential Oils & Plant Extracts
• Organic Produce
• Rare Natural Animal Fibres
• Tea Tree Oil
• Wildflowers & Native Plants

 

Objective: To expedite the growth and development of emerging new rural and associated processing industries.
Expenditure in 1998/991999/2000:1998/99: $5,604, 5,630,955

Our Five Year Plan 1997–2002 has the following performance indicators for Program 2.

Some key performance achievements in 1999/2000 were as follows:

Program 2  Emerging New Industries We will measure our success by:	Performance in 1999/2000
The growth in emerging industries over a five year period	Recent growth in the production of Asian vegetables has been strong, with a trend towards increased scale and mechanisation. Prices for mohair and cashmere continued to rise.
Our establishment of R&D plans that address each industry’s agreed strategies and goals	A Five Year R&D Plan for the Asian Foods Sub-program was released in April 2000. All sub-programs in Program 2 now have their own Five Year Plans.
The level of industry funding support for the research programs we establish and support	Voluntary industry funds accounted for 56 per cent of the 1999/2000 tea tree oil R&D sub–program despite a sharp reduction in producer prices. Cash contributions were made on a project by project basis to both 2.4 Essential Oils and 2.8 Wildflowers and Native Plants. The alpaca industry contributed funds to support project funding.
The level of the adoption by industry of the results of research we organise and support	Industry involvement is integral to a project on supply chain management for the commercial bamboo industry. A new project has been commenced on communicating with non English speaking growers of Asian vegetables. A new guideline series has been developed to communicate the outcomes of key agroforestry research projects. A new manual on venison specifications and language has been produced. Regional industry development seminars were conducted in all states to raise awareness of organic opportunities and make linkages to industry participants. Reported to industry the various production performances and fibre characteristics of alpaca raised over four years on a number of commercial farms. A pilot project was completed on Do Our Own Research (DOOR) in WA and Queensland, which showed that growers can undertake certain types of research themselves.
Achievement of an average benefit–cost ratio of five and/or internal rates of return greater than 20 per cent on R&D projects	A major benefit–cost study was undertaken 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 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.

Investment Priorities for Sub–programs of Program 2

2.1 Asian Foods

Objective: To foster the development of a viable Asian foods industry in Australia.

Expenditure in 1999/2000: $570,459

Background

Asian vegetables are mainly grown for domestic consumption, with production concentrated on the outskirts of the main state capital cities — Sydney, Melbourne — and the Sunshine Coast. There is, however, a small growing export sector, historically exporting Chinese cabbage to Asian markets but evolving to exporting a wider range of high quality vegetables.

The market for Australian-grown Asian vegetables in many Asian countries is potentially large. For instance, Japan imports $2.3 billion of fresh, frozen, preserved and dehydrated vegetables each year.

Opportunities for Asian food arise out of:

The rapidly growing markets in Asia for high quality food products as incomes in this region rise.

The increasing Asian influence on cuisine in Australia.

Australian producers’ ability to undertake high quality volume production and their ability to find niches that give them a competitive advantage to supply these markets.

Foods other than vegetables, particularly processed foods, are popular and opportunities include sauces, ready-made meals, and possibly snacks.

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. Increasing attention to industry development can be expected in the future.

This program now has a new five year plan developed in close consultation with Australian producers, processors, marketers and researchers following extensive review.

Strategies

Industry development

Support industry development through improved information, communication and development of supply chain and marketer networks.

Develop new products with good market opportunities.

Production systems

Provide troubleshooting solutions and enhance quality and productivity through research in production systems and plant physiology.

Ensure chemical use is safe for workers and consumers.

Post-harvest treatment and handling

Increase shelf life of fresh and semi-processed products.

Improve cool chain management.

Key outputs in 1999/2000

Completed a review of the Asian Foods Sub–program.

Held a workshop of industry and research stakeholders and developed a five year research and development plan for the program.

Produced a report showing how better post-harvest handling of specialty mushrooms can add value and increase shelf life.

Reported on case studies evaluating the commercial viability of Asian vegetables export opportunities.

Publication of a report on Australian growing, postharvest and processing procedures for oriental chilli.

Further publication of the Asian Food and Asian Vegetables newsletters.

Publications in 1999/2000

99/116	Asian Foods Research in Progress
99/135	An assessment of the prospects for selected Australian Asian vegetables
99/136	Bamboo development - for the Asian stir fry export market
99/137	Chinese cabbage - cultivar evaluation – Victoria 1997
99/138	Indian condiments and pickles – opportunities for commercial production in Australia
99/159	Leafy Asian vegetables - extending their shelf life
00/33	Chilli Spice Production in Australia
00/39	R&D Plan for the Asian foods Industry.

Research Manager: Mr Tony Byrne

Phone:	(02) 6272 5472
Fax:	(02) 6272 5877
Email:	tonyb@rirdc.gov.au

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2.2 Agroforestry and Farm Forestry

Objective: To integrate sustainable and productive agroforestry within Australian farming systems.

Expenditure in 1999/2000: $3,057,505

Background

Agroforestry has the potential to provide multiple benefits simultaneously. It can 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 "multiple benefit" nature of agroforestry makes it ideal for collaboration between R&D partners with varying priorities. Development of a joint approach ensures that outcomes from agroforestry R&D expenditure are balanced amongst the benefits by focussing resources on a set of priorities agreed by all partners.

The Joint Venture Agroforestry Program (JVAP) was established in 1993 with three partners: Rural Industries Research and Development Corporation (RIRDC), the Land and Water Resources Research and Development Corporation (LWRRDC) and the Forest and Wood Products Research and Development Corporation (FWPRDC).

Funding was also provided for some activities by the Murray Darling Basin Commission (MDBC) , the Grains Research and Development Corporation (GRDC) and the Department of Agriculture, Forests and Fisheries – Australia (AFFA) .

In February 1998 the Minister for Primary Industries and Energy provided $4 million to the program, sourced from the Natural Heritage Trust (NHT) , through the Farm Forestry Program (FFP) .

The JVAP has a key role in initiation and coordination of research and development. Priorities vary between regions. Where commercial agroforestry is already well advanced, the JVAP assists the removal of remaining policy and institutional impediments and helps to rectify market failures.

The JVAP recognises that future commercial agroforestry investments, particularly in the medium to low rainfall regions, are subject to considerably greater risk than other commercial land use enterprises with proven production systems and more transparent commodity markets. R&D intervention can help reduce this risk by quantifying land, water, biodiversity and social responses to agroforestry systems and developing new products from trees in low to medium rainfall areas. Therefore the JVAP places a high priority on farm forestry in low - medium rainfall areas.

The Joint Venture Agroforestry Program has managed the Biomass Taskforce since 1998. This taskforce fosters and facilitates the development of biomass for energy, liquid fuels, and a chemical feedstock. The name of the taskforce has now been changed to Bioenergy Australia. Membership has grown to 34 members. The sustainable development of a biomass industry in Australia is an important new area of R&D within the JVAP.

Strategies

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.

Develop effective communications.

 

his 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

Key outputs in 1999/2000

General

Held a workshop to develop a framework for the development of Biomass as an energy resource. series of research projects which address strategic knowledge gaps in this area were developed.

Developed a new guideline series to communicate outcomes of key research projects. The guideline series will provide more quantitative information than the previously published Design Principles for Farm Forestry and include state of the art research results.

Developed a series of research projects designed to investigate the impact of agroforestry and farm forestry systems on biodiversity.

Targeted strategies for implementation of farm forestry

Implemented the Seed and information support for commercial farm forestry project which is jointly funded by the JVAP and the Commonwealth Farm Forestry Program. The project provided advice to a wide range of individuals and farm forestry groups from every state and territory.

Completed a review of farm forestry market information services. The project identified target users, information to be provided, delivery methods, skills required, systems management and outlines an approach to the implementation of such a service.

Published a quarterly ANU Forestry Market Report. Publication of a short report containing the first 8 Market Reports.

Published Practical farm forestry economics: whole farm case studies containing 10 case studies from around the country describing a range of agroforestry systems. Each case study presents an economic analysis of each system and discusses the potential social and environmental implications.

Commissioned a study to assess the socio-economic implications of the introduction of agroforestry systems to rural areas.

More sustainable management of natural resources

Published a discussion paper which investigated whether and how biodiversity conservation objectives can be incorporated into commercial farm forestry developments.

Published a report which reviewed the current knowledge of biophysical, and socio-economic processes associated with agroforestry systems. This can be used as a basis to determine methods to evaluate the effectiveness of vegetation management programs.

Published preliminary guidelines to optimise biodiversity values when designing large softwood plantations.

Completed a pilot study to evaluate the potential for trees to be established on non-arable land to replace weeds.

Optimised productivity of crops and pasture

Published a report that assesses the interaction between E. globulus alley systems and pasture production.

Optimised direct returns from tree products

Published the proceedings of the National farm tree improvement program workshop.

Completed a review which identified the opportunities for growing conifers in low rainfall areas of Australia including preliminary analysis of the potential economic and social benefits generated by these forestry systems in low rainfall areas.

Ongoing development of physiologically based growth and yield models to make them more applicable to a wide range of agroforestry systems.

Completed and published a report detailing the evaluation of a novel nutrient system for improved growth of tropical cabinet timbers.

Published a report containing new models describing the correlations between tree growth rates and site parameters. These models may be used in conjunction with economic models to undertake more sound evaluation of the potential economic returns from farm forestry activities.

Cost effective Multi-purpose Agroforestry Systems

Supported the second phase of the Master TreeGrowers' program.

Completed a guide for designing agroforestry and farm forestry systems to maximise the potential benefits to catchment health and optimise productivity.

Developed a multi agency project to develop a decision support tool for farm forestry.

Published Trees on Cotton Farms – a guide to assist cotton farmers decide how, when, where and why to plant trees.

Publications in 1999/2000

99/66	National low rainfall tree improvement workshop
99/81	The farmer’s log 1999
99/99	Practical farm forestry
99/130	Determining the effectiveness of vegetation management programs
99/151	Agroforestry from existing timber resources on the northern tablelands
99/152	Commercial prospects for planted tree species in the low rainfall zones of Australia
99/154	Agroforestry calculator – user manual
99/164	Agroforestry and farm forestry research in progress
99/165	Effects of trees on native pasture production on the Southern Tablelands
99/166	Integrating farm foresty and biodiversity
00/12	Native Regrowth - A farmer’s guide to maintaining biodiversity when thinning regrowth forest
00/46	Harvesting trees on farms
00/47	Tannin and fuel wood from plantation grown bipinnate acacias
SR 65	Forestry market report
SR 67	Windbreaks – increasing crop growth on the Atherton Tablelands
SR 68	Integrating Farm Forestry and Biodiversity
SR 77	Guidelines for biodiversity conservation in new and existing softwood plantations

AGROFORESTRY SUB-ACCOUNT
ACTUAL	1998/1999 ($)	1999/2000 ($)
Opening Balance	276,498	805,356
Total Revenues	3,494,887	3,029,568
Total Expenditure	2,966,029	3,275,904
Surplus/(Deficit)	528,858	(246,336)
Closing Balance	805,356	559,020

Research Manager: Dr Roslyn Prinsley

Phone:	(02) 6272 4033
Fax:	(02) 6272 5877
Email:	roslynp@rirdc.gov.au

Assistant Research Manager: Ms. Sharon Davis

Phone:	(02) 6271 6671
Fax:	(02) 6272 5877
Email:	sharond@rirdc.gov.au

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2.3 Deer

Objective: To foster an Australian deer industry as a profitable and efficient mainstream agricultural enterprise.

Expenditure in 1999/2000: $279,931

Background

The Australian deer industry has an estimated gross value of production of around $5 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 to 1500 tonnes, with around 90 per cent exported. Deer horn/velvet production has increased in recent years to an estimated 23–25 tonnes a year. The Australian Deer Horn and Co-Products Ltd continues to market the majority of the industry's production. The majority is exported but an increasing quantity is processed in Australia and New Zealand before being sold on international or domestic markets.

Effects of the Asian downturn were still apparent in the early months of 1999/2000. However, an improved European demand for venison saw prices increase toward the end of 1999 when peak prices (hot carcass weight less the industry levy) for prime carcass rose to over $3.00/kg. Although a seasonal softening in prices is expected in early 2000, observers suggest prices are likely to remain close to late 1999 levels or increase for the immediate future.

Data for the Australian Deer Horn and Co-Products Ltd show that average velvet antler prices in 1998/1999 rose by almost 65% (up about $15.00/kg to $36.50) above 1997/1998 prices. Average prices for the 1999/2000 season rose by almost 140% above 1998/1999 prices (from about $36.50/kg to $87.70). Observers of the international velvet antler markets suggest that prices may rise even further and will remain relatively high for at least two or three years. Demand has increased because of a reduction of stag numbers in New Zealand and relaxation of velvet import restrictions by Korea.

Strategies

Focus on increasing deer numbers by:

• increasing adoption of available technologies that have the potential to increase returns to producers from improved product quality; and
• increasing new interest in the industry from farmers of traditional livestock species.

Continue to guide the R&D program from its new (2000–2005) five-year plan. This plan is still being finalised but will centre around:

increasing the size of the national herd;

improving the per unit production of Australian herds;

increasing adoption of known (nutrition) technologies;

developing markets for processed deer antler;

improving the average quality of venison and antler produced by the industry;

developing specialist international and domestic markets for Australian venison;

investigating non-chemical means of harvesting deer antler; and

improving confidence in industry representative groups.

Place particular emphasis on encouraging the adoption of research knowledge, particularly nutrition technologies, in an attempt to improve the international and domestic image of the quality of industry products and its ability to consistently supply them.

Communicate research outcomes and market their adoption to the deer industry through 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

Key outputs in 1999/2000

Developed documentation required for registration of industry quality marks for venison and velvet antler.

Produced new venison specifications and language manual.

Continued reporting of venison market and price information.

Negotiated a venison supply contract with a European partner.

Developed a new five-year R&D plan for consideration by the industry.

Continued expansion of the industry Quality Assurance program.

Increased sale of venison trim into domestic markets.

Identified niche Japanese markets for Australian venison.

DEER SUB-ACCOUNT
ACTUAL	1998/1999 ($)	1999/2000 ($)
Opening Balance	245,471	171,019
Total Revenues	250,832	493,099
Total Expenditure	325,284	321,482
Surplus/(Deficit)	(74,452)	171,617
Closing Balance	171,019	342,636

Publications in 1999/2000

99/92	Development of the deer industry as a major Australian livestock industry
99/101	Deer research in progress
00/19	Deer in Queensland – A Decision Support System
00/49	Eating Qualities of Venison from Red and Fallow Deer
SR 62	Ecchymosis – what causes it

Research Manager: Mr Peter Core

Phone:	(02) 6272 5920
Fax:	(02) 6272 5877
Email:	peterc@rirdc.gov.au

 
 

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