2000 ANNUAL REPORT - Contents Page

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Program 3
Established Industries
 
  • Chicken Meat
  • Eggs
  • Honeybee
  • Rice
  • Horses
  • Fodder Crops
  • Pasture Seeds
  • Objective: To maximise the contribution of R&D to the profitability and sustainability of the established rural industries for which RIRDC provides R&D management services.

    Expenditure in 1998/991999/2000:1998/99: $7,8,140,374487*
    *Includes the R&D program of the Dried Fruits R&D Council

    Our Five Year Plan 1997–2002 has the following performance indicators for Program 3.

    Some key performance achievements in 1999/2000 were as follows:
     
    Program 3 
    Established Industries
    We will measure our success by:
    Performance in 1999/2000 
    Our establishment of R&D plans that address each industry’s agreed strategies and goals
    · All sub-programs have current five year R&D plans that have been developed in close consultation with the appropriate industries.
    Industry funding support for the agreed plans through R&D levies or other dollar-for-dollar mechanisms
    · Five of the seven sub-programs have a statutory R&D levy-funding base. The other two, ‘Horses’ and ‘Fodder Crops’ have had proposals for a statutory R&D levy before the Government. The horse sub-program has a voluntary industry levy, which provides 50 per cent of the R&D funding.
    The adoption level of the results from our research projects within industry practice · Examples of R&D outcomes with significant adoption during the year include:
    - release of information on the locally developed V4 vaccine to provide Australian chicken flocks with immunity against Newcastle disease;

    - publication of all modules of the distance learning materials for the chicken meat industry;

    - a new training video produced to assist producers to manage feather cover and pecking problems;

    - information provided on strategies to rehabilitate layer flocks suffering a drop in production due to avian encephalomyelitis;

    - hospital assessment of the efficacy of ‘active’ honeys against infections in such conditions as ulcers, burns and bedsores;

    - release of the first parts of a new guide to rice production in south eastern Australia;

    - An innovative ground rig-spraying mechanism, developed as a substitute for aerial spraying;

    - produced the major book Feeding Horses in Australia and booklets on Respiratory Disease in Racehorses, Healthy Land – Healthy Horses, Training and Learning in the Horse Industry, Transport of Horses, Equine Pleuropneumonia (Travel Sickness), Drought Feeding of Horses and Reducing Dust in Horse Stables;

    - released new fodder varieties suitable for southern Australia; and

    - production of a report on the production cost structure for the temperate pasture seeds industry.


     
    Program 3 
    Established Industries
    We will measure our success by:
    Performance in 1999/2000 
    Achievement of average benefit–cost ratio of 10 and/or internal rates of return of greater than 25 per cent on R&D projects · A major benefit-cost study of 14 established industries projects was undertaken in 1998/99. This found rates of return ranging from 1 to 200 per cent, with most considerably greater than the Corporation’s target of 25 per cent. It also found benefit–cost ratios from 1 to 120 with all but two greater than the performance target of ten.
    CURRENT FUNDING SOURCES FOR PROGRAM 3
    Chicken meat Statutory Levy
    Eggs Statutory Levy
    Honeybee Statutory Levy
    Rice Statutory Levy
    Horses Voluntary levy/core
    Fodder crops Core only
    Pasture seeds Statutory Levy (temperate legumes only)

    Investment Objectives for Sub–programs of Program 3

    3.1 Chicken Meat

    Objective: To support increased sustainability and profitability in the chicken meat industry by focussing research and development on those areas which will enable the industry to become more efficient and globally competitive and which will assist in the development of good industry and product images.
    Expenditure in 1999/2000: $1,535,608

    Some Key Performance Indicators

    R&D Plan for the Chicken Meat Program 1998–2003. Adopted by Board Resolution No. 45-1998-15

    Background

    The Australian chicken meat industry currently produces approximately 594,000 tonnes of chicken meat annually with a retail value in excess of $2.5 billion.

    Production has increased dramatically over the past thirty years, to the point where chicken meat is now Australian consumers’ second most popular meat. Industry sustained growth of 3.6 per cent over 1999/2000 and continued growth of this magnitude is forecast for the year ahead. Most production is consumed domestically, although the industry has expanded its export markets in recent years.

    The industry is dominated by a number of quite large, vertically integrated companies. Each of these companies invests significant funds into in-house R&D, particularly in the areas of product development, processing technologies, quality control procedures, distribution and packaging and market research.

    A major challenge that the industry must face over the coming year is to manage the current Newcastle disease situation which threatens to effect both the industry’s long term productivity and efficiency and its favourable international image in terms of disease status.

    Over coming years, the industry must continue to restructure its operations in order to improve its international competitiveness. It will also need to address community concerns with respect to its environmental performance, particularly in terms of odour control.

    Food safety issues relevant to chicken meat products will continue to provide a major focus for the industry over this period.

    Strategies

  • Develop techniques to more effectively control poultry diseases, such as vaccines, diagnostic tests, epidemiological procedures, biosecurity measures and nutritional manipulations.
  • Develop strategies for improving the quality and utilisation of feed through the development of rapid nutritional quality testing techniques, identifying nutritional interactions with disease and the environment, investigating new or alternative feed ingredients and developing technologies that improve the rate and efficiency of broiler growth.
  • Establish critical control points and develop techniques for reducing contamination of live birds and poultry products with food safety micro-organisms.
  • Identify impediments to achieving an internationally competitive industry and develop strategies for addressing these.
  • Develop strategies to improve the image of the industry and its products in the eyes of the consumer.
  • Facilitate the adoption of best practice standards in animal welfare for the chicken meat industry.
  • Establish operational standards and develop strategies to improve the industry’s ability to successfully manage environmental issues.
  • Facilitate industry awareness and rapid adoption of new and improved technologies.
  • 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/chick5yr.htm

    Key outputs in 1999/2000

  • The rapid exclusion of exotic, very virulent infectious bursal disease as the cause of a poultry health incident in a poultry operation during the year using diagnostic tools developed in recent RIRDC projects, thereby avoiding considerable disruption to industry.
  • Responded proactively to international trends and concerns related to the use of antimicrobial substances in livestock production by initiating a program of research aimed at developing alternatives to antimicrobial growth promotants, with a particular emphasis on new control strategies for necrotic enteritis.
  • Responded in a timely fashion to industry’s evolving research needs in the area of Newcastle disease management.
  • Released valuable and timely information on the usefulness, limitations of, and the most appropriate means of administering the locally developed V4 vaccine to provide Australian chicken flocks with immunity against Newcastle disease.
  • Confirmed that the nutritive value of certain cereal grains for broiler chickens can, under certain conditions, be improved by a period of storage and quantified the range of improvements possible.
  • Demonstrated that by changing the overall levels and the ratios of different types of fat in broiler diets, the amount of lean muscle deposition vs fat deposition in broilers can be manipulated.
  • CHICKEN MEAT SUB-ACCOUNT
    ACTUAL
    1998/1999($)
    1999/2000 ($)
    Opening Balance
    1,802,699
    1,954,316
    Total Revenues
    1,731,698
    1,792,354
    Total Expenditure
    1,580,081
    1,662,036
    Surplus/(Deficit)
    151,617
    130,318
    Closing Balance
    1,954,316
    2,084,634

    Publications in 1999/2000
    99/129
    1998-99 Chicken Meat and Egg research report (Joint Report)
    00/2 Odour and ammonia emission reduction from chicken broiler growout farms

    Research Manager: Dr Vivien Kite
    Phone:  (02) 9929 4077 
    Fax: (02) 9925 0627
    Email: vivienk@rirdc.gov.au



    3.2 Egg

    Objective: To support improved efficiency, sustainability, product quality, education and technology transfer in the Australian egg industry.

    Expenditure in 1999/2000: $1,209,619

    Some Key Performance Indicators

  • Research reports that identify the implications of policy reform and changes in the economic environment.
  • Per capita egg consumption.
  • Level of confidence of human nutrition advisers and consumers in eggs.
  • Incidence of health-related problems.
  • Feed cost per egg.
  • Level of compliance of the industry with Codes of Practice.
  • Acceptance of objective data on the environmental impact of the poultry industries.
  • Knowledge base of industry personnel.
  • R&D Plan for the Eggs Program 1998–2003. Adopted by Board Resolution No. 44-1998-7

    Background

    The Australian egg industry comprises around 900 commercial producers, has an annual output of 220 million dozen eggs and a gross value of production of $340 million. Approximately 85 per cent of all eggs produced are sold in shell form, primarily through grocery chains. The balance is processed into liquid, frozen and dried egg products for use in the food service and processed food sectors.

    The industry continues to undergo significant structural development due to deregulation in a number of States. In general, individual enterprises are becoming fewer in number and larger in size and there is a trend for increasing vertical integration along the production chain. Increasing globalisation of markets and freeing of world trade is pressuring the industry to improve its international competitiveness.

    The industry is also becoming more sensitive to the requirements of their customers while consumers are becoming more demanding. This has lead to the development of an increasingly diverse range of product lines. Public perceptions and opinions have also brought issues such as food safety, animal welfare and environmental impact into the forefront. Animal welfare concerns have led to increasing markets for eggs from alternative housing systems, although the market share is still small with free range eggs commanding an estimated 5.5 per cent of the market and barn laid eggs a further 2.5 per cent.

    A review has been called by government into layer hen housing with Ministers to make decisions relating to animal welfare policy in the egg industry in August 2000. The outcomes of this review may have implications for future research and development.

    Codes of practice currently exist for food safety and animal welfare. RIRDC is currently working with industry to develop a biosecurity code of practice. These codes assist the industry to define and encourage adoption of acceptable management standards.

    Research into disease management has re-emerged as a high priority following recent outbreaks of a virulent Australian strain of Newcastle disease virus in NSW. Eradication of the virulent virus is essential if Australia is to maintain its current health status. A technical subcommittee has been formed by the RIRDC - Chicken Meat and Egg Programs to expedite R&D funding decisions in relation to Newcastle disease.

    Strategies

  • Analyse the impact of economic and policy reforms on the Australian egg industry.
  • Develop and satisfy the market for eggs and egg products.
  • Safeguard public health.
  • Minimise the effects of disease in layer flock health.
  • Improve the efficiency of egg production through improved understanding of nutrition, physiology and husbandry.
  • Improve bird welfare and bird performance.
  • Optimise the environmental and social impact of egg production.
  • Facilitate the training of researchers, producers and their support staff.
  • 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/egg5year.htm

    Key outputs in 1999/2000

  • Focus on Research newsletter included on RIRDC website and made available by email.
  • Industry workshop held to develop a plan to utilise the results of an international benchmarking study.
  • Technical subcommittee established to expedite funding decisions in relation to Newcastle disease.
  • The efficacy of two locally produced Newcastle disease vaccines evaluated.
  • A specialist poultry veterinarian trained via the Masters in Avian Health course at the University of Melbourne (subsequently employed in the industry).
  • A new training video produced to assist producers to manage feather cover and pecking problems.
  • Improved understanding of feeding requirements for imported layer strains.
  • Information provided on strategies to rehabilitate layer flocks suffering a drop in production due to avian encephalomyelitis.
  • A library loan system for conference proceedings established.
  • Two new short reports released.
  • Pearl millet and a new soybean variety developed by CSIRO evaluated as poultry feed ingredients.
  • Benefits for hens of abrasive strips and abrasive paint in layer cages evaluated.
  • A field study on tunnel-ventilated layer shedding provided information to assist producers in decision-making when building new sheds. The researcher presented the results to producers in a number of States.
  • A special edition of the industry magazine Poultry Digest featuring articles and information collected on an RIRDC-funded study tour to investigate alternative housing systems in Europe released.
  • A current and comprehensive database of egg industry contacts developed.
  • An annual research report published.
  • EGGS SUB-ACCOUNT
    ACTUAL
    1998/1999($)
    1999/2000 ($)
    Opening Balance
    1,198,251
    1,499,451
    Total Revenues
    1,441,674
    1,497,069
    Total Expenditure
    1,140,474
    1,369,757
    Surplus/(Deficit)
    301,200
    127,312
    Closing Balance
    1,499,451
    1,626,763
    EGG INDUSTRY DEVELOPMENT FUND SUB-ACCOUNT
    ACTUAL
    1998/1999($)
    1999/2000 ($)
    Opening Balance
    545,013
    542,998
    Total Revenues
    26,893
    30,579
    Total Expenditure
    28,908
    14,314
    Surplus/(Deficit)
    (2,015)
    16,265
    Closing Balance
    542,998
    559,263

    Publications in 1999/2000
    99/83 Egg benchmarking study
    99/129 1998-99 Chicken Meat and Egg research report (Joint Report)
    99/146 Influencing factors in domestic egg demand
    SR 41 Production and welfare of housed layers
    SR 42 Correct beak trimming
    SR 51 Modelling the determinants of domestic egg demand
    SR 63 Targetting information disseminators – improving knowledge about eggs
    SR 75 Factors affecting egg and egg shell quality in laying hens

    Research Manager: Dr Irene Gorman
    Phone:  (02) 9570 9222 or 0416 058 286
    Fax: (02) 9570 9763
    Email: ireneg@rirdc.gov.au


    3.3 Honeybee

    Objective: To improve the productivity and profitability of the Australian beekeeping industry.

    Expenditure in 1999/2000: $424,905

    Some Key Performance Indicators

  • Reduction in production losses caused by diseases.
  • Maintenance of access to melliferous resources on public lands.
  • Pollination information disseminated widely for both beekeepers and growers.
  • Data on effect of collection, bulk handling, storage and processing on honey quality and purity available.
  • Level of research uptake by industry.
  • R&D Plan for the Honeybee Program 1996–2001. Adopted by Board Resolution No. 36-1996-9

    Background

    Australian honey has the reputation in the world market as being a premium quality product. It is produced over a large geographical area from a wide variety of flowering plants which, because of fluctuating rainfall patterns and the extended budding cycles of much of the honey producing flora, tend to flower spasmodically.

    About 70–80 per cent of honey produced is from native flora, especially eucalypts growing on public, Crown leasehold and freehold land. The flora are diverse, growing as heathland and mallee eucalypts on coastal plains and in semi-arid regions of Australia, through medium rainfall to subalpine regions and rainforests of Tasmania, northern New South Wales and Queensland.

    Australia produces about 31,000 tonnes of honey a year with an estimated gross value of production of about $49 million. Domestic consumption is approximately 15,000 tonnes a year and the remainder is exported in pre-bulk form, making Australia the world’s fourth largest exporter of honey. It is estimated that the gross value of production, including queen and package bees, beeswax, pollen and pollination, is $65 million. In addition, the value of pollination to the Australian economy has been estimated at between $600 million and $1.2 billion.

    Strategies

  • Increase profitability by improving hive husbandry and management practices.
  • Continue honeybee access and research into melliferous resources on public and freehold land.
  • Develop agricultural and horticultural crop pollination and biological controls using honeybees.
  • Improve methods of extracting, storing and transporting honey.
  • Increase the use of honey in the food industry.
  • Determine therapeutic values of specific floral species.
  • Improve communications between the R&D section, the honey industry and associated industries.
  • 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/honeybee.html

    Key outputs in 1999/2000

  • The development of bait hives to assist capture of Apis cerana when incursions occur.
  • Hospital assessment of the efficacy of ‘active’ honeys against infections in such conditions as ulcers, burns and bedsores.
  • Increased adoption of Quality Assurance programs by producers.
  • Chemical honey fingerprinting authentication of floral source.
  • Production of the NSW part in a series of floral resource databases for the Australian industry.
  • Increased adoption of nutrition combined with refined disease protocols to minimise the potential for treatments to adversely affect quality assurance and product image.
  • Production of a pollination technology transfer resource package.
  • Production of Honeybee Research Report 2000 as well as a range of final and short reports.
  • HONEYBEE SUB-ACCOUNT
    ACTUAL
    1998/1999($)
    1999/12000 ($)
    Opening Balance
    390,421
    371,597
    Total Revenues
    440,141
    452,448
    Total Expenditure
    458,965
    476,263
    Surplus/(Deficit)
    (18,824)
    (23,815)
    Closing Balance
    371,597
    347,782

    Publications in 1999/2000
    99/145 Australian liquid honey in commercial bakery products
    99/174 Floral Resource Database for the NSW Apiary Industry
    00/71 Honeybee Research Report 2000

    Research Manager: Dr Jeff Davis
    Phone:  (02) 6272 4152
    Fax: (02) 6272 5877 
    Email: jeffd@rirdc.gov.au


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    Last updated: 9 October 2000
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