2000 ANNUAL REPORT - Contents Page

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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 1999/2000:1998/–99: $3,895,4123,517,487

Our Five Year Plan 1997–2002 has the following performance indicators for Program 4.

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

 
Program 4
Future Agricultural Systems
Performance in 1999/2000 
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 steering committees in most projects. The key R&D strategies have been identified via the Corporation’s strategic planning process.
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 background working papers on economic developments in the agrifood sectors of Indonesia, Malaysia and South Korea.

· Published a report on Japanese consumer co-operatives as a market entry strategy for horticultural products.

Identifying options and strategies for reducing trade barriers and domestic policy impediments for Australian agriculture · Published a series of research reports that have supported activities preparing for the next WTO round of trade policy reform negotiations.
Improving linkages between producers, consumers and providers of agribusiness goods and services · Completed a report that analyses the reasons for the export-led growth and success of the Australian wine industry and highlights the implications for other emerging industries.

 
Program 4
Future Agricultural Systems
Performance in 1999/2000 
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 · Published a food exporters’ guide to Asian festivals and customs.
Identifying new policies or institutional arrangements which will improve Australia’s global competitiveness · Analyses of the provision and pricing of economic infrastructure and its impact on regional Australia.
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, four year rotating 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 · The program has a Five Year Plan that was released in June 1999.
The adoption level of results from our research projects · Program management is placing increased emphasis on adoption and market led demand. A range of commissioned projects targeted at identified needs is nearing completion.
Pilot trial accredited sustainable production systems in a range of industries and regions · Support for a study on adoption of environmental management systems (EMS) in agriculture: description of case studies, a compendium of Best Management Practice (BMP) and preparation of a newsletter.
Analytical processes for conceptualising/ developing new agricultural systems · Examination of alternative land tenure arrangements for encouraging enterprise diversification, the feasibility of community supported agriculture (Subscription farming) in Australia and multi level land use.
The development of new agricultural systems · Development of a draft R&D plan for integrating aquaculture into agriculture. Trialing 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 · Assessment of impact of climate change on important plant diseases in Australia.
· Preparation of ‘Coping with Climate’ which describes how to use RAINMAN in agricultural education.
Program 4
Future Agricultural Systems
Performance in 1999/2000 
Improved management of pest-related constraints and risks · Support for projects on use of fire to control parthenium weed.
· Biological control of serrated tussock and blue heliotrope.
Safe use of biotechnology to improve profitability and sustainability · Development of enzymes for application to remediate pyrethroid pesticides and manage waste. Development of DNA probes to improve diagnosis of plant and soil diseases.
The identification of policies and institutions that are more responsive to the needs of sustainable and profitable agricultural systems · Preparation of a report on the role of community participation in regional land use planning. Examination of the role of environmental partnerships that combine sustainability and commercial advantage in the commercial sector.
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, four year rotating evaluation program.
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 · A five year plan for the program is in preparation. A separate R&D plan for the Farm Health and Safety component has been issued.
· Priorities for research relating to rural communities and social issues have been established and a new project has been initiated to develop priorities for education and extension.
The adoption level of results from our research projects · A number of the sub-program outputs have been released in a form aimed at improving their accessibility and uptake eg through the use of guideline booklets and websites.
The increased use of the Internet and other new information and communication systems by farmers to improve farm management · Release of the second edition of The Australian Farmer’s Guide to the Internet.
· A new guide was produced: Websites for Rural Australia – Designing for Accessibility.
Improved communication between end users (including farmers) and researchers · Publication of a report evaluating the use of the Internet as a tool to increase the cost-effectiveness of interactions among scientists, advisers and farmers when using computer simulation models.
The increased responsiveness of policies and institutions involved in agricultural education and communication · Recommendations on strategies to enhance farmer learning in marketing and management for male and female farmers.

· Publication of reports on the role of stock and station agents as information providers and on 
strategies to revitalise agricultural extension.

Program 4
Future Agricultural Systems
Performance in 1999/2000 
Better practices for farm health and safety · Publication of reports on overcoming the barriers to implementation of practices to prevent farm injuries and on the influence of seat modifications to tractors on the lower back.
Up to three new rural leaders trained per year and contributing to RIRDC industries · Two scholarships awarded for participation in the Australian Rural leadership Program.
· Launched the RIRDC Rural Women’s Award.
Up to five research post-graduates per year contribute to RIRDC industries · Awarded three new scholarships for PhD studies in RIRDC-related areas of study.
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, four year rotating evaluation program.
Investment Priorities for Sub–programs of Program 4

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 1999/2000: $700,892

Some Key Performance Indicators

  • Extent of improvement in export activities by the agricultural sector and associated enterprises.
  • Change in national and international policies influencing the competitiveness of the agricultural sector.
  • Extent of achievement of average benefit-cost ratios of 10:0 and/or internal rates of return greater than 25% of R&D projects.
  • RIRDC R&D Plan 2000–2002

    Background

  • 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 trade liberalisation. Some have shown that the Australian agricultural sector in particular stands to gain billions of dollars in welfare gains from this process.
  • As well as being actively involved at an international level, through trade policy changes, for Australia to maximise the gains from globalisation it is crucial to ensure that domestic policies and processes are continually reviewed and effectively adapted.
  • While evidence of the longer-term gains from globalisation 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. They also require access to information and business institutional arrangements and practices which many businesses have not been use to in the past.
  • RIRDC believes that research can provide improved understanding in many areas, domestically and internationally, that will support the process of globalisation 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.
  • Strategies
  • 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.
  • Key outputs in 1999/2000
  • Publications which provided updated information on the potential for resurgence of agribusiness in Asian markets and the implications for Australian businesses.
  • A series of research reports on crucial issues, which have supported activities preparing for the next WTO round of trade policy reform negotiations plus associated seminars and meetings to promote the results of this research.
  • Analyses of a range of domestic impediments that are hindering the efficient development of agricultural industries, especially such things as provision and pricing of economic infrastructure and the potential impact of occupational licensing.
  • A report which analyses the reasons for the export-led growth and success of the Australian wine industry and highlighted the implications for other emerging industries.
  • Publications in 1999/2000
     
    99/60 Asian festivals and customs – a food exporters guide
    99/93 Intellectual property in agricultural trade
    99/96 Reforming world agricultural trade policies
    99/111 Global competitiveness research in progress
    99/157 Economic developments in the agrifood sectors of Indonesia, Malaysia and South Korea: background working papers
    99/162 Infrastructure pricing, provision and process – implications for rural Australia
    99/167 Reason vs Emotion: Requirements for a successful WTO Round
    99/176 ‘Thinking of Asia’ – evaluating the effectiveness of student market research
    00/30 Japanese consumer co-operatives – a market entry strategy for horticultural products
    SR 56 Structural changes for the farm inputs industry
    SR 61 Asian festivals and customs – a food exporters guide
    00/52 Export-Led Growth: Lessons from Australia’s wine industry

    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 1999/2000: $1,449,750

    Some Key Performance Indicators

  • Number of accredited sustainable production systems being trialed.
  • Extent of improvement in management of pest-related constraints and risks.
  • Extent of safe use of biotechnology to improve profitability and sustainability.
  • Extent of achievement of average benefit-cost ratios of 10:0 and/or internal rates of return greater than 25% for R&D projects.
  • RIRDC R&D Plan 2000–2002

    Background

    The strategic plan for Sub-Program 4.2 has been 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:

  • A shift from a production-driven approach to a market-driven approach including demands by consumers for product consistency, reliability of supply, food safety, product choice and most recently sustainability of production.
  • Concern for the environment, especially the issues of water quality and quantity, soil salinity, acidification and degradation, air quality and climate change.
  • Increased globalisation resulting in greater competition and growing power of transnational companies especially in food industry research, processing and marketing.
  • Reduced government involvement in agriculture and rural services and increased privatisation — this includes resourcing of research.
  • New technologies involving a trend to patented input systems including genetic manipulation of plants and animals, precision farming and information management.
  • The development of an industrialised system of agriculture with increased vertical integration, a systems approach to agri-industries and implementation of industry-wide quality assurance.
  • 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.
  • Strategies
  • 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.
  • Research methods of addressing the impediments to achieving sustainable agri-industry systems. Include consideration of alternative land tenure arrangements, improved financial systems, and alternative capital structures.
  • 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.
  • 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.
  • 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

    Key outputs in 1999/2000

  • Publication of a report on the Rural Adjustment Scheme - Its Role, Operation and Effectiveness. The study investigates the role, operation and effectiveness of the former Rural Adjustment Scheme in dealing with farm businesses experiencing difficult financial circumstances.
  • Proceedings of Environmental Management Systems Workshop that identified the potential significance of EMS, areas for further research and support, the importance of education and communication, the need for practical examples of systems approaches to farming, and the first steps towards developing a national approach to the use of EMS in Australian agriculture.
  • Publication of a report on incursion management for exotic pests of plant industries.
  • Completion of an investigation into how to increase the productivity of peanut and maize crops and into the viability of a rice-cotton cropping system in the tropics.
  • Report on nematodes as a useful indicator of soil condition. Detailed investigations into the effects of tillage on free-living soil nematodes, and how the differences in nematode populations are related to soil properties.
  • Publication of an R&D plan to assist the integration of aquaculture into farm operations and to increase the diversity of farm enterprises, particularly irrigation enterprises.
  • Publication of an authoritative information kit on sustainable harvesting of native species by the Australian Academy of Science's Nova: Science in the news Internet site (www.science.org.au/nova) leading to greater media and community awareness and support.
  • Publications in 1999/2000
    98/141 Nematodes – useful indicators of soil condition
    99/19 The rural adjustment scheme: its role, operation and effectiveness
    99/94 EMS Workshop Proceedings
    99/112 Resilient Ag systems research in progress
    99/153 R&D Plan for Integrated Aquaculture Systems, 1999-2004
    00/16 Pests and pest management - impact of climate change
    00/25 Nematode monitoring strategies for vegetable crops
    00/27 Pyrethrum Paddocks – What makes them good for subsequent cropping?
    00/32 Plant pest and disease records – development of national standards. 
    00/62 Exotic woody weeds
    00/77 Weather and climate in farming

    Research Manager: Dr George Wilson
    Phone:  (02) 6281 2160
    Fax: (02) 6285 1195 
    Email: gwilson@awt.com.au

     
    Agriculture/Aquaculture Systems

    The concept of agriculture/aquaculture systems integration has been under investigation by RIRDC since 1994. Studies have indicated that there was an opportunity to develop practical applications of these practices within the Goulburn-Murray Irrigation District of Victoria (GMID).

    Integrated agri-aquaculture systems have been seen as having the potential to enhance productivity, water-use efficiency and overall sustainability of existing irrigation farming operations.



    4.3 Human Capital, Communications
    and Information Systems

    Objective: To enhance human capital and facilitate innovation in rural industries and communities.

    Expenditure in 1999/2000: $1,744,770

    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-centred 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.

    Some Key Performance Indicators

  • Level of use of the Internet and other new information and communication systems by farmers to improve farm management.
  • Extent of communication between end users (including farmers) and researchers.
  • Number of better-practice guides issued for farm health and safety.
  • Number of new rural leaders trained per year contributing to RIRDC-related industries.
  • Number of research postgraduates per year contributing to RIRDC-related industries.
  • Extent of achievement of average benefit-cost ratios of 10:0 and/or internal rates of return greater than 25% for R&D projects.
  • RIRDC R&D Plan 2000–2002

    Strategies

  • Develop accessible, client-centred information and communication systems.
  • Develop more effective communication and education processes.
  • 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 through two scholarships.
  • Strengthen the role and profile of rural women through the Rural Women’s Award.
  • Key outputs in 1999/2000

    Information and communications systems

  • A report evaluating the use of the Internet as a tool to increase the cost-effectiveness of interactions among scientists, advisers and farmers when using computer simulation models.
  • The second edition of The Australian Farmer’s Guide to the Internet.
  • A new guide was produced: Websites for Rural Australia – Designing for Accessibility.
  • A report on farmers’ usage patterns of computers and the impact on farm management.
  • An information website for tree crops.
  • A CD ROM of rural and remote health papers.
  • A report on a standardised classification system and thesaurus for Australian agricultural extension information.
  • Extension, education and training
  • Recommendations on strategies to enhance farmer learning in marketing and management for male and female farmers.
  • A report on the role of stock and station agents as information providers.
  • A report on strategies to revitalise agricultural extension.
  • Issues relating to rural communities
  • Completion and launch of Missed Opportunities II, a successfultrial of strategies to increase women’s participation in agricultural industry associations.
  • A report on priorities for research into social issues in rural communities.
  • A report on the impact of declining infrastructure in rural Western Australia.
  • Evaluate existing and alternative policies and institutions
    A report identifying environmental factors affecting the expression of creativity in agricultural R&D in Australia.
    Farm occupational health and safety
  • A project on establishing the Managing Farm Safety course delivery system.
  • A report on overcoming the barriers to implementation of practices to prevent farm injuries.
  • A report on the influence of seat modifications to tractors on the lower back.
  • Leadership
    Awarded two scholarships for participation in the Australian Rural Leadership Program.
    Scholarships
    Awarded three new scholarships for PhD studies in RIRDC-related areas of study.
    Publications in 1999/2000
    99/72 Australian farmers guide to the internet (2nd ed)
    99/74 Managing farming – how farmers learn
    99/113 Human Capital, Communications and information Systems - research in progress
    99/126 Preventing farm injuries – overcoming the barriers
    99/127 Tractor driving and the low back
    99/128 Creative research environments – environmental factors affecting creativity in agricultural research in Australia
    99/144 Development of an information website for tree crops
    99/172 Revitalising agricultural extension
    99/173 Impact of declining rural infrastructure
    00/13 Websites for rural Australia. – Designing for Accessibility
    00/14 Impact of tax driven financial investment on New Industry Development
    00/44 Missed Opportunities – Unlocking the future for women in Australian agriculture – Stage 2 Report
    00/53 Realising potential: farm management impacts of the internet
    00/54 Farmers, advisers and scientists interacting on the net
    SR 66 Agricultural extension – a decade of change
    SR 79 Missed Opportunities – Stage 2, Unlocking the future for women in Australian agriculture

    Research Manager: Dr Roslyn Prinsley
    Phone:  (02) 6272 4033
    Fax: (02) 6272 5877 
    Email: roslynp@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.au

    Contact for Australian Rural Leadership Program:
    Mr Mike Beckingham
    Phone: (02) 6281 0680
    Fax: (02) 6285 4676
    Email: arlp@iacom.com.au

    Winners of the RIRDC Rural Women’s Award 200


    Next Steps

    Our program for 2000/2001 is captured in our Annual Operational Plan that was approved by the Federal Government in June 2000. This Plan is about an annual investment of around $25 million put into the key R&D issues identified by the Corporation and its key stakeholders. These funds will go to more than 600 projects across a wide range of rural industries. This is our core business and will continue to be our essential focus in 2000/2001.
    Within that, there are a number of initiatives that we will take towards a more profitable, dynamic and sustainable rural sector.

    These are some of the initiatives that will be undertaken in 2000/2001. They all come from different angles but all are focused on one central outcome – 'a more profitable, dynamic and sustainable rural sector'.

    While this focus will be guided by broader priorities set out in Portfolio Budget Statements, the detailed building blocks will change as priorities and investment returns for particular industries change over time.

    This sorting of the building blocks will continue to be done in close consultation with our two key stakeholders – Government and Industry


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    Last updated: 10 October 2000
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