Rural Industries Research & Development Corporation

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Program 2

Emerging New Industries - performance indicators

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

Our R&D Plan which runs until 30 June 2002 has the following performance indicators for Program 2. Some key performance achievements in 2000/2001 were as follows:

Program 2  Emerging New Industries We measured our  success by:	Performance in 2000/2001
The growth in emerging industries over a five year period	· Nearly all industries covered by Program 2 are growing. The one facing most difficulties is tea tree oil and here consolidation is now providing the basis for future growth. GVP estimates for Program 2 (farm gate) are as follows: — Asian Foods > $100m — Agroforestry and Farm Forestry > $300m — Deer ; $7m — Essential Oils and Plant Extracts ; $7m — Organic Produce ; $250m — Rare and Natural Fibres ; $6m — Tea Tree Oil ; $15m — Wildflowers ; $50m
Our establishment of R&D plans that address each industry’s agreed strategies and goals	· All sub-programs in Program 2 have their own Five Year Plans
The level of industry funding support for the research programs we establish and support	· Statutory R&D levies apply for cashmere, mohair and deer. Other sub-programs receive significant voluntary funding for specific projects from industry or other funding bodies (in the case of Agroforestry and Farm Forestry).
The level of the adoption by industry of the results of research we organise and support	· All sub-programs have close working relationships with industry participants and representatives. All have industry newsletters which summarise the results of R&D projects and are distributed widely.
Achievement of an average benefit–cost ratio of five and/or internal rates of return greater than 20 per cent on R&D projects	· The Corporation carries out a rolling B/C evaluation across its four programs. One program area has been done each year. For Program 2 this evaluation was done in 1997/1998. The results indicated 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 development of 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 establishments 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 2000/2001: $486,106
Compared with 1999/2000: $570,459

Some Key Performance Indicators

• Number of active networks for each of the industries falling into the ‘new’, ‘emerging’ and ‘established’ categories.
• Number of new products with high prospectivity identified.
• Internal rates of return on development stage projects - target is to exceed 25 per cent.
• Information on appropriate use of chemicals for the main chemicals commonly used on Asian vegetables.
• Optimal handling and packaging protocols available for the major Asian vegetables.

R&D Plan for the Asian Foods Sub-Program 2000-2004. Adopted by Board Resolution 53-2000-11

Background

Asian vegetables are mainly grown for domestic consumption, with production concentrated on the outskirts of the main state capital cities, including Sydney, Melbourne and the Sunshine Coast. However, there is a small, but 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; and

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 also popular and opportunities include sauces, ready-made meals, and possibly snacks.

Increasing attention to industry development will be needed in the future, with greater emphasis on managing quality and the development of supply chains. Conservative estimates are that, with appropriate research and development, the current value of the Australian industry will double within three years.

This program now has a new five year R&D 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 2000/2001

• Improved networks amongst Asian foods researchers in association with the project on consolidating the Asian vegetable industry.
• Establishment of a pilot project on communicating with non-English speaking growers of Asian vegetables. The pilot is being conducted principally in the Northern Territory, but the aim is to develop approaches and materials that can be used nationally.
• Further development of communication links through the publication of Access to Asian Food and Access to Asian Vegetables newsletters.
• Publication of report on the production and marketing of Japanese ginger (myoga). The project was successful in establishing the viability of this new and sustainable export-based horticultural industry that could generate earnings of A$4 million annually in Australia. This project was also one of the three finalists in RIRDC’s 2000 Business Plan Competition.
• Release of a growers’ manual on production and post harvesting of Chinese water chestnuts.

Publications in 2000/2001

01/01	Diversifying Asian Vegetable Markets (vol 1)
01/02	Diversifying Asian Vegetable Markets (ii) – Asian Vegetables in every household
00/117	Production and Marketing of Japanese Ginger in Australia
00/45	Pickled and Dried Asian Vegetables
00/129	National Asian Foods Newsletter – Report on Project
00/128	Asian Foods Program Five Year Plan – Background Paper
00/80	Asian Foods Research in Progress 2000
01/32	Exporting Lotus to Asia

Research Manager: Mr Tony Byrne

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

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/asianfd5yr.htm

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2.2 Agroforestry and Farm Forestry

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

Expenditure in 2000/2001: $2,755,769
Compared with 1999/2000: $3,057,505

Some Key Performance Indicators

• Number of viable commercial options that underpin an expansion of agroforestry.
• Availability of farm and catchment design information that provides clearer guidance on the placement of trees in the landscape to manage groundwater.
• Availability of information to farmers which allows them to quantify and predict the impact of trees on their farming systems.
• Extent of systematic information available on financially viable species and provenances for agroforestry systems and products.
• Availability and uptake of design options and decision making tools.
• JVAP products are widely available and used by agroforestry advisors and forest growers.

R&D Plan for the Joint Venture Agroforestry Program 1998–2004. Adopted by Board Resolution No. 46-1998-5

Background

Agroforestry has the potential to 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 focusing resources on a set of priorities agreed by all partners.

The Joint Venture Agroforestry Program (JVAP) was established in 1993 with three partners: RIRDC, the then Land and Water Resources Research and Development Corporation (now Land &Water Australia) and the Forest and Wood Products Research and Development Corporation.

Funding is also provided for some activities by the Murray Darling Basin Commission, the Grains Research and Development Corporation, the Department of Agriculture, Fisheries and Forestry and the Australian Greenhouse Office.

In February 1998 the Portfolio Minister provided $4 million to the program sourced from the Natural Heritage Trust 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 to medium rainfall areas.

The JVAP has managed Bioenergy Australia (previously called the Biomass Taskforce) since 1998. This taskforce fosters and facilitates the development of biomass for energy, liquid fuels, and a chemical feedstock. Membership continues to grow with more than 40 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.

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/aft5yr.htm

Key outputs in 2000/2001

• Held the highly successful JVAP Stakeholder Consultation and Information Exchange Meeting in November 2000.
• Communication to stakeholders of the JVAP Design Guideline Series in a Plenary Session of the Australian Forest Growers Conference, 2000.
• The completion of the first three books in the JVAP Design Guideline Series: Trees, Water and Salt, Farm Forestry Site Selection Manual and Trees for Shelter: A guide to using windbreaks on Australian farms.
• The development of the new Research Update series. Publication of Trees, Water and Salt: an Australian guide to using trees for healthy catchments and productive farms. Research Update No. 1 and Emerging products and services from trees in lower rainfall areas. Research Update No. 2 More than 3000 copies of each document were distributed to stakeholders.
• Supported a workshop and published the Proceedings from the Plantations, Farm Forestry and Water Workshop.
• The Master TreeGrowers Program awarded the 2000 Allan Strom Eureka Award for excellence in Environmental Education.
• Publication of a report and short report on the Socio-economic Impacts of Farm Forestry to inform future developments.
• Completion of a final report describing the results of a scoping study investigating the potential for integrated mallee processing for carbon products, eucalyptus oil and electricity. A pilot plant based on this system is currently being established in Narrogin (WA) with government and private investment.
• Release of a Risk Management Strategy to address potential genetic pollution from eucalypt and eucalypt hybrids in farm forestry systems.
• Supported the Bioenergy Australia Conference 2000.
• Continued to publish biannual JVAP newsletter and published more than 10 final research reports.
• Updated and reprinted a JVAP information brochure.
• Distribution of 10,000 copies of Biomass Energy and Products brochure.

Publications in 2000/2001

00/171	Low Rainfall – Research Update
01/86	Trees, Water and Salt – Research Update
01/08	Wattle Seed Production in Low Rainfall Areas
01/060	The Carbon Farmer Model – User’s Manual
01/059	The Carbon Farmer Model – Volume One
01/20	Plantations, Farm Forestry and Water Proceedings of a national workshop
01/045	Socio-economic impacts of farm forestry
01/09	Sustaining the productivity of tree crops on agricultural land
01/13	Socio-economic research to support successful farm forestry
98/41	Links Between Farm Forestry Growers and the Wood Processing Industry
00/184	Extension and advisory strategies for agroforestry
00/163	Sustainable hardwood production in shallow water table areas
00/154	Blue Gum timberbelt design for alley farming
00/162	The effect of salt on wood and fibre formation in eucalypts
00/81	Agroforestry & Farm Forestry Research in Progress 2000
00/119	Tropical Cabinet Timber Trees
00/48	Phase Farming with Trees
00/68	Forecasting Growth of Key Agroforestry Species in South Eastern Australia
00/12	Native Regrowth - A farmer’s guide to maintaining biodiversity
S01/93	Sustaining Productive Tree Crops in South-western Australia
S01/99	Designing Blue Gum Alley Farms
S01/ 103	Farm Forestry in Australian Rural Communities

 
 
 

AGROFORESTRY SUB-ACCOUNT
ACTUAL	1999/2000 ($)	2000/2001 ($)
Opening Balance	805,356	559,020
Total Revenues	3,029,568	2,964,774
Total Expenditure	3,275,904	2,968,417
Surplus/(Deficit)	(246,336)	(3,643)
Closing Balance	559,020	555,377

Research Manager: Dr Roslyn Prinsley

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

Assistant Research Manager: Dr 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 2000/2001: $281,553
Compared with 1999/2000: $279,931

Some Key Performance Indicators

• Improve profitability of the industry for stakeholders.
• Improve on farm production efficiency.
• Facilitate adoption of improved production technologies.
• Improve confidence in industry representative groups.

R&D Plan for the Deer Research & Development Program 2000–2005. Adopted by Board Resolution No. 55-2000-10

Background

The Australian deer industry has an estimated gross value of production of about $7 million at the farm gate. Although the industry is dispersed throughout Australia, the majority of the herd is in Victoria and New South Wales. Fallow and Red deer are the most numerous species.

Major products are: (i) Venison where since 1997 annual production has ranged from about 1,000 tonnes to about 1,500 tonnes, with an estimated 90% of that volume exported and (ii) Velvet antler with annual production estimated at about 25 tonnes of fresh product.

Traditionally, most velvet is exported in a frozen state to Korea and China. However there is an increasing trend to contract processing of product in Australia and New Zealand for subsequent, value-added, sale in tourist markets. The Australian Deer Horn and Co Products Pty Ltd continues to grade and sell the majority of the industry’s production on behalf of farmers.

An improvement in European, North American and Asian demand for venison saw prices slowly increase throughout 1999/2000 with peak prices (hot carcase weight less the industry levy) reaching about $4.12/kg and averaging in excess of $2.50/kg for all venison sold. During 2000/2001 average prices continued to rise. Prices for export venison are expected to remain high for the foreseeable future as demand is expected to exceed supply and the value of the Australian dollar remains low relative to the US.

Twelve to eighteen months ago, most observers of international velvet markets suggested that antler prices were expected to remain high for the ensuing period. However, little was known of reserves of dried antler held in China and Korea prior to the beginning of the 2000/2001-velvet season and the impact of those reserves on the demand for fresh (frozen) antler from Australia and New Zealand.

Average prices fell from about $85.00 per kg across the 1999/2000 season to about $56.00 per kg for the 2000/2001 season.

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 centres 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/pub/deerrd1.html

Key outputs in 2000/2001

• Rewrote all industry Quality Assurance manuals to reflect required improvements and the requirements of HACCP planning.
• Produced a computer database program (DeerQAMA) to encourage deer farmers to record data required by the industry Quality Assurance program.
• Small increase (from February) in farmer returns from the sale of venison co-products.
• Developed a New Industry Code of Practice.
• Continued the expansion of the industry Quality Assurance program.
• Developed the venison statistics computer program (Venstat) for the collection and storage of industry venison statistics.
• Identified and reported on potential demand for value added velvet and venison co-products by Asian tourist markets.
• Developed a new industry five-year R&D plan.

DEER SUB-ACCOUNT
ACTUAL	1999/2000 ($)	2000/2001 ($)
Opening Balance	171,019	342,636
Total Revenues	493,099	447,400
Total Expenditure	321,482	318,026
Surplus/(Deficit)	171,617	129,374
Closing Balance	342,636	472,010

Publications in 2000/2001

01/085	Australian Velvet Antler and Deer Co-Products
01/058	Deer Industry Manual Part One (Second Edition)
01/30	Deer Antler – Velvet Research in Australia and Overseas
00/168	R&D Plan for the Deer Program
00/172	Development of niche European venison market opportunites
00/118	Niche Markets for Venison
00/82	Deer Research in Progress
00/108	Salt Intake on Red and Fallow Deer
00/69	Occurrence of ecchymosis (blood splash) in deer carcasses. The influence of pre-slaughter conditions

Research Manager: Mr Peter Core

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

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