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Program 4
Future Agricultural Systems

Global Competitiveness

Resilient Agricultural Systems

Human Capital, Communications & Information 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 2001–02: $3,394,063
Compared with 2000–01: $3,569,772

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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 2001–02: $648,320
Compared with 2000–01: $653,300

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.

Background

International trade liberalisation and the general globalisation of the world economy during the past two decades has meant 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 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 accustomed to in the past.

RIRDC believes research can provide improved understanding in many areas, domestically and internationally, that will support the process of globalisation and ensure the benefits from it are maximised and the difficulties associated with the change minimised. It believes 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 which 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 2001–02

• In collaboration with Supermarket to Asia and other organisations released a major book (several volumes) which updates information on the potential for resurgence of agribusiness in Asian markets and the implications for Australian businesses.
• A detailed analysis of the organisation and operation of the Japanese agrifood sector and its implications for better Australian access and wholesale markets for agricultural products in China.
• A series of trade policy analyses and reports which considered: the implications of export subsidies for trade reforms; the costs and benefits of preferential trade access for developing countries, and the implications of recent US farm policy developments for trade policy reforms. Reports from this research have been used extensively to support a range of WTO meetings throughout the year. Sections of one report have been reproduced in a recent World Bank book. Support was also provided for workshops in Australia to promote the results of this research to farmer groups.
• Analysis of a range of institutional structures, which can have an impact on the competitiveness of the agricultural sector. This especially included the implications of changes in equity and credit financing for the rural sector and a detailed benchmarking analysis of the technology used on the Australian waterfront and its implications for agricultural export industries.
• Provided support for the annual awards for excellence in agribusiness.

Publications in 2001–02

 

01/124	Subsistence to Supermarket II: Agrifood Globalisation and Asia Vol I: Agrifood Multinational Corporations in Asia.
01/134	Agricultural Export Measures in the WTO
01/80	Global Competitiveness Research in Progress 2001
01/116	Preferential Trade and Developing Countries – Bad Aid, Bad Trade
01/117	Efficient Equity and Credit Financing for the Rural Sector

Research Manager: Dr Jeff Davis

Phone:	02  6272 4152
Fax:	02  6272 5877
Email:	jeff.davis@rirdc.gov.au

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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.

Some Key Performance Indicators

• Identification of new opportunities for enterprise diversity and multiple use of resources
• The availability of issues papers relating to Australian agriculture’s potential role as a provider of pharmaceuticals, nutraceuticals and industrial products by 2000
• Availability of specific decision support software products by 2003
• Adoption by agri-industry of procedures such as environment management systems that enhance sustainability.

Expenditure in 2001–02: $1,016,439
Compared with 2000–01: $990,627

Background

The Resilient Agricultural Systems Sub-Program 4.2 sponsors research and development into ways that farm based agribusiness systems can be made both sustainable and more profitable. The Sub-Program aims to make agricultural systems more resilient in particular through the development of new commercial opportunities.

As a Sub-Program of RIRDC's Future Agricultural Systems Program, Resilient Agricultural Systems supports biophysically based systems, thereby complementing the trade and human capital foci of the other two Sub-Programs.

Over past decades, Australian farmers have responded to Australia's declining terms of trade for many rural products by reducing costs and increasing productivity. Yet there are physical and environmental limits to the capacity of Australia's natural resources to do so - particularly in drought.

Key challenges and trends in Australia’s rural industries include:

How to be less production-driven and more market-driven. Farmers seek increasingly to meet the consumer demands for product consistency, reliability of supply, food safety, and most recently, environmental sustainability through accreditation of production systems.

Concern for the environment, especially issues of water quality and quantity, soil salinity, acidification and degradation, air quality biodiversity loss 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.

Adoption of resource conserving technologies including precision farming and information management, and a trend to patented input systems including genetic manipulation of plants and animals.

Increased vertical integration, and a systems approach to agri-industries and implementation of industry-wide quality assurance.

Lower numbers of mainstream commercial farms, increasing farm size, a rise in the number of part-time farmers and ongoing structural adjustment in agriculture.

Pressure on the economic, ecological social fabric of rural and regional communities, resulting in quests to develop new businesses and ways of doing business.

Strategies

Providing the R&D base to underpin the development of internationally acceptable accreditation systems for sustainable agricultural production, environment management and new agri-industry systems.

Developing new agricultural production opportunities that are more compatible with Australia’s fragile soils and variable climate.

Support the development of innovative agri-industry systems for production of food, fibre and bioenergy based on multiple use of resources and the conversion of liabilities into assets.

Considering alternative land tenure arrangements, improved financial systems, and alternative capital structures.

Identifying the implications of new technology systems for agri-industry such as precision farming, information management and genetic engineering of plants and animals.

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 2001–02

A report on Environmental partnerships: combining sustainability and commercial advantage in the commercial sector.

Principal sponsor of the second conference on accreditation of Environment Management Systems in Australian Agriculture, 6-8 November 2001, Ballina, NSW. Major themes at the conference were:

• EMS case studies
• Integration of management systems, policy innovations and trade, and environmental outcomes
• Eco-labelling and green marketing, certification and auditing
• Beyond compliance – EMS and regulation
• Organisation of a national approach to EMS

Publication of a report on Hydroponics as an Agricultural Production System that aims to increase the understanding of hydroponics as an alternative to conventional soil based agricultural production systems.

Commercialisation of substances that bioremediate pyrethroid contaminated wastes.

Review of the farm and resource management issues relating to Genetically Modified Plants.

Commercialisation of Distichlis for rehabilitation of highly saline areas for grain, turf and grazing

Handbook on integrated agri-aquaculture systems.

Report on the development of industry standards (benchmarks) for the long-term sustainability and viability of grazing businesses.

Report on quarry rock dust as a soil ameliorant.

Proceedings of InFoRM 2000, a national workshop on integrated food production and resource management, held in Brisbane in November. It brought together farmers, industry leaders, technologists, resource managers and planners to explore integrated options for a new, sustainable Australia.

Report that sought to improve Community Participation in rangeland management. The research revealed many approaches for involving local communities in planning implementation methods for sharing decision-making power with local people.

Research Manager: Dr George Wilson

Phone:	02  6281 2160
Fax:	02  6272 5877
Email:	gwilson@awt.com.au

Publications in 2001–02

CD02/002	Parkinsonia: Simulation model and documentation (Companion CD to Pub No 02/030 "National electronic modelling network for pest, disease and weed management")
CD02/001	Rejuvenating Soils with Minplusä
02/040	EMS and Land Valuation: The potential for land valuation to drive the adoption of Environmental Management Systems in Agriculture
02/030	National Electronic Modelling Network for Pest, Disease and Weed Management
02/015	New food and Pharmaceutical Products from Agriculture
01/174	Integrated Biosystems for Sustainable Development
01/173	Rejuvenating Soils with MinplusTM
02/004	Environmental Partnerships: Combining Sustainability and Commercial Advantage in the Agriculture Sector
01/145	Impact of Rare Earth Elements on Plant Physiology and Productivity
01/118	Community Participation in Rangeland Management
01/144	Re-use Potential of Agri-Industry Wastes
01/141	Hydroponics – as an Agricultural Production System
01/139	Voluntary Environment Management Agreements
01/130	Soil structure, Fungi, Fauna and Phosphorus
01/119	Biological Control of Blue Heliotrope
01/81	Resilient Agricultural Systems Research in Progress 2001
01/108	Genetically Modified Plants - Farm and Resource Management Issues

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4.3 Human Capital, Communications and Information Systems

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

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.

Expenditure in 2001–02: $1,729,304
Compared with 2000–01: $1,925,846

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 has a strong focus on developing effective, accessible, client-centred information, communication and education systems and processes. It funds 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 Cooperative Venture for Human Capacity Building for Innovation in Rural Industries is a major new initiative within Sub-Program 4.3 that was developed in 2001–02 by a number of agencies with an interest in rural industry education and extension. Though implementation of its Business Plan, it aims to provide the R&D basis to ensure an effective rural industries’ research, education and extension system. It is managed by RIRDC on behalf of DRDC, AFFA Farmbis, MLA, GRDC, SRDC, LWA, MDBC and GWRDC.

The new Five Year Strategic Plan for the Joint Research Venture in Farm Health and Safety has also recently been published and has a focus on developing market incentives for the adoption of Farm Health and Safety. It is managed by RIRDC on behalf of several R&D Corporations, including GRDC, MLA, AWI, CRDC, SRDC, DRDC and HAL. The development of safe systems of work on farms is vital to the enhanced well-being and productivity of people in rural industries.

Sub-Program 4.3 also aims to enhance human capital available to rural industries through research related to social issues in rural communities and households and the provision of scholarships for rural leadership and postgraduate research.

Strategies

Develop electronic communication systems with emphasis on responsiveness to farmers’ needs.

Further investigate farmer education and training, largely through the Cooperative Venture for Human Capacity Building

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 through the joint research venture in Farm Health and Safety

Develop research and leadership capabilities through postgraduate scholarships and support for the Rural Women’s Award and Australian Rural Leadership Program.

Key outputs in 2001–02

Information and communications systems

A rural and regional guide to E-commerce

Continued web site upgrades of the Farmers’ Guide to the Internet

Extension education and training

A Business Plan for the Cooperative Venture for Capacity Building for Innovation in Rural Industries and commissioning of three central projects

A publication on control, innovation and strategy in farming

Rural communities and social issues

Publication and launch of the Kit for Small Town Renewal

A report which identifies the social needs of youth and strategies to encourage youth to remain in rural communities

A report which identifies strategies for enhancing the leadership role of schools in rural communities

Farm occupational health and safety (Joint Research Venture)

Reports on:

• Occupational health and safety risk associated with sheep and wool production in Australia
• Health and safety risks associated with cotton production on-farm
• Occupational health and safety risks associated with horticultural produce production
• The health and safety of Western Australian farmers, farm families and farm workers
• Training resources for farm machinery safety
• A report which reviews regulation of farm machinery safety
• A report on the comparison between different approaches to farm injury prevention in Victoria and Queensland

Leadership and scholarships

• Two Australian Rural Leadership Program scholarships awarded
• Three scholarships awarded
• The Rural Women's awards completed

Publications in 2001–02

02/003	The Rural and Regional Guide to E-commerce
02/055	More than an Education-Leadership for Rural School/Community Partnerships
02/042	Welfare and Support Services for Farm Families
01/82	Human Capital, Communications and Information Systems Research in Progress 2001
02/023	4th National Farm Injury Prevention Conference
01/054	Guidelines for Evaluation Of Safety Programs for the Agricultural Industry
01/087	The Internet and Regional Australia
02/041	R&D Plan for Farm Health and Safety
01/043	A Kit for Small Town Renewal

Joint Publications in 2001–02

The Health and Safety of Western Australian Farmers, Farm Families and Farm Workers

The Health and Safety of Australia’s Farming Community

Occupational Health and Safety Risk Associated with Sheep and Wool Production in Australia

Health and Safety Risks Associated with Cotton Production

Occupational Health and Safety Risk Associated with Horticulture

Occupational Health and Safety Risks Associated with Sugarcane Production

Research Manager: Dr Roslyn Prinsley

Phone:	02  6272 4033
Fax:	02  6272 5877
Email:	roslyn.prinsley@rirdc.gov.au

Contact for Cooperative Venture for Human Capacity Building:

Mr John McKenzie Phone:	Progam Coordinator 02  6366 5000
Fax: Email:	02  6366 5142 mckenzj@ix.net.au

Contact for RIRDC Scholarships:
Mr Claudio Ciuffetelli
General Manager, Business & Finance

Phone:	02  6272 4656
Fax: Email:	02  6272 5877 Claudio.ciuffetelli@rirdc.gov.au

Contact for Australian Rural Leadership Program:

Mr John Quantrill

Phone:	02  6281 0680
Fax:	02  6285 4676
Email:	arlp@iacom.com.au

Contact for Rural Women’s Award:
Ms Edwina Clowes

Phone:	07 5476 1211
Fax:	07 5476 1311
Email:	Clowesedwina@bigpond.com

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Next Steps
Our program for 2002–03 is captured in our Annual Operational Plan that was approved by the Federal Government in June 2002. This Plan is based on an annual investment of around $26 million put into the key R&D issues identified by the Corporation and its key stakeholders. These funds will go to more than 500 projects across a wide range of rural industries. This is our core business and will continue to be our essential focus in 2002–03.

The initiatives that will be undertaken in 2002–03 come from different angles but all are focused on one central outcome – a more profitable, dynamic and sustainable rural sector. The following examples illustrate the diversity of these initiatives:

• Development of a Social Atlas for Australia’s rural population and industries.
• Publication of a book Farming beyond 2000: Systems theory for sustainable development and food security, which describes key emerging theories and principles that will underpin farming systems as they evolve in the 21st century.
• A series of trade policy analyses and reports which consider: the implications for Australia from the claims of countries during the Doha meetings; assesses whether Free Trade Agreements (FTA’s) in general have lead to avoiding policy reform; and the implications of trade reforms on bank lending in developing countries.
• Organisation of a New Crops National Conference for 2003 to review progress and policy in this area.
• Development of a report on dairy goat and milking sheep breeding in giving guidance for future R&D investments.
• Improved understanding of processes to improve communication with producers of Asian vegetables who have a non-English speaking background (NESB).
• Development of the fourth publication in the Agroforestry Guideline series on Biodiversity Conservation.
• Further development of tourist markets for value added velvet antler and venison co-products.
• New research on the growing of milkweed for its anti-cancer properties.
• Investigation and benchmarking of organic system design attributes for successful organic and similar sustainable systems.
• Increased reproduction performance in alpaca by further developing artificial insemination (AI) technologies.
• Publication of reports on clinical trials for medical uses of tea tree oil.
• Developed field trials and licensing of promising new wildflowers and foliage.
• Improved tools and technologies that will enable the detection and recognition of potential emergency poultry diseases that are currently exotic to Australia.
• Identification and development of new value-added egg products including those with non-food applications.
• Investigation of nectar production after logging in forests and implications for honey production.
• Commencement of several new phases of the rice breeding and quality evaluation program, which will place significant emphasis on improved quality using more advanced quality assessment and breeding technologies, for example, genetic markers.
• Production of a manual of exotic diseases to ensure early recognition by horse owners.
• A major effort to expand the objective measurement system for fodder and silage including new measures of preference.
• Enter into partnership with seed companies for the final stage of commercial introduction and development of leaf cutter bees to improve lucerne seed pollination.
• Facilitation of the conversion of liabilities into assets using saline land, inland saline water for aquaculture and sea weed production.

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Last updated: October 2002
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