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2003 ANNUAL REPORT - Back to Contents Page

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Investment priorities for 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 2002–03: $3,862,946
Compared with 2001–02: $3,394,063

Global competitiveness

• reduce domestic impediments to competitiveness
• analyse agricultural trade policies
• analyse markets and product chains
• develop regional, national and international agribusiness systems
• support the ‘National Food Industry strategy’ initiative
• evaluate policies and institutions
Resilient Agricultural Systems • develop sustainable production systems
• investigate new and emerging agri-industry systems
• research impediments to sustainable agri-industry systems
• research management implications of new technologies
• underpin development of internationally acceptable certification and quality assurance systems
Human Capital, Communications and Information Transfer • improve information and communication systems, especially internet-based
• develop best-practice models and processes for communication and education
• investigate services and social issues affecting rural communities
• improve health and safety of farm workers
• enhance rural leadership, especially in RIRDC-related industries
• fund research scholarships, especially in support of RIRDC-related industries
• foster development of policies and institutions in support of RIRDC-related industries
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 2002–03: $746,626
Compared with 2001–02: $648,320

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 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 accustomed 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 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.

Key long term strategies

• support analyses identifying new opportunities in the marketplace
• develop collaborative links with the Government’s ‘National Food Industry Strategy’ 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
Kkey outputs in 2002–03 • collaborated with Supermarket to Asia and other organisations to release a major book (several volumes) which updates information on the potential for resurgence of agribusiness in Asian markets and the implications for Australian businesses
• produced detailed analyses of the organisation and operation of the Japanese agrifood sector and its implications for better Australian access
• published a series of trade policy analyses and reports which considered: • some key technical considerations in negotiating reduced agricultural tariffs
• an overview of crucial issues for the next WTO round published as Opportunity of a century to liberalise farm trade
• produced 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 2002–03
02/011 Opening agricultural markets through tariff cuts in the WTO
02/126 Reassessing the political economy of US farm policy
02/164 Japan food market study
02/077 Global competitiveness research in progress and completed projects for 2001/2002
02/116 Benchmarking technology on the Australian waterfront
02/049 Subsistence to Supermarket II: agrifood globalisation and Asia volume II
02/050 Subsistence to Supermarket II: agrifood globalisation and Asia volume IV

Research Manager: Dr Jeff Davis
Phone: 02 6272 4152
Fax: 02 6272 5877
Email: jeff.davis@rirdc.gov.au

Some keyperformanceindicators

• 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
• quality of Australia’s contribution to international trade consultations and negotiations

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 2002–03: $906,710
Compared with 2001–02: $1,016,439

Background
Resilient Agricultural Systems 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 agriculture more resilient and at the same time develop commercial opportunities particularly by converting liabilities into assets.

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 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 long term strategies

• continue support for the development of innovative food, fibre and bioenergy production based on application of new technologies, integrated multiple use of resources and the conversion of liabilities into assets by: • by supporting trials of aquaculture in inland saline water and seaweed production
• the sustainable use of wild plant and animal resources, particularly in the rangelands
• considering current regulatory constraints to sustainable farming of wildlife
• coordinate with other RDCs and pilot programs to enable the development of EMS that are operationally effective at minimal cost and avoid duplication of audit and certification procedures
• promote program products to improve adoption and identify opportunities for commercialisation
key outputs in 2002–03 • completed a project 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
• researched Bioplastics Supply Chains - Implications and opportunities for Australian agriculture of biodegradable polymers
• produced a handbook on Integrated agri-aquaculture systems
• produced a report on the control of Parthenium weed through the use of fire
• completed environment management system case studies on: • eco-labelling and green marketing, certification and auditing
• market orientated environmental certification for rangeland pastoral industries
• organisation of a national approach to EMS R&D
• produced a report on commercialisation of Distichlis for rehabilitation of highly saline areas for grain, turf and grazing
Research Manager: Dr George Wilson
Phone: 02 6281 2160
Fax: 02 6272 5877
Email:georgewilson@awt.com.au

Publications in 2002–03
03/026 Integrated wastewater treatment and aquaculture production
03/012 Integrated agri-aquaculture systems
02/154 NyPa Distichlis cultivars: rehabilitation of highly saline areas for forage turf and grain
03/080 Sustainable land leasing in Australia
02/086 Biofertilisers in action

Some key performance indicators

• identification of new opportunities for enterprise diversity and multiple use of resources
• availability of specific decision support software products by 2003
• adoption by agri-industry of procedures such as environment management systems that enhance sustainability
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

4.3 Human Capital, Communications and Information Systems

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

Expenditure in 2002–03: $2,209,611
Compared with 2001–02: $1,729,304

Background
This sub-program has a strong focus on developing effective, accessible, client-centred information, communication and education systems and processes. It funds underpinning R&D to enhance the capacity of farm managers to identify, acquire and apply the skills and information needed to improve the performance of their farm businesses in terms of profitability and sustainability.

The Cooperative Venture for Human Capacity Building for Innovation in Rural Industries is a major new initiative within this sub-program that was developed in 2001–02 by a number of agencies with an interest in rural industry education and extension. Through 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 Cooperative Venture will be consolidating its R&D program over the next 12 months and will not be soliciting new proposals for 2004–2005.

The development of safe systems of work on farms is vital to the enhanced well-being and productivity of people in rural industries. The Joint Research Venture in Farm Health and Safety is focussing 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.

This sub-program 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.

Key long term 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
• develop research and leadership capabilities through postgraduate scholarships and support for the Australian Rural Leadership Program
Key outputs in 2002–03

Information and communications systems

• produced reports on: • case studies of the emergence of e-work in rural Australia
• case studies of developing e-commerce supply chains
• interactive Internet support for farm- situated learning and planning
Extension education and training • published a report on Older farmers and retirement
• produced a report which identifies how attitudinal factors impact on farm family business performance
Rural communities and social issues • evaluated the efficacy and outcomes of Heywire, the ABC’s Rural Youth Initiative

• published a report on the impacts of changing farm business structures on rural communities

Policies and institutions • produced a report which proposes concrete ways to encourage creativity in agricultural research institutions Farm occupational health and safety (Joint Research Venture) • reported on health and safety in the dairy, beef cattle and grains industries

• State farm health and safety profiles for Queensland and NSW

• reported on training resources for farm machinery safety

• reported on rural health and safety intervention for the agricultural sector in the South West of WA

• produced an external evaluation of the National Farm Injury Data Centre and Project

• published a review of farm machinery regulation

Leadership and scholarships • awarded two Australian Rural Leadership Program scholarships

• awarded three scholarships

Publications in 2002–03
SR/119 Government response to farm poverty 1989-1998 – the role of ideas and values in policy making
SR/120 Government response to farm poverty 1989-1998 – the policy process
SR/123 A "pyramid" approach to farm machinery safety
03/032 Agricultural extension, learning and change
02/169 Farm machinery regulatory review
03/001 Evaluation ‘Heywire-The ABC gives rural youth a voice’
02/163 Government Response to Farm Poverty 1989/1998
02/104 Towards professional accreditation for advisers and consultants in agriculture, natural resource management and related sectors
02/029 OPTIONS1: costs and benefits of diversification: whole farm case studies
02/056 OPTIONS 2: leaving the land: a study of western division grazing families in transition
02/085 Internet delivery of short courses for farmers: 

a case study of a course on precision agriculture

(includes CD 02/085)

02/027 The impacts of changing farm business structures on rural communities

Research Managers: Dr Roslyn Prinsley & Dr Russell Haines
Phone: 02 6272 4033
Fax: 02 6272 5877
Email: roslyn.prinsley@rirdc.gov.au  or  russell.haines@rirdc.gov.au

Contact for Cooperative Venture for Human Capacity Building :
Mr John McKenzie
Progam Coordinator
Phone: 02 6366 5000
Fax: 02 6366 5142
Email: mckenzj@ix.net.au

Contact for RIRDC Scholarships:
Mr Claudio Ciuffetelli
General Manager, Business & Finance
Phone: 02 6272 4656
Fax: 02 6272 5877
Email: 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

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
• improved industry training and extension opportunities
HUMAN CAPITAL SUB-ACCOUNT
ACTUAL
2001–02 ($)
2002–03 ($)
Opening Balance
—
665,578
Total Revenues
—
2,217,521
Total Expenditure
—
2,364,760
Surplus/(Deficit)
—
(147,239)
Closing Balance
—
518,339



Next Steps
The key components of RIRDC’s agenda for 2003–04 are itemised in the Annual Operational Plan. The recently completed 2003-08 Corporate Plan and related industry Five Year Plans are also important directional documents.

For the year ahead the plan is based on a budget of $24 million. These funds will be directed into the investment and management of some 600 projects across a wide spectrum of rural industries. The funding levels of those projects will be expanded considerably by the contributions in cash or in kind from our research partners and industry stakeholders.

The new 2003–08 Five Year Plan and associated new program structure is expected to be accompanied by a number of operational and management adjustments in 2003–04.

These will include:

• a more active consideration of research by Advisory Committees and management to achieve the best mix through both submission and commission based selection processes
• working with Advisory Committees and research partners to examine the most suitable number of projects in order to improve the critical mass and associated economies and to engage more proactively in research adoption, communication and commercialisation
• consideration of more collaborative projects to enhance the critical mass and adoption objectives, including both domestic and international linkages
• an increased emphasis on food integrity, and biosecurity in the project range including a new sub-program to meet this important requirement
• developing research options with a through chain emphasis and with improved agribusiness and wider non agricultural industry partnerships
• participating in collective activities to improve the measurement methodology for R&D adoption as a means of achieving further outcomes reporting
These broader operational measures will be ongoing and will not detract from the immediate initiatives being undertaken in the 2003–04 Operational Plan. Such initiatives will address the totality of RIRDC programs designed to cover new industries, established industries and cross sectoral priorities. Some examples of the varied research menu include the following activities:
• developing improved nutrition strategies for mechanical tea harvesting
• establishment of environmental management systems for the olive industry
• genetic and reproduction improvement in Australian water buffalo
• commercial development of export markets for emerging skin industries
• anti-cancer properties of Asian crucifers
• trees for saltland—combining conservation with production
• wood harvesting for riparian land
• development of nutritious long shelf life venison based products for specialist markets
• rejuvenation of peppermint crops through establishment of quality nursery stock
• benchmarking organic and biodynamic farms by measuring soil fertility, biodiversity and production
• alpaca across-herd genetic evaluation to achieve commercially viable fleece production
• the anti-oedema and anti-inflammatory properties of tea tree oil: new clinical applications
• nutrient and irrigation management of waxflower for quality and yield
• biological controls of necrotic enteritis in meat chickens
• insecticidal control of small hive beetle
• improving rice production and yield potential through plant physiology
• management strategies for reducing risk of rhodococcal pneumonia in (horse) studs
• fodder quality specification: identifying predictors of preferences between fodders.
• understanding and managing the causes of abnormal seedlings in lucerne
• geographical indicators and traditional expressions: trade enhancing or trade defeating
• quantifying salinity risk from modern agriculture in brigalow landscapes
• human capital auditing for farm family learning programs
• examination of the drivers of primary producers’ attitudes towards agricultural biotechnology
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Last updated: October 2003
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http://www.rirdc.gov.au/pub/anrep03/ops7.html