|| Home || SEARCHContact || Free Research Publications  ||  Eshop || Privacy Statement || 2003-04 ANNUAL REPORT - Back to contents page

Our Operations - back to Operations menu

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 2003–04: $4,110,803
Compared with 2002–03: $3,862,946
 

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 Systems 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 2003–04: $641,768
Compared with 2002–03: $746,626

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 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 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.

Key long term strategies

• support analyses identifying new opportunities in the marketplace
• develop collaborative links with the Australian Government’s National Food Industry Strategy initiative
• develop a research program supporting the development of a more globally focused competitive food sector

Key long term strategies

• support analyses identifying new opportunities in the marketplace
• develop collaborative links with the Australian 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 to improve the global competitiveness of the agricultural sector through the refinement of trade policies and the removal of 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 vari-ous 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 2003–04

• analysed preliminary trends in important indicators for prices, production and weather during the last drought and implications for farmer decision making
• published reports on trade policy reform (Greening Farm Subsidies and Termites in the Basement) and the implications of preferen-tial trade agreements for WTO trade reform (03/092)
• evaluated logistic technology adoption in Australia and implications for transport costs and therefore the competitiveness of the agricultural sector
• published a report suggesting that a new model for advancing the securitisation of Australian agriculture be adopted to improve access to finance (04/055)
• published a report indicating that world population trends have consistently been overestimated and the implications that continued errors like this have for agriculture projects and trends (04/041)
• finalised a project highlighting the importance of global biotechnology adoption and policy responses and their consequences for Australian exporters
• supported the Annual Agribusiness Value Adding Award.

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 2003–04: $1,081,417
Compared with 2002–03: $906,710

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 complement ing the trade and human capital foci of the other two sub-program. 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 long term strategies

• continue support for the development of innovative agricultural systems based on application of new technologies, integrated multiple use of resources and the conversion of liabilities into assets by:
• 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 2003–04

• analysed the economics of conservation through commercial use of wildlife
• identified Microlaena (wild rice) as an endemic perennial grasses which has potential as grain crop with a high deep water use of assistance in salinity mitigation – continuing development as a new project with GRDC
• developed agri-aquaculture demo facility – multiple use of farm water
• developed trout production in inland saline water
• supported the third National Environment Management Systems Conference in South Australia
• sponsored the Future Agricultural Landscapes Conference in Western Australia, which discussed innovative approaches to sustainable landscape management and diversifying rural enterprises
• identified leasing, tax, and superannuation arrangements for sustainability
• assessed biodegradable polymers

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 2004
• adoption by agriindustry of procedures such as environment management systems that enhance sustainability
• evaluated free-range animal production sys-tems for pigs and poultry
• conducted a national audit of peri-urban agriculture
• initiated markets for ecosystem services.

Strategic planning
This Sub-program has its own five-year R&D plan, accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/ras5yr.htm
 

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

Expenditure in 2003–04: $2,387,618
Compared with 2002–03:$2,209,611

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 and rural decision makers 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 this sub-program that was developed in 2001–02 by a number of agencies with an interest in rural indus-try 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 Dairy Australia, the Australian Government Department of Agriculture, Fisheries and Forestry, 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 2004–05.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 R&D in this area. 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 and awards for rural leadership and postgraduate research.

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.
• improved industry training and extension opportunities

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 awards and support for the Australian Rural Leadership Program.

Key outputs in 2003–04

• finalised a project on the study of success factors of innovative off farm rural enterprises
• finalised a project on developing e-commerce in supply chains
• finalised a project on women in business in the bush
• awarded two postgraduate scholarships.Cooperative Venture on Capacity Building
• accepted final reports from four flagship projects on capacity building for innovation
• shared learning and projects across industries through three meetings of the Cooperative Venture committee.Joint Venture on Farm Health and Safety
• reported on “Reducing All-Terrain Vehicle Injury ”RIRDC Core ProgramPublished reports on:
• Risk and Risk Perception (04/043)
• The Impacts of Changing Farm Business Structures on Rural Communities (03/015)
• The Emergence of Ework in rural Australia (04/045)
• Rural Women’s Awards – the first three years (04/017)

Next Steps
Our program for 2004–05 is captured in our Annual Operational Plan that was approved by the Federal Government in June 2004. This Plan is based on an annual investment of $23 million put into the key R&D issues identified by the Corporation and its key stakeholders. Overall, the corporation expects to fund 435 projects in 2004–05 of which 128 will be new research initiatives.

The initiatives that will be undertaken in 2004–05 come from different angles but all are focused on one central outcome – a more profitable, dynamic and sustainable rural sector.

The Corporation revised its Corporate Plan in 2003, and from 1 July 2004 it embarked operations on a new program structure. These changes reflect the changing operating environment for Australian agriculture with growing emphasis on issues such as the interaction of farming and environmental management, genetic diversity, food safety, value adding, human health, the structure of agriculture and animal welfare.

Suitable and effective diversification of Australian agriculture will also remain an ongoing focus of RIRDC’s activities, together with improved profitability and sustainability of established agricultural industries.

The aim is to put RIRDC in the best position to meet the priorities of its stakeholders in both new and established industries. These changes offer some new opportuni-ties and researchers received early advice of these changes through our Research Priorities 2004–05. Since this early advice we have also distributed our Annual Operation Plan 2004–05 as well as the new Research Priorities 2005–06 documents which both adhere to the new structure. However, it is important to note that this Annual Report is the last document to report on RIRDC’s ‘old structure’ as shown in the chart on page 10. The new RIRDC structure is shown on page 58.

Under the new program structure, Program 1 continues RIRDC’s core business of investing in research to foster the development of new and emerging industries. Program 2 implements the second element of RIRDC’s core business, which is to manage research and development investments for a range of established indus-tries. Program 3 on Sustainable Systems brings together a number of existing RIRDC sub-programs and refocuses the former Resilient Agricultural Systems Sub-pro-gram into two new ones on Environment and Farm Management and Rangeland and Wildlife Systems.

This positions the Corporation to more effectively meet the National and Rural Priorities on environmental and natural resource sustainability. Finally, Program 4 incorporates a set of sub-programs that underpin capacity build-ing and competitiveness in Australian agriculture. This includes a new sub-program on Food Integrity and Biosecurity. Programs 3 and 4 relate to the third element of RIRDC’s core business which is to address strategic cross-sectoral issues facing the rural sector.

Some examples of key projects being initiated in our diverse range of sub-programs are:

New and Emerging Industries

• New Plant Products: assisting the industry to meet contemporary food quality and labeling requirements.
• New Animal Products: commercialisation in farmed rabbit breeding.
• Asian Foods: development of Edamame soy-bean in Australia.
• Essential Oils and Plant Extracts: develop-ment of an internationally competitive saffron industry.
• Rare Natural Animal Fibres: development of a model for the progeny testing of mohair goats.
• Wildflowers and Native Plants: market de-velopment and production of native tropical flowers.
• Tea Tree Oil: investigation into the anti-bacterial action of tea tree oil against “golden Staph” (Staphylococcus aureus).

Established Industries

• Chicken Meat: new, rapid diagnostic tools against virulent viral pathogens responsible for several key emergency diseases, including bursal disease and avian influenza.
• Honeybee: assess forest plantations as a re-source for native fauna and honeybees.
• Rice: evaluation of factors determining rice quality including important links with China and the International Rice Research Institute (IRRI).
• Horses: development of preventative and therapeutic strategies for Laminitis.
• Fodder Crops: assess major diseases of oaten hay and implications for current and future management options.
• Pasture Seeds: assess the implications of in-tellectual property licensing agreements for the pasture seeds industry.
• Deer: new value-added venison products for specialist niche markets.
• Buffalo: development of improved selection and breeding for water buffalo.

Sustainable Systems

• Agroforestry and Farm Forestry: field testing of mallee eucalypt phase farming to lower water tables in saline cropping and grazing regions.
• Environment and Farm Management: enhancing natural resource outcomes through strategic taxation of primary pro-ducers and landholders.
• Rangeland and Wildlife Systems: wildlife-based tourism and commercial utilisation of native plants and animals as an incentive for biodiversity conservation and landscape re-habilitation.
• Organic Systems: preliminary study inves-tigating nutritional claims for organic versus conventional products.

Capacity Building and Competitiveness

• Global Competitiveness: an assessment of food aid and agricultural trade policy reform.
• Food Integrity and Biosecurity: develop-ment of a survey toolbox for plant pests – a practical manual for surveillance of agricultural crops and forests.
• Human Capital, Communications and Information Systems: identification of family health indicators for inclusion in farm management quality assurance processes, to provide information on the relation-ship between farm family health and farm productivity.