2005-06 ANNUAL REPORT
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Portfolio Budget Framework

Established Industries

Levies
The Established Industries Portfolio invests in R&D on behalf of eight agricultural commodities and is financed via a statutory or voluntary grower levies. These industries are funded through: Climate variability affects R&D income
An improvement in climatic conditions during 2005–06 resulted in a significant lift in R&D income received within the portfolio. The key strategies for portfolio R&D investment are in areas: Targeted investment
Targeted investment for the portfolio was reviewed during the year and five-year plans for the Rice, Horse and Deer programs were developed for the 2006–11 years.

Outcome
To facilitate a more profitable, dynamic and sustainable rural sector

Goal
Adopt new technologies and systems for established industries

Output
To enhance and foster innovative rural industries through targeted investment in research and development

Expenditure
 2005–06: $8.1m 2004–05: $8.4m

General Manager - Margie Thomson
Ph:  02 6272 4152

Research Managers in 2006–07
Margie Thomson
Honeybee, Rice Ph: 02 6272 5227 Em: margie.thomson@rirdc.gov.au

Dr Vivien Kite
Chicken Meat Ph: 02 9929 4077 Em: vivien.kite@chicken.org.au

Prof. David Hodgson
Horse Ph: 02 4655 0743 Em: david.hodgson@rirdc.gov.au

Annette Sugden
Fodder Crops, Pasture Seeds Ph: 02 6271 6497 Em: annette.sugden@rirdc.gov.au

Dr Laurence Denholm
Deer Ph: 02 6365 5482 Em: denholml@bigpond.com

Dr Peter McInnes
Buffalo Ph: 08 8556 7331 Em: mcinnes2@comstech.com


Chicken Meat
Industry R&D Plan on the web:  http://www.rirdc.gov.au/pub/chick5yr.htm

Research Manager for 2005–06 Dr Vivien Kite
Phone: 02 9929 4077 Fax: 02 9925 0627 Email: vivien.kite@chicken.org.au

Objective
Through carefully focussed R&D, support increased sustainability and profitability in the chicken meat industry.
Research expenditure
2005–06: $2,134,349 2004–05: $2,243,922

Key performance indicators

Background
The Australian chicken meat industry currently produces approximately 715,000 tonnes of chicken meat annually with a retail value in excess of $_.6 billion. Production has increased dramatically over the past fifty years, and chicken meat now rivals beef as Australian consumers’ most popular meat. Annual growth in production of between three and four per cent a year has been experienced by the industry over the past decade and similar levels of growth in production volume are expected to continue for at least the next two to three years. Most production is consumed domestically.

Production is dominated by a number of quite large, vertically integrated, privately owned enterprises. These companies typically own hatcheries, feed mills, breeding farms and processing plants across a number of States, and contract out the growing of their broiler chickens to independent contract chicken growers, of which there are approximately 850 nationally. Each of the major companies operating in the industry invests significant funds into in-house R&D, particularly in the areas of market research and product development, processing technologies, quality control procedures, distribution and packaging.

The RIRDC Chicken Meat R&D Program is also a major partner in the Australian Poultry CRC which ensures a comprehensive and well-coordinated research program for the Australian chicken meat industry. The RIRDC program has been adapted to collaborate with and complement the CRC program.

Avian influenza, while clearly identified as a major threat to the poultry industry many years ago, became a prominent issue for the industry during the second half of 2005 and will continue to be so for the coming year. The emergence and spread of a zoonotic strain of avian influenza across the world (but not to Australia) over the past few years has particularly highlighted the need for industry to continue to focus attention on disease recognition and management
more broadly, and this is a key plank of the Chicken Meat industry’s research program in 2006–07.

While foodsafety hasbeenakeyfocusfortheProgramformanyyears,theimpending release by Food Standards Australia and New Zealand of a new draft food standard for poultry meat, which covers not only the processing but also the growing (farming) sector of the industry, provides additional incentive for the RIRDC Chicken Meat Program to concentrate its efforts even further in this significant area. Maintenance of high standards of product hygiene, quality and microbiological safety is critical if chicken meat’s current highly competitive position vis-a-vis other meats and competing food products generally is to be retained. Opportunities for enhancing industry’s implementation of appropriate food safety programs and other food safety intervention strategies need to be and will be explored.

In order to remain competitive and to expand its markets, the industry also recognises the need for it to continue to make significant gains in areas of technical and cost efficiency. While its record in this respect over the past fifty years has been impressive, new and more effective solutions to old problems will need to be devised,  in order to support industry growth and sustainability. Flock healthandoptimalbirdnutritionandfeedutilisationare critical to the productivity and efficiency of the industry. Therefore, the Chicken Meat Program will, in collaboration with the CRC, continue to seek new ways to manage these issues, particularly through the exploration of alternative approaches for manipulating gut microflora so as to deliver beneficial impacts in terms of gastrointestinal health, feed efficiency and overall flock performance.

Environmental management issues will also continue to pose many challenges for industry over coming years, and there will therefore be a growing need to monitor the industry’s environmental impacts and to develop and implement management programs and technologies which reduce these impacts.

Key long term strategies

Key outputs
RAPID DETECTION OF POULTRY DISEASES  — successful diagnostic tests for Newcastle disease, avian influenza and very virulent infectious bursal disease. The rapid diagnosis of significant emergency viral diseases of poultry can in some cases be complicated by the fact that there are less virulent or completely harmless strains of the same virus circulating in the poultry population, in that some rapid diagnostic tests are not able to differentiate between the highly virulent or pathogenic strains and strains of the virus that do not pose a national threat. This has the potential to not only complicate diagnosis but also slow down the response to a potential incursion of emergency disease while a differential diagnosis can be established.

RIRDC, through its Chicken Meat Program, therefore supported a project to develop highly sensitive, rapid Real Time PRC-based diagnostic tests for specifically detecting highly virulent or pathogenic strains of the three most important emergency diseases of poultry, from which Australia is free – Newcastle disease, avian influenza and very virulent infectious bursal disease. These tests were successfully established by the research and diagnostic teams at the Australian Animal Health Laboratory and will be available in the future to assist in the rapid detection of and response to any incursions of these diseases.


Honeybee
Honeybee Industry R&D Plan http://www.rirdc.gov.au/pub/honeybee.html

Research Manager for 2005–06 - Margie Thomson
Phone: 02 6272 4152
Fax: 02 6272 5877
Email: margie.thomson@rirdc.gov.au

Background
Australian honey is regarded on the world market as a premium quality product. It is produced over a large area from a wide variety of flowering plants which, because of fluctuating rainfall patterns and the extended budding cycles of much of the honey producing flora, tend to flower spasmodically. About 70–80% of honey produced is from native flora, especially eucalypts growing on public, Crown leasehold and freehold land. The flora are diverse, growing as heathland and mallee eucalypts on coastal plains and in semi-arid regions of Australia, through medium rainfall to sub-alpine regions and rainforests of Tasmania, northern New South Wales and Queensland.

Australia produces between 20–30,000 tonnes of honey a year with an estimated gross value of production of about $65 million. This can be variable depending on the volume of honey produced and the price of honey. Domestic consumption is approximately 15,000 tonnes a year and the remainder is exported in pre-bulk form, making Australia the world’s fourth largest exporter of honey. It is estimated that the gross value of production, including queen and package bees, beeswax, pollen and pollination, is $65 million. The value of pollination to the Australian economy is estimated to be $1.7 billion. (J. Gordon, Centre for International Economics, 2003).

Objective
To improve the productivity and profitability of the Australian beekeeping industry.

Research expenditure
2005–06: $313,347 2004–05: $299,535

Key performance indicators

Key long term strategies Key outputs Publications in _005–06
06/052 Honeybee Nutrition – Review of research and practices
05/159 The Use of Australian Honey in Moist Wound Management



Rice
Research Manager for 2005–06 Margie Thomson
Phone: 02 6272 4152
Fax: 02 6272 5877
Email: margie.thomson@rirdc.gov.au

Objective
To improve the profitability and sustainability of the Australian rice industry.

Research expenditure
2005–06: $1,888,551 2004–05: $2,419,792

Key performance indicators

Background
The Australian rice industry is primarily based in the Murrumbidgee and Murray   valleys of southern New South Wales, where some 2500 family farms produce an average of around 1.2 million tonnes of rice annually. It is one of the most productive and efficient rice industries in the world, with yields expected to average around 10 tonnes per hectare in 2006–07. The industry has a farm gate gross value of production of around $350 million and a total value (export earnings, value added) of over $800 million. It exports to more than forty destinations. Including flow-on effects, it has been estimated that the industry generates over $4 billion annually to regional communities and the Australian economy.

From 2004–05 ricegrowers experienced one of the worst droughts on record. This has substantially reduced levy revenues and has resulted in a substantial draw down in Program reserves. This is despite a generous financial contribution from Sunrice Pty Ltd being provided in 2005–06. To ensure the RIRDC Rice R&D Program can continue to deliver key outcomes that will improve the productivity, profitability and sustainability of the rice industry growers elected to increase the levy on 1 January 2006 from $1.97 to $2.97 per tonne for a period of three years to allow the Program to refocus on all of the key objectives of the Program (please refer to the 2006–11 Rice R&D Plan for further information).

Key long term Strategies

Key outputs
Publications in 2005–06
06/056  Rice Grain Quality III
06/055  Evaluating Diversity Array Technology for the NSW Rice Breeding Program
06/027  Improving Quality Through Physiology – Partitioning and transport of nitrogen and sulphur in rice
06/017  Rice – Reaping the rewards of innovation
05/198  Vertebrate Biodiversity on Australian Rice Farms – An inventory of species, variation among farms, and proximate factors explaining that variation
05/197  Agronomic and Molecular Aspects of Osmoprotectant Application and Cold Tolerance in Rice
05/196  Production of Novel Rice Flour Fractions
05/195  Effect of Rice Stubble Burning on Soil Health
05/194  A Gene Machine for Functional Genomics of Rice
05/193  Alternative Methods and Cultural Practices for Establishing Seed and Nutritional Plots
05/192  NIR for Improved Fertilizer Predictions II – for rice
05/143  Rice-based Diets for Protection Against Intestinal Bacterial Infections
05/090  Increasing Cold Tolerance in Rice by Selecting for High Polyamine and Gibberellic Acid Content
04/049  Development of Improved Molecular Detection Methods for Bacillus cereus Toxins

Horses
Research Manager for 2005–06 - Dr John Freestone
Phone: 02 6576 4200
Fax: 02 6576 4020
Email: john.freestone@rirdc.gov.au

Objective
Assist in developing the Australian horse industry and enhancing its export potential.

Research expenditure
2005–06: $578,658 2004–05: $567,882

Key performance indicators

Key long term strategies Industry R&D Plan on the web:  http://www.rirdc.gov.au/pub/equiRD1.html

Background
The horse industry is one of Australia’s biggest industries and is worth more than $8 billion a year. There are about 1.2 million horses used for racing, equestrian sports and recreation, and there is a large breeding industry with Australia producing the second highest number of thoroughbred foals in the world, after the United States.

In 1995, RIRDC appointed an Equine Research and Development Advisory Committee to oversee a national R&D program, following agreement by the then Australian Conference of Principal Racing Clubs (now the Australian Racing Board) to provide significant financial support. The Committee oversees the investment in equine R&D projects with partnership funds from industry and government.

Since the commencement of the Program, additional financial support has been received from Racing Victoria, the Equestrian Federation of Australia, the Australian Stock Horse Society, the Australian Quarter Horse Association, the Australian Equine Veterinary Association, the Australian Thoroughbred Breeders Club, (Hawkesbury), Mr Gerry Harvey, Coolmore Australia, Tyreel Stud, Alanbridge Stud, Logans Insurance, Howard Insurance, Peptech Animal Health, Magic Millions, International Racehorse Transport, the Paint Horse Association, Ms Barb Vial, Dolly van Zaane and the Australian Harness Racing Council. The Committee has worked closely with the Australian Horse Industry Council in promoting and integrating the R&D Program to meet the needs of the horse industry.

The Five-year R&D Horse Industry Plan is reviewed annually by the key stakeholders. A major review to formulate the new five-year plan was undertaken in February 2006 involving all sectors of the horse industry and researchers. This review led to the collaborative development of the new Five-year R&D Plan for the horse industry for 2007–11.

Key outputs

Publications in 2005–06
06/050 Risk Factors for Injuries in Thoroughbred Racehorses
06/048 Plants Poisonous to Horses – an Australian Field Guide (plus poster)
05/167 Evaluation of an Independent Confirmatory Test for Total Plasma Carbon Dioxide (TCO2)
05/136 A Web-based Racing Injury Reporting System for Human and Equine Injuries
05/083 Evaluating Equine Immune Responses to New Ehv-1 Vaccine Candidates
05/070 Horse Research in Progress 2004–05



Fodder Crops
Research Manager for 2005–06 Annette Sugden
Phone: 02 6271 6497
Fax: 02 6272 5877
Email: annette.sugden@rirdc.gov.au

Objective
To facilitate the development of a sustainable and profitable Australian fodder industry.

Research expenditure
2005–06: $545,923
2004–05: $430,683

Key performance indicators

Background
Fodder is defined as the wide range of crop and pasture species that are grown, harvested and lightly processed to facilitate both on farm use and domestic and export trade. The fodder industry is large with an estimated _0,000 producers on 46,000 properties across all States producing between five and seven million tonnes of hay and around two million tonnes of silage per year. This production is traded as a wide range of fodder, including lucerne, clover, pasture, cereal and others. The gross value of production at the farm gate is estimated to be about 1._ billion a year, which represents a 50% increase over the past 10 years. About 30–35% of fodder production is traded off-farm and this share has increased substantially during the last few years.

Domestic fodder production is concentrated in Victoria and New South Wales with Western Australia and South Australia being the major exporting States. The largest domestic market users are the dairy industry (40%), horse industry (25%), feedlot industry (20%) and others (15%).

The animal feeds industry in East Asia is estimated to be valued at US$10 billion, and it is perceived that a large untapped demand will enable the industry to develop many new opportunities. The fodder industry has been taking advantage of this market with exports increasing significantly in recent years to around three quarters of a million tonnes. Australia’s position as a hay supply free of Foot and Mouth Disease has helped maintain markets. The largest market is currently cereal hay into Japan but other markets such as Korea and the Middle East are growing.

Several years ago the Australian Fodder Industry Association (AFIA) developed a case for the introduction of a statutory R&D levy to support a longer-term basis for an R&D Program for fodder. This case was submitted to the Australian Government but was not supported at that time. More recent approaches to government have also not met with further developments. AFIA is continuing to investigate options and to discuss these with government.

In the interim the industry introduced a voluntary R&D levy to enhance the Program. This voluntary levy was first introduced on export oaten hay in 2000–01 but has now been expanded to cover domestic and export hay. Early contributions were just under $200,000 and, while the drought caused a reduced contribution it is expected that this will grow in coming years to between $200,000 and $300,000. RIRDC continues to provide core funds to match this levy as an interim measure.

Key long term strategies

Key outputs Publications in 2005–06
06/002 Producing Quality Oat Hay
05/103 Testing Hay Treated with Mould-inhibiting Biocontrol Inoculum
05/092 Chemical Use in Fodder Crops – Interim report
05/088 Objective Measurement of Fodder Quality Across Animal Species
05/071 Fodder Crops Research in Progress



Pasture Seeds
Pasture Seeds Industry R&D Plan:  http://www.rirdc.gov.au/pub/pastures.html

Research Manager for 2005–06 - Annette Sugden
Phone: 02 6271 6497
Fax: 02 6272 5877
Email: annette.sugden@rirdc.gov.au

Background
Australia, with its diversity of climate and growing conditions, is able to produce pasture seeds ranging from temperate to sub-tropical species for domestic use and for export markets. The export value of certified pasture seeds exceeds $36 million.

Lucerne and clover are the major leviable seed crops. Total production of leviable temperate legume seed currently exceeds 10,000 tonnes. Lucerne and clover seed exports in 2004 were valued at over $25 million. In the three calendar years from 2002 to 2004, the export value of lucerne seed exports rose by 55% and the export value of clover seed rose by 32%. Perennial grasses (phalaris cocksfoot, tall fescue and ryegrass) are grown for seed in all States, with Victoria having the greatest production. Perennial grass seed production is not yet levied for R&D.

The main sub-tropical grasses grown for seed in north-eastern New South Wales, Queensland and the Northern Territory are Rhodes Grass, Setaria, Panicum, CarpetGrass and Paspalum. While none of the tropical and sub-tropical pasture species are currently levied, the industry has indicated in-principle support for a levy on these seeds. A levy base for perennial grasses and sub-tropical grasses would provide scope for an expansion of the research program, and progression towards a more holistic approach to pasture seed research will be dependent upon inclusion of these seed types in the levy structures.

Objective
To facilitate the growth of a profitable and sustainable pasture seeds industry-based on a reputation for the reliable supply, domestically and internationally, of a range of pasture species.

Research expenditure
2005–06: $323,762 2004–05: $261,823

Key performance indicators

Key long term strategies Key outputsPublications in 2005–06

Publications in 2005–06
05/186 Development of a Bacterial Wilt Test to Facilitate the Export of Lucerne Seed
05/119 Technical Report on a Water Balance Study for Lucerne
Seed Production Resourced by an Underground Aquifer
05/116 Dividing the Droplet – A water balance study for
lucerne seed production resourced by an underground aquifer
05/102 Weed Control Options in Annual Pasture Legumes
05/101 Bacterial Wilt of Lucerne
05/089 Effective Weed Control for the Australian White Clover Seed Industry
05/072 Pasture Seeds Research in Progress
05/033 Australian Lucerne Yellows Disease – Pathogen, vector and control


Deer
Research Manager for 2005–06 - Dr Laurence Denholm
Phone: 02 6365 5482
Fax: 02 6365 5482
Mobile: 0418 641957
Email: denholml@bigpond.com

Objective
To foster an Australian deer industry as a profitable and efficient mainstream agricultural enterprise.

Research expenditure
2005–06: $152,674 2004–05: $202,737

Key performance indicators

Background
The Australian deer industry is based on breeding temperate deer species for  production of velvet antler, venison and venison co-products. The industry has a strong export focus with about 80% of product sold into Asian and European markets. Production is concentrated in the south-eastern States with some breeding of temperate species in other States and tropical species (rusa and chital deer) in Queensland. The estimated GVP of the industry is currently about $6 million a year at farm gate, 70% from venison and _0% from velvet antler with some local value-adding. Independent market analysis has shown venison has significant advantages over other red meats and has low fat content.

In 2005–06 RIRDC and the deer industry reviewed venison production, culminating in the endorsement by industry of a new strategic plan for venison production. The key element of this plan is facilitation through RIRDC research of the establishment of venison supply chain alliances. The RIRDC Deer Five-year R&D Program will be heavily focussed on the implementation of this industry-endorsed strategic plan for the foreseeable future.

Key long term strategies

Key outputs

Publications in 2005–06
06/043 The Relationship of Body Condition Score with Consumer Perception of Venison Quality – Deer venison
05/122 National Velvet Accreditation Scheme Database Development - Deer Industry Newsletter


Buffalo
Research Manager for 2005–06
Dr Peter McInnes
Phone: 08 8556 7331
Fax: 08 8556 7289
Email: mcinnes2@comstech.com

Objective
To accelerate the commercial development of the buffalo industry.

Research expenditure
2005–06: $49,924
2004–05: $11,222

Key performance indicators

Key long term strategies Background
A buffalo industry has been in existence in Australia for well over a century. For many years the export of hides was the main commercial trade with an average of 7000 hides exported annually between 1911 and 1956. Live exports commenced in 1958. In 1983 the Australian buffalo population was about 280,000. The brucellosis/ tuberculosis eradication campaign (BTEC) reduced the number to 40–50,000 by 1992. A spin-off from BTEC was the stimulation of more manageable herds and better meat processing objectives including a quality tenderbuff carcass with well-defined specifications.

Buffalo farming occurs throughout Australia with the majority located in the Northern Territory. There is a Commonwealth statutory levy on Buffalo slaughtered and exported and since 1995–96 levy funds and matching Commonwealth Contributions have been administered by RIRDC for R&D.

The importation of some Riverine buffalo to Australia in the 1990s has provided the opportunity for crossbreeding with the local swamp buffalo. Progeny from this breeding have faster growth rates and reach tenderbuff specifications at a younger age. Crossbreeds, particularly with a high infusion of the Riverine breed, and purebred Riverine, are being milked for cheese and yoghurt products.

Key outputs
• increased conception rates in artificially inseminated buffalo including heifers to at least 50% in both tropical and temperate Australian environments

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Last updated: November 2007
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