RIRDC 2005-2006 Annual Report

Output
To achieve a more diverse rural sector through development of new agricultural and related industries

Research Managers in 2006–07
Dr Roslyn Prinsley
Essential Oils & Plant Extracts Tea Tree Oil Wildflowers & Native Plants Ph: 02 6272 5227 Email: roslyn.prinsley@rirdc.gov.au

Dr Peter McInnes
New Animal Products Rare Natural Animal Fibres Ph: 08 8556 7331 Email: mcinnes2@comstech.com

Value to Australia’s economy
New industries have produced substantial benefits to Australia. The value of a subset of 27 of Australia’s emerging rural industries is conservatively estimated to be $673 million and to contribute 2.2% of the gross value of farm production.

Opportunity, diversity and resilience
New and emerging industries bring opportunity, diversity and resilience to rural Australia. They provide farmers with new markets to meet changing food and fibre fashions, new medicinal and nutraceutical products and new approaches to environmentally sustainable farming. Over the 20 years to 1996–97, the proportion of gross agricultural output arising from traditional major commodities has fallen from over 75% to 59%. Over 60% of farmers now have multiple enterprises, accounting for over 70% of the value of agricultural output.

Objective
To facilitate the development of new industries based on plants or plant products that have commercial potential for Australia.

Background
RIRDC assists diverse prospective industries that show evidence of being commercially viable and have the potential to contribute to regional development and the national economy. New plant products are defined as those that appear to have commercial potential but are too novel for support through the work of other R&D bodies, or do not attract levies or voluntary contributions. They include re-examination of crops/plants that have been tried but which now may have commercial potential due to changes in harvesting or processing technology or demand. The Program has six components:

In 2005–06 the Corporation funded specific projects for 15 of these industries. Other projects covered a broad spectrum of species and their products such as skin, milk and meat. Research and development is also being undertaken along the value-added chain. For the very small potential industries, initially R&D is directed to feasibility studies and/or the development of a business plan.

Funding continues on the commercialisation of native and feral animal products where enhancement of the environment and biodiversity are not threatened
– specifically for kangaroo, emu, crocodile and witchetty grubs. Other projects continue in farmed rabbit, ostrich, dairy goat, milking sheep and silk production.

Ratite Sub-account

06/042	Breeding Bigger Yabbies – Developing a genetically improved yabby to facilitate farm enterprise diversification
06/016	Crocodile Farming Research – On farm research of pelleted feed for crocodiles
06/008	Potential Markets for New and Emerging Meats
05/200	Reproductive Technologies for Ratite Farming
05/154	Emerging Animal and Plant Industries – Their value to Australia
05/153	New Animal Products R&D Plan 2006–09
05/152	Crocodile Farming Research – Hatching to harvest
05/145	Silk Production in Australia
05/142	Dairy Products & Farming Techniques for the Sheep Milking Industry
05/140	Novel Flavours, Products and Safe Delivery of Alternative Meats
05/108	Kangaroo Industry Strategic Plan 2005– 2010
05/057	New Animal Products Research in Progress 2004–05

Publications in 2005–06
06/042 Breeding Bigger Yabbies – Developing a genetically improved yabby to facilitate
farm enterprise diversification
06/016 Crocodile Farming Research – On farm research of pelleted feed for crocodiles
06/008 Potential Markets for New and Emerging Meats
05/200 Reproductive Technologies for Ratite Farming
05/154 Emerging Animal and Plant Industries – Their value to Australia
05/153 New Animal Products R&D Plan 2006–09
05/152 Crocodile Farming Research – Hatching to harvest
05/145 Silk Production in Australia
05/142 Dairy Products & Farming Techniques for the Sheep Milking Industry
05/140 Novel Flavours, Products and Safe Delivery of Alternative Meats
05/108 Kangaroo Industry Strategic Plan 2005– 2010
05/057 New Animal Products Research in Progress 2004–05

^Asian
Foods

^{Research
Managers for 2005-06 Tony Byrne and Dr Roslyn Prinsley}
^{Phone:
02 6272 5472/6272 5227}
^{Fax:
02 6272 5877}
^{Email:
tony.byrne@rirdc.gov.auroslyn.prinsley@rirdc.gov.au}

^Objective
^{A
prosperous competitive Asian food industry in Australia, exporting to Asian
markets and replacing imports in the Australian market.}

^{Research
expenditure}
^{2005-06:
$534,360}
^{2004-05:
$521,854}

^{Key
performance indicators}

^{consumer
research data capable of driving grower production}
^{number
of new markets served by Australian production}
^{increase
in volume into existing}
^{number
of active grower groups}
^{evidence
that growers and others in the value chain are changing their practices
in response to available knowledge}
^{supermarket
survey results indicating improvements in reliability and quality of supplies}
^{number
of new products with high prospectivity identified}

^{Key
long term strategies}

^{understand
consumer needs in both domestic and export markets}
^{communicate
and collaborate with industry}
^{improve
crop productivity, sustainability and produce quality}
^{foster
development of new products, both fresh and semi-processed}

^Background

^{The
domestic market has been an important production driver with exports growing.
However, the share of production that is exported has declined because
of increased competition from China, Vietnam and New Zealand. Growth in
processed Asian food products has been slower, reflecting constraints like
relatively high labour costs, lack of brand name appeal and shortcomings
in marketing expertise.}

^{Asian
vegetables have the capacity to be recognised by Australian consumers as
a major fresh produce retail category with the introduction of consistent
nomenclature, dietary and functional food quality research and product
promotion.}

^{Exporting
of fresh Asian vegetables will continue to be very competitive and best
returns will be achieved by a whole chain approach for boutique products
that bypass Asian central markets.}

^Key
outputs

^{released
a crop protection manual for the Asian food industry to assist the process
of off-label permit use for minor crop chemicals}
^{released
a publication on how traditional Japanese cultivation systems for wasabi
have been adapted to suit Tasmanian conditions}
^{published
the newsletter Access to Asian Foods}

^{this
newsletter completed its eighth year of production in multi-language versions
of English, Chinese, Cambodian & Vietnamese}

^{brokered
a supply chain agreement on the consistent naming of fourteen common Asian
vegetables}

^{Publications
in 2005-06}

05/058 Asian Foods Research in Progress 2004–05
05/093 Crop Protection – An issue for the Asian vegetable and herb and spice industries
05/144 Commercial Taro Chip Development Using Agri-chain Partnerships

Essential Oils

Industry R&D Plan on the web: and Plant Extracts http://www.rirdc.gov.au/pub/essentoi.html

Research Managers for _005–06 Tony Byrne and Dr Roslyn Prinsley
Phone: 02 6272 5472 Fax: 02 6272 5877
Email: tony.byrne@rirdc.gov.au

Objective
To support the growth of a profitable and sustainable essential oils and natural plant extracts industry in Australia.

Research expenditure
2005–06: $243,420 2004–05: $199,876

Key performance indicators

average industry oil yield per hectare
availability of information for grower use
availability of information on world production levels and trends
extraction efficiencies
levels of local production/import substitution

Key long term strategies

improve market knowledge for essential oils and plant extracts
improve existing products and encourage new crops and products (including uses for existing products)
develop sustainable and profitable production systems
facilitate regulatory approvals for essential oils and plant extracts
promote cost effective post harvest and extraction technology to improve yield and quality
encourage the development of essential oils and plant extract industries by promoting industry networks and the flow of information

Background
Essential oils are used in the food flavouring, cosmetics and fragrance industries with an expanding use in aromatherapy and other health care areas.

Changing consumer preferences in favour of natural over synthetic substances have had a strong impact on pharmaceutical and cosmetic industries, translating into growing demand for the industry. There is increasing interest in essential oils in Australia and there are good opportunities for producing plant extracts from both native and exotic species. Current value of production of essential oils (excluding tea tree oil) is around $1011 million at the farm gate. The industry is made up of around 150 commercial producers, with production dominated by a few larger firms. Most essential oil production takes place in Tasmania, Victoria and New South Wales.

Medicinalherbs offerpotentialforAustralianproductionofplantextracts.Atpresent, about one-third of the 250 tonnes used each year is supplied from Australia.
Australia is a reliable supplier of clean, good quality, unique oils and extracts based on the use of high technology in both production and extraction. However, growers must understand the needs of processors and meet well-defined quality parameters.

Key outputs

published a report on bioactivity of Lavandula essential oils, hydrosols and plant extracts
produced new polyploid varieties of lavender and lavandin which should yield greater volumes of higher quality oils
released a report on development of a celery oil and extract industry in Tasmania
designed new saffron drying technology to improve quality
evaluated the potential for selected medicinal herbs – astragalus, bilberry, feverfew and stevia
identified and assessed market opportunities for selected medicinal herbs

valerian, arnica, skullcap, echinacea and golden seal – and evaluated factors limiting Australian grower access to these markets

improved flow of research information to industry through production of the Essential Oils Newsletter

Publications in 2005–06
06/038 Bioactivity of Lavandula – Assessment of Lavandula essential oils, hydrosols and plant extracts
05/185 Medicinal Herbs – A preliminary evaluation of astragalus, bilberry, feverfew and stevia
05/133 Development of a Celery Oil Extract Industry
05/091 Increased Yields from Tasmanian Peppermint Crops
05/059 Essential Oils and Plant Extracts Research in Progress 2005–06
04/145 The Australian Herbal Medicines Industry Feasibility Study – Making the functional and fashionable feasible

Rare Natural Animal Fibres

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

Objective
To facilitate the development of new and established industries based on rare natural fibres.

Research expenditure
2005–06: $266,419 2004–05: $243,762

Key performance indicators

improved reproduction techniques in alpaca
improved genetics for cashmere goats
adoption and utilisation of R&D results
increased production benchmarking for angora goats

Key long term strategies

address, within budgetary limitations, strategies and targets in the 2003–08 R&D plan
identify constraints and solutions hindering increasing mohair and cashmere production
increase productivity on farm by investment in reproduction and breeding research
develop improved fibre scouring strategies, to give Australia competitive advantage

Background
The Program can incorporate cashmere, mohair, alpaca fibre, camel hair and other rare fibre projects. The R&D projects currently cover the first three of these fibres.

Prices for rare natural fibres remain buoyant. Reducing fibre diameter is still a high priority for all these industries. Raising the efficiency of production by growing what is required by the processors/markets will increase productivity and net returns.
A continuing concern in the mohair and cashmere industries is limited investment in production contrasting with a relatively static number of alpaca farmers that are increasing total production. An increase of up to 50% in the value of mohair and the more realistic prices being paid to producers for alpaca fleeces could have some medium term effects on the level of investment in these industries.

Key outputs

produced a computer software model – Biz Mod – for mohair to examine the establishment of a self-replacing angora enterprise with a breeding herd size of 300 does
revised and republished a manual to complete the objectives of a project on drought feeding guidelines for caprines, including both feed and water requirements
completed the analysis of data from goat farms and concluded that the length and quality of the first product of processing cashmere can be manipulated by altering the quality attributes of raw cashmere

Publications in 2005–06
06/086 Towards a Perfect Angora Goat Enterprise
06/015 Benchmarks for Cashmere
05/188 Nutrition and Management of Goats in Drought
05/141 Selecting High Performing Angoras
05/060 Rare Natural Animal Fibres Research in Progress
04/097 Making Cashmere Attractive to Investors

ACTUAL	2004-05 ($)	2005-06 ($)
Opening Balance	4,676	14,146
Total Revenues	51,789	58,059
Total Expenditure	42,319	53,187
Surplus/(Deficit)	9,470	4,872
Closing Balance	14,146	19,018

Wildflowers and Native Plants
Industry R&D Plan on the web: http://www.rirdc.gov.au/pub/wildflow.html

Research Manager for _005–06 Max Bourke AM
Phone: 02 6247 4630 Fax: 02 6247 4051 Email: mbourke@ruralfunds.com.au

Objective
To improve the profitability, productivity and sustainability of the Australian wildflower and native plant industry.

The key commercial wildflowers are Geraldton wax, kangaroo paw, Thryptomene, Stirlingia and species of Banksia, Leucadendron and Protea, with species other than waxflower increasing in relative importance. The major markets are Japan, the United States, the Netherlands, Canada and Germany. Eucalyptus buds and foliage are also important. Opportunities exist for both the cut flower and foliage sectors plus the nursery industries in native plants. Fashion changes will demand continuing new cultivars and species.

Research Manager for 2005–06 Dr Roslyn Prinsley
Phone: 02 6272 5227 Fax: 02 6272 5877
Email: roslyn.prinsley@rirdc.gov.au

Objective
To support the continued development of an environmentally sustainable and profitable Australian tea tree oil industry that has established international leadership in marketing, value-adding, product reliability and production.

Tea Tree Oil Sub account
ACTUAL	2004-05($)	2005-06($)
Opening Balance	34,320	13,320
Total Revenues	278,254	440,474
Total Expenditure	299,254	452,106
Surplus/(Deficit)	(21,000)	(11,632)
Closing Balance	13,320	1,688

Tea tree (Melaleuca alternifolia) is native to the north coast of New South Wales

Its oil has gained widespread therapeutic use for fungal and microbial infections, but is not yet registered for use by the medical profession. The industry comprises about 100 growers and is located principally in northern New South Wales and on the Atherton Tableland in Queensland. About 4,500 hectares of cultivated tea tree grows in these locations. In 2004–05, 517 tonnes of oil was produced.

The Australian Tea Tree Industry Association is the peak industry body. More than 90% of Australian tea tree oil is exported, principally to North America and Europe. The major end uses of the oil are in antimicrobials and cosmetics, with much of the oil being sold as a pure oil.

The recent imbalance between supply and demand is being rectified through restructure of the industry and through the development of new products
which will increase demand. The industry remains optimistic about its future. The challenge is to build on recent R&D achievements, particularly relating to safety and efficacy, and to explore options for new applications of tea tree oil. On the production side, continued work on breeding superior genetic material also remains a priority.

Kangaroo Sub account
ACTUAL	2004-05 ($)	2005-06 ($)
Opening Balance	139,030	234,615
Total Revenues	167,762	195,690
Total Expenditure	72,177	138,967
Surplus/(Deficit)	95,585	56,723
Closing Balance	234,615	291,338

2005-06 ANNUAL REPORT Back to index page

Asian Foods

2005-06 ANNUAL REPORT
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^Asian
Foods