Rural Industries Research & Development Corporation
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ForewordThis Plan is the first attempt to analyse the R&D priorities for the New Animal products program. It presents the rationale for the program that the Corporation manages on behalf of the Commonwealth government and industry, and provides all stakeholders with guidelines on what R&D will be funded by the Corporation.
Many industry representatives have provided inputs into the Plan and the Corporation appreciates their valuable contributions.
The Plan has four Objectives directed at marketing, production, processing/product development, and information transfer. Strategies, major targets and performance indications are recorded. Recent publications of project reports are referenced reflecting the scope of the program with respect to the number of species and investments along the production, processing and marketing chain.
Peter Core
Managing Director
Rural Industries and Development Corporation
1 Purpose of the Plan To document R&D needs of stakeholders investing in new animal products; To present the rationale for RIRDC’s sub program (subsequently referred to as program) that the Corporation manages on behalf of the Commonwealth government and industries; To provide researchers and advisory personnel guidelines on what R&D will be funded by RIRDC; To facilitate interactions between various animal industry interests along the value-added chain;
The purpose of the Plan is to consider the needs of over 40 prospective and fledgling livestock industries covering the supply, production, processing, marketing, industry development and training. Recent publications, surveys and meetings with various industry representatives have provided the opportunity of producing this document. Some needs and issues are similar across industries and these plus major individual needs of specific industries have been captured in this Plan.
The Plan has a scope of 3 years only. Owing to the dynamic and sometimes abrupt changes that can occur in some of these new industries, and the entry of new industries, a longer horizon would be unrealistic if achievement of the major elements of the Plan is to occur. Various industry representatives supported this time-line.
2 Vision and Mission Statements Vision is for viable prospective animal industries.
Mission is to facilitate R&D investments for the growth and profitability of prospective animal industries, producing in a viable and innovative way quality goods for national and international customers.
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Contributions to the Plan |
Information from publications and meetings form the basis for analysis of some of the industries (Appendix 1). These sources provided some of the industry issues and priorities for development, and address some of the R&D options.
The above was supplemented by two written surveys in 2001. One survey was of 27 representatives of industry associations and other stakeholders that cover production, processing and marketing. The other survey was of 10 persons who had or who are undertaking R&D in prospective animal industries.
The total return was 76%, with industry/stakeholders representatives at 70%.
A copy of the draft Plan was also circulated to the survey respondents and comments received have been considered in the final preparation of the Plan.
4 Developing the Plan 4.1 Industry Characteristics 4.2 Industry Values 4.3 Industry Associations 4.4 Developing the Industries and the People in Them 4.5 Past and Present R&D Investment in the Program 4.6 Resourcing and Managing the Program
Besides the direct contributions referred to in Chapter 3 the overall Plan has been developed using appropriate components that give the framework – scope and character – to the Program. It provides information on recent and present R&D investments, and describes how the program is resourced and managed.There are over 40 animal species that RIRDC has had enquiries related to the possibility of R&D investments. These are given in Appendix 2 and are categorised on the basis of investments and the extent of time that has been given by RIRDC in recent years in response to project identification and implementation, and also various enquiries.
The scope covers the semi/tropical zones including crocodiles and buffaloes, the semi/arid zones for emus and camels, while species such as kangaroo, ostrich, milking sheep and dairy goats are raised in various environments.
Many of species are native including possum, wallaby and nature geese. Some are feral such as camel and wildboar, while some are now raised in captive/farm environments such as rabbit and emu.
Some species are exported live including buffalo, camel, ostrich and dairy goats. There is potential for sustainable economic use of native birds and reptiles particularly for export markets. However there are legislative prohibition preventing commercial exports.
Processing includes use of abattoirs for meat from farmed livestock. Other animals are harvested with initial processing in the field (eg kangaroo and wildboar). There are some dedicated abattoirs for some species such as emu, ostrich, gamebird and rabbit but others such as buffalo and camel rely on using meat works that process mainly beef. Besides meat processed at abattoirs some co-products are value-added in Australia with the anti-inflammatory properties of emu-oil, for example, of considerable interest. Much of the goat and sheep milk processing occurs at factories; many of which process cow’s milk. However, some is successfully processed commercially on farm in a vertical integrated production/processing and marketing arrangement. Skins of some species are the most valuable commodity produced and many of these are partially treated in Australia before exporting for leather production.
Many products are mainly exported (eg meat from ostrich and emus; all livestock skins). For others there are increasing export demands (eg camel and buffalo meat, goat cheeses). On the other hand many others rely on domestic markets (eg duck, sheepmilk, rabbit and hare). Most meat is only for human consumption although 70% of the kangaroo meat is sold for pets and the remainder for human consumption in Australia and other countries.
The gross value of production at the farm gate is based on reports and industry assessments given in Appendix 3. The total value of all these industries in 1999/2000 was around $180m. It is difficult to obtain accurate figures as no government official surveys are undertaken, there are no national associations for many of the industries and some national associations have as members only a small proportion of producers or suppliers.
Trends over recent years include:
4.3 Industry Associations Increase in the human consumption of kangaroo meat by a factor of 2 over the past five years; Increase in the export of ostrich meat from 80t in 1996/1997 to 800t in 1999/2000. A continued growth in the production of dairy goat milk. For example in Victoria from 200,000 L/year for cheesemaking to 1,150,000L in eight years with 63% increase between 1997/1998 and 1999/2000. For most of the industries classified as A or B in Appendix 2 there are national associations that are meeting at least annually. Some of these and other representative associations are given in Appendix 4. In most industries there is frequent liaison between the executive of these and the Program Research Manager.
There is often a rapid turnover of members who serve as executives of industry associations. Sometimes these changes bring different emphasis of industry needs and directions. For example supply priorities can be moved quickly to those of marketing and vice versa once new markets are accessed and developed. These fluctuations hinder in some instances long term planning that is needed for industry stability and fruitful R&D programs.
4.4 Developing the Industries and the People in ThemGenerally new industries develop through various stages. There is the innovative idea/concept when there are a low number of independent enterprises with little linkage. At that stage RIRDC has funded numerous feasibility studies to ascertain the likelihood of these fledging enterprises to build to profitable, viable industries (eg rabbit, hare, snail and goanna). Many industries might then move through phases of enthusiastic support, some growth, informal linkages and the drivers start to emerge. Often there comes the time when linkages become more formalised with a group of producers formulating articles of an association some of which will cover all sectors – production, processing and marketing. RIRDC often assists in facilitating initial meetings. To help newly formed associations to reach as many stakeholders as possible RIRDC has provided co-funding for the production of industry Newsletters that publish both industry news and R&D inputs, outputs and outcomes.
There have been successes and failures in some enterprises raising the livestock species included in the Program. In the early stages of some industries stock costs are exorbitant, as supply is limited. The value of stock in these stages far surpass the value of the commodities and some investors have suffered poor dividends. In some instances animals have been raised in the wrong climatic environment but this situation eventuates because Australia is a large island where investors are scattered and want to establish production enterprises relatively close to population centres. The circumstances are further exacerbated when stock have to experience lengthy transport to far-away processing works. Fortunately many enterprises have been through the high costs initiation phase and recent research on financial indicators show a favourable internal rate of return and benefit/cost ratios for some industries.
The human resource base of the industries has people of varying experience from traditional livestock producers and processor/marketers that wish to diversity to new entrants to primary industry who invest in a relatively small amount of land and do not have access to best practice procedures. Some producers have mixed enterprise farms with some of these having off-farm income; others might rely specifically on a single enterprise consisting of harvest/raising, processing and marketing products of one livestock species.
There is always a need for these stakeholders to have improving access to information and training in both business and technical skills. Obtaining benchmark information on costs, returns, constraints and opportunities for various industries and sometimes across industries provides guidelines to assist improvement in management. Facilitating industry representation at appropriate conferences, meetings, and workshops, nationally and internationally are worthwhile RIRDC investments.
4.5 Past and Present R&D Investment in the Program
The technical outputs and financial inputs of the Program have been analysed and evaluated on a project basis in RIRDC Publication No 00/114. Some sets of completed projects gave relatively high rate of returns on investments (RIRDC Publication No 00/115).
Summaries of recently completed and continuing projects are give in RIRDC Publication Nos 99/108 and 00/79.
The present Program has about 30 projects with a level of investment of $960,000. In 2000/2001 the cost of projects related to supply and/or production represents 61% of the total while the value for processing/product development/food safety is 22%, for marketing 14%, and for industry development and feasibility studies 3%.
The present program includes R&D in meat, milk and skins and cover kangaroo, ostrich, emu, crocodile, milking sheep, dairy goats, rabbit, earthworm, gamebirds, camel, and silkworm.
4.6 Resourcing and Managing the Program
The Program has been funded over the last eight years by RIRDC (35%), Industry (22%) and Research Agencies (43%). The RIRDC contribution is mainly from Commonwealth core funding. A statutory levy from buffalo producers provided a revenue of $20,000 (including Commonwealth matching) in 2000/2001. For kangaroo a voluntary industry contribution of $15,000 was provided in 2000/2001. In addition a new statutory levy on meat for human consumption that was introduced in January 2001 gave a revenue of $21,500 in 2000/2001.
The Program is supervised by a Research Manager who operates within the RIRDC charter and priorities and is guided by the outcomes from meetings and communication with industry associations, owners/managers of enterprises along the value chain, investors, research agencies and researchers.
5 The Key Strategies for R&D A summary of information for the different SWOT components is given in Appendix 5. The information is based on Workshops, Publications and Surveys as referred to in earlier chapters.
Often the tabling of SWOT information remains a listing that is not well linked with strategies. In this document a SWOT analysis is used as the basis for deeper appraisal to develop overall industry strategies (Appendix 6).
The analysis includes maximising ‘opportunities’ using ‘strengths’; strategies to overcome ‘weaknesses’ by using ‘strengths’; and strategies to overcome ‘threats’, by using ‘strengths’ and ‘opportunities’.
Strategies given in Appendix 6 include those that can be addressed by R&D and also those that require other activities such as commercial investment, promotion, marketing, industry consultation/leadership, regulations etc.
From the analysis the major strategies that require R&D innovation for most, if not all, industries are:
Other factors that R&D can contribute to are: Product Development Production R&D Marketing R&D Transport and Distribution Costs Improving Standards and Quality Assessing Infant Industries Reducing Productive Costs Increasing Reproduction Rates Improved Breeding Systems Lowering Processing Costs Improved Distribution Methods for Products Improved Continuity of Supply Maintain High Standards of Animal Health and Welfare Other activities that could be included as appropriate in the program are: Development of Alliance in the value added chain Using advanced technology Assisting in publication of industry Newsletters Assisting communication within industries and between industries Facilitating national and international visits of industry personnel Identifying sources of commercial investment Training
6 The R&D Plan for 2002-2005 The overall objective of the plan is to accelerate the development of viable new animal industries. The objective will be addressed by allocating available funds for the strategies developed in previous chapters. For some industries specific strategies are also included. Targets have been set and performance indicators on outputs declared.
The R&D Plan is based on the familiar conceptual model of the value added chain comprising links representing, for example, developing markets, improving processing, continuity of supply and increased productivity.
R&D will be aimed at:
Increasing market penetration and development Improving processing, product development and diversification Improving supply and productivity Facilitating information transfer, industry development and community awareness
Strategies v Marketing R&D v Improving Transport of Livestock and Distribution Methods of Products
Objective TwoTo improve processing, product development and diversification
Objective Three
Objective FourTo facilitate information transfer, industry development, human capital and community awareness
7 The R&D Program and Annual Operating Plans Annual operating plans allocating funds for R&D in the program will be based on this 3 year plan. Targets that will be attempted between 2002-2005 will depend on the annually approved funding. Priorities will change during this period depending on industry development, changes in industry leadership, R&D outputs, and outcomes in industry from adoption of outputs in current projects. However it is anticipated that funding allocations to the Objectives will reflect recent investment patterns as given in 4.5. That is investments will be on average 15% for Objective 1, 20% for Objective 2, 60% for Objective 3, and 5% for Objective 4.
8 Benefit and Investment A benefit/cost and internal rates of return assessments for the program were recently completed (RIRDC Publications No 00/114 and No 00/115). Favourable returns were determined for the selected set of completed projects.
It is anticipated that a similar evaluation process could occur prior to 2005.
9 Some Recent Program Publications Some recent publications mostly based on final project reports are given in Appendix 7.
The reports are available in hard copy for the cost of printing and postage. Most reports are also available on RIRDC Web: www.rirdc.gov.au.
10 Appendices
- 10.1 Appendix 1: Publications and Meetings that Contributed to Plan
- 10.2 Appendix 2: The scope of animal species addressed in the Programs
- 10.3 Appendix 3: Some Farm Gate Values of some of the Industries in the Program 99/00
- 10.4 Appendix 4: Industry Associations that relate to the Program
- 10.5 Appendix 5: SWOT Information
- 10.6 Appendix 6: SWOT Analysis
- 10.7 Appendix 7: Some Recent Publications
10.1 Appendix 1: Publications and Meetings that Contributed to the PlanMcInnes, P (2000) Prospective Australian Animal Industries – Australian Society of Animal Production Satellite Conference, University of Queensland, Gatton College
Michael, D (2000) Benchmarks for New Animal Products – Emu and Ostrich Production. RIRDC Publication No 00/136
Michael, D (2001) Benchmarks for New Animal Products –Alpaca, Buffalo and Rabbit Production. RIRDC Publication (in press)
Australian Emu Industry Research and Development Plan 2000-2005
Sheepmilk RIRDC Workshop Report 2000
Queensland Crocodile Industry Advisory Meeting 2000
Export Gamebird Project Advisory Committee Meeting 2000
RIRDC Skin Meeting, CSIRO Melbourne 2000
Australian Buffalo Industry Council AGM 2001
10.2 Appendix 2: The Scope of Animal Species Addressed in the Programs
Category Description Animal Species A Current R&D Investment relatively high Kangaroo, ostrich, emu, crocodile, dairy goats, milking sheep, rabbit B Current R&D or Recent Investment medium Camel, buffalo, gamebirds, (ducks, turkey, squab, pheasant, quail) earthworm, silkworm C Feasibility Studies or lower Investments undertaken on fledgling enterprises Yabbies, snails, hares, alpaca meat, native birds and reptiles, antelope, goanna, cane toad, llama
D Preliminary Proposals or enquiries Cape Barron geese, magpie geese, mutton bird, bison, yak, turtle, beefalo, donkey, witchetty grubs, wildboar, frogs guinea pigs, flying fox, marron wallaby, possum
10.3 Appendix 3: Some Farm Gate Values of
Some of the Industries in the Program 99/00
Industry Product Value $m Kangaroo Meat
Skin43.0
48.0Ostrich Meat
Skin
Live6.0
1.2
1.5Emu Meat 2.5 Crocodile Meat
Skin0.8
4.5Camel Meat 0.2 Buffalo Meat
Live0.4
0.9Rabbit (farmed) Meat 0.9 Duck Meat 15.0 Turkey Meat 10.0 Gamebirds Meat 12.0 Goat Milk 2.5 Sheep Milk 0.8
10.4 Appendix 4: Industry Associations that Relate to the ProgramKangaroo Industries Association of Australia, Chairman, Lindsay Packer,
PO Box 113, Kallangur QLD 4503 Phone (07) 3202 1677Australian Game Producers’ Association, President Mike Mulligan,
22 Churchill Street, Auburn NSW 2144 Phone (02) 9748 2261Central Australian Camel Industry Association, Executive Director, Peter Seidel,
PO Box 8760, Alice Springs NT 0870 Phone (08) 8951 8183Australian Goat Milk Association, Chairperson, Hanna Wardell,
RMB 2930, Childers Settlement Road, Childers Vic 3824 Phone (03) 5634 7603Australian Buffalo Industry Council, President, Michael Swart
PO Box 39223, Winnellie NT 0821Emu Farmers Federation of Australia, President, Bruce Makin
PO Box 344, Keith SA 5267 Phone (08) 8755 3026Commercial Rabbit Breeders Association, President, Graeme Fullerton
‘Bundabah Stud’, Pacific Highway, Tea Gardens NSW 2324 Phone/Fax
(02) 4997 3112Australian Ostrich Association, President, Dennis Saint
45 Settlement Road, Bellarine Vic 3223 Phone (03) 5251 3610Game Industry Council of Australia, President, Carl Fraser,
Game Farm Pty Ltd, PO Box 102, Galston NSW 2159 Phone (02) 9653 2113
10.6 Appendix 6: SWOT Analysis
Opportunity Strengths Strategy Product Development R&D Capability
Satisfactory Processing
Satisfactory Supply
Enterprises willing to take risksR&D Innovation
Commercial InvestmentProduction R&D R&D Capability R&D Innovation Marketing R&D R&D Capability
Enterprises willing to take risksR&D Innovation
Commercial Investment
Truth in Labelling
Brand Development
Alliances in marketing chain
PromotionDeveloping Export Markets Enterprises willing to take risks
Products healthy/safe
Satisfactory supply and processing
Government consultation
Game Industry CouncilAttendance at Trade Fairs
Visiting overseas countries
Assess the need of generic marketing
Develop protocols for exporting
Utilise government overseas agenciesImproving Standards and Quality R&D Capability R&D Innovation Development of Standards Regulations and Quality Assurance
Assessing Infant Industries R&D Capability R&D Innovation Commercial Investment
B. Strategies to Overcome ‘Weaknesses’ by Using ‘Strengths’
Weakness Strength Strategy Production, Costs Too High; Reproduction Cost; Breeding Problems R&D Capability R&D Innovation Insufficient Markets (Refer to A) Processing Costs Too High Limited Processing Access
R&D Capability
Game Industry Council
Government ConsultationR&D Innovation
Alliances in marketing chain
Government initiatives in reducing costsInsufficient Distribution R&D Capability
Industry Leadership
Enterprises willing to take risksR&D Innovation
Alliances in market chain
Using advanced technologyC. Strategies to Overcome ‘Threats’ by Using ‘Strengths’ and ‘Opportunities’
Threats Strengths/Opportunity Strategy Exotic Disease Quarantine System
Government Consultation
Game Industries CouncilRegulations
Publicity
SurveillanceContinuity of Supply Potential for Growth
Enterprises willing to take risks
Adoption of R&D ResultsR&D Innovation
Alliance in supply chain
Communication within industriesNegative Publicity Industry Leadership
Government Consultation
Raw products are healthy
Environmentally sustainable
Contribution to Rural and Regional Development
Taking Advantage of Australian ImageIndustry Newsletters
Public RelationsAnimal Welfare R&D Capability
Production R&D
Improving standards and quality
Government ConsultationR&D Innovation
Public Relations
10.7 Appendix 7: Some Recent Publications
Title RIRDC Publication No. NAP research in progress 99/108 New Animal Products Research in Progress 00/79 Evaluation of the Prospective New Industry Program – Stage 1 and 2 00/114; 00/115 Emu Products Increasing Production & Profitability 99/143 Emu oil – its anti-inflammatory properties 99/133 Declawing of farmed emus – harmful or helpful? 99/177 Emu Farming – Development of reproductive technology 00/37 Benchmarks for New Animal Products – Emu & Ostrich Production 00/136 Improving Skin Quality of Emus and Ostriches 01/04 Ostrich enterprise budgeting software 99/117 Ostriches – Their Nutritional Needs Under Farming Conditions 00/120 Genetic Evaluation for Australian ostriches 00/153 Specialty goat cheese 98/116 Year round supply of Goat Milk 00/31 Dairy Goat Products – Developing New Markets 01/55 The Palatability & Potential Toxicity of Australian Weeds to Goats 00/139 Australian Farmed Rabbit 99/89 Cartilage Co-products – Commercial development of alternative production species 00/35 Marketing Analysis and Plan for the Camel Industry 00/09 Skin Disease of Farmed Crocodiles 00/74 Crocodiles – Restraining and meat quality 00/105 Development of speciality dairy products from sheep milk 99/69 Dairy Sheep – Commercial Scale Management & Breeding Procedures and Production of Sheepmilk Powder 01/29 Self-selection of diet by growing meat-type ducks 00/156 Farming European Brown Hare – Feasibility Study 00/75 Potential for expansion of the Freshwater Crayfish Industry in Australia 00/142 Breeding and Growing Snails Commercially in Australia 00/188 Australian Buffalo Industry - Market Research and Feasibility Study 99/71 Increasing buffalo production using reproduction technology 00/165 Maximising Marketing Opportunities for Buffalo Products 01/15
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Last updated:19 July 2001
Copyright © RIRDC 2001
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