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Rural Industries
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5
Year R&D Plan for Organic Produce
2001
– 2006
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| Foreword | 1. Introduction |
| 2. Industry Vision and Mission | 3. Australian Organic Industry Landscape |
| 4. Key Issues for the Industry | 5. The Research and Development Program |
Within the context of the Corporation's Strategic Plan which runs to June 2002, we have committed ourselves to the development of five-year plans for each of the major RIRDC programs. Organic Produce is a relatively new program, which has been supported by the Corporation since 1996.
This is the second formal 5 Year Plan developed by the organic industry. It has been developed from a more thorough planning process conducted by the newly appointed (Oct 2000) Organic Advisory Committee, with significant contributions from the Organic Federation of Australia and relevant State and Federal Government agencies.
The planning process also incorporated recommendations submitted following an independent review of the Organic Subprogram in April 2000. A core recommendation of that review was that RIRDC be facilitator of organic industry R&D with the goal of coordinating investments from other R&D Corporations and research agencies and funders in pursuit of high-return problems and opportunities in organic and conventional agriculture.
This Plan identifies five key objectives for the R&D investments made on behalf of the organic/biodynamic industry and the Commonwealth Government. The effiency of organic supply chains is given greater emphasis in this plan. Each of the objectives is important in its own right and each will foster research and development in areas that have been identified as major industry concerns. They will assist the industry to become a sustainable and profitable industry, acknowledged by the government and community as a professional mainstream industry committed to the sustainable production of high quality products.
Across agriculture there are a number of existing research bodies undertaking projects in sustainable agriculture. Central to the implementation of this Plan are the links with existing agricultural research agencies to optimise, where appropriate, collaboration in organic R & D. We intend to minimise research duplication and enhance benefits to both conventional and organic farmers and processors.
The Plan is for all stakeholders
in the industry. It will be distributed widely by the Corporation and used
by RIRDC's Organic Produce Research and Development Advisory Committee
to guide the ongoing R&D investments that are made. The Plan is consistent
with RIRDC's Strategic Plan and will be implemented in accordance with
the provisions of the Primary Industries and Energy Research and Development
Act 1989.
| Peter Core
Managing Director Rural Industries Research and Development Corporation |
Don Fraser
Chairperson Organic Produce R&D Advisory Committee |
The organic/biodynamic industry is an emerging opportunity for Australian producers, processors and marketers. At the core of the industry are certified farming systems that promote the sustainable use of natural resources, soils in particular.
Broadly defined organic produce is that which is produced by specific management practices which take care of the environment and the soil. Organic and biodynamic growers are committed to improving soil and land through enhanced biological activity. Such agricultural practices require that products be produced naturally in soils with enriched biological activity, determined by the humus level and root structure, such that plants are fed through the soil ecosystem and not with the addition of soluble salts as fertilizers. In this document producers and processors of biodynamic food and fibre are included under the collective heading of "organic".
The industry finds itself with enormous market opportunities worldwide to supply a range of certified organic products. But the ability of the industry to service these opportunities is severely constrained by the current small size of our industry.
In Australia, (see Figure 1.) there are currently about 1,800 certified producers, processors, distributors and retailers of organic food and fibre products.
Figure 1. Growth in the
Australian Organic Industry
They operate in diverse industries, including grains and pulses, horticulture, viticulture, beef and pork, dairy, and honey. Seafood is a new opportunity driven by the increasing contribution of the aquaculture sector. RIRDC estimates the number of certified operators will increase by approximately 40% in the next five years.
The gross retail value of certified organic production (GVP) is currently undocumented. However estimates prepared by the RIRDC indicate a range of gross retail values, the high end of which is currently approximately $220 million, excluding exports. More recent projections prepared by the Organic Federation of Australia suggest total retail sales (including exports) may reach $1 billion by 2006.
Emerging organic produce markets worldwide are being driven by increasing consumer concerns about food health and safety, and a community desire for sustainable food production and farming systems. Industries are responding with a growing number of conventional producers and processors now seeking certification thus enabling access to the organic market niche
This is the second formal 5 Year R&D Plan prepared for the industry. The plan results from discussion with the Organic R&D Advisory Committee, the Organic Federation of Australia, Organic Certifying bodies and relevant industry and governments stakeholders. Brief details of the Corporation’s organic R&D project investments over the last 4 years can be found in Appendix 1.
2. Industry Vision and Mission
By the year 2006, the Australian organic industry will have 2500 certified members generating over $350 million dollars in retail value. In round terms the industry will grow by 50% in the next five years.
The national organic industry will be lead by a strong peak body, the Organic Federation of Australia, supported by Certifying bodies and the RIRDC’s Organic Advisory Committee. At the State level governments will each maintain active industry development programs.
There will be significant domestic and export market demand for a complete range of organic/biodynamic products, and awareness of these among consumers, retailers, processors and agriculturalists will be high. Linkages between conventional agriculture and organic agriculture will be well established with many collaborative R&D projects developing sustainable farming systems for our unique Australian landscapes.
Government will actively encourage organic systems, standards and codes of practice as a role model for agricultural sustainability. Australia, as an active contributor to International Standards development, will be internationally recognised as being at the forefront of the global organic/biodynamic industry.
To optimise the profitability of Australian organic production in both domestic and overseas markets.
To promote the adoption
of organic farming systems that enhance the sustainability of Australian
soils and other natural resources.
3. Australian Organic Industry Landscape
Many national and regional agribusiness stakeholders and organisations have an interest in the organic industry, and in supporting its viable emergence into mainstream Australian food and fibre systems.
Industry and government have jointly supported the development of the industry since the first biodynamic registration in Australia in the 1960’s. The formation of the major certification bodies in the 1980’s provided the basis for the ongoing strong growth evident today. The national industry structure was consolidated with the formation of the Organic Federation of Australia in 1998. A recent study comparing the Australian organic industry with other key international arrangements and standards found that the Australian industry was soundly based and well placed to contribute to the management of the industry worldwide.
The Australian industry certifies compliant producers, processors and system inspectors against the National Organic Standard. The certification process is administered jointly by industry and the Australian Quarantine and Inspection Service. The International Codex agreements outline a basic framework for equivalence across various international Standards. Industry is currently considering the role of the new peak body, the Organic Federation of Australia, in the development and management of standards for the industry.
Figure 2. Organic Industry Certification Arrangements
Other organisations in the organic industry do not certify enterprises but assist with communication, training, domestic and export market development and general information. New organisations are established by industry from time to time, typically in response to commercial market opportunities.
This organisational landscape is illustrated in Figure 3.
Fig. 3 Australian Organic
Industry Organisational Landscape
The value chain for the
organic industry in Australia currently comprises a range of enterprises,
organisations and government agencies. However, the vast majority of enterprises
in the industry are producers.
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| Industry participants | ·
Certified growers
· Non-AQIS accredited organic bodies · Growers in conversion |
· Private R&D providers and consultants | ·
Biodynamic Research Institute*
· Biological Farmers of Australia Co-op Ltd* · National Association for Sustainable Agriculture (Australia) Ltd* · Organic Herb Growers of Australia, Inc* · Organic Vignerons Association of Australia, Inc* · Tasmanian Organic – Dynamic Producers Cooperative* · Organic Food Chain* |
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Certified processors
· Processors in conversion |
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Certified wholesalers, retailers, exporters importers
· Traders / retailers in conversion · Organic Retailers and Growers Ass’n of Australia |
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Organic Federation of Australia
· Organic Certifiers, Inc · Ethical Certifiers Organisation |
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Australian Consumers Association
· Consumers Federation of Australia · Organic Retailers and Growers Ass’n of Australia |
| Government and Others | · Uncertified growers | ·
RIRDC
· Independent researchers · State Departments of Agriculture · CSIRO · Federal AFFA · R&D Corps. |
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Australian Quarantine and Inspection Service**
· Organic Produce Advisory Committee** |
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Processors
· Manufacturers |
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Wholesalers
· Austrade |
· RIRDC | · General Public |
4. Key Issues for the Industry
This is the second R&D plan developed buy the industry. This plan builds and refines the investment strategy initiated in 1998, while ensuring relevance to most stakeholders.
In April 2000 the Corporation undertook an independent review of the Organic Sub-program. There was a widespread view that the time is right to review the relative priority of issues driving the R&D Plan. Apart from the rapid change in the industry, the Sub-program was prompted to reconsider how it will get the best return on the relatively small amount of money available to it.
Facilitation
This return may best come from the Sub-program seeing itself as the facilitator of organic industry R&D with the goal of coordinating investments from other R&D Corporations, and other funders in pursuit of high-return problems and opportunities in organic and conventional agriculture. The Sub-program has actively undertaken this facilitation role in the past, assisting industry establish the National Organic peak body (OFA 1998), and generating collaborative projects with a number of other research agencies.
Ownership
Organic is a very diverse and complex multi commodity industry grouping. Effective planning is therefore logistically difficult and expensive. The independent review identified a need to build a higher degree of ownership of the R&D Plan among industry members. In particular, it was recommended a planning process be undertaken to include all members of the industry and other relevant groups, and allow them to identify areas of need and opportunity while, concurrently, building a stronger sense of industry identity and ownership. Management of the industry consultation process will become an ongoing role for the OFA.
Linkages to Conventional Systems and along Supply Chains
There is need for a closer linkage and application between research in conventional agriculture that is equally applicable to organic agriculture. Much could potentially be gained by capturing this along with the experience and knowledge of people in the organic industry.
The first R&D Plan placed high priority on organic industry development work to establish and bring together industry people and structures as a basis for growth and viable R&D investment. The review recommends the focus for this second R&D Plan now move to address issues that create and accrue value to these industry participants and structures. There are two key issues – conversion to organic, and supply chains.
Market development remains a low priority relative to building certified supply capacity, given that it is being sponsored by other bodies such as the Supermarket to Asia Program.
The review also suggested R&D into the science and technology of production should not be a substantial component of the Sub-program, except where there are opportunities for strategic investments in association with other funders. However, more effort should be directed to R&D in natural resource management, where there are opportunities for conventional and organic systems to learn from each other.
Specifications and Standards
The Australian National Standard is well regarded internationally by the organic industry. This is important in order to sustain our natural productive resources and environment, but also because we are an export intensive agricultural producer. Organic Standard equivalence will continue to be important, for both export and domestic producers and consumers.
In developing the key issues for the next five years the Committee identified a number of new and emerging issues (in no particular order) that will impact the industry going forward.
| 1.
Organic Production Systems
2. Conversion Processes 3. Regulation, Validation and Market Access 4. Supply Chain Management and Intelligence 5. Communication and Facilitation |
40%
25% 10% 10% 15% 100% |
5.
The Research and Development Program
PROGRAM
1. Organic Production Systems
1.1.
System Design and Environmental Sustainability
| Objective |
| To facilitate the design of physically and economically sustainable organic production and processing systems, through optimising the use of physical, social, and natural resources. |
| Background |
| Organic farming systems are regenerative systems which rely on the integrated management of physical, social and natural resources to achieve optimum crop and livestock performance. Organic agricultural systems, with their origins in Europe, have evolved with the biophysical conditions which exist within that Continent. Whilst many innovative and successful organic systems have been adapted to suit the Australian environment, there is a need to document these systems and to investigate and adapt new systems which may have application within Australian conditions. |
| Strategies |
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¨ Document and develop new designs appropriate to Australia |
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| Indicator |
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| Objective |
| To effectively manage pests and diseases using organic methods |
| Background |
| Plant and animal
pests and diseases are common problems to all organic producers. Pests
and diseases invariably reduce the economic viability of all enterprises,
and can lead to market rejection of the product.
In general, organic systems rely on improved management practices rather than reliance on substances. This is achieved by designing farming systems which aim to minimise the impact of the pest or disease, and which are developed through an understanding of the ecology of the pest or disease and its interaction with the crop or animal species. This program aims to document and investigate successful ecological pest and disease management strategies. A number of naturally occurring substances have been recognised as being beneficial under the organic standards. However, in many cases evidence of their efficacy is anecdotal. This program aims to assess and document the effectiveness of these substances. In addition, there are regulatory implications for the use of organic pest and disease management. Phytosanitary laws and product registration requirements are examples. This program will aim to investigate and document pest and disease regulatory impediments. |
| Strategies |
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¨ Identify and develop new understanding of integrated and viable pest and disease management ¨ Investigate, document and overcome pest and disease regulatory impediments ¨ Increase awareness of preferred pest and disease methodologies ¨ Regulatory acceptance of preferred organic pest and disease input products |
| Target |
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| Indicators |
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¨ Reduction in losses due to pests and diseases |
| Objective |
| To achieve optimum levels of nutrition, balanced for organic plant and animal production systems, and to minimise nutrient loss. |
| Background |
| Plant and animal
nutrition with organic and biodynamic management systems differ from conventional
systems in substantial ways whilst maintaining some parallels.
On farm methodologies involving crop rotation, legume usage, green manures and composts are used to reduce requirements for external inputs. However, other mineral and nutrient requirements for plants and animals are also met via the introduction of those substances to the soil in a manner that contributes to a balanced and optimal fertility level. The emphasis of organic agriculture on feeding soils is the primary step in achieving products of high nutritional content. An understanding of nutritional balance, physical and biophysical soil composition underpins a successful organic farming system. |
| Strategies |
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¨ Identify and develop new practices of plant and animal nutrition ¨ Increase awareness of new and existing successful organic plant and animal nutrition methodologies |
| Targets |
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¨ Adoption of management systems which reduce dependence on external inputs |
| Indicators |
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¨ Improved quality ¨ Improved plant and animal health ¨ Avoid nutrient loss from cropping, livestock and composting systems. |
| Objective |
| To achieve and maintain the potential of Australian soils through improved organic management techniques |
| Background |
| The foundation
of organic agriculture is a healthy soil. Organic farming practices aim
to increase soil humus and thus encourage increased biological activity
within the soil. This in turn provides optimum growing conditions for crops
by providing optimum soil structure, water holding capacity and nutrient
release. Australian soils, in contrast, are inherently low in organic matter
and humus.
This program aims to investigate existing and potential organic soil management techniques which will maintain and improve soil and health and structure and improve crop, livestock yields and product quality from Australian organic farms. |
| Strategies |
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¨ Identify and develop new understandings of integrated soil management techniques ¨ Increased awareness of preferred soil management methodologies ¨ Monitor and benchmark soil health |
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PROGRAM
2. Conversion Processes
| Objective |
| To facilitate the adoption of organic systems |
| Background |
| Interest in conversion
to organic agriculture is related to availability of knowledge of the physical
and economic aspects of farming, and to the social and policy environment
in which agricultural producers must operate.
Primary producers within the organic industry have often developed their production systems from scratch using new designs and methodologies. The majority however, "convert" already existing operations to satisfy organic requirements. The multi dimensional character of organic farming systems place many demands and potential risks on operators wishing to convert, requiring specific attention to soils, fertility, pests, diseases, weeds, and post harvest storage and handling, and the economic consequences of change. Often undocumented, unproven and site-specific technologies are necessary to permit a successful conversion, and many of these remain in unidentified forms within the integrated systems of successful organic farmers. The social and policy environment influences potential gains from organic farming and consequently interest of farmers to convert to organic agriculture. Investigation, documentation and communication of these and more transparent scientific methodologies and policy issues will assist in providing a more secure environment within which a much greater number of conventional operators can convert to organic production with greater certainty. |
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¨ Investigate and demonstrate relevant linkages between conventional and organic agriculture ¨ Identify and overcome structural, technological, economic and social impediments to conversion ¨ Develop appropriate multi-dimensional cost-benefit analysis of conversion ¨ Document successful processes for conversion in a variety of industries. ¨ Investigate, document and communicate policy issues influencing the take-up of organic agricultural methods. |
| Target |
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¨ Increase in agricultural scope and scale of certified enterprises. |
| Indicators |
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¨ Increased domestic organic product availability ¨ Increased number of certified organic enterprises ¨ Greater environmental sustainability in agriculture. |
PROGRAM
3. Regulation, Validation and Market Access
| Objective |
| To investigate, and validate regulations that optimize market access for both Australian exports and imports of organic products. |
| Background |
| The diverse nature
of the Australian organic industry has created significant challenges for
increasing the market access for Australian organic products to both domestic
and export customers. Currently, the access for organic products on the
domestic market represents less than 1% of the total food sales. The export
potential for organic products is significant but the availability and
accuracy of current marketing information is poor.
AQIS oversees Australia’s international trade in certified organic products. But there is no responsible authority nor regulations supporting domestic sale of certified products. The organic industry has identified a number of issues that have influenced the market access of products. Product recognition; quality and quantity assurance; food safety; the pricing of organic products; consumer confusion over logos, certification and trade-marks, are all issues that could impede the access for organic products. This program will investigate and develop strategies to help solve these problems, allowing increased potential for the industry to capture developing markets. |
| Strategies |
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¨ Facilitate with the OFA the development of robust standard-setting processes, so that Australia will remain at the forefront of the international organic regulatory developments ¨ Promote policy and standards-setting processes that deliver market access based on verifiable objective equivalence of certified products while recognising the uniqueness of Australian production systems ¨ Encourage branding of products as a basis for increased consumer awareness and demand for Australian products ¨ Facilitate the dissemination and promotion of relevant R&D findings |
| Targets |
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¨ Australian standards equivalence with our export markets ¨ Unrestrained market
access for Australian certified products
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¨ Branded certified Australian products ¨ Growth in demand and sales for Australian organic products |
PROGRAM
4. Supply Chain Management and Intelligence
| Objective |
| To improve the margin between costs and returns for Australian organic products through improved efficiency of supply and logistics systems, the quality of information available, and the management skill of supply chain participants. |
| Background |
| As an emerging industry organics has limited volume and financial capacity to independently develop and maintain efficient dedicated supply chains. But the viability of organic producers and distributors relies directly upon supply of relatively small volumes of specialised products to select buyers. |
| Strategies |
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¨ Identify and adopt systems from conventional industry supply chains where beneficial ¨ Collate and analyse market and economic information relevant to the design, conversion and implementation of organic systems and markets ¨ Facilitate the dissemination and promotion of relevant R&D findings |
| Targets |
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¨ Facilitation of organic market signals to conventional agriculture ¨ Progressive growth in GVP of Australian organic production - $350 million by 2005 |
| Indicators |
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PROGRAM
5. Communication and Facilitation
| Objective |
| To identify, collate and disseminate information and knowledge for the benefit of organic enterprises and industry |
| Background |
| The organic industry
draws upon practices going back generations, and combines this with modern
technology to produce complex farming systems often unique to a particular
soil type or topographical area. A wealth of knowledge and skills exist
now that are not widely known or shared across industry.
Projects designed to gather existing knowledge and collate the results from new research will be undertaken. Through workshops, field days, newsletters, and organic advisory services, including journals and the media, knowledge will be disseminated to all members of the organic industry. In addition, education kits to growers, wholesalers, retailers and consumers will ensure new members of industry are assisted in achieving efficient and effective conversion to organic and expanding markets for produce. |
| Strategies |
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¨ Collate and disseminate proven information ¨ Foster industry development ¨ Foster networking within industry and between Certifying bodies. |
| Targets |
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¨ Quarterly newsletter ¨ Database of stakeholders ¨ Education kits |
| Indicators |
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¨ Industry satisfaction/unity ¨ Increased organic commodity availability ¨ Active Peak Body ¨ Research/higher education institution involvement in R&D Program ¨ An increase in the number of professional courses available across the organic industry. |
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Impact of tillage practices on soil microbiota associated with organic matter decomposition and root health |
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Development of a business development plan for the organic industry of Australia |
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Workshop on future research & development for the organic industry |
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Unification of organic product certification training |
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Promotional poster and pamphlets for the organic industry |
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Evaluate the production potential and marketing processes for potential in providing Clean organic |
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Economics of soil and environmental amelioration in intensive temperate rotations |
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Organic Promotions Committee |
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OFA Workshop - Sydney 20 - 21 June 1998 |
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Soil nutrient management for increased production on broadacre organic farms |
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International Biodynamic Advisors Workshop, New Zealand |
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Codex Working Group |
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Organic Study Mission, Japan |
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Identification and coordination of strategic issues for the Australian organic industry |
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Development of organic crop and pasture systems for south east Australia |
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Identifying organic practices with wider significance to science or agriculture |
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Sustainable weed management for organic herb and vegetable production |
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An information package for organic farming in Australia |
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Organic Produce Committee/Industry Meeting - Sydney 9 August 1998 |
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Identify, disseminate and promote information/practices which establishes organic as a viable mainstream industry |
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Organic Farming – Sustaining People and the Land |
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2nd Organic World Exhibition and IFOAM General Assembly |
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Organic Federation of Australia Industry Workshop Canberra 10th and 11th February |
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Eating into the Future Seminar, Adelaide |
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Environmental management systems in Agriculture |
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Sustainable Farming Systems Seminars |
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Organic Polycultural Systems: design principles, risks and benefits |
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Changing agriculture – curriculum development for facilitating the adoption of organic systems |
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Integrated development of intensive organic vegetable production systems |
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Presentation of ecological sustainable land management systems to farmers |
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Pest management strategies for organic agriculture |
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Non-conventional options for effective nematode control in 'organic' sheep production |
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Seminars to create awareness about organic industry opportunities |
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Workshop Organic sustainability in Mackay |
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Organic Certifiers – AQIS Charges Review |
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Workshop Brisbane: Organic Codes of Practice joint RIRDC and HRDC |
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Workshop Sydney: Organic workshop Pome Fruit joint RIRDC and HRDC |
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Review of RIRDC Sub-program 2.5 'Organic Produce' |
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New Zealand Organic Federation and New Zealand Government conference |
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Wilcannia – Rural Organics Field Day |
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Workshop Melbourne: Organic workshop - dairy joint RIRDC and DRDC |
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Workshop AQIS/Organic Standards Committee |
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Organic Federation of Australia Industry Seminar/Workshop Melbourne 15th May 99 |
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IFOAM Conference in Italy |
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IFOAM Conference |
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Launch of Innovate Australia – Canberra |
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Make a clean break -– attend the Maranoa Organic Day |
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Seminar - Conversion to Organic Agriculture |
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Mad Cows, Meat Pies and Modified Food – Seminar – Sydney |
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Represent the Organic Industry at talks in Canberra |
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Western Queensland Organic Field Days |
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Codex Alimentarius - Food Labeling Committee – Ottawa, Canada |
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Organic Links – Dairy |
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Compare and Contrast Australian Organic Standards with those of Key Trading Partners |
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Organic Federation of Australia web-site and directory |
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Organic Production and Training Workshop for NSW |
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Industry development for organic vegetables in North Queensland |
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Decision Support for Organic Conversion through workshop activity |
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Organic Industry Conference - August 2001 |
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HACCP and Audit based training program - organic inspectors |
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1800 Phone links to provide Public face to Organic Industry |
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Integrating food safety with Organic Certification: A briefing paper |
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Organic Industry Workshop Orange, NSW |
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IFOAM Scientific Conference |
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IFOAM Scientific Conference |
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