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R & D Plan for the Resilient Agricultural Systems Program 1999–2004

ã Copyright 1999 RIRDC. All rights reserved  (Please read our Disclaimer)

Foreword 2. Goal 4. SWOT Analysis 6. The Role of RIRDC 8. The R&D Plan

1. Purpose of the Plan  3. Background to the Plan 5. Research Objectives 7. Approach to R&D Management Other Program 4 Objectives/Strategies

Foreword

Within the context of the Corporation's Five Year Strategic Plan (1997–2002), we have committed ourselves to the development of five-year plans for each of the major RIRDC programs. This is the first plan for RIRDC’s Resilient Agricultural Systems program and another step to meeting our commitment of having R&D plans for each of the major programs that we manage.

The plan identifies five key objectives for R&D investments made on behalf of the rural industry and the Commonwealth Government. Each of the objectives is important in its own right and each will foster research and development that helps to build on opportunities for developing strong, sustainable agri-industry systems into the next century.

This publication has been prepared by RIRDC following a priority setting workshop and consultation with a range of stakeholders including the NFF, other R&D Corporations, relevant Commonwealth and State Government agencies, CSIRO and agricultural consultants.

The plan is for all stakeholders in the industry. It will be distributed widely by the Corporation and used by RIRDC to guide the ongoing R&D investments that are made. The Plan is consistent with RIRDC's Strategic Plan (1997–2002) 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

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1. Purpose of the Plan

This document presents a strategic plan for RIRDC’s Sub-program 4.2, Resilient Agricultural Systems. The main purpose is to signal a re-focusing of the sub program on five key areas of R&D associated with emerging issues in Australian agri-industries. The objective will be to look forward and build on opportunities for developing strong, sustainable agri-industry systems into the next century. The term "agri-industry" indicates that the focus of the program should be right across the production and marketing chain. This term is used in preference to "agribusiness" which tends to be associated with marketing and not the whole production process.

A key theme underlying the approach proposed in this plan is to position Australian agri-industry so that it has anticipated the management challenges of risk, market and natural resource pressures and uptake of new technology and has the means of addressing these challenges. The plan is about helping Australian agriculture to be in a position to respond to opportunities rather than being reactive to change.

Sub program 4.2 is part of RIRDC’s Program 4 on Future Agricultural Systems. It is through this Program that RIRDC fulfills its charter to undertake cross sectoral agricultural research. Program 4 is not industry specific, but covers the range of generic R&D issues that must be addressed to provide Australia’s farm businesses and rural communities with the information and tools necessary to manage and prosper in a rapidly changing environment.

Program 4 is a continuum. Its other sub-programs focus on market issues associated with global competition (Sub-program 4.1) and on the human capital needs of farm businesses and broader rural communities (Sub-program 4.3). A summary of the objectives and key strategies of these other sub-programs is provided as an attachment. The development of viable, sustainable agri-industry systems cannot be considered in isolation of these issues. In particular it is important to acknowledge the interrelationships between agri-industry systems and broader issues of rural development. Increasingly the farm enterprise is not just based on agriculture but may involve a range of activities associated with its rural location. These latter issues are addressed in RIRDC’s Sub program 4.3. To maximise the benefits of RIRDC’s investment in R&D in these areas, Program 4 will be managed to ensure that strong links are maintained between its three Sub-programs.

Links to RIRDC’s other industry based Sub-programs will also be important.

The role of Sub-program 4.2 is to address generic issues and good linkages beyond RIRDC will also be vital. The achievement of planned outcomes will involve extensive collaboration with other R & D agencies and funding bodies and a wide range of stakeholders, including government agencies responsible for policy development. In particular the need to integrate the management of the farm business enterprise and its natural resource base will require close cooperation with the Land and Water Resources Research and Development Corporation (LWRRDC).

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2. Goal

The overall goal of the Resilient Agricultural Systems Program is:
 
To foster agri-industry systems that have sufficient diversity, flexibility and robustness to be resilient and respond to challenges and opportunities.

 

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3. Background to the Plan

The outlook for agriculture into the next century is for continuing change with increasing globalisation, greater integration in the marketing chain and pressures to increase quality control and manage natural resources sustainably.

This will bring both opportunities and challenges to the farm sector and new demands on the management capacities of Australian farmers, particularly their ability to manage risk. (Rural Adjustment Managing Change DPIE, 1997)

The strategic plan for Sub-program 4.2 has been developed in the context of this recognition that Australia’s rural industries are undergoing a period of rapid change and that a strong underpinning of innovation is essential if they are successfully to meet this challenge.

Some changes result from global trends that are significantly altering the operation of the agri-industry system. Other changes result from the realisation that some historical approaches to agriculture in Australia have caused significant environmental problems. Most changes are not marginal. They involve paradigm shifts which require strategic research and a focus on applied outcomes integrated with improved systems.

Some of the main trends impacting on Australia’s rural industries include:

• a shift from a production driven approach to a market driven approach with emphasis on the whole supply chain from producer to consumer
• reduced government involvement in agriculture and rural services concurrent with increased privatisation — this includes resourcing of research
• increased globalisation resulting in greater competitive pressures on Australian agriculture growing power of trans-national companies especially in food industry research, processing and marketing
• an exacting range of demands by consumers including product consistency, reliability of supply, food safety, product choice, and most recently, sustainability of production
• a revolution in technologies applied to agriculture including genetic manipulation of plants and animals, precision farming and information management —this involves a trend to patented input systems
• the development of an industrialised system of agriculture with increased vertical integration, a systems approach to agri-industries and implementation of industry-wide quality assurance
• continuing increase in mechanisation and capital intensity • emergence of new horticultural crops
• concern for the environment, especially the issues of water quality and quantity, soil salinity, acidification and degradation, air quality and climate change
• reduction in the number of mainstream commercial farms, increasing farm size, a rise in the number of part-time farmers and significant ongoing structural adjustment in agriculture
• an increase in the ‘critical mass’ for specific agricultural industries which is required to support up-to-date infrastructure, information systems processing and marketing
• focus on farming as a highly competitive business rather than as a lifestyle activity
• a negative image of agriculture arising from environmental and food safety concerns
• a need to rapidly develop the human resources in agri-industry systems to manage the changes.




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4. Strengths, Weaknesses, Opportunities, 
Threats (SWOT) Analysis

The five objectives for sub-program 4.2 have been developed against the background of a SWOT analysis on Australia’s ability to successfully respond to the above trends using a broad agricultural industry basis.

It should be recognised that there are significant differences between agricultural industries so that not all SWOT statements are relevant to every industry.
 

Strengths	Weaknesses
A motivated and committed human resource base;	Some agri-industries with fragmented systems lacking integration and transparent communication of market signals;
Some comparative advantage in the range of climate and natural resources;	Limited critical mass for some industries, hindering development of competitive value adding capabilities;
A competitive export focus with relatively low levels of Government assistance;	Reduced global competitiveness due to limitations in transport, communication and service infrastructure;
Historically sound research and development capabilities;	Some lack of professional quality assured systems;
Some pioneering leadership in sustainable agricultural practices;	Difficulties in family farm businesses achieving horizontal and vertical integration resulting in limited purchasing, information and marketing power, diseconomies of size and restricted access to finance;
Ability to rapidly adopt new technologies;	Inadequate preparedness for the research and education challenges associated with the development and management of new technologies;
Growing risk management skills	Wide areas of Australia with poor and fragile soils;
Stable political and economic systems	Susceptibility to climatic variability and change;
xxxx	Significant environmental problems, especially in relation to water quality and quantity, soil salinity and acidification etc


 
 

Opportunities

Threats

Improved state of technology transfer to capitalise on existing R & D capabilities; Rapid development of R & D capabilities and technology transfer associated with new technologies such as genetic engineering and precision farming Development of human capabilities for building integrated and competitive agri-industry systems and export of knowledge and services; Development of quality assured, consumer focussed industry systems that are environmentally sustainable; Development of niche and value added products; and Development of new products from agriculture such as industrial products, pharmaceuticals and nutraceuticals.

Competition from other countries which respond more quickly and effectively to the trends; Failure to further develop research capability, especially associated with new technologies and sustainability;     Failure to adequately develop human resources;     Undermining of quality assurance systems by unprofessional activities; Inability to attract adequate finance for individual business and industry development; Local and world community perceptions of poor environmental management.

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5. Research Objectives

The background on global agri-industry trends and the SWOT analysis of Australia’s ability to respond to these trends form the basis for selecting the areas covered by the objectives of the program. To underpin the development of resilient agricultural systems, five priority objectives have been identified.

The above analysis reveals a continuing need to focus on developing sustainable agricultural production systems. The approach should incorporate established research directions, already being pursued in the program, provided that the research leads to tangible outcomes within integrated systems. The approach should also incorporate new research directions, particularly focusing on the need to have production systems that are in tune with the Australian environment. RIRDC will need to collaborate with other R & D agencies to fulfil these needs.

Sustainable agricultural production systems are the focus of Objective 1.

The analysis also indicates that the future of Australia’s agri-industries relies increasingly on the development of integrated and quality assured systems covering all activities from supply of production inputs through to consumption of end products. The shift from the traditional production-centred approach to a consumer-centred approach is continuing, with those involved achieving competitive advantage by cooperating as participants in strong chains. RIRDC has an important opportunity to pioneer research on a range of cross-sectoral issues concerned with the development of new globally competitive agri-industry systems. Objective 2 results from the need to address these issues.

Objectives 3, 4 and 5, deal with three priority areas where the above SWOT analysis indicates that improvements in knowledge will substantially assist the future performance of Australian agri-industry.

Objective 3 addresses methods of overcoming the threats or impediments to achieving sustainable agri-industry systems. A key focus is on methods of managing risk and uncertainty. The goal of resilience in Australian agri-industries will depend increasingly on the ability to manage risks arising from climate variability and change, the introduction of new technologies and the volatility of economic parameters.

Objective 4 focuses on the broad management implications of the revolutionary new technologies being developed. Other R & D agencies will concentrate on the development of the technologies themselves. RIRDC’s role will be to anticipate and address some of the generic management challenges associated with their uptake.

Objective 5 is concerned with the important issue of quality assured accreditation systems. RIRDC already has achieved valuable outcomes in the development of accreditation systems for alternative agriculture. A range of industry specific quality assurance systems is being developed — RIRDC’s role will concentrate on cross sectoral issues, particularly those related to the integration of quality assurance with other management aspects of an agri-industry system.

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6. The Role of RIRDC

The issues embraced by the plan for Sub-program 4.2 are large in scope and are the subject of intensive R & D by many organisations. Given the breadth of the issues and the level of funds available, RIRDC sees its role in funding R & D in these areas largely as a facilitator, catalyst, broker and co-ordinator.

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7. Approach to R&D Management

The management of Sub-program 4.2 will include commissioning of R & D activities as well as competitive bidding. Researchers will be encouraged to co-ordinate proposals and in some cases RIRDC will seek to bring together teams of researchers for specific tasks. There will be significant emphasis on co-operation with other R& D agencies to achieve the objectives of the program and maximise returns from available funds. For all activities in the sub-program RIRDC will seek to involve key stakeholders including representatives of interest groups such as producers, consumers, retailers, conservationists, etc.

The sub-program will have a reference panel made up of stakeholder representatives who will stimulate projects, monitor R & D activities and advise on promoting the adoption of outcomes. All R& D activities in Sub-program 4.2 will have communication and adoption strategies as an integral part of R & D proposals.

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8. The R&D Plan

The following pages set out the key objectives for the sub-program, the strategies to achieve the objectives and related performance indicators.

Objective 1 focuses on the development of sustainable production systems.

Objective 2 is concerned with the planning and management of new and emerging agri-industry systems.

Objective 3 focuses on methods of addressing the impediments to achieving sustainable agri-industry systems.

Objective 4 investigates the management implications of new technology systems.

Objective 5 is concerned with internationally acceptable accreditation systems for agri-industry.
 
 


OBJECTIVE ONE

Objective
To develop sustainable production systems which deliver viable economic and environmental outcomes.

Background
Since European settlement of Australia much of the approach to agricultural production has been based on a ‘European’ paradigm. This has denied the very different physical and climatic environment of the Australian continent. There is a need for fresh approaches to sustainable management which recognise the poor and fragile soils over much of Australia, the challenges of climatic variability, the ravages of soil salinity and acidification and the need for integrated management of pests, weeds and diseases.

Strategies
1.1 Develop new agricultural production opportunities that are more compatible with Australia’s fragile soils and difficult climatic conditions.

1.2 Evaluate the environmental compatibility of new and existing agricultural production opportunities.

1.3 Evaluate economic and other returns to Australian stakeholders of proposed systems.

1.4 Undertake research that supports integrated controls and management of pests, weeds and diseases within environmentally sustainable systems.

1.5. To facilitate with appropriate government agencies the analysis and development of policies for sustainable, commercial use of native flora and fauna.

Performance Indicators
• The extent to which the program’s R&D investment contributes to the availability and adoption of sustainable agri-industry production systems.

• The availability and utilisation of economic and environmental evaluations of sustainable systems.

• The achievement in co-operation with other R & D agencies of an holistic approach to research which covers key aspects of sustainable agri-industry systems.

• The availability, for selected weeds, pests and diseases, of control strategies that are integral parts of improved sustainable agri-industry systems.

• The availability of policy options for the commercial use of native flora and fauna.

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OBJECTIVE TWO

Objective
To investigate new and emerging agri-industry systems which will deliver globally competitive advantage to Australia’s agricultural industries.

Background
Australia’s agri-industry systems are facing unprecedented change. There is increased emphasis on consumer-centred integrated systems. The pressures for integration are both vertical and horizontal. Globalisation and the activities of trans-national companies are giving rise to intense competition on domestic and export markets. Undifferentiated commodity markets are operating on low margins. Niche markets offer potentially higher premiums but only to those with quality assured and integrated supply chains and with the ability to continuously develop new products and markets. New technologies are reshaping agri-industry production systems. The new technologies include capacity for agri-industry systems to add production of pharmaceutical, nutraceutical and industrial products to the traditional supply of food and fibre products.

Strategies
2.1 To assist the strategic planning of Australia’s agricultural industries.

2.2 The specification of issues and research topics concerned with the planning of Australia’s agricultural industries including those concerned with structural adjustment.

2.3 To provide information on the management implications of new agri-industry systems.

2.4 To facilitate the benchmarking of the performance of new and emerging systems.

2.5 To research improved farm business structures and alternative land tenure arrangements for Australian agriculture.

2.6 To research integrated, sustainable and economic diversification approaches using outcomes, where applicable, from RIRDC programs on prospective and emerging new industries.

2.7 To identify and analyse the potential commercial value of pharmaceuticals, nutraceuticals and industrial products in Australian agriculture.
 

Performance Indicators
• The progressive provision of quality strategic planning information.

• The availability and uptake of effective management approaches for new agri-industry systems.

• The availability of initial benchmark information on the comparative performance of new and emerging agri-industry systems by 2002.

• The provision of advice on improved business structures for Australian agriculture by 2002.

• Identification of new opportunities for enterprise diversity.

• The availability of issues papers relating to Australian agriculture’s potential role as a provider of pharmaceuticals, nutraceuticals and industrial products by 2000.

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OBJECTIVE THREE

Objective
To research methods of addressing the impediments to achieving sustainable agri-industry systems.

Background
This objective seeks to develop the tools to manage a range of threats to Australian agri-industry systems. A key focus is on risk management. Dealing with risk and uncertainty is an inherent characteristic of Australian agri-industry. On the one hand there are risks associated with climate variability, climate change and a range of associated natural variables. On the other hand there are risks associated with an increasingly volatile business environment. The management of risk requires improved decision making support tools. Failure to manage risk may have serious damaging effects on sustainability and business performance. RIRDC’s role will recognise industry specific work on risk management and will focus on generic approaches.

Strategies
3.1 To develop decision support systems and risk management tools for the management of new technologies, finance, marketing and other volatile components of agri-industry systems.

3.2 To investigate issues relating to the uptake of risk management tools and their integration into holistic farm management.

3.3 To develop effective approaches and decision support systems for the management of climate variability including such aspects as droughts, floods and frosts.

3.4 To conduct R & D to evaluate the impacts of climate change on farm management decision making and to assist the formulation of policy on the management of climate change.

3.5 To develop protocols which achieve compatibility of decision support and risk management mechanisms and software as a means of encouraging more widespread use of these approaches.

Performance Indicators

• Availability and use of management approaches and tools that minimise risks associated with the volatile components of agri-industry systems including climate variability.

• Availability and application of protocols which achieve compatibility of decision support and risk management software by 2003.

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OBJECTIVE FOUR

Objective
To research the management implications of new technologies for agri-industry.

Background
In the next five to ten years the combination of a range of new technologies will revolutionise the conduct of agriculture and place new demands on the skills and capabilities of managers. These new technologies include genetic engineering, precision farming and associated information management. The early focus is on the development of the technologies themselves and as is so often the case, it is likely that the management of these technologies will not be adequately considered nor will the preparation of managers  for their adoption. The revolutionary nature of some of the new technologies requires careful consideration of the management implications for individual farms and regions prior to their widespread availability.

Strategies
4.1 To establish the issues and potential research areas associated with the management of new technologies especially in the areas of genetic engineering of plants and animals, precision farming and associated information management.

4.2 To investigate the management implications of new technologies and provide strategies for management of the changes especially through the development of case studies.

4.3 In collaboration with private and other public agencies to assist the development of decision support software associated with the management of new technologies.

Performance Indicators
• Availability of issues papers concerned with research areas and management of the newtechnologies by 2001.

• Availability and utilisation of advice on management implications of the new technologies including the availability of case studies.

• Availability of specific decision support software products by 2003.OBJECTIVE O

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OBJECTIVE FIVE

Objective
To provide the R & D base to underpin the development of internationally acceptable accreditation and quality assurance systems for sustainable agricultural production and new and emerging agri-industry systems.

Background
There are increasing demands for internationally acceptable accreditation systems for the supply of food and fibre products. Consumers are very sensitive regarding issues of food safety. Supply chains have developed with increased interdependence of all components and consequent demands for uniform approaches to quality standards. The trend towards branding of products places producers, processors and retailers in positions of high risk should quality standards not be guaranteed.

Strategies
5.1 In collaboration with other agencies facilitate the development of accreditation systems for Australian agri-industry.

5.2 To support work on the establishment of quality assurance systems by developing protocols and processes that deliver according to agreed standards of food safety and product specifications.

5.3 In collaboration with other agencies, to provide measures for testing the sustainability of systems.

Performance Indicators
• Availability and adoption of accreditation systems for Australian agri-industry.

• Availability and utilisation of protocols and processes for the establishment of quality assurance systems.

• Provision of measures for testing the sustainability of systems.

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Attachment
Objectives and Strategies of Other Sub-programs in RIRDC Program 4

Sub-program 4.1 Global Competitiveness

Objective
To identify important impediments to the development of a globally competitive Australian agricultural sector and support research that will lead to options and strategies that will remove these impediments.

Key sub-program strategies:

• Support analyses identifying new opportunities in the market place.
• Develop collaborative links with the Government’s ‘Supermarket to Asia’ initiative.
• Develop a research program supporting the development of a more globally focused competitive food sector.
• Support analyses focussing on domestic impediments to industry performance, thereby enhancing export performance and an export culture particularly in those industries which have previously been focussing domestically.
• Develop options and strategies improving global competitiveness of the agricultural sector by improving the current set of trade policies and therefore removing existing trade barriers.
• Develop a better understanding of domestic and international markets for agricultural products when there is a clearly established market failure in the provision of such information.
• Support analyses of the linkages between various stages in the producer to consumer chain and identify areas —regionally, domestically and internationally —where these linkages can be better integrated and their efficiency improved.
• Evaluate other existing and alternative policies and institutions affecting the development of a globally competitive agricultural sector.




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Sub-program 4.3 Human Capital, Communications 
and Information Systems

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

Key sub-program strategies

• Develop electronic communication systems with emphasis on responsiveness to farmers’ needs.
• Further investigate farmer education and training, particularly delivery mechanisms and the links between formal and informal sectors.
• Investigate rural social issues and issues relating to rural communities both in towns and on farms.
• Evaluate existing and alternative policies and institutions affecting the development of a more innovative rural sector.
• Support farm occupational health and safety research focussing on improved uptake mechanisms, data, hazard profiles for each commodity group and design.
• Develop research and leadership capabilities through postgraduate scholarships, support for the Australian Rural Leadership Program and support for strengthening the role and profile of rural women.

Last updated: 16 July 1999 Copyright © RIRDC
http://www.rirdc.gov.au/pub/ras5yr.htm