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Rural Industries
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This is RIRDC's quarterly
corporate newsletter distributed by mail to 2,500 researchers, industry,
government, farmers, libraries and consultants. Contributions are welcome.Email
us to be placed on the mailing list.
Editor: Eva Hickman,
ph 02 6272 3186. email:evah@rirdc.gov.au
Australians are now embracing electronic commerce more than ever with the number of online purchasesdoubling in the past year.
Bureau of Statistics figures showed 409,000 adults made at least one purchase in the year to May 1998, totaling an estimated $100 million.
In doing so they have thrown off one of e-commerce’s major drawbacks – security, 75 per cent being prepared to send credit card details via the internet.
Offshore purchases
Interestingly it is off-shore companies which are cashing in on the growth in commerce transactions with 70 per cent of purchases being made overseas.
Unfortunately there were no figures of purchases by people outside capital cities. But the report did find 3.6 million people accessed the internet in the period with 942,000 (26 per cent) from rural areas.
Following that trend, people not living in capital cities would account for a quarter (100,000) of the purchasing adults and $25 million in value.
This would be an increase of online usage, according to a RIRDC report – The opportunities of electronic commerce for Australian farm businesses – which found 16 per cent of rural internet users had purchased on-line (1997 figures).
But it appears e-commerce still is a largely untapped market.
Ten-fold increase
The opportunities of electronic commerce for Australian farm businesses authors Jim Groves and Jenny Da Rin report the potential by 2000 could be ten times what it is now.
A 1997 Tax Office report found that Internet commerce in Australia might total $4650 million in year 2000, and might reach 20 per cent of total household purchases in 10 years time, the report says.
According to Groves and Da Rin, assuming these figures apply proportion- ately to Australian farmers, this implies:
Rural benefits
The value to rural people would come in reduced costs (purchase, transport etc) through direct contact and reduced marketing costs.
Groves and Da Rin point to a second benefit for farmers as e-commerce expands on a global scale.
"There is a potential gain in Australia’s market share if Australian producers, agribusiness etc, take a greater advantage of electronic commerce opportunities than their overseas competitors," the report said.
"This is quite possible – evidence to date suggests that Internet access among Australian farmers is as high as any in the world."
Online banking
Internet purchases may be growing but Australians have yet to embrace the electronic world for other on-line transactions, according to the ABS figures. Less than one per cent (0.6) of Australians have paid bills or transferred funds via the Internet and even less (0.3) of people living outside capital cities have used the services.
Rural people are also lagging in areas like phone banking with only 24 per cent paying bills or transferring funds via the phone compared to 33 per cent of people in capital cities.
New reports
RIRDC is currently completing four reports on the Internet and electronic communications. Each deals with different aspects of the industry from education to social impacts.
The studies aim to help organisations serving Australian agriculture and individual farmers make better use of the Internet. The reports are expected to be available early next year – look for notification in Summer’s Shaping the Future.
Contact: Jim Groves, phone 07 5526 9698. The report will be available in early 1999.
But what’s crucial is that we are addressing real problems and real opportunities and these issues are being tackled by dedicated, professional people.
Central to this is our partnership arrangements with industry. It is only by working together that we can ensure the research/investment dollar is producing the returns to underpin industry development.
As part of this partnership we need strong accountability arrangements and transparency in our operations so that all stakeholders can get a strong understanding of our directions and effectiveness.
The annual report for the Corporation for 1997-98 has now been tabled by the Minister and, as such, is available as a public document.
A lot of effort has gone into it and I would encourage anyone who hasn’t got one already, through our mailing list, to ask for one.
Hopefully, it will satisfy your standards as an open and clear report for 1997-98 operations.
Peter Core
Managing Director - Rural Industries Research and Development Corporation
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John Herbert is RIRDC’s deputy chairperson, currently in his second three-year term after joining the board in July 1993. John is Managing Director of The Goya Solution, a management consultancy specialising in assisting organisations to define and achieve their corporate goals. He has special expertise in international agribusiness and is currently chairperson of the Queensland Horticulture Industry Development Council, a member of the Board of the CRC for Tropical plant Pathology and is RIRDC’s representative on the CRC for Sustainable Rice Production. |
Jeff Davis manages our Asian Foods, Rice, Fodder Crops, Pasture Seeds and Global Competitiveness programs. He is also the RIRDC representative of the R&D Advisory Committees for the Chicken, Egg, Honeybee and Horse programs. In addition he manages the Corporation’s benefit-cost impact evaluations. An agricultural economist by profession, Jeff has been with RIRDC for just over two years. He came to RIRDC from the Australian Centre for International Agricultural Research (ACIAR) where he developed and managed their Economic Evaluation Unit. |
Almost two decades of dedication and the pursuit of equine knowledge has won Associate Professor David Hodgson the 1998 RIRDC – Vetsearch Researcher of the Year.
Dr Hodgson is recognised in Australia and internationally for his extensive work in the areas of exercise physiology and, more recently, orthopaedic disease.
RIRDC Equine R&D Advisory Committee chair Jane Vincent commended Dr Hodgson on his research.
Heat stress
"Dr Hodgson has made a distinguished contribution to equine research through his innovative work in exercise physiology and particularly by advancing knowledge in the areas of thermoregulation and heat stress in horses," she said.
"He is internationally recognised for his high quality research in a number of fields, with more than 150 scientific papers and book chapters published relating to equine medicine and equine exercise physiology.
"Other significant work just completed has been in advancing the understanding of factors causing wastage in young racehorses and developmental orthopaedic disease of foals."
Dr Hodgson also has provided outstanding postgraduate clinical and research training programs for veterinarians and scientists, who have themselves made significant contributions to the horse industry. He is the co-author of two books used internationally – The Athletic Horse and Manual of Equine Practice.
Top research student
RIRDC-Vetsearch Equine Research Student of the Year is Dr Mark Williamson who has undertaken research of great significance to the horse industry with detailed investigations on the Hendra virus (formerly called equine morbillivirus).
His research has focussed on how the virus replicates and is transmitted to other animals by infected horses and flying foxes.
Ms Vincent said Dr Williamson’s PhD investigations and research had been praised by the research industry for its practical importance and extension of previous research into the virus.
"Dr Williamson has developed laboratory methods for studying the behavior of the virus in cultures of endothelial cells and has found that the virus enters these cells in a different manner than most other viruses," she said.
"This information has provided an important understanding of how the virus spreads throughout the body.
The research also has important practical implications for handling of infected horses, should there ever be another outbreak of the disease."
Contact: Jane Vincent, chair, phone 02 4849 4551.
Bushfood strategy (plan) on the table
One of Australia's oldest industries, but new in terms of development, now has a strategic plan to help drive its development over the next four years.
RIRDC has just completed an R&D plan for the Australian bushfood industry under its New Plant Products program.
Purpose of plan
The plan is based on consultation with the industry and community and has three purposes:
l To provide clear signals to the industry, to governments and to the research community regarding R&D needs and priorities for the period 1998 – 2002; and
l To encourage discussion that will enable the needs of the industry to be further defined and responded to as the industry gathers momentum.
Latest link
The plan is designed to accommodate changes in research needs and priorities
as the industry develops. It is the latest link in the chain connecting:
l RIRDC’s support for the activities of the Australian Native Bushfood Industry Committee (ANIBC); and
l The commissioned report Prospects for the Australian Native Bushfood Industry.
The plan will be widely distributed by RIRDC and be used as a guide
for ongoing R&D investments. It is available from the RIRDC website
(www.rirdc.gov.au) or phone 02 6272 4819 for a free copy.
Contact: Dr David Evans, phone 02 6258 6852.
Emerging industries return $12m in new analysis
Every dollar spent in RIRDC’s emerging industries portfolio is delivering $2.60 in net benefit according to a new benefit-cost analysis just published.
With an average expenditure of $4.6 million a year, the total payoff is almost $12 million a year in net benefit.
Completed by the Centre for International Economics, the report, Benefit-cost Analysis of RIRDC’s Emerging Industries Program, analysed the eight program areas in the emerging industries portfolio and delivered the dollar value based on a sample of completed projects.
Overall, 267 projects were considered with 22 per cent judged to have good outcomes, 25 per cent judged to have low returns and only three per cent considered to have not produced any outcomes.
Of the remaining 50 per cent, 30 per cent were inconclusive, needing further work to ensure an outcome and 20 per cent did not have sufficient information to make any judgement.
Good returns
RIRDC managing director Peter Core said the results indicated a good return on investment for the industries in the portfolio despite difficulties in assessing the public benefit of research.
"Because emerging industries encompasses eight different programs there can be a large diversity of outcomes depending on the stage and state of each industry," Mr Core said.
Diverse outcomes
"An industry like cashews which is still in its infancy is difficult to assess. Breeding programs, which are essential for its long-term future, show low returns despite a significant rise in yields because of the long lag between the initial research and expected production.
"At the other end of the scale an Agroforestry project into different tree planting techniques in the New England region, completed in 1993, delivered considerable benefits in terms of cost savings as the results were used by Landcare groups, he said.
Strategic planning
Mr Core said the report found strategic planning had improved over the last few years, improving project choice and placing a greater focus on the potential payoff for the project.
"Along with strong industry consultation we can target areas in emerging industries which will benefit producers most," he said.
To order report: phone RIRDC on 02 6272 4819. $10 plus $4 p&h
Contact: Jeff Davis, phone 02 6272 4152.
For all new and emerging industries, securing markets and then supplying presents a large hurdle. By their nature emerging industries have to aim for high profit margins to survive, and these cannot be delivered by focusing on producing bulk undifferentiated products and then attempting sales.
Consumers have more choices than ever before and new industries provide a significant part of the diverse and exotic range of food and fibre products on offer. This has led agribusiness, on the world stage, to move towards supply chain management.
What is it?
What do I mean by supply chain management? A chain of business relationships spanning from producers through transport and processing to retail distribution. Within the supply chain the aim is to build relationships based on shared information systems, agreed quality standards and technical research, and together to deliver products with qualities and characteristics customers desire. Some have suggested it might be better termed a demand chain!
Competition for a consumer’s dollar is based on the strength of the chain as a whole – it’s ability to consistently deliver products that consumers want. Consolidation of marketing arrangements and the formation of partnerships will be vital for producers to reduce costs and provide additional value to customers.
Outdated approach
Our traditional approach in Australian agriculture of focusing on producing bulk undifferentiated products which we lose track of as soon as they go out the farm gate is outdated. Relationships between businesses need to be to the mutual benefit of the industry, and designed to meet the customer requirements in high value markets on the world stage.
In the USA a key change has been from "produce first and then sell"
to "contract first and produce to specification". The message speaks for
itself.
RIRDC’s Global Competitiveness R&D program has undertaken several projects looking at different aspects of trade liberalisation and foreign investment.
The report reviews the role foreign investment has played in Australia’s development and asks whether concerns about foreign investment are justified.
It considers whether Australian firms can compete with foreign firms and how much foreign investment there is in our agricultural sector. Concerns over the increasing power of foreign firms and the costs of transfer pricing are also discussed.
The government’s current consideration of the Multilateral Agreement on Investment (MAI), which aims to free up foreign investment flows, has also raised questions in people’s minds about what Australia has to win or lose from such an agreement.
This report looks at several foreign investment policy options and considers the purported benefits of the MAI and the possible catches.
Two other reports on international trade and policy have recently been completed and published.
The National Farmers’ Federation (NFF) took the initiative in hosting a meeting in Sydney, in April this year, of Farm Leaders from Cairns Group countries.
With the support of RIRDC, the NFF organised a seminar on trade strategies for Cairns Group Farm Leaders. This was the first time Cairns Group Farm Leaders had come together in this way.
The seminar was organised to consider four basic questions – what lessons could be learnt from the Uruguay Round, what issues had to be addressed in the future, what were the politics of the issues and how important was trade liberalisation to Cairns Group farmers?
The four questions were framed to answer one larger question – what should Farm Groups in Cairns Group countries do to advance trade liberalisation?
The set of papers produced will serve as a basic tool for Cairns Group Farm Leaders as they develop the collaborative strategies on which they agreed at the seminar.
It paints a vision for what might be achieved over the next five years and reviews the forces which will shape the trade outcomes.
Listed are a set of main actions Australia might pursue to achieve the goal of more liberal trade in agriculture and food.
RIRDC believes the report will be a first step for relevant people and organisations to help form their approach to trade liberalisation and the scope of activities to be undertaken.
Report copies available from RIRDC, phone 02 6272 4819. $15 + $6 p&h each
Contact: Jeff Davis, RIRDC research manager, phone 02 6272 4152.
This industry ranks third in world production of edible tree nuts with a current world production of about 700,000 tonnes of nuts-in-shell (NIS).
World trade exceeds US$2 billion and there is expanding world demand.
The industry is currently at an early stage and needs high-yielding (>4t/ha NIS) selections and management practices to achieve and sustain such high yields.
Market issues
India (60%) and Brazil (31%) are the major exporters. The major importers are the USA (55%), the Netherlands (10%), Germany (7%), Japan (5%) and the UK (5%). Australia imports about 5000t/year and produces about 25 tonnes of kernels.
The current price of W320 grade (320 kernels/pound) is between US$2.40-$2.80 and is expected to remain steady.
Current Australian cashew production is about 25 tonnes of kernels/year.
Production requirements
Cashews are well suited to a seasonally wet/dry tropical climate. The area should be frost free with mean daily temperatures of at least 250C. Soils should be free draining.
Flowering and fruiting in Australia extends from May to December.
A joint government research and grower breeding program is currently developing high-yielding hybrids adapted to Australian conditions.
Processing
Nuts are sent to China for shelling and then sold mainly as processed value-added products. Such sales reap higher returns compared with NIS and raw kernel sale.
And growers already in the industry will be able to use the manual to ensure production is on-track and help overcome any current problems.
Easy-to-use manual
The cashew information kit draws current information and research into one easy-to-use manual, utilising the expertise of RIRDC, Queensland Horticulture Institute, Department of Primary Industries, Queensland, CSIRO, Northern Territory Department of Primary Industries and the Department of Natural Resources, Queensland.
The manual will be part of QDPI’s Agrilink series which provides easy access information a variety of industries.
It takes current and prospective growers through the industry from a marketing overview, to set-up, capital investment, agronomy and expected outcomes.
Common questions are anticipated and expertly answered, and possible pitfalls and how to avoid them are also covered.
RIRDC research manager Tony Byrne said the manual would help foster adoption, the expansion of the industry, and promote good management by those already producing.
Management strategies
"The manual delivers management strategies for sustainable economic returns while addressing long-term risks to soil and water resources," Mr Byrne said.
"Soils suitable for cashew production in northern Australia are fragile by nature and the use of this manual will help limit environmental damage but allow industry expansion and returns.
"It fits well with other RIRDC research programs, ensuring the information is freely available to industry."
Contact: QDPI, phone 1800 677 640 or email agrilink@dpi.qld.gov.au
The JVAP is a collaborative effort of RIRDC, Land and Water Resources Research and Development Corporation and Forest and Wood Products Research and Development Corporation.
National Classification of Catchments for Land and River Salinity Control is the third publication in the ‘Water and Salinity Issues in Agroforestry’ series.
The report, edited by Jane Coram of the Australian Geological Survey Organisation and written collaboratively by a number of scientists from across Australia, proposes a national framework of catchment types to assist management effort across Australia.
It presents 15 conceptual models which characterise the range of ground water processes causing salinisation, and details known examples of these models across Australia.
The models can be used to better understand the hydrogeological characteristics of catchments and the individual occurrences of salinity. They can also be used to extrapolate existing research on well-studied catchments to other unstudied catchments with similar hydrogeological characteristics.
The report also makes several recommendations for future research related to classifying catchments for salinisation types and developing appropriate management approaches.
To order report, phone RIRDC on 02 6272 4819. $10 plus $4 p&h.
Contact: Jane Coram, phone 02 6249 9111.
This is the finding of a study funded by RIRDC that showed that healthy babies could eat up to four egg yolks a week without any health risks such as raised cholesterol or increased allergies.
Under-used
The researchers, Robert Gibson, Maria Makrides and Joanna Hawkes of the Child Nutrition Research Centre at Flinders Medical Centre in South Australia, have found that egg yolks are under-utilised in babies’ diets.
‘Wonder food’
"Egg yolks have been described as nature’s ‘wonder food’," said Dr Gibson. "They can be an ideal food for infants and children because they supply many nutrients in a small volume. They also provide nutrients that can be otherwise limited in the diet of infants, particularly docosahexaenoic acid (DHA) and iron.
"Recently, eggs have become available that have an even higher nutritional value through enrichment with omega-3 long chain polyunsaturates, such as DHA," he said.
Bottle-fed bonus
A major finding of the study was that formula fed infants who ate four omega-3 egg yolks per week increased the levels of DHA in their blood cells to that of breast-fed infants.
"Studies have suggested that infants depleted of DHA may be at risk of delayed visual and neural development. Supplementing the diet of formula fed infants with DHA can result in an improvement in these important markers of well being," he said.
Importantly, the study demonstrated that there was no measurable increase in markers of allergy in infants eating up to four egg yolks per week. In addition, cholesterol levels were not raised above normal levels for breast-fed infants.
"Given the range of vitamins, minerals, proteins and fats, egg yolks should be seen as an important part of a well balanced diet for Australian infants and toddlers," Dr Gibson said.
For a free 8 page short report of this study (No 37) phone RIRDC on 02 6272 4819.
Contact: Dr Robert Gibson, phone 08 8204 5469.
Asia Market Bridge is a fee-for-service which aims to assist companies become export ready, gain access to finance and seek out and develop Asian markets.
Endorsed by the Supermarket to Asia Council, Asia Market Bridge tailors packages to suit specific company requirements.
Areas covered include market research, strategic planning, access to finance, in-market support, market development and quality criteria.
By following the program, companies are taken to the point where they should have customers and the necessary skills to maintain export sales momentum.
Contact: Asia Market Bridge, phone 02 9955 0991 or fax 02 9955 2275
However, in order to use the trees effectively, we need to know how much water trees use.
A new report ‘Agroforestry Water Use in Mediterranean Regions of Australia’ presents a critical review of the research to date on tree water use in Mediterranean climates of southern Australia and the implications of tree water use on groundwater.
It is the second publication in a six part ‘Water and Salinity Issues’ series.
Contact: Paul Raper, phone 08 9780 6295. To order report phone RIRDC on 02 6272 4819. $10 plus $4 postage.
The manual includes side skeletal diagrams, kangaroo meat cuts, nutritional composition, primal cuts and kangaroo species maps.
The full colour manual, prepared by AUS-MEAT, is available from RIRDC.
To order report phone RIRDC on 02 6272 4819. Cost: $10 plus $4 postage.
The cold-set binder technology identifies two different binding processes that are required to manufacture restructured steaks or roasts that are safe to eat and have acceptable quality with no foreign meat flavours.
The researchers detail their findings in the RIRDC report ‘Adding Value to Venison Forequarters and Trimmings’.
Contact: Dean Gutzke, phone 07 3214 2000. To order report phone RIRDC on 02 6272 4819. Cost $10 plus $4 p&h.
It was prepared by Howard Rubin and his wife Elle Fikke-Rubin, who have had over 25 years of herb growing experience both in Australia and overseas.
Contact: Howard Rubin, phone 02 6629 1057. To order report phone RIRDC on 02 6272 4819. Cost $10 plus $4 p&h.
A newly released report, ‘The Indian Processed Food Market: Tradition and Change’ examines the growth in demand for high quality processed foods in the Indian market, and outlines possible entry strategies for Australian companies.
Similarly, recent developments in Myanmar (Burma) suggest that opportunities for Australian companies could be opening.
A new report, ‘Agrifood Sector in Myanmar, explains the growing opportunities being created through Myanmar’s entry into ASEAN, greater deregulation and privatisation, substantial natural resources, growing investment flows and a more conciliatory attitude by some developed countries.
India: Contact Laurie Smith, phone 02 9955 2711. To order report phone RIRDC on 02 6272 4819. $20 plus $6 postage. A free short report of the publication is also available.
Myanmar: Contact Suku Bhaskaran, phone 03 9248 1053. To order
report phone 02 6272 4819. $15 plus $6 postage. A free
short report is also available.
Last updated: 24 November 1998
Copyright © RIRDC
http://www.rirdc.gov.au/pub/summer98.htm