Rural Industries Research & Development Corporation

RIRDC Strategic Plan: 1997 to 2002

Key Objectives, Strategies and Performance Indicators

Program 1: Prospective New Industries	Program 2: Emerging New Industries
Program 3: Established Industries	Program 4: Future Agricultural Systems
Investment Objectives by Sub-Program

Program 1: Prospective New Industries

Objective

To investigate and to develop prospects for new industries in rural and regional Australia.

Background statement

New industries provide opportunity for regional diversification and growth in employment for rural Australia. However, the knowledge, skill base and the markets for new industries are built up over decades rather than months or years. RIRDC assists by providing the R&D organisational skills and the finance to help compress the development cycle for new industries. It supports exploratory research to determine the technical and economic feasibility of prospective industries. In addition, the cooperation fosters the development of new industries to a stage where they have critical mass and may opt to establish levy-based programs under the auspices of RIRDC or other RDCs.

Sub-Programs

Plants, including:

• bush foods;
• culinary herbs, spices and beverages;
• extractive and fibre crops; and
• other pre-commercial and prospective crops.

Animals, including:

• crocodiles;
• ostriches and emus;
• kangaroos; and
• milking sheep and goats.

Strategies

We shall achieve this objective by:

1. identifying and responding to opportunities which could, in time and through appropriate R&D support, be developed into sustainable new industries for rural and regional Australia;

2. facilitating the appropriate research — industry linkages, interactive communication, organisational structure and strategic plans for development;

3. clarifying research needs, priorities and output targets and establishing appropriate R&D programs and/or projects to realise targeted outcomes;

4. developing appropriate technology and market chain knowledge for industry development; and

5. ensuring that the results of the research program are disseminated widely to industry entrants and participants.

Performance indicators

We will measure our success by:

• the development of sustainable new industries;
• industry adoption of the results of research which we organise and support;
• achievement of average benefit/cost ratios of two and/or internal rates of return greater than 15 per cent on R&D projects;
• the level of industry funding support for our research programs; and
• the growth in industry outputs over a 5–10 year period.

Program 2: Emerging New Industries

Objective

To expedite the growth and development of emerging new rural and associated processing industries.

Background statement

Our emerging industries are on the early steps of the development ladder. However, they still lack the knowledge base, skills, organisational structure, scale and financial capability of the established industries.

They also may lack an established R&D support base in R&D agencies and/or mechanisms to contribute financially to their research needs.

Sub-Programs:

• Asian foods
• Agroforestry and farm forestry
• Cashews
• Deer
• Essential oils and plant extracts
• Organic produce
• Rare natural animal fibres
• Tea tree oil
• Wildflowers and native plants

Strategies

We shall achieve this objective by:

1. identifying and responding to opportunities which will, in time and through appropriate R&D support, enhance the sustainable growth of emerging industries;

2. facilitating the appropriate research — industry linkages, interactive communication, organisational structures, strategic plans and R&D funding support for development;

3. clarifying research needs, priorities and output targets and establishing appropriate programs and/or projects to realise targeted outcomes;

4. developing technology packages and "know how" to support the growth of sustainable new industries;

5. ensuring that the results of the research program are disseminated widely to industry particpants; and

6. providing R&D leadership on strategic industry development issues.

Performance indicators

We will measure our success by:

• the growth in emerging industries over a five-year period;
• our establishment of R&D plans which address each industry’s agreed strategies and goals;
• the level of industry funding support for the research programs we establish and support;
• the level of the adoption by industry of the results of research which we organise and support; and
• our ability to achieve average benefit/cost ratios of five and/or internal rates of return of greater than 20 per cent on R&D projects.

Program 3: Established Industries

Objective

To maximise the contribution of R&D to the profitability and sustainability of the established rural industries for which RIRDC provides R&D management services.

Background statement

Our rural and associated industries encompass many sectors which, as separate industries in their own right, all contribute to the national and regional economy of Australia. RIRDC has contracted to provide R&D management services to several of these industry sectors.

Sub-Programs

• Chicken meat
• Eggs
• Fodder crops and animal feeds
• Honeybee
• Horses
• Rice
• Pasture seeds

Strategies

We shall achieve this objective by:

1. identifying and responding to R&D opportunities for improved profitability, for industry (export) growth and for more sustainable management of industry resources in collaboration with industry stakeholders;

2. clarifying research needs, priorities and output targets and establishing appropriate programs and/or projects to realise targeted outcomes;

3. promoting an innovative and collaborative research and development environment within the industry and with the R&D agencies supporting each industry;

4. ensuring that the results of the research program are disseminated widely to industry;

5. developing practices to compress the timeframe of research, development and industry adoption of new technology; and

6. providing leadership on strategic research and industry development issues.

Performance indicators

We will measure our success by:

• our establishment of R&D plans which address each industry’s agreed strategies and goals;
• industry funding support for the agreed plans through R&D levies or other dollar-for-dollar mechanisms;
• the adoption level of the results from our research projects within industry practice; and
• our ability to achieve average benefit/cost ratios of ten and/or internal rates of return of greater than 25 per cent on R&D projects.

Program 4: Future Agricultural Systems

Objective

To identify key generic cross-sectoral issues confronting the rural sector and devise appropriate R&D programs that will benefit the sector and the nation.

Background statement

RIRDC’s charter requires it to address issues which may not be a priority issue for one specific industry but are of importance to either the rural sector or the nation. The corporation executes this function in collaboration with other R&D agencies wherever possible.

In January 1997, the Portfolio Minister identified the following Government priorities for the Corporation:

1.Identify strategic market access and investment opportunities based on improved access to international markets and then develop strategies to take advantage of these opportunities.

2. Increased productivity of land, labour and capital in rural industries.

3. Encourage the investment in and up-take of high quality Australian products.

4. Facilitate a competitive Australian export and import replacement sector based on increasing the value from production through increased processing and the delivery of value added product to market.

5. Protect and enhance Australia's natural resource base.

These priorites were advised to all Research and Development Corporations. With respect to RIRDC, the following three sub-programs have been established for the generic cross-sectoral agenda.

The sub-programs address many of the Government priorities - priorities which also are being pursued via the industry specific programs of the Corporation.

Sub-Programs

Global Competitiveness, including:

• domestic impediments to competitiveness;
• agricultural trade policy analyses;
• market and product chain analyses;
• regional, national and international agribusiness systems;
• supporting the "Supermarket to Asia" initiative; and
• related policies and institutions.

Resilient Agricultural Systems, including:

• development of accredited sustainable production systems;
• new and emerging agricultural systems;
• climate change and variability;
• managing pest-related constraints and risks;
• biotechnology - opportunities & risks; and
• related policies and institutions.

Human Capital, Communications and Information Systems, including:

• new information and communication systems with particular reference to the Internet;
• development of best practice models and processes for communication and education;
• rural communities, services and social issues;
• farm workforce health and safety;
• rural leadership development with particular reference to RIRDC related industries;
• research scholarships funding with particular reference to RIRDC related industries; and
• related policies and institutions

Global Competitiveness

Goal

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

Broad strategies

1. Support analyses which identify new opportunities in the market place. Develop collaborative links with the Government's 'Supermarket to Asia' initiative. Develop a research program which supports the development of a more globally focused competitive food sector.

2. Support analyses which focus on domestic impediments to industry performance, thereby enhancing export performance and an export culture particularly in those industries which previously have been focused domestically.

3. Develop options and strategies which will improve the global competitiveness of the agricultural sector by improving the current set of trade policies and therefore removing existing trade barriers.

4. 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.

5. 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.

6. Evaluate other existing and alternative policies and institutions which affect the development of a globally competitive agricultural sector.

Performance indicators

We will measure our success by:

• the establishment of an R&D Plan that addresses the needs of stakeholders;
• the idevelopment of options and strategies that identify new opportunities in the market place; in particular, contribute effectively to the Government's 'Supermarket to Asia' initiative;
• the identification of options and strategies for reducing trade barriers and domestic policy impediments for Australian agriculture;
• improvements in linkages between producers, consumers and providers of agribusiness goods and services;
• research project outcomes that have enhanced export performance and culture and resulted in the removal of impediments to effective trade with Asia in the food sector;
• the identification of new policies or institutional arrangements which will improve Australia's global competitiveness; and
• demonstrating that average benefit/cost ratios of ten and/or internal rates of return of greater than 25 per cent can be achieved for R&D projects.

Resilient Agricultural Systems

Goal

To facilitate the evolution of agricultural systems having the diversity, flexibility and robustness to enable the sector to be responsive to challenges and opportunities.

Broad strategies

1.Develop and test the applicability of internationally acceptable Accredited Sustainable Production Systems (to facilitate obtaining premiums for products produced in accordance with ESD principles).

2. Facilitate the development of new and emerging non-traditional agricultural systems including hydroponic and microbiological systems for food and fibre production, and to further the conceptualisation of new systems.

3. Assist Australian agriculture, business and policy makers to develop strategies to take best advantage of opportunities and to address threats arising from climate change and variability.

4. Facilitate management of constraints and risks imposed by pests, weeds and diseases and the methods used to control them.

5. Assess opportunities and risks arising from new biotechnological developments.

6. Evaluate existing and alternative policies and institutions affecting the development of resilient agricultural systems.

Performance Indicators

We will measure our success by:

• the establishment of R & D plans which address the needs of stakeholders;
• the adoption level of results from our research projects;
• pilot trialed accredited sustainable production systems in a range of industries and regions;
• analytical processes for conceptualising / developing new agricultural systems;
• the development of new agricultural systems;
• the development of adaptive responses and new opportunities for rural industries related to climate change and variability;
• improved management of pest-related constraints and risks;
• safe use of biotechnology to improve profitability and sustainability;
• the identification of policies and institutions which are more responsive to the needs of sustainable and profitable agricultural systems; and
• our ability to demonstrate that average benefit/cost ratios of ten and/or internal rates of return of greater than 25 per cent can be achieved for R&D projects.

Human Capital, Communications and Information Systems

Goal

To facilitate innovation in the agricultural sector by improving the use of communication and education processes and appropriate information systems.

Broad strategies

1. Develop accessible, client centred information and communication systems.

2. Develop more effective communication and education processes.

3. Research priority areas in relation to rural communities and social issues.

4. Evaluate existing and alternative policies and institutions affecting the development of a more innovative rural sector.

5. Develop and facilitate best practice in farm health and safety.

6. Support rural leadership development for RIRDC related industries.

7. Provide research scholarships for RIRDC industries.

Performance Indicators

We will measure our success by:

• the establishment of R & D plans which address the needs of stakeholders;
• the adoption level of results from our research projects;
• the increased use of the internet and other new information and communication systems by farmers to improve farm management;
• improved communication between end users (including farmers) and researchers;
• the increased responsivity of policies and institutions involved in agricultural education and communication;
• better practices for farm health and safety;
• provision of up to three new rural leaders trained per year contributing to RIRDC industries;
• provision of up to five research post graduates per year contributing to RIRDC industries; and demonstrating that average benefit/cost ratios of ten and/or internal rates of return of greater than 25 per cent can be achieved for R&D projects.