Native Flower Seminar 2006 - Flower Knowledge Centre

Native Flower Seminar 2006

26th & 27th May 2006 Department of Primary Industries & Fisheries

Tor Street, Toowoomba Qld 4350

To maximise the profitability, productivity and sustainability of Australian Native Flowers.

Native Flower Seminar May 2006 Page 2

Index Page Number

Conference Agenda 3

Speaker Profiles 4

Seminar Presentations 7

What is a profitable Flower Farm 8

Farm Management Systems 21

Soil & conservation issues on broad acre floriculture 23

Managing financial risks for agricultural exporters 26

The Season Ahead - Actions for Profit 27

The Sustainability Movement and its influence on Supply Chains 29

Flowers by Sea 34

New Crop Development 35

Research Update Presentation 43

Farm Tours 49

Farm Locations and Directions 50

Cook’s Riceflowers 51

Ebonybrook WaxFlowers 59

Mt Hallen Proteas 64

Native Flower Seminar 2006


Friday 26th May 2006 8:30 - 9:00 Registration Wendy Lawton - FAQI 9:00 - 9:05 Official Opening Brian Shannon - President FAQI Industry Snapshot Session Chair – Lodi Pameijer 9:05 - 9:25 Ewan Colquhoun - Ridge Partners Snapshot of the Industry Partnership Process Production Management

9:25 - 10:05 Gerry Parlevliet – Dept of Agriculture & Food WA What is a Profitable Flower Farm?

10:05 - 10:30 Diana Dawson - Qld Farmers Federation Farm Management Systems

10:30 - 11:00 Morning Tea Session Chair – Shaun O’Brien

11:00 - 11:20 Pam Pittaway - Chrysalis Landscape Consultants Soil and conservation issues in broad acre floriculture

Export

11:20 - 11:40 Lisa Ironside – Currency Strategist – Bank West Where is the Aussie Dollar Going?

11:40 - 12:00 Bill Johnson – Qld DPI&F Managing Financial Risk for Agricultural Exporters 12:00 - 12:20 Gerard Clancy - Flora Marketing Aust. The Season Ahead – Actions for Profit 12:20 - 12:45 Questions 12:45 - 1:30 Lunch Marketing Session Chair – Shane Holborn

1:30 - 1:50 Ray Collins - Univ Qld Gatton The Sustainability Movement & its Influence on Supply Chains

1:50 - 2:35 Jenny Ekman - NSW Dept Primary Industries Flowers by Sea

2:35 - 2:55 Lilly Lim - Centre for Native Floriculture UQ

The Value Chain Program-Domestic market research conducted in Sydney, Melbourne & Brisbane

2:55 - 3:25 Afternoon Tea Research Session Chair – Paul Blinco

3:25 - 3:45 Gerry Parlevliet – Dept of Agriculture & Food WA New Crop Development

3:45 - 4:15 Margaret Johnston - Centre for Native Floriculture UQ Research Update Presentation

4:15 – 4:35 Brian Shannon Industry Futures – Rural Water Use Efficiency 4:35 - 5:00 Seminar Wrap-up & Close

7:30 - late Dinner (Optional) Angelo’s House Restaurant, 210 Herries St Toowoomba (own transport)

Saturday 27th May 2005

Farm Tours Cook’s Riceflowers, Ebonybrook Waxflowers & Mount Hallen Proteas (Own transport required)

Program


Gerry Parlevliet Senior Development Officer - Department of Agriculture Western Australia Gerry is the manager of the floriculture project within the Department of Agriculture, Western Australia that has the commercial focus to take Western Australian native plants into the market. Projects include Waxflower breeding, selection of other species for commercialisation, developing an international pot plant market, as well as research and development in somatic hybridisation and propagation technology. Gerry Parlevliet has been involved in wide arrange of agricultural and land management roles in his 40 years with the department. He has developed a Benchmarking/profitability project and was involved with a Waxflower nutrition project with Kevin Seaton. The Waxflower Manual has been recently produced and a Banksia Manual is on its way. Diana Dawson Farm Management Systems Project Officer - Qld Farmers Federation Diana has been with QFF since January 2005 assisting with developing the Farm Management Systems framework. Prior to that she was a member of the policy section of CANEGROWERS. Diana’s past experience includes research scientist for the sugar, wheat and rice industries, project officer for a catchment’s management association, and community education officer. Diana has a Masters degree (Science) and a Graduate Diploma in Education, both from the University of Queensland. Dr Pam Pittaway Specialises in soil health and organic waste management - Chrysalis Landscape Consultants Since 1977, Pam has specialised in the field of plant, soil, and microbial interactions. Her research has ranged from understanding the role of the soil in eucalypt dieback in the coastal forests of Victoria, to understanding the role of free-living nitrogen fixers in the fertility of ponded pasture grazing systems in Central Queensland. Crops that she has studied as part of her research on soil-borne fungal disease include wheat, peanuts, bananas and cotton. Most recently, she has been investigating the biology of the composting process and the agronomic properties of different composted products. Primary producers have been essential partners in all of her ventures, providing the observations and practical experience to help to focus the research and to keep it relevant! Pam has published over 20 papers in scientific journals and conference proceedings, but considers working in partnership with primary producers as the most effective way to translate research and development into practice. Between 1985 and 2006 Pam has lectured at the tertiary level in the areas of Introductory Microbiology, Entomology, Integrated Pest Management and Agricultural Science, to students undertaking courses in agriculture, natural resource management, and agricultural and environmental engineering at universities in South Australia and Queensland.

Speakers


Lisa Ironside HBOS Treasury Services, the parent of BankWest Lisa has worked in Financial Markets for over 15 years, her experience covers Currency Hedging, Interest Rate Risk Management and Commodity Hedging. Lisa began her career working in a merchant bank, where her exposure to global currency markets influenced her career path. She spent 6 years working in the Treasury of a large Multi-national corporation, managing their currency exposure in over 15 currencies. Lisa currently works for HBOS Treasury Services, the parent of BankWest, where she facilitates currency, interest rate and commodity risk management for a range of customers. For the last 3 years, Lisa has provided a daily report on global markets to ABC radio, this requires her to continually be aware of events which may affect market prices and expectations. Bill Johnson Principal Agricultural Economist - Queensland Department of Primary Industries and Fisheries Bill Johnson has a Bachelor of Agricultural Economics (University of Queensland), 11 years experience in the field of applied agricultural economics and extension and is recognised internationally for his work in the development of economic decision tools. Bill has worked extensively in the areas of sugarcane, horticulture, fisheries and aquaculture. He is sought internationally for his work on applied economic decision tools and associated training programs, conducting national and international consultancies (throughout Asia and the Pacific) for groups such as ACIAR, Secretariat of the Pacific Community, RIRDC, and FRDC. Gerard Clancy Managing Director - Flora Marketing Australia Gerard is currently the Managing Director of Flora Marketing Australia exporting flowers to Canada, Europe, Japan and the Middle East. He has a Bachelor of Applied Science in Horticultural Technology (1982) and began working in the flower export industry in 1984. Gerard has worked in agronomic consultancy and project management throughout Southern Africa, Asia and Central America. He was also the National Sales and Marketing Manager for T-Tape Australia and Japan. Later got out of aeroplanes to manage 1600 acres of vegetable production in NSW, prior to starting Flora Marketing Australia. Dr Ray Collins Associate Professor, PhD Group Leader, Agribusiness - School of Natural and Rural Systems Management - The University of Queensland The broad focus of Ray’s research is in improving commercial competitiveness in agribusinesses through the formation of alliances and the development of whole-of-chain strategies. Specifically, his interests lie in new industries, fresh food products and Asian markets and over the last 10 years his research has attracted more than a million dollars of funding from government and industry. His present research projects include how companies in supply chains can learn to work co-operatively, how supply chain management can guide


government policy, the connection between innovation and supply chain management, and how supply chain management strategies can incorporate social and environmental issues. In the last 18 months he has presented supply chain management workshops to other researchers, new enterprise developers and entrepreneurs across Australia and in Canada, the Netherlands, Italy and the UK. Ray is a Ministerial appointment to the advisory boards of the Australian government’s New Industries Development Program and its Industry Partnerships Program. He has published more than 60 research articles, chapters and reports, and he has been the recipient of two awards for Best Published Paper, two International Collaborative Research Awards and a University Excellence in Teaching Award. Dr Jenny Ekman NSW Department of Primary Industries Jenny Eckman’s PhD in post harvest technology, conducted mainly at CSIRO North Ryde, examined the relationship between respiration rate and storage life for a range of fresh products. She followed this with a postdoc at the University of California, Davis, but returned to Australia after gaining a research position with NSW DPI in 2002. As well as the flower industry project we are talking about today, Jenny is currently involved in projects on new shipping technology for vegetables, Asian vegetable marketing and quarantine treatments for fresh fruit and vegetables. Dr Lilly Lim-Camacho University of Queensland, School of Natural and Rural Systems Management and Centre for Native Floriculture Lilly Lim-Camacho is Post-doctoral Research Fellow for the Value Chain Program of the Centre for Native Floriculture. Her background is in the evaluation of supply chain management in the Australian native flower, olive, Asian vegetable, emu and kangaroo industries. Her expertise is in conducting supply chain market research for new and existing products and markets for the cut flower industry. She has conducted extensive research into the domestic and Japanese market for Australian native flowers and along with preliminary research into North American markets. Other projects include scanning of lesser known European markets, consumer surveys on potential new nursery products and evaluation of supply chain strategies in the native flower industry. As part of the Value Chain team of the Centre, Lilly uses information gathered from market research to provide recommendations that firms in the industry can use to develop and improve value chains that are focused on the consumer. Dr Margaret Johnston University of Queensland, School of Natural and Rural Systems Management and Centre for Native Floriculture Dr Margaret Johnston is the Floriculture Program Leader. She is a Floriculture specialist with extensive experience with the University of Queensland Gatton and The Queensland Department of Primary Industries. Since 1898 her major research interest has been the problems associated with the domestication of Australian plants with export floriculture potential. These include phosphorus sensitivity and toxicity, propagation of difficult to root woody species and the role of auxin transport and metabolism in adventitious rooting, and seed dormancy mechanisms. During Stage 1 of the Centre for Native Floriculture she has led the development of two breeding programs, completed a major review of the south east Queensland bush harvested species and been involved in an extensive collection program. Since 2000, she has 26 refereed publications. She is the advisor to seven postgraduate students, and is the School of Agronomy and Horticulture Postgraduate Coordinator.


Seminar Presentations


What is a profitable Flower Farm? Gerry Parlevliet - Sub-Program Manager (Floriculture) Department of Agriculture and Food Western Australia OOnnllyy yyoouu kknnooww!! • There are many personal considerations • Many decisions are subjective and not based on analyses of records • Involves financial and lifestyle issues • But for me it focuses on labour efficiency and optimising monetary profit • Question: who is more profitable some one who:

– Makes $100,000 profit and works a 50 hour week – Makes $100,000 profit and works a 80 hour week

Features of a profitable farm • Management expertise • Access to reliable market • Quality of labour • Farm size • Level of mechanisation • Adoption of innovation AArree yyoouu pprrooffiittaabbllee?? • Do the records you keep enable analysis? • Are you in the black on your bank cashflow for the farm – but in the red for specific varieties or

crops? • Do you need to expand to spread cost of overheads such as consultant, sheds etc. • Can you improve the profit margin? SSoommee ccoonnssiiddeerraattiioonnss iimmppaaccttiinngg oonn pprrooffiittaabbiilliittyy • Not under your control :

– Weather – Exchange rates

• Under your control : – Replace older varieties – Change management ie mechanisation – Improve fertiliser/irrigation increase production – Improve quality – Improve labour efficiency – Increase area to spread risk and fixed costs

The practical approach GGrroossss MMaarrggiinnss aass aa mmeeaassuurree ooff pprrooffiittaabbiilliittyy • Gross margins compare profitability of enterprises • GMs do not provide complete picture - many overheads are not accounted for • Useful for comparing like enterprises i.e. Protea with waxflower on the same farm • GM not suitable for planning new development Development budgets

• New establishments and expansion – Helps establish total costs and the cashflow over life of enterprise – Helps determine peak debts required


• Replacement areas – Useful in helping plan and schedule replanting

• Won’t discuss these today Key Performance Indicators • These, often referred to as KPIs, are extensively used in business and enterprise management • They are developed from a benchmark where those important actions and outputs are identified.

Often across the industry to get a sense of comparison – Only use KEY issues that have a critical impact – PERFORMANCE used has to be measurable and under the control of the enterprise – An INDICATOR that allows future use

GROSS MARGINS AND BENCHMARKING

Banksia example gross margin Assumptions for gross margins • One hectare block • Yield 33 stem/pl * 1200 pl/ha = 40,000 stems • Profit has to cover investment, depreciation, rates, interest, tax • THIS IS AN EXAMPLE ONLY DISCUSS YOUR OWN SITUATION WITH ACCOUNTANT OR

CONSULTANT IInnfflluueenncciinngg tthhee pprrooffiitt mmaarrggiinn • Requires you to know what your actual situation is • You need to be objective in your analysis • You need the tools and expertise or “outside view” •• Has to do with the cost of production, labour, prices BBoottttoomm lliinnee -- Increase volume • Do by better management, fertiliser and irrigation and area planted • Result

– Increase efficiency of operations – Improved bargaining power – Increase total income (quantity x $) – Spread overheads and management costs

Cost

Income

$1,000$500$500Irrigation/fuel

$600$300$300Fertiliser

$7,000$5,000$1,000Harvest pack

$200$200Pruning

$700$200$500Replace Plant

$500$500Transport etc

$600$200$400Pest Control

$10,600Total cost$4,400GM

Supplies

$10,000$0.5020,000Grade 1 (60cm)

$4,400GM /ha

Totallabour

$16,000Total$6,000$0.3020,000Grade 2 (Short)

Cost

Income

$1,000$500$500Irrigation/fuel

$600$300$300Fertiliser

$7,000$5,000$1,000Harvest pack

$200$200Pruning

$700$200$500Replace Plant

$500$500Transport etc

$600$200$400Pest Control

$10,600Total cost$4,400GM

Supplies

$10,000$0.5020,000Grade 1 (60cm)

$4,400GM /ha

Totallabour

$16,000Total$6,000$0.3020,000Grade 2 (Short)


BBoottttoomm lliinnee -- Increase price • Better varieties (price up +25%) • Better quality (maintain price, market?) • Better presentation (market retention?) • Negotiation with buyers (price up +10%?) • New markets (increase sales demand?) BBoottttoomm lliinnee -- Reduce costs (suggested savings)

• Labour efficiency – Pruning (20% saving by harvest to prune height) – Harvesting (10-20% saving with mechanisation) – Grading, packing (10-20% saving with better layout) • Transport costs (very variable) • Improve pack out (very variable) – Reduced freight cost – Reduced carton costs

Some examples

• Influence of varieties Important assumptions in example budgets

• These examples make a number of assumptions. – Growers often suggest Purple Pride yields much more than the Hybrids – The example uses this assumption (our worst case scenario) – Department research results suggest many of its hybrids yield the same as Purple Pride but may be out y

uncinatums i.e. Alba – Using equivalent yield – the difference in Gross Margin would be even greater

Cost

Income

$13,000$3,000$10,000Irrigation/fuel

$4,000$1,000$3,000Fertiliser

$124,000$114,000$10,000Harvest pack

$2,000$2,000Pruning

$3,000$500$2,500Replace plant

$10,000$10,000Transport etc

$5,000$2,000$3,000Pest Control

$161,000Total cost

$105,000GM

Supplies

36,500 (400gm)

133,000 (400gm) $214,000$1.60800,000Grade 1 (60cm)

$21,000GM/ha

Totallabour

$266,000Total

$52,000$1.40475,000Grade 2 (50cm)

Cost

Income


$4,000$1,000$3,000Fertiliser

$124,000$114,000$10,000Harvest pack

$2,000$2,000Pruning



$5,000$2,000$3,000Pest Control

$161,000Total cost

$105,000GM

Supplies

36,500 (400gm)

133,000 (400gm) $214,000$1.60800,000Grade 1 (60cm)

$21,000GM/ha

Totallabour

$266,000Total

$52,000$1.40475,000Grade 2 (50cm)


AAssssuummppttiioonnss ffoorr ggrroossss mmaarrggiinnss • Five hectare block – Purple Pride/selection • Yield 150 stem/pl * 1700pl/ha = 255,000 stems • Total production 1,275,000 stems • Bunch: grade one 6 stem/bunch, grade two – 13 stem/bunch, bunches are 400gm for export • 1400 bunch per day for 7 people needed for 120 days at $100 per day each plus one allowance for

manager $30,000 = $114,000 • Profit has to cover overheads, investment, depreciation, rates, interest, tax etc THIS IS AN EXAMPLE ONLY DISCUSS YOUR OWN SITUATION WITH ACCOUNTANT OR CONSULTANT Pearlflower Gross Margin AAssssuummppttiioonnss ffoorr ggrroossss mmaarrggiinnss • Five hectare block – new hybrid/selection • Yield 80 stem/pl * 2500pl/ha = 200,000 stems • Total production 1,000,000 stems • Bunch: grade one 6 stem/bunch, grade two – 13 stem/bunch, bunches are 400gm for export • 1000 bunch per day for 5 people needed for 130 days at $100 per day each plus one allowance for

manager $30,000 = $95,000 • Profit has to cover overheads, investment, depreciation, rates, interest, tax etc THIS IS AN EXAMPLE ONLY DISCUSS YOUR OWN SITUATION WITH ACCOUNTANT OR CONSULTANT GGrroowweerr bbeenncchhmmaarrkkiinngg rreessuullttss $0.082

$21,000$0.096$24,500$0.126$32,200$2.17$0.21$31.30$53,200

Purple Pride

$20,700$4800-62,000Labour /ha

$0.20$(0.03)-0.26GM /stem$40,000$(3000)-75,000GM /ha$0.104$0.05-0.24Labour /stem

$0.142$0.05-0.31Cost /stem$28,400$6,600-66,000Cost /ha$3.30$0.90-5.70Income /$1 labour$0.34$0.14-0.40Income /stem$27.20$5.50-29.00Income /plant$68,000$9,000-99,000Income /ha

PearlflowerBenchmarkParameter

$0.082$21,000$0.096$24,500$0.126$32,200$2.17$0.21$31.30$53,200

Purple Pride

$20,700$4800-62,000Labour /ha



PearlflowerBenchmarkParameter

Cost

Income


$4,000$1,000$3,000Fertiliser

$103,000$93,000$10,000Harvest pack

$2,000$2,000Pruning



$5,000$2,000$3,000Pest Control

$140,000Total cost

$200,000GM

Supplies

30,000 (400gm)

100,000 (400gm) $280,000$2.80600,000Grade 1 (60cm)

$40,000GM/ha

Totallabour$340,000Total

$60,000$2.00400,000Grade 2 (50cm)

Cost

Income


$4,000$1,000$3,000Fertiliser

$103,000$93,000$10,000Harvest pack

$2,000$2,000Pruning



$5,000$2,000$3,000Pest Control

$140,000Total cost

$200,000GM

Supplies

30,000 (400gm)

100,000 (400gm) $280,000$2.80600,000Grade 1 (60cm)

$40,000GM/ha

Totallabour$340,000Total

$60,000$2.00400,000Grade 2 (50cm)


Example

•• Impact of yield Gross Margin Sensitivity to yield SSoommee mmeessssaaggeess • Higher plant density possible with new hybrids (ie 2500 plants per hectare) • Increase yield with good fertiliser and water management • Produce more of the more marketable varieties and less of those that don’t sell • Record your yields and costs on a block or variety basis and analyse Cost and profit in replanting • There are improved profits in replacing old low priced varieties with new hybrids • There is a reduction in cash flow if a large portion of the farm is replanted • Replace the oldest least productive areas first. Especially if they have reached the end of their useful

life • Should be replacing about 10% of the farm each year Gross margin per Hectare when replanting

No. Stems per plant (100)L 1700 plants per haH 2500 plants per ha

0

20000

40000

60000

80000

100000

120000

140000

160000

$/ha

Hybrid50 H

Hybrid150 H

Hybrid250 H

Alba300 L

Accelerated replanting can result in serious loss if un expected conditions occur ie drought flood, storm frost Never plant large areas of new material with out first testing the product on a small scale to test production and market.Risks

$218,500$25,750$24,800$23,850$22,900$21,950$21,000$20,050$19,100$19,150$19,950Replant 5% to Hybrid


$268,000$40,000$40,000$40,000$37,000$29,000$21,000$17,200$13,400$13,600$16,800Replant 20% to Hybrids

$210,000$21,000$21,000$21,000$21,000$21,000$21,000$21,000$21,000$21,000$21,000Purple Pride 100%

$400,000$40,000$40,000$40,000$40,000$40,000$40,000$40,000$40,000$40,000$40,000Pearlflower100%

Total10987654321

Accelerated replanting can result in serious loss if un expected conditions occur ie drought flood, storm frost Never plant large areas of new material with out first testing the product on a small scale to test production and market.Risks



$268,000$40,000$40,000$40,000$37,000$29,000$21,000$17,200$13,400$13,600$16,800Replant 20% to Hybrids

$210,000$21,000$21,000$21,000$21,000$21,000$21,000$21,000$21,000$21,000$21,000Purple Pride 100%

$400,000$40,000$40,000$40,000$40,000$40,000$40,000$40,000$40,000$40,000$40,000Pearlflower100%

Total10987654321


Break-even in replanting (assumes steady prices and no loss of productivity) Break-even in replanting (assumes steady prices and loss of productivity)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1 2 3 4 5 6 7 8 9 10

Year

Pearlflower 100%

Purple Pride 100%

Replant 20% toHybridsReplant 10% toHybridReplant 5% to Hybrid

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1 2 3 4 5 6 7 8 9 10

Year

Pearlflower 100%

Purple Pride 100%

Replant 20% toHybridsReplant 10% toHybridReplant 5% to Hybrid


Replanting • There is a smaller impact on cashflow with a slow rate of replanting • Slow rate of replanting means a large profit forgone • Growers should have a routine 10% replacement to maintain farm in top production (irrespective of

crop grown) • If old varieties still very productive and provide positive cash flow then consider extending the area

by the replant area and remove old plants when new plants reach maturity. Summary

• New hybrids receive better prices • New varieties should show better profit

– New hybrids respond to good fertiliser and irrigation management – Work with others in the Industry to ensure prices are optimised

Example

• Market Influencing the market • Change demand by market development, promotion, make product more attractive and desirable,

improve quality etc (moves along demand line) • Change supply not likely to be as successful i.e. if reduce supply marginal increase in price than a

change to alternative products • Attract a new market with greater spending power would change demand curve Competition impact on prices • If growers dump cheap poor quality product prices will be depressed • Responses by Export industry to external competition is • always chase new varieties or colours to give newness premium • New varieties that are so different and that last as a premium earner are few • Often expensive to develop and get onto the market, Selling to Exporters • Through exporter you get a nett price - the exporter takes the risks • Export direct you have all the costs of documentation, risks of currency fluctuations, and market

failure. • If you have a high quality product with strong demand - competition between exporters and nett price

may be higher • Scale of operation gives some bargaining capacity • The industry benefits from strong local, viable exporters Direct to Retail

• Might work for some larger florist or retailer outlets – But the costs may be more than the benefit – Running a vehicle around town costs time and fuel – That is time away from the enterprise and labour is still our major cost

Develop Local Market

• This is an under exploited market, we have had occasions where florists are begging for product

– Wholesaler


• Combining with wholesalers to promote, push sell banksia to florists and retailers? – Wholesaler bouquet maker • We have a number in Australia supplying supermarkets chains, delis, service stations working

with them to increase use of banksia can increase demand? A simplistic view

• 20 million consumers ie 7 million families 50% convinced to buy: – one stem a week in bouquet for 30 weeks – is 100 million stems at $0.40 a stem

• $40 million market for banksia on our doorstep – this is significantly larger than current exports. • Can’t be done! They won’t buy! Too hard Examples

• Different crops WWaaxx GGrroowweerr bbeenncchhmmaarrkkiinngg rreessuullttss PPrrootteeaa bbeenncchhmmaarrkkiinngg rreessuullttss

$20,700$4800-62,000Labour /ha



Example GMBenchmarkParameter

$20,700$4800-62,000Labour /ha



Example GMBenchmarkParameter

$20,700$6,500-37,000Labour /ha

$0.20$(0.08)-0.14GM /stem$40,000$(16,000)-23,000GM /ha$0.104$0.04-0.30Labour /stem

$0.142$0.07-0.36Cost /stem$28,400$7,930-68,000Cost /ha$3.30$1.41-4.00Income /$1 labour$0.34$0.15-.50Income /stem$27.20$6.54-30.99Income /plant$68,000$11,000-52,000Income /ha

Example wax GMBenchmarkParameter

$20,700$6,500-37,000Labour /ha


$0.142$0.07-0.36Cost /stem$28,400$7,930-68,000Cost /ha$3.30$1.41-4.00Income /$1 labour$0.34$0.15-.50Income /stem$27.20$6.54-30.99Income /plant$68,000$11,000-52,000Income /ha



Interpreting the results Interpretations could be:

– Labour usages is high relative to volume of product – Labour inadequate to obtain quality bunch expected – High fertiliser use relative to others, relatively low water use in summer months compared to high profit growe– Bunch quality lower due to poor post harvest input – Return on investment of capital or time low – Varieties being grown not obtaining high prices. – Yield on old plants not high and reducing profitability – Machinery used in more profitable enterprises

OOtthheerr ttyyppeess ooff rreeccoorrddss

• Yield by quality and price for each block/variety – Number plants/hectare – Costs for block/variety • Labour for stages of work – Maintenance, – Pruning, (mechanical verses hand) – Harvest – Grading and packing • Time to walk from table to coolroom • Time to trim bunch in shed • Productivity of staff (incentive??)

Concentrate on areas of most significance Results Next steps could be:

– Labour efficiency expert employed to analyse enterprise – Growers share own expertise with others – Growers share machinery, packing facilities, transport and labour to improve efficiency – Training for workers to improve skills. – Technical consultants approached to give advice. – Grower review and adjust management – Discuss marketing, quality, variety with exporters – Increase interest in mechanisation

SSoommee qquueessttiioonnss • What are the financial and production issue holding back your profit? • What is your optimum profit level? • How will your enterprise develop over next few years? • How can you improve your enterprise and the records to maximise the opportunity to sell the

business to a new player • Are you in control of the enterprise or is the business in control?

GOALS AND KEY PERFORMANCE INDICATORS (KPIS) FOR FLOWER GROWER Improving profit with better management • We referred to Benchmarking previously • Industry Benchmarks can be used as TARGETS • Benchmarking does not set GOALS • KPIs are often derived while benchmarking and indicate what the enterprise is achieving in its key

performance areas


Some tools Goals Targets Key Performance Indicators

Goal: End in itself Goals • that towards which effort is directed; aim or end (Macquarie Dictionary) • In many management documents goals are nice and woolly and undefined i.e.

– My goal in life is to travel more (Lifestyle) – Send my kids to University (Personal) – Retire wealthy (Financial) – Grow flowers and make some money (Business)

Goals – Better defined

• Previous examples are worthy but do not set specific levels to aim at, maybe: – My goal in life is to travel overseas once each year – Retire wealthy with $1,000,000 in my portfolio of investments – Grow flowers and make $100,000 net profit each year

Still broad goals • Although long term goal is more defined there is still no way to determine if making short-term

progress to goal • Targets in this sense are similar to goals but often are linked to production targets such as aim to

produce 1,000,000 stems of banksia Farming without goals? • We all know we need to set goals for ourselves and our business. • The successful stay focused and set achievable sub-goals • The really successful measure progress Without goals we grow flowers for the sake of growing flowers and picking up a wage in the process – if

that is your goal, great – if not, set some goals to stretch your management Key Performance Indicators • These KPIs are extensively used • Developed from a benchmark

– Only use KEY issues that have a critical impact – PERFORMANCE used has to be measurable and under the control of the enterprise – An INDICATOR that allows future use

KPIs

• In the Broadcast industry several national broadcasters have used these as KPIs – Reach - % of population – Cost per production hour – Cost per viewer/listener – Output per FTE – % of national content – etc


Your KPIs • KPIs that growers may consider:

– stems per plant – Stems processed per hour of labour – Labour cost per stem – Gross margin per stem sold – % Stems in Grade A – Others?

(are they all important, measurable and provide information for future improvement) BBeenncchhmmaarrkkiinngg rreessuullttss Short-term targets to achieve long term goals • WA grower picks 10 stems/pl of B. coccinea. • Goal or target to obtain yields at district average of 20 st/pl within 4 years • Sub-goal to achieve a 25% improvement per year • Checks, finds yield held back by irrigation and pruning practices • Changes his practices and measures KPIs • Goes to conference where a SA grower reports his KPI is 30 stems per plant • Grower reviews his targets to 30 stems per plant • Then looks beyond at 40 stems as a goal - this requires R and D

$20,700$6,500-37,000Labour /ha




$20,700$6,500-37,000Labour /ha





Achieving Goals

Achieving Goals

Achieving Goals

Achieving Goals

Achieving Goals

Change Practices

Review

BenchmarkNew10 st/pl

New Goal 15 st/pl

Change Practices

Review


New Goal 25 st/pl

Change Practices

Review


New Goal 20 st/pl


Another KPI • Labour

– Cost per stem – Currently $0.15 per stem – Target district average $0.10 per stem – Review and targets $0.05 per stem. – Review and determine other KPIs more critical!

Records! Records! Records! • Many of these suggestions require growers to record relevant information in such a way as to be able

to develop the KPIs • Using computers can make that easier • Do it routinely else it becomes a massive chore Summary • Number of financial tools available • Look outside the property for new ideas • Setting Goals provides direction • Small steps make it achievable • Record your important information/data and develop suitable KPIs • Talk with others and help • Improve both enterprises


Farm Management Systems Diana Dawson – Qld Farmers Federation

Farm Management Systems

Native Flower SeminarToowoomba, 26th May, 2006

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Queensland Farmers’ FederationMember OrganisationsGrowcomCANEGROWERSCotton AustraliaAustralian Prawn Farmers’ AssociationQueensland Dairyfarmers’ OrganisationNursery and Garden Industry, QueenslandQueensland Chicken Growers’ AssociationAssociate MembersQueensland Chicken Meat Industry CouncilFlower Association of Queensland Inc

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Challenge for FarmersHow to best respond to increasing regulation, current national reforms, and the emergence of regional plans, while maintaining a viable,productive and internationally competitive sector.

– Managing change– Complying with regulation– Coping with government intervention– Improving production systems in line with market requirements– Achieving wider community understanding – Contributing to community’s social, economic and environment

outcomes

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Current Response•“farm management system” as a communication term• Farm Management System Framework as a means of coordinating QFF membership effort• MoU with the Queensland Government to progress FMS and inclusion in Smart State Strategy• MoU with the Queensland Regional NRM Groups• Call for resources under Blueprint for the Bush• Input to Australian Government coordinated Property Management Systems Working Group

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Desired Outcomes• Integrated and cohesive approach to business risk management• Industry and producers ‘take control’• Demonstrate performance of sustainable agriculture• Formal recognition by government, market and community as appropriate

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Enterprise FMSRisk assessmentContinuous improvementIndustry recommended best practicesPerformance verification

-monitoring and reporting as appropriate to enterprise

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FMS ProgramRisk assessment and continuous improvementIndustry recommended best practicesOn-farm performance verification

-as appropriate, includes self-assessment tools, assisted assessment via industry staff, independent assessment mechanisms

Program delivery and reviewLeadership and support

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Soil & Conservation Issues in Broad Acre Floriculture Pam Pittaway – Chrysalis Landscape Consultants www.grubbclc.com.au email [email protected]

Plants depend on good soil structure for root elongation, anchorage, aeration and drainage, the flow of nutrients and water into the roots, and as a habitat for beneficial soil animals and microbes that are essential components of soil health. In broadacre floriculture, the successful establishment of native plants and the efficiency of irrigation systems depends on a well structured soil. Although the basic mineral elements that determine soil structure cannot be readily changed, the degree of binding and the pores essential for drainage and aeration can be changed. In this paper, what causes soil structure and how it can be modified, will be discussed. HOW ROOTS DEPEND ON SOIL STRUCTURE Water held by the soil is the trigger for seed germination and root elongation. The evaporative loss of water from plant leaves generates the suction that draws the water stored in sponge-like soil pores to the roots. Too much soil water excludes air from soil pores (water-logging), preventing plants from actively taking up nutrients such as calcium and boron. The reference point for optimal seed germination and plant growth, when the soil has drained sufficiently to be wet but well aired, is referred to as field capacity. Put simply, field capacity is when a sponge soaked in water, is held on your out-stretched hand above the sink until all excess water (mauve box in Figure 1) has drained. Squeezing the sponge (or applying root suction pressure) causes water held in the pores to flow. However, water bound too tightly in small pores will not flow, causing plants to wilt and die (the permanent wilting point). Water may still be held in very small pores, but the force required to release it is greater than the plant (or your fist) can provide. The amount of water held between these two extremes in soil, is referred to as plant-available water. PARENT ROCK TYPE, WEATHERING, AND PORE SIZE DISTRIBUTION All soils start as ‘dirt’. Dirt is the parent rock type, decaying over time to produce the smaller grains of clay, sand and silt that form the physical matrix in which plants grow. The largest particles are classified as sand (2.0 – 0.5 mm diameter), silt is next (0.05 – 0.002 mm), with the clay particles the finest (less than 0.002 mm). The finer particles move readily in storm water, collecting in old stream-beds and lakes. Depending on the parent rock type, some fine clay particles are capable of chemically retaining plant nutrients such as potassium, calcium and phosphorus in forms that can be easily accessed by plant roots. In contrast, sand particles bind minerals so tightly, that roots cannot exploit them. Instead, plants depend on the fine filaments of beneficial mycorrhizal fungi to do the extracting for them. The relative proportions of sand, clay and silt in a soil matrix is critical for determining not only the fertility of the soil, but also the mechanical resistance encountered by a root system. Under the action of weathering, very fine clay particles can settle in thick layers, leaving very few larger pores for drainage

Matric suction potential (cm H2O)200 400 600 800

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Matric suction potential (cm H2O)200 400 600 800

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Figure 1: Effect of particle size on water holding capacity. Fine particles (A = 0.0016 mm) drain slowly, coarse particles D = 0.25 mm) drain too quickly. Field capacity is at matric suction of 100 (mauve box is saturation) and permanent wilting point is 15000 cm H2O. The coarse and fine particle mix (C) best resembles a good agricultural soil (B). Data from Griffin & Quail (1968) Aus J Biol Sci 21 pp 570-82.


and easy root penetration (refer to Figure 1). Conversely, the large pores created between coarse sand particles may drain too quickly, with no small pores available to store water for later plant use. Ideally, plants need a mix of sand, silt and clay particles to provide the optimal number and size distribution of soil pores to maximise root penetration, aeration and drainage, and the amount of plant-available water. Some ratios of sand, silt and clay do indeed, ‘set like concrete’. This can lead to surface crusting, inhibiting seedling emergence and water infiltration. Some clay types dissolve in water, with the fine particles moving during drainage to block any soil pores. These soils are referred to as sodic, because it is high levels of sodium in the clay that ‘dissolves’ the fine particles in water – as readily as common salt (sodium chloride) dissolves. The result is a massive block structure, prone to water-logging and drought! TURNING DIRT INTO WELL STRUCTURED SOIL Dirt needs biological activity to form soil. Biological activity is fuelled by organic carbon, which can only be produced by photosynthetic plants and microbes. These photosynthesisers need the water and nutrients stored at depth in soil, and the oxygen and sunlight at the surface. The products of biological growth concentrate at the surface, as litter or mulch. Surface cover is extremely important in modifying the surface temperature of the soil, and in protecting the surface from the physical impact of raindrops. Indeed, graziers participating in the Sustainable Grazing Systems study know that reducing the surface cover of a soil to 20% costs you 160 mm of rain (total annual rainfall 650 mm), and 8.5 mm of topsoil each year! Ground cover exceeding 70% is considered sustainable (refer to Figure 2).

Figure 2: Role of groundcover (living plants and litter) in soil and water conservation in sustainable

grazing systems on the Northern slopes of NSW, with an annual rainfall of 650 mm. Data is from Pasture Health Kit, North West Catchment Management Committee, Tamworth NSW.

The loss of rain is due to the lack of a physical barrier to slow the flow of surface water and lack of larger pores for water infiltration. However, mulch is much more than surface protection. Mulch is a habitat and food source for the soil animals that burrow down into the soil, creating pores. Without soil animals and mulch, sodic soils would remain impermeable, and surface crusting would be a lot more common. Soil animals are the teeth of the soil ecosystem, macerating mulch into finer organic particles that drain into the soil, providing food for soil microbes. Microbes are essential components of a well-structured soil. The fine filaments of fungi bind soil particles into larger aggregates, creating larger soil pores, and bacterial glues bind fine clay particles, improving their stability when the soil is wet. BENCHMARKING AND MONITORING SOIL STRUCTURE Broadacre farmers cannot change the dirt they farm, but their management practices can have a big impact on the structural properties of their soil! The surface protection, accumulation of plant litter and the activity of soil animals and microbes is greatest under a permanent pasture. Cropping such as

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floriculture can reduce surface cover, exposing the soil to erosion (refer to Figure 2). Excessive tillage destroys soil structure, and can accelerate the loss of organic carbon from the soil. Organic carbon not only sustains the activity and population base of soil animals and microbes, but humus, the by product of microbial activity, also binds fine particles together. The combined impact of surface litter, soil animal and microbial activity, and humus on the amount of plant-available water varies with the texture of the soil. However, the amount of organic carbon present in the 0- 10 cm of a pasture (> 70% groundcover), can be used as a local benchmark for soil health. The litter layer should be scraped away, and at least 15 to 20 small auger bites of soil to a depth of about 10 cm should be mixed well, before selecting a sample for laboratory testing. Soil chemists prefer to test for furnace induction (Leco) organic carbon. However, under these high temperature conditions biologically inert organic carbon such as coal and charcoal will be included. The wet oxidation (Walkley/Black) method is preferred by soil biologists, as it more closely resembles the extraction methods used by soil organisms. For Queensland soils, around 2% organic carbon (dry weight basis, Walkley/Black) is considered good for a pasture soil. In the paddock, soil structure can be measured by timing the rate at which water drains into a soil (Cass 1999 in Peverill et al Soil Analysis: An Interpretation Manual CSIRO). Bevil the edge of a piece of storm water pipe (cylinder about 20 cm in length) or cut out the ends of a large used food can to serve as a water reservoir. Gently push the cylinder into the soil surface, removing any large litter fragments preventing good soil contact, but otherwise minimally disturbing the litter layer. Line the inside of the cylinder with a large piece of plastic cling film, leaving enough outside to easily grasp with your fingers. Fill the lined container with water coloured with yellow powder paint (water-soluble child-care paint - acrylics are too viscous: if all else fails, try food colouring). Use a measuring cylinder to fill the water reservoir, and record the volume. Ease out the plastic film, and time the rate at which the water drains into the soil.

• A well structured soil should drain at a rate of greater than 70 mm per hour • A rate of 30 – 70 mm per hour indicates a good structure • A rate of 10 –30 mm per hour is considered poor, and • A rate of 0 – 10 mm per hour is considered very poor (Cass 1999).

Under dry conditions, plant waxes in the litter may repel water. Try repeating the infiltration test after moistening the soil with water containing a drop or two of household detergent (a wetting agent). Use a spade to cut the soil across the diameter of the cylinder base imprint, to see the paint-stained soil pores. MAINTAINING AND IMPROVING SOIL STRUCTURE Mulching the soil surface in broadacre floriculture may seem excessive, but if we take a leaf out of the Sustainable Graziers’ experience, can you do without it? Native plants evolved under conditions of mixed plantings, and it may be possible to select ‘living mulch’ species to provide the groundcover and organic carbon input needed. Traditionally, legumes are preferred as living mulches, with species lacking the vigor of the crop plant selected. Alternatively, living mulches can be sown at a time in the growing cycle, when their ability to compete is limited. For example, the pasture-cropping system encourages the growth of summer-active native grasses, into which winter-active fodder crops are sown in autumn. No herbicide or tillage is necessary, as the crop growth phases don’t coincide, so there is minimal competition. If mulching is not for you, but soil test results indicate that your soil organic carbon levels are well below local benchmarks, consider applying compost. To avoid the ‘negative fertiliser’ effect (nutrient draw-down), the compost must be biologically stable, and the rates of application must be matched to the fertiliser value of the compost in combination with conventional fertiliser inputs. The more stable organic carbon remaining in the compost will increase the humus content and the microbial carrying capacity of your soil, building the longer term organic carbon reserves. Good soil structure is a biological product that depends on inputs of organic carbon!


Managing Financial Risk for Agricultural Exporters Bill Johnson – Department of Primary Industries and Fisheries EXPORT CALCULATOR This is a DPI&F economic software package. The export calculator software will enable potential and existing exporters to calculate the costs and benefits of undertaking an exporting activity and assess the risk of that.

• Stage 1 identifies the costs of exporting, • Stage 2 examines the likely profitability of exporting and

• Stage 3 explores the riskiness of exporting.

This business decision tool reduces the complexity and repetition of calculations and deals with the uncertainty by exploring it with simulation methodology. The tool needs to be reworked a number of times as perceptions, expectations and understanding of the export proposal evolve. Cost $220 (incl GST). Phone 1800 816 541 (Australia) or visit www.dpi.qld.gov.au/shop.

Notes:


The Seasons Ahead – Actions for Profit Gerard Clancy – Flora Marketing Australia Pty Ltd Phone 07 5494 2440. Mob. 0428 443523 E-mail [email protected] Actions for profit can boil down to some basic but not so simple, improvements:

INCREASE SALE PRICE

DECREASE COSTS

INCREASE MARKET DEMAND

There is no rocket science here but maybe one or two, of the points made here can improve your situation if implemented. INCREASE SALE PRICE

• KP’s - 100 and 110cm to a lesser degree the 90cm • Waxflower – Hybrid varieties, uniformity of stems, general stem weights. • More attractive sleeves for Top shelf products • More attractive box for Top shelf products (Japan only) • More attractive wrapping or box inlay, again for Japanese market. • Create a story behind your product (A small pamphlet colour photo and story attached to

product) Written in local language. • Middle East. Becoming more competitive due to proximity of African producers. • Chinese Hotel market has good potential along with a real credit risk.

Target the existing High price markets, in a specific manner. Improve pre-selling reputation.

• Reliable quality • Reliable volume • Regular uninterrupted supply • Correct labelling of boxes.

DECREASE COSTS

• Is there room for lower commissions, where applicable? • Airfreight costs are going in the wrong direction! • Continue with the direction of Sea Freight as a real alternative for selective crops • Create pressure on various “other” costs. • Farm productivity ***

Design and formulate farm operations with efficiency and effectiveness in mind.

- Farm Layout (Cost effective mowing, spraying, irrigation, harvesting etc.) - Shed Layout (Cost effective movement of product and workers) - Operating systems (Movement studies, time management, eliminate double handling, bottle

necks in the system, etc.) - Mechanise as much as possible. (Spraying, Weeding, Harvesting, Slashing, Grading,

Bunching, Packaging, Bulk Handling, Waste and Hygiene etc.) - Work with economies of scale. This may mean combining operations or resources with other

like-minded growers. - Maximise marketable stems per M2.


INCREASE MARKET DEMAND CURRENT INDUSTRY GROWTH

• Japan – Where is the growth occurring? • Europe – Where is the growth occurring? • USA - Where is the growth occurring?

MARKET REQUIREMENTS Florists, wholesalers and foreign importers want minimum supply hassles.

- Reliable quality (No claims or refunds) - Reliable volume (Not having to look for replacement or supplementary product) - Regular uninterrupted supply (Being confident of good availability)

Remember: every stem in every bunch is assessed by a buyer, prior its placement into a bouquet or floral arrangement. Every stem must count !!! HOW CAN YOU BEST CONTRIBUTE TO YOUR MARKETING OUTCOME. SUPPLY WHAT THE MARKET WANTS

• Good Exporters are looking for growers who are capable of delivering or significantly contributing to the exporters ability, to deliver the above mentioned, “Market Requirements”.

• A grower who cannot give consistent quality and volume in a timely manner, is in no position to take advantage of a beneficial marketing programme. These criteria are critical in order to remain competitive, and obtain prices at the high end of the market.

To best take advantage of your ability to deliver these requirements, you may require a Brand Identity either individually or collectively with other suppliers. As you create reliability and product / performance differentiation you will capitalize from product recognition in the Market place, using a well managed Marketing and Supply Chain.


The Sustainability Movement and its Influence on Supply Chains Dr Ray Collins – University of Queensland

The sustainability movement and its influence on supply chains

Associate Professor Ray Collins

School of Natural and Rural Systems Management

The University of Queensland

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Assumptions behind this presentation

•Emphasises what can be achieved rather than what has been achieved by the sustainability movement in influencing supply chains

•Adopts a commercial perspective while acknowledging social, environmental and political perspectives

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Supply chain management and sustainability share common goals

The role of supply chain management is to create, share and deliver value to stakeholders

The role of sustainability is to create, share and deliver value to stakeholders

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Supply chain management begins by understanding the supply chain

Input

SuppliersProducer Processor Wholesaler Retailer

Consumers

THE PLAYERS

INFRASTRUCTURE AND SERVICES eg finance, transport, storage

THE PROVIDERS

THE FLOWS

Product flows

Information flows

Financial flows

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How the supply chain creates and delivers value

Input

Suppliers

Primary producer Importer Wholesaler

Consumers

Retailer

24

For one tray of 20 pieces of fruit, retailed at $2 each, consumers pay a total of $40. This is the total value created, thus available to be distributed within the chain.

Freight company

Exporter

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THE PLAYERS

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In many primary producer supply chains

•Relationships are adversarial rather than based on trust

•Information is not exchanged freely (information = power)

•Horizons are short term and opportunistic

•Producers cannot differentiate themselves from one another

•Price is the basis of transactions

•Product is pushed towards the consumer

Input

SupplierProducer Processor Wholesaler Retailer

Consumers

? ? ? ?

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Input


Consumers

Supply chain management is based on working collaboratively

•Relationships are collaborative and based on trust

•Information is exchanged freely

•Horizons are medium to long term and strategic

•Producers can easily differentiate themselves from one another

•Value is the basis of transactions

•The chain’s aim is to have product pulled by the consumer

•THERE IS FAR MORE POTENTIAL FOR INNOVATION

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Input


Consumers

Supply chain management vastly increases the potential for innovation

•Innovation occurs when chain members work collaboratively

•Collaboration involves shared learning and trust

•Innovation based on shared learning and trust is hard to copy

•Thus innovation through collaboration confers competitive advantage

•Sustainability systems and practices can be seen as innovations

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Supply chains and sustainability

•Sustainability’s commercial value is an important driver of its use in practice

•Capturing this commercial value usually requires learning, innovation and change

•This value must be delivered to someone to whom it represents value before it makes a commercial difference

•By definition, the supply chain delivers this value, so which type of supply chain is best suited – the opportunistic chain or the collaborative chain?

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Supply chains and sustainability•Which type of supply chain is best suited to deliver this value?

•We know from experience that in supply chain management, opportunism is the enemy of sustainability: collaborative chains hold the solution

Opportunistic?

Collaborative?

? ? ? ?

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Supply chains and sustainabilityCollaborative chains hold the solution

If you examine successful supply chains delivering on sustainability objectives you will see the hallmarks of a collaborative chain at work

•Shared learning

•Trust and commitment

•Information flowing freely

•A focus on value rather than price

•Strategies that are shared

•A focus on what the consumer wants

Innovation in supply chain management

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Supply chains and sustainability in practice: three examples

Galeru: small scale, reafforestation objectives, very high value niche market products

OBE beef: medium scale, sustainable extensive grazing systems, high value specialised market products

BMP cotton: large scale, sustainable farm management objectives, commodity based markets but differentiation is possible

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Sustainability translates differently in different supply chains

Niche supply chainsGalerusmall, very high value

Mass marketsBMP cotton large scale, commodity based

Specialised supply chainsOBE Beef medium scale, high value

A continuum of types of supply chains

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Sustainability translates differently in different supply chains

MEDIUMMEDIUMHIGHHIGHVERY HIGHVERY HIGHSuitability of the Suitability of the SCM modelSCM model

MEDIUMMEDIUMHIGHHIGHHIGHHIGHAbility to ensure Ability to ensure free flow of free flow of informationinformation

HIGHHIGHHIGHHIGHMEDIUMMEDIUMImportance of Importance of certificationcertification

LOWLOWMEDIUMMEDIUMHIGHHIGHImportance of Importance of oneone--onon--one one relationshipsrelationships

Mass market Mass market BMP cottonBMP cotton

Specialised Specialised market market

OBE BeefOBE Beef

Niche market Niche market GaleruGaleru

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Supply chains and sustainability Recapping two main messages

•The value in sustainability must be delivered to where it can be commercially effective

•Effective supply chain management is a proven delivery vehicle but it takes

•Trusting relationships

•Open communication and freely flowing information

•A focus on meeting the needs of the consumer

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Flowers by Sea Dr Jenny Ekman – NSW Department of Primary Industries Shipping native flowers by sea instead of air could substantially reduce freight costs and add directly to grower returns. More than 50 per cent of Australian production of native flowers and foliage is exported, mostly to the Japanese market - but presently by air. However, rising costs and increased competition threaten the industry’s viability. Reductions in travel time to nine days have helped make sea freight a real option for the industry. Unlike air freight, temperature can be accurately controlled during sea shipping. NSW DPI, in co-operation with Maersk Sealand, recently conducted a trial shipment of Australian grown flowers and foliage to Japan. Quality was evaluated when the products arrived in Tokyo. As with the shipment of vegetables by sea to Dubai, reported in the April edition of Agriculture Today, the product arrived fresh. However, for flowers there are also some problems to overcome, including clear labelling, paperwork and shipping documentation. According to DPI’s Gosford based project leader, Jenny Ekman, the project highlighted a number of supply chain issues within the industry. 'There is a clear need for reliable product quality standards, standardised packaging and labelling, clear communication between supply chain members and accurate market feedback to growers,' Dr Ekman said. Other trial results were positive. Products such as NSW Christmas bush and Tasmanian rice flower suffered little quality loss during shipping and received good prices. All of the foliages trialled looked as fresh when they came out of the container as when they were packed. Kangaroo paws benefited from being shipped upright in containers of water. Flowers are normally packed dry in cartons for export. However, according to Dr Ekman, kangaroo paws could well arrive in the Japanese market in better condition after nine days cool storage in water, than after two days dry storage under warmer temperatures, as occurs during air freight. Sea freight was approximately 61pc of the cost of air freight. Returns at auction were reduced by approximately 10pc compared to air freighted products, suggesting that this shipping method could improve returns to growers.

Quarantine inspection at Yokohama of Australian native Christmas bush, after a nine day sea voyage. High quality is not guaranteeing premium returns to growers and some documentation problems have to be addressed.


New Crop Development Gerry Parlevliet - Sub-Program Manager (Floriculture) Department of Agriculture and Food Western Australia Western Australian Story • WA Department of Agriculture and Food have had a program operating for about 20 years to help

develop an industry based on WA native plants • Often in partnership with universities -UWA, Curtin and Murdoch, Kings Park, other State

Departments and research funding bodies (RIRDC) and (HAL), growers and industry • There is a large team of technical and professionals supporting the breeding work. What is New Crop Development It means to us: • Developing new lines of existing species • Developing new uses for existing plants • Developing new ways of delivering plants • Selecting and developing native plants not used currently • Developing new and unique hybrids by normal breeding • Developing new and unique hybrids by Biotechnology Developing new lines • Been a priority for the last 10 years • These are focused programs • They are long term and expensive For example Focused Breeding Programs • Our budget is + $250,000 per year for breeding work • Takes + 7 yrs from crossing parents to new variety released for growers • Get + 2 releases a year about $150,000 per variety • Limited royalty payments from Australia and overseas to recoup the cost

Form, flower, marketability, disease

Year one evaluationYear 3

Yield and post harvestFirst year assessmentYear 4Yield and post harvest2nd Year assessmentYear 5

Grower accessYear 7

Supply to PropagatorsPBR process

Bulking up cutting material

Year 6

Planting outPTCYear 2

Embryo rescueCross selected parentsYear 1

Form, flower, marketability, disease

Year one evaluationYear 3

Yield and post harvestFirst year assessmentYear 4Yield and post harvest2nd Year assessmentYear 5

Grower accessYear 7

Supply to PropagatorsPBR process

Bulking up cutting material

Year 6

Planting outPTCYear 2

Embryo rescueCross selected parentsYear 1


WAXFLOWER Waxflower – a case study Focused Program – Pearl flower • Pure white petals • Green centres • Terminal flowers • High quality • Good yield • Long vaselife • Disease tolerance • Time of maturity • Range of varieties to enable marketing of a Pearlflower throughout the season. • Parallel program for Gem flowers, Star flowers Development Pathway

+


Selecting for Flowering time Selecting for Vase Life

Vase life Southern Stars and standards

0

10

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Southern Stars Eric John JasperVarieties

Vase life (days)

19992000


What is New Crop Development It means to us: • Developing new lines of existing species • Developing new uses for existing plants • Developing new ways of delivering plants • Selecting and developing native plants not used currently • Developing new and unique hybrids by normal breeding • Developing new and unique hybrids by Biotechnology Developing new native plants Plants that have only been used from bush pick require selection and development.

– Smokebush (K. Seaton) – Yellow bells

What is New Crop Development It means to us: • Developing new lines of existing species • Developing new uses for existing plants • Developing new ways of delivering plants • Selecting and developing native plants not used currently • Developing new and unique hybrids by normal breeding • Developing new and unique hybrids by Biotechnology Unique traditional breeding • There a number of opportunities that we are exploring for crossing several lines that could provide

unique cutflowers • These are generally not normally fertile and require some intervention • Use early embryo rescue • May need grafting for vigor • WATCH THIS SPACE What is New Crop Development It means to us: • Developing new lines of existing species • Developing new uses for existing plants • Developing new ways of delivering plants • Selecting and developing native plants not used currently • Developing new and unique hybrids by normal breeding • Developing new and unique hybrids by Biotechnology New products - new techniques • In Vitro Soil (IVS) (Patent Pending)

– develop roots on recalcitrant plants – helps commercialisation

• Embryogenesis – Rescue embryo from low fertility cross

• Somatic fusion (wide hybridisation) – Smash cells and fuse into new plant ------->


IVS • Some native plant materials we have selected have been hard to strike roots on – recalcitrant. • Over a period of time a technique was developed that ensured normal rootstrike – IVS • Now applied to a range of woody plants across horticulture i.e. sandalwood, grapes as well as forest

trees and fruit trees. Early Embryo Rescue • The Waxflower program discovered that the fertilised embryo did not often produce a fertile seed. • Our protocol creates fertile embryos, these are harvested early and placed into tissue culture – the

success rate skyrocketed and the breeding efficiency increased dramatically. What is New Crop Development It means to us: • Developing new lines of existing species • Developing new uses for existing plants • Developing new ways of delivering plants • Selecting and developing native plants not used currently • Developing new and unique hybrids by normal breeding • Developing new and unique hybrids by Biotechnology Somatic fusion

Reduces plants to a single cell, fuses them then grows them back into a whole, hybrid plant


The lab is where it happens

Callus Cell suspension derived protoplasts

1st cell division

2nd cell divisionMicro callusMacro callusRegeneration

Cell suspension


What is New Crop Development It means to us: • Developing new lines of existing species • Developing new uses for existing plants • Developing new ways of delivering plants • Selecting and developing native plants not used currently • Developing new and unique hybrids by normal breeding • Developing new and unique hybrids by Biotechnology Pot plants

We have also used our knowledge of the flora, along with research into advanced seed germination technologies to develop a range of arid zone daisies for the local market

Strong association with the ‘Waterwise’ marketing concept Released 8 varieties to date

What is New Crop Development It means to us: • Developing new lines of existing species • Developing new uses for existing plants • Developing new ways of delivering plants • Selecting and developing native plants not used currently • Developing new and unique hybrids by normal breeding • Developing new and unique hybrids by Biotechnology Pot plants using wax

There is an opportunity to target the export pot plant industry The waxflower breeding program has produced varieties highly suitable for pots We now have varieties being tested by nurseries in the USA

What is New Crop Development It means to us: • Developing new lines of existing species • Developing new uses for existing plants • Developing new ways of delivering plants • Selecting and developing native plants not used currently • Developing new and unique hybrids by normal breeding • Developing new and unique hybrids by Biotechnology New Crops • There are still many plants that can be used for products other than cutflowers • We have a project to develop plants for potted colour Future opportunities • New hybrids now being produced and obtaining better prices with better agronomics and profitability • Large range of pot plant material that can be focused on Asia, USA, Europe and Middle east • Licensing of technology overseas • Need for focused promotion/market development


Realities Facing Flower Breeding Programs in Australia Reducing Government Funding in Flower Research • The lack of contributions by industry to R&D in the flower industry is making traditional

Government funding bodies RIRDC and Government Departments very disinterested in continuing their funding.

• DAFWA has approached growers and industry to invest in breeding – with the growers being unable to commit – Private investors are still interested and negotiations are continuing

• DAFWA real budget declining annually • Some Suggestions for You • Dig deep to support your local Research and Development programs • Talk up the industry • Become involved with FAQI and other groups to lobby funders

Say it with

Australian native flowers

Focused breeding and evaluation programs are long term and expensive

These are generally government funded either directly or via grants (some small personal programs are carried out by individuals without outside support)International competitiveness is placing pressure on grower/industry viability

Reducing interest by government to fund research and breeding (primarily because industry is not investing)

Small Australian industry – limited sales of product


Research Update Presentation Margaret Johnson – Centre for Native Floriculture The University of Queensland Gatton, Gatton QLD 4343 [email protected] The floriculture program is the technical program of the Centre for Native Floriculture (CNF) and has a diverse array of projects. Its primary role is the development of new floricultural species and to that end we have made an extensive germplasm collection and established breeding programs since the establishment of the CNF in 2003. The program supports 7 postgraduate and 4 honours students and 4 visiting scientists and has projects in genetic diversity, flowering physiology, breeding, new crop development, bush harvested species, nutrition particularly phosphorus nutrition, postharvest, postharvest pathology and biological control of soil borne pathogens. The purpose of this paper is to provide briefly a summary of several of these projects. HAEMODORUM Haemodorum coccineum (Haemodoraceae) is an attractive species from tropical Australia (Queensland and Northern Territory), producing orange to red flowers from November to March, a time when red flowers are highly desired on global markets for Christmas, Chinese New Year and Valentines’ Day. Initial research by Dawson (2000) reported that plants growing in southern Queensland died soon after flowering with no plant survival past the second summer. This was attributed to low soil temperatures and winter rainfall. Trials with our commercial partner Alenna McMah during the last 2 years are more promising. Plants established from seed or via tissue culture flowered in the first year. Two-year-old plants have continued to survive and flower. There is no evidence to suggest that Haemodorum in P sensitive as plants continued to grow well even when high rates of superphosphate were added to a standard nursery-growing medium, which already had a moderately high P level. In fact there is evidence to suggest that plants in the low P medium were deficient in P as their root/shoot ration was twice that of plants growing in the other media. It is possible that the plant death reported by Dawson (2000) may have been due to soil pathogens but it is unlikely that plant nutrition was the cause. Seed germinates readily and seedling establishment is the preferred method of propagation. Most plants in tissue culture failed to show viable rates of multiplication. Haemodorum grown from seed are diverse and the potential exist to select cut flower and garden forms. Seed from plants with desirable characteristics have been collected. The selection criteria for cut flowers are;

Height >70 cm Stems straight, strong and slender Mushroom head shape (terminal inflorescence higher than the laterals) Multiple stems >3 Data needs to be collected on yield per unit area to determine the economic viability of commercial production. Plant density and arrangement trials would be useful to determine optimise yield. The vibrant colour of Haemodorum and its flowering time during a period of peak demand for red flowers would suggest further studies are warranted. PTILOTUS Ptilotus is a very diverse genus with ca. 100 species, most of which are endemic to Australia and grow in semi-arid to arid regions. Species may be annual or perennial can form small shrubs or herbs, and a wide range of flower colours is found in the genus. The floricultural potential of this genus has been acknowledged previously (Williams and Jones 1994; Growns and Abell 1996). The important qualities of Ptilotus spp. include long flowering period, long vase life and tolerance of many species to drier growing conditions. The small compact species may be suitable for the potted colour market and taller species for


the cut flower market. Only a few Ptilotus cultivars have been grown commercially as cut flowers, including Ptilotus exaltatus ‘Pink feather’ and Ptilotus obovatus ‘Cobtus’, both of which are tetraploid selections from the University of Sydney Plant Breeding Institute. Ptilotus exaltatus var. exaltatus was also grown in Germany (von Hentig et al. 1995). Commercial production has been very limited and some selections such as ‘Pink feather’ have been lost from the trade. In terms of the potted colour market, one cultivar, P. exaltatus ‘Musk sticks’, was recently released to the nursery trade in Australia. There are only limited sales of a very few Ptilotus species in the nursery trade despite their ease of cultivation using standard nursery practices, their profuse flowering, their perenniality with regular pruning of senescent inflorescences, and their apparent relative insensitivity to phosphorus fertilizers. To realise the full potential of Ptilotus for cut flowers, several barriers to domestication need to be overcome. In some species, premature flower initiation causes problems with vegetative propagation by both cuttings and tissue culture. In addition, there is a lack of information on reproductive biology and incompatibility mechanisms between species, and seed supply is limited in some species as indicated by limited seed set in wild plants. There is also taxonomic uncertainty, especially between P. exaltatus and P. nobilis, which are separated morphologically on flower colour, position of hairs on the tepal and odour. There is no one botanical key to all species, and most of the taxonomic work has been conducted and published in Germany (e.g. Benl 1959, 1971). In our study phylogenetic analysis clearly separated the outgroup taxon G. celosioides from Ptilotus spp. with a genetic distance of 0.27. Among the Ptilotus species assessed, 96 (16%) characters were variable. P. macrocephalus, P. polystachys and P. obovatus each formed a distinct clade (Fig. 1). However, the phylogenetic tree places P. nobilis and P. exaltatus into the same clade (Fig. 1). P. exaltatus var. exaltatus (Qld) and P. nobilis sequences differed by only one nucleotide. Three to four nucleotides separated these two accessions from the Western Australian P. exaltatus accession. Overall, the small genetic distance among these accessions (≤ 0.005) is 10-fold less than between other undisputed Ptilotus taxa (0.06 to 0.13) (Fig. 1). Together, we propose that P. nobilis and P. exaltatus are likely to be monophyletic, supporting their reclassification as a single species.

P. exaltatus var exaltatus(QLD)

P. nobilis

P. exaltatus var exaltatus(WA)

P. obovatus (cobtus)

P. polystachyus var polystachyus

P. macrocephalus

G. celosioides

99

98

100

94

0.02 Figure 1. Phylogenetic tree (Neighbour-Joining) of selected Ptilotus accessions and the outgroup taxon, Gomphrena celosioides. Scale bar represents genetic distance. Bootstrap test values are based on 1000 replicates. PHOSPHORUS NUTRITION OF NATIVE PLANTS While Australian soils are extremely low in their complement of most mineral nutrients required for plant growth, the influence of low P is thought to have the most impact (Handreck 1997), and is often the main nutrient limiting growth of Australian plant communities (Beadle 1966; Pate et al. 2001). Plants have many adaptations, which enable them to survive in a P-limited environment (Vance et al. 2003). For example the enhanced acquisition of inorganic phosphorus (Pi) can be achieved via increased production and exudation of phosphatases (Duff et al. 1994) and organic acids (Jones 1998), particularly in cluster roots (Shane and Lambers 2005), greater root growth or modified root architecture (Lynch and Brown 2001), coupled with high root mass ratios (Chapin 1980; Gerloff 1963) and increased expression of root Pi transporters (Smith et al. 2003).


The capacity of non-agricultural plant species to exist in nutrient-impoverished soils has been associated with processes, which conserve the use of P, such as slow relative growth rates (Clarkson 1967; Grime and Hunt 1975), coupled with increased production of biomass per unit of P absorbed (Asher and Loneragan 1967). Apparent differences in plant performance between species from high- and low-P environments, have invariably shown low-P adapted species demonstrate a poor yield response under luxury P supply (Chapin and Bieleski 1982; Christie and Moorby 1975; Shane et al. 2004b). Australian native plants, which are adapted to low-P soils, are often susceptible to P toxicity at slightly enhanced solution P concentration ([P]) (Ozanne and Specht 1981). These P-sensitive species are usually characterised by a low P requirement, due to efficient remobilisation of internal Pi (Handreck 1997; Jeschke et al. 1997). Species classed as P sensitive frequently suffer from P toxicity at luxurious P supply levels, while insensitive species show tolerance to elevated P levels (Goodwin 1983; Parks et al. 2000; Shane et al. 2004a). It is well established that most species are able to regulate P uptake, despite wide fluctuations in external [P] (Clarkson and Saker 1988; Glass 2002; Mimura 1999). This has been confirmed at the molecular level, where Lycopersicon esculentum(tomato) P-transporter gene expression is regulated according to the internal [P] as affected by the external P supply (Liu et al. 1998). The possible exception occurs for P-sensitive species, which under increased P supply, may be unable to down-regulate excess uptake of P, leading to the development of symptoms of P toxicity (Lambers et al. 2002; Shane et al. 2004b), and occasionally to deficiency symptoms for micronutrients (Handreck 1991). An interesting situation occurs within the Australian flora where comparative species from the same family may differ widely in their ability to regulate P uptake. Caustis blakei is sensitive to soluble P fertiliser and is highly susceptible to P toxicity, contrasted by a very low critical [P] of 0.7 mg g-1 dry matter (DM), associated with 90% relative yield (Gikaara et al. 2004). As a non-sensitive species, Chamelaucium uncinatum (waxflower) displays a considerable degree of tolerance to increasing P levels (Gikaara et al. 2004). We hypothesised that, unlike waxflower and tomato, C. blakei may be unable to down-regulate the uptake of P during luxury supply, and therefore accumulate P to toxic levels. Increased P-absorption rates in waxflower and tomato were associated with increasing relative growth rates (RGR); however, C. blakei RGR peaked at the lowest P absorption rate and, due to P toxicity, increasing absorption rates lowered the RGR. These results suggest that, unlike tomato and waxflower, C. blakei may not be able to regulate P uptake at solution levels greater than 10 µM; C. blakei grown at 250 µM P accumulates P to toxic concentrations as high as 12 mg g-1 DM in the shoots. In contrast, under P-limiting conditions, C. blakei appears to be highly efficient in its acquisition and internal use of P. This is demonstrated by the fact that the highest total dry weight of 12.8 g was achieved at a solution [P] of 1.0 µM. Furthermore, low-P adaptations include an increased root mass ratio and the formation of dauciform roots when plants are grown at low solution [P] < 1.0 µM. The inability of C. blakei to down-regulate its P uptake, may be a consequence of its nutrient-poor ecological niche, which requires the uptake and storage of P in excess of the plant’s immediate demand. ACKNOWLEDGMENTS The assistance of co-researchers especially Dr Dion Harrison, James Lee and Cameron Playsted is acknowledged. The presentation is based on the research of many CNF postgraduate students and their input is acknowledged. References Asher C J and Loneragan J F 1967 Responses of plants to phosphate concentration in solution culture: I.

Growth and phosphorus content. Soil Science 103, 225-233. Beadle N C W 1966 Soil phosphate and its role in moulding segments of the Australian flora and

vegetation with special reference to xeromorphy and sclerophylly. Ecology. 47, 992-1007. Benl G (1959) Ptilotus nobilis (Lindl.) F. Muell. Mitteilungen der Botanischen Staatssammlung München

3, 34-43. Benl G (1971) Ptilotus Key. Mitteilungen der Botanischen Staatssammlung München 9:177-194. Chapin F S 1980 The mineral nutrition of wild plants. Annual Review of Ecological Systems. 11, 233-

260.


Chapin F S and Bieleski R L 1982 Mild phosphorus stress in barley and a related low-phosphorus-adapted barleygrass: Phosphorus fractions and phosphate absorption in relation to growth. Physiologia Plantarum 54, 309-317.

Christie E K and Moorby J 1975 Physiological responses of semiarid grasses. I. The influence of phosphorus supply on growth and phosphorus absorption. Australian Journal of Agricultural Research. 26, 423-436.

Clarkson D T and Saker L R 1988 The regulation of ion transport in roots. A role for phloem transport. Proceedings of the international Congress of Plant Physiology 1199-1206.

Clarkson D T 1967 Phosphorus supply and growth rate in species of Agrostis L. Journal of Ecology 55, 111-118.

Duff S M G, Sarath G and Plaxton C 1994 The role of acid phosphatases in plant phosphorus metabolism. Physiologia Plantarum 90, 791-800.

Dawson I (2000) Scarlet bloodroot (Haemodorun coccineum) – A new Australian cut flower crop. Acta Horticulturae 541, 91-96.

Gerloff G C 1963 Comparative mineral nutrition of plants. Annual Review of Plant Physiology 14, 107-124.

Gikaara D M, Johnston M E and Edwards D G 2004 Management of phosphorus supply to Australian floricultural species. Scientia Horticulturae 102, 311-323.

Glass A, D,M 2002 Nutrient absorption by plant roots: regulation of uptake to match plant demand. In Plant Roots: the Hidden Half, Eds Y.Waisel, A. Eshel and U.Kafkafi. pp 571-586. Marcel Dekker, New York, USA.

Goodwin P B 1983 Australian natives- fertilising container grown plants. Australian Horticulture, 57-65. Grime J P and Hunt R 1975 Relative growth rate: Its range and adaptive significance in a local flora.

Journal of Ecology 63, 393-422 Growns DJ, Abell P (1996) Developments in Mulla Mullas. In ‘Proceedings of the IV National Workshop

for Australian Native Flowers’ pp. 241-245. (The University of Western Australia Press: Perth). Handreck K A 1997 Phosphorus requirements of Australian native plants. Aust. J. Soil Res. 35, 241-289. Handreck K A 1991 Interactions between iron and phosphorus in the nutrition of Banksia-ericifolia L.

(Proteaceae) in soil-less potting media. Aust. J. Bot. 39, 373-384. Jeschke W, Kirkby E, Peuke A, Pate J and Hartung W 1997 Effects of P efficiency on assimilation and

ion transport of nitrate and phosphate in intact plants of castor bean (Ricinus communis L. ). Journal of Experimental Botany. 48, 75-91

Jones D L 1998 Organic acids in the rhizospere. Plant and Soil 205, 25-44. Lambers H, Juniper D, Cawthray G R, Veneklaas E J and Martinez-Ferri E 2002 The pattern of

carboxylate exudation in Banksia grandis (Proteaceae) is affected by the form of phosphate added to the soil. Plant and Soil. 238, 111-122.

Liu C M, Muchhal U S, Uthappa M, Kononowicz A K and Raghothama K G 1998 Tomato phosphate transporter genes are differentially regulated in plant tissues by phosphorus. Plant Physiology 116, 91-99.

Lynch J P and Brown K M 2001 Topsoil foraging-an architectural adaptation of plants to low phosphorus. Plant and Soil 109, 7-13.

Mimura T 1999 Regulation of phosphate transport and homeostasis in plant cells. International Review of Cytology - a Survey of Cell Biology. 191, 149-200.

Ozanne P G and Specht R L 1981 Mineral nutrition of heathlands:Phosphorus toxicity. In Ecosystems of the World, Ed R L Specht. pp 209-213. Elsevier Scientific, Amsterdam.

Pate J S, Verboom W H and Galloway P D 2001 Co-occurrence of Proteaceae, laterite and related oligotrophic soils: coincidental associations or causative inter- relationships? Aust. J. Bot. 49, 529-560.

Parks S E, Haigh A M and Creswell G C 2000 Stem tissue phosphorus as an index of the phosphorus status of Banksia ericifolia. Plant and Soil. 227, 59-65.

Shane M W and Lambers H 2005 Cluster roots: a curiosity in context. Plant and Soil 274, 101–125. Shane M W, McCully M E and Lambers H 2004a Tissue and cellular phosphorus storage during

development of phosphorus toxicity in Hakea prostrata (Proteaceae). Journal of Experimental Botany 55, 1033-1044.


Shane M W, Szota C and Lambers H 2004b A root trait accounting for the extreme phosphorus sensitivity of Hakea prostrata (Proteaceae). Plant Cell Environ. 27, 991-1004.

Smith F W, Mudge S R, Rae A L and Glassop D 2003 Phosphate transport in plants. Plant and Soil 248, 71-83.

Vance C P, Uhde-Stone C and Allan D L 2003 Phosphorus acquisition and use: critical adaptations by plants for securing a nonrenewable resource. New Phytologist 157, 423-447.

von Hentig WU, Ehlers D, Hennig F, Seyring M (1995) The development of Ptilotus exaltatus R. Br. under central European conditions. Acta Horticulturae 397, 163-171.Williams RR, Jones N (1994) Progress with propagation and floral biology of Ptilotus species. In ‘Third National Workshop for Australian Native Flowers’ pp. 4-14 – 4-17. (University of Queensland, Gatton College: Gatton).


Farm Tours


2006 Native Flower Farm Tours

8:30 Depart Toowoomba and Travel to Farm 1 (Cook’s Riceflowers)

9:00 – 10:00 Farm 1 Tour

10:00 – 10:30 Travel to Farm 2 (Ebonybrook Farm)

10:30 – 11:00 Morning Tea at Ebonybrook Farm

11:00 – 12:00 Farm 2 Tour

12:00 – 12:30 Travel to Esk for Lunch

12:30 – 1:30 Lunch at Esk Club Hotel, 225 Ipswich Street, Esk

1:30 – 1:45 Travel to Farm 3 (Mount Hallam Proteas)

1:45 – 2:45 Farm 3 Tour

2:45 Farm Tours Conclude


Step-by-Step Directions and Map

Start at TOR ST, NEWTOWN (TOOWOOMBA) – head towards HANLON ST Turn LEFT at HANLON ST, NEWTOWN Turn LEFT at WARREGO HWY, NEWTOWN Turn RIGHT at RAILWAY ST, HELIDON Turn RIGHT at BACK FLAGSTONE RD, HELIDON Stop 1 – Cooks Riceflowers Start at BACK FLAGSTONE RD, IRELAND – head towards HARTS RD Turn LEFT at RAILWAY STREET, IRELAND Turn RIGHT at WARREGO HWY, HELIDON Turn left at BISHOPS ROAD, GATTON Turn RIGHT at REDBANK CREEK ROAD, LAKE CLARENDON Continue along GATTON-ESK RD, LAKE CLARENDON Stop 2 – Ebonybrook Farm Start at GATTON-ESK ROAD, MOUNT HALLEN – head towards RESERVE RD Turn RIGHT at WILLAURA DR, MOUNT HALLEN Stop 3 – Mount Hallen Proteas


Details of Farm Tour 1 – Cook’s Flowers

Address 92 Back Flagstone Road, Helidon. Postal address: 46 Brown & Zirbels Rd, MS 464, Helidon 4344.

Total Farm Size 40 acres leased

Area under cultivation 25 acres

Farm History Planted Jan. 2004

Plans for the future Continue growing riceflower; trial new crops; make a living.

Labour force 1 full time, 10-15 at harvest.

Annual rainfall 30 ins normally; 8th year of drought;

Soil type Black clay

Water source and quality Helidon treated sewerage

Irrigation type Drip

Key Crops Riceflower (Ozothamnus diosmifolius)

Fertilisers used Iron chelates; occasional general fertiliser with trace elements; trialling various others at present.

Key Pests & Diseases Nematodes (100% death rate); Various root rots & fungal problems – different in different areas.

What management practices are in place

All plants hilled for drainage; Jumbo sorghum grown as a rotation crop for nematode control; Young plants tip pruned and kept weed free.

Key Markets Japan major market; USA, Canada, Europe minor markets.

What we have learnt from being in the business of growing native plants

It is not as simple as we expected it to be, especially with a local species like riceflower – we found out by trial and error why it only grows in certain places in the wild! Good drainage is essential for all native plants (from west of the range at least). We automatically hill all rows.

Farm Fact Sheet available: Cultivation Notes on Rice Flower by Graham & Esther Cook

If you would like a copy, email Esther [email protected]


Cook’s Riceflowers For many years Graham and Esther Cook worked hard to make a living from their lucerne farm at Helidon, in southern Queensland. In some years, they were short of irrigation water to meet the high water demands of a lucerne crop, so they started to investigate alternatives for their relatively small farm. After several experiments with growing a wide variety of flowers, the Cooks decided on riceflowers, believing that they were very hardy natives that could cope with dry weather without much irrigation. “Our first harvest consisted of 13 boxes, and we never got paid for them, ”Esther says. “Our agent went bankrupt. ”Now the Cooks have over 35 acres of riceflowers at Helidon, with around 320, 000 stems being sold in 1999. Without doubt, Graham is a born farmer. It is a credit to both his and Esther ’s talents that Cook ’s Flowers has emerged a successful and innovative enterprise.

Below: Esther and Graham Cook checking plants in their shadehouse at Helidon, southern Queensland.

Getting Started The Cooks made their own, initial riceflower selections using cuttings from plants which grew wild around their region and through northern New South Wales. “You find riceflower growing in disturbed sites, ” Esther says. “You might drive through an area and think that there ’s no riceflower there, but if a plough is put through for telephone lines, the young riceflower plants will come up along those lines. Understanding the idiosyncrasies of the crop has been an essential element in the success of the Cooks ’riceflowers. Due to the high oil content of the flowers, the crop is very susceptible to fire and, if burnt, the plant does not grow back. To avoid being wiped out if a disaster strikes, the Cooks have planted their best varieties in different places around the farm. Champion Qualities

o Identified opportunity to develop an Australian native o Farm diversification priority o Focus on quality o Developed a market niche and reputation o Ongoing product development

The first plantings were made in January 1988, with the subsequent harvest done in September. That year, they began to realise that some flowers grew far better than others, and that the initial crop was a strange hotchpotch of varieties. Neither the nursery nor the Cooks had realised the extent of the differences. Some 40 different patterns were listed, with the best ones chosen to be propagated.


Unfortunately, these finer selections were destroyed by nematodes after being replanted. The experience was devastating, with $30, 000 and a year ’s work lost. Re-stocking and breaking the nematode cycle was a major task. A stringent program of nematode control has since been put in place. The Cooks take their own cuttings and a nursery propagates the plants for them. Planting now takes place in autumn, as their growing period is during the winter. “One way the flower copes with the heat is to cease growing, ”says Esther. “The bigger the difference between day and night temperatures, the more growth they can put on."

Below: Graham Cook inspects a well grown five-year-old commercial stand of ‘Snow White ’ riceflower ready for harvest.

The flowers are harvested using a normal hedge trimmer, with the bush cut off at about knee-height and taken into the packing shed. Inside the shed, the flowers are cut to length and bunched before being dipped in an insecticide and fungicide mix, and eventually boxed. “That ’s the trick to getting them onto the market in really pristine condition — get them out of the field and process them as quickly as possible,” Esther says. Riceflower Qualities What makes the Cooks ’enterprise special is their careful selection of varieties. Indeed, their fine selections position them as leading riceflower growers. Two selections are already registered. The first thing they look for in a selection is a clear colour. “No muddy colours, ”says Esther. “One of the perceptions we had to overcome in the first place was the idea that it was an off-white flower, ”she says. “ At least that ’s how the Japanese saw it. But they know now how colourful our flowers can be. Another factor we look for is that the flower must grow back after it ’s harvested. And you have to be able to propagate it. We discard any variety — regardless of how appealing it is — if we can ’t propagate it. The length of the stem is important. When they flower is also vital. Each one has it ’s own habit. The worst commercial variety we tried had a flowering window of about 24 hours. But most of them span over three to four days, and even up to ten days maximum. Another element in the selection process is finding a variety which flowers evenly:the side flowers must open at the same time as the higher flowers. “We do the kitchen table test, ”says Esther. “You cut a stem, and just let it lie on the table overnight without water, then you hold the stem up and you can see straight away if the side buds are drooping. If the top is already starting to open, but the sides are still drooping, then it ’s not a commercial flower as far as we ’re concerned."


Below: One of the Cooks ’ commercial riceflower plantings which was vegetatively propagated from selected seedlings.

Despite the fact that the Cooks know their varieties incredibly well, the selection process is inevitably expensive. The space, the time and the insecticide applications and irrigation make trials very costly. “Between seedlings, and the ten trials — where you pick out your best seedlings and put them in ten at a time to have a good look at them — we ’ve had up to a quarter of our area of cultivation in trials. They ’ve got to be looked after the same as the others, or it ’s not a fair trial." Marketing The vast majority of the Cooks ’product is sold to Japan. The Japanese market has purchased the flowers in stem amounts, at a fixed price. The stem lengths range between 50 centimetres to a metre, with an 80-centimetre length being the most popular and economically viable length, due to the packing requirements. “You have to weigh up your wages against box expenses and so on, ”says Esther. “We know about 70 to 80 centimetres give us the best return." At harvest time, around a dozen people are brought in to help, who are, according to Esher, usually female. “Our pickers, usually local women, have to be able to look at a stem, and judge how long that stem should be to suit the amount of flowers, ” Esther says, “so there ’s an important judgment to be made. A lot of men think that ’s a bit below them, to look at a stem and decide what length you ’re going to cut it. They don ’t see that as proper farming." After the flowers are packed at Helidon, the product is exported through an agent. Usually, the Cooks ’flowers are flown to Japan from Brisbane, to be sold at fixed prices or at auction. “The auctions over there are just amazing, ”Esther says. “They range from big, sophisticated, electronically-monitored ones, down to little auctions that are set up in a garage. But, as yet, we ’ve only seen video tapes of them."

Left: Harvesting a commercial stand of riceflowers at Helidon


The Cooks have encountered problems in the past with maintaining the freshness of their flowers after the product leaves the farm. “We can send them out at three degrees, spot on, ”Esther says. Some years ago, they began monitoring the temperatures because customers were complaining about wilting shipments. “Sometimes the temperature reached 28 degrees, ”she says.“ It was ridiculous." Many of the carriers have since begun to monitor their own temperatures. However, off-loading product before it reaches its destination can also cause problems. “We ’ve had stuff sit on the tarmac in Singapore for 24 hours!”Esther says. “When they arrived in Japan, most of the flowers were mush." These kinds of problems have been kept to minimum, and when the flowers arrive, they do so in a box designed by the Cooks themselves. “Marketing in our own boxes was one of the best decisions we ever made, ”Esther says. “It helps build customer awareness and identification with our product. It did take the agents a while before they got used to the idea." The Challenges By far the greatest challenge they ’ve yet faced has been the growing of the flowers themselves. “Because they ’re a native flower, they carry all the predators and fungi which stop them over-running the place. Even though they grow around this area, we have lots of people coming here who ’ve never seen a riceflower. Over the last ten years, we’ve been grading and bunching riceflowers ready for market trying to find out why they emerge wild in pockets, and why they ’re not a pest. ”While the majority of the research conducted at Helidon is done by the Cooks themselves, Queensland Wax and Native Flowers Association took part in a study initiated in 1998 to examine the effects of different fertiliser regimes on nutrients in Helidon ’s soil.

. While the Cooks are at the forefront of the riceflower industry, there still isn ’t a lot of information on growing the crop.“ The people from the Department of Primary Industries and Gatton College involved in plant health have been helpful,” Esther says, “and they appreciate that this is our living.” So far, Esther and Graham have relied on mainly shrewd and progressive farming.

Below: Grading and bunching wildflowers ready for market.

A Cooks’ special selection for further breeding


Rice Flowers Farm Diversification Information Services, Bendigo February, 1998 Product Rice Flower (Ozothamnus diosmifolius) is a spring flowering perennial native shrub which produces flowers for both the local and export markets. The main use in floral arrangement of rice flower is as a filler in both wild flower and conventional flower arrangements. The flower colour can range from whites to dark pink and has a long vase life (10 days) in the right conditions. Up until the 1980's, rice flower was harvested from native stands but in the last decade, a number of growers have started to grow commercial plantations. In 1992 it was estimated that the Australian production was about 200,00 stems and at the time, it was predicted that this would increase to 500,000 stems by 1995. A 1994 survey estimated that there were 38 rice flower producers in Australia (in a total of 445 wildflower producers) growing about 14 hectares of crop. Rice flower is grown in most states of Australia. The highest prices are paid for high quality, long straight stems and pink flowers. The product is sold according to quality and stem length, ranging in 10 cm groupings from 50-100 cms in length. Physical Requirements Rice flower plants need a well drained fertile soil that is in an area that is protected from wind. Strong winds can play havoc with the crop so some shelter belts may be necessary. Often the shrubs are planted on mounds to ensure good drainage as they are susceptible to root rots if waterlogging occurs. Irrigation is essential to ensure maximum yields. Production Rice flowers are produced using the conventional cutting propagation methods. Stem cuttings usually produce roots after 5-8 weeks. They are planted in rows about 4 meters apart with 0.5m - 0.75m between plants, which gives a plant density of 3300-5000 plants/hectare. There are a number of varieties available such as Cook's Tall Pink and Cook's Snow White (named after Ester and Graham Cook who pioneered rice flower production in Queensland) and a variety developed by the Queensland Department of Primary Industry, Redlands Sandra.

Left: Graham Cook inspects a new stand of one of his more promising riceflower selections.


The Shrub is a perennial plant but losses of 10-20% per year are quite common, so after 3-4 years, it is often not economical to keep going. The plants flower in September-October in the northern states (a little later in the southern states) therefore, by picking a range of varieties it is possible to get a production season of about 10 weeks. In the first year, trial plots in Queensland produced 30-34 marketable stems which increased to 80-100 stems by the second year. Harvesting is critical with respect to timing. You need expert guidance to learn the exact time you need to harvest the flowers. The correct timing can extend the harvest period for a particular clone from 3 to 10 days. Once the flowers are cut, it is recommended they be cooled to 21C immediately to retain quality. There are a number of pests and diseases which can affect the crop such as Phytophora root rot, White rot, nematodes and a number of insects. Marketing Rice flower is mainly grown for the export market. In 1992, 94% of the crop was sold overseas, mostly to Japan. By 1995, Japan was still the major buyer, but more was going to the USA and other countries. The Japanese market require clean, distinct flower colours (preferably clear whites or non-fading pinks) with clean, green high density foliage which to these buyers is used as a filler in floral arrangements rather than being the main floral attraction in the arrangements. Some of the crop is sold locally, also as a filler, but here in Australia and the USA the main production time clashes with a lot of "filler" types, which can affect the price. Exporting flowers is a very demanding business because everything depends on quality. There are industry standards for rice flowers which have been accepted by the Flower Export Council of Australia (FECA) and Standards Australia, and these need to be closely followed to ensure maximum returns. However, it is also important to understand the marketing chain. Between the Australian producer and the Japanese end customer, there could be four or five other people who buy and sell the product. Each of these links in the chain look for different things so you need to be aware of all these links and how your product is "processed" through the marketing chain. The key link is the exporter who, if skilled and has good contacts, will be able to give you, the producer, all the feedback you require. Price is only one factor, quality, changing trends, packaging, ease of handling are some of the other considerations. For the small wildflower producer, it is highly recommended that you establish links with a reputable exporter. The market is usually far too difficult to and complex for you to develop it yourself. Once you have experience in the genre, you may like to develop your own links and marketing outlets but you need to know your industry thoroughly. In Victoria there are a number of companies specialising in wildflowers who have developed market outlets overseas. A good example is Austbloom in the Grampians of Western Victoria. Financial Aspects It is difficult to get accurate figures on costs and returns on small and large areas. One small producer in Western Victoria estimates that she is grossing $8-9 per plant per year, but she has no accurate figures on production. Organisations and Contacts Institute for Horticultural Development Victoria Department of Primary Industries 03 9210 9222 Redlands Research Station Queensland Department of Primary Industry PO Box 327 Cleveland QLD, 4163 07 3286 1488 References Development of Rice Flower Beal, Turnbull & Forsberg, 1995 The Australian Wildflower Industry Karingal Consultants, 1994


New Crops New Products - Vol 2 RIRDC Research Paper No 97/2 All available from the Rural Industry Research and Development Corporation PO Box 4776 Kingston ACT There are also a series of Technotes available from Redlands Research Institute QDPI 07 3286 1488 Acknowledgements Ian Knox - Alternative Directions The advice provided in this publication is intended as a source of information only. Always read the label before using any of the products mentioned. The State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.

For general information about DPI please contact: DPI Customer Service Centre Phone: 136 186 Email: [email protected] Online Enquiry Form Department of Primary Industries, Victoria, Australia


Ebonybrook Waxflowers Knee-deep in acres of waxflower, kangaroo-paw and grevilleas, Ken Young takes pleasure in the triumphs and challenges which follow a mid-sized flower farm. “I started 11 years ago, ”he says. “It ’s not easy, but I ’ve enjoyed it immensely. ”Ken is project manager for Ebonybrook, a business entity reconstructed from the ashes of a failed rural investment company that was established during the early 1980s. Background During that time, waxflower was being promoted throughout southern Queensland as a viable new industry. The original enterprise leapt onto the waxflower wagon, sourcing their first selections from Hopeland Nursery — then a pioneering establishment in waxflower production. “Many of the early producers of waxflower (based on large plantings of a very limited range of untried selections of waxflower)didn ’t have the skills or experience to realise the original goals. With hindsight ”, Ken considers, “it ’s easy to say that the early schemes were bound to fail. It was too much, too quickly." All of the initial waxflower growers throughout Queensland were entirely production-driven and most marketed their product through Geraldton Waxflower Marketers. When these marketers bowed out of business, many growers found themselves in difficulty and, despite having little or no experience in marketing, most were compelled to market their own product. “Up until then, they (the farmers) simply produced it, bunched it, and sent it off, in the mistaken belief they would be paid for it at some stage,” says Ken, “and they ’re still waiting to be paid."

Below: Ebonybrook waxflowers being prepared for market.

Champion Qualities

• Established markets for product • Established farm redeveloped • Focus on quality • Market chain development Investment turnaround • Regional research support base

Ken began producing waxflower tubestock while managing the Gatton College nursery (now part of the University of Queensland)in the early eighties. Before the explosion of interest in waxflower production during the mid-eighties, David Plant of Hopeland Nursery — who later became an influential promoter of the industry — sought out Ken to develop a series of estimates on flower production. “I had several wax plants at the nursery as stock plants. The estimates were based on ‘best guesses ’ of how many bunches we might get if we had a mature crop ”, he says. “In hindsight, and despite our best estimates and plans at the time, we really did not understand the factors which would eventually shape the long-term viability of the industry. If I could get my hands on a copy of those estimates now, my hair would probably curl from looking at the figures, after several years of reality. While Ken was managing the college nursery, he became involved in the early Queensland plantings. He visited farms regularly, collecting cuttings, producing plants, and delivering plants and information to the growers. Even


then he could see a spark of potential in the industry, despite its varied problems. This side interest soon turned into a career when the original investment company manager left, and Ken was offered the position. “I thought, here ’s a pretty unique opportunity. Challenging and fun, ” he says, “those opportunities don ’t come around that often. And all that was 11 years ago. ” He smiles, “I still wonder if I did the right thing!But honestly, it has been a great experience.

Ebonybrook manager, Ken Young, inspects a new crop of waxflowers

Taking up the managership in 1988, Ken arrived for the mid-August harvest. His first crop was enormous, with harvesting finished by late September after an intense flurry of work. However, there were no accurate figures on how many bunches were being shipped out. “The record keeping at that stage was pretty minimal, ”Ken remembers. “They simply bunched it up, packed it into cartons and shipped it out. ”Harvesting procedures have since changed dramatically, with comprehensive records kept and harvest time nudged forward to late May, and continuing through until late October. When the original investment company was wound up, Ebonybrook took over the site and re-established flower production. Apart from a few remnants, there is now very little of the original plant stock left. The number of plants grown has also been reduced and every fifth row removed from the plantation to facilitate access to the crop. “That extra row blocked our access, ” Ken says. “These days we can manage it, see what ’s going on, and spray it more effectively. When it was a solid mass of wax with limited access, all the harvested material had to be carried out. There was no vehicle or machinery access at all. Now at least we can drive up and down between the bays." The Plant Stock A lot of consideration goes into the selection of new planting material, although much of the selection process is now well informed by the lessons learnt from the original, mixed stock. Naturally, some selections fare better than others, and those plants not proving viable are soon replaced. New selections are planted in autumn each year on raised beds covered with weed mat.


. Ken recently initiated a major project involving the University of Queensland –Gatton, Queensland DPI and Ebonybrook in establishing commercial plantings of grafted waxflower in order to overcome root-borne diseases and to increase the yield of low- yielding but desirable cultivars of waxflower. Over 3, 000 grafted plants on a range of rootstocks have been established with very promising results. Ken also discovered that four waxflower varieties are not enough. “Today we all know that if you’re really going to be successful as a wax producer, you need white, you need a couple of shades of pink, and.you need purple all through the season. Not one following the other,” he says, “you need all four colours all the time. And that’s very difficult, but we ’re getting close to it." Ebonybrook now grows 30 acres of Geraldton waxflower, approximately 5, 000 kangaroo-paw and has established trial plantings of grevillea and Christmas bush. Flowering time, disease resistance and flower colour are the main criteria by which new selections are made at Ebonybrook. Harvesting and Marketing Rather than waiting until the crop or selection is in full flower, when machinery can be used for harvesting, Ebonybrook has adopted a hand- harvesting regime, beginning when about 20 per cent of flowers are open and completing the harvest with no more than 75 per cent of the flowers are open. Furthermore, the yield of the crop can be much higher when hand-harvested. But these estimates are simply a general guide, with some selections dictating various harvesting stages. The waxflower ’s reaction to the climate is another variable during harvest. If it is cold and dry, the flower will take longer to develop and will last on the plant for an extended period. “The flowers will become darker and darker, ” Ken says, “but eventually the aesthetic appeal starts to drop. ” After October, the weather can become far too hot to maintain flower quality and harvesting will cease. There are occasionally plants still to be harvested at this time of year, but a week of temperatures in the high thirties is usually enough to render most flowers unacceptable. The Ebonybrook flowers are hand-harvested into a trailer or tray-backed vehicle which then carries the product to the packing shed. Processing consists of grading the stems, cutting them to length, and then sorting them into bunches to suit the required orders/market. The US market is for bunches 60 centimetres long and 425 grams in weight. The Japanese market prefers 10-stem bunches, 70 centimetres or greater in length;and the European market generally orders their Ebonybrook flowers in bundles of 5 bunches of 5 stems 70 centimetres long. Quite recently, Ken was approached to produce 40-centimetre bunches for the Japanese market.“ Two years ago that would have been unheard of — those are the lengths you sweep out each day,” he says,“ but because of the nature of the Japanese market, where success depends as much upon delivering the product in the most cost-effective way as it does on the auction price per stem, the return for these short, ‘low value ’ stems can be quite acceptable. As you are able to pack a considerable number of these short stems into each carton, thereby reducing the packaging and

Left: A showcase selection of Ebonybrook waxflowers


freight costs per stem, the return to the grower could be cost-effective despite a seemingly low auction price per stem. Yet I suspect that if everybody jumped on the 40 centimetre bandwagon, there would only be one week of shipments before those lengths would be worthless again." After the waxflowers are graded and bunched, the bunches are disinfected by dipping in an insecticide/fungicide mix. The flowers are left to drain and then placed in buckets of silver thiosulfate (to prevent ethylene-induced flower drop). The product is then placed on multi-tiered racks in a cold room at two degrees overnight before packing and forced-air cooling the following morning. It is then transported by refrigerated trucks to exporters in Sydney and Melbourne. These trucks leave daily from Gatton, only 15 minutes from Ebonybrook. Ken maintains a close relationship with the transporters, who he says provide an excellent service. “The only way to maintain the quality of the product, ”he says, “is to monitor the performance of the transporters and exporters. About 90 per cent of Ebonybrook ’s product is exported to the US. Only 10 per cent is shipped to the Japanese and European markets, two markets. still being explored by Ken. A very small proportion is sold on consignment, with most of the exported material selling at a fixed price. Originally, Ken was not comfortable with attempting to court the Japanese market, where buyers have high standards and particular tastes.“ We didn’t have the stem lengths required, ”he says, “and we didn ’t have clean stems and selections that lent themselves to what I would call a ‘Japanese bunch ’. So we concentrated on the US market."

Below: Harvesting kangaroo paw for export at Ebonybrook.

But with every harvest, Ken becomes more interested in the Japanese market, because he occasionally feels he has “sold himself into a rut” in the US. While the returns from the Japanese markets can be lucrative, they can also be disastrous. “While I have to say I ’ve done very well out of the Japanese market, I ’ve only sent small volumes,” he says. “When exporting there, you always have to be aware of the fact that a lot of Australian growers have used the Japanese market to offload surplus product, or product they can ’t sell at a fixed price. Often that product is not what I call ‘Japanese grade ’at all. The best way to sell in Japan is to provide premium product. And I ’m not prepared to go ahead with anything less." By no stretch of the imagination is Ebonybrook a small operation, but Ken Young does not have ambitions to go into exporting himself. Although there are better returns if the marketing is conducted by the growers themselves, he is content to deal exclusively with exporters. “Being a grower or an exporter requires a high level of professionalism,” he offers. “There aren’t many who can wear both hats. And I ’m kept busy enough as it is." However, exporting through an agent means that it is not easy for Ken to receive direct feedback on his product. The market is foreign and the information filtered. As a result he now regards the exporters as the customer, while the real user remains distant. “Exporting is a very competitive, dog-eat-dog business. It’s so price-driven that the quality and perceptions at the other end don ’t get through to us,” he says. “It’s an ongoing problem, and not one I ’ve been able to make headway with. Sometimes I’d like to get to the other end of the chain and see what’s going on, but time doesn’t really allow it. Even though I’ve got up to 20 people working on the farm, Ebonybrook is still essentially a one-man band."


Future Plans Ebonybrook has a few exclusive lines that that Ken would like to promote and market as a premium product. “But being a grower who sells to exporters,” he says, “I’m finding it quite difficult to come to terms with how to do that. ”Most exporters prefer that their customers do not to see the grower’s name and address on the carton, for fear that the customers may buy direct. One idea that Ken entertains is the employment of a select few exporters and wholesalers to market his premium product. Another notion concerns the expensive individual labelling of bunches to achieve brand recognition. “We might do an initial saturation labelling of all the bunches in a shipment,” he says, “and then we ’ll pull back to carton labelling." A larger focus on premium product is a something Ken wants to work on for the future. Three of the exclusive lines they produce are selling at a premium price, but orders are greater than what can be currently supplied. The Challenges When Ken took over the management of Ebonybrook, he had to meet the challenges of changing from a production-driven enterprise to a market-driven operation. These issues still exist. “We’re constantly being told this is part of the fashion industry, and we have to respond to changes,” he says, “so if red ’s the colour next year, we have to have red wax. But they often fail to realise that it takes two to three years to change the product mix. It ’s one of the biggest problems we ’ve been faced with. And we ’ve overcome that by growing a huge range of wax — about 40 selections. “The bigger range means we ’ve got enough colours right throughout the season,”he says, “and if by some quirk of nature nobody wants that particular colour, then it is only a small percentage of your total production that ’s gone. Those growers who have only two or three types are really on a razor ’s edge." Another issue facing Ebonybrook is the size of the operation. Ken believes the enterprise is possibly the worst size imaginable. “We ’re not big enough to have a high volume and a small margin,” he says, “so we can’t compete with the high volume producers on price. And we ’re too big to be a ‘Mum and Dad ’ affair. This place is too big for that. We need a lot of labour. To go high volume, we ’d have to double our size, and to be a Mum and Dad affair, we would need to be about half our current size." To counter these industry quirks, Ebonybrook will concentrate on moderate volumes, better lines, and a premium price product. The demand for product is certainly present, and Ken intends to meet it. However, waxflowers are now grown worldwide and available almost twelve months of the year. “Really, it’s a filler flower,” he says. “You don’t put it in a vase by itself. It has to be something special to get 25 or 50 cents a bunch more than ‘standard wax’. And if you price it five cents too dear, you might not sell anything.”


Details of Farm Tour 3 – Mount Hallen Proteas

Address Lot 14 Edwards Road, Mount Hallen

Total Farm Size 150 Acres

Area under cultivation 20 Acres plus 10 Acres for Future

Farm History 18 Months Growth

Plans for the future Grow and Develop Unique Plants

Labour force 2 Full Time

Annual rainfall Not A lot

Soil type Sand

Soil PH Approx 6.5 - 7

Water source and quality Dam – Average Quality

Irrigation type Drip Irrigation

Key Crops Leucadendrons, Leucospermum, Xmas Bush, Proteas

Fertilisers used Native Osmocote

Key Pests & Diseases Hoppers, Nematodes, Borers

What management practices are in place Continual Observations of Pests and Diseases

Key Markets Wholesalers, Auctions, Export

What we have learnt from being in the business of growing native plants It is not as easy as it seams


Notes:


Notes:

Documents

Native Flower Seminar 2006 - Flower Knowledge Centre