of Medicinal Herbs - rdanorthernrivers.org.au · Import Replacement of Medicinal Herbs and Related Products A project of Invest Northern Rivers in partnership with the Area Consultative

Import Replacement of

Medicinal Herbs

and Related Products

A project of Invest Northern Rivers in partnership with

the Area Consultative Committees, the NSW Aboriginal Lands Council, the Department of Transport and Regional Services and the NSW Department of State and Regional

Development.

Import Replacement of Medicinal Herbs & Related Products Issues Paper

Prepared by Excel Consulting Group (Qld) Pty Ltd Page 2

Contents Introduction 5 Issues Summary 6

Key Issue Areas 9

Other Regions 9 Competitive Advantage 9 Coordinated Supply 10 Economics 11 Venture Capital 11 Infrastructure 12 Farm Returns 13 Role of Government –Services 14 Role of Government – Regulatory 15 Social 16 Regional culture 16 Leadership 18 Labour and attitude 19 Individualism and information 20 Environmental 21 Environmental standards 21 Agronomic factors 22 Regional 23 Climatic diversity 23 Regional images 24 Research & Development 25 Research process 25 Research direction 27



Market Trends 28 Manufacturers 28 Consumer trends 29 Marketing relationships 30 Price and volume 31 Production Capability 32 Volume and Value – Farm 32 Value adding - High End 33 Supply arrangements 34 Quality assurance 35 Business Structures 36 Industry model 36 Industry development managmt. 38 Indigenous Issues 39 Issues Summary 39 The Region in Context 41 Infrastructure 43 Infrastructure availability 43 Employment 45 Sustainability 45 Skill development 47 Education 50 Leadership and Motivation 51 Motivation 51 Leadership 52 Management 53 Management capacity 53 Human resources 54



Land 55 Land availability and suitability 55 Native title 55 Conflict resolution 56 External conflict 56 Business Structures 57 Business development model 57 Business development managemt. 58 Appendix

Australian Phytochemical Report -Dr David Leach

Industry Development Model



Introduction This paper and appendices is the first part of a three-part study into the potential for developing a medicinal herb industry across three regions of NSW. It deals with a number of issues surrounding two research questions. What are the major issues that will contribute to the establishment of a viable medicinal herb industry in the Northern Rivers, Australia’s Holiday Coast and the New England Regions? What are the major issues that will impact negatively on the establishment of a viable medicinal herb industry in the Northern Rivers, Australia’s Holiday Coast ad New England Regions? Information and data were collected by way of public meetings at Lismore, Kempsey and Armidale, a survey from attendees of public meetings, meetings with Indigenous people and visits to Indigenous Communities. Australian Phytochemicals Ltd were commissioned to provide a state of the nation report on current herbal products used in medicinal and cosmeceutical products and potential future products from endemic species. To fill out gaps, telephone interviews were made with a number of people in industry, retailing, universities, Indigenous Communities and government. While the brief asked only for the issues to be addressed, the outcomes were developed further into an Industry Development model. This model is considered to account for the diversity of opinion and inter regional cultural differences while maintaining a market focus. It may change somewhat after the Phase 2 market research and supply chain development studies are completed. Such changes are not expected to markedly affect the model. At the marketing end of the model it is suggested that the product vision be extended to include fresh chilled, frozen, dried and extracted herbal products. This is a considerable divergence from the brief –in conceptual terms – but had evolved from the Issues. In business terms it makes a lot of sense to do this and certainly at farm level it spreads a lot of risk. The report is structured on Key Issue Areas and issues within each Key Area are described separately. At the end of each issue there are defined Critical Success Factors. These are considered by the authors to be the origins of internal strategies that are essential to the development of the industry. The authors wish to thank the many people who assisted to organise the various meetings and those who spent so much time in giving their written responses.



Issues Summary

Key Issue Area Issue Critical Success Factors Other Regions Competitive

Advantage Coordinated Supply

differentiation of product using the natural climatic advantages.

selection of genotypes most suitable to the natural climatic and soil advantages.

establishment of a single desk marketing system that has contractual arrangements with manufacturers and the supply chain.

investment in infrastructure at a commercially viable level.

Economics Venture Capital Infrastructure Farm Returns Government Role

need to seek external capital and technology to meet market direction.

need to match investment with market quantification

technology review to determine the most appropriate technologies to suit the marketing strategies.

assessment within regions of existing and useful capacity. need to develop agronomic practices for “broadacre” type

production.

need to develop/select genotypes for highest active ingredient/ha.

need to develop an on farm diversity to reduce risk & ensure viable returns.

provision of an agronomist from the Dept. of Ag.

“selling “of Gov. services & financial support as being an integral part of the Industry Developmt. Process.



Social Regional Culture Leadership Labour & Attitude Individual & Information

develop regional pilot trials to demonstrate sustainable industry growth.

develop HR strategies to train individuals in group behaviour.

use optimists & promote success to overcome negative attitudes.

development of an Industry Leadership Development

strategy & implement it on a project rather than theoretical basis.

external project assistance from DSRD & Steering Committee.

negotiate with ATSIC on funding selected Indigenous

Projects on a new basis of employment. appoint an agronomist prepare submission t indigenous Land Corp. for pilot trial

funding. develop agronomic practices for lower labour inputs introduce work for the dole as a pilot trial appoint full time agronomist develop regional pilot projects controlled industry growth strategies to limit boom & bust group behaviour training to improve interaction, group

process development & communication Regional Climatic

Diversity Regional Image

Integration of climatic diversity as a marketing competitive advantage for range of varieties, width of window and long term product differentiation.

focus of R&D on highly differentiated endemic species.

marketing strategies for long term product innovation and market expansion

use regional image(s) to enhance competitive advantage

through “eco labelling”

connect marketing strategies to eco tourism & regional promotion strategies

develop e-commerce strategies particularly for regional businesses.



Research & Development Market Trends

Research Process Research Direction Manufacturers Consumer Trends

education of growers & others in the concept of the Res. Process & features & benefits of R&D outcomes

involvement of national & international commercial entities in R&D on highly differentiated endemic plants and plant extracts.

negotiation on the use of Cellulose Valley brand as part of the marketing strategy (as Pentium is used in computer marketing )

definition of the R&D needs of growers

development of strategic relationship with national and multinational herbal drug companies.

development of low claim products as cosmeceuticals (nutriceuticals?) using extracts that are further researched to prove safety and efficacy.

plant breeding programs for all selected species.

attraction of R&D funds from government and commercial sources at sufficient levels to carry out safety and efficacy studies for international acceptance.

need to develop an industry R&D & Marketing Levy

develop strategic alliances with major companies who use herbs and herb extracts.

focus R&D on specific product safety and efficacy.

develop standardised extracts and associated extraction technology

develop new products having proof of safety and efficacy for both mainstream and niche markets.

education of the value chain of meeting safety & efficacy standards while meeting consumer perceptions, needs & expectations.

industry information system that monitors consumer

trends and connects the information to supply forecast.



Market Trends

Marketing Relationships Price & Volume

development of formal vertical integration strategies &

contractual arrangements.

relationship marketing training along value chain.

development of formal relationships & market forecasts for stable production.

more data/information required on the total market as part of the development of a cohesive industry strategy.

assessment of this market value & volume with projected new products as per Dr Leach’s report.

investigation of export markets for existing & new products as part of an industry expansion.

Production Capability

Volume & Value Farm Value Add.-High End Supply Arrangements Quality Assurance

development of agronomic practices.

product differentiation to change the dynamics of competition.

long term R&D on new products.

development of benchmarks & standards of best practice for the whole demand chain.

attraction of a multi-disciplined extraction facility.

strategic alliance development between existing product manufacturers & the processor.

strategic alliances at international level with major end users of phytochemical extracts.

a structured supply system based on forecast of both

demand & supply changes that may occur due to normal seasonal variation.

market research to define existing relationships, volume & value parameters & strategies for opportunity capture.

development & implementation of a relevant QA system to facilitate market entry.

education of all value chain members in the relationships of organic certification, quality control, quality assurance & HACCP.

Business Structures

Industry Model

establishment of a marketing desk to sell to major retailers, food processors & herbal distributors.

attraction of a regional high tech entity having existing business.

solving all the issues previously described.

establishment of a Metaprocess to manage the Industry

Indigenous Issues

See Separate Table



Issue Competitive Advantage

This is a mixed issue with the main feature of the 3 regions being the climatic diversity allowing production from subtropical to alpine conditions. Other regions such as South Australia, Victoria and Tasmania are perceived to have advantages of established markets and production during cooler and wetter times of the year. Generally Other Regions are seen as collaborators who can share knowledge and experience. This is particularly highlighted by organic growers despite seeing themselves as being somewhat uncooperative. Alignment with manufacturers who use herbs and herbal extracts (Jurlique. Mediherb, Thursday Plantation) is seen as a means of reducing competitive activity. There have been some bad experiences where individuals have grown for other regions and the crop not accepted. The roles of the Universities (New England and Southern Cross) were seen as enhancers of competitive advantage from advice, knowledge, industry proximity and R&D.

Critical Success Factors

differentiation of product using the natural climatic advantages. selection of genotypes most suitable to the natural climatic and

soil advantages.

Key Issue Area Other Regions



Issue Coordinated Supply with Other Regions

It is thought that this may be hard to achieve due to the individualistic nature of growers and the lack of a coordinated marketing desk. There is some merit particularly if product is to be produced all year for extraction and where a critical mass is required for export. Considerable infrastructure development for storage, blending, extraction and transport would be needed to support a coordinated supply arrangement. There has been little support from buyers to achieve a coordinated supply. Buyers are considered to be fickle and opportunistic.


establishment of a single desk marketing system that has contractual arrangements with manufacturers and the supply chain.

investment in infrastructure at a commercially viable level.



Issue Venture Capital

There is a strong regional culture of conservatism in capital investment for new enterprises. This is shared in common with many other regions. Concern was expressed that an industry reliant upon dried product would not be able to compete with imports from underdeveloped countries. It would only be viable if the products were highly differentiated, further value adding was done and the volume was sufficient to provide a critical mass. There was some opinion that expressed an ease of capital raising if a strong business plan were developed. The report of Dr Leach clearly indicates that the market is strongly oriented toward standardised extracts and dried product of known quality. It would seem imperative that a considerable investment be made in a sophisticated extraction facility. This will become more definitive after market research quantification. Initial Investment is indicated at $3 - $5 million.


need to seek external capital and technology to meet market direction.

need to match investment with market quantification.

Key Issue Area Economics



Issue Infrastructure

Although Dr David Leach’s paper suggests that technology is readily available and only requires scale up, there was a unanimous stated need for:

drying facilities either as a regional/sub regional or on farm system. chilling and freezing capability would need to be developed as per

drying capability. In the New England there is a transport issue in that freight lines are sometimes difficult to connect to and airfreight is restricted in capacity. It appeared that the coastal strip is well serviced particularly with airfreight capacity from Coffs Harbour. Investment in technology within the regions will need to be at an enterprise level or an extension of existing capacity as may exist with the fishing, dairying and fruit-processing sector.


technology review to determine the most appropriate technologies to suit the marketing strategies.

assessment within regions of existing and useful capacity.



Issue Farm Returns

Serious commercial growers (1 acre of medicinal herbs) indicated that the returns per hectare would need to be in the range of $10,000 to $20,000 for viability. The returns were limited by:

inability to expand production due to quality and availability of

labour. intensity of labour in pest control limited a family farm growing

capability. lack of a drying facility (facilities) limited quantities handled. lack of agronomic advice from a specialised agronomist.

On the positive side:

herbal crops could supplement conventional farming. organic growing provided some advantages for marketing but

premium margins were hard to achieve. land was relatively cheap and available. culinary herbs could achieve up to $40,000/ha

Critical Success Factors need to develop agronomic practices for “broadacre “ type

production. need to develop/select genotypes for highest active

ingredient/ha. need to develop an on farm diversity of production to reduce risk

and ensure viable returns.



Issue Role of Government - Services

It was evident that growers did not perceive an active role for government. There was some criticism that the project was being driven “top down” and not “bottom up.” However there was some definition of the role of government in the areas of:

grant funding for R&D funds for regional economic development provision of an agronomist to develop commercial agronomic

systems.

Knowledge of the total scope of government support appeared to be lacking with government agencies such as RIRDC and CSIRO being treated as external to government.


provision of an agronomist from the Dept. of Agriculture. “selling” of government services and financial support as being

an integral part of the Industry Development process



Issue Role of Government – Regulatory There is a considerable number of issue elements in the area of regulatory requirements that may need to be addressed at least in part by a “whole of Government” approach similar to that developed for the North Coast Sustainable Aquaculture Strategy. Specific State Government regulatory considerations are: environment protection – EP&A Act- relating to plant species becoming

noxious weeds, processing facility requirements and control of endemic species.

National Parks and Wildlife licensing for the harvest of wild seed stock and genetic sampling of wild populations.

council requirements for Local Planning requirements for production, processing facilities and water consents.

Lands and Water Conservation requirements for water, land clearing and land use.

Urban Affairs and Planning for aspects of the Environment Planning Act and requirements for a “Statement of Environmental Effects.”

At the Federal level of Government there will be a requirement.

Therapeutic Goods Authority for registration of production facilities

claims for efficacy and safety and requirements for Good Manufacturing Practises.

National Occupation Health and Safety – National Industrial Chemical Notification Service for efficacy and safety requirements including natural products intended for export

Australia New Zealand Food Authority for food safety protection through food standards and codes of practice for food production.


need to develop an integrated Government strategy similar to that developed for the Aquaculture Industry.

need to ensure R&D and product developments are aligned to regulatory requirements.



Issue Regional Culture

There exists three distinct cultural - socio groups and within growers, two organic cultures and a non-organic cultural group. An understanding of these issues is extremely important to the success of business strategy acceptance and implementation. It is also important for the development of behaviour changing strategies within the HR component of the Strategic Plan. In the Northern Rivers is a well-informed group of growers most of whom are organic in orientation. A smaller group of non-organic growers is developing. The leaders of the organic growers have made a significant contribution to the development of the Australian Herbal Industry. The Northern Rivers growers tend to be small producers and express various levels of cynicism toward “yet another consultancy” aimed at “so called” industry development. This cynicism also arises from the “fly by nighters” who have enticed growers into various schemes and left them with investment, product and no markets. They cite the number of studies made and the lack of outcomes. There are some enthusiasts who acknowledge the past difficulties and scams but express a positive attitude. It will be important to select the participants and use success models in order to get a very influential group of organic growers to become involved. This also applies to other cultural aspects such as secrecy, lack of cooperation and internal competition. The Australian Holiday Coast participants, including the Indigenous Communities are optimistic and see Industry Development as a part of overall regional development in eco tourism and cultural activities. They appear to have been mostly protected (not entirely) from the “Raiders.” of the Northern Rivers. A selected few would embrace industry development strategies as a pilot development. The New England is the most commercially oriented region and probably reflects the historic large scale farming practises. They have had some difficult experiences but have a positive attitude toward industry development.

Key Issue Area Social




develop regional pilot trials to demonstrate sustainable industry growth.

develop HR strategies to train individuals in group behaviour. use optimists and promote success to overcome negative

attitudes.



Issue Leadership All regions indicated a lack of commercial leadership. Even manufacturers who had expressed interest in buying provided little leadership for industry development and had less than exemplary buyer behaviour. Leadership exists at an Association level - organic and non-organic. These are not commercial bodies but in the case of the organic growers there is a claim for “commercial networking through the website (www.organicherbs.com.au)” Lack of Commercial Leadership is common in agribusiness as was illustrated in a previous Northern Rivers Search Conference (Northern Rivers Region NSW Rural Plan - Search Workshop June 28, 2000.) This is a major limitation for strategy implementation. It may impose a long-term level of participation by the current Steering Committee and the proposed DSRD new position working as an Industry Development Strategist.


development of an Industry Leadership Development strategy and implement it on a project rather than theoretical basis.

external project assistance from DSRD and the Steering Committee.



Issue Labour and Attitude Although all regions suffer relatively high unemployment there are difficulties in obtaining suitable labour. Herb growing is relatively labour intensive and there are negative attitudes toward the agricultural work conditions. A significant point raised by some Indigenous leaders was that while CDEP was effecting some change in work habits and attitudes the lack of funds for physical resources impeded projects. ATSIC business funding was too oriented toward return on investment and did not allow for job creation in projects of high labour input having lower returns on investment. Some growers considered that the answer for large scale growing was in improved agronomic practises that reduced labour inputs. Conversely the Indigenous input was to get better/consistent markets, better prices and employ more people. Both seem correct.


negotiate with ATSIC on funding selected Indigenous Projects on a new basis of employment.

appointment of an agronomist.



Issue Individualism and Information Two statements from the Supermarkets to Asia publication:

were presented at meetings, discussed with individuals and used in the survey. The individualistic nature of the rural producer was considered to be a real factor. This was also considered to be a factor in “…other new industries - more and more jump on the band wagon until it crashes.” There was a strong opinion that most potential growers would hang back until the lead few were successful. This is a widespread observation in agribusiness.

Distribution of information and perception of usefulness were related issues and in turn were related to regional culture issues. Large-scale growers need an information system for production techniques and market trends. There was an expressed body of opinion that the Internet would assist in a “sharing of knowledge.” Given the above there is probably a substantive role for an agronomist in facilitating information flow and bridging the gap between “cottage industry advice” and large-scale production needs.


appointment of a full time agronomist development of regional pilot projects controlled industry growth strategies to limit boom and bust. group behaviour training to improve interaction, group process

development and communication. establishment of a whole of industry website with a relatively

high level of commercial information including national and international market trends.

“Developing Successful Niche Agribusiness Exports”



Issue Environmental Standards

There appears to be a large gap between the understanding of an environmental management standard (ISO 14000) and an organic production system. While these have many common elements they are different in intent and application. Several regions are now developing regional environmental management plans using ISO 14000 base. This standard has been adopted in the Northern Rivers by the Main Camp Tea Tree Plantation. This attitudinal and educational gap may limit a “whole of environment” approach to regional development. The gap also exists in a similar form at government level.


develop an education strategy on environmental standards. develop regional policies for environmental management

systems

Key Issue Area Environmental



Issue Agronomic Factors Within this overall issue were many interactive elements of agricultural practises and their environmental impact. The market trend toward organic production raises the elements of:

inconsistencies in certification pollution from neighbours cost of compliance for certification.

All production systems had common elements of:

efficient use of water non chemical/minimal chemical use in pest control potential “escape” of species. aversion to GMO plant material

Water supply is a major agronomic factor that will impact on all agricultural enterprises. This is also an issue with respect to changing weather patterns and El Nino effects. While water allocation is under a State Development plan there may be a need to have trade offs between water use for herb production and other agricultural activities. In the longer term the gene stock of endemic plants will need to be surveyed and breeding programs introduced similar to those for tea tree, lemon myrtle and lemon scented tea tree. This opens opportunities for R&D, agronomic practise development and plant nurseries.


appointment of an agronomist to assist in production system development.

develop regional policies for environmental management systems.

develop low cost systems for organic certification as used in other industries for ISO 9000 certification.

develop regional water requirements and integrate with water allocation plans

define the endemic species gene pool and design long term R&D program and breeding plans



Issue Climatic Diversity

This was seen as one of the strengths of the project in that it allowed for an integrated approach to using the climatic diversity (tropical to alpine) for competitive advantage. Regional diversity has been exploited by Mediherb who source material from farms located between the Darling Downs and Southern Tasmania. If a broader Industry Model were developed to include fresh and frozen culinary herbs climatic diversity would provide a wide seasonal windows. In addition this window would coincide with a Northern Hemisphere winter period if fresh and/or frozen markets were available and accessible. In the longer term the R&D direction suggested by Dr Leach (see his report in this paper) whereby nutriceuticals, cosmeceuticals and pharmaceuticals extracted from endemic plants would provide considerable market differentiation and allow exploitation of climatic diversity.


integration of climatic diversity as a marketing competitive advantage for range of varieties, width of window and long term product differentiation.

focus of R&D on highly differentiated endemic species. marketing strategies for long term product innovation and

market expansion.

Key Issue Area Regional



Issue Regional Image Despite the diversity of the project area, Tweed - Port Macquarie -Armidale - there was a surprising consistency in the perception of regional image(s):

“pristine - low risk of chemical contamination of water or foodstuffs” farming education resources a relaxed environment “it is seen as rather unspoilt and clean.”

The common purpose was seen as the potential to integrate an industry into the Eco Tourism for internal regional growth. This is certainly being done in the Kempsey Indigenous projects and could provide a model for extension into other areas. The tyranny of distance may operate in the New England

In the development of an Industry Development Model it was seen that a range of local “eco labelled” products that included herbs and herbal extracts could be sold at a local and regional level. These markets could also become test points for innovations, product concepts and market research. One respondent suggested how the Internet could be used as an "exchange."


use regional image(s) to enhance competitive advantage

through “eco labelling.” connect marketing strategies to eco tourism and regional

promotion strategies. develop e-commerce strategies particularly for regional

businesses.



Issue Research Process

There appears to be a limited understanding of the Research process. Opinion ranged from - “you know it all” to virtually “we know so little.” The role of potential customers in R&D was also interesting in terms of response:

This range may explain why there are so many substantial and erudite publications on herbs and herbal extracts but little translation into strategy. This has a strong relationship to the culture - strategy conflicts previously described. A notable feature of the R&D Leadership has been the promotion of the Cellulose Valley concept, which set out to connect idea to commercial reality. This has strengthened relationships with herbal product manufacturers and led to the formation of the joint venture Company, Australian Phytochemicals. The herbal community perception is that Cellulose valley “promised a lot but delivered little." There may be a need for a stronger regional public relations exercise for Cellulose Valley. The Research Process needs to be defined on a market-oriented basis and given a substantial boost through RIRDC, R&D Start Grants and Commercial investment. The Cellulose Valley brand could be used for prestige development in both national and international markets and would revitalise the concept. The basis for product streams in R&D is contained in Dr Leach’s report. His model (see Fig. 1) provides for a short and long term Research Process that could be integrated with the Industry marketing plan.

Key Issue Area Research and Development

“Now you’re talking! Their financial contribution should be substantial, but will it be? I doubt it.”

to

“They are your market, dope!”




education of growers and others in the concept of the Research process and features and benefits of R&D outcomes.

involvement of national and international commercial entities in R&D on highly differentiated endemic plants and plant extracts.

negotiation on the use of Cellulose Valley brand as part of the marketing strategy (somewhat like the way Pentium is used in computer marketing )

definition of the R&D needs of growers



Issue Research Direction

The emphasis of R&D is toward value adding processing and market research for all three-market segments - cosmeceutical, pharmaceutical and nutriceuticals. In fact there was a good connection between the product streams of Dr Leach’s report and industry expectations.

There is a strong reluctance of growers to finance R&D. As quoted “usually the farmer, who does all the hard work, gets the least with the most money going to consultants and the middle men.” Despite this reluctance to invest there is a strong expectation to have equity at all points of the value chain. Reluctance and expectation need to be bridged.

In the recent report of Wohlmuth, Oliver and Nathan (2002) (See Dr Leach’s paper for summary) some 10 herbal products represent about 60% of the Australian market. R& D is required for new highly differentiated product using new species. In parallel is the need for genetic improvement in selected species including those used for culinary purposes. Intellectual property exists with respect to various products and processes. The historic indigenous use of and methods of application for endemic species is raised in Dr Leach’s paper. At present there are few methods available for the protection of such IP. The new innovation patent law may be a mechanism to explore for IP protection. This may be difficult to achieve on historic grounds as patents exist for the active ingredients of some endemic plants e.g. Old Mans Weed used in traditional medicine.

Critical Success Factors development of strategic relationship with national and

multinational herbal drug companies. development of low claim products as cosmeceuticals

(nutriceuticals?) using extracts that are further researched to prove safety and efficacy.

plant breeding programs for all selected species. attraction of R&D funds from government and commercial

sources at sufficient levels to carry out safety and efficacy studies for international acceptance.

develop mechanisms or use existing mechanisms for the protection of IP

need to develop an industry R&D and Marketing levy.



Issue Manufacturers

There are two distinct manufacturers of herbal medicines:

those who buy dried product and solvent extract for their own herbal formulations.

those who buy standardised extracts for blending into herbal medicines.

In the cosmetics and cosmeceuticals there is a similar range but the emphasis is on semi refined or refined plant extracts that may be safely added to consumer products. In nutriceuticals, with the exception of some functional foods, there is a requirement for refined products to have defined safety and efficacy. Standardisation of active ingredients is a very strong trend in all segments. This is at odds with those involved in the holistic approach to herbal medicines. They consider the whole herb or herbal extract must be taken for efficacy. The influence and demand of regulatory agencies generally opposes this holistic approach, however merited, from gaining a mainstream influence. It does however occupy a market niche.


develop strategic alliances with major companies who use herbs and herb extracts.

focus R&D on specific product safety and efficacy. develop standardised extracts and associated extraction

technology. develop new products having proof of safety and efficacy for

both mainstream and niche markets.

Key Issue Area Market Trends



Issue Consumer Trends There appears to be little understanding or knowledge about the front end of the market. Some growers have carved out niches with small users of herbs and extracts Specific inputs into consumer trends were:

dissatisfaction with orthodox medicines. perception of “clean and green’ USA trends that may be detrimental. organic products free of chemicals. growth of alternative medicine industry. market share growth of major companies.

The relationship between manufacturers, retailers, consumers and regulatory agencies is not clearly understood. The Therapeutic Goods Authority (TGA) appears as an ogre who adds cost but no value. This perception overrides that of consumer protection through safety, efficacy and good manufacturing practise. (GMP)


education of the value chain of meeting safety and efficacy standards while meeting consumer perceptions, needs and expectations.

an industry information system that monitors consumer trends and connects the information to the supply forecast.



Issue Marketing Relationships These relationships are issues at several levels according to anecdotal history. A section of the organic growers aggregated to form a single marketing desk. This functioned successfully until individuals broke away and tried direct selling under the group - a common Australian agribusiness phenomenon. Eventually the leader grew tired of gluing the group together. Large New England growers were contracted by herbal medicine manufacturers to grow specific herbs. At harvest the supply was not required so the growers had to look elsewhere. The same growers experienced payment difficulties. The Appendix of Dr Leach’s report indirectly alludes to the need for an industry to develop formal vertical integration relationships. Similarly within each horizontal level of the integration there is a need for addressing and ameliorating the destructive behaviours of the associates to gain market leverage through critical mass and consistency of delivery.


development of formal vertical integration strategies and contractual arrangements.

relationship marketing training along value chain. development of formal relationships and market forecasts for

stable production.



Issue Price and Volume This project is aimed at reducing the importation of herbs and herb extracts. The market value has been estimated at about $50 million. The herbal medicine retail value is estimated at c. $120 million dollars. As the value of herbs and herbal extracts represents 10 - 20% of the ex factory price and the mark up at retail an industry price structure could be predicted as follows:

$ Retail Value 120,000,000 Wholesale Value 60,000,000 Distribution 15,000,000 Ex Factory 45,000,000 Herbal Value 4,500,000 (10%) to 9,000,000 (20%)

At returns of say $20,000/ha the industry could expect to occupy between 225 and 550 hectares for medicinal purposes. As the industry does not/will not occupy 100% of the supply but 30 - 40% the value could be $1.5 to $3.0 million. As herbal products are also used in other market segments the actual market would be much larger.


more data/information required on the total market as part of the development of a cohesive industry strategy.

assessment of this market value and volume with projected new products as per Dr Leach’s report.

investigation of export markets for existing and new products as part of an industry expansion.



Issue Volume and Value Farm

There appears to be no limit to the total volume of product that can be produced. There are limits to the volume a specific grower can produce as a family unit - suggested to be 2 -3 ha. However large numbers of small growers or growers who use herbs as a cash crop could produce the estimated market needs of $4.5 to $9.0 million/year. With a positive R&D outcome on plant productivity and the development of commercial organic and non-organic agronomic practises the only farm problem is sustainable production at competitive prices. The introduction of new species as per Dr Leach’s report could change the dynamics of competition but would probably take up to 5 years to achieve fully commercial status as highly differentiated products. This is contrary to opinion expressed in RIRDC publication 0051 by Brian Chung and Kean International Marketing Inc. (July 2000) A parallel exists with the development of the Tasmanian plant extract industry. It could become the subject of an industry study tour and be used as a benchmark. There is also an interesting association between Tasmanian essential oil producers and major exporters.


development of agronomic practises. product differentiation to change the dynamics of competition. long term R&D on new products. development of benchmarks and standards of best practise for

the whole demand chain.

Key Issue Area Production Capability



Issue Value Adding - High End

Some aspects of value adding have been previously described and the focus of this issue is on the application of extraction and separation technology. In the RIRDC Publication No 00/51 “Natural Plant Extracts Export market Opportunities in the USA “ (Brian Chung, Botanical Resources and Kean International Marketing Inc.) there are a number of references to supercritical carbon dioxide extraction. This is a relatively sophisticated technology but confers considerable competitive advantage for purity and processing protection. There are a number of other technologies that may be used in conjunction with or in parallel to supercritical. These are cryogenics, steam distillation, solvent extraction, microwave and ultrasound. In the appendix of Dr Leach’s report a commentary is provided on RIRDC Report No. 00/173 (New Pharmaceutical, Nutriceutical and Industrial Products.) In this critique the author Chris Oliver of Blackmores, makes the point “This means that processing (a rich potential source of IP) should be included in Business Models.” A point overlooked by RIRDC and the rapporteurs. The indications are very strong for a cohesive commercial development of extraction technologies within the business development model.


attraction of a multi-disciplined extraction facility. strategic alliance development between existing product

manufacturers and the processor. strategic alliances at international level with major end users of

phytochemical extracts.



Issue Supply Arrangements

Supply arrangements have been a major limiting factor for all segments of the herb industry. The Industry Associations are (rightfully) not for profit and deliver service to members. Retail buyers of herbs, particularly of organic product, find the fragmentation, inconsistency of quality and difficulties of dealing as major limitations for market development. As noted previously attempts to overcome these supply difficulties have not been greatly successful. The Biloela Herb Coop in central Queensland, some Victorian and some Tasmanian growers are trying to overcome these difficulties. As defined by one grower - the major issue contributing to a viable industry is “Development of a buying system that provides a consistent, known market for growers. A price premium for high quality, organically grown herbs.’ On the contra side those growers who have in good faith grown specific products for herbal medicine companies and been left with the crop indicates organisation at manufacture and retail level may be an issue. This will be pursued further in the market research together with current import arrangements.


a structured supply system based on forecast of both demand and supply changes that may occur due to normal seasonal variation.

market research to define existing relationships, volume and value parameters and strategies for opportunity capture.



Issue Quality Assurance

This is going to become a difficult issue as there appears to be confusion about the relationships of organic certification, quality control and quality assurance. If as suggested, a wider industry is developed and supply arrangements for dried, fresh or frozen producers are in place the retail industry will require both quality assurance and HACCP procedures to be applied. A major culture shift would need to occur. This issue applies equally to Indigenous growers. There is a QA model being used by the North Queensland Essential Oils Coop and the Lockyer Valley Vegetable Exporters Group (LVEG) In these cases the QA/HACCP is held by the parent organisation and growers are treated as a subset. In this way grower’s costs are minimised, as is the level of recording.


development and implementation of a relevant QA system to facilitate market entry.

education of all value chain members in the relationships of organic certification, quality control, quality assurance and HACCP.



Issue Industry Model

The discussions and surveys strongly indicated that Cooperatives were the preferred business structure. The focus at Indigenous grower level was on the transition of a CDEP initiative into a commercial venture. A point previously raised in this paper was that of growers being involved in the equity of the business structures without making financial inputs. This difficulty occurs in many rural sectors. In considering the historic development of the industry and the issues confronting the establishment of a structured industry a number of criteria were set down for the design of an Industry Development Model. These summarised many of the issues and were:

a market orientation through a single selling desk for fresh, frozen

and dried products.

a high technology entity having a strong market orientation for standardised and/or purified herbal extracts.

an R&D connection to support long-term product development and

supply proof of safety and efficacy.

a well-organised series of cooperatives and/or proprietary entities, regionally located but contractually and equity connected to the selling desks.

participation by growers, grower groups and communities as

owners of the cooperatives. suitable for Indigenous involvement as parallel development of

cooperatives or as part of a single cooperative.

Note: Although the product diversity is greater it was similar to the successful model used in the rice industry and that currently evolving for the tea tree industry.

Key Issue Area Business Structures



accommodation of existing business without change to current local

or regional business activities.

linkages to the existing industry associations.

linkages to other regions for access to or supply of products.


establishment of a marketing entity to sell to major retailers, food processors and herbal distributors.

attraction of a regional high tech entity having existing business. solving all the issues previously described. establishment of a Metaprocess to manage the Industry

The INDUSTRY MODEL is illustrated n the Appendix



Issue Industry Development Management

If this Industry Development Model is considered to be adequate for the purpose of industry development the number of Development Issues need to be addressed:

Who will be the Industry Development Steering Committee?

How will the Selling desks be developed?

What is the role of Government including the Area Consultative

Committees?

What is the role of Private Enterprise and at what point is management transferred?

How will the Regional Entities be formed and who will manage the agenda?

Where and How will the Indigenous involvement begin and who will drive the agenda?

What else???



Indigenous Issues Summary

Key Issue Area Issue Critical Success Factors Infrastructure Infrastructure

Availability

need to fund underdeveloped communities need to develop a cooperative approach to

resource sharing need to have formal business instruments to

prevent conflicts relating to shared infrastructure

Employment Sustainability of employment

connect CDEP to seamless entry into business enterprise

use incremental replacement of CDEP positions with wage position

review Job Network policies and procedures for relevancy

provide accommodation for some CDEP workers develop meaningful work that matches male and

female work ethos develop high labour input enterprises increase CDEP access for new enterprises

Training and Education

Skill Development

Education

need to extend on site skilling with TAFE participation

need to develop on the job management training need to develop cross enterprise and cross

community exchanges need to address school to work transition and

attitude development need to involve industry expertise exploration for the development of an indigenous

centre for higher learning integration of existing on the job TAFE training with

the college concept

Leadership and Motivation

Motivation Leadership

establishment of a mentoring program for a specific outcome orientated project

day to day support during the development phase to create internal confidence and skill

need to develop a leadership program across all

communities that is outcome orientated need to introduce leadership concepts within the

traditional leadership framework that will sponsor and encourage situational leadership



Land Land Availability

and Suitability

determine the availability and suitability of land required for establishing pilot and commercial trials for herb growing

Conflict Resolution

External Conflict

strategic placement of funding and resources to minimise external conflict

promoting involvement of all interested organizations in the development of the regional industry framework

Business Structures

Business Development Model Business Development Management

development of business structures that are compatible with the industry

development of models suitable for local and regional development

long term R&D on new products. development of benchmarks & standards of best

practice for the whole demand chain.

ownership and management skills for running cooperatives

who will manage the process? who will lead the process? how will this be done?



Indigenous Issues The Region in Context

Indigenous Community organisations in the Cellulose Valley are well placed to take advantage of opportunities in the infant herb industry. The need for sustainable employment opportunities and skill development coupled with the high availability of land based and human resources should facilitate participation in a diverse array of industry opportunities, including raw production, processing, marketing and industry training.

Maximising participation in the industry will require a concerted and coordinated approach to ensure that community organisations are well informed on industry development, potential opportunities and infrastructure and training requirements. Presently little information on the herb industry is available to communities resulting in a limited capacity of organisations to assess potential opportunities and capacity requirements. It is recommended that industry information packages be developed to facilitate greater understanding of industry requirements and opportunities. This may also include scheduling a number of information sessions or workshops.

Skill development, both industry specific and general agricultural and horticultural training is seen to be the limiting factor in establishing enterprises, with funding and business management capacity also seen as a critical issue in areas where enterprise development has yet to take place.

Organisations where enterprises are already established (no matter what type) are better placed to take up opportunities immediately. The success of these organisations can be attributed to high management capacity, minimal internal or external conflict and motivation. Organisations with high management capacity also displayed a higher capacity to capture funding for enterprise development. These organisations are well placed to undertake feasibility studies and business planning once a direction for development is identified.

Other organisations, due to a myriad of factors, have come to a standstill with regard to enterprise development however, are keen to pursue development opportunities with a clear vision to establishing a viable economic base. These organisations will require intensive investment in terms of training and infrastructure and can be identified as ‘high need’ areas for enterprise development.



Six communities within the Cellulose Valley were visited during field consultations. These were:

Yaegl LALC and Ngungerra Aboriginal Corporation Birrigan Gargyl LALC Coffs Harbour LALC Nambucca CDEP – Ngurrala Aboriginal Corporation Dorrigo LALC Guyra LALC

Other communities were represented at the public meetings in Grafton and Kempsey. All organisations expressed some level of interest in being involved in the herb industry, with more interest generated in areas where setup costs and planning considerations were seen to be lower.

Interest in the industry was primarily focused on Indigenous herbs, however improved knowledge and identification of opportunities in herb production should see greater interest generated in European herb production and/or processing.

Interest was also commonly generated around primary production, however, as with species selection, knowledge of the full array of industry opportunities should provide organisations with the scope to fully assess the development potential of their resources.

A diversity of issues facing Indigenous organisations need to be addressed in determining investment priorities for the region. This diversity can largely be attributed to varying levels of economic development, which to some extent also reflect underlying issues within each sub-region or organisation.



Issue Infrastructure Availability

Availability of appropriate infrastructure is limited, with only a small number of organisations possessing the infrastructure required for immediate transition into the industry.

Priorities for infrastructure development and funding may need to account for the prevailing social and economic climate in each sub region. Whilst it is not considered productive or appropriate to exclude or limit support provided to sub regions with existing infrastructure and enterprise development, it is recognised that far reaching social and economic benefits can be attained by focusing infrastructure resources in areas where little or no enterprise or economic development exists.

Where practicable, semi-transportable or shared permanent infrastructure should be considered as an alternative to mutually exclusive installations. This will provide greater economies of scale for investment in addition to promoting greater integration and cooperation between industry participants.

For example:

Two separate organisations undertaking crop production for oil processing will only require extraction equipment on harvest. A mobile unit, or the means to transport raw product to a centralised extraction unit will allow parallel development of the enterprises in addition to minimising competition for limited funding resources.

It is recognised that such resources be strategically placed and memoranda of understanding developed to minimise potential conflict between organisations. Resource sharing arrangements may also be implemented in the context of an Indigenous rural college located centrally in the region. Successful models for rural colleges exist in the Northern Territory and include Katherine Rural College. The college could provide a centralised location for training programs in addition to providing a site for trail crops and shared infrastructure.

Key Issue Area Infrastructure




need to fund underdeveloped communities need to develop a cooperative approach toward resource

sharing and labour usage. need to have formal business instruments to prevent conflicts

relating to shared infrastructure



Issue Sustainability of Employment

There is a critical need for sustainable employment opportunities for Indigenous people in the Cellulose Valley region, particularly for youth.

Limited employment opportunities in the region have seen Indigenous work opportunities largely dependent on CDEP. Whilst CDEP will provide an important platform to establish a labour force to drive industry and indigenous enterprise establishment, there is a danger of indigenous enterprises maintaining CDEP as the core wage component in the long term.

Enterprises need to be established with a vision to relinquish CDEP positions on an incremental basis as the enterprise develops. CDEP replacement should be introduced once enterprise turnover is able to incorporate a wage component. Initial replacement may focus on provision part time positions with full time positions being provided to key personnel as development dictates.

Incremental replacement of CDEP positions with waged positions (part or full time) will free up CDEP resources for further projects as well as promote sustainable business development and employment opportunities.

Only two of the six organisations visited had a large CDEP employment base. The other four had small cells with limited placements available. Concern was expressed that new projects would be inhibited without additional positions being made available.

There maybe scope for Job Network to provide wage subsidies in the business establishment phase. Job Network currently subsidises enterprises that take on Indigenous employees, however, there is a large degree of dissatisfaction with the current format of the service with few or no real employment opportunities having been created by the scheme. Employers have a tendency to retain employees for the duration of the subsidy, releasing them at the end of the six-month duration of the scheme. Limited employment opportunities in the region have also resulted in placements with little or no job satisfaction and limited skill development opportunities.

Key Issue Area Employment



Both in areas where CDEP including small cells exist and areas where no CDEP is active, Job Network could be promoted to include placements in developing Indigenous enterprises. Placements should coincide with on site skill development programs and may provide for additional days employment in addition to CDEP. In this capacity, Job Network may have the capacity to promote transition from part time employment to full time employment with greater potential for achieving sustainable employment outcomes.

Provision of accommodation for workers was seen to be an issue in some areas, especially those areas where a small CDEP cell is operational and has been only for a short time. If more accommodation was provided then there is potential to rapidly increase the labour force in these areas. This is the case where people are interested in moving back to their traditional areas but have not been able to do so due to low employment opportunities and particularly, a lack of suitable accommodation.


develop high labour input enterprises (if appropriate) increase CDEP access for new enterprises connect CDEP to seamless entry into business enterprise use incremental replacement of CDEP positions with wage

positions review Job Network policies and procedures for relevancy provide accommodation for some CDEP workers, where

appropriate develop meaningful work that matches community work ethos.



Issue Skill Development

There is a large variation in skill levels across the region with respect to Herb industry establishment. There is a desire for quality training to be conducted on site in association with enterprise development.

A very small number of organisation in the region have an appropriate skills base to support enterprise development in the herb industry, and there is a need for training in agriculture, environmental management, business management, marketing and industry specific training to enable most organisations to participate in industry opportunities.

The business establishment phase should incorporate training modes that allow skill development and enterprise establishment to proceed in unison. This will necessitate the development and delivery of appropriate training programs that address the core skill deficiencies and requirements of each enterprise participant and allow for flexible on site delivery of training modules.

Key Issue Area Training and Education



Case Study - Dhugamin CDEP, Scrub Hill Community Farm, Hervey

Bay, Queensland. Development of the Value Added Tea Tree enterprise has incorporated practical enterprise training utilising a mentoring approach. Trainers are based on site with participants for four days a week over a six-month period. Training modules are nationally recognised and are provided on an individual and team basis depending on the aptitude of each participant. Whilst participants must display proficiency in whole module content, modules components are not delivered in a sequential format, but on an enterprise needs basis. This model allows participants to develop enterprise activities in unison with attaining training outcomes. The training model has been developed with a vision to ensuring appropriate and efficient enterprise management skills are practiced from ‘establishment to market’ in a supportive learning environment. Identification of leadership skills within the group is also seen as an outcome of training, with early identification of key personnel allowing ‘up skilling’ necessary to facilitate training of new participants once mentor support is withdrawn.

Skill development may also incorporate cross enterprise exchanges, where members from one organisation are placed within an equivalent organisation (mainstream or Indigenous) for a brief period or group field trips are conducted. Such exchanges can provide opportunities for skill development as well as allowing participants in a growing enterprise to view established enterprises in operation. Field visits have been utilised in the Scrub Hill training model and have been found integral in promoting self-determined enterprise vision and renewed team motivation.

Indigenous youth are the highest unemployed labour resource in the region, with low employment opportunities resulting in significant social and cultural impact. Most organisations in the region expressed a concern for their youth and stressed the importance of integrating youth into new enterprise development and training opportunities.

Identification and implementation of appropriate school to work transition programs can assist in addressing the skill development needs of youth in the region in addition to providing new enterprises with a skilled labour force into the future. Development of a coordinated approach to youth unemployment could include incorporating youth employment initiatives into new enterprises as well as providing opportunities for work experience while students are still with in the school system.




need to involve industry expertise need to extend on site skilling with TAFE participation need to develop on the job management training need to develop cross enterprise and cross community

exchanges need to address school to work transition and attitude

development cells need to be given CDEP support for administration training

as part of general community development. need to develop a new system for equitable resource allocation.



Issue Education

Resource sharing arrangements may also be implemented in the context of an Indigenous rural college located centrally in the region. Successful models for rural colleges exist in the Northern Territory and include Katherine Rural College. The college could provide a centralised location for training programs in addition to providing a site for trial crops and shared infrastructure The “College” need not only be agriculturally oriented. It may well be possible to connect such an entity with the two existing universities at Lismore and Armidale.


exploration for the development of an Indigenous centre for higher learning

integration of existing on the job TAFE training with the College concept

building linkages between training and education with employment.

There is a lack of both higher education to support technical and managerial skills and Indigenously oriented higher facilities.



Issue Motivation

Lack of motivation is a large issue in some communities, particularly where no enterprise development has yet to taken place.

It is recognised that motivation levels are significantly higher in organisations where enterprise development has been successfully pursued. Strong leadership and management capacity appears to be the key in these areas, resulting in a higher motivation level within the community. There will need to be a considerable input into these areas of low motivation. This will require “Showing How To” rather than just “Telling How To” through the use of demonstration trials, close mentoring and encouragement from within and without the communities.

Critical Success Factors establishment of a mentoring program for a specific outcome

oriented project day to day support during the development phases to create

internal confidence and skill

Key Issue Area Leadership and Motivation



Issue Leadership

In some areas either indecisive leadership or an over abundance of leaders has inhibited the uptake of enterprise opportunities and lead to stagnation within the community. Resolution of internal conflict and leadership issues is seen as the key to overcoming this stagnation and pushing ahead with economic development opportunities. Selection of individuals for future leadership roles needs to be developed within the historic cultural constraints that designate those who would be leaders. External encouragement is also required to assist those who have the courage to adopt a leadership role. There may need to be a change in social attitude to allow the adoption of the concept of the Situational Leader as being distinct from the Traditional Leader without the two appearing to be in conflict.


need to develop a leadership program across all communities

that is outcome oriented need to introduce Leadership Concepts within the traditional

leadership framework that will sponsor and encourage situational leadership

Strong and united leadership is require to facilitate the decision making and planning process and in empowering the community to take advantage of prevailing enterprise opportunities.



Issue Management Capacity

Management capacity is an important issue in terms of both project management and access to funding.

A high management capacity has lead to some organisations successfully running multiple projects and enterprises. It has also allowed these communities to access a greater diversity of grant funds and avenues for support through greater knowledge of funding institutions and processes.

Management capacity can be seen in two separate contexts: a. Skill levels of management b. Resource levels of management

Skill levels are extremely varied across the regions, with some communities having only one or two highly skilled individuals. Increasing the responsibilities of these individuals is not seen as a viable or sustainable option, as current roles and responsibilities would suffer, as would the performance of the individual. Facilitating economic development opportunities within these organisations will require additional skilled human resources, particularly in the area of project coordination.


need to have a systematic management development program and succession planning across all communities.

need to adopt successful components of the “Pathways” model.

Key Issue Area Management



Issue Support Human Resources

Funding new staff positions, especially coordinators for new projects are seen as integral to allowing these organisations to participate in economic development opportunities. Low staff availability for new projects was mostly prevalent in Local Aboriginal Land Councils. Organisations where CDEP hosts are operative have a greater human resource capacity to manage new enterprises.


need a system for resourcing according to needs.

Several organisations visited possessed high skill levels but lacked available human resources to initiate new projects successfully.



Issue Land Availability and Suitability

Many of the LALCs have large quantities of land, in many cases divided into smaller blocks. Several other organisations have committees consisting of several LALC representatives and through them access to land could be attained for enterprises development.

Land suitability assessments will need to be built into the initial planing stages of industry development to provide communities with an indication of the potential in their land based resources. Expert assistance in determining the potential of land-based resources can be provided by the Department of Agriculture and the Rural Industries Research and Development Corporation, and CSIRO may be able to provide information on plant varieties that perform in the prevailing soil and climatic conditions.

The capacity of some organisation to participate in the industry will be dependent on the outcome of pending Native Title claims.

Several other communities require information on the structure of any regional organisation or cooperative planned for development before they are willing or able to make decisions on the nature and extent of their involvement.


determine the availability and suitability of land required for establishing pilot and commercial trials for herb growing.

need to link CDEP to LALC to ensure community and economic development.

Key Issue Area Land

Land availability and suitability for industry activities is varied across the region.



Issue External Conflict

Existing areas of conflict were identified where inequity was perceived in resource and funding distribution across the region.

Whilst factors contributing to inequitable distribution of resources and funding were largely felt to be associated with political sway, it should also be recognised that management capacity, decision making processes and internal conflict within organisations can inhibit success in accessing funding and resources required for development.


strategic placement of funding and resources to minimise external conflict.

promoting involvement of all interested organisations in the development of the regional industry framework.

Key Issue Area Conflict Resolution

Potential and existing conflict between organisations interested in participating in the industry will need to be clearly identified and addressed in the planning stage of proposed industry development.



Issue Business Development Model

The Proposed Industry Development Model does not distinguish between Indigenous and non-Indigenous business structures. In fact it allows for both separate and integrated structures to co-exist. Economic and social factors will eventually shape the way business is organised at the enterprise level. During the course of the study the SHARED VISION Inc. concept was presented. As this evolves the “Economic Unit” currently supported by the “E-TEAM” could adopt a model compatible with the proposed Industry Development Model. This may be transferable to other regions. At Kempsey there appears to be the potential to use a model that integrates eco-tourism, production as a CDEP and TAFE training as an emerging business development structure. An intermediary form of this was described for Tingha but appears to be outside a market driven economy. (This could be changed). The potential to flow business development from CDEP to Enterprise is probably the most cohesive and economic model – provided it is adequately resourced. However it must be clearly understood that this cannot happen in the absence of good management and technical skills. The issues of capital and the business development policies of ATSIC need to be revisited to finance such job creating business development.


development of business structures that are compatible with the Industry

development of models that are suitable for local and regional development.

ownership and management skills for running cooperatives. need to access business development funding from all

government agencies (e.g. Indigenous Small Business Program)

Key Issue Area Business Structures

Within each region there is a need to establish and manage a process for business development within an Industry Development Model.



Issue Business Development Management

The above issues illustrate a considerable gap between communities in business ability. Participation in an overall Industry Development Plan requires the establishment of a business development process and management of the process to ensure:

over time communities have equal opportunity to participate if they

wish resource allocation is equitable to achieve measurable outcomes the training is funded adequately and adapted to needs as a

recognised qualification conflicts are resolved quickly by an arbitration process development is in line with overall Industry development

It is proposed that commercial trials begin on a small scale with advanced communities and the experience be transferred under “Train the Trainers” to other communities.


who will manage the process? who will lead the process? how will this be done?

Within each region there is a need to establish and manage a process for business development within an Industry Development Model.

Documents

of Medicinal Herbs - rdanorthernrivers.org.au · Import Replacement of Medicinal Herbs and Related Products A project of Invest Northern Rivers in partnership with the Area Consultative