Issue No. 16 / SPRING 2014

Pip Job - winner of the 2014 RIRDC Rural Women’s Awardfull story pg. 4-5

IMPROVING ACCESS TO MINOR USE CHEMICALS FOR AGRICULTURE pg. 3

NEW AUSTRALIAN MEASURE FOR ENVIRONMENTAL PERFORMANCE pg. 7

HEALTHY FUTURE FOR ANCIENT QUINOA pg. 10-12

READY-TO-GO LUCERNE RESEARCH PUTS GROWERS IN CONTROL pg. 16

Message from the Managing Director ................. 2

Improving access to minor use chemicals for agriculture .............................................. 3

Social challenges inspire 2014 Rural Women’s Award winner ............................. 4-6

2015 RIRDC Rural Women’s Award applications close soon ................................................ 7

New Australian measure for environmental performance ........................................................................ 7

Phosphorus shortage to challenge global farming.......................................................................8

Handy pocket guide to detection times for equine medications ................................... 8

Trade policy affects Australian exports .............. 9

Horticulture needs Australian dollar strategy ......................................................................9

Healthy future for ancient quinoa ................ 10-12

WA pioneers target ingredients market ........... 12

Inquiry makes a beeline for productivity lift .. 13

Diversity can start with a mouse click ............... 14

Ready-to-go lucerne research puts growers in control .......................................................... 16

Testing for damaged seed ......................................... 16

Regional planning makeover to strengthen agriculture ................................................. 17

New entrants to Australian agricultural industries report now available ............................. 18

Bee biosecurity bridges industries ...................... 18

Future leaders hone their skills ............................. 19

RIRDC hosts graduate program visit .................. 19

New publications ....................................... Back cover

Cover image: Pip Job, winner of the 2014 Rural Womens’ Award

Message from the Managing Director

Our feature story in this edition of Diversity is about quinoa — a crop that is taking the world by storm.

Quinoa is an ancient crop that was domesticated around 8,000 years ago in Peru but it is a relatively new crop in Australia that has enormous potential.

RIRDC is currently funding the University of Western Australia to assess quinoa lines from overseas for their suitability for Australian conditions. Researchers have been trialling quinoa at a number of sites in WA and selecting promising lines in terms of yield, agronomy and seed quality under several different environments.

Quinoa is a crop that is salt and drought-tolerant, is suited to marginal soils and has a wide range of potential uses. With a retail price of around $3,000 per tonne it is also a crop that could provide good margins for Australian producers.

With a total production area of around 50 hectares there are only a few growers of quinoa in Australia, but it is hoped that with the assistance of R&D that quinoa will be taken on by many more farmers and become a key crop for Australia’s agricultural sector.

This edition of Diversity also includes a story about the 2014 Rural Women’s Award winner, Pip Job from NSW. Pip was announced the national winner of the Award by the Minister for Agriculture the Hon Barnaby Joyce MP at a gala ceremony at Parliament House on the 24th of September. Jackie Jarvis from Western Australia was the national Award runner-up.

Pip is a grazier, environmental advocate and Chief Executive Officer of the Little River Landcare Group. Pip has been working within Landcare to break down barriers to progress by incorporating the social needs of the communities in which the Landcare groups operate.

Pip will use her Award bursary to create a rural women’s training program entitled ‘Positive Farming Footprints’ using the principles and philosophies of Holistic Management and the Trinity of Management to create a community of women who have the adaptive capacity to manage the challenges of rural life.

We also feature in this edition the launch by RIRDC of a new website: www.farmdiversity.com.au.

A first of its kind, the website brings together research, knowledge and the practical application of 100 plants or animals that might be suited to their farm. Those visiting the website simply have to enter their postcode to uncover the plants or animals that could potentially be grown or reared on their farm.

The easy-to-use website includes information on location, production, marketing, risks and challenges as well as providing links to further resources. It is a fantastic and free resource that all farmers looking to diversify their enterprise should visit.

We have an exciting mix of stories in this edition of Diversity, including the development of a new life cycle inventory for Australian agriculture, the practical outcomes of R&D on Australia’s Lucerne industry, a report on the impacts of the high Australian dollar on trade, and the review of minor chemical use in small industries.

Enjoy the read.

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RURAL DIVERSITYIssue No. 16 / SPRING 2014

Craig Burns Managing Director, RIRDC

Improving access to minor use chemicals for agricultureA new RIRDC project, ‘Improved access to Agvet chemicals for agricultural industries’, is seeking to identify international minor chemical use programs and contrast them with the Australian situation.

The objective is to improve Australian farmers’ access to advanced pesticide technologies that are not available locally because of the small size of the Australian market.

This RIRDC project will:

• review the current global prioritisation methods for existing international and Australian programs

• talk with stakeholders on the benefits and failures of existing prioritisation systems

• recommend options for an improved framework based on case studies.

The project will also deliver an industry and government-agreed definition of market failure for pesticide development to ensure that there are still incentives for investment by the commercial chemical sector.

The project will be delivered through a partnership of Crop Protection Australia with Applied Economic Solutions.

Ultimately, the goal is to explore options to prioritise and address the commercial drivers and market failure issues for industry.

Australia represents only 1.5 per cent of the global agricultural chemical and veterinary medicine market and, compared with many overseas competitors, producers face considerable hurdles to access new product registrations.

Generic off-patent pesticides now dominate the Australian market, with a market share exceeding 75 per cent.

It is becoming increasingly difficult for producers in many agricultural industries to access a large number of new pesticide technologies to manage crop and animal production risks. Technology access is also an issue for local government and environmental management.

Australian market competitors, including the United States and Canada, have had access to well-funded and coordinated minor chemical use programs to improve their industries’ competitiveness where investment market failure is occurring. This has allowed these countries to access improved pesticide product labels based on sound science.

More information: Simon Winter, 0419 720 700 simon@swinter.com.au

Generic off-patent pesticides now dominate the Australian market

Minor use pesticides are those that produce relatively little revenue for their manufacturers for a variety of reasons. They may be registered for a pest that is only seen rarely or for a crop that is not grown by a large number of producers. However, minor crops include some high-revenue fruit, vegetable and ornamental crops. IR-4 (Interregional Research Project No. 4) conducts research on minor use pesticides that would not otherwise be profitable to manufacture. Source: ir4.rutgers.edu

It is becoming increasingly difficult for producers in many agricultural industries to access a large number of new pesticide technologies to manage crop and animal production risks

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RURAL DIVERSITYIssue No. 16 / SPRING 2014

Social challenges inspire 2014 Rural Women’s Award winner

Pip Job’s far-reaching vision for innovative and socially connected family farms inspired the judges of this year’s RIRDC National Rural Women’s Award.

Pip, a New South Wales grazier, environmental advocate and chief executive officer of her local Landcare group, was announced as the 2014 Award winner by the Minister for Agriculture, Barnaby Joyce, at a gala dinner at Parliament House, Canberra in September.

Pip’s passion is identifying and breaking down the barriers to progress for farming families dealing with social challenges.

“Solitude, succession planning, mental health, business literacy and family communication are often aspects that contribute to a lack of engagement with innovative practices,” Pip said.

“I have been involved in Landcare for many years and have realised that when we struggle to get farmers to adopt new ideas, it is often because there are underlying social issues that are not being addressed.”

Pip said social isolation was particularly problematic for farming people because they were not exposed to new ways of thinking.

“If, week in and week out, you only see your partner, that’s only one way you have to look at things,” she said. “If we are going through a hard time, it’s important we expose ourselves to other people and other ways of thinking.”

Pip has expanded the way Landcare operates to include the social needs of the community. The ‘Women in the Landscape’ program that she instigated fosters learning, the exchange of experiences and the up-skilling of women to become more involved in farming businesses. Due to its success, the program is now being rolled out nationally.

She has also worked with various Landcare groups across New South Wales to help them improve their governance and has provided planning and advice on policies, procedures, strategy and staffing.

Pip received $10,000 as part of the NSW State Award earlier this year. As the national winner, she will receive an additional $10,000 to enable her to explore her chosen topic.

Part of this work will involve a study tour to New Zealand, the USA and Canada and, she said, “a huge amount of networking”.

“For every person I speak to, I have another 10 to follow up,” she laughed.

Ultimately, she aims to develop a social audit tool for farming families that is readily accessible and easy to use.

RIRDC Managing Director, Craig Burns, congratulated Pip on winning the Award and said her dedication, energy and encouragement of rural women was a great example of leadership at its best.

“Pip was chosen as the national Award winner from a field of seven very strong state winners. Pip’s ability to actively engage the community in which she lives, encourage people to get involved and to actually make change happen is nothing short of inspirational,” Mr Burns said.

“Pip’s passion, drive and determination are clear, and her desire to up-skill rural women, foster learning and generally make things better for rural people and the environment has been deservedly recognised.”

Jackie Jarvis, a primary producer from Western Australia was named national runner-up. Jackie jointly owns a commercial vineyard and wine production company and through her work with the Chamber of Commerce WA assists with strategies for workforce recruitment, retention and planning for the agricultural sector.

In 2013, Jackie developed a Regional Migrant Employment Support (RMES) pilot program that assisted resettled humanitarian refugees find employment in West Australian agriculture. Jackie found that the pilot program was being embraced by farming businesses as a way to secure permanent workers willing to locate to regional Western Australia from a pool of potential workers not previously considered by farming communities.

Jackie’s Award project is to create film postcards showcasing resettled refugees working in agriculture and to use her networks and social media platforms to distribute these postcards to highlight the social and community benefits gained by using this type of employment model. The videos will show a diverse range of agricultural industries. It will be distributed

to rural woman’s networks and by social media, and highlight the benefits to communities of supporting resettled refugees.

Jackie is currently a reference group member of the Rural, Remote and Regional Women’s Network of WA, and a Commissioner with the WA Forest Products Commission. She was former Director and Treasurer of the Foundation for Australian Agricultural Women and has worked regularly with the National Rural Women’s Coalition.

Mr Burns said of the finalists, “All the state winners this year are of the highest calibre and I am confident we will see all of them further develop their leadership potential and continue to inspire and drive change in their communities and industries.”

As the pre-eminent award for rural women in Australia, the RIRDC Rural Women’s Award identifies and supports emerging leaders who have the capability and resources to drive innovation, productivity and sustainability within primary industries and rural communities.

Applications for the 2015 Rural Women’s Award are now open. Rural women are encouraged to enter themselves or nominate someone with a commitment and desire to making a real difference to their industry and community. Applications close 31 October 2014.

More information: Margo Andrae, 02 6271 4132, 0404 836 631 margo.andrae@rirdc.gov.au

Jackie Jarvis, WA and Pip Job, NSW

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REMARKABLE RURAL WOMENThe RIRDC National Rural Women’s Award provides the opportunity to showcase a group of remarkable rural women and their contribution to primary industries, to rural communities and to rural Australia. This year’s finalists work across a diverse range of industries, but all are driven by a passion for agriculture and the future of the people involved.

National FinalistsPENNY SCHULZ

South Australian livestock producer Penny Schulz is a strong advocate for the dairy industry, and her goal is to build the industry’s leadership capabilities, understanding, and knowledge and skill base.

Off farm, Penny manages projects and delivers workshops for the dairy, beef and sheep industries. She teaches at university in the fields of animal genetics and business management. She has a Master of Science in Agriculture and a Graduate Certificate in Rural Science specialising in Agricultural Consulting.

Penny was awarded the 2014 ANZ Australian Beef Industry Foundation Kellogg Rural Leadership Program, and is a director of Australian Beef Industry Foundation.

ANNETTE REID Tasmania’s Annette Reid is a farmer, social worker and former president of Tasmanian Women in Agriculture. Annette seeks to encourage women on small rural properties to seek business opportunities and is investigating niche market tomato and garlic enterprises in the United States and Canada.

Annette herself supports niche food markets with heirloom tomatoes and garlic varieties grown on her 40-hectare property.

She is the immediate past chair of Tasmanian Women in Agriculture and has contributed to her community through founding the Rural Help@Hand organisation, which provides vital support and information to rural patients and their families who are facing city hospitalisation.

LAUREN HEWITT Queensland’s Lauren Hewitt is an environmental law specialist whose vision is to improve farm profitability through leasehold tenure and rent security by sharing knowledge and collaborating between leasehold jurisdictions.

Lauren recognises the issues producers face in relation to controlling the cost of leasehold land, which is based on government-owned tenure that is then rented back to primary producers.

In 2012, Lauren conducted and published research, with rural leasehold land academic Professor Chris Eves, on rural leasehold land profitability in Australia.

Lauren is general manager of policy at AgForce Queensland, where she coordinates a team of policy specialists who provide important links between individual primary producers and government and industry body regulators.

JULIE ALDOUSVictorian food and fibre teacher Julie Aldous has a goal to promote careers in primary production to as many students as possible, at primary, secondary and tertiary levels.

She promotes meaningful, applied learning opportunities for students through partnerships between schools and their rural communities.

In 2009, Julie developed ‘PRE–Ag’, a cost-effective and community-focussed applied learning course for Year 9 and 10 students to address the need for skilled young people to choose careers in primary industries.

Julie’s ambition is to promote sophisticated, contemporary models for industry education in schools across Australia and to heighten the awareness and appreciation of food and fibre production across both rural and metropolitan communities.

State Runners-up

Edwina Beveridge (NSW)

Avril Hogan (Vic)

Rhonda Sorensen (Qld)

Susie Green (SA)

Jodie Lane (WA)

Sarah Hirst (Tas)

Bonnie Henderson (NT)

DR AMELIA RENTZDr Amelia Rentz is a Darwin-based veterinarian with a vision to improve livestock disease intelligence and surveillance by developing a rural education program.

Amelia is passionate about community education and believes in the important role that rural women play in educating the wider community in health, welfare, and productivity.

Her vision is to improve livestock disease intelligence and surveillance by developing a rural education program focusing on high-risk zoonotic diseases and how they relate to humans and animals in regional Northern Australia. In the future Amelia hopes to undertake postgraduate study in public health and work in developing countries to continue the development of her vision.

Rural Women’s Award Gala Dinner

RIRDC Chair, Prof Daniela Stehlik, 2013 Award winner, Giovanna Webb and the Minister Assisting the Prime Minister for Women, Michaelia Cash

Agriculture Minister, Barnaby Joyce and Pip Job

The seven finalists of the 2014 Rural Women’s Award with RIRDC Managing Director Craig Burns,L-R - Penny Schulz from SA, Annette Reid from Tasmania, Craig Burns, Pip Job from NSW, Jackie Jarvis from WA, Julie Aldous from Victoria, Amelia Rentz from NT and Lauren Hewitt from Queensland

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2015 RIRDC Rural Women’s Award applications close soonApplications for Australia’s top award for rural women close on 31 October.

The 2015 RIRDC Rural Women’s Award is open to all women involved in primary industries. Rural women can enter themselves or nominate someone they know who is committed to making a real difference to their industry and community.

The Award provides state winners with financial assistance, mentoring, resources and support via a nationwide network of business and community leaders.

State winners also receive a $10,000 bursary to implement their Award vision and the opportunity to participate in the company directors’ course run by the Australian Institute of Company Directors.

The national winner will receive a further $10,000 bursary and the runner-up a $5,000 bursary to support their professional development and contribution to primary industries.

RIRDC Managing Director Craig Burns said the Award identified rural Australia’s emerging leaders.

“The Award provides Australia’s rural women with recognition of their tremendous contribution to rural Australia. It also builds strong and close networks and facilitates personal development opportunities for those who take part,” Mr Burns said.

Application forms can be downloaded from the RIRDC website: www.rirdc.gov.au/ rural-women’s-award.

More information: Margo Andrae, RIRDC, 02 6271 4132 or 0404 836 631.

New Australian measure for environmental performanceAustralian industry and policy makers no longer need to rely on overseas-based models when estimating the environmental impacts of Australian agriculture.

There is now the Australian Agriculture Life Cycle Inventory (AusAgLCI) — developed by Australian rural research and development corporations (RDCs) in a project led by the RIRDC.

AusAgLCI is a standardised compilation of Australian data to assess the cradle-to-farmgate inventory for life cycle assessments (LCAs) of our major food production systems.

These assessments are an important tool for identifying ways to improve industry efficiencies and environmental performance.

While LCAs are applied to many industries, it is particularly important to understand agriculture’s environmental ‘footprint’ because of its reliance on valuable land and water resources.

Australia has had LCA models, but they have varied in the methods and data used. Many have used information obtained from published agricultural Life Cycle Inventory libraries in Europe or the United States that was not relevant to Australian conditions.

AusAgLCI covers winter cereals, horticulture, sugar and cotton production, and inventory to support red meat production.

The project’s goals were to:

• describe important Australian production systems

• collect quality-controlled data for production to the farmgate from publicly available sources

• document information about the data sets and how they have been generated

• obtain expert industry review of the resulting lifecycle inventory

• make the inventory available to users in a form consistent with international standards and compatible with a range of existing LCA software programs.

Why LCAs are important

LCAs allow a systematic assessment of the whole-of-life environmental impact of a product on which ‘environmental product declarations’ can be based. This is how information such as a carbon footprint for a product is produced.

Australia is a major food exporter and our trade partners increasingly require this type of information.

LCAs help farmers and land managers decide on improvements in environmental performance by identifying supply chain hot spots that contribute the most to environmental impact.

This guides both on-farm decision-making and research investment into technology to reduce environmental impact.

LCA also allows assessment of which parts of the supply chain are most critical to reducing environmental impact. The AusAgLCI project was led by RIRDC on behalf of Meat and Livestock Australia, Grains Research and Development Corporation, Sugar Research Australia, Cotton Research and Development Corporation and Horticulture Australia Limited. The work was done in collaboration with CSIRO and other research agencies, including the Department of Agriculture, Fisheries and Forestry Queensland, University of Southern Queensland, and consultants Life Cycle Strategies.

More information: Sandra Eady, sandra.eady@csiro.au 02 6776 1394

AusAgLCI - A Life Cycle Inventory database for Australian agriculture https://rirdc.infoservices.com.au/items/14-045

AusAg LCI – Methodology for developing life cycle inventory https://rirdc.infoservices.com.au/items/14-046

Australian Life Cycle Assessment Society (ALCAS): www.alcas.asn.au/AusLCI

AusAgLCI covers winter cereals, horticulture, sugar and cotton production and inventory to support red meat production

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Phosphorus scarcity to challenge global farmingPhosphorus is an essential element for crop growth, so a global phosphorus scarcity will compromise the world’s ability to produce food in the future.

The world’s main source of phosphorus (mined phosphate rock) is becoming increasingly scarce, expensive and controlled by only a handful of countries.

There is no substitute for phosphorus in food production; it is an essential element for crop growth.

Historically, there had been little awareness, research and policy debate on global phosphorus scarcity until an 800 per cent phosphate price spike in 2008 drew the world’s attention.

Australia has phosphorus-deficient soils and depends on imported sources of phosphorus to maintain agricultural productivity. This means food production and its value as an export industry for Australia will inevitably be challenged by declining phosphorus availability.

A RIRDC-funded project, Australian sustainable phosphorus futures has investigated how Australia can manage

phosphorus to ensure long-term food security, soil fertility, agricultural productivity, farmer livelihoods and environmental protection. The intended outcome is to deliver sustainable phosphorus adaptation strategies across a range of scenarios to ensure the Australian food system remains resilient.

Australia is a net importer of phosphorus, bringing in 214,000 tonnes of P a year to support the agriculture sector. Simultaneously there is a net phosphorus deficiency of 106kt a year due to losses and inefficiencies.

Report author Dr Dana Cordell said: “Achieving phosphorus security in Australia will require an integrated approach that recycles phosphorus from multiple sources. And we need innovative ways to substantially reduce the long-term demand for phosphorus.”

She said the issue needed further research and consultation in this area, particularly as there was a lack of data, and consequently a lack of policy.

Strategies identified in the report included improved phosphorus use efficiency in agriculture, and reducing food waste by

this problem on a scale never before undertaken in Australia.

From the information and data presented in the full report, RIRDC has produced a 36-page pocket guide titled Detection Times for Equine Medications.

The compounds covered in the guide were chosen based on the most urgent needs of veterinarians, following widespread industry consultation. They are:

• Acepromazine

• Buscopan Compositum

• Butorphanol

• Detomidine

• Dexamethasone

• Flunixin

• Ketoprofen

• Lignocaine

• Mepivacaine

• Methylprednisolone

• Phenylbutazone

• Prednisolone

• Prilocaine

• Procaine penicillin

For each medication, the guide illustrates the period of detection in urine, dose and route

supermarkets and households.

“Developing and implementing such practical solutions to meeting the world’s long-term future phosphorus demand will involve substantial technical, institutional and social changes,” Dr Cordell said.

More information: Dr Dana Cordell, UTS, dana.cordell@uts.edu.au

Handy pocket guide to detection times for equine medicationsExcretion and detection time periods for many therapeutic drugs used in the horse industry have been clarified in a new handy pocket guide.

Each year, 650,000 horses compete in flat racing, harness racing and equestrian events across Australia. Their owners and trainers require access to high quality information on the management of medications.

Illness and training injuries are common, but appropriate treatment can be hampered due to uncertainty about how drugs pass through a horse’s body.

RIRDC commissioned a study into the pharmacokinetics (how drugs move through and out of the body) of the most important equine medications. The project involved a consortium of Australia’s leading forensic chemists, veterinarians and equine scientists, generating significant capacity to address

of administration, the drug classification and provides any additional information from the study. Screening limits are those approved by the Australian Racing Board as of July 2013.

This information will help veterinarians develop more effective treatment protocols for horses and racing industry regulators set appropriate detection times and reporting levels for therapeutic substances in animals in competitions.

More information: Dr Dave Alden, RIRDC Senior Program Manager, dave.alden@rirdc.gov.au

Australian sustainable phosphorus futures

AUGUST 2014 RIRDC Publication No. 14/038

Phase 1: Analysis of phosphorus flows through the Australian food production and consumption system

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RURAL DIVERSITYIssue No. 16 / SPRING 2014

Trade policy affects Australian exports A new RIRDC report, Emerging Asia, Trade-distorting Policies, and Food Security Concerns, analyses the likely drivers in global food markets during the next two decades — and the implications for Australia.

It examines policies affecting both the long-term trends in food prices and short-term price spikes. These are separate issues, requiring different policy responses, according to authors Professor Kym Anderson and Associate Professor Anna Strutt, from the University of Adelaide.

The combination of high international food prices and three price spikes since 2008 has raised food security concerns globally, particularly in developing countries.

The report’s analysis indicates that international governments have often used restrictive trade measures to insulate domestic markets from international price volatility. Because the governments of both food-exporting and food-importing countries do this, their combined actions exacerbate international price fluctuations and offset efforts to stabilise domestic food prices.

In the past, these policy responses to market developments have been costly to

the countries implementing them and, via international market spillovers, to other countries. The report considers how changes in current policies in the coming decades could improve on past efforts to improve security, or magnify existing access issues. Future scenarios include shifts in the trade policies, consumption and climate change.

Projections for increased demand in Asia suggest exports of Australian agricultural exports to China and other emerging Asian economies will continue to grow. However, farmers and agribusinesses may have to live with the current relatively high value of the Australian dollar for some time.

Recommendations to help Australia remain competitive as an exporter include greater investment in agricultural and food processing research and development to increase productivity. Other recommendations include: continuing to seek market access abroad; continuing Australia’s own economic reforms; encouraging foreign investment that allows other countries to rely more on Australia as part of their food supply chain; and boosting investment in infrastructure to reduce trade costs.

More information: Simon Winter, RIRDC External Research Manager simon@swinter.com.au

Horticulture needs Australian dollar strategyA report on the impact of a high Australian dollar on trade gives policy makers and industry strategies to maintain export growth.

The horticulture industry is more vulnerable to a high Australian dollar ($A) than other sectors, according to a study funded by the Rural Industries Research and Development Corporation.

The study The high Australian dollar and agrifood export, interviewed Australian agrifood exporters and overseas importers to determine the impact of a higher exchange rate ($US to $A) on trade.

It found the influence of the exchange rate on trade varied across industries and export markets.

Report author Brian Kearnes from the Victorian Department of Environment and Primary Industries, said the most significant influence related to whether the export item was a differentiated product or a generic commodity.

“Generic commodities are more susceptible to exchange rate movements because they are more readily substituted,” he said. “Perishability is also an issue because some commodities and products can be stored and sold when prices are favourable.”

At an exchange of $0.80 to $1.00, horticulture exporters compete on price for most fruit, although pears struggle at the high end of this range. However, at $1.00 to $1.20, costs need to be cut and products differentiated to maintain markets.

Meat exporters find it difficult to compete on price at $1.02 to $1.05 and need to focus on higher-value cuts or renegotiate prices in order to compete.

Dairy is competitive at $0.80 to $1.00, but at $1.00 to $1.20 exporters need to manage farm pricing and currency hedging carefully.

Grain is influenced less by exchange rate than by other factors such as world supply. An A$ of $1.00 to $1.20 prompts better currency management and price hedging, and farmers store grain for later sale.

Branded food products compete on price at $0.80 to $1.00, but at $1.00 to $1.20 price-sensitive importers take fewer products, requiring increased promotion to maintain sales.

Projections for increased demand in Asia suggest exports of Australian agricultural exports to China and other emerging Asian economies will continue to grow

The report includes strategies other than price that companies can use to improve competitiveness in international markets.

More information: Simon Winter, RIRDC External Research Manager simon@swinter.com.au

Report: The high Australian dollar and agrifood export https://rirdc.infoservices.com.au/items/14-009

The high Australian dollar and agrifood export

FEBRUARY 2014 RIRDC Publication No. 14/009

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Unknown to most Australians five years ago, quinoa (‘keen-wah’) has quickly entered the lexicon and found space in

supermarkets, specialty food stores and health food outlets.

Quinoa is a complete protein: the only food crop that contains all nine essential amino acids, trace elements and vitamins

The ancient crop of the Incas, quinoa (Chenopodium quinoa) has been cultivated in South America’s Andean

region for thousands of years. Now, scientists have identified its seed’s high nutritional value, boosting interest from western health-food markets.

Known as a pseudo-cereal, quinoa is not a member of the grass family but has a grain-like appearance and is used in much the same way. Now prevalent in mainstream supermarkets, consumer demand for the seed has soared, increasing crop prices and revenue for Andean growers while providing lucrative new opportunities for Australian broadacre farmers.

Subsistence farmers in Bolivia, Peru and Ecuador produce about 92 per cent of the world’s quinoa crop; about a third of it is exported.

Agronomists believe that South American producers will not be able to cope with mounting pressure from developed nations.

Demand from the United States, Europe and Asia is reported to be thousands of tonnes above current annual production. The region’s total cultivation area more than doubled to 70,000 hectares between 2009 and 2012, as high quinoa prices persuaded many farmers to abandon crop rotation in the scramble to grow more.

This trend is compromising soil health and quinoa is also increasingly replacing other vegetable and cereal crops, affecting food variety and local people’s nutritional balance.

Alternative sources will be necessary to alleviate these pressures if global demand for the edible seed, known as ‘the gold of the Incas’, continues to climb.

Golden opportunity for Australia With RIRDC-backed research confirming quinoa’s tolerance to conditions including drought and salinity, the crop’s rising

popularity in western markets suggests significant opportunities for Australian broadacre farmers.

RIRDC Senior Program Manager, Plant Industries, Dr John de Majnik, said the local market’s heavy reliance on imported product, combined with a global quinoa shortage, provided strong market potential for an Australian industry.

With the exception of niche organic markets supplied by the country’s first commercial quinoa producer in Tasmania, the majority of product sold in Australia is imported from South America.

In 2012, Australia imported 934 tonnes of quinoa valued at A$3.1 million and consumed about 45 tonnes of domestically grown product (two tonnes were exported).

The United States accounts for about two per cent of global quinoa production and remains the world’s largest quinoa importer, followed by Germany, the United Kingdom and the Netherlands. Asia is a potential

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market as quinoa gains recognition as a healthy food source.

“A lot of the large western markets cannot grow quinoa, in most cases because the climate is not suitable, but there is real scope for Australia,” Dr de Majnik said. “In terms of an import replacement, it’s a tick; in terms of export potential for Australia, it’s a tick.”

A healthy alternativeThe benefits of quinoa have come under the spotlight as nutritionists raise concerns about a ‘food monotony’ caused by an over-reliance on wheat, corn (maize) and rice, creating a micronutrient deficiency in modern diets.

Quinoa is a complete protein: the only food crop that contains all nine essential amino acids, trace elements and vitamins. It is also high in fibre and iron, has a low glycemic index and is an excellent source of antioxidant and anti-inflammatory phytonutrients key to chronic disease prevention.

The Food and Agriculture Organization of the United Nations declared 2013 the International Year of Quinoa in recognition of its potential to help provide global food security and nutrition. In the same year, the National Health and Medical Research Council’s revised Australian Dietary Guidelines listed quinoa among recommended grain foods for the first time.

Quinoa’s gluten-free status was confirmed in the Gluten-free Grains report commissioned by RIRDC, which showed that aside from people with coeliac disease, other health-conscious consumers are opting for gluten-free grains.

The global gluten-free market is expected to reach US$6 billion (A$6.7 billion) by 2017. RIRDC estimates there are about one million Australians in this market segment; it nominates quinoa as “the gluten-free grain [with] … the greatest potential”.

“The fact that raw materials [used by Australian manufacturers] are largely drawn from imports clearly points to a market for such grains and products in Australia,” it said.

A second RIRDC report, Quinoa and the Australian consumer, acknowledged the pseudo-cereal’s potential to penetrate the mainstream health-foods market.

Going mainstream Mainstream food manufacturing is “where the big market opportunities are”, according to Dr de Majnik.

“The food retail trend towards ‘mainstream healthy’ has created significant value-adding capacity for processing raw quinoa seed into flour and baked products,” he said.

With an overwhelming number of mainstream products claiming health

attributes at point-of-sale, the Quinoa and the Australian consumer report concluded that quinoa could be marketed as a stand-alone product within the ‘health niche’ category, or as a complementary ingredient in ‘mainstream’ gluten-free or low-fat products, including bread, cereal, snack foods, savoury biscuits and pasta.

In both categories, RIRDC maintains high product quality will be important to ensure Australian quinoa can compete in domestic and international markets. The ‘Australian grown’ label should help it appeal to many local consumers.

Strong potential

Solid market opportunities, premium prices and the ability to withstand adverse and marginal conditions make quinoa an attractive broadacre option for growers.

RIRDC, in collaboration with the University of Western Australia, has run several projects to develop a greater understanding of the crop’s performance.

Led by UWA researcher Dr Jon Clements, RIRDC-funded trials in Western Australia and South Australia short-listed four overseas breeding lines — three white and one red — and confirmed the crop’s capacity in marginal soils with low rainfall and fertiliser input.

“Quinoa is a crop with a very wide genetic diversity among landraces and germplasm generally, with the potential to adapt to a broad range of environments including salt and drought-prone areas,” Dr Clements said.

Field trials will be conducted to determine viable growing regions beyond Western Australia’s Ord Valley and Tasmania’s north-west coast.

Although the Australian crop is still in the ‘experimental’ stage, yields – averaging one

tonne per hectare at research sites – are well below established production systems in South America, which produce three to five tonnes per hectare.

Researchers maintain commercial production will need to be higher to ensure profitability for growers, but Dr Clements is confident quinoa “has the potential to achieve comparable yields with international competitors, provided there is general improvement in industry knowledge and research and development to reduce pest impacts”.

ChallengesImport restrictions have made access to germplasm from South American genebanks difficult, limiting Australian variety development to heterogeneous breeding lines from the United States.

Dr de Majnik said the restraint was challenging local efforts “to create a number of varieties that are pure and have specific heritable traits, particularly low saponin content”.

Saponin compounds, which are often bitter tasting, found in most quinoa genotypes must be removed from the seed’s outer layer before consumption. As mechanical abrasion fails to remove all traces, plant breeding is the logical solution and screening is under way to identify low-saponin lines suited to local conditions.

Researchers are also studying an Australian native Chenopodium quinoa species, regarded as an indigenous food grain, to explore its potential for yield, quality and pest resistance.

The Western Australian studies concluded that quinoa is sensitive to seeding depth, with a preference for shallow sowing, but it is not yet known how susceptible Australian-grown quinoa is to pest and disease threats. Further research is necessary to manage these risks and to get a handle on weed control, which can affect yield.

While traditional manual harvesting methods continue to dominate in South America, mechanical techniques will apply to broadacre production in Australia but further developments may be necessary to preserve grain quality and structure.

Future developmentA commercial-scale broadacre quinoa industry in Australia is still a number of years away.

Suitable growing regions outside Western Australia and Tasmania need to be evaluated before field trials can be carried out using identified varieties over the next three to five years.

WHITE QUINOA

Soft texture; buttery taste; excellent base for sweet or savoury flavours; absorbs essence of whatever it is paired with.

RED QUINOA

More texture than white quinoa; earthy, nutty aromas; ideal stuffing or cold salad base; pairs well with onion, garlic, vegetables, nuts.

BLACK QUINOA

More texture than white and red quinoa; earthy almost mineral-like flavour; pairs well with other grains or quinoa varieties.

continues overleaf

11

from previous

Further development of production techniques and management practices is also necessary to achieve internationally competitive yields.

“The main focus is to secure quality-assured lines as well as seed, and to deliver it nationally with refined agronomic practices so we can get the industry underway,” Dr de Majnik said.

In the next 18 months, RIRDC will call for expressions of interest from seed companies with the capacity to distribute seed throughout Australia.

“I believe quinoa will become a highly valuable option for broadacre growers in both marginal and high-yielding areas,” Dr de Majnik said. “All Australian farmers can benefit from this.”

More information: Dr John de Majnik, RIRDC Senior Program Manager, john.demajnik@rirdc.gov.au

12

RURAL DIVERSITYIssue No. 16 / SPRING 2014

QUINOA AT A GLANCE• Quinoa (Chenopodium quinoa) –

dicotyledonous, annual ‘pseudo-cereal’

• Genus: Goosefoot (Chenopodium)

• Family: Amaranthaceae

• Origin: Andean highlands, SouthAmerica, 3,000 to 5,000 BC

• Plant height: 0.2–0.3m

• Grain diameter: up to 2.6mm

• Colours: white, red and black

• Climate: grows well in a variety ofclimates; optimal growing conditions:higher altitudes 2500–4000m abovesea level

• Rainfall: average 100-800mm peryear; suited to low-rainfall areas

• Temperature: from -4 to 38 degrees

• Oil type: this is not well understood forAustralian conditions; more researchand trials are needed to determine bestgrowing regions

• Season: defined by region

• Global cultivation: 80,000ha

• Worldwide production: > 85,000t

• Main producers: Bolivia and Peru(about 92%); Ecuador, United States,Argentina, Canada (about 8%)

• Nutritional profile: high protein andfibre (average 14%); contains all nineessential amino acids; high levels ofvitamins and minerals; gluten free; highin polyunsaturated fatty acids andnatural antioxidants

Sources: FAO of the United Nations 2013, RIRDC 2014

WA pioneers target ingredients marketAs one of the trailblazers of quinoa cropping in Western Australia, Narrogin grower Ashley Wiese has faced more than a few challenges over the past five years.

Quinoa has been cultivated for millennia in the Andean highlands in South America, but scientific knowledge relating to its production and management is scarce.

“Quinoa has been grown almost exclusively by subsistence farmers so we have no precedent,” Ashley said. “There is basic information coming out of France, Canada and the United States, but very little.”

Ashley, local grower Megan Gooding and agronomist Garren Knell — founders of the Australian Grown Superfoods company — have relied on RIRDC-funded experimental research through DAFWA and their own trials to refine their agronomy.

“The key challenge is developing a model, but we are excited to be establishing a new industry and we are convinced quinoa will prove a reliable break crop for broadacre farmers in dry regions,” Ashley said.

The area under cultivation on his 5000-hectare property is testament to Ashley’s confidence; he sowed 180 hectares to quinoa last year and 500 hectares this year – his sixth crop. Australian Grown Superfoods also recruited other growers in the Wheatbelt region, lifting the total area to 1,200 hectares.

“Our biggest obstacle has been getting seed; there are very few producers in the market and it’s hard to get germplasm from South America,” Ashley said. “We have brought in multiple varieties from the United States and Europe, narrowing it down to one line, Medusa, selected from a US variety that fits our system quite well. We will also continue to trial new varieties.”

Ashley said quinoa was very defined in how it grew and was difficult to manipulate: “Getting our heads around sowing times has been difficult, but it is a drought-tolerant crop that is tough, hardy and suits this environment.”

As most conventional sprays cannot be used, weed control is another obstacle. “We are limited on broadleaf weed control and it is difficult to go to broadacre until we get that sorted,” Ashley said.

Australian Grown Superfoods plans to target the food ingredient market, rather than the high-end shelf product market. “Food processors in Australia complain they cannot get a good supply of quinoa at a reasonable price to meet growing demand from the domestic and Asian markets,” Ashley said. “We aim to establish a reliable bulk supply of quinoa for value-adding markets, but saponin* must be removed before manufacturers will accept it.”

The company cannot justify an investment in plant until it is producing at least 10,000 tonnes, so quinoa seed will be sent to the US for processing this year.

Supply issues have created little differentiation between organic and conventional quinoa prices in recent years, but Ashley believes conventional prices will soften as the product finds its way from niche to commodity, making it even more attractive to food producers.

“There will always be a premium to other crops because quinoa is hard to grow, but as production improves, growers will also benefit from higher yields,” he said.

* Saponin: a class of chemical compounds found in someplant species.

Inquiry makes a beeline for productivity liftAustralia’s fourth parliamentary inquiry into honey bee and pollination services has resulted in a range of recommendations highlighting the opportunities and challenges facing these national industries.

Trevor Weatherhead, executive director of the Australian Honey Bee Industry Council (AHBIC), said the inquiry outlined vital, primary steps in the future development of the country’s honey bee and pollination sector.

Of the 10 recommendations released in June 2014, Mr Weatherhead said at least half had the potential to influence industry change because they addressed major constraints affecting Australian beekeepers. Top of mind for Mr Weatherhead is public land access, biosecurity and data to inform business decisions.

He said the recommendation that states and territories provide beekeepers with guidelines to clarify access to public lands, and ultimately, the floral resources needed to produce honey, was an industry imperative.

Such new guidelines for public land access aim to eliminate the “confusion and concern” caused by conflicting land tenures on leasehold, state, territory and Commonwealth land, Mr Weatherhead said.

The inquiry points to the guidelines already developed in Victoria as a model for adoption by other states and territories that could help increase the supply of honey, and improve operational efficiency for apiarists, he said.

Sue Salvin, principal researcher with GHD Natural Resources and Agriculture, also recognises the industry need to clarify public land access for beekeepers.

Ms Salvin has been drawing on land tenures, management objectives and policy documents to identify public lands that are compatible with European honey bee keeping as part of RIRDC-funded research.

Mr Weatherhead said biosecurity was another area of critical importance to the productivity of the honey bee and pollination industries, and on a larger scale, national and global food security.

He said the Australian honey bee industry was worth about $100 million a year based upon the value of honey production alone, with about 12,414 beekeepers collecting on average 25,000 tonnes of honey from more than 528,000 hives. This small, but important industry supports pollination services that contribute between $4 billion and $6 billion a year to agricultural production, including plant-based industries, plus wool, meat and dairy production.

To help protect these industries from biosecurity risks, the inquiry has recommended the importation of European honey bees with genetic resistance to the varroa destructor mite and development of a ‘bee-centric’ quarantine facility.

Entomology Professor Ben Oldroyd from the University of Sydney agrees the introduction of varroa resistance to the Australian gene pool is important.

Through a RIRDC-funded project, Professor Oldroyd has been developing a test for Africanisation in imported honey bee semen with the aim of shielding Australian stocks against a varroa mite incursion while preventing the introduction of aggressive traits into Australia’s stock of honey bees.

Mr Weatherhead added that while the outcomes of the parliamentary inquiry were generally positive, AHBIC had hoped the inquiry would have considered a wider range of industry issues and provided clear recommendations to the government to do what is needed to address the issues identified.

“This is the one area AHBIC would have liked to see strengthened in the inquiry’s report, especially considering the lack of action from previous inquiries and specifically the “More Than Honey” report in 2008 of which 48 per cent of the recommendations were not actioned,” Mr Weatherhead said.

Mr Weatherhead said other highlights of the recent inquiry were recommendations focused on providing beekeepers with new data to inform their management and business decisions.

In particular, he said the call for a national survey of honey bee colonies, including monitoring for damaging pesticide residues; and an annual industry report, could lead to more productive and profitable honey bee systems.

CSIRO researcher Dr John Roberts is contributing to both the industry need for new data and better protection against biosecurity threats with RIRDC-funded work to upgrade knowledge of honey bee pathogens, particularly viruses, in Australia.

Apart from informing management practices in beekeeping, this national survey of 150 apiaries across 12 regions could also be used to facilitate international trade. In 2010, for example, the US suspended trade of Australian queen bees due to concerns relating to the introduction of novel pathogens and the slow paralysis virus, which are yet to be fully assessed in this country.

Prior to Dr Roberts’ current research, industry knowledge of honey bee pathogens in Australia was limited to viruses identified with outdated testing methods in eastern Australia in 1987.

More information: Trevor Weatherhead, Australian Honey Bee Industry Council, 07 5467 2265, 0427 960 735, ahbic@honeybee.org.au

Photo credit: Marion Weatherhead

Trevor Weatherhead, Executive Director of the Australian Honey Bee Industry Council, checks European honey bee hives in Durikai State Forest near Warwick in south-east Queensland.

13

Diversity can start with a mouse clickRIRDC’s FarmDiversity is a first-of-its-kind website, helping farmers diversify to expand their businesses and mitigate risk, using localised information.

Farmers looking to diversify their businesses have always faced a similar question: what is the optimum crop or livestock industry to move into?

What if they have a venture in mind but it’s not particularly suited to the conditions of their region? What if there is another crop or livestock better suited to their area that they haven’t thought of?

Finding answers to these questions usually requires considerable time and research.

Now there is an efficient ‘one-stop shop’ search and discovery solution.

The recently launched online resource, www.farmdiversity.com.au is free for anyone to use and it helps farmers discover their best options for diversification according to where they live.

After entering their postcode, users see a shortlist of plant and livestock industries that might be viable in that area. More specific search information such as rainfall, soil type and climate zone can be used to refine the search. Farmers can also search for a particular plant or animal that may interest them.

The ability to search by location is crucial, said Damon Whittock, RIRDC’s Communications and Public Affairs Manager. It means people can quickly determine whether a venture is suitable for their environment.

“You want it to be relevant to where you live,” he said. “You might be interested in growing quinoa, but live in North Queensland where it’s not well suited, so this tool tells you immediately whether the crop will work where you live.”

The website also has potential to provide new ideas. “You might think you want to grow quinoa but if it’s not suitable, the website will identify other possibilities,” Mr Whittock said. “It opens your eyes to things you may never have previously considered.”

Before the website was launched, there was no common, easily accessible source for such a range of information. “There was no one-stop-shop – now there is,” Mr Whittock said.

Risk management

Diversity is crucial because it helps growers spread their risk and improve resilience, which helps secure income. Diversifying can also boost environmental outcomes and maximise the use of farmland and equipment, for example, through the introduction of a break crop. Unused land could also be transformed for an entirely new purpose with the introduction of a new venture.

One farmer who has transformed a vacant part of his farm into a thriving additional business is Victorian egg producer Brian Ahmed, recently crowned Diversification Farmer of the Year at the 2014 Kondinin Group–ABC Rural Australian Farmer of the Year awards.

Forty years after his family began its egg farm in Werribee, Victoria, Mr Ahmed has established a gourmet grocery store, deli and café on excess land that “was just sitting there” but was exposed to tourists visiting nearby attractions.

Mr Ahmed built a packaging shed after he realised that buying egg cartons and packaging eggs himself was more profitable than using a third party.

That packaging business (Pakogen Australia Pty Ltd) has become a thriving enterprise in its own right and is now supplying packaging to farmers around Australia and companies including Coca-Cola, Etihad Stadium in Melbourne and Stadium Australia in Sydney.

“We don’t have anything sitting idle anymore,” Mr Ahmed said. “We are using every millimetre of the land we have.”

Diversifying has not only made the most of his space, but has made his business more secure and sustainable, he said. “If one area is quiet, the other is a bit busier – and they are completely different. If the cafe is quiet, the retail is busy; if retail is quiet, the egg farm’s selling well and then there’s packaging, so there’s always an income and this gives you more security long-term.

It’s like the old saying: not all your eggs in one basket.”

The www.farmdiversity.com.au website provides information relevant to both small and large-scale operators on 100 industries from ginger, beekeeping and goats to wasabi and olives … and just about everything in between.

The website addresses the issue of diversification itself, providing information on its many benefits and, importantly, its risks. There are 10 questions RIRDC recommends farmers ask themselves before they go any further with diversification plans.

The questions cover topics such as attitudes to risk, financial resources and time constraints.

To illustrate the nature of the challenges and benefits of diversification, the website features stories of people who have introduced new crops or livestock as well as other non-agricultural ventures, such as the Ahmed’s retail and packaging enterprises.

“This website is the first step,” Mr Whittock said. “It’s the beginning of the journey and it’s about informing people and opening their minds to options they may not have considered.”

More information: www.farmdiversity.com.au

farmdiversity.com.au helps farmers discover their best options for diversification by giving them two ways to search: by where they live, or by plant or livestock industry that interests them.

The farmdiversity.com.au website will:

1. Ensure diversification really is for you

2. Identify what ventures you could realistically diversify into, according to where you live

3. Provide practical information on how to diversify and where to go for more information

4. Tell the stories of people who have diversified.

14

RURAL DIVERSITYIssue No. 16 / SPRING 2014

Paul and Joan Trevethan, Howlong, NSWEnterprises: cropping, sheep, fish, olives, farm forestry and ecosystem servicesWhen Paul Trevethan talks about his livestock, he is not just referring to his 3,700 Merino and White Suffolk-cross sheep. The 2,400 hectares he manages with his wife Joan and son Ian are also home to 80,000 freshwater fish.

The family added fish farming to its traditional cropping and livestock operations nearly 20 years ago and has since added an olive plantation, farm forestry and ecosystem services to the enterprise mix.

The aim was to diversify and spread the risk of drought, as well as generate greater returns from their land and water assets by tapping into higher-value markets. Environmental sustainability and encouraging biodiversity have been an important philosophy underpinning their operations.

After two years researching the market and meeting key players, the Trevethans sold their cattle to fund the aquaculture venture. This involved an investment of $1 million in infrastructure and a significant investment of time to develop their skills, including a TAFE course in aquaculture.

“We had good water, an area of soil that was ordinary for agriculture but perfect for fish farms and geographically close markets, but we didn’t have much industry knowledge,” Paul said.

In identifying relevant supply chain relationships, the Trevethans aligned with fish wholesalers, rather than end users. Successful diversification also hinged on understanding their strengths and outsourcing where necessary. They now sell about 15 tonnes of fish each year, netting around $250,000.

The family diversified into olives in the mid-1990s, but shortly after they planted 2,500 trees managed investment schemes (MIS) entered the industry flooding the domestic market. The trees are now in hibernation.

They initially ventured into farm forestry to correct dryland salinity concerns. They have planted about 80,000 seedlings, mostly radiata pines, eucalypts and silky oaks. The trees provide no income in the short to medium-term. However, they provide immediate benefits in shelter for livestock and ecosystem services, and may add future value to the farm.

Starting with just one property, the Trevethans now own four, lease one and share-farm three others. In all of their ventures they apply the same principles: balance production; value human capital; and assess risk and return.

Paul said diversification had helped them build their assets, but had also created an interesting and personally rewarding business. “Joan and I believe diversification is an important part of our farm succession plan, as it has hopefully made the business satisfying to come back to.”

Bernard and Margaret Brain, Ouse, TasmaniaEnterprises: Fine wool, prime lamb, Angus stud, beef herd, hay, cereals, essential oils, poppies, vegetable seed crops, vineyard, pasture and pasture seed. The story of farming on Bernard and Margaret Brain’s Derwent Valley property is one of constant evolution and refinement over more than half a century. They are always looking for new market opportunities and a better bottom line.

The Brains have four enterprises: livestock, essential oils, cropping and, most recently, a vineyard. They have trialled a wide variety of crops over the years — as many as 20 in the past two decades. Some were not successful; others have come and gone as economic or agronomic factors changed.

An agricultural downturn in the late 1960s and a dramatic fall in wool prices in the early 1970s provided the impetus for ongoing diversification, and the Brains were among a group who funded an evaluation of alternative agricultural enterprises for the region.

On the ‘possible’ list was essential oil production and the Brains ran a viable peppermint oil business for 30 years

before falling prices and a high Australian dollar made it difficult for local growers to compete. Other essential oil crops have been trialled, including parsley, dill and fennel (which is still produced commercially), often linked to research at the University of Tasmania.

Regular broadacre crop rotations include feed and malting barley, feed wheat, hay and field peas. Poppies have been grown for more than 30 years and a $1.2 million irrigation expansion over the past 10 years allows for more horticultural crops, irrigated pasture and increased yields from traditional dryland crops such as barley.

In the past decade, sheep operations have been revised in light of changing markets and the 4,000-head flock is now 50:50 wool-meat production.

Bernard established a vineyard in 2002, which came from a personal interest in wines and winemaking. While his home brew proved “a bit hit and miss”, the

property is ideal for high-quality, aromatic cold climate grapes, and supplies a winery.

Bernard said the importance of multiple enterprises was highlighted in 2010 when three individual setbacks hit: low alkaloid levels reduced poppy returns; bad weather cut grape yields; and a bushfire cost agistment and destroyed fencing. “If we had just been sheep, cattle and poppies, we wouldn’t have had enough to get us through,” Bernard said.

Diversification requires a significant time commitment and with just three full-time staff, including himself, Bernard admitted he probably does more hours than he should to stay on top of everything. However, investment in irrigation and other equipment has led to efficiency improvements and an increase in gross farm income by 120 per cent over the past eight years. “There are still times when things are not done in a timely fashion, so there is room for improvement,” he said, “but there are only so many hours in a day.”

Paul and Joan Trevethan added fish farming to their traditional cropping and livestock operations nearly 20 years ago and have since added olives, forestry and ecosystem services.

15

Ready-to-go lucerne research puts growers in controlAustralia’s $95 million-a-year lucerne seed industry is in a stronger position to defend itself against the devastating lucerne seed wasp, following RIRDC-funded research that has equipped growers with improved management strategies.

The strategies have been built on lessons learned from the 2011-12 wasp plague that cost the Australian industry up to 80 per cent of its crop. More than 90 per cent of lucerne seed is produced in South Australia, and the plague occurred in the Keith district — the heart of the industry.

On a national scale, the lucerne seed industry is comparatively small, worth $95 million a year. Seed exports are worth $30 million and domestic sales are valued at $9 million. Much of Australia’s multi-billion dollar livestock industries rely on improved pastures for their sheep, cattle and horses, and around half of the 8.6 million hectares sown to pasture for grazing and fodder production is lucerne.

Two pieces of RIRDC-funded research, both targeting management strategies, have helped the lucerne seed industry recover from the plague, and prepare for future events.

The lucerne seed wasp has long been recognised as an industry threat; the report Evaluating and Managing Lucerne Seed Wasp in Lucerne Seed Crops, and the management guide Living with the Enemy were prepared a decade before the most recent plague.

During the 2011–12 plague, RIRDC and Lucerne Australia were able to respond quickly, providing growers with information on the most effective strategies to protect their crop during the plague and in following seasons.

A one-page management summary has been widely distributed to help growers adopt preventative practices, which include reducing potential hosts (usually unmanaged plants on adjoining land) and changing the timing of their harvest.

Keith-based lucerne grower Joe Cook said having the research to hand when the plague broke out was incredibly valuable. He lost up to 80 per cent of his seed harvest in the 2011–12 season and admits the wasps had been a sleeping issue for the industry.

While an earlier plague had prompted the original research, seasonal conditions had not favoured a build-up again until 2010-11, when the wet summer resulted in a lot of unmanaged lucerne plants setting seed. These provided hosts for the wasps and pest numbers exploded the following summer.

Joe said many crops looked good that year, with high numbers of seedpods, which misled many growers into expecting high yields. But wasps had laid their larvae inside the pods and the larvae consumed the seed nutrients.

“Although we knew the research was there, we were still blindsided by the plague,” Joe said. “But we were able to pick up the research report and work out what had happened and why, and how to manage our risks for the following season.”

The Living with the Enemy report had identified that there were no effective chemical control options for the wasps, so few growers spent time or money on sprays. Joe said those who did spray suffered more severe crop damage, as the chemicals also killed beneficial insect species.

RIRDC is also funding an in-field lucerne seed fertiliser trial near Keith, in South Australia. This three-year independent trial began in April 2012, with plots in both dryland and irrigated paddocks. It is assessing 30 fertiliser products in a range of forms at different application rates.

While similar trials have been conducted for lucerne fodder production, this is the first large-scale trail of fertiliser products and application rates assessing both fodder and seed production.

More information: Dr John de Majnik, RIRDC Senior Program Manager 02 6271 4138 john.demajnik@rirdc.gov.au

Lucerne seed exports are worth $30 million and domestic sales are valued at $9 million.

Testing for damaged seedA simple test developed in the 1960s has been revived to help growers identify the extent of seed damage during harvest, so they can immediately adjust header operations.

The test was uncovered in a review of existing lucerne research by South Australia’s James De Barro, who led the five-year project Understanding and managing the causes of abnormal seedlings in lucerne for the RIRDC.

Mr De Barro, a former lucerne seed grower himself, said the test simply involved taking 100 seeds from the header bin during harvesting and soaking them in a ferric chloride solution. Any damaged seeds would turn black within 15 minutes.

The test identifies even hairline fractures in seed casings that indicate damage to the seed embryo, which can result in critical plant deformities such as broken leaves, or missing leaves and root systems. Protecting the viability of the seed is crucial, he said.

(continues on page 18)

Lucerne seed damage test kits are available from Mr De Barro, through Alpha Group Consulting.

16

RURAL DIVERSITYIssue No. 16 / SPRING 2014

Regional planning makeover to strengthen agricultureResearch takes a closer look at the ‘levers’ that could be used to improve regional agricultural performance.

A new Value Assessment and Development Framework has been designed to better understand the competitiveness of agriculture on a regional scale.

RIRDC Business Development Manager Vicki Woodburn said the initiative was part of RIRDC’s core role to facilitate research in areas that affect a wide range of rural industries and communities.

The new methodology for assessing and managing regional research needs has been developed by the Tasmanian Institute of Agriculture (TIA) and tested through an assessment of the agricultural sector in North-West Tasmania. Separate assessments have also been completed for Far North Queensland and the NSW Riverina.

Ms Woodburn said identifying common issues or barriers that hindered agricultural productivity would help RIRDC provide better-informed national policy advice to help the agricultural sector develop. It would also identify research gaps that RIRDC could address.

“The studies will complement other strategic research activities being conducted as part of our National Rural Issues portfolio,” she said. National issues include climate change, natural resource management, health safety and welfare, capacity building and leadership, as well as international trade, foreign investment, food security and land and resource competition.

Leader of the team developing the new Value Assessment and Development Framework, Dr Laurie Bonney, from TIA, said it built on the traditional Strengths-Weaknesses-Opportunities-Threats (SWOT) analysis that is widely used as a planning tool in business and by governments.

It takes economic inputs and outputs — production, processing, jobs and income — and adds to them an analysis of a region’s natural, cultural, human, social, political, financial and built capital.

This is overlaid with an innovation review, which assesses demonstrated capacity for change, and identifies potential directions for further change and improved productivity.

Dr Bonney said innovation in agriculture and agribusiness was often thought of in terms of new products, such as purple carrots, but it extended to all aspects of business, including processing and marketing through

to supply chain and strategic management, governance and financing.

He said the Value Assessment and Development Framework also allowed stakeholders to identify what they would like to see happen in the region in future and the steps needed to make that a reality. These steps are grouped into four categories: economic, governance, knowledge infrastructure, and community and culture.

For example, the North-West Tasmanian study found there was minimal marketing innovation in the region. Most farming systems were based on tightly specified contracts or, conversely, opportunistic production systems. These short-term approaches hampered the development of long-term market perspectives and development. Market intelligence was often not shared and there were few initiatives to reward or share the benefits of innovation along the supply chain.

It also found that there was lack of diversity in terms of business structure and innovation, with a relatively insular view of market opportunities. Stakeholders identified that increasing diversity was crucial to improving the future competitiveness of the region’s agricultural sector. Attracting newcomers to North West Tasmania with different worldviews, educational and cultural perspectives, would be an effective strategy to help bring this about.

Improving information-sharing between producers and along the supply chain and exposure to new business models and methods were high on the list of actions developed by stakeholders to increase diversity and innovation.

More information: Vicki Woodburn, RIRDC Business Development Manager vicki.woodburn@rirdc.gov.au

It takes economic inputs and outputs — production, processing, jobs and

income — and adds to them an analysis of a region’s natural, cultural, human,

social, political, financial and built capital.

A new Value Assessment and Development Framework has been designed to better understand the competitiveness of agriculture on a regional scale

17

Testing for damaged seed(continued from page 16)

Mr De Barro’s research found that harvesting practices were the main cause of seed damage. Spraying, fertilisers, plant genetics, windrowing and weather damage were all discounted as significantly contributing to the problem.

Mr De Barro said buyers usually discount seed when the damage rate exceeds 15 per cent, sometimes cutting prices offered by as much as half.

“Some buyers have already reduced the rate of damaged seed they will accept from 15 to 10 per cent before applying discounts. “The lucerne seed industry has become much more competitive in recent years, so harvest damage is an issue growers need to keep on top of,” Mr De Barro said.

“Fortunately, the RIRDC project has made it relatively easy to identify when it is a problem so that growers can do something about it.”

Lucerne seed damage test kits are available from Mr De Barro, through Alpha Group Consulting, in Keith, South Australia.

New entrants to Australian agricultural industries report now availableWhile the number of younger farmers entering agriculture continues to fall, the Australian farm population remains ‘competitively young’ compared to other developed economies.

This is one of the key findings from the New entrants to Australian agricultural industries: Where are the young farmers? report recently released by RIRDC.

The report explores the declining numbers of young farmers in Australian agriculture and is aimed at those interested in the changing demographic structure of Australian farming and how these changes may threaten Australian food security or agricultural productivity.

Other findings include:

• The young have generally not yet established an equity share in a farm and are most likely to take advantage of better opportunities outside agriculture.

• In the majority of Australian farm businesses, the next generation will often choose to pursue a career outside farming.

• The number of farmers under 35 years of age has fallen by 75 per cent since 1976.

• There is little evidence that the declining number of younger farmers has any implications for Australia’s food security.

The report notes that the most important factor the number of under-35 farmers has been decreasing farm numbers due to farm aggregation leaving fewer opportunities for younger people to enter agriculture.

It appears that structural ageing is associated with declining rural populations and increased requirements for human service for farm households with ageing residents.

More information: Simon Winter, External Research Manager, 02 6281 5257 simon@swinter.com.au

Bee biosecurity bridges industriesA new website aims to help beekeepers optimise the health of their hives and, in turn, help farmers lift yields in crops that depend on honey bee pollination.

Partly funded by RIRDC in partnership with Horticulture Australia Limited (HAL), as well as the Department of Agriculture, the BeeAware website was initiated and developed by Plant Health Australia (PHA).

Following the launch of BeeAware by the PHA Chairman, PHA General Manager of Risk Management, Rod Turner said the online resource had a dual purpose: to help keep apiarists abreast of biosecurity threats to commercial hives, and to inform farmers of the productivity gains that honey bee pollination can provide in a range of agricultural and horticultural crops.

“The importance of pollination is often poorly understood,” Mr Turner said.

“Pollen can be moved by various means, including wind, birds and other insects.

“However, honey bees are the most important insect pollinator for a range of cultivated agricultural and horticultural crops.”

This tendency for certain crops to rely on honey bee pollination also means these crops are particularly vulnerable to yield losses caused by bee pests and diseases.

For example, the Varroa destructor mite has ravaged bee populations around the globe, but it is yet to reach Australia. Australia is the last major honey-producing country without the Varroa mite.

“Our strong biosecurity system has so far protected us from many bee pests that have hit hives hard overseas,” Mr Turner said.

“But pollination experts agree that if one of these pests should make it into Australia, farmers will increasingly need to use commercial honey bee pollination services.”

European honey bees are thought to provide global pollination services worth up to $100 billion a year.

BeeAware further covers management practices for pests already existing in Australia’s honey bee population, such as the small hive beetle.

More information: www.beeaware.org.au

BeeAware aims to help beekeepers optimise the health of their hives

New entrants to Australian agricultural industriesWhere are the young farmers?

FEBRUARY 2014 RIRDC Publication No. 14/003

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RURAL DIVERSITYIssue No. 16 / SPRING 2014

Future leaders hone their skills In July, 37 Australian university students with a passion for agriculture gathered in Canberra at the 2014 Horizon Scholarship Workshop, an initiative of RIRDC in partnership with industry.

The Horizon Scholarship program, sponsored by industry and government, supports students through their undergraduate studies by providing a bursary and assistance in the form of mentoring, professional development and industry placements.

The three-day workshop gave scholars the opportunity to develop leadership skills through activities that promoted teamwork, critical thinking, presentation skills, negotiation and public speaking. A dinner gave scholars the chance to mix with agricultural and industry leaders, members of parliament, the media and researchers.

Lauren Crothers, a third year Bachelor of Agribusiness student from the University of Queensland, said the workshop provided an opportunity to network with students

and industry representatives such as farm adviser Catherine Marriot and consultant Georgie Somerset.

“The workshop made me realise there are enormous opportunities available to young people in agriculture,” she said. “I developed confidence in my abilities over the three days and this will help when being interviewed for jobs.”

In the next few years Ms Crothers, who hails from Dirranbandi in southwest Queensland, wants to work in stud and commercial sheep operations, learn from industry leaders and run a flock on agistment. She hopes to one day own her own farm.

Sam Coggins, a first year Bachelor of Science in Agriculture student at the University of Sydney, said the best part of the workshop was gathering with others who are passionate about agriculture.

“One highlight was the harsh but constructive comments we received for our presentations,” he said.

“It was a great reminder that although we are Horizon Scholars, we must work exceptionally hard to become agricultural leaders.”

Another highlight for Sam was discussing the future role of agriculture with Minister for Agriculture Barnaby Joyce, the Deputy Prime Minister Warren Truss and Member for Canberra Gai Brodtmann.

Sam said he is motivated by the challenge of feeding an extra two billion people with fewer resources and climatic instability by the year 2050. He hopes to play a role in preventing a future global food shortage.

“The workshop transformed my public speaking skills and my ability to use the media,” he said. “I now have a list of contacts that will be useful in the future.”

More information: Margo Andrae, Horizon Scholarships coordinator: margo.andrae@rirdc.gov.au

University of Queensland’s Lauren Crothers, a third year Bachelor of Agribusiness student (left), enjoyed meeting Minister for Agriculture Barnaby Joyce with fellow Horizon Scholar Matthew Rogan who is studying a Bachelor of Agricultural Science, also at the University of Queensland.

University of Sydney student Sam Coggins, in his first year of a Bachelor of Science in Agriculture degree (right) says a highlight of the 2014 Horizon Scholarship Workshop in Canberra was meeting Parliamentary Secretary to the Minister for Agriculture Senator Richard Colbeck.

RIRDC hosts graduate program visitRIRDC recently hosted a visit from a number of participants in the Department of Agriculture’s graduate development program. As part of the visit senior RIRDC staff provided overviews of RIRDC’s R&D portfolio.

The program offers successful applicants three workplace rotations designed to expose them to the diversity of the department’s work, including areas such as trade and market access, biosecurity, agricultural productivity, sustainable resource management and information services, and the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). ABARES is the Department of Agriculture’s research arm.

In addition to a suite of training programs, graduates in the program undertake a major project with fellow graduates, including a five-day industry visit.

More information: Margo Andrae, RIRDC Program Manager margo.andrae@rirdc.gov.au

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NEW PUBLICATIONS FROM THE RURAL INDUSTRIES R&D CORPORATIONMost of our publications are available for free. Download from our website www.rirdc.gov.au

of the Australian dollar however, there were a number of lessons learnt from the few periods of elevated exchange rate.

The high Australian dollar and agrifood export

FEBRUARY 2014 RIRDC Publication No. 14/009

AusAgLCI - A Life Cycle Inventory database for Australian agriculture, 14-045

Country specific Life Cycle Inventory (LCI) for agricultural products is essential for Australian agriculture to undertake environmental impact studies related to food and fibre, especially where differences in management systems and regional climate, soils and vegetation significantly affect LCA results. The AusAgLCI project has delivered a scientifically robust, standardised and transparent

system for developing life cycle inventory specific to Australian agricultural production with key inventory being prepared for cotton, grains, horticulture, livestock feeds and sugar. Publication of AusAgLCI gives LCA practitioners access to country specific inventory that they can use to assess supply chains that contain Australian agricultural inputs.

AusAgLCI - A Life Cycle Inventory database for Australian agriculture

MAY 2014 RIRDC Publication No. 14/045

Screened bottom boards, 14-061

The core purpose of this research was to test the productivity differences between a conventional bottom board and a screened bottom board on a honey bee hive. The use of screened bottom boards may provide some advantages in an integrated varroa mite pest control program. The perception that the use of screened bottom

boards affects productivity due to draft is a major impediment to beekeepers considering their use and adoption.

Australian sustainable phosphorus futures

AUGUST 2014 RIRDC Publication No. 14/038

Phase 1: Analysis of phosphorus flows through the Australian food production and consumption system

Australian sustainable phosphorus futures - Phase 1, 14-038

The analysis in this report found that there are significant losses and inputs of phosphorus to the Australian food system. Despite being a net food exporter feeding approximately 60–70 million people, Australia is a net importer of phosphorus, with a net of 80kt of phosphorus imported into the country each year (mainly via imported fertilisers and phosphate rock). This analysis is important in

identifying intervention points in the system that would increase the resilience, efficiency and ‘closed-loop’ nature of the food system. It also enables individual sectors and associated stakeholders to assess the key sources and fate of phosphorus within their sector for sector-specific responses.

Who and what is RIRDC?

The Rural Industries Research and Development Corporation’s (RIRDC) core business is to maintain and enhance the productivity of the rural industries it supports and to address national rural issues through government-industry partnership.

RIRDC is specifically charged with managing investment in RD&E for those primary industries which are too small to set up their own RD&E entity and to address multi-industry and national interest RD&E needs. In do-ing so, RIRDC investments contribute to the delivery of outcomes against the National and Rural R&D Priorities set by the Australian Government.

The Corporation is the primary funding source for RD&E that investigates the potential of new plant and animal industries for Australia, and for providing support to new industries as they mature and grow.

The breadth of issues and industries RIRDC deals with is as varied as it is unique. RIRDC plays a vital role in the development of rural Australia and is the rural R&D corporation with the remit to manage multi-industry and national interest R&D.

ISSN: 1833-3311 RIRDC Pub No. 14/072

The high Australian dollar and agrifood export, 14-009

This report has gathered qualitative information from exporters of Australian agrifood and importers in Australia’s key markets to determine what impact the high Australian dollar is having on trade and how some businesses are learning to manage and adjust. It establishes that there has not been a comparable period of a high exchange rate since the float

Editorial: Coretext

Design: Downie Design

Enquiries

T: 02 6271 4100 E: rirdc@rirdc.gov.au web: www.rirdc.gov.au

Published by the Rural Industries Research & Development Corporation October 2014

PO Box 4776 Kingston ACT 2604