Australian Ginger Industry Strategic Plan

Transcription

1 Australian Ginger Industry Strategic Plan Prepared by Jason Keating for the Australian Ginger Industry Association, 2016

2 Contents 1.0 Introduction (Our industry) Our Plan Our Strategy Situational Awareness Positioning Australian Ginger Industry Strategic Plan Investment and Action plan Delivering the Plan Responsibilities for delivering the plan Role of AGIA Appendix... 15

3 2005/ / / / / / / / / / / / / / / /21 GVP ($M) 1.0 Introduction (Our industry) The Australian ginger industry is a world leader in producing food safe quality ginger. The combination of our unique flavour, food safety regulations and heritage is something of great pride for those involved in the industry. Ginger production takes place in Australia s sub-tropical and tropical production regions. The main concentration of growers is located within South East Queensland, including the Wide Bay region. Other small areas of ginger are grown in in Far North Queensland and Northern New South Wales. In 2015, land under ginger cultivation was about 260 hectares and the principal ginger varieties grown in Australia are Queensland and Jumbo (Canton). Following the introduction of a Research, Development and Extension levy in 2010 a better account of the industries metrics indicate an upward trend in production volumes peaking at 8000 tonnes and a gross value of AUD$32 million in 2014/15 (figure 1). The market distribution of ginger is about 80 per cent of ginger produced is sold to the domestic fresh ginger market and the remaining 20 per cent to the domestic ginger processing sector. T O N N E S Processed Fresh YEAR Total Figure 1. Australian ginger production, value and trends. Globally, Australian ginger production accounts for less than one per cent of production with China and India leading the world in fresh ginger production with a share of over 50 per cent. Australian ginger growers are positive about their future but acknowledge the importance of growing markets to remain competitive in a global trading environment.

4 2.0 Our Plan The new strategic plan for the Australian ginger industry reflects the objectives, strategies and activities that are needed to: underpin a food safety platform for Australian ginger increase consumption and promote market expansion for Australian ginger promote best practice growing and management The activities and actions have been developed by the Australian Gingers Industry Association (AGIA) to navigate the industry investment over the next five years to tackle the many challenges and opportunities confronting the industry. The process used for the development of this Strategic Plan has included a combination of techniques which has included desk-top research and analysis, grower and processor interviews and a whole of industry stakeholder workshop on the 2 nd of February, During this workshop participants considered strategies to ensure the long term viability of the Australian ginger industry. A list of priority action areas was devised that will continue to build the foundations for the industry to be recognised globally for the production of Food Safe Quality Ginger. Priority areas were grouped in three broad pillars of Marketing; Production and Extension. 3.0 Our Strategy Our Industry Mission Statement is to be recognised globally for the production of Food Safe Quality Ginger. Our Industry Production Target is to by 2021 increase the national production of ginger from 8,000 tonnes per annum to 12,000 per annum and sustain profitable farm gate prices.

5 4.0 Situational Awareness Presently, ginger production in Australia is fulfilling the fresh market domestic demand which has resulted in a decline in farm gate prices for growers. Favourable growing conditions coupled with improved biosecurity and management practices are seeing increases in yields and quality. Over the horizon, there are positive signals for the demand of Australian ginger processed products, like ginger beverages. In time continued incremental growth in the ginger processing sector will underpin the long term sustainability of the Australian ginger industry. Globally consumers are moving towards healthy eating lifestyles choices and ginger is well positioned to capitalise on the health and wellbeing benefits associated with the consumption of ginger. In Australia fresh ginger consumption per capita is low in comparison to our Asian neighbours who eat ginger daily. Opportunities to increase consumption are possible with a focused effort on marketing and promotion of Australian quality and safe food credentials. Investigation of the scope for Australian ginger overseas may present opportunities for Australian growers. In particular the Australian Governments signing of Free Trade Agreements with North Asian countries (Korea, Japan and China) may help build prosperous links for processed and fresh ginger exports. 4.1 Positioning Opportunity Domain: Target Markets and Customers: Product Scope and Offerings: Value Proposition to Customers: Competitive Intent: Sources of Competitive Advantage: Asian cooking; Natural health and well-being Australia and overseas Fresh whole ginger; Processed transformed; Ingredient; Seed ginger. Food safe; high quality; flavour; healthy For growers to underpin their business practices to ensure Quality Assurance protocols are in place and a reliable supply of ginger Food safety, health and therapeutic benefits (i.e. digestive aid), distinctive flavour characteristics for delivering an enjoyable and exotic eating experience ;

6 5.0 Australian Ginger Industry Strategic Plan Investment Priority Objective 1 Rationale Productivity Help improve grower productivity Meeting customers demands must be complemented with improving the economic, social and environmental returns to growers so that the farms remain profitable and can grow. The threat of fresh ginger imports from other countries that have some advantages, such as cheap labour, will increasingly put pressure on the performance of our farm businesses. This objective seeks to promote production systems that improve efficiency through the production channel that can lower costs and effect import replacement with Australian ginger. This will assist in the long term viability of the Australian ginger industry. Strategy 1.1 Improve industry pest and disease management Actions Investigate nematode control measures by understanding pathogenicity and methyl bromide controls growers 1.2 Harness innovation to be globally competitive Investigate mechanical opportunities for innovation and increase grower efficiency (i.e Seed cutting technology) 1.3 Encourage whole of industry awareness and adoption of clean ginger seed production practices and benefits Deliver industry lead certification and improved seed distribution systems for ginger seed. Provide industry technical support and minor use permit application support for industry members. Develop an industry Code of Practice that covers best practice supply chain management, food safety, biosecurity and environmental stewardship Investigation of modern agriculture practices like drones, spatial mapping technologies and Apps to help grower decision making and management. Construct a knowledge base of innovative machinery solutions that will guide growers with a lower cost of production

7 Result Best practice supply chain manual for the ginger growers A voluntary Code of Practice developed for growers Better control of ginger nematodes Effective and ongoing technical support and minor use development provided for the Ginger Industry with a focus on biosecurity. Possible suite operation efficiency identified as cost saving strategies. Greater awareness of production costs for growers Understanding of farm productivity barriers to competiveness Improved tissue culture production of ginger clean planting material Best practice ginger seed production manual KPI Greater than 50 per cent of growers registered under an industry COP by 2018 Greater than 50 per cent of ginger growers adopting farm management technology in their production and postharvest business model. Greater than 70 per cent of growers using clean seed planting material by 2018

8 Investment Priority Objective 2 Rationale Marketing Increasing demand for Australian Ginger Over the life of this plan it is anticipated that production trends will continue to grow in volume. Increasing levels of consumption to absorb the additional production is a high priority. The industry having revised its focus is aiming to be proactive and build markets and branding of ginger as the spice for life. Knowing the customer and the market opportunities will be critical to be competitive and profitable in the future. Strategy 2.1 Position of the Australian ginger brand Execute strategies to capitalise on the Food Safe Quality Australian ginger brand 2.2 Promote effectively to new markets Enhance ginger industry s capability to compete effectively in domestic and international markets Gather market intelligence and identify priority (domestic and export) markets for Australian ginger Facilitate collaboration between ginger producers and their supply chain partners to establish successful supply chains Prioritise and explore new markets for Australian ginger Identify market distribution channels for new markets and build knowledge about their preferences for ginger products Monitor and evaluate the effectiveness of marketing/ promotion campaigns Result Consumers seeking by choice a trusted brand New markets developed for Australian ginger KPI An increase in the industry Gross Value of Production ($GVP) matched to production targets. Co investment by industry stakeholders in market development activities A quality reputation for Australian ginger by industry and consumer stakeholders Consumer driven demand for Australian ginger Greater than $50,000 of coinvestment secured per annum

9 Investment Priority Objective 3 Rationale Extension Industry extension and leadership Ensuring that the ginger industry has the right balance of structures and practices in place that are accountable to AGIA members and levy payers is critical to building a high level of trust within the ginger industry value chain. AGIA is focussed on building strong relationships and creating an environment to exchange knowledge and ideas with industry members, government, service providers and the community. A focus is to improve the understanding of ginger production and marketing throughout the entire supply channel. As a priority our industry will collaborate with members and plant Heath Australia (PHA) to provide an effective and coordinated means of contributing to policy making and direction setting on major ginger plant health issues. Strategy 3.1 Build leadership, communication and engagement with industry stakeholders 3.2 Execute effective, accountable levy programs that support this plan 3.3 Drive strong and effective partnerships with priority stakeholders Actions Pilot a Regional Ginger Extension Program to enable industry relevant Research and Development outcomes Maintain annual industry extension events and workshops Analysis of farm productivity benchmarks including paddock yield and quality Identify and build capacity of grower members to lead industry projects including engagement in industry representation duties Put in place for commercial ginger growers a PHA Biosecurity Levy to coordinate and develop policy for direction setting initiatives at a national level Ensure the ginger Industry Advisory Council (IAC) projects are focussed on this plan and reviewed Communicate the management and outcomes of the levy program Investigate options and implementations of a suitable marketing levy for Australian ginger growers Partner with the Australian Government to identify measures that are effective and scientifically proven in protecting the Australian ginger industry from pests of concern like Burrowing Nematode (Radopholus similis) from Fiji. Design and implement an corporate partnership program for industry partners

10 Result An effective peak body that benefits the ginger industry An effective ginger industry extension program measured annually and reviewed A PHA Biosecurity ginger industry levy introduced for all growers of ginger Satisfactory return on investment and value for industry levy expenditure More resources to implement this plan Corporate partnership program in place by 2017 Industry leading performance benchmarks identified and monitored KPI A 10 per cent increase in AGIA membership per annum An effective website and RD&E platform used by industry PHA Biosecurity levy in place by High satisfaction rating for RIRDC R&D investment peer review Increase in AGIA operating budget of 10 per cent per annum

11 6.0 Investment and Action plan Current projects Proposed projects Investment priority: Productivity Objective: Help improve grower productivity Implementation Strategy Action Budget 1.1 Improve Determining pathogenicity and $42,000 industry pest and disease management methyl bromide control of ginger Nematodes (Mike Smith, QDAF) $29, Harness innovation to be globally competitive Improving Soil Health to Suppress Soilborne Diseases of Ginger (Mike Smith, QDAF) Induced Pythium resistance in ginger (Jamie Zapp, Hortus) *Project terminated May 2016 Technical support, extension and minor use development for the Ginger Industry (Russell Parberry/ Rob Abbis, AGIA) Develop an industry Code of Practice that covers best practice supply chain management, food safety, biosecurity and environmental stewardship Best practice supply chain management information for the ginger industry (Doris Blesing) Scoping study for modern mechanical opportunities that can increase grower efficiency Construct a knowledge base of innovative machinery solutions that will guide growers with a lower cost of production $70,000 $70,000 $30,000 $27,000 $10,000 $5, Encourage whole of industry awareness and adoption of clean ginger seed practices and benefits Application of spatial mapping technologies and Apps to help grower decision making and management. Improved tissue culture production of ginger clean planting material (Sharon Hamil, QDAF) $10,000 $137,000

12 Investment priority: Marketing Objective: Increasing demand for Australian Ginger Implementation Strategy Action Budget 2.1 Position of the Australian ginger brand Define size and quality standards for industry use $5, Promote effectively to new markets Identify all food safety standard requirements for Australian ginger and publish Develop and action an Export Plan platform for Australian ginger that is underpinned by research, market access and relationships. Map the ginger industry supply chain to identify possible efficiencies. Implement a marketing levy for the Australia Ginger Industry $2,000 $20,000 $2,000 Proposed internal resources

13 Investment priority: Extension Objective: Industry extension and leadership Implementation Strategy Action Budget 3.1 Build leadership, communication and engagement with industry stakeholders Regional Ginger Extension Program: Incorporating communication and delivery of industry development functions (Russel Parbery, AGIA) $300,000 Undertake a benchmarking study for key production indicators $15,000 Harness industry leadership development for tomorrow s industry leaders $20,000 Deliver annual industry extension events and workshops $15, Execute effective, accountable levy programs that support this plan 3.2 Drive strong and effective partnerships with priority stakeholders Review research and development activities and report on effectiveness Ginger Strategic Plan industry facilitation and priority setting (Graeme Elphinstone) Communicate and implement a PHA Biosecurity for the ginger industry Continue to respond with scientifically proven arguments to Biosecurity Australia requests to protect ginger industry from foreign pests and diseases of concern. $20,000 $2,000 $15,000 $10,000

14 7.0 Delivering the Plan The Australian Ginger Industry Association (AGIA), acting as a Peak Industry Body for the whole industry supply chain, will continue to coordinate implementation of this industry-wide plan. A continued and strong emphasis on fostering collaborative partnerships will be needed to ensure success. This plan will primarily be used to guide industry investment from Commonwealth and State Government partnerships and other revenue sources over the next five years. Leadership and coordination for this Strategic Plan will continue to be directed by the RD&E Sub-Committee of AGIA in partnership with the Rural Industries Research and Development Corporation (RIRDC) as the preferred Commonwealth industry levy funds manager During the 5 year implementation of this plan relevant sub committees will be formed to improve the reporting and accountability of RD&E projects. 7.1 Responsibilities for delivering the plan Implementation of this plan is a shared responsibility and practice change can only occur if individual businesses that are part of the Australian ginger industry take responsibility for applying the recommendations from industry investments. The plan relates to all parts of the ginger value chain from the farm to the consumer. Achievements of the vision and all the outcomes will happen as a result from commitments given by ginger industry stakeholders. 7.2 Role of AGIA Through AGIA s recognised service provider representing the Australian Government, Rural Industries Research and Development Corporation (RIRDC), the AGIA will continue to build effective partnerships for research and development capacity that are underpinned by the Strategic Plan. Resources and investment priorities will be guided by the Investment and Action Plan that will be reviewed each year and form the basis for guiding ginger industry development.

15 8.0 Appendix Australian Ginger Industry Association Strategic planning team Alison Robb RIRDC Canberra Shane Templeton President AGIA; Ginger grower Eumundi Rob Abbas Industry Consultant Sunshine Beach Noel Stevens Ginger Grower Gatton Rus Parbery AGIA Nambour Jason Keating DAF Gympie Strategic Planning Day workshop participants 2 nd of February 2016 Richard Mears Ginger grower Yandina Shane Templeton Ginger grower Eumundi Noel Stevens Ginger grower Gatton Ron Abbas Industry Consultant Sunshine Beach Anthony Reibein Ginger grower Bundaberg John Allen Ginger grower Glasshouse Mountains Mike Frampton Ginger grower Gympie John Dickfos Ginger grower Gympie Scott Kirkwood Ginger grower Nambour Kylie Templeton Ginger grower Eumundi Natalie Ginger grower Lower Wonga Richard Meyers Ginger grower Yandina Sharon Hamill DAF Nambour Ashley Gill Ginger grower Imbil Mat Johnston DAF Nambour Zane Nichols DAF Nambour Mike Smith DAF Nambour Jason Keating DAF Gympie Andrew Christadoulou Ginger grower Bundaberg Rus Parberry AGIA Nambour