New and Emerging Industries Options for the Future. Dr Roslyn Prinsley General Manager New Rural Industries

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1 New and Emerging Industries Options for the Future Dr Roslyn Prinsley General Manager New Rural Industries

2 The history of Australian agriculture is a history of new and emerging industries

3 Outline Why new and emerging industries? RIRDC and new industries research and development Skills gaps and training

4 Why new industries? Pressure on Australian agriculture to diversify declining terms of trade increasing competition water reform climate change

5 Why new industries? New industries offer options for increased grower profitability diversification industries for a changing climate sustainable production alternatives resilient farming systems, regions & communities protection of genetic resource through farming regional eco style tourism (eg coffee, crocodiles) meeting consumer preferences

6 Other industries as a % of total agricultural GVP 16% in 1960 (Ag GVP $2.7 bil.) 29% in 2005 (Ag GVP $35.6 bil.) Growth in "other" agricultural industries $ mil Other Milk, meat, grains, sugar, wool / /06 Year

7 Exports products other than grains, sugar, meat and wool made up only 17 per cent of exports other industries nearly 50 per cent

8 New industries are long-term high risk market failure However Some will be a local/regional success eg coffee national success eg canola failure

9 New industries that have grown Canola Canola as a broadacre crop Now producing 2.4 million tonnes per year Industry value > $650 million pa Since the 1950s cotton, macadamia, mushrooms, soybean, mango, almond etc.

10 Olives Biofuels Truffles Wildflowers Crocodiles Alpacas Green tea Native fruits Dates Kangaroos Native grasses Red claw Which ones will succeed?

11 Picking winners is difficult. Which ones will succeed? Need diversity resilience - climate change, market volatility plan for failure Need a range to suit different regions farming systems and types farmer skills and capability

12 Funding for R & D a challenge for new industries Lack economies of scale Lack cohesion. Volunteer resources Under-investment by the private sector. Market failure Need for R & D greater than established industries. For , RIRDC received proposals totalling $9.8 million for new and emerging industries for about $1 million of available funds

13 Rural Industries R & D Corporation (RIRDC) A statutory authority in unique partnership with the Australian Government and rural industries to invest in research and development.

14 Knowledge in action RIRDC s Mission: To maximise the knowledge outcomes from our research and development investments for Australian industries and government in: new rural industries established rural industries national rural issues

15 RIRDC and New Industries Supporting/managing research and development National R & D Strategy for New and Emerging Industries (PIMC) New Rural Industries Australia New Industries for Climate Change Bioenergy Australia

16 Why is R & D critical? New rural industries need fundamental information to proceed and succeed. What is the market for new industries? Which varieties are best? How can they be profitably farmed and processed? These platform sciences enable new industries to establish, grow and be market tested.

17 New Rural Industries RIRDC is working with industry to: understand quality parameters of Australian olive oil. assist the industry to meet international quality standards understand and control pests and diseases produce a manual for growing olives Olives GVP $100million 2,500 growers

18 Research capacity Research capacity for rural industries has declined in Australia over the last five years Universities complain that bright students are not enrolling in science, or agricultural science. State Departments and regional universities lack capacity to attract new staff to regional areas

19 Industry capacity shortage of skilled and unskilled labour across agriculture. current labour force is ageing and that there are few new entrants. new industries, in particular, shortage of leaders

20 RIRDC - Training in the rural sector Australian Rural Leadership Program Scholarships program postgraduate& undergraduate (Investing in Youth) Rural Womens Award and AICD Mentoring youth and women Heywire for youth Training within research projects

21 Conclusion The need for new industries is increasing with: Climate change Water reform Global competition However, new industries are not well organised Clear market failure Considerable knowledge needs Capability for R &D and industry a constraint. RIRDC constrained in ability to address unmet demand for R & D.