Australian Ginger Industry Strategic plan

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1 Australian Ginger Industry Strategic plan

2 Contents Contents Introduction (Our industry) Our Plan Australian Ginger Industry Strategic Plan Investment and Action plan Delivering the Plan Responsibilities for delivering the plan Role of AGIA... 7

3 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. 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 and understand that to remain competitive in a global trading environment whilst continuing to grow production a stronger focus on growing markets to a level that will support profitable and thriving ginger businesses is needed. 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.

4 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. 4.0 Situational Awareness This section under development 4.1 Positioning Opportunity Domain: Target Markets and Customers: Product Scope and Offerings: Value Proposition to Customers: Competitive Intent: Sources of 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

5 Competitive Advantage: aid), distinctive flavour characteristics for delivering an enjoyable and exotic eating experience ; 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 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 1.2 Harness innovation to be globally competitive Investigate mechanical opportunities for innovation and increase grower efficiency (i.e Seed cutting technology) 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 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.

6 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. KPI Greater than 50 per cent of growers registered under an industry COP by 2018 Possible suite operation efficiency identified as cost saving strategies. Greater awareness of production costs for growers Understanding of farm productivity barriers to competiveness Greater than 50 per cent of ginger growers adopting farm management technology in their production and postharvest business model. Improved tissue culture production of ginger clean planting material Best practice ginger seed production manual Greater than 70 per cent of growers using clean seed planting material by 2018 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 Gather market intelligence and identify priority (domestic and 2.2 Promote effectively to new markets Enhance ginger industry s capability to compete effectively in domestic and international markets Facilitate collaboration between ginger producers and their supply

7 export) markets for Australian ginger Prioritise and explore new markets for Australian ginger Identify market distribution channels for new markets and build knowledge about their preferences for ginger products 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. chain partners to establish successful supply chains Monitor and evaluate the effectiveness of marketing/ promotion campaigns 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 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 Put in place for commercial ginger growers a PHA Biosecurity Levy to Partner with the Australian Government to identify measures

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

9 6.0 Investment and Action plan Current projects Proposed projects Implementation Strategy Action Budget 1.1 Improve Determining pathogenicity and $42,000 industry pest and disease methyl bromide control of ginger Nematodes (Mike Smith, QDAF) management Improving Soil Health to $29,000 Suppress Soilborne Diseases of Ginger (Mike Smith, QDAF) Induced Pythium resistance in $70,000 ginger (Jamie Zapp, Hortus) *Project terminated May 2016 Technical support, extension and $70,000 minor use development for the Ginger Industry (Russell Parberry/ Rob Abbis, AGIA) Develop an industry Code of $30,000 Practice that covers best practice supply chain management, food safety, biosecurity and environmental stewardship 1.2 Harness innovation to be globally competitive 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 $27,000 $10,000 $5, Encourage whole of industry awareness and adoption of clean ginger seed 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

10 production practices and benefits Implementation Strategy Action Budget 2.1 Position of the Define size and quality standards $5,000 Australian ginger for industry use brand 2.2 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 Implementation Strategy Action Budget 3.1 Build Regional Ginger Extension $300,000 leadership, communication and engagement with industry stakeholders Program: Incorporating communication and delivery of industry development functions (Russel Parbery, AGIA) 3.2 Execute effective, accountable levy Undertake a benchmarking study for key production indicators Identify and invest in industry leadership development for tommorow s industry leaders Deliver annual industry extension events and workshops Review research and development activities and report on effectiveness $15,000 $20,000 $15,000 $20,000

11 programs that support this plan Ginger Strategic Plan industry facilitation and priority setting (Graeme Elphinstone) Communicate and implement a PHA Biosecurity for the ginger industry 3.2 Drive strong and effective partnerships with priority stakeholders Continue to respond with scientifically proven arguments to Biosecurity Australia requests to protect ginger industry from foreign pests and diseases of concern. $2,000 $15,000 $10, 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 result from commitments given by ginger industry stakeholders.

12 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.