Food Industry Comment

Proposal for a Culinary Herb & Spice R&D Levy

peter@mc.com.au (Peter McFarlane) — Sat, 12 Jun 2010 00:50:00 +0000

McFarlane Strategic Services is currently working with the Australian Herb & Spice Industry Association Ltd (AHSIA), and the Rural Industries Research & Development Corporation (RIRDC) to develop a national statutory R&D levy proposal and to undertake a broad industry consultation with all industry stakeholders. AHSIA president Robert Hayes has written the following open letter to all industry participants to explain the urgent need for the levy and consultation process.

To all herb and spice industry participants:

As president of the Australian Herb & Spice Industry Association Ltd (AHSIA) I am pleased to advise that industry participants will soon be able to formally consider a proposal to implement a statutory Research & Development (R&D) levy for the Australian culinary herb & spice industry to underpin the implementation of the Research and Development Strategy for the Australian Herb and Spice Industry 2006-2011. This is something that the industry has been discussing and planning since 2006.

Thanks to a strong focus on healthy eating habits and consumer demand for new, exciting, natural flavours for their food, the Australian culinary herb and spice industry has experienced solid growth over the past 20 years and further market growth is certainly possible.

It is also important to recognise that this growth in the market is underpinned by important research work undertaken by AHSIA in partnership with the Rural Industries Research & Development Corporation (RIRDC) on behalf of all industry participants.

AHSIA appreciates that the vast majority of industry R&D funding has been provided principally by contributions from the Australian Government through the R&D Corporations, as well as cash and “in-kind” support by government and private research providers, and from industry participants. The fact is we do get a lot of bang for the few bucks raised from industry.

This R&D work includes applications for Minor Use Permits for crop protectants for herbs and spices, minor use applications for new softer and more effective crop protectants, and the development of new biocontrol agents, are central to product integrity for all growers and other supply chain participants – processors, wholesalers, retailers (small and large) and ultimately the consumer.

Allied with this work is the need to develop crop specific Integrated Pest & Disease Management techniques and protocols and contribute to ongoing Integrated Pest Management (IPM) research. Our domestic crop protection regime also needs to be referenced and where possible harmonised to International Standards so as to enable herb and processed herb exports. As the industry grows and matures, marketing will also become an issue. This is all vital research, fundamental to the industry's future, and yet amazingly it is being carried by a relatively few active players in the industry who contribute both financially and with their time.

This situation is simply not sustainable and sooner rather than later the culinary herb and spice industry will need to implement more efficient and equitable methods of raising future R&D funds.

To assist in this objective Peter McFarlane from McFarlane Strategic Services has been commissioned to assist AHSIA and RIRDC to develop a national statutory levy proposal and to undertake a broad industry consultation with all industry stakeholders in accordance with the requirements of the Australian Government’s Levy Principles and Guidelines. During the levy consultation process industry participants may also contact Peter McFarlane at any time on mobile: 0418 839 836, and e-mail: peter@mc.com.au

The process for the introduction of a statutory levy involves a number of steps including; a detailed consultation process with the industry, the development of a "voting roll" for an industry vote, developing the "case" for the introduction of a levy and presenting that case in a detailed proposal to the Federal Minister for Agriculture. The proposal is then advertised and objections invited for a 60-day period - only then will the Minister consider whether to introduce Regulations to the Parliament to establish a Culinary Herb & Spice Levy.

It is anticipated that the required consultative process will take several months and will culminate in a levy payer’s ballot later this year. Subject to receiving industry endorsement, a formal submission will be made through RIRDC and the Federal Department of Agriculture, Fisheries & Forestry (DAFF) for the proposed new R&D levy, with a suggested operative date of 1 July 2011.

Whilst no decision has yet been made on the quantum of the proposed levy, an ad valorem figure of 0.5 % of the value at the first point sale is suggested. This figure is consistent with the vegetable industry levy arrangements that are currently in place.

It is suggested that the levy would include all culinary herbs and spices, (excluding varieties which already have a levy arrangement in place or under consideration - such as parsley, chilli and ginger).

If the suggested levy figure is subsequently endorsed by industry and approved by the Minister for Agriculture, based on our forward crop estimates, this levy would raise approximately $0.5 million in the 2011/12 year, placing the industry’s R&D program on a much sounder footing than is currently the case.

McFarlane Strategic Services is now working with AHSIA on the first step in this process, which is to develop a sound levy proposal to support the industry R&D business plan. The levy proposal will then be posted to all known industry participants for their input and discussed at regional meetings called for that purpose - commencing in July this year.

The first of the regional consultation meetings will be held in conjunction with the forthcoming at Hydroponic Farmers Federation Conference 2010, and is scheduled for 4.30 pm on Wednesday 30 June at Chisholm TAFE, Cranbourne Campus in Victoria. We encourage potential herb and spice levy payers to be there. A full schedule of regional consultation meetings will be circulated together with the levy proposal in early July.

We ask that all participants in the culinary herb and spice industry please consider joining AHSIA, and actively participate in the levy debate along the way. We certainly welcome constructive criticism and input, and look forward to your response as the process unfolds.

For further information on AHSIA, the levy proposal and the regional consultation program, please visit our website – where a membership form can also be found.

The AHSIA Committee and I look forward to meeting with as many industry participants as possible over the coming months, and to listening to your views on this important initiative.

Robert Hayes, president

Australian Herb & Spice Industry Association Ltd (AHSIA)

BIOSECURITY MARKET ADVANTAGE FOR RIVERLAND CITRUS GROWERS

peter@mc.com.au (Peter McFarlane) — Sat, 17 Apr 2010 01:44:00 +0000

Riverland citrus growers and packers are set to reap the financial rewards of the regions ongoing fruit fly area freedom status for the export of navel oranges and other citrus fruits to the lucrative United States market, according to SA Citrus Industry Development Board (SACIDB) Executive Officer Andrew Green.

The Riverland citrus industry is anticipating a strong US export season in spite of the lower crop estimates resulting from un-seasonally high temperatures which affected fruit set late last year. The good news is that fruit size is significantly increased so higher pack-outs of export market preferred sizes is anticipated, which should help to further boost returns to local citrus growers.

Unfortunately for citrus growers and packers in the Sunraysia and some areas in the Riverina the news isn’t so rosy. Recent QLD fruit fly outbreaks in those major production areas have resulted in suspension of their area freedom status in some areas for well beyond the duration of the forthcoming US export program.

The major impact for citrus packed for the US market in regions under area freedom suspension is that it must be cold treated according to strict disinfestation protocols, adding significant costs of up to $2,600 per export container, which together with pre-cooling and other logistical expenses could reduce grower returns by as much as $3 per carton, or $150 / packed tonne.

Providing the Riverland is able to maintain its fruit fly area freedom status, local growers and packers can avoid these additional costs, thereby providing a biosecurity market advantage to the Riverland citrus industry of at least $150 per packed tonne.”

Mr Green said the Board is also working closely with industry stakeholders to ensure their vigilance in helping to keep the State fruit fly free.

The SACIDB would like to acknowledge the ongoing commitment by the SA Government to maintaining South Australia’s biosecurity, and to recognise the operational efficiency of PIRSA Biosecurity in maintaining the Riverland’s fruit fly area freedom status, through implementation of quarantine programs including:

• strategically placed quarantine stations and random roadblocks where every vehicle is stopped and assessed for carrying host material;

• quarantine signage and disposal bins located at all main access roads into the State and into the Riverland quarantine zone; and

• a comprehensive fruit fly community awareness program, which was awarded the SA Media Award for Best Public Relations Campaign in 2009.

Mr Green said PIRSA Biosecurity has also demonstrated its expertise in the eradication of fruit fly infestations over an extended period and is well recognised across Australia as a leader in this work.

It is indeed impressive that the combination of these strategies has resulted in a drop in the average number of fruit fly outbreaks in SA per annum, decreasing from 4.6 for the 30 years prior to 2001 to less than 1 outbreak per year between 2002 and 2009, as well as a drop in the number of fly detections.

The battle for control of “mindspace” and “shelfspace”

peter@mc.com.au (Peter McFarlane) — Wed, 31 Mar 2010 03:19:00 +0000

So the wine industry's peak industry body is calling has called for laws to curb the surge in supermarket home brand wines (Weekly Times March 21 2010).

Well it sounds to me like the Winemakers Federation needs to do some homework to gain a better understanding of what is actually going on in the modern market place, and what they could do to actually help their members.

For starters I recommend Mr Strachan (as well as other wine and food industry leaders) read Store Wars The battle for mindspace and shelfspace by Judith & Marcel Corstjens (Published by Wiley 1999).

I found this book a real eye opener as it clearly explains how fast moving consumer goods – FMCG, (read “wine”) marketing, has become a struggle between the manufacturers (read “winemakers”) and the retailers (read Coles & Woolworths and their various liquor outlets), for the control of consumer “mindspace” and retail “shelfspace”. As Corstjens explains:

“Marketing for FMCG manufacturers now involves understanding retailers, their business and marketing strategies, their strengths and their limitations. The major aim of modern marketing is to affect the balance of power between retailers and their suppliers.”

It’s not only winemakers that are impacted by the battle for mindspace and shelfspace, all fast moving consumer goods including fresh produce, manufactured food and beverages are caught up in this marketing vortex. Unfortunately it is the increasingly powerful retail chains that are winning.

According to Corstjens the big issue for retailers is that manufacturer’s brands are available anywhere and everywhere, because that’s what manufacturers want, and what consumers come to expect. What retailers want are more customers in their stores. Retailers are only interested in manufacturers helping them to achieve this goal they are not in the least worried about whether a manufacturer can make a dollar out of it.

The battle for consumer mindspace involves the three basic consumer imperatives of convenience, price and quality. The battle is played out daily on the telly, on the radio and through the letter box, with retailers working their company name as an “umbrella brand” to attract customers and so weaken manufacturer brand loyalty with strategies such as Coles “everyday low prices”, Woolworths “the fresh food people”, and their “fresh market reports” etc.

Meanwhile the manufacturers continue to push their brand message with the best advertising agencies money can buy to insert their brands into the consumer mindspace, so strengthening brand loyalty (at the expense of store loyalty ) and the expectation that all retailers will have no option but to carry their leading brands.

Manufacturers these days are also working together to fight the retailers for consumer mindspace with their “Brand Power – helping you buy better” campaign. Recently we have also seen twelve of the best performing and longest-standing Australian wine families banding together under the banner of “Australia’s First Families of Wine”.

The battle for shelfspace works firstly by retailers building their networks, and addressing the convenience factor with “a store near you” strategy. For wine, Coles now have their Liquorland, Vintage Cellars, 1^st Choice, as well as their direct and online distribution channels. Woolworths have their Liquor Woolworths, plus Dan Murphy, BWS, and are now the largest takeaway liquor outlet in Australia. This increasing retail concentration also serves to weaken the manufacturers bargaining power.

Secondly manufacturers seek to occupy as much of the premium eye level shelfspace in as many retail outlets as can be negotiated. However, not all brands are equal, with some brands regarded as “traffic builders”, and other as “profit builders”. Obviously retailers need to balance store traffic with profits. In the past retailers were happy to just sell this shelfspace to manufacturers and make their margin on sales of branded product; but this strategy put retailers in a weaker bargaining position relative to manufacturers in their price / margin negotiations. These days retailers seek to maximise the value of their shelfspace.

The retailers initial strategy was to gradually replace manufacturer brands with Type one “no brand” generics, which not only helped them in their shelf space / margin negotiations with the manufacturers, but also attracted the more price sensitive customers into their stores with their “everyday low prices” (EDLP) strategy. Invariably this strategy reduces manufacture brand shelf space, lowering prices and manufacturer profitability. Unfortunately for the retailers everyday low prices is also a somewhat of race to the bottom with the “we will not be beaten on price” discount stores, so retailers needed to come up with a new strategy to restore their profitability.

More recently and perhaps of greater concern to manufacturers are the Type 2 “own brand” quality products that are aimed at replacing the leading manufacturer brands with store exclusive brands. This strategy not only further strengthens retailer negotiations with the manufacturers but builds store loyalty as these products can only be obtained from that retailer. This trend is most developed in the UK where Tesco’s and Sainsbury’s stock as much as 2/3 of their shelves with quality “own brands”, and continue to introduce over a 1,000 new products each year based on their own market research. Their customers trust the quality and value of these products, and have become loyal shoppers at their stores.

The manufacturers appear to have lost the war in the UK, and are losing it in much of Europe and the USA. The same is likely to happen in the growing consumer markets throughout Asia as the global supermarket giants expand into India, China etc. Australia is still a bit of a backwater, but the signs are well and truly there, so we had better be prepared.

Yes retail consolidation is an issue in Australia, and anti-trust legislation such as operates in the United States looks attractive, don’t hold your breath that similar legislation will ever be supported by Australian Governments.

The challenge for the Winemakers Federation of Australia (and other industry associations) is to work out what they can do now to strengthen their members hand in fighting this battle for mindspace and shelfspace.

The key to working with retailers is for food producers / manufacturers to know more about consumers and your products than they do – that way food producers can add real value to retailers business - and their own. The South Australian Government’s Thinker in Residence Prof Andrew Fearne worked with local food producers during 2008/09 to help them better understand the application of “Value Chain Thinking”; his report Sustainable Food and Wine Value Chains is also worth reading.

Primary Industries and Resources SA (PIRSA) has followed up on the Fearne residency by establishing the Value Chain Development Unit in 2009 to drive the uptake of value chain thinking and management through the agrifood and wine sectors in South Australia.

In the UK, the Kent Business School at University of Kent through its Centre for Value Chain Research (where Professor Fearne works) is helping the UK food & farming industry with businesses tools to obtain a greater understanding of their markets and the knowledge needed to help boost profits, through its DEFRA project.

Through the project, UK food businesses now have access to a free service providing analysis of supermarket shopper behaviour for individual products, or groups of food products, that will reveal detailed insights into which products are growing the fastest, who is buying them, where they are buying them and what else they are buying.

It would be great to have a similar facility for South Australian food businesses, perhaps operating through the SA Food Centre at Regency Park.

Murray Darling Basin Water Wars?

peter@mc.com.au (Peter McFarlane) — Sat, 27 Mar 2010 10:54:00 +0000

According to the United Nations, water, a vital source of life, has been known for centuries to be a major cause of tensions or conflict -- within countries, as well as among nations. With world demand for water increasing six-fold over the 20th century, there was no let-up in disputes over trans-boundary water issues, prompting some experts to predict that the wars of the 21st century will be fought over water.

Whilst I’m not suggesting we are headed to civil war in Australia with the allocation of water in the Murray Darling Basin, the political battle lines are certainly being drawn.

On one hand the political divide is about balancing the interests of the upstream states and the downstream states – in particular South Australia.

On another level it’s about balancing the interests of irrigators and the needs of river health, and about managing the expectations of their respective lobby groups.

In one corner stands Federal Labor’s Water Minister Senator Penny Wong who hails from South Australia. In the opposing corner stands newly appointed opposition spokesman for regional development, infrastructure and water, Nationals Senator Barnaby Joyce.

Joyce the boy from St George in south –east Queensland, lives only an hour’s drive away from the much demonised Cubbie Station, the largest privately owned irrigation property in the southern hemisphere is situated.

It will be very interesting to hear what position Barnaby Joyce adopts in his new role as opposition water spokesman, especially given his comments on ABC Radio back in December 2008, when Joyce caused considerable excitement in South Australia’s Riverland by suggesting irrigators in the country's south should receive tax incentives to relocate to Queensland.

Joyce’s argument is, “Water from flash floods in the Australia's north never make it far enough downstream to help southern irrigators, and there is no point to irrigators trying to sustain their crops in areas like the Riverland.”

One would hope that Joyce will now take a whole of Murray Darling Basin approach to his portfolio responsibilities however Queensland Nationals such as Warren Truss and Barnaby Joyce are unashamedly QLD first politicians.

To date Joyce has been proposing a decentralised model for control of the Basin: "I would have some overriding committee of people from every section of the basin relying on local government areas as having real power in the decisions made, rather than a single water minister," he said in January.

In contrast Federal Coalition leader Tony Abbott said as recently as February: "The Murray-Darling Basin is too important to be left to the states to manage; you can't have parochial management of a river system extending across four states.”

Whilst Joyce is the champion to his local St George irrigators for opposing Government purchases of water from irrigators for the environment, one suspects SA irrigators may have better prospects dealing with SA Senator Penny Wong, who at least is keen to see more water flowing into South Australia even if it is primarily for environmental purposes.

SA irrigators have had several tough years under severe water restrictions, forcing them to purchase critical water from upstream irrigators to keep their orchards alive, and are desperate to secure more reliable water allocations. The complication for them is that both Federal and SA Labor Governments are under enormous political pressure from the Greens and their own constituency to deliver improved environmental outcomes for the Murray Darling Basin.

A further complication is that whilst SA irrigators, the SA State and Federal Governments are solidly behind the proposed federal takeover of the Murray Darling Basin, this outcome is now somewhat clouded by the SA Liberal Opposition and Federal Coalition’s call for a referendum on the proposed federal takeover of the Basin.

But as Penny Wong points out, any referendum on scarce water resources risks being lost with opposition from the larger eastern states, who want to preserve their current and grossly unfair water sharing arrangements.

On second thoughts perhaps we are heading for water wars?

Horticulture industry representation in Canberra

peter@mc.com.au (Peter McFarlane) — Fri, 26 Mar 2010 06:41:00 +0000

With the apparent demise of the national peak industry body Horticulture Australia Council (HAC), it is timely for our fractured horticulture industry associations to seriously consider the alternatives for an effective Canberra lobby.

The National Farmers’ Federation (NFF) has been touted as a possible replacement lobby for horticulture in Canberra, but it seems horticulture industry leaders doubt the ability of the National Farmers' Federation to adequately represent them.

According to the Weekly Times, the NFF says horticulture could potentially be a "powerhouse" of the NFF if all 42 commodities joined, therefore giving them all voting rights. The NFF currently has no horticulture group members, despite horticulture being Australia's largest commodity in terms of gross farm-gate value.

There was controversy last December when the NFF intervened in the award modernisation process with an application to the Australian Industrial Relations Commission (AIRC), to change the hours of work and piecework provisions of the modern Horticulture Award that commenced on 1 January 2010, and will be fully implemented on 1 July 2010.

Whilst the NFF described the AIRC’s decision as “a far better outcome from the award modernisation process”, the Horticulture Australia Council was incensed by the NFF’s uninvited intervention.

Objectively the incident once again demonstrates the NFF’s ability to use its standing and resources to “close a deal”.

Food Industry Comment wonders if horticulture might just be better off being inside the NFF tent "peeing out", then outside "peeing in"!

Unfortunately most horticulture industry associations are chronically under-resourced, and lack the horse power to have too many wins at the federal government level - perhaps it’s time to consider the alternatives.

Of course as things stand, the NFF is not going to back horticulture over member commodities in its trade policy negotiations. But if horticulture was to embrace and support the NFF, attitudes would have to change.

Further the Federal Government has made it very clear they want a single voice for the whole of agriculture – including horticulture - like it or not they see that voice as the NFF.

Not at all surprising when our horticulture industries can at best be described as divided - and at worst a rabble! The uncooperative demeanor of some of our horticulture commodity groups is clearly evident by the prickly comments from a former HAC member, Summerfruit Australia.

Growers should also see through the closed minds and vested interests of their industry leadership some of whom seek to preserve current arrangements that haven't worked well to date.

Growers also need to seriously consider investing more in their industry structures so they can be more effective at engaging with Government including through the NFF.

Primary Industry Centre for Science Education (PICSE)

peter@mc.com.au (Peter McFarlane) — Fri, 12 Feb 2010 00:54:00 +0000

PICSE program activities are designed to foster student interest in science, to encourage them to go onto study science at university, and to consider a future career in an increasingly science based primary industry and related services sectors.

Earlier this month thirty two year eleven and year twelve student selected from public and private schools in Adelaide, the Sunraysia and country South Australia made presentations to industry at awards evenings held at Banrock Station in the Riverland, and at Flinders University. These students were recipients of the 2009 PICSE Industry Placement Scholarship, and had recently participated in the PICSE-GrowSmart and PICSE-Flinders science camp and industry placement program which was held over two weeks last December and January.

This program together with PICSE-Flinders are the two South Australian nodes in an eight centre national industry, university and schools partnership program that aims to raise the profile of the primary industries sector, and attract a high quality and skilled workforce to the sector.

Research undertaken by the Riverland Horticultural Council during 2006 found there a severe shortage of qualified Science Graduates to fill science career opportunities in the local horticulture industries. These positions include:

Consultancy Services in agronomy, fertigation, irrigation, pest management and crop management.

Managers of orchards, vineyards, for both family farms and managed investment schemes.

Sales and Marketing Personnel, obliging many companies to locate their marketing divisions in capital cities.

Research Scientists in research organisations such as PIRSA, SARDI, Universities and CSIRO.

Food Scientists for quality control, research and health and safety in the production of foods and beverages related to fruit juice production, dried and fresh fruit, wine and almonds.

Technology Graduates in production and packaging lines.

The PICSE program includes professional development activities for science teachers, to help them to better understand the science behind our primary industries, and to enthuse their students to study science. There is also teacher and student exchange between the various state nodes of the program.

The recent PICSE-GrowSmart science camp included a full afternoon visit to Riverland citrus growing, packing and marketing company agriexchange where the students were shown many aspects of the company’s citrus operations, including the nursery and farms, irrigation design and planning including soil agronomy and surveys.

Other Riverland industry site visits during the camp included Biological Services / Fruit Doctors to observe the science behind biological control of orchard pests, and to Jubilee Almonds to see orchard fertigation systems in operation.

These three Riverland based companies are PICSE-GrowSmart sponsors, and each also hosted a student placement, which in at least one instance proved to be a great way to talent scout for future employees!

The following are some case studies of a few of the industry placements, with student comments indicating their interest in pursuing further study / industry experience:

Angus from Victor Harbor High School - industry placement at Jubilee Almonds, Waikerie

“My work placement was an obvious choice after the GrowSmart Program provided me with the offer of a full time job through my gap year, working for Jubilee Almonds as a Technical Officers Assistant. This involves carrying out monitoring and testing of a wide range of variables in the 460ha almond orchard, for both economic optimisation and scientific testing trials, as directed by my work placement mentor Michael Ward, Technical Officer for Jubilee Almonds. The highlights of the work placement included carrying out pressure bomb testing, as was demonstrated at the CT farms visit, which enables monitoring of the almond tree’s stress levels, through the relative hydrostatic pressure within a sample leaf.”

Britany from Trinity College (Senior) Gawler – industry placement at Biological Services / The Fruit Doctors, Loxton

“I was really interested in the PICSE program because I knew that I wanted to work in entomology ever since I was really young, and agriculture is very important in Australia and for the community and the economy. I was also very excited when I was accepted and was thrilled to receive the chance to go to Western Australia science camp.

In January I spent a week with the Fruit Doctors at Loxton for experience in agriculture and entomology. It was very interesting to see people working in this particular field, because it was not just scientific research but it is also a business helping the wide community around Australia with their merchandise of advantageous insects that are biologically friendly and could be used instead of pesticides or herbicides.

Through this program I have learnt there is more to working in entomology and not only has it been very interesting and informative but it has also excelled my dreams of becoming an entomologist in the future.”

Tim from Gawler High School - industry placement at agriexchange, Renmark

“The highlight of my week at agriexchange was working with the agronomy team which is most relevant to my future career path. I travelled with Peter Keynes to various clients’ properties, which is a regular part of his work where he troubleshoots the software for the Enviroscan system, and interpret charts that the system generates, using his knowledge of soil agronomy to make recommendations to farmers on what irrigation patterns they should be following. The PICSE-GrowSmart program has truly inspired me to do well in my year 12 subjects with my focus towards physics and mathematics. I aim to go onto university to do either a bachelor of science (probably Ag), or a bachelor of engineering which would aid me in working in the irrigation design industry.”

Olivia from Murray Bridge High School at SARDI Entomology, Waite Institute

“Since I had the ability to walk, I was interested in insects. Entomology was the main career area I have considered, however I never had the opportunity to experience it for myself. Through this PICSE scholarship I have been able to explore areas of science that I had never considered before.

My industry placement was a week with the SARDI Entomology department at the Waite Institute in Adelaide. SARDI Technical Officer Gabriella Caon who arranged my schedule was a fantastic mentor. Working with different people each day, and travelling around the Adelaide area to observe where entomological science can take place was both surprising and fascinating. I was introduced to the SARDI insect collection, and helped to maintain this collection as I was given to task of restoring the alcohol preserved specimens. I began by learning how to identify the gender of Queensland fruit fly.”

Olivia also had the opportunity to participate in the PICSE QLD science camp.

Vanessa from Urrbrae Agricultural High School – Industry Placement MDBA, Canberra

Vanessa spent a fascinating week in Canberra working with scientists and engineers at the Murray-Darling Basin Authority - River Operations, tracking the movement of a rain event in south-western Queensland and north-western NSW as it moved down tributaries to the Darling River.

“My week in Canberra certainly showed me the complexity of the resource they manage and how effectively they do it. I discovered that there are so many factors which affect the distribution of water and the management of a river system that so many people depend on, and so the science behind the process is very interesting, complex and vitally important. I gained an understanding of the role of the Authority and the scientists that are part of it. It was most interesting to see how people with varying backgrounds and a range of knowledge and skills all work as a team to make it work. I also made some valuable connections with scientists and engineers in my field of interest, which will definitely benefit me in the future.

This experience has confirmed my decision to study science and ultimately be involved with the management of water resources.”

Amy from Mildura Secondary College Department of Primary Industry (DPI), Dareton, NSW

“I did my industry place at the NSW Department of Primary Industry institute just outside of Dareton in the Sunraysia area. I spent almost the entire time working with technical assistant Karen Connolly, who is involved in two projects. The one that takes up most of her time is working with research horticulturalist Dr Michael Treeby studying the amount of nutrients different scions (grafts) take in from different rootstocks and, this project is still in its early stages, as the orange trees are still just saplings. The other project she works on with Steven Falivene is fertigation related, and deals with quantity of fertiliser, frequency/method of fertigation, and which combination the trees benefit most from.”

Industry would do well to support and mentor these students through their university years, and to encourage their active engagement with our industries with the aim of facilitating their future careers supporting our local industries.

SA citrus crop estimates for 2010 a "bonanza" for consumers

peter@mc.com.au (Peter McFarlane) — Thu, 11 Feb 2010 02:42:00 +0000

According to the SA Citrus Industry Development Board's Citrus Estimates Committee, the coming 2010 South Australian navel crop looks set to be a bonanza for consumers after the crop estimates committee recently met to discuss the coming citrus crop.

“It appears that the impact of unseasonally high temperatures which affected fruit set late last year did not have the same impact on all trees and orchards and therefore crops are not down as much as first feared.” Said Kym Thiel, Chairman of the SA crop estimates committee “In fact orange consumers are likely to be the big winners when the expected lighter than normal navel orange harvest starts to flow into stores later this year” he said.

The preliminary navel estimate has been set at 50-55,000 tonnes with importantly quality, size and taste looking to be up on previous years. Riverland product will also be plentiful right from the start of the season with early maturing navels faring the best during the heat wave and carrying good crop levels which should translate into plenty of large sized fruit being available for both local and export markets.

“The 2009 Navel crop came in just under 82,000 tonne so the 2010 crop is down, but the one thing that is certain is that crops will be lighter but the flip side is that we expect the quality and size to be better which is backed up by our early measurements which show fruit to be some 10mm ahead of average for this time of year”.

Following on from the trend of the navels the Valencia crop is also expected to be down but a formal announcement won’t be made on Valencia’s until much closer to the 2010/11 season begins. The current 2009 season is on track to deliver its estimate of 54,000 tonne and if anything this may slightly be exceeded.

Other varieties estimates were also discussed with a global shortage of lemons being reflected in the local industry with only 3,000 tonne estimated whilst other varieties did not fair too badly with Tangelos estimated to be 4,500 tonne, Mandarins aided by new plantings coming into production around 13,000 tonne and the Grapefruit estimate being set at 1,000 tonne.

It must be noted that all estimates are preliminary and will be updated in mid- late March as growth rates are further assessed.

Further Information on the crop estimates is available from Kym Thiel, Chair – Estimates Committee

Ph- (08) 85 821 546 or 0417 800 937

Food Industry Comment has previously reported on unofficial industry comment on the likely impact of the November heat event.

Wine Industry Update: ABS statisticians have grape must all over their faces over dodgy figures

peter@mc.com.au (Peter McFarlane) — Wed, 10 Feb 2010 00:10:00 +0000

Apparently South Australia is still the wine state (only just), after ABS came clean on a statistical blunder.

Food Industry Comment thought the data sounded dodgy with SA harvesting the most wine grapes, but falling second to NSW on wine production!

It seems the corrected data is that South Australia produced with 519 million litres compared to 437 million litres by NSW.

In it’s earlier an incorrect release ABS had reported SA production fell last year to only 424 million litres, while NSW reached 425 million litres.

Further details of the statistical embarrassment is available in the Weekly Times.

Wine supremacy - it’s South Australia’s loss

peter@mc.com.au (Peter McFarlane) — Sun, 07 Feb 2010 21:22:00 +0000

According to the Advertiser’s Nigel Austin, South Australia has lost its long-held position as the nation's largest wine-producing state for the first time since early last century.

Quoting from the Australian Bureau of Statistics (ABS) 2009 annual report on the Australian Wine and Grape Industry , SA wine production dropped from a peak of 733 million litres in 2003-04 to only 424 million litres last year, while New South Wales reached 425 million litres. Judging by the number of wine tankers crossing the borders out of South Australia, these figures sound a bit dodgy!

My suspicions are further roused given the Bureau’s annual report goes on to state that SA still grew more grapes (747,592t) than NSW (534,322t) last year, and SA remains the largest exporter, with 448 million litres worth $1.574 billion, compared with NSW with 201 million litres worth $605m.

Irrigated wine grapes produced by efficient Riverland growers have underpinned South Australia's export successes, by providing wine exporters with low cost quality product to blend with premium cool climate product to meet "price points" in export markets.

However I don’t doubt for a moment that SA is losing its wine producing supremacy to NSW.

SA's loss of wine grape production, will ultimately translate into a loss of market share, and a loss of export earnings for SA, the impact of which will ripple through the whole community.

According to Riverland Wine Grape Growers Association executive officer Chris Byrne the Riverland's grape growing income will be well below $100m this year, down from $255m in 2002.

This ongoing loss is a direct consequence of the current inequity of water sharing arrangements between the states that allow NSW irrigators to wallow in up to 100% allocations, whilst SA irrigators are stuck on a 48% allocation, and are obliged to purchase additional water requirements from NSW water license holders.

It’s no surprise that Riverland grape growers are being forced out of the industry whilst NSW wine grape production continues to expand!

Tragically the new national water sharing arrangements will not be fully implemented until 2019 because of intransigence by the NSW and Victorian Governments.

Sadly many more Riverland wine grape growers (and other horticulture producers) will not be able to survive that long.

This is simply unfair, un-Australian and unacceptable!

Seedless mandarins are a winner by any name

peter@mc.com.au (Peter McFarlane) — Sun, 24 Jan 2010 10:49:00 +0000

California is set for a record mandarin crop this year, with the W. Murcott Afourer mandarin variety (otherwise known as Nadorcott) set to make a big splash in Asia-Pacific Markets.

W Murcott Afourer is a very attractive, easy to peel mid-late season mandarin which originated in Morocco as the result of a chance cross-pollination of a Murcott mandarin by an unknown parent. Discovered in 1964 by Moroccan national Mr El Bachir Nadori, however the selection was of little commercial interest as it was found to be very seeded.

In 1988 Mr Nadori observed that fruits of this variety could be grown without seeds when grown in isolation. The variety was tested for several years under the names “Inra W”, “Murcott Sasma”, and Afourer – after a town in Morocco where the variety was developed. The name was subsequently changed to Nadorcott (a contraction of Nadori and Murcott), for which a USA patent was granted in 1998.

In the USA the trees are sold under the name “W Murcott Afourer”. However fruit cannot be labelled as “Afourer” as this a trademark owned by the Moroccans and cannot be legally be used for unlicensed fruit grown elsewhere in the world. So best we all get used to calling it by its other names!

According to Dr Etienne Rabe, the Vice President of Paramount Citrus, the largest grower and packer of citrus in California, there are about 4,000 ha of Nadorcott and 4,000 ha of Clementines (mostly the Clemenule variety) grown in California. The Sun Pacific – Paramount Citrus alliance known as “Cuties” now dominates the production and marketing of the so called “easy peeler” varieties in California, handlings 70% of Nordacott and 85% of Clementine varieties.

Not only is there confusion over names, there are other legal issues causing confusion in Australia, according to Steve Burdette, Business Development Manager for citrus producer and marketer AgriExchange. In a presentation titled “The legal status of Nadorcott worldwide” delivered to the Citrus Australia Annual Conference in November, and subsequently published in the Australian Citrus News (Vol. 86), Mr Burdett said that the variety owners had overlooked registering the Nadorcott variety in Australia.

At that time Nadorcott was successfully registered in South Africa, but not in Australia, Argentina, Chile or Uruguay – as a result there is widespread confusion over which markets, and under what names the fruit can be legally sold when grown in these countries.

Mr Burdette who previously worked with South African cultivar management company Citrogold, that acquired the rights to manage the variety Nadorcott in the Southern Hemisphere. This arrangement covering exports to the European Union (EU) where the variety is subject to plant breeders rights, and to the USA where the variety is protected under a patent.

In Australia there are believed to be some 700 ha of Afourer mandarin (as the variety is generally known here), have been planted since the variety was introduced in the year 2000, of which 90% has not yet been registered with the variety owners or their agents.

To bring Australian growers under the Citrogold banner and enable legal access to the EU and US, Queensland company “Variety Access”, which represents Citrogold in Australia, has formed an Australian Nadorcott Growers Club in April 2009. To date 44 ha of trees have been voluntarily registered to enable the legal export of some 1400 tonne of fruit last season to the EU under the Clemengold^TM brand.

Mr Burdett said it was up to growers to decide if they want to register their trees, pay royalties and export legally to the EU and USA, or risk fruit being confiscated in these markets. Alternatively growers could sell domestically or export to countries other than the EU and USA without paying royalties.

One of Australia’s largest growers of Afourer mandarin is Seven Fields, with about 110 ha of the variety. Delegates to the Citrus Australia Annual Conference held at Mildura in November had an opportunity to visit the Seven Fields property “Sunwest” situated near Red Cliffs in the Sunraysia.

Two large netted structures, windbreaks and isolation of the property from other citrus plantings serve to protect the fruit from inclement weather and to prevent cross-pollination. These measures also allow for premium quality fruit to be harvested and help guarantee the Afourer mandarins remain seedless.

Seven Fields marketing manager Clare McMahon said some of the trees had been registered to allow the company to sell unlabelled fruit into approved export programs. More than half of this year's first commercial crop of about 1000 tonnes was exported to Europe, Asia and the US, with the remainder sold on the domestic market under the company's Sunwest brand.

According to the SA Citrus Industry Development Board’s 2008 varietal survey, there are 100 ha of Afourer planted in South Australia – mostly still non-bearing.

2010/2011 SOUTH AUSTRALIAN CITRUS CROP ESTIMATES

peter@mc.com.au (Peter McFarlane) — Mon, 14 Dec 2009 00:58:00 +0000

The Riverland is set to produce an "historically low" citrus crop. Local trees are bearing a comparatively small amount of fruit, after being hit by November’s unseasonably hot conditions.

The grim forecast for the 2010 navel harvest was addressed this week by Andrew Green, SA Citrus Industry Development Board executive officer.

“With the unseasonable heatwave experienced in November, concerns have been raised that a significant amount of the 2010/11 crop has dropped, possibly leading to a historically low (South Australian) harvest for the coming season,” Mr Green said in the Board’s latest Newsletter.

With this in mind the Board will be looking at advancing the collection of its crop estimates to obtain a clearer picture for the Riverland as soon as possible once it is sure that fruitlet drop has stopped. Over the last 20 years (plus) the SA Citrus Board has traditionally released crop estimate data in February however this time it will look to obtain an indication much earlier.

The Board funds the collection of fruit density and size data over the season from approximately 47 sites across the Riverland including a mixture of Valencias, Washington Navels, Late Lanes and Navelina, to assist with marketing of SA Citrus. This data is provided to the Board’s Crop Estimates Committee chaired by Industry Development Officer Kym Thiel, to verify the estimates.

However, the likelihood of a lighter harvest is not all bad news, according to one local grower. “It would lead to larger fruit, which is easier to market.”

The SA Citrus Industry Development Board also compares weekly packing information from the SA Citrus packing sheds against estimates and then provides a weekly update on the harvest rate and market destinations.

Growers wishing to obtain weekly harvest information via email from the Board should contact its office on 08 8162 5183

Adapted from an article published in the Murray Pioneer 11 December 2009.

Citrus Greening Disease Update

peter@mc.com.au (Peter McFarlane) — Sat, 12 Dec 2009 23:36:00 +0000

Scientists have identified bacteria responsible for Huanglongbing (HLB), also known as Citrus Greening Disease.

Greening, a devastating disease that threatens citrus crops worldwide, is almost certainly caused by one species of bacteria, not a combination of bacteria and viral pathogens.

That’s the conclusion reached by researchers at the University of Florida, who used genetic analysis to study the inner bark of Florida citrus trees infected with greening, according to a university news release.

Scientists from the school’s Institute of Food and Agricultural Sciences found the genetic fingerprint of the bacteria Candidatus Liberibacter asiaticus, which has widely been thought to be the cause of greening.

The analysis did not find the DNA of any other bacterial or viral pathogens.

Pinpointing the cause of greening could help researchers discover treatments for infected trees and lead to quick and inexpensive methods of testing for greening, researchers said.

Greening was first discovered in Florida in 2005.

It has also been found in Louisiana, Georgia and South Carolina. The disease has devastated citrus crops in Asia, Africa, South America and the Arabian Peninsula.

Story by Andy Nelson - originally published in The Packer

SA Growers backing the olive industry

peter@mc.com.au (Peter McFarlane) — Thu, 26 Nov 2009 06:52:00 +0000

According to PIRSA, South Australian olive growers are showing the way to their interstate counterparts by contributing to a voluntary fund for industry development. Paul Miller, President of the Australian Olive Association (AOA), recently spoke at the Olives SA (OSA) AGM and congratulated the local growers for their vision. He indicated that several other states were now looking at developing a similar fund and hoped this would ultimately lead to a National Levy being established.

South Australian growers that contribute to the fund enjoy immediate benefits of membership and support from both AOA and OSA. Many of the issues that constrain the industry need to be tackled at a national level and the AOA is actively pursuing them. Olives SA is strongly represented at the National level by its President, Lisa Rowntree, who was also recently elected as Vice President of the AOA.

Australian Trade Standards are being established to clarify the classification of olive oils. This will help the consumer to make better purchase decisions hopefully by the elimination of confusing grades such as “pure” and “light” oils.

Most Australian olive oil is Extra Virgin, the highest quality olive oil. The AOA has established a Code of Practice and Australian Extra Virgin quality logo whereby oil producers, large and small, can affirm that their oil meets the requirements of the Australian Extra Virgin standards. The Code involves adhering to basic good practices and some testing of the oils for their chemical and organoleptic qualities. The majority of larger producers in Australia have now signed up to the Code and Mr Miller estimates that this represents over 70% of the oil being produced in Australia. Of significance is the fact that Aldi Supermarkets have also signed up to the Code and will be monitoring and testing all their Extra Virgin Olive oil to ensure their customers have access to a high standard product.

The third area of work being undertaken by the AOA in conjunction with OSA and other state olive Associations is an ongoing and highly successful consumer awareness program. The AOA estimates that over 65,000 Australians have now taken the Olive Oil Taste Challenge in which they blind sample Australian and Imported oils and are asked which tastes “fresher”. Over 85% of adult consumers and nearly 100% of children who participated chose the Australian oil and the few that didn’t have generally only ever experienced the taste of imported oils. Many of them were converted by the experience.

In South Australia the grower contributions are being collected by table olive and olive oil processors. Their support is an important contribution to the industry, which ultimately will benefit both growers and processors. So far the response has been good.

The funds are collected utilising the Primary Industry Funding Schemes Act. John Fennell, PIRSA Principal Horticulturist, said “In 2009 the industry agreed to a collection rate of $4 per tonne of olives processed for oil or for table. This rate will increase to $5/tonne in 2010 and then to $6/tonne in 2011 and thereafter”. The funds are remitted to PIRSA who then pass them to the industry associations to fund the programs that are detailed in their industry plans. Funds need to be remitted within 30 days of collection or a maximum of 90 days after the olives are processed.

Mr Fennell said “that as this is the first year of the fund it is understood that there may be a few delays with the collection process”. However many of the larger processors have already collected and remitted the funds “but we are still anticipating receiving funds from some processors” he said. “Growers will want to know that their processors are collecting and remitting the contributions so that they can obtain the member benefits such as industry publications and eligibility to sign up to the Code”.

It is customary for PIRSA to do a few random audits each year to support the funding scheme and these will be undertaken in the near future.

Source: PIRSA Media Release 26 November 2009

Who’s carrying the can for the water crisis?

peter@mc.com.au (Peter McFarlane) — Tue, 17 Nov 2009 00:34:00 +0000

An early November heat wave has generated intense public pressure to force the South Australian Government to ease water restrictions on householders; restrictions that had been designed to reduce Adelaide’s water average water consumption by 31%, pending the commissioning of a new desalination plant due to come on line at the end of 2010.

So householders are now allowed to water each day of the week for up to a total of five hours per week. The government has warned that any spike in Adelaide's water use in the next two months will lead to the immediate reintroduction of tighter restrictions.

According to Sunday Mail columnist Lainie Anderson: “The way I see it, the figures clearly show that householders and, in particular people who take pride in their gardens, are being unfairly forced to carry the can for a water crisis that's not of our making.”

Well as it stands it is in fact irrigators who continue to “carry the can” in this water crisis. I would also have hoped that householders would cut a little extra slack to industry and irrigators who are directly and indirectly creating employment for us the householders.

Yesterday the South Australian Government announced a further 2% increase in irrigation entitlements which brings SA Murray Irrigators up to a 48% allocation, but they are unlikely to receive further increases given warmer weather during October and early November has reduced inflows to the Murray system.

For the record the opening irrigation allocation for SA irrigators in July this year was only 5%, so irrigators have again been sweating on further increases which have arrived in several welcome steps:
• September 2, up from 5% to 10%
• September 18, up from 10 to 16%
• October 19, up from 16% to 34%
• November 13, up from 34% to 46%
• November 16, up from 46% to 48%

This allocation is still not sufficient to get tree and vine crops through what is looking like a very long hot summer, and produce a commercial crop, so irrigators will still need to purchase additional water, which fortunately is available from NSW.

Under current iniquitous water arrangements irrigators on the Murray River in NSW and Victoria with high security water allocations (those with permanent plantings) find themselves on 55%, whilst those on the Murrumbidgee are wallowing in a 95% allocation, which also allows them to make a killing by selling their water to less fortunate irrigators. Meanwhile irrigators on the Goulburn River in Victoria have only a 41% allocation.

It gets worse - irrigators with only general security water (annual cropping) don’t fare so well, with the Murrumbidgee on 14%, the Lower Daring on 25%, and the Murray Valley on only 10%.

And worse - irrigators in Victoria on the Broken, Campaspie, Loddon Rivers and Bullarook Creek have got zilch!

So how can Adelaide householders and Sunday Mail / Adelaide Advertiser journalists possibly believe that it’s Adelaide gardeners who are “carrying the can” in this water crisis?

What we can agree on is that water will be a big political issue for the Rann Government in the state election in March 2010; in particular for Water Minister Karlene Maywald in her Riverland electorate of Chaffey.

Profit focus at citrus conference

peter@mc.com.au (Peter McFarlane) — Sat, 14 Nov 2009 04:03:00 +0000

According to the peak citrus industry body (Citrus Australia Ltd), Australia’s 2,000 citrus growers will be able to access new citrus varieties however access to the new varieties will come at a cost as commercialisers try to recover their investment in R&D.

Citrus Australia Ltd held its annual conference in Mildura over 9-11 November this week. The focus of the conference was on the commercialisation of new varieties, biosecurity and grower profitability.

Keynote speaker at the conference, Dr Etienne Rabe, the Vice President of Paramount Citrus, the largest grower and packer of citrus in California, says the days of free new varieties are numbered. "Australia – as one of the highest cost countries – needs to focus on the newest technology and varieties to gain advantage.”

The Australian market will see an influx of new citrus varieties from the international market and from the domestic market which has had the support of organisations like the CSIRO.

Citrus growers who want to access the new varieties will have to come to grips with new management and marketing models including tree royalties, production royalties or combination tree-production royalties that can be levied per carton or annually per hectare based on a formula. Any production royalty is premised on a new selection generating a price premium, something which is by no means guaranteed.

CEO Judith Damiani said: “Australian citrus growers will have to be proactive and carefully consider what is on offer. The speakers certainly highlighted some exciting new citrus varieties coming our way. Through our industry research facilitated by Horticulture Australia Limited which includes varietal evaluation and consumer research, Citrus Australia can help guide growers on which varieties are more likely to achieve better consumer returns.”

Source: Citrus Australia Ltd

13 November 2009

Meanwhile CSIRO has announced the First Aussie seedless mandarins coming soon

Sydney-based fresh produce marketing company, Perfection Fresh Australia, has won the rights to commercialise two new seedless mandarin varieties bred by the CSIRO.

CSIRO plant breeder Dr Stephen Sykes said the varieties – Merbeingold 2336 and Merbeingold 2350 – were the first two seedless mandarins to be deliberately bred in Australia and were the result of more than 20 years’ research and development.

Perfection Fresh and CSIRO are yet to allocate the varieties a brand name for commercial fruit sales.

Dr Sykes made the announcement this week at the Citrus Australia National Conference held in Mildura, Victoria.

Perfection Fresh CEO, Michael Simonetta, said Perfection Fresh was now seeking expressions of interest from experienced citrus growers to produce what would be the first specialty mandarins it would take to market.

“This is a tremendous opportunity for Perfection Fresh and the growers themselves to move into the seedless citrus market which has enormous, and largely untapped, potential in Australia,” Simonetta said.

“While Perfection Fresh has marketed seeded citrus lines both in Australia and in the export arena for some time, there has been an increasing demand for seedless varieties from consumers around the world. Based on our successful experience with marketing seedless grapes, we are confident seedless mandarins will be a consumer citrus choice of the future.”

CSIRO general manager business development, Lionel Henderson, said the selection for a commercialiser began over two years ago when expressions of interest were in the two varieties were first sought. Perfection Fresh was selected from among seven applicants, he said.

“The licence allows Perfection Fresh to manage the production and supply of these varieties. Growers will be registered to produce the fruit and supply to Perfection Fresh,” Henderson said.

Dr Sykes said the two released varieties originated from a series of controlled crosses first devised by CSIRO in 1984 to recombine the characteristics of popular Imperial and Ellendale mandarins for selection under Australian conditions.

The first Merbeingold mandarin trees are expected to be grafted onto rootstocks in nurseries in early 2010 to produce commercial quantities of fruit within three years.

A Seedy Past

Female Imperial and male Ellendale mandarin varieties crossed in 1984.

Eight months later, seeds extracted from the resulting fruit.

New seeds germinated in a glasshouse and grown for eight months.

Seedlings transplanted to a field where they flower in six to 12 years.

Hybrid plants screened for three to four years for ability to bear seedless fruit.

Buds grafted on to root stocks, which are distributed and further culled for three to five years.

Commercial-scale trials conducted for two to four years.

Varieties released and commercial trees propagated.

The Merbeingold mandarin varieties have no seeds.

Source: CSIRO

13 November 2009

WA Father and son team win RIRDC Olive Innovation Award

peter@mc.com.au (Peter McFarlane) — Fri, 06 Nov 2009 07:46:00 +0000

A former geologist turned olive grower and his son who have managed to reduce water use on their farm by up to 50 percent are the inaugural winners of the Rural Industries Research and Development Corporation Olive Innovation Award.

Derek Fisher and his son Marek Fisher were today presented with the award by the Minister for Agriculture, Fisheries and Forestry, Tony Burke at the Australian Olive Expo in Canberra.

Derek and Marek Fisher are establishing an 85,000-tree olive farm overlooking the Moore River, about 150 kilometres north of Perth. Both are committed to the more efficient use of water and fertilizers on their farm.

“I congratulate Derek and Marek Fisher on winning RIRDC’s inaugural Olive Innovation Award, which recognises a grower whose innovation has helped contribute to the sustainability and productivity of the Australian olive industry,” Dr Peter O’Brien, Managing Director of RIRDC said.

Derek and Marek Fisher won the award in recognition of the cutting edge technologies they are using on their olive farm to reduce operating costs in water use, fertilising, harvesting and labour, while maintaining high fruit production.

“One of the initiatives they have put in place is a computerised soil monitoring system which monitors and analyses soil moisture around their olive trees. This technology has helped them reduce the amount of water and fertilizer they use on the farm,” Dr O’Brien said.

“They are also implementing a composting system which will involve digging compost into the ground adjacent to their trees, rather than putting it on top of the soil, thereby reducing fertilizer use.

“RIRDC works closely with Australia’s olive industry and the Australian Olive Association to fund research and development into key issues facing the industry, including more efficient olive harvesting techniques, better pest and disease management, reducing water use, and improved waste recycling techniques.

“This award represents an equally important part of RIRDC’s core business, which is to recognise and encourage wider adoption of innovative new practices that can drive forward Australia’s new and emerging rural industries, such as olives and olive oil.

“Research and development into a growing industry like olives is critical to its future growth and prosperity. RIRDC’s research program plays a key role providing the industry with knowledge to help them expand, access new markets, and take advantage of their competitive advantages.”

RIRDC Media Release 27 Nov 2009

FOOD CONTRIBUTES A RECORD $12.4 BILLION TO SA ECONOMY

peter@mc.com.au (Peter McFarlane) — Fri, 06 Nov 2009 04:15:00 +0000

South Australian Food ScoreCard 2008-09

Read the full SA Food ScoreCard Report 2008/09 (pdf, 393kb)

The past year has witnessed significant pressures on South Australia’s Food industry, including dramatically reduced commodity prices in grains, reduced demand in seafood and dairy markets flowing from the global economic crisis (GEC), ongoing drought conditions over the past 5 years across parts of the State, continued low water allocations along the River Murray, and sharply fluctuating foreign exchange rates. Despite these pressures, the key ‘headline’ measures of Gross Food Revenue; Exports (overseas); and Finished Foods have all improved steadily over the year, demonstrating a remarkable resilience in the performance of South Australia’s food chains.

Highlights for the 2008/09 Food ScoreCard include:

* Overseas Export at a 7 year high, with growth of $359m (up 18%) to reach $2.4 billion – the second highest level on record;
* Overseas Finished Food Exports grew by $114m (9% ) to reach a record level of $1.3 billion;
* Finished Foods growth of $23m (up 1%) to maintain a record level of $4.4 billion;
* Food Employment up by 7,200 (5%) to reach a record level of 146,000 jobs;
* Gross Food Revenue growth of $1.0 billion (up 9%) to reach a record $12.4 billion.

However, a moderate decline was evident in primary production over the year, with farm gate values down by 4% to $3.2 billion. The fall in agricultural output is largely attributable to declining world grain prices and ongoing poor seasonal conditions. Nevertheless, it remains significant that the variability in primary production is not evident in the higher value end of the chain, including: finished foods and their associated exports, or indeed, final domestic consumption.

For further information contact:
Jack Langberg, PIRSA Industry Development & Renewal Group on 8204 9571 or jack.langberg@sa.gov.au

Source: http://www.safoodcentre.com.au/