Improvements in farm productivity source and potential

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Improvements in farm productivity- source and
potential

• Hutton Oddy
• John Black

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• The best way to predict the future is to create
  it. Peter F. Drucker
• Innovation is the specific instrument of
  entrepreneurship. The act that endows resources
  with a new capacity to create wealth. Peter F.
  Drucker

3

• This presentation
• Effect of technology on change in Australias
  beef industry
• Example- Genetic Improvement
• A work in progress (More Beef from Pastures)
• Potential improvement
• Delivery
• HACCP simplify before acting
• Risk Management
• Sources of innovation
• Generic technology development

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Rate of genetic improvement in the beef seedstock
sector.
Values are indices for relevant production
market specifications, weighted by breed and
representation in each market.
Source. A. McDonald report to National Beef
Genetics Advisory Committee (2005)
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Technology and structural change

• Genetic improvement systems

Individual ID Pedigree Recording AI ET Trait
measurement EBVs DNA Testing
Technologies
Breeders
Breeds
Industry
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Technology and structural change

• Those that use technologies evolve faster

Individual ID Pedigree Recording AI ET Trait
measurement EBVs DNA Testing
Technologies
Breeders
Breeds
Industry
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Associated structural changes

• Changes in breed composition
• Market pull
• Angus Marbling Meat Quality - Feedlot sector
• Technology enabled
• AI, ET, measurement systems, EBVs, DNA tests
• Larger (and fewer) herds with increased genetic
  gain
• gt50 of registered Angus cows in 10 of herds

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Summary 1

• Appropriate use of technologies facilitates
• faster growth into new markets
• development of new market niches
• Associated with industry structural change

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More Beef from Pastures, increasing
profitability by better use of existing
technologies
Baseline 50,000 pa Plus Improved pasture
use 95,000 pa Plus Early weaning 125,000
pa

• standard 600 ha enterprise
• pasture utilisation increased 35 to 45
• annual pasture growth rate from 8 to 9 t DM/ha
• weaning calves at 100 days of age.
• simulated with GrassGro (CSIRO)

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Increasing technology uptake - Simplify and
manage risk

• HACCP
• Structured process to simplify system and
  identify only those steps that affect outcome
• Risk Minimisation
• Market
• Climate

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Simplify the message - HACCP

• Analyze system to extract big drivers
• Develop simple system measures to inform the key
  decisions
• Act when measures go outside pre-set values
• Use tools that simplify actions and assist the
  decision making process

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Minimise Climate Risk - Rainfall
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.. pasture growth
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Summary 2

• Significant potential for improvement in current
  beef production systems
• Systems are complex, but can be reduced to simple
  actions
• Risk Minimisation simple tools to assist
  decisions can foster change

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Innovation Build or Adapt ?

• Technology drives industry change
• No technology is industry specific
• Genetic improvement (generic technology, adapted
  to beef industry needs and structure)
• Genomics biotechnology (generic)
• Transport (generic, enabling and transformative)
• buying in solutions cf building in house

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Opportunities from global technology investment

• Electronics and computer science
• Measurement
• Traits (Production, quality)
• Computation
• EBVs, DNA markers (genetic improvement)
• MSA (eating quality)
• Risk Tools (pasture management)
• Bioinformatics
• Biotechnology
• Genomics
• Plant breeding, transformation
• Animal Breeding (health, welfare, productivity
  and quality)
• Soil Biology

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The end game Implementing new technologies

• Implementation
• Big changes come from outside
• Invention to widespread use 30-50 years
• Shortening the cycle is essential
• Use clear and simple messages
• Do only those things which affect outcomes
  (HACCP)
• Set Priorities for action
• Manage risk (inside and outside control)

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Summary 3

• More opportunities for technological change to
  come from outside than inside an industry
• Challenge - scan options and adapt quicker than
  competitors
• In distributed industries, simplify the message
  about specific technologies to foster uptake