The Quandary for New Rural Industries:

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The Quandary for New Rural Industries Capturing
Opportunity and Managing Risk John Oakeshott
Senior Research Manager Rural Industries
Research and Development Corporation
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• New Rural Industries Why have them?
• New Rural Industries - Characteristics
• Risks and the quandary
• Response What are we doing

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New Rural Industries Why have them?
New industries More demand than ever
resilience through diversification
- Curiosity and opportunities for a better life
- declining terms of trade - appreciating
exchange rate decreasing desirability of
Australian products - rising demand and global
wealth - Impacts of globalisation - loss of
export domestic markets - power of
supermarkets - increasing generic branding -
increasing compliance costs - low cost import
products
and Climate change
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New Rural Industries Why have them?

• New industries as a of total agricultural GVP
• 16 in 1960 (Ag GVP 2.7 bil.)
• 29 in 2005 (Ag GVP 35.6 bil.)

New industries growth in value
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New Rural Industries Why have them?
National benefit
Benefits of new industries

• Canola
• Canola as a broadacre crop
• Now producing 2.4 million tonnes per year
• Industry value gt 650 million pa

Since the 1950s cotton, macadamia, mushrooms,
soybean, triticale, mango, almond etc.
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New Rural Industries Why have them?
Regional benefits
Benefits of new industries

• Example Tropical Fruit
• GVP 9 million
• 17 products

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New Rural Industries Why have them?
Niche benefits
Benefits of new industries

• Example Coffee
• GVP 11 million
• New varieties?

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New Rural Industries Why have them?
Benefits of new industries
Potential?

• Example - Cashew
• Problem
• separating apple from nut
• and kernel from nut

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New Rural Industries - Characteristics
New industries - Attributes general
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Quandary
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Response What are we doing
New industries - Vietnamese growers example
Successful pilot project Bilingual Extension
Officer Model
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Response What are we doing
New industries - what are we doing?

• RD Newsletter to LOTE growers
• Developing diagnosis tools
• Survey risks from peri-urban production
• Generic biosecurity farm management tools

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Take home message

• New Rural Industries have special needs and are
  an increasing important part of Australian
  agriculture
• RIRDC is investing in food integrity and
  biosecurity communications and management tools
  for New Rural Industries
• ..and RIRDC is working closely on joint projects
  with other agencies such as PHA AHA, CRC for
  National Plant Biosecurity, State agencies
  etc.and APVMA

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Thank you