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The Quandary for New Rural Industries:

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Title: The Quandary for New Rural Industries:


1
The Quandary for New Rural Industries Capturing
Opportunity and Managing Risk John Oakeshott
Senior Research Manager Rural Industries
Research and Development Corporation
2
  • New Rural Industries Why have them?
  • New Rural Industries - Characteristics
  • Risks and the quandary
  • Response What are we doing

3
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
4
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
5
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.
6
New Rural Industries Why have them?
Regional benefits
Benefits of new industries
  • Example Tropical Fruit
  • GVP 9 million
  • 17 products

7
New Rural Industries Why have them?
Niche benefits
Benefits of new industries
  • Example Coffee
  • GVP 11 million
  • New varieties?

8
New Rural Industries Why have them?
Benefits of new industries
Potential?
  • Example - Cashew
  • Problem
  • separating apple from nut
  • and kernel from nut

9
New Rural Industries - Characteristics
New industries - Attributes general
10
Quandary
11
Response What are we doing
New industries - Vietnamese growers example
Successful pilot project Bilingual Extension
Officer Model
12
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

13
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

14
Thank you
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