New rural industries Rob Fletcher School of Agriculture and Horticulture University of Queensland Gatton

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New rural industriesRob FletcherSchool of
Agriculture and HorticultureUniversity of
Queensland Gatton
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New rural industries

• Those industries not previously pursued in an area

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We facilitate change

• never initiate anything
• listen
• motivate no-one
• only give help if asked
• Ernesto Sirolli Ripples in the Zambezi

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Our focus what are the best bets?
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Three levels

• Individual planning
• Info networking
• New industry commercialisation

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There are no experts
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Everyones situation is unique
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The 10 points for Planning
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Predicting economic outcomes is only difficult
when it relates to the future
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Planning

• 1. Are we contented?

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Changes in rural industries are often crisis
driven
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If the change is a new product or market

• Profits are slow
• Risks are high
• Info is poor

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Industry groups

• Dairy Wool Peanuts Cereals Beef Tobacco
  Ostriches Olives Native Flowers Native food
  etc.

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Is there a local champion?
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Planning

• 2. Why are we contemplating change?

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What is our purpose?
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What is the purpose of our purpose?
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What is the purpose of the purpose of our purpose?
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Will the change be a hobby or a business?
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Why produce something nobody wants to buy?
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Planning

• 3. What do we enjoy doing?

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Its always easier to learn something if it is
interesting and relevant
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Will the changes drive us crazy?
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Planning

• 4. What is our commitment to change?

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What can we do for ourselves?
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We should only gamble what we can afford to lose
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Expecting windfall profits can be exhilarating
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Planning

• 5. Is there easy access to info?

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• Media reports
• Hunches
• Data
• Info
• Knowledge
• Wisdom

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!!!!!!!!!today is cancelled!!!!!!!
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!!!!!!!!!insufficient info!!!!!!
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!!!!!!!!!asic ads!!!!!!!
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!!!!!!!!!never wrestle with pigs!!!!!!!
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Information and networking
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http//www.newcrops.uq.edu.au
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!!!!!!!!!eoia handout!!!!!!!
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Planning

• 6. What is the new product?

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We will never hit a target unless we aim at it
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A products description is quality
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Planning

• 7. What is the new products marketability?

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Marketing is satisfying consumer needs
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Why produce something nobody needs?
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!!!!!!!!!maccas!!!!!!!
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Do we know our consumers needs?
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DOOR Marketing(Do Our Own Marketing Research for
New Rural Industries)
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Can you sell the product?Can you get it to
market?Who will get in your way?Can you improve
your info?
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Planning

• 8. Is the new product easy to produce?

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Production dominates producers minds
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Why?

• Curiosity
• Achievement
• Producers

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!!!!!!!!!cashew apple!!!!!!!
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!!!!!!!!!papaya!!!!!!!
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!!!!!!!!!bmw!!!!!!!
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Planning

• 9. Are others also considering change?

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Changes need expertise in 1. Production2.
Marketing 3. Business
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No one is expert in all three
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How can competitors work together?
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ComplementCompete
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!!!!!!!!!cooperation cartoon!!!!!!!
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Planning

• 10. Should we work with others?

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Everyone involved in a solution needs to
participate in finding it
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Value/supply chain

• Producer
• Processor/packager
• Transporter
• Wholesaler/packager
• Retailer
• Consumer

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!!!!!!!!!bush tucker supply chain!!!!!!!
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New rural industries

• Those industries not previously pursued in an area

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New rural industries

• new products from conventional industries
• conventional products from new industries

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Strategy

• Old Industry Old Industry
• Old Product New Product
• Market Penetration Product
  Development
• New Industry New Industry
• Old Product New Product
• Industry Development
  Diversification

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Unique at first

• High demand
• Irrelevant
• Pyramid selling

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Risk

• Exposure to the chance of injury or loss

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The level of risk depends on

• The likelihood of the event occurring
• The impact of the event when it occurs

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Risk management

• Minimises the impact of uncontrollable risk
  factors
• Controls the manageable risk factors

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Risk factors

• Market fluctuations
• Economic vagaries
• Production options
• Personal changes

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The 13 steps for change commercialising new
rural industries
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Active commercialisation with benchmarking and
monitoring
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13 steps 1. New industry chosen 2. High risk
3. IP rights 4. Marketability of product
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13 steps 5. (Production?) 6. Form group 7.
Resources 8-10. Monitoring, benchmarks, review
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13 steps 11. Trial marketing 12. Trial
processing 13. Production trials
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Thank you