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National Research, Development and Extension Strategy for New and Emerging Industries Industry Overview RIRDCInnovation for rural Australia National Research, Development and Extension Strategy for New and Emerging Industries Industry Overview by Max Foster ABARE & Julie Bird RIRDC September 2009 RIRDC Publication No 09/138 RIRDC Project No PRJ-004854 © 2009 Rural Industries Research and Development Corporation. All rights reserved. ISBN 1 74151 937 3 ISSN 1440-6845 National Research, Development and Extension Strategy for new and Emerging Industries- Industry Overview Publication No. 09/138 Project No. PRJ- 004854 The information contained in this publication is intended for general use to assist public knowledge and discussion and to help improve the development of sustainable regions. You must not rely on any information contained in this publication without taking specialist advice relevant to your particular circumstances. While reasonable care has been taken in preparing this publication to ensure that information is true and correct, the Commonwealth of Australia gives no assurance as to the accuracy of any information in this publication. The Commonwealth of Australia, the Rural Industries Research and Development Corporation (RIRDC), the authors or contributors expressly disclaim, to the maximum extent permitted by law, all responsibility and liability to any person, arising directly or indirectly from any act or omission, or for any consequences of any such act or omission, made in reliance on the contents of this publication, whether or not caused by any negligence on the part of the Commonwealth of Australia, RIRDC, the authors or contributors. The Commonwealth of Australia does not necessarily endorse the views in this publication. This publication is copyright. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved. However, wide dissemination is encouraged. Requests and inquiries concerning reproduction and rights should be addressed to the RIRDC Publications Manager on phone 02 6271 4165. Researcher Contact Details Max Foster Julie Bird GPO Box 1563 Level 2, 15 National Circuit CANBERRA ACT 2601 BARTON ACT 2600 PO Box 4776 Phone: 02 6272 2095 KINGSTON ACT 2604 Fax: 02 6272 2348 Phone: 02 62714140 Email: [email protected] Email: [email protected] In submitting this report, the researcher has agreed to RIRDC publishing this material in its edited form. RIRDC Contact Details Rural Industries Research and Development Corporation Level 2, 15 National Circuit BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604 Phone: 02 6271 4100 Fax: 02 6271 4199 Email: [email protected]. Web: http://www.rirdc.gov.au Electronically published by RIRDC in September 2009 Print-on-demand by Union Offset Printing, Canberra at www.rirdc.gov.au or phone 1300 634 313 ii Foreword Research, Development and Extension (RD&E) in primary industries is a key factor for increasing productivity and ensuring sustainability. RIRDC has been given the task of developing the National Research, Development and Extension Strategy for New and Emerging Industries. This strategy will be an important component of the National RD&E Framework, and offers a unique opportunity to improve the effectiveness and efficiency of new and emerging industry RD&E into the future. RIRDC is working with industry, state and territory governments, CSIRO, and the universities, to improve RD&E through increased collaboration and cooperation. Australia’s rural industries make a fundamental contribution to the Australian economy and way of life. In addition to the major industries, numerous new and emerging rural industries bring opportunity, diversity and resilience to rural Australia. New industries provide opportunities to be captured by rural producers and investors. They also provide avenues for farmers facing adjustment pressure to diversify and manage change. The establishment of new industries contributes to community resilience and regional development. Increasingly, new industries are also contributing to a distinctive regional character in rural Australia. New industries face a number of challenges – developing product quality and quantity, developing markets and supply chains, and industry leadership. Many of these issues are underpinned by research and development. This report provides an overview of many new and emerging industries, and will be used to inform the development of the National RD&E Strategy for New and Emerging Industries. This overview includes basic statistical information for the new and emerging industries. As well as indicating the high aggregate value of a selected subset of the ‘new and emerging sector’, the report provides detailed statistical information for each new industry, where available. It will also be a useful basis for those contemplating investment or formulating policy and will help to inform RIRDC as it plans its research and development priorities into the future. This report was based on the recently published document Emerging Animal and Plant Industries- their value to Australia (RIRDC Pub. No. 09/004), also prepared by Max Foster from ABARE. Some of the industries, and their gross value, have been omitted from this current report, reflecting the movement of successful industries beyond “new and emerging” status, into levy paying commodities now working with alternative Research and Development Corporations. Examples include the movement of meat goats to Meat and Livestock Australia, and such tropical fruits as lychees and paw paws to Horticultural Australia Limited. These industries will be covered by the National RD&E Strategy of their new industry sector. This report was funded from RIRDC Core Funds provided by the Australian Government and is an addition to RIRDC’s diverse range of over 1900 research publications. Most of RIRDC’s publications are available for viewing, free downloading or purchasing online at www.rirdc.gov.au. Purchases can also be made by phoning 1300 634 313. Peter O’Brien Managing Director Rural Industries Research and Development Corporation iii Highlights This publication profiles 35 emerging animal and plant industries, and provides a picture of their overall worth to the Australian economy. Together the selected emerging industries had an estimated gross value of production of $411 million. They earned estimated export revenue of $240 million. These values are likely to grow in future years because — as the term ‘emerging’ suggests — many of the emerging industries appear to have strong growth prospects. These figures represent only a subset of emerging industries (ie those listed in this report) and are conservative estimates of value. New and emerging animal and plant industries make significant contributions to the regions in which they operate by bringing diversity and resilience to the rural sector. They also contribute to the increasingly important niche and specialty food markets. Of the emerging industries examined, those with a Gross Value of Production over $30 million per annum include game birds, kangaroo, wildflowers and olives. iv Acknowledgments The authors are grateful for the generosity of the many participants of Australia’s new and emerging industries who gave freely and generously of the information necessary to complete this report. In each case, their enthusiasm for their industry was inspiring. The authors thank ABARE colleagues, Terry Sheales, Ben Buerre and Peter Martin for their constructive comments on drafts of this report. The authors also gratefully acknowledge the invaluable support, expertise and patience of RIRDC staff throughout the preparation of this report, especially Peter McInnes. Abbreviations kg kilogram 2.20462 pounds t tonne 1000 kilograms kL kilolitre 1000 litres kt kilotonne 1000 tonnes Mt megatonne 1 000 000 tonnes A$ dollar (Australian) $m million dollars (Australian) $b billion dollars (Australian) US$ dollar (United States) US$m million dollars (United States) US$b billion dollars (United States) cif cost, insurance and freight EVAO estimated value of agricultural operations fas free alongside ship fob free on board GDP gross domestic product nc not calculated nec not elsewhere classified nes not elsewhere specified p provisional ABARE Australian Bureau of Agricultural and Resource Economics ABS Australian Bureau of Statistics DAFF Australian Government Department of Agriculture, Fisheries and Forestry DBIRD Department of Business, Industry and Resource Development, Northern Territory DPIFM Department of Industry, Fisheries and Mines, Northern Territory FAO Food and Agriculture Organisation of the United Nations RIRDC Rural Industries Research and Development Corporation WTO World Trade Organisation UNCTAD United Nations Conference on Trade and Development Small discrepancies in totals are generally caused by rounding. 0 is used to denote nil or a negligible amount. v Contents Foreword ............................................................................................................................................ iii Highlights........................................................................................................................................... iv Acknowledgments............................................................................................................................... v Abbreviations ...................................................................................................................................... v Executive Summary ........................................................................................................................
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