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Tea Tree Oil Five Year RD&E Plan 2013

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Tea Tree Oil Five Year RD&E Plan 2013 Tea Tree Oil Five Year RD&E Plan 2013 - 2018 JANUARY 2014 RIRDC Publication No. 13/085 Tea Tree Oil Five Year RD&E Plan 2013 - 2018 By: Michael Clarke January 2014 RIRDC Publication No. 13/085 RIRDC Project No. PRJ-007750 © 2014 Rural Industries Research and Development Corporation. All rights reserved. ISBN 978-1-74254-578-3 ISSN 1440-6845 Tea Tree Oil Five Year R&D Plan 2013-2018 Publication No. 13/085 The information contained in this publication is intended for general use to assist public knowledge and discussion and to help rural industries to be productive, profitable and sustainable. 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 RIRDC Communications on phone 02 6271 4100. Researcher Contact Details Michael Clarke AgEconPlus Pty Ltd 44 Barons Crescent Hunters Hill NSW 2110 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 Phone: 02 6271 4100 BARTON ACT 2600 Fax: 02 6271 4199 PO Box 4776 Email: [email protected]. KINGSTON ACT 2604 Web: http://www.rirdc.gov.au Electronically published by RIRDC in January 2014 Print-on-demand by Union Offset Printing, Canberra at www.rirdc.gov.au or phone 1300 634 313 ii Foreword Five year research, development and extension (RD&E) plans are developed for each of RIRDC’s major programs. This 2013 – 2018 RD&E Plan is the third plan for the Tea Tree Oil Program. Each reflects the priorities of the Australian Tea Tree Oil Industry at their time of development and this plan builds on their achievements. The RIRDC and industry funded Tea Tree Oil breeding program, which has been operating since the early 1990s, has generated seed with a yield improvement of close to 100%. Additional efficiencies have been achieved in harvesting, distillation and storage. A number of these improvements are also a direct result of RD&E funded by the RIRDC Tea Tree Oil Program. The Tea Tree Industry does not have a statutory RD&E levy but has always shown a strong commitment to the RD&E program. Since 2009 industry has funded approximately half of the total Tea Tree Oil RD&E expenditure. The 2013 – 2018 Plan identifies four key objectives for the RD&E investments to be made on behalf of the industry and Australian Government. Associated with each objective is a set of strategies to be followed in pursuing each objective and a set of performance indicators to give guidance as to how the program can be assessed as it progresses. An indicative share of RD&E budget has also been proposed for each plan objective in order to guide investment priorities. This Plan has been prepared in consultation with RIRDC’s Tea Tree Oil RD&E Advisory Committee and the Australian Tea Tree Industry Association. This Plan aims to assist the industry to build and develop its future. Craig Burns Managing Director Rural Industries Research and Development Corporation iii Snapshot of the Five Year Plan Industry Vision The Tea Tree Oil Industry’s Vision is to be the industry that: • Values RD&E and whole of industry marketing • Provides a clear path to market which engenders growth • Achieves sustainable and profitable growth across all parts of the supply chain • Is strong, well-resourced and united • Measures success as ‘a bottle of tea tree oil in every Australian home’ • Delivers 80% of its product to profitable export markets • Is positioned as the premium preferred and quality assured supplier to both domestic and overseas consumers. The RD&E Program 2013 – 2018 is focused on providing outputs that work toward the industry realising this vision. RD&E Program Goal To support the continued development of a profitable and environmentally sustainable Australian Tea Tree Oil Industry that has established international leadership in marketing, value adding, product reliability and production. Objectives The following objectives drive RD&E investment in the 2013 – 2018 RD&E program (indicative target investment levels as a proportion of total investment are shown) 1. Market access through regulatory response, product efficacy and safety research and its communication (35%) 2. Production systems that lower cost and increase productivity including the tea tree breeding program (35%) 3. Proof of concept innovative uses for tea tree oil (15%) 4. Communication and industry capacity building (15%). iv Contents Foreword ....................................................................................................................... iii Snapshot of the Five Year Plan .................................................................................... iv 1. Introduction ................................................................................................................ 1 Purpose of the RD&E Plan ........................................................................................... 1 Preparation of the RD&E Plan .................................................................................... 2 Alignment with Government and RIRDC Priorities ..................................................... 3 2. Industry and RIRDC Commitment .......................................................................... 4 3. R&D Priority Setting Considerations ....................................................................... 6 Overarching Consideration .......................................................................................... 6 Consultation Findings .................................................................................................. 6 Workshop Findings ....................................................................................................... 8 4. RD&E Program 2013 - 2018 ...................................................................................... 9 Industry Vision .............................................................................................................. 9 RD&E Program Goal ................................................................................................... 9 Objectives ..................................................................................................................... 9 Strategies .................................................................................................................... 10 Key Performance Indicators ....................................................................................... 10 Objective 1: Market Access through Regulatory Response, Product Efficacy and Safety Research and its Communication..................................................................... 10 Objective 2: Production Systems that Lower Cost and Increase Productivity (including the Tea Tree Breeding Program) .............................................................. 13 Objective 3: Demonstrating Proof of Concept for Innovative TTO Uses ................... 15 Objective 4: Communication and Industry Capacity Building ................................... 17 5. Proposed Budget ....................................................................................................... 19 6. Communication/Adoption /Commercial Opportunities ........................................ 20 References ..................................................................................................................... 22 v Appendices .................................................................................................................... 23 Appendix 1: Economic Analysis of Funding Models to Support TTO Industry R&D . 23 Appendix 2: Workshop Invitees .................................................................................. 28 Appendix 3: Workshop Group Reports ....................................................................... 29 Appendix 4: Tea Tree Oil Industry Profile ................................................................. 34 Appendix 5: Key Challenges for the Tea Tree Oil Industry (SWOT) .......................... 39 Appendix 6: Research Directions ............................................................................... 43 vi Tables Table 1.1 Priorities Hierarchy in which the RIRDC Tea Tree Oil Program Fits ....... 3 Table 5.1 Tea Tree Oil RD&E Program Proposed Budget 2013 – 2018 ................. 19 Table A1.1 RIRDC TTO R&D Program Funding 2012-13 ($)
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