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Processing Potato Strategic Investment Plan

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Processing Potato Strategic Investment Plan Potato – processing STRATEGIC INVESTMENT PLAN 2017-2021 Content Introduction 3 The processing potato SIP 3 Processing potato SIP at a glance 4 Section one: Context 6 The Australian processing potato industry 6 Operating environment 19 Section two: Processing potato industry outcomes 21 Section three: Processing potato industry priorities 24 Industry investment priorities 24 Aligning to Hort Innovation investment priorities 27 Section four: Processing potato industry monitoring and evaluation 29 Processing potato SIP monitoring, evaluation and reporting 29 Processing potato SIP M&E plan 31 Section five: Impact assessment 35 Section six: Risk management 37 DISCLAIMER Any views contained in this Strategic Investment Plan (SIP) do not necessarily represent the views of Horticulture Innovation Australia Limited (Hort Innovation) or its commitment to a particular course of action or a guarantee of specific outcomes. Hort Innovation will make research and development (R&D) and marketing investments to meet its obligations as outlined in the Deed of Agreement between Hort Innovation and the Australian Government (2014-18) and the Hort Innovation Constitution (2016). Hort Innovation reserves the right to amend or vary the SIP without notice. Hort Innovation makes no representations and expressly disclaims all warranties (to the extent permitted by law) as to the accuracy, completeness, or currency of information provided in Section 1 of this SIP. Recipients or users of the information contained therein (and any links) should take independent action before relying on its accuracy in any way. Hort Innovation is not responsible for, and will not be liable for, any loss, damage, claim, expense, cost (including legal costs) or other direct or indirect liability arising in any way (including from Hort Innovation or any other person’s negligence or otherwise) from the use, non-use or reliance on the information contained in Section 1 of this SIP. COPYRIGHT Copyright subsists in this SIP. Hort Innovation owns the copyright in this SIP. Apart from rights to use as permitted by the Copyright Act 1968 (Cth) this SIP (in part or as a whole) cannot be reproduced, published, communicated or adapted without the prior written consent of Hort Innovation. Any request or enquiry to publish, communicate, adapt or use the SIP should be addressed to: Communications Manager Hort Innovation Level 8, 1 Chifley Square Sydney NSW 2000 Australia Email: [email protected] Telephone: 02 8295 2300 HORT INNOVATION 2 PROCESSING POTATO STRATEGIC INVESTMENT PLAN – 2017-2021 Introduction This Strategic Investment Plan (SIP) is the roadmap that helps guide Hort Innovation’s oversight and management of individual levy industry investment programs. The SIP lays the foundation for decision making in levy investments and represents the balanced interest of the particular industry from which the levy is collected. The very important function of the SIP is to make sure that levy investment decisions align with industry priorities. Hort Innovation is the not-for-profit, grower-owned research The levy rate on processing potato is 50 cents per tonne.1 and development (R&D) and marketing company for Australia’s Hort Innovation manages the processing potato levy funds $9 billion horticulture Industry. proportion directed to R&D (49 cents per tonne). Separately, Plant Health Australia (PHA) manages plant health programs As part of the role Hort Innovation plays as the industry (1 cent per tonne). In 2015/16, total processing potato R&D levy services body for Australian horticulture, the organisation is receipts were approximately $405,000. tasked by the Australian Government with working alongside industry to produce a strategic plan for investment of levies in Hort Innovation has developed this SIP to assist in strategically industry R&D and marketing activities. investing the collected processing potato levy funds in the priority areas identified and agreed by the industry. The ability Each individual levy industry investment strategy also speaks to deliver on all the articulated strategies (and investments) in to the future growth and sustainability of the Australian an impactful manner will be determined by the ability of the horticulture industry as a whole. The SIPs are produced under statutory levy to provide the resources to do so. the umbrella of the Hort Innovation Strategic Plan, which takes a whole-of-industry view in setting its direction, as it This plan represents the Australian processing potato industry’s considers broader agriculture government priorities for the collective view of its R&D needs over the next five years (2017 advancement of Australian horticulture. to 2021). This plan has been developed in consultation with Australian processing potato levy payers through a synthesis of The process of preparing this SIP was managed by Hort direct consultation with research providers and industry thought Innovation and facilitated in partnership with Industry leaders and two workshop sessions with Hort Innovation’s Representative Bodies and Strategic Investment Advisory processing potato Strategic Investment Advisory Panel (SIAP). Panels (SIAPs). Independent consultants were engaged The stakeholders consulted are listed in Appendix 1. to run the consultation process, to gather the advice from stakeholders impartially and produce a plan against which each The processing potato SIAP has responsibility for providing levy paying industry can be confident of its strategic intent. strategic investment advice to Hort Innovation. Both Hort Innovation and the panel will be guided by the strategic Hort Innovation has valued the support, advice, time and investment priorities identified within this plan. For more commitment of all stakeholders that contributed to producing information on the processing potato SIAP constituency please this SIP, especially processing potato growers. visit Hort Innovation’s website at www.horticulture.com.au. The processing potato SIP Market failure considerations Owners of processing potatoes – the person who owns The intent of the R&D levy funding program is to invest in areas the potatoes when processing begins – in the processing where there is market failure or under-investment by private potato industry pay levies to the Department of Agriculture businesses because they cannot capture all of the benefit and Water Resources (DAWR), who is responsible for the gained from such investment, such as investing in structural collection, administration and disbursement of levies and change or where there is a public benefit beyond commercial charges on behalf of Australian agricultural industries. advantage to individuals. Economists term this as ‘externalities’. Agricultural levies and charges are imposed on primary As such, the focus in this SIP is on pre-competitive R&D. At the producers by government at the request of industry to request of the SIAP, this SIP focuses on on-farm production collectively fund research and development (R&D), marketing, and productivity issues and does not deal with supply chain, biosecurity and residue testing programs. product innovation and other factors beyond the farm-gate. 1 http://www.agriculture.gov.au/ag-farm-food/levies/rates/potato HORT INNOVATION 3 PROCESSING POTATO STRATEGIC INVESTMENT PLAN – 2017-2021 Potato – processing STRATEGIC INVESTMENT PLAN 2017-2021 AT A GLANCE OUTCOMES STRATEGIES POTENTIAL IMPACT OF THIS PLAN Industry has Compile a database of knowledge access to the sources from local and overseas world’s best centres of excellence agronomic information Assist our research community $ and networks, to establish/tap into global virtual resulting in scientific community on potato research increased Identify gaps where the global science 12 productivity does not cover Australian specific Million issues or challenges Initiate projects to fill any gaps identified in the previous strategy Based on an estimated investment of $3.59 million over the next five years. Introduce annual visiting fellow program Major opportunities Growers are Run subject specific professional serviced by training workshops for y To take advantage of the world’s best scientific knowledge professional consulting agronomists (consider in potato agronomy and pest and disease management agronomists with accreditation scheme) best practice y The growing demand for potato products in nearby South-East potato expertise, Supply advisors with information and Asian markets resulting in materials that simplify and summarise the science in a format that growers y The potential to leverage Australia’s horticultural levy system improved can relate to (so-called ‘muddy to grow skills. industry skills and knowledge boots science’) Major challenges Establish a social media network facilitated by industry experts and y Biosecurity incursion especially psyllid professional advisors within the processing potato community (ensure y Global oversupply and dumping in the Australian market adequate funding to maintain) eroding prices Develop soil management resource kit y Appreciation of the Australian dollar which will drive imports with practical and cost-effective tools y Decreased consumption due to greater awareness of health risks Develop a calendar of coordinated y Higher input costs in all categories relative to competing countries program of regional field days and/ y Lower and more variable yield than competitors or trials, specifically for processing growers (in cooperation with y Lack of economies of scale and capital
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