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Thesis Draft Influencing sustainable water use in Australian irrigated agriculture: a value chain management approach John McVeigh Bachelor of Business Master of Business Administration A thesis submitted for the degree of Doctor of Philosophy at The University of Queensland in 2012 School of Agriculture and Food Sciences Abstract The Australian irrigation industry is a significant component of the nation’s food and fibre value chains, contributing one third of the nation’s agricultural production and half of its agricultural profit. Despite this the Australian water reform process, and the growing community interest in appropriate water use, has placed significant pressure on Australian irrigators to justify their access to water in the face of competition from urban, industrial and especially environmental needs. This pressure peaked during the unprecedented Australian drought conditions that commenced in the late 1990’s and prompted the Australian Government to form the National Water Commission in order to focus on sustainable water management. Irrigator engagement in the water reform process has been increasingly defensive and although sustainable water management was being pursued at a firm (or farm) level, as well as through industry funded initiatives and programs, the individual irrigator has generally been left with the responsibility for sustainable water management. This research recognises a value chain as the physical chain of processes that sources inputs, transforms them into marketable goods and distributes them through to final consumers. The potential for the entire irrigation value chain to share in the responsibility to respond to water reform provides a background for the key research question of: how can value chain management principles assist Australian irrigated agriculture producers secure access to irrigation water? Literature regarding the water reform process, value chain management principles, value chain responses to environmental pressure, and corporate social responsibility is considered in order to investigate the potential for all members of irrigated value chains to not only ensure, but also share responsibility for, sustainable water management. This thesis considers that problem by addressing an identified gap between the water reform and value chain management literature. The research design, based on a constructivist paradigm, involved participant observation in a single case study, which was supported and triangulated by in-depth semi-structured interviews with a range of water reform and irrigation industry opinion leaders. The analysis found that: (i) value chain management principles promote sustainable irrigation management practices; (ii) whilst value chain management promote sustainable irrigation management practices, they are not sufficient to secure sustainable irrigation management practices; and (iii) despite limitations, value chain management is the most likely business management strategy to secure sustainable irrigation management practices. i This study’s contribution has been to address the gap between water reform and value chain management literature and provides conclusions as to how value chain management principles can assist fuller engagement in the water reform debate. This informs possible future research in the area of sustainable management of all natural resources, and formation of appropriate industry and government policy. ii Declaration by author This thesis is composed of my original work, and contains no material previously published or written by another person except where due reference has been made in the text. I have clearly stated the contribution by others to jointly-authored works that I have included in my thesis. I have clearly stated the contribution of others to my thesis as a whole, including statistical assistance, survey design, data analysis, significant technical procedures, professional editorial advice, and any other original research work used or reported in my thesis. The content of my thesis is the result of work I have carried out since the commencement of my research higher degree candidature and does not include a substantial part of work that has been submitted to qualify for the award of any other degree or diploma in any university or other tertiary institution. I have clearly stated which parts of my thesis, if any, have been submitted to qualify for another award. I acknowledge that an electronic copy of my thesis must be lodged with the University Library and, subject to the General Award Rules of The University of Queensland, immediately made available for research and study in accordance with the Copyright Act 1968. I acknowledge that copyright of all material contained in my thesis resides with the copyright holder(s) of that material. Where appropriate I have obtained copyright permission from the copyright holder to reproduce material in this thesis. iii Publications during candidature No publications. Publications included in the thesis No publications included. Contributions by others to the thesis No contributions by others. Statement of parts of the thesis submitted to qualify for the award of degree None. iv Acknowledgements The research for this thesis has only been made possible through the support of the Commonwealth Research Centre for Irrigation Futures (CRCIF). I sincerely thank the management and board of the CRCIF for the scholarship and research assistance provided. The CRCIF has made a tremendous contribution to the future of irrigation and food and fibre industries in Australia and it has been a pleasure to work with others across the country in that regard. I would especially like to thank my supervisor, Professor Ray Collins for his support, understanding, critique, encouragement and most of all his patience. Ray’s input and guidance was instrumental in this research. The journey towards completing a thesis such as this is challenging, arduous but most satisfying. I have indeed been most fortunate to have Ray champion me through that journey. Thanks are also due to the management and staff of the Matilda companies used as the case study in this research, and I particularly express my sincere appreciation to the Jauncey family for their assistance. Their willingness to engage with me in this research, and to provide significant access to their organisation and supply chains throughout the highs and lows of their business experience, was extraordinary. Finally I would like to thank my friends and colleagues for supporting me in this quest, and to my wife Anita and our wonderful children – please know that it has been your understanding, support and encouragement that has sustained me in completing this thesis. v Keywords water reform, horticulture, relationship Australian and New Zealand Standard Research Classifications (ANZSRC) ANZSRC code: 070108 Sustainable Agricultural Development, 40% ANZSRC code: 150309 Logistics and Supply Chain Management, 40% ANZSRC code: 070106 Farm Management, Rural Management and Agribusiness, 20% Fields of Research (FoR) Classification FoR code: 0701, Agriculture, Land and Farm Management, 40% FoR code: 1503, Business and Management, 40% FoR code: 1505, Marketing, 20% vi Table of contents Abstract ...................................................................................................................... i Acknowledgements ........................................................................................................ v Table of contents .......................................................................................................... vii List of tables ................................................................................................................... x List of figures ................................................................................................................ xi List of plates .................................................................................................................. xi List of abbreviations..................................................................................................... xii 1 Introduction .......................................................................................................... 1 1.1 Background…………………………………………………………………..1 1.1.1 Limitations ............................................................................................... 4 1.1.2 Definitions .............................................................................................. 5 1.2 Research problem…………………………………………………………….5 1.3 Research questions…………………………………………………………...8 1.4 Research objectives…………………………………………………………..9 1.5 Research justification………………………………………………………...9 1.6 Structure of this research……………………………………………………10 2 Literature review and context ........................................................................... 14 2.1 Introduction…………………………………………………………………14 2.2 The Australian water reform process – the meeting of irrigation and other needs in the community……………………………………………….15 2.2.1 Background – from the “magic pudding” to a national water management initiative ............................................................................ 15 2.2.2 Stakeholders in the water reform debate ................................................ 19 2.2.3 The language and interpretations of reform stakeholders ...................... 20 2.2.4 Reform progress and where to from here ............................................... 23 2.2.5 Conclusion ............................................................................................
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