australian almonds Strategic R&D Plan 2011 - 2016 “A plan for the investment of industry and government funds to develop information, products and services for the benefit of the Australian Almond Industry” Australian Almonds www.australianalmonds.com.au Australian Almond Industry Strategic R&D Plan 2011-2016 Almond Board of Australia Horticulture Australia Limited Almond Board of Australia (ABA) is the Peak Industry Body (PIB) for the Australian almond industry. The ABA is a not-for-profit, membership based organisation representing the interests of Australian almond growers, processors and marketers. Horticulture Australia Limited (HAL) is a national research, development and marketing organisation that works in partnership with the horticulture sector to invest in programs that provide benefit to Australian horticulture industries. HAL is an industry owned company that invests approximately $100 million annually in projects. It currently manages around 1100 projects in a wide range of areas including marketing, quality assurance, food safety, industry communication, biotechnology,and other research areas including sustainability. The ABA is registered under the South Australian Associations Incorporation Act 1985 and as a national body under the Australian Investments Security Commission (ASIC). The Board of Directors are appointed in accordance with the ABA’s Constitution. As the Australian Almond industry’s peak body, the ABA facilitates further growth of the industry, seeks to maximise its profitability and ensure its sustainability by providing a platform for industry members to collectively respond to industry wide issues, invest in research and marketing, share knowledge, and interact with government and other stakeholders. 2|Pa g e HAL is funded by statutory levies in Marketing and Research & Development from its member industries and also voluntary contributions received from grower associations, commercial enterprises and individuals. The Australian Government also contributes funds on a dollar for dollar basis for expenditure on Research & Development. Almond Board of Australia Inc. 9 William Street, PO Box 2246 Berri South Australia 5343 Horticulture Australia Ltd Level 7, 179 Elizabeth Street Sydney New South Wales 2000 P + 61 8 8582 2055 F + 61 8 8582 3503 E [email protected] W www.australianalmonds.com.au P + 61 2 8295 2300 F + 61 2 8295 2399 W www.horticulture.com.au Contents Foreword 4 Strategic Overview 5 1. Australian Almond Industry 7 Industry Snapshot Industry Analysis 2. Research & Development Environment Funding R&D Setting R&D Priorities Project Development R&D Project Endorsement, Approval and Execution Project Communication and Evaluation 3. Strategic Approach Vision Mission 15 21 Objectives Strategies 4. Action Plan 25 5. Allocation of Funds 33 Investment Approach Analytical Business Case Portfolio Balance 3|Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 Foreword Recent years have seen significant expansion of Australian almonds. The industry is now planning for further production growth as young trees reach maturity. Current production is expected to double to more than 80,000 tonnes by 2015. It is also anticipated that further plantings will be undertaken over the next few years, generating additional production growth over the same period. During this growth period, significant change has taken place both within the industry and in the external environment, with new challenges and opportunities emerging as a result. This new Strategic R&D Plan for the Australian Almond Industry has been developed in this context, in order to guide future R&D investment over the period 2011-16. There has been a long-term trend of increasing global consumption of almonds. This has been driven by a number of factors including the health benefits and versatility of almonds. Australia has a worldwide reputation as a supplier of quality almonds. Few countries can efficiently produce the high quality almond that Australia provides. This gives Australia a powerful competitive position as an international supplier. Importantly, this plan encompasses actions intended to protect the industry against threats - both current and potential threats, including exotic pest or disease incursions and environmental threats such as climate change. This is an important document for our industry. It will be the template by which the industry moves through a period of strong growth, without compromising the value or global reputation of Australian almonds. Julie Haslett Chief Executive Officer Almond Board of Australia 4|Pa g e Strategic Overview Our Vision As a profitable industry to lead in the efficient production, processing and marketing of quality almonds and secure a position of preferred supplier Our Mission Optimise profitability through innovation Our Objectives Develop & maintain market opportunities (volume sold) Improved efficiency & sustainability (costs & risks) Increase product value (quality & price) Provide a supportive operating environment (skills & communication) 5|Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 6|Pa g e 1. Australian Almond Industry 7|Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 1.1 Industry Snapshot Almonds • Almonds are a healthy, versatile, natural food that has been consumed around the world since ancient times. • Almonds offer a unique matrix of nutrients and have been clearly linked with improved heart health. • Almonds are extremely versatile, being a key ingredient in a vast array of products including: snack foods, confectionery, baking goods, breakfast cereals, and desserts. Global Demand for Almonds • Worldwide demand for almonds is at an all time high, having more than doubled over the past decade. During this period consumption growth has averaged 9% per annum during this period. • This growth trend is expected to continue due to increased awareness of the positive health message and rapidly growing demand from developing markets. • Taste and versatility of almonds have also been major factors behind this increase in consumption. • Developing countries such as India, China and the Middle East are driving almond consumption growth. Australian Almonds • Australia’s almond growing season commences with the magnificent almond blossom in July and August each year. Harvest takes place in February and March, with produce ready for the market in April and May. • Australia is known for its natural advantages in agriculture, including favourable climatic conditions and low incidence of pest and disease, delivering; cost advantages, high yields, product quality and integrity. • The Australian almond industry is internationally competitive in both quality and cost. • The Australian almond industry is one of the most efficient in the world, competing in international markets and operating without any production or export subsidies. Australia does not impose tariffs on imported almonds. • Almonds are in high demand in many developing countries and Australia is well positioned to service these markets. • Greater than 90% of almonds consumed in Australia are grown and produced by Australian farmers. Producing Regions • Almonds are predominantly grown along the Murray River corridor, across four Australian states: • New South Wales • South Australia • Victoria • Western Australia • Australia has four major almond producing regions: • Adelaide • Riverland • Riverina • Sunraysia Global Almond Production • Almond production is led by major world producer: California, where the value of almonds exceeds US$2.3 billion. • Almonds are California’s largest tree nut crop in both total value and acreage. They rank as the largest US specialty crop export, as well as the top agricultural export of the state of California, with export value of US$1.9 billion. • 8|Pa g e Global almond supply is restricted by limited access to suitable growing conditions. Almonds are commercially produced in very few locations around the world, requiring a Mediterranean climate: cold winters during dormancy and warmer summers to develop the nut. Producing areas are further restricted by the need for suitable land and water availability. Australian Almond Industry Almond Plantings Investment in Almonds • Total Australian almond acreage has increased six-fold over the past nine years: 4,600 hectares in 2000 to nearly 27,700 hectares in 2009. • Almonds have become an attractive crop for investors because the industry has proven to be profitable and stable over the longer term. • Approximately one quarter of Australian almond plantings have reached full maturity, being eight years and older. • • One third of total Australian almond plantings are non-bearing (less than three years). Reasons for this include the ability to develop and manage orchards on a larger scale, together with the development of new growing technologies that have enhanced profitability and maintained international competitiveness. • 90% of Australia’s almond plantings are drip irrigated, with less than 10% of plantings under sprinkler irrigation. • Nonpareil is currently the major variety, representing more than 50% of plantings, followed by pollinator varieties: Carmel (31%) and Price (12%). Almond Production • Australian almond production in 2009 totalled 36,500 tonnes. • Future production increases will occur as young plantings reach full maturity, bringing productive capacity to greater than 80,000 tonnes by 2015, more than double that of 2009 production. • Pollination is an essential input to the production process. Beehives are brought into the orchard during blossom season to cross-pollinate varieties. Industry Growth • The Australian almond industry has undergone rapid expansion since 2001. • On a percentage basis, Australia is the fastest growing almond industry in the world. • In 2008 Australia produced 3% of world almonds, with California contributing to 85% of global production. • It is forecast that Australia will surpass Spain (6%) to become the world’s second largest almond producer within the next few years. Value of Almonds • The Australian almond industry has a current estimated value of more than $250 million, including exports of $121 million. • Additional production from newly planted orchards is expected to double the industry’s current value to greater than $500 million by 2015. • Almonds are a valuable contributor to the Australian economy. • Growing, harvesting, transporting, storage, processing, value adding and marketing of almonds are major contributors to the economic and social wellbeing of the regional production areas. • The long-term outlook for the continuation of an economically viable, internationally competitive almond industry in Australia is extremely positive. Information is based on 2009 data. For more information visit www.australianalmonds.com.au 9|Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 1.2 Industry Analysis The Industry Analysis identifies the key opportunities and threats, based on a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis. The almond industry value chain has four main components (Figure 1): • • • • Pre-Farm On-Farm Post Harvest Market Pre-Farm On-Farm Post Harvest Market Biosecurity Breeding & Evaluation Tree Production Pre-Plant Agronomy Harvest Primary Processing Secondary Processing Branding Domestic Market Export Markets Consumer Risk Management Operating Environment Figure 1 - Almond Industry Value Chain ���� |Pa g e Australian Almond Industry Pre-Farm On-Farm The Pre-Farm component of the Australian almond industry value chain specifically deals with the origin, source and cleanliness of the planting material used on-farm. Pre-Farm Biosecurity • Exotic pests & diseases of plants & bees • Import of seed, pollen, cultivars & rootstocks • Post entry quarantine • Germplasm resource The industry is fortunate to have minimal pest and disease pressure with many damaging pests and diseases not being present in Australia such as the glassy-winged sharpshooter, almond seed wasp, navel orangeworm, peach twig borer, ten-lined June beetle, Varroa mite, almond leaf scorch, hyperplastic canker, phomopsis canker and European stonefruit yellows. Pre-border and border controls have to date prevented the introduction of these and other exotic pests and diseases into Australia. The industry has also placed great emphasis on the genetic integrity and the high health status of its budwood supply. For over 20 years, the Almond Board of Australia has operated an industry-owned, and well supported budwood repository. This site provides not only Breeding & Evaluation high health budwood for commercial nurseries and tree production, • Breeding new Australian but it also acts as a germplasm repository for the industry’s cultivar cultivars breeding program. A number of rootstocks are also located at • Evaluation of Australian this site. Programmed testing is conducted for the two major virus and overseas cultivars & threats to the industry, Prune Dwarf Virus and Prunus Necrotic Ring rootstocks Spot Virus. • Commercialisation of new cultivars & rootstocks Tree Production • • • • Budwood repository Rootstock propagation Tree production Nursery certification The industry has been investing in an almond cultivar breeding program for over ten years and continues to see new variety development as a source of global competitive advantage provideing growers with superior agronomic improvements. Over the same period the industry has also imported overseas cultivars and rootstocks. The almond industry does not as yet have a nursery accreditation scheme for commercial tree production; however it does encourage best practice in this area. It is a high priority for the industry to continue to enhance the biosecurity status of planting material, orchards and pollination and to breed, evaluate and commercialise new cultivars and rootstocks. On-Farm Pre-Plant • Soil remediation & preparation • Orchard design • Cultivars & Rootstocks Agronomy • Soil health • Tree architecture & training • Pollination efficiency • Irrigation efficiency • Optimal nutrition • Plant growth regulation • Integrated pest & disease management • Climate Variability and adaption Harvest • • • • Maturity assessment Yield mapping Harvest systems On-farm product storage The On-Farm component of the Australian almond industry value chain specifically deals with the production, harvest and on farm storage of almonds. The industry currently has an estimated average yield of 3.0 tonnes per hectare and is fortunate to have several favourable circumstances for the production of almonds, including: • Current orchards planted on soils which are well drained • Current plantings are primarily planted on virgin almond soil with little or no pre-plant pest or disease pressure • Adequate supplies of pollination services • Grown in areas with favourable climatic conditions with low pest and disease pressure. Conversely, the industry has some on-farm challenges, such as: • Almond orchards have a longer establishment period and are consequently a longer term financial investment in comparison to other more intensive horticultural crops • Orchard soils that are commonly alkaline, low in organic matter and low in nutrients • Major reliance on traditional cultivars which have some agronomic weaknesses • Minimal choice of new cultivars with similar market acceptance to that of traditional cultivars • Australian almonds are grown in conditions of low humidity, high evaporation and consequently high water requirements • The industry has been, and will continue to be faced, with issues related to water security and water availability; • Australian almonds are grown in regions where predicted changes to climate may have negative impacts • Food safety issues • Emerging pest and disease pressure • Longer harvest period increasing susceptibility to unfavourable climatic conditions It is a high priority for the industry to continue and enhance the productivity, sustainability and profitability of our orchards. ���� |Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 Post Harvest The Post Harvest component of the Australian almond industry value chain specifically deals with off-farm storage, primary processing and secondary processing of harvested almonds. This is a critical segment of the industry, but an area which has historically had minimal levy funded R&D and relied predominantly on R&D conducted by private operators. Post Harvest Primary Processing • • • • Product storage Hulling & shelling Product sizing Logistics Secondary Processing • • • • Product classification Product development Product packaging Distribution This part of the industry has an emphasis on high quality product that is sorted, sized and packed to strict specifications. However, with the predicted supply to increase by more than twofold by 2015 to 80,000 tonnes, there is an increasing requirement to focus on post harvest issues. Key R&D opportunities for Post Harvest include: • • • • • • Development of improved on-farm and off-farm product storage as a hedge against food safety issues Capturing efficiencies related to primary and secondary processing, product classification and well defined quality specifications Food safety prevention, measurement and management Supply chain quality assurance Alternative uses of processing by-products Value adding, packaging, logistics, and distribution It is a high priority for the industry to build and enhance the post harvest management of the industry’s almond produce. Risk Management • • • ���� |Pa g e Crisis management & response Food safety Quality Assurance Market Market The market component of the Australian almond industry value chain specifically deals with sales and marketing aspects, including generic branding of Australian almonds, transacting sales in both domestic and export markets and understanding and meeting customer and consumer requirements. The market sector is an area which has recently gained momentum, emphasis and attention as production levels have, and will continue to, increase over the next five years. Branding • Clean & green attributes • Quality attributes • Product differentiation Australia is soon to become the second largest global producer of almonds, consequently becoming increasingly reliant on marketing initiatives to deliver an increased share of world trade without sacrificing profitability. Domestic Market • Trade communication • Market research & intelligence • Market development Export Markets Key R&D opportunities for the Market component of the value chain include: • Market research & intelligence • Market development • Identifying new market opportunities • Logistics • Market access Consumer • Consumer research • Educating health professionals • Market research and ongoing intelligence in both domestic and export markets Market development in both domestic and export markets Private R&D initiatives (VC funded) to develop new, differentiated almond products Developing whole-of-industry relationships with customers, retailers etc As a means of reaching consumers, promulgating the health benefits of almond consumption to health food professionals, medical practitioners • • • • It is a high priority for the industry to build markets and to enhance the profitability of Australia’s almond produce. Operating Environment • • • • • Industry cohesion Leadership & skills Research capacity Communication & extension Internal collaboration Australian Almond Industry Almond Industry Value Chain Pre-Farm Biosecurity • Exotic pests & diseases of plants & bees • Import of seed, pollen, cultivars & rootstocks • Post entry quarantine • Germplasm resource Breeding & Evaluation • Breeding new Australian cultivars • Evaluation of Australian and overseas cultivars & rootstocks • Commercialisation of new cultivars & rootstocks Tree Production • • • • Budwood repository Rootstock propagation Tree production Nursery certification On-Farm Post Harvest Pre-Plant • Soil remediation & preparation • Orchard design • Cultivars & Rootstocks Agronomy • • • • • • • Soil health Tree architecture & training Pollination efficiency Irrigation efficiency Optimal nutrition Plant growth regulation Integrated pest & disease management • Climate Variability and adaption Primary Processing • • • • Product storage Hulling & shelling Product sizing Logistics Secondary Processing • • • • Product classification Product development Product packaging Distribution Harvest • • • • Maturity assessment Yield mapping Harvest systems On-farm product storage Market Branding • Clean & green attributes • Quality attributes • Product differentiation Domestic Market • Trade communication • Market research & intelligence • Market development Export Markets • Market research & intelligence • Market development • Identifying new market opportunities • Logistics • Market access Consumer • Consumer research • Educating health professionals Risk Management • • • Crisis management & response Food safety Quality Assurance Operating Environment • • • • • Industry cohesion Leadership & skills Research capacity Communication & extension Internal collaboration ���� |Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 ���� |Pa g e 2. Research & Development Environment ���� |Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 2.1 Funding R&D The funds available for research and development projects are typically a combination of levy or voluntary contributions from the almond industry, which are matched by the Australian Government through Horticulture Australia, and may include an additional investment by the research provider. Australian Almond Industry Almond Board of Australia Statutory Levy Payers Almond Growers Industry Advisory Committee Strategic Committees Processing Committee* ABA, Commercial Operators, Research Partners etc Production Committee Co-Investment Figure 2 - Australian Almond R&D Structure ���� |Pa g e R&D Benefits & Outcomes Marketing Committee Voluntary Contribution Funds Government Research Partners Australian Government Plant Improvement Committee *To be established Horticulture Australia Limited Research & Development Programs R&D Environment Statutory R&D Levy Statutory Levy Payers Almond Growers Voluntary Contribution Funds ABA, Commercial Operators, Research Partners etc Co-Investment Government Research Partners All almond producers pay a statutory R&D levy at the first point of wholesale sale. Levies are collected by the Levies Revenue Service - a unit within the Commonwealth Department of Agriculture Fisheries and Forestry, and made available to Horticulture Australia for R&D. The Australian Government matches the amounts raised from almond levy payers upon expenditure through HAL on projects within the almond R&D program. Levy rates are: • • • Almonds inshell Shelled almonds Almonds inshell (Nonpareil) 1 cent/kg 2 cents/kg 1.5 cents/kg Note: All figures are net of GST. Voluntary Contribution Funds Alongside levy funded R&D, HAL has the Voluntary Contribution (VC) mechanism for funding industry R&D. “Voluntary Contributions” are sums of cash, contributed by an industry member (a company, organisation, a grower or group of growers, etc) that can be matched with Commonwealth funds for R&D contracted R&D. While levy funds are used for HAL projects that benefit the whole industry, VC funds can be used for projects that mainly benefit the voluntary contributor. The ABA utilises a range of income sources to fund R&D initiatives through the voluntary contribution model. ABA’s funding sources include a Voluntary Marketing Contribution and almond budwood sales. Co-Investment Funds State government R&D agencies, CSIRO, Universities and other research providers often have R&D objectives which overlap with industry and Commonwealth objectives. Where this occurs, an opportunity exists for the research providers to co-invest in research projects and thus maximise funding leverage, research efficiency and outputs achieved. ���� |Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 2.2 Setting R&D Priorities Almond Board of Australia Productivity & Value Adding (25%) Almond Board of Australia Supply Chain & Markets (33%) The ABA, as the recognised Industry Representative Body (IRB), is responsible for the consultation with industry levy payers in relation to the R&D program, levy rates and recommending membership of the Industry Advisory Committee (IAC). The ABA arranges an Annual Levy Payers Meeting at which the HAL Annual Report to levy payers is presented. Natural Resources Management (8%) Climate Variability & Climate Change (6%) Biosecurity (7%) Innovation Skills (11%) R&D priorities are guided by the Almond Industry R&D Plan and the Australian Government’s R&D investment priorities. Australian Government Technology (10%) Australian Government R&D Priorities The Australian Government sets investment priorities for the funds it makes available for match investment in R&D. These priorities (the Rural Research and Development Priorities) aim to foster innovation and guide R&D initiatives in the face of continuing economic, environmental and social change. Figure 3 –2009/10 Almond R&D Program funding allocated against the Australian Government priorities for rural R&D Industry Priorities Strategic Committees 1. Productivity & Adding Value – Improve the productivity and profitability of existing industries and support the development of viable new industries. Marketing Committee 2. Supply Chain & Markets – Better understand and respond to domestic & international requirements and improve the flow of such information through the whole supply chain, including to consumers. Processing Committee* 3. Natural Resource Management – Support effective management of Australia’s natural resources to ensure primary industries are both economically and environmentally sustainable. 4. Climate Variability & Climate Change – Build resilience to climate variability and adapt to and mitigate the effects of climate change. 5. Biosecurity – Protect Australia’s community, primary industries and environment from biosecurity threats. Production Committee Plant Improvement Committee 6. Innovation Skills - Improve the skills to undertake research and apply its findings. 7. Technology - Promote the development of new and existing technologies. Almond R&D investment is closely aligned with these priorities (Figure 3). ���� |Pa g e *To be established The process of identifying R&D priorities is assisted by four Strategic Committees: • Plant Improvement Committee - Supply and delivery of world competitive genetics to develop improved cultivars of almond trees • Production Committee - Production issues to ensure the costs, quality and value of Australian almonds remains world competitive • Processing Committee – Dealing with the issues related to primary and secondary processing (to be established) • Marketing Committee - Coordination of market research (domestic and export) and the subsequent development of marketing strategies. Committee membership is formed from industry leaders and skills based appointments, providing a convenient access point for levy payers. These Committees also monitor the progress of R&D projects. R&D Environment 2.3 Project Development New research projects are developed by research providers in response to either the posting of industry priorities on the HAL website or by inviting prospective research providers to submit tenders based on a project brief. Proposals should be submitted through the HAL website as part of the annual “industry call” or VC projects can also be submitted during the “general call”. In years where matching funds are not fully allocated, out of call proposals may be considered. Research providers may seek additional technical or industry background on the context of the research priorities and required outputs of the projects from HAL or the ABA. 2.4 R&D Project Endorsement, Approval & Execution Endorsement of Projects Industry Advisory Committee (IAC) Industry Advisory Committee The IAC is a subcommittee of the HAL Board. The ABA recommends membership of the IAC to HAL, ensuring that the required skills and knowledge of the almond industry are present on the IAC. The Almond IAC is composed of an Independent Chair, members nominated by the ABA, with the ABA CEO and the HAL Industry Services Manager acting as ex-officio members. The three key responsibilities of the IAC are to: 1. Prepare a research and development plan (3-5 years) to establish the strategic direction of HAL’s investment of R&D and marketing funds for the industry, and a plan for communications with levy payers. 2. Prepare an annual investment plan submit it to HAL. This plan determines the annual expenditure for projects that contribute to the outputs listed in the R&D plan. 3. Produce an annual report for industry levy payers and HAL. The report details the achievements from research and extension projects. R&D proposals are assessed against set criteria by the appropriate HAL project manager. The project manager’s assessment and recommendation is submitted to the IAC, who then consider consider the proposals. Endorsed projects are included in the Annual Investment Plan submitted to the HAL Board for approval. In developing the Annual Investment Plan, the IAC provide input on the estimated levy income for the financial year ahead, and also the appropriate level of levy reserves required to maintain future funding committments. Horticulture Australia Limited Execution and Management of Projects – Horticulture Australia Limited (HAL) Once the Annual Investment Plan is approved by the HAL Board, endorsed proposals will undergo the appropriate approval process. Once approved, the project is contracted by HAL with research provider. Contracted projects are managed by a milestone reporting and payment process. The research provider reports at prescribed dates on the progress of the project against documented milestones. If progress is approved by the HAL project manager, payment is made. Milestones can be varied by mutual agreement; this may be a result of delays in research or to capture more opportunities arising from the project. Significant variations to contracts are normally considered by the Industry Advisory Committee, and recommended to HAL for approval. The ABA provides extension services to R&D projects. This ensures project outputs are well communicated to the almond industry, and new developments are integrated with existing industry practice. In addition to the contractual arrangements between HAL and the research provider, the ABA may establish an industry reference group to assist, advise and mentor the research team. Where additional expertise is required to improve progress or capture new opportunities, the involvement from scientific or commercial people with specific skills relevant to the issue may be called upon to review or contribute to the project. ���� |Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 2.5 Project Communication and Evaluation R&D Benefits & Outcomes Research & Development Programs Outputs from R&D intiatives such as: new products, equipment and training programs are conveyed to the broader industry as part of the communication strategy. Information relevant to producers is delivered via a range of communication tools including: • • • • • • conferences forums fact sheets newsletters field days; and electronic communication Emphasis is placed on utilising the most effective approach for reaching the intended audience, to support the adoption of research. A structured evaluation process can be used to assess changes in practice, additional knowledge and services, and the economic benefits derived from major projects. This evaluation is useful in guiding future investment in the priority areas, improving research, extension and commercialisation processes, and documenting the return on investment to stakeholders. ���� |Pa g e 3. Strategic Approach ���� |Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 3. Strategic Approach The strategic approach used in this Plan has five main components: 1. 2. 3. 4. 5. Vision: “the bigger picture” – where the industry wants to be at a particular point in the future. Mission: Defining the industry, its key purpose and values. Objectives: Outcomes that need to be achieved to deliver the vision. Strategies: How the objectives will be achieved. Action Plan: Who will do what, by when, to implement the identified strategies. Vision As a profitable industry to lead in the efficient production, processing and marketing of quality almonds and secure a position of preferred supplier Mission Optimise profitability through innovation ���� |Pa g e Objective 1 Objective 2 Objective 3 Objective 4 Develop & maintain market opportunities (volume sold) Increase product value (quality & price) Improved efficiency & sustainability (costs & risks) Provide a supportive operating environment (skills & communication) Strategies Strategies Strategies Strategies Actions Actions Actions Actions Strategic Approach 3.1 Vision 3.3 Objectives The Vision of the Australian almond industry for its future R&D investment is: The Objectives of the Australian almond industry for its R&D investment are: Vision As a profitable industry to lead in the efficient production, processing and marketing of quality almonds and secure a position of preferred supplier • “As a profitable industry...” - profitability drives investment leading to development and growth across the value chain. • “...lead...”- leading rather than following, taking a visionary approach. • “...in the efficient...” – efficiency and cost effective use of resources. • “...production, processing and marketing...” - the Vision for the plan extends across the entire value chain and recognises the segments are interlinked and co-dependent. • “...of quality almonds...” - the Australian industry has a reputation for supplying quality product and it is aimed to retain this position. • “...and secure a position of preferred supplier” – achieved by meeting product specifications and maintaining positive relationships with key customers. 3.2 Mission The Mission is seen as both a driver for the industry’s R&D investment and as the “applicability test” for R&D projects. Optimise profitability through innovation Develop & maintain market opportunities (volume sold) Objective 2 Increase product value (quality & price) Objective 3 The Mission of the Australian almond industry for its future R&D investment is: Mission Objective 1 Improved efficiency & sustainability (costs & risks) • “Optimise profitability” - As with the Vision; the Mission statement has an emphasis on profitability. The word “optimise” was added to indicate sustainability and taking the long term, sustainable view of profits. Objective 4 • “...through innovation” - Innovation is at the heart of R&D. Implied in this statement is the adoption and commercialisation of innovation across the value chain, to drive and sustain profitability. Provide a supportive operating environment (skills & communication) Objective 1: Develop and maintain market opportunities (volume sold) Understand consumer and customer needs in domestic and export markets to increase demand for Australian almonds. Objective 2: Increase product value (quality and price) Ensure the price of Australian almonds is maximised by maintaining a reputation as a reliable supplier of high quality almonds for different market segments. Objective 3: Improved efficiency and sustainability (costs and risks) Improve the productivity and international competitiveness of the Australian almond industry and protect it from threats. Objective 4: Provide a supportive operating environment (skills and communication) Support industry development through enhancement of the operating environment (i.e. leadership, skills development, partnerships, communication, extension, R&D resources). ���� |Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 3.4 Strategies In order to achieve the objectives, a number of high level strategies have been identified. Objective 1 Objective 2 Objective 3 Objective 4 Develop & maintain market opportunities (volume sold) Increase product value (quality & price) Improved efficiency & sustainability (costs & risks) Provide a supportive operating environment (skills & communication) Strategy 1.1 Strategy 2.1 Strategy 3.1 Strategy 4.1 Enhance capability to build the Australian almond brand through market & consumer research Establish practices to enhance product quality throughout the value chain Improve productivity & competitiveness across the value chain Enhance skills and capacity to support current and future industry needs Strategy 2.2 Strategy 3.2 Strategy 4.2 Identify & develop new market opportunities Promote food safety practices from production through to consumption Safeguard industry production and marketing systems from potential biosecurity threats Develop and deliver effective R&D programs that support the Strategic Plan Strategy 1.3 Strategy 2.3 Strategy 3.3 Strategy 4.3 Research & educate key influencers about the health benefits of almonds Develop and enhance product differentiation Support sustainable almond production Support adoption of R&D outcomes by effective extension Strategy 1.2 Strategy 3.4 Facilitate access to superior plant material ���� |Pa g e Strategy 4.4 Facilitate the two-way flow of information through the value chain 4. Action Plan ���� |Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 Objective 1: Develop and maintain market opportunities (volume sold) Strategy 1.1 Enhance the capability to build the Australian Almond Brand through market & consumer research Actions • • • • Identify priority markets and/or market segments Conduct analysis of key markets including customer specifications, government/trade requirements & consumer preferences Develop strategies for marketing Australian almonds in selected markets based on research findings Collect & analyse ongoing market intelligence & scan data Outputs • Market strategy for prioritised markets based on ongoing market intelligence Industry Outcomes • • Australia’s share of the targeted export markets increases to accommodate the increase in almond production. Domestic consumption of Australian almonds grows at 7% per annum Strategy 1.2 Identify & develop new market opportunities Actions • Encourage commercial investment in confidential projects to scope research & test new market opportunities Outputs • Confidential information that supports the development of new market opportunities Industry Outcomes • New & existing markets are developed for Australian almonds Strategy 1.3 Research & educate key influencers about the health benefits of almonds Actions • • Initiate research with respect to health benefits associated with almonds Undertake education programs targeting key influencers Outputs • Information packages and educational materials Industry Outcomes • Health professionals & other key influencers promote almonds as a part of a healthy diet ���� |Pa g e Action Plan Objective 2: Increase product value (quality and price) Strategy 2.1 Establish practices to enhance product quality throughout the value chain Actions • • • Develop & implement industry quality certification program Investigate improved drying procedures Investigate technologies to objectively measure moisture content of kernels Outputs • • • A quality certification program Technologies to enable high moisture kernels (i.e. >7%) to be dried with no detriment to fruit quality Technologies for measuring kernel moisture on-farm & prior to harvest Industry Outcomes • • Australian almonds maintain their high quality reputation Industry has adopted agreed minimum quality standards & consistent protocols for providing evidence that product meets specifications Strategy 2.2 Actions Outputs Industry Outcomes Strategy 2.3 Promote food safety practices from production through to consumption • • • • Identify food safety critical control points throughout the value chain Understand the potential for microbial contamination in stockpiles Address identified risks by developing technologies & protocols to help eliminate, reduce and/or manage associated risks Facilitate education & training about key food safety risks, improved product traceability & management protocols • • A best practice management program illustrating the critical control points & guidelines for managing these risks across the entire supply chain for microbial contamination & management Food safety simulation exercises with industry participation • • Food safety issues minimised Australian almonds maintain a positive food safety reputation Develop and enhance product differentiation • • • Obtain credible data that can be used to differentiate Australian almonds on the basis of product integrity, food safety, environmental credentials & quality parameters Conduct consumer research to assess consumer taste & product attribute preferences Encourage development of value-added products in response to consumer research findings Outputs • • • Credible data packages for the industry to differentiate Australian almonds Consumer research data to guide product development A range of new almond products Industry Outcomes • • Customers have access to a range of new, high value products Customer confidence in Australian almonds increased Actions ���� |Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 Objective 3: Improved efficiency and sustainability (costs and risks) Strategy 3.1 Improve productivity & competitiveness across the value chain Actions • • • • • Develop practices to optimise: pollination efficiency, water use efficiency, nutrition efficiency (and sustainability) Develop precision application methodology & systems for water, nutrition & pesticides to manage & reduce orchard variability Develop a whole of supply chain Integrated Pest and Disease Management program Investigate the potential for “one pass harvesting” Review & improve industry processing technologies & procedures Outputs • • • • Best practice & technologies for: pollination, water use, pest & disease management and nutrition Precision horticulture systems One pass harvesting scoping study industry to assess feasibility Processing review document and workshop • Australian almond orchards remain highly productive: • Achieve industry average yield of 3.8 T/Ha (3 year rolling average) • Maintain costs of production at 2009/10 levels (i.e. $3/kg) • Water use efficiency enhanced, as indicated by growers achieving a benchmark figure of at least 280 kg/ML Losses from pest & disease reduced Pollination management becomes a minor risk to almond production Improved processing efficiency Industry Outcomes Strategy 3.2 • • • Safeguard industry production & marketing systems from potential biosecurity threats Actions • • • • Ongoing assessment and prioritising of biosecurity threats to almond production and pollination Support the monitoring of both the almond and pollination industries for the presence of exotic pests and diseases Develop and review incursion management plans including appropriate quarantine measures Train industry in the use of incursion management plans Outputs • • • • • • Biosecurity manual for both the almond industry and the pollination industry Almond industry biosecurity crisis response management program encompassing both production and pollination. National beehive surveillance program (continued & enhanced) National almond exotic pest and disease surveillance and reporting network Consistent, up-to-date protocols for testing imported prunus pollen, seed, budwood & trees for exotic & endemic pests & diseases Simulation workshops for exotic beehive pests & diseases (enhanced & continued) Industry Outcomes • • The almond industry is protected from biosecurity threats If an incursion was to occur, damage is minimised ���� |Pa g e Action Plan Objective 3: Improved efficiency and sustainability (costs and risks) Strategy 3.3 Support sustainable almond production Actions • • • Develop practises to encourage sustainable soil health Assess the impact of climate variability & climate change on almond orchards Investigate alternative uses of processing waste, i.e. husks & shells Outputs • • • Best practice soil health management technologies Report developed to assess almond production in relation to potential climate variability & climate change scenarios Review to evaluate alternate uses for processing waste, including financial assessment of alternatives Industry Outcomes • • • • Soil acidification / salinity mitigated Industry practices enhance promotion of soil biology Australian almond industry’s carbon and environmental footprint reduced The value of almond husks & shells is increased to finance cracking costs Strategy 3.4 Facilitate access to superior plant material Actions • • • • • • Commercially focussed cultivar breeding program Evaluate promising cultivars & rootstocks Develop a commercialisation plan by 2013 for cultivars developed through the breeding program Establish an almond nursery accreditation scheme for the production of nursery trees by 2012 Develop and promote recommended rootstock propagation protocols for use by nurseries Establish & sustain a secure cultivar & rootstock almond germplasm repository Outputs • • • • • Alternative pollinator for Nonpareil Commercialisation plan developed for promising cultivars and rootstocks Tree accreditation scheme developed Rootstock & cultivar propagation protocols developed A secure almond germplasm repository Industry Outcomes • The almond industry is provided with consistent supply of world leading virus-free rootstocks & varieties ���� |Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 Objective 4: Provide a supportive operating environment (skills and communication) Strategy 4.1 Enhance skills & capacity to support current & future industry needs • • • Facilitate & support initiatives to develop: • Young leaders • Research capacity • Skills base across the industry • Secondary & tertiary students following a career in horticulture Phil Watters Award to be awarded every two years via a competitive nomination process International study trips organised and industry involvement encouraged Outputs • • • • • Phil Watters Award Scholarships to support tertiary institutional research Training programs for industry stakeholders Career days, field days & information sessions to promote almonds & horticulture to students & teachers International study trips Industry Outcomes • Industry capacity is enhanced through increased skills development Actions Strategy 4.2 Develop & deliver effective R&D programs that support the Strategic Plan Actions • • • • • • Prioritise strategies & actions requiring R&D projects Calculate projected funds from statutory levies & voluntary contribution funds Identify strategic partners to better leverage funds Implement the plan by appointing R&D providers for priority R&D projects Monitor and evaluate implementation of the R&D Strategic Plan via a formal review Monitor skills required for each of the strategic committees & address any gaps Outputs • • • • Strategic Plan for the Australian Almond Industry Project briefs for all priority strategies within each Objective Processing sub-committee established Evaluation Reviews of R&D Strategic Plan (Years 3 & 5) Industry Outcomes • • The industry has a strong R&D plan The R&D projects commissioned achieve the Outputs. ���� |Pa g e Action Plan Objective 4: Provide a supportive operating environment (skills and communication) Strategy 4.3 Support adoption of R&D outcomes by effective extension Actions • • • All R&D projects to include an adoption plan, budget & resource allocation for extension & technology transfer ABA is to be written into all project applications to ensure active involved in the extension process Develop demand driven publications, products & services Outputs • • • • • Extension publications, products & services, including fact sheets, field days, workshops and training sessions Project updates included in newsletters Final project reports available on the ABA website Regular survey of stakeholders to evaluate technology transfer Analysis of technology transfer Industry Outcomes • High level uptake of R&D outcomes by industry Strategy 4.4 Facilitate the two-way flow of information through the value chain Actions • • • • Ongoing collection & dissemination of industry statistics Develop & implement a communication strategy Fostering opportunities for value chain interaction including the Annual Almond Conference & Marketing Forum Evaluate the effectiveness & appropriateness of communication practices Outputs • • • • Publications disseminating industry statistics Communication initiatives including website updates and e-newsletters Annual Almond Conference & Marketing Forum Annual communication effectiveness survey Industry Outcomes • • • • Proportion of stakeholders accessing the ABA’s website increases All stakeholders across the value chain are informed & engaged Decision making across all areas of the almond supply chain are supported through access to timely & relevant information Industry statistics are up-to-date & readily available in a range of formats ���� |Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 ���� |Pa g e 5. Allocation of Funds ���� |Pa g e Australian Almond Industry Strategic R&D Plan 2011-2016 5.1 Investment Approach Over the next five years, the Australian almond industry’s investment in R&D will be driven by the objectives, strategies and actions identified in this Strategic R&D Plan. The plan has been developed to reflect both industry priorities and the Australian Government’s Rural Research and Development Priorities, as outlined on page 18. The ABA and HAL will seek to keep this plan updated, in line with industry priorities and the Australian Government’s rural R&D priorities, through a regular review of the plan as noted in Strategy 4.2 (p.30) Volume Sold 20% Costs & Risks 34% 5.2 Analytical Business Case The process of justifying and prioritising R&D objectives and strategies, and the associated allocation of investment involved the development of an analytical business case. An assessment of the costs and benefits associated with each objective were assessed, thereby providing an indication of the expected return on investment (ROI). Quality & Price 15% This process provided rigour and comparison between competing research and development investment areas, using both subjective and objective tools. R&D objectives and strategies were ranked based on urgency, importance, impact and likelihood of success and then the potential benefit assessed in relation to the expected costs. Benefit cost analyses were completed for the major program areas of each Objective. The information provided through this process has been used in determining allocations between competing areas of investment in this plan. 5.3 Portfolio Balance The expected distribution of R&D investment funds across the four objectives is shown in Figure 5 mapping expected expenditure over the period of the plan 2011-16. It is expected that the investment allocations across the plan period will remain relatively stable, but may be adjusted to reflect changes in the industry and/or Australian Government priorities. Skills & Communciation 31% Objective 1: Develop & maintain market opportunities - volume sold (20%) Objective 2: Increase product value - quality & price (15%) Objective 3: Improved efficiency & sustainability - costs & risks (34%) Objective 4: Provide a supportive operating environment - skills & communciation (31%) Figure 5 - Allocation of R&D investment by almond industry objective, 2011-2016 ���� |Pa g e ���� |Pa g e Almond Board of Australia Inc. ABN 31 709 079 099 9 William Street, PO Box 2246 Berri South Australia 5343 P + 61 8 8582 2055 F + 61 8 8582 3503 E [email protected] W www.australianalmonds.com.au Australian Almonds www.australianalmonds.com.au
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