Transcript HAL presentation template

Australian Vegetable Protected Cropping Industry
Strategic Plan 2006-2011
Draft 1 - September 2006
Prepared on behalf of:
Horticulture Australia Limited
Table of Contents
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Introduction
Vegetable Protective Cropping Strategic
Plan in Context
The Current Reality
The Vegetable Protected Cropping Industry
Future
Vision, Mission & Objectives
The Way Forward
Industry Strategic Imperatives
Introduction
Overview
The Plan has been
developed by industry
with consultation and
discussion across all
sectors.
The Plan was developed in
4 Phases to ensure it
meets the needs of
Industry.
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This draft Plan is due for
finalisation in November
2006 following
consultation and review by
Industry
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The development of an industry strategic plan is
essential for the vegetable protected cropping
industry as it prepares to go through a significant
growth phase in a challenging business
environment.
The industry strategic plan will be used to guide the
investment of industry levy funds and to focus the
AHGA on the critical needs of industry in the future.
The final plan will be developed utilising the
following 4 step process:
1. Analysis: situation and environmental analysis
2. Synthesis: a workshop to develop a shared
industry view and a draft Industry Plan
3. Consultation: discussions and feedback from
industry on the draft Industry Plan
4. Review: regional workshops to review the draft
plan, establish key action plans for inclusion in
the Final Industry Plan
The Final Industry Strategic Plan is due for
completion in late November 2006.
Vegetable Protective Cropping Strategic Plan In
Context
There is no specific protected cropping statutory levy.
“Vegetable Levies” are paid on many of the crops grown using protected cropping production
systems.
No statutory levies are paid on fresh tomatoes, whether they are field or greenhouse grown.
Funding research and development in the vegetable protected cropping market segment using
levy funds is therefore dependant on “Vegetable Levy” support.
The mainstream vegetable industry (vegetable levy) have aligned their research and
development priorities to VegVision 2020, the industry wide strategic plan produced as a result
of the Industry Partnerships Program (IPP) partnership between the Department of Agriculture
Fisheries and Forestry (DAFF), Horticulture Australia and AUSVEG Ltd.
The vegetable industry have, over the past two years, developed a clear direction for their
investment in Integrated Pest Management and Minor Use Chemicals, two areas of investment
highly relevant to the vegetable protected cropping market segment.
In order to ensure the research and development priorities of the vegetable protected cropping
industry are addressed the segment needs to align itself closely with:
•The 7 Foundation Projects identified in “Taking Stock & Setting Directions”;
•The 5 Strategic Imperatives identified in VegVision 2020; and
•The Plant Health/Plant Protection strategies developed by the vegetable industry.
The Current Reality
Protected Cropping Facts
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Protected cropping is the fastest growing food producing sector in Australia AHGA reports industry growth, nationally, to be up to 6% per annum.
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Over 1600 hectares of vegetables, herbs and floriculture under protected
cropping in Australia.
Farm-gate value of $600 million per annum - Equivalent to 20% of total value of
vegetable and flower production (Biggs, 2004).
Gross annual revenue, combining all sectors (retail, service providers, research,
etc), is in the order of $1 billion (Biggs, 2004).
Protected cropping directly employs 7 – 8 people per hectare - over 10,000
people nationally. The indirect employment multiplier for fresh produce is
estimated to be 2, suggesting that the industry creates over 20,000 jobs.
The current investment in greenhouse infrastructure is valued at $640 million
Annual investment in new infrastructure is estimated to be up to $10 million.
The average annual return on investment is between 5 and 10%.
The potential return on investment for high technology greenhouse and
hydroponic vegetable enterprises is around 20 – 25% per annum - much higher
than for other annual vegetable crops.
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Still Need
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Quantification of industry expansion trends to manage and support
The Current Reality
Stakeholders - strategic priorities & values
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Levy payers
Lower
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AUSVEG
Increasing
costs, access to markets, access to timely and commercially valuable
information, higher prices, less complexity and risk
public profile, status and visibility with growers, less bureaucracy,
increased industry representation, increased income, lower costs
Measurable
returns from investments, operational efficiency in service delivery,
company reputation, growing revenue base
•HAL
•Vegetable
•Research
IAC
Providers
Industry
ownership of strategic plans, quality planning processes, appropriate
expertise in planned development, strategic project investment
Security
of funds for research projects, peer recognition, consistent direction for
strategic research, opportunities to publish
•Packers
Quality
•Exporters
High-quality
•Wholesale
•Input
product, low reject %, competitive prices, spread of production, stable
relationships, low labour costs, efficient processes, good margins
product, competitive prices, counter seasonal or niche, consistent
supply, good margins
& Agents
suppliers
•Retailers
•Consumers
High
volumes, stable relationships, quality product, consistent supply, good margins
 Stable or growing industry?, high productivity, constant change, rapid adoption of
new technology, good margins
 Products that meet consumer demands, high stock turns, low waste, minimal
cost, good margins, consistent availability, stable relationships, guaranteed supply
 Confidence in safe, quality food, convenience, taste, variety, low prices, consistent
supply
The Current Reality
Organisational structure, direction and performance
Organisational structures
at state and national level
are not well developed
for representing and
managing industry issues
Need a strategic national
approach to industry
security linked to the
wider vegetable industry
The levy framework is
fragmented and
inconsistent with major
gaps, especially tomatoes
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There is no national body to represent
the protected cropping industry.
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There is no current strategy for any
such body to operate or implement.
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Resources are fragmented and
inadequate e.g. No tomato levy
The Current Reality
Industry communication and collaboration are poor
The protected cropping
industry does not stand in
isolation from the rest of
horticulture and has many
common issues.
Industry leadership and
succession are important
issues for the future.
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Improved communication
across the value chain is
essential to lift
productivity, reduce costs
and optimise returns.
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There is a need to ensure that industry organisations have
the right mix of skills, expertise and experience to provide
appropriate governance and decision-making for industry.
Many of the issues impacting on the protected cropping
industry are also relevant to many other horticultural
industries, and in many cases, relevant to the rest of
agriculture.
The industry currently has few mechanisms in place to
leverage advocacy on shared issues
Industry leadership and succession are critical issues. The
industry needs to develop and encourage young industry
participants to assume leadership roles.
Improved communication across the value chain is
essential to lift productivity, reduce costs and optimise
returns. Adversarial positions are reducing trust and
increasing costs.
As with other horticultural industries, business skills across
the industry are generally poor. New technologies can
expand the reach of education & training programs.
The Current Reality
Costs are too high to be profitable and innovative - needs review to fit
Rising cost pressures provide
a major challenge for the
industry to remain viable.
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Internal business costs and
unrealistic supply chain profit
sharing undermine producer
viability?
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Adversarial relationships,
fuelled by a lack of trust and
poor communications, exist at
all levels of the supply chain increasing our costs.
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Internal cost structures tend to be poorly defined
and managed, especially amongst the majority of
small farms. As a result clear price signals for
change cannot be developed or addressed without
a gross margin benchmark
As new costs emerge they are generally passively
absorbed until the business is unsustainable.
The supply chain takes advantage of these labour
intensive ‘price taker’ producers who are limited in
their ability to define or negotiate on their real
costs of production or relate these costs to any
differential in the value of a product.
Typically, there are adversarial relationships
between growers, processors, exporters and
retailers causing: lack of trust, poor
communication and higher costs.
The Current Reality
Industry marketing is non-existent
We need to know more
about fresh vegetable
consumers than our
competitors.
Fresh vegetables are
regarded as a commodity
by consumers and
growers, alike.
We have poor marketing
and promotion programs
to promote and educate
consumers on the benefits
of fresh veg products.
Some established
practices of the big
retailers are seen as
unhelpful for industry
viability.
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Vegetables seem to meet most of the criteria of consumer value
but are generally seen as a commodity product –
undifferentiated and staple.
Generally, there is a poor understanding of consumer needs and
how we can meet them in domestic markets. There is
inadequate, insufficient and outdated information on consumer
perceptions, preferences and behaviour.
A failure to understand consumer needs has meant that there
has been limited industry investment in product innovation to
value add to vegetable products. Unlike apples, potatoes and
mushrooms, the protected cropping industry has not attempted
to differentiate or promote its product. There are opportunities
to introduce differentiated products such as premium varieties,
gourmet selections and semi-processed products.
We have limited marketing and promotion programs to raise
awareness of protected cropping veg in the eyes of consumers
and as a result consumers have poor knowledge of product
varieties, uses, health benefits, etc.
We have poor market information for quality decision-making
and what we do have is poorly disseminated and not available to
all sectors.
Supermarkets are driving supply chains in both export and
domestic markets. They are often responsible for setting “de
facto” industry quality standards and have a major impact on
market pricing. Good relationships are essential.
The Current Reality
Consumers & Marketing
There is no current means
for producers to access
timely market information
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There is no discernment
regarding the true value
of fresh vegetable
products
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Consumer education is
required to establish a
price reward for a high
value product
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Consumer attitudes, lifestyles and buying
behaviours need to be understood
Consumer awareness, knowledge &
familiarity of onions need to be developed
Industry requires access to quality
information on markets and competitors
Marketing activities have been fragmented
and uncoordinated
Retailers believe that promotion will lift
sales
We must build relationships with
supermarkets & value chains – global and
domestic
The Current Reality
Business management strategies are not well developed
Investment planning tends
to be weak and generally
lacks a market driven
business case.
Financial institutions tend
not to be supportive of
new investment in
greenhouse infrastructure.
There is a shortage of
reliable skilled labour,
especially for modern
hydro systems.
A few businesses are leading the way with their market
based strategy for major new investment in production
technology, value adding and marketing. The majority
however face the following barriers:
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Businesses generally lack the market intelligence
and critical information on production technology
options and costs to base investment decisions on.
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As a result financial institutions tend not to perceive
a business case for replacing old glass/polyhouses
with new structures and systems (poly/shadehouses
are not regarded as tangible/transferrable assets by
many institutions).
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The unskilled, casual labouring history of the
industry has not motivated skill development/
retention of skilled workers.
The Current Reality
Current technology is not well matched to production or markets
requirements
Modern greenhouse
systems are uniquely
capable of consistently
producing the high quality
and volume of produce
required by supermarkets.
Many of the systems being
constructed are not well
suited to their climatic
location.
There is a lack of
Australian based expertise
to meet the planning and
operational needs of
modern hydroponic farms.
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Overseas producers in Holland, the UK, New Zealand and
the US, have established best practice technologies and
management systems for their greenhouse systems.
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Australia is lagging behind in the modernisation and
efficiency game at the expense of business viability.
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There also appear to be frequent poor decisions about the
type of technology that significant money is being spent
on. Need to maximise advantages of natural environment
with best fit to technology. e.g. benchmark water use
efficiency and promote best management practice.
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This gap needs to be addressed by building the base of
expert support and facilitating industry recognition and
uptake of the commercial advantages available through
effective modern systems.
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Manage introduction of Bumblebees
Protected Cropping Technology - definitions
1. Conventional greenhouses – Low tech:
Characteristics: Low structures (glass, poly, mesh), soil cropping, no climate control.
PEST MANAGEMENT OPTIONS: Improved spray program only. Generally not capable of supporting
biological control in any reliable way. Seriously threatened by neighbouring pest pressure.
2. Improved greenhouses – Med tech:
Characteristics: Improved height and pest exclusion, possibly hydro/heat/some automation.
PEST MANAGEMENT OPTIONS: Improved spray program, pest exclusion and possibly biological
control if have good pest exclusion, a thorough insect crop scouting program, and careful use of ‘soft’
chemicals. Mild to moderate threat from neighbouring pest pressure.
3. Fully modernised greenhouses – High Tech:
Characteristics: Greatly increased height, pest exclusion, hydro, climate system, integrated
automated systems.
PEST MANAGEMENT OPTIONS: Improved spray program, pest exclusion and good chance of
implementing biological control if have good pest exclusion, a thorough insect crop scouting program,
careful use of ‘soft’ chemicals and automated year round climate control. Mild to moderate threat from
neighbouring pest pressure.
The Current Reality
Information and training resources and delivery are poor
Development of a national
training framework has
commenced.
The IDO’s have established
a national network of
communication and
strategic relationships.
Not enough commercially
independent experts to
meet industry needs.
There is no template for
‘best practice’ production
linked to information and
training.
There is no central
information bank to
resource training.
EXISTING ASSETS
AHGA
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‘Pathways to production’, a skilling initiative of the Australian
protected cropping industry (VG0509)
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International study tours
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AHGA conferencing program
IDO Network
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Identifies issues and needs for action via state or national funding
bodies
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Assists in organising meetings, workshops, field days etc.
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Provides targeted information output on research outcomes
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Organises periodic overseas investigative tours
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Networks growers, researchers and industry
ROOM FOR IMPROVEMENT
Much of the standards, resources and learning pathways are yet to be
developed that can underpin a national training program and build the
industry’s required skills base.
This will need to include incentives and career pathways to make it an
industry of choice.
The Current Reality
Integrated Pest Management - National Strategy
A recent national IPM
Stocktake has kicked off a
National IPM Strategic
Plan for 10 minor crops.
A range of (18) projects
have been newly
funded/maintained to
meet strategic priorities.
Development of a
national IPM information
hub is due to be
commissioned shortly.
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A national IPM stocktake has identified critical gaps in 10
to 13 minor crops and and captured the transferable
outcomes from over almost 40 veg R&D reports to date.
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The stocktake also profiled the current state of play of IPM
adoption, and adoption barriers and promoters in 15
vegetable crops and a range of non-veg commodities.
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This information has been used to identify priorities
resulting in support for 18 new and ongoing IPM projects.
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Information from the stocktake has been collated for a
national IPM information hub and future extension efforts.
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Other concepts for promoting IPM adoption are being
assessed for funding as scoping studies/pilot projects - e.g.
the role of commercial consultants.
The Current Reality
Chemical Summary
Systematic identification
of minor use issues and
gaps for control of pests
and diseases
Filling gaps with
appropriate chemicals
preferentially with an IPM
fit.
Minor use strategy:
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Aims Improved relevance to identified
needs ,efficiency (time and $$), with a
focus on IPM)
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Industry wide consultation
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International input to fast track ‘best bets’
including overseas best practice data
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Streamlined, simplified approval process
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Ongoing review to keep gaps covered and
progress toward new chemistries
The Current Reality
Industry lacks a framework of national standards
There is no mandatory
code of conduct and
standards for the whole of
the supply chain.
There is no mandatory whole of industry code of
conduct or policing of standards to maintain
product integrity, safety and trading fairness,
including:
• trading practices (code of practice) to ensure a
fair return for investment,
• standardised, nationally consistent Q.A.
system,
• chemical testing standards to ensure consumer
safety, exclude poor practice and qualify for
recognised niche or overseas markets (c.f.
chemical free, organic, EUREPGAP) and
• national control of use legislation to put
growers on an even footing in all states
The Current Reality
Biosecurity
PHA are currently
developing a Vegetable
Industry Biosecurity Plan
based on shortlisting
known threats.
DAFF have consulted with
industry on communicating
biosecurity understanding
and vigilance to LOTE
growers.
Major planning and
implementation issues still
exist in terms of
controlling off-shore pest
threats, interstate trade
and on-farm practices.
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Consultations with researchers and industry
have shortlisted the key pest and disease
threats for a number of crops.
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DAFF have developed a report and
recommendations to assist communication with
growers from a Language Other Than English
background (title: ?)
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These recommendations need to be worked
into an implementation plan with resourcing of
expert facilitators in major growing areas.
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The strategy needs to produce effective
consistency from offshore to the farm.
The Current Reality
Vegetable industry relationship to natural resource and urban planning
The vegetable industry is
seen as an optional land
use without adequate
planning support.
This gives rise to conflicts
in land use (urban vs
farming) and to poor
access to critical
resources - water, gas,
power.
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Vegetable growing regions are progressively forced
to the margins of arable land, which is on the edge
of resource infrastructure.
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Price competition for land, and other land use
conflicts, tend to occur frequently with urban
dwellers (chemicals, odours, noise etc.).
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Access to water, gas and electricity is often
problematic and prohibitively expensive.
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These issues add considerably to industry’s
investment planning challenges.
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Councils and state governments tend to not be proactive in dealing with these planning issues.
Synthesis of the Current Reality
The Industry SWOT Analysis
Based upon the preceding review of the Current Reality, industry stakeholders developed the following summary of the
vegetable protected cropping industry - Strengths, Weaknesses, Opportunities and Threats.
Strengths
•Productivity
Weaknesses
•Readiness
•Sustainability
•Product
available all-year round
•Healthy, high quality product
•Lower ecological footprint
•Increased input efficiency e.g. water
•Reduced reliance on chemicals
•Wealthy demographic in domestic marketplace
•Growing demand
•Buffered from environmental conditions
for climate change
•Lack of support to upgrade technology
•Industry leadership
•Increasing compliance cost and red tape
•Lack of quality market and industry information
•Declining terms of trade (cost/price squeeze)
•Deficient or non existent training in new and emerging
technology available domestically
•Farm hygiene – behaviour of neighbours
•Access to water
•Supply & demand imbalance
•Available biological controls
Opportunities
•Promoting
to consumers product grown will small ecological
footprint, low food miles
•International supply chain alliances
•Strengthening supply chain relationships
•New crops and varieties
•Increasing employment
•New technology developed domestically and internationally
•Raising of a tomato levy
Threats
•Imports
•Bio-security
breach – pest and disease outbreaks
•Increasing input costs e.g. fuel
•Shortage of labour
•Water use - restrictions and costs
•Declining government support
•Threats to access to chemicals and fertiliser (security)
The Structure of the Plan
Linking the Vision to Outcomes
The 2006-2011 Strategic Plan recognises the need to move from Vision to Action by utilising the following
planning structure to highlight the linkages between elements of the Strategic Plan:
Vision, Mission & Objectives
The Industry’s primary focus
Strategic Imperatives
The key actions that industry must take to achieve the Vision
Strategies
Broad strategic directions for achieving the Imperatives
Strategic Goals
High level goals and actions for delivering the Strategies
Project Action Plans
The Project Plans required to deliver elements of the Strategic Plan – These Project Plans will be the specific
responsibility of industry organisations and stakeholders – The protective cropping advisory group, Vegetable
IAC, AHGA, AusVeg, HAL, etc. The details of these Project Plans will not form part of the Strategic Plan.
The Vegetable Protected Cropping Industry Future
Our Vision for 2015
“By 2015, the Australian protected cropping industry is recognised as a supplier of premium quality
vegetable products demanded by domestic and global consumers.
In achieving this, our target is to increase the value of vegetable production grown in a protected growing
environment to $1.8 billion annually while increasing consumption and industry profitability at all levels of the
value chain.
This will require a strong focus on consumer needs, value chain efficiency and collaboration at all levels.”
Our Mission
“In 2015 the Australian Protected Cropping Industry will be
organised and recognised for growing sustainably to world’s
best practice. Product will be sought by educated, aware
Our Objectives
The industry will achieve its mission by:
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Increasing consumption by developing informed,
health-conscious, committed consumers;
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Enhancing the existing culture of industry wide
participation through leadership with vision and
enthusiasm;
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Developing effective, efficient production and
processing value chains; and
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Generating targeted and reliable information to
facilitate quality decision making.
consumers through a supply chain of high integrity. Product
is coordinated within a market strategy delivering consistent
high returns to industry. The enabling strategies will be
owned by and benefit our diverse industry”.
The Way Forward
The Industry Strategic Imperatives
The Vision, Mission & Objectives of the 2015 vegetable protected cropping industry future will be achieved by
industry delivering on the following four Strategic Imperatives:
The Vision 2015
- Increase consumption - $1.8b value of production
- Increase scale
- Improve productivity
1. Grow the market for vegetable products grown using protected
cropping systems
2. Increase Industry Productivity
3. Strengthen Industry Information & Communication Networks
4. Identify & build industry leadership & capacity
Industry Strategic Imperatives
This Draft Plan is not complete
This DRAFT Plan is a “work 
in progress”. Detailed
Action Plans have not
been developed at this
stage.
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Regional workshops will be
conducted in South
Australia and NSW in
October 2006 in which
detailed strategies and
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action plans will be
developed.
As illustrated on the previous page,
industry stakeholders have developed 5
Strategic Imperatives essential to achieving
the Vision 2015.
At this stage of the Planning Process, the
detailed Strategies that underpin each
Strategic Imperative have not been
explored in a structured manner and the
strategies supplied are indicative of the
required elements for success.
Regional workshops will be conducted in
South Australia and NSW in October 2006
in which detailed strategies and action
plans will be developed. Other industry
participants will have the opportunity to
provide input via email or speaking directly
with Simon Drum or Tony Burfield.
Industry Strategic Imperatives
#1: Grow the market for vegetable products grown using
protected cropping systems
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4.
5.
Outcome: To expand domestic markets for vegetable
products grown using protected cropping systems
Strategies/Goals:
Communicate the beneficial attributes of vegetables to consumers
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Understand consumer perceptions of vegetables grown in a protected cropping environment
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Identify the health and nutritional benefits of vegetable consumption
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Develop and enhance vegetable products to meet consumer needs
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Continue to introduce new products aimed at exceeding consumer expectations
Implement uniform Quality Standards (Australia Gap)
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Establish agreed common systems and specifications for food service, retail and central
markets
Develop a promotional program for vegetable crops grown in a protected cropping
environment
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Promote our environmental credentials to government, community, consumers and industry
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Promote Australian Grown
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Promote unique taste and quality attributes
Minimise the impact of regulation on Industry Growth
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Maintain and expand Market Access for key export markets
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Develop Strategic Policy to minimise the impact of regulation on industry
Develop industry wide systems and strategies to match supply and demand
Industry Strategic Imperatives
#2: Increase Industry Productivity
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1.
2.
3.
Outcome: To build industry competitiveness throughout
the supply chain
Strategies/Goals:
Research, develop and encourage investment in technology
accelerators to improve industry productivity at all levels
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Continue to invest in the chemical minor use program
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Continue to invest in the development and enhancement of IPM tools and
strategies on a regional and national basis
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Encourage investment in new technologies to reduce cost and improve
efficiency throughout the supply chain
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Complete an Industry Benchmarking Study
Enhance environmental sustainability
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Improve water use efficiency, recycling, treatment and disposal systems
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Increase input efficiency
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Modify production systems to account for climate change
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Move toward fully enclosed production systems
Enhance relationships and engagement with domestic and
international supply chain partners
Industry Strategic Imperatives
#3: Strengthen Industry Information &
Communication Networks
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Outcomes: To disseminate reliable and targeted
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Strategies/Goals:
1.
2.
3.
information to industry through appropriate mechanisms,
networks and forums.
Generate and communicate reliable and targeted information for
members
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Develop an Industry Website with a “Members Only” Area
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Regularly survey industry to determine information needs
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Utilise improved Communications Technology to expand the range of
interaction with members
Encourage through-chain collaboration and communication
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Establish regular Forums for discussion of industry issues
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Involve all stakeholders in industry issues
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Continue to conduct an annual Industry Conference
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Co-host industry events with appropriate partners eg. AUSVEG
Enhance international alliances to ensure the Australian industry is
aware of and participants in global industry development
Industry Strategic Imperatives
#4: Identify and build industry
leadership and capacity
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Outcome: To enhance the human capital of the
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Strategies/Goals:
1.
2.
3.
4.
5.
vegetable protected cropping industry
Enhance industry’s agripolitical lobbying capacity
Encourage participation and leadership
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Establish a Young Leaders Program
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Fund participation in Leadership Development programs eg. Nuffield, ARLF
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Organise industry study tours to other regions & countries
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Develop mentoring programs to improve skills transfer
Enhance industry participants technical and business skills
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Determine Industry Training and Education needs
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Develop and/or source recognised training programs
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Commission industry skills training in conjunction with other Industries to
reduce costs and improve access
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Use technology accelerators to increase the reach of training programs
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Investigate the potential for a protected cropping training institute
Investigate labour sourcing opportunities
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Importing seasonal contract labour
Investigate the potential for a statutory levy on tomatoes
Feedback
We need your feedback on the Draft Plan
The Draft Plan will be revised based on
your comments and the input from
participants at the regional planning
workshops to be held in October 2006.
How can I give you my comments?
You can email your comments to
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This is an industry plan
and we need your
feedback on its relevance
to you and your business.
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[email protected] or fax
them to 08 8303 9542
The Draft Plan will be
revised based on industry
comments and feedback.
IMPORTANT
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WE NEED YOUR FEEDBACK BY 14 OCTOBER,
2006