Apple & Pear Industry
Research, Development & Extension
Investment Plan
2010-2015
“Innovation making a difference”
Prepared by DR Research & Consulting
October 2010
Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
Apple and Pear Industry RD& E Investment Plan 2010-2015 – “Innovation making a difference”
The information contained in this publication is intended for general use to assist public knowledge and
discussion and to help improve the development of the apple and pear industry across Australia. You
must not rely on any information contained in this publication without taking specialist advice relevant
to your particular circumstances.
Whilst reasonable care has been taken in preparing this publication to ensure that information is true
and correct the Australian Apple & Pear Limited (APAL), Horticulture Australia Limited (HAL) and the
Commonwealth of Australia give no assurance as to the accuracy of any information in this publication.
APAL, HAL and the Commonwealth of Australia, the authors or contributors expressly disclaim, to the
maximum extent permitted by law, all responsibility and liability to any person, arising directly or
indirectly from any act or omission, or for any consequences of any such act or omission, made in
reliance on the contents of this publication, whether or not caused by any negligence on the part of
APAL, HAL and the Commonwealth of Australia, the authors or contributors.
The Commonwealth of Australia does not necessarily endorse the views in this publication.
This publication is copyright. Apart from any use as permitted under the Copyright Act 1968, all other
rights are reserved. However, wide dissemination is encouraged. Requests and inquiries concerning
reproduction and rights should be addressed to the HAL Publications Manager (+61 2 8295 2300).
The Apple and Pear Industry Advisory Committee (IAC), APAL & HAL acknowledge the work of
Dennis Richards (DR Research & Consulting) in leading the development of this plan. Also the
valuable contributions of those people contacted (and cited in the plan) and the IAC’s R&D SubCommittee are acknowledged.
Electronically published in September 2010
by APAL http://www.apal.org.au/research-iac-research-priorities.cfm
and HAL http://www.horticulture.com.au/industries/Apple_and_Pear/default.asp?src=side
Contact Details:
Brad Mills
Horticulture Australia Limited
Level 7, 179 Elizabeth Street, Sydney
New South Wales 2000 Australia
T: +61 3 9909 7542; M: 0408 635 465
E: bradley.mills@horticulture.com.au
Tony Russell
Apple and Pear Australia Limited
39 O'Connell St, North Melbourne,
Victoria 3051 Australia
T: + 61 3 9329 3511
E: gm@apal.org.au
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
Foreword
The Australian apple and pear industry, with an estimated gross value of production of $450 million, is
the 3rd largest horticulture industry (after grapes & citrus). In world terms, however, the 2008 yield of
265,400 tonnes of apples represented just 0.8% of world production; and for pears 127,800 tonnes
represented only 1.4% of world production.
Following an extensive consultation and data-gathering process a new strategic plan for the Australian
apple and pear industry -New Horizons 2015- has recently been developed, endorsed and adopted.
That plan highlighted the urgency for industry to accelerate change, respond to domestic and export
market challenges and to improve industry communication and capability.
The present RD&E Investment Plan is devised in response to New Horizons 2015 and is more
comprehensive than previous plans – in many ways a step-change to past approaches. Firstly, it is
not an annual plan as before but embraces a period of five years (2010-2015). Secondly, it is much
more strategic in nature encompassing seven RD&E programs identified as key investment areas.
Thirdly, the portfolio has been devised to encompass much larger, better resourced and better
integrated projects that are more tightly managed and monitored.
Overall the Plan outlines the RD&E outcomes that are required to meet the industry’s vision for 2015,
namely: “The Australian apple and pear industry is world competitive; satisfying consumer demand for
its products and with sustained profitability”.
In developing this Plan it is acknowledged that the partnership between the Australian Government,
Horticulture Australia Limited, the Apple & Pear Industry (represented by Apple & Pear Australia
Limited), research providers and co-investors is the essential component bringing together resources,
expertise and a shared vision. The Plan provides guidance to existing and potential research
providers and co-investors on our priorities and mechanisms to engage with the apple and pear
industry.
The successful implementation of this plan requires a shared commitment in partnership to actively
face and address the major challenges that lie ahead.
Bob Granger
Chairman
Industry Advisory Committee
Tony Russell
General Manager
Apple & Pear Australia Ltd
October 2010
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
Table of Contents
1. Executive Summary ..................................................................................... 5
1.1 Setting the scene ...............................................................................................................5
1.2 Planning issues .................................................................................................................6
1.3 RD&E plan highlights .........................................................................................................6
1.4 Budgets and risks ............................................................................................................12
1.5 Overall performance ........................................................................................................12
2. The Australian Apple and Pear Industry - an Overview ............................. 13
2.1 Structure and production .................................................................................................13
2.2 Sales and markets - a domestic focus .............................................................................14
2.3 Trends, challenges and drivers ........................................................................................14
3. Apple and Pear Industry Strategic Plan - New Horizons 2015 ................... 16
3.1 Developing the plan .........................................................................................................16
3.3 Strategic plan highlights...................................................................................................16
3.3 Strategic plan details concerning RD&E ..........................................................................18
4. Key Stakeholders, their Strategic Plans & Co-investment ......................... 19
4.1 Partners’ strategic plans & objectives ..............................................................................19
4.2 Overview of funding and priority setting ...........................................................................22
5. The Development of the RD&E Investment Plan – Principles, Process &
Priorities ......................................................................................................... 25
5.1 Why a five-year RD&E plan? ...........................................................................................25
5.2 Guiding principles and issues ..........................................................................................25
5.3 RD&E planning process...................................................................................................26
5.4 Re-defining priority areas.................................................................................................27
5.5 Overall performance ........................................................................................................28
6. The RD&E Portfolio – Priority Investment Areas ........................................ 29
6.1 Productivity & Supply Chain ............................................................................................29
6.2 Climate Change ...............................................................................................................33
6.3 Germplasm Improvement ................................................................................................35
6.4 Market Access and Biosecurity ........................................................................................40
6.5 Market Research .............................................................................................................42
6.6 Industry Development ......................................................................................................45
6.7 Portfolio Management......................................................................................................51
7. Indicative Budgets and Risks ..................................................................... 53
7.1 Indicative budget and allocation targets...........................................................................53
7.2 On-going budgets ............................................................................................................55
7.3 Potential risks ..................................................................................................................55
8. References................................................................................................. 57
8.1 Acronyms & abbreviations ...............................................................................................57
8.2 Key documents ................................................................................................................58
8.3 Key contacts ....................................................................................................................58
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
1. Executive Summary
1.1 Setting the scene
In March 2010, Apple & Pear Australia Limited (APAL) endorsed the apple and pear industry strategic
plan called New Horizons 2015.
In developing the plan it was acknowledged that the Australian apple and pear industry is facing
challenging times (see Section 2). The challenges, which are broadly-based across the production,
supply and marketing chain, include the need to increase productivity to world-class levels, raise
domestic consumption against competition (from other fruit products and from the imminent likelihood
of foreign imports) and develop an export focus from a low and declining base.
The outline of the New Horizons 2015 plan to meet these challenges is summarised in Section 3
(FIGURE 1 shows diagrammatically the strategic plan on one page). The following three priority
objectives, targets and approaches have been set:
1. stimulate domestic demand by 5 per cent through product quality and innovation by improving
quality, increasing sustainable productivity and a transition to novel varieties
2. expand apple and pear export markets to 10 per cent of marketable product by 2015 by
identifying overseas opportunities, making the right commercial liaisons and addressing market
access issues
3. ensure industry has the resources and capability to achieve its primary objectives by improved
motivation, communication and knowledge transfer to individual growers and the consequent
development of leadership and skills competency
The business and operational activities of the apple and pear industry do not occur in isolation. It is
recognised that substantial change can only occur with effective communication and collaboration with
other parties such as industry associations, governments, growers and supply chain businesses, all
acting collectively. In particular, RD&E, perhaps more than in any other activity, requires close
collaboration and co-investment to be effective. Section 4 addresses the motivation and strategic
directions of the key agencies that will continue to be funding partners and providers delivering RD&E
outcomes. The key agencies are:
Horticulture Australia Limited (HAL)
Australian Government
government research providers from around Australia (collectively termed the National
Horticultural Research Network, NHRN)
private sector & international research providers
Each of these major partners in the apple and pear RD&E portfolio has a commitment and role to
invest in, sponsor or conduct research. A prerequisite for co-investment is a shared vision between
collaborators. Therefore, when constructing the RD&E portfolio and its individual projects, the
strategic objectives of all contributing parties must be addressed.
Of particular note in formulating the present RD&E plan, is the development of a national framework
describing how NHRN intend to engage with APAL and HAL in negotiating and delivering RD&E
services. It has been estimated that the overall co-investment of NHRN alongside (but not matched
with) other funds represents in the order of 44% of total annual apple and pear RD&E spend. Under
the new delivery framework NHRN has determined that the Department of Primary Industries Victoria
will function as the formal point of contact with the apple and pear industry/APAL. The role, when fully
operational, would include one of leadership and coordination across the entire network of RD&E
provider agencies.
A key trend in the recent development of the apple and pear RD&E portfolio is the partnership of
various international research providers; notably the New Zealand–based Plant & Food Research
(PFR) who are major providers and voluntary contributors in two large projects. It is anticipated that
the co-investment model of matching industry levies and/or voluntary contributions from other parties
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
with Australian Government funds, alongside non-matched NHRN funds, will continue to be the
primary funding mechanism (see FIGURE 2, Section 4 for details).
1.2 Planning issues
In the past the R&D priorities for the apple and pear industry have been formulated and presented on a
yearly basis. This approach has tended to reinforce a pragmatic decision-making approach, rather
than a long-term, staged analysis to determine where investment is needed. In addition, short-term
plans do not capture the changing trends and refocussing of partners’ and other stakeholders’ longerterm visions. Therefore, this present plan spans the five-year period 2010 to 2015. In addition, this
plan is much more focused on industry development and extension activities as a driver of change;
thus RD&E not R&D.
Analysis of past approaches in managing the RD&E portfolio has led to the identification of some
guiding principles to help in the development and implementation of this five-year plan (Section 5).
Broadly, these principles include:
the need for larger, integrated and pre-scoped projects allowing significant savings of resources
and management time and appropriate planning with potential partners
broad agreement and effective engagement with stakeholders including the NHRN
restructuring the portfolio around priority investment areas aligned to New Horizons 2015
on-going assessment of performance and quality of individual projects, priority investment areas
and of the RD&E plan itself
clarity of engagement through details set out in the plan, providing a “road-map” to potential
partners/co-investors and emphasising the need to demonstrate benefits to industry
In undertaking the development of this new plan (see FIGURE 3, Section 5.3) three main sources of
information, both from industry and partner agency sources, were analysed. They were: the past and
current project portfolio; key strategic documents; and information derived from discussion with key
contacts (see Section 8 for details). When compared with the objectives of New Horizons 2015, gaps
and opportunities were identified. This analysis has resulted in the identification of several new or ongoing large projects formulated into seven new priority investment areas: Productivity & Supply Chain
Climate Change; Germplasm Improvement; Market Access & Biosecurity; Market Research; Industry
Development; and Portfolio Management.
1.3 RD&E plan highlights
1.3.1 Productivity & Supply Chain (see Section 6.1)
In the past RD&E projects addressing productivity and supply chain issues have been undertaken as
discrete units of study based on topics such as: agronomy, pest and diseases, post harvest , fruit
quality etc. There is a compelling need to take an integrated systems approach when tackling RD&E
in this area.
The whole-of-chain viewpoint is a major feature of New Horizons 2015 and the strategy for on-going
RD&E in this area is to undertake an integrated systems approach in two broad areas.
Productivity, Irrigation, Pests & Soils (PIPS)
PIPS is a flagship project for the apple and pear industry. It has been able to successfully integrate
RD&E effort both nationally and internationally, involving PFR, New Zealand researchers and project
leaders. This amalgamation of expertise allows a multi-disciplinary approach to tackle the interacting
factors associated with sustainable crop production.
For the period 2010-2015 it is envisaged that all on-going activities and any new initiatives concerning
“orchard productivity” will be embedded in the PIPS program. It should be noted that PIPS is also the
preferred project to embed all future work on pests & diseases.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
At its onset in 2009, a number of missed and future opportunities were highlighted to be folded into the
program. The activities planned to be brought on stream during 2010/15 include:
consolidating regional activities (including Queensland, Western Australia) and introducing new
germplasm ( both apples and pears)
an additional focus on powdery mildew
inclusion of soil carbon amendment studies and fertigation
Sustainable Supply Chain Analysis
It is proposed to develop a multi-disciplinary RD&E project tentatively entitled “Tree to Table:
Sustainable Supply Chain Analysis for Apples and Pears” (TTT) incorporating Value Chain Analysis
and Life Cycle Analysis approaches. In addition, the project will utilise information and expertise
already assembled in the projects on fruit quality and retail/consumer relationships presently underway
or recently completed. TTT will be broad-reaching and augmented by other activities in tandem with
the VCA theme.
The project will be commissioned by a call for “expressions-of-interest”. Under the auspices of HAL,
the initial stage will be to devise and scope TTT with key participants to ensure that direct benefits to
growers and the apple and pear industry at large.
It is envisaged that the process of project development will itself be a substantial activity requiring
significant time and resources from potential partners and co-investors. However, ongoing activities
from this large program are expected to generate a key understanding of the supply chain and help
identify critical priorities for future RD&E investment.
Key performance indicators by 2015
The PIPS program has met all of its milestones, gained a high industry profile and has been recontracted following a positive review
The TTT project has been commissioned and the majority of identified issues (see Section 6.1.3
for details) have been incorporated into, or addressed outside, the program
1.3.2 Climate Change (see Section 6.2)
Using the previously completed HAL and across-industry activities, and the “first steps desktop study”
as a framework, it is proposed that on-going RD&E in this priority area will be enhanced and
consolidated into a single project entitled “Responding to Climate Change; Beyond 2010” led by a
dedicated project manager.
In formulating this consolidated program, the RD&E Sub-Committee and APAL will need to actively
engage with the NHRN. In addition, the basic structure of a DAFF-sponsored Farmready project will
be assimilated into a broader program.
The issue of carbon footprints (and water footprints) will be addressed as a component of the “Tree to
Table: Sustainable Supply Chain Analysis for Apples and Pears” project utilising a Life Cycle Analysis
approach. A study of carbon amendments into orchard soil, potentially utilising biochar and brown coal,
is to be undertaken as a component of the PIPS project.
Key performance indicators by 2015
The majority of targeted growers (>75%) in all regional apple and pear growing districts have a
good understanding of the likely impact of climate change on their production systems
Following a targeted survey, the apple and pear industry is viewed by Government and the
community as proactive in exploring and addressing climate change issues
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
1.3.3 Germplasm Improvement (see Section 6.3)
The apple and pear industry has been, and will continue to be, a substantial investor in variety and
rootstock improvement. The strategy taken by industry is to become a comprehensive player along
the entire “development pipeline” and be actively involved in creating, facilitating and adopting new
varieties.
There are some very important issues to address in the on-going investment by the apple and pear
industry in this germplasm improvement investment area. A major issue is that a number of projects
undertaken by State Government agencies will not be on-going and industry must play a more active
role in any continuing activities to retain and evaluate potential germplasm. Further, there is potential
to integrate the apple and pear programs so that variety and rootstock development and field testing
can be better co-ordinated and more efficiently planned. Finally, where the interests of the Australian
apple and pear industry are implicated commercially-aligned participants are encouraged, where
possible, to plan together.
The strategic requirement in the investment area of germplasm improvement is to better integrate
activities into a coordinated apple and pear industry program. This will help provide critical mass and
resources and impart strong commercial direction with improved decision-making. An ideal structure
would involve a coordinated program overseen by a management team, formulated by representatives
of the key stakeholder partners, and utilising a dedicated program manager to ensure the quality,
coordination and delivery of agreed milestones.
The specific activities that need to be quickly resolved and/or rejuvenated include breeding activities
(e.g. pear breeding in Victoria and apple breeding in Western Australia) and the on-going access and
evaluation of germplasm (e.g. pears from Victoria, apple rootstocks from New South Wales and apple
varieties from Queensland).
The role and integration of activities involved in the PrevarTM project, the Coregeo Australia project and
the on-going APFIP project need to be actively considered in any overhaul or restructuring of the
germplasm improvement priority area.
An interim activity is to establish a small implementation working group to analyse the scale, scope
and best possible way of staging any integration of activities. This working group would deliver a plan
agreed by all relevant stakeholders for implementation in November 2010 so as to coincide with the
main funding cycle.
Key performance indicators by 2015
Pear breeding is an active part of the program
The fate of promising germplasm from previously supported breeding and selection programs
undertaken by various State providers has been successfully negotiated
The majority of targeted growers (>75%) are satisfied with the approach and the level of
investment into germplasm improvement
The level of investment and leverage is delivering the targeted outcome of introducing new
varieties for industry-wide use
1.3.4 Market Access and Biosecurity (see Section 6.4)
The interaction and co-funding between industry, HAL, government and the RD&E community in the
area of market access is notoriously complex and difficult to negotiate. Moreover, there are inevitable
funding shortfalls that have a major impact on the maintenance of the appropriate skill base and
infrastructure which frequently results in the need to refocus priorities.
Recent structural changes have occurred in an attempt to streamline the process of addressing market
access issues with the creation of the Office of Horticultural Market Access (OHMA) by HAL in
September 2009. Amongst other things, OHMA will coordinate a whole-of-industry research program
based on “The Horticulture Market Access R&D Strategic Plan (2009-2014)”. The apple and pear
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
industry have an on-going generic investment in this broad-based program as a co-contributor.
Importantly, it is OHMA that selects the individual projects that are undertaken at any given time,
based on their adjudged priority. Specific issues likely to be of benefit to the apple and pear industry in
the above program include: area wide management systems for Light Brown Apple Moth; cold
disinfestation of fruit fly; data packages for cold tolerance of tropical fruit flies; replacement strategies
for dimethoate and fenthion; and the preparation of a joint submission to Food Standards Australia &
New Zealand (FSANZ) for approval to utilise irradiation as a phytosanitary measure.
Single-industry market access and biosecurity RD&E projects are not considered within the scope of
the above market access plan. Rather they are considered separately on a needs basis by industry
and HAL. Such projects may include those that are more oriented to specific growing regions/districts
or to on-farm practices and may involve agencies such as Plant Health Australia (PHA) or the
Cooperative Research Centre for National Plant Biosecurity (CRCNPA).
Currently APAL has commissioned a review by an independent technical advisor working in concert
with OHMA to guide the future investment and priorities for the apple and pear industry in market
access RD&E over the period 2010-2015. In addition, the review will help identify that part of the
investment which is best served by an across-industry approach and that which is best undertaken
directly as industry-specific projects.
Activities relating to on-farm biosecurity and risk management will increasingly be addressed as part of
the industry development portfolio in an extension capacity (see Section 6.6.3). However, where more
regionally-based biosecurity measures are concerned, it is anticipated that the development of risk
management tools and training activities will be on-going throughout the five year life of this plan.
Key performance indicators by 2015
The apple and pear industry’s contribution to the across-industry program has been invested into
priority areas and the RD&E is operational
Specific apple and pear industry projects have been identified and a planned program of
investment is underway
Application of RD&E outputs has helped gain access to additional export markets
1.3.5 Market Research (see Section 6.5)
The challenges, objectives and action plans identified in New Horizons 2015 that address market
research are numerous and specific. Clearly, there is a need to undertake a series of activities related
to market research in both a domestic and an export setting.
New strategies and specific projects in these areas are being developed and co-ordinated separately
(from this RD&E plan) through the Domestic Marketing Operational Plan and the Export Marketing
Operational Plan.
However, the preferred approach is to undertake consumer market research activities in the context of
supply chain studies; not in isolation. Consequently, in this RD&E plan, there is a proposal to embed
some consumer research and the prospect of pilot-testing an “Aussie Apple” brand into the project
tentatively entitled: “Tree to Table: Sustainable Supply Chain Analysis for Apples and Pears” (Section
6.1.3).
Key performance indicators by 2015
Through the implementation of the domestic market plan the key requirement and concerns of
consumers have been identified
Consumer issues are being actively addressed in the relevant components and projects
embedded within the RD&E plan
Export market analysis has helped identify and prioritise discrete RD&E projects or approaches
to be undertaken in existing projects
RD&E outputs have assisted the Export Marketing Operational Plan achieve its objectives
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
1.3.6 Industry Development (see Section 6.6)
Industry development has been defined by HAL as “the process of informing and empowering those in
horticulture to make better business decisions”. APAL has recently undertaken a comprehensive
consultant-led study entitled “Apple and pear industry development needs analysis”. Overall, the study
set a challenge for the apple and pear industry to better focus, integrate and re-invigorate efforts and
processes in the area of industry development. Taking the above study into account, the new strategic
approach during 2010-2015 will involve a number of complementary priorities.
New Extension Network
There is an urgent need to integrate activities across the different States and the various industry
associations into a single network; all aligned to achieve the overall objectives of New Horizons 2015.
This will involve three broad approaches, operating in parallel and under the auspices of a newlyconstituted National Coordination Panel. The approaches involve: reconstituting existing extension
projects and personnel; an engagement with private advisors; and the development of extension
packages that are integrated into the overall RD&E portfolio.
People and Leadership Development
It is proposed to enhance people skills and leadership capacity by formulating a high profile project to
encourage and support the participation of keen individuals. The proposal, led by APAL, will develop a
three-tiered approach and, at each level, involve both an industry practitioner (selected from growers,
supply chain operatives etc) and a RD&E practitioner (selected from science, technology, extension
etc) as a pairing.
Future Orchards - Beyond 2012
The on-going strategy following a review of “Future Orchards 2012” is to upgrade, reformulate and
relaunch the program as “Future Orchards - Beyond 2012” in late 2010. Any modifications or
additions to the program will be formulated by the project management team and will ensure that the
project remains high-profile and highly relevant to growers.
National Conference
Beginning in 2012 the strategy will be to invest in only one national conference held every two years.
This event will focus on key elements of New Horizons 2015. It will provide the forum for addressing
progress towards meeting the key objectives of industry’s strategic plans and embrace detailed
reporting to industry in specific RD&E projects by key personnel. In addition, to complement the
program the conference will present influential key note speakers from around the world and be a
forum for individuals in the people and leadership development program to deliver their viewpoint.
It is anticipated that this national conference will be undertaken in partnership with a variety of other
bodies where appropriate (e.g. AFFCO, State industry associations, and others). Participating groups
will be able to secure their own dedicated sessions or “break-out” groups as needed.
Industry Data and Analysis
It is timely to restructure gathering, analysing and communicating data and information along the
supply chain into a much more integrated, streamlined and effective program.
The strategy for the 2010-2015 period is to consolidate this work under the leadership of APAL staff
into a single “Apple and pear industry Data and Analysis Program” (IDAP) that itself interacts with
parallel programs under investigation in the domestic market and export market programs.
IDAP will bring diverse data sets together with appropriate analysis so as to provide information to
individual growers on the one hand, and broad-spectrum users on the other, tailored to their different
needs.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
Industry Communications
The majority of apple and pear growers perceive the overall quality of APAL communications as “good”
(Ipsos Australia, grower survey 2008). However, there are mixed reactions to the usefulness, quality
and extent of the different communication methods utilised between APAL, the RD&E program and the
industry at large. Projects such as “Future Orchards 2010” with dedicated built-in grower contact are
receiving strong feedback with regard to the level of communications. The traditional methods of
general information flow via magazines, articles and now the APAL web-site have variable support.
The web-site in particular appears to have a very low profile with most growers even though growerdirected articles and information can be readily accessed from that site.
The Communications Strategy 2010/2015 (that is under parallel development to this RD&E plan) will
refresh the approach to industry communications beginning with an immediate independent survey of
growers throughout the industry. The intent of the survey is to assess the grower needs and
satisfaction with the provision of industry services. Results from this analysis will then be used to
adapt the channels and content of industry communications to fulfil expectations.
Key performance indicators by 2015
The majority (>75%) of targeted apple and pear growers should rate all industry development
activities highly and positively when their feedback is sought or reviewed
An extension network should be active and broadly utilised
Future Orchards should have a comprehensive plan of its on-going role and of the next
generation of activities and be undertaken with a high level of grower support and interaction
IDAP will be the mainstay of the apple and pear industry’s information sources and statistics
1.3.7 Portfolio Management (see Section 6.7)
The role of RD&E in New Horizons 2015 is considered critical in enabling industry to meet its existing
and emerging challenges. In response, it is timely to re-analyse the approach taken to formulate and
operate the apple and pear RD&E portfolio.
The principles and issues considered in re-focussing the RD&E program have been outlined in Section
5; broadly speaking they highlight the need for a more dynamic and comprehensive approach to
managing the portfolio. The activities involved in the on-going management and formulation of the
RD&E plan, like the projects within the portfolio themselves, need to be better integrated and more
strategic.
The following activities, managed by the RD&E Sub-Committee, will be brought together in an
integrated way: evaluation of project submissions; dedicated monitoring of individual projects;
exploring and analysing partnering opportunities; pro-actively interacting with RD&E co-investors;
program and project evaluation; and on-going priority setting.
Integration of these activities into a single project represents a step-change in the operations of the
program and will require a significant additional body of work and commitment.
Key performance indicators by 2015
The operational aspects of planning, implementation and evaluation of the RD&E portfolio will be
regarded as highly professional and understood by surveyed stakeholders
A suite of new projects will have been commissioned or developed under the guidelines and
approaches outlined in this plan
The evaluation of performance of the overall RD&E plan will have been critically reviewed with a
positive outcome; performance indicators for each investment priority area will be assessed in
this review process
A new five year RD&E plan will be developed and approved based on the present plan and
accommodating the review findings
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
1.4 Budgets and risks
The opening budget for 2010/11 is in the order of $6.4m as matched funds; equally divided between
levy funds and voluntary contributions (Section 7). By far the biggest allocations are in the priority
areas of Productivity & Supply Chain (representing 28% of the overall budget) and Germplasm
Improvement (representing 37%). These high levels, in both cases, are largely due to the significantly
high investment (as voluntary contributions) by New Zealand’s PFR in the new PIPS project (see
Section 6.1) and the recent extension of the PrevarTM project (see Section 6.3).
A key feature of the starting budget is the high level of unallocated funds ($0.94m). These funds have
been deliberately kept aside to await the development of this RD&E plan in order to better guide the
on-going investment.
In the 2011/12 financial year it is anticipated that the overall available funds will increase to $6.8m due
to a targeted increase in voluntary contributions despite a small reduction in levy funds.
Investment is targeted to increase in the following areas:
Productivity & Supply Chain area largely by expanding the PIPS project and by staging the
introduction of a new supply chain study (see Section 6.1.3)
Climate Change with the onset of a new integrated project (Section 6.2.3)
Industry Development with a re-alignment and integration of industry development activities and
the re-launch the Future Orchards Beyond 2012 (Section 6.6.3)
Portfolio Management by investment in the strategic analysis of a number of new projects areas
(Section 6.7.3).
The large allocation into Germplasm Improvement will remain at about the same level as the previous
year but a proportion of levy funds will be needed to accommodate transitional changes (Section
6.3.3).
The allocation of levy funds invested in Market Access & Biosecurity (Section 6.4.3) and Market
Research (Section 6.5.3) is the same as the previous year.
The on-going allocation in subsequent years beyond 2012 is anticipated to remain in similar
proportions to that in 2011/12.
There are some significant risks associated with the five-year deployment of this RD&E Investment
Plan (Section 7.2). A reduction in the grower levy due to reduced domestic sales as a result of import
competition is a real possibility. In addition, a current review by the Productivity Commission is,
amongst other things, investigating the matching fund model and may lead to a change in Government
funding policy.
Other more general risks relate to the uncertain profitability of undertaking significant export activity
and the high cost and impact of extreme heat events, prolonged drought and the consequent price and
availability of irrigation water.
1.5 Overall performance
The overall performance of this plan after the five year period will have been deemed successful if the
following elements have all been achieved:
The individual RD& E projects have overwhelmingly achieved their objectives and produced their
contracted outputs
Where appropriate the RD&E outputs have been transferred to, and utilised by, growers to
improve their individual businesses; and
The majority of targeted growers (>75%) agree that over the five year period resources were
invested appropriately into effective RD&E
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
2. The Australian Apple and Pear Industry - an
Overview
2.1 Structure and production
The Australian apple and pear industry, with an estimated gross value of production of $450 million, is
the 3rd largest horticulture industry (after grapes & citrus). In world terms, however, the 2008 yield of
265,400 tonnes of apples represented just 0.8% of world production; and for pears 127,800 tonnes
represented only 1.4% of world production.
The deployment of the major apple and pear growing areas and their production (in descending order)
are shown in the TABLE 1 (Source APAL). Notably, Victoria is by far the biggest producer; followed
next by four States each producing around 10% of the total crop (namely, New South Wales, Western
Australia, Queensland and Tasmania).
TABLE 1 - Australian and regional apple and pear production in 2008
State
Main Growing
Apple (t)
Pear (t)
Region
(% total)
(% total) (% total)
Victoria
Goulburn Valley & Southern
New South Wales
Orange & Batlow
Western Australia
Donnybrook & Manjimup
Queensland
Stanthorpe
Tasmania
Huon Valley
South Australia
Adelaide Hills
TOTAL
104,000
(39%)
44,900
(17%)
31,500
(12%)
35,500
(13%)
30,200
(11%)
19,300
(7%)
265,400
113,300
(89%)
550
(0.4%)
7,420
(6%)
650
(0.5%)
960
(0.8%)
4,940
(4%)
127,760
Both (t)
217,300
(55%)
45,450
(12%)
38,920
(10%)
36,150
(9%)
31,160
(8%)
24,140
(6%)
393,200
Productivity of Australian apple and pear orchards is not highly competitive in international terms.
Australian apple orchard productivity of 15t/Ha lags well behind the world’s best such as New Zealand
at 55t/Ha and Italy at 35t/Ha (World Apple Review, 2009). Australian pear orchard productivity of
25t/Ha also lags well behind the world’s better producers such as Chile at 44t/Ha and The Netherlands
at 36t/Ha (World Pear Review, 2009).
Across Australia some 1100 businesses are involved in growing apples and
pears. These growers are represented by Apple & Pear Australia Limited
(APAL); their peak industry body. In addition, six State associations are
members of APAL and play an active role in organization and issue
management at the local and State levels. The Australian Fresh Fruit
Company (AFFCO) is another important industry organization providing
information and development services to a national network of growers.
Australian apple and
pear yields lag behind
world leaders…..APAL
APAL works closely with Horticulture Australia Limited (HAL), which is responsible for the investment
of industry, levies for Research, Development & Extension (RD&E) and marketing (see Section 4.1.1
for details of HAL).
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
2.2 Sales and markets - a domestic focus
The apple and pear industry in Australia, unlike in many other producing countries, has a very strong
domestic focus, low exports and minimal import competition.
2.2.1 Apples
Apples are among Australian consumers’ top three favourite fruits with an average of 78% of
respondents to a regular industry survey having purchased apples in the past month. According to
HAL, domestic consumption of fresh apples in 2007 stood at approximately 9kg per person per annum.
Major supermarkets and independent retailers are the main points of purchase for consumers of
apples and pears, with food service businesses accounting for a much smaller component of supply.
In 2008 it was estimated that about 13% of the apple crop was used as concentrated apple juice, fresh
apple juice or pie apple. Import competition is an important factor in the juice market; resulting in low
prices attained by growers for fruit that is only suitable for processing. In 2008 only 1.3% of the fresh
apple crop was exported overseas. No apple imports occur at present.
2.2.2 Pears
Unlike apples, pears do not occupy a position as a staple fresh fruit for Australian consumers;
approximately 40% is sold fresh and the rest is destined for processing (canning).
The pear industry is subject to import competition from China, although the level of imports remains
low. The industry was exporting approximately 4% of its pear production in 2008.
2.3 Trends, challenges and drivers
The Australian apple and pear industry is facing challenging times. While the industry is mature,
relatively large in domestic terms and occupies established positions in domestic markets for fresh
fruit, the continuation of this situation is under threat.
2.3.1 Influencing consumer demand
Comparison of fruit consumption per capita across the different countries of the world shows that
Australians are not ardent consumers of apples. A summary of the estimated consumption for 2007
compiled in the “World Apple Review- 2008 Edition” is shown in TABLE 2.
TABLE 2 – Estimated apple consumption per capita in various countries in 2007
Kg/head
Europe (11
major
countries)
United
Kingdom
16.7
10.1
New
Canada United
Zealand
States
14.6
12.6
7.5
Australia
Average
(32
countries)
7.4
10.3
Although it is acknowledged that these figures are estimates only (as it is difficult to access directly
comparable data sets and accurate statistics across different countries) world apple consumption has
been static for more than ten years and stimulating per capita consumption remains a global
challenge.
HAL and Australian Bureau of Statistics (ABS) data for 2007 show Australian per capita consumption
of apples at 9.99 kg/head and for pears 3.75 kg/head. Whatever the exact figures, it is clear from
TABLE 2 that Australian consumption is on average lower than in many other countries (notably half of
New Zealand’s in the above analysis) and below the average of all 32 countries studied.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
Maintaining and growing consumer demand is essential for a mature industry
that has a large, sunken investment. However, there is evidence that
accompanying the low consumption base in world terms, the Australian apple
consumer is not highly engaged and purchase is driven primarily by habit. In
addition, there is a widespread perception that fruit quality is variable. On the
supply side an emerging factor on the domestic apple market is oversupply.
Australian apple and
pear consumers are
disengaged and not
always satisfied…..HAL
Similarly, for pears, market evidence suggests that consumers are
disengaged; with the fruit often forgotten, seen as boring or simply unripe and too difficult to handle
and consume.
The challenge presented by competing fruits is also a serious factor. For example, the availability,
presentation and quality of Australian summer-fruits, cherries, and mangoes are having an impact on
apple and pear sales. Moreover, table grapes and cherries imported from California have made
significant in-roads into the Australian retail market in recent years.
The apple and pear industry has recognised these various challenges and implemented tailored
promotional programs in response. The most important factor will be to improve the quality of the
product (as opposed to the promotion of it) to ensure the industry meets or exceeds consumer
expectations. Continuing the shift to new varieties that interest the consumer and progressively
reducing the supply of older varieties is also an important part of repositioning the product over time.
2.3.2 Threat of imports
The potential for apple imports is the key uncertainty facing the industry. While this has been a threat
for many years, the almost unanimous expectation amongst key players in the industry is that apple
import competition will become a reality within a year or two. In the absence of industry action to
improve competitiveness, fresh apple imports have the potential to reduce Australian domestic market
share by up to a third and the returns to the industry by up to 40%.
2.3.3 Lack of an export culture
The industry has only a minimal profile in export markets and lacks a committed export culture.
Growers see their high labour costs to grow premium quality as their key disadvantage in that highly
cost competitive market. Lately, high labour costs have been exacerbated by unfavourable $Aexchange rates.
In fact, despite the perceived imperative to export, the volume of Australian apple
exports decreased from 36,700t in 2000 to 3,353t in 2008. Present Australian apple
exports are limited to high value Pink Lady™ to the United Kingdom and commoditystyle apples exported to some Asian markets.
Between 2000 and 2008
apple exports dropped
by 90% and pear exports
by 75%…..APAL
In the same period pear exports declined from 19,908t to 5,157t.
2.3.4 Addressing the environment and sustainable production
As with all agricultural industries, the apple and pear industry is increasingly facing a number of
environmental challenges.
Growers and consumers of food crops alike are progressively more compelled to be concerned about
sustainable farm practices, particularly with regard to soil condition, water usage, pest management
and chemical usage.
Moreover, climate variability, climate change and government policy measures in response to them will
also influence the direction of the apple and pear industry. Environmental-, carbon- and water-friendly
practices, both on-farm and along the supply change, will continually need to be adapted to meet
increased consumer concerns.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
3. Apple and Pear Industry Strategic Plan - New
Horizons 2015
3.1 Developing the plan
In March 2010, APAL endorsed the apple and pear industry strategic plan called New Horizons 2015.
The purpose of developing the new industry strategic plan was to:
1.
2.
3.
4.
develop a shared understanding on the overall direction, key strategic issues and the critical
actions required to influence the profitability, resilience and sustainability of the industry in the
medium to long term
guide the investment of research, development and marketing funds provided by both apple and
pear growers and the Australian Government from 2010 - 2015
enable allied service providers such as the public and commercial research and development
community to align their resources and effort with that of the industry
demonstrate to consumers, customers, the community and government the positive actions the
industry is taking in response to shifting demand and vigorous competition.
The process of developing the plan was guided by an APAL/HAL industry steering committee.
Consultation with industry was comprehensive, involving regional focus groups as well as dialogue
with individual industry participants along the supply chain.
Those priorities most likely to have an impact on the profitability and sustainability of the industry were
rigorously tested using a needs analysis approach. In addition the Hi-Link Model (developed by the
Centre for International Economics and used in the horticultural industry’s Future Focus program) was
utilised to explore the sensitivities of different scenarios.
3.3 Strategic plan highlights
The Highlights of New Horizons 2015 are shown in FIGURE 1.
Business as usual is not
an option…..APAL
Chairman
Analysis of the positioning of the apple and pear industry in the global market
place highlighted that transformational change is needed. The imminent challenges facing industry are
multi-faceted. They include: consumer dissatisfaction with fresh fruit; competition by other products or
imports; the imminence of apple imports; and environmental impact pressures.
It was recognised that substantial change can only occur with effective communication and
collaboration with other groups such as industry associations, governments, growers and supply chain
businesses, all acting collectively.
The following three key areas for co-ordinated action have been identified in New Horizons 2015:
1. stimulate domestic demand by 5 per cent through product quality and innovation
2. expand apple and pear export markets to 10 per cent of marketable product by 2015
3. ensure industry has the resources and capability to achieve its primary objectives
The overall objective and vision of the 5-year plan is to deliver the apple and pear industry to a status
of world competitiveness, profitability and sustainability by 2015.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
FIGURE 1 - The apple and pear industry plan on one page - New Horizons 2015
The Reality in 2010
Consumer demand for Australian apples and pears is in decline.
Domestic competition from a variety of local and imported fruits has intensified.
Imported apple juice concentrate dominates the domestic market and limits the local market for lower quality fruit.
Competition from imported fresh apples is likely within the next year or two.
Apple and pear exports are declining rapidly.
Grower numbers and profitability are declining as costs rise and market share shrinks.
The industry could contract by 20-40 per cent within five years, even with a proactive industry response.
Climate change and environmental issues are placing pressure on sustainable farm practices and consumer-retailer perceptions
Industry Strategic Intent
What: To consistently produce apples and pears of superior eating quality, focusing on varieties that are sought after by consumers
in the domestic market and selected overseas markets where premium quality is valued
How: By industry and government stakeholders working collaboratively to reposition the apple and pear industry and transform
competitiveness by delivering valued services that support innovation
Primary Objectives
1. Stimulate domestic demand by 5% through product
quality and innovation
2. Expand apple and pear export markets to 10 per cent
of marketable product exported by 2015
1.1 Improve consistency of product quality to match
consumer expectations.
1.2 Enhance orchard productivity and management
1.3 Coordinate industry product promotion and marketing
programs
1.4 Facilitate variety transition to match changing markets
1.5 Enhance industry value within the community
2.1 Define and understand overseas markets that offer
profitable export opportunities
2.2 Develop collaborative approaches to enter and expand
selected export markets
2.3 Resolve technical market access issues in target markets
2.4 Monitor export market competitor activities
Enabling Objective
3. Ensure industry has the resources and capability to achieve primary objectives
3.1 Adapt industry services to meet changing needs of growers
3.2 Improve quality and flows of information for decision-making across the supply chain
3.3 Invest in leadership and people development
The Reality in 2015
The Australian apple and pear industry is world competitive; satisfying consumer demand for its
products and with sustained profitability
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
3.3 Strategic plan details concerning RD&E
New Horizons 2015 identifies a suite of strategies and approaches to tackle the three key themes
identified. Many of them concern product promotion and marketing activities which are outside the
scope of this apple and pear RD&E plan. Similarly, those that involve industry in strictly business
activities along the supply chain are not addressed further here. Yet another area involving general
industry communication and interaction with government on policy and regulation are in the realm of
activities conducted by APAL itself.
What is of concern here are those strategies and activities that can be addressed by a co-ordinated
RD&E approach, which includes market research.
These three priority areas, transcribed in TABLE 3, have been adapted to highlight the RD&E
approach that will be required to meet the performance target.
TABLE 3 – Key RD&E Priorities and targets of New Horizons 2015
Key Objective
1. Stimulate domestic demand
2. Expand exports
3. Enhance Industry capability
Main RD&E Strategy
Improve product quality, productivity
and variety transition
Understand target markets and
resolve technical access barriers
Adapt services to deliver quality
information and promote leadership
Target by 2015
Increase demand by 5%
Increase exports by 10%
Increased grower satisfaction
3.3.1 Priority 1 - Stimulate domestic demand
Given the almost complete reliance of the industry on domestic markets this priority is of paramount
importance. The approaches needed to improve domestic demand broadly involve: improved and
consistent quality; higher yet sustainable productivity; and introduction and transition to novel varieties.
The need to assess and monitor consumer behaviour is also identified.
3.3.2 Priority 2 - Expand exports
The almost complete lack of an export culture in the Australian industry is a major barrier to the
development of new opportunities beyond the domestic market. Movement along this front is
considered particularly difficult as it requires operating under extremely competitive pricing. The
approaches largely depend on identifying overseas opportunities, making the right commercial liaisons
(both in Australia and overseas) and ensuring product quality and market access issues are
addressed.
3.3.3 Priority 3 - Enhance industry capability
None of the RD&E approaches identified to enhance market penetration will succeed unless growers
themselves can adapt and adopt the necessary practices and technologies. The challenge and
objectives for this enabling priority involve improved motivation, communication and knowledge
transfer to individual growers and the consequent development of leadership and skills competency.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
4. Key Stakeholders, their Strategic Plans & Coinvestment
4.1 Partners’ strategic plans & objectives
The business and operational activities of the apple and pear industry do not occur in isolation. Strong
strategic alliances and partnerships exist along the entire production and marketing chain. RD&E,
perhaps more than in any other activity, requires close collaboration and co-investment to be effective.
Key agencies that will continue to be partners with APAL in delivering its RD&E outcomes include:
Horticulture Australia Limited
Australian Government
government research providers from around Australia
private sector & international research providers
Each of these major funding partners in the apple and pear RD&E portfolio has a commitment and role
to invest in, sponsor or conduct research. A prerequisite for co-investment is a shared vision between
collaborators. Therefore, when constructing the RD&E portfolio and its individual projects, the
strategic objectives of all contributing parties must be addressed.
4.1.1 Horticulture Australia Limited - Strategic highlights
Horticulture Australia Limited (HAL) is a not-for-profit, industry-owned company. Its major role is to
manage the expenditure of levy funds collected by the Australian Government on behalf of horticulture
industries. When expended on RD&E (but not marketing and promotion), these levied funds are
matched by the Australian Government. HAL is responsible for all decisions
relating to the expenditure of levy funds to the Department of Agriculture, HAL will invest >$30m in
Fisheries and Forestry’s (DAFF). Where it is deemed that appropriate
the next 5 years into
benefits accrue to the general apple and pear industry, HAL is also
apple and pear RD&E
responsible for investing Australian Government funds alongside private
sector or overseas funds (as voluntary contributions; VCs).
As a general guide, the annual level of matched funds managed by HAL is expected to be in the order
of $6m; $3m from levies and another $3m from VCs.
In HAL’s Draft Strategic Plan 2010-2015 the key strategic priorities, RD&E investment programs and
outcomes over the next 5-year period are presented in TABLE 4.
TABLE 4 - HAL priorities, RD&E programs and outcomes
HAL Strategic Priority
Deliver new information & knowledge
Enhance industry skills & capability
Build consumer demand
HAL Investment Program
Best practice on-farm management
Natural resource management
Value chain efficiency
New product development
On-farm R&D extension
Investing in people
Targeted communications
Enhancing industry capability
Domestic marketing program
International market access
Promote health and well-being
New product and market development
HAL Major Outcomes
Increased knowledge that enhances
productivity, competitiveness and
sustainability
Increased demand for produce in both
domestic and international markets
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
4.1.2 Australian Government - Strategic highlights
The Australian Government’s support and encouragement for effective RD&E is largely delivered
through two of its Departments:
The Department of Innovation, Industry, Science and Research (DIISR)
which has developed its National Research Priorities (reviewed June
2009).
The Department of Agriculture, Fisheries and Forestry (DAFF) which
has formulated its Rural Research and Development Priorities (2007) to
be a guiding document up to 2017.
“Research & innovation
are vital for Australia’s
primary production &
food industries”… DAFF
HAL has an obligatory reporting arrangement and accountability to DAFF with respect to its RD&E
investment decisions.
The combined strategic priorities for RD&E for the Australian Government which are applicable to the
period 2010-2015 are shown in TABLE 5. The Australian Government is increasingly seeking
outcomes from its co-investments that demonstrably meet one or more of these priority objectives.
TABLE 5 – Australian Government RD&E priorities (2010-2015)
National RD&E Priorities
Rural RD&E Priorities
(DIISR)
(DAFF)
Promoting and Maintaining Good Health
An Environmentally Sustainable Australia
Safeguarding Australia
Frontier Technologies for Building and
Transforming Australian Industries
Productivity and Adding Value
Improve the productivity and profitability of existing industries and support
the development of viable new industries.
Supply Chain and Markets
Better understand and respond to domestic and international market and
consumer requirements and improve the flow of such information through
the whole supply chain, including to consumers.
Natural Resource Management
Support effective management of Australia’s natural resources to ensure
primary industries are both economically and environmentally
sustainable.
Climate Variability and Climate Change
Build resilience to climate variability and adapt to and mitigate the effects
of climate change.
Biosecurity
Protect Australia’s community, primary industries and environment from
biosecurity threats.
Innovation Skills
Improve the skills to under take research and apply its findings.
Technology
Promote the development of new and existing technologies.
4.1.3 Government research providers - Strategic highlights
Government agencies from across Australia, which include various State and Territory Departments,
Universities and CSIRO, have in the past been the main research providers and co-investors in the
apple and pear RD&E portfolio. In addition, though to a much smaller extent, some collaboration and
co-investment occur with other Government-backed agencies (e.g. ACIAR, RIRDC and DAFF).
In the time frame of this RD&E plan it is expected that the relationship with the major agencies will
continue to a similar degree of commitment and resourcing. However, a major change in the way
these partners engage with the apple and pear industry is at hand.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
The major research provider agencies have for many years (since 2001) operated a formal network of
senior horticultural RD&E managers together with representation from HAL. This National Horticultural
Research Network (NHRN) was established to provide strategic leadership and a forum for
consultation, communication and coordination across horticultural RD&E.
In 2007 the NHRN was commissioned on behalf of the Australian Government, represented by the
Primary Industries Ministerial Council (PIMC) and its Primary Industries Standing Committee (PISC), to
formulate a “National RD&E Framework for Horticulture”. The vision being to:
facilitate greater coordination and capability amongst Agencies and Industry
better harmonise RD&E and ensure effective collaboration without duplication
maximise the net benefit to Australia.
The process of developing the comprehensive framework was not completed until February 2010 and
is not expected to be formally ratified by PISC and PIMC until September 2010.
The major outcome of the process has been the identification of the future
strategic directions of individual agencies; their preferred science
competencies and the scale of resource commitments for each Horticultural
Industry/Commodity Grouping.
State agencies
contribute ~44% of the
funds for apple and pear
RD&E …..NHRN
Based on 2008-09 figures, NHRN has estimated that the total annual
investment in apple and pear RD&E was $10.015m; 53% funded by HAL/apple and pear industry and
44% by State Government agencies. Only 15% ($0.803m) of the funds went directly to support State
agency RD&E; the rest ($4.529m) was invested to support the activities of APAL, grower groups and
private sector parties.
The NHRN has qualified the individual agency roles, estimated 2008/09 investment in RD&E and
discipline support area for the apple and pear industry (TABLE 6).
TABLE 6 – Role, past RD&E investment and preferred discipline area for State
agencies articulated in the “National RD&E Framework for Horticulture”
Strategic Role
Major Priority Role
State Agency
Department of Primary Industries
Victoria (DPIV)
Department of Agriculture and Food
Western Australia (DAFWA)
Support Role
Queensland Department of
Employment, Economic Development &
Innovation (QDEEDI)
Industry and Investment NSW (IINSW)
Tasmanian Institute of Agricultural
Research (TIAR)
Link Role
South Australian Research and
Development Institute (SARDI)
2008-09 Investment
Agency $1.203m
HAL $0.312m
Other $0.139m
Agency $1.402m
HAL $0.026m
Other $0.017m
Agency $0.442m
HAL $0.360m
Other $0.004m
Agency $0.729m
HAL $0.031m
Other $0m
Agency $0.543m
HAL $0m
Other $0.033m
Agency $0.063m
HAL $0
Other $0.108m
Discipline Area
Plant Health
Crop Production
Environment
Breeding
Crop Production
Plant Health
Industry Development
Environment
Extension
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
The “Strategic Role” in the first column of TABLE 6 is defined as:
Major Priority Role: a national leadership and coordination role where there is a major priority for
the relevant government agency which endeavours to give a high priority to funding research
capability, including infrastructure, for that sector
Support Role: the agency undertakes research, but not leadership, in collaboration with and
complementary to the major priority role
Link Role: the agency will undertake little or no research but access information and resources
from other parties to meet industry needs and in support of other agencies
By the above definition and analysis, NHRN has determined that DPIV will function as the formal point
of contact with the apple and pear industry/APAL. The role, when fully operational, would include one
of leadership and coordination across the entire network of RD&E provider agencies.
4.1.4 Other RD&E providers - Strategic highlights
There has been substantial investment in RD&E with providers other than State Government agencies.
NHRN has estimated that the annual investment by HAL/apple and pear industry in this sector is in the
order of $4.3m per year. The majority of RD&E projects funded in this way are those involved in the
area of industry development. Most are extensions of APAL roles to directly service industry with
information, training and technology transfer. Another series of projects concerns high-order issues in
horticulture that sensibly require a whole-of-industry approach with a contribution from the apple and
pear industry (e.g. the “across-industry program”).
Notwithstanding the above, there remains a large proportion of RD&E investment and projects that are
undertaken in collaboration with the private sector and international agencies. These RD&E providers
are recruited to provide specialist skills, services and consultancies not usually available from the State
Government research providers.
The motivation to engage overseas providers involves the need to recruit
RD&E teams that are already experienced, with both infrastructure and
technology available to have an immediate impact on the task at hand. In
this respect, the apple and pear industry has, to date, a number of major
projects underway with RD&E teams based in New Zealand, notably Plant &
Food Research (PFR).
In 2010 three major
projects are underway
with NZ-based RD&E
providers…..APAL
It is anticipated that the apple and pear RD&E portfolio will continue to tap into this external expertise
with co-investment utilising the voluntary contribution funding mechanism (see Section 4.2.2). The
documented prerequisites are that all such collaborations with overseas providers must be in
partnership with the Australian apple and pear industry and be able to demonstrate a clear benefit,
including transfer of technologies and/or “know-how”, to raise the capability of Australian users.
4.2 Overview of funding and priority setting
The process by which the apple and pear industry sets and funds its RD&E priorities through
collaboration and co-investment with other parties is outlined in FIGURE 2.
4.2.1 Priority setting cycle
The priority setting cycle is outlined on the right-hand side of FIGURE 2.
The process is largely driven by the development of the apple and pear industry strategic plan under
the auspices of the Industry Advisory Committee (IAC). The IAC is a committee of HAL that provides
advice to the HAL Board; membership is recommended by APAL. The current apple and pear
strategic plan, called New Horizons 2015, has been outlined in detail in the preceding Section 3.
As a consequence of the development of this strategic plan the IAC, through its various subcommittees, undertakes the development of a number of operational plans. In the past, one of these is
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
the Annual Investment Plan which, amongst other things, outlines the RD&E priorities for submission
to HAL and as a guide to potential research providers.
A major change to this process is indicated by the development of this present document. The apple
and pear IAC has decided to release a five-year RD&E Investment Plan alongside, and underpinning,
its strategic plan. This five year plan has been developed co-operatively with IAC, industry, HAL,
APAL and key Government research providers (represented by NHRN).
An on-going function of the RD&E Sub-Committee of the IAC is to analyse and provide
recommendations to HAL for the funding and implementation of individual projects that collectively
make up the apple and pear RD&E portfolio.
The principles, issues and priorities guiding this process are the subject of Section 5; with specific
priority investment areas detailed in Section 6.
4.2.2 Funding cycle & investment model
Co-investment by partners, such as those participating through the NHRN, together with industry and
government (through HAL) is the key element in combining funds to effectively tackle priority RD&E.
The process is outlined on the left-hand side of FIGURE 2.
FIGURE 2 - The funding and priority setting cycle for developing the RD&E project
portfolio
FUNDS
PRIORITIES
Apple & Pear Growers
Levy funds
Advice &
representation
Outputs that
benefit
industry
$
Priority RD&E projects
Australian
Government
(DAFF)
Matched
funds
DELIVERY
Project
development
& agreement
$
Horticulture
Australia
Limited
$
Government
RD&E Providers
(NHRN)
Private Sector
Providers
(participating as
Voluntary
Contributors)
Apple & Pear
Australia
Limited (APAL)
Co-invested
funds
$
Matched
funds
RD&E
Investment
Plan
Co-operative
planning
Advice
Industry
Strategic Plan
(New Horizons)
Industry
Advisory
Committee
(& RD&E SubCommittee)
Horticulture
Australia
Limited
Government
RD&E Providers
(NHRN)
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
4.2.3 HAL funding
The current funding model for investment in apple and pear RD&E is coordinated under the auspices
of HAL. In general terms, industry or private sector funds can be matched (on an $A for $A basis) with
Australian Government funds (via DAFF) for approved projects.
Projects funded through HAL always involve, at least in part, a combination of:
statutory levies (marketing and RD&E) from apple and pear industry levy payers. HAL is
accountable to levy payers and to the Australian Government for the expenditure of levy funds.
For detailed information see: “Investment of Levies for Australian Horticulture - Roles and
Responsibilities”
voluntary contributions (VCs) received from private sector providers; including grower
associations, commercial enterprises, overseas research providers and individuals
Australian Government matching funds for expenditure on RD&E up to 0.5 per cent of the gross
value of production for the total horticulture industry.
Although industry levied funds and voluntary contributions can be matched with Australian
Government funds, notably, funding from Government research providers (such as those represented
by NHRN) cannot.
4.2.4 Co-investment from parties
Effective RD&E requires strong interaction and a shared vision with other parties. The nature of these
alliances is largely determined by a process of co-investment in RD&E; each party combines
resources and expertise in a mutually agreed project in order to gain leverage of their investment and
to produce mutually beneficial outcomes.
Thus, in general terms, the decision to approve projects will involve a process that includes a judgment
of “value for money”, funding leverage; benefit/cost and relevance to industry priorities. In this regard,
most projects can usually nominate a significant resource co-invested from each of the parties.
Even though most projects tend to be structured with co-investment, many projects (or components of
projects) are approved on a “fee-for-service” basis. The overriding judgment then is determined by the
need for a timely specialised consultancy, skill or service.
4.2.5 Submission process
There are several opportunities, primarily advertised on the HAL website, to submit proposals based
on published industry priorities in a standardised format for consideration. They include:
a general call for proposals that are seeking to be funded by VCs with matched co-investment
through HAL - usually called in January each year, closing in March; but can be submitted at any
time
an industry call for proposals involving apple and pear levies, with or without a VC component usually called in October each year
commissioned projects specifically defined and competitively tendered at any time; on either a
co-investment or a fee-for-service basis. HAL can accept registration for electronic notification.
Submitted applications are assessed for relevance and quality in a formal process undertaken by both
the apple and pear Industry Advisory Committee (IAC) via its RD&E Sub-Committee and by HAL.
Successful applicants are required to enter into a formal contract with HAL for delivery of project
outputs based on mutually agreed milestone achievement.
More and more in formulating its apple and pear RD&E portfolio, IAC/HAL expects to call for
expressions of interest and negotiate project briefs as part of a process to commission projects; rather
than rely on scheduled calls for submissions. Direct contact with HAL or the IAC seeking guidance or
assistance on any aspects of its RD&E portfolio is encouraged at any time.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
5. The Development of the RD&E Investment
Plan – Principles, Process & Priorities
5.1 Why a five-year RD&E plan?
In the past the R&D priorities for the apple and pear industry have been formulated and presented on a
yearly basis. This approach has tended to reinforce a pragmatic decision-making approach, rather
than a long-term, staged analysis to determine where investment is needed. In addition, short-term
plans do not capture the changing trends and refocussing of partners’ and other stakeholders’ longerterm visions.
Another major change in the formulation of this plan is to focus much more on industry development
and extension activities as a driver of change; thus RD&E not R&D.
This five-year RD&E Investment Plan is presented herein to:
1. underpin and provide an implementation strategy to achieve the objectives outlined in the apple
and pear industry strategic plan New Horizons 2015
2. be complementary and compatible with the other apple and pear industry plans (Export
Marketing and Domestic Marketing Plans, Industry Communication Strategy & APAL Annual
Operating Plans)
3. provide a reference to industry’s priorities and guiding principles for all of those who wish to
interact with the RD&E program, including research providers and other stakeholders (e.g.
industry, HAL, private sector and government)
5.2 Guiding principles and issues
The following are a list of guiding principles that underpin the development of this plan.
5.2.1 Larger, integrated and pre-scoped projects
Longer-term focus on
R&D
the structure of the RD&E portfolio needs revision in order to reduce the
RD& E; not just
number of small projects and transform the portfolio to larger, more
significant and better managed programs. In this way, significant
savings of resources and management time can be redirected into more dynamic multidisciplinary programs
it is anticipated that the process to achieve larger programs and fewer projects will involve
preliminary pre-scoping of projects in partnership with potential collaborators. Thus, it is
envisaged that a process of timely “commissioning” of projects will replace a routine annual “call”
for projects. The PIPS project (see Section 6.1) provides a model
large projects and programs will, because of their complexity, require significant resource
commitments at the scoping stage. Such projects will also require that appropriate resources
and expertise for on-going management are identified and integrated into project delivery
Budget sufficiency and adequate allocation will be an important planning event
5.2.2 Broad agreement with stakeholders
the delivery of effective RD&E requires strong partnerships and co-investment with other
agencies
when constructing the RD&E portfolio and its individual projects, the strategic objectives of all
contributing parties must be addressed
the RD&E plan needs to be well developed with and broadly agreeable to key stakeholders prior
to its implementation
the plan will need to be developed by a combination of preliminary discussions within the RD&E
Sub-Committee then with a broader stakeholder group
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
the plan must provide a “road-map” for agencies/partners to co-invest and be actively
communicated and shared with them
the RD&E Sub-Committee will need to engage effectively with the National Horticultural
Research Network (NHRN) with a view to brokering comprehensive projects
5.2.3 Restructured around priority areas
the plan encompasses a very large investment that has already been made and involves many
on-going projects; the portfolio needs to be analysed and formulated into natural “groupings” that
align with the strategic plan - New Horizons 2015
existing individual projects should be formally reviewed with the objective of ensuring they are on
track and of sufficient quality; or whether they need to be adapted or even amalgamated with
other projects
identification of “priority investment areas” for large strategic projects will be a key element in
formulating the plan (detailed in Section 6)
a key element will be to identify those projects that are best delivered as “cross-industry” projects
alongside other horticultural industry investors
5.2.4 Assessment of performance
the overall RD&E plan, as well as the individual priority investment areas, will need to be
assessed; at the least when its term expires in 2015. This review process will help guide the
development of on-going RD&E plans
all individual projects must be effectively reviewed during their lifetime
key projects (or sub-sets) should be subject to a comprehensive evaluation (as a separately
funded & commissioned exercise)
the budget allocations to each priority area will need to be constantly monitored. Particular
scrutiny of the balance between levy funds and voluntary contributions is envisaged to maintain
an adequate and equitable level of investment
5.2.5 Clarity of engagement
the RD&E program must be accessible to a broad range of investors but maintain a high level of
integrity and demonstrated benefit to industry
all projects must be contracted with transparent probity, high quality and stringent conditions
related to performance and milestone achievement
technology transfer, adoption and industry development are the key elements required to be
addressed in all project proposals
projects that are likely to involve commercialisation activities must contain a milestone where a
commercialisation plan (including equity and route-to-market decisions) is agreed by co-investors
recruitment of, and investment from, international research providers should be encouraged
provided there is direct and demonstrable benefit to the Australian industry
co-investment by, and contracting with, private companies as voluntary contributors must be able
to demonstrate benefit to the wider Australian industry
projects involving APAL (and its subsidiaries) or HAL (and its affiliates) as the lead agency must
follow the same principles as above.
5.3 RD&E planning process
The process of developing this RD&E Investment Plan is broadly outlined in FIGURE 3.
The first step involved an analysis of the recent and existing RD&E project portfolio against a
background of key strategic documents and a broad cross-section of stakeholder views (see Section
8.1 & 8.2). Many stakeholders have recently undertaken their own far-reaching strategic analysis and
developed contemporary plans that need to be embraced in the present plan.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
The next step was to identify RD&E opportunities that would meet the objectives outlined in the apple
and pear industry’s own strategic plan, New Horizons 2015, and also fit the guiding principles and
issues outlined in Section 5.2 above.
This, in turn, has led to the identification and formulation of new investment priority areas with a
collection of potential RD& E programs and embedded projects. The detailed description of these
investment priority areas, which is the subject of the following Section 5.4 & Section 6, formed the
basis of the initial draft RD&E Investment Plan. Subsequent discussion with stakeholders and industry
participants has led to refinements allowing the finalisation of an agreed RD&E Investment Plan.
FIGURE 3 - The RD&E Investment planning process
Review:
Key strategic
documents
Analyse:
Existing &
recently
completed
RD&E projects
Filters:
1. Strategic Plan
2. Guiding principles
Consult:
Key contacts
(industry &
partners)
Identify:
Gaps
Opportunities
Potential benefits
Formulate:
Investment Priority Areas
Potential programs/projects
Outputs
Compile:
Draft RD&E Investment Plan
Test & Amend:
Key internal & external stakeholders
Finalise:
Agreed RD&E Investment Plan
5.4 Re-defining priority areas
In the past it was convenient to assign RD&E projects into “natural” groupings such as the current
categories used by HAL, e.g. Crop Production; Post Harvest; Product Integrity; Environment; Market
Development. However, the reality faced by horticultural industries is not always well reflected by this
segmentation into individual disciplines or areas of interest. The challenges facing industry, outlined
extensively in New Horizons 2015, involve a broader view of the production and supply process and
the issues that impact upon it.
In this regard, a more holistic RD&E approach is needed to address on-farm, supply chain,
environmental, market and industry development issues. Therefore, in this five year plan, projects
have been formulated into seven RD&E investment priority areas (FIGURE 4; numbered according to
the detail provided in Section 6).
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
FIGURE 4 - RD&E Priority Investment Areas
6.7
6.1
Portfolio
Management
Productivity
&
Supply Chain
6.6
Industry
Development
6.2
Apple & Pear
RD&E
Portfolio
6.3
6.5
Market
Research
Climate
Change
Germplasm
Improvement
6.4
Market
Access
& Biosecurity
For each of these RD&E priority investment areas, the following Section 6 provides background
analysis, an outline of current and recent projects, and an assessment of the strategic direction of
investments that will help meet the objectives of New Horizons 2015.
Furthermore, for each priority RD&E investment area, the relevant objectives described in New
Horizons 2015 (under their key headings and with the numbering use in the original document) are
outlined in an accompanying BOX.
5.5 Overall performance
The overall performance of this plan after the five year period will have been deemed successful if the
following elements have all been achieved:
The individual RD& E projects have overwhelmingly achieved their objectives and produced their
contracted outputs
Where appropriate the RD&E outputs have been transferred to, and utilised by, growers to
improve their individual businesses; and
The majority of targeted growers (>75%) agree that over the five year period resources were
invested appropriately into effective RD&E
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
6. The RD&E Portfolio – Priority Investment
Areas
6.1 Productivity & Supply Chain
6.1.1 Background analysis
The supply chain is long; beginning with production in the orchard and ending with consumption by the
end-user. The grower’s focus is mostly on sustainable productivity, whereas the major consumer
concern is quality and value (with increasing interest in environmental integrity). In between these two
extremes is a complex multi-participant storage, handling and distribution chain. This complex supply
chain is prone to breakdowns in the flow of produce, materials, information and in business
relationships.
In the past RD&E projects addressing productivity and supply chain issues have been undertaken as
discrete units of study based on topics such as: agronomy, pest and diseases, post harvest, fruit
quality etc.
There is a compelling need to take an integrated systems approach when tackling RD&E in this area.
6.1.2 Past and current projects
The recent and current RD&E portfolio encompasses ten different projects, in the following broad
areas:
1. Productivity
- AP04009 Adoption of intensive pear production
- AP09031 PIPS Orchard Productivity Program
- AP08008 High density production systems for Australian-bred scab resistant apples
These three projects are already effectively being integrated into a single “Productivity, Irrigation, Pests
& Soils” (PIPS) project. This integrated project is undoubtedly a significant, high-profile development
for industry and a role model for how projects will be formulated in the future.
2. Fruit Quality
- AP08043 Through Chain Rot Management in Apples
- AP08036 Apple Consumer and Sensory Research for Improved Value Chain
- AP08004 Managing the risk of flesh browning for 'Cripps Pink' apples using a climate model
- AP09039 Delivery Developing ripening protocols for Ripe & Ready pears
These four projects, undertaken separately, examined different aspects of apple and pear fruit quality
along the supply chain.
3. Retail/Consumer Interactions
- AP07010 AFFCO Well Informed Grower project - apples and pears
- AP07048 Assessment of bulk export shipments of Pink lady to UK
- MT10017 Driving Demand Growth through Understanding Consumer Purchase Behaviour
(Retail Scan & Homescan Analysis)
The first two projects involves a consortium of growers (AFFCO) monitoring information and
commodity flow along the supply chain, including engagement with the retail and export sectors. The
third project is a continuing across-horticulture program investigating retail throughput and consumer
buying patterns via direct scanning data or consumer focus groups.
6.1.3 New strategy 2010-2015 – Productivity & Supply Chain
The whole-of-chain viewpoint is a major feature of New Horizons 2015 and is the subject of four key
priority areas (BOX 1).
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
BOX 1
1.1 Improve consistency of product quality to match consumer expectations
1.1.1 Work collaboratively with retailers and the supply chain to identify and prioritise quality
issues and implement improvement programs.
1.2 Enhance orchard productivity and management
1.2.2 Invest in national research and development that is regionally relevant and aimed at:
(i) improving the productivity of orchard production and the consistent supply of quality fruit
to the supply chain;
(ii) minimising the impact of the industry on the environment.
1.2.3 Maintain research in biosecurity issues to minimise the impact of pests and disease
1.3 Coordinate industry product promotion and marketing programs
1.3.1 Establish and manage productive working relationships at the strategic level between major
retailers and the apple & pear industry.
1.3.3 Research and monitor changes in consumer attitudes towards Australian apples and pears
1.5 Enhance industry value within the community
1.5.1 Advance environmental sustainability and promote what the industry is doing and achieving
(ii) Complete an audit of the current and emerging key climate change, climate variability
and other environmental issues related to apple and pear production and document
existing industry performance relative to competitors
(ii) Formulate plans, targets and objective monitoring systems for issues that will provide
competitive advantage including residues, water efficiency and other environmental
impacts (including carbon footprint).
(iii) Undertake environmental initiatives (on basis of audit and subsequent action plans)
1.5.2 Influence Government policy and regulation that impacts on industry competitiveness
(i) Prepare and release public reports that present quantitative evidence of industry
performance on environmental issues
The strategy for on-going RD&E in this area is to undertake an integrated systems approach in two
broad areas.
Productivity, Irrigation, Pests & Soils (PIPS)
As indicated above, PIPS is a flagship project for the apple and pear industry. It has been able to
successfully integrate RD&E effort both nationally and internationally, involving Plant & Food Research
(PFR) researchers and project leaders. This amalgamation of expertise allows a multi-disciplinary
approach to tackle the interacting factors associated with sustainable crop production.
In addition, the structure and operations of PIPS allows for a pro-active
interaction with extension activities, particularly those associated with the ongoing “Future Orchards 2012” program (see Section 6.6.3).
For the period 2010-2015 it is envisaged that all on-going activities and any
new initiatives concerning “orchard productivity” will be embedded in the
PIPS program.
PIPS is an on-going
flagship project for the
apple and pear industry
At its onset in 2009, a number of missed and future opportunities were highlighted to be folded into the
program. Some of these are considered a priority for implementation within the timeframe of this
current RD&E Investment Plan. They include:
1.
Consolidating regional activities and introducing new germplasm
i. Western Australian node of activity. A sub-project involving high density plantings of an
agreed apple variety should be co-developed by DAFWA and the PIPS program leader
incorporating the national objectives of PIPS.
ii. Integration of Queensland-based activities. The on-going activities and funding by
QDEEDI associated with high density plantings of the putative scab-resistant cultivars will
need to be adapted to the PIPS program (if necessary) and folded-in by 2012.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
2.
3.
iii. Inclusion of pear plantings. It is essential that previous RD&E on intensive pear
production is captured in the PIPS program. A study utilising high density plantings of a
suitable pear cultivar needs to be embedded into the program in co-operation and with
co-investment from DPIV. The study will focus on productivity and precocity.
Powdery Mildew
i. The validation of models to assist in the management of powdery mildew utilising a coinvestment model with PFR in New Zealand and East Malling Research in the United
Kingdom.
Soil, Water & Nutrients
i. Soil carbon amendments. A pilot study needs to be undertaken to investigate the effects
of incorporation of carbon amendments into the soil profile. Possible materials to be
studied include biochar and brown coal formulations. Such a study, brokered by the PIPS
project, might incorporate co-investment from manufactures/dealers and involve cofunding from the energy industry sector and relevant Commonwealth and State
Government agencies (e.g. IINSW, TIAR, and DPIV).
ii. Fertigation. Beginning in 2012/13 it is planned to include a “Precision Fertigation” module
into the PIPS program. This activity will, for marginal cost, investigate the capacity to
continuously supply nutrients in modern micro-irrigation systems to high-density apple
and pear orchards. The aim would be to quickly integrate this activity into extension
components and the “Future Orchards - Beyond 2012” program (see Section 6.6.3).
It should be noted that PIPS is the preferred project to embed all future work on pests & diseases.
However, it is acknowledged that on occasion a pest or disease problem may arise that is sporadic or
regional in nature. In that case, it may be expeditious to create a discrete project to address the issue.
A further area worthy of analysis and consideration for inclusion as part of a future Orchard
Productivity program involves the issue of mechanisation. An NHRN driven and horticulture-wide
project is presently investigating this discipline area (mechanisation, automation, robotics and remote
sensing; MARRS).
Sustainable Supply Chain Analysis
As indicated above there is a need to take an integrated systems approach to analyse the supply chain
in order to identify improvements that will benefit the apple and pear industry. A Value Chain Analysis
(VCA) methodology is likely to prove useful in this regard (BOX 2).
BOX 2
The concept of Value Chain Analysis as a business management tool was developed in the
1980s. In broad terms it is a systematic approach to enhance competitive advantage by
examining the chain of activities that create and build value. Implementing a VCA study of a
business is often accompanied by Life Cycle Analysis (LCA); the investigation and evaluation of
the environmental impacts of a given product or service. This allows the identification and
evaluation of the steps or processes along the chain that result in high emission of greenhouse
gasses (e.g. CO2) or high use of other resources (e.g. H2O). A recent case study of South
Australian wine was undertaken by Primary Industries and Resources, South Australia (PIRSA)
with a world expert from University of Kent, UK leading the project. The study involved a
combination of VCA, LCA and consumer research along the Yalumba “Oxford Landing” wine Tesco, UK supermarket Supply Chain.
Expertise to undertake a collaborative study utilising Value Chain Analysis and Life Cycle Analysis
approaches is resident in Australia at TIAR, QDEEDI, PIRSA and in New Zealand at PFR. The TIAR
team, who have a working relationship with an experienced UK group, have recently completed a VCA
for the Australian vegetable industry.
It is proposed to develop a multi-disciplinary RD&E project based on the approaches described above.
In addition, the project will utilise information and expertise already assembled in the projects on fruit
quality and retail/consumer relationships presently underway or recently completed (described in
Section 6.1.2). The project will be broad-reaching and augmented by other activities in tandem with
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
the VCA theme. In this way direct benefits to growers and the apple and
pear industry at large are assured.
The working title of the project is tentatively: “Tree to Table: Sustainable
Supply Chain Analysis for Apples and Pears” (TTT).
Develop a flagship
supply chain project:
“Tree to Table”
The project will be commissioned by a call for “expressions-of-interest”.
Under the auspices of HAL/IAC, the initial stage will be to devise and scope TTT with key participants
to embrace, in the best possible way, the following elements:
The project team should incorporate a network of members with a national and international
reputation in this area of study
The RD&E partners would ideally also contribute as co-investors
Identify how existing or concluded projects already in the RD&E portfolio can complement this
program
Equitably represent apples and pears with appropriate varieties
Address the total supply chain from the growers’ “Tree” to the consumers’ “Table”
Recruit growers to actively participate in the project and assist in the recruitment of key supply
chain partners
Ensure that whilst maintaining appropriate confidentialities among supply chain participants
industry at large gets real benefits
In addition to the domestic market, explore the prospect of including an export supply chain with
the collaboration of AFFCO and its grower network
Utilise LCA to address the issues of carbon footprint and water footprint along the supply chain
(utilising the PIPS project for the in-orchard analysis)
Identify the quantity and reasons for wastage at each point along the chain (focusing on fruit
losses and postharvest attributes)
Expressly address consumer research (either using contemporary information or involving a
study undertaken in parallel or integrated into TTT)
Explore the prospect of including an “Aussie Apple” brand into the study (in collaboration with
HAL/APAL market research activities)
It is envisaged that the process of project development will itself be a substantial activity requiring
significant time and resources from potential partners and co-investors. However, ongoing activities
from this large program are expected to generate a key understanding of the supply chain and help
identify critical priorities for future RD&E investment.
On-going aspects of both these key projects (PIPS and TTT) would be expected to help provide public
information that would clearly demonstrate evidence of proactive industry involvement in ameliorating
environment issues and addressing consumers’ needs.
For issues that strictly relate to Climate Change see the next section.
6.1.4 Key performance indicators – Productivity & Supply Chain
By the end of the 5 year period:
The PIPS program has met all of its milestones, gained a high industry profile and has been recontracted following a positive review
The TTT project has been commissioned and the majority of issues listed above have been
incorporated into, or addressed outside, the program
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
6.2 Climate Change
6.2.1 Background analysis
According to CSIRO’s climate change website in the past century, the global average surface
temperature has risen by 0.74 ºC. The observed increase in average temperatures is widespread
around the globe, with rising trends recorded on all continents and in the oceans. In Australia:
there has been a 0.9 ºC warming since 1950;
snow depth at the start of October has declined 40 per cent in the last
40 years in the Australian Alps;
since 1900, precipitation has increased significantly over north-west
Australia;
Since 1950, Australia
has warmed by 0.9 ºC
….CSIRO
since 1950, eastern and south-western Australia have become significantly drier;
very long-term rainfall deficiencies have persisted across parts of southern and eastern Australia
The issues related to climate change are a high profile with the Australian Government and other
agencies around the nation. Recognising that changes to Australia’s already variable climate will
present great opportunities and challenges for the nation’s primary industries, a collaborative
partnership called the National Climate Change Research Strategy for Primary Industries (CCRSPI)
was established in 2007.
CCRSPI, operating under a mandate from the PIMC and PISC, is a partnership between State
agencies, the Rural Research and Development Corporations (including HAL), DAFF and CSIRO.
CCRSPI has a dedicated website. HAL’s funding contribution to CCRSPI is supported by an acrossindustry program through which the apple and pear industry has been, and will continue to be, an
active contributor.
The first phase of work undertaken by CCRSPI has led to the identification of six priority RD&E areas
for collaboration between industry and government. These are:
1. Understanding future climates - need for better information about future climate and climate
variability at seasonal timescales;
2. Managing emissions - need for an understanding of primary production lifecycles and processes
to reduce and offset emissions;
3. Preparing industries adaptation - need to adapt and respond to climate change to maintain
productive, profitable and sustainable systems;
4. Accessing information - need for access to clear, relevant and factual information that is
nationally consistent, but regionally and sectorally specific;
5. Facilitating change - through capacity and capability development; and
6. Linking decision makers - encouraging dialogue between researchers, policy makers and primary
producers to align research priorities, policy development and industry responses
The second phase of CCRSPI activity aimed to develop an implementation plan for the research
strategy for 2009/10 onwards. This, in turn, has led to the development of the “Horticulture Climate
Change Action Plan” formulated by HAL in March 2009. The three basic elements of this plan and the
questions that they are designed to answer are:
1. Adaptation - “Do horticulture producers (and their advisors) have appropriate tools and an
understanding of climate change and variability issues, to avoid the risks and/or take advantage
of the opportunities of a variable and changing climate?”
2. Mitigation - “Do we understand how to reduce greenhouse gas emissions from horticulture
cropping systems?” and “Are current fertilizer management practices in horticulture appropriate
for managing N2O emissions?”
3. Information, awareness and communication - “Do horticulture producers (and their advisors)
have appropriate tools and an understanding of climate change and variability issues, to avoid
the risks and/or take advantage of the opportunities of a variable and changing climate?”
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
6.2.2 Past and current projects
To date, apple and pear industry investment in this area has been limited. Past or newly developed
RD&E projects on climate change include:
1. Across-industry investment
- AH06019 Australian horticulture’s response to climate change and climate variability
- AH07027 Horticulture component of the National Climate Change Research Strategy for Primary
Industries
- AH08003 Analysis of horticulture’s carbon footprint
- AH09014 Across-industry climate research, development and extension (RD&E) activities
- HG08037 Critical thresholds (‘tipping points’) and climate change impacts/adaptation in
horticulture
- AH10003 Horticulture component of the National Climate Change Research Strategy for Primary
Industries (pending)
These six projects represent the on-going apple and pear industry’s contribution to the acrosshorticulture activities that has led to the development of the HAL-compiled “Horticulture Climate
Change Action Plan”. Moreover, one project has enabled a compilation of “Horticulture’s Climate
RD&E matrix” capabilities; a database on climate change projects and activities undertaken by all
stakeholders across Australia.
2. Specific apple and pear industry investment
- AP09019 First steps in a response to climate change and climate variability: desktop study
- Farmready - Adapting and adopting Best Management Practice relative to Climate Change in the
Australian apple and pear industry
These projects address the specific needs of the apple and pear industry focussing on the regional
impact of forecast climate change and the potential of implementing off-setting management practices.
The first project above is nearing completion in June 2010. The second, a three-year project
supported by funding from a DAFF Farmready Industry Grant Scheme, begins in June 2010.
6.2.3 New strategy 2010-2015 – Climate Change
In alignment with the above developments and plans, the action items shown in BOX 3 were identified
in New Horizons 2015 as essential elements needed for the apple and pear industry to achieve
progress on climate change and other environmental issues within the 2010-2015 period. It should be
noted that some of these objectives (e.g. carbon footprint) have been addressed under the productivity
and supply chain initiatives described in Section 6.1.3.
BOX 3
1.5 Enhance industry value within the community
1.5.1 Advance environmental sustainability and promote what the industry is doing and achieving
(ii) Complete an audit of the current and emerging key climate change, climate variability
and other environmental issues related to apple and pear production and document
existing industry performance relative to competitors
(ii) Formulate plans, targets and objective monitoring systems for issues that will provide
competitive advantage including residues, water efficiency and other environmental
impacts (including carbon footprint).
(iii) Undertake environmental initiatives (on basis of audit and subsequent action plans)
1.5.2 Influence Government policy and regulation that impacts on industry competitiveness
(i) Prepare and release public reports that present quantitative evidence of industry
performance on environmental issues
Using the above HAL and across-industry activities, and the “first steps desktop study” as a
framework, it is proposed that on-going RD&E in this priority area will be enhanced and consolidated
into a single project: “Responding to Climate Change; Beyond 2010”.
In formulating this consolidated program, the RD&E Sub-Committee and APAL will need to actively
engage with the NHRN.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
The basic structure of the Farmready project will be assimilated into a broader program involving other
stakeholders as co-investors. It is envisaged that a project brief will be compiled to interact with apple
and pear industry activities known to be planned or underway by other agencies. One such activity
“Management of extreme heat events in the pomefruit industry” is being undertaken by DPIV; another
“Managing apple harvest maturity in a changing climate” has been proposed by IINSW with an
embedded PhD student at the University of Sydney.
The consolidated “Responding to Climate Change; Beyond 2010” will have a dedicated project
manager to coordinate the subprojects and ensure interaction with other projects in the apple and pear
RD&E portfolio.
The issue of carbon footprints (and water footprints) is addressed earlier as a component of the “Tree
to Table: Sustainable Supply Chain Analysis for Apples and Pears” (TTT) project utilising a Life Cycle
Analysis approach along the Supply Chain (Section 6.1.3).
A study of carbon amendments into orchard soil, potentially utilising biochar and brown coal, is to be
undertaken as a component of the “Productivity, Irrigation, Pests & Soils” (PIPS) project described
earlier (Section 6.1.3).
6.2.4 Key performance indicators – Climate Change
By the end of the 5 year period:
The majority of targeted growers (>75%) in all regional apple and pear growing districts have a
good understanding of the likely impact of climate change on their production systems
Following a targeted survey, the apple and pear industry is viewed by Government and the
community as proactive in exploring and addressing climate change issues
6.3 Germplasm Improvement
6.3.1 Background analysis
A comprehensive analysis of germplasm improvement for the apple and pear
Maintaining investment
industry was conducted in 2007 under the auspices of both HAL and APAL.
The format of the analysis included workshops, discussion papers and a in variety development is
comprehensive study entitled “Options for Access to New Genetic Material
for Australian Apple and Pear Growers – Business Case”. The overwhelming fundamental to achieving
endorsement was the need to continue direct investment by industry in order
goals…APAL
to maximise its opportunities to compete domestically with imports and
expand its export markets. Moreover, it was argued that this was the only option that would guarantee
the industry access to new premium and niche varieties. Another outcome of the analysis was the
need to integrate activities to provide better coordination, partnership and priority-setting and to gain
access to new technologies. To date, apart from continued investment in the area, little further action
has been taken on these insights.
6.3.2 Past and current projects
The apple and pear industry has been, and will continue to be, a substantial investor in variety and
rootstock improvement. The strategy taken by industry is to become a comprehensive player along
the entire “development pipeline” and be actively involved in creating, facilitating and adopting new
varieties.
This pipeline variously involves:
conventional breeding and selection, with some pre-breeding (enabling) technologies
examination of third-party varieties under commercial agreements
evaluation of varieties in Australian field conditions
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
evaluation and selection of suitable rootstocks
assessment of consumer-required attributes
postharvest performance and consumer testing
certification from various diseases
pre-commercialisation planning and, ultimately, commercial release.
To this end, APAL/HAL has invested not just in individual projects (with DAFWA, QDEEDI, DPIV &
IINSW) but also as a major stakeholder in a joint venture (Prevar TM with Pipfruit New Zealand Inc and
PFR) and as a sole stakeholder in other ventures (Australian Pome Fruit Improvement Program Ltd
[APFIP] and Coregeo Australia).
Current investments in this area involve nine separate projects; viz.:
AP04004 Breeding woolly aphid resistant dwarfing apple rootstocks (IINSW)
AP08002 Pear variety evaluation & certification (APFIP)
AP08019 Breeding novel apple varieties to benefit the Australian Industry (DAFWA)
AP08041 Creating wealth…with consumer-preferred scab resistant apple selections (QDEEDI)
AP09026 Commercialisation of Pear varieties (Coregeo Australia)
AP09035 Development of new pome fruit products (PrevarTM)
AP09036 Perfect Pears - national pear Breeding Program (DPIV)
AP10016 Pear rootstock trial (APFIP)
AF10000 Australian pome fruit improvement program (APFIP)
There are some very important issues to address in the on-going investment by the apple and pear
industry in this germplasm improvement investment area:
1.
2.
3.
4.
5.
6.
Some of these projects are nearing completion - With the exception of apple breeding with
DAFWA (AP08019), those conventional breeding projects involving State Government agencies
will not be continued (viz. AP04004, AP08041; AP09036). However, the investment to date by all
parties is substantial and promising germplasm has been identified. It is therefore proposed that
where possible on-going activities to further develop and evaluate potential germplasm will
continue with apple and pear industry co-investment.
Apple and pear improvement currently operate independently - All of the disciplines, infrastructure
and challenges in developing new germplasm are common for both apples and pears. There is a
need to integrate these activities.
Variety evaluation is not well integrated with rootstock development – In the present activities and
third-party interactions there is no need to integrate variety and rootstock evaluation. However,
environmental and field evaluation will need to ensure that putative varieties are compatible with
high production planting systems. The correct combination of scion and rootstock germplasm
may be the key element in developing commercially successful releases.
Access to pre-breeding and genetic approaches is limited - To date all activities relating to
molecular biotechnology are those designed to be used as breeding tools (such as markerassisted selection). Dynamic on-going conventional breeding is likely to increasingly rely on
embedded biotechnology approaches. Direct genetic modification (to produce GMOs) is
presently considered outside the scope of the RD&E program; however, future investment in this
area will be assessed from time to time.
Commercial considerations do not yet provide a strong feedback loop - Consumer and business
feedback, acquisition to third-party germplasm and strategic planning for variety release are all
considerations that will greatly influence priority-setting in the germplasm development pipeline.
Breeding and selection activities must be integrated with commercial plans.
Commercially-aligned participants are not closely integrated - PrevarTM, APFIP and Coregeo
Australia are all commercial businesses who are major participants in the RD&E portfolio. Each
business has APAL as a key or sole investor and, therefore, represented on the various Boards of
Management and Steering Committees. These businesses are the combined way in which the
program interacts with external businesses (including apple and pear growers); in effect they
negotiate the “route-to-market”. Inside the program they interact with the RD&E agencies (e.g.
DFAWA, DPIV) in arranging for commercial release of new germplasm. It is essential that where
the interests of the Australian apple and pear industry are implicated these businesses plan
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
together whilst at the same time being free to develop their own business approaches and
strategies.
6.3.3 New strategy 2010-2015 - Germplasm Improvement
In New Horizons 2015 it is noted that the timely introduction of new varieties to meet changing
consumer demands and provide novelty in the market-place has greatly benefited industry to date.
The transition of Pink Lady TM to a major global variety is the exemplary case study.
Further, New Horizons 2015 identifies that one of the main strategies to stimulate domestic demand is
variety improvement (BOX 4). The justification for placing germplasm improvement as a high priority is
equally applicable for both apples and pears.
BOX 4
1.4 Facilitate variety transition
1.4.1 Maintain investment in a variety development program.
The strategic requirement of the apple and pear industry for 2010-2015 in the investment area of
germplasm improvement is to integrate activities into a coordinated program. This will help provide
critical mass and resources and impart strong commercial direction with improved decision-making. A
promising strategy (exemplified by PIPS; see Section 6.1) involves bringing together all existing and
new projects into a coordinated program. Such a proposal, termed “Apple and Pear Variety
Improvement Program” (VIP), is outlined in BOX 5 and represented diagrammatically in FIGURE 5.
BOX 5
VIP - a proposed integrated approach to germplasm improvement (also see FIGURE 5)
Structure
The VIP program would be overseen by a management team, formulated by representatives of
the key stakeholder partners, and charged with its strategic management and a dedicated
budget. They would employ a program manager to ensure the quality, coordination and delivery
of agreed milestones. The RD&E activities of each of the component apple and pear projects
would operate in parallel and be led by individual project leaders reporting to the program
manager.
External interactions (see FIGURE 5 for details) will be essential to the successful operations of
VIP. These interactions will need to be brokered by project staff and the program manager with
endorsement from the management team. One key area of interaction will be between VIP and
the APAL/HAL market research program to assess consumers’ needs and specifications.
Integrated activities
With the exit of DPIV as the pear breeding partner (including their on-going evaluation of
germplasm) an alternative partner will need to be identified. Whether this breeding activity (i.e.
continuation of AP09036) can be absorbed by existing participants (e.g. DAFWA), with
appropriate resourcing, or can be contracted to a third-party needs immediate assessment by the
VIP management team. The arrangement, including funding, for on-going evaluation of
promising pear lines will be negotiated with DPIV and be included in the overall five-year budget
for VIP. This activity would readily become an extension of the APFIP pear evaluation project
(AP08002) which is presently scheduled to end in 2013 and with the pre-commercialisation
activities for two potential pear varieties being developed by Coregeo, Australia (AP09026).
Similarly, although QDEEDI will exit from apple breeding (AP08041) the on-going evaluation and
pre-commercialisation steps for promising material needs to be negotiated with a view to
embedding the activities and budget into VIP. Further, a satisfactory strategy to maintain a
repository of the germplasm needs to be devised.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
BOX 5 (continued)
VIP- a proposed integrated approach to germplasm improvement
On-going evaluation of elite apple rootstock material from IINSW’s woolly-aphid resistant
program (AP04004) is necessary. It is proposed that the VIP management team analyse the
need to embed this requirement alongside a comparative evaluation of a series of international
rootstocks that show promise. The resultant RD&E project will be commissioned in 2011. The
integration of any commercially-viable rootstocks into the existing APFIP multiplication program
would be an obvious extension of these activities and those currently underway by APFIP for
pear rootstocks in AP10016.
Those on-going elements of the Australian National Apple Breeding Program (AP08019) at
DAFWA that are supported by APAL/HAL will need to be integrated into VIP for commencement
in 2012.
Commercialisation issues
All commercialisation activities will need to be overseen by the VIP management team.
The PrevarTM project (AP09035) began in 2009 and will finish in early 2014. The Coregeo
Australia project (AP09026) began in January 2010 and will also end in 2014. The APFIP project
presently under development (AF10000) will commence in July 2010. These three activities
represent the major co-ordinating component of this integrated VIP project and offers scope to
re-investigate how APAL efficiently interacts with these businesses on behalf of industry. It is
acknowledged that whilst the objective is for PrevarTM, Coregeo Australia and APFIP Ltd to work
and plan together at the same time they are free to develop their own business approaches and
strategies.
Without doubt the proposal outlined in BOX 5 is both ambitious and complex. The nature of individual
projects, their contracted outputs and timeframes are not synchronized and the current stakeholders
are at different stages of planning. Therefore, it is proposed as an interim action to establish a small
implementation working group to analyse the scale, scope and best possible way of staging any
integration of projects and activities. This working group would use the issues articulated above and
the proposed VIP structure as a model for developing an action plan agreed by all relevant
stakeholders. The plan would need to be ready for implementation in November 2010 so as to
coincide with the main funding cycle.
6.3.4 Key performance indicators – Germplasm Improvement
By the end of the 5 year period:
Pear breeding is an active part of the program
The fate of promising germplasm from previously supported breeding and selection programs
undertaken by various State providers has been successfully negotiated
The majority of targeted growers (>75%) are satisfied with the approach and the level of
investment into germplasm improvement
The level of investment and leverage is delivering the targeted outcome of introducing new
varieties for industry-wide use
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
FIGURE 5 – Representation of the possible structure and activities of VIP, including
interaction with external parties
Apple and Pear Variety Improvement Program (VIP)
2010-2015
Integrated Project combining leadership & resources (from APAL/HAL and from coinvestors) from a suite of Apple and Pear existing and newly-commissioned projects
Apple and Pear VIP Management Team
Stakeholder reps: APAL, HAL, PrevarTM,
APFIP, Coregeo, DAFWA, DPIV, QDEEDI &
selected others
Role: Strategic program management
Objective: Integrated development and
introduction of new cultivars & rootstocks for
Australian growers
Projects to be integrated
AP04004 Breeding woolly aphid resistant dwarfing
apple rootstocks (reformulated on-going activities)
(IINSW)
AP08002 Pear variety evaluation & certification
(APFIP)
AP08019 Breeding novel apple varieties to deliver
benefit to the Australian Industry (DAFWA)
AP08041 Creating wealth...with consumer-preferred
scab resistant apple selections (reformulated ongoing activities) (QDEEDI)
AP09026 Commercialisation of Pear varieties
(Coregeo)
AP09035 Development of new pome fruit products
(PrevarTM)
AP09036 Perfect Pears- National Pear Breeding
Program (reformulated on-going activities) (DPIV)
AP10016 Pear rootstock trial (APFIP)
AF10000 Australian Pome Fruit Improvement
Program (APFIP)
Program Manager
Delivery of milestones
Coordination of activities
Recruited by and reports to
stakeholder Management Team
Apples
External to Project; including
business activities of Stakeholders
Market Research
consumer patterns
market & sales trends(Australia &
global)
(parallel APAL/HAL program)
Pears
Germplasm Acquisition
Conventional breeding
Selection (cultivars & rootstocks)
Access to licensed varieties
Field Evaluation
productivity
regional performance
rootstock compatibility
Fruit Evaluation
quality, taste
postharvest performance
consumer testing
Pre-commercialisation
variety characterisation/protection
certification of planting material
logistical bulk-up planning
route-to-market analysis
Pre-breeding Research
enabling tools/technologies
(contracted partners)
New Cultivars/Rootstocks
3rd Party germplasm owners
(pay a fee-for-service)
Field sites & expertise
Contracted Growers
(receive a fee-for-service)
Consumer evaluation
organoleptic assessment
(contracted partners)
Plant Health
heat treatment/quarantine services
(contracted partners)
Commercialisation
partners & alliances compatible
with stakeholder network
markets & sales (Australia &
global) undertaken by selected
businesses (e.g. nurserymen)
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
6.4 Market Access and Biosecurity
6.4.1 Background analysis
“Market access’’ and “biosecurity” are frequently used terms but often in a poorly defined way. The
terms are usually used in reference to the adequate control of pests and diseases thus allowing the
free movement and trade of fruit (and other commodities) across borders.
In the context of the apple and pear industry, the main market access concerns usually relate to
facilitating exports to overseas markets; although there is also a component related to interstate trade.
By contrast, sometimes the imminent importation of fruit into Australia is considered a market access
issue (e.g. fireblight). The term “biosecurity” is usually used in the context of managing the risk of
incursions or outbreaks of pests or diseases and may encompass activities related to prevention or
amelioration.
The interaction and co-funding between industry, HAL, government and the RD&E community in the
area of market access is notoriously complex and difficult to negotiate. Moreover, there are inevitable
funding shortfalls that have a major impact on the maintenance of the appropriate skill base and
infrastructure which frequently results in the need to refocus priorities.
Recent structural changes have occurred in an attempt to streamline this process of addressing
market access issues.
The Office of Horticultural Market Access (OHMA) was established by HAL in September 2009,
replacing the Horticultural Market Access Committee (HMAC), to drive the delivery of market access
outcomes for industry via:
developing industry relationships in the target market
supporting and contributing to official negotiations
supporting and guiding market access R&D (viz. planning, fund negotiation, prioritising,
monitoring and reporting)
The Office of Horticultural Market Access is funded from the across-industry program and multiindustry projects, using levy funds and matched funding from the Australian Government. The apple
and pear industry have an on-going generic investment in market access as a whole-of-industry
contributor. Based on “The Horticulture Market Access R&D Strategic Plan (2009-2014)” the
investment is targeted broadly at:
“Systems Approaches” - regional and cross-regional activities focussed on pest data packages,
pest free areas, area wide management and areas of low pest prevalence; and
“Postharvest Disinfestation” – including cold disinfestation and finding alternatives to dimethoate
and fenthion
Single-industry (e.g. apple and pear) market access and biosecurity RD&E projects are not considered
within the scope of the above market access plan. Rather they are considered separately on a needs
basis by industry and HAL. Such projects may include those that are more oriented to specific growing
regions/districts or to on-farm practices and may involve agencies such as Plant Health Australia
(PHA) or the Cooperative Research Centre for National Plant Biosecurity (CRCNPA).
6.4.2 Past and current projects
The area of market access and biosecurity has, in the past, represented a large proportion of the apple
and pear industry’s RD&E investment. The recent and current RD&E portfolio encompasses more
than twenty different projects in the following broad areas (although there is some cross-over when
presented in this way):
1. Fruit fly management
- AP06006 Alternative fruit fly management for market access for apples
- HG06040 Optimal irradiation procedures for sterilization of Queensland fruit
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
MT06025 Developing female lures for improved market access
MT06041 Trapping to better predict and prove fruit fly presence
MT08036 Ecology and pre-harvest control of fruit flies for systems approaches to market access
for fruit fly host commodities
These five projects are all focussed on managing fruit fly “in the field” in order to control, minimise or
prevent incursions and thereby optimise market access. The first three listed projects have been
completed and the last two finish in early 2011 and 2012 respectively.
2. Export Market Access
- AP06047 Cold treatment of apples, pears and nashi against Q’fly for access to Taiwan
- AP07050 Improving shipment protocols to Japan
- MT07015 Tasmanian Pest Incursion Monitoring
- MT09021 Improving China Market Access for Australian horticultural products (pending)
- MT09073 Aus/China Market Access Seminar 2009
- AP07011 & AP10009 MRL risk analysis for major export markets of the pome fruit industry
These six unrelated projects address different issues that might impact on export market access. The
last project, involving AFFCO, is on-going until June 2013 and involves collation of data with regard to
pesticides and residue limits that may affect exports, particularly of Pink LadyTM to the UK and Europe.
3. Biosecurity and incursion protection
- AP06013 Enhanced specificity of fireblight diagnostics for improved incursion response
- AP07051 Identification of the transfer pathway for E. amylovora on fruit
- MT08044 Future Surveillance needs for bee biosecurity
- MT09026 Protecting pollination for the Australian horticultural industry Stage 2
- AP07024 Implementation of the Apple and Pear Industry Biosecurity Plan
- MT06032 Enhanced Biosecurity risk analysis tools
- AP08061 Technical response to Import Risk Assessment (IRA) for Chinese apples
This suite of projects was undertaken to address specific biosecurity issues that have arisen of recent
years. The first two projects concern the issue of fireblight and the next two projects target bees as
pollinators. The following two projects are broader in scope and address on-farm and regional plans to
moderate or respond to invasive risk. The last project represents a technical response to a specific
market import proposal.
4. Strategic Investment
- AH07002 HAL market access coordination
- AH07003 Market access support program
- MT09028 Strategic whole of industry approach to market access R&D - Stage One
-
The first two projects represent the apple and pear industry’s contribution to the resources, skills and
infrastructure required to operate the market access program (through the outgoing HMAC) up to June
2009.
OHMA will be setting a
The last project listed above (MT09028) represents the apple and pear
new strategic and
industry’s contribution to an across-horticulture project designed to begin the
operational
staged implementation of the current 2009-2014 Market Access R&D Plan.
Importantly, it is OHMA that selects the individual projects that are
direction…..HAL
undertaken at any given time based on their adjudged priority. However, in
this time of transition accompanying the creation of OHMA, the selection and implementation of the
appropriate RD&E portfolio has yet to be made. OHMA is currently investigating the need to reestablish a skills-based working group to help facilitate priority setting within this overall plan.
Specific issues likely to be of benefit to the apple and pear industry in the above program include: area
wide management systems for Light Brown Apple Moth; cold disinfestation of fruit fly; data packages
for cold tolerance of tropical fruit flies; replacement strategies for dimethoate and fenthion; and the
preparation of a joint submission to Food Standards Australia & New Zealand (FSANZ) for approval to
utilise irradiation as a phytosanitary measure.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
6.4.3 New strategy 2010-2015 – Market Access and Biosecurity
The action items shown in BOX 6 were identified in New Horizons 2015 as essential elements needed
to achieve the dual goal of enhancing productivity and expanding export markets.
BOX 6
1.2 Enhance orchard productivity and management
1.2.3 Maintain research in biosecurity issues to minimise the impact of pests and disease
2.3 Resolve technical market access issue in target markets
2.3.1 Define technical and commercial market access issues in key export markets.
2.3.2 Support and participate in negotiations and invest in research as required to improve
market access for Australian apples and pears to target markets.
In 2009/2010 approximately eight diverse project proposals were received in this area of market
access and biosecurity. All were put on hold for the time being until a review of this portfolio area has
been undertaken. Currently APAL has commissioned a review by an independent technical advisor
working in concert with OHMA to:
1. Collate the past and current (on-going) investments by the apple and pear industry
2. Summarise the current market access status of the industry
3. Identify the market access restrictions for potentially new export markets
4. Identify potential emerging market access restrictions for the existing markets
5. Using the above, undertake a needs analysis to determine the R&D priorities
The outcome of this review will be critical as a guide to the future investment and priorities for the
apple and pear industry in market access RD&E over the period 2010-2015. In addition, the review
will help identify that part of the investment which is best served by an across-industry approach and
that which is best undertaken directly as industry-specific projects.
Activities relating to on-farm biosecurity and risk management will increasingly be addressed as part of
the industry development portfolio in an extension capacity (see Section 6.6.3). However, where more
regionally-based biosecurity measures are concerned, it is anticipated that the development of risk
management tools and training activities will be on-going throughout the five year life of this plan. Both
PHA and CRCNPA are potentially on-going RD&E partners in this area.
6.4.4 Key performance indicators – Market Access & Biosecurity
By the end of the 5 year period:
The apple and pear industry’s contribution to the across-industry program has been invested into
priority areas and the RD&E is operational
Specific apple and pear industry projects have been identified and a planned program of
investment is underway
Application of RD&E outputs has helped gain access to additional export markets
6.5 Market Research
6.5.1 Background analysis
Domestic Markets
According to ACNeilsen Homescan Australia, Australian consumers in 2009 reduced the number of
shopping days for apples and their overall spend by about 5% compared with the previous year. This
loss of customers could be traced to a switch to other fruit products (e.g. table grapes and cherries).
The overriding reasons given by consumers for switching from apples was a combination of boredom
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
and perceived low quality. The effort to create a higher profile link with health benefits is making inroads but is yet to have any perceived impact on buying patterns.
The situation for pears is similar but worse. The annual drop in domestic sales for pears in 2009 was
9%. Even though pears are bought by consumers infrequently they suffer from a certain disinterest as
a fresh fruit and consumers need assistance when judging ripeness. Marketing attempts to overcome
this image will focus on the versatility of pears as fresh food.
Export Markets
The apple and pear industry has only a minimal profile in export markets and lacks a committed export
culture.
Australian apple exports fall into two classes: high value branded Pink Lady™ sent to the United
Kingdom; and commodity style apples exported to India, Malaysia, Taiwan and Asian markets.
In recent years, largely due to competition on price and unfavourable exchange rates, the volume of
Australian exports has significantly decreased; by 91% for apples and by 74% for pears (TABLE 7).
This small and declining export performance is a major strategic weakness facing the industry.
TABLE 7 – Australian exports of apples and pears in 2000 & 2008
Export Apples
Export Pears
Year
Tonnes
% of
Production
Tonnes
% of
Production
2000
36,700
~8%
19,908
~12%
2008
3,353
~1%
5,517
~4%
Decline %
~91%
~74%
6.5.2 Past and current projects
The recent and current RD&E portfolio in the area of market research encompasses five projects,
basically split between a domestic and an export focus. They are:
1. Domestic Market
- MT07065 Consumer tracking study
- MT10017 Driving Demand Growth through Understanding Consumer Purchase Behaviour
(Retail Scan & Homescan Analysis)
These projects represent the on-going activities in tracing consumer behaviour, now largely focussed
on obtaining ACNeilsen data from retail outlets and involving consumer focus groups.
2. Export Market
- AP07048 Assessment of bulk export shipments of Pink lady to UK
- AP09044 USA Import risk assessment for Apples
These projects represent discrete activities to explore export markets and identify aspects of the
shipping process that affect fruit quality
3. Both Markets
-
MT07036/08015 Whole-of-industry data collection export/import and domestic trade
This across-industry project involves the acquisition, analysis and reporting of horticulture industry
import and export data and domestic market trade data. Quarterly reports typically include Australian
export volumes versus imports across different trade partners. Domestic sales trends are displayed
across retail and independent markets as well as providing consumer behaviour data on purchase
frequency, volumes, value and market penetration.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
6.5.3 New strategy 2010-2015 – Market Research
The challenges, objectives and action plans identified in New Horizons 2015 that address market
research are numerous and specific (BOX 7). Clearly, in accordance with New Horizons 2015 there is
a need to undertake a series of activities related to market research in both a domestic and an export
setting.
BOX 7
1.1 Improve consistency of product quality to match consumer expectations
1.1.2 Establish a baseline of consumer perceptions of the eating quality of Australian apples and
pears and monitor changes.
1.3 Coordinate industry product promotion and marketing programs
1.3.3 Research and monitor changes in consumer attitudes towards Australian apples and pears
2.1 Define and understand overseas markets that offer profitable export opportunities
2.1.1 Engage with Australian apple and pear exporters to prioritise target markets, design and
conduct in-market research
2.1.2 Provide information and tools to enable growers to understand potential export
opportunities and identify pathways to participate
2.1 Develop collaborative approaches to enter and expand selected export markets
2.2.1 Engage with exporters to prepare marketing plans for apple and pears for each target
markets
2.2.2 Work with the major Australian fruit exporters to develop and implement collaborative
market initiatives for each of pears & apples
2.3 Resolve technical market access issue in target markets
2.3.1 Define technical and commercial market access issues in key export markets.
2.3.2 Support and participate in negotiations and invest in research as required to improve
market access for Australian apples and pears to target markets.
2.4 Monitor export market competitor activities
2.4.1 Conduct in-market research and establish systems to understand and monitor key existing
and potential overseas competitors for the domestic or targeted export markets for apples
and pears
New strategies and specific projects in these areas are being developed and co-ordinated separately
from this RD&E plan through the Domestic Marketing Operational Plan and the Export Marketing
Operational Plan.
However, the preferred approach is to undertake consumer market research activities in the context of
supply chain studies; not in isolation. Consequently, in this RD&E plan, there is a proposal to embed
some consumer research and the prospect of pilot-testing an “Aussie Apple” brand into the project
tentatively entitled: “Tree to Table: Sustainable Supply Chain Analysis for Apples and Pears” (Section
6.1.3).
6.5.4 Key performance indicators – Market Research
By the end of the 5 year period:
Through the implementation of the domestic market plan the key requirement and concerns of
consumers have been identified
Consumer issues are being actively addressed in the relevant components and projects
embedded within the RD&E plan
Export market analysis has helped identify and prioritise discrete RD&E projects or approaches
to be undertaken in existing projects
RD&E outputs have assisted the Export Marketing Operational Plan achieve its objectives
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
6.6 Industry Development
6.6.1 Background analysis
Industry development has been defined by HAL as “the process of informing and empowering those in
horticulture to make better business decisions”. Implicitly, it is a process of knowledge transfer to
ensure adoption of RD&E at a practical level. Throughout this plan the term “extension” is used to
denote this activity but it is acknowledged that the more contemporary term “practice change” is
gaining currency.
As another component of its strategic planning, APAL has recently undertaken a comprehensive
consultant-led study entitled “Apple and pear industry development needs analysis”. This key study
(referred to hereafter as IDNA) analysed industry development activities in their widest context,
including: dedicated extension and technology transfer projects and personnel; general grower
interaction involving information transfer; and APAL leadership and communications.
Overall, the conclusions of the above IDNA study set a challenge for the apple and pear industry to
better focus, integrate and re-invigorate efforts and processes in the area of industry development.
With the exception of the “Future Orchards 2012” program, the overall benefits of other activities in
this area were considered somewhat elusive.
The above study focussed in on four key recommendations:
1. Integrate and focus investment. Industry development investments should be an integrated
program aligned with the industry’s strategic plan New Horizons 2015 rather than a series of
loosely connected activities and success should be measured using performance indicators. This
will involve appropriate re-allocation of resources.
2. Network with private advisors. The industry should facilitate under-utilised private advisors with
the aim of creating a network which actively engages with growers through the RD&E program.
3. Ensure all RD&E projects in the portfolio contribute to industry development objectives. All
projects seeking funding must demonstrate integration, avoid duplication and contribute to the
industry’s overarching industry development goals. Existing projects should be reviewed to assist
in and ensure their alignment to industry objectives.
4. Redesign and coordinate industry development initiatives. In line with the above, there is a need
to restructure the way industry development services are formulated, managed and delivered
through the establishment of a National Coordination Panel with broad stakeholder
representation.
6.6.2 Past and current projects
According to IDNA the industry in 2009/10 will invest about $1.3m into dedicated industry development
initiatives (and more if embedded activities in individual RD&E projects are considered). It was
estimated in IDNA that these projects represent about 16% of the overall annual RD&E budget.
The major single supplier of these industry-funded services is APAL itself
(~42%). State-based grower organisations (in Queensland, Western
Australia, Tasmania and Victoria) account for about 32% of the funding,
largely through matching of voluntary contributions. The private consortium of
growers and affiliates represented by the AFFCO is another major provider of
industry development services utilising about 20% of available funds.
In 2009/10 16% of HAL
funds were invested on
industry development
The recent and current RD&E portfolio encompasses in the order of twenty different projects, in the
following broad areas:
dedicated technology transfer personnel (sometimes called Industry Development Officers)
people development
specific issue-based technology transfer/industry development projects
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
conferences & industry communications
data collection and analysis
It should be noted that some of the more general industry development activities are funded under the
umbrella APAL/HAL partnership and consultation agreements.
6.6.3 New strategy 2010-2015 - Industry Development
By far the greatest number of key and specific objectives highlighted in New Horizons 2015 is in this
area of industry development (BOX 8).
BOX 8
1.2 Enhance orchard productivity and management
1.2.1 Evaluate next steps for Future Orchards 2012 and re-focus the program to accelerate
adoption of high density orchard systems and broaden its scope to link information from the
supply chain including consumers.
1.2.4 Ensure the early adoption of new technology:
(i) Ensure adequate resources are applied to the extension of research and development
programs
(ii) Educate suppliers with regard to benefits of adopting new technology/knowledge
1.4 Facilitate variety transition
1.4.2 Establish an industry knowledge base on annual production and the sales and pricing
trends of each apple variety and provide access to growers.
1.5 Enhance industry value within the community
1.5.1 Advance environmental sustainability and promote what industry is doing and achieving (iii)
Undertake environmental initiatives on basis of audit and subsequent action plans.
2.1 Define and understand overseas markets that offer profitable export opportunities
2.1.2 Provide information and tools to enable growers to understand potential export
opportunities and identify pathways to participate.
2.1.1 Engage with Australian apple and pear exporters to prioritise target markets, design and
conduct in-market research
2.2 Develop collaborative approaches to enter and expand selected export markets
2.2.1 Engage with exporters to prepare marketing plans for apples and for pears for each target
market.
2.2.2 Work with major Australian fruit exporters to develop and implement collaborative market
initiatives for each of pears and apples.
3.1 Match service delivery to changing grower and industry requirements through
evolving national industry association structure and streamlining activities and programs
3.1.1 Conduct annual independent research to monitor grower needs and satisfaction with
industry services.
3.2 Improve the quality and flows of information for decision-making across the supply
chain
3.2.1 Conduct an independent national survey of orchard businesses to establish a reliable
baseline data on physical characteristics and farm financial performance to assist investment
decisions in R&D, marketing and policy
3.2.2 Produce an implementation plan to deliver the outcomes of the industry development
needs analysis
3.3 Invest in leadership and people development
3.3.1 Prepare development plans to deliver:
(i) greater leadership capacity
(ii) improved skill development across the supply chain
3.3.2 Implement the leadership and skill development plans and promote participation across the
supply chain
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
Both New Horizons 2015 and the IDNA attach a high priority to industry development activities as a
means of achieving the industry’s strategic objectives and rolling-out past and future research
outcomes. It is, therefore, imperative that this priority investment area receives a much greater
emphasis, stronger planning, better coordination and more resources. Improved ways of engaging
with growers and supply chain participants and better utilisation of private advisors (input suppliers,
agronomists and agri-business consultants) are needed.
The new strategic approach during 2010-2015 will involve a number of complementary priorities.
New Extension Network
There is an urgent need to integrate activities across the different States and the various industry
associations into a single network; all aligned to achieve the overall objectives of New Horizons 2015.
In addition, IDNA has identified a changing trend in the way growers’ access information to guide their
businesses. As State government departments continue their withdrawal as extension providers,
growers are increasingly engaging private advisors and others across the supply chain to provide
professional advice and support.
Three broad approaches, operating in parallel, need to be addressed under
the auspices of a newly-constituted National Coordination Panel which will
Integrate and focus…
have broad stakeholder representation. The approaches involve:
industry development
1. Reconstituting existing projects. The personnel and relevant activities
activities …IDNA
of the following projects (and any renewals) operating across Australia
will be restructured as an integrated whole:
AP08039 Apple and Pear industry Technical Officer
AP08027 Facilitating the Development of the Queensland Apple Industry
MT06067 Technology transfer in the Goulburn Murray pome fruit industries
AP06020 Facilitating the development of the Western Australian Pome Fruit Industry
MT07058 Combined FGT, CGA Industry Development Officer
MT09047 Continued facilitation of the Development of the Tasmanian A&P, cherry and
stonefruit industries
2.
3.
DPIV, the largest State Government co-investor in apple and pear RD&E, has established a
Horticulture Industry Network (HIN) with its industry partners; this is a possible model for how the
re-structure might develop a more collaborative approach. TIAR is also currently reviewing its
approach to extension.
New engagement with private advisors. The network of extension providers needs to expand
beyond those provided by industry associations themselves. Private advisors and supply chain
operators need to be more closely encouraged and fostered to engage with the RD&E portfolio.
In this way they could provide a more contemporary conduit for the flow of information to
industry. How this is achieved needs further analysis but again, DPIV’s planning may provide a
model. DPIV is presently actively exploring this approach by creating a Horticulture Service
Provider Network (HSPN) as a way to disseminate knowledge and services.
Development of extension packages. The new extension network, under the auspices of National
Coordination Panel, will be responsible for formulating an on-going industry development
program. As a starting point they will examine, in detail, past and present RD&E projects in order
to ensure that appropriate extension/technology transfer activities are undertaken. In addition,
where major RD&E projects are underway or newly-formulated, it is imperative that an extension
component/package is built into the program and interacts with all of its activities; for example as
is the case with the current PIPS project (Section 6.1). Two current areas are a priority for the
development of contemporary national extension packages in partnership with appropriate
technical experts. They are:
i. the roll-out of an Integrated Pest Management (IPM) package utilising the recently produced
IPM and Biosecurity Manuals as the focal point. The package will investigate the creation of a
web-based IPM tool incorporating a diverse range of information assembled as databases and
predictive models.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
ii. the investigation and adaptation of an irrigation-scheduling package utilising the CSIROdeveloped irriGATEWAY server in collaboration with the PIPS project. To facilitate this, a coinvestment project with regional water authorities or other bodies as potential funding sources
should be investigated.
People and Leadership Development
A frequent theme across the whole of the horticulture industry is the vulnerability that results from not
attracting and developing innovators and future leaders. This major area of planning for the future
needs of industry has only been addressed in past RD&E portfolio in a limited way, and largely on an
ad hoc basis. The following are the only current projects:
- AP06042 Leadership Development: Young Grower Scholarships
- AP07047 Nuffield Farming Scholarship
- AP10007 Study tour to visit European apple tree physiology experts and attend the IHC in Lisbon
The effectiveness of any RD&E program requires a partnership between specialists and practitioners.
In addition, these partnerships are most effective when the participants are actively embracing their
career objectives and striving towards excellence.
It is proposed to enhance people skills and leadership capacity by formulating a high profile project to
encourage and support the participation of keen individuals. The proposal, led by APAL, will develop a
three-tiered approach and, at each level, involve both an industry practitioner (selected from growers,
supply chain operatives etc) and a RD&E practitioner (selected from science, technology, extension
etc) as a pairing. Thus, there would be three pairings targeted at:
1. Tertiary honours student in practical-oriented horticulture & another in horticultural
science/research career; their incentive would be in the form of a scholarship to separately (or
together if possible) undertake a short study in an area of pioneering interest to the apple and
pear industry;
2. Young grower/industry practitioner & junior RD&E researcher/extension worker; selected
recipients would be asked to travel together to visit key research establishments, pome fruit
growing regions and/or conferences with the view of comprehensively reporting back on key
findings and assisting in on-going project formulation on selected subject areas;
3. Senior grower/industry practitioner & senior RD&E project leader; similar to above but with the
additional objective of formally representing industry, perhaps in a negotiating role, and being a
participant on a relevant industry body or committee.
On-going negotiations to remain an active party in the Nuffield Farming Scholarship will be an
additional activity in this activity of people and leadership development.
Another important way to encourage people to engage with the apple and pear industry is through the
involvement of tertiary training institutions. A largely un-tapped opportunity exists to lever partnerships
and funds with universities to engage students to undertake specified components of individual
projects. An example is provided by the embedding of a PhD project within the PIPS program.
Future Orchards - Beyond 2012
Future Orchards 2010
“Future Orchards 2012” is a landmark industry development project
…has been a huge
addressing both apples and pears. Conceived in 2006, the program will
success…Ipsos
complete its second term in October 2010. The overall objective is to provide
growers with a pathway to convert their orchards into internationally
competitive operations. The concept of this project is to engage grower participants in an on-going and
long-term manner focusing on specifically-managed orchard blocks throughout Australia. Activities
include close monitoring of blocks in terms of productivity, benchmarking data and performance to
world best practice, orchard walks and skills demonstrations.
To date there is considerable positive feedback from growers (e.g. national grower survey undertaken
by Ipsos Australia in April 2008) and this will be formally evaluated as an integral part of the project.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
The on-going strategy is to thoroughly analyse “Future Orchards 2012” as it nears the end of its term
with a view to reconfigure, rejuvenate and relaunch the program as “Future Orchards - Beyond 2012”
in late 2010. Any modifications or additions to the program will be formulated by the project
management team.
National Conference
In the past APAL have organised an annual national conference. In recent years it has been decided,
largely on the basis of declining participation, that holding this event each year is too frequent. In
addition, there is an element of competing interests with the annual event that is the AFFCO World
Class Workshop/Expo and with any State-based industry conferences that are occasionally held.
Beginning in 2012 the strategy will be to invest in only one national conference held every two years.
This event will focus on key elements of New Horizons 2015. It will provide the forum for addressing
progress towards meeting the key objectives of industry’s strategic plans and embrace detailed
reporting to industry in specific RD&E projects by key personnel. In addition, to complement the
program the conference will present influential key note speakers from around the world and be a
forum for individuals in the people and leadership development program (see above) to deliver their
viewpoint.
It is anticipated that this national conference will be undertaken in partnership with a variety of other
bodies where appropriate (e.g. AFFCO, State industry associations, and others). Participating groups
will be able to secure their own dedicated sessions or “break-out” groups as needed.
There are compelling reasons to go beyond Australia in seeking a partner to co-host the industry
conference. A specific objective would be to target a liaison with Horticulture New Zealand (HortNZ)
with a view to holding a combined Australia & New Zealand conference inaugurated no later than 2014
and perhaps held every 4 years.
Industry Data and Analysis
Gathering, analysing and communicating data and information along the supply chain is considered as
fundamental to achieve the industry’s strategic plan and has been identified as an area of high priority
in both New Horizons 2015 and IDNA. Industry data is useful both directly to growers and indirectly to
others as a planning tool for across-industry development (e.g. HAL, APAL, PHA).
There are five recent or current projects in the RD&E portfolio that address this issue, namely:
- AP08055 Apple and Pear industry Data and Analysis
- AP09048 APAL Cool Store Stock Reporting System Concept & Scope
- MT08015 Data Collection Program (continuation from MT07036)
- AP08038 Improved Crop Forecasting
- AP07010 AFFCO Well Informed Grower project - apples and pears
All of these projects have either recently finished or have only a short term to completion. It is clear
that elements of the first two projects above have been successful and are valued by industry in terms
of the data regarding cool-store stocks. However, other information such as crop production forecasts
in particular, is notoriously difficult to assemble, analyse and present to the whole of the apple and
pear industry. The Australian Bureau of Statistics (ABS), amongst others, is a key source of
information and industry statistics.
It is timely to restructure this work into a much more integrated, streamlined and effective program.
The overriding objective is the need to improve on-farm decisions, both of a strategic and an
operational nature. This will require access to contemporary data and analysis that includes the
following elements:
1. Crop forecasts by region and tracked throughout the season
2. Cool-store stocks based on varieties
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
3.
4.
5.
Pricing, volumes and sales forecasts across indicative domestic markets including the status of
competitive products
International developments, particularly of exporting nations
Benchmarking against similar domestic and international businesses
The strategy for the 2010-2015 period is to consolidate this work into a single “Apple and pear industry
Data and Analysis Program” (IDAP) that itself interacts with parallel programs under investigation in
the domestic market and export market programs (as in point 3 and 4 above) which is developed in
more detail in their respective 2010-2015 strategic plans (Section 6.5).
Under the leadership of APAL staff an IDAP project development team will immediately explore the
appropriate way to structure this program. A key element will be the identification of how and where to
access the fundamental data on crop production; from growers themselves or via ABS. There are
good prospects to explore this in the context of a “climate/sustainability” theme and on a co-funding
model with an industry/government partnership. It will be important to ensure that the cool-store stock
initiative remains functional.
Another immediate area of endeavour is the need to out-source a comprehensive industry survey, with
strict attention to confidentiality, to assess individual business characteristics (e.g. size, type, scope;
varieties grown etc) and financial performance across the apple and pear industry. This study is the
prime way in which a baseline of performance across Australia can be established. A parallel activity
would include a comparative assessment of international business/grower performance.
IDAP will bring all this data together with appropriate analysis so as to provide information to individual
growers on the one hand, and broad-spectrum users on the other, tailored to their different needs.
Industry Communications
Most of the above activities could be considered as industry communications
as well as industry development. However, in the context of this RD&E Plan
the following activities are presented for completeness; they are also the
subject of a more detailed Communications Strategy 2010/2015 that is under
parallel development.
APAL communications
are rated highly…by
growers…Ipsos
There are currently two main projects supporting dedicated industry communications. They are:
- AP08054 Apple and pear industry communications
- MT08043 Australian Fruitgrower Magazine – Apple and Pear, Summerfruit
The majority of apple and pear growers perceive the overall quality of APAL communications as “good”
(Ipsos Australia, grower survey 2008). However, there are mixed reactions to the usefulness, quality
and extent of the different communication methods utilised between APAL, the RD&E program and the
industry at large. Projects such as “Future Orchards 2010” with dedicated built-in grower contact are
receiving strong feedback with regard to the level of communications. The traditional methods of
general information flow via magazines, articles and now the APAL web-site have variable support.
The web-site in particular appears to have a very low profile with most growers even though growerdirected articles and information can be readily accessed from that site.
The strategy to refresh the approach to industry communications will involve an immediate
independent survey of growers throughout the industry. The intent of the survey is to assess the
grower needs and satisfaction with the provision of industry services. Results from this analysis will
then be used to adapt the channels and content of industry communications to fulfil expectations. It is
proposed that follow-up surveys will be instigated in order to monitor the success and effectiveness of
future communication activities.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
6.6.4 Key performance indicators – Industry Development
By the end of the 5 year period:
The majority (>75%) of targeted apple and pear growers should rate all industry development
activities highly and positively when their feedback is sought or reviewed
An extension network should be active and broadly utilised
Future Orchards should have a comprehensive plan of its on-going role and of the next
generation of activities and be undertaken with a high level of grower support and interaction
IDAP will be the mainstay of the apple and pear industry’s information sources and statistics
6.7 Portfolio Management
6.7.1 Background analysis
The apple and pear industry RD&E portfolio is managed by a HAL Industry Services Manager working
closely with the IAC. HAL’s Board receives recommendations on investment in each project from the
IAC. In the past, the selection of RD&E projects for funding support is largely based on responses to a
call for submissions. The IAC’s RD&E Sub-Committee, in partnership with HAL’s Portfolio Managers,
assess potential projects against annually-updated priorities linked to the objectives of the current
strategic plan.
The formulation and release of the apple and pear industry strategic plan New Horizons 2015 in March
2010 has re-set the agenda. In that plan the role of RD&E is considered critical in enabling industry to
meet its existing and emerging challenges. In response, it is timely to re-analyse the approach taken
to formulate and operate the apple and pear RD&E portfolio.
6.7.2 Past and current projects
The on-going and day-to-day costs of managing the RD&E portfolio are met by HAL (utilising levy
funding) and by APAL. In addition, a number of investments in individual projects have been made to
improve knowledge capabilities and to aid planning activities, largely on an issue-by-issue basis.
There are eight recent and current RD&E projects that are broadly grouped into 2 categories:
1. Investigating capabilities
- AP07021 FO2012 study tour Europe Jun 2008
- AP08047 Current research and growing techniques in Europe
- AP08051 Fireblight issues in Europe
- AP08053 Review of R&D capabilities in NZ
2. Planning and reviewing
- AP08059 Strategic Planning and Industry Development Needs Assessment for the Australian
Apple and Pear Industry
- AP08046 Development of a 5 year Business Plan for a National Apple and Pear Productivity
R&D Program
- AP09023 Industry Projects Return on Investment BCA (pending)
- AP09030 Strategic plan outcome projects
6.7.3 New strategy 2010-2015 – Portfolio Management
The principles and issues considered in re-focussing the RD&E program have been outlined in Section
5; broadly speaking they highlight the need for a more dynamic and comprehensive approach to
managing the portfolio. The activities involved in the on-going management and formulation of the
RD&E plan, like the projects within the portfolio themselves, need to be better integrated and more
strategic.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
The following activities, managed by the RD&E Sub-Committee, will be brought together in an
integrated project entitled: “Pro-active management of the RD&E portfolio”:
on-going priority setting, project and program development and evaluation of project submissions
dedicated monitoring of individual projects within each priority area; including a program of “infield” project reviews of current projects where it is considered practical and worthwhile
exploring and strategically analysing partner capabilities and potential opportunities in
conjunction with the National Horticulture Research Framework
understanding the issues and dynamics of overseas apple and pear industries and RD&E
establishments and programs
pro-actively interacting with RD&E co-investors, particularly by dedicated involvement in project
development and project management activities
program and project evaluation to be embedded within the planning cycle, including postimplementation evaluation of selected individual projects or sub-sets of larger programs as well
as pre-implementation assessments of potential projects (to include Benefit/Cost analysis as
prescribed by Council of Rural Research & Development Corporations' Chairs (CRRDCC)
Guidelines)
Integration of these activities into a single project represents a step-change in the operations of the
program and will require a significant additional body of work and commitment. To be fully operational,
it is estimated that an on-going annual funding allocation (perhaps up to 10% of the total annual RD&E
portfolio budget) will be needed to fulfil this function. Importantly, in undertaking this function the
management roles of HAL and the RD&E providers themselves must be taken into account to avoid
any potential for duplication or uncertainty.
6.7.4 Key performance indicators – Portfolio Management
By the end of the 5 year period:
The operational aspects of planning, implementation and evaluation of the RD&E portfolio will be
regarded as highly professional and understood by surveyed stakeholders
A suite of new projects will have been commissioned or developed under the guidelines and
approaches outlined in this plan
The evaluation of performance of the overall RD&E plan will have been critically reviewed with a
positive outcome; performance indicators for each investment priority area will be assessed in
this review process
A new five year RD&E plan will be developed and approved based on the present plan and
accommodating the review findings
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
7. Indicative Budgets and Risks
7.1 Indicative budget and allocation targets
There are a number of key features of the budget starting point for the 2010/11 financial year when it is
allocated according to the new priority investment areas described previously (FIGURE 6).
Firstly, the overall allocation of about $6.6m is greatly influenced by the onset of the large PIPS project
(see Section 6.1 Productivity & Supply Chain) and the start-up funds for the extension of the PrevarTM
project (see Section 6.3 Germplasm Improvement). These two projects dominate the RD&E portfolio
largely due to the high investment (as voluntary contributions) by New Zealand’s PFR alongside a
much smaller co-investment of levy funds.
The second key element of the starting budget is the high level of unallocated funds (14% or $0.94m).
These funds have been deliberately kept aside to await the development of this RD&E plan in order to
better guide the on-going investment.
The last notable feature of the starting budget is the absence of any current allocation into the Climate
Change priority area (although some aspects are covered in the PIPS project) and the absence of any
voluntary contributions into the more across-industry and “public-good” areas of both Market Access &
Biosecurity and of Market Research.
FIGURE 6 - 2010/11 Opening allocation into investment areas
(Total $6.6m; Levy $3.3m; VC $3.3m)
3,000,000
VC = Upper, dotted
Lev y = Bottom, solid colour
Allocation ($)
2,500,000
2,000,000
1,500,000
27%
20%
1,000,000
3%
500,000
8%
14%
10%
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0
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
In the 2011/12 financial year it is anticipated that the overall available funds will increase to $6.8m due
to a targeted increase in voluntary contributions despite a small reduction in levy funds (FIGURE 7).
FIGURE 7 - 2011/12 Allocation target into investment areas
(Total $6.8m; Levy $3.1m; VC $3.7m)
3,000,000
VC = Upper, dotted
Lev y = Bottom, solid colour
Allocation ($)
2,500,000
2,000,000
26%
24%
1,500,000
3%
1,000,000
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500,000
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An increased investment into the Productivity & Supply Chain area is expected largely through
expanding the PIPS project and staging the introduction of a new supply chain study (Section 6.1.3).
An allocation of 3% of the budget from levy funds will be targeted at a new integrated project in
Climate Change (Section 6.2.3).
The large allocation into Germplasm Improvement will remain at about the same level as the previous
year. A proportion of levy funds will be needed to accommodate transitional changes in the pear
breeding and germplasm repository activities (6.3.3).
The allocation of levy funds invested in Market Access & Biosecurity (Section 6.4.3) is the same as the
previous year. Similarly, the Market Research (Section 6.5.3) allocation is comparable with the
previous year but an emphasis on developing export market intelligence allows the scope to lever
additional voluntary contributions.
The Industry Development levy allocation will be substantially increased to represent 11% of the
overall budget. The forecast challenges outlined in Section 6.6.3 largely require a re-alignment and
integration of industry development activities to gain efficiencies and increased focus. It is planned to
re-launch the Future Orchards 2012 project utilising a similar level of funding as in previous years.
A bigger allocation, representing 8% of the forecast budget, has been targeted for Portfolio
Management (Section 6.7.3). These funds are especially important in the early years of this RD&E
plan as they are intended to be invested in the strategic analysis of a number of new projects areas.
These new projects will, in turn, be expected to identify appropriate funding sources and co-investment
opportunities.
The on-going allocation in subsequent years beyond 2012 is anticipated to remain in similar
proportions to that in 2011/12.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
7.2 On-going budgets
After the 2010/11 financial year it is expected that RD&E levy funds will decline. It is difficult to
precisely forecast the scale of any reduction in levies over the time frame of this plan; without doubt it
will occur in proportion to the impact that imported fruit has on Australian production. Any reduction in
Australian-grown fruit production results in a concomitant decline in available RD&E levy funds.
In many projects levy funds are used to lever additional contributions so it is anticipated that it will be
difficult to maintain the overall budget at 2011/12 levels. The challenge will be to keep the level of
voluntary contributions at high levels, perhaps by encouraging new private sector and/or international
institutions to co-invest in the program.
The overall forecasted budget for each financial year until 2015 is shown in TABLE 8.
TABLE 8 – Indicative annual fund availability between 2010 & 2015
2010/11
2011/12
2012/13
2013/14
2014/15
Levy
$3.3m
$3.1m
$3.0m
$2.8m
$2.6m
Voluntary Contribution
$3.3m
$3.7m
$3.6m
$3.5m
$3.5m
Total
$6.6m
$6.8m
$6.6m
$6.3m
$6.1m
The IAC RD&E Sub-Committee has the role to monitor and manage the budget to ensure the
appropriate and equitable allocation of funds into key priority areas. An area of challenge for this SubCommittee is to scrutinize the overall budget projections and help identify alternative sources for coinvestment into the RD&E program including international and additional Australian Government funds.
7.3 Potential risks
This RD&E Investment Plan has been developed to help the apple and pear industry address those
anticipated challenges outlined in New Horizons 2015.
However, within the next five year period, some changes are expected in the structure of the industry.
It is anticipated that the number of individual growers will fall and the industry could contract by
between 20 and 40% by 2015. This diminution is largely contingent upon the threat of imports and the
competition from other food types on the domestic market. Given that the resources available for
RD&E are largely dependent on, and levered from, the grower levy (see Section 4.2.2 & 4.2.3), any
reduction in overall production will invariably reduce this source of funds.
In addition, the present arrangements operating through the Australian Government and HAL model
are currently under review by the Government-sponsored Productivity Commission into Rural
Research and Development Corporations (announced February 2010; to be finalised in February
2011).
Amongst other things, this inquiry will examine the:
rationale for Commonwealth Government investment in rural research and development
appropriateness of current funding levels and arrangements - particularly levy arrangements, and
matching Commonwealth contributions
extent to which Rural Research and Development Corporations (RRDC) funded projects provide
for an appropriate balance between industry-specific and broader community benefits
effectiveness of the RRDC model in enhancing the competitiveness and productivity of
Australia's rural industries
scope for improvements to the RRDC model - and any alternative models that could deliver
better outcomes
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
Any change to the matching fund arrangements for either grower levied funds or voluntary
contributions would be expected to have a major impact on the strategic approach to the development
and operations of the forecast RD&E portfolio.
A major expansion of the industry into export markets is a present challenge facing industry. A
number of elements have been built into this RD&E plan in order to promote the development of this
export activity. However, increasing production dedicated for export is highly dependent on a
judgement by individual businesses of the profitability of this venture. After meeting efficient
production cost targets, perhaps the major factor influencing profitability is the international exchange
rate of the Australian dollar. The current rates and trends in the first half of 2010 are setting a high
barrier to entry into the export arena. At this time, future trends are not considered to become any
more favourable.
On-going risks for the apple and pear industry entail the nature of growing fruit and the availability and
cost of inputs. Notwithstanding, the impact of climate (particularly extreme heat events and drought)
the availability of irrigation water at a reasonable price is a constant concern. Of particular note are the
expected significantly reduced water allocations to be outlined in the Proposed Basin Plan from the
Murray-Darling Basin Authority to be released in August 2010.
The availability and dedication to the horticulture industry of a critical mass of experienced research
and extension staff is a constant and increasing risk. State Government agencies that provide RD&E
support are increasingly engaged in restructuring their priorities and resource allocations. This plan
attempts to offset this risk by working closely with NHRN to ensure longer-term shared commitments
and also by embracing other research providers, particularly those from universities and overseas
agencies.
Although not exhaustive, any one of the risks outlined above could have a major impact on industry
and thereby influence the successful delivery of the RD&E program outlined in this plan. Thus, it is
envisaged that this plan is a “living document” and may need to be amended and supplemented at
times throughout the five year period between 2010 and 2015.
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
8. References
8.1 Acronyms & abbreviations
ABS
ACIAR
AFFCO
APAL
APFIP
CCRSPI
CRCNPB
CRRDCC
CSIRO
DAFF
DAFWA
DIISR
DPIV
FSANZ
GMOs
HAL
HIN
HMAC
HortNZ
HSPN
IAC
IDAP
IDNA
IINSW
IPM
LCA
MARRS
NHRN
OHMA
PHA
PFR
PIMC
PIPS
PIRSA
PISC
QDEEDI
R&D
RD&E
RRDC
RIRDC
SARDI
t/Ha
TIAR
TTT
VC
VCA
VIP
Australian Bureau of Statistics
Australian Centre for International Agricultural Research
Australian Fresh Fruit Company
Apple & Pear Australia Ltd
Australian Pome Fruit Improvement Program Ltd
National Climate Change Research Strategy for Primary Industries
Cooperative Research Centre for National Plant Biosecurity
Council of Rural Research & Development Corporations' Chairs
Commonwealth Scientific and Industrial Research Organisation
Department of Agriculture, Fisheries and Forestry
Department of Agriculture and Food Western Australia
Department of Innovation, Industry, Science and Research
Department of Primary Industries Victoria
Food Standards Australia & New Zealand
Genetically modified organisms
Horticulture Australia Limited
Horticulture Industry Network
Horticultural Market Access Committee
Horticulture New Zealand
Horticulture Service Provider Network
Apple and Pear Industry Advisory Committee
Apple and Pear Industry Data and Analysis Program
Apple and Pear Industry Development Needs Analysis
Industry & Investment NSW
Integrated Pest Management
Life Cycle Analysis
Mechanisation, Automation, Robotics and Remote Sensing
National Horticultural Research Network
Office of Horticultural Market Access
Plant Health Australia
Plant & Food Research, New Zealand
Primary Industries Ministerial Council
Productivity, Irrigation, Pests & Soils project
Primary Industries and Resources, South Australia
Primary Industries Standing Committee
Queensland Department of Employment, Economic Development and Innovation
Research & Development
Research, Development & Extension
Rural Research and Development Corporations
Rural Industries Research & Development Corporation
South Australian Research and Development Institute
Tonnes per hectare
Tasmanian Institute of Agricultural Research
Tree to Table: Sustainable Supply Chain Analysis for Apples and Pears project
Voluntary Contributions
Value Chain Analysis
Apple and Pear Variety Improvement Program
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Apple and Pear Industry RD&E Investment Plan 2010-2015 - “Innovation making a difference”
8.2 Key documents
APAL Communication Strategy 2008-2011
Apple & Pear Breeding/Variety Development- Discussion Framework (Marian Sheehan, HAL)
Apple & Pear Industry Report 08-09 (APAL/HAL)
Apple & Pear project database 2009/10 (HAL)
Apple and Pear Industry Development Needs Assessment (Inovact Consulting/APAL)
Attitudes of UK supermarket shoppers towards wine purchasing (Andrew Fearne)
Australian Apple and Pear R&D Capability (Bradley Mills, HAL)
Horticulture Australia Limited Strategic Plan 2010-2015 (draft)
Horticulture Climate Change Action Plan (HAL)
Horticulture's Climate RD&E Matrix (Alison Turnbull, HAL)
Investment of levies for Australian Horticultural Industries (HAL)
Market Access R&D Plan 2009 (HAL)
National RD&E Framework for Horticulture (NHRN)
New Horizons 2015 - apple and pear industry Plan (APAL)
Options for Access to New Genetic Material for Australian Apple and Pear Growers – Business Case (APAL/HAL)
Rural Research and Development Priorities (DAFF)
Sustainable Value Chain Analysis: A Case Study of South Australian Wine (Andrew Fearne)
What you said about: APAL communications, the Future Orchards 2012 Program & Your orchards (Ipsos Australia)
World Apple Review - 2008 Edition (Belrose Inc.)
8.3 Key contacts
Lawrence
John
Dugald
Rob
Annie
Ian
Bob
Stuart
Richard
Kim
Jason
John
Matthew
Garry
John
Rowan
John
Bradley
Chris
Tony
Kevin
Lester
Michael
Michelle
Ugo
Alison
David
Bonney
Chapman
Close
Duthie
Farrow
Goodwin
Granger
Gray
Hawkes
James
Jarvis
Karl
Lenne
Langford
Lawrenson
Little
Magarey
Mills
Peters
Russell
Sanders
Snare
Stafford
Toft
Tomasel
Turnbull
Williams
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