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DPI Services to Horticulture Producers

Photograph of citrus fruit being processed

Horticulture at a glance

Foreword

Victoria’s horticulture industry makes a significant contribution to the state’s economy and communities. It has a farm-gate value of around $2.4 billion per annum and accounts for 44 per cent of Australia’s horticulture exports.

The Victorian Government – through the Department of Primary Industries (DPI) – provides a range of services to the horticulture industry to support its development. DPI’s primary role is to promote economic development in a way that supports environmental sustainability and community capacity to manage change.

This document, DPI services to horticulture producers 2011, outlines DPI’s strategic context and describes the services we provide to horticulture producers and their service providers. These include research, development, extension, regulatory and emergency management services. DPI also has a significant policy role that helps support and guide service delivery. This year’s plan has been developed with input from industry partners including an evaluation of the 2010 service plan.

 

Richard Bolt
Secretary Department of Primary Industries

DPI is strengthening the way we deliver services. Our Services to Farmers strategy is helping to ensure we provide targeted, accessible services that are relevant to the needs of farm businesses.

We are also building our collaborations with a range of other service providers including CMA’s, agribusiness, industry associations and other key stakeholder groups.

A National Horticulture Research, Development and Extension Framework has been finalised in the last year under the guidance of the Primary Industries Ministerial Council and Horticulture Australia. This strategy will see DPI focus service delivery on Victoria’s horticulture industry priorities as part of a coordinated national approach.

DPI will continue working closely with our stakeholders to ensure the horticulture industry is well-placed to meet present and future challenges and opportunities.

Introduction

To respond to industry challenges, producers need to adopt contemporary practices and business models and target new and emerging strategic markets. They require access to relevant information and services, when and where they need it.

DPI’s task is to focus our service delivery where a core role for government exists and to boost our collaboration with other service providers.

This document aims to clearly outline the context for DPI’s operations and describe the nine key services we provide to horticulture producers in 2011–12.

DPI has developed this document based on a thorough analysis of our role and expertise, as well as input from a range of industry stakeholders. The intent is to update this document regularly based on feedback and an evaluation of the previous years plan.

This document’s target audience is industry partners, other service providers and DPI staff. It has been designed to help clarify DPI’s role and help identify specific collaborative opportunities.

An environment of change

The demand for horticultural products is forecast to grow, although it is difficult to predict the short- to medium-term impact of global economic volatility and the impacts of policies that may restrict global trade in certain countries. Access to some key markets also continues to be restricted. On the other hand, the industry also has many opportunities to differentiate and add value to its products.

While horticultural production has grown steadily at almost three per cent a year since 1990, it is highly dependent on  seasonal weather conditions. Flooding and wet humid conditions played havoc with grape, fruit and nut industries throughout 2010 with major yield and quality downgrades impacting significantly on grower returns. With seasonal weather forecasts predicting  more ‘average’ conditions in the 2011/2012 season and with security of water assured in irrigated regions prospects are for better yields in 2011/12.

Despite this, increasing import competition and competition in export markets from fellow southern hemisphere producers make for challenging times.

Industry challenges and opportunities

The horticulture industry is adapting to and managing some significant challenges after a decade of dry seasonal conditions and recent heavy rainfalls and associated flooding.

Low productivity growth

Data on horticultural productivity is limited, however recent data <www.futurefocus.org.au> indicates that during the past 15 years some international competitors have achieved double Australia’s horticulture sector productivity growth.

Competition and differentiation in markets

Australia is a relatively small horticultural exporter, with most production targeted at a generally stable domestic market. Strong competition in international markets is expected to grow further, particularly from other southern hemisphere nations. The strong Australian dollar continues to hamper the competitiveness of Victorian horticultural products in world markets, and at the same time supports the competitiveness of imported products in the Australian market.

A significant opportunity to differentiate Australian produce exists by way of developing new varieties (e.g. the pink lady apple) and new technologies (e.g. packaging technologies). New business models are also emerging to capture benefits from these developments globally.

Climate variability and associated policies

Climate variability is predicted to have a significant impact on southern Australia. Implications for the horticulture industry include changes in frost frequency and severity which may result in lower yields and reduced fruit quality.

The risk of crop failures due to more variable/volatile growing conditions is also predicted to increase, affecting the industry’s ability to meet increasingly specific and targeted quality assurance/market requirements.

The industry may also be affected by policies to mitigate climate change, which are likely to result in higher energy, input and transport costs. Horticultural production is responsible for only about one per cent of total agricultural greenhouse emissions.

Competition for natural resources

The availability and quality of water, together with urban expansion pressures, are likely to pose challenges to the longer-term production of vegetables (particularly in the Werribee region). Limited water availability is also expected to be a continuing challenge for fruit and vegetable production in the Bacchus Marsh region and in northern Victoria.

Biosecurity risks

The Biosecurity Strategy for Victoria commits to protecting the state’s primary industries, environment, social amenity and human health from biosecurity threats. Maintaining and enhancing access to export and interstate markets through effective biosecurity management is essential for the sustainable growth of Victoria’s horticulture industry.

The industry faces a number of challenges, including the withdrawal of some chemicals used in product disinfestation, and pests and diseases becoming more resistant to some traditional chemicals.

Social change and labour shortage

The trend towards farm consolidation is projected to continue, with larger corporate-style family farms and declining rural town populations resulting in a shortage of labour for horticulture in some areas. This will be particularly evident during seasonal activities such as harvesting and pruning. The trend towards more reliance on mechanisation, remote sensing and automation is expected to continue.

Industry fragmentation

Diversity, both in terms of products/crops and their growing locations, is a distinguishing feature of Victorian horticulture. This means it is difficult to establish the critical mass to support investment in research and service delivery in some horticultural sectors.

The horticulture industry does not always act in a unified manner on major industry issues, reducing its ability to capitalise on its significant scale and investment in research, development and extension (R,D&E).

DPI’s investment context

Strategy-driven outcomes and investments

DPI’s vision is to enable the state’s primary industries to sustainably build Victoria’s wealth and wellbeing. Our strategic plan identifies three headline outcomes to achieve this vision:

  • competitive businesses and efficient markets   
  • sustainable managed natural resources 
  • engaged, safe and responsible communities.

Supporting the DPI strategic plan is the Agriculture and Fisheries Four-year Strategy that sets the direction for our investment in the agriculture and fisheries sector. Four strategic outcomes will drive our investment decisions, namely:

  • increasing productivity and net value (Outcome 1)   
  • growing market access (Outcome 2) 
  • sustaining the natural resource base (Outcome 3) 
  • protecting and enhancing community resources (Outcome 4).

Role of Government

A major role of government is to invest in important areas (for society) where industry and individuals under-invest due to their inability to capture sufficient or exclusive direct benefits. DPI determines investment priorities and evaluates projects through a rigorous investment process, which considers ‘market failure’ and the likelihood of net benefits arising from the investment.

In allocating funds to projects, DPI also considers the level of industry support. Where industry and private benefits predominantly arise from a project, we are unlikely to invest, given that society at large is unlikely to be a key beneficiary. To this end, DPI seeks to complement – but not compete with – the private sector, which is often better-placed to provide services that lead to direct enterprise-level profitability outcomes.

Investing in Victoria’s horticulture industry

DPI invests more than $180 million annually in research, development and extension (R,D&E) and regulatory services for the agriculture and fisheries sectors. This includes an investment of approximately $15 million in R,D&E activities that directly benefit the horticulture industry.

This investment is complemented by co-investment of around $8 million a year by industry and the Australian Government, predominantly through Horticulture Australia Limited and the Grape and Wine Research and Development Corporation.

DPI invests $40 million in broader R,D&E activities that affect the natural resource base and the social capital that supports all agricultural industries. Included in this effort are partnerships with CMA’s delivering irrigation efficiency and farm planning projects aimed at limiting off farm impacts on Victoria’s statewide high priority environmental assets.

Primary industry sector sustainably building Victoria’s wealth and wellbeing DPI Vision
 
Competitive business and effective markets Sustainably managed natural resource Engaged, safe and responsible communities DPI Headline Outcomes
 
Outcome 1
Increasing productivity and net value
Outcome 2
Growing market access
Outcome 3
Sustaining the natural resource base
Outcome 4
Protecting and enhancing community resources
Agriculture and Fisheries Strategic Outcomes

The National Primary Industries Research, Development and Extension Framework aims to improve the efficiency and effectiveness of the national R,D&E effort through better collaboration and a focus on national priorities. The framework’s intent is to provide a national focus on research, regional focus on development and local focus on extension.

Aligned with the framework, DPI will retain and build research capability in fields strategically important to the national horticulture industry, and will seek opportunities to work collaboratively with other R,D&E organisations. At the same time, we will exit those areas served better by industry and other organisations.

Pome and stone fruit, brassica vegetables and fresh and processing potatoes, along with dried vine fruit, wine grapes and almonds, are the priority horticultural crops for DPI’s R,D&E investments. This is based on the relative contribution of these crops to the GVP of agriculture in Victoria and alignment with which commodities the DPI plays a lead role in the National Horticulture R,D&E Framework.

DPI’s priorities for horticulture in 2011–12

DPI’s priorities for investment in research, development, extension and compliance services for the horticulture industry include:

Productivity

  • Extending the reach and operations of the Horticulture Industry Network (HIN) and Horticulture Service Provider Network. These networks aim to link horticultural producers and their service providers with information and knowledge to increase the rate and scope of practice change, as well as industry and community productivity and sustainability.
  • Developing further online tools and resources, and knowledge management approaches such as Systems for Enhanced Farm Services and the HIN online resource library to facilitate efficient and effective access to relevant R,D&E resources from around the world.

Market and business development

  • Supporting resolution of market access impediments in key markets and improved industry value-chain efficiency.
  • Further developing the Premium Fruit Project which aims to minimise fruit variability in summerfruit and apples and to improve consistency, quality and consumer confidence. Studies include the physiological effects of low water availability on fruit quality, yield and sweetness; a better understanding of tree variability in nectarines; and selection of improved summerfruit varieties based on consumer preference and storage performance.
  • Establishing the Smoke Taint Centre for Excellence which will develop and evaluate a risk assessment tool to enable the wine grape industry and public land managers to determine windows of opportunity for control burning that minimise the risk of smoke taint.
  • Seasonal industry updates, particularly for growers in northern Victoria, which take the form of regionally based forums where DPI brings together key subject specialists.

Biosecurity preparedness

  • Pest and disease research on more efficient, effective and innovative integrated pest and disease management practices to reduce farm losses from insect pests, diseases and weeds.
  • Building capability related to management practices for exotic incursions of diseases, and developing better diagnostic tools for emerging plant viruses.
  • Biosecurity certification services for industry and support to minimise potential biosecurity disruptions to market access through effective pest and disease surveillance and product integrity programs.
  • Providing advice and guidance on chemical use in pest and disease management, and monitoring of industry quality assurance schemes and of potential spray drift.
  • Minimising the threats from invasive plant and animal species through integrated communication, surveillance and compliance programs.

Sustainability and natural resource management

  • Spatial management of irrigation to maximise water use efficiency, investigating the effects of variation in tree size within an orchard block on drainage and water stress. The research will highlight the potential yield penalties in commercial orchards and the appropriate modifications to improve on-farm water use efficiency.
  • Remote sensing of crop water use, exploring the use of satellite data to estimate evapo-transpiration from horticulture crops. This research will identify relationships between climate data, canopy cover and irrigation requirements.
  • DPI is contributing to a national soil carbon research program to increase the understanding of the effects of soil type, climate and management on soil carbon.
  • Modelling of climate change impacts on perennial horticulture to inform planning for climate change, and looking at the impact of climate change on endemic and exotic pest and disease threats.
  • Disruption to water supply in a changing climate: research to determine minimum irrigation requirements for tree survival to minimise crop loss or to maintain productivity for apples, peaches, pears, grapes and almonds.

Skills and industry capability development

  • Supporting producers to plan and make more informeddecisions in a whole-farm context so they can prepare for the impacts of climate variability, enhance the productive capacity of their land and water resources, and minimise off-site impacts.  
  • Targeted support for producers to manage the impacts of seasonal conditions, including whole-farm planning programs to support decision making and approaches to minimise environmental impacts and sustain tree and vine health.

Emergency management

  • Supporting producers to prepare for and recover from emergencies.

DPI’s service delivery context

DPI works in partnership with other service providers to build capacity and deliver better targeted, more accessible and relevant services to Victoria’s horticulture producers.

The key principles of the Better Services to Farmers Strategy are that DPI will:

  • target services to achieve greatest benefit for Victoria
  • focus on public benefit, with industry funding supporting industry benefits
  • consider who is best placed to deliver services
  • not compete with effective private providers or community groups
  • grow the capability of DPI staff and the service provider sector as a whole
  • manage risks to ensure the strategy is successful.

DPI regularly consults with the horticulture industry to define needs and future services. We use six key approaches to inform the design and delivery of services:

  • research – the discovery of new knowledge and technologies
  • development – the testing and modification of new knowledge and technologies at a regional level
  • retailing information – providing information direct to horticulturists (i.e. end-users)
  • wholesaling information – gathering information on research and development results and new practices and packaging it for ‘retail’ service providers (e.g. private consultants, community groups)
  • signposting – referring horticulturists and service providers to other (non-DPI) sources of information and services
  • regulation – to achieve compliance with government legislation.

DPI ‘retails’ services where net public benefits arise and/or where industry co-invests in service delivery. Specifically, we will:

  • provide one-on-one services to horticulturists for compliance and land and water management planning, but usually not provide one-on-one business or productivity consultancies, unless there are exceptional circumstances (such as fire, flood, hail, frost or drought)
  • work, often in partnership with other providers, to facilitate group discussions, where this method is most effective
  • increase the use of online service delivery, including targeted webinars, farmview videos and blogs
  • continue to include farm visits in the induction and training of field staff.

DPI ‘wholesales’ information to other providers where they are best placed to deliver services directly to horticulturists. This approach also helps to grow the capability of the service sector as a whole, so producers have greater access to relevant information.

Specifically, we will:

  • identify and package relevant research and development (from DPI and other sources, nationally and internationally) targeted at service providers, who in turn ‘retail’ information to producers
  • package both (DPI) branded and un-branded products for use by service providers
  • increase our ‘knowledge brokering’ and facilitation role to effectively link people, information sources and resources.

DPI will continue to provide a range of services directly to producers, including information to support climate change adaptation, recover from industry adjustment and emergencies, biosecurity and chemical use services. These services will mostly be delivered online, through group-based workshops, one-on-one support (where appropriate) and access to information notes and reports.

DPI and industry partners have established the Horticulture Industry Network (HIN) to increase the scope and rate of change in on-farm practices. As part of the HIN’s delivery, we have developed contracts with industry associations to co-deliver best-practice production services. The expectation is that industry will contribute 50 per cent of funding for these services.

We have also partnered with service providers to establish the Horticulture Service Provider Network (HSPN). The HSPN provides regular, regionally-based professional development and networking opportunities for service providers, including consulting agronomists, input supplier representatives, agribusiness professionals, education suppliers and other service providers.

DPI wholesales its research and information to members of the HIN and HSPN through regular forums. We have also established an online library to provide easy access to information resources and tools <www.hin.com.au>.

We do not anticipate charging producers or other service providers for the services we provide, apart from cost-recovery for some conferences, field days and training programs. Thus, the terms ‘retail’ and ‘wholesale’ are descriptions of the process, and don’t represent commercial activities.

DPI will continue to monitor for exotic pests and diseases at the border and post-border and intervene to minimise these threats. We will work with producers and industry bodies to improve on-farm biosecurity and implement crop pest and disease surveillance and reporting systems such as CropSafe, using existing industry monitoring networks. On-farm combined with border surveillance is crucial for early detection of exotics and validation of specific pest or diseases status for certification purposes.

DPI administers the following legislation relevant to the horticulture industry:

  • Biological Control Act 1986
  • Quarantine Officers (Transfer) Act 1990
  • Agriculture Industry Development Act 1990
  • Agricultural and Veterinary Chemicals (Control of Use) Act 1992
  • Catchment and Land Protection Act 1994
  • Plant Health and Plant Products Act 1995.

In addition, developing and implementing industry and government co-regulatory arrangements will receive greater emphasis. These will help manage any emerging biosecurity threats and certify affected products for entry to sensitive markets. In other cases, DPI will seek to accredit third-party contractors and inspection agents to provide producers with cost-effective and timely crop inspection, diagnostic, certification and auditing services.

DPI services to horticulture producers in 2011–12

DPI offers nine specific services to horticulture producers and their service providers. The services (third column) and their alignment to DPI strategic outcomes are shown below. These services are detailed in full on the following pages. 

DPI Agriculture and Fisheries strategic outcome area

Service type

Specific services

Increasing productivity and net value
(Outcome 1)

Productivity

Service 1: Horticultural best practice and productivity improvement


Service 2: Fostering and connecting horticulture networks

Service 4: Supporting producers secure their water future

Growing market access
(Outcome 2)

Market and business development

Service 3: Supporting producers to manage risks and capitalise on market opportunities

Service 7: Chemical use compliance

Biosecurity preparedness

Service 6: Supporting sector capacity to prepare for and respond to plant pest and disease threats

Service 8: Minimising the threat of introduction and spread of invasive plants and animals

Sustaining the natural resource base
(Outcome 3)    

Sustainability and natural resource management

Service 4: Supporting producers to secure their water future


Service 5: Sustaining the natural resource base and adapting to a changing climate

Protecting and enhancing community resources
(Outcome 4)    

Skills and industry capability development

Service 2: Fostering and connecting horticulture networks

Service 4: Supporting producers to secure their water future

Service 5: Sustaining the natural resource base and adapting to a changing climate

Emergency management

Service 9: Supporting producers to prepare for and recover from natural disaster emergencies