Our Rural Landscape - Brochure

Contents Market Forces Profiting from our credentials New routes to market More From Less Top crops Marvellous milk Fish farming for the future Safety first Functional foods

Right place,right time Farming for the future Decision time The good earth Water wise Healthy habitats Bright Ideas Engaging with communities

Foreword
The food and agriculture sector is critically important to the State economy, for the future of natural resource management and for community prosperity,particularly in rural and regional areas.

In 2002/03,Victoria produced approximately $7.5 billion worth of agricultural products,from 13 million hectares of farmland. In 2002/03,Victoria's agricultural and manufactured food exports were valued at $6.2 billion,accounting for about a quarter of Australia ’s total agricultural and manufactured food exports.

The growth in the State ’s agricultural and manufactured food exports over the past decade has trended at 4.5 per cent per annum.This has been particularly impressive,given that drought and unfavourable exchange rate movements have impacted in recent years,after exports peaked at $8.1billion in 2001.

Over 95,000 people are employed in the Victorian agriculture, forestry and fishing sector.This represents about one in every six regional jobs.

Many of Victoria ’s regional centres such as Mildura,Shepparton, Swan Hill,Horsham and Bairnsdale are thriving in the global economy.

There are exciting opportunities for sustained growth of the agrifood sector,with the rapid expansion of many of our target markets and the increasing affluence of consumers around the world.

But to capture our share of those markets,we will have to compete with the best producers in the world.The sector will have to continue to capture production efficiencies,seek out product differentiation strategies and manage a range of natural resource management and community issues.

Our Rural Landscape
Over the next four years (2003 to 2007)the Victorian Government will invest $50 million in a new science-based program,Our Rural Landscape,to identify new solutions and opportunities for Victoria ’s farmers and food industries.

Our Rural Landscape projects will help industries to manage existing challenges and take advantage of new opportunities by:

• Protecting existing markets through enhanced biosecurity capabilities;
• Developing novel strategies for industry to access new markets;
• Assisting industry to improve supply chain competitiveness;
• New technologies and approaches to dramatically increase productivity;
• Developing more environmentally sustainable farming systems;
• New strategies for enhanced water-use efficiency and multi water-use systems;
• New knowledge and tools for communities to be better equipped for change.

Improving Victoria's access to international markets Affluent consumers are increasingly interested in a range of food attributes beyond cost and quality. We are already seeing a range of new food products marketed as having particular convenience,health and nutritional qualities. Food that can demonstrate “credence qualities,” that is food produced to high standards of food safety,animal welfare and/or environmental sustainability will also be sought by global markets. New substantiation,accreditation and labelling regulations – that satisfy international standards – will be needed to assure consumers that their expectations have been met. If Victoria ’s producers can meet these standards,they will gain access to some of the most lucrative markets in the world.

• Analyse international market preferences for green, ethical, clean, kind and safe food production.
  
  
• Develop new technologies to enable Victorian producers to measure and substantiate their claims,such as environmental sustainability, food safety and animal welfare.
  
  
• Use new molecular diagnostics and communication systems to improve the accuracy and timeliness of Victoria's response to pest and disease threats to production and market access.

Building supply chain competitiveness The challenge Some Victorian agrifood industries are losing international market share because of inefficiencies in industry supply chains. The strategy To drive more efficient supply chains for Victorian agrifood industries. The project Identify the major opportunities for,and barriers to,market access for Victoria ’s major agrifood industries:dairy,meat,fish,grains,vegetables, fruit, wine and wool. Identify and gain access to international expertise in substantiating credence values, technical requirements for market access and route-to-market techniques. Review technological developments and develop strategies to overcome supply chain barriers. Determine the role of government and industry in implementing improved supply chain strategies.

Higher value agriculture using fewer natural resources The last five years of exceptionally dry weather reminded us that we live on one of the driest continents on earth. Between 2001-02 and 2002-03,Victoria ’s food exports dropped by more than 20 per cent,mainly due to the effects of drought. It is clear that our farmers,our food manufacturing industries and the Victorian economy itself are vulnerable to drought or prolonged dry periods. Agriculture uses 77 per cent of Victoria ’s water,and demand is rising. Even in a good year,agricultural demand for good quality water will soon exceed supply. Our agricultural systems,based on non-indigenous crop,pasture and livestock species,are often ill suited to the extreme Australian conditions of low rainfall,salinity and low soil nutrients.

Profitable crops adapted for the Victorian landscape The challenge Modern farming methods using existing plant varieties are based on the supplementary use of fertilisers,pesticides and irrigation water,often resulting in high production costs and environmental impacts. The strategy To breed varieties that require fewer inputs and are less limited by environmental constraints,reducing the costs of production,and often environmental degradation.To produce higher value differentiated products. The project Use genomic technologies to develop varieties with improved tolerance to unfavourable environmental conditions such as drought,salinity and toxic levels of aluminium in acid soils. Develop varieties with an improved uptake of nutrients from soils to reduce the need for fertilisers. Develop pasture legume varieties with concentrated tannins for improved animal health and nutrition,and varieties with natural biocides to reduce the need for pesticide application. Develop varieties with nutritional and nutraceutical characteristics to generate new high value,differentiated food product industries.

Improving Victoria's dairy herd The challenge Dairy milk contains a range of bioactive compounds, which offer health benefits to young calves and potentially to humans.These high value components could provide the opportunity for valuable new products and industries. The strategy To add value to milk production by marketing bioactive compounds.To increase the production of these valuable compounds by selecting and breeding animals based on genetic traits. The project Identify proteins in milk that have bioactivity,including anti-bacterial or anti-inflammatory properties,anti-oxidants and growth factors. Develop technologies to concentrate,extract and market these valuable components. Identify DNA markers that can be used to select cattle that will produce milk with more selenium and unsaturated fat,and less saturated fat and lactose. Identify genes that control the conversion of feed to milk protein,and develop DNA tests to select more productive cattle.

Better fish stocks for profitable aquaculture The challenge Aquaculture is Australia ’s fastest growing primary industry,expected to be worth $1.4 billion by 2005. However,the Victorian aquaculture industry lags behind its interstate competitors,making up less than three per cent of the national value of production. The strategy To use advanced genetic and reproduction techniques to breed elite strains of selected fish for the Victorian aquaculture industry,while protecting wild fish biodiversity. The project Select the fish genotypes best suited to the aquaculture environment and international market demands. Discover gene markers for traits of importance to consumers and producers. Propagate selected lines of key aquaculture species, eg.Murray cod,golden perch,and silver perch. Develop breeding programs to ensure the genetic diversity of fish used for restocking wild populations.

Future technologies for healthy foods The challenge New research indicates that some pathogenic microbes may survive existing food processing techniques, reducing shelf life and posing a potential food safety risk. To access and maintain international markets, Victorian producers need to prove their processed food is safe and stable. The strategy To understand the effects of new processing technologies in deactivating pathogens,and efficient testing to confirm they have been deactivated. The project Use genomics technology to find out why some pathogens survive in existing food processing technologies,initially in the dairy and meat industries. Adapt processing technologies to deactivate them. Develop simple tests for industry to confirm they have been deactivated.

Future technologies for healthy foods The challenge The global market for functional foods has been assessed at US$50 billion.Nanotechnology (working at the molecular level)could give Victorian producers and processors a strategic advantage in this very profitable market. The strategy To develop nanotechnology to help produce functional foods for the controlled release of bioactives (compounds with medicinal or health- giving properties)and other valuable attributes. The project Assess current nanotechnologies and equipment for their potential in the food industry. Develop the technology to incorporate bioactives in nanocapsules and use them as novel,value-adding ingredients in food products. Identify the new technology to produce appealing,healthy and cost competitive functional foods incorporating fruit/plant bioactives. Identify potential commercial partners and license the new knowledge and technology where appropriate.

Precision agriculture technologies The challenge Water, fertilisers and farm chemicals are major farming costs in the dairy,cropping and horticultural industries. Water is a scare resource,and an increasingly expensive one.Nutrient run-off from farming systems is one of the most serious environmental problems in Victoria,causing algal blooms in major waterways. The strategy To develop precision farming technologies for the dairy, cropping and horticulture industries to ensure seed, fertiliser,water and chemicals are applied exactly where and when required.

• Develop tools to enable dairy farmers to select the most cost and water effective feed systems.
• Develop tools to guide grain growers in more efficient use of nitrogen fertilisers.
• Develop guidelines for precision irrigation of vineyards and orchards.

Profitable agriculture in natural environments Many of our farming systems,based on non-indigenous crop,pasture and livestock species require high inputs of water,fertilisers and pesticides. Rising groundwater,salinity,declining river health and a loss of biodiversity have led to the realisation that the natural environment is reaching the limit of its ability to absorb these negative impacts of agricultural production. New technologies are providing a more comprehensive understanding of ecosystem function and tools to achieve more sustainable agriculture systems.

Improved planning for agricultural land The challenge There is no method or single approach to help policy-makers decide on the best approach for agricultural land use at a catchment or bioregion level. Landholders,planners,scientists and the community have a different understanding and varying approaches to tackling the issues. The strategy To establish a framework for decision-making on land use based on economic and environmental returns and impacts,resulting in a 'blue-print'for Victoria's landscapes.

• Consult with stakeholders,including state and local government and catchment management authorities, on their needs and expectations.
• Review existing landscape assessment tools,such as the Catchment Assessment Tool and the Geospatial Salinity Hazard and Risk Prioritisation tool.
• Build on existing tools and integrate the different capabilities into a planning framework.
• Test the framework in selected landscape areas.

Better use of Victoria's soils The challenge Modern agricultural practices such as crop monocultures, cultivation, fertilisers and pesticides all put stress on soils. The natural resilience of soils is an important measure of their fitness for particular agricultural purposes, but there are no tools to measure this. Healthy soils are one of the building blocks of profitable agriculture and healthy ecosystems. The strategy To develop new tools to assess Victorian soils. To identify the best agricultural options for different landscapes and remedial actions for damaged soils.

• Use genetic mapping to profile the major Victorian soil classes.
• Identify key agricultural land uses within each soil class.
• Assess soil management options for each combination of land use and soil class.
• Incorporate the knowledge in existing databases to inform land-use policy development.

Multiple use of water for extra value The challenge To continue the strong economic growth in regional Victoria in the face of increased competition for limited water resources, and increased salinity and degradation of waterways. The strategy To use water for agri-aquaculture to increase the value of food production,and to reduce the environmental impacts of irrigation.

• Develop agri-aquaculture systems to recycle fresh water, and reuse saline groundwater and nutrient rich wastewater, for food production.
  
  
• Use irrigation water to grow high value species such as Murray cod, in combination with other forms of food production.
  
  
• Establish pilot studies and demonstration sites in regional Victoria to show the potential for innovative aquaculture systems that add value to fresh, saline or nutrient rich water.

Improving productivity and biodiversity The challenge Most traditional Australian farming systems are based on European agriculture farming practices. Rather than integrate with the natural environment, they often alter the water balance, soil chemistry and native biodiversity in the landscape. The challenge is to design new farming systems and prove that they can use resources efficiently and be more environmentally and economically sustainable. The strategy To map farm areas according to land capability. To increase production in the responsive areas and develop the natural resource base (water harvesting, carbon sequestration, crop pollination, biodiversity and landscape appeal) of less productive or marginal areas.

• Identify plant types – including indigenous grasses – that increase production in the meat and grain industries while reducing environmental impacts of farm production.
  
  
• Investigate agricultural systems that mimic natural ecosystems in selected high rainfall agricultural landscapes.
  
  
• Investigate ways of fast-tracking the expansion of native vegetation on land that is marginal or no longer productive.
  
  
• Develop a system to measure the benefits of native vegetation buffers to farm production.
  
  
• Establish experimental farms/demonstration sites to measure production and landscape gains from new agricultural techniques.

In the past 20 years, innovation has contributed to growth in the productivity of Victorian broadacre agriculture by an average of 2.6 per cent annually. Innovation is one of the most important drivers of competitiveness ,job growth and social well-being. Our Rural Landscape is all about new approaches and new thinking. But how do we achieve it? The challenge Victorian producers, industry and policy-makers need to respond more quickly and effectively to emerging problems and market opportunities in the agrifood industry. The strategy To create an environment where new ideas are generated, explored, expanded, put into practice and rewarded. To bring together leading thinkers with scientists and regional communities to challenge existing ideas, explore new ones and catalyse their uptake.

• Explore the concept of regional innovation incubators around the state to provide a forum for generating new ideas and community input and feedback.
• Develop a program to incorporate outside thinking and expertise to challenge assumptions and ideas,
• initially of ORL projects but later of other DPI programs.
• Develop a strategy to identify the new and emerging technologies that will be most relevant to the
• agrifood sector.
• Develop a program to encourage and reward entrepreneurial thinking and behaviour.
• Develop a mentoring strategy to take viable ideas through to new products and services.

Better strategies for solving complex problems Urban communities often have a very different understanding of environmental issues compared to rural communities. To achieve positive change, government policies must recognise the needs of both groups. While many of Victoria ’s regional centres are thriving in the new global economy, other rural centres are in decline. As the number of farms decreases, so do the businesses and social institutions that serve them.

• Analyse and predict changes in the socio-economic and physical environments and their potential effect on the ORL program.
• Develop new models to help DPI operate more effectively when working with stakeholders.
• Identify drivers of,and barriers to, positive behavioural change.
• Identify ways of addressing these barriers to change, including a combination of regulations, incentives and market-based rewards.