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