Passion to Profit

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Issue 15, June/July 2013

Aussies hungry for alpaca meat

ISSN-6008

Vanilla bean pioneers Tips for exporting to Asian countries Ginger industry R&D strategy and priorities


Inside

Visit our website www.nria.org.au && Get the latest news on NRIA. && Learn all about the new rural industries. && Access links to industry associations and organisations. && Read profiles of producers. && Access to articles on subjects common to all involved in new rural industries. && Access to conference presentations and papers. && Join NRIA as a subscriber or member.

A word from the Editor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Follow us on Twitter!

Ginger giant moves into Mary Valley. . . . . . . . . . . . . . . . . . . . . . 9

NEWS

Aussies hungry for alpaca meat . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Sea Vegetables Tasmania. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Emu oil helps chemotherapy patients . . . . . . . . . . . . . . . . . . . . 7 Revegetation with native species in cropping areas. . . . . . . 7 Sandal wood research into pre-cancer skin conditions. . . . 7 Ginger industry R&D priorities and strategies. . . . . . . . . . . . . 9

http://twitter.com/#!/our_NRIA

Regulations to support modern biosecurity legislation . . . 9

&& Stay in touch with the latest information and news. && Share insights into new rural industries. && Stay informed. && Find and follow others with similar interests and enterprises.

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Chinese date/jujube industry. . . . . . . . . . . . . . . . . . . . . . . . . . .

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Potential for cochinchin gourd. . . . . . . . . . . . . . . . . . . . . . . . . .

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Vanilla bean pioneers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Carbon Farming Initiative regulations- more eligible activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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PROFILE FRENCH BLACK PERIGORD TRUFFLE . . . . . . . . . . . . . . . . . . . . The Marshall Family of Terra Preta Truffles 1

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COLLABORATION Tips for exporting to Asian countries. . . . . . . . . . . . . . . . . . . .

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The magazine of New Rural Industries Australia Issue 1 October 2010

NRIA Conference and Expo 2010

Tax and Primary Production

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Collective Marketing – what are the choices?

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The magazine of New Rural Industries Australia Issue 4 June/July 2011

14 Global “Worming” Irrigation practices & systems Agritourism: Connecting communities

contents

ISSN 1838-6016

Producing a product successfully


R&D for new rural industries adding value through the supply chain Southern Cross Plant Science provides expertise and facilities for crop science, horticulture and forestry: Agronomy • Plant nutrition • Plant and soil mineral analysis • Plant propagation – High quality growth and controlled environment facilities – AQIS registered plant importation – Partnerships for grow-out trials and data analysis Genetic selection and intervention • Molecular markers and genomics supporting breeding and selection • Identifying and introducing novel traits

Germplasm choice • Exploring and exploiting genetic diversity – Optimising quality – trait characterisation – Cultivar differentiation – matching cultivar to growing environment • Native crop characterisation End-use properties • Analytical phytochemistry – TGA licensed – Active compounds, authentication, stability testing • Physical testing of raw materials • Pilot scale extraction facility • Human and livestock nutrition

Working with you to improve plants and other natural products Southern Cross University is a regional university with campuses at Lismore, Coffs Harbour and the Gold Coast. The University is active in teaching and research aimed at promoting the development of primary agricultural production, rural economies and agribusiness. This includes cultivated and native plants, forestry, fisheries and other marine products.

Contact us at W: scu.edu.au/scps E: research.scps@scu.edu.au and/or graham.king@scu.edu.au T: 02 6620 3356 SCU2024


Do you grow or sell wildflowers as cut-flowers? • Get connected. • Improve yield and returns. • Network with others. • Develop the market. • Stay informed. WildFlowers Australia Ltd is the industry body for wildflowers. We exist to build the industry and help all on the supply chain. www.wildflowersaustralia.com.au

Australian TRUFFLE GROWERS ASSOCIATION

The voice of the industry STANDARDS QUALITY INNOVATION DEVELOPMENT RESEARCH

Soft, warm, lightweight, luxurious fibre 12 natural fleece colours - no dying required Soft padded feet minimize damage to soils For more information visit our website:

www.alpaca.asn.au

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Passion to Profit – the magazine of New Rural Industries Australia Issue 15 – 2013


A word from the editor I was recently looking at the many hats and responsibilities a small business owner in an emerging rural industry must wear to be successful. For starters, you must somehow acquire as much useful and accurate information for growing/creating your product – and as many of us have discovered over the years, this is not an easy task. We are lucky we have the internet to make the sharing of information easier – but ascertaining the correct information requires real judgment. Then you must be able to develop a market – which means establishing basic branding, message and knowing enough about today’s communication and marketing lines to work out how you want to move your new product into the hands of the consumer. There are legal fundamentals, staff training and HR basics, farm safety issues, and of course an ability to keep financial books and understand how to manage cash flow. There are so many different hats that a business owner must master to take a passion right through to a commercial and viable enterprise. I have learned over the last several years, in speaking to the many individuals for stories for this magazine, that one of the simplest way of mastering each of the hats required for success, is to speak to those who have already learned their lessons. Even though there are vast differences between industries – whether that is comparing the wildflower industry to the crocodile industry, or the herb and spice industry to tea-tree, or to yabby farming – there are common steps and actions required in each new industry. And information shared cross-industry, is a superb way to learn from another and to bolster one’s business in the process. My aim as Editor, since the inception of this magazine, has been to facilitate the sharing of information, from business to business, and from industry to industry. And I hope I have achieved that. I also hope that I have highlighted industries that are growing and expanding – while at the same time alerted to problems that some have had, so that your own industry can avoid the same. If I was asked for my best advice for any business in a new rural industry, it would be to share information, producer to producer – and from industry to industry. Our strength is in collaboration and communication. Please do it. Enjoy the magazine! Lana Mitchell Editor

COVER Photo: Truffled Ale, courtesy of Wig and Pen Brewery, Canberra

Passion to Profit

the magazine of New Rural Industries Australia ISSN 1838-6008

Passion to Profit – the magazine of New Rural Industries Australia, is published online every three months, free of charge. It is sent directly to subscribers and members of New Rural Industries Australia as well as to new rural industry peak bodies and allied industries. Subscription

and Membership to NRIA available at www.nria.org.au. All rights reserved. New Rural Industries Australia Level 27, 101 Collins Street, Melbourne Victoria 3000, Australia. Advertising: For advertising rate card contact and all ad bookings, email advertising@nria.org.au. Editor: Lana Mitchell. lana@nria.org.au Editorial Contributions are welcome and should be emailed to the editor. Designer: Cheryl Zwart of Orphix Publisher: Get communicating Pty Ltd for New Rural Industries Australia ISSN 18380-6016 (On-line) Copyright: No material published in Passion to Profit may be reproduced in whole or in part without the written permission of the New Rural Industries Australia. Disclaimer: The publisher reserves the right to refuse any application considered inappropriate. No part of this magazine may be reproduced in any form whatsoever without the written permission of New Rural Industries Australia. Whilst every care is taken to ensure the accuracy of the information contained within the magazine, the publisher, printer and their agents cannot accept responsibility for error or omission. Views held by contributors are their own and do not necessarily coincide with those of the publisher or editor.

lana@nria.org.au Passion to Profit – the magazine of New Rural Industries Australia Issue 15 – 2013 5


Aussies hungry for alpaca meat

Sea Vegetables Tasmania

An alpaca meat producer says he can’t export because the demand for the product in Australia is growing so quickly. Ian Frith, from Berry in southern NSW, says he’s already sold 10 tonnes of alpaca meat into the restaurant trade this year. He’s been producing alpaca meat for 18 months now, but his animals are also bred for genetics, fleece, hides and live export. Mr Frith says alpacas are no longer an expensive animal to buy.

The Hobart based partnership between Ashmore Foods and Craig Sanderson is entering its third year of production the 2013 season. Markets for seaweed products have been established in Perth, Adelaide, Hobart, Melbourne, Sydney, Brisbane and Cairns.

“Twenty years ago when the animals first came in, yes you were looking at $20,000, $25,000, $60,000,” he said. “My stud animals, yes I’ve got one there insured for $250,000 but they’re breeding and my genetics. “But these ones we buy, we breed; it’s not expensive because they’re not the creme de la creme, they’re being bred for their confirmation and their meat.” For meat production, the Huacaya breed is preferable over the Suri alpaca. “We find with Suris, while the meat is exactly the same, they don’t carry the same amount of body of meat, because they’ve got a flimsier frame,” he said. “When we kill the animals, we look at dressing at 58 to 59 per cent, which gives us a 40-kilo carcass and that’s the Huacaya.” Some of the alpaca cuts include strip loin, rump, shoulder roll, back straps and neck rosettes.

To mark the success and promise of the venture so far, a new business entity is being established: Sea Vegetables Tasmania. This company will manage seaweed product procurement, processing and distribution and is aiming to be the premier company for production and distribution of seaweed food products in and for Australia. Seaweeds will be sourced from pristine waters including around Tasmania with the aim of achieving organic status for all products. Their key products are Wakame and Mekabu, which are marketed fresh, blanched and frozen by Sea Vegetables Tasmania in 500g, 200g and bulk 3kg quantities. There are also now variations of Undaria being trialled including fresh, dried and smoked. At least two other seaweed species (local to Tasmania) and a seaweed salad are also being tested.

Mr Frith says at 94 to 95 per cent fat free, it’s a very lean meat. “It’s very high in iron, very high in protein, very low in cholesterol, but it can also be very unforgiving when you’re cooking, because it hasn’t got that fat in it.” The alpaca breeder describes the meat as tasting somewhere between lamb and veal.

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Source: ABC News

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A smoked alpaca leg produced in Berry in NSW.

Passion to Profit – the magazine of New Rural Industries Australia Issue 15 – 2013


Research in Queensland by CSIRO has shown that revegetation with native species in horticultural cropping areas can assist with natural pest management (Schellhorn 2007). A further benefit is the potential bee forage that native vegetation provides, which can increase the pollinating bee populations. Species can be chosen that provide appropriate gaps in the flowering sequence as well as beneficial pollen and nectar resources The bottom line • Different species of beneficial insects and pests use a range of habitats. We need to understand this species level information to design our farming systems. We can do this by focusing on our top four pest species. • Increasing beneficial insects will help keep pests at bay and could allow growers to reduce and target their spraying regimes. • New research will focus on several key plant species to refine revegetation potential for growers.

Sandalwood research into pre-cancer skin conditions New research out of the US is showing positive results from Indian sandalwood oil treating and preventing a pre-cancerous skin condition. The condition Actinic Keratosis is when the skin becomes damaged and its cells start to replicate which can result in skin cancer. The oil has shown it has an effect on the replica cells but not on the normal cells around it. Mario Di Lallo from TFS who owns and manages sandalwood says they are still in the early stages of the research in Arizona.

Emu oil helps chemotherapy patients Scientists in Australia have found that emu oil taken from the fat of the native flightless birds can help chemotherapy patients by repairing bowel damage. The oil, which has been long used by Aborigines to treat skin wounds, was discovered to be capable of speeding the repair of the intestines and treating a variety of common bowel diseases. Researchers at Adelaide University found the oil is an effective anti-inflammatory and can accelerate the repair of the bowels by stimulating growth of intestinal “crypts”, which assist with absorbing food. Up to 60 per cent of cancer patients undergoing chemotherapy receive painful intestinal ulcers but there are currently “no effective treatment options”, the researchers said. “We have now done sufficient studies in the laboratory to show that emu oil has potential to help reduce the debilitating symptoms of these conditions and to enhance intestinal recovery,” said Professor Gordon Howarth, the lead researcher. The study showed the oil produced greater elongation of intestinal crypts – which demonstrated enhanced recovery and repair – and reduced the severity of damage in intestines affected with ulcerative colitis, an inflammatory bowel disease. Disorders of the gastrointestinal tract, such as the inflammatory bowel diseases and chemotherapyinduced mucositis, are associated with malabsorption of food together with inflammation and ulceration of the bowel lining. Emu oil looks to be a bright solution. Source: Telegraph

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Revegetation with native species in cropping areas

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Full Membership is open to producers and distributors of essential oils and plant extracts and to producers of plant material for the production of essential oils or plant extracts. Associate membership is for researchers, consultants, regulators and other interested parties.

www.eopaa.com.au

For more information please contact mohair@mohair.org.au

National Peak Body representing the

Olive Industry The Australian Tea Tree Industry Association (ATTIA) supports and promotes the responsible use of pure Australian tea tree oil. Formed in 1986, ATTIA is the peak body for the Australian tea tree oil industry. Stay informed about pure Australian tea tree oil. Phone: 02 6674 2925

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Email:

secretary@attia.org.au

Web:

attia.org.au

of Australia Stay informed about the Australian Olive Industry Visit our website to find out more

fresher tastes www.australianolives.com.au

Passion to Profit – the magazine of New Rural Industries Australia Issue 15 – 2013


Ginger Industry R&D Priorities and Strategies: 2012 to 2017 In 2010, the Ginger Industry was successful in raising an R&D levy to help fund much-needed R&D, largely to meet the challenges of critical disease issues threatening the industry’s viability. This was introduced in 2011.

“All combined the three companies’ projects will secure more than 50 full-time jobs in the Mary Valley,” he said. “These new jobs will make the Mary Valley an attractive place for more people to live and to increase the demand for the more than 400 properties that the Queensland Government wants to return to private ownership.” Source: ABC NEWS

Since that time, the Ginger Industry R&D Program has developed as a cohesive set of projects managed through RIRDC, and now the R & D priorities and strategies for the industry for 2012 – 2017 have been finalised and published. The vision is a sustainable, growing and prosperous ginger industry supplying product of the highest quality, that is strongly sought-after by discerning consumers in Australia and around the world. The industry’s three agreed strategic priorities are: To assure industry competitiveness

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To build stronger linkages with customers and the market

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To steer the industry’s future direction.

A full copy of the publication be obtained from www.rirdc.gov.au

Ginger giant moves into Mary Valley

Regulations to support modern biosecurity legislation Draft regulations for the Biosecurity Bill 2012 and the Inspector-General of Biosecurity Bill 2012 for are now available for public comment.

Australia’s largest ginger producer, Templeton Ginger, based on Queensland’s Sunshine Coast, is expanding into the Mary Valley, just an hour north of Brisbane.

Deputy Secretary of DAFF, Ms Rona Mellor, said the new legislation was designed to support a responsive biosecurity system that intervened where risk needed to be managed: off-shore, at the border and on-shore.

The company has signed a development lease on 233 hectares of land on three properties acquired for the failed Traveston Crossing dam project. Deputy Premier Jeff Seeney has told State Parliament the new enterprise will create 14 fulltime jobs and 28 seasonal positions.

“During consultation on the primary legislation, interested parties said they wanted to better understand how it would work in practice. These regulations will help to inform the community,” Ms Mellor said.

“Templeton Enterprises have been farming ginger on the Sunshine Coast for more than 70 years,” he said.

“As draft regulations are released, we will continue to engage those people and groups who work with us to manage Australia’s biosecurity system and those who rely on the outcomes of good biosecurity management,” Ms Mellor said.

“They plan to produce 800 tonnes of ginger and 5,500 tonnes of sugarcane annually in the Mary Valley to meet the demands of the Australian market and to replace ginger imports from Fiji.”

Subject to passage of the Biosecurity Bill 2012 and Inspector-General of Biosecurity Bill 2012, the full package of regulations is proposed to be re-released during a formal consultation period.

Mr Seeney says three recently signed deals will be a boost for the valley’s economy.

The DAFF website has more information about the draft regulations.

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Passion to Profit – the magazine of New Rural Industries Australia Issue 15 – 2013 9


Chinese Date/Jujube Industry

Potential for the Cochinchin gourd

A two year R & D project has been underway to support the developing Jujube industry. R&D has been into all aspects of market development, integrated production, grading, packing, and marketing of Jujube. The project has been carried out in WA, with linkages developed nationally with interested parties.

A project has been underway to identify the potential for the Cochinchin gourd (referred to as Gac) in Australia, as a fresh food and as a high quality natural colouring (orange-red) and health supplement (lycopene, carotene).

A literature review of jujube and economic analysis of WA production has been completed as well as an awareness campaign which generated good interest with the general public and with potential growers from across WA and the eastern states. A new ‘jujube grower group’ is meeting in July with the aim of networking existing and new growers. Monitoring of trees has continued at the three orchard demonstration sites (Gidgegannup, York and Bindoon) and will continue next season. Information is being added to the ‘Field Manual’ as data is collected. An analysis of the South East Asian jujube market is also in progress. For more information rachelle.crawford@agric. wa.gov.au

For the first time, a Gac crop was produced in a temperate winter using greenhouse technology confirming its suitability as a greenhouse crop. A successful field crop has also been produced in Darwin. Growers in more temperate areas have had difficulty germinating seeds but it has been established that cuttings can be struck easily in a range of growing media, without the assistance of rooting hormone. A second greenhouse crop is nearing completion and will allow estimates of potential yields and production costs. A new project on Gac has commenced and aims to quantify ideal production conditions for high yield and high fruit quality.

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Passion to Profit – the magazine of New Rural Industries Australia Issue 15 – 2013


Russell and Mary Spanton were the first people in Australia to grow vanilla commercially. Their business, Vanilla Australia, is the only one in the country to make vanilla essence out of Australian produce. The Port Douglas growers are also one of only a few producers in the world to make it in the traditional way – by hand and without chemicals. “Most manufacturers use petrochemicals to extract flavour, and then corn syrup to sugar it up,’’ Russell said. “We use pure alcohol to extract flavour and no sugar. “Most manufacturers won’t tell you on the label how they extract.’’ Russell and Mary attend farmers markets around the country to explain what they do and why they do it. “Actual vanilla is a powerful aphrodisiac and very good for you,’’ Russell said. “In ancient history the pod of the vanilla bean was revered as a gift from the gods.’’ The Spantons grow using a biodynamic system, integrated pest management and grow organically– but are not certified. “We’re just trying to look after the environment,’’ Russell said. “I don’t want my wife, myself, my kids or my customers around poisons.’’ The couple also cure up to 100kg a year of whole vanilla beans, which involves each bean being harvested individually, killing the beans to stop them growing, sweating them, sun-drying them, shade-drying them, then massaging them before they are bundled and stored for a year to condition.

“We’re not very big. We’re trying to expand, but we make good use of the space we do have.’’ The bean is part of the orchid family, and outside of Mexico where it is pollinated by hummingbirds, has to be pollinated by hand. It is the only edible fruit from an orchid and is one of the most labour-intensive crops around, aside from saffron. For more information visit www.vanillaaustralia.com. Source: Weekly Times

Carbon Farming Initiative regulations – more eligible activities Following the recent consultation, the Carbon Credits (Carbon Farming Initiative) Amendment Regulation 2013 came into effect on 21 May 2013. This regulation: – adds five new activities to the positive list, including small-scale farm forestry plantations and the protection of native forest on freehold or leasehold land; – allows Kyoto-compatible abatement to be issued Kyoto ACCUs, in line with the Government’s decision to sign up to a second Kyoto commitment period; and – makes other technical amendments to ensure the CFI regulations operate as intended and simplifies procedures for project participants where possible.

The vanilla is grown intensively in two small shadehouses, with 500 vanilla plants in one and 2000 in the other.

The Government has also announced its intention to expand the scope of land sector activities covered by Australia’s Kyoto accounts. The effect of this decision will be that nearly all CFI activities will be eligible to generate Kyoto ACCUs, which can be used to meet liabilities under the carbon pricing mechanism. For example, any CFI credits generated from activities such as enhancing soil carbon, applying biochar to agricultural soils and restoring Australia’s rangelands will receive Kyoto ACCUs, that can be used under the carbon pricing mechanism. Draft regulations to expand the scope of Kyoto offsets projects under the CFI are under development, and are likely to be released for public consultation in June 2013.

“A lot of people have copied the way I grow because it saves space,’’ Russell said.

Further information on the CFI can be found at www.climatechange.gov.au.

This process can take anything up to 18 months, which is more than double the worldrecognised standard. “We tried to slow it down because we believe that’s when you get the best flavour,’’ he said. “The Government is trying to get people to cure vanilla in three weeks to encourage more people to grow it, but we’re all about quality over quantity.’’

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Vanilla bean pioneers

Passion to Profit – the magazine of New Rural Industries Australia Issue 15 – 2013 11


Marshall Family (Kate, Peter, Keith, Gus and Rita) Terra Preta Truffles Black Truffles (Tuber melanosporum)

Background The Marshall family have a truffle farm called Terra Preta Truffles near Braidwood, NSW. They have always planted trees, a passion of Peter’s (he is a forestry graduate. They supply only the highest grade of French Black Truffles (Tuber Melanosporum) to chefs and individuals, and export to Japan, Hong Kong, Italy and France. From a meagre 370 trees, their truffle patch is producing in quantity, and at the time of this publishing, they will be deep into harvest season, enjoying hosting truffle hunts, and providing fresh truffle to the Canberra region and abroad.

Q. What inspired you to get involved in a new

rural industry? Peter’s parents, both farmers, worked themselves brutally hard , but all margins from the sale of their splendid crops went to the market agents . The harder they worked the poorer they became , till they lost the farm .

Q. What have been the pitfalls you have overcome? How?

• Unfortunately there have been a large number of pitfalls. The first would be ignorant, arrogant spruikers who style themselves as expert advisers. You really have to be switched on to spot and ignore their incorrect advice. • Interference from unhelpful neighbours and prescriptive authorities has always been a challenge. • Biosecurity is something that all farmers have to keep in mind, and for a new and emerging industry – even more so. The possibility of pathogens arriving from overseas is a constant threat and something that has guided the institution of a biosecurity plan for the farm.

profile

Peter has long wanted to integrate farm and forestry and build a system resilient and profitable

enough to last into the next generation. Kate wanted to bring the kids up in the country and was brave enough to support Peter’s risky initiatives. And from this – the current farming enterprise was born.

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Passion to Profit – the magazine of New Rural Industries Australia Issue 15 – 2013


• Finding well trained staff proved to be a task. We concluded it is best to plan as if none exist, and train your own. • Marketing challenges are always front and centre, with any brand or product. • Debt and expensive insurance are two other factors that require juggling. • The cost of machinery and infrastructure, as well as the cost of breakdown and downtime must always be accommodated. And there is just the plain heavy physical labour of being a farmer. Romance is one thing – but hard yakka is a fact of life.

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Q. What do you consider your successes? What do you attribute these to? We have managed to develop a Farm Forestry system suited to our environment , low on inputs and nearly synthetic chemical free . It turns a profit and seems able to be scaled up. It is socially and environmentally positive and the kids like it enough to take it over one day – which is very important to us.

Q. What are 5 tips you could give others in new

Q. What is your future vision for your business?

Our systems are proven . We will now scale up the enterprise to trap sunlight and turn it into saleable product, oxygen and clear water over all the land area we have in our control . www.terrapreta truffles.com.au

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rural industries? 1. Have an income stream which can subsidise your R&D and establishment . Don’t expect to earn a living from a new venture for a long time . Have a fall back if it fails (as it

5.

probably will), so don’t risk too much in money or emotion . Invest in your own training, for example, a Master Tree Growers course for our industry. Some relevant and rigorous training is invaluable. Buy every book and journal you can and believe nothing you read till it starts making sense in the field . Then believe it, and not before. It easy in new industries to simply take the word of another and then fall on your face. Each crop, location, system is different. Look at your marketing plans from day one . If the product must sell through traditional wholesale market chain then don’t start a business . In our view, you will be exploited . If you can control sales through farmers markets or direct to customer it might possibly be a goer . If possible, avoid staff if you can . You will be paying for their mistakes and unless your volume truly justifies it, you will find it a drain.

Passion to Profit – the magazine of New Rural Industries Australia Issue 15 – 2013 13


Tips for exporting to Asian countries

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xporting to Asia doesn’t need to be a tricky business, but it’s important to be prepared and understand the process.

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Have a clear plan, market research and informed partnerships can allow you to create a smooth expansion to the Asian markets, but without research your product or service could end up floundering in a foreign market with no chance of turning a profit.

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So, before jumping in feet first, take a minute to read through these guidelines and make sure your new rural product is ready.

Identify your market It is important to remember “Asia” is not one entity. Each country has its own unique cultural, legal and economic conditions and it’s important to determine which country will be most receptive to your product or service.

Test the product Once you’ve done some research and determined where your product or service best fits in the Asian market, it’s time to test it on a smaller scale. One example of how to test your product before exporting is by going and participating in international trade fairs and exhibitions in overseas markets. Sometimes it is also possible to establish a relationship with importers from the region for testing the product overseas.

The point of business diplomacy is key when exporting into any Asian country. There are many different cultures, and many different ways of doing business. It is important, as an exporter, to understand the other ways of doing business. And of course, adapting to a different system is all about showing respect for others. Even something as simple as a handshake varies, country to country, and if done incorrectly, can be interpreted as a sign of disrespect. When exporting overseas, it’s also worth reading up on the World Trade Organisations TRIPS Agreement, which provides some international intellectual property agreements for countries belonging to the WTO. And one should always get legal advice for the country you are planning to export into.

Determine effective marketing strategies When entering a new market, clever marketing tactics can be used to make your product or company a household name from the outset (for all the right reasons). A knowledge of the local language is crucial when translating product names between cultures, in order to avoid embarrassing or negative connotations with the brand. Getting

Attendance at international trade shows and exhibitions you’re not only able to witness first hand people’s reactions to the product, but also gauge the local competition and determine if your product or service could be price competitive. After conducting the initial research, trade fairs are a good testing ground to see how your product compares to others on the market.

Recognise cultural and legal differences In some respects, Asia is a whole different ball game to Australia. Businesses wanting to export to Asia need to learn about the array of different written and unwritten rules which dictate behaviour and business conduct and arrangements. Passion to Profit – the magazine of New Rural Industries Australia Issue 15 – 2013


All Asian countries are quite different, but some markets, such as Japan for instance, buy from catalogues. In other markets they are quite happy to buy from online. Look at what others are doing in your sector and if it will work for your product, for example advertisements, endorsements and partnerships.

Establish partnerships with agents and distributors Building relationships with local agents and distributors is a fundamental part of exporting. Without working relationships built on a foundation of respect and trust, your exporting business is doomed. Austrade is able to help businesses establish partnerships with distributors and agents worldwide. Contacting and getting assistance from Austrade is not difficult and there are local representatives in all states of Australia and offices in most Asian markets. They would be aware of the distributors who are trustworthy and reasonable to work with. Businesses can also work with some of the bi-lateral business chambers who are in regular contact with those in the market. You can also contact local

lawyers and accountants who have offices in those countries for advice on who is trustworthy. Austrade detail a list of points to consider when choosing a distributor. Its suggestions include making sure you choose the distributor (not the other way round), looking for distributors capable of

Finance your export business The ability to finance your exporting business is essential, but help is available if you don’t have the capital at hand. Various grants are now available to kick-start your exporting business, such as the Export Market Development Grants Scheme. Austrade says the EMDG scheme is a longstanding form of assistance to exporters. The scheme pays grants to a large number of Australian exporters each year and allows 50% of expenses incurred on eligible export promotion activities, above a $20,000 threshold, to be claimed back in the year they were incurred. Eligible applicants are able to apply to the scheme for up to seven grants. Another source of funding help is through the Export Finance and Insurance Corporation, the Australian government’s export credit agency. The EFIC is able to provide loans, guarantees, bonds and insurance, which collectively brings businesses one step closer to their exporting goals.

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established in the local market is one of the greatest challenges – but clever marketing can help you gain market traction.

Passion to Profit – the magazine of New Rural Industries Australia Issue 15 – 2013 15


Millions of dollars worth of current knowledge could help new rural industries succeed... (if only you could find it).

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