passion to
profit
The magazine of New Rural Industries Australia Issue 3 April/May 2011
Centrefarm: New, Rural, Industry, Australia How to be big without being big Building a healthy soil for crops and livestock
benefits
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front cover sml.pdf
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Inside A word from the Editor Welcome
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Farm tips Trade Directory
NEWS NSW regional food producers – go for gold! National conference for hydroponic and greenhouse growers NRIA takes on the minor use of chemicals Final RDC report sent to Government
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Submission on minor use permits CentreFarm: New, Rural, Industry, Australia Chestnut Blight eradication
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PROFILES KANGAROO AND GOAT LEATHER
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Jan Morris of Morris Outside
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AUSTRALIAN NATIVE FOODS
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Rayleen Brown of Kungkas Can Cook
BLUEBERRIES
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Rydley Bell of Mountain Blue Orchards Pty Ltd
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Dee-Ann Pranther of Down Under Enterprises
LAVENDER
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Annemarie Manders of Warratina Lavender Farm
CROCODILES
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John and Lillian Lever of Koorana Crocrodile Farm
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COLLABORATION Lessons learned from Joboba By Anthony Hamilton
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How to be big without being big By Peter Fritz
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Building a healthy soil for crops and livestock By Helen Disler and David Davidson
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Are Farmer’s Markets right for you? By Youna Angevin-Castro
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Biosecurity – whose responsibility? By Plant Health Australia
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Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
contents
ESSENTIAL OILS
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A word from the Editor Thank you for the positive feedback on our last issue of Passion to Profit.
inspirational read. I hope too, that you will find the journeys of others useful for your own enterprises.
It seems that we are on the right track and that people are interested in useful content, in articles that are pertinent to new rural industries, as well as insights into producers in other industries.
Feel free to contact me if you have feedback on the magazine, suggestions, comments, opinions, good news, or information to share. That is, after all, the purpose of the magazine! If you have your own new rural industry and would like to be included in an upcoming issue, drop me a line. We are working on the next issue now!
Someone asked me the other day if new rural industries means small rural industries. I had to be quick to point out that being new does not equal small. There are many large, and very profitable, commercial enterprises out there under the banner of new rural industries. In fact, I spoke to one gentleman at the Seymour Alternative Farming Expo who is the manager of a thriving boar goat business and he was more than upset about the fact that some people try to shoebox new industries as alternative, small, non-commercial and even hobby businesses. I tried to reassure him that the majority of new rural industry producers and businesses would take offense to such a categorisation as well. As can be clearly seen in this issue – the diversity and strength of our new rural industries is amazing.
Editorial
The term ‘farmer’ is also changing – as primary producers have to get more and more involved at various levels of the supply chain. A classic example is the one given by John Lever of Koorana crocodile farm (page 16), who points out: “When Koorana started we were just farmers, then we became farmers, tourist operators and restauranters. After facing up to problems with international sales of skins we decided to manufacture our own product so we became farmers, tourist operators, restauranters, manufacturers, wholesalers and retailers. After the abattoir was accredited we added to this by becoming meat processors and marketers as well.”
I think that statement says it all. I found myself, as a commercial wildflower grower, that I have not been able to simply stick to flower growing. I have also had to become a plant breeder, a propagation specialist and a marketer, to be able to tackle the issues with my own industry. The other common thread amongst all new rural industries primary producers is innovation. In this issue we have touched on many incredible producers and I am sure you will find it an
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Lana Mitchell – Editor lana@nria.org.au
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Cover: Three varieties of native wattleseed endemic to Central Australia, hand harvested by Aboriginal women Photo courtesy of Lindy Andrén for Kungkas Can Cook
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 every two months within the Town and Country Farmer magazine. It is available through newsagents, through Town and Country Farmer magazine subscription, and also provided free of charge to members of New Rural Industries Australia. Membership to NRIA available at www.nria.org.au. All rights reserved. New Rural Industries Australia PO Box 4776 Kingston ACT 2604, 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 Printer: PMP Print, www.pmplimited.com.au Publisher: What’s On First Pty Ltd ABN 22 435 833 152 Registered Office: Suite 1, 11 Unsworth Road Ringwood North, VIC 3134 Advertising: advertising@nria.org.au 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 publishers reserve 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. Advertising is published subject to the terms and conditions of the Passion to Profit rate card 2011, available through advertising@nria.org.au.
Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
Update from the hub!
In 2009, the Rural Industries Research and Development Corporation (RIRDC) hosted a forum of new industries where participants recognised the benefits of information sharing and cooperation with others. Industry leaders agreed on the need for an industry alliance, representing new and emerging Australian rural industries, to maximise the economic benefits Australia gains from such industries and to encourage new industries. This stimulated the development of NRIA as a new organisation. We are now just over 1 year old. We had our first (and very well attended) conference a few months ago, and we already have over 200 members. The NRIA is not an industry body of industry bodies – nor does it replace existing industry bodies. We are here to provide an additional link, an additional supply of information and assistance, and also to provide a network of like-minded, innovative people, working to start, develop, build or further expand one or more Australian new rural industries. The NRIA provides individual participants and smaller industry-specific groups with a far more powerful voice and the collective strength to lobby much more effectively. We also work to promote the new rural industries and build the public demand for our diverse products. JOIN US today!
Benefits: NRIA works to be a comprehensive, one-stop source for valuable information. We work to keep our members abreast of news and issues. We provide opportunity through conferences, workshops, events and our magazine for networking and developing business relationships that build your business. We also assist people to solve problems and improve their bottom line.
Subjects common to all new rural industries •
• • • • • • • • • • •
Starting up – business planning, feasibility studies, seed financing, market research Farm Production issues – growing, managing Water Supply/Efficiency/Irrigation Quality control Manufacturing/processing R&D Export/Import Commercialisation of new products Market Development Promotion and Sales Staff issues – hiring, regulations, firing, personnel control Pests and Diseases
• • • • • • • • • • • •
Breeding (plants and animals) IP – trademarks, copyright, PBR, patent Finance/Cash Flow/Bookkeeping Internet/E-Commerce Training/Education Climate Control Grants/Funding Forming Cooperatives/Associations/ Industry representation Strategies to tackle competition/ similar imported product Energy conservation/solar/ co-generation/tri-generation, alternative energy sources Tax Legal/Regulations
Table 1
Building alliances: NRIA has developed an alliance with AgTech. Members of NRIA get major discounts to subscriptions to the Farm Minder system, giving them access to up-to-date chemical MSDS information, software for recording/tracking chemical usage, compliance with strict OH&S laws and more. NRIA is an associate member of Plant Health Australia. Any industry body (not individual) registered as a member of NRIA, is an automatic member of Plant Health Australia and its industry can receive the benefits of NRIA’s associate membership with PHA if there is a disease or pest outbreak in that industry. NRIA has developed an alliance with FarmPlus, a company that specialises in developing internet services that combine and collect the current knowledge assets available in new rural industries into one single, easy to access, knowledge portal. This means that in a matter of months there will be a wealth of information on a number of subjects accessible through NRIA membership as shown in Table 1. To find out more about membership in NRIA and to join, go to www.nria.org.au.
Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
WElcome
N
RIA is an alliance of new rural industries. We are a non-profit organisation working to create an environment for the development and building of capacity of new, innovative, Australian rural industries through cooperation, coordination and education.
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NSW regional food producers–go for gold! Industry & Investment NSW is offering eligible NSW regional food and non-alcoholic beverage producers a fully subsidised Gold Premier listing on the Australian Regional Food Guide (ARFG) website (www.australianreagionalfoodguide.com.au). A site listing could help regional food producers to find new local and metropolitan-based food buyers such as retailers, chefs and distributors who may be searching for a certain product. The ARFG website is well-established and a leading e-guide to the best and freshest in regional produce, products and dining throughout Australia. I&I NSW approved producers will receive a Gold Premier listing promoting their business. The benefits include a dedicated web page, a comprehensive product description, a link through to their website, an encrypted email link, four static images, a company logo and other useful features. And if you’re not sure where to source your NSW grown pistachios, organic garlic or custard apples, find out on the ARFG directory! For further information contact Shannon Dearing at shannon.dearing@business. nsw.gov.au. Or follow fresh regional produce tweets on Twitter: @arfguide
news
Final RDC report sent to government
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The Productivity Commission’s final report into Rural Research and Development Corporations has been completed and sent to the Australian Government for its consideration. The report is available for free download from the Commission’s website and printed copies are available for purchase from the Commission’s publications agent (see our website for details) once the Government has tabled the report. Info: 1800 020 083. www.pc.gov.au
NRIA takes on the minor use of chemicals NRIA has recently been contracted by RIRDC to resolve some problems with permits for minor-use chemicals. As many primary producers will have experienced, there are a number of herbicides that have crops/weeds not listed on labels. In some cases there is ample evidence in Australia or overseas that shows the use of that chemical for that crop/weed is both safe and best choice – and in other cases there have simply never been trials done for specific crops/weeds – leaving producers stuck with a problem that no chemicals have been technically approved for use on their crop or weeds. The fact remains that use of herbicides in any manner other than what is dictated in the minor use permit and listed on the label is illegal – and this puts many primary
producers between a rock and a hard place. NRIA will be running a project to tackle this situation. The project will identify which are the main herbicides with incomplete labels/approvals and get these: a) researched if there is sufficient professional information that can result in submission to extending the crops/products that the herbicide can be used on, or: b) trialled as needed, so that the necessary approvals and extensions of product can be approved. We will be canvassing new rural industry producers, and particularly NRIA members, on what chemicals they are using and the issues that need to be resolved with individual herbicides. More will be announced on this shortly.
National Conference for Hydroponic and Greenhouse Growers The Protected Cropping Australia Conference will be held from 3rd to 6th July at the Adelaide Convention Centre. Formerly the Australian Hydroponic & Greenhouse Conference, this is the eleventh such biennial national conference. The conference starts on Sunday, with the opening of the trade exhibition, which covers a wide range of industry trades, including greenhouses, irrigation and climate controllers, movable screens, seeds, fertilisers, chemicals, growing media, propagators, IPM specialists, etc. The exhibition remains open for
delegates through Monday and Tuesday. Lectures and workshops are held all day Monday and Tuesday covering a wide range of advanced topics, but also interesting newer areas, such as green roofs, aquaponics, and organic hydroponics. Plenty of greenhouse growers in Adelaide still grow in the soil, but many are interested in changing to hydroponics. Consequently, part of the conference will concentrate on providing a range of fundamental topics to help new and intending growers, who are particularly welcome. www.protectedcroppingaustralia.com
Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
NRIA supports submission to government on minor-use permit laws
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n March a submission was completed by Dr Stephen Goodwin entitled “Submission on reforms to deliver sustainable minor use crop protection solutions for Australia’s agricultural industries”. This submission was endorsed by New Rural Industries Australia, the Nursery and Garden Industry Australia, Protected Cropping Australia, the Australian Herb and Spice Industry Association, the Australian Banana Grower’s Council, Crop Life Australia, Australian Mushroom Growers Association and Strawberries Australia, the national strawberry peak industry body. Under the present legislation (AgVet Code) most horticultural crops fall into the ‘Minor Use’ classification, where the amount of pesticide use does not satisfy the economic business case of agricultural chemical manufacturers, resulting in commercial decisions against registration. To access the necessary range of agricultural chemicals, horticulture has to rely on the off-label permit scheme and other State control-of-use off-label provisions. Permits are a
temporary measure that must be renewed periodically, yet they are subject to the same ‘core legislative requirements’ as apply to registrations. The costs fall on the applicant, which for minor uses, is the end user – the producer – rather than the chemical manufacturer. This situation places a significant cost burden on horticultural producers and smaller livestock industries. It is hard to reconcile the large number of permits with the significantly fewer human and funding resources available to them from all sources for R&D to generate efficacy and safety data and for the regulatory process, compared with those available for registrations. Chemical reviews are also a contributing factor to the minor use issue that cannot be ignored. Such reviews place increased pressure on existing registered uses in minor crops where registrants, when requested for further data, choose not to protect those uses for economic reasons. De-registration of such uses has significant and often immediate consequences for producers. Recent examples Continued on page 29
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Centrefarm: New, Rural, Industry, Australia.
By Lindy Andrén
T
hink big, think outside the box, think laterally. And dream. These are the constituents of innovation and when matched with serious hard work, anything is possible. We are living in interesting times and whilst some see this as a curse, at Centrefarm Aboriginal Horticulture Ltd they see it as a challenge, and an opportunity to innovate.
lands, including the successful development of the Desert Springs melon farm near Ali Curung which has been operating for 2.5 years with turnovers of $5M+pa. They are also working with Warumungu people on the Barkly Tablelands to develop an initial 5000ha into a portfolio of seven enterprises. Other projects are being progressed at Ti Tree, and the organisation has been asked to provide similar services to the Top End, Pilbara, Gulf Country and WA goldfields regions.
Established in 2002 in response to requests from Traditional Owners in the Northern Territory for assistance to develop their land, Centrefarm is a not-for-profit Aboriginal-owned company based in Alice Springs. With a small team of skilled individuals, the organisation works to address the realities of distance, welfare-dependency and lack of infrastructure that challenge economic development in remote Australia, and to create opportunities from the land, water, climate and population resources that also characterise the environment.
The Centrefarm model involves using licensed operators to run farms on land leased from companies owned by Traditional Owners. The use of commercial operators to develop farms is part of a long-term strategy towards Aboriginal control. The concept is akin to an anchor tenant in a shopping centre providing the foundation for other enterprises to grow by offering employment, training and infrastructure and creating the need for additional services.
news
Fifty percent of the NT is Aboriginal land, an area the size of France. Much of this land sits above vast water resources and has soil profiles ideal for largescale horticultural and agricultural enterprises. It is also suitable for a range of activities listed under the Carbon Farming Initiative.
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Centrefarm acts as a project developer and manager to establish such enterprises on these
But the vision is bigger than simply a route to economic freedom for remote Australia. Economic stimulation provides increased security for all Australians: a broader base, more employment, and greater wealth generation. It contributes to a healthier society, cuts costs of welfare and makes Australia a better place to be. “From little thinks”. For more information: www.centrefarm.com or 08 8953 7070.
Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
Eradication of Chestnut Blight in Vic
C
hestnut blight was confirmed in the Ovens Valley on 8th September 2010. How the disease entered Australia remains unknown. Since September, over 150,000 chestnut trees on 300 properties have been surveyed throughout Victoria (and interstate) as well as 500 oaks and 1200 eucalypts in and around infected properties. A total of 4600 chestnut trees in the Ovens Valley (of North-east Victoria) have been removed and destroyed during the threemonth eradication program. On 25 November 2010 representatives of government and industry convened as a National Management Group (NMG) to discuss the incursion and agreed to a nationally cost-shared response under the Emergency Plant Pest Response Deed (EPPRD) to eradicate the disease. The EPPRD is a legally binding agreement between the Australian Government, all state and territory governments, national plant industry body signatories and Plant Health Australia covering the shared management and funding arrangements for responses to Emergency Plant Pest Incidents. The National Management Group decision was based on the belief that the disease is eradicable for reasons including: its containment within a small geographical area; the low likelihood of wind-borne spread; the tracing of plant stock, and extensive surveillance that had determined it had not spread outside of the quarantine area. Under the EPPRD, owners of a crop or property that is directly damaged or destroyed as a result of implementing an NMG approved Response Plan may be eligible for reimbursement of certain
direct costs. This is the case for growers of affected chestnuts by the approved Response Plan. This mechanism is called Owner Reimbursement Costs (ORCs). ORCs provide social justice for growers who, through no fault of their own, are detrimentally affected by an Emergency Plant Pest eradication response. ORCs can include the loss of the crop destroyed or damaged (including stored produce) and any extra costs that the Owner directly incurs in complying with the Response Plan. Property that is destroyed as a direct result of implementing the approved Response Plan, or costs and losses resulting from an enforced fallow period, can also be included. Reimbursements only cover costs above and beyond the Owner’s normal operational costs. Plant Health Australia has worked with the Victorian DPI to refine the nut industry ORC framework to facilitate the early payment of monies to affected chestnut growers. On 10th March, the Victorian Minister for Agriculture and Food Security announced that an offer of ORCs totalling $787,000 has been made in writing to six affected growers covering the removal of infected trees from their properties. Chestnut blight is caused by a fungus (Cryphonectriaparasitica) which affects the bark and cambium of the tree. It causes cankers on stems and branches, which can in most cases continue to develop until the branches and/or tree stem are girdled, causing blighting and usually tree death.
Photos courtesy USA Ministry of Agriculture and Regional Development archives
Chestnut blight is a declared exotic disease, and landholders are legally obliged to notify the Exotic Plant Pest Hotline if they find suspected chestnut blight symptoms – phone 1800 084 881.
Spotted anything
unusual?
NOTHING WILL PROTECT YOUR CROPS AND THE ENVIRONMENT MORE THAN A GOOD HARD LOOK It is important that you are aware of the risk. If you spot anything unusual on your crop or in the general environment, call the Exotic Plant Pest Hotline on 1800 084 881. The call is free (except for mobiles) and early detection will help protect your farm, your industry and the environment. For more information visit: www.phau.com.au/biosecurity
TLINE NT PEST HO EXOTIC PLA
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Improving national biosecurity outcomes through partnerships
Jan Morris Morris Outside
Kangaroo leather gloves, boot guards, arm guards and more…
Q: What inspired you to get involved in a new rural industry?
Our first enterprise was a retail nursery northeast of Melbourne, with stock produced by ourselves. As young parents with a mortgage, funding a cash hungry business was a challenge. When times are tight, the first thing people stop buying are products they do not want. Our resolve was to supply/sell products that customers needed. We identified a need for safety and protective clothing for gardeners and other outdoor workers and this was coincidental with the campaign by government and other employment bodies on health and safety issues. This was our inspiration and opportunity. We saw a niche that we could fill, and a demand that was growing through industry awareness. We saw we could speed up cash flow through direct sales, and control the product through our own enterprise – designing and making products here in Australia.
Q: What have been the pitfalls you have overcome?
Profile
After twenty years in business there have been no problems that we could not solve with persistence, lateral thinking and determination. Capital is the lifeblood that pumps through the arteries of all commerce and in the early days there was just never enough of it – we constantly gave our enterprise a transfusion of capital, and knowing how to quantify this was an early lesson.
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Planning was also important – staying within the boundaries of what we were capable of doing, both as individuals and in terms of available finance. The ability to re-invent when something is not working, and to recognise and accept errors, is essential. Setting the pace is also paramount. We were constantly coming up with new ideas and improving as we progressed – however creating prototypes, developing a product, taking it to market and establishing viable sales are expensive and time consuming. Our most recent problem has been to maintain supply to a growing demand for our products.
Q: What do you consider your successes?
We consider it a success to have stayed in business for over 20 years. Starting a business is easy – staying in business is a lot harder. Our success
has been to listen: to our customers, to take an opportunity when it arises, and to let our heads (bank balance) not our hearts be the arbiter of all decisions. On a broader level, our decision to manufacture in Australia using Australian products has also been a success, not only in terms of quality control and value adding, but also in terms of supply of base materials, logistics, reliability, niche marketing and exporting. We provide a courteous and professional service, blended with an entrepreneurial flair that allows us to bring new and innovative products to our retail and wholesale customers.
Q: What are 5 tips you could give others in new rural industries?
1. The world is at your fingertips. Australia has a very positive image in many parts of the globe – capitalise on it. 2. Have a game plan and stick to it. Set achievable goals and be realistic. 3. Ensure you have finance in place. 4. Be prepared to fail – we do not all get there at the first attempt, however persistence and knowledge will generally win the day. 5. Never make decisions on anecdotal evidence. Research, ask questions, get facts, and make sure there is a market for your product.
Q: What is the future vision for your business?
Our vision is to expand our enterprise base here in Australia, to regulate and control manufacturing. We will be investing in infrastructure and will employ more as demand exceeds supply. We will also be maintaining our focus on niche areas, improving our point of sale with branding and marketing, and exporting more of our products. We plan to finance our further expansion through cash flow and not through borrowing – and we intend to have an enterprise that we can sell on retirement or pass onto family. www.morrisoutback.com.au
Rayleen Brown KUNGKAS CAN COOK
Catering that specialises in Australian bush foods, locally harvested quandong jam and sauce, seeded breads, bush tomato relishes and dressings.
rural industry?
I’d always had a passion for bush foods; we grew up on them and I wanted other people to know how healthy, nutritious and great tasting they are. Back then there were no successful Indigenous businesses running in Alice Springs. We were inspired by our grandmothers and aunties, they encouraged us to do it, and we wanted show our kids and others that Aboriginal women can be successful.
Q: What have been the pitfalls you have overcome? How?
In the beginning many people didn’t believe in us, we had to struggle to prove ourselves. Then we had to change the popular perception of bush tucker being squirming, wriggling things you eat alive! We overcame these hurdles though hard work, by being versatile and never saying “no” to a job because each job was a chance to change perceptions, and though it got us into some hot water, we learned a lot and we survived. Now KCC is recognised Australia-wide as a leader in bush food catering. Last month we were the sole representatives of the NT at a Tourism Trade Expo in Melbourne where our menu was voted the “best NT dinner ever”.
Q: What do you consider your successes? What do you attribute these to?
Eleven years of being in business would have to be one! Another big success is seeing bush tucker coming to the fore of the Australian food industry. People are seeing that bush foods are more than just ingredients: they are about culture and nature, ethics and education, nutrition and wild harvest. I would say that sheer determination, hard work and belief in what we’re doing has got us where we are now, and it’s a great feeling! I’m able to have an impact, to say things that need to be said, and to make changes. I feel really proud that people
can come to me for advice now, and that I know I am doing the right thing by my people, being a spokesperson.
Q: What are 5 tips you could give others in new rural industries?
1. Take the risk! Both to get the business going and then to recognise the next steps that will keep it moving forward. 2. Do your research, we could have saved a lot of bother if we’d known more beforehand. 3. Have a story in your mind of where you’d like to see yourself and your product in 5 to 10 years. This keeps you on track and ensures you stay there when things get tough. 4. Get some business knowledge before you start. 5. Don’t be afraid to ask questions, especially when things go wrong. Get a mentor, someone you trust, to run ideas past.
Q: What is your future vision for your business?
Having surpassed our business plan targets, it’s time to take that next step. We want to separate the catering and bush food sides of KCC so we can continue to promote bush foods through our catering but have a new arm devoted to developing the bush food industry. We’ve been working with RIRDC on Indigenous Fair Trade (https://rirdc.infoservices.com. au/items/10-172) and are advocating for approved product status for bush foods so they can be traded overseas. KCC is also beginning to train more young Aboriginal people in the industry and we’re running our second Bush Food Cooking Class because the first one was so oversubscribed! That’s a great way to get the message out!
Kungkas Can Cook* was established in 2000 by Rayleen Brown and Gina Smith. It employs around 6 full time staff and had a turnover of just under $1m last year. Over eleven years it has grown from a simple catering business into a stand out success story that now incorporates training activities and advocates the for the emerging Indigenous bush foods industry. *Kungkas is the Pitjantjatjara word for women
Profile
Q: What inspired you to get involved in a new
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Ridley Bell Mountain Blue Orchards Pty Ltd
Blueberry fruit, blueberry nursery plants, new blueberry plant varieties
Q: What inspired you to get involved in a new rural industry?
I was working as a Scientific Officer at the Horticultural Research Institute at Knoxfield in Victoria from 1975 where my brief was to study new, potentially commercial fruit crops in Victoria. Of the twenty or so fruits, the fruit that stood out as having great potential both domestically and on export markets was the blueberry. There was a potential to grow for an eight week window in the blueberry market at the end of the northern hemisphere season in September, and before the Southern hemisphere (highbush) blueberries came on stream in December. I imported several varieties for trialling, and at the same time I set about looking at climatic areas where we could safely predict that those varieties might receive enough winter chilling and yet produce early fruit. My conclusion was that Northern NSW and South Eastern Queensland were suited to these blueberries, and in 1981, I made the move to Federal, near Bangalow, in Northern NSW. I planted out new varieties and started a nursery to supply plants to my own orchard as well as to other interested growers.
Q: What have been the pitfalls you have
Profile
overcome? How?
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Farming has many pitfalls, including drought, floods, erosion, cyclones, insect plagues, diseases, and birds. There were also problems however that have to do with overseas competitors, overproduction, poor prices, and failure of varieties to perform as expected.
In the mid 1980’s we were very keen to become organic producers of blueberries for the supermarket chains. We stopped our regular sprays for fruit fly and various other grubs that infest blueberries, but were soon pulled up by the buyers who objected to infested fruit, particularly when the fruit was ‘’bleeding’’ in the punnet. Bait sprays and other management techniques may have helped reduce the problem marginally, but they didn’t give the result that was required by the market. (In Victoria and some other Southern States, there are some very successful organic growers who I greatly admire, however, in Northern NSW this is a very difficult quest). In 2003, blueberry rust was discovered in Northern NSW, and this has led to the necessity to adopt different pruning practices, as well as the application of rust protectant sprays. Other diseases that have to be addressed by growers here include stem blight and Phytopthora cinnamomi. Both of these diseases are being addressed through breeding new varieties that have some measure of resistance.
Q: What do you consider your successes? What do you attribute these to?
There have been a number of factors that have contributed to the success of our blueberry enterprise. The first factor was the choice of area and suitable climate to achieve the seasonal window of opportunity. Identifying that opportunity in the world blueberry market, then finding a suitable growing area, was important to achieve that market opportunity.
Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
The export market is important to the blueberry industry in Australia as it allows fruit to be shipped overseas rather than all ending up on the domestic market where an oversupply can depress prices. Blueberries are very popular in the catering and processing industries due to the fact that the fruit doesn’t break down similarly to other berries after freezing and cooking. The processing market takes up as much as 25% of the Australian production. Producing a first class quality product that is known and identified in the marketplace is very important. At Mountain Blue Orchards we have quality assurance programs in place, including HAACP accreditation and ICA 31 – both of which really help us to focus on good cultural practices and fruit quality. MBO also has invested in research and development, particularly in the area of breeding new varieties that are superior in growth, fruiting qualities and fruit flavour. It is flavour that remains our number one criterion in releasing new varieties. Our pickers and packing shed crew are paid to maintain quality, and the product is sought after in the market place. The breeding program also focuses on providing fine
fruit from early in the season, for as long a season as is possible, selecting early and late varieties. MBO has a production nursery producing plants for the commercial grower market, for retail nurseries and for home garden centres. A new variety for home gardens has been selected, soon to be released. The nursery has also supplied hundreds of thousands of plants to a large scale blueberry venture (African Blue) in Morocco, in which MBO has a shareholding as well. Mexico and the US are also of interest, in that MBO is supplying varieties in two large scale ventures there.
Q: What are 5 tips you could give others in new rural industries?
1. Choose a product that you are passionate about, and that you have confidence in as a commercial venture. 2. Learn as much as you can about the crop’s requirements and the potential to market it either domestically or on the export market. 3. Choose the crop you wish to grow and then look for suitable land and a suitable climate, not trying to fit your crop of choice onto the wrong land. 4. If the venture that you wish to pursue is labour intensive, such as blueberry production, then ensure that there is suitable labour and accommodation in your area. 5. Identify clearly the season that you are trying to cover as well as the market strategy that you will employ. Q: What is your future vision for your business? Our vision is to breed and produce the best flavoured blueberries for the Australian market, to produce those blueberries for growing elsewhere in the world, and to develop varieties that can be grown in our area over a period of approximately 8 months each year to extend the production season. We also want to develop varieties of blueberries suited to machine harvesting and packing for the fresh fruit market, to reduce the costs of production – so that Australia may compete more fairly with overseas producers on the same markets. Key also is to develop our interests in Morocco and Mexico, as well as look at other opportunities internationally. We also plan to develop a retail side to our business in Northern NSW, in order to capitalise on the tourist dollar that comes to the NSW North Coast – and to develop a viable succession plan to enable the different family members who have differing aspirations to achieve them in a way that satisfies those aspirations. www.mountainblue.com.au
Note from the Editor.
Ridley Bell was awarded the title of 2010 Farmer of the Year by the NSW Farmers Association. Though Ridley told me that he is “just a farmer”, I was impressed by his business savvy, his intuitive and clear market sense, and his focus to build his business. Blueberries are now available from all supermarkets and consumed in volume. This is, frankly, thanks to Ridley Bell, who took this product and developed a blueberry market and an industry to what it is today.
Profile
The Australian Blueberry Growers Association is the peak body representing the Australian industry. Being a part of this body has been important, both for industry and cultural information, as well as for marketing, promotion and R&D funding through the voluntary levy. Many of the members of the ABGA market their products in a co-ordinated way in order to avoid under-cutting in the market.
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Dee-Ann Prather Down Under Enterprises
Pure Australian Essential Oils
Q: What inspired you to get involved in a new rural industry?
Initially it was to help my family as the Tea Tree Oil industry suffered in the late ‘90’s when oversupply affected sales opportunities and prices. I was living in the United States and offered to help sell their product in the US. Ten years later – I’ve built up a long-term, stable customer base and we are one of the largest exporters to the US.
Dee-Ann Prather
I love helping farmers take their oils from the field and supply customers who put these oils into consumer products. Farmers can be brilliant at planting, growing, harvesting, and distilling but many don’t necessarily have strong sales skills – or the time – to maintain relationships with these companies overseas. I feel happy that I can help them with this aspect of their business.
Q: What have been the pitfalls you have
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overcome? How?
The initial pitfall was a lack of recognition in the United States on the benefit of Australian essential oils. Through the use of research papers, face-toface meetings, and constant contact I was able to educate manufacturers of personal care, household care, and pet care products on how essential oils may be used to improve their products. It was also difficult to break into the existing market. My 15 years of sales experience helped break this barrier and by implementing a state-of-the-art customer relationship management system, I have a database, correspondence, and documentation support at my fingertips – an essential tool.
Q: What do you consider your successes? What do you attribute these to?
My biggest success has been assisting growers find a market for their essential oils. I would also like to think I influenced quite a few companies in including our Australian essential oils in their products. I attribute these successes to relentless
sales calls, marketing, persistence, strong relationships with growers and customers, and an incredibly supportive husband that holds the house and kids together while I make phone calls at ridiculous hours.
Q: What are 5 tips you could give others in new rural industries?
1. Develop a relationship with a buyer/broker whom you trust. 2. Don’t demand THE highest market price as your relationship with your buyer/broker should be mutually beneficial over a long period of time. 3. Offer a reliable supply and communicate when time frames for supply slip – we are dealing with a natural product after all and this is understandable from time-to-time. 4. Obtain research data (if possible) on your oil to assist in differentiating and selling your product. 5. Be patient – the R&D process can take years before a product is ready for the market and supply requirements are known. Q: What is your future vision for your business? I originally focused on Tea Tree Oil but over the last 5 years I have broadened this focus to other Australian essential oils. I will continue to expand my range of essential oils (including Organic oils), develop relationships with growers of new Australian essential oils, as well as expand my customer base. I now spend time working with my customer’s Marketing and R&D departments – rather than just Purchasing – to develop new products and uses for these oils. Therefore, having access to new oils and educating my customers is the key to continuing to grow the business and generate broader international recognition of the benefits of pure Australian essential oils. www.DownUnderEnterprises.com
14 Separators
Harvested 2 Rows
Annemarie Manders Warratina Lavender Farm
Lavender products including; Dried Lavender; Household products eg. furniture polish; Culinary eg. teas, honey, jams, lollies, biscuits; Cosmetic eg. hair care items, body wash items, lotions & creams; and Fancy fabric range: heat packs, eye pillows, sleep pillows, sachets
rural industry?
We had the land which had an old orchard on it which was past its prime. I liked the idea of having a cottage industry and as it was originally only going to be a hobby I had NO business plan. I wanted to be enterprising and use the land for something useful.
Q: What have been the pitfalls you have overcome? How?
I had no real knowledge of growing flowers on a large scale. I also could not drive a tractor, had no knowledge of weed control, was computer illiterate, and no knowledge of running a business, product development, pricing structures, marketing etc. I had to overcome each of these, in time. I found that my background as a nurse in an operating theatre actually helped. I am strict on cleanliness, orderliness and presentation of farm and production. I have documented all practices and have been prepared to give things a go – understanding that I will have errors but I will learn from each, and will not repeat those errors more than once. I have learnt weed control, computer and banking skills, as well as public speaking.
Q: What do you consider your successes? What do you attribute these to?
Diversification : Diversification has been key. I have Lavender plants in the field, products for sale (retail & wholesale), engage in agri-tourism and hospitality with our Tea Rooms, tour groups and talks in the Drying Shed, as well as on-farm events throughout the year (utilising the Drying Shed for craft/art exhibitions when no lavender is there).
Farm presentation. I have worked to maintain a high standard of presentation in all aspects of the business: eg. product presentation, uniformity in labeling and tracking system, presentation of staff, food in Tea Rooms, etc. Hard Word. Another key point has been having lots of energy and being prepared to put in the hard yards for little money while the business was built up. All takings and profits have been funneled back into the farm to build the size and scope of our operation.
Q: What are 5 tips you could give others in new rural industries?
1. Diversify. Agri-Business and tourism with hospitality is almost essential. 2. High standard of product and presentation. 3. Do homework on the enterprise but don’t just dream it. Do it! 4. Do it only as you can afford and learn along the way. Do not take out loans to start the industry because you may not sell the product and you still have to pay back the loan. Let it grow as you can afford it and you learn about your mistakes and thereby improve your systems. 5. Believe in your product. Have a passion and it will come through in the selling and promotion.
Q: What is your future vision for your business?
To continue to promote the farm, Tea Rooms, products and events. There is scope for expansion into the wedding industry, as well as further development of agri-tourism. I want to build on the reputation of the Tea Rooms and also continue to market my products both wholesale and retail nationally.
Profile
Q: What inspired you to get involved in a new
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John Lever Koorana Crocodile Farm
Crocodile skins, crocodile leather and leather products, crocodile meat and tourism
Q: What inspired you to get involved in a new
Q: What are 5 tips you could give others in new
I became enamoured with crocodiles whilst in PNG working on wildlife utilisation projects. On my return to Australia I wanted to start a crocodile farm in Queensland but there was no precedent. Breaking new ground, we had to lobby to have Queensland legislation changed to permit farming of crocodiles. Koorana finally got approval to start in Nov 1981 with 3 crocodiles on hand.
1. A 10 year plan must be done first then deal with the short term objectives 2. Do not let yourself become isolated as a farmer – your farm will do better if it belongs to an industry that is growing. 3. Share your knowledge and help others to become successful as well. 4. Do not be restricted by convention. Be innovative. Dare to think outside the norm. 5. Investigate the possibilities of value adding your own product
rural industry?
Q: What have been the pitfalls you have overcome? How?
First it was the laws in Queensland that had to change to permit Koorana to start, then it was Australian laws that had to be changed to allow us to market production of skins and meat. Then there were council laws that had to be met to start a tourist operation and restaurant. Changing legislation at any level is costly and time consuming and only perserverance and attention to details won the day.
Q: What do you consider your successes? What do
Profile
you attribute these to?
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Our successes have been to establish the first commercial crocodile farm in Queensland producing skins for the international market. We then established the first dedicated crocodile abattoir and processing room for crocodile meat with AQIS approval for export. When the skin market slumped, we had our own skins tanned and manufactured into finished product for wholesale and retail sales. Back in the 1980’s there was so much interest in crocodiles that we opened the farm to the public, adding another business with a good cash flow and this actually funded expansion of the farm unit. I attribute these successes to being innovative and opportunistic and always having an open mind, not restricted by convention. When Koorana started we were just farmers, then we became farmers, tourist operators and restauranters. After facing up to problems with international sales of skins we decided to manufacture our own product so we became farmers, tourist operators, restauranters, manufacturers, wholesalers and retailers. After the abattoir was accredited, we added to this by becoming meat processors and marketers as well.
rural industries?
Q: What is your future vision for your business?
Within 5 years the skin production capacity will double and we will be using artificial insemination to fertilise the females. We are now committed manufacturers and have one tanner and three manufacturing houses in Italy producing for us. This aspect will grow in the future and we are looking at niche markets throughout the world. Our tourist numbers have not grown in the last 5 years and we believe it has reached a plateau. To grow this business unit we are planning accommodation units on site – both for the Fully Independent Traveller (F.I.T.) market and coach groups. Koorana.com.au
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What lessons can be learned from Jojoba?
Tony Hamilton
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olden jojoba – liquid gold, a path to riches, so said the promoters of this industry in Australia in the 1970s. Many orchards were established and promoted as Tax Effective Agriculture Schemes. Too good to be true? You bet – they all failed.
Two researchers, Peter Milthorpe of NSW Dept of Agriculture and Bob Dunstone of CSIRO believed in the possibility of a viable jojoba industry for Australian farmers. They selected improved varieties from Israeli seed stock more suited to conditions in the wheatbelt area of Australia. Several male and female varieties were “patented” using Plant Variety Protection (PBR) legislation.
In the late 1990s the jojoba industry was reborn in Australia. A case of more of the same? Or have growers learnt the lessons of the past. The answer is yes… and no. What lessons can be learned for other farmers thinking of establishing new crop and animal industries?
After a series of meetings and field days at research blocks, interested growers got together with the view to reviving jojoba in Australia. They were acutely aware of past problems and jojoba’s tarnished reputation. The first step was to form The Australian Jojoba Industry Association (AJIA), with two levels of membership (Associate membership giving access to newsletters and field days to encourage interest and participation in the fledgling industry, and Full membership with voting rights). Growers also agreed to a voluntary levy on plants, as they established their orchards, and later on seed production, to get a “nest egg “ to fund future R&D and industry promotion. A core group of about 15 growers attended field days at each other’s orchards to freely share information about problems and challenges.
Jojoba (Simmondsia chinensis) comes from Arizona/New Mexico deserts. It is a hardy, drought tolerant, salt tolerant perennial shrub. It has male and female plants, with pollination by wind. In its natural habitat it has a long lifespan. Its seeds contain a liquid wax very similar to sebum, and have many beneficial properties which make it well suited as an ingredient in cosmetics, shampoos and as massage oil. So it ticks all the boxes as a “New Crop” but growing it profitably was the challenge.
Australia was (and still is) a minute player in the world trade of jojoba. These growers also wanted to market their produce collectively to ensure consistency of supply and quality. Various arrangements such as co-ops were examined and it was decided the most professional approach was to form a marketing company (Jojoba Australia Company Ltd – JACO) with shares purchased in proportion to the areas owned by individuals. Current world prices at the time of planting were high and, based on yields obtained in experimental blocks of these new varieties at various sites, budgeted gross margins looked extremely attractive. Enthusiasm was high, almost evangelical enthusiasm for jojoba and its possibilities. So far so good. Then like many new rural industries, it entered a period of “anticipointment” – a term used Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
Not long after the orchards were established, a Government sponsored project in Argentina saw massive areas of jojoba planted. Imported product was being dumped at prices below our cost of production and in some cases being falsely marketed as certified Australian organic jojoba. Under “real world� conditions as opposed to the experimental situation, yields were substantially less than expected. As our first shrubs started bearing the price of jojoba started falling. Then to make matters worse, shrubs started to suffer dieback. Each year more seemingly healthy trees died. Initially the root rot Phytophora was suspected. The AJIA organised a plant pathologist from Charles Sturt University to properly diagnose the problem, using R&D money raised from voluntary plant and seed levies. RIRDC assisted with this funding. Fusarium was the culprit. In addition to this Elsinoe, a leaf scab disease, was also diagnosed in some plantations. As with many small new rural industries the jojoba growers were too small to employ a professional manager and marketer. One grower, with the largest plantation, volunteered to do this in an honorary capacity. This seems to be a re-occurring theme with new rural industries and in retrospect we should have employed someone even if it meant an extra levy until sales came on-stream. We then employed a commissioned marketer, on a part time
basis, to create a branded product, establish new markets and set up web based sales. One grower suggested that as a group we were too focussed on growing the product, rather than marketing, and that we should be prepared to invest equal sums of money into marketing as we did on establishing our orchards. Having outlaid hundreds of thousands of dollars on establishing orchards, most growers gasped in horror at this suggestion. He has since set up his own dedicated jojoba marketing company, employed a full time marketer, chemists to formulate products and web designers. He has outlets in major pharmacies and health food stores. The industry has now entered the recovery phase. Jojobas have withstood the recent drought in eastern Australia (in some cases 10 years) very well and most growers have reported excellent seed set this year. For some growers, who had planted jojoba as a diversification strategy, the supplementary income, when annual crops such as wheat and canola had failed meant a welcome cash flow through a very difficult period. Prices are improving and yields are increasing as jojoba shrubs mature. Marketing still remains a challenge but that’s nothing new with these New Rural Industries. For most members of the jojoba association, jojobas will continue to be a profitable niche industry- not necessarily a path to riches but a useful source of income nonetheless. Tony Hamilton is a jojoba grower in central NSW. The opinions in this article are his alone and not necessarily those of the Australian Johoba Industry Association or Jojoba Australia Company Ltd.)
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by New Crops Researcher, Dr Rob Fletcher to describe that period after the initial exuberance of growing a new crop to the realities of confronting unforseen problems.
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How to be big without being big
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By Peter Fritz and Jeanne-Vida Douglas
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rowing a business, like starting a business, comes down to finding and catering to customers. The main difference between a large business and a small business is that a large business either has a few big customers or a large number of normal customers. What you need to do as a small-business owner who is looking to grow is find which of those two strategies works best for you and pursue those customers.
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In the commercial world there are four main routes to growth: acquisition, organic growth, the creation of intellectual property or participation in a federated system by forming partnerships with other, larger companies. Each requires different inputs and strategies, but the one fundamental requirement is that the entrepreneur must change and grow in their role as the business grows. Many people fail to manage these changes because they keep thinking about their company the way they did when they first began, and don’t stop periodically to consider whether the management styles they bring are working for the kind of company theirs has become. Management styles from a large corporation do not simply transfer from a small business, and vice versa. There are countless examples of senior executives who had failed to make their own small enterprise successful, and others of small-business people who run themselves ragged attempting to remain involved in every layer of a company that has simply expanded beyond their management style. Most businesses set out with a certain approach to customer acquisition. They may advertise, seek word-of-mouth recommendations or use pre-existing contacts to promote their products and services, and thus grow a strong initial client base. However, real growth requires new customers and the internal capacity to service those customers over the long term. It’s easy to look at the revenues of larger organisations without taking into account
the internal structures that enable those companies to sustain large revenues. The most risk-averse way of acquiring new business is simply to ramp up existing techniques, do what’s worked in the past and at the very least you’ll know what’s coming. Answer more requests for tenders, post more advertising or seek out a new business partner and expand your business through their contacts as well. The other way is to buy into another company, but these kinds of mergers are never as straightforward as they first appear. In a perfect world, mergers take place between companies with separate customer bases, happy staff and complementary skill sets. The resulting organisation, in theory, doubles its customer base and saves money by reducing costs in processing and production. However, in the real world mergers don’t happen between companies A and B, they happen between real entities made up of real people – and that’s where it can all become unstuck. Mergers can often lead to drops in productivity, as staff and customers question their allegiance to the new operation. Sales can fall away, and the costs of combining two separate companies often run way over any predefined budget. Small companies tend to take over other small companies, specifically to take over their customers in a single hit rather than win them over painstakingly one by one. The idea is to ramp up productivity, increase customers and reduce costs, but the complexities and costs of mergers are often misunderstood. Mergers and slowly acquiring new clients are the most obvious path to growth, but both are slow and fraught with difficulties. If growing very large very quickly is your end goal, the most effective way to go about this is to focus on the creation of intellectual property, and to partner with a very large company and piggyback on their infrastructure and distribution channels. Large companies already have access to large numbers of small customers or small numbers of large customers, and have already set up the distribution systems you need as a small company to get your product off the ground.
Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
Stop for a moment and ask yourself if Bill Gates would ever have been able to launch Microsoft if it weren’t for the fact that IBM decided to adopt his QDOS operating system for its personal computers. Would Frank Lowy ever have become Australia’s richest man without joining forces with major retailers David Jones and Woolworths? No-one, in life or in business, survives in a vacuum, which is why it’s important to remain aware of those around you, what they have, what they need and how your business might be able to operate in conjunction with theirs. But remember that, like customers, these potential partners do not owe you their business. In the same way that you owe the customer the favour of supplying a good or service in the right place at the right price, the same goes for distribution partners. The best way to deal with them is to offer to make their lives and businesses simple and straightforward. Don’t go to a potential distribution partner expecting them to give you anything; go with an offering that will fit into their model. Growing means finding customers, and finding customers often means working with large distributors. The challenge when it comes to large distributors lies in actually convincing them to work with you in the first place. The distributor
is in effect a new customer to whom you need to sell both ideas and goods. Like all partnerships, distribution arrangements need to be based around mutual interest, and in the case of a small company catering to a much larger company, the onus is generally on the smaller company to make itself relevant to the larger one. Most small companies find it difficult to be relevant to large companies because they focus on what they are bringing to the relationship, rather than on what the larger company would gain from the relationship. But size, although tempting, may not necessarily be what you need, and you may spend months courting an impossible relationship while letting other opportunities slide. Before you approach potential partners, you need to know how big you’re actually able to grow. Being big is risky, especially in a small market, and often it is better to create slow, steady growth rather than sudden spurts. This is where having the time to think strategically becomes so important. You, as the head of your own company, need to spend a lot of time considering your surrounding environment, and looking for potential partnerships. Talk to everyone. Don’t filter people on the basis of who they are today, because people move and change. Take time to network and to create an extensive list of business contacts, because if you want to grow you need to find the right sorts of opportunities, whether they be partnerships, acquisitions or distribution deals. This is an excerpt from the book The Profit Principle, and is printed with approval of the authors and publisher. It is available from all good bookshops and online at www.theprofitprinciple.com.au.
COMPETITION – Win a copy of “The Profit Principle” 1. Search for New Rural Industries Australia’s page on Facebook. 2. Post on the NRIA’s Facebook Wall, a statement of 40 words or less, detailing why you are passionate about a new rural industry/product – either one that you are directly involved in, or one that you, as a consumer, think is superb. (Note: a personal Facebook page is required to post on another’s page. If you do not have a Facebook page and do not wish to start one, send your statement of 40 words or less to lana@nria.org.au for posting). 3. Tell your colleagues, friends and family to go to the NRIA Facebook page and choose the statement they LIKE best. 4. The statement with the most LIKES by 10 May 2011 wins a copy of The Profit Principle. Congratulations to Heidi Chin of WA who won the competition last issue for the most LIKED photo. Heidi posted a photo of an organic capsicum flower.
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The trick to working with a much larger company is to make it worth their while, while not pricing yourself out of the picture. There are numerous examples of small entrepreneurs who stay small despite having a novel product to take to market. Many fall down somewhere along the path to commercialisation, rather than in the initial development stage, because the path to the customer is more treacherous than the path of innovation. Because distribution partners are a route to many customers, they need to be treated like one very big and very important partner, and the key to success lies in fitting into their existing practices.
Building a healthy soil for crops and livestock
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healthy functioning soil is essential for the healthy growth and development of plants, animals and man. For over a century since the world became industrialised, agriculture too has become industrialised with the result that the soil has suffered. A healthy soil needs the ability to maintain its own balance naturally. This is impossible with the application of salt based fertilisers, toxic pesticides and herbicides which have become more and more necessary as the grower seeks forever increasing returns. For many growers it has become a vicious cycle with more and more inputs needed to maintain the yields while the soil slowly becomes more depleted and lifeless. And why? The answer requires a good understanding of the soil food web, a community of organisms living all or part of their lives in the soil and maintained by allowing the soil to function naturally. The soil food web is a complex living system in the soil wherein fungi, bacteria, protozoa, nematodes and many other small creatures all have a role to play in converting gases, organic material, releasing nutrients and being part of a healthy functioning soil structure which supports healthy plant life. This cycle is complex but when understood allows the farmer to farm in tune with nature and more productively. With the rising costs of inputs, the changing weather patterns and with the subsequently reduced returns, more and more farmers are questioning the information they have been traditionally accepting. Even for the farmers who are in areas where they get good rainfall, costs are steadily creeping up and productivity, in the case of broad acre farming, has been slipping over the last
By Helen Disler and David Davidson
10 years. Many farmers too have discovered that when they did not apply the normal inputs–due to lack of good conditions and/or money–the farm did not suffer. These farmers are now seeking other ways to have the soil deliver and to have the plant grow, as what they have been doing simply is not working any more. The result is that many farmers now appreciate the importance of soil biology, the soil life and the ability of the plants to harvest over 95% of their own constitution from the atmosphere such is their complexity. If this is true, that over 95% of what makes up the plant originates from the atmosphere, why then do we keep adding things they ask? They realise that what they need is to understand how nature works and allow her, or at least aid her, in doing her work and help them with their farming.
So where do we start? If most industrial farming methods interrupt the soil food web and the connection between the plant hair roots and the soil so that it does not function as nature intended, we need to turn to farming methods that do work with nature, that is biological farming which includes organic, biodynamic, regenerative, sustainable and holistic management which all work with Mother Nature. Many farmers are adopting some, if not all, of one of these practices. Across the country there is a rapidly growing group of farmers who are now allowing native pastures to grow and incorporating these with their cropping, not spraying out weeds, making their own composts, brewing their own compost teas and microbes and practising with grazing patterns to see massive improvements. One of these biological practices which is becoming very popular due to its low cost in time, money and risk is vermiculture which includes the use of
vermicast (worm castings) and vermicompost teas. This method is used by backyard gardeners as well as farmers with many 1000’s of hectares. Vermicast can be made from any animal manure as well as a mixture of vegetable wastes, paper or cardboard or any material that was once living. These items are generally regarded as unwanted waste, but can readily be converted into rich life-giving soil.
However as all these nutrients are primarily produced in non available form, they require the biology that accompanies them to unlock them. This in fact, is one of the advantages that vermicast has over NPK chemical fertilisers, which are highly soluble, but are also prone to leaching. This means that much of the farmer’s money is wasted as a good percentage of the nutrients are washed away or become unavailable to the plant. A good example of this is superphosphate which CSIRO’s studies show it leaches and then it is locked up after only 6 weeks from application. This can be likened to you receiving a year’s supply of food put on your table all at once. In biological farming, the nutrients are released slowly as the plants require them with the result that plants grow stronger and more evenly, able to resist insect attack and disease. Another advantage of vermicast is that it is negatively charged which means that each gram of vermicast can hold up to 6 grams of water and will hold it until the plant itself sucks the moisture from it. This is why farmers using vermicast report pastures holding on long after other farms have dried off. This increase in water holding capacity is another factor in biological farming as carbon builds in the soil as stated by Dr. Christine Jones, a leading authority on soil carbon. This knowledge and understanding that the soil and soil management is the key, is driving farmers to create a more healthy soil. Traditionally farmers have used chemical soil tests to see if their soil is healthy. If it has a pH of around 6.5 and shows the right balance of NPK for their farming requirements they are happy. For decades farmers have been told to apply the missing basics to build the balance of the soil in order to get the best results. Now farmers are realising that without the soil biology found in a healthy soil food web being present, these inputs cannot be fully utilised and in fact can do damage to the soil microbes. Interestingly Dr. Elaine Ingham,
world renowned microbiologist, has stated that most Australian soils have all the minerals they need, but they are generally unavailable to plants, being still in the soil as small rock particles, waiting for the right microbes to come along and digest them and then excrete them in available form. Often now, farmers are getting the biology going before testing their soils. There are also some simple observable measures that will give you a good guide for finding out if your soil is healthy. A common one that we all know about is the presence of earthworms and other small creatures. Earthworms indicate conditions that are favourable for plant growth. They enhance water infiltration and soil aeration and cycle nutrients. They are a great start to knowing if your soil is healthy. If these are present – about 6 to a spadeful – it also means that your soil is holding some moisture and yet drains well. In a healthy soil you will find a spade will go in fairly easily and the soil will readily break into small crumbs. When you have a closer look at the soil, there should be some indication of a darker topsoil layer of over 5 centimetres and also evidence of many fine roots growth throughout. Another indicator is the percentage of living ground cover which should be over 75% to protect the soil biology and eventually increase soil organic matter. Many farmers following biological farming practises will use these simple measures and record the results to keep an eye on their soil health. These farmers are now seeing the return of good friable living soils, the return of grasses and the disappearance of weeds and, as the biology works, bringing fertility back to the soil. For more information: www.farmingsecrets.com
Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
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Many are discovering well made vermicast contains Nitrogen, Phosphorus and Potassium. It also contains other valuable nutrients such as carbon, magnesium, calcium, zinc and copper. A well made vermicast also contains mycorrhizal fungi or spores as well as humic and fulvic acids thus reducing the need for expensive additives.
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Are Farmer’s Markets right for you?
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ecent years have seen a noticeable revival of farmers’ markets across Australia. Consumers are showing a rising concern for the origins of their food, and the opportunity to purchase their fresh food and other products directly from the grower is driving the growth of the farmers’ market sector.
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In Victoria – the farmers’ market capital of Australia – there are over 90 farmers’ markets operating regularly, with 70 per cent of these located in regional Victoria. Each week, 22 markets operate across the state, attracting around 35,000 people, and according to a Parliamentary Inquiry report released in October 2010, generating $227 million per year for the state economy.
By Youna Angevin-Castro
“We’re small scale producers. We have a small breeding herd, so we’re there from the birth of the piglets, right through to the end product. I pack the meat at the butcher’s, and I make the sausages myself, and then we take the products to the farmers’ markets. So every step of the way we’re involved in the production of our meats.” Elizabeth said. “Because we are small scale, we don’t produce the quantities that would allow us to supply our products to restaurants or shops. It also means that our costs are very high, and we simply would not get the returns at point of sale that we can get by selling directly to the consumer. For us, its really the only way for our business to be profitable.”
The growing popularity of farmers’ markets presents operators of small or niche agricultural enterprises with a unique opportunity to bring their products to market. For some, the markets are an opportunity to introduce a novel product to consumers and to gauge it’s potential in the wider marketplace. In the case of smaller producers, the farmers’ markets provide an avenue for selling small quantities of produce that would otherwise be insufficient to meet the needs of large retailers or traditional wholesale markets.
Elizabeth attends three markets each month, each of which requires many days of preparations to build up stock for sale on market day. One of the more popular markets in Melbourne is the Collingwood Children’s Farm Market, held once a month in the inner urban suburb of Abbottsford. To attend the market, Elizabeth must get up at 3am, and drive three hours from home to set up her stall. As a food retailer, she must ensure that her products are packed, transported and displayed according to strict food health and safety guidelines. Yet, despite the efforts required, she values the control she maintains over her business by selling through the farmers markets.
For free-range pork producer Elizabeth Behrendt of King Valley Free Range Pork, it is the latter that brings her to the farmers’ markets. Growing rare-breed pigs from her farm in Oxley in North Eastern Victoria, Elizabeth sells her meat products exclusively through the markets. As a small producer, working alone, she says she simply cannot produce quantities that would allow her to sell her gourmet products through third party retailers.
“Being able to discuss my product with the customers, telling the story behind its production, and even providing advice on how to best prepare it is something that I value enormously. We invest so much into our pigs, and we really feel it is important to respect the meat, so is critical for me that the consumer understands our product and appreciates what is involved in producing it,” Elizabeth said.
Ginseng producer John Dubois has been attending farmers’ markets for many years and agrees that the opportunity to talk to consumers is often where the value of the activity lies.
This customer contact has also allowed John to identify opportunities to broaden his client base by generating new product lines. “We started off with just fresh and dried ginseng root products. But over the years I’ve added powdered ginseng, ginseng tablets and ginseng ointment to our range to meet customer demand.” But while Elizabeth and John have years of experience through trial and error to understand how farmers markets can work for them, new businesses may not have the time or resources to test the markets to see if it is the right approach for them. For this reason, the Victorian Farmers Markets Association (VFMA) has introduced a series of free workshops for prospective stall holders to help them better prepare for the market experience. Workshop coordinator Erena Norgard believes that the workshops are an opportunity for producers to determine if farmers’ markets are right for them. “We cover a range of topics, including accreditation, how to access the markets, compliance information such as permits and insurance and how to get the most out of the markets through marketing and sales technique.” After attending the workshops, producers are encouraged to apply some of this information to their individual circumstances, and once they are ready to attend a market, they are offered a subsidised stall at the VFMA-run farmers’ market at the Melbourne Showgrounds. “This gives new producers a chance to try out the markets and gain a better understanding of what is involved before they go out and do it for themselves,” Erena said. “It also allows them to get a feel for their competition and test their product in a real-life market situation.” Erena believes that farmers’ markets offer rural producers a chance to meet like-minded people and develop a system of support for their business.
“The workshops are also a great opportunity for people to communicate their experiences and develop a network within the farmers’ markets. That sense of community is a really important element of the markets, and it certainly one of the benefits to producers and consumers alike.”
Things to consider before selling at a farmers market: Know your product and your target audience, and select a market that will attract the type of customers you are looking for. Visit several markets beforehand to get a feel for the general atmosphere. Make sure you understand the legal requirements of being a market stall holder. If you are selling food produce, make sure that you adhere to the food safety regulations for production, as well as any food handling requirements with regards to transport, packaging and storage of your products. You will also need to ensure that you have the necessary insurance to sell at the markets. Join an accredited market. This ensures the authenticity of the farmers’ market, providing consumers with the confidence that they are dealing directly with the producer. “For me, going to an accredited market is really important,” says Elizabeth Behrendt. “I’ve been to quite a few regional markets where they’re not accredited, and they’re not really farmers markets. And my experience has been that those markets are quite difficult–anyone could go to the abattoir, buy some pork, and set up at those markets, and I can’t compete with that.” Know your competition, and understand the competitive landscape. This will help you to position your product appropriately, and target your marketing to the appropriate audience. Finally, understand and believe in your product. If you don’t stand by your product, then you are unlikely to convince other people that they should buy it. Youna Angevin-Castro is a communications consultant and freelance journalist. She leads Castro Communications, a print and web services organisation specialising in innovation in art & design, science and agriculture. www.castro.com.au
Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
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“These days we find that being at the farmers’ markets is less about sales on the day, and more about marketing. Some days you won’t sell enormous quantities, but by being at the market people become aware of your product, and you have an opportunity to form a relationship with potential customers, which may translate into sales for us down the track,” John said.
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Biosecurity – whose responsibility?
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aintaining good biosecurity is not just a matter for governments or industry bodies – every grower has a crucial role to play according to Kyle Thoms, General Manager Strategy and Communications of Plant Health Australia (PHA). “There are a range of relatively simple, low cost measures that growers can adopt to minimise exotic pest and disease threats. In the main these correspond to good farming practice for managing any sort of pest risk.
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“Given the potential harm an incursion could cause on-farm and to broader industry, better biosecurity invariably makes good business sense.” Mr Thoms said. “After all, without good biosecurity, Australia’s $41.8 billion1 agricultural industry is at serious risk of potentially devastating incursions from threats posed by pests and diseases”. Biosecurity is a reasonably new term that describes all the measures taken to exclude, manage and eradicate unwanted biological pests and diseases. It encompasses the perhaps more familiar notions of plant protection, farm hygiene and quarantine. Despite its importance to productivity, product quality and trade, a study soon to be released by PHA and Animal Health Australia under the Farm Biosecurity project has found that one in five Australian producers still don’t know what the term ‘biosecurity’ means. The significance of this statistic is even more apparent when one considers how essential biosecurity is to the future of rural industries and the wider community. The bottom line is that biosecurity breaches can directly affect market access, sustainability of production, food security and food integrity. This is not to mention the high costs of mounting eradication responses and the
impacts felt to the livelihoods and lifestyles of producers. Australia’s status as an island has offered some protection from the arrival of exotic pests and diseases. However, with ever increasing and speedier movement of people and produce, the nation’s plant health status is being continually tested. In order to maintain our world-class level of protection and safeguard Australia’s agricultural industry, Australia’s biosecurity system has been developed to encompass the entire biosecurity continuum. Outlined in Figure 1, this system includes offshore surveillance and control activities, science-based import protocols, various quarantine measures and onshore surveillance efforts. There is no single agency with responsibility for the operation of Australia’s biosecurity system across this continuum. Instead, roles are shared through a partnership between governments, industries and the general community. This framework of shared responsibility is the system’s greatest strength but also a potential source of weakness if all groups do not meet their obligations and work cooperatively. Pre-border security and the development of Australia’s biosecurity policy is largely the responsibility of Biosecurity Australia, a unit within the Biosecurity Services Group (BSG) of the Australian Government’s Department of Agriculture, Fisheries and Forestry (DAFF). Biosecurity Australia undertakes science-based risk assessments and provides quarantine policy advice to enhance Australia’s access to international markets. To further minimise the risk of exotic pests and diseases entering our country, the Australian Quarantine and Inspection Service (AQIS) manages quarantine controls at our borders
including import and export inspection, certification and treatment , and operation of postentry quarantine facilities for handling high risk materials. Upwards of 11 million travellers enter and leave Australia each year, with this figure likely to double in the next 15 years or so. At the same time more than 140 million mail articles and 20 million tonnes of sea and air cargo, including more than $2 billion in cereal, cereal preparations, vegetables and fruit, arrive in Australia annually and this figure is steadily growing.
No matter how strict Australia’s quarantine measures, the risk of pest and disease entry can never be completely eliminated. For this reason a strong post-border biosecurity system is needed to ensure pests and diseases that do penetrate the border are detected rapidly, do not establish, and, where possible, are eradicated. Kyle Thoms says that achieving this goal is not as easy as it sounds. “Many of the most serious exotic pests of crops if not detected soon after arrival will spread too quickly for eradication to be an option. Early detection and swift response are vital. But success relies on everyone vigilantly being on the lookout for pests and diseases and doing what they can to minimise their establishment and spread. Situated directly on the front line, this is where growers have an important role to play.” PHA provides two ways that industries can protect themselves from the effects of an incursion. The first is developing an Industry Biosecurity Plan (IBP). IBPs identify possible pest threats, devise activities that reduce the threat, and lay out contingency plans in the event of an incursion. The IBP will also provide advice on areas requiring action in the future including research priorities. Another step that many plant industries take is signing the Emergency Plant Pest Response Deed (EPPRD) which details the set of arrangements in place for handling responses to exotic plant pest incursions. The Deed is a formal legally binding agreement between Plant Health Australia, the Australian Government, all state and territory governments and national plant industry peak bodies. It covers
the shared management and funding of eradication responses to emergency plant pest incidents by governments and industries. Importantly, the Deed includes the potential for affected growers to receive reimbursement for losses they incur – reimbursement that is not available unless industries have signed the EPPRD. Underpinning the Deed is PLANTPLAN, the agreed technical plan that guides responses to emergency plant pest incidents. Plant Health Australia assists industries to prepare. Guidance is given on contingency planning, the development of surveillance systems and diagnostic standards, the delivery of response training and simulation exercises. Technical support is also provided during emergency incidents. Kyle Thoms maintains that the challenges for Australian farmers are greater than ever in today’s climate as markets place more importance on biosecurity. Consumers and overseas markets insist on cleaner produce and more environmentally responsible methods of production. “Only if we all take responsibility – growers, governments, industry bodies and everyone down the supply chain – can we overcome the barriers and maintain or expand market access.” PHA is an independent, not-for-profit company, established in 2000 to be the lead national coordinating body for plant biosecurity in Australia. The company operates to maintain strength in the government and industry partnership and to deliver a range of services to improve policy, practice and performance of Australia’s plant biosecurity system and build capacity to respond to plant pest emergencies. Visit www.planthealthaustralia.com.au for further information or contact PHA on (02) 6215 7700. 1. Australian Bureau of Statistics–7503.0–Value of Agricultural Commodities Produced, Australia, 2008-09
Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
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Within the bounds of international rules of trade, Australia maintains the toughest quarantine standards in the world. Against the backdrop of increased traffic in people and products, it needs to. Of the 20,000 or so pest and disease detections by AQIS each year, typically more than 25% are found to be exotic.
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Farm chemicals – the importance of safety
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any farm chemicals including pesticides, animal health products and fertilisers can pose significant threats to primary producers, produce consumers and the environment. As a consequence, primary producers are required to comply with stringent legislative, OH&S and industry obligations relating to the use, handling and storage of farm chemicals.
Farm chemicals can be hazardous Exposure to certain farm chemicals can cause short and long term health effects, from immediate symptoms such as nausea, headaches, skin rashes and burns, to more permanent and invasive problems, including, in some cases, kidney failure and deterioration of the nervous system. In order to use, handle and store chemical products safely, it is critical that these health effects be identified and understood so that preventative measures can be taken. To identify the effects and preventative measures, users should refer to the Material Safety Data Sheet (MSDS) for each product that they use.
farm tips
What are MSDS?
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MSDS are standardised reference documents that provide information about specific chemical products. An MSDS provides valuable information about: • the basic physical and chemical properties of the chemical; • the correct safety procedures when using, storing, handling, transporting or disposing of the chemical; • the possible health and environmental effects; and • what to do in accidents or emergencies involving the chemical.
Who should have access to MSDS? MSDS are available from suppliers (i.e. manufacturers) as hard copies or online from commercial providers of MSDS such as FARM MINDER (www.farmminder.com.au), PEST GENIE (www.pestgenie.com.au) and MSDS.COM.AU (www.msds.com.au). Primary producers are required by law to obtain an MSDS for each hazardous substance that
they use and to make sure that each MSDS is readily accessible to farm employees who may be potentially exposed to such hazardous substances. As MSDS are required to be reviewed by manufacturers every five years, but in practice are revised much more frequently, it is common for employers and chemical users to outsource the location and maintenance of up-to-date MSDS to specialist service providers, such as the aforementioned.
Additional requirements for users of hazardous substances To meet OH&S obligations and hazardous substances regulations, users of farm chemicals which are classed as hazardous are required to keep a hazardous substances register and document the hazard identification and risk assessment processes in the workplace. Online systems such as FARM MINDER (www.farmminder.com.au) facilitate compliance with both of these requirements.
Keeping on top of your MSDS documents with FARM MINDER FARM MINDER is an innovative and powerful online system, which manages and plans farm operations and facilitates compliance with all legal, OH&S and quality control requirements related to the storage of chemicals and use of pesticides and animal health products. The system is continually updated with the latest product information from two of the largest commercial Australian databases of agricultural product information–Pest Genie and MSDS.COM. AU. FARM MINDER greatly assists users seeking critical farm chemical information, including MSDS, labels and usage rates. To ensure that you comply with your legal, OH&S and industry obligations, subscribe to FARM MINDER by visiting www.farmminder.com.au or www.nria.org.au, or by calling 1300 673 700. Subscription discounts apply to NRIA members.
Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
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Continued from page 7
include reviews into chemicals such as procymidone, carbendazim, quintozene and endosulfan, all of which have had implications for agricultural producers. On the radar are the possible and imminent implications of reviews into dimethoate and fenthion. These reviews could have significant ramifications for a large number of horticultural crops. For example, it may leave them without fruit fly treatments required to gain access to both intra and interstate markets. The submission recommends a new platform for the delivery of a sustainable and effective approach through a single, national regulatory framework. The proposed approach allows Australian agricultural industries to work with other stakeholders on a commodity and national scale, to identify and develop meaningful pest, disease and weed minor use priorities, reduced risk products, risk reduction strategies and ultimately effective, targeted crop-specific IPM programs. These will, in turn, provide cost effective and meaningful guidance to minor use agricultural sector organisations and to HAL, GRDC and RIRDC on funding priorities for IPM, biosecurity and other areas of sustainable crop protection policy. Aside from the submission delivering meaningful outcomes to minor use producers, it also fulfils legislative goals, plus policy outcomes in the current COAG review. Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
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Need AN ALTERNATIVE SOURCE OF INCOME?
Do you grow or sell wildflowers as cut-flowers?
Have you considered Deer Farming?
• Get connected.
Over the last 35 years the hard work has been done. Our small but viable industry has all the structures in place, our marketing chain is efficient and there is strong demand for our products domestically and internationally. Visit the Deer Industry Association of Australia (DIAA) website www.diaa.org for comprehensive information on all aspects of deer farming. Check out the interactive gross margin comparison with other grazing species. Contact the Deer Industry Representatives on the website and speak to farmers who are listed for their viewpoint.
• Improve yield and returns.
FARMERS…
• 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.
2011 EVENTS: Regional Conference, Perth, WA – 12/13 May 2011 National Flower Conference, Brisbane, Qld – 12/15 July 2011 Regional Conference, Grampians, Vic – 12/13 Aug 2011
www.wildflowersaustralia.com.au Executive Officer Tony Larkman, ph. 0434 263 664
National Peak Body representing the
Olive Industry of Australia Stay informed about the Australian Olive Industry
Visit our website to find out more
fresher tastes www.australianolives.com.au
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Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
HYDROPONIC substrates
For all your Coir (Coco) requirements: • Grow Bags • Easyfil® PlanterBags • HydroBlocks • Discs and • Bulk Mixes Online Hydroponic Resource: www.galuku.com Free Call: 1800 991 709
For more information please contact mohair@mohair.org.au dnL890
The Carbon Farming Initiative, what’s in it for you? Soil carbon is key to soil health An introduction to Carbon Farming and Trading: 1 day Farm Ready Approved Program Ph 02 6374 0329 or www.carbonfarmersofaustralia.com.au
Passion to Profit – the magazine of New Rural Industries Australia Issue 3 – 2011
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“The whole is greater than the sum of its parts”
Make your company PART of the BIG picture for Australian new rural industries…
Australian new rural industries provide locally grown/bred products, diversification choices, niche market opportunities, gourmet foodstuffs, and sustainable operations into the future. They may be young – but that they are not small in scope or potential.
Opportunity now exists for companies and organisations to be corporate members of New Rural Industries Australia. Be part of the big picture. Build alliances and grow your business.
Join us today – www.nria.org.au