presentation - australian potato industry overview - cape town 2010

7/27/2019 Presentation - Australian Potato Industry Overview - Cape Town 2010

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Australian Potato R&D InvestmentUpdate

IPG MeetingCape Town, 2010

Richard Mulcahy (AUSVEG)

Kevin Clayton-Greene (TAG)

Stuart Burgess (HAL)


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Market SegmentsThe use of potatoes is varied & within Australia the industry can be

broadly split into 4 unique segments:

Fresh Potatoes This refers to potatoes sold for fresh market

Processed Frozen This refers to potatoes sold primarily as frozen

chips, though other value added items such as potato gems have

recently been introduced

Processed Crisps This refers to potatoes processed & sold as potato

chips

Seed Potatoes Potatoes grown as seed for processing & fresh

market use


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Australian Potato ProductionTrends

Australian potato production is fairly consistently around 1,250,000

tonnes fluctuating between 1,150,000 and 1,320,000 over last

decade

Total area planted approx 34,000 hectares

The average yield per hectare is approx 35.5 tonnes These numbers are in line with historical data especially for the past

decade

Area planted generally decreasing. In contrast, yields had been rising

for the past decade (hence static total tonnage)

The latest figures are largely consistent with these overallmovements


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Domestic Value

Gross Value of Production (GVP) approx $515 million

Average price per tonne somewhat volatile over past few

years but generally declining in frozen processing markets

Anticipate steady decline in production levels over coming

years with general sense of pessimism


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State

Production

VIC (22%), SA(31%) & TAS(23%) produceapprox 75% of the

national potatocrop

SA has becomeincreasinglyimportant as outputfrom VIC & TAScontinues to fall

TAS potatoesprimarily used forprocessing


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Market Access

Domestic markets are free/no restrictions on production with the

exception in Western Australia where production has been (and

continues to be) regulated for over 40 years

Domestic movement of seed restricted by some states primarily because

of PCN (long running attempt to harmonise national PCN approach)

Imports of fresh & seed potatoes are prohibited to enter Australia

Developing export markets is quite difficult. Access to some important

foreign markets is highly restricted


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Potato Consumption Consumption data isfragmented & dated

latest officialstatistics (1997-99)

Per capitaconsumption was on

the rise in the 20years prior to 1999

Consumption hasfallen in recent years

down to 61.9 kg percapita

Period Average for 3 yearsending (kg)

Source

1979 50.1 Australian Bureau ofstatistics estimate



2006 61.9 AUSVEG estimate


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What is HAL ?

HAL is a Research and Development Corporation

owned by industry and is accountable for theeffective and efficient investment of the levy


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HAL members


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Levy Payer

Aust Govt

DAFF

HAL

Fresh and Processed IAC

PIB - Ausveg

and PPAA (PPonly)

VC Advice

Funding

Benefit

Invest in projects

(Service providers)

Consult

Roles and responsibilities

Technical AdvisoryGroup (TAG)


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Potato Levy Split

Collected by Levy Revenue Service (LRS) at first point of sale

Horticulture Australia (HAL) manages those funds which are matched

dollar for dollar by the Australian Federal Government

Split between Fresh and Processed industry sectors (approx. 35:65)

Treated as separate investments

Funded revenue can only be used for R+D outcomes

Australia does not have a national marketing levy currently under

review Reported to Federal Government as one investment


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Where do we invest levies?

Potato Industry strategic plans


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PotatoIndustry

AdvisoryCommittee

PotatoAnnual

Investment

PlanR&D

Program

AnnualReport

ToLevy

Payers

The focus is on sound commercialoutcomes

Potato Industry Strategic Plans


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Fresh & Processed Potato Strategic Plan (2006-11)

4 key pillars

1. Improve consumer demand forAustralian fresh potatoes

2. Improve industry

competitiveness

3. Improved industry communication andinformation systems

4. Improve leadership and

management capability


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Fresh Potato R&D Program - key projects

Biosecurity e.g. Potato Cyst Nematode (PCN) NationalHarmonisation, Zebra Chip / Psyllid, Risk Assessments

Industry Communications Potatoes Australia and otherrelated activities

National Potato Breeding interim program (underpinningtechnology)

Investigating establishment of potential marketing levy


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Current value of 2010/11 Fresh Potato R&DInvestment against Government priorities

Productivity and Value Adding $105,436 23.4%

Supply chain and markets $84,580 18.8%

Natural Resource Management $33,880 7.5%

Climate Variability $19,080 4.2%

Biosecurity $59,749 13.3%

Innovation skills $55,467 12.3%

Technology $92,424 20.5%

R&D 2010/11 Total

$450,616 100.0%


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Processed Potato R&D Program

Australian Potato Research Program 2 (APRP2)

Five R&D program plus SED as manager

$8.5m over 5 years ($13.7m including researchpartner contributions)

Thirteen providers to HAL and industry


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Current value of 2010/11 Processed Potato R&DInvestment against Government priorities

Productivity and Value Adding $446,336 27.5%

Supply chain and markets $160,970 9.9%

Natural Resource Management $165,921 10.2%

Climate Variability $3,043 0.2%

Biosecurity $356,608 21.9%

Innovation skills $196,898 12.1%

Technology $279,646 17.2%

R&D 2010/11 Total

$1,625,147 100.0%


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Program outcomes

PT09004 IPM Technologies $1M Psyllid in IPM

Delivery of IPM strategy to manage tomato-potato psyllid that iscompatible with existing IPM strategies and reduced reliance onchemicals

PT09019 TIAR

$400k

Tuber-borne inoculum Delivering opportunities to use DNA diagnostics in Seed Potato

Certification schemes. Quantifiable measure of the influence oftuber-borne inocula on disease development under varying soildisease loads


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Program outcomes (cont)

PT09023 SARDI - $2.2M DNA soil diagnostictests

Delivering pre-plant, DNA-based soil tests for growers forquantification of soil-borne pathogens (Spongospora subterraneum,

Streptomyces scabies, Rhizoctonia AG2-1 and AG3) and risk factorsprior to planting (with supporting reference tools)

Delivery of service model and training developed as optional phase 2

PT09029 University of Melbourne $180K PED

Fundamental understanding of Potato Early Dying (PED) in Australia

cause (Verticillium, nematode interaction) Create a platform for future work


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Program outcomes (cont)

PT09026 DPI Vic $4.1M Soil health/diseasemitigation

Delivery of a decision chart/brochure describing soilborne diseasemanagement strategies based on soil amendments and nutrient

manipulations (based on research in APRP1 and APRP2) Research into novel approaches for disease suppression using

endophytes and 2,4-D

Validation of the role of irrigation water as a source of inocula forthe disease bacterial wilt in potato crops grown in the catchment ofthe Bunyip river


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Control of potato psyllid within anIPM strategy

IPM Technologies / PFR / Horticulture NZ

Project is on track

Colonies of three species of nominated predatorsestablished

Commercial sites identified in North and South Island totrial IPM approach


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Importance of tuber-borne inocula onseed potato health

TIAR / SARDI

Workplan developed to compare visual tuber inspectionprotocols versus two protocols for diagnostic samplingand testing

Sample collection by the TIAR seed certification team(mechanical peeling) commenced

Literature review of the use of diagnostics in seedcertification commenced


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Diagnostic test for soil-bornepathogens (international)

SARDI/TIAR/NZ PF/British PC/Hort NZ/DPI V

Standardisation of DNA testing commenced for powdery& common scab, Rhizoctonia solani

Experimentation to understand relative contribution ofsoil and seed inoculum for these pathogens and todetermine key factors in disease development

Validation of pre-plant use of the DNA tests planned forlate 2010


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Soil health/disease mitigationprogram

DPI V/TIAR/NZ PF/VicSPA/Flinders U/A&L

Trials underway or completed in Victoria, NZ and Canadaexamining effects of a range of interventions on commonand powdery scab (sulphur, pH modifiers, K:Mg ratios,

soil and foliar applications of iron, zinc and sulphur,Nebijin, formic acid and others)

DNA surveys of pathogens from paddocks under variousrotation regimes completed (TIAR)

Grower group presentations in Vic by research partnersfrom Canada and NZ


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Enhancing the understanding of Verticilliumin Australian potato production

University of Melbourne

PhD student to be appointed

The project is in the process of securing funding for asecond PhD to complete vital project objectives


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Overall progress

Science is generally tracking well considering latestart but some work will be delayed

Program admin and internal communication

mechanisms established

External communications and evaluation still beingbedded down


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Communication

APRP2 has limited communication resources

Mainly internal Website, newsletter, TOC, AC, milestones, etc

Some external Potatoes Australia, APRP2 Workshops


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Evaluation

APRP2 is primarily R&D based there is littleemphasis on uptake and adoption

Therefore, evaluation will be limited mainly to

activities and outputs

SED will manage the evaluation with support fromother projects


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Evaluation logic

Activities

Outputs

Short-term outcomes

Long-term outcomes

Things done during

the project (e.g.

scientific trials)

Tangible deliverables

from the project (e.g.

scientific papers)

Outcomes

measurable duringthe life of the project

Outcomes

measurable after the

life of the project

Outcomes include knowledge,

skills, practices, behaviours,

economic / social /

environmental improvements

Pyksis lessons learned APRP1


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Pyksis - lessons learned APRP1

Issue APRP2?

Focus on programs that address strategic industry needs Expand industry inclusivity ?Establish realistic expectations and outcomes for programs Ensure that programs remain focused Review and streamline existing management, procedures and

processes

Expand international collaboration Ensure effective communications and extension ?Establish program metrics, accountability, routine critical review andmechanisms for change

Expand the available funding sources ?


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APRP2 Program participants

A t li N ti l P t t


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Australian National Potato

Breeding Program

Strategic trait development

Government investment

Parent collection

International and local links

Crossing program to develop

parents Marker development

Phenotyping

Genomics

Commercial breedingprograms

Commercial investment

Cultivar development

Commercial focus andcultivar uptake

7 programs & growing!

parents

priorities

Science and IndustryA partnership and a continuous process


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Zebra Chip Mini-Summit

On 16 December 2009 AUSVEG convened a Zebra Chip IndustrySummit in Melbourne. 35 attendees from across the potato industryincluding AUSVEG State members, government, major potato growersand processors, and other relevant bodies.

Zebra Chip Disease Complex causes damage to potatoes and tomatoes,including Zebra Chip symptoms in the potato tuber when cooked andthe disease has been devastating in New Zealand (NZ).

The Zebra Chip Summit also established that Dr Kevin Clayton-Greene isto travel between Australia and New Zealand to investigate measuresbeing taken by the New Zealand industry. These meetings have beentaking place in New Zealand throughout 2010.

Recommendations as a result of the meetings include revisiting the

categorisation process given new information which has come to light(currently being completed), as well as a recommendation to establishcloser contact with Biosecurity Australia to work together on measuresto prevent an incursion.


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Across - Industry Program


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AcrossIndustry

Program

Potato Industry


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yCommunications

Managed by AUSVEG - Funded by

national potato levy with matchedFederal Government contributions

Produces Potatoes Australia magazine

bi-monthly

Potato section of AUSVEG websitelists R&D projects, news & information

Printed & promotional material tosupport projects


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Potatoes Australia magazine

85% R&D content Circulation: 2400 (approx) Leading potato industry communication medium Delivers R&D outcomes and information directly to potato

growers around Australia in an accessible and user friendly

format Recent articles have covered: Zebra Chip Disease; APRP 1

and 2; Verticillium Spp; Grower Profiles; Fast Facts aboutthe National Potato Levy

Upcoming coverage of Potato Virus Y; Potato Virus S; Peri-

Urban encroachment; health benefits of potatoes;Researcher Profiles

Issues Currently Facing the


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Australian Potato Industry

...apart from the impending ashes defeat...

Zebra Chip potential incursion huge threat to industry

PCN currently seeking to finalise national harmonisation plan

Biosecurity generally PVY Increase in the number of detections

Phasing out / resistance of chemicals

ETS / Carbon Price Introduction of an ETS / Carbon Price in 2011

Water security

Impact of Productivity Commission report Federally (risk to VC funding) Erosion of relative levy value

presentation - australian potato industry overview - cape town 2010

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