february-march 2012

Rural enterprise, innovation and changeFunding and economics of new rural industriesTax and Primary ProductionThe Australian native food industry

Issue 8, February/March 2012The magazine of New Rural Industries Australia

passion to

profit

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NRIA Conference and Expo 2010

Producing a product successfully

Tax and Primary Production

Collective Marketing – what are the choices?

Issue 1 October 2010The magazine of New Rural Industries Australia

PROFITpassion to

ISSN

183

8-60

16

Centrefarm: New, Rural,

Industry, Australia

How to be big

without being big

Building a healthy

soil for crops and livestock

Issue 3 April/May 2011

The magazine of New Rural Industries AustraliaPROFITpassion to

front cover sml.pdf 1 17/01/11 5:48 PM

2012 is Australian Year of the FarmerYou can help us tell the exciting story

of modern Australian agriculture

Once upon a time a land was built on the sheep’s back...

now Australian agribusiness is big business

Join the celebration at:www.yearofthefarmer.com.au

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

passion to

Global “Worming”Irrigation practices & systems

Agritourism: Connecting communities

Passion to Profit – the magazine of New Rural Industries Australia Issue 8 – 2012 3

con

ten

ts

A word from the Editor 4What is NRIA? 5From the CEO 5Industry Close-up – the Australian native food industry 18Rural Women 20

NEWSRural enterprise, innovation and change 6NRIA National Conference 2012 7Big roo harvest prompts export hopes 10Chestnut growers hire biosecurity officer 10Consortium working to build market for alpaca fleece 11French investigate Tasmania’s lavender potential 11Madura has their eye on US tea market 13New anti-microbial discovery from Aussie native plants 13Olives wounded in supermarket war 15Research finds Tea-Tree Oil effective against

Sheep fly-strike and lice infestation 15

COLLABORATIONFunding and economics of New Rural Industries 30 by Rural Industries Research and Development Corporation

Trebling food production s ustainably –

can we do it and what would it take? 33 by Simon Gould

Tax and Primary Production 32 by Alan Cummine

PROFILESHONEY 22Carmen and Todd Brown

of Honey Delight

MUSHROOMS 24Ian and Helen Chu

of Majestic Mushrooms Pty Ltd

SHEEP CHEESE 26Carolyn Davidson

of Towri Sheep Cheesery

OLIVES, SMALL GOODS, EGGS + 28Greg and Sue O’Donoghue

of Green Olive on Red Hill

Inside

22

24

26

28

2012 is Australian Year of the FarmerYou can help us tell the exciting story

of modern Australian agriculture

Once upon a time a land was built on the sheep’s back...

now Australian agribusiness is big business

Join the celebration at:www.yearofthefarmer.com.au

4 Passion to Profit – the magazine of New Rural Industries Australia Issue 8 – 2012

Passion to Profit the magazine of New Rural Industries Australia ISSN 1838-6008

Passion to Profit - the magazine of New Rural Industries Australia, is published online every two months, free of charge. It is sent directly to subscribers of New Rural Industries Australia as well as to new rural industry peak bodies and allied industries. Subscription to NRIA is free and available at www.nria.org.au. All rights reserved.

New Rural Industries Australia Endeavour House, 2/106 Capt Cook Cres. Manuka, ACT 2603, Australia.

Advertising: For advertising rate card contact and all ad bookings, email [email protected].

Editor: Lana Mitchell. [email protected]

Editorial Contributions are welcome and should be emailed to the editor.

Designer: Cheryl Zwart of Orphix

Publisher: New Rural Industries Australia

Advertising: [email protected]

Copyright: No material published in Passion to Profit may be reproduced in whole or in part without the written permission of the New Rural Industries Australia.

Disclaimer: The publisher reserves the right to refuse any application considered inappropriate. No part of this magazine may be reproduced in any form whatsoever without the written permission of New Rural Industries Australia. Whilst every care is taken to ensure the accuracy of the information contained within the magazine, the publisher, printer and their agents cannot accept responsibility for error or omission. Views held by contributors are their own and do not necessarily coincide with those of the publisher or editor.

Question – What does the author Julian Cribb, the agribusiness-expert Dr. David McKinna, the carbon-guru Sally Davidson, the humourous-foody Professor David Hughes, and the warm-hearted Indira Naidoo – all have in common?

Answer – All are playing key roles in the upcoming NRIA National Conference in Ballarat on April 19/20. We also have Matt Linnegar the CEO of National Farmers Federation, Geoffrey Bell the General Manager of Australian Year of the Farmer, Craig Burns the General Manager of the Rural Research and

Development Corporation, Danica Leys a co-founder of AgChatOz and RIRDC Rural Women’s Award finalist for 2012, and more.

As planning has been finalised over recent weeks, this conference is looking to be one of the best events on the 2012 calendar. Keynote speakers, open public forums, hands-on workshops, gala dinner, fashion parade and the most diverse exhibition show in Australia.

All details are on pages 7 – 9, and you can register online at www.nria.org.au.

Our next issue of Passion to Profit magazine (the April/May edition) will be a special edition for the conference and will be published online and also printed hardcopy. We are planning to include an industry directory of the many and varied new and emerging rural industries, highlights of Passion to Profit over the last year, and more insight into ongoing and future NRIA projects.

Our decision to publish this magazine online rather than print hardcopy (and shoulder the costs of printing and postage) was a right one, and we have had over 70,000 page views since June.

It does seem however that the magazine is still not reaching all that it should. There are two ways you can assist on this:1. Send out the link (or embed the magazine and

link) in your own industry, association or business communications.

2. Subscribe for free at www.nria.org.au and receive the magazine every time it is published, direct to your screen.

Enjoy this issue. Talk again soon.

Lana Mitchell Editor [email protected]

A word from the Editor

COVER PhOtO:Courtesy of Majestic mushrooms Pty Ltd

www.australianolives.com.au

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


Ben White

Wel

com

e

What is the nRIA?NRIA is engaged in capacity building and facilitation of project commercialisation for new, emerging and innovative Australian plant and animal industries.

We are strongly focused on regional development projects that advance the economies of rural and regional economies across Australia including tourism, indigenous and joint venture projects with manufacturing, investment and resource industries.

NRIA is focused on project development and industry advancement initiatives that tangibly grow the profitability and sustainability of individuals, businesses, associations and regional economies.

As a diverse rural organisation, NRIA leverages modern communications to facilitate information flow between all associated stakeholders. Using conferences, workshops, events, communications, social media, and this magazine, NRIA provides professional networks that support business growth.

NRIA is available to assist and collaborate with any party that shares business interests with our strategic objectives. We are a private, not-for-profit company that is ethically motivated to achieve the best for new, emerging and innovative rural industries.

We are business focused, working with industry to advance research outcomes into capacity building, commercialisation and ultimately the net profit line for all members and aligned industry associations.

BackgroundIn 2009, the Rural Industries Research and Development Corporation (RIRDC) hosted a two day workshop in collaboration with industry leaders, researchers and business investors from which the genesis for the idea of a ‘linking’ or ‘conduit’ organisation arose. RIRDC created the program ‘New Rural Industries Australia’ to advance the concept. After a 12 month ‘incubation period’ RIRDC endorsed the creation of New Rural Industries Australia Limited as a new not-for-profit private company in January 2011 with the remit to continue this work for the benefit of the same stakeholder group. NRIA is now focused on expanding their business strategy to incorporate regional development initiatives that enhance its ability to deliver into rural and regional Australian economies.

www.nria.org.au

It has been a busy start to 2012 and we are very pleased to have our Conference (19-20 April 2012, Ballarat) largely cemented down, with some excellent speakers and facilitators committed to the program; please see details within this magazine. It is a program that we hope will provoke and inform and that the forums will provide the much needed exchange of information and experience.

I spent the New Years period in the Kosciuszko National Park with family and friends hiking, fishing and mountain bike riding. The mountains were fantastic, and in fact I don’t think I have seen the high country ever look so good, with wild flowers in full bloom. What also struck me was the growth in summer tourism and the diversification of the area into a hiking, biking and fishing playground. In particular the growth in road and mountain biking tourists was striking. I mention this as a successful story of a regional economy diversifying and building positive economic activity on a year round basis; away from being perceived as merely winter snow fields.

In 2012 NRIA will be seeking to develop significant projects focused on regional development in Western Australia, the Northern Territory and Tasmania. Alongside our commitment to building capacity in new/emerging animal and plant industries, we believe there is a substantial and positive agenda working with public and private sector interests to grow sustainable regional economies through strong collaborative business projects. This will be a core focus of our business agenda into the year ahead with three projects in development at present.

NRIA is also working on several important RIRDC funded projects at present, including the ‘Minor Use Chemicals – Insects & Pathogens’ Project being delivered by Frances Shapter of Southern Cross University. The industry feedback on this project has been especially positive and we aim to grow our capability in this area for the benefit of all NRIA stakeholders. It is clear that addressing the gap in the management and execution of Minor Use Permits is very important to many production operations.

I hope many of you will be able to take part in our April Conference. Ours is a diverse and often unique area of business and the more input and collaboration we get, the more we are able to grow the relevance and value of NRIA for our stakeholders.

All the best, Ben

From the ceo


Product movement

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An invitation to attend the 2012 New Rural Industries Australia (NRIA) National Conference

Rural Australia has many faces and is in a continual state of change. Enterprise and innovation play a vital role in meeting the many challenges of economic pressure, fluctuating weather patterns, market supply and demand, as well as export trade.

New and emerging industries play an ever-increasing role for diversification, crop and stock rotation, small regional blocks, niche market opportunities, agri-tourism, and consumer demands for clean and green.

NRIA is about profitable commercialisation of new, innovative and emerging plant, animal and associated regional industries. We leverage R&D, national and international networks to build commercial alliances, and at the same time, seek to deliver strong benefits to stakeholder industries, build regional economies and benefit wider Australian communities through these activities.

Come to our second National Conference – showcasing the diverse range of new and emerging industries – and enabling producers to network, share information and gain knowledge that is key to their own business success.

Rural enterprise, innovation and change

When: Thursday 19 April and Friday 20 April, 2012Where: Mercure Hotel and Convention Centre, Ballarat, VictoriaRegistrations available through the NRIA website, at www.nria.org.au


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sJulian Cribb: Julian is a science communicator and author of The Coming Famine: the global food crisis and what we can do to avoid it. He has received 32 awards for journalism including the Order of Australia Association Media Prize, the inaugural Eureka Prize for environmental journalism, the inaugural AUSTRADE award for international business journalism, the Dalgety Award for rural journalism, two MBF Awards for medical journalism and five Michael Daley Awards for science journalism. His published work includes more than 7,000 print articles, 1000 broadcasts, 300 speeches, 400 media releases as well as ‘’The Forgotten Country’’, and six editions of ‘’Australian Agriculture’’.

Dr David McKinna: David is recognised as a preeminent Australian opinion maker on agrifood issues. David has been the quiet achiever behind some of Australia’s best known agrifood case studies: MLA’s international and domestic marketing strategies; the original Woolworths’ The Fresh Food People supply chain program; and award-winning milk marketing strategies for Rev, Big M and Skinny milk. David has spent the best part of his career as principal of global strategy consultancy McKINNA et al. In addition to work in agrifood, McKINNA et al has a history of strategic ‘trouble shooting’ in sectors as diverse as banking, education, FMCG, retail, home improvement and public governance. The consultancy has a global project portfolio, focusing on corporate strategy and export market development and is actively engaged in most established and emerging markets of the world. His ‘tell it like it is’ style makes him a sought after speaker, writer and social commentator.

Sally Davison: Sally is Manager for Climate Change and Sustainability Services at KPMG Sydney, and manages climate change policy projects including development of greenhouse gas emission estimation tools, analysis of financial implications of carbon tax, business readiness for the carbon price, the Carbon Farming Initiative, and gas emission estimation for agribusiness. She formerly worked as a Project Officer at the Australian Farm Institute, was Media Manager of Australian Wool Innovation, and a Rural Reporter for the ABC.

Professor David Hughes: David is Emeritus Professor of Food Marketing at Imperial College London, and Visiting Professor at the University of Kent Business School and at the Royal Agricultural College, U.K. David regularly speaks at international conferences and seminars on global food industry issues, particularly consumer trends, and is a strong proponent of building vertical alliances between key chain members in the food industry – farmers, life science and input companies, ingredient firms, food and beverage manufacturers, retailers and food service. He has lived and worked in Europe, North America, the Caribbean, Africa and South East Asia. David has extensive experience as an international advisory board member with food companies and organisations in three continents. Currently he is a Non-Executive Director of Berry Gardens Ltd – a U.K. farmer-owned berry fruit business (US$300 million turnover in 2009) with a blue chip customer portfolio; and on the Advisory Board of Rabobank, UK. He works closely with senior management of food and beverage firms on business strategy development and with governments on food policy formulation.

Rural enterprise, innovation and change – NRIA National Conference 19 – 20th April, Ballarat

Rural enterprise, innovation and change – NRIA National Conference 19 – 20th April, Ballarat

Conference forums: Open public forums will be held on; Innovation and Change; The Food Industry and Future Trends; and Financing, Viability and Profitability. The forums will be facilitated by Indira Naidoo.

Indira Naidoo: Indira is one of Australia’s most popular broadcasters. During her 20-year journalistic career, Ms Naidoo has hosted and reported for some of the country’s most distinguished news and current affair programs including host of the ABC’s Late Edition nightly news and as the anchor of SBS TV’s award-winning late night news service the World News Tonight. For the past four years, Indira has worked as a media spokesperson and strategist for consumer advocacy group Choice and as a Geneva-based sustainability communications consultant with the United Nations’ trade development arm – The International Trade Centre. In 2009 she was selected from 2000 applicants to be trained by former US President Al Gore as a climate change presenter. She is a member of the International Slow Food Movement and has written on food and sustainability issues for The Sydney Morning Herald and Gourmet Traveller Magazine, and writes the Saucy Onion food blog.

Forum expert panels: We have invited many knowledgeable and insightful individuals to share their views, including: Matt Linnegar (CEO of National Farmers Federation), Craig Burns (General Manager of Rural Research and Development Corporation, RIRDC), Geoffrey Bell (General Manager of Australian Year of the Farmer), Danica Leys (RIRDC Rural Woman’s Award finalist and co-founder of AgChatOz) and more.

Workshops: Hands-on workshops will be held on the topics of: Social Media; Carbon Farming Opportunities and Initiatives; Weed control and Minor use chemicals; and Agritourism.

Gala dinner & fashion show: Our conference dinner will showcase the incredible tastes and sensations of our new and emerging industries, and a fashion show will include mohair, cashmere, kangaroo leather, goat leather, crocodile leather, bamboo and more.

Exhibits: And based on public demand, the exhibition show will again provide networking opportunities not available at any other conference or show, with over 40 booths and virtually all new and emerging industries represented.

Sponsorship: Conference sponsorship opportunities are still open, and details can be obtained by contacting [email protected].

When: Thursday 19 April and Friday 20 April, 2012

Where: Mercure Hotel and Convention Centre, Ballarat, Victoria

Registrations available through the NRIA website, at www.nria.org.au


neW

sBigger roo harvest prompts export hopesThe number of kangaroos available for harvesting in Queensland has risen by 63 per cent on last year’s figures. Permits for the killing of more than 3 million kangaroos will be available in 2012.

John Kelly, the executive officer of the Kangaroo Industry Association of Australia, says recent weather conditions have meant the population of kangaroos across Australia have swelled to about 35 million. “The industry isn’t in the best position it’s been in, but there’s fairly good prospects coming for this year,” he said. Mr Kelly also says he expects the Russian and Chinese markets to open up this year, giving a much needed boost to the industry.

“I’d expect to see us back into the Russian market during the first half of this year, and I’m also quite confident that at some stage this year we’ll get into the Chinese market.”

Russia banned imports of kangaroo meat in 2009.

Mr Kelly’s confidence comes amid concerns out of western Queensland that the industry is struggling, with some shooters claiming there’s no market for their product. “I don’t think they have any reason to be nervous; this is an industry with an extremely bright future,” he said. “I expect the next five to 10 years to be a very exciting time in the kangaroo industry.”

Source: ABC Radio

chestnut growers employ a biosecurity officerHorticulture Australia has approved the appointment of Myrtleford’s Gary Baxter (with funding from peak body Chestnuts Australia Inc through a 10c/kg member levy). Working one day a week until July, Mr Baxter will liaise with Victorian Department of Primary Industries staff on chestnut blight eradication and tree surveillance.

Mr Baxter is educating growers in biosecurity techniques to minimise the risk of spreading pests and disease. Plant Health Australia has provided literature to help increase awareness and the project will be managed by TAFCO Rural Supplies at Myrtleford.

The first Australian case of the exotic disease was detected in the Ovens Valley in September 2010, prompting the removal of 4500 trees on nine farms at Eurobin, Wandiligong and Smoko. Infection on a 10th farm was detected late last year with the affected trees removed and the property quarantined.

Chestnut Blight Committee spokesman David McIntyre said the disease had affected nut sales.

“It has been an absolute nightmare for the affected growers who have lost their livelihoods,” Mr McIntyre said. “In the market place, a warped message has gone to consumers that farms have chestnut blight, therefore don’t eat chestnuts.”

Chestnuts Australia Inc president Heather Kane said a high priority was for the industry to sign up to an emergency plant pest response deed. Mrs Kane said the deed would allow a cost-sharing arrangement with the Federal Government. With a ballot of levy payers due in the first quarter of this year, an information meeting on the deed has been organised at Beechworth on February 4. The meeting will also incorporate a bioscecurity workshop and trial results for drip versus sprinkler irrigation.

Source: The Weekly Times

Passion to Profit – the magazine of New Rural Industries Australia Issue 8 – 2012 11 11Improving national biosecurity outcomes through partnerships

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

NOTHING WILL PROTECT YOUR CROPS AND THE ENVIRONMENT MORE THAN A GOOD HARD LOOK

Spotted anythingunusual?

EXOTIC PLANT PEST HOTLINE

1800 084 881

consortium working to build market for alpaca fleeceA large consortium of alpaca growers is working to develop a commercially viable market for alpaca fleece within Australia, by producing consistent, sizeable consignments of high quality fibre.

Many alpaca owners produce only a few kilograms of fleece each year and they usually give it to home spinners, or let it accumulate in their sheds. A different approach by Premium Alpaca it to market the fleece in bales of about 100 kilograms.

The first Premium Alpaca bales were offered at auction in mid-December at Fremantle in Western Australia. All three fleece bales sold were from South Australian breeders and realised about 10 per cent more than the highest advertised price at the time. They were the only fleece bales to sell in the 21-bale auction, going to Australasian company Alpaca Ultimate. The finest 20.2-micron bale made $20.35 a kilogram, the 22.2M bale $15.40/kg, and the 23.6M bale $12.10/kg. Premium Alpaca hopes to hold another sale in March.

It is the first time a concerted effort has been made to build a commercially viable market. Premium Alpaca is a natural progression from the Ultrafine bale scheme which has produced the world’s finest alpaca bale three times in the past five years.

French investigate tasmania’s lavender potentialMany are familiar with the images of South France, with fields covered in lavender. Unfortunately large sections of the French lavender crop are suffering from the effects of a bacterial disease and a changing climate and growers are looking to Tasmania as an alternative growing region.

That would work nicely for Essential Oils of Tasmania, who are aiming to increase lavender acreage from one hectare to 50 within a few years according to their agronomist Sam Smee. He says a number of growers have already shown interest in taking on the crop, which EOT plans to market globally at the very high end of the market.

“The lavender clones that we’ve got, we’ve had tested and it’s able to meet the international standard for high quality French lavender. So the oil that we produce, we can market all around the world as the very best, French, fine quality lavender oil.”


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s

madura has their eye on Us tea marketIt’s been stinking hot of late and with a little luck the rain will follow and give Tweed success story Madura Tea one of their best seasons. The Clothiers Creek plantation was opened in 1978 and now produces a million tea bags a day. Grown, crushed, dried, bagged and packaged all on site. It’s no mean feat, but with a little help from the skies, technical manager teas Michael Sales believes the company is in for a good season.

“This is our peak growing time, and right up until April,” he said, crushing the fragrant leaves in his fingers.

“The plants love the humidity but if there is too much UV and heat the leaves get very coarse. If we get some rain, to put in the fertiliser, we should get a good crop.”

Commercially, Madura is the biggest tea holding this far south of the equator, currently owned in a partnership between four Tweed families.

Tea is a static and traditional market, so the trick is to maintain a quality product but spread the word further, according to CEO Barry Cosier.

“We’re set up as a boutique tea maker, our blends are our own and we deal with the specialty market, not the commodity market,” Mr Cosier said. “People have come to expect quality from us.

“Once they try our tea they generally stick with us, we just need to reach more people.”

Mr Cosier said being a smaller player in the market meant the company could focus on customer service while still having room to grow.

“We’re employing more people and pushing the boundaries of our manufacturing, our online

business is also growing and we’re exporting into the US,” Mr Cosier.

“With so many Aussie companies moving parts of their manufacturing or production overseas people really appreciate a company that still has a completely self-sufficient farm and operates entirely in Australia.”

Source: My Daily News

new anti-microbial discover from Aussie native plantsQueensland Government scientists and researchers from the University of Queensland have discovered new anti-microbial properties in a combination of natural-plant ingredients, including two common native Australian plums.

A research team led by QAAFI food scientist Dr Yasmina Sultanbawa has discovered that when small amounts of the kakadu and Queensland Davidson plum are combined with organic acids they display new anti-microbial properties.

The researchers are now looking at ways to extend the shelf-life of kangaroo meat by adding native plum anti-microbial agents and using existing processing such as vacuum packaging for best results.

Dr Sultanbawa said that, in particular, the native plants can be used to extend the shelf-life of processed kangaroo meat in pet food, which would help to reduce the industry’s reliance on preservatives such as sulphides.

She said, “The pet food industry has traditionally used sulphites to extend the shelf-life of meat products. However, extended high exposure to sulphites can lead to thiamine deficiencies in small animals including cats and dogs.”

“Consumers are trending towards fresh, natural produce across-the-board – and that includes food choices for their beloved pets.”

The Queensland Government’s Department of Employment, Economic Development and Innovation (DEEDI) scientist Andrew Cusack said that this research could be applied to other minced meat products such as sausages where sulphite is used as a preservative.

“Additionally plant extracts have other benefits such as antioxidant properties which could contribute to better health,” Mr Cusack said.

Source: AFN: Thought for Food.

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Despite farming being one of the most physically and mentally demanding professions, farmers are often on their own when it comes to decision making.

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stay long after the supermarket war is over. The supermarkets have given no indication of when the discounting will end but have also consistently said they don’t believe the strategy impacts on producers. Blame for the current situation, Mr Miller says, belongs at the front door of Woolworths and Coles.

“Consumers didn’t ask for cheaper prices,” he said. “If there was third major player in the market it would be a different situation.”

The Aldi chain is seen as a challenger to the big two but doesn’t yet have market share to be a real threat to pricing policies. Government regulators should also accept their inactivity has allowed the supermarkets to have too much power in the marketplace, Mr Miller added.

“Clearly the watchdogs have been asleep. Hopefully they will wake up before even more damage is done to employment and industry in Australia.”

Source: Good Fruit & Vegetables

Research finds tea tree oil effective against sheep fly strike and lice infestationThe war against fly strike and lice infestations in sheep has taken a positive turn with new research showing that tea tree oil is very effective in treating both of the afflictions. The research, coordinated by the Rural Industries Research and Development Corporation (RIRDC), found that tea tree oil was highly successful in both preventing lice infestations and killing blowfly maggot larvae.

Dr Peter James from the Queensland Alliance for Agriculture and Food Innovation (QAAFI), who was the study’s lead researcher, said the effect tea tree oil had on lice infestations was particularly encouraging.

“Our lab trials showed that a 1 percent tea tree oil formulation reliably produced a 100 percent kill rate of lice and lice eggs, but we were very pleased to see that our pen trials generated the same results,” Dr James said.

“We carefully inspected the two week shorn sheep at two, six, 12 and 20 weeks after being dipped in the 1 percent tea tree oil formulation and at all points no lice were found in the wool. We also tested sheep with longer wool and the results showed that by jetting both 1 and 2 percent tea tree oil formulations louse numbers reduced by

olives wounded in supermarket warAustralian Olive Association president, Paul Miller, says most growers are now losing money. It’s to be a lean start to the year for the nation’s olive oil producers as they continue to struggle in the crosshairs of the supermarket price wars.

Coles and Woolworths, which control more than 80 per cent of Australian grocery sales, entered trench warfare over prices on Australia Day last year when house brand milk was discounted to $1 by Coles. Woolworths matched the discount soon after.

Since then, despite widespread concerns from producers, the discounting has spread to eggs, lamb, bread, olives and other primary products.

All discounted agri-industries have suffered and Australian Olive Association president, Paul Miller, says most growers are now losing money as the per litre farmgate price has dropped below the average cost of per litre production. He said growers could expect about $2.50 per litre sale price at present when the average cost of production is about $3.50 per litre. This raises concerns about sustainability of the industry and the enthusiasm for growers to continue when the more they produce at those prices the more they lose.

“The majority of our growers are definitely losing money,” Mr Miller said.

“Boutique growers and growers in certain areas where they have additional tourism income as well may be making money. Those growers wouldn’t say it’s great but they may say it’s okay.”

Growers have been innovative to find new outlets for their oil, such as farmers markets and over the internet from their own dedicated websites, but that doesn’t move the required volume at the right price so members remain at the mercy of supermarkets and prices paid by their suppliers.

In 2011, 16 million litres of olive oil was produced in Australia. About 80 per cent of the crop graded Extra Virgin quality with the balance Virgin and Lampante. About 10.2million litres was produced in Victoria. Extra virgin olive oil is made from fresh, healthy olives crushed as soon as possible after the olives are picked. The oil is extracted without the use of chemicals or excessive heat.

The pricing situation has become so dire that banks are now nervous about funding any development or expansion for growers because of the drop in prices and expectations the discounting may n

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Soft, warm, lightweight, luxurious fibre12 natural fleece colours - no dying requiredSoft padded feet minimize damage to soils

www.alpaca.asn.au For more information visit our website:

AustralianTRUFFLE GROWERS ASSOCIATION

The voice of the industry

STANDARDSQUALITY

INNOVATIONDEVELOPMENT

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Do you grow or sell wildflowers as cut-flowers?• Get connected.

• Improve yield and returns.

• Network with others.

• Develop the market.

• Stay informed.

WildFlowers Australia Ltd is the industry body for

wildflowers. We exist to build the industry and help

all on the supply chain.

www.wildflowersaustralia.com.au


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The emerging Australian Native Food Industry has enormous potential for the development of authentic Australian foods for both the Australian and international communities. New products are finding their way into the kitchens and pantries of innovative cooks and chefs, bringing with them new flavours and aromas, nutritional benefits and economic opportunities. The challenges are many, not least educating the dining and cooking public in the many advantages offered by these unique new products.

While indigenous Australians have an ancient and proud tradition of using many of the fruit, tubers, leaves and other plant parts in their diets over many thousands of years, the mainstream culture is only beginning to appreciate this rich natural heritage. Australian flora, containing over 25,000 species, provides opportunities to develop a diverse array of attractive new foods which we are only just beginning to identify.

Consider this – Australia is the only continent on earth where its edible species have yet to be domesticated and brought into the mainstream of its food supply. We Australians grow and eat every other continent’s native foods, but grow and consume very little of our own! The exception here is the macadamia – the first indigenous plant to be commercialised and grown widely.

As a new Australian rural industry, native food provides an opportunity that is vast – and daunting. Hundreds of potential species require work on everything from plant domestication and selection to orchard management, harvesting and post-harvest methods and handling. Then there is processing, research & development on new value-added products, market development and access, among the many requirements. It is little wonder that, until the last decade, growth in the industry has appeared sporadic and unfocused.

Enter the peak industry body Australian Native Food Industry Ltd (ANFIL), formed in 2006, to represent the interests of the industry on a national scale. With an industry unfocused and undercapitalised, ANFIL – in one of its first initiatives – made the decision that industry development focus on only the top 13 commercial

the Australian native Food Industry

By Martha Shepherd, Chair of Australian Native Foods Industry Ltd (ANFIL)

Tasmanian native pepper

Australian Native Fingerlimes – Rainforest Pearl

Quandong Macadamia Pudding with Quandong Ripple Ice Cream

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species. Once identified, an agreed common nomenclature was also determined, ensuring future market development would use the same common names. Here is the current priority list:

Common Name Botanical Name Main UseLemon myrtle Backhousia citiodora leaf & essential oilFinger lime Citrus austalasica fruitTasmanian pepper Tasmannia lanceolata leaf, spice &

essential oilBush tomato Solanum centrale dried fruitAnise myrtle Syzygium anisatum leaf & essential oilQuandong Santalum acuminatum fruitDavidson plum D jerseyana &

D pruriensfruit

Riberry Syzygium luehmannii fruitDesert lime Citrus glauca fruitKakadu plum Terminalia

ferdinandianafruit

Wattleseed Acacia spp seedLemon aspen Acronychia acidula fruitMuntries Kunzea pomifera fruit

There is still no formal data collection on production or sales, so the value of industry remains a challenge. The first ever stock take of the native food industry is underway, but it is still too early for final figures.

Preliminary data derived from the stock take indicate that farm gate sales are growing. For the 13 priority species above, farm gate sales (excluding value nursery stock and other inputs) are approximately $10 million per annum. This figure does not include many other emerging native food species, several of which already have significant production volumes, such as warrigal greens, salt bush and native mint. Nor does it represent the additional value of processed/value-added and retail sales of native foods.

Foodservice and tourism remain the major domestic markets, but significant growth in the export of some species has developed in last decade, particularly Lemon Myrtle, Finger limes, Tasmanian pepper and value-added products, with many exciting success stories.

Major retailers are increasingly stocking native food lines – for example, Coles new range of native food flavoured sausages; Virgin

Airlines and 7/11 Food Stores now stocking Potato chips with native food flavours.

Production variability is diminishing but still problematic. Several of the primary species are over-supplied for small cottage industry markets, but unable to supply large volumes necessary for commercial contracts. Wild harvest has significantly decreased over the last decade as orchards come into production, in all but four species – Tasmanian pepper, Kakadu plum, bush tomato and wattleseed – where wild harvest predominates.

Indigenous involvement in the industry is extensive in central Australia with over 500 people (mainly women) involved in wild-harvest, and commercial plantations in at least 10 communities. However, maintaining the involvement of indigenous Australians when the leap is made from wild-harvest to cultivation, and when large volumes are required for mainstream contracts has proved challenging. However, some positive and groundbreaking work is

Australian native riberriesBarramundi Paupiette with Finger Lime Dill Beurre Blanc

Native antipasti


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underway involving indigenous participants, researchers & commercial partners.

There is an increasing focus on the health benefits of native foods and their use in nutraceuticals and beauty products. A large number of producers and processors access both markets, which raises the question of whether “food” will remain the most appropriate definitional boundary for the industry in the future.

Marketing expertise and cooperative industry structures remain critical, as with many emerging plant industries. Some growers report that significant volumes of their product do not find a market, while other growers of the same species could sell more.

With key species covering the full range of climatic zones across Australia, the development of appropriate native foods can provide not only regional economic benefits, but environmental benefits as well. Native food species can be selected for their salt tolerance, drought tolerance, incorporated into enrichment plantings for carbon farming initiatives, or other rural diversification initiatives.

With such a daunting range of industry development needs, what has been accomplished so far?

In its most ambitious area of activity, ANFIL has overseen a vibrant and eclectic research effort in the 5 years since its inception, with projects completed or continuing in such diverse areas as:• Positioning native foods squarely in the market

by securing recognition of their traditional (not novel) status by Food Standards of Australia and New Zealand.

• Two studies of the nutritionally beneficial constituents (antioxidants, vitamins, minerals etc), of the priority species – many exciting results here!

• A study of the implications of international food standards codes for export of native food products – the vision is for an outward, export-oriented industry – we need to know the challenges in order to tackle them.

• Development of a ‘flavour wheel’ by an expert panel of food tasters, to help chefs and producers describe their products with a common lexicon – just like the wine tasting guides – only more nutritious.

• Collating all the known research, marketing and production information into a set of online ‘datasheets’ – the ANFIL Flavour of the Month project – see these on the ANFIL website.

• A set of video presentations of more than 30 recipes to be used in training young chefs in

TAFE Colleges around Australia–to be familiar and confident with Australia’s own indigenous ingredients.

• Agronomic projects investigating production and management strategies for orchard production of wild food species – moving wild species into cultivation will protect our natural heritage and secure the production advantage before it goes overseas.

• Studies of packaging and storage strategies and materials to maximise quality and shelf life of native food ingredients.

• Defining product standards to prevent adulteration.

• Analysing the nutrients in the products so manufacturers can generate nutritional panels online via the FSANZ website, with confidence.

• Supporting studies of the preservative properties of some native herbs for the seafood and kangaroo industries – blends of native herbs help both lengthen shelf life and add flavour complexity.

All this work has been achieved through a unique mix of individual, corporate and Government financial support, plus a huge quotient of voluntary work by the members of the various committees that ANFIL maintains. ANFIL has a special relationship with the Coles Indigenous Food Fund, which contributes money derived from sales of native food ingredients directly into the research program, where it is matched with contributions from growers, from research providers and RIRDC – giving maximum mileage from its resources.

For a new industry body, it has been a first 5 years filled with accomplishment, and at the same time, simply a small beginning for a new Australian rural industry holding so much promise and potential.

Want to learn more? The ANFIL website provides information and resources for all those interested in learning about this exciting new food industry – unique to Australia.

www.anfil.org.au

Pepperberry Brioche with Duck Liver Riberry Glaze


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enconference and new Women’s Awards program2012 will be a big year for the Queensland Rural, Regional and Remote Women’s Network (QRRRWN), formerly Queensland Rural Women’s Network, the first initiative being their name change.

Established in 1993 to meet the needs of women in rural communities throughout the state at a time when the lack of advanced communications systems and technology meant isolation was a key factor in women’s lives, the name change in 2012 reflects the fact that the network now attracts a great variety of members across all ages and walks of life, from agriculturalists to service providers to professionals and more.

The focus of the network remains with linking and building the capacity of women outside metropolitan areas of the state.

QRRRWN – pronounced ‘q-ren’ – also kicks off 2012 with the planning of their annual conference to be held this year in St George from 5 – 7 September in conjunction with Australian Women in Agriculture (AWiA) and the Balonne Skill Centre at St George.

The Conference theme in 2012 is ‘River of Life’: speakers and workshops are currently being finalised and the program will be announced shortly. Mark it in your diary NOW!

QRRRWN is also excited to announce their inaugural QRRRWN Awards Program which will culminate with the presentation of awards at the conference in St George in September.

Details of the Awards Program will be available in the next months. You can opt in to the monthly QRRRWN e-newsletter for regular updates on the Conference and the inaugural Queensland Rural, Regional and Remote Women’s Awards.

QRRRWN–http://www.qrwn.org.au/

AWiA–http://www.awia.org.au/E-newsletter

opt-in form: http://qrwn.org.au/email-newsletter.php

nsW Rural Women’s GatheringThe NSW Rural Women’s Gathering is an annual weekend event organised by local committees with support from the Rural Women’s Network. The organising committee makes key decisions, develops a theme and the weekend program. Each Gathering reflects the unique culture, industry, tourism and environment of the host community.

Women’s Gatherings are for ALL rural women including: farming women; Aboriginal women; women from culturally and linguistically diverse backgrounds; mining women; women in the fishing industry; women who live in regional cities, towns and villages; and coastal women. Gatherings are a well established annual statewide community event for all rural women.

This year’s Gathering is being hosted by the Parkes community and will be on 12-14 October 2012.

RWN is looking for interested communities who would like to host the 2013 NSW Rural Women’s Gathering. The Rural Women’s Network is responsible for ensuring the Women’s Gathering moves around the State and that committees have broad community support and the capacity to host the event. RWN reviews submissions annually, and using a set criteria, decide on the host town for the following year. This allows the chosen committee at least 12 months lead time and an opportunity


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to attend the current year’s Gathering. If you have a group of committed women, the capacity to host such an event and can demonstrate strong community support, contact RWN to register your interest.

Submissions for the 2013 Gathering will be accepted up to 31 March 2012. For more information go to the Rural Women’s network website at www.dpi.gov.au/rwn

e-learning and leadership programThe National Rural Women’s Coalition recently launched their latest project, the E-Learning and Leadership program.

Applications were sought, and after a flood of applicants, the final twenty program participants are an impressive group of women from a wide range of backgrounds, and have taken to the new technology used in the program with relative ease. It’s clear to all that they will enthusiastically pass on the skills gained throughout the program to others in their community and help to further develop both the offline and online skills of rural Australia – no easy feat, by anyone’s standards!

They also selected a further twenty highly skilled rural, regional and remote, Australian women to take part in the program as mentors to the participants. The talent and passion of the mentor applicants was beyond impressive, and again, not an easy selection process, however the best mentors were selected and matched to the program participants.

The program is now well underway with a number of live webinars already held through the cutting-edge National Rural Women’s Network’s interactive website and the collaborative work software, Blackboard /Elluminate. Both mentors and mentees will participate in a series of live webinars and online forum sessions throughout the course of the program, as well as work on a range of tasks together to further the skills and knowledge of all parties.

The program aims to build the leadership and representative capacity of women in primary industries, to strengthen the productivity of their businesses and workplaces. The core of the program is to further develop the resilience of rural, regional and remote Australian communities in a rapidly changing climate.

For more information, go to the National Rural Women’s Coalition website, at www.nrwc.com.au.

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BACkGROUNDHoney Delight is part of a family beekeeping business that spans four generations. While beekeeping as an agribusiness is not new, this family has some lessons to share about how sustained passion over decades can lead to new opportunities.

The original beekeeping venture was started in 1928 by Carmen’s grandfather, Frank Turner. The second generation is Carmen’s parents Len and Kathy Walker. Carmen and Todd as well as Carmen’s brother David and his wife Jodie are third generation beekeepers. Their children are now becoming a fourth generation of beekeepers.

In total, the family has over 3,000 beehives and mainly source their honey from national forests throughout New South Wales and southern Queensland. The majority of the produce is sold in bulk commercially. The very best of the produce is available through Honey Delight.

Recently, a partnership with a university led to a new opportunity for the family and this is where their sustained passion for beekeeping has led to increased profit. It has been known for some time that the Australian Tea Tree plant produces an antibacterial honey, similar to the New Zealand “Manuka Honey”. For those, who have been in the beekeeping industry for generations, it offered

renewed hope for opportunities to increase beekeeping profits. However, the Australian Tea Tree plant grows in limited areas, and the means to certify the antibacterial properties of honey in Australian are limited.

Q: What inspired to get involved in a new rural industry?

Todd and Carmen were inspired to become involved in marketing the families honey as a gourmet product when they noted there weren’t any local beekeepers in the Canberra area producing honey from specific species. When selling honey through the Canberra Region Farmers Market, Carmen and Todd were often asked about the added benefits of eating honey “We find people are very interested in how honey helps keep them healthy – they ask about the sugar content, the amount of antioxidants in honey, how local honey helps reduce hay fever, and which honey is best for you,” Carmen said. This led to a series of events where we sent our honey to be tested for its antibacterial activity. We had been producing Tea Tree honey for many years, but never had it tested. We were aware that some Australian honey had antibacterial properties as we always keep abreast of beekeeping news through industry journals and the Rural Industries Research and Development Corporation.

carmen and todd BrownHONEY DELIGHTHoney, Active Honey, Honeycomb, Honey Skin Care and Beeswax Candles


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

We thought our Tea Tree honey might have antibacterial properties, but we didn’t get it tested. It is incredibly difficult to have honey tested in Australia, but we persevered because our customers seemed very interested. At the present time, no Australian laboratory offers a commercial honey testing service. Eventually, after nearly a year, the links we had in the industry led us to discover that The University of Sydney was undertaking research on honey. We boldly sent them an email, asking to be involved and the scientists agreed to include our samples in their research project. This led to the discovery of a new species of plant that yields antibacterial honey. While it has been known that Leptospermum scoparium, can produce antibacterial honey, we now know that L. squarrosum also produces an antibacterial honey.

The Leptospermum species grows naturally in various areas of New South Wales and Queensland. The plant is yet to be cultivated commercially, and this could create an emerging agribusiness.

Q: What do you consider your successes? What do you attribute these to?

It proved to quite difficult to find a laboratory to test our honey in the first place. It was our connections within the sector, and being on top of the state of honey research that helped us link in with the University of Sydney. Subscription to our industry journal definitely helped us there, because it was the Australasian Beekeeper (the ABK) who had published articles about earlier work from researchers at the University of Sydney and the Rural Industries Research and Development Corporation.

Q: What are the 5 tips to give others in new rural industries?

1. Government supports research into development and sustainability of many rural industries. Their reports could be considered a treasure trove of the most up to date information. There is also a lot of innovation going on in the research world. Research reports can be written in technical ways, but if you can get past the jargon they can lead you in directions that you might not have imagined.

2. Also, we would recommend people who are new to rural industries take full advantage of any opportunity to work in partnership with researchers. Our family has done this a couple of times and found it to be incredibly interesting and also very rewarding.

3. When your passion is sustained over generations it can develop into a family tradition. These family traditions can be very rewarding and fulfilling because they connect families in a way that defies description.

4. Take pride in the work you do and strive at all times to produce the best product you can.

5. Although it can be tiring, the quality in a product is part of the reason people will continue to buy it.

Q: What is your vision for the business?We hope to continue to offer a high quality gourmet honey in Canberra. The variety of honey that we have is something that we are very proud of. In the past two years, we have had over 20 different varieties, and some of them are incredibly unusual. I’d like to see easier access to tests for honey, but this may be some years away. We are exploring development of cosmetic products based on our antibacterial honey and hope this will also be a growth area for us in the future.

http://www.facebook.com/HoneyDelightCanberra

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BACkGROUNDMajestic Mushrooms Pty Ltd is situated in Murrumbateman, just outside the ACT. The mushroom business started some 5 years ago and is owned by Helen and Ian Chu, both graduates of the University of Canberra. They worked for 10 years in their professions as a teacher and an engineer before deciding to fulfill a dream of owning their own business.

Q: What inspired you to get involved in a new rural industry?

When we first visited a mushroom farm we fell in love with mushrooms. We were fascinated with the growing process and immediately started borrowing books about mushrooms. For many months we researched and contacted people we thought could help us. To our disappointment, not many mushroom farmers were willing to share the “secrets” of their business. Mushroom cultivation is a very protected industry, but this didn’t deter us. We kept persevering and after 8 months of research, we took the risks and together with Helen’s sister, we bought the run-down mushroom farm in Ebenezer. With no practical experience, Helen and her sister were managing the farm whilst Ian was still working in his profession as an engineer. However, after a few months the partnership deteriorated to a state of no return, so we had no options but to part ways.

In 2006 we bought a property in Murrumbateman to set up our own mushroom farm. We wanted to be in control of our own destiny, and not to fail because of the actions of others. We could have gone back to our professional careers, but decided

Helen and Ian chuMAjESTIC MUSHROOMS PTY LTDWhite Agaricus Bisporus mushrooms (buttons, cups & flats) and Swiss Browns & Portabellos

to take the ‘path less traveled because we didn’t want to reminisce in 10 years time and live with regrets for not “having a go”.

Q: What have been the pitfalls you have to overcome? How?

We chose the Canberra region for our new farm, as Canberra has a strong support for fresh local produce. We spent several months researching the market and bought a 31 acre property in Murrumbateman and started building our mushroom farm. To fully construct the mushroom production facility we required a lot more capital than we had anticipated. Luckily we had financial assistance from Ian’s parents (they mortgaged their house to raise funds to help us). With the added pressure of an additional mortgage, we were determined to succeed. We were determined to not let the people who have faith in us down. We knew the path we have now chosen will be difficult financially because of the huge capital start, but we were very surprised when it was also physically and emotionally demanding, especially when we had to build the mushroom farm from scratch.

One of the many challenges of building a mushroom farm was having the knowledge of construction, the scientific knowledge of growing mushrooms so that the dimensions of the growing rooms are conducive to correct growing environment with the correct CO2, humidity, compost temperature, room temperature and so on. Luckily with the help of Helen’s brother, who is a builder, we were able to ultilise an existing shed space to build our growing rooms. We spent a year building our mushroom farm and preparing every


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aspect of our business from choosing the business name, to designing the logo, to calculating & building growing racks, to growing mushrooms, to picking, to marketing our product and delivering. It was a huge learning curve for us. We have spent many sleepless and teary nights, contemplating whether it was the right path. However, we were determined to succeed and so we kept persevering. In the first month of our business, we only had two hours sleep each night and after one month, we both lost 6 kilograms each. Not only were we overwhelmed by the sacrifice we had to make, we were also responsible for raising a three year old daughter in a new environment.

Another challenge we faced was growing mushrooms to cater for our market demands. With only three growing rooms, we had to grow mushrooms to cater for the different sizes demanded by our customers. Within the one room which we picked a week, we had to ensure there are button mushrooms and flat mushrooms of sizes such as extra-small, small, medium, large and extra-large to ensure all customers’ needs are met. It was difficult to achieve this with such a small set up, and we had no room for mistakes. We calculated meticulously and recorded every step we took.

Also, we were very determined to growing quality mushrooms with a long “shelf-life”. Before starting our mushroom farm, we underwent many courses such as Chemical training, Freshcare – Food Safety Training with a HACCP consultant, as well as a course in Farm Hygiene in Pest and Disease Control.

Another challenge was teaching workers how to pick and grade the mushrooms correctly. Despite growing beautiful white mushrooms, the workers we recruited had no experience, and so the challenge was to teach them the correct picking techniques, the speed required and the sizing and grading of the mushrooms whilst picking. Luckily, with Helen’s background as a teacher, she was able to patiently impart her picking techniques

onto her staff. A lot of time and money were spent on training staff. The next challenge was keeping the trained staff. Often when the workers seemed proficient, they “moved on” to other jobs. But despite the high turn-over of staff, we kept persevering and changed our strategy as to whom we should recruit. Now we have a good group of workers and many consist of family members.


Our major success was starting from scratch. We were often criticised by friends and family friends as crazy to leave the security of our professions to become farmers (a profession not highly valued in the Asian culture). Despite these criticisms, we are able to produce the best quality mushrooms in Canberra, and in 2011, we won the Capital Region Farmers Market People’s Choice Awards for “Best Vegetable Stallholder”.

Another success was to fulfill our vision 5 years ago that we would expand our business. We have just completed the construction of our new growing rooms and by mid-February we will be growing our mushrooms in the new state-of-the-art growing facility.

We also consider one of our successful actions was to buy a huge fruit shop in the Canberra Centre in September 2011, selling our top quality mushrooms, along with other quality produce. This was a major move forward and we now juggle two businesses – in addition to raising a large family of six children.

We feel our our successes are attributed to our sheer determination, hard-work and perseverance. We look to each other for support, and believe that we have been successful because of our work together to achieve a common goal. We should also say that family support and the support of the public, has also greatly contributed to our successes. Without these we wouldn’t be where we are today.


carolyn davidsonTOWRI SHEEP CHEESERYSheep cheese, cheese tastings, tours and milking demonstrations

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BACkGROUNDTowri Sheep Cheesery, is Queensland’s only registered and accredited sheep cheesery and milking genetics embryo collection centre,with access to arguably Australia’s best embryo transfer vets,from Western Australia, New Zealand and N.S.W. It is home to some of the most elite milking sheep genetics in Australia and is 300acres of scenic grazing country at Allenview, 20 kms from Beaudesert, in the Scenic Rim area of South East Queensland. Towri Sheep Cheesery is also home to the Davidson family since 1988, with the large rambling country style garden (a talking point for all visitors to this lovely old homestead).

Towri Sheep Cheesery opened in 2006 with a breeding flock of around 100 and now has approx 400 and is open to the public and to busses for milking demonstrations, cheese tastings, cheese room and garden tours and home cheese making schools (all by appointment only). Cheeses are available at farm gate, on-line, Whisky Gully Wines at Stanthorpe, and Rosalie Deli in Brisbane.

The Owner/Cheese maker, Carolyn Davidson and Farm Manager, Alana Wright, are both passionate about “their girls” (as the milkers are known).


Coming from 2 generations of growing fine wool merinos in Western Queensland and marrying into the same, it was only natural when I decided to make cheese for a hobby, that it would be sheep.

In 2005, after a lifelong involvement with polocrosse and horses, I decided I needed something else to occupy my time into middle age, and with my husband’s turf business taking up more of his time, and our children through high school and into uni, it was time for me to start something of my own. With sheep milking a rarity in Australia, it was always going to be a challenge and something unique.

I did an intensive cheese making course through the Melbourne University, researched milking sheep breeds, designed the milking parlour and yards at “Towri”, our existing property near Beaudesert, where we had run our beef cattle and polocrosse horses since purchasing in 1988. I was

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extremely lucky to purchase an established milking flock, consisting of @80 East Fresian crossed with Dorsets from Queensland‘s first sheep dairy, at “Runnymeade” near Nanango. Garry and Jean were ahead of their time and age had caught up with them. I am forever indebted to them for the knowledge they so freely gave to me.

2006 saw us ready to start milking with DPI and Safe Food approval on our cheese room and dairy facilities. The biggest hurdles were due to the fact, it was such a rare business and there were no governing rules to cover us. In the first year I threw out 300 litres of frozen milk, because I was told it needed to be frozen at minus 18 degrees, wrong, sheep milk has to be at least minus 25 degrees or it won’t thaw properly, because of the high solid content. Again in making cheese I had to do a lot of experimenting, because sheep milk, behaves differently in cheese production, compared to that of cow’s.

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

Our biggest challenge has been the wet of 2010 /11. Awassi sheep are from the dessert and we have had major foot problems with too much moisture, and it is an ongoing battle.


In my research, Awassi sheep from the Middle East stood out as being the best milking sheep for the Queensland environment, and in 1998 N.S.W. Department of Primary Industries along with a private family imported some improved milking strain Awassi’s into Australia. Once again, being in the right place at the right time paid off and a friend of ours sold me some Awassi’s. This then

turned into a challenge to purchase every available Awassi we could find to make sure our genetic pool was as wide as possible. In 2008 our eldest daughter, Renee, a policewoman and her partner Alana, returned home from North Queensland, with Renee taking some time out from policing to help me establish “Towri Sheep Cheeses’ into more than my hobby and into a niche boutique artisan cheesery. Our first try at a cheese show saw us take out gold for our feta at the Brisbane Cheese Awards in 2009, and again for our pecorino in 2010. Renee has returned to the Police force, but still lives on the farm and Alana Wright is now my farm manager. We are an accredited Embryo Collection Facility, with milking genetic embryos available Internationally. “Towri” has recently completed an 18 month embryo program with the Qatar Government .

Q: What tips could you give others in new rural industries?

If you have passion and drive you will succeed. Red tape along the way has been a major thorn for us, but hopefully it is now easier for anyone else wanting to start a boutique sheep cheesery, especially in our own Scenic Rim area, of South East Queensland.

I am very lucky to have made a business out of my passion for breeding and selling the best milking sheep genetics, and my love of making and eating cheese produced from what I believe is the healthiest and tastiest of all milk.

Q: What is your future vision for your business?The future for “Towri” is I believe to be able to offer top milking genetics to the rest of the world, and to do that we have to keep improving our genetic gene pool and to help increase the awareness of the health benefits of sheep milk products, which we do on a regular basis with presenting our cheeses at events such as the Gold Coast Food and Wine show, at the end of January.

www.towrisheepcheeses.com.au

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BACkGROUNDAt Green Olive at Red Hill we love great food – food that nurtures your heart and soul. We have always been driven by a love for travel and good food. Together we spent a few years working in Europe and many more years traveling around Asia, the Middle East and South America. Back in Melbourne, working in the corporate world we dreamed of developing a business that created great food and drew on our travel experience.

Our piece of paradise is 27 acres of red fertile soil that allows us to grow and produce premium quality food for our visitors to savour. You can

visit the Green Olive at Red Hill Farm Shop and enjoy the surrounds while eating and drinking some of the finest food the Mornington Peninsula has to offer.

Green Olive at Red Hill is a family business – we are; Greg and Sue O’Donoghue, our children Sam and Sophie, two Kelpies (Inca and Rasa), one Maremma (Pisa), 40 sheep, 100 chooks, 4 Indian Runner Ducks and brown trout in the dam!

We aim to be fully sustainable. We capture all our own water and store it in large above ground tanks. All irrigation for the farm comes from the large dam that collects water from the natural spring and general water runoff. All waste water is processed naturally in an aeration treatment plant and then irrigated onto the paddocks through subsurface irrigation.

All kitchen leftovers are fed to our chooks or composted with chook manure then returned to the garden. Our paper waste is shredded and composted. Where possible we reduce the need for glass and plastic containers, but if we do use them they are commercially recycled.

Greg and sue o’donoghueGREEN OLIVE AT RED HILLGrow five varieties of olives, pinot noir, extensive vegetables and herbs for our Farm Shop, breed Wiltshire sheep and run free range Isa Brown Chooks

We also handmake/produce the following products on farm: Farm Roasted Coffee, Extra Virgin Olive Oil, Bush Pepper, Infused Extra Virgin Olive Oil, Wild Lime Infused Extra Virgin Olive Oil, Traditional Dukkah, Spicy Dukkah, Tomato Relish, Fruit Chutney, Capsicum Relish, Raspberry Jam, Orange & Cranberry Marmalade, Four Blossom Honey, Lemon Cordial and Gourmet Salts.

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Almost all our cooking is done in our wood fire oven, with wood collected from fallen timber on the property or, if necessary, specially sourced plantation timber. At present we use electricity from the grid but we are aiming to use solar photovoltaic panels to generate enough power for us to use and extra to sell back to the grid.

On a visit to our Farm Shop at Red Hill you can enjoy coffee from beans roasted on site, savour the smell of our bread as it bakes, enjoy our homemade sausages or paddock platter and even take a small taste of our farm home with you.

We all know extra virgin olive oil and dukkah is a great combination and that good relishes and jams belong in every fridge. So we have a range of hampers with our favourite combinations or you can tailor your own as a truly valued gift – available at the farm shop or online.


Love of the outdoors and desire to create an environmentally sustainable business. We have worked on this project for the past 9 years to ensure that we meet the right outcome. We have a passion for farming, travel, food, wine and great coffee. While travelling the world we developed a deep understanding of what is required to create a sustainable argi-tourism experience.

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

The biggest pitfall we have encountered is local planning laws. Unfortunately the planning scheme

was written in the 1980’s and does not reflect the current environment we live, work and play in. It has cost us a significant amount of money and restricted what we can achieve as a business


Our success is measured by the smiles we create for our customers. This can be from a child patting one our Kelpie dogs to a customer enjoying one of our handmade sausages from our farm breed lambs. The main attribute I would attribute to our success is hard work and our education. Both Sue and I have undergraduate and postgraduate degrees. We both worked in corporate world for long periods which gave us a broad base of skills to run a successful business.

Q: What are 5 tips you could give others in new rural industries?

1. Keep it as simple as possible2. Employ good people3. Share in your successes and take time to

smell the roses4. Be involved in local organisations5. Love what you do

Q: What is your future vision for your business?

Grow the business to a successful medium size organisation that is best practice in understanding and delivering food that is environmentally sustainable.

www.greenolive.com.au


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Successful new industry development is a function of money and time. The more money available, the faster that progress can be made. New industry participants describe the funding

available for new rural industries as inadequate. They believe they generally underestimated the amount of work involved, the time involved, and therefore the amount of funding required to do the job well.

The chaotic nature of new industry development means that predictions of outcomes are impossible to make and decisions can only be made as development continues.

New industries need both reliable market research and solutions to production problems. One challenge facing new industry development is to establish a new industry association to take on the responsibility of solving the industry’s problems through commissioned R&D. The research would be funded by levies paid by the members of the industry.

However, it is difficult for an association to collect the necessary level of operating and research funding without deterring people from becoming members of the association. Many see a compulsory levy as desirable, but many associations struggle to implement this.

Funding and economics of new rural industries

The alternative of a voluntary levy also has shortcomings. A voluntary levy discriminates between the commercial operators and the lifestyle farmers. If commercial operators are the major financiers, they would want control over spending of funds. If there are many smaller operators, they would feel they represent the majority of the new industry members.

Such an imbalance is frequently encountered in new rural industries. Whilst the large new industry operators are the source of most product in the market, they do not always support the new industry associations. Larger participants in a new industry may attract government subsidies for research projects that are designed to benefit the whole industry. These larger operators can expect the greatest benefits for themselves, since they are intimately involved with the research throughout and have partly funded it.

Industry participants have felt that some other funding model then levies should be used for new industry development. One proposal is that a company structure may be more appropriate than an association structure, because it provides a better foundation for collecting funds.

EconomicsAn understanding of costs and cost control is often lacking in new rural industries, both at an


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enterprise and industry level. Producers often lack knowledge of their real costs of production, and some participants are reluctant to cooperate and share information and technology to achieve economies of scale and bring costs down.

knowing the costs of productionMany new industry operators, especially the lifestyle farmers, do not know their true cost of production. It is therefore difficult to see how such enterprises can assess their economic viability.

Many new industry enterprises do not account for their true operating costs, such as land costs, depreciation, or their own time and that of their family members. As a result it is common for new industry operators to sell products at below the true cost of production, which ultimately leads to business failure.

It is also difficult to estimate the advantages of achieving economies of scale through investments in improvements (such as mechanical systems), if the original true cost of production is not known.

There is a need for the true costs of production in a new industry to be benchmarked across the industry, so participants know where they stand, relative to other operators in a similar situation. As well, there is a need for Australian industries to benchmark against their global competitors to gauge how they perform relative to the global competition.

The simple act of introducing a cost-benchmarking framework could itself bring about a major improvement in industry performance. It could also provide an incentive for people to improve their individual performance, and for those who are not competitive, to realise this more quickly and leave the industry. Such findings can also be incentive for cooperation, once the benefits of cooperating to achieve economies of scale are evident to the participants in a new industry.

Critical mass and economies of scaleThe achievement of critical mass has already been identified as a success factor when discussing marketing and strategic planning.

Critical mass and the subsequent economies of scale are important factors in determining both the viability of a new rural industry and the viability of the separate enterprises within those industries.

Critical mass impacts in three ways:1. It achieves sufficient volume of product to

support the resources necessary for a supply chain (e.g. processing facilities).

2. It achieves sufficient volume of product to be able to supply major customers on a continuous basis.

3. It provides the resources to support adequately financed market research and promotion programs.

The threshold volume for critical mass of food products continues to rise, through the influence of the major supermarkets and their form of closed-loop supply chain management. Major supermarkets prefer to link with producers who can supply their requirements to strictly determined guidelines on a year-round basis.

New industries are too small to supply product all year round. They also find it difficult to sustain shelf space in larger retail outlets because they can’t achieve the weekly stock turnover hurdle rate. This means they must then pursue second-tier outlets, such as specialists and independent retailers, who are much more difficult and costly to deal with.

There is also an issue of critical mass and economies of scale at the enterprise level. Very small operators do not have the resources to do their own marketing or to participate in a supply chain. The historic solution to this is the development of statutory marketing authorities or cooperatives which provide a basis for achieving the critical mass.

There is a need for newer versions of collective marketing which are more appropriate to modern-day conditions and are suited to the needs to today’s new industry participants.


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One of the issues recognised has been the problem of managing intellectual property in new rural industries. Typically, many participants in new industries protect their intellectual property to the extent that they will not share it or cooperate with other producers and partners in the supply chain. They do not see partners as collaborators for mutual benefit. Such protective behaviour fragments the industry and works against achieving critical mass.

In new industries, many enterprises focus on their own agenda rather than taking a whole-industry perspective. A more cooperative spirit will produce a better outcome for all involved. There is a strong recognition of the need for new industry partners to work more closely together to achieve critical mass and the associated economies of scale, but not of the need for a totally united strategic effort.

It is not only essential to have a critical mass at an industry level, but there are advantages to achieving critical mass in a geographic area. In the past, when a new industry has been concentrated in a particular geographic area it has performed better than more dispersed industries because of cooperation, information sharing and a willingness to work together. A collective marketing capability and promotion program can be focused on the region as well as the product. Where there is

geographic fragmentation of an industry, regional factions can develop and cross-factional tensions can result.

Economies of scale can be achieved if production units increase in size. This is because costs drop proportionately as overhead costs per unit of output are reduced. Most new industries operate on such a small scale that they cannot take advantage of mechanical systems to lower costs, so the developing industries remain labour intensive.

This is a major issue affecting the competitiveness of new Australian rural industries that attempt to compete globally. Labour costs in this country are high relative to many overseas competitors.

There is a need to ramp up production to achieve the benefits from economies of scale. Members of industry associations recognise the need to attract the larger commercial and more professional operators because they have the capacity to achieve production volumes that contribute to economies of scale. This can then provide an umbrella under which the smaller operators can operate.

Excerpt from Critical Success Factors for New Rural Industries, a RIRDC publication, published in March 2009 and available through the RIRDC website (www.rirdc.gov.au). RIRDC Publication No 09/002


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and a key determinant in food production and the viability of farming. This is because soils govern photosynthesis. While sunshine, CO2, nitrogen and

rainfall may be abundant and free they can only be used by plants if they have access to essential mineral nutrients that are available only from soils. Hence as President Rosevelt advised; how a country manages its soils determines its future.

Currently, under business as usual we are compromising both our soils and future.

On both the 1.5 billion ha farmed globally and the 40 million ha farmed in Australia we are still;• Losing 10-20 tonnes of topsoil for every tonne

of food produced.• Losing 5-10 tonnes of carbon per ha per annum

via our oxidative farming practices.• Losing soil structure, water holding capacity,

cation exchange capacity which governs nutrient availabilities, root proliferation and thus the productivity of farming systems.

• Thereby, increasing the acidification, salinisation and aridification of farming soils, and

• Making food production dependent on increasing fertiliser and energy inputs to the

extent that we now often invest 10 calories of oil energy for every calorie of food energy produced.

Consequently we need to change. To regenerate the health and productivity of our soils so they can rebuild their natural high organic matter levels, and thus: water retention, nutrient dynamics, health resilience and productivity in sustainably producing quality food with much lower inputs.

Not only is this critical in feeding the future 10 billion but for the commercial bottom line;• On farm, by reducing inputs, improving returns

on investment and risk return ratios,• Socially by improving the health of food, people

and thus our medical budget black hole.• Nationally in raising natural capital asset

values, a key ‘gold standard for the 21st century.

Fortunately we can regenerate our soils, practically as nature has done, by restoring their former high soil organic matter levels and through that their health, resilience and bio-productivity.

Now that we have a carbon price we can also do this profitably, with leading farmers confirming how innovative management practices can bio-sequester up to 10 tonnes of carbon per ha per annum; generating up to $500 /ha/an net in addition to their increased normal farm products.

trebling food production sustainably –can we do it and what would it take

By Simon Gould, Outcomes Australia



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Some practitioners in new rural industries will already have been primary producers for many years — either in one or more of the ‘new’ industries, or in ‘traditional’ industries but diversifying or

changing their operations. On the other hand, some may be total newcomers to primary production.

This very brief introduction on tax and primary producers is aimed mainly at the latter group, but may still not be wasted on experienced producers.

Much tax law applying to primary producers is the same as for all Australian businesses. For example, paying tax on profits and on capital gains, claiming eligible business expenditure and depreciation of capital assets, employing staff and engaging contractors, managing pay-as-you-go tax, paying GST and claiming GST credits, keeping accurate and adequate records, and so on.

Many smaller primary producers (ie, with a business turnover of less than $2 million a year) can also take advantage of the special tax concessions for small business — these include simplified trading stock and depreciation rules, immediate deductions for some prepaid expenses, and concessions on Capital Gains Tax liabilities.

If you are new to business, it is vital that you learn these basics about business taxation, whatever business structure you use (eg, sole trader, partnership, company, trust), and that you understand the ‘self-assessment and random audit’ model of tax administration used in Australia.

You should also consider using the services (for a while, at least) of an experienced accountant who is used to dealing with primary production enterprises.

In addition to these basics, it is important to know that some or all primary producers also have access to a number of tax provisions that are predominantly for or unique to primary production. These are described below.

All the basic information is available on the website of the Australian Taxation Office (ATO) — www.ato.gov.au. Two good places to start are a downloadable 10-page booklet, Information for primary producers 2011 (or the next current

update) and the main relevant webpage, Primary producer essentials.

Carrying on a business of primary productionThe most fundamental ‘condition’ of all is that you must actually be carrying on a business, not practising a hobby, regardless of whether your hobby makes money.

If you have any doubts, you should study the ATO’s Taxation Ruling TR 97/11 – Income tax: am I carrying a business of primary production? This very readable general public tax ruling gives a comprehensive explanation, with examples, of the relevant indicators of being a primary producer. You can ‘self-assess’ that you are a primary producer (as long as you’re willing to be subject to a future audit), or, if in too much doubt, you can ask the ATO for a private binding ruling.

Non-commercial business lossesNon-commercial losses (Division 35 of the Income Tax Assessment Act 1997) is one topic that has special relevance to certain producers in certain new industries, particularly part-time farmers. Because of its concept of ‘separate business activities’, Div 35 may also affect well-established large-scale primary producers who are diversifying into a new industry.

The essence of the non-commercial loss provisions are that, subject to certain conditions, if a sole trader’s or partnership’s (not a company’s) business activity fails to pass a threshold income requirement or one of four arbitrary tests of ‘commerciality’, any business losses are deferred (not denied) until a future income year when one of the tests is passed or the business activity makes a tax profit.

For some primary production that has an inherent ‘lead time’ before it generates income (eg, plantation forestry and much tree-based horticulture), you can apply for the ‘Commissioner’s discretion’ to allow you to claim your losses in the intervening years. Two general tax rulings (TR 2001/14 and TR 2007/6) have very useful explanations and rural industry examples to help you.

tax and primary productionBy Alan Cummine


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Examples of special primary producer provisionsHere are some examples of special tax provisions available to primary producers. As usual, various conditions apply. All these and others are explained in the downloadable booklet and on the ATO website.

Landcare operations: Primary producers can claim as a deduction 100% of their capital expenditure on landcare operations in the year incurred, instead of depreciating the works over time.

Water facilities: Similarly, capital expenditure on facilities for conserving or conveying water can be written off over three years.

Valuing livestock: In most cases, producers may choose one of three nominated methods for valuing livestock (cost, market selling value, or replacement value), and may vary their choice by year and by type of livestock. ATO specifies the method for valuing natural increase and livestock taken for rations.

Abnormal receipts: Different tax-spreading provisions are available for (a) the proceeds of the sale of two wool clips in one income year because of drought, fire or flood; (b) profit from the forced disposal or death of livestock; and (c) insurance recoveries from the loss of livestock or the loss by fire of forestry trees.

Income tax averaging: This enables primary producers, as sole traders or in partnerships, to even out their income and tax payable over a maximum of five years, although if they choose to withdraw from this tax arrangement, it is an irrevocable decision.

Farm Management Deposits Scheme: Subject to a number of conditions, the FMD scheme provides special tax treatment whereby non-company primary producers deal with uneven income flows by making bank deposits during prosperous years and withdrawals during less prosperous years.

Depreciation of living assets: New plant and equipment used in primary production is covered by the same ‘effective life’ tax ruling issued each July for all depreciating assets (although taxpayers can elect to self-assess, and must do so for used assets). Special provisions are made for capital expenditure on establishing living assets, such as grapevines and horticultural plants harvested for their products (eg, fruits and nuts, etc).

Carbon sink forests: Since 2007, and subject to strict conditions, a business (not only primary production) has been able to deduct certain costs of establishing or regenerating trees for the dedicated

purpose of carbon sequestration. All allowable costs are deductible in the year incurred until the end of the 2012 tax year, after which amended law will only allow the costs to be depreciable over a specified period.

Tradeable water rights: State legislation now enables the trading or water rights. You need to be aware of the CGT and general tax consequences accompanying the sale, transfer or ending of water licences, allocations, quotas and entitlements.

Grants and subsidies: Although not unique to primary producers, it is important to know that, in general, amounts received by way of grants or subsidies will be included as assessable income in the year they are received.

When seeking more detailed information on all these topics, readers not familiar with the ATO website and ATO documents should not be daunted. Tax rulings in particular are, for the most part, quite readable and explanatory, and are a valuable resource, along with ATO’s many fact sheets and guides.

Alan Cummine represented private forestry at the national level for seventeen years, and was a member of the ATO’s Primary Production Industry Partnership working group from its inception in 1999 until he retired from the industry in 2011.

Editor’s note: This article was originally run in our inaugural copy of Passion to Profit magazine in October 2010 and distributed in only limited quantities. With a few updates, it is being republished for the benefit of our existing large subscriber base, as it is useful and pertinent introductory information for anyone engaging in primary production.

For more detailed information about tax for primary producers, go to the ATO website and start with: (i) the 10-page booklet Information for primary producers 2011; (ii) the core webpage Primary producers’ essentials (this contains thirteen internal links and more sub-links on basic and advanced topics); (iii) the tax ruling TR97/11 about carrying on a business of primary production; and (iv) all the information on non-commercial losses, found under ‘Tax topics A–Z’ on the ATO homepage.


Q: What are 5 tips you could give others in new rural industries?

1. “Go confidently in the direction of your dreams! Live the life you’ve imagined” (Thoreau). This was the inspirational quote that we had stuck on our fridge to remind us everyday of our common goal.

2. Never give up. You will reap the benefits of hard work and perseverance, and anything is achievable.

3. You must be passionate about what you do, otherwise don’t do it. There is never a day that we are not excited about going to work.

4. Make sure you do your research thoroughly before venturing into the unknown. Thorough research and preparations minimise mistakes.

5. Good relationships go a long way. Don’t burn your bridges because people know people.

Q: What is your future vision for your business?Our vision for our business is to continue producing quality mushrooms that customers want. Our goal is to become the main supplier of fresh quality mushrooms to Canberra and its surrounding regions. In the future, we would also like to cultivate other mushroom varieties and want Majestic mushrooms to become a house-hold name.

However, the next part of our journey will have to be kept as a secret for now….

Continued from page 25



As a result leading innovators are securing up to 3 times the protein production and sustaining higher grain yields and qualities with often half the inputs, even under half the former rainfalls.

So our issue is not can we do it; but will we give farmers the incentive to adopt such innovations? Will we catalyse the needed changes in time and at the scale required to secure these outcomes? And will we put in place the; vision, the leadership and the extension strategies to deliver this?

Farmers need to be able to secure the rewards needed to invest in the essential changes.

Certainly we can feed a hungry world. Australia could treble its food production in a sustainable manner to help meet these demands. However to do this Australia needs to urgently recognise its need to change current degrading soil practices and adopt available profitable innovations to regenerate soil carbon levels and soil health.

We need to ensure that our farmers have the information, incentives and on farm viability to be able to adopt the essential changes to secure our food needs and benefit the national interest.

Australia and recipient countries could benefit significantly from extending such changes globally.

94 percent in comparison to controls at two weeks after treatment.”

The laboratory-based fly strike research used formulations consisting of 1 percent tea tree oil which reliably led to a 100 percent kill rate of first stage maggots.

The research also demonstrated that tea tree oil had a strong repellent effect against adult flies, which prevented eggs being laid on the wool for up to six weeks.

“Tea-tree oil could be effective as a preventative treatment for wounds caused by mulesing, tail docking or any wound likely to be struck. It has also been shown to have antibacterial properties and is suggested to have wound healing effects,” Dr James said.

“The appealing aspect of using tea tree oil as an insecticide is that it is a natural product. We are seeing more consumer demand for the use

of naturally sourced products in food and fibre supply chains.

The use of many natural products on a commercial scale has often been hampered by its variable quality but tea tree oil is very well placed in this regard as its composition is specified under an international standard, ISO 4730. This ensures the supply of a consistent product, which is essential when using a product as an insecticide.

“Getting the formulation exactly right is vital and it’s something that will require more research.It’s not as simple as mixing tea tree oil with water and applying it to your sheep; its a complex and exact science. More research needs to be conducted before we can definitively say that tea tree oil is a viable treatment for fly strike and lice infestations however these initial findings are very encouraging.”

Research finds tea tree oil effective against sheep fly strike and lice infestation cont.


The Carbon Farming Initiative, what’s in it for you?

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Rural enterprise, innovation and changeNew Rural Industries AustraliaNational Conference19 – 20th April 2012

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Registrations, exhibition Booths and sponsorships available through the nRIA website, at www.nria.org.au

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