Australian horticulture scopes out how to drive exports
Australian horticulture, which encompasses the fruit, vegetable, nut, flower, turf and nursery industries, is worth $9 billion, but exports amount to about only $1 billion because of many roadblocks, like fruit fly.
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Audio: Horticulture Innovation looks to spend $20 million in strategic projects to boost exports and improve Australian production (ABC Rural)
Horticulture Innovation Australia has launched a consultation paper to outline how to drive the industry for the next 10 to 15 years.
It is able to use a $20 million Strategic Co-investment Funding Pool that could develop projects as diverse as a fruit fly fund, trade fund, pollination fund, leadership fund, access to world class chemistry, healthy eating, robotics and automated systems.
John Lloyd, chief executive of HIA, said the $20 million for strategic investments came from "unused Commonwealth contributions", not grower levies.
"We've got a strategy of setting aside two pools of money recognising most growers pay their levy money to fix things inside their industry," he said.
Those funds are matched by the Federal Government for research projects to solve problems for those sectors, or market this year's crop.
"We have the opportunity to free up over time a significant amount of money to seed-fund specific areas," Mr Lloyd said.
"So we can invest in maybe a dozen things that are important to the future of horticulture in Australia.
"Over time, we would attract co-investment dollars from outside the government, and we can address those big issues."
These projects would apply across the sectors, rather than be industry specific, which was a key criticism in the review of the old Horticulture Australia Limited.
The ACIL Allen report found just 5 per cent of spending was directed at industry wide strategic investment, and the majority had been on multiple small projects.
"Small investments are exposed to risk and uncertainty and less likely to achieve substantive benefits," the ACIL Allen report stated.
Part of HIA's new constitution requires that it focus on promoting trade:
2.1 (f) to promote and further the interests of the Horticultural Industries overseas, including in relation to:
(i) the export of Australian horticultural products to;
(ii) the sale and distribution of Australian horticultural products in; and
(iii) the consumption of Australian horticultural products in, countries other than Australia;
Fruit Fly Fund
As an example, Horticulture Innovation Australia recently established a National Fruit Fly Fund for the sterile insect technology projects (SIT).
Mr Lloyd said that fund, which is getting close to $30 million worth of investment, started with a seed contribution of $7 to $8 million.
That is a two for one leverage, which it hoped would work for other investment funds.
Consultation
Since Peak Industry Bodies were removed as the owners of Horticulture Innovation Australia, HIA has had to find a way to connect with growers.
Growers are asked to read the HIA Consultation paper and make written submissions by the end of March.
Source: www.abc.net.au