FACILITATING NEW INDUSTRIES - GENERAL ISSUES
The Committee concludes that native species can form the basis of some desirable new industries in Victoria. Those that show most promise at present have been identified, but others with potential are likely to arise in the future. The Committee has found several broad principles that can be applied generally to the facilitation of new industries based on native species. It also broadly supports the findings of a study by the Rural Industries Research and Development Corporation (RIRDC) into factors that lead to the success of new crop industries.90
Factors assisting or hindering success of new industries relate to production, processing and marketing phases.91 Consequently the Committee concludes that all three phases of development will need to be assessed. Should it be concluded that the industry deserves to be promoted, all three will need to be given appropriate support.
Circumstances in which new industries are being developed continually change. Factors to be dealt with are becoming more numerous and complex, markets are increasingly diverse and demanding and competition tends to be more intense. Technology is becoming more complex and is largely replacing labour. Constant challenges that attend most new ventures include high levels of risk, long time-frames, shortage of relevant information and the need to establish new techniques.92
The RIRDC found that there is a large number of factors that may encourage or inhibit success of a new industry and that these factors vary with the industry.93 Though it is not easy to predict which new industries are likely to succeed, the Corporation found several key factors that are often present in successful ventures.94 Important among these is government support for research and development.
Other factors identified by the Corporation relate to the nature of the new industry. It was determined that the risk and the difficulty in achieving success usually increase in the following order:
a) an established product is being grown in a new locality;95
b) an established crop is being put to a new use;
c) a new species is being put to an established use;96 or
d) a new crop is being put to a new use.97
Industries that use native plants and animals generally fall into category (c) or (d).98
The Corporation also found that a new venture that can readily be incorporated into existing farming systems has an improved chance of growing and becoming a substantial industry. 99
Involvement of large companies can be useful, though not essential, for the success of a new industry. This is consistent with the Committee's finding that several successful native-species businesses have grown out of other mainstream ventures (for example the conventional food and restaurant industry)100 or were in the process of placing their products into mainstream outlets.101
A long period before profits are generated can constrain development of a new agricultural industry, but this is not usually the most important factor in determining ultimate success. 102
The RIRDC also found that some factors commonly considered to affect success of new industries did not appear to be particularly important. Industries may both become large and grow quickly, regardless of the type of product, degree of integration of production and marketing, extent of geographical dispersion or domination by individual growers. Therefore restriction on the support given to a new industry should not be dictated by these circumstances. 103
Having identified potentially successful new industries, the Corporation determined that actions that may facilitate the growth of these industries include:
a) a champion - that is, an entrepreneur to identify opportunities, marshal resources and assist in product marketing;
b) a strong market focus - particularly good communication to customers and a thorough knowledge of market requirements and size and understanding of long-term industry strategy, processing requirements and value-adding opportunities;
c) a good location - which meets the key needs of the particular venture; and
d) an appropriate government role.104
Government and New Industries
Although the Committee considers that it is desirable for industry to play a major part in directing its own future, government has an important role to play in cooperation with industry.
The Committee identified instruments by which governments can provide assistance to those industries that are assessed as having reasonable potential for success. These include:
a) providing mentors for the new industry and facilitators to new entrants;
b) providing adequate information and guidelines to industry entrants, facilitators and administrative staff;
c) making the regulatory process an educative one as well as a controlling one;
d) using people who have a good understanding of the industry to prepare regulations/guidelines;
e) supporting market development;
f) where appropriate, regulating the new industry (as for example through quality standards); and
g) providing taxation incentives.105
With respect to marketing, the Committee noted that domestic markets appear particularly important for new industries; these should be developed before, or at the same time as, developing export outlets.106 Governments could play a role in market development, for example through such bodies as the Coordinator of Agricultural Marketing.
The Committee also recognises that, in assessing the value of a new industry, a full evaluation of costs and benefits needs to be made. This includes economic externalities associated with the industry. These may present as synergies between different industry sectors; for example, wildflower or fish farming may also attract tourists. They may involve environmental or social benefits that will not be realised through reliance on market incentives alone. In such situations government intervention is needed to capture the full community benefits of the new industry.107
The Committee concludes that government will continue to have a role to play in the development of new, native-species-based industries, both to facilitate those with most promise and to ensure that they are developed in the best interests of all Victorians.
1 Millar, D. (1999), Rural Industries Coordinator, Department of Natural Resources and Environment, Minutes of Evidence, 26 April 1999.
2 Godden, D (1998), `Growing Plants, Evolving Rights: Plant Variety Rights in Australia',: Australian Agribusiness Review, Vol. 6, Agribusiness Association of Australia; and also
Stearne, P.A. and Hughes, E.J (1996), `Intellectual Property Regimes of Plant Patent Protection', In: New Crops, New Products. New Opportunities for Australian Agriculture, Proceedings of the First Australian New Crops Conference, Volume 1, Principles and Case Studies, (Eds.) Bray, R.A, Wood, I.M. & Fletcher, R..J. (1997), Research Paper No. 97/21), Rural Industries Research and Development Corporation, Canberra, ACT.
3 Godden, D (1998), `Growing plants, Evolving Rights: Plant Variety Rights', in Australia, in Australian Agribusiness Review, Vol. 6, 1998.
4 Slater, A. (1999), Institute of Horticultural Development, personal communication, 11 May 1999.
5 Dawson, I. (1999), `Protecting New Plant Varieties, in New flowers, Products and Technologies, Proceedings of the 5th Australian Wildflower Conference, 14-17 April, 1999, pp. 53 - 54.
6 Nursery Industry Association of NSW, Response to the NSW National Parks and Wildlife Services' Commercial Use of Protected and Threatened Native Plants in NSW - Draft Management Plan.
7 The developer of a new product has a two to three year advantage over other growers who may be able to land the product on the major markets at a cheaper price than an Australian grower - because of the high transport costs due to distance to major world markets and the lower labour costs of developing countries.
8 Karingal Consultants (1997), The Australian Wildflower Industry. A Review,- Second edition, Research Paper No. 97/64. Rural Industries Research and Development Corporation, Canberra, ACT.
9 Jones, R. (1999), `Australian Quality Assured Flowers - Much More than a Quality Scheme', in New flowers, Products and Technologies, Proceedings of the 5th Australian Wildflower Conference, April 1999, pp. 14-17.
10 Jones, R. (1999), the Melbourne National Flower Centre, personal communication, 29 March 1999.
11 Harris, B (1999), `Australian Wildflowers - a Commercial, Perspective on Exports', in New flowers, Products and Technologies, Proceedings of the 5th Australian Wildflower Conference, 14-17 April 1999.
13 Slater, A. (1999), Variety Improvement, Ornamentals, Agriculture Victoria, personal communication, 22 April 1999.
14 Cut Flower and Nursery Industries Regulatory Reform Task Force (1999), Review of Regulatory Arrangements in the Victorian Cut Flower and Nursery Industries - Final Report, Office of Regulation Reform, State Government of Victoria.
16 Tourism Victoria (1999), Tourism Victoria Business Plan 1997-2001, (draft) Nature Based Tourism Action Plan, pp. 29-30, 40; and also
Herath, G. (1995), Ecotourism Development in Australia , School of Economics and Commerce, La Trobe University Discussion Paper, La Trobe University , Bundoora Victoria, pp. 8-13.
23 Corcoran, K., Allcock, A., Frost, T. and Johnston, L., (1999), Occasional Paper No 28: Valuing Tourism, Methods and Techniques, Bureau of Tourism Research and Tourism New South Wales, Canberra, ACT, p. 3.
25 Preece, N., van Oosterzee, P. and James, D. (1995), Two Way Track - Biodiversity Conservation and Ecotourism: an Investigation into Linkages, Mutual Benefits and Future Opportunities, Biodiversity Series Paper No. 5, Department of Environment, Sport and Territories, Canberra, ACT, pp. 5-10.
26 Preece, N., van Oosterzee, P. and James, D. (1995), Two Way Track - Biodiversity Conservation and Ecotourism: an Investigation into Linkages, Mutual Benefits and Future Opportunities. Biodiversity Series Paper No. 5, Department of Environment, Sport and Territories, Canberra, ACT.
28 Ecotourism Association of Australia (1998/99), Australian Ecotourism Guide 1998/99, Ecotourism Association of Australia, Brisbane, Brisbane, p. 28.
29 The World Tourism and Travel Council (formed in 1990) developed the Green Globe concept in 1993. This program is reviewed annually and provides a form of international accreditation to companies that show that they meet required standards of environmental commitment - Preece, N., van Oosterzee, P. and James, D. (1995), Two Way Track. Biodiversity Conservation and Ecotourism: an Investigation into Linkages, Mutual Benefits and Future Opportunities. Biodiversity Series Paper No. 5, Department of Environment, Sport and Territories, Canberra, ACT,
p. 69.
30 Tourism Accreditation Board of Victoria Inc (undated). Accreditation A Commitment to Quality. Information, pamphlet produced by the Tourism Accreditation Board of Victoria, Melbourne Australia; Internet site: http://www.ttvic.com.au/ttvic/opt12.htm. Recognised accreditation programs for various sectors become part of this over-arching Tourism Accreditation. They are produced through the relevant industry associations. Programs incorporate codes of practice, compliance with regulations, assessable operational standards for the sector concerned and quality assurance.
31 Hunt, N. (1999), Secretary of the Tourism Accreditation Board of Victoria Inc., personal communication, 8 July 1999, and also
Hundloe, T., Chairperson of the National Ecotourism Accreditation Program and Charters, A. (1999), Director of Planning and Destination Development, Tourism Queensland, personal communications, 11 June 1999.
32 Victorian Tourism Operators Association and the Tourism Training Board of Victoria (TTV) facilitated the establishment of the Tourism Accreditation Board of Victoria. Its membership is drawn from industry sectors, government (Tourism Victoria) and independent semi-government bodies, particularly the TTV.
33 Hunt, N. (1999), Secretary of the Tourism Accreditation Board of Victoria Inc., personal communication, 8 July 1999.
34 Hundloe, T. (1999), National Ecotourism Accreditation Program. personal communication, 15 June 1999.
35 NEAP is also currently reviewing its program to ensure that accreditation meets the specific needs of different States - Hundloe, T. (1999), Chairperson of the National Ecotourism Accreditation Program and Charters, A. (1999), Director of Planning and Destination Development, Tourism Queensland, personal communications, 11 June 1999.
36 Hundloe, T. (1999) Environmental Management Centre, University of Queensland and Chairperson of the National Ecotourism Accreditation Program; personal communication, 15 June 1999.
37 In the case of the National Ecotourism Accreditation Program (NEAP) two referees are also required, plus regular auditing. The Tourism Accreditation Board of Victoria (TACB) requires annual renewal of accreditation.
38 Hunt, N. (1999), Secretary of the Tourism Accreditation Board of Victoria Inc., personal communication, 8 July 1999, and also
Hundloe, T., Chairperson of the National Ecotourism Accreditation Program and Charters, A. (1999), Director of Planning and Destination Development, Tourism Queensland, personal communications, 11 June 1999.
39 Fox, W. (1999), Manager Industry Strategies, Tourism Victoria personal communication, 24 June 1999.
40 Charters, A. (1999), Director of Planning and Destination Development, Tourism Queensland and Founding President of the Ecotourism Association of Australia; personal communications, 15 June 1999.
41 Hundloe, T. (1999), National Ecotourism Accreditation Program, personal ommunication, 15 June 1999.
42 The Reviewing Committee is jointly administered by the Ecotourism Association of Australia and the Australian Tourism Operators' Network.
43 Hunt, N. (1999), Secretary of the Tourism Accreditation Board of Victoria Inc., personal communication, 8 July 1999.
44 Preece, N., van Oosterzee, P. and James, D. (1995), Two Way Track - Biodiversity Conservation and Ecotourism: an Investigation into Linkages, Mutual Benefits and Future Opportunities. Biodiversity Series Paper No. 5, Department of Environment, Sport and Territories, Canberra, ACT, p. 25.
45 Tourism Training Victoria is part of the Tourism Training Network. Its functions are to:
c) provide advice to Federal and State Governments and education institutions on industry training needs;
d) establish training standards consistent with national guidelines and industry's needs;
e) co-ordinate the development and implementation of new initiatives involving industry, government and the education system;
f) develop. training resources and provide advice to organisations to improve industry-based training; and
g) promote training within industry and career opportunities to new entrants.
Hunt, N. (1999), Executive Director, Tourism Training Victoria, 8 July 1999.
46 Particularly the TAFE system.
47 Information provided by Nicholas Hunt, Executive Director, Tourism Training Victoria, Level 7, 189 flinders Lane, Melbourne, Victoria, Australia, March 1999.
48 Preece, N., van Oosterzee, P. and James, D. (1995), Two Way Track. Biodiversity Conservation and Ecotourism: an Investigation into Linkages, Mutual Benefits and Future Opportunities. Biodiversity Series Paper No. 5, Department of Environment, Sport and Territories, Canberra, ACT, p. 28.
51 Bishop, B. (1999), Tourism Training Victoria, personal communication, 10 June 1999.
52 Department of Conservation and Environment (1992), Ecotourism: a Natural Strength for Victoria , Department of Conservation and Environment, Melbourne, Victoria, p. 13.
53 Bishop, B. (1999), Tourism Training Victoria, personal communication, 4 June 1999.
54 Department of Conservation and Environment (1992), Ecotourism: a Natural Strength for Victoria , Department of Conservation and Environment, Melbourne, Victoria, p. 12.
55 An example of material tailored to the needs of the small community-based operator is a handbook developed by Monash University's Graduate School of Environmental Science, - Community planning for Ecotourism. In this book Halls Gap. is used as a case study with the aim of "making the experience in Halls Gap. useful for other communities" Monash University Graduate School of Environmental Science (1997), Community planning for Ecotourism Monash University, Clayton, Victoria, p. 6.
56 The value of having a facilitator who can bring expertise and independence to the process is well demonstrated by the Halls Gap. experience reported in Monash University Graduate School of Environmental Science (1997), Community planning for Ecotourism, Monash University, Clayton, Victoria, pp. 56-57.
57 Hunt, N. (1999), Executive Director, Tourism Training Victoria, personal communication, 8 July 1999.
58 Preece, N., van Oosterzee, P. and James, D. (1995), Two Way Track - Biodiversity Conservation and Ecotourism: an Investigation into Linkages, Mutual Benefits and Future Opportunities. Biodiversity Series Paper No. 5, Department of Environment, Sport and Territories, Canberra, ACT, pp. 143-146.
59 Tourism Victoria (1999), Tourism Victoria Business Plan 1997-2001, (draft) Nature Based Tourism Action Plan, pp. 23-24, 35-36.
60 Bolton, M. (ed.) (1997), Conservation and the Use of Wildlife Resources, Chapman & Hall, London, UK, pp. 236 - 239.
61 Preece, N., van Oosterzee, P. and James, D. (1995), Two Way Track - Biodiversity Conservation and Ecotourism: an Investigation into Linkages, Mutual Benefits and Future Opportunities. Biodiversity Series Paper No. 5, Department of Environment, Sport and Territories, Canberra, ACT, p. 5.
66 Various studies by the Bureau of Tourism Research; for example, Stimson, R. J., Daly, M. T., Jenkins, O., Roberts, B. H. and Ross, S. (1996), Occasional Paper No 23: Tourism in Australia: An Overview of Trends, Issues and Prospects, Bureau of Tourism Research, Canberra, ACT.
67 Stimson, R. J., Daly, M. T., Jenkins, O., Roberts, B. H. and Ross, S. (1996), Occasional Paper No 23: Tourism in Australia: An Overview of Trends, Issues and Prospects, Bureau of Tourism Research, Canberra, ACT, p. 130; and also
Bolton, M. ed.(1997), Conservation and the Use of Wildlife Resources, Chapman & Hall, London, UK, pp. 236-239; Tourism Victoria Business Plan 1997-2001, the draft Nature Based Tourism Action Plan by Tourism Victoria, the Tourism Victoria Business Plan 1997-2001 pp. 35-36 and 40.
68 Preece, N., van Oosterzee, P. and James, D. (1995), Two Way Track - Biodiversity Conservation and Ecotourism: an Investigation into Linkages, Mutual Benefits and Future Opportunities. Biodiversity Series Paper No. 5, Department of Environment, Sport and Territories, Canberra, ACT, p. 6.
72 Such as souvenirs, tours and meals sold at the Penguin Parade on Phillip. Island and Warrawong Sanctuary, SA.
73 Preece, N., van Oosterzee, P. and James, D. (1995), Two Way Track - Biodiversity Conservation and Ecotourism: an Investigation into Linkages, Mutual Benefits and Future Opportunities. Biodiversity Series Paper No. 5, Department of Environment, Sport and Territories, Canberra, ACT, p. 70.
74 Stimson, R. J., Daly, M. T., Jenkins, O., Roberts, B. H. and Ross, S. (1996), Occasional Paper No 23: Tourism in Australia: An Overview of Trends, Issues and Prospects, Bureau of Tourism Research, Canberra, ACT, p. 79-81.
78 Preece, N., van Oosterzee, P. and James, D. (1995), Two Way Track - Biodiversity Conservation and Ecotourism: an Investigation into Linkages, Mutual Benefits and Future Opportunities. Biodiversity Series Paper No. 5, Department of Environment, Sport and Territories, Canberra, ACT, p. 72.
80 The possibility that such charges might lead to a substantial reduction in use of these areas was not considered; nor were equity issues raised, including the contribution that Victorians pay through taxes to retain these areas.
81 An example of promotion linked to conservation was observed by the Committee at Banrock Station, Kingston, South Australia. Wetland habitat restoration is being used as a promotion tool for `Banrock Station' wines as well as to set aside funds for restoration works; SA study Tour, 9 March 1999.
83 Environment and Natural Resources Committee (1994), Planning Issues for Extractive Industries, Parliament of Victoria, Environment and Natural Resources Committee, Melbourne, Vic.
85 Aquaculture Regulatory Reform Task Force (1999), Review Of Regulatory Arrangements In The Victorian Aquaculture Industry - Final Report, Office of Regulatory Reform, State Government of Victoria.
86 Aquaculture Regulatory Reform Task Force (1999), Review Of Regulatory Arrangements In The Victorian Aquaculture Industry - Final Report, Office of Regulatory Reform, State Government of Victoria.
87 Fallu and Mosig (1994), Australian Fish Farmer - A Practical Guide to Aquaculture, Agmedia, East Melbourne,
p. 3; and Wartook Native Fish Culture, Written Submissions, No. U45.
88 Mosig, J. (1999), personal communication, 9 February 1999.
89 The Victorian Aquaculture Council, Written Submissions, No. U13.
90 Wood, I, Chudleigh, P. and Bond, K. (1994), Developing New Agricultural Industries - Lessons from the Past, Volume 1, Research Paper Series No 94/1, Rural Industries Research and Development Corporation.
91 Those listed were not always shown to be significantly related to success, as indicated by the indices and statistical analyses used in the Rural Industries Development Commission's study. Industry members claimed the factors described were important. Lack of statistical significance could be a consequence of the small sample size of 35 industries with only 18 involved in processing, and/or the narrow definition of `success'.
92 Wood, I, Chudleigh, P. and Bond, K. (1994), Developing New Agricultural Industries. Lessons from the Past, Volume 1, Research Paper Series No 94/1, Rural Industries Research and Development Corporation, Kingston, ACT, p. 1.
94 Wood, I, Chudleigh, P. and Bond, K. (1994), Developing New Agricultural Industries. Lessons from the Past, Volume 1, Research Paper Series No 94/1, Rural Industries Research and Development Corporation, Kingston, ACT, p. vi.
95 Wood, I, Chudleigh, P. and Bond, K. (1994), Developing New Agricultural Industries. Lessons from the Past, Volume 1, Research Paper Series No 94/1, Rural Industries Research and Development Corporation, Kingston, ACT, p. 5.
96 For example, tea-tree oil as an antiseptic
97 For example, native plants used in novel cuisine.
98 Wood, I, Chudleigh, P. and Bond, K. (1994), Developing New Agricultural Industries. Lessons from the Past, Volume 1, Research Paper Series No 94/1, Rural Industries Research and Development Corporation, Kingston, ACT.
100 For example, AMRAD Discovery Technologies and Robins Bush Foods inspected by the Committee 29 March 1999
101 For example, Australian Native Produce and Macro Meats, two native-species food companies, are negotiating to place their products in mainstream supermarket chains.
102 Hyde, K.W. (ed.) (1996), The new rural industries, Rural Industries Research and Development Corporation, Kinfston, ACT.
105 Wood, I, Chudleigh, P. and Bond, K. (1994), Developing New Agricultural Industries. Lessons from the Past, Volume 1, Research Paper Series No 94/1, Rural Industries Research and Development Corporation, Kingston, ACT, pp. 48-50.
Mills, B. (1999), kelp. harvester and processor, personal communication, 18 February 1999.
107 Wood, I, Chudleigh, P. and Bond, K. (1994), Developing New Agricultural Industries. Lessons from the Past, Volume 1, Research Paper Series No 94/1, Rural Industries Research and Development Corporation, Kingston, ACT, p. 8.
