Australian Potato R&D Investment Update IPG Meeting

Cape Town, 2010

Richard Mulcahy (AUSVEG) Kevin Clayton-Greene (TAG) Stuart Burgess (HAL)

Market Segments
The use of potatoes is varied & within Australia the industry can be
broadly split into 4 unique segments: Fresh Potatoes This refers to potatoes sold for fresh market Processed Frozen This refers to potatoes sold primarily as frozen chips, though other value added items such as potato gems have recently been introduced Processed Crisps This refers to potatoes processed & sold as potato

chips
Seed Potatoes Potatoes grown as seed for processing & fresh market use

Australian Potato Production Trends

Australian potato production is fairly consistently around 1,250,000 tonnes fluctuating between 1,150,000 and 1,320,000 over last decade Total area planted approx 34,000 hectares The average yield per hectare is approx 35.5 tonnes These numbers are in line with historical data especially for the past decade Area planted generally decreasing. In contrast, yields had been rising for the past decade (hence static total tonnage) The latest figures are largely consistent with these overall movements

Domestic Value
Gross Value of Production (GVP) approx $515 million

Average price per tonne somewhat volatile over past few years but generally declining in frozen processing markets Anticipate steady decline in production levels over coming years with general sense of pessimism

State Production

VIC (22%), SA (31%) & TAS (23%) produce approx 75% of the national potato crop SA has become increasingly important as output from VIC & TAS continues to fall TAS potatoes primarily used for processing

Market Access
Domestic markets are free/no restrictions on production with the
exception in Western Australia where production has been (and continues to be) regulated for over 40 years

Domestic movement of seed restricted by some states primarily because

of PCN (long running attempt to harmonise national PCN approach) Imports of fresh & seed potatoes are prohibited to enter Australia

Developing export markets is quite difficult. Access to some important

foreign markets is highly restricted

Potato Consumption
Period 1979 1989 1999 2006 Average for 3 years ending (kg) 50.1 61.5 68.0 61.9 Source Australian Bureau of statistics estimate Australian Bureau of statistics estimate Australian Bureau of statistics estimate AUSVEG estimate

Consumption data is fragmented & dated latest official statistics (1997-99) Per capita consumption was on the rise in the 20 years prior to 1999 Consumption has fallen in recent years down to 61.9 kg per capita

What is HAL ?

HAL is a Research and Development Corporation owned by industry and is accountable for the effective and efficient investment of the levy

HAL members

Roles and responsibilities

Levy Payer Benefit

Aust Govt
DAFF

Invest in projects
(Service providers)

PIB - Ausveg and PPAA (PP only)

Funding VC

HAL Advice

Consult
Technical Advisory Group (TAG)

Fresh and Processed IAC

Potato Levy Split

Collected by Levy Revenue Service (LRS) at first point of sale
Horticulture Australia (HAL) manages those funds which are matched dollar for dollar by the Australian Federal Government Split between Fresh and Processed industry sectors (approx. 35:65) Treated as separate investments Funded revenue can only be used for R+D outcomes Australia does not have a national marketing levy currently under review Reported to Federal Government as one investment

Where do we invest levies?

Potato Industry strategic plans

Potato Industry Strategic Plans

Potato Annual Investment Plan R&D Program

Potato Industry Advisory Committee

Annual Report To Levy Payers

The focus is on sound commercial

outcomes

Fresh & Processed Potato Strategic Plan (2006-11)

4 key pillars
1. Improve consumer demand for Australian fresh potatoes 2. Improve industry competitiveness 3. Improved industry communication and information systems 4. Improve leadership and management capability

Fresh Potato R&D Program - key projects

Biosecurity e.g. Potato Cyst Nematode (PCN) National Harmonisation, Zebra Chip / Psyllid, Risk Assessments Industry Communications Potatoes Australia and other related activities National Potato Breeding interim program (underpinning technology) Investigating establishment of potential marketing levy

Current value of 2010/11 Fresh Potato R&D Investment against Government priorities
Productivity and Value Adding Supply chain and markets Natural Resource Management Climate Variability Biosecurity Innovation skills Technology R&D 2010/11 Total $105,436 $84,580 $33,880 $19,080 $59,749 $55,467 $92,424 23.4% 18.8% 7.5% 4.2% 13.3% 12.3% 20.5%

$450,616

100.0%

Processed Potato R&D Program

Australian Potato Research Program 2 (APRP2)

Five R&D program plus SED as manager $8.5m over 5 years ($13.7m including research partner contributions) Thirteen providers to HAL and industry

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

Productivity and Value Adding Supply chain and markets Natural Resource Management Climate Variability Biosecurity

$446,336 $160,970 $165,921 $3,043 $356,608

27.5% 9.9% 10.2% 0.2% 21.9%

Innovation skills
Technology R&D 2010/11 Total

$196,898
$279,646 $1,625,147

12.1%
17.2% 100.0%

Program outcomes

PT09004 IPM Technologies $1M Psyllid in IPM

Delivery of IPM strategy to manage tomato-potato psyllid that is compatible with existing IPM strategies and reduced reliance on chemicals

PT09019 TIAR $400k Tuber-borne inoculum

Delivering opportunities to use DNA diagnostics in Seed Potato Certification schemes. Quantifiable measure of the influence of tuber-borne inocula on disease development under varying soil disease loads

Program outcomes (cont)

PT09023 SARDI - $2.2M DNA soil diagnostic tests

Delivering pre-plant, DNA-based soil tests for growers for quantification of soil-borne pathogens (Spongospora subterraneum, Streptomyces scabies, Rhizoctonia AG2-1 and AG3) and risk factors prior to planting (with supporting reference tools) Delivery of service model and training developed as optional phase 2

PT09029 University of Melbourne $180K PED

Fundamental understanding of Potato Early Dying (PED) in Australia cause (Verticillium, nematode interaction) Create a platform for future work

Program outcomes (cont)

PT09026 DPI Vic $4.1M Soil health/disease mitigation

Delivery of a decision chart/brochure describing soilborne disease management strategies based on soil amendments and nutrient manipulations (based on research in APRP1 and APRP2) Research into novel approaches for disease suppression using endophytes and 2,4-D Validation of the role of irrigation water as a source of inocula for the disease bacterial wilt in potato crops grown in the catchment of the Bunyip river

Control of potato psyllid within an IPM strategy

IPM Technologies / PFR / Horticulture NZ

Project is on track Colonies of three species of nominated predators established Commercial sites identified in North and South Island to trial IPM approach

Importance of tuber-borne inocula on seed potato health

TIAR / SARDI
Workplan developed to compare visual tuber inspection protocols versus two protocols for diagnostic sampling and testing Sample collection by the TIAR seed certification team (mechanical peeling) commenced Literature review of the use of diagnostics in seed certification commenced

Diagnostic test for soil-borne pathogens (international)

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

Standardisation of DNA testing commenced for powdery & common scab, Rhizoctonia solani Experimentation to understand relative contribution of soil and seed inoculum for these pathogens and to determine key factors in disease development Validation of pre-plant use of the DNA tests planned for late 2010

Soil health/disease mitigation program

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

Trials underway or completed in Victoria, NZ and Canada examining effects of a range of interventions on common and powdery scab (sulphur, pH modifiers, K:Mg ratios, soil and foliar applications of iron, zinc and sulphur, Nebijin, formic acid and others) DNA surveys of pathogens from paddocks under various rotation regimes completed (TIAR) Grower group presentations in Vic by research partners from Canada and NZ

Enhancing the understanding of Verticillium in Australian potato production

University of Melbourne
PhD student to be appointed The project is in the process of securing funding for a second PhD to complete vital project objectives

Overall progress

Science is generally tracking well considering late start but some work will be delayed Program admin and internal communication mechanisms established External communications and evaluation still being bedded down

Communication

APRP2 has limited communication resources Mainly internal

Website, newsletter, TOC, AC, milestones, etc

Some external
Potatoes Australia, APRP2 Workshops

Evaluation

APRP2 is primarily R&D based there is little emphasis on uptake and adoption Therefore, evaluation will be limited mainly to activities and outputs SED will manage the evaluation with support from other projects

Evaluation logic
Long-term outcomes Outcomes Short-term outcomes measurable after the life of the project Outcomes measurable during the life of the project Outcomes include knowledge, skills, practices, behaviours, economic / social / environmental improvements

Outputs Activities Things done during the project (e.g. scientific trials) Tangible deliverables from the project (e.g. scientific papers)

Pyksis - lessons learned APRP1

Issue
Focus on programs that address strategic industry needs Expand industry inclusivity Establish realistic expectations and outcomes for programs Ensure that programs remain focused Review and streamline existing management, procedures and processes Expand international collaboration Ensure effective communications and extension Establish program metrics, accountability, routine critical review and mechanisms for change Expand the available funding sources

APRP2?
? ? ?

APRP2 Program participants

Australian National Potato Breeding Program

Strategic trait development Government investment Parent collection International and local links Crossing program to develop parents Marker development
Phenotyping Genomics

parents

priorities

Commercial breeding programs Commercial investment Cultivar development Commercial focus and cultivar uptake 7 programs & growing!

Science and Industry A partnership and a continuous process

Zebra Chip Mini-Summit

On 16 December 2009 AUSVEG convened a Zebra Chip Industry Summit in Melbourne. 35 attendees from across the potato industry including AUSVEG State members, government, major potato growers and processors, and other relevant bodies. Zebra Chip Disease Complex causes damage to potatoes and tomatoes, including Zebra Chip symptoms in the potato tuber when cooked and the disease has been devastating in New Zealand (NZ). The Zebra Chip Summit also established that Dr Kevin Clayton-Greene is to travel between Australia and New Zealand to investigate measures being taken by the New Zealand industry. These meetings have been taking place in New Zealand throughout 2010. Recommendations as a result of the meetings include revisiting the categorisation process given new information which has come to light (currently being completed), as well as a recommendation to establish closer contact with Biosecurity Australia to work together on measures to prevent an incursion.

Across - Industry Program

Across Industry Program

Potato Industry Communications

Managed by AUSVEG - Funded by national potato levy with matched Federal Government contributions Produces Potatoes Australia magazine bi-monthly Potato section of AUSVEG website lists R&D projects, news & information

Printed & promotional material to support projects

Potatoes Australia magazine

85% R&D content Circulation: 2400 (approx) Leading potato industry communication medium Delivers R&D outcomes and information directly to potato growers around Australia in an accessible and user friendly format Recent articles have covered: Zebra Chip Disease; APRP 1 and 2; Verticillium Spp; Grower Profiles; Fast Facts about the National Potato Levy Upcoming coverage of Potato Virus Y; Potato Virus S; PeriUrban encroachment; health benefits of potatoes; Researcher Profiles

Issues Currently Facing the Australian Potato Industry

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

Zebra Chip potential incursion huge threat to industry PCN currently seeking to finalise national harmonisation plan Biosecurity generally PVY Increase in the number of detections Phasing out / resistance of chemicals ETS / Carbon Price Introduction of an ETS / Carbon Price in 2011 Water security Impact of Productivity Commission report Federally (risk to VC funding) Erosion of relative levy value