PREFACE

A feature of the earlier conferences was that they were held at regular intervals and in similar format. A special section of the CSIRO convened and managed these meetings. When the CSIRO section ceased its operations as a convenor of meetings, the style and schedules of conferences underwent considerable change. The International Society for Horticultural Science, ISHS, became the vehicle for convening gatherings of horticultural scientists. Since the ISHS is not exclusively a research body, and is international in its scope, the conference took on a wider technical base and a broader geographical scope. As well as the Sydney Congress in 1978, there have been related conferences on Tropical and Sub-tropical Tree Crops, (Gatton 1987) and Temperate Tree Crops (Roseworthy 1988).

The proposal to hold this conference was made at the XXIInd International Horticultural Congress, at Davis, California, in August 1986. The Section Vegetables of the ISHS approved the holding of this conference in this part of the world. The conference was primarily for Australian and New Zealand workers, with opportunities for contributions from Pacific Basin and South East Asian countries. Approval was obtained from the Standing Committee on Agriculture to hold the meeting, and Hawkesbury Agricultural College agreed to host the Conference.

It will be noticed that the proceedings of the Conference are to be published as a volume of Acta Horticulturae, the official publication of ISHS. This gives the Conference papers an international readership, since Acta is held in the leading libraries in the world of horticultural science. It is also to be remembered that this Conference has a responsibility to the Standing Committee on Agriculture, to report to that body on the state of research and technology for the vegetable industries of Australia.

Since it is evident that the continuation of these meetings depends on the level of activity in ISHS, and the degree of commitment by certain individuals, it has been suggested that a more formal structure might be adopted for the continuation of these commodity-based conferences.

This conference includes, in its terms of reference, the postharvest R & D that was previously the subject of separate conferences; and the wider concept of marketing, which was not evident in any of the previous conferences. The degree to which the merger of these wider fields of endeavour succeeded in producing a more comprehensive outcome might be judged from the contributions to each of the sectors.

I should like to thank members of the local organizing committee, Dr Owen Carter, Dr Barry McGlasson, Mr. Tony Biggs, Mr. John Baker, Mr. Mike Titley, Mr. Doug Hocking and Mr. David Tayler; also members of the extended committee Dr Mike Nichols (N.Z.), Mr. Peter Beal (Qld.), Mr. Peter Shea (Vic.), Mr. Brian Frappell (Tas.), Dr Ian Rogers (S.A.), Mr. Brian Stymes (W.A.) and Mr. Kevin Blackburn (N.T.).


Dr. William J. Greenhalgh (Convener)


OPENING ADDRESS BY THE HON. JOHN KERIN
MINISTER FOR PRIMARY INDUSTRIES AND ENERGY
TO THE VEGETABLE RESEARCH AND DEVELOPMENT CONFERENCE,
HAWKESBURY AGRICULTURAL COLLEGE, RICHMOND, 11 JULY 1988

Mr Chairman, ladies and gentlemen.

Thank you for the opportunity to address you at this most important conference.

The organisers are to be commended for their theme, "The Market and the Producer".

The fundamental importance of this link must be more widely recognised than it is at present if Australia's productive resources are to achieve their full potential. The attitude that all too often prevails in Australia, and I am certainly not singling out the vegetable industry, is "I have produced it so someone should buy it and at a profit to me".

Often the harsh reality of the market does not fully register.

Unless producers, processors, researchers and others, have a sharp eye to the market and are able to adapt and respond to new challenges and opportunities, Australia will never fully reap the potential rewards.

The development and retention of competitive and adaptive industries is a priority of this Government.

Research and development plays a critical role in this, as do a number of other factors that I will touch upon today.

Taken individually the value of production of most vegetables is small when compared with the total output of the agricultural sector. However, taken as a whole, vegetable growing is the second or third largest crop enterprise.

In 1986–87 vegetable production was worth 885 million dollars. It is the predominant activity on about 6,500 farm establishments. There are also around 70 establishments processing vegetables who directly employ over 6,000 people.

The vegetable industry has traditionally been very much domestically oriented, with the value of fresh exports being equivalent to around only six percent of production.

Studies undertaken by the Australian Bureau of Agricultural and Resource Economics suggest that, for most common vegetable crops, overall consumption in Australia is unlikely to expand at much beyond the demographic rate.

Future development of the industry therefore will essentially rely upon attracting the consumer dollar against competition from all other products and services. Continued improvement in efficiency is therefore essential for the industry to prosper.

The Government has put into place major reforms that will improve Australia's competitiveness. They are characterised by fiscal discipline and a resolve to increase industry efficiency.

These policies attacked costs and will stimulate structural adjustment so that resources are used more productively and efficiently.

The Government's monetary policy has been designed to facilitate stable and balanced economic activity within the limits imposed by the balance of payments deficit, and to allow smooth adjustment following the stock market slump.

Fiscal policy has resulted in a budget surplus this year for the first time in 30 years. At the same time the Government has undertaken major reform of the tax system.

The Prices and Incomes Accord has reduced real unit wage costs and inflation. The two tier system has meant increased flexibility in wage determination, by matching wage increases with productivity growth.

Deregulation of financial markets has improved efficiency and encouraged a flow of investment funds into the most productive outlets.

Overall the Government's macroeconomic policies and economic management is helping to rebuild a stronger and more competitive and internationally oriented economy.

On the external side we will continue to relentlessly push those major trading nations that continue to subsidise their industries to change their policies.

A range of microeconomic reforms have also been introduced to ensure investment is attracted to the most productive areas of the economy. These reforms will provide the basis for a further lowering of industry costs and improvements in productivity.

The Government is addressing impediments to efficiency in the transport and handling industries.

Late last year the deregulation of Australia's international air freight charter policy was announced. This initiative will increase the opportunities for exporters to maximise the marketing potential of air freight.

Significant changes have also been announced to existing liner shipping legislation. The new package will reduce the existing exemption for conference operations under the Trade Practices Act and will remove the secrecy which presently surrounds conference agreements. The result should be greater competition between carriers.

The Government's Waterfront Strategy is aimed at developing a package of measures to improve the efficiency, productivity, reliability and industrial relations record on the waterfront and thus assist export industries to compete more effectively on world markets.

The Government announced in May its decision to further increase emphasis on reforms at the microeconomic level.

The restructuring and redirection of Commonwealth policies for the primary industries and resource sectors announced at that time were the culmination of a detailed industry review. This review consisted of a major reassessment of policies in my portfolio and an examination of the direction and nature of assistance measures as well as the degree of industry regulation.

The decision to progressively reduce assistance to highly protected industries will make all industries more efficient.

With very limited exception the vegetable industry is relatively lightly assisted and the industry has shown a capacity to adapt. Reductions in assistance to other sectors of the economy will therefore have beneficial effects for the vegetable industry as a whole.

The Government also reaffirmed its commitment to funding of rural research. Over the last three years total expenditure has risen markedly from 66.6 million dollars to an estimated 95.7 million dollars. An additional 7.9 million dollars will be provided in 1988–89.

The Government's policies are creating the right framework for the horticultural industries to achieve their full potential. However, continued improvements in the areas of research and development and innovation in marketing are essential if the industry is to achieve the levels of potential that clearly exist.

There must be a concerted effort both the Government and the industry itself to fully exploit the opportunities provided by our improved competitiveness - to develop new products and to exploit new markets.

the vegetable industry, and the horticultural sector generally, consists of a large number of small producers who individually do not have the scale to undertake marketing and research efforts of their own.

Traditionally marketing has been undertaken by a large number of organisations including Commonwealth and State statutory marketing authorities, grower co-operatives, some large agribusiness enterprises and commission agents.

It is particularly important that these bodies are commercially orientated in their approach. But as I mentioned at the outset, too often decisions by individual producers and marketing organisations do not adequately take account of the requirements of consumers in the market place.

In a situation where consumers are able to be selective in a competitive market, it is imperative to target production to market needs. To meet the increasing sophistication of the markets, producers need to ensure their products are not just acceptable to the market, but that they are able to extract fully the price premiums available.

Value adding activities should be pursued and in this context research and development can play a major role.

Australia's research and development effort has been far less than that of many of our competitors and it is widely acknowledged that there has been a significant underinvestment in post harvest research.

Also the adoption of new technology and the application of equipment and systems that would assist in improving productivity has not been as widespread as it could be.

In an effort to encourage more efficient and effective marketing and to improve Australia's research and development base for the horticultural sector the Government has introduced a number of specific initiatives.

These include increased emphasis by Austrade, the introduction of 25 million dollar Innovative Agricultural Marketing Program and the introduction of Plant Variety Rights. The Government has also introduced new statutory arrangements for the horticulture industry.

Austrade currently provides a wide range of services and has 67 posts in 51 countries. All of which can provide help to the horticulture sector.

In 1987 Austrade released an Export Development Strategy for fresh fruit and vegetables. This Strategy identified a potential increase in exports of fresh horticultural products of up to 20% per annum over the next four years, particularly to Pacific rim countries.

The Innovative Agricultural Marketing Program (IAMP) was established to stimulate innovation in the marketing of agricultural products, in quality control and in new product development.

In May I announced the Government would introduce an agricultural marketing skills program. Funds will be available from within the IAMP to provide for a series of courses in international marketing skills for marketers of agricultural products.

Under the program particular emphasis will be placed on smaller, developing industries which do not have well established marketing expertise. This program is estimated to cost 5 million dollars over

It is particularly important that these bodies are commercially orientated in their approach. But as I mentioned at the outset, too often decisions by individual producers and marketing organisations do not adequately take account of the requirements of consumers in the market place.

In a situation where consumers are able to be selective in a competitive market, it is imperative to target production to market needs. To meet the increasing sophistication of the markets, producers need to ensure their products are not just acceptable to the market, but that they are able to extract fully the price premiums available.

Value adding activities should be pursued and in this context research and development can play a major role.

Australia's research and development effort has been far less than that of many of our competitors and it is widely acknowledged that there has been a significant underinvestment in post harvest research.

Also the adoption of new technology and the application of equipment and systems that would assist in improving productivity has not been as widespread as it could be.

In an effort to encourage more efficient and effective marketing and to improve Australia's research and development base for the horticultural sector the Government has introduced a number of specific initiatives.

These include increased emphasis by Austrade, the introduction of 25 million dollar Innovative Agricultural Marketing Program and the introduction of Plant Variety Rights. The Government has also introduced new statutory arrangements for the horticulture industry.

Austrade currently provides a wide range of services and has 67 posts in 51 countries. All of which can provide help to the horticulture sector.

In 1987 Austrade released an Export Development Strategy for fresh fruit and vegetables. This Strategy identified a potential increase in exports of fresh horticultural products of up to 20% per annum over the next four years, particularly to Pacific rim countries.

The Innovative Agricultural Marketing Program (IAMP) was established to stimulate innovation in the marketing of agricultural products, in quality control and in new product development.

In May I announced the Government would introduce an agricultural marketing skills program. Funds will be available from within the IAMP to provide for a series of courses in international marketing skills for marketers of agricultural products.

Under the program particular emphasis will be placed on smaller, developing industries which do not have well established marketing expertise. This program is estimated to cost 5 million dollars over

I would urge all those within the vegetable industry to consider the benefits the two Horticultural Corporations will be able to provide to their industry.

The vegetable industry is one of great diversity capable of producing a wide range of high quality products which are sought both here and overseas. To meet this challenge the industry must take greater account of the needs of the market place and continually update and utilise the results of research.

I am very encouraged by the approach being taken at this Conference.

I am confident that through such processes the vegetable industry will grow and strengthen.

I have much pleasure in formally opening this Vegetable Research and Development Conference.

Thank you.