Australian public sector agricultural R,D&E:

Is it fostering innovation, or getting in the way?

Mick KeoghAustralian Farm Institute

A brief stocktake

Production limits ?

Future Australian agriculture sector economic growth will need to come from;

– Increased unit value of production, and/or– Increased volumes of production from existing

resources.

Going from volume to value

Agriculture total factor productivity – selected nations. (Source: Fuglie et al 2014)

Source: ABS

Public agricultural R&D investment

Source: Fuglie et al, ABS, Mullen

Cumulative adoption of no-till by Australian grain growers

Source: Llwellyn and D’Emden, 2009

The ‘dining boom’ will save us…..

201520162017201820192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050

100

120

140

160

180

200

220Implications of global agricultural productivity growth rates

0.50% 1.00% 1.50% 2.00%

16

Source: UN Comtrade

Private sector R&D investment will save us ….

Different R&D motivations

Public and private sector agricultural R&D is generally complementary, rather than competitive.

Predictable lifetime performance

Specific trait selection with low risk

Accelerated genetic gain

Genomics

GM crops (and pastures)

Digital farming

Robotics

What needs to change ?

Who does what ?

Undergraduate training

Post-graduate training

Basic research Applied research

Product development

Extension and adoption

Universities

State DPI

CSIRO ?

Private sector

Good Average Poor

Neglecting the basics ?

Accountability

The business of education

Private sector collaboration

Private sector collaboration

• US example – 300 Cooperative Research and Development Agreements (CRADAs) to develop specific technologies.

(USDA – in kind, private sector $$$s)

• Small Business Innovation Research (SBIR) (Defined proportion of USDA R&D budget)

Knowledge Centre for Agriculture

Where is the will ?

• 7 States/Territories aiming to boost agricultural output

• 22 national R,D&E strategies

• 0 resourced implementation plans

Financial management

Productivity opportunity

Capital investment

ProductionManagement

Profit Domestic R&DInternational R&DPrivate sector R&D

CreditEquity financeSeasonal financeRetained profits

Post-school educationSkills qualificationsIndustry trainingAdvisory servicesEnvironment

Business skillsAdvisory servicesPost-school training

RDCs

Universities

CSIRO

State DPI

International public sector

Private sector

Universities

TAFE

RDCs

State DPI

Grower groups

UniversitiesTAFE

Banks

Agents

Input suppliers

Investors

The adoption cycle

Some conclusions

• Productivity growth is a key factor that will be required in order to take advantage of emerging opportunities.

• Long-term public and private sector investment in agricultural R&D will be required to achieve this.

• There is a multitude of opportunities to better integrate and focus agricultural R&D investment in Australia.