Pineapple: Strategic Investment Plan
Pineapple: Strategic Investment Plan
S TR ATE G I C I N V E S TM E NT PL A N
2017-2021
Content
Introduction 3
The pineapple SIP 3
Pineapple SIP at a glance 4
Section one: Context 6
The Australian pineapple industry 6
Operating environment 14
Section two: Pineapple industry outcomes 15
Section three: Pineapple industry priorities 17
Industry investment priorities 17
Aligning to Hort Innovation investment priorities 19
Section four: Pineapple industry monitoring and evaluation 21
Pineapple SIP monitoring, evaluation and reporting 21
Pineapple SIP M&E plan 23
Section five: Impact assessment 25
Section six: Risk management 27
DISCLAIMER
Any views contained in this Strategic Investment Plan (SIP) do not necessarily represent the views of Horticulture Innovation Australia Limited
(Hort Innovation) or its commitment to a particular course of action or a guarantee of specific outcomes. Hort Innovation will make research and
development (R&D) and marketing investments to meet its obligations as outlined in the Deed of Agreement between Hort Innovation and the Australian
Government (2014-18) and the Hort Innovation Constitution (2016). Hort Innovation reserves the right to amend or vary the SIP without notice.
Hort Innovation makes no representations and expressly disclaims all warranties (to the extent permitted by law) as to the accuracy, completeness,
or currency of information provided in Section 1 of this SIP. Recipients or users of the information contained therein (and any links) should take
independent action before relying on its accuracy in any way. Hort Innovation is not responsible for, and will not be liable for, any loss, damage,
claim, expense, cost (including legal costs) or other direct or indirect liability arising in any way (including from Hort Innovation or any other
person’s negligence or otherwise) from the use, non-use or reliance on the information contained in Section 1 of this SIP.
COPYRIGHT
Copyright subsists in this SIP. Hort Innovation owns the copyright in this SIP. Apart from rights to use as permitted by the Copyright Act 1968 (Cth)
this SIP (in part or as a whole) cannot be reproduced, published, communicated or adapted without the prior written consent of Hort Innovation.
Any request or enquiry to publish, communicate, adapt or use the SIP should be addressed to:
Communications Manager
Hort Innovation
Level 8, 1 Chifley Square
Sydney NSW 2000
Australia
Email: [email protected]
Telephone: 02 8295 2300
Hort Innovation is the not-for-profit, grower-owned research Levy is payable on pineapples that are produced in Australia
and development (R&D) and marketing company for and either sold by the producer or used by the producer
Australia’s $9 billion horticulture Industry. in the production of other goods. The levy rate on fresh
and export pineapples is $5 per tonne and processing
As part of the role Hort Innovation plays as the industry
pineapples is $2 per tonne.
services body for Australian horticulture, the organisation is
tasked by the Australian Government with working alongside Hort Innovationmanages the pineapple levy funds
industry to produce a strategic plan for investment of levies proportion directed to R&D (fresh and export $2.90 per tonne
in industry R&D and marketing activities. and processing $1.90 per tonne) and marketing ($2.00
per tonne). Separately, Plant Health Australia (PHA) manages
Each individual levy industry investment strategy also speaks
plant health programs ($0.10 per tonne). In 2015/16 total
to the future growth and sustainability of the Australian
pineapple levy receipts were approximately $259,000:
horticulture industry as a whole. The SIPs are produced
$172,000 of R&D levies and $86,000 of marketing levies.
under the umbrella of the Hort Innovation Strategic Plan,
which takes a whole of industry view in setting its direction, Hort Innovation has developed this SIP to assist in strategically
as it considers broader agriculture government priorities for investing the collected pineapple levy funds in the priority
the advancement of Australian horticulture. areas identified and agreed by the pineapple industry.
The ability to deliver on all the articulated strategies (and
The process in preparing each SIP was managed by Hort
investments) in an impactful manner will be determined by the
Innovation and facilitated in partnership with Industry
ability of the statutory levy to provide the resources to do so.
Representative Bodies and Strategic Investment Advisory
Panels (SIAP). Independent consultants were engaged to This plan represents the Australian pineapple industry’s
run the consultation process, to gather the advice from collective view of its R&D and marketing needs over the next
stakeholders impartially and produce a plan against which each five years (2017 to 2021). The intent is for this plan to provide
levy paying industry can be confident of its strategic intent. the blueprint out to 2025 to accommodate crop cycles. This
plan has been developed in consultation with Australian
Hort Innovation has valued the support, advice, time
pineapple levy payers through a synthesis of priority-setting
and commitment of all stakeholders that contributed to
exercises, direct consultations and workshops with Hort
producing the SIPs, especially pineapple growers.
Innovation’s pineapple industry SIAP.
OUTCOMES STRATEGIES
POTENTIAL IMPACT OF THIS PLAN
Product quality Foster and support new pathways
and consistency to help growers adopt continuous
7.17
improves returns improvement practices
$
to growers
through increased Improve industry understanding of the
consumer potential for automation
demand Continue to build on industry
production benchmarking and supply
yy Increasing health focus on gut health yy Potential loss of experience within the industry with the
retirement or loss of experienced agronomists.
yy Availability all year.
Industry size and production distribution Pineapple supply chain and value 2014/15
Processing
23,488 tonnes; 35%
2014/15 Production
QLD 99% Fresh supply
Approx. 110 67,434 tonnes 43,910 tonnes; 65%
Other 1%
growers $52.4 million
Fresh export
36 tonnes; <1%
The Australian pineapple industry is predominantly made up Although pineapples are available year-round, the consumer
of growers whose families have been growing pineapples for perceives them to be a summer fruit and the majority of fresh
generations. There are three major pack houses/marketing product is purchased through an impulse buy. Issues of over-
groups, each with a number of growers supplying them directly. supply and poor quality can impact the market at different
times of year dependent on weather conditions, heat and
The industry has moved from one where the majority of fruit flowering events. With the long growth cycle, methods to
was grown for processing to one that is moving towards control flowering would help smooth supply volatility while
fresh supply due to the increased competition from cheaper developing a non-invasive quality test would provide the
imports of processed fruit. certainty required to maximise return.
Current farm management practices are used in accordance
with Australian standards and seasonal conditions. There Location and extent of production
is an appreciation of the need to adopt best management
practice (BMP) approaches and to develop and adopt Varieties of pineapples grown in Australia include Smooth
integrated pest and disease management (IPDM) practices to Cayenne, 73-50, MD-2, Aus Jubilees and Queen1. Smooths
move away from this dependence. Many in the industry have are mainly used for processing as canned or juiced
adopted BMP approaches and acknowledge the compliance pineapples with the other varieties presented to the fresh
required through adopting farming practices that conform to market 1. Approximately 60 per cent of pineapple plantings
the regulatory protection of the Great Barrier Reef. are Smooth Cayenne and Queen (Rough leaf) varieties, and
40 per cent of plantings are of hybrid varieties1. Pineapples
There is cohesion across the growers which has been built are available year-round.
over many years of cross-farm education and interaction
during the period when much of the industry was supported Pineapples are grown predominantly in Queensland with
by the Golden Circle cannery through its agronomists and the major growing regions in Mareeba (North Queensland),
field days. Although much of the experience of the growers Yeppoon, Bundaberg (Central Queensland) and the
is retained through the multi-generational family unit, there Sunshine Coast 2.
is a potential for this specialist knowledge to be lost with the
Whilst Queensland remains the largest production region, the
retirement of many of the agronomists from the industry.
Northern Territory has increased it production significantly.
The industry is heavily labour dependent and although Whilst exact numbers are unknown, production is expected
attempts have been made to automate the industry there has to continue this trend.
been little success. Labour cost and availability is a major
impact and this could drive investigation into developing
automated practices, especially focused on harvest.
Darwin
Mareeba
Rollingstone
Yeppoon
Bundaberg
Hervey Bay
Maryborough,
Nambour
Glasshouse
Mountains,
Beerwah,
Wamuran,
Elimbah
Adapted from:
http://www.aussiepineapples.com.au/about/growing.html
Production value
Data collected by the Queensland Department of Agriculture and Fisheries below highlights the fluctuations in production and
also demonstrate the variability in data sources for the industry.
Difference
Change from between
April 2014/15 2015/16
2014/15 2015/16 to October forecast and
forecast April forecast 2015/16 Average for average past
2012/13 2013/14 2015 October 2015 forecast past five years five years
Commodity AUD million AUD million AUD million AUD million Per cent AUD million Per cent
GVP
Pineapples 83 73 72 71 –1 69 3
Domestic markets
The Australian Horticulture Statistics Handbook 2014/15 that incorporates the department’s data states that the production volume
of pineapples was 67,434 tonnes for the year ending June 20152 and area under cultivation has increased from 1,392 hectares to
2032 hectares from 2013 to 2015. Most significantly fresh supply has remained steady around 48,000 tonnes. The data published
in the Horticulture Statistics Handbook adopts a modelling approach that centres on determining the fresh market value and
volume and is based on a number of collated collection points. It will be updated with improved accuracy as more hard data
becomes available. The estimated area under cultivation for pineapples is ~ 3,500 hectares.
Consumer metrics
36 tonnes
Fresh Export
$0.1 million 39% 1.4kg 1.8kg
<1%
–
Processing 23,488 tonnes Fresh Import
$0.0 million
The Australian pineapple processing sector has been in Consumption – Domestic demand and
decline since 2012/13 when it produced 39,000 tonnes of
fruit for canning and juicing, worth $12.5 million. At 44 per
prices for fresh pineapples
cent of production volume, the 2014/15 year sent 36,516 Significant events affecting processed pineapple
tonnes for processing which still represents a significant in recent years
proportion of pineapple production. The decline is mainly
due to competition from cheaper imported product and the The reduction in processing of Australian pineapples,
move to the delivery of fresh product. This may also explain coupled with issues of processed pineapple imports from
why the number of processed growers in the industry has lower cost producers overseas, have had a major impact on
decreased over the last five years from 114 in 2011 to around the balance between fresh and processed pineapples for
30 in August 20161,3,9. Australian growers.
In contrast, the fresh sector has expanded considerably over Australian-produced pineapples, already only 10 per cent
the past 15 years, due mainly to the adoption of better quality of the market in 2013, fell to five per cent in 2015. Even the
of the new hybrid varieties by the domestic market, with an local industry processor Golden Circle (a subsidiary of Heinz
estimated farm-gate value of $52.4 million2. Australia since 2008) currently sources more pineapples for
processing from overseas than from Australia. The result is
a decrease in price of processed pineapple in Australia and
difficulty for others to compete.
Consumers and consumer research Over the four years to 2015, the marketing focus was on
female, main grocery buyers aged between 35 to 60 years,
According to the Australian Horticulture Statistics Handbook families and high income households7.
2014/15, in 2014/15, 39 per cent of Australian households
purchased fresh pineapples. The consumption per capita To increase demand of fresh pineapple, the future focus of
was 1.8 kilograms, based on the volume supplied2. marketing initiatives for the next three years is on individuals
aged under 45 years in households of up to four people.
Consumer research from 2011 found that:
It is worth noting that MD2 has replaced Smooth Cayenne
yy Although available year-round, most consumers perceive as the preferred variety in every major European market
pineapples as a summer fruit because of its sweeter taste, higher vitamin C content and
yy The market requires certain characteristics in terms of longer shelf life3.
flavour (including sweetness, acidity, volatiles, texture and
juiciness), fruit size, shell colour, general appearance and
Consumer benefits
shelf life1
yy Consumers are also known to seek value, availability, Pineapples are available all year with a peak in October to
convenience, health benefits and provenance with the November and May to June, however, they are seen by the
purchase drivers being: price, quality, colour, smell, consumer as a summer fruit7.
appearance7
The main health benefits of pineapples, which can be used
yy Consumers see pineapples as an exciting and attractive for marketing, are:
fruit. However, there is clear lack of engagement with
yy High levels of vitamin C, vitamin B6 and potassium
69 per cent of consumers making the decision to
purchase at point of sale (POS)7. yy An excellent source of manganese, great for bone and
skin health
The consumption preferences are that7:
yy Bromelain to treat indigestion and reduce inflammation
yy The majority of consumers prefer eating the fruit fresh (The Pineapple Press, September 2015)
yy Pineapple consumption is positively correlated to low yy High in both soluble and insoluble fibre.
involvement meals, for example, fruit salad and as a snack.
The main barrier to consumption is the effort required to
prepare the fresh fruit and the perception that there is a lot
of waste when removing the skin.
Figure 2: Proportion of pineapple sales vs total fruits sales by country, 2010, 2015 and 2020 projection
(Source: Euromonitor International, Fruits in US, India, China, Germany, Italy, Mexico and Australia (2016))
5
PERCENTAGE
0 2010 2015 2020 2010 2015 2020 2010 2015 2020 2010 2015 2020 2010 2015 2020 2010 2015 2020 2010 2015 2020
Consumption – International demand Costa Rica accounts for nearly 50 per cent of total world
exports of pineapple with significant growth in the Philippines
In terms of percentage of pineapple sales from total fruit
and Mexico9. Costa Rica supplied 87 per cent of Europe’s
sales (Figure 2), Australia has shown an increase from
pineapples in 201410. Examples of global pineapple related
2010 to 2015, which is expected to continue toward 2020.
businesses are:
United States and Italy are among the countries that will also
see an increase in pineapple consumption toward 2020. yy Del Monte (United States)
As Figure 2 shows, Australia is expected to rank third in yy Dole Food Company (United States)
pineapple consumption against total fruit consumption by
yy Fyffes (Costa Rica and Panama)
2020, behind Mexico and United States.
yy Chiquita.
Production systems and processes Harvested pineapples need to be stored between 12° and 15°
Celsius to avoid cold store damage which affects palatability
The pineapple industry is labour intensive and generally and therefore opportunity to market. Although growers know
reliant on casual employees during peak periods. For when a pineapple is ripe, the challenge exists in training
Australian growers to be able to compete with imported the seasonal workers. The development of a non-invasive
products, investment in automation technology needs to be maturation test would help deliver more quality fruit to the
considered to reduce the costs of production and harvest. market more consistently as pineapples must be picked
Any automation needs to be cognisant of the need to when ripe.
avoid internal flesh bruising. The skin is hard and resilient
compared to other tropical fruit such as bananas or custard Translucency, which is a function of the water movement
apples. into the spaces between cells and permits fermentation
of the juice, is also important as it leads to a water soaked
Pest and disease management is an ongoing challenge for the appearance and unpleasant flavour. This occurs under
industry with a significant allocation of research investment certain environmental conditions within six weeks of harvest.
identifying better management and integration of the Translucent fruit can be identified in the pack house through
challenges with improved crop production systems. All future the use of flotation grading protocols1.
investments into pest and disease management will face
increased scrutiny with compliance to Australian Standards Major improvements in consistency of product quality,
and assurances of regulatory impact. Environmentally continuity of supply and efficiency of production are
sustainable control measures and the industries Integrated necessary to remain competitive with imported product and
Pest and Disease Management (IPDM) plan will be other consumer items. The development of new varieties
investigated for the long-term viability of the industry. has the potential to satisfy all these requirements and is
considered essential for the continued growth of the fresh
In March 2014, Growcom11 reported that during the Reef Rescue pineapple industry 13.
Water Quality grants program for 2009 to 2013, growers
received a financial incentive to improve the efficiencies of Marketing systems and structures
their spray application systems, nutrient application equipment,
The largest suppliers of fresh pineapple are Piñata and
irrigation water efficiency, and cultivation.
Tropical Pineapples. Tropical Pineapples has 20 growers
The equipment farmers purchased included low volume providing product and four packing sheds in North, Central
spray technology, GPS systems, constant injection fertigation and South Queensland. Pineapples are sent in bins to the
equipment, mulchers and weed seeking sensing eyes for closest packing shed where they are unloaded onto the
spray rigs11. The next stage, The Reef Water Quality Program, production line. They are then sorted by colour, size and
is designed to assist farmers accelerate the adoption of BPM quality before being packed into cartons, trays or larger
in the areas of nutrients, chemicals and soils. commercial-size hexagonal cardboard bins. Pineapples are
tested for quality by assessing their internal and external
The availability of financial incentives and on-farm agronomic colour, taste, sugar content and shelf life expectancy before
training and support is being used as the model to accelerate being packed and sent to market 14.
adoption12, however, with the retirement of many agronomists
the loss of this experience represents a risk to the industry Fruit is distributed through wholesale fruit and vegetable
with really only one agronomist now active full time in the markets located in Brisbane, Newcastle, Sydney, Melbourne,
industry. Although there are study groups and field days, Adelaide and Perth.
since the takeover of Golden Circle by Heinz, the program of
The main processor of pineapples is the Kraft Heinz
on-the-job training of agronomists and sharing of information
Company which acquired Golden Circle in 20084.
across the industry has reduced. It is estimated that because
of the long growing cycle of pineapple, it takes five to 10
Operating environment
The pineapple industry
Improved pest and disease management and best practice adoption increases grower productivity, profitability
and sustainability
Pest and disease management requires ongoing investment into maintaining and improving crop production systems. The
industry currently allocates a significant amount of its R&D budget on trials, registrations and permits to ensure that they can
continue to operate. This is limiting the ability of the industry to invest in other areas of research.
The pineapple industry is looking to develop an IPDM strategy to include in their BMP plan and will be considered continuous
improvement documents to help growers increase productivity and sustainability. In conjunction with the industry’s biosecurity
plan, the guides help the grower to reduce runoff, optimise chemical and nutrient inputs and improve plant, water and soil
management and ensure that biosecurity risks are minimised. A focus on industry wide adoption of these practices will help to
minimise the impact of environmental regulation and biosecurity threats.
OUTCOME 2
Adoption of continuous improvement and automation technology increases grower productivity and profitability
The pineapple industry is labour intensive, and with the difficulty of finding suitable staff and the high cost of labour, the
industry’s ability to compete globally is reduced. The adoption of continuous improvement approaches and research into
automation technologies to increase pre-harvest and postharvest efficiencies could help the industry become more globally
competitive and increase returns to growers.
Access to reliable industry data is essential for good decision making and engagement with industry stakeholders.
The continued improvement to the collection and reporting of data from the grower level up on production, distribution
and pricing as well as biosecurity and best practice adoption, will help the industry drive change and improve productivity
and profitability.
OUTCOME 3
Product quality and consistency improves returns to growers through increased consumer demand
The marketing plan for 2016 to 2019 focuses on three areas: asset refresh, consumer engagement and cross-industry
collaboration. The plan’s objectives are to increase awareness, increase penetration in the months leading to summer and
boost the frequency of pineapple purchases.
To support marketing initiatives, it will be important to ensure that consumers have consistent access to quality pineapples.
This will require effective engagement with growers, supply chain and retailer stakeholders to identify and address issues
affecting quality and consistency.
OUTCOME 4
The attraction of new growers and retention of current growers through demonstrated profitability will lead to
industry sustainability
To support industry sustainability, training and support needs to be established for new growers and growers that are
innovative, as well as the development of viable pathways for them to enter the industry including innovative forms of grower
extension and information sharing focusing on the successes of the industry.
The retention of current growers is also paramount to ensure that the industry continues to drive industry engagement.
Demonstrated profitability will lead to greater retention and improved farm sustainability.
The retention of
current growers is also
paramount to ensure that
the industry continues
to drive industry
engagement.
OUTCOME 1 – Improved pest and disease management and best practice adoption increases grower productivity,
profitability and sustainability
1.1 Ensure that growers have continued yy Chemical use permits are maintained
access to crop management systems
yy Investigate resistant varieties
to help manage pests and disease and
include in the development of their IPDM
1.2 Minimise biosecurity risks by helping yy Identify and address grower barriers for adoption
growers adopt practices outlined in the yy Develop education tools, training and support for growers to adopt
industry’s biosecurity plan biosecurity practices
1.3 Minimise the industry’s yy Continue to support the development of an IPDM strategy
environmental impact through effective
yy Ensure continuous improvement of the BMP plans for the Australian
R&D and adoption to feed into an IPDM
pineapple industry
strategy and existing BMP approaches
yy Continue to help industry develop and adopt an IPDM strategy and the BMP plan
OUTCOME 2 – Adoption of continuous improvement and automation technology increases grower productivity
and profitability
2.1 Foster and support new pathways yy Develop awareness and training on how continuous improvement methods can
to help growers adopt continuous improve productivity and reduce waste
improvement practices yy Develop industry case studies to illustrate how continuous improvement has
successfully applied
yy Benchmarking systems to gain understanding of possible efficiencies
2.2 Improve industry understanding of yy Research feasibility of mechanised planting and harvest systems
the potential for automation yy Investigate feasibility of remote sensing/robotic technology for pest and disease
management
2.3 Continue to build on industry yy Information that is provided to growers and industry is relevant and timely
production benchmarking and supply yy Benchmarking is presented in a format that encourages growers to improve
chain data initiatives to support decision productivity
making
yy Supply chain data supports engagement with supply chain and retailer
stakeholders
OUTCOME 3 – Product quality and consistency improves returns to growers through increased consumer demand
3.1 Improve the consistency and yy Development of non-invasive quality and maturity tests Identifies gaps to improve
quality of fruit reaching the consumer the shelf life of pineapples through the supply chain
yy Identify opportunities for varietal improvements
3.2 Drive growth and demand through yy Refresh the Australian Pineapples brand
targeted marketing initiatives yy Improve consumer understanding about pineapples availability
yy Identify reasons for impulse buying behaviour
yy Conduct research and create consumer awareness of the uses of pineapple
OUTCOME 4 – The attraction of new growers and retention of current growers through demonstrated profitability will
lead to industry sustainability
4.1 Support on-going industry success yy Develop training, mentoring programs and support networks to lift technical
with a focus on attracting and agronomic and business management capability among existing and new growers
developing new growers and growers
that are innovative
The alignment of the pineapple SIP outcomes to the Hort Innovation investment priorities, and consequently, the Australian
Government’s Rural RD&E Priorities and National Science and Research Priorities is shown in Table 1.
Table 1: Pineapple SIP outcomes alignment to the Hort Innovation investment priorities
Support industry efficiency and sustainability Improved pest and disease management and best practice
adoption increases grower productivity, profitability and
sustainability
The attraction of new growers and retention of current
growers through demonstrated profitability will lead to
industry sustainability
Improve productivity of the supply chain Adoption of continuous improvement and automation
technology increases grower productivity and profitability
Drive long-term domestic and export growth Product quality and consistency improves returns to growers
through increased consumer demand
2. Increased
grower profitability
Improved Industry
pest and environmental
disease impact is 1.2 Biosecurity 3. Increased
management minimised risks are minimised returns to growers More (and
younger)
growers are
attracted to
3. Increased the industry
consumer demand
IPMD including Improved 2. Adoption of
Intermediate chemical use, is grower adoption productivity and
implemented of BMP incl. waste reduction 3.1 Improved New
outcomes
industry improvements, consistency and growers
biosecurity best including automation quality of fruit have
practices technology reaching the developed
customer capability
1.2
Chemicals
are Growers are 2.1 Growers have an improved
accessible supported to adopt understanding of options for Implementation of
and industry BMP productivity improvements evidence-based quality
included incl. biosecurity (incl. automations) and and consistency
in IPMD practices and information to support improvements and
IPMD improvement decisions marketing initiatives
Data collection
Objectives Strategies KPIs methods and sources
Improved pest 1.1 Ensure that growers have yy Effective IPDM strategies which reduce yy Grower survey/
and disease continued access to crop dependence on chemical controls Chemical use data
management management systems to help
yy Evidence of increased understanding yy R&D project
and best practice manage pests and disease and
of biosecurity risks, IPDM practices and records
adoption include in the development of
BMP approaches amongst growers
increases grower their IPDM practices yy Growcom data on
and number of growers/percentage of
productivity and compliance with
1.2 Minimise biosecurity risks by production adopting best practices
sustainability Reef Rescue Water
helping growers adopt practices yy Evidence of new R&D outcomes being Quality program
outlined in the industry’s incorporated into IPDM practices and
biosecurity plan BMP approaches
Adoption of 2.1 Foster and support new yy Evidence of a move from understanding yy Industry
continuous pathways to help growers adopt automation technologies to actual benchmarking
improvement continuous improvement practices automation options for the industry
yy Grower/industry
and automation
2.2 Research the potential yy Evidence of adoption of continuous survey
technology
improvement practices (number of
increases grower automation technologies to yy R&D project
improve productivity growers/percentage of production)
productivity and records
profitability yy Evidence of increased understanding
2.3 Continue to build on industry and uptake of industry data in decision
production benchmarking and making
supply chain data initiatives to
support decision making.
Increased 3.1 Improve the consistency yy Greater understanding of requirements yy Quality data
consumer and quality of fruit reaching the for a non-invasive quality test to be captured at
demand, product consumer developed wholesaler and
quality and retailer level
3.2 Drive growth through targeted yy Established quality benchmarks
consistency
marketing initiatives yy Percentage of increase in demand yy Retail and
increases returns
and consumer satisfaction (from consumer data
to growers
benchmarks to be established) yy R&D project
records
The attraction and 4.1 Support on-going industry yy Production and implementation of an yy Grower feedback
development of success with a focus on attracting evidence-based plan for improving from leadership/
new growers to and developing new growers and innovation and grower retention within innovation
improve industry growers that are innovative the industry activities
sustainability
yy Number of growers involved in yy R&D project
leadership/sustainability development records
events
yy Engagement and participation in grower
events by new and existing growers
Reporting
The program framework in Figure 5 is the mechanism that links Hort Innovation’s strategy and investment priorities to the
investment process through the industry SIP. SIPs assist Hort Innovation to prioritise and implement the specific industry R&D,
extension and marketing programs.
Hort Innovation will use dynamic reporting against our monitoring and evaluation framework to report on investment progress.
The contribution of investments to each industry outcome will be reported regularly, including through industry Annual Reports,
Hort Innovation’s Annual Report and Hort Innovation’s Annual Operating Plan.
Industry development
Product integrity
Corporate services
Monitoring and evaluation
Strategic drive
Defines how the fund aligns to
Hort Innovation’s five investment
priorities and 11 cross-sectoral
investment themes
Impact assessment
5
Figure 6: Economic benefit from investment in the SIP
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An independent assessment of the potential economic impacts from investment into the pineapple SIP indicated a positive return
on investment for the industry (Figure 6). The anticipated investment of $1.79 million over the next five years in R&D, extension and
marketing activities is expected to generate $7.17 million in net benefits for the industry, representing a benefit cost ratio of 4.02
times to growers and service providers along the value chain.
The assessment draws from a wide range of available data sources, and projects economic impacts over a 15-year period starting
from 2016/17. A five per cent discount rate has been applied and all values are adjusted for inflation and presented in 2016/17 dollar
terms. The assessment takes a highly conservative approach and the presented figures have been adjusted to account for risks
associated with achieving research outputs, expected adoption and impacts.
Table 3 provides a summary of the assessed impacts for each outcome identified in the SIP, the anticipated deliverables,
net economic benefits and benefit cost ratio.
Anticipated Net
Expected deliverables SIP investment benefits Benefit cost
Outcome Refer to section 3 for further details (over five years) (over 15 years) ratio
Improved pest yy Minor use program and chemical use $446,301 $1,579,050 3.54
and disease guidelines
management yy Education tools, training and support for
growers to adopt biosecurity practices
yy Development of new IPDM technologies
including education and extension
The quantified impacts associated with Outcome 1 include: The quantified impacts from Outcome 3 include:
yy Increases in yield and reductions in crops lost from greater yy Increase in consumption per capita and reductions in
access to chemicals through a minor use program for waste from new technologies to improve product quality
the industry and shelf life across the supply chain
yy Reduced impact from biosecurity threats from the use of yy Market expansion and price premiums from the
new education tools, training and support for growers to implementation of new marketing initiatives for the industry.
adopt biosecurity practices
The quantified impacts from Outcome 4 include:
yy Increase in yield and reductions in crops lost from greater
adoption of IPDM practices through the development of yy Market expansion and price premiums from the delivery
new IPDM technologies including education and extension of training, mentoring and succession planning programs
for industry. to improve technical and business management capability
for the industry
The quantified impacts from Outcome 2 include:
yy Human capital improvements from the delivery of the
yy Increase in production yields, reduction in production training and mentoring programs to improve grower skills
costs from the implementation of best practices and for the industry.
continuous improvement on-farm
yy Reductions in the cost of production from the adoption of
new automat techniques such as mechanised planting and
harvest systems, remotes sensing/robotic technology for
pests and diseases
yy Market expansion, price premiums and reductions in cost
from better decision making through the use of industry
production benchmarking and data to support operations.
The pineapple industry is characterised by challenges to Attempts to automate the industry have happened in the
obtain accurate production and quality data. Biosecurity is past including the development of prototypes. There is
a major risk with a growing unease about the likelihood of scepticism of the success of future R&D programs into
a new uncontrollable disease becoming apparent. If such automation however the industry would adopt it if the
an outbreak occurs then all funds will need to be focused research was funded from elsewhere.
on containment. However, it is essential that agronomic
APPENDIX 1: APPENDIX 2:
Process to develop this plan Consultation and validation
The process to develop the SIP was as follows: The following individuals contributed to the development of
this SIP and their contribution is greatly appreciated:
1. Strategy discussions at the inaugural SIAP meeting on
July 20, 2016 Name Industry Role
2. Vision and task identification exercises were conducted Joe Craggs Vice Chair of PMA Australia and
at a grower workshop on October 28, 2016 Tropical Pines Marketing Director
3. The context was developed through desktop research John Cranny Grower and SIAP member
and engagement with growers and researchers
between October and December 2016 Doug Jones Heinz, Grower Integration Manager
4. An industry-wide online survey was issued to gain Rachel Growcom, SIAP member
greater feedback on identified outcomes and to identify Mackenzie
any gaps in the industries requirements
Simon Newett Horticulturist, DAFF
5. The draft outcomes and strategies were validated
Stephen Pace Grower, President Australian
with one-on-one phone calls to key growers, industry
Pineapple Association, and SIAP
stakeholders and SIAP members in December 2016
member
6. The monitoring and evaluation analysis was conducted
Jodie Pedrana Hort Innovation R&D project manager
by Clear Horizons
7. The impact assessment analysis was conducted by Garth Sanewski Senior Horticulturist, DAFF
Consulting & Implementation Services (CIS).
Col Scott Agronomist, Tropical Pines
APPENDIX 3:
Logic hierarchy
Investment
Mission Australia’s horticulture Australia’s horticulture competitiveness of Australia’s
industries industries horticulture industries
The industry-specific outcomes of the SIP. The final desired result of SIP investment but may be achieved
after the SIP time-frame. SIP investment may be just one contributing factor to the achievement of these
End-of-SIP
outcomes. For example, incremental productivity, profitability and competitiveness improvements stimulated
outcomes through R&D, changes in consumer awareness, marketing campaign reach and influence and increased
recognition of Australian horticulture products.
SIP specific
Short- to medium-term changes brought about through the SIP, which will support the achievement of end-
SIP intermediate
of-SIP outcomes. For example, practice changes, adoption, changes in grower knowledge, attitudes, skills
outcomes and aspirations (KASA) and marketingreach.
What is directly delivered by the SIP (R&D, extension and marketing activities and outputs, for example,
products and services, and events and engagement) across the 11 horticulture cross-sectoral investment
SIP activities
themes: Pest and Disease Management, Crop Production, Sustainability Improvements, Novel Technologies,
and outputs Data Insights,Industry Development, Product Integrity, International Market Development, Market Access
and Trade, Domestic Market Development, Strategic Drive and Corporate Services.
Preliminary or preparatory activities that are conducted before and during SIP delivery. Includes industry
Foundational
processes, infrastructure and resources that enable the SIP to be developed and delivered. Includes SIP
activities planning, consultation, advisory meetings etc.
APPENDIX 4:
Reference documents
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