ASA Media Release
Australian Sugar Industry Alliance

18 April 2011: Sugar industry R&D to be revitalised following broadscale review

Australian sugar industry research and development is set for some revitalising changes following an industry-wide review. The review was sparked by the sheer pace of technological advances occurring world-wide as well as the need for a sustainable funding model, according to the review’s sponsors CANEGROWERS and the Australian Sugar Milling Council (ASMC).

If there is one thing the Australian sugarcane industry firmly agrees on, it is the importance of research, development and extension (RD&E) investment to secure the future of our industry, says Steve Greenwood, CANEGROWERS CEO. “Brazil is becoming a stronger competitor as it reduces costs and increases yields. Our RD&E capabilities need to keep pace with technological advances in Brazil and other sugar producing nations,” he says.

CANEGROWERS and ASMC engaged independent advisers, Port Jackson Partners Limited, who developed a final report based on extensive stakeholder consultation and a comprehensive review of the existing arrangements. The sugarcane industry is now moving quickly with the formation of a top-level group to work through the next stages of this important effort including the appointment of a project leader.

At the heart of the review has been the close consultation and involvement of BSES Limited, the Sugar Research and Development Corporation (SRDC), Sugar Research Limited (SRL) and other research and extension providers to the industry. These will remain central collaborators with the project leader to develop a robust plan and timeline for the required work for final sign-off by industry organisations.

“What we are targeting is a model which is centred on industry-agreed and driven priorities which are closely aligned with, and responsive to, evolving needs,” says ASMC CEO Dominic Nolan. “It will ensure clear direction for industry and external research bodies, which is sustainably funded and enjoys strong commitment from our growers and millers as well as governments,” he says. There is a lot of work to be done, we are really at the start of this process, and successful change will need broad industry support.

Central to the revitalised approach will be the creation of what has been coined ‘New BSES’. ‘New BSES’ will concentrate its work in centrally funded activities, including: plant breeding, molecular biology, biosecurity, farming and milling systems and extension. Importantly strategic initiatives such as the BSES/ DuPont Joint Venture which is developing new transgenic sugarcane varieties will continue. A successful outcome in this project will help keep Australia ahead of the game in the use of bio-technology in the sugarcane production system.

The importance of locally-geared research came to the fore in the review. “The new model will provide local areas and regions with the flexibility to determine the delivery of locally based advisory and other services that are scoped, managed and funded according to their local priorities, needs and circumstances,” says Nolan. Agreed, centrally funded activities will be jointly funded by growers and millers. Provision of additional services such as one-on-one extension that are not centrally funded will be negotiated locally.

The Australian Sugar industry Alliance (ASA) will provide a single point of accountability for ‘New BSES’ to industry and ensure its adequate funding. The Board of ‘New BSES’ will maintain governance responsibility for the organisation.

Over the next 12 months, the industry will have delivered a clearly articulated set of research priorities under one research plan. A three year funding commitment for ‘New BSES’ will have been agreed upon by industry – together with a monitoring and evaluation process, to ensure its ongoing sustainability. Industry will develop a clear proposal to the Australian Government regarding the merger of SRDC into the single research organisation and new governance arrangements for BSES will be introduced.

“In the long term this suite of changes is set to deliver improved profitability for growers, millers and the Australian industry alike,” says Greenwood.

Media Comment:

• Steve Greenwood CANEGROWERS CEO, 0488 721 156
• Dominic Nolan ASMC CEO, 0419 287 734
  

  More information:

  • Suzi Moore CANEGROWERS Communications, 0427 641 239