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University of Melbourne
Surveillance tools and strategies for improved control, monitoring and eradication of avian influenza in Indonesia
Project Leader
Dr Jagodina Ignjatovic
jagodai@unimelb.edu.au
Fax
(03) 9731 2366
Phone
(03) 9731 226536
Project Country
Project ID:
AH/2010/039
Start Date
01/10/2011
Reference Number
SM-200607-52536
Project Type
Bilateral
Project Status
Active
Finish Date
31/12/2014
Commissioned Organisation:
University of Melbourne, Australia
Commissioned Organisation
University of Melbourne, Faculty of Veterinary Science, Australia
Overview Collaborators
- Research Institute for Veterinary Science, Indonesia
- University of Adelaide, Australia
- Australian Animal Health Laboratory, Australia
- University of Gadjah Mada, Indonesia
- DGLAHS, Indonesia
ACIAR Research Program Manager
Dr Doug Gray
Program Areas
Overview Objectives
The aim of this project is to develop surveillance tools and strategies based on differentiation of infected and vaccinated poultry in order to improve monitoring, control and eradication of highly pathogenic avian influenza (HPAI) in Indonesia. HPAI has become endemic in Indonesia and continues to reduce poultry profitability and cause human deaths. The main tool used to alleviate these impacts in Indonesia is vaccination combined with movement control and producer education. However vaccination is constrained by the use of vaccines that are not matched to the viruses to which poultry are exposed. Improved vaccination could be achieved by detecting the presence of infection in animals that have been vaccinated. Recently, an ACIAR-supported project developed a promising new cost-effective diagnostic test to 'proof of concept' stage. This 'Differentiation of Infected from Vaccinated Animals' (DIVA) test underwent laboratory evaluations in Australia and Indonesia and will now be evaluated under field conditions in Indonesian poultry. Use of a fully validated DIVA test will provide concurrent evaluation of the effectiveness of vaccine programs and generate data to assist in the design of improved vaccination programs.
Project Budget
$1,440,128.00
Grant Report Value
$1584141.00
Grant Report Recipient
University of Melbourne
Grant Report Recipient Post Code
3030
Grant Report Finish Date
31/12/2014
Grant Report Start Date
18/08/2011
An extension of research on Indian agricultural markets and competition issues
Project Leader
Dr Scott Davenport
scott.davenport@industry.nsw.gov.au
Fax
02 6391 3650
Phone
02 6391 3629
Project Country
Project Coordinator Phone
(02) 6217 0547
0408 270337
Project ID:
ADP/2011/021
Start Date
01/05/2011
Project Coordinator Fax
(02) 6217 0501
Reference Number
JW-203003-35655
Project Type
Other
Project Status
Concluded
Finish Date
31/07/2011
Commissioned Organisation:
Industry & Investment NSW, Australia
Project Coordinator Email
hearn@aciar.gov.au
Commissioned Organisation
Industry & Investment NSW, Industry Analysis, Australia
Overview Collaborators
- La Trobe University, Australia
- University of Melbourne, Australia
- National Council of Applied Economic Research, India
- University of Exeter, UK
- Infrastructure Development and Finance Company, India
ACIAR Research Program Manager
Dr Simon Hearn
Program Areas
Project Budget
$90,000.00
Grant Report Value
$99000.00
Grant Report Recipient
Industry & Investment NSW
Grant Report Recipient Post Code
2800
Grant Report Finish Date
31/07/2011
Improving the Papua New Guinea balsa value chain to enhance smallholder livelihoods
Project Leader
Dr Lyndall Bull
lyndall.bull@anu.edu.au
Fax
02 6125 0746
Phone
02 6125 5100
Project Country
Project Coordinator Phone
0419 496 579
02 6217 0549
Project ID:
FST/2009/016
Start Date
01/05/2011
Project Coordinator Fax
02 6217 0501
Reference Number
RH-201601-54405
Project Type
Bilateral
Project Status
Active
Finish Date
30/04/2016
Commissioned Organisation:
Australian National University, Australia
Project Coordinator Email
bartlett@aciar.gov.au
Commissioned Organisation
Australian National University, Fenner School, Australia
Overview Collaborators
- Australian National University, Australia
- University of Melbourne, Australia
- University of New South Wales, Australia
- Papua New Guinea University of Technology, Papua New Guinea
- The University of Natural Resources and Environment, Papua New Guinea
- Papua New Guinea Forest Authority, Papua New Guinea
- PNG Balsa Ltd, Papua New Guinea
- Gunter Balsa, Papua New Guinea
- Coconut Products Ltd, Papua New Guinea
ACIAR Research Program Manager
Mr Tony Bartlett
Program Areas
Overview Objectives
Global demand for balsa wood products is strong and projected to continue increasing - driven by expanding markets in the energy and transport sectors. Balsa (Ochroma pyramidale) growing and processing for export is an established industry in the East New Britain (ENB) Province of Papua New Guinea. PNG is the world's second largest balsa supplier after Ecuador, with an 8% market share by volume and 6% by value. The current balsa resource is estimated to be 3500 ha, grown on a 5-7 year rotation, and this should expand to 6200 ha by 2012.
Balsa cultivation is an attractive and competitive land-use option for both large- and small-scale landowners in ENB, with few barriers to entry, and its appeal to smallholders is likely to increase as a consequence of the impact of the cocoa pod borer on smallholder cocoa production.
The aim of this project is to enhance the value, value recovery and international competitiveness of the PNG balsa industry and, by doing so, to optimise its benefits for smallholder growers. It will address the significant challenges and opportunities identified for the PNG balsa industry in an ACIAR Scoping Study. The project will comprise the following activities: 1) analysis of smallholder livelihoods, decision processes and farming systems; 2) identification and facilitation of smallholder organisation and communication strategies and structures; 3) optimising value recovery in balsa processing, including wood delivery logistics and primary and secondary processing; 4) optimising supply of improved germplasm and crop management for smallholders; 5) development of enabling systems for the certification of Papua New Guinea smallholder balsa.
Project outcomes will enable more informed advice on the outlook and options for strengthening the medium- to long-term global market position of the Papua New Guinea balsa industry.
Project Budget
$954,191.00
Grant Report Value
$1049610.00
Grant Report Recipient
Australian National University
Grant Report Recipient Post Code
0200
Grant Report Finish Date
30/04/2016
Grant Report Start Date
02/05/2011
Related issues
Related project news
Climate change meta analysis
Project Leader
Dr Snow Barlow
s.barlow@unimelb.edu.au
Fax
03 8344 5037
Phone
03 8344 5008
Project Country
Project Coordinator Phone
(02) 6217 0510
0419 427278
Project ID:
LWR/2009/040
Start Date
01/08/2009
Project Coordinator Fax
(02) 6217 0501
Reference Number
JS-202906-61504
Project Type
Other
Project Status
Concluded
Finish Date
06/10/2009
Extension Start Date
07/10/2009
Commissioned Organisation:
University of Melbourne, Australia
Project Coordinator Email
skerritt@aciar.gov.au
Commissioned Organisation
University of Melbourne, School of Land and Environment, Australia
Extension Finish Date
15/02/2010
Overview Collaborators
ACIAR Research Program Manager
Dr Mirko Stauffacher
Program Areas
Project Budget
$72,500.00
Grant Report Value
$79750.00
Grant Report Recipient
University of Melbourne
Grant Report Recipient Post Code
3010
Grant Report Finish Date
15/02/2010
Grant Report Start Date
01/08/2009
Mahogany and teak furniture: action research to improve value chain efficiency and enhance livelihoods
Project Leader
Dr Herry Purnomo
h.purnomo@cgiar.org
Fax
62 251 8622100
Phone
62 251 8622622
Project Country
Project Coordinator Phone
0419 496 579
02 6217 0549
Project ID:
FST/2007/119
Start Date
01/06/2008
Project Coordinator Fax
02 6217 0501
Reference Number
RH-202111-89983
Project Type
Multilateral
Project Status
Active
Finish Date
31/05/2013
Commissioned Organisation:
Center for International Forestry Research, Indonesia
Project Coordinator Email
bartlett@aciar.gov.au
Commissioned Organisation
Center for International Forestry Research, Indonesia
Overview Collaborators
- University of Melbourne, Australia
- Forest Research and Development Agency, Indonesia
- Bogor Agricultural University, Indonesia
- Forum Rembug Klaster, Indonesia
- District Planning and Development Agency, Indonesia
ACIAR Research Program Manager
Mr Tony Bartlett
Progress Reports (Year 1, 2, 3 etc)
Year 1:
The project began with a kick-off workshop held at the CIFOR campus on 11 - 12 August 2008 (Annex 1). The 37 participants in attendance included project partners, representatives from the Ministry of Forestry, the Ministry of Cooperatives and Small and Medium Enterprises (SME), local government agencies, Perhutani, local NGOs, the Indonesian Furniture Industry and Handicrafts Association (ASMINDO), small-scale furniture producers and other related stakeholders. During the workshop, a memorandum of understanding was signed between CIFOR, represented by Dr Bruce Campbell, and the Jepara District Government, represented by Jepara District Head, Drs Hendro Martojo (Annex 2).
A livelihood survey was undertaken to gain an overview and understanding of people's livelihood strategies in Jepara, particularly those living in areas that rely on the furniture industry. The questionnaire (Annex 3) covered data on demography, assets, and income from different sources as well as respondents' perceptions of the furniture industry. The survey commenced in October 2008 by collecting secondary data at the village, subdistrict and district levels. Findings revealed that incomes earned by furniture producers were generally higher than those of average households, while urban and semi-urban areas have varied sources of income.
A furniture workshop study aimed to determine the efficiency of small-scale furniture producers in Jepara District and identify the constraints they face. A questionnaire (Annex 4) was developed to collect data for efficiency and constraints analyses. The data collected covered workshop characteristics, production, capital, labour, inputs, growth, credit and support, constraints, marketing and networks. Findings revealed that around 30% of the workshop owners surveyed in 2005 had abandoned their businesses as a result of high input costs and low selling prices for their products. Many workshop owners were unaware of how to calculate production costs and profits, and none kept financial accounts.
An international market survey (Annex 5) identified seven main export destinations - France, the United Kingdom, Australia, the Philippines, the United States of America, Hong Kong and Spain - accounting for 91% of wooden furniture exports from Jepara. Marketing and raw material supplies were identified as the main problems facing exporters. A domestic market survey revealed a potential opportunity for Jepara's furniture industry, free from the problems caused by fluctuating exchange rates.
Project partners have produced a number of papers; the Faculty of Forestry at the Bogor Agricultural Institute (IPB), for example, produced a background paper entitled "Domestic and International Market of Indonesian Wooden Furniture" (Annex 6). Teams and individuals from the Jepara Multi-stakeholder Forum (Forum Rembug Klaster (FRK) have written their own personal stories, which provide a different perspective of Jepara's furniture from that of its real actors (Annexes 7 - 11). The Ministry of Forestry's Forest Research and Development Agency (FORDA) has produced papers relating to value chain studies.
A multi-stakeholder workshop was held in Jepara on 22 - 23 December 2008 to communicate the ongoing results of project activities to Jepara stakeholders, (Annex 12). At the request of participants during the workshop, and supported by results of the study, we facilitated the establishment of the Association of Jepara Small-scale Furniture Producers (APKJ).
To ascertain appropriate roles for APKJ and develop scenarios for more equitable power and income for sustaining both forests and the furniture industry, we carried out a value chain study. The research used ILO's Guide for Value Chain Analysis and Upgrading in identifying the nature of relations between actors within the chain. Study findings revealed finishing companies/exporters and producers to be involved in a hierarchical type of value chain governance, as indicated by vertical integration and extremely limited autonomy for making decisions at the producer level. Exporters, however, are driven by importers and global brokers, which are in directed network relationships with international retailers. Small-scale producers too are in directed network relationships with domestic brokers, as indicated by their main customers taking at least 50% of output; customers defining products and providing technical assistance; and an information imbalance. On the other hand, mechanised furniture producers are in a better position and have balanced network relations with those higher up the chain, indicated by intense information flows in both directions between producers and buyers, problem solving through negotiation, and both sides having capabilities which are hard to substitute. Four scenarios were devised to improve the furniture industry in Jepara for the benefit of small-scale producers. These were called: Collaborating Down, Moving Up, Green Product and Small-scale Association, the last of which is being implemented at the moment by small scale producers in Jepara.
On 22 December 2008, CIFOR officially launched the local Furniture Value Chain (FVC) project office, located in the Jepara Trade and Tourism Centre (JTTC) building, to facilitate research activities and stakeholder engagement. The office is an in-kind contribution from the Jepara District Government.
Program Areas
Overview Objectives
Jepara in Java has a long tradition of high-quality furniture making, coupled with ready access to high quality teak. With the adoption of environmentally and socially sound practices Jepara could be a strong competitor in international markets. But inefficiencies throughout the value chain currently result in plantation over-harvesting, leading to poor incentives for producers and misuse of resources. This project aims to improve the value chain for mahogany and teak furniture enterprises in Jepara, specifically by enhancing the structure and function of the furniture industry to benefit small-scale furniture producers, helping them and their organisations to make improvements to marketing, and monitoring changes regarding the effects and early acceptance of project innovations. Producers will benefit from project findings that identify inefficiencies of supply and define the value chains that improve efficiency and strengthen the furniture industry. The project team will also devise strategies and actions to strengthen market engagement and position, leading to enhanced value addition and capture of higher prices. Positive impacts will arise from improved value-chain efficiency, security for over 15,000 furniture enterprises (177,000 jobs) and enhanced incomes for these producers while giving them and their organisations a greater role in the value chains. The project will work in close coordination with another ACIAR-CIFOR project that focuses on improving the livelihoods of tree growers.
Project Budget
$1,012,090.00
Grant Report Value
$0.00
Grant Report Recipient
Center for International Forestry Research
Grant Report Recipient Post Code
10065
Grant Report Finish Date
31/05/2013
Grant Report Start Date
12/06/2008
Related issues
Improving added value and small medium enterprises capacity in the utilisation of plantation timber for furniture production in Jepara region
Project Leader
Dr Barbara Ozarska
bo@unimelb.edu.au
Fax
03 9250 6885
Phone
03 9250 6878
Project Country
Project Coordinator Phone
0419 496 579
02 6217 0549
Project ID:
FST/2006/117
Start Date
01/01/2009
Project Coordinator Fax
02 6217 0501
Reference Number
SB-201810-35558
Project Type
Bilateral
Project Status
Active
Finish Date
31/12/2013
Commissioned Organisation:
University of Melbourne, Australia
Project Coordinator Email
bartlett@aciar.gov.au
Commissioned Organisation
University of Melbourne, Australia
Overview Collaborators
- Department of Employment, Economic Development and Innovation, Australia
- Forest Research and Development Agency, Indonesia
- Bogor Agricultural University, Indonesia
- Gadjah Mada University, Indonesia
- Technical College of Wood Technology, Indonesia
- Center for International Forestry Research, Indonesia
- Forum Rembug Kluster, Indonesia
ACIAR Research Program Manager
Mr Tony Bartlett
Progress Reports (Year 1, 2, 3 etc)
Year 1:
Although the Project start date was 1 January 2009, delays in obtaining signed Project Agreements between the contractual parties meant that research activities of the project did not commence until the beginning of May 2009. Despite the delayed start, the project has made an impressive progress during Year 1 with active participation of all project partners.
The major activities and achievements during the first year are as follows:
1. The Project Steering Committee was formed consisting of two representatives from each partner organisation.
2. The assessment of research capabilities of each partner organisation involved in the project was undertaken to facilitate the development of networking arrangements between the project members. This knowledge and experience will be essential in ensuring the long-term sustainability of the project outcomes and will enable the participating organisations to take the role of the "value-adding experts" after the project is completed.
3. The criteria for the selection of the Industry Champions were developed by the project partners. Sixteen companies were selected as the members of the Industry Champions representing various types of sizes and models of the Jepara furniture industry and various aspects of wood processing and manufacturing. The Industry Champions will be the first beneficiaries of the project outcomes as the improvements and implementation of manufacturing methods, designs and products, will be firstly undertaken by these companies.
4. The Project Field Officer, Mrs Nurul Izza, was appointed to the project and is based at the project office in Jepara. The Field Officer is playing an important role of linking the project researchers with the Industry Champions.
5. Five teams of researchers conducted a detailed analysis of the current capabilities of the 16 Industry Champions, which included all major processing and manufacturing stages of the production process:
Sawing.
Preservative Treatment.
Drying.
Manufacturing.
Finishing.
A detailed report was prepared on each specific aspect of the production process for each Industry Champion. The individual reports were then combined into five final assessment reports: Sawmilling, Treatment, Drying, Manufacturing Process and Finishing. The reports provide details on the assessment of all aspects of processing and manufacturing processes applied by the Industry Champions, as well as provide general comments on the current industry practices and recommendations for improvements and changes. A General Assessment Report has been developed which provides the summary information on the assessment of five processing and manufacturing stages of the wood products production process without revealing any confidential information on the Industry Champions. The report will be made available to the government organizations, all industry stakeholders, NGOs and other relevant organizations.
6. Priority research projects were identified and teams of researchers to carry out the studies were formed. The projects include the study on alternative species which could be used for high value wood products, research on preservative treatment and developing drying schedules for teak and mahogany. The review of standards related to furniture products, both Indonesian and Australian standards, has commenced.
Program Areas
Overview Objectives
The furniture industry is one of the 'big four' Indonesian pillars for export (along with rubber, palm oil, and footwear). The industry relies heavily on timber as its raw material, with an annual requirement of up to 7.5 million cubic metres. Wood species used as raw material for furniture (mainly teak and mahogany) come from natural forest and plantation/community forests. Jepara in Java is particularly known for its crafted wooden furniture, and the industry there involves 15,000 companies, mostly small-medium sized enterprises (SMEs). But the furniture manufacturing processes in Jepara, as in other regions of Indonesia, are characterised by poor production management and lack of optimisation in production systems - affecting production efficiency, timber recovery rates, and quality of products while creating a significant amount of timber waste. These SMEs would capture higher value if they adopted better drying, treatment and finishing processes, and this project aims to support the Indonesian furniture industry by enhancing value-adding from plantation timber production. The project's main objectives are to increase timber recoveries and furniture quality through the improvement of processing and manufacturing methods for teak and mahogany timbers, and to explore new manufacturing technologies for new products and designs that would be competitive on international markets. As well the project will increase Indonesian timber processing research and training capacity and also monitor and analyse economic impact of improvements and innovations introduced to SMEs during the project.
Project Budget
$1,000,955.00
Grant Report Value
$1101050.00
Grant Report Recipient
University of Melbourne
Grant Report Recipient Post Code
3121
Grant Report Finish Date
31/12/2013
Grant Report Start Date
19/12/2008
Related issues
Increasing downstream value adding in Papua New Guinea's forest and wood products industry
Project Leader
Professor Peter Vinden
p.vinden@unimelb.edu.au
Fax
03 93494172
Phone
03 83445238
Project Country
Project Coordinator Phone
0419 496 579
02 6217 0549
Project ID:
FST/2006/120
Start Date
01/01/2008
Project Coordinator Fax
02 6217 0501
Reference Number
SB-201810-38168
Project Type
Bilateral
Project Status
Active
Finish Date
31/12/2010
Extension Start Date
01/07/2011
Commissioned Organisation:
University of Melbourne, Australia
Project Coordinator Email
bartlett@aciar.gov.au
Commissioned Organisation
University of Melbourne, Faculty of Land and Food Resources, Australia
Extension Finish Date
31/12/2011
Overview Collaborators
- Engineered Wood Products Association of Australasia, Australia
- Timber and Forestry Training College of the PNG University of Technology, Papua New Guinea
- PNG Forest Products Ltd, Papua New Guinea
- PNG Forest Research Institute, Papua New Guinea
- Village Development Trust, Papua New Guinea
- University of Technology, Papua New Guinea
- PNG Forest Industries Association, Papua New Guinea
ACIAR Research Program Manager
Mr Tony Bartlett
Progress Reports (Year 1, 2, 3 etc)
Year 1:
Although the Project start date was 1 January 2008, delays in obtaining signed Project Agreements between the contractual parties meant that research activities of the project did not commence until the end of May 2008.
Village Development Trust (VDT), which was included as one of the partner organisations in the Project Proposal, did not sign the agreement and withdrew from the project.
Good progress has been made in overcoming the delayed start-up of the project and the work is on track for the delivery of the planned outcomes.
The project commencement trip to PNG was undertaken by members of the project team from the University of Melbourne, in October - November 2008, when the following activities were undertaken:
Visits to PNG partner organisations to assess their facilities, discuss the project program and budget.
Visits to selected timber processing and manufacturing companies, small landowners and portable sawmills to develop an understanding of current major issues and strategic directions of PNG forestry and timber sectors.
One day intensive workshop "Project Introduction Workshop" involving all project partners and invited industry members which was organised at the PNG Timber and Forestry Training College. The workshop introduced the project program and detailed activities, and addressed wood processing and manufacturing topics, such as product design and development, portable sawmilling, wood drying, wood preservation, furniture production, OHS and product quality. The workshop allowed its participants to openly discuss the project research program as well as brainstorm various options that should be adopted in order to maximize benefits to PNG timber industry and small communities.
The formation of the Project Steering Committee. The Committee was established at the workshop to represents the interests of all interested parties.
The visits and discussions allowed development of the recommendations on enhancement of PNG education, research and training programs and improvements in forest and wood products industry. The outcomes have been presented in the Project Report No1 "Project commencement visit to PNG and recommendations on improvements in PNG downstream processing forest and wood products industry".
The Steering Group has directed researchers to meet with the Minister of Forests and his staff with the objective of discussing vision statements and recommendations so that they are consistent with the National policy. This will take place during the next planned visit to PNG.
An important part of the project is a research study undertaken by a Master's postgraduate student at the University of Melbourne, Peter Edwin, a staff member of PNG Timber and Forestry Training Centre. The objectives of this research study are:
to develop methods for assessing the PNG timber species for various wood products and wood service conditions (e.g. indoor, outdoor) under different climatic conditions (e.g. tropics, sub-tropics, and dry climate),
to carry out the laboratory tests on PNG timber species to determine their technological characteristics,
to develop protocols for testing of PNG lesser used hardwood timbers.
So far a qualitative analysis of field data was undertaken based on questionnaires, field visits and interviews with three stakeholders namely; training institutions, wood processing industries, and community - based forest resource owners. The field visits and interviews were conducted to collect data on the utilization of forest resources, the processing and manufacturing facilities and types of wood products produced for various markets. This study was conducted in Morobe and Madang provinces in PNG. The selection of timber species for testing was based on the outcomes of the survey that indicated which timber species would be in demand from both the timber millers and the forest resource owners' views. The study will have significant values to the ACIAR project and consequently to the PNG timber industry as knowledge of the species' properties will enable the determination of their potential applications and markets.
The development of a detailed program for enhanced training, education and research to support the development of wood value-added industries is in progress. A detailed inventory and technical status of research equipment available at PNG FRI has been completed. This information will enable the determination of priorities for the equipment that needs to be repaired and renovated as well as for new equipment that needs to be purchased.
PNG partners identified wood bending as the priority value-added technology to be introduced to PNG training and subsequently to the industry production methods. A research study is being carried out by Paul Aoae of TFTC with the aim of investigating the suitability of PNG timbers for wood bending. An intensive program of tuition on the fundamental and practical aspects of wood bending will be provided to Mr Aoae by the researchers at the University of Melbourne in the coming weeks.
Program Areas
Overview Objectives
PNG's forest industry, based largely on the export of logs from primary forests, is a significant contributor to the national economy. But accessible forests are rapidly being depleted, and the earnings from the logging of primary forests will dwindle over the next 10-15 years. Still, PNG enjoys some significant competitive advantages in relation to the production of timber, and it is possible to envisage a major national industry based substantially on smallholder agroforestry plantings and community-based management of secondary forests. In particular, if coupled with a significant domestic processing industry, this industry could become a much larger contributor to the national economy than the current log export industry.
The aim of this project is to provide the foundation for a more extensive and more sophisticated domestic timber processing industry in PNG - by exploring the development of various products and designs based on solid wood and veneers, by examining the potential for value chains to integrate advanced processing with production of timber in smallholder agroforestry systems and community-managed secondary forests, and by enhancing capacity in timber processing training, education and R&D.
Project Budget
$682,816.00
Grant Report Value
$751098.00
Grant Report Recipient
University of Melbourne
Grant Report Recipient Post Code
3363
Grant Report Finish Date
31/12/2011
Grant Report Start Date
22/02/2008
Related publications
Related articles
Facilitating efficient agricultural markets in India: An assessment of competition and regulatory reform requirements
Project Leader
Dr Scott Davenport
scott.davenport@industry.nsw.gov.au
Fax
02 6391 3650
Phone
02 6391 3629
Project Country
Project Coordinator Phone
(02) 6217 0547
0408 270337
Project ID:
ADP/2007/062
Start Date
01/05/2008
Project Coordinator Fax
(02) 6217 0501
Reference Number
TA-201008-87174
Project Type
Bilateral
Project Status
Concluded
Final Progress Report
The project was based on the premise that India's trade policy reforms at the border need to be complemented by 'behind-the-border' domestic reforms if government policy objectives of improved productivity, higher rural employment and incomes and enhanced food security are to be met.
This project therefore involved policy makers and academics from India, Britain and Australia in identifying an approach to agricultural policy reform in India that would enable the gains from trade reform to be shared by the farm sector. The policy reform framework identified was consistent with contemporary public policy principles whereby policy objectives are clearly linked to accepted forms of 'market failure', and the form of regulation is that which least restricts competition.
By providing a policy framework that helped to achieve more efficient markets, where commodity price signals are linked more directly to market demand, the project also made a strong contribution to putting India's agricultural sector on a pathway by which its true comparative advantage in production/cropping systems can be revealed.
The objectives of the project were to:
Document agricultural marketing and competition policy settings in India and a selection of other developing countries (Brazil, Russia, China). Emphasis was placed on identifying relevant policy objectives, policy change processes and the 'market failure' principles driving those changes, in order to facilitate debate in relation to the necessary elements of a competition policy framework that might apply in India.
Undertake a policy comparison across those same developing countries of trends in agricultural sector regulation more broadly in order to identify and assess efforts being made to facilitate farm level adjustment in response to less regulated international trading arrangements.
Using the country comparisons and an appropriate public policy framework, undertake 2-3 industry case studies which identify current policy settings and how an alternative competition policy and regulatory reform initiatives would apply. The focus of these studies was on (i) wheat in Punjab; and (ii) horticulture products in West Bengal.
Formulate a set of policy recommendations that guide the introduction of necessary competition and regulatory reforms.
The project was undertaken in two stages. Stage 1 consisted of the preparation of a report by NCAER and the NSW Department of Trade and Investment describing agricultural policy settings and reform pathways in the emerging economies of Brazil, Russia, India and China (BRICs). Stage 1 addressed objectives 1 and 2 of the project.
Stage 2 then sought to look at Indian agricultural policy settings in more detail, particularly the extent to which regulatory interventions along the supply chain were consistent with contemporary public policy principles. This was done by way of case study analysis.
Final recommendations were then made drawing on findings from the BRICs report and the case studies.
The Stage 1 BRICs Report
Based on the review of agricultural policy reform in the BRICs countries, it was found that the extent of adoption of market based reforms in emerging economies was mixed. An important finding, however, was that sectoral productivity growth was positively correlated with market-based agricultural policy reform. The review revealed a particular concern in the context of India, where the lack or agricultural policy reform is potentially a key contributing factor to declining sectoral productivity.
Preparation of the BRICs Report also provided an important early opportunity for project collaborators to jointly discuss and consider how 'market failure' principles can be used as a framework to guide government intervention and to identify policy reform opportunities.
The Stage 2 Supply Chain Case Studies
Having considered the broader trends in international agricultural policy reform within the BRICs countries, project collaborators were then well placed to consider agricultural policy reform in India in more detail.
The activities of the Food Corporation of India (FCI) and India's statutory wholesale marketing arrangements (Agricultural Produce Marketing Committees) were, on prima facie grounds, considered to be having major impacts on competition and price transmission to the farm level. The likely extent of those impacts was considered sufficient to warrant in-depth, quantitative, analysis of efficiency losses associated with FCI activities, such as their stockpiling and procurement arrangements (including minimum support prices to farmers in certain locations). The analysis also included an assessment of the appropriateness and compatibility of the FCI's various public policy objectives and identified alternative, less competition restricting, policy options for meeting those objectives.
This work was extremely powerful and influential among policy makers given it was the first such study to quantitatively demonstrate that more efficient programs could be devised to meet the FCI's food security and farm income objectives.
Agricultural Policy Reforms & Strategic Directions for India
The comparative study of the agricultural experience in the BRICs countries provides significant evidence that a range of market orientated agricultural policy reforms can lead to higher rural incomes, increased agricultural productivity and reduced poverty. Market orientated reforms, however, necessarily involve progressively decoupling agricultural assistance from farm input and output prices and the associated quantities. Significant efforts are required by government, however, to tailor such changes to the specific circumstances of each country.
A clear message from policy developments in both developed and emerging economies is that policy reform and the 'openness' of economies hold the key to productivity gains, rather than having governments attempting to 'drive' growth through subsidised agricultural input and output prices.
A related concern is the continuing focus of some governments on establishing 'growth targets' as the centrepiece of rural policy. This experience highlights the need for governments to also be ensuring that food security and rural income goals are achieved in the most efficient manner so that national resources and limited government funds can be efficiently utilised. Pursuing output and growth targets, without regard to the economic, social and environmental costs of achieving them, has been demonstrated to be a waste of national resources and ultimately incompatible with the goal of achieving food security and increasing rural incomes in a sustainable manner. Government policies must be redirected toward increasing market efficiency and correcting market failures, such as poverty alleviation.
In the case of India, given the current status of agriculture and the rural sector, the challenge is therefore to make this transition without placing in jeopardy the food and income surety of vulnerable groups including marginal and small farmers. This calls for a well thought out strategy for gradually, but not unduly slowly, transforming Indian agriculture and establishing a policy environment that can provide rural producers with the flexibility to face the challenges of a fast growing modern economy.
More generally, the focus of government needs to shift from effectively acting as a market operative, through efforts aimed at directly influencing farm prices, to one of facilitating the development of more efficient markets, with appropriately targeted safety nets and adjustment assistance.
Various studies find that:
food security can be addressed more efficiently through direct income support programs directed at the poor, than through large scale government food stockpiling and distribution which goes beyond the maintenance of stocks needed for emergency food security needs. However, where such arrangements are maintained, the potential benefits of commercialisation should be evaluated;
that farm income support delivered directly through farm input and output prices leads to unintended and inefficient resource use distortions, and by delivering most benefits to better off farmers and processors, it is not only regressive but also ineffective in targeting support to those most in need; and
once programs are in place that effectively target the poor and disadvantaged, governments need to consider whether their price stabilisation and risk management objectives can be more efficiently addressed at the farm and industry level through strategies such as production diversification, off-farm income and private marketing options such as forward contracts.
A truism is that market based policy reforms are inevitable in response to changing supply and demand conditions and the need for economies to maintain global competitiveness. Nevertheless, they are often politically sensitive and need to occur in an orderly manner that engages with key stakeholders and the broader community.
Hence there is a strong case, particularly for emerging economies, to introduce public institutions and associated regulatory review processes that enable transparent and ongoing scrutiny of agricultural policy settings, with review processes complemented by:
the regular monitoring by government of farm incomes and sectoral productivity to assess the impacts of reform; and
an ongoing program of independent public policy research aimed at enhancing the welfare and productivity dividends of the government's regulatory portfolio.
A major concern for India is that traditional forms of agricultural policy, such as the FCI, its food grain procurement arrangements, APMC markets, minimum support prices and input subsidies, have created an incentive system throughout India's food supply chains which maintains certain 'historical' production patterns, and in so doing, limits agricultural sector adjustment which would otherwise enhance sectoral incomes, productivity and food security.
The unintended impacts of these arrangements, such as their contribution to food price inflation and decelerating total factor productivity, are also now becoming more evident. They may also be acting as a disincentive to farmer participation in new programs and to private sector and foreign investment in areas such as infrastructure provision.
Importantly, they also incur significant budgetary costs that impede the capacity of government to otherwise assist farm families and communities through the introduction of new government adjustment programs.
In this context, the productivity of India's agricultural sector needs to be re-considered with a focus on total factor productivity, as defined by the relationship between inputs and outputs, rather than on 'partial' productivity measures, such as crop yields.
The current emphasis of government assistance on subsidising prices, needs to shift to focus on those forms of market failure typically associated with farming systems, such as information failure with respect to the development and adoption of new technology, credit markets and the introduction of industry and government partnership arrangements aimed at facilitating more efficient levels of investment in environmental management, food safety, biosecurity and infrastructure provision.
Given the focus of the recently constituted Competition Commission of India on ensuring fair and healthy competition in the economy to achieve efficient resource use and faster and inclusive growth and development, it follows that it has an important role in considering the application of trade practices law to agriculture as part of India's new 'agricultural policy program'. This will help ensure that the gains from reform are efficiently and equitably distributed among supply chain participants consistent with national goals. Important areas of focus will be (i) 'unconscionable conduct' and 'market power abuse', rather than on differences per se in market power between buyers and sellers, and (ii) farm level arrangements that provide for collective bargaining.
Policy Options
Recognising that policy reform is the domain of the Indian Government, the following policy options are put forward for consideration based on the project analyses:
That the Indian Government, with the Competition Commission of India, move to adopt a 'market failure' based policy framework to guide agricultural policy reform.
2. Key components of that framework include:
a transparent legislation/regulation review process, whereby agricultural regulation that significantly influences competition and food chain prices is subject to an independent, rolling, 5 year review process;
as part of a broader agricultural policy reform program, government objectives need to increasingly focus on facilitating efficient input and output markets with necessary targeted assistance and safeguards for vulnerable groups;
regular monitoring and surveying of the farm sector to enable a sound understanding of developments in farm incomes and productivity in response to the government's policy reform agenda, to be shared with key stakeholders; and
the strategic application of competition law.
3. Analysis of alternative mechanisms for meeting the current government objectives pursued through FCI operations indicates that current problems with wasteful levels of stocks and denial of food to needy consumers can be minimised by:
addressing the FCI's food security objective through the introduction of targeted programs which effectively meet those food security objectives in relation to the rural and urban poor, such as a food stamp program;
addressing the FCI's farm income objective through alternative arrangements, such as a guaranteed price deficiency payment scheme;
requiring the FCI to focus on the management of the buffer stock.
4. Given that much information already exists in relation to the adverse effects of agricultural policy involving the provision of government assistance through input and output prices, early reform priority be placed on:
improving the ability of rural labour and farm families to adopt more efficient farm practices and to move into other sectors of the economy; and
implementing an orderly transition program from currently provided input subsidies to new farm programs which focus on more appropriate measures of productivity and the market failure issues typically associated with agricultural production systems.
Finish Date
31/10/2010
Commissioned Organisation:
Industry & Investment NSW, Australia
Project Coordinator Email
hearn@aciar.gov.au
Commissioned Organisation
Industry & Investment NSW, Industry Analysis, Australia
Extension Finish Date
31/03/2011
Overview Collaborators
- La Trobe University, Australia
- Australia New Zealand School of Government, Australia
- National Council of Applied Economic Research, India
- University of Melbourne, Australia
ACIAR Research Program Manager
Dr Simon Hearn
Progress Reports (Year 1, 2, 3 etc)
Year 1:
Recent ACIAR research on trade reform and Indian agriculture found that trade policy reform must be complemented by 'behind-the-border' reforms if government objectives of improved productivity, higher rural employment and incomes and enhanced food security are to be met. Project ADP/2007/062 titled 'Facilitating Efficient Agricultural Markets in India: An Assessment of Competition and Regulatory Reform Requirements' therefore focuses on facilitating the development of agricultural policy settings which will enable Indian farmers to efficiently adjust to a less regulated marketing environment including an appropriate competition policy regime.
The project is being undertaken collaboratively between the NSW Department of Primary Industries, India's National Council of Applied Economic Research, La Trobe and Melbourne Universities and the Australia and New Zealand School of Government.
Project objectives include:
Assessing agricultural marketing and competition policy settings in a selection of high profile developing countries to identify policy objectives, policy change processes and the 'market failure' principles driving those changes.
Undertaking a policy comparison across those same developing countries of trends in agricultural sector regulation more broadly to identify and assess efforts being made to facilitate farm level adjustment. Successes and failures will be identified to evaluate the scope for lessons learnt to be applied in an Indian context.
Using the country comparisons and an appropriate public policy framework, undertake 2-3 industry case studies which examine the application of current policy settings at the industry level and how an alternative competition policy regime would apply. These will focus on wheat in Punjab and horticulture products in West Bengal.
Formulate a set of policy recommendations with options that guide the introduction of necessary competition and regulatory reforms for consideration by policy makers.
The project commenced in May 2008 and finishes in October 2010. In the reporting period to 31 May 2009, collaborators focussed on Objectives 1 and 2 involving the preparation of a report comparing agriculture policy settings in the BRICs countries of Brazil, Russia, India and China, as well as South Africa.
This involved significant information gathering, but at the same time provided the opportunity to develop a shared understanding among collaborators of relevant microeconomic reform and 'role of government' principles as they relate to pro-competition policy. It has also provided the opportunity to engage with key Indian Government agencies.
Preliminary findings from the BRICs country comparison were reported in a paper presented to the 2009 Australian Agricultural and Resource Economics Conference. Findings included that the outcomes from policy reform have been mixed in terms of their consistency with accepted microeconomic reform principles:
emphasis has often been placed on privatisation initiatives, rather than on broader regulatory reform;
direct regulation in agriculture (industrial policy) appears to have reduced government incentives to progress competition law initiatives in the agri-food chain;
similarly, direct regulation in agriculture appears likely to be reducing government incentives to consider alternative approaches to poverty and the maintenance of socially acceptable levels of farm family welfare; and
strong growth in the non-agricultural sectors in most developing countries may also be having the effect of making direct regulation and transfer payments more 'affordable' and less of a priority for reform.
Of some further concern was that reform efforts to date appear largely to represent a set of responses to economic crises and WTO pressures, and for the most part, have failed to provide a legacy of ongoing, internally-driven, policy reform processes.
The Stage 1 Report comparing agricultural policy settings in the BRICs economies will be finalised following stakeholder feedback at an 'agricultural policy reform conference' tentatively scheduled to be held in Delhi in November 2009. Professor Allan Fels AO, Dean of the Australia and New Zealand School of Government, will provide a keynote address on competition policy in developing countries.
Year 2:
Recent ACIAR research on trade reform and Indian agriculture found that trade policy reform needs to be complemented by 'behind-the-border' reforms if government objectives of improved productivity, higher rural employment and incomes and enhanced food security are to be met. Project ADP/2007/062 titled 'Facilitating Efficient Agricultural Markets in India: An Assessment of Competition and Regulatory Reform Requirements' therefore focuses on facilitating the development of agricultural policy settings which will enable Indian farmers to efficiently adjust to a less regulated marketing environment including an appropriate competition policy regime.
The project is being undertaken collaboratively between NSW Industry & Investment, India's National Council of Applied Economic Research, La Trobe, Melbourne and Exeter Universities and the Australia and New Zealand School of Government.
Project objectives include:
1. Assessing agricultural marketing and competition policy settings in a selection of high profile developing countries to identify policy objectives, policy change processes and the 'market failure' principles driving those changes.
2. Undertaking a policy comparison across those same developing countries of trends in agricultural sector regulation more broadly to identify and assess efforts being made to facilitate farm level adjustment. Successes and failures will be identified to evaluate the scope for lessons learnt to be applied in an Indian context.
3. Using the country comparisons and an appropriate public policy framework, undertake 2-3 industry case studies which examine the application of current policy settings at the industry level and how an alternative competition policy regime would apply. These will focus on wheat in Punjab and horticulture products in West Bengal.
4. Formulate a set of policy recommendations with options that guide the introduction of necessary competition and regulatory reforms for consideration by policy makers.
The project commenced in May 2008 and finishes in October 2010. In the reporting period to 31 May 2010, collaborators focussed on Objectives 1, 2 and 3.
The Mid-term project workshop in Delhi was postponed from May 2009 to 24 November 2009 due to the unforseen scheduling of the Indian national election in April 2009. The December Workshop was an important project outcome and milestone and provided the opportunity to discuss the project and its future policy reform and methodological directions with Indian Government officials, stakeholders, the Project Steering Committee and collaborators. The Workshop titled 'Achieving Food Security in India: Improving Competition, Markets and the Efficiency of Supply Chains', was a significant event for ACIAR and other project collaborators, being opened by the Australian High Commissioner, Mr Peter Varghese, and having Professor Allen Fels AO, Dean, Australia and New Zealand School of Government as Keynote Speaker and Professor Ramesh Chand, National Professor, NCAP as the Chief Guest.
The Mid-term Workshop focussed on the regulatory reform case studies being undertaken throughout 2010. The case studies focus on wheat and horticulture and involve supply chain analysis whereby regulatory restrictions on competition are being documented and subject to a 'market failure' assessment. Following discussions among project collaborators it was also decided that the regulatory supply chain assessment will also involve estimation of price correlations between farm-gate, wholesale and retail to assess the relative significance of regulatory impediments to competition.
An important Mid-term Workshop outcome was the opportunity to link the need for regulatory reform to food security and declining productivity in India agriculture which is of significant interest to Indian policy makers. The idea that regulatory reform could facilitate adjustment in a way that enables India's comparative production advantages to be better achieved as well as enhanced productivity and food security, now represents an important project theme which has created significant interest in the case study outcomes and the lessons that can be applied more broadly.
The Mid-term Workshop and interactions with the Project Steering Committee also gave rise to an unplanned project outcome in the form of the opportunity to draft a paper for inclusion in the 2010 'India Infrastructure Report' prepared by the Infrastructure Development Finance Company. The paper titled 'Is there a Role for Agricultural Offsets in Sustainable Infrastructure Development: A Preliminary Assessment of Issues', is a policy discussion paper which identifies issues associated with Indian agriculture potentially becoming a provider of carbon offsets to other greenhouse gas emitting sectors of the Indian economy. The paper is directly relevant to the broader project in that it identifies new policy settings for agriculture, such as the repositioning of input subsidies to promote carbon-based farming systems.
The Stage 1 Report comparing agricultural policy settings in the BRICs economies is currently being finalised following stakeholder feedback at the Mid-term Project Workshop in November which indicated a need to further consider the impact of agricultural policy reform on agricultural productivity in the BRICs economies. Recent World Bank reviews of agricultural policy in the BRICs economies are also being incorporated.
Program Areas
Overview Objectives
A key priority of India's agriculture sector in the medium term is to develop agricultural policy settings that enable farmers to efficiently adjust to a less regulated marketing environment. An earlier ACIAR project ADP/2002/089 'Agricultural trade liberalisation and domestic market reforms in Indian agriculture', found that trade policy reform must be complemented by 'behind-the-border' reforms if the government is to meet objectives of improved productivity, higher rural employment and incomes and enhanced food security. This project, which follows on from the earlier study, will help ensure that the gains from international and domestic market reforms translate into real income gains for Indian farmers. The project will also provide a policy framework and ongoing guidance to policy makers in India in relation to the range of available competition policy mechanisms and their application in particular circumstances.
Project Budget
$401,289.00
Grant Report Value
$441418.00
Grant Report Recipient
Industry & Investment NSW
Grant Report Recipient Post Code
2800
Grant Report Finish Date
31/03/2011
Grant Report Start Date
07/04/2008
Impacts of climate change and watershed development on whole-of-basin agricultural water security in the Krishna and Murray-Darling Basins
Project Leader
Associate Professor Hector Malano
hectormm@unimelb.edu.au
Fax
03 8344 6215
Phone
03 8344 6645
Project Country
Project ID:
LWR/2007/113
Start Date
01/04/2010
Reference Number
CR-202910-53187
Project Type
Bilateral
Project Status
Active
Finish Date
30/06/2014
Commissioned Organisation:
University of Melbourne, Australia
Commissioned Organisation
University of Melbourne, Department of Civil and Environmental Engineering, Australia
Overview Collaborators
- International Water Management Institute, India
- Indian Institute of Tropical Meteorology, India
- The Energy and Resources Institute, India
ACIAR Research Program Manager
Dr Andrew Noble
Progress Reports (Year 1, 2, 3 etc)
Year 1:
This project commenced in April 2010 and an inception workshop was held one month later in Melbourne. This workshop was attended by all the participants in the project, along with representatives of the other ACIAR cluster funded projects in India. In this workshop a detailed project plan was developed and methods for integrating the various components of this project together, both internally and externally with other related ACIAR projects were established. In addition, a project collaboration strategy was discussed that provides for the direct communication between interested parties on methodology, data sharing and publication issues.
The main aim in this project is to assess the combined impacts of watershed development and climate change adaptation strategies on the long term water security for agriculture in the Krishna river basin and compare them with the forecast of impacts and adaptation strategies in the Murray-Darling basin. This project is designed to operate at two scales - sub-basin and whole-of-basin.
Initially, an investigation of the historical changes in key climatic inputs such as temperature, relative humidity and rainfall, was undertaken in the study area. It was found that no substantial change in the southwest monsoon rainfall occurred during the last 60 years. However, over that period the number of extreme 1-day rainfall and heavy rainfall events (>70 mm/day) were found to increase significantly, while low rainfall events (2.5mm-10mm) did not show a statistically significant trend. The analysis of average annual temperature shows a significant increase (0.08 C/decade) in the Krishna basin. A similar analysis in the Murray-Darling basin shows that a temperature increases of 0.9 C since 1950.
Three climate simulations corresponding to the IPCC-SRES A1B scenario were downscaled for the period 1961-2098 using "Providing REgional Climates for Impact Studies" (PRECIS) regional climate modelling system. These simulations were based on three versions of the HadCM3 global climate model which showed realistic results for the Indian summer monsoon. These global simulation results were extracted from the program on Quantifying Uncertainty in Model Predictions (QUMP). The simulations predict a 2% to 6% rise in the rainfall by 2020 compared to the model baseline (1961-90). However, rainfall is predicted to increase further towards the middle of the century. The model also predicts a mean annual temperature rise of around 2.50 C by the mid 2080s.
Remote sensing has been used to map land use, dynamic vegetation information, surface water reservoirs and evapotranspiration. This information will be integrated into the hydrologic modelling framework in order to constrain the models' parameters, to provide inputs and to calibrate and verify model outputs. This information is collected and analyzed at two different scales -medium-resolution land use and evapotranspiration products over the whole Krishna River Basin and high-resolution products in the Musi catchment. In addition, a field experiment was conducted in the Musi catchment to measure high-quality spectral libraries using multispectral radiometers in the field. These will be combined with the satellite images to better understand the region-specific features of the crop species and their spectral characteristics.
Detailed data collection is currently being undertaken to characterise the key hydrological processes. The required variables (daily rainfall, maximum and minimum temperatures, wind speed, solar radiation and relative humidity) have been obtained from the Indian Meteorological Department stations. Collection of watershed structures and groundwater flow data is currently in progress.
The lumped hydrological model SimHYD was used to undertake a preliminary assessment of climate change and watershed development impacts on the hydrology of the region. It was found that the impacts are not spatially uniform across the basin. The development of the distributed model SWAT for the catchments is currently being undertaken.
At both central and state levels we have undertaken a mapping of the institutions and the identification of the programmes and policies on water that are currently promoted in the basin. Organograms have been developed which allowed the preparation of an initial database of various policies at the national level (including the National Water Policy and the National Water Mission) and at the State level for Maharashtra, Andhra Pradesh and Karnataka. This review forms the basis to understand the overarching framework that governs water use in the basin and to identify the relevant stakeholders at all levels in the basin. This review together with the study of socio-economic aspects and water utilisation patterns at sub-basin and basin levels were undertaken in preparation for the development of adaptation scenarios and concomitant adaptation responses.
Overall, the work undertaken in this first year of the project largely provides the basis for subsequent project activities. Once the hydrological models are built, it should also be possible to evaluate the economic activities using cost effectiveness analysis and provide a real options tool to policy makers.
Program Areas
Overview Objectives
Scientists predict that the long-term impacts of climate change and watershed development (WSD) on water security - in individual catchments and in the whole of the basins - will be severe in many river basins worldwide, including the Krishna and the Murray-Darling basins. Already the Krishna river basin is closing as a result of the combined impacts of vast irrigation developments over the past 50 years and extensive WSD programs promoted by the Indian Government. By the year 2100 some predict that India will experience a 3-5oC increase in average temperature and the Krishna basin will experience a 20% decline in precipitation. Accordingly, runoff in the Krishna basin would decline 30-50%. Thus achieving the desired level of agricultural growth will be challenging. This project will assess the potential impacts of WSD and climate change on the long-term water security for agriculture in the Krishna river basin and compare the findings with the forecast impacts and adaptation strategies in the Murray-Darling basin. The assessment will help to ascertain how well these strategies can support future food production and the concomitant effects they may have on farmer's livelihoods.
Project Budget
$1,298,988.00
Grant Report Value
$1428887.00
Grant Report Recipient
University of Melbourne
Grant Report Recipient Post Code
3052
Grant Report Finish Date
30/06/2014
Grant Report Start Date
16/02/2010
Enhancing production and marketing of maize and soybean in north-western Cambodia and production of summer crops in north-eastern Australia
Project Leader
Professor Bob Martin
bob.martin@une.edu.au
Fax
02 6773 3238
Phone
02 6773 2745
Project Country
Project ID:
ASEM/2006/130
Start Date
01/05/2008
Reference Number
KM-201018-58408
Project Type
Bilateral
Project Status
Active
Finish Date
30/04/2011
Extension Start Date
01/05/2011
Commissioned Organisation:
University of New England, Australia
Commissioned Organisation
University of New England, Faculty of Arts and Sciences, Australia
Extension Finish Date
31/12/2011
Overview Collaborators
- Industry & Investment NSW, Australia
- University of Canberra, Australia
- CSIRO Sustainable Ecosystems, Australia
- Cambodia Agricultural Research and Development Institute, Cambodia
- Maddox Jolie-Pitt Foundation, Cambodia
- CARE Cambodia, Cambodia
- Ministry of Commerce, Cambodia
- University of Melbourne, Australia
ACIAR Research Program Manager
Dr Caroline Lemerle
Progress Reports (Year 1, 2, 3 etc)
Year 1:
The project ASEM/2006/130 "Enhancing production and marketing of maize and soybean in north-western Cambodia and production of summer crops in north-eastern Australia" commenced in May 2008. The overarching aim of the project is to improve the functioning of the production - marketing system for maize and soybean in north-western Cambodia as a key to increasing cash income, sustainable growth and poverty reduction for smallholder farmers. The project will facilitate the sharing of knowledge and information at all stages of the value chain from farmer to end-user. This will deliver practical benefits including improved food security, increased income, and reduced vulnerability to disruptions for rural poor farmers. In north-western NSW, the aim is to address lack of adoption of conservation farming practices, increase summer crop diversity and to develop strategies for adaptation of farming systems to climate change.
Eight village clusters were established, four in the district of Samlaut and four in the municipality of Pailin. A total of nineteen trials of improved varieties, rhizobium inoculation of legumes and nitrogen nutrition of maize were successfully completed. The yields of maize, soybean, peanut and mungbean in experimental plots exceeded the predicted maximum yields for Cambodia and were more than double the average farmer yields. The project has identified 6 production technologies to help farmers increase crop yields. The technologies under study are improved varieties, rhizobium inoculation, nitrogen nutrition of maize, crop rotation, reduced tillage and integrated pest management.
Farmer workshops investigated key socio-economic issues related to adoption of the improved crop technologies. Village workshops were completed in December for 2 villages in each of the Pailin and Samlaut districts. The gross margin budgets from these workshops were presented to the project meeting in Battambang in February 2009. Gross margin budgets were completed for experiments in Samlaut and Pailin. Return on investment calculations were completed for inoculation and nitrogen fertiliser application to maize.
Based on case studies and interviews of farmers and middlemen, a value chain map was developed for maize in Pailin. Key on-ground issues were identified for each value chain participant (farmer, middleman, silo manager), followed by establishing a suitable case study for the project. A case study was set up in Pailin region based on CARE farmer clusters, supply chains to silo and Thai markets. By far the largest task in the first year was gathering information to map out the supply chains. It has involved extensive farmer and middlemen surveys and interviews as well as visits to observe the different supply chain activities.
A review of marketing arrangements in the Pailin area revealed that there is essentially a single buyer for upland crops in northwest Cambodia (i.e. CP Foods based in Thailand). The Northwest Agricultural Marketing Association (NAMA) was established as a marketing organization of upland crops and already its members account for about 20% of the crop in that region. NAMA will seek to develop alternative export markets as well as farmer hubs for inputs, outputs and communications. We developed a background paper on NAMA and held two participatory workshops with NAMA members to explore their issues and potential actions. In addition to this work with NAMA we are exploring the possibility to develop a strategic plan for developing farmer associations/cooperatives in the second year of the project. We are also continuing to work with the Ministry of Commerce to carry out research to support the development of the operations of NAMA and its initiative on export market development.
A SMS communication system (EMCS), developed by Dr Rob Fitzgerald, adopted the open source application Frontline SMS. Worked with the newly formed NAMA to develop the SMS Field Communication System to install a server in Pailin with particular focus on the provision of information (rated top priority by members) and the exchange and sharing of silo association price and market information. A server has also been installed with MJP in Battambang with particular emphasis on basic market information and health alerts.
Field crop manuals for maize and soybean have been compiled and are currently being translated into Khmer language. Weed and insect field guides have also been compiled and are being translated to Khmer language. These publications will be made available to PDA extension staff and other information providers. The GDA Directorate of Agricultural Extension will also use the publications as resources for production of farmer extension materials. We also plan to liaise with the Royal University of Agriculture and Agricultural Colleges to update curricula on upland crop production and marketing information.
Year 2:
ASEM/2006/130 commenced in May 2008. The overarching aim of the project is to improve the functioning of the production - marketing system for maize and soybean in north-western Cambodia as a key to increasing cash income, sustainable growth and poverty reduction for smallholder farmers. In north-western NSW, the aim is to develop strategies for adaptation of farming systems to climate variability and climate change.
Down-scaled future climate scenarios were completed for sorghum in NW NSW and APSIM simulation runs were completed for farming systems options for sorghum. Economic analysis of farmer preferences were completed and submitted for presentation/publication in the Australian Summer Grains Conference June 2010. Linear programming will be used in conjunction with @Risk to analyse the outcomes of farming systems options for adaptation to climate change.
In Cambodia, the trial and demonstration program in 2009 included improved varieties, rhizobium inoculation of legumes and nitrogen nutrition of maize. In 2009, feedback from farmers highlighted the need for trials on herbicides for weed control in maize and soybean because the cost of labour had become too great to allow for hand-weeding. The production technologies being evaluated now include: improved varieties, rhizobium inoculation, nitrogen nutrition of maize, crop rotation, reduced tillage, integrated pest management and weed management.
Farmer workshops investigated key socio-economic issues related to adoption of the improved crop technologies - the major issue in 2009 has been the increasing cost of farm labour. In June 2009 the village workshops developed partial budgets for return on investment for the application of nitrogen fertilizer to maize and inoculation of legume seeds with rhizobium. In October 2009 further partial budgets were developed for weeding of crops - hand weeding versus chemical sprays.
A review of marketing arrangements in northwest Cambodia revealed there is essentially a single buyer for upland crops in the region (CP Foods, Thailand). Thus, Professor Spriggs provided assistance to establish the Northwest Agricultural Marketing Association (NAMA) to improve the marketing arrangements in the region. NAMA is anchored by three major silos (Pailin, Kamrieng and Malai) which are important potential crop marketing hubs for inputs, outputs and communications in the region. An action plan was developed with NAMA with two components: (1) to help NAMA with export market development and (2) to help NAMA develop its vision for the future.
A SMS service was developed based on a simple, robust framework for contact dissemination which includes the potential for peer-submitted and peer-reviewed content. A prototype system was completed in January 2010, using a more modular architecture and popular open-source software solutions. Field research in February 2010 resulted in a revised focus for the system towards mapping and disseminating information about market players relevant to users. The FrontlineSMS server is being hosted at the Royal University of Phnom Penh (RUPP).
Value chain mapping has been completed including a grain trader survey in 2009.These data will add significantly to the knowledge about the farmer/grain trader relationships. A social network analysis (SNA ) was carried out to identify the key actors in the farmer/grain trader network. The main immediate opportunities to address constraints in the value chain include the creation of a farmer's association, a grain trader association and the investigation of grain storage facilities at the farmer and trader level. A farmer association has been established by the CARE Pailin team in cooperation with the local Provincial Department of Agriculture (PDA). Preliminary work has also been done to establish a grain trader (middleman) association. Planning has been in cooperation with the Pailin Department of Commerce (DoC).
The Suranaree University of Technology, Nakhon Ratchasima, North-East Thailand was identified as a source of liquid rhizobium and supplies were obtained to provide farmers with inoculants to try out in their own fields in EWS 2010. A TOT activity was developed to assist with the roll out of the technology.
An illustrated children's book "Jorani and the Green Vegetable Bugs" was published in Khmer language to teach children about integrated pest management (IPM) in upland crops. A pilot activity involved introducing the concept to school directors and teachers; development of a teacher guide; implementation in schools; celebration and public launch. The pilot was a success and further units are being considered for the Life Skills program. The concept will be presented to the MoEYS for endorsement and roll-out to primary schools in Cambodia. Negotiations are now underway to publish a Lao version of the book in collaboration with the Lao/Japanese NGO "Action with Lao Children."
Program Areas
Overview Objectives
Agriculture supports an estimated 70% of Cambodia's labour force, with increases in productivity having the potential to reduce poverty among the 56% of the rural population living below the poverty line. Crop diversification beyond rice is increasing productivity, partly in response to demand from Thailand. The relative inexperience of Cambodian farmers in growing new crops, especially maize, does present challenges, for example in declining soil fertility. Appropriate agricultural management techniques and technologies will alleviate this decline, but must be delivered with appropriate socio-economic considerations that cater for the whole-of-value chain, from farms to postharvest management. A sustainable model for maize, and farmer-ready technological packages will be developed and delivered to farmers through participatory methods that address relevant social and economic factors, across the whole value chain. In Australia the approach will be adapted to address conservation farming practices and their adoption in north-western NSW.
Project Budget
$1,201,215.00
Grant Report Value
$1321336.00
Grant Report Recipient
University of New England
Grant Report Recipient Post Code
2351
Grant Report Finish Date
31/12/2011
Grant Report Start Date
08/04/2008
