Australian Garlic Industry Strategic Plangarlicaustralia.asn.au/sites/default/files/images/AGIA Strategic... · Australian Garlic Industry Association Strategy Plan 2015-2019 Page

2015-2019

Australian Garlic Industry Association Strategy Plan 2015-2019 Page 1

Contents

Introduction.................................................................................................................................................2

Why a Strategic Plan? ......................................................................................................................2

What will the New Plan do? ...........................................................................................................2

How has the Plan been developed? .............................................................................................2

How will the Plan be implemented? ...........................................................................................3

Situational Awareness ............................................................................................................................4

The market ............................................................................................................................................4

Domestic production .........................................................................................................................4

AGIA Membership ...............................................................................................................................4

Common barriers to increased production include .............................................................4

Vision ..............................................................................................................................................................5

Mission ...........................................................................................................................................................5

AGIA Objectives ..........................................................................................................................................5

Industry SWOT Analysis .........................................................................................................................6

AGIA Strategic Plan ..................................................................................................................................7

Objective 1: Increasing Demand for Australian Garlic .......................................................8

Objective 2: Increasing Production Efficiency ..................................................................... 11

Objective 3: Ensuring an effective operating environment ........................................... 15

AGIA Investment and Action Plan ................................................................................................... 17

Strategy 1 ............................................................................................................................................ 18

Strategy 2 ............................................................................................................................................ 19

Strategy 3 ............................................................................................................................................ 20

Annex A ....................................................................................................................................................... 21

References.................................................................................................................................................. 23


Introduction

Why a Strategic Plan? This Strategic Plan has been developed by the Australian Garlic Industry Association (AGIA) in response to the many challenging issues facing the Australian garlic industry. Some of these issues are consistent with much of the Australian horticultural industry while other challenges concern only the garlic industry itself. With growing consumer interest in the unique qualities of Australian garlic the AGIA is responding to the needs of many new growers entering the market and needing support and information to get started. Exciting new technologies are developing that require ongoing assessments and implementation, many of these opportunities will ultimately assist the Australian garlic industry to remain focused and market orientated. The AGIA is a member owned organisation; established over 20 years ago by amalgamating various state based bodies to form a national voice of the Australian garlic industry. As a result of cheaper imported garlic in the late 1990’s, the AGIA and the garlic industry suffered a general decline during the early part of the new millennium. Currently there is renewed interest in Australian garlic driven by growing awareness of the health benefits and culinary values of Australian garlic. A Strategic Plan for the Australian garlic industry identifies many of the issues facing growers, and those working in the supply channel delivering quality Australian garlic to the consumer. The objective is to develop a transparent and dynamic document that identifies and in many places prioritises, how and where organisational and stakeholder resources will be allocated to ensure optimum industry development.

What will the New Plan do? The Australian Garlic Industry Strategic Plan has been developed to guide both strategic financial investment and resource allocation managed by the AGIA over the next 5 years. The plan is a dynamic document under regular review by the AGIA Board to ensure Board decisions are relevant and compatible to the expectations of the association stakeholders. Importantly, the Strategic Plan will assist the future development of a strong Australian garlic industry

How has the Plan been developed? The Strategic Plan was developed by the AGIA Board with Commonwealth funds provided through Horticulture Australia Limited (HAL). The reference document, “HAL Strategic Investment Planning Guidelines” was used extensively to map, then develop each stage of the AGIA Strategic Plan. Other horticultural industry Strategic Plans were also reviewed to assist development of specific concepts. The AGIA board undertook a series of consultations to consider the needs of growers and other industry stakeholder’s and their current and future needs. The process included

An AGIA member survey to determine the size and capacity of the domestic industry The AGIA Seminar survey results to assist in defining future directions and Input from AGIA Board members during a weekend planning meeting


How will the Plan be implemented?

This plan will be used by the AGIA Board to guide industry investment derived from internal

revenue sources and Commonwealth partnership funds over the next five years.

Through the new Commonwealth recognised industry service provider, Horticulture

Innovation Australia (HIA), the AGIA will build program partnerships for research and

development capacity based on this Strategic Plan. Resources and investment priorities will

be guided by the Action and Investment Plan, both plans will be reviewed each year and will

be the basis for guiding garlic industry development.


Situational Awareness

The market In 2010, about 1.8 million hectares was devoted to growing garlic worldwide, producing about 18 million tons (United Nations Food and Agriculture Organisation). Australians consume approximately 12,000 tons of garlic a year, and about 80 per cent of that is imported. In 2010-11 Australia imported about 10,000 tons of garlic with 8000 of these from China, 1307 from Mexico, 540 from Argentina, 299 from the US, 285 from Spain and 218 from Chile (Woodward 2014). AGIA estimates current Australian domestic garlic consumption is 15,000 ton, an increase of approximately 5% growth in sales per annum. The ratio of garlic imported from China and domestic garlic consumption established in 2010/11 corroborates current domestic consumption according to leading importers of Chinese garlic.

Domestic production A recent survey of AGIA membership has membership production at 450 ton per annum based on a mid-range tonnage yield per hectare. Australian Garlic Producers (AGP), Australia’s biggest garlic producer stated recently that the company expects to produce 1,500 ton in 2014. Further assessment of the AGIA survey suggests up to 1,000 ton may be produced annually by non-member growers, totaling approximately 3,000 tons of Australian grown garlic. Area under production is generally less than ½ Hectare, each producing up to 3 ton of garlic per annum. Garlic production on, or under ½ hectare is generally thought manageable without mechanising production and processes. Overall production area within AGIA membership is 70 hectares and all respondents indicate moderate to aggressive expansion goals in 2 and 5 year projections.

Common barriers to increased production include Fluctuations of supply and impact on price over the production cycle. Willingness to invest in high cost of machinery. Unrealistic expectation of new and beginner growers who then leave the industry.

AGIA Membership AGIA is a member owned association focused on the development and promotion of the Australian garlic industry. From a membership low three years ago the AGIA has 81 members and current growth in membership indicate a doubling of membership within 2 years. The majority of AGIA growers have less than 3 years growing experience.


Vision

Australian grown garlic — the trusted source for good health and good food.

Mission

The AGIA aims to lead the Australian garlic industry to deliver quality garlic year round.

Industry Objectives Increasing Demand for Australian Garlic

Increasing Production Efficiency

Ensuring an effective operating environment

Developing capacity for consumers to identify garlic groups and cultivars, establish a quality standard through branding and a code of practice.

Identify groups and cultivars that will extend the Australian growing season and identify optimum storage to ensure year round supply. Develop capacity to increase on farm efficiency through mechanisation and management techniques.

Capture and consolidate historical knowledge and resources to develop self-education capacity for growers.


Industry SWOT Analysis The SWOT analysis is a current snap shot compiled by the AGIA that reflects the Australian garlic industry. Industry SWOT analysis is edited to the top ranking elements, refer to Annex A for the full industry assessment.

Strengths Diversity of growing conditions. Broad range of growing areas allows us to produce over a longer period.

Increasing demand for Australian grown garlic.

Diversity of groups and cultivars.

Imported garlic sprayed/fumigated (also a threat if it ever changed).

Weakness Over production in narrow supply window.

Don’t know what we are growing ie: groups and cultivars type.

Lack of small to medium scale equipment for small to medium size growers. Lack of affordable, reliable equipment.

Under-production of Australian garlic for annual demand.

Opportunities The broader range of growing regions enables us to extend the fresh garlic season nationally.

The broad range of groups and cultivars enable extended availability of Australian Garlic.

Cold storage.

Standards of classification sizing and quality.

Marketing, opportunity to own “Australian Garlic”. To capture the high ground that we only represent.

Chart of identification of garlic group by seasons, etc.

Garlic festivals and events.

Threats Viruses brought into Australia.

Narrow garlic harvest window.

Machine sharing, disease threat.

Dumping of international garlic.

Pre ’85 to ’95 data, at risk of losing knowledge from more experienced growers.


Australian Garlic Industry

Strategic Plan


Objective 1: Increasing Demand for Australian Garlic Australian grown garlic will supply 30% of garlic consumed in Australia. Developing and maintaining consumer’s awareness of Australian garlic to initiate, then drive demand through retail sales to meet the goal. 1.1 Increase consumer awareness of Australian Garlic Creating quality information to advise consumers about garlic groups and cultivars and their use to overcome the lack of general knowledge about the natural diversity of garlic. Consumers with better information will demand choice through the domestic market place. 1.2 Define size and quality standards for industry use. Markets respond better to product consistency. A product Standard defined by industry and adopted by growers will boost market acceptance for Australian product. 1.3 Establish an industry Code of Practice As consumers are trending towards sustainable and renewable living outcomes, developing an industry Code of Practice will support a consumer’s choice of garlic to purchase.


Objective 1: Increasing Demand for Australian Garlic

Strategy

Market Development

1.1 Increase consumer awareness of Australian Garlic.

Promotion of Australian Garlic by groups and cultivars, availability and flavour.

Implement AGIA size and quality standards.

1.2 Define size and quality standards for

industry use. Provide an AGIA standard product – consistent and trusted.

Outputs Create a simple I.D. chart of common

groups and cultivars, noting flavour

and uses.

Provide a “Go Garlic” recipe book for

consumers and food industries.

Development of an AGIA size and

quality standard.

Uptake of the quality standard.

Industry Outcomes

Groups and cultivars are identifiable and availability data is current, available in a

range of formats.

A strong domestic quality reputation for Australian Garlic.

Consumers seeking by choice a trusted brand

Increase volume and value of Australian Garlic domestic sales.

New and existing markets are developed for Australian Garlic.

Co-investment by industry stakeholders in market development initiatives.

KPI’s Leading retailers having a selection of groups and cultivars at point of sale

AGIA Quality Standard adopted by at least one national food chain.

Growers producing and supplying to the standard.

Target Retailers label garlic with the garlic group name to inform consumers of the

product type.

Increase the percentage of Australian Garlic sales from 20% to 30% of all garlic

sales in Australia by 2019


Objective 1: Increasing Demand for Australian Garlic

Strategy Code of Practice (COP) 1.3 Establish a voluntary industry Code of Practice. Develop an industry Code of Practice covering key factors such as Food Safety, sustainability and business ethics

Outputs An industry code of practice for growers.

Develop web-based capabilities to register and search for products grown under

the COP.

Promotion of growers subscribing to the COP.

Industry outcomes

Increased acceptance of Australian Garlic.

Consumer preference for garlic grown under industry COP

Reduced environmental impact from garlic production.

Reduced Food Safety risk.

Effective industry response to biosecurity.

Reduced risk of industry reputational impact.

KPI’s Development of a Code of Practice by 2017.

Grower subscription and registration 2017.

> 50% of AGIA growers growing garlic under the industry Code of Practice.

Target 200 ton of garlic production is grown in accordance with the COP by 2019


Objective 2: Increasing Production Efficiency Increasing on farm and supply channel capacity to reduce expenses incurred in production will assist driving down the cost of domestic garlic. Higher cost of production and in-ability to supply garlic year round are current barriers to domestic markets for producers. Increasing efficiency through the production channel will lower those costs and effect import replacement with Australian garlic. 2.1 Creating a regional chart for planting and harvesting various groups and cultivars

Assisting growers to make informed choices about the selection of groups and cultivars and growing phases removes inefficiencies associated with trial and error.

2.2 Identify the groups and cultivars that are known to store longer in ambient and Controlled Atmosphere (CA) conditions

Developing practices to store in ambient and controlled environments so growers can deliver quality garlic year round and plan production around farm economies of scale.

2.3 Construct a pictorial (and diagram if available) reference for available machinery that is in use across the garlic industry

A knowledge base of innovative machinery solutions will provide growers with opportunities to manufacture lower cost mechanical solutions to high on farm labor costs.

2.4 Provide simple, clear and readily available information about soils, water, weeds, and pest and disease control necessary for effective garlic growth

Reducing production losses from on-farm practices is often about making the right choice at the right time and having a knowledge resource available that will deliver better on-farm yields.


Objective 2: Increasing Production Efficiency

Strategy

Production efficiency and Innovation 2.1 Creating a regional chart for planting and harvesting various groups and cultivars groups Increase production outputs with garlic groups and cultivars that can be effectively grown to extend the season across all Australian growing states.

Outputs Information on which groups and cultivars to provide to AGIA growers in different

regions for consumer preferences.

Precision application methodology for water, nutrition and chemical use

Industry Outcomes

A strong domestic and international quality reputation for Australian garlic

cloves.

Increased marketable yield per hectare and reduced cost of production per

kilogram of garlic.

Increased year round volume and value of Australian garlic sales.

Reduced environmental impact from garlic production.

KPI’s Publication of a seasonal chart.

Growers adopting prescribed cropping cycles to meet Australian market demand.

Target Increase average yield per hectare by 10% by 2016/17.


Objective 2. Increasing Production Efficiency:

Strategy

Storage and Handling Development 2.2 Identify the groups and cultivars that are known to store longer in ambient and Controlled Atmosphere (CA) conditions By 2019 quality Australian garlic is available year round particularly May through September.

Outputs Information about the ambient storage capacity of selected groups and

cultivars known for long storage clearly explaining the benefits and

drawbacks.

Post-harvest storage standards and process controls including Food

Safety to maintain freshness and meet customer requirements for an

extended period.

Industry Outcomes

A strong domestic (and international) quality reputation for

Australian grown garlic.

Proven garlic industry commitment to the Australian Garlic Quality

Standards.

Increased volume and value of Australian garlic sales (domestic and

export).

The Garlic industry effectively responds to any food safety issues that

arise from stored garlic

Improved seasonal availability of Australian garlic.

KPI’s Increased garlic availability May to September.

Reported garlic in nominated storage.

Target Increase the percentage of Australian Garlic sales from 20% to 30% of

all garlic sales in Australia by 2019


Objective 2: Increasing Production Efficiency

Strategy

Broad access to affordable and efficient production machinery.

2.3 Construct a pictorial (and diagram if available) reference for available machinery that is in use across the garlic industry. Priority areas are for cracking, sowing and harvesting, topping and tailing garlic.

Increased average yield per hectare. 2.4 Provide simple, clear and readily available information about soils, water, weeds, pest and disease control necessary for effective and sustainable garlic production. Improved land management and plant husbandry will improve total crop production

Outputs Pictorial and schematic diagrams of

garlic production machinery and

comparative data is current and

readily available to AGIA members.

Independent instructions /

information on efficient and

effective garlic growing provided to

AGIA growers.

Industry Outcomes

Increased volume and value of domestic sales and market access improvement.

Increased marketable yield per hectare and reduced cost of production per

kilogram.

Reduced environmental impact from garlic growing.

.

KPI’s Annual member surveys of machinery users to determine output and production.

Target Increase the percentage of Australian Garlic sales from 20% to 30% of all garlic sales in

Australia by 2019


Objective 3: Ensuring an effective operating environment Activities and resources that improve the understanding of garlic production and marketing throughout the entire supply channel. Innovation in the value chain and resulting efficiencies often emerges when there is an exchange of ideas, successes and failures. Generating an environment and opportunities to exchange knowledge is crucial to long term industry development and growth.

Source and preserve historic documents and industry expertise As the Australian garlic industry has and continues to develop, many documents, research papers and fact sheets are produced to benefit growers and the garlic supply chain. Identifying, collating and having the knowledge centralised and readily available will be a significant resource for all growers and other stakeholders interested in industry development.

Develop self-education capabilities through AGIA communication resources including, seminars, web based and written materials

Disseminating information through educational forums develops capacity within the stakeholder group to collate individual resources for use and sustainable management.


Objective 3: Ensuring an Effective Operating Environment

Key Strategy Areas

Information & Communication 3.1 Source and preserve historic documents and industry expertise. Keeping all AGIA members informed through effective and timely communication and extension of historical research and resources.

Capacity & Capability 3.2 Develop self-education capabilities through AGIA communication resources including, extension events, web based and written materials Supporting AGIA operations through enhanced skills via self-education for growers.

Outputs Electronic documents and expert

contact list collating historic

knowledge

Expert representative contact list

details available to AGIA

members.

Develop a web based searchable

data base.

Annual extension and educational

seminars and events.

A nationally recognised “Garlic

Day” event.

Industry Outcomes

AGIA satisfaction with historic documents/information/communication

program.

Industry enhancement through increased skills development.

Preserved historic knowledge and re-engagement with historic experts.

Accessible knowledge to growers through various media resources and

nationally focused events.

KPI’s Commission and populate a suitable online capability by 2017.

Maintaining annual industry extension events through seminars and

workshops.

Develop a nationally recognised Garlic Day.

Target Increase AGIA membership by 10% pa.

Consumer driven demand for Australian garlic.


Australian Garlic Industry

Investment and Action Plan


Strategy 1 Action Implementation 2015 2016 2017 2018 2019

Budget

1.1 Increase consumer awareness of Australian Garlic.

Collate and assess groups and cultivars (refer Strategy 2.1). Develop and publish a chart. Collate and publish recipes.

$2,000

$4,000

$10,000

1.2 Define size and quality standards for industry use. .

Consult industry to establish a size and quality standard Develop a grower’s license, subscribing to the developed standard. Seek endorsement by wholesalers, retailers and growers.

Proposed internal

resources

1.3 Establish an industry Code of Practice (COP)

Research and develop an industry COP Develop and promote an online web based look up for growers following the COP.

Proposed internal

resources


Strategy 2 Action Implementation 2015 2016 2017 2018 2019

Budget

2. I Increase sustainable yields of garlic by creating a seasonal chart for planting and harvesting.

Collate and assess groups and cultivars (refer Strategy 1.1) Document regional growing and market requirements. Support certified growers to effect the change to sustainable garlic groups and cultivars for season extensions.

Proposed internal

resources

2.2 Identify the groups and cultivars that are known to store longer in ambient and Controlled Atmosphere (CA) conditions. . .

Collate and assess groups and cultivars. (refer Strategy 1.1) Develop trial methodology. Establish a monitoring and reporting system that collects the data and verifies effectiveness of ambient and CA storage.

$2,500

2.3 Construct a pictorial (and diagram if available) reference for available machinery that is in use across the garlic industry.

Collate and assess data for inclusion on AGIA knowledge base. (Refer Strategy 3.2) Host a searchable and editable knowledge base. (Refer Strategy 3.2)

Proposed internal

resources

2.4 Provide simple, clear and readily available information about weed, pest and disease control. .

Collate relevant information. Host a searchable and editable knowledge base. (Refer Strategy 3.2)

Proposed internal

resources


Strategy 3 Action Implementation

2015 2016 2017 2018 2019 Budget

3.1 Source and preserve historic documents and industry expertise.

Scan to PDF all documents for preservation. Contact State / Federal Government departments, Universities, research bodies to collect documents and expert contact details. Facilitate effective communication between all industry stakeholders including growers, supply chain members, service providers, government and community.

N/R

3.2 Develop self-education capabilities through AGIA communication resources including, Seminars, web based and written materials.

Actively engage historic industry experts in AGIA Seminars and workshops. Develop an interactive website for knowledge base ensuring capacity for updating, editing and self-education tools. Establish a nationally recongised “Garlic Day” event.

$40,000

$10,000


Annex A Industry SWOT Analysis Legend

D Demand for Australian garlic

P Increasing production efficiency OE Ensuring an efficient operating environment

Strengths

Rating Pillar D, P, OE

Diversity of growing conditions. Broad range of growing areas allows us to produce over a longer period.

8 P

Increasing demand for Australian grown garlic. 5 D

Diversity of groups and cultivars. 2 P

Imported garlic is sprayed (a threat if it ever changed). 1 OE

Australian branding strength. OE

Enthusiasm of growers, passion. P

New organisation, so can guide where we are going. OE

Members with extensive knowledge that can be drawn on.

OE

Weaknesses

Over production in narrow supply window. 4 P

Don’t know what we are growing - groups and cultivars variety.

4 P

Lack of small to medium scale equipment for small to medium size growers. Lack of affordable reliable equipment.

3 P

Under production. 3 P

Many inexperienced growers. 2 OE

We don’t represent the whole garlic industry and don’t know what we represent, or how to contact them.

1 OE

Lack of funds. 1 OE

Huge garlic grower who will never be a member. OE

Market dominance of supermarkets. OE


Opportunities

Rating Pillar D, P, OE

The broader range of growing regions enables us to extend the fresh garlic season nationally.

3 P

The broad range of groups and cultivars enable extended availability of Australian Garlic.

2 P

Cold storage. 2 P

Standards of classification sizing and quality. 2 P

Marketing, opportunity to own “Australian Garlic”. To capture the high ground that we only represent.

2 OE

Chart of identification of seasons, etc. 2 P/D

Garlic festivals and events. 2 D

Funding other than HAL. 1 OE

Learn more about growing garlic. 1 OE

Create the Australian garlic foundation. 1 OE

Group garlics, in identification.

Garlic day.

Marketing bodies promoting products/services.

Garlic launches.

Celebrity endorsement.

Export.

D

Storage capability of different groups and cultivars.

Increased production may occur in a limited harvest supply window.

Standardisation of size and quality in the market.

Import a broader range of garlic more suitable for wider growing conditions.

P

To work with industry experts, machinery, cold storage, marketing, to open up the industry to get economies of scale.

Garlic levy.

Increase cost of imported garlic.

Harvest document for preservation, keep them engaged in the garlic industry.

Serious R&D money out there.

Garlic foundation, to provide money for research.

Full-time agronomist.

Registered seed bank.

OE

Threats Viruses brought into Australia. 5 P

Current harvest window of garlic harvest. 4 P

Machine sharing, disease threat. 2 P

Dumping of international garlic. 2 OE

Pre ’85 to ’95 data, at risk of loosing knowledge from more experienced growers.

2 OE

Research centre information, need to actively collect. 1 OE

Flooding market. 1 P

Change of government policy. 1 OE

Gold bank for transfer of knowledge.

Government cuts.

Climate change.

Market dominance of supermarkets (4). They want to commodify garlic.

OE


References Woodward P, 2014 Garlic Hyland House Publishing, Melbourne

Documents

Australian Garlic Industry Strategic Plangarlicaustralia.asn.au/sites/default/files/images/AGIA Strategic... · Australian Garlic Industry Association Strategy Plan 2015-2019 Page