Guide to Researching Agricultural Markets for Recycled ...catchmentsolutions.com.au/files/2014/11/rou-mkt-wkbook.pdf · Recycled Organics Unit Guide to Researching Agricultural Markets

Guide to Researching Agricultural Markets

for Recycled Organics Products

2007Second Edition

Step by step guide to the identification, evaluation and prioritisation of viable

agricultural market opportunities for existing and proposed

recycled organics enterprises

Recycled Organics Unit Guide to Researching Agricultural Markets for Recycled Organics Products Page 2

Recycled Organics Unit PO Box 6267 The University of New South Wales Sydney Australia 1466 Internet: http://www.recycledorganics.com Contact: Angus Campbell Copyright © Recycled Organics Unit, 2004. Second Edition. First Published, 2005. This document is and shall remain the property of the Recycled Organics Unit. The information contained in this document is provided by ROU in good faith but users should be aware that ROU is not responsible or liable for its use or application. The content is for information only. It should not be considered as any advice, warranty, or recommendation to any individual person or situation.


TABLE OF CONTENTS

EXECUTIVE SUMMARY......................................................................................................................................4 SECTION 1 ABOUT THIS REPORT .............................................................................................................5

1.1 Background ..............................................................................................................................................................5 1.2 Objectives.................................................................................................................................................................5 1.3 Scope and assumed knowledge ................................................................................................................................5 1.4 Who is the report for?...............................................................................................................................................6 1.5 How to use the report ...............................................................................................................................................7 1.6 Terminology .............................................................................................................................................................7 1.7 How to cite the report ...............................................................................................................................................7 1.8 Acknowledgement....................................................................................................................................................7

SECTION 2 BACKGROUND: RECYCLED ORGANICS MARKET STRUCTURE.......................................9 2.1 Structure of the recycled organics product market ...................................................................................................9 2.2 Existing markets in New South Wales .....................................................................................................................10 2.3 Dollar and volume markets for recycled organics products .....................................................................................11

SECTION 3 STAGE I: INITIAL IDENTIFICATION AND PRIORITISATION OF AGRICULTURE MARKETS WITH GREATEST POTENTIAL IN YOUR REGION..............................................15

3.1 Introduction ..............................................................................................................................................................15 3.2 Cost scenario for recycled organics applications......................................................................................................16 3.3 Criteria: Agriculture market viability potential ........................................................................................................18 3.4 Regional confirmation: identification of agriculture activity in the region ..............................................................26 3.5 Case study ................................................................................................................................................................29

SECTION 4 STAGE II: CONDUCT DETAILED AGRICULTURAL AND MARKET RESEARCH OF MOST PROMISING MARKET OPPORTUNITIES ....................................................................34

4.1 Introduction and purpose..........................................................................................................................................34 4.2 Accessing detailed market and agriculture information ...........................................................................................35

SECTION 5 STAGE III: AGGREGATE AND INTERPRET DATA TO CONFIRM AND QUANTIFY MARKET POTENTIAL...............................................................................................................41

5.1 Introduction ..............................................................................................................................................................41 5.2 Calculation................................................................................................................................................................41 5.3 Interpret data and identify priorities .........................................................................................................................43 5.4 Product type..............................................................................................................................................................44 5.5 Competitor analysis ..................................................................................................................................................46 5.6 Developing detailed product standards.....................................................................................................................46 5.7 Performance validation and market testing ..............................................................................................................47 5.8 Case study ................................................................................................................................................................48 5.9 More information .....................................................................................................................................................48

REFERENCES .................................................................................................................................................57 SECTION 6 APPENDICES ............................................................................................................................60

Appendix 1 Glossary....................................................................................................................................................60 Appendix 2 Abbreviations ...........................................................................................................................................63 Appendix 3 Example Farm Enterprise Budget.............................................................................................................64 Appendix 4 Example Market and Agriculture Surveys ...............................................................................................66


Background (pg 9) The recycled organics market structure

The current structure of the recycled organics product market is defined to provide a structure for identifying existing

and emerging markets for recycled organics products. An introduction to the value of dollar and volume markets is presented to assist in identifying and targeting the highest

value markets that are likely to realise significant benefits and therefore represent a viable agricultural market. This allows enterprises to quickly prioritise agricultural sectors worthy of attention.

Stage I (pg 15) Initial identification and prioritisation of agriculture markets with greatest potential in your region

This stage provides guidance on identifying and prioritising market opportunities based on gross affordability, total area of agriculture under production (in a region), and proximity or accessibility of a potential market to a composting facility.

Average costs of applying recycled organics products to various applications are provided to estimate the potential for using recycled organics products in different agricultural production systems.

This information will inform which significant agricultural activities are most able to afford and benefit from recycled organics application, and therefore which agricultural activities or sectors within the proposed region can be identified and prioritised as a potential market. Potential markets will offer the greatest capacity to benefit from the recycled organics product and will offer the greatest affordability for purchasing the products.

A case study of this method is included for reference.

Stage II (pg 34) Conduct detailed agriculture and market research of most promising market opportunities

A process for conducting detailed agricultural and market research is presented for identifying the performance

requirements and sensitivities of growers’ in the identified and prioritised agricultural market sectors. Relevant contact details and sources of information are provided to support this process.

In addition, a guideline for using surveys as a method of obtaining this information is included as well as a survey template for adaptation as required.

Stage III (pg 41) Aggregate and interpret the data to confirm and quantify market potential

This stage incorporates all the previously obtained data and research to enable the actual market potential for a

proposed region to be quantified. This is based on the defined performance requirements and priorities of the targeted agricultural market sectors and a realistic market potential demand value.

In response to these factors, the general recycled organic product type can be defined to meet the expressed needs of the market.

A case study of this method is included for reference.

Executive summary The following flow diagram provides an overview to the process of conducting research to identify, prioritise

and quantify viable agricultural markets for recycled organics products. The flow diagram is presented at the

start of each chapter to identify where you are in the process as presented in this guide.


Section 1 About this report

1.1 Background

The development of agricultural markets for recycled organics products is a primary objective of the recycled

organics industry. However a process for assessing the actual viability of different agricultural market sectors

has not previously been established. As a result evaluation and prioritisation on the basis of potential viability

has often been less than transparent or otherwise neglected. The Guide to Researching Agricultural Markets for

Recycled Organics Products has been developed to provide a step by step guide to the identification, evaluation

and prioritisation of viable agricultural market opportunities for existing and proposed recycled organics

enterprises.

1.2 Objectives

The objectives of the Guide to Researching Agricultural Markets for Recycled Organics Products are:

1. To provide a structured method for identifying and evaluating significant and viable regional agriculture

market opportunities;

2. To inform the development of a corporate marketing plan and business case viability for the establishment

and/or expansion of regional processing facilities; and

3. To inform market development for recycled organics product in various agricultural applications.

1.3 Scope and assumed knowledge

The scope of the Guide to Researching Agricultural Markets for Recycled Organics Products is for agricultural

markets only, and does not include urban or other markets. Agricultural markets include both intensive and

extensive markets and these markets are discussed in more detail in the following section. The urban and

amenity market is beyond the scope of this guide; however the scale of this existing market can be readily

established via the following process:

1. Identify outlets that currently sell products similar to those proposed.

2. Identify what products are currently available on the market (potentially direct and/or close substitutes).

3. Identify what quantities of these products are used.

4. Identify the prices for which these products are sold.

5. Identify the source (origin) of the products (e.g. are the products imported from another state).


6. Determine who buy these products and for what functional purpose are the products purchased/used.

7. If necessary conduct competitor analysis (i.e. establish information on competitors similar to that above) to

identify extent of market risk or opportunity in relation to competing products.

8. This information can help to identify existing markets and also inform market strategies for increasing

market penetration and/or reducing risks to existing market share from competitors.

By identifying what products are available and the value of these products, expansion of these markets by new

product development may occur. This development of new products could target market needs that are currently

not catered for, or improve on the qualities of currently available products, thereby creating a market opportunity

for your product. Products aimed at the urban and amenity market are supplied mainly for landscaping, local

government applications and retail nurseries. More information on the recycled organics product market is given

in the following section.

In order to use this guide effectively, some assumed knowledge of the target area is required:

The quantity and source of compostable organic materials generated in your region, including seasonal

variation in availability.

1.4 Who is the report for?

This review has been produced to assist recycled organics market development programs.

This report will be of direct interest to:

Manufacturers of recycled organics products

Marketers of recycled organics products

Government agencies

Departments of Primary Industries / Departments of Agriculture

Industry consultants


1.5 How to use the report

The report is designed to provide an easy-to-read guide with a step-by-step guide for regional facilities to

penetrate the agricultural market. An overview flow-chart of the Guide to Researching Agricultural Markets for

Recycled Organics Products process is provided at the start of each section to define the stages required and the

desired outcomes for each stage.

The report includes a background to the recycled organics industry and the current market structure. A generic

introduction to potentially viable agricultural markets is provided to guide users in identifying those markets

suitable for recycled organics application. An overview of how to undertake agricultural and market research is

detailed with relevant sources of information and methods of obtaining this data. A section is included on how to

aggregate and interpret the data achieved during the agricultural and market research process. Case studies are

included to illustrate the process and the information obtained through the documented agricultural and market

research method. References and appendices are included at the end of the report.

1.6 Terminology

Terms used throughout this guide have been officially adopted by the New South Wales Waste Boards in July

2000, and documented in the Recycled Organics Dictionary and Thesaurus: Standard Terminology for the

Recycled Organics Sector (Recycled Organics Unit, 2003b). This document can be freely downloaded from

http://www.recycledorganics.com. As an aid to comprehension, key marketing definitions for terms used in this

guide are provided in a comprehensive glossary of terms in Appendix 1.

1.7 How to cite the report

This publication should be cited in the following manner:

Recycled Organics Unit (2005). Guide to Researching Agricultural Markets for Recycled Organics Products.

Recycled Organics Unit, internet publication: www.recycledorganics.com

1.8 Acknowledgement

The Recycled Organics Unit acknowledge funding for this project provided by the Department of Environment

and Conservation (NSW).


Background The recycled organics market structure

The structure of the recycled organics product market Existing and emerging markets Dollar and volume markets

Stage I Initial identification and prioritisation of

agriculture markets with greatest potential in your region

Identify and prioritise markets using gross affordability, total area under production, proximity/accessibility to facility

How much could recycled organics application cost? Which significant agricultural activities are most able to afford and benefit from recycled organics application?

Identify and prioritise agricultural activities/sectors in your region

Stage II Conduct detailed agriculture and market research

of most promising market opportunities

Conduct detailed research to identify performance requirements and sensitivities of growers’ in prioritised agricultural market sectors

Identify relevant sources of information Access this information through contacts and surveys

Stage III Aggregate and interpret the data to confirm

and quantify market potential

Determine performance requirements and priorities of targeted agricultural market sectors

Quantify realistic market potential demand Define general recycled organics product types required

Overview of Guide to Researching Agricultural Markets for Recycled Organics Products

You are here


Section 2 Background: Recycled organics market structure

2.1 Structure of the recycled organics product market

Markets for recycled organics products have been identified and segmented, though many of the market

segments can be considered as potential and/or emerging markets. The following market structure has been

developed for the recycled organics sector and is derived from market studies prepared by NSW Waste Boards

(1999a; 1999b; 2000), Environment Australia (1999) and the Recycled Organics Unit and Central Coast Waste

Planning and Management Board (2000) (Figure 1).

Figure 1. Structure of the recycled organics products market for existing and emerging products across the sector. This market structure has been derived from the Recycled Organics Unit and Central Coast Waste Planning and Management Board (2000), NSW Waste Boards (1999a; 1999b; 2000) and Environment Australia (1999).

Recycled Organics Products Market

Compostable organic material for processing into quality recycled organics products

Urban & Amenity

Landscape Local Government Nurseries – retail Special Projects

State Government Sport, Recreation &

Leisure

Intensive Agriculture

Nurseries – production Nurseries – wholesale

Market Gardening Fruit & Orchard

Growing Cut Flowers Viticulture

Turf Grass Growing

Enviro-remediation

Contaminated Sites & Soils

Storm Water Purification Air Filtration

Extensive Agriculture

Pasture Farming Broadacre Farming Forestry Farming

Landcare

Waste to Energy Market

Low quality material for energy recovery

Rehabilitation

Landfill Cover & Rehabilitation

Erosion Control Revegetation Environmental

Restoration

Biofuels

Electricity Heating Fuels

(solid, liquid, gas)


The market structure for the recycled organics products market shown in Figure 1 consists of five individual

markets including:

intensive agriculture;

extensive agriculture;

urban amenity;

enviro-remediation; and

rehabilitation.

These markets can be segmented into sub-markets, defined as groups of potential customers with similar

characteristics who are likely to exhibit similar purchasing behaviour (Reed, 1992). In the recycled organics

products market, twenty-three (23) market segments have been identified in New South Wales (NSW Waste

Boards, 1999b; 2000).

2.2 Existing markets in New South Wales

The urban and amenity market segment is by far the largest existing market for recycled organics products in the

Greater Sydney Region (GSR). In 1998, the urban and amenity market segment comprised approximately 83%

(307,000 m3 out of a total demand of 368,000 m3) of total product demand within the GSR (Table 1). Products

manufactured and purchased by this market included: mulches, compost/soil conditioners; garden soils; top

dressing soils and potting mixes (NSW Waste Boards, 1999a). Little information is currently available on

existing markets outside the GSR.

It has been estimated that a number of sub-markets in the urban and amenity market are nearing maturity, given

that maximum demand potential is estimated to be approximately 400,000 m3 per annum (NSW Waste Boards,

1999b). However, it is estimated that significant demand still remains in the urban and amenity market for

landscaping, special projects, local government projects (NSW Waste Boards, 1999b) and government

purchasing.

The only other major user of recycled organics products is the intensive agriculture market with just under 15%

of existing recycled organics products demand in the GSR (NSW Waste Boards, 1999a).

Much work is still required in determining the performance requirements and sensitivities of sub-markets

identified in previous studies, including various agriculture sectors as potential markets. These performance

requirements and sensitivities will differ region to region with variation in agricultural practices, crops and

conditions (e.g. soils, climate, water availability, pests, and disease management priorities).


Table 1. Existing and potential demand per market segment in 1998 for the Greater Sydney Region (NSW Waste Boards, 1999b).

Existing demand (m3) 3 Additional potential Market segment

m3 / yr t / yr m3 / yr t / yr % Urban amenity 307,000 176,032 196,905 113,164 23

Bio-fuels 25,000 14,335 50,000 28,736 6

Intensive agriculture 23,000 13,188 203,322 116,852 24

Rehabilitation 6,000 3,440 233,000 133,908 28

Export 1 5,000 2,867 5,000 2,874 1

Extensive agriculture 2,000 1,147 53,500 30,747 6

Enviro-remediation 2 0 0 100,000 57,471 12

TOTAL 368,000 211,009 841,727 483,751 100 1 This market segment was not considered in the market structure proposed by the Recycled Organics Unit and Central Coast Waste Planning and Management Board (2000). 2 This market segment has previously been referred to as the Bio-remediation market segment (NSW Waste Boards, 1999a; 1999b). It is now referred to as the Enviro-remediation segment (NSW Waste Boards, 2000). 3 Does not include approximately 40,000 tonnes per year of internal (on-site) re-use.

2.3 Dollar and volume markets for recycled organics products

An important business objective for an organics processing enterprise is to maximise returns for products sold,

whilst avoiding inventory problems associated with excess stockpiles of product. This objective forms the basis

of recycled organics market development in regions with organics processing facilities. In the United States, it

has been shown that the development of recycled organics product markets around every major city has occurred

in two distinct stages:

(a) Markets that are considered to be ‘dollar’ or ‘high value’ markets tend to be developed first, followed by

(b) Lower value high ‘volume’ markets (Tyler, 1996).

Organics processing enterprises are usually located on the fringe of urban areas. Local, high-value or ‘dollar’

markets tend to be exploited first, and this has largely been responsible for the development of the urban and

amenity market in New South Wales. It can be argued that most products for the urban and amenity market

developed to date are relatively generic and have less specific performance requirements than are likely to be

required in other identified sub-markets.

Volume markets, on the other hand, exist at greater distances from urban centres, and transport costs and in some

instances product application costs, tend to be significant. These lower margin markets historically develop after

dollar markets have been exploited in urban areas (Tyler, 1996). Volume markets develop later as they have a

lower capacity to pay for recycled organics products (e.g. broad acre farming market segment). Prices of

recycled organics products in such areas can be prohibitive due to significant haulage costs and lower consumer

affordability. Demonstration of cost / benefit advantages to these markets is important to justify the purchase

costs. The increased farm gate product value resulting from increased haulage costs and grower affordability,

have been identified as major barriers to the development of volume markets for products generated in urban


areas in New South Wales (Waste Enquiry, 2000; Recycled Organics Unit and Central Coast Waste Planning

and Management Board, 2000).

Collectively, the high value markets (e.g. mainly urban and amenity) represent the majority of the revenue

potential of all markets currently being accessed by manufacturers of recycled organics in New South Wales.

This has also occurred in many states within the USA, though at some point, natural market development based

on maximisation of profits ends and “subsidised” markets take over (Tyler, 1996).

Use of recycled organics products in agricultural markets can directly and indirectly contribute to addressing

serious land degradation issues – in the form of dryland salinity and sodicity, soil acidification, soil erosion, soil

nutrient decline and weed invasion – responsible for over $700 million a year in lost agricultural production in

New South Wales (NSW Agriculture, 1995a). Such products have been successfully used in reversing land

degradation, though cost/benefit data has not been produced to allow producers to include such data into their

farming production models (Recycled Organics Unit and Central Coast Waste Planning and Management Board,

2000).

In the instance that cost/benefit data is made available for the use of recycled organics products in agricultural

markets, price and affordability can still remain a significant barrier to market development. To overcome this,

demand ‘pull’ market development strategies (including introductory market penetration pricing) for accessing

agricultural markets have been created in the USA and elsewhere, in some jurisdictions stimulated by

government incentive schemes (Tyler, 1996).

Identifying and targeting the highest value markets that are likely to realise significant agricultural (and

environmental) benefit provides the best opportunity for establishing viable agricultural markets. Section 5.4

(Table 14) provides a framework for identifying potential performance benefits that can be provided by various

recycled organics products, and therefore prioritised as product attributes for facilities producing recycled

organics products.

This guide provides a stepwise method to identify regional agricultural markets with the greatest capacity to

benefit from and afford to purchase recycled organics products. This is, accessible volume markets with the

highest dollar value.

Note that an updated market study is due to be released in October 2004:

Department of Environment and Conservation New South Wales

(2004). Analysis of Markets for Recycled Organics Products: Update

Report 2004. Internal report: http://www.environment.nsw.gov.au.


Plate 1. Intensive agriculture demonstration site in Peats Ridge, New South Wales. Composted soil conditioner product was applied and incorporated at a prescribed rate to improve growth and yield of cabbages. The intensive agricultural market segment is identified as having significant demand potential for recycled organics products (NSW Waste Boards, 2000). For performance data on this trial, refer to the report Recycled Organics In Intensive Agriculture: Volume 4 - Market Gardening. A Review of Recycled Organics Product Application Field Trials in Market Gardening in Australia (Recycled Organics Unit, 2004c).


















You are here


Section 3 Stage I: Initial identification and prioritisation of agriculture markets with greatest potential in your region

3.1 Introduction

Commercial facilities involved with the manufacturing and marketing of recycled organic products in New

South Wales are mostly small to medium sized enterprises. Although the urban and amenity market segment

may be approaching maturity, previous research has shown that the overall recycled organics market is

positioned early on the market development cycle, indicating that there is significant potential for expansion

(NSW Waste Boards, 2000; Recycled Organics Unit, 2002c).

In order to identify whether an agricultural market is potentially viable for recycled organics product application,

an investigation of the agricultural market is required. On the most basic level, it is necessary to ensure that a

farmer or grower can afford to buy the product before market entry is even attempted. In some cases, a farmer or

grower will not have a high enough gross margin to consider recycled organics product application (unless a

financial incentive scheme is in place).

A gross margin is the gross income from an enterprise less the variable costs associated with its production.

Variable costs are those costs directly attributed to an enterprise and which vary in proportion to the size of

the enterprise and management techniques used. Note the gross margin is not gross profit because it does not

include fixed or overhead costs such as depreciation, interest payments, rates and permanent labour that have

to be met irrespective of enterprise size.

Therefore, the steps to determine whether a regional agricultural market is potentially viable for recycled

organics product application are:

1. Estimate the cost of the product application. How much product is required (per unit area of application),

what is the cost of product, transport and application?

2. Evaluate and prioritise potential agricultural market viability criteria. What is the gross margin for the

farmer / grower in this region, is the crop a high value crop, what is the total area available for potential

application in the region, what are the potential benefits of product application?

3. Consultation with relevant stakeholders to determine regional priorities and determine whether your

product can meet objectives and affordability of growers. Direct consultation with market stakeholders in

the region to identify performance priorities and sensitivities, confirm whether (and how) recycled organic

product application can be beneficial and affordable for your region.


3.2 Cost scenario for recycled organics applications

Determining which potential market can best afford to purchase recycled organics is a preliminary step in

identifying viable markets. Some growers may only be able to afford to progressively apply recycled organics

(which may last 3 – 5 years for a composted mulch) to only a proportion of a property each year. Where a

grower simply cannot afford the costs of purchase and application of your product regardless of the benefits,

further investigation into this potential market may be pointless.

The viability of recycled organics product application into agricultural markets is dependent on the type and

amount of product required by the grower to cover the target area in order to achieve performance requirements

over an acceptable time period, and the cost of purchasing the product including transport and application (e.g.

via a compost spreader). Table 3 gives a range of generic costs for recycled organics purchase and application

and also some comparisons between mass, volume and application area. These costs and comparisons can be

used to estimate a cost scenario that a grower might encounter when considering purchase of recycled organics

for application on their farm.

Table 3. Generic comparisons, application rates and costs for recycled organics product application in agriculture.

Comparisons1

Product quantity (mass per area):

Soil conditioner 0.9 tonne / ha ≈ 1 m3 / ha

Mulches 1 tonne / ha ≈ 2 m3 / ha

Mass per area relationship to application rate

Broadcast soil conditioner 50 m3 / 10,000 m2 ≈ 5 mm application rate

50 m3 / ha ≈ 5 mm application rate

Mulch along orchard or vine rows (@250 linear metres of row / ha) 113 m3 / ha ≈ 75 mm deep x 600 mm wide layer

application along rows

Common application rates2

Fields (soil conditioner) ≈ 28 - 56 m3 per hectare

Orchards (mulch) ≈ 100 m3 per hectare

Vineyards (mulch) ≈ 100 m3 per hectare

Costs3

Products (cost at farm gate depending on transport distance and quantity ordered)

Mulch Up to 200 km transport ≈ $ 20 – 30 / m3

Soil conditioner Up to 200 km transport ≈ $ 25 – 35 / m3

Application (spreading material)

Contract spreader ≈ $ 4 – 7 / m3

1 These values are based on wet tonnes (as the product is shipped from the facility). 2 common application rates are presented for purpose of estimating cost/ha, these are not presented as optimum rates either for performance or value. 3 Range in price is likely to represent variation in product quality.

General physical and chemical properties of composted products are given in Table 4. These composted product

properties have been derived from commercially available mature compost products produced by commercial

facilities with quality assurance procedures that comply with Australian Standard AS 4454 (Standards Australia,

2003) for composts, soil conditioners and mulches. Product characteristics vary depending upon the

characteristics of the raw materials and the technology used in processing. Raw materials, selection, shredding


and product screening technologies enable the production of products with characteristics that will better meet

grower requirements.

An example of a cost scenario for the application of composted mulch to a vineyard is given below. Conversion

and cost values are from Table 3 and generic physical and chemical properties are shown in Table 4.

It is clear from the above example that there are significant costs involved for farmers or growers to apply

recycled organics products in agriculture systems. Assessment of the potential viability of an agricultural market

and identification of general product requirements is a necessary step in planning organics processing facilities,

selecting processing technologies and investing resources into detailed market research and development of a

strategy for penetrating this market. Assessment of the potential viability in terms of farm affordability at a basic

level is essential.

Table 4. Physical and chemical properties of a commercially produced composted soil conditioner and composted mulch (Source: Australian Native Landscapes; Natural Recovery Systems; Soilco).

PRODUCT TYPE Property Units Composted soil

conditioner Composted mulch

Particle grading mm 0 – 15 15 – 35

pH - 6.5 – 8.0 5.5 – 7.5

Electrical Conductivity (EC) dS/m 1.0 – 3.5 1.2 – 2.0

Bulk density kg/m3 750 – 950 480 – 540

Moisture content % 40 20 – 25

Water holding capacity % 50 – 60 10 – 20

Organic matter % dry matter 55 – 75 75 – 95

Total Nitrogen (N) % dry matter 0.6 – 2.0 0.2 – 0.8

Total Phosphorus (P) % dry matter 0.1 – 0.9 0.1 – 0.3

Total Potassium (K) % dry matter 0.1 – 0.3 0.1 – 0.2

Total Calcium (Ca) % dry matter 0.3 – 0.9 0.1 – 0.4

Total Magnesium (Mg) % dry matter 0.08 – 0.1 0.08 – 0.1 Note that the characteristics of composted mulches as shown here are representative of mulches produced from municipal garden organics material. The characteristics for composted soil conditioner are representative of products that have been produced from garden organics materials co-composted with either food organics or biosolids materials.

Example: A grower wishes to apply a 75 mm deep by 600 mm wide layer of mulch

along vine rows in his vineyard. The vine rows are laid out at around 2500 linear

metres of vine row per hectare. At this application rate, 1 m3 of mulch will cover 22.2

linear metres of vine row, and an application of 113 m3 per hectare of composted

mulch is required. If the product costs $20-30 per m3 to purchase (including transport

costs) and $4-7 per m3 for application, then the total cost scenario for the farmer is

between $2,712 to $4,181 per hectare for purchase and application of this composted

mulch product. Note that spacing between and along rows can vary greatly from farm

to farm, and even on the same property.


3.3 Criteria: Agriculture market viability potential

Different agricultural sectors produce a range of products, for example vegetable production, orchards and cereal

cropping. Vegetable, fruit, meat, grain, oil and fibre products are produced and exported from the rural sector for

consumption in urban and metropolitan areas. Productivity is sustained through the management of finite soil

reserves, with the use of fertiliser, water and other inputs. Return of organic resources, particularly nutrients and

organic matter, back to agricultural soils is vital if the very serious issue of widespread land degradation and

losses in farm productivity are to be addressed in New South Wales (Recycled Organics Unit, 2003a).

Use of available recycled organic products in agriculture provides an opportunity to reduce fertiliser use,

promote soil remediation, improve ecological integrity and biological diversity, and avoid pollution. In this

context, composting processes should be recognised for their potential to convert organic materials into compost

products that can make a significant contribution to resolving some of the problems facing agricultural and

environmental management sectors in New South Wales (Recycled Organics Unit, 2003a).

In order to determine whether a particular regional agricultural market would be suitable for recycled organics

product application, it is necessary to firstly evaluate the current production system and context. This evaluation

involves determining the impacts of agricultural production systems on soils and landscape, the land area under

cultivation, the value of the crop, and gross margins for the particular agricultural sector. Potential of recycled

organics product application for different agricultural production systems will be dependent on a range of

factors.

In order to evaluate the potential viability of a various agricultural market segment, the following factors need to

be considered depending on a number of criteria and units of measurement. Criteria 1, 2 and 3 are considered in

Stage 1: Initial Identification and Prioritisation of Potentially Viable and Significant Agricultural Markets in

your Region; criteria 4 and 5 are considered in Stage 2: Detailed Agricultural and Market Research Method.

1. Gross potential affordability. The overall potential affordability of the particular agriculture/horticulture

sector at an enterprise level in terms of cost of production per hectare and crop value per hectare is

documented in various farm enterprise budget studies as gross margin per hectare (for irrigated and non-

irrigated crops);

2. Area under cultivation. The total area under production in the region, calculated in hectares (for irrigated

and non-irrigated crops);

3. Proximity / accessibility to compost facility. Volume markets should be close enough to be realistically

accessible in terms of transport costs. At an enterprise level, there are additional considerations including

existing product range and production capabilities, transport distance and opportunities for backloading to

offset associated transport costs. However, as this project intends to identify opportunities for establishment

of new regional facilities and opportunities for the entire existing industry, these issues are not addressed in

detail in this report. Close proximity of composting facilities to agricultural application sites reduces

transport costs of recycled organics products to agricultural application sites.


4. Value to agricultural production. Recycled organics products have the potential to provide a range of

agricultural production benefits including: reduced risk of crop failure, increased farm revenue, reduced cost

of farm management (through reduction in other production inputs) and increased farm capital value (through

improving or sustaining soil productivity). These potential benefits will vary across regional and agricultural

sector management systems, and are specific to each of the priority target market segments (agriculture

systems) identified in Stage 1 (see also column 4 in Table 14);

5. Environmental value. Studies have shown the agricultural application of recycled organics products to

contribute to the avoidance and reversal of land degradation and to a wide range of environmental benefits

which go beyond the farm gate and are shared by the NSW community at large (Recycled Organics Unit,

2003a). Whilst these environmental services are of value to the community, the cost of achieving these

environmental services should not be born by the grower alone and can relate strongly to the erosion

potential of the soil (see also column 5 in Table 14).

3.3.1 Guidance table for key agriculture / horticulture sectors

A summary of the main agricultural crops in New South Wales are shown in Tables 5, 6 and 7 as well as

evaluation criteria and general potential for recycled organics product application. These tables should be used as

a guide to indicate what crops may offer the greatest viability for targeting as potential recycled organics product

markets in your surrounding region; and those crops that are unsuitable due to fundamental lack of affordability.

Information is aggregated and provided on a state-wide basis. Equivalent data specific to your region is readily

available.

Such information specific to your region should be determined for the highest value production systems in your

region. Agricultural sectors in your region can be prioritised as potential markets on the basis of likely

affordability, scale and proximity or accessibility to the facility. A guide to obtaining this regional information is

given in Section 3.4.

Note: Australian Bureau of Statistics data and farm budget studies do not distinguish between “conventional”

and any type of “organic” farming or certified organic production systems. Therefore, readers should consider

that each agriculture sector shown includes organic production in that sector.


Table 5. Proposed recycled organics product application for various agricultural production systems and the market potential for this application based on criteria for the current situation (Source: Farm Enterprise Budget, 2001/2002, NSW Agriculture; Farm Budget by Department of Primary Industry (Qld); Australian Bureau of Statistics, 2001; Recycled Organics Unit, 2003a).

CURRENT SITUATION Agricultural practice Criteria Unit of measure

RO market potential 2

Affordability Gross margin: 700 – 1,500 $/ha (irrigated) 100 – 350 $/ha (dryland) High value crop under irrigated conditions, rising world prices

Area (NSW) 334,000 (total) 268,000 ha (irrigated)

Environmental value High impact on soil and landscape, depreciation of soil organic matter at high rates. Low irrigation efficiency with salinity and sodicity trends

Fibre crops (cotton)

Value to agricultural production

High input system due to land cultivation, products exposed to further processing

POTENTIAL for SOIL

CONDITIONER application

Affordability Gross margin: 100 – 800 $/ha Low value crop Area (NSW) 4,543,000 ha (total) 294,000 ha (irrigated)

Environmental value Significant impacts on soils and landscape Cereals

Value to agricultural production

Low input system, availability of crop residuals from stubble retention

MARGINAL potential for SOIL CONDITIONER

application

Affordability Gross margin: 100 – 600 $/ha Low value crop

Area (NSW) 773,000 ha (total) 1

Environmental value Mostly included in crop rotations with cereals

Oil crops and legumes

Value to agricultural production Low input substitution, availability of crop residuals

MARGINAL potential for SOIL CONDITIONER

application


Area (NSW) 6,400,000 ha (total) 265,000 ha (irrigated)

Environmental value Have significant levels of organic matter if managed Generally used as a part of any crop rotation

Pasture and grasses

Value to agricultural production Low input substitution, high levels of organic matter if managed

NO potential for

recycled organics application


Area (NSW) 20,000 ha (total) 0 ha (irrigated)

Environmental value High impact on soils and landscape Sugarcane

Value to agricultural production High input, perennial crop

NO potential for

recycled organics application

Affordability Gross margin: 6,000 – 14,000 $/ha High value crop

Area (NSW) 32,269 ha (total) 25,000 ha (irrigated)

Environmental value Prone to soil erosion Chemical weed control and irrigation inefficiencies

Grapes

Value to agricultural production Low input

POTENTIAL for MULCH application

Affordability Varies (see Table 6)

Area (NSW) 46,982 ha (total) 22,545 ha (irrigated)

Environmental value Potential for minimising soil erosion in orchards (Jenkins, 1999b). Improvement to soil structure, nutrient holding capacity and organic matter content (Jenkins, 1999a).

All fruit and orchards (excluding grapes)

Input substitution Low input, inter-row ryegrass/clover cropping and mulching practice

POTENTIAL for SOIL

CONDITIONER or MULCH application

(see Table 6)

Affordability Varies (see Table 7)

Area (NSW) 23,281 ha (total) ~14,000 ha (irrigated) 1

Environmental value Potential for minimising soil erosion Soils can be degraded due to repeated cultivation

All vegetables

Value to agricultural production Mid to high input, continuous cultivation and high fertiliser use

POTENTIAL for SOIL

CONDITIONER or MULCH application

(see Table 7)

1 Data for irrigated areas on a crop-by-crop basis is not available for the entire state but may be available for regional areas. 2 Market potential at commercial prices. NOTE: This information is generalised for the entire state of NSW and should only be used as a guide. Figures can vary significantly from region to regions for the same production system and crop.


Table 6. Proposed recycled organics product application for fruit and orchard applications (excluding grapes) and the market potential for this application based on criteria for the current situation (Source: Farm Enterprise Budget, 2001/2002, NSW Agriculture; Farm Budget by Department of Primary Industry (Qld); Australian Bureau of Statistics, 2001).

AFFORDABILITY AREA Fruit and orchard applications

Gross margin

irrigated ($/ha)

Crop value

Total (ha)

Planting density 1 (trees/ha)

Total number of

trees

Total number of trees or hectares for each type of

fruit or nut


Apple 2,196,031

Pear 38,045 Pome fruit 15,098 (apples 2) High 2,520 894

(apples) 2,253,124

Nashi 13,803

Trees

Medium to high

Orange 3,914,238

Mandarin 202,501

Lemon & Lime 159,823

Grapefruit 90,014

Citrus -771

to 6,231

High 8,778

to 6,096

500 – 720 4,389,029

Others 22,453

Trees

Low to medium

Peach 986,366 Olive 785,965

Cherry 768,097 Nectarine 725,708

Plum 419,892 Prune 375,952

Apricot 49,216

Stone fruit 1,858

to 21,133

High 8,244

to 4,122

500 – 1,000 4,122,415

Other 11,219

Trees

Low to high

Avocado 186,625 Other orchard fruit

8,617 (avocados) High 481 500 240,382

Mango 53,757

Trees

Low to medium

Macadamia 1,857,201

Pecan 119,190

Almond 69,546 Nuts

3,509 (macadamias, non-irrigated)

High 6,840 312 2,134,101

Other 88,164

Trees

Low

Blueberry 414

Strawberry 41 Berries 21,928

(strawberries SE Qld 3)

High 481 n/a n/a

Raspberry 26

ha Low to high

Banana 2,738

Kiwi fruit 75

Pawpaw 7 Tropical fruit

-1,091 to

1,074 (bananas,

non-irrigated)

Low 2,821 n/a n/a

Pineapple 1

ha Low

1 Total area covered by fruit trees was not available and has been calculated using total number of trees divided by planting density used in gross margin budgets. 2 Pome fruits include apples and pears; however pears are not a significant crop for New South Wales so this data is based on apples only. Gross margin budget for apples was at draft stage at time of writing. 3 Gross margin budgets for strawberries used in this report have been developed for south-east Queensland. 4 Market potential at commercial prices. NOTE: This information is generalised for the entire state of NSW and should only be used as a guide. Figures can vary significantly from region to regions for the same production system and crop.


Table 7. Proposed recycled organics product application for vegetable applications and the market potential for this application based on criteria for the current situation (Source: Farm Enterprise Budget, 2001/2002, NSW Agriculture; Farm Budget by Department of Primary Industry (Qld); Australian Bureau of Statistics, 2001).

AFFORDABILITY AREA Vegetable applications Gross margin

($/ha) Crop value Total (ha)

Total number of hectares for each type of vegetable


Lettuce 1,046

Cabbage 461

Chinese cabbage 117 Parsley 51 Celery 15

Leafy vegetables

1,400 to

2,700 High 1,701

Brussels Sprouts 11

ha

Low to medium

Sweet corn 3,508

Pumpkins, triambles, trombones 1,753

Melons 1,628 Tomatoes 1,626

Cucumber 506 Marrows, squashes, zucchini 249

Capsicum, chillies, peppers 85

Fruiting vegetables

1,150 to

5,3001 High 9,392

Swedes 37

ha

Medium to high

Beans 575

Green peas 206 Legumes n.d. n.d. 815

Snow peas 34

ha Low 3

Carrots 1,032

Beetroot 69 Root vegetables

400 to

1,400 High 1,136

Parsnips 35

ha

Low to medium

Onions 1,046 Bulb

900 to

3,200 High 1,109

Leek 63

ha

Low to medium

Tuber 200 to

4,6002 High 6,852 Potatoes 6,852

ha Low to high

Broccoli 757

Other 710

Cauliflower 486

Asparagus 284

Other 1,350

to 2,400

High 2,276

Mushrooms 39

ha

Low to medium

1 Tomatoes account for this high gross margin for this group (up to 5,300 $/ha) and also cover a significant area of production (1,626 ha) in New South Wales (NSW Agriculture, 2001). 2 Potatoes grown for processing can result in a higher gross margin (up to 20 times higher) than potatoes grown for fresh produce (NSW Agriculture, 2001). 3 Legumes require only a small initial nitrogen fertiliser application as they provide sufficient nitrogen to the soil through atmospheric nitrogen fixation. 4 Market potential at commercial prices. NOTE: This information is generalised for the entire state of NSW and should only be used as a guide. Figures can vary significantly from region to regions for the same production system and crop.


3.3.2 Cotton production

The cotton growing areas of New South Wales are scattered between the Queensland border and Lachlan Valley.

Up to 80% of the total area under cotton is irrigated. Little or no crop residue is returned to the soils under

irrigated cotton, although some measures have been recently taken in this regard.

Cotton has a poor tolerance of waterlogging, and therefore soils for cotton production require good porosity.

Such porous soils result in increased infiltration and internal drainage rates and allow adequate water entry to

encourage root exploration and adequate aeration after irrigation and rainfall (NSW Agriculture, 1998). The

alluvial soil types black earths, and the better structured grey and brown clays with their extensive cracking,

enable vigorous root growth and provide favourable conditions (NSW Agriculture, 1998).

Most cotton growing areas in Australia are dominated by clay soil (black earths and grey and brown clays).

Cracking clay soils are resilient and regenerate their structure by shrinking and swelling: a phenomenon called

“self mulching” which occurs due to high smectite content; while alluvial soils maintain the soil structure due to

high organic matter content (NSW Agriculture, 1998). In the Macquarie Valley, and to a lesser extent in the

Namoi and Gwydir Valleys, cotton is grown on red brown earth soils (NSW Agriculture, 1998). Red brown

earths are difficult to repair due to structural decline and limited inherent capacity to regenerate and these soils

commonly develop hard setting surfaces and saline and sodic conditions.

The application of recycled organics such as a composted soil conditioner to red brown earth soils under

irrigated cotton cultivation has highest potential to be beneficial to this agricultural production system and help

reduce the problems of structural decline, soil compaction, salinity and sodicity that are common to all cotton

growing soils. Recycled Organics Unit (2003a) identified that the soil incorporation of 12 tonnes per hectare per

year of composted soil conditioner to broad-acre agriculture cotton production systems would result in

significant benefits for this agricultural practice. The main criteria for prioritising cotton production for the

application of recycled organics products were the high value of the cotton crop and a high gross margin.

3.3.3 Grape production

Grapes are grown throughout the state of New South Wales from Moree to Dayton, Tenterfield to Tumbarumba,

and Port Macquarie to Mudgee (Anthony Somers, District Horticulturist, DPI Agriculture, Tocal). The total area

occupied by viticulture in New South Wales is approximately 34,559 hectares, which includes grapes planted

after the 2000 harvest that were not fruit bearing at the time of survey (Australian Bureau of Statistics, 2001).

Grapevines perform best in terms of fruit, productivity and ease of management on red soils. The ideal soil is red

loam to clay loam, over well-structured red clay, but any well-drained subsoil is suitable (NSW Agriculture,

1995b).

Composted mulches are widely used in viticulture production systems in South Australia. Numerous recent

studies have identified viticulture production in the intensive agriculture sector as having high demand potential

for application of composted mulches (Recycled Organics Unit, 2002c), and increasing use of composts in the

viticulture sector is currently a key priority for the sector. Recycled Organics Unit (2003a) identified that surface


application of up to 10 cm deep and 50 cm wide (equivalent to approximately 75 tonnes per ha) of composted

mulch every 3 years would be beneficial to intensive agriculture grapevine production systems.

Previous studies have identified viticulture as having the greatest market potential for recycled organics products

in intensive agriculture (NSW Waste Boards, 1999b). The main criteria for prioritising grape production systems

for the application of recycled organics products were that grapes are a high value crop with a high gross margin.

3.3.4 Fruit and orchard production

Production of orchard fruit, nuts, and tropical fruits in New South Wales takes place over an area of 46,500 ha

with almost half of this production occurring under irrigated conditions (Australian Bureau of Statistics, 2001).

The use of recycled organic products for fruit and orchard production in New South Wales is considered a

potential market and indeed already represents a current market in some regions.

Mulching is widely considered good practice in orchard management and the potential benefits of composted

mulch application to orchards, such as weed suppression, moisture retention and fertiliser efficiency, are

measurable. Potential benefits to tree health and production in terms of improved fruit quantity and quality may

also be realised. Many orchards grow cover crops as mulch. Using composted mulch or a combination of

composted mulch and cover crops will reduce competition from cover crops for soil moisture and nutrients.

Composted mulch also suppresses weeds, which is important during early growth stages when establishing new

orchard plantings. In warm to hot districts with comparatively low rainfall where sod culture (growing of ground

cover consisting mainly of leguminous plants) may not be successful due to shortage of soil moisture, mulches

can be successfully used (Recycled Organics Unit, 2004b).

The application of recycled organics products on agricultural land has the potential to increase soil organic

matter and improve soil structure. This is particularly valuable for orchards established on low fertility soils.

Improvement in soil structure addresses a range of important soil degradation problems in New South Wales

such as surface crusting, poor water infiltration, erosion and sodicity. The improvement in soil structure has the

potential to reduce soil management activities thereby reducing farm management costs and increasing land and

farm productivity. All fruit orchards will improve soil value through the application of recycled organics

products, particularly fruit orchards grown on low organic matter soils (Recycled Organics Unit, 2004b).

Recycled organics products, when applied as surface mulch, suppress weeds and reduce water evaporation from

the soil surface. These benefits can potentially reduce farm management costs by reducing the use of herbicides

for weed suppression, reducing plant stress, and reducing volume of water for irrigation. Recycled organics

products have the potential to suppress some diseases and hence the potential to reduce the use of other farm

chemicals such as biocides used for disease control. In addition, recycled organics products have the potential to

improve soil structure and reduce soil management (Recycled Organics Unit, 2004b).

Most orchards will have a potential to reduce the use of irrigation water, fertilisers, herbicides, and possibly

biocides with the use of composted mulch products. Orchards in warmer climates and areas where irrigation

water availability is limited are likely to benefit more in terms of increased soil moisture and/or reduced


irrigation water requirements and therefore may receive greater benefit in terms of input substitution and

productivity from the application of composted mulches (Recycled Organics Unit, 2004b).

3.3.5 Vegetable production

The production of vegetables in New South Wales takes place over an area of 23,000 ha with 60% of this

production occurring under irrigated conditions (Australian Bureau of Statistics, 2001). A number of states in the

United States and European Union have recently restricted the use of animal manures for direct application to

land for production of vegetable crops due to human health risks of pathogen transfer to fresh produce. This may

increased the potential for recycled organics products to be used as soil conditioners in vegetable farming

(Recycled Organics Unit, 2002a), however, affordability and land tenure issues remain significant barriers.

The continuous working of land used for vegetable production results in a loss of soil organic matter. This loss

can impact the quality of the soil and result in soil structure decline, land degradation and loss of soil

productivity. The incorporation of organic matter into soil through the application of recycled organics products

releases nutrients steadily over time and these nutrients become available for the growth of vegetables. Organic

matter from mature recycled organics products decomposes slowly and integrates with the mineral component of

the soil thereby improving conditions such as soil moisture and structure and enhancing soil productivity.

Increased soil moisture retention leads to reduced use of water for irrigation and hence water conservation. In

addition, the use of recycled organics can suppress pest and diseases. Increased soil organic matter increases the

cation exchange capacity of soil, improving nutrient retention, and reducing nutrients leaching into the

surrounding environment, particularly in lighter soils. This results in reduced (or avoided) chemical use,

therefore reducing negative environmental impacts of farming and potentially assisting with the conversion to

organic production systems (Recycled Organics Unit, 2004c).

Evaluation of the areas and affordability of vegetable production in New South Wales indicates that fruiting

vegetables offer the highest potential for recycled organics application. Tomatoes in particular, are grown over a

large area and offer a significant gross margin indicating a high potential for affordability and application of

recycled organics products. In addition, potatoes grown for processing offer a high gross margin and

affordability whilst leafy vegetables, bulbs and other vegetables including broccoli and cauliflower indicate low

to medium market potential for recycled organics application.


3.4 Regional confirmation: identification of agriculture activity in the region

This section identified sources of data relevant to your region. Data presented in the previous tables is

aggregated data for all of New South Wales. It is important data relevant to your specific region for decision

making.

Gross margins for the same agricultural crop can vary wildly, for example the gross margin for stone fruit is

reported by growers as varying between $1,858/ha and $21,133/ha. In one region, stone fruit production may

represent the primary market opportunity in agriculture on the basis of area under cultivation and high gross

margin. In another region, scale of production and grow margin may indicate fundamental lack of demand

potential.

The first step in this process is to identifying and prioritising potential agricultural markets in your region, which

are then assessed in significantly greater detail in the next section. Only data that is directly relevant to your

region can support this process.

In order to confirm the type and range of agricultural activities in your region and assess their relative demand

potential, a range of relevant departments and organisations can provide directly useful information. A regional

enquiry must be conducted to identify the actual agricultural activities and information relevant to potential

demand for recycled organics in the specific regions. The sources of data we have found useful are provided

below:

Department of Primary Industries Agriculture (formerly NSW Agriculture).

o Stage I: Farm enterprise budgets. A range of farm enterprise budgets specific to certain crops is

available to access for free from www.agric.nsw.gov.au. These provide gross margins and identify

proportional expenditure or various production inputs and farm management tasks.

o Stage II. Additionally, the district agronomist or horticulturalist may be able to provide detailed

information on the types of crops grown, crop productivity, crop requirements, key pests and disease

issues, soil types etc.

Australian Bureau of Statistics (ABS).

o Stage I: Area under production in each LGA. The ABS has a large quantity of statistical information

on areas of agricultural activity on a state and national basis. Area under certain crops and quantities

produced are also available at www.abs.gov.au. Search the ABS website for Agriculture under the

‘AusStats’ publications by category. Particularly useful publications include:

Australian Bureau of Statistics (1998). Agriculture New South Wales

7113.1: 1996 - 1997. Australian Bureau of Statistics, October, 2001.


Australian Bureau of Statistics (2001). Agriculture Australia 7113.0:

1999 - 2000. Australian Bureau of Statistics, October, 2001.

Australian Bureau of Agricultural and Resource Economics (ABARE).

o Stage I: ABARE provide a range of economic research information for agricultural commodities and

industry analysis for the major agricultural industries. Information is available from

www.abare.gov.au.

Rural Industries Research and Development Corporation (RIRDC).

o Stage I: Farm enterprise budgets: RIRDC manages and funds research and may provide farm

enterprise budgets specific to certain crops and industries. Information is available from

www.rirdc.gov.au.

o Stage 2. Additionally, RIRDC may be able to provide industry development priority/strategy papers,

production manuals etc.

Co-operative Research Centres (CRCs).

o Stage I: Farm enterprise budgets: CRCs may provide farm enterprise budgets specific to certain crops

and industries.

o Stage 2. Additionally, some CRCs may be able to provide industry development priority/strategy

papers, production manuals etc.

State or regional grower organisations.

o Contacts for these organisations can be identified through the NSW Farmers Association of

Department of Primary Industries (NSW Agriculture) district agronomists or horticulturalists.

3.4.1 Regional template specific for your region

The following template is provided for you to summarise the relevant information for your region and make an

initial determination and prioritisation of the potential market viability of the agricultural industries for the

application of recycled organics products.

The process of gathering relevant information as discussed in this section is supported by an example case study

following the table.

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3.5 Case study

An example of the type and range of data that can be obtained from these sources is provided in the following

case study for fruit and orchards grown in New South Wales, Case Study 1: Stone Fruit in the Murrumbidgee

Region as a Potential Market for Recycled Organics.

More information on fruit and orchard production as a potential market for recycled organics application can be

found in the Recycled Organics Unit publication, Compost Product Standards for Orchard Production in New

South Wales (Recycled Organics Unit, 2004a).


Case Study 1: Stone Fruit in the Murrumbidgee Region as a

Potential Market for Recycled Organics

A composting enterprise located in the Murrumbidgee region of New South

Wales identifies that stone fruit production may represent a potentially viable

market for their recycled organic mulch products. Generic information on stone

fruit (Table 6) identifies stone fruit as a high value crop with wide ranging

reported gross margins. Further investigation of the specific targeted region is

required.

Identify area under production

The composting enterprise needs to quantify the total area under stone fruit

production for the selected Murrumbidgee region. The total area under

cultivation or production for all fruit crops in New South Wales was obtained

from the Australian Bureau of Statistics and is shown in Table 9. Note that area

under cultivation for most fruit types was not available in total hectares under

production but rather as a total number of trees.

Area under production is calculated from the total number of trees in the area

(ABS data) divided by the per hectare planting density of each fruit type (farm

enterprise budgets). Planting densities can vary for the same fruit type and for

different regions, varieties and management systems.

Table 9 shows that there is a significant area of fruit orchards under production

in the Murrumbidgee region, and that the majority is irrigated. Validity of ABS

data is confirmed with direct consultation with the district horticulturalist from

DPI (Agriculture).

Table 9. Area under production of all fruit orchards in relevant New South Wales regions (Australian Bureau of Statistics, 2001).

Irrigated Statistical division

Total area under agricultural

production (ha) Area (ha) Percentage of total area under production

Murrumbidgee 13,420 10,184 76%

A breakdown of the specific stone fruit trees under cultivation for your specified

region can also be obtained to identify which stone fruits are the main types

grown in the region. The breakdown of stone fruit under production for the

Murrumbidgee region is shown in Table 10 and the area under cultivation for

each type is shown in Table 11.

This case study for stone

fruit in the Murrumbidgee

region gives an overview of

the process required to

confirm the viability of an

identified agricultural

activity in a specific region.

The process involves

accumulation of data and

consultation with relevant

sources such as the

Department of Primary

Industries (Agriculture) and

the Australian Bureau of

Statistics.

The result allows a facility

to confirm whether or not

an identified region and

crop type represents a

viable market for recycled

organics application.


Table 10. Number of stone fruit trees in the Murrumbidgee area. Note numbers in brackets represent percentage of fruit plantation to the total plantation of each fruit type (Australian Bureau of Statistics, 2001).

Total number of trees Region

Peach Nectarine Cherry Plum Prune Olive

Murrumbidgee 571,895 (58) 323,882 (45) 44,108 (6) 38,721 (9) 182,434 (49) 16,712 (2)

Griffith 135,629 (14) 7,132 (1) - 15,544 (4) 128,821 (34) -

Carrathool - - 25,000 (3) - - -

Tumut 318,525 (32) 218,463 (30) 11,508 (2) 1,799 (<1) - -

Wagga Wagga 90,000 (9) 90,000 (12) - 17,194 (4) - -

Table 11. Area of stone fruit trees in the Murrumbidgee area (Australian Bureau of Statistics, 2001).

Total area under cultivation (ha) Region

Peach Nectarine Cherry Plum Prune Olive

Murrumbidgee 794 450 63 54 253 67

Griffith - - 36 - - -

Carrathool 188 10 - 22 179 -

Tumut 442 303 16 - - -

Wagga Wagga 125 125 - 24 - 54 Note: total area under cultivation may not be available but can be calculated using total number of trees divided by planting density used in gross margin budgets.

Establish gross margins for significant scale agriculture systems

Once an agricultural activity has been identified as representing a significant area of production (in hectares), the

affordability of recycled organics products in this agricultural sector needs to be quantified in your region to

assess the financial viability as a buyer of recycled organics products. Gross margin budgets for agricultural

sectors provide a relative indication of affordability potential for different agriculture sectors.

The enterprise contacts the Department of Primary Industries (NSW Agriculture) and/or research organisations

for the target agriculture sector to access “farm enterprise budgets”. These should contain information on gross

margin budgets for stone fruit on a region by region basis. Information available for the Murrumbidgee region

(Tumut) is shown in Table 12. These gross margins suggest a relatively high affordability potential to purchase

recycled organics products.

Table 12. Gross margin budgets for stone fruit per hectare for Tumut (Murrumbidgee region) of New South Wales (NSW Agriculture, 1999).

Location Enterprise Description Gross Margins ($/ha)

Tumut High chill stone fruit Peaches and Nectarines

Planting density (trees/ha): 1000 Palmette Hedgerow 11,374.81

Tumut High chill stone fruit Peaches and Nectarines

Planting density (trees/ha): 556 Open Vase Training System

10,464.61


Prioritise for detailed evaluation

All the information obtained from the relevant sources should be collated to form a summary for the region as

shown in Table 13. This summary displays all the relevant information and enables relative prioritisation of

different agriculture sectors in your region for potential market viability for recycled organics. This example

shows that peaches and nectarines grown in the Murrumbidgee region (Tumut) represent a potential market in

terms of affordability, scale and access for use of recycled organics products.

Table 13. Summary of evaluation criteria for stone fruit in the Murrumbidgee region.

Criteria for identification of viable regional crop types Crop

Area under cultivation in NSW (ha)

Gross margin ($/ha)

Proximity/ accessibility to composting facility

Ranking by viability potential

Peaches & nectarines 1250 10,464 to 11,374 Yes 1 (Medium to high)

Plums and prunes 300 n/a Yes 2 (Not known)

Note: n/a, not available

Similar data on growing plums and prunes may indicate relatively higher or lower market potential (or not) for

recycled organics application in the Murrumbidgee region. Sufficient information is not available during this

preliminary investigation to assess the actual viability of this potential market, nor to quantify realistic market

potential.

The combination of significant area under production in the local region and relatively high affordability

potential makes stone fruit production a priority agricultural sector for detailed market evaluation.

In order to confirm the scale and viability of the peach and nectarine market within the Murrumbidgee region,

further agricultural and market research is required. This is discussed in Stage II.


















You are here


Section 4 Stage II: Conduct detailed agricultural and market research of most promising market opportunities

4.1 Introduction and purpose

Marketing is not simply sales and promotion, it is not simply finding ways to sell what you produce. Marketing

is also about identifying customer needs and preferences, and providing products and services designed to

meet those needs. This may be a critical step in establishing a new organics processing facility, as raw materials,

technology selection and management systems all influence the qualities and consistency of the resulting

product. Ideally, facilities should be designed with the product requirements of identified target markets at the

forefront of consideration.

When an enterprise is planning to manufacture products for existing or new markets, it is critical that the

products developed can satisfy the needs of the customers. Organics processing enterprises therefore need to

determine the specific needs of their target markets or customers, and produce products that will meet these

expressed needs. This will also enable an organics processing enterprise to develop a strategy to differentiate

their products from any competing products in the market place.

Market research performed to date has consistently recommended that specifically tailored recycled organics

products are required to meet the needs of emerging and new markets (NSW Waste Boards, 2000). Even within

the same market, a range of products may be required. Market research helps to identify a specific customer

demand and needs that is not completely satisfied by the enterprises or products currently available in the market

(Karakaya and Stahl, 1991). This involves the gathering and interpretation of a wide range of information

followed by the utilisation of this information to enable reasoned conclusions to be reached (Wainwright, 1994).

Market research is simply the gathering and interpretation of information to identify and respond to the needs of

customers. In our context, we break this into two key types of information:

Agricultural information focusing on performance requirements and priorities of growers, relating to the

technical requirements of the crop and the farming system, and on delivering agricultural performance

outcomes; and

Market information focusing on user preferences and relative priorities related to grower sensitivities that

may assist in developing positive perceptions in the mind of the consumer; increasing the “user friendliness”

of the product and service; aimed at increasing the receptivity of consumers for the product.

The previous stage (Stage I) used relevant generic agricultural information for gross evaluation and prioritisation

of the potential agricultural market segments for a selected region. This information included the type and range

of agriculture under production and the potential affordability of recycled organics purchase for application.


Stage II is to undertake detailed agricultural and market research of agricultural sectors identified as priorities in

terms of market potential to identify the performance priorities which will in turn inform required compost

product characteristics.

Detailed research will provide access to market and agriculture information specific to your target market via

direct consultation with relevant growers and agricultural experts.

4.2 Accessing detailed market and agriculture information

4.2.1 Relevant sources of agriculture and market information

In view of the large quantity of public market research information available, the first decision in considering

engagement in direct research with customers (primary market research) is to precisely define the information

required. Vague or general questions are likely to elicit vague or general answers that may not provide any useful

insight into the needs of the customer or market.

It is important to note that when conducting such market research, some of the responses to particular questions

are designed to elicit the needs and agricultural performance requirements of the user and/or market. Other

questions relate to ‘soft consumer preference’, and whilst these may not be critical in product choice. Such

questions can influence product design to improve ease of use, and help define promotion language that targets

identified market receptivity – whether related to specific performance or not. However, a range of issues

including agricultural performance requirements, regulations (current and impending), economic factors,

pressures and challenges facing a user and/or market all change the context of the market, and can be much more

influential on bringing about change than soft personal preferences.

Thus, it is important that the researcher distinguishes clearly between soft personal preferences and the technical

performance requirements of the market when reviewing and using such information in product development.

This is why we refer to the process as “agricultural and market research”.

Obtaining information relevant to the agricultural area or region of interest is crucial in determining whether

there is a real market for your product. Consultation with relevant stakeholders is a necessary step to identify

whether recycled organics products can be beneficial, and what type of recycled organics product will be most

valuable to growers (in terms of agricultural performance) and therefore offer the best value/affordability to each

of the prioritised agricultural sectors in the region.

Surveys (see Appendix 4) have been developed for identifying information that will help to determine realistic

market potential for recycled organics products. Relevant stakeholders and information they may be able to

provide include:


Individual growers or farmers

o Individual growers can provide information based on first hand experience from their farms. This may

include identification of key issues and priorities, general affordability, type and range of crops

grown, variations in planting densities, production systems and annual cycle, competing products and

opportunities, area of crops under production, proportion of production under irrigation, soil

characteristics, current land-use problems and practices, fertiliser/herbicide applications, key

constraints, receptivity to use of mulch etc.

Regional industry (grower) groups

o Information on a whole of industry basis, including the range of crops grown in the region, general

land-use practices, value of production in the region, area under production for the region, general

industry issues and goals, positive and negative experiences etc. Regional grower groups may be able

to identify influential industry leaders within the region respected by the local growers who may be

valuable contacts for understanding the industry and building relationships.

Grower associations (state or national)

o Such as CRC’s or RIRDC. Some industries such as viticulture and cotton production are sufficiently

large and well organised to have their own discrete industry peak body (e.g. Cotton Australia) and

research agency (e.g. Cotton CRC).

DPI or Agriculture Departments district horticulturalist, agronomist or industry specific field officers

o The district agronomist or horticulturalist may be able to provide detailed information on the types of

crops grown, crop productivity, crop requirements, key pests and disease issues, soil types and

characteristics etc. DPI Agriculture offices will be able to provide information on a “whole of

industry” basis and will have knowledge of growers’ specific needs and priorities production and

management. Information from these agricultural officers may provide a shortcut to accessing

accurate information, particularly in relation to identification and characterisation of relevant

agricultural soils in your region, and identification of relevant soil-borne pest and disease issues.

An effective way to acquire this information is in the form of a market and agriculture survey.

4.2.2 Agriculture market survey

A survey completed by relevant stakeholders in the region is an effective means of acquiring specific

information relevant to planning, products and services for your enterprise. Surveys should be straight-forward

and simple to complete and should not require a large amount of the respondents’ time. Surveys should be

completed by the most relevant stakeholder(s) for your region to obtain useful and current information. DPI

Agriculture district horticulturalists or agronomists are suggested as a beneficial source of information and due to


their technical expertise and continual contact with growers can provide valuable feedback on a “whole of

industry” basis for a specific agricultural sector via the survey.

Appendix 4 contains two example surveys for this purpose that can be modified and adapted to suit your

particular enterprise and market requirements.

4.2.3 Evaluation of likely soil types

Information obtained on soil fertility for a region is an important and valuable indicator for identifying potential

markets for recycled organics application for a given agricultural sector. Areas with low soil fertility should see

greater benefit from the use of recycled organics products and therefore these areas may potentially represent

more likely application sites for the use of recycled organics. In addition, an understanding of the farm inputs

currently used on crops, such as fertilisers and soil amendments, may indicate the requirements of the crops in

that region and support the use of recycled organics.

Understanding the general soil types of the region will allow you to identify the dominant soil types under

production in your prioritised agricultural sector, which of these soils will benefit from recycled organics

application, and how they will benefit. This will assist in quantifying actual market potential, gaining knowledge

that allows you to effectively communicate with growers, and identify any constraints or limited uses where

recycled organics application is unlikely to provide significant performance benefit, or could cause problems.

Soils that are sandy in texture, have low organic matter, low fertility, poor structure and high permeability have

the potential to benefit most significantly from the application of recycled organics. However, it is also important

to identify soils within your region that could potentially result in no performance benefits or lead to problems

due to recycled organics product application. For example, heavy soils (high clay content) that are poorly

structured and poorly drained may be more prone to waterlogging if covered with mulch. Conversely, the

incorporation of a soil conditioner may lead to improved soil drainage and structure. Not all heavy soils will

result in waterlogging problems as some high clay soils are well structured and well drained and would benefit

from recycled organics application, except perhaps at low lying areas. This is the case for soils in the Tumut and

Orange regions that are heavy clay soils but as topsoil and subsoils tend to be well structured, do not exhibit

drainage problems (Recycled Organics Unit, 2004a).

Evaluation of dominant soils under production may reveal particular areas of low fertility soil in the region that

may realise greater benefit from recycled organics application and therefore help to confirm and prioritise market

demand potential and marketing strategies. Conversely, understanding of soil types in the region could result in a

downwards revision of the potential market in the region if particular soils types under cultivation are unlikely to

benefit, or indeed could have increased waterlogging problems. The point is that calculating realistic market

potential is not as simple as multiplying total area by application rate as not all soils in the area are necessarily

suited to recycled organics application.

Therefore, it is important to understand the characteristics and limitations of the soils in the region that you are

targeting. Such information can be obtained directly from growers (for individual sites), or from the DPI district


agronomist/horticulturalist (for the region). Where necessary, detailed soil identification and characterisation can

be obtained through a number of sources. An effective method of understanding soil types and soil distribution

patterns for a particular region is given below:

1. Topographic maps: use a topographic map of the region to identify the main land-cover types in the area

including urban settlements, forests and agriculture. Investigating these topographic maps will allow you to

locate the agricultural enterprises in your region such as fields or orchards in relation to roads and other

landmarks.

2. Confirmation with relevant field officer: confirm the locations of specific agricultural production systems

identified from the topographic map with the DPI Agriculture field officer for that region to ensure that

activities located on the topographic map are still current and viable (e.g. “please show me on the map where

the apple orchards are”).

3. Regional soil maps: obtain a regional soil map for the area from the Department of Infrastructure, Planning

and Natural Resources (DIPNR) Information Centre. Overlay this soil map with the topographic map to

locate agricultural production systems previously identified from the topographic map. Note that scales may

vary between the maps so care should be taken. Identify the dominant soil types for the specific agricultural

activity being targeted. Detailed soil landscape maps can be obtained from DIPNR.

The DIPNR Information Centre

Phone: 02 9762 8044

Fax: 02 9762 8701

Email: [email protected]

Web: http://www.dipnr.nsw.gov.au/information.html

4. How to interpret the soil types: Once you have identified the soil types in your targeted region, it is

important to understand the potential uses and limitations of these soils and the benefits that recycled

organics application could offer such soil types. The main soil characteristics that you need to identify are:

Texture: is the soil heavy (high in clay) or light (sandy). Sandy soils will benefit from increased soil

organic matter whereas dense, heavy soils may become waterlogged (depending on soil structure).

Structure: is the soil well structured allowing water to easily move through the profile minimising the

chance of the soil becoming waterlogged.

Organic matter content: how high/low in organic matter is the soil, would the soil benefit from

increased soil organic matter (e.g. sandy soils).

Soil structure and texture information should primarily be available on the soil landscape maps produced by

DIPNR. Characteristics of the soil types documented on the maps are summarised within the legend and

more detailed information is included in the booklet accompanying the maps. In addition, consultation with

DIPNR soil officers could offer valuable information on understanding the soil characteristics. The DPI


Agriculture officers for the region would also offer a good source of information on soil types and

characteristics. A large amount of information on understanding soil profiles, soil characteristics and

managing soils for various farming practices has also been produced by:

Department of Primary Industries – Agriculture (formerly NSW Agriculture)

Phone: 02 6391 3100

Fax: 02 6391 3336


Web: http://www.agric.nsw.gov.au/reader/soil-health-fertility

Department of Infrastructure, Planning and Natural Resources

Phone: 02 9762 8044

Fax: 02 9762 8701


Web: http://www.dlwc.nsw.gov.au/care/soil/index.html


















You are here


Section 5 Stage III: Aggregate and interpret data to confirm and quantify market potential

5.1 Introduction

The final step in confirming demand potential in an agricultural market sector for a recycled organics product, is

to aggregate and interpret detailed information obtained from the survey and direct consultation. This

information will allow the realistic potential of a specific agricultural market sector to be defined and quantified.

This involves identifying the agricultural performance priorities and user preferences and defining the general

type of product required by this specific market segment.

The data obtained through the agriculture and market research stage (Stage II) may include correspondence with

relevant stakeholders, relevant market and agricultural information, completed surveys, relevant statistics on the

region and any other information gained that relates to your proposed product and potential market.

The aggregation and interpretation of data should provide a clear picture of market priorities that will assist in

confirming market viability (or otherwise). This step will identify:

Quantify the estimated annual market potential;

Clarify grower performance priorities for recycled organics application;

Identify the type of product required;

Identify any market competitors;

Inform subsequent development of product specifications; and

Inform future product performance validation and market testing.

A case study is included to illustrate this process.

5.2 Calculation

A useful step in quantifying the market for your product is to determine the estimated annual market potential for

a particular region using Equations 1 and 2. Firstly, the total number of hectares for a region that are viable for

recycled organics application are determined (AV) by subtracting the areas that are not viable (AN) from the total

area under cultivation (AT). Secondly, an estimate of the total market potential for a selected region is determined

based on this total area under cultivation that is viable (AV), the application rate of the specific product (R) and

the expected life of the product application (t), which is the number of years before reapplication is required.

These factors are then multiplied by an estimated market penetration target (M) indicating your confidence in the

financial viability of the particular market sector and confidence that the product will provide economic benefit


to the grower. For example, if you expect the market to be highly viable due to high affordability in the region

and/or a significant cost/benefit advantage to growers from the application of your product, you may estimate a

market penetration target of 70%. A moderately viable target may range from 30% to 40% market penetration. If

you estimate the market penetration to be low, the affordability is limited and the viability of this market in the

region is questionable and the value of further examination of this market should be reviewed.

NTV AAA −=

Equation 1. Calculation for determining the total viable area for recycled organics application

where:

AV = total number of hectares under cultivation viable for purchase/use of recycled organics

AT = total number of hectares under cultivation

AN = total number of hectares not viable for recycled organics application due to various factors (see Section 4.2.3)

Mt

RAEAMP V ×⎟⎠⎞

⎜⎝⎛ ×

=

Equation 2. Calculation for determining the estimated annual market potential

where:

EAMP = Estimated Annual Market Potential

AV = total number of hectares under cultivation viable for purchase

R = estimated application rate per hectare

t = life of application (time before reapplication required) in years

M = Market penetration target expressed as a fraction out of 100 (percentage, %), dependent on confidence of financial viability or fundamental necessity/need


5.3 Interpret data and identify priorities

Data obtained through the agriculture and market research stage (Stage II) will provide information on the needs

and priorities of your target market and indicate how your product(s) can meet these expressed needs for

growers. This will indicate whether recycled organics product application in the targeted region is ‘necessary’

for successful productivity or increased assurance of producing an economic crop in the region, or merely a

‘nice’ opportunity for long term overall farm or environmental benefits.

In order to ensure your product meets the requirements of the market, the performance objectives and priorities

expressed by the market must be identified (Stage II). These objectives will indicate the type of product required

by the market and the expected performance of this product. Meeting these expressed market objectives will

provide the best opportunity for establishing a viable market.

Example: A number of surveys were completed by farmers in a particular region targeted by

an organics processing facility. Orchards totalling 1000 ha feature in this region; however of

this total area, it is estimated that 400 ha is not viable for application of recycled organics due

to the occurrence of heavy soils that are poorly drained and subject to waterlogging in low

lying areas. An application rate of around 100 m3/ha (Table 3) is estimated proposed for

composted mulch application to the region and the facility estimates a market penetration

target of 70%.

The estimated total viable area for recycled organics application is:

NTV AAA −=

= 1000 – 400 = 600 ha

Therefore, the estimated annual market potential for orchards in this region is:

Mt


⎜⎝⎛ ×

=

10070

3100600

×⎟⎠⎞

⎜⎝⎛ ×

=

= 14,000 m3 / year or composted mulch

Note that unrealistic estimations will deliver unrealistic results. This represents an annual

market potential once this market is well established, where the right product and service at

the right price is provided. This figure does not suggest this is a realistic figure for the first

year of entry into this market, this represents the market potential as a mature market.


Objectives and priorities of recycled organics application expressed by a region during Stage II may include:

Requirement for a real or reduced risk of crop failure (e.g. reduced risk from frost or crop stress);

Requirement to overcome limiting factors in production (e.g. limited water available for irrigation);

An outright cost-benefit production advantage.

A comprehensive range of potential benefits from recycled organics application is documented by successful

field trials or recycled organics are shown in Table 14.

5.4 Product type

Once the objectives and priorities of growers in a targeted region are documented (Stage II), it is possible to

identify a product(s) to meet these objectives and provide the benefits required by the grower. To determine what

product is required, it may be beneficial to list the goals and objectives expressed from the targeted agriculture

sector (via the survey) in order of priority. Those priorities that are expressed as highly important in all or most

survey responses should be fulfilled by the most appropriate product. If all performance objectives cannot be

met, those that address limiting factors that cannot be overcome by existing (low cost) products and effort should

take precedence in product design and application rate. This process is documented in the Case Study at the end

of this section.

In general, if the grower requires an application for perennial crops a surface mulch is the most suitable product.

If the grower requires an application for incorporation into the soil for new plantings or to apply to cultivated

soil, a soil conditioner is the most suitable product.

The final requirement is to select a product (and associated application rate) from your product range that meets

these expressed performance objectives. If you do not currently produce a product what meets the performance

objectives identified in your research, it may be necessary to develop a product specifically for the identified

market. In this instance, the goal is to define product characteristics that maximise the agricultural cost benefit

advantage to growers, and is capable of being applied using available farm equipment or contract spreading

service providers. This is called product development and is briefly discussed in Section 5.6.

Rec

ycle

d O

rgan

ics U

nit

Gui

de to

Res

earc

hing

Agr

icul

tura

l Mar

kets

for R

ecyc

led

Org

anic

s Pro

duct

s Pa

ge 4

5

Tab

le 1

4. F

ram

ewor

k fo

r de

finin

g gr

ower

val

ue:

Stan

dard

per

form

ance

cat

egor

ies

and

mon

itorin

g pa

ram

eter

s fo

r co

nsid

erat

ion

in d

efin

ing

recy

cled

org

anic

s pr

oduc

t re

quire

men

ts;

to i

nfor

m s

elec

tion

of p

rodu

ct t

ype;

and

pro

duct

per

form

ance

eva

luat

ion

via

prod

uct

appl

icat

ion

trial

s (a

s re

quire

d to

qua

ntify

agr

icul

tura

l an

d en

viro

nmen

tal

perf

orm

ance

ben

efits

) (R

ecyc

led

Org

anic

s Uni

t, 20

04d)

. Not

e: N

ot a

ll pa

ram

eter

s are

nec

essa

ry fo

r all

situ

atio

ns, a

prio

ritis

ed sh

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st m

ay b

e de

velo

ped

for s

peci

fic c

onte

xts.

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wer

val

ue fr

amew

ork

with

com

pone

nt p

erfo

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ce c

rite

ria

(can

be

appl

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as fi

eld

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aram

eter

s)

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k of

cro

p fa

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crea

sed

farm

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osts

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rm m

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5.5 Competitor analysis

A competitor analysis is an important step in the agriculture and market research stage to identify what products

are currently used in your targeted region. Once you identify the needs and priorities of the target market, it is

crucial to identify any current products that may currently be meeting these needs. Such competing products may

include chemical fertilisers, manures, straw mulches, rice hull hay, or other generic recycled organics products.

Competing products are identified in the responses to the survey. An organics processing facility must therefore

differentiate their products from such competing products in the market place to make their products an

attractive option for growers and farmers.

If such competing products are identified as currently in use in the region, an evaluation of the costs and benefits

of your recycled organics product over a specific application period in comparison to such competing products is

required. This will inform you as to the viable pricing for you composts or other recycled organics products to

make them attractive and affordable to the targeted region.

In some instances, competing products may be near substitutes, and the lower cost of such competing products

may overwhelm all previous assumptions. Growers have reported manures being available to cotton producers in

Southern Queensland for $4/tonne. In this instance, the price of a competing product may make composted soil

conditioner produced for cotton completely unaffordable, irrespective of marginally superior performance, and

therefore reveal that no market exists in this otherwise high potential agriculture market sector. Better to find out

now!

Processors successfully selling into intensive agriculture markets state that the dollar based cost-benefit analysis

is very important, and demonstrating grower benefit is key to selling composts (pers. comm. Jeffries Group,

2005). This cost benefit analysis should be based on long term field trials, and must also consider the cost-

benefit case for competing products.

5.6 Developing detailed product standards

Once it is clear that the potential market identified for your recycled organics product is viable and there is a

significant area for application, products should be defined and developed that best meet the requirements of this

market. This process is known as new product development. The product must meet the required performance

objectives and priorities identified in the data analysis, and the scale of production of products in the planned

product range should be informed by the market potential identified.

When considering recycled organics products, a range of chemical, physical and biological properties dictate

performance. Consideration of these properties is required in order to select materials to be incorporated into a

specific purpose product. This includes how the organic product is to be prepared, what level of decomposition

and maturity is required, and whether any complimentary products are required for a given application.


Development of product specifications will involve determining the type of product required by your target

market and will be based on the crop or application identified as economically viable and likely to benefit from

recycled organics application. This process is guided by the desired product type and key performance

requirements of your grower or target market. This information has been determined in the process above and

will guide your product development.

The process of developing detailed performance specifications has been covered in detail in a number of other

Recycled Organics Unit publications. More information on this process can be found in:

Guide to Selecting, Developing and Marketing Value-Added Recycled

Organics Products (Recycled Organics Unit, 2002c); and

Compost Product Standard for Orchard Production in New South Wales

(Recycled Organics Unit, 2004a).

5.7 Performance validation and market testing

In many instances, the specific and reliable agricultural benefits from recycled organics product application will

be uncertain or unquantifiable (Recycled Organics Unit, 2004d). As a result, market testing to demonstrate

product performance and resolve ease of use issues will provide a necessary validation process to:

1. Confirm or otherwise inform improvements in product specifications and application rate;

2. Improve robustness of market demand potential estimates;

3. Provide promotional opportunities for sale of the product in the region.

Where field demonstration is on a farm site, it is important to choose a property and grower with maximum

potential to influence recycled organics product uptake. Interaction with local grower groups and advice from

DPI Agriculture district horticulturalist, agronomist or industry specific field officers will help to identify such

growers. The goal is to establish a partnership with a suitable grower, supporting the grower to realise

agricultural benefit, and to effectively integrate the recycled organics product into farm management practice.

This in turn enables the industry to more readily use the recycled organics product to maximise agricultural

benefits and minimise risk of change to farming practice. The following assessment criteria are provided for

selection of preferred growers and sites:

Site is representative of dominant regional climatic conditions

Site is representative of dominant regional soil types

Dominant regional crop/application types or varieties are grown on site

Significant scale of operation

Grower is enthusiastic and willing to engage and contribute on basis of documented agreement

Grower is credible and is recognised as an industry leader within the region.


5.8 Case study

The following case study is provided for fruit and orchard production in the southern Greater Sydney Region

(GSR). Information used in this case study has been derived from the document Compost Product Standard for

Orchard Production in New South Wales (Recycled Organics Unit, 2004a). This case study summarises the

entire process documented in this guide for regional facilities to identify and develop products for particular

agriculture markets identified in their region.

5.9 More information

For more information on the benefits of different recycled organics products and using these products, see the

following publications. These publications are available to access for free from the Recycled Organics Unit

website www.recycledorganics.com:

Buyers Guide for Recycled Organics Products: Supporting consumers to

differentiate between high and low quality recycled organics products and to

identify the best product for their needs (Recycled Organics Unit, 2002b);

Life Cycle Inventory and Life Cycle Assessment for Windrow Composting

Systems (Recycled Organics Unit, 2003a); and

Recycled Organics In Intensive Agriculture: Volumes 1 to 4. A Review of

Recycled Organics Products Application Field Trials in Intensive Agriculture

in Australia (Recycled Organics Unit, 2004d).


Case Study 2: Worked example of identifying the market

potential for recycled organics application for fruit and

orchard production in the southern Greater Sydney Region

Stage 1: General market viability for the region

A facility proposed for the southern Greater Sydney Region (GSR) wants to

evaluate the region for potential recycled organics application to orchard

production in the area. An evaluation of the agriculture markets in the

Camden/Picton region indicate that stone fruit offers a potential market for

recycled organics applications as this crop is high value crop with wide ranging

reported gross margins. In addition, an evaluation of the total area under stone

fruit production for this region indicates that a significant area exists for potential

recycled organics application.

This overview of the Camden/Picton region undertaken by the facility confirms

that stone fruit presents a viable agricultural activity for potential recycled

organics application. An overview of performing this general market overview

analysis is given in Case Study 1 (for a different region).

Stage 2: Specific market and technical research

The information and data presented below is derived from surveys of relevant

regional growers (peach and nectarine orchardists), survey completed by DPI

district horticulturalist, personal discussions with growers, and subsequent

personal communication with key growers and district horticulturalists to clarify

any inconsistencies in the data. Relevant data is collated and analysed below.

Characterisation of enterprise

Grower and District Horticulturist responses characterise orchard enterprises in

this region as relatively small scale. The land occupied by each grower is <10 ha.

Peach is the main stone fruit grown in the area however some growers have

recently planted nectarines.

This case study applies the

methodology given in this

guide for the Camden /

Picton region of the Greater

Sydney Region.

The viability of recycled

organics application to

stone fruit product is

investigated via general

market viability; specific

technical and market

research; and interpreting

the gathered data.


The total number of peach and nectarine trees per grower varies from 500 to 2000. The density of planting varies

from 600 to 800 trees per hectare. Trees are planted on mounds raised above ground level. The topsoils in the

area are mainly clay loam to clay, acidic, have poor structure, localised poor drainage, localised waterlogging

and salinity/sodicity problems.

All fruit trees are irrigated. The main source of irrigation water is on farm rainfed dam, however some bore water

is also used. Irrigation systems used are either micro-jet or drip. Trees are irrigated every second day for around

2 hours during peak irrigation time, which is October to December. The main water management problem in the

sub-region is limited water availability. The quality of irrigation water is an issue in the areas where bore water

is used for irrigation because bore water is high in iron which increases soil acidity. The peak period for farm

activities is June to February. Pruning, thinning and harvesting are the dominant labour intensive farm

management activities.

Varieties

A wide range of peach and nectarine varieties are grown in the area including early, mid and late maturing

varieties. Fruit yields vary from 6-18 t ha-1. Growers are under pressure to change peach and nectarine varieties

constantly due to changing market preferences, and it is hard for growers to keep up with the changes given the

significant costs, timeframe and risks of re-planting with new varieties.

Identification of farm management practices, schedule and costs

The District Horticulturist has identified the main pests in the area are Flying foxes, two spotted mites and

Oriental fruit moths. The growers confirmed that the Flying foxes are the main pests in the area. The main

diseases are Brown rot and Summer canker. Phytophythra-soil pathogen is a problem due to localised water

logging and drainage problems. The area is considered relatively frost-free.

The soils are managed through sod culture, that is no cultivation and maintaining permanent grass swards

between rows. Grass and clover is allowed to establish in the inter-row space, then slashed and clipping are left

at the site. The soil with poor drainage and/or waterlogging problems is regularly turned on mounds along tree

rows. This helps to loosen the soil and reduces waterlogging of the roots. Soils are tested every two years for

standard tests such as pH, EC, OM, CEC, major and minor nutrients.

As standard practice, lime is applied in winter as indicated by soil test. However, lime application varies widely

among growers. Some growers apply once in every 10 years, while others apply every 2-3 years. A few growers

have applied a 2-inch surface layer of poultry manure as “mulch” for soil improvement and as a cheap nitrogen

fertiliser source. Poultry manure is used with the intention of reducing use of water and fertilisers, to improve

fruit yield, to supply nutrients and to increase organic matter. Poultry manure is applied manually and/or using

own machinery, or using a spreader provided by the manure seller. Poultry manure is applied mainly in winter so

that it breaks down before fruit development stage in spring/summer.

Fertiliser application method, timing, and rates vary widely among growers. Fertilisers are applied as basal

dressing or through fertigation (via irrigation water). Fertilisers are applied as indicated by soil tests or leaf


analysis. The standard timing of main fertiliser application is autumn to early spring but varies among growers

from August to March. The standard timing of supplementary application is spring but growers apply at varying

times as foliar spray. The method of fertiliser application is either soil as basal dressing for main application or

foliar spray for supplementary or main application. The rate of fertiliser application varies among growers.

Pruning, thinning and harvesting

Fruit trees are pruned twice in a year in winter and in summer. Winter pruning is carried out to remove the old

growth and to thin new growth branches, while summer pruning reduces the competition of vegetative growth

with the developing fruit. Tree prunings are slashed in rows and used as mulch. Thinning is usually carried out in

spring either at flowering stage or after development of fruit buds. Fruit is harvested manually from late October

to early January. The fruit is mainly grown for fresh market and some growers receive premium price for early

maturing fruit.

Relationship between row spacing, pruning and access of machinery to orchard

Fruit trees are pruned to encourage a specific shape and reduce excessive growth to keep trees compact. The

ideal plant has side branches strong enough to carry a good crop but well enough spaced to ensure good air

circulation. Thinning is carried out to regulate the number of fruit buds, so that fewer, but better sized fruits are

produced. Both pruning and thinning combined together allows easier access for spraying (to control effectively

pests and diseases) and harvesting. Fruit trees are pruned mainly into the three following shapes:

Vase shape – tree structure is vase shaped along the row and extends into inter-row area.

Central leader – tree structure is straight along the row and extends little into inter-row area.

Spindle bush – tree structure is straight along the row and extends little into inter-row area.

The vase shape tree structure is old system used for old varieties having bigger size trees that require greater

spacing between rows (5-6 m) and within rows (2-4 m). The density of old varieties with vase shape tree

structure varies from 500-700 per hectare. Although old varieties have greater space between rows but the

branches of vase shape trees tends to cross in the inter-row space, which can significantly limit machinery access

through the orchard.

The central leader and spindle bush tree shape is mainly used for new dwarfing high density varieties that require

narrower spacing between rows and along rows. The spacing between rows varies from 3 to 5 m and along row

varies from 1-2 m. The density of trees per hectare is >1000 ranging from 1000-2000. Although new dwarfing

varieties have narrow spacing between rows, due to the relatively 2 dimensional, flat tree structure along the row

machinery access is less difficult, provided spacing between rows is sufficiently wide. High planting densities

are increasingly being planted with narrow spacing between rows and the use of narrow width tractors.


Fruit quality, yield and income per hectare.

The price return at market mainly depends on early maturing fruit, fruit size and colour. The main fruit quality

characteristics assessed by buyers are flavour, colour and size. Yield is a lesser concern for growers than fruit

quality and size which are key to saleability and premium pricing at market. Change in yield of fruit trees does

not change the fruit quality, however it changes fruit size. Higher yield produces smaller fruit, which attracts

lower price at market. Excess nutrients particularly nitrogen available at fruit maturity stage can reduce fruit

quality including flavour. Fruit quality problems in the sub-region are post harvest inking of peaches, which is

de-colouration of fruit skin that affects appearance without affecting fruit quality.

Application and availability of water is critical for the fruit size and quality, however excess soil water at the

time of harvesting reduces fruit quality by diluting concentration sugar in the fruit. Fruit maturity requires hot

dry weather.

Stage 3: Aggregate and interpret data

Farm inputs

Irrigation water - ~ 1 to 8 ML ha–1 per season.

Lime – 1-2 t ha-1 applied mainly in winter.

Nitrogen, Phosphorus and Potassium – varies among growers or are based on soil and foliar tests.

Identification of key peach and nectarine production issues and drivers for change.

Question Answer Percentage of grower’s presenting this response

Changed from pome fruit to stone fruit 50 Have you made changes recently (in last 5 years) such as change in variety, yield or quality? Changed varieties (of stone fruit) 50 What were the reasons for such change/s? Price (market forces) 100

Are you planning to make changes? Yes, sell the property 50

What requires you to change the following?

Economic viability 100 Peach and nectarine varieties

Market requirements 100 Higher returns 100

Peach and nectarine yield Market requirements 50

Peach and nectarine quality? Market requirements 100

Cost effective, reduced labour, market requirements 50 What would you require to

implement any change in the future and what time frame will be required? Stability over 5 years 50


Varieties are regularly updated from old varieties (low planting density) to new dwarfing varieties (high planting

density) that require less management and produce high yields per hectare of varieties currently in demand.

Market requirements, economic viability and higher returns are the main reasons growers require to change

varieties, fruit yield and quality. The following criteria are applied by growers to influence need for change: cost

effective, market requirements, reduced labour and stability of market demand for variety (over 5 years).

Identification of key orchard management issues and priorities

Order on survey Key orchard management issues and priorities Grower’s ranking

(weighted value) DPI Officer’s ranking

Management issues

1 Weed suppression 5 (14) 4 2 Improve efficiency of irrigation water use

(decrease irrigation) 4 (16) 3

3 Decrease plant stress 3 (24) 5

4 Decrease erosion 9 (2) - 5 Decrease soil borne pest and disease 1 (32) - 6 Decrease other pest and disease (flying foxes) 2 (24) 2 7 Increase soil organic matter 7 (10) 6 8 Go organic 8 (4) - 9 Others-specify 6 (12)- Flying foxes 1-Manipulate fruit quality

Management priorities

1 Increase income 2 (20) 1

2 Decrease risk of crop failure 4 (10) 3

3 Decrease production costs 3 (15) 2

4 Increase farm capital value 5 (5) 4

5 All equally important 1 (25) - Note: Orchard management issues in italics are not relevant to composted mulch. Weighted value is for all responses and indicates highest response.

The Growers have ranked the top five orchard management issues as relevant to compost application in order of

priority as follows:

1. Decrease in soil borne pest and disease (specifically phytopthera);

2. Decrease plant stress;

3. Improve efficiency of irrigation water use (decrease irrigation);

4. Weed suppression; and

5. Increase in organic matter.

The District Horticulturist has also identified similar orchard management issues as the issues except for the

manipulation of fruit quality, which has been ranked as the top orchard management issue. The ranking and

order of priority for other orchard management issues are as follows:

1. Manipulate fruit quality;


3. Weed suppression;


4. Decrease plant stress; and

5. Increase in organic matter.

The key orchard management priorities have been ranked in order of priority as follows:

1. All equally important; 2. Increase income;

3. Decrease production costs; 4. Decrease risk of crop failure; and

5. Increase farm capital value;

District Horticulturist’s ranking of fruit quality as the number 1 issue is consistent with growers’ emphasis on

fruit quality as the primary determinant of farm income. Important to note that reduced plant stress and increased

soil water availability can both influence fruit quality and this is consistent with top ranking of increased farm

income.

Identification of receptivity to composted mulch and key barriers to use of composted mulch.

Order on survey

Key barriers and receptivity to using composted mulch

Grower’s ranking (weighted value)

DPI Officer’s ranking

Key barriers to using composted mulch

1 Cannot afford* 5 (22) 8

2 Uncertain of benefits for mulch to the farm - 7

3 Uncertain of cost* 1 (54) 1

4 Compost not available locally 6 (20) 3

5 Cost of spreading compost 2 (52) 4

6 Accessibility of spreading compost 3 (40) 10

7 Uncertain about risk of using compost - 9

8 Uncertain of how to integrate into farm management practices

- 13

9 Do not know where to get quality information 7 (16) 12

10 Lack of technical support 8 (14) 11

11 Not sure what product is suitable 9 (12) 5

12 Do not know where to get compost 10 (10) 6

13 Other organic products available - 2

14 Others (Specify) Big labour problem 4 (26) 14

Receptivity to composted mulch

1 Demonstrated benefits for crop 7 (6) 3

2 Demonstrated benefits for region 8 (4) 7

3 Access to technical support 4 (12) 8

4 Demonstrated cost/benefit advantage (cost effectiveness)

2 (28) 1

5 Must be affordable 1 (30) 4

6 Introductory discounts 5 (10) 5

7 Regional demonstrations 6 (8) 6

8 Others (Specify) 3 (16) Give and spread for trial 2 - cost of transport * Note: No details of cost of product or application was provided. Weighted value is for all responses and indicates highest response.


Growers and District Horticulturist have identified and ranked the top five key barriers to using composted

mulch as follows:

Growers’ response

1. Uncertain of cost; 2. Cost of spreading compost;

3. Accessibility of spreading compost; 4. Others (Specify) Big labour problem; and

5. Cannot afford.

District Horticulturist’s response

1. Uncertain of cost; 2. Other organic products available;

3. Compost not available locally; 4. Cost of spreading compost; and

5. Not sure what product is suitable

Growers and District horticulturist have ranked the top five key barriers to using composted mulch slightly

differently. Combining responses of growers and District horticulturist and discussions with growers during

personal farm visits suggest that uncertainty of cost, cost of spreading, accessibility of spreading compost and

affordability are the key barriers to using composted mulch.

The responses suggest the following ranking of issues relation to receptivity to composted mulch:

1. Demonstrated cost/benefit advantage 2. Must be affordable

3. Demonstrated benefits for crop 4. Access to technical support/information.

Conclusions: Performance priorities and application issues

Product performance priorities and constraints

Highest goal for growers is to produce quality fruit, as this is the primary determinant of farm income,

performance priorities below should be seen in this context, with availability of water being the key constraint in

relation to fruit quality. Performance objectives common to all or most growers that can be influenced by the

application of composted mulches are listed in order of priority below:

1. Decrease in soil borne pest and disease (specifically Phytopthera)

2. Decrease plant stress;


4. Weed suppression; and

5. Increase soil organic matter.

It should be noted that weed suppression is expressed as being cheap and easy for growers and will have little

cost/benefit value to production.


Product application priorities and constraints

The soils are mainly clay loam to clay, which have localised drainage and waterlogging problems. Application of

composted mulch has the potential to reduce evaporation from the surface therefore can exacerbate waterlogging

problems. Excess soil water at the harvest period reduces fruit quality through reduced sugar concentration.

Therefore application of mulch should be used with a caution on poorly drained areas of the orchard.

Application of mulch should be considered in winter after winter pruning and before fruit thinning. This timing

will facilitate access of machinery in the orchard after tree pruning and before fruit thinning to avoid loss of fruit

after fruit thinning. Orchards with new dwarfing high density varieties and narrow inter-row spacing (<3 m), or

with vase shape tree structure (i.e. most orchards) may present difficulties accessing orchard rows with compost

product application machinery (i.e. spreaders).

Estimated annual market potential (EAMP)

The total number of hectares under peach and nectarine production in the Camden/Picton region is 67 ha. No

data currently available on area prone to waterlogging, however for the sake of this case study an estimate of 4

ha was used. Therefore, the total viable area in this region for recycled organics application is:

NTV AAA −=

= 67 – 4

= 63 ha

The market penetration target for the Camden/Picton region is estimated as 75% as water availability (empty

farm dams) and bore water quality have been identified as limiting factors for production of quality fruit, and as

a consequence for farm income. Mulch application therefore can be highly beneficial in relation to increased

assurance and reliability of production of marketable quality produce. If composted mulch application rate is 100

m3/ha, the EAMP for composted mulch at for the Camden/Picton region for peach and nectarine production is:

Mt


⎜⎝⎛ ×

=

= 100

75

3

10063×

×⎟⎠⎞

⎜⎝⎛

= 1575 m3 / year of composted mulch (specifically for peach and nectarine production).

Note that the area unsuited for mulch application due to waterlogging would need to be identified via

consultation with growers to confirm these figures.


References Australian Bureau of Statistics (1998). Agriculture New South Wales 7113.1: 1996 - 1997. Australian Bureau of

Statistics, October, 2001.

Australian Bureau of Statistics (2001). Agriculture Australia 7113.0: 1999 - 2000. Australian Bureau of

Statistics, October, 2001.

Environment Australia (1999). Environment Australia Organics Market Development Strategy. Report prepared

for Environment Australia by Meinhardt (Vic) Pty Ltd, Strategic Multimedia, EC Sustainable

Environment Consultants and Environment Resource Management (Qld) Pty Ltd, October, 1999.

Guiltinan, J. P. and Paul, G. W. (1994). Marketing Management: Strategies and Programs. Fifth Edition.

McGraw Hill Inc., USA.

Jenkins, A. (1999a). Soil Management for Bananas. NSW Agriculture, Orange, December 1999.

Jenkins, A. (1999b). Soil Management in Orchards. NSW Agriculture, Orange, December 1999.

Karakaya, F. and Stahl, M. J. (1991). Entry Barriers and Market Entry Decisions - A Guide for Marketing

Executives. Quorum Books, New York, USA.

NSW Agriculture (1995a). NSW Agriculture Annual Report 1994 - 1995. NSW Agriculture, Orange, New South

Wales.

NSW Agriculture (1995b). Soil Management for New South Wales Orchards and Vineyards. NSW Agriculture,

Orange, New South Wales.

NSW Agriculture (1998). SOILpak for Cotton Growers. NSW Agriculture, Orange, New South Wales.

NSW Agriculture (1999). Farm Budget Handbook 2000: NSW Stone Fruit. Deciduous Fruit Program, NSW

Agriculture.

NSW Agriculture (2001). Farm Enterprise Budgets. Internet publication: http://www.agric.nsw.gov.au.

NSW Waste Boards (1999a). Green Waste Market Development Program. Phase B: Supply Forecast and Phase

C: Strategic Phasing of Garden Waste Ban. Report prepared by Nolan-ITU Pty Ltd and EC Sustainable

Environment Consultants, September 2000.

NSW Waste Boards (1999b). Markets for Products Containing Recycled Organic Materials. Report prepared by

EC Sustainable Environment Consultants, March 1999.

NSW Waste Boards (2000). Recycled Organics: The sustainable Quality Strategy. Report prepared by EC

Sustainable Environmental Consultants, September 2000.


Recycled Organics Unit (2002a). Best Practice Guideline to Managing On-Site Vermiculture Technologies.


Recycled Organics Unit (2002b). Buyers Guide for Recycled Organics Products: Supporting consumers to

differentiate between high and low quality recycled organics products and to identify the best product

for their needs. Recycled Organics Unit, internet publication: www.recycledorganics.com

Recycled Organics Unit (2002c). Guide to Selecting, Developing and Marketing Value-Added Recycled

Organics Products. Recycled Organics Unit, internet publication: www.recycledorganics.com

Recycled Organics Unit (2003a). Life Cycle Inventory and Life Cycle Assessment for Windrow Composting

Systems. Recycled Organics Unit, internet publication: www.recycledorganics.com

Recycled Organics Unit (2003b). Recycled Organics Industry Dictionary and Thesaurus: Standard terminology

for the Recycled Organics Sector. Third Edition DRAFT. Recycled Organics Unit, internet publication:

www.recycledorganics.com

Recycled Organics Unit (2004a). Compost Product Standards for Orchard Production in New South Wales.


Recycled Organics Unit (2004b). Recycled Organics In Intensive Agriculture: Volume 3 - Fruit and Orchard

Production. A Review of Recycled Organics Products Application Field Trials in Intensive Agriculture

in Australia. Recycled Organics Unit, internet publication: www.recycledorganics.com

Recycled Organics Unit (2004c). Recycled Organics In Intensive Agriculture: Volume 4 - Market Gardening. A

Review of Recycled Organics Product Application Field Trials in Market Gardening in Australia.


Recycled Organics Unit (2004d). Recycled Organics In Intensive Agriculture: Volumes 1 to 4. A Review of

Recycled Organics Products Application Field Trials in Intensive Agriculture in Australia. Recycled

Organics Unit, internet publication: www.recycledorganics.com

Recycled Organics Unit and Central Coast Waste Planning and Management Board (2000). Recycled Organics

Strategic Plan 2005. Report prepared for the NSW Minister for the Environment, The Hon. Mr Bob

Debus, October 2000.

Reed, P. (1992). Marketing: Planning and Strategy. Harcourt Brace Jovanovich, Sydney, Australia.

Standards Australia (2003). AS 4454 - Composts, Soil Conditioners and Mulches. Standards Association of

Australia, Sydney, New South Wales.

Tyler, R. W. (1996). Winning the Organics Game: The Compost Marketer's Handbook. ASHA Press,

Alexandria, Virginia, USA.


Waste Enquiry (2000). Independent Public Assessment - Landfill Capacity and Demand. Report prepared for the

Minister for Urban Affairs and Planning, State Government of New South Wales, September 2000.


Section 6 Appendices Appendix 1 Glossary

All terms defined in this glossary are given in the Recycled Organics Industry Dictionary and Thesaurus, 2nd

Edition (Recycled Organics Unit, 2003b) unless otherwise referenced.

Term Definition

AS 4454 – 2003 (Australian Standard AS 4454 – 2003)

AS 4454 – 2003 is a document outlining the Australian Standard for Composts, Soil Conditioners, and Mulches. The objective of the Standard is to provide manufacturers, local government bodies, consumers and growers with the minimum requirements for the physical, chemical and biological properties of composts, soil conditioners, and mulches. It also aims to standardise labelling and marking, in order to facilitate the beneficial recycling and use of organic materials with minimal adverse impact on environmental and public health. This Standard also sets out composting best practice procedures. By following these guidelines, products of consistent quality can be produced.

Australian standard A Standard is a published document which sets out specifications and procedures designed to ensure that a material, product, method or service is fit for its purpose and consistently performs the way it was intended to.

Compost

An organic product that has undergone controlled aerobic and thermophilic biological transformation to achieve pasteurisation and a specified level of maturity. Compost is suitable for the use as soil conditioner or mulch and can improve soil structure, water retention, aeration, erosion control, and other soil properties.

Compostable organic materials

Compostable organic materials is a generic term for all organic materials that are appropriate for collection and use as feedstocks for composting or in related biological treatment systems (e.g. anaerobic digestion). Compostable organics is defined by its component materials: residual food organics; garden organics; wood and timber; biosolids, and agricultural organics.

Composted fine mulch

Any pasteurised product which has undergone composting for a period of not less than 6 weeks (excluding polymers which do not degrade such as plastics, rubber and coatings) that is suitable for placing on soil surfaces. Composted fine mulch has not more than 15% by mass of its particles with a maximum size above 15 mm.

Composted mulch

Any pasteurised product which has undergone composting for a period of not less than 6 weeks (excluding polymers which do not degrade such as plastics, rubber and coatings) that is suitable for placing on soil surfaces. Composted mulch has at least 70% by mass of its particles with a maximum size of greater than 15 mm.

Composted soil conditioner

Any composted product, including vermicast, manure and mushroom substrate, which is suitable for adding to soils. This term also includes ‘soil amendment’, ‘soil additive’, ‘soil improver’ and similar terms, but excludes polymers which do not biodegrade, such as plastics, rubber and coatings. Soil conditioner has not more than 20% by mass of particles with a maximum size above 16 mm.

Gross margin

A gross margin is the gross income from an enterprise less the variable costs associated with its production. Variable costs are those costs directly attributed to an enterprise and which vary in proportion to the size of the enterprise and management techniques used. Note the gross margin is not gross profit because it does not include fixed or overhead costs such as depreciation, interest payments, rates and permanent labour that have to be met irrespective of enterprise size.(Recycled Organics Unit, 2004a).


Term Definition

Electrical conductivity (EC) A measure of a solution’s ability to carry an electrical current; varies both with the number and type of ions contained in the solution. Usually measured in deci-Siemens per metre (dS m-1). See also salinity.

Garden organics

The garden organics material definition is defined by its component materials including: Putrescible garden organics (grass clippings); non-woody garden organics; woody garden organics; trees and limbs; stumps and rootballs. Such materials may be derived from domestic, commercial and industrial and commercial and demolition sources. Garden organics is one of the primary components of the compostable organics stream.

Intensive agriculture

Refers to the market segment within the recycled organics sector which incorporates: Nurseries (production); Nurseries (wholesale); Fruit & Orchid Growing; Market Gardening; Mushroom Farming; Turf Grass Growing; and Viticulture.

Landscaping industry Commercial operations concerned with designing, constructing and maintaining outdoor garden environments to suit a particular climate or aesthetic requirements.

Life cycle analysis (LCA) Analysis of the environmental impacts incurred during the life cycle (the production, consumption and disposal) of a product.

Market development Strategy for selling existing or conventional products into a new or developing market (Recycled Organics Unit, 2002c).

Market penetration Strategy for selling existing o conventional products into an existing or established market (Recycled Organics Unit, 2002c).

Marketing plan

The corporate marketing plan provides overall direction for the organisation by specifying the products the firm will make and the markets it will pursue and by establishing the objectives to be achieved by the various products (Guiltinan and Paul, 1994).

Market research

Systematic and objective identification, collection, analysis and dissemination of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing (Recycled Organics Unit, 2002c).

Marketing strategy An implementation strategy and programs designed to achieve the corporate objectives defined in the corporate marketing plan (Guiltinan and Paul, 1994).

Mulch

Any pasteurised organic product (excluding polymers which do not degrade such as plastics, rubber and coatings) that is suitable for placing on soil surfaces. Mulch has at least 70% by mass of its particles with a maximum size of greater than 15 mm.

Municipal solid waste (MSW)

The solid component of the waste stream arising from all sources within a defined geographic area.

Nutrient availability The relative proportion of a nutrient in the soil (or compost) that can be absorbed and assimilated by growing plants.

Organic matter Chemical substances of animal or vegetable origin, consisting of hydrocarbons and their derivates.

pH

A measure of the concentration of hydrogen ions in a solution. pH is expressed as a negative exponent. Material that has a pH of 8 has ten times fewer hydrogen ions than a material with a pH of 7. The lower the pH, the more hydrogen ions are present, and the more acidic the material is. The higher the pH, the fewer hydrogen ions present, and the more basic it is. A pH of 7 is considered neutral.


Term Definition

Recycled organics

The term Recycled Organics has been adopted by NSW Waste Boards and EcoRecycle Victoria as a generic term for a range of products manufactured from compostable organic materials (garden organics, food organics, residual wood and timber, biosolids and agricultural organics). Specific recycled organic (RO) products are defined in the following Australian Standards and NSW EPA guidelines: AS 4454 (2003) Composts, mulches and soil conditioners; AS 3743 (2003) Potting mixes; AS 4419 (2003) Soils for landscaping and garden use; AS/NZS 4422 (1998) Playground surfacing: specifications, requirements and test methods; NSW EPA (1997) Environmental guidelines: use and disposal of biosolids products. Whilst quality standards exist, there are also many raw Recycled Organics products which are not defined in any standard and are completely unregulated, certain risks are associated with their use (see Raw Products).

Recycled organics industry

A range of related business enterprises involved in the processing of compostable organics into a range of recycled organics products, and the development, assessment, marketing, promotion, distribution and application of those products.

Stakeholder

Stakeholders are any group or individual who is, or can be, affected by the process under scrutiny. When that process is marketing research, there are four stakeholders: the public at large, the actual respondents used in a study, the client, and the researcher (Malhotra et al., 1995).


Appendix 2 Abbreviations

The following abbreviations and symbols have been used in this publication.

Abbreviation Explanation ABARE Australian Bureau of Agricultural and Resource Economics ABS Australian Bureau of Statistics cm centimetres CRC Co-operative Research Centre DPI Department of Primary Industries dS deci-Siemens ESD Ecologically Sustainable Development GSR Greater Sydney Region ha hectares kg kilograms m3 cubic metre mm millimetre MSW Municipal Solid Waste NSW New South Wales Qld Queensland RIRDC Rural Industries Research and Development Corporation RO Recycled Organics ROMP Regional Organics Management Plan SE South East t tonnes yr year


Appendix 3 Example Farm Enterprise Budget

The following is and example of a Department of Primary Industries Agriculture Farm Enterprise Budget for

potatoes grown for processing (NSW Agriculture, 2001).



Appendix 4 Example Market and Agriculture Surveys

The following surveys can be adapted for your particular enterprise and contains market research questions that

may be considered when consulting for local DPI Agriculture district Agronomist / Horticulturalist and

agricultural enterprises such as orchard growers or grower groups. The survey attached was specifically designed

for peach and nectarine orchard research, however questions can be readily modified to suit other crops.

The surveys can be adapted for use to gain knowledge of the agricultural activities in your region, thereby

allowing prioritisation of potential markets for recycled organics products. The survey can be modified to

include your enterprise contact details and any other questions suitable to your particular industry.

The more detailed survey is targeted at DPI District Horticulturalists or extension field officers, and more

technical agribusinesses. The shorter survey is targeted at smaller growers and regional grower groups.

Use of these surveys as a tool for market research and prioritisation is refered to Section 4 of this guide.

Regional Horticulture Market Research – Detailed Survey Recycled Organics Unit Page 1

Regional Horticulture Survey Characterising peach and nectarine production in your region

What is this about? This survey aims to characterise __________________ production in the _____________ region as relevant for composted mulch product and market development. The survey is targeted at: • Regional DPI District Horticulturalists / Extension Officers, and • Technically oriented agribusinesses.

What is composted mulch and its benefits? Mulch refers to composted products that are used as surface application around plants and are not incorporated into the soil. A range of benefits that can be achieved from use of composted mulch are provided below: • Significantly reduces weed growth, thereby reducing use of herbicides. • Reduces fluctuations in soil temperature, retains soil moisture and reduces plant stress. Reduced

plant stress decreases risk of crop failure and can increase crop yield. • Reduces water evaporation from the soil surface, increasing water conservation and resistance to

drought, particularly in non-irrigated areas. Reduced evaporation in irrigated areas result in more efficient water use and reduction in irrigation water requirements.

• Supply essential macro and micronutrients for plant growth, reducing the use of mineral fertilisers. Nutrients are supplied in a slow release form. Composts make mineral fertiliser programs more effective.

• Significantly reduces erosion thereby preventing land degradation. • Add organic matter to the soil; increase soil organic matte; improve soil structure, water retention,

water infiltration, root penetration and deep drainage; reduce surface crusting; improve erosion control, and other soil properties.

• Can improve soil health and land productivity (improve yield and fruit quality). • Decrease some soil borne pest and diseases. These potential benefits refer to the quality composted mulch products that have suitable chemical, physical and biological characteristics, and are applied at an appropriate rate (i.e. thickness of mulch layer) and timing (as related to cropping cycle).


Definitions

Compost Compost is an organic product that has undergone controlled aerobic and thermophilic (hot) biological transformation to achieve pasteurisation and a specified level of maturity, as specified in the third edition of Australian Standard AS 4454 (2003) Composts, Soil conditioners and Mulches. Pasteurisation refers to the thermal destruction of pathogens and weed seeds that may have been present in the original plant materials. Composts are commonly produced from clean; separately collected plant materials (garden organics, forestry residuals including sawdust or barks), some compost products may be produced from the co-composting of plant materials with other raw materials such as food, crop residues, biosolids, etc. Depending on the physical, chemical and biological characteristics, different composts are suitable for use as soil conditioner i.e. incorporated into the soil, or for surface application as mulch. Mulch refers to composted products that are used as surface application around plants and are not incorporated into the soil. Mulch has at least 70% by mass of its particles with a maximum size of equal or greater than 16 mm as outlined in the Australian Standard for Composts, Soil conditioners, and Mulches (AS 4454, 2003).

Guide to completing survey • Please document your own specific orchard management practices, this will ensure the product

standard is designed to meet the needs of your orchard. • Please tick or cross the answer most appropriate to your enterprise. • Where your answer falls into an “other” category, please provide a specific explanation so we can

understand your needs/issues. • Please note this information will be treated as confidential and will not be distributed. Only

aggregated data will be published.

Who we are

***Insert your facility/enterprise contact details here***


1. Contact details Name: Position Organisation:

Address:

Phone: Fax:

Email:

Signature: Date:

2. Characterisation of a typical peach and nectarine enterprise in the region/area: Question Answer

[ ] Boutique grower [ ] Contract grower [ ] Others (Specify) Main types of growers in the region/area (please number 1 to 3 from 1 - highest to 3 - lowest). [ ] Small grower

(<10 ha) [ ] Medium grower (10-20 ha)

[ ] Large grower (>20 ha)

Number of peach and nectarine trees planted per hectare Distance between rows of peach and nectarine trees (cm) Distance between peach and nectarine trees in a row (cm)

Peach and nectarine cultivation in the region/area.

Approx. irrigated area under peach and nectarine production (ha):

Main peach and nectarine growing period in the region/area (Specify months of the year).

Frost damage to peach and nectarine trees in the region/area.

[ ] Yes [ ] No If yes, when Peak period (Specify which months) Farm activities in terms of labour

and equipment Off-peak period (Specify which months) Irrigation system used (please number 1 to 4 from 1 - highest to 4 -lowest).

[ ] Sprinkler [ ] Others (Specify)

[ ] Drip

[ ] Micro-jet

Source of irrigation water used (please number 1 to 4; 1- highest and 4 - lowest).

[ ] Dam [ ] Others (Specify)

[ ] Bore

[ ] River

Frequency of irrigation across peach and nectarine growing season

[ ] Daily [ ] Others (Specify)

[ ] Weekly

Approximate total amount of irrigation water used per season

Specify per tree or per hectare

Peak irrigation period per season Dominant soil types under peach and nectarine production in the region/area

[ ] Sandy loam [ ] Clayey loam

[ ] Loam [ ] Silty

[ ] Silty loam [ ] Clay [ ] Others (Specify)

Brief description of main soil types under peach and nectarine orchards in the region/area.


3. Specify peach and nectarine varieties and production in the region/area. Variety Marketable yield per

hectare Please rank varieties (dominant or least dominant)

List approximately 6 main peach varieties including early, mid and late maturing varieties. Please write E- for early maturing variety, M- Mid and L –for late maturing variety.

List approximately 6 main nectarine varieties including early, mid and late maturing varieties. Please write E- for early maturing variety, M- Mid and L –for late maturing variety.


4. Identification of farm management practices, schedule and costs: Question Answer Farm management practices (when, why and how do farmers manage the following): Pest management (when, which, what, and how are managed)

Disease management (when, which, what, and how are managed)

Weed management (when, which, what, and how are managed)

Common frost management practices in the region/area.

Are there specific challenges in relation to the followings: Soil management problems in the region/area

[ ] Poor structure [ ] Erosion [ ] Salinity/sodicity [ ] Poor drainage [ ] Acidity [ ] Low organic matter [ ] Other (Specify)

Soil management practices (when, what, why, and how do growers manage)

Do growers test soils? Yes No If yes, how frequently? What soil tests do they usually do? Do farmers use lime (when, how, how much, and how frequently)

Do farmers use any soil conditioners i.e incorporate any products into the soil?

[ ] Yes [ ] No If yes, what and when:

Water management problems in the region/area.

[ ] Water availability [ ] Water costs [ ] Water quality [ ] Other (Specify)

Fruit quality problems in the region/area. Specify, varieties

Fertiliser use (kg per year) N P K Micro-nutrient/s Quantity of fertilisers applied (specify per tree or per hectare)

Timing of main application

Timing of supplementary application

Method of application (soil, foliar, or with irrigation/fertigation)

How do growers determine application of fertilisers?

[ ] Standard practice [ ] Based on foliar tests

[ ] Based on soil test [ ] Other (specify)

Do farmers grow cover crops? [ ] Yes [ ] No If yes, what types?

Where are cover crops grown? [ ] Beneath peach and nectarine trees [ ] Between rows of peach and nectarine trees

What do farmers do with cover crops (remove or leave on row or between rows)? Why?


4. Identification of farm management practices, schedule and costs (continued): Tree pruning Time of pruning

Approximate weight of pruning (per tree or hectare)

What do farmers do with pruning (remove or leave in rows)

Harvesting

Harvesting time

Harvesting method

Do farmers get premium price for early maturity peach and nectarines?

[ ] Yes [ ] No

Do farmers use any mulch products in the region/area?

[ ] Yes [ ] No

If yes, what products Purpose of use [ ] Water retention

[ ] Weed control [ ] Soil improvement

[ ] Reduce use of other chemicals [ ] Increase organic matter [ ] Others (Specify)

Approximate quantity of mulch applied (specify per tree or hectare)

How much mulch costs ($) per hectare When do farmers apply mulch? Why then? How do farmers apply mulch? [ ] Use own machinery [ ] Use a contract spreader

[ ] Use spreader supplied by compost processor [ ] Others (Specify)

Is it easy to apply mulch?

[ ] Yes [ ] No If yes, why: If not, why:

Why farmers chose the product? Do farmers use mulch as a supplement or as an alternative to other products?

[ ] Supplement to other products [ ] Alternative to other products (Specify products replaced)

What benefits does mulch provide to farmers?

[ ] Reduced water use [ ] Reduce use of other chemicals [ ] Better weed control [ ] Increase organic matter [ ] Improve fruit yield [ ] Improve fruit quality [ ] Others (Specify)

Are there any disadvantages or problems in using mulch?

[ ] No [ ] Yes (Specify)

Will farmers continue to use mulch? [ ] Yes [ ] Do not know [ ] No (Specify)


5. Identification of products sold and associated fruit quality objectives and relationship to productivity and income per hectare. Question Answer

Expected peach and nectarine yield

Variety Peach and nectarine quality characteristics High Low

What peach and nectarine quality characteristics will get farmer a better price?

How do farmers assess peach and nectarine quality?

Selling price ($/tonne)

How do buyers assess peach and nectarine quality?

Does peach and nectarine quality vary by changing the following:

Peach and nectarine yield per tree

If, so what is the relationship between peach and nectarine yield & quality?

Nutrients

If, so what is the relationship between nutrients & peach and nectarine quality?

Soil water

If, so what is the relationship between soil water management & peach and nectarine quality?


6. Identification of key orchard management issues and priorities Question Answer Key peach and nectarine orchard management issues and priorities (Please rank/number 1 to 9 in order of priority). If not a significant issue, write N/A.

Management issues [ ] Weed suppression [ ] Improve efficiency of irrigation water use (decrease irrigation) [ ] Decrease plant stress [ ] Decrease erosion [ ] Decrease soil borne pest and disease [ ] Decrease other pest and disease [ ] Increase soil organic matter [ ] Go organic [ ] Others (Specify) Management priorities [ ] Decrease production costs [ ] Increase income [ ] All equally important [ ] Decrease risks of crop failure [ ] Increase farm capital value

7. Identification of receptivity to composted mulch and key barriers to use of composted mulch. Question What are the key barriers to using composted mulch? (Please rank/number 1 to 16 or top 10 in order of priority). If not a significant issue, write N/A.

[ ] Cannot afford [ ] Uncertain of benefits for mulch to the farm [ ] Uncertain of cost [ ] Compost not available locally [ ] Cost of spreading compost [ ] Accessibility of spreading compost [ ] Uncertain about risk of using compost [ ] Uncertain of how to integrate into farm management practices [ ] Do not know where to get quality information [ ] Lack of technical support [ ] Not sure what product is suitable [ ] Do not know where to get compost [ ] Other organic products available [ ] Tried before [ ] No direct benefits [ ] Others (Specify)

What would it take to convince farmers to use composted mulch? (Please rank/number 1 to 8 in order of priority). If not a significant issue, write N/A.

[ ] Demonstrated benefits for crop [ ] Demonstrated benefits for region/area [ ] Access to technical support [ ] Demonstrated cost/benefit advantage (cost effectiveness) [ ] Must be affordable [ ] Introductory discounts [ ] Regional demonstrations [ ] Others (Specify)

Regional Horticulture Market Research – Grower Survey Recycled Organics Unit Page 1

Regional Horticulture - Grower Survey Characterising peach and nectarine production in your region

What is this about?

This survey aims to characterise __________________ production in the _____________ region as relevant for composted mulch product and market development. The survey is targeted at: • Regional grower groups; and • Individual growers.

What is composted mulch and its benefits? Mulch refers to composted products that are used as surface application around plants and are not incorporated into the soil. A range of benefits that can be achieved from use of composted mulch are provided below: • Significantly reduces weed growth, thereby reducing use of herbicides. • Reduces fluctuations in soil temperature, retains soil moisture and reduces plant stress. Reduced

plant stress decreases risk of crop failure and can increase crop yield. • Reduces water evaporation from the soil surface, increasing water conservation and resistance to

drought, particularly in non-irrigated areas. Reduced evaporation in irrigated areas result in more efficient water use and reduction in irrigation water requirements.

• Supply essential macro and micronutrients for plant growth, reducing the use of mineral fertilisers. Nutrients are supplied in a slow release form. Composts make mineral fertiliser programs more effective.

• Significantly reduces erosion thereby preventing land degradation. • Add organic matter to the soil; increase soil organic matte; improve soil structure, water retention,

water infiltration, root penetration and deep drainage; reduce surface crusting; improve erosion control, and other soil properties.

• Can improve soil health and land productivity (improve yield and fruit quality). • Decrease some soil borne pest and diseases. The potential benefits refer to the quality composted mulch products that have suitable chemical, physical and biological characteristics, and are applied at an appropriate rate (i.e. thickness of mulch layer) and timing (as related to cropping cycle).


Definitions

Compost Compost is an organic product that has undergone controlled aerobic and thermophilic (hot) biological transformation to achieve pasteurisation and a specified level of maturity, as specified in the third edition of Australian Standard AS 4454 (2003) Composts, Soil conditioners and Mulches. Pasteurisation refers to the thermal destruction of pathogens and weed seeds that may have been present in the original plant materials Composts are commonly produced from clean; separately collected plant materials (garden organics, forestry residuals including sawdust or barks), some compost products may be produced from the co-composting of plant materials with other raw materials such as food, crop residues, biosolids, etc. Depending on the physical, chemical and biological characteristics, different composts are suitable for use as soil conditioner i.e. incorporated into the soil, or for surface application as mulch. Mulch refers to composted products that are used as surface application around plants and are not incorporated into the soil. Mulch has at least 70% by mass of its particles with a maximum size of equal or greater than 16 mm as outlined in the Australian Standard for Composts, Soil conditioners, and Mulches (AS 4454, 2003).

Guide to completing survey • Please document your own specific orchard management practices, this will ensure the product

standard is designed to meet the needs of your orchard. • Please tick or cross the answer most appropriate to your enterprise. • Where your answer falls into an “other” category, please provide a specific explanation so we can

understand your needs/issues. • Please note this information will be treated as confidential and will not be distributed. Only

aggregated data will be published.

Who we are

***Insert your facility/enterprise contact details here***


1. Contact details Name: Position Organisation:

Address:

Phone: Fax:

Email:

Signature: Date:

2. Characterisation of your enterprise: Question Answer Enterprise type Boutique grower Contract grower Others (Specify) Enterprise scale Small grower

(<50 ha) Medium grower

(50- 100 ha) Large grower

(>100 ha) Total area under peach and nectarine production (ha) Total number of peach and nectarine trees (thousands) Number of peach and nectarine trees planted per hectare Distance between rows of peach and nectarine trees (m) Distance between peach and nectarine trees in a row (m)

Scale of peach and nectarine production

Irrigated area under peach and nectarine production (ha)

Which markets do you grow for?

Fresh Dried fruit Juice Tin food Others (Specify)

Do you get premium price for early maturity peach and nectarines?

Yes No

Irrigation system used Sprinkler Others (Specify)

Drip

Micro-jet

Source of irrigation water used

Dam Others (Specify)

Bore

River

Frequency of irrigation across peach and nectarine growing season

Daily Others (Specify)

Weekly

Approximate total amount of irrigation water used per season

Specify per tree or per hectare

Peak period (Specify which months) Farm activities in terms of labour and equipment Off-peak period (Specify which months)

Sandy loam Loam Silty loam Clay Dominant soil types under peach and nectarine production

Clayey loam Silty Others (Specify)

Do you use hail net on peach and nectarine orchards?

Yes No

Other hail or frost management practices?


3. Specify peach and nectarine varieties and production on your farm.

Variety Age (years) Marketable yield per ha Area planted (ha)

Youngest Oldest List 4 to 6 main peach varieties including early, mid and late maturing varieties. Please write E- for early maturing variety, M- Mid and L –for late maturing variety.

List 4 to 6 main nectarine varieties including early, mid and late maturing varieties. Please write E- for early maturing variety, M- Mid and L- for late maturing variety.


4. Identification of farm management practices, schedule and costs: Question Answer Farm management practices (when, why and how do you manage the following?):

Poor structure Poor drainage

Erosion Acidity

Salinity/sodicity Low organic matter

Soil management problems on my farm

Other (Specify) What do you do to manage soils? When and how do you manage soils?

Why do you need to manage soils? Do you test soils on your farm? Yes No If yes, how frequently? What soil tests do you do? Do you apply lime? Yes No If yes, when, how, how much, and how frequently

Do you use any other soils conditioners i.e. incorporate products in to the soil?

Yes No If yes, what and when?

Water availability costs Water quality Water Water management problems on my farm Other (Specify) How do you manage frost at farm? Fruit quality problems on my farm Specify, variety

Fertiliser use (kg per year) Nitrogen Phosphorus Potassium Micronutrient/s Quantity of fertilisers applied (specify per tree or per hectare)

Timing of main application Timing of supplementary application

Method of application (soil, foliar or with irrigation/fertigation)

How do you determine application of fertilisers?

Standard practice Based on soil test Based on foliar tests Other (specify)

Do you currently use or have used in the past any mulch products?

Yes No

If yes, what products Purpose of use Water retention

Weed control Others (Specify)

Increase organic matter Reduce use of other chemicals Soil improvement value

Quantity of mulch applied Specify per tree or hectare

How much mulch costs $ per ha How do you apply mulch? Use own machinery Use a contract spreader

Use spreader supplied by compost processor Others (Specify)

Do you use mulch as a supplement or as an alternative to other products?

Supplement to other products Alternative to other products (Specify products replaced)

Are there any problems in using mulch?

Yes (specify) No


5. Identification of key peach and nectarine production issues and drivers for change. Question Answer Have you made changes recently (in last 5 years) such as change in variety, yield or quality?

What were the reasons for such change/s?

Are you planning to make changes?

What requires you to change the following?

Peach and nectarine varieties

License/regulatory change Food quality standards

Economic viability Market requirements

Others

Peach and nectarine yield Food quality standards Market requirements

Quality assurance Higher returns

Others

Peach and nectarine quality?

Food quality standards Market requirements

Quality assurance

Others

What would you require to implement any change in the future and what time frame will be required?

6. Identification of key orchard management issues and priorities Question Answer Key peach and nectarine orchard management issues and priorities (Please rank/number them 1 to 9 in order of priority). If not a significant issue, write N/A.

Management issues Weed suppression Improve efficiency of irrigation water use (decrease irrigation) Decrease plant stress Decrease erosion Decrease soil borne pest and disease Decrease other pest and disease Increase soil organic matter Go organic Others (Specify)

Management priorities Decrease production costs Increase income All equally important Decrease risks of crop failure Increase farm capital value


7. Identification of receptivity to composted mulch and key barriers to use of composted mulch. Question What are the key barriers to using composted mulch? (Please rank/number 1 to 16 or top 10 in order of priority). If not a significant issue, write N/A.

Cannot afford Uncertain of benefits for mulch to the farm Uncertain of cost Compost not available locally Cost of spreading compost Accessibility of spreading compost Uncertain about risk of using compost Uncertain of how to integrate into farm management practices Do not know where to get quality information Lack of technical support Not sure what product is suitable Do not know where to get compost Other organic products available Tried before No direct benefits Others (Specify)

What would it take to convince you to use composted mulch? (Please rank/number 1 to 8 in order of priority). If not a significant issue, write N/A.

Demonstrated benefits for crop Demonstrated benefits for region Access to technical support Demonstrated cost/benefit advantage (cost effectiveness) Must be affordable Introductory discounts Regional demonstrations Others (Specify)

Documents

Guide to Researching Agricultural Markets for Recycled ...catchmentsolutions.com.au/files/2014/11/rou-mkt-wkbook.pdf · Recycled Organics Unit Guide to Researching Agricultural Markets