Success Factors for New and Emerging Industries
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Success Factors for New and Emerging Industries. Dr Roslyn Prinsley General Manager New Rural Industries. The history of Australian agriculture is a history of new and emerging industries. Outline. What is a new and emerging industry? Why new and emerging industries?

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Success Factors for New and Emerging Industries

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Success Factors for New and Emerging Industries

Dr Roslyn Prinsley

General Manager

New Rural Industries


The history of Australian agriculture is a history of new and emerging industries


Outline

  • What is a new and emerging industry?

  • Why new and emerging industries?

  • Success factors for new and emerging industries


What is a new and emerging industry?

  • Present in Australia - now an organised industry

    • Goat milk, olives

  • New to Australian production

    • Alpaca, wasabi

  • Indigenous to Australia - unfamiliar to market

    • Crocodiles, native foods


Why new industries?

Pressure on Australian agriculture to diversify

  • declining terms of trade

  • increasing competition

  • water reform

  • climate change


Why new industries?

New industries offer Australia

  • increased grower profitability

  • sustainable production alternatives

  • resilient farming systems

  • protection of genetic resource through farming

  • sustaining rural communities

  • value added products

  • regional ‘eco’ style tourism (eg coffee, crocodiles)


Why new industries?

Importance of new rural industries

  • Multiple enterprises = 70% of ag GVP

  • Increasing as a % of total agricultural GVP


  • ‘Other’ industries as a % of total agricultural GVP

  • 16% in 1960 (Ag GVP $2.7 bil.)

  • 29% in 2005 (Ag GVP $35.6 bil.)


Exports

  • 1970 - products other than grains, sugar, meat and wool made up only 17 per cent of exports

  • 2007-08 “other industries” nearly 50 per cent


However

New industries are

  • long-term

  • high risk

  • market failure

    Some will be a

  • local/regional success eg coffee

  • national success eg canola

  • failure


Which ones will succeed?

Picking winners is difficult.

Need diversity

  • resilience - climate change, market volatility

  • plan for failure

    Need a range to suit different

  • regions

  • farming systems and types

  • farmer skills and capability


Success factors for new industries

  • customers and marketing

  • competitive advantage

  • capability to consistently deliver quality

  • well functioning supply chain

  • effective leadership and strategic planning

  • business proficiency and access to sufficient capital

  • well-planned, well-managed, adequately funded research and development


Think strategically and set goals

  • strategic planning framework /SWOT

  • prioritise investment decisions

  • true purpose for starting a new rural industry

  • criteria for success

  • expectations about how long it will take


Research the market

  • Domestic or export?

  • Size? Growth rate?

  • Factors driving market trends?

  • Market segments?

  • Competitors?

  • Competitive advantage?

  • Customers?

  • Access to market information?


Develop marketing strategy

  • Understand value proposition

  • Position in market / differentiate

  • Determine strategic price point

  • Identify supply chain partners

  • Decide how to promote

  • Consider collective marketing approaches


Supply chains and value adding

  • Product to market - how?

  • Partners in supply chain?

  • Cost advantages?

  • More sales at lower prices, or improving quality for more sales at same price?


Overcome production challenges

  • Optimise yields to achieve profitability?

  • Evaluate germplasm?

  • Market requirements for quality?

  • Prioritise production challenges?

  • Who can help?

  • Focus research on commercial outcomes.


Manage research and development

  • R&D plan

  • Meet production, processing, marketing challenges

  • Prioritise on profitability

  • Where to access skills to solve problems?

  • Source required funds?

  • Communicate research outcomes to industry.


Organise your new industry

  • Include members of supply chain in industry association

  • Seek natural leader to chair

  • Ensure broad range of skills and industry viewpoints on Board

  • Seek professional advice for structure/funding of representative organisation


Establish effective communication and support structures

  • Honest communications strategy - inform all stakeholders

  • Counsel new entrants

  • Keep industry website up to date

  • Offer opportunities to engage industry members in development activities


Develop quality standards and codes of practice

  • Uniform product description, labelling and product quality standard

  • Industry code of practice

  • Disseminated standards and code of practice across the industry


Case studies

  • Olives

  • Crocodiles

  • Native foods

  • Different stages of development


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