Research Proves its Worth in the Field
6 Jun 2008
By Susan McNair, Currie Communications
 New oaten hay varieties released in 2004-05 have been snapped up by growers and are demonstrating the rewards to be reaped from strategically targeted research and development.
Peter McCormack, manager of Industry Development and Commercialisation for SARDI where the varieties were developed, says in 2005 alone, the net benefits of the three new varieties were estimated at an additional $119 million to
industry.
“Adoption rates are around 35% for domestic use and as much as 75% in export hay. We are proud of the rapid uptake of the new varieties by growers,
processors and exporters,” Mr McCormack says.
“With these striking adoption rates and a higher share of total hay production reaching export quality and consequently price premiums, it is likely the 2005
figure is significantly higher now, and will continue to rise.”
Funding for research and development can produce a wide range of positive industry returns. Mr McCormack says this is especially true of improvements
gained in plant varieties where adoption has been substantial.
“Positive economic outcomes include quality improvements and higher yields as a result of increased disease resistance, good stem diameter and plant colour.”
“We release new varieties that offer improvements over existing ones.” He says the current program is soon to release another three varieties, and that such practical beneficial research provides the industry with even more maturity,
agronomic and quality options.
“The demand for oaten hay is growing. Future varieties that are drought tolerant is the next challenge for the National Oat Breeding Program,” he says.
Nevertheless, an insecure funding base threatens future breeding of oaten hay varieties and chairman of the Australian Fodder Industry Association Lyall Schulz is concerned about the implications.
“With an increasingly insecure funding base, it is highly unlikely that new drought
tolerant varieties can be developed. If funding continues to diminish, there could be a discontinuation of the oat product development work being undertaken. It will be to the detriment of our industry,” he says.
Mr Schulz encouraged those heading up the fodder industry to contribute to the debate about future funding by attending the Securing fodder for our future:
Industry Summit on June 11.
Murray Smith, partner at Balco Limited, Australia's leading processor and exporter of high grade oaten hay agrees with the benefits of research. He says the expanding domestic and overseas markets are dependent on supplying top quality palatable hay.
“We must recognise the needs of our clients. We invest heavily into technological and logistical improvements to ensure that we remain internationally
competitive.”
“Top quality fodder is necessary to our success and maintaining close relationships with local growers who can deliver a reliable, supply is vital.”
“Fodder producers in Australia need to gain greater yields to ensure they maintain gross margins amid rising production costs. This can only be achieved with new varieties that provide continual improvements.”
Balco sights Asia as a vast and growing market. It already supplies Japan and Taiwan and has recently sent an inaugural shipment to Shanghai.
Mr Smith says the Chinese Government is dedicated to introducing free milk each
day for all children in schools. Consequently, the opportunity to provide quality oaten hay to the Chinese dairy sector is a valuable future market for Australian fodder producers.
“Demand for quality oaten export hay will remain strong in the foreseeable future and the industry must rise to this challenge,” he says.
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