Using Agribusiness to Facilitate an Effective Information Supply Chain
November 2009
Key messages
 R&D outputs must be delivered in
language that is relevant to Agribusiness
and End Users – FarmPlus is a key tool
 Agribusiness is a key emerging conduit
for transfer of information from RD&E
providers to End Users
 Effective engagement between Research
and Development Corporations (RDCs)
/ R&D providers and Agribusiness
requires confirmation of reciprocal
benefits and appropriate terms of
engagement.
Using Agribusiness to Facilitate an
Effective Information Supply Chain
from RDCs to Growers
Contemporary Agribusiness encompasses consultants, trainers, accountants,
associations, producer organisations, farmer directed groups, product resellers and
their product suppliers, privatised and semi-government organisations, banks,
advisers on insurance and superannuation, marketers, seed companies, etc. It has
been estimated that there are approximately 1300 private consultants operating in
rural Australia Coutts et al (2005) and it is noted that there are in excess of 1200
national company personnel Stone (pers comm.)
Stone (2005) noted that Agribusiness is an emerging conduit for the transfer of
information from R&D organisations. It has largely supplanted the previous
government extension role and is increasingly undertaking R&D work itself.
In this way, Agribusiness has a key role in the feedback loop from End Users back
to Researchers and decision makers. The Agribusiness Knowledge Framework
below demonstrates this emerging role of the Agribusiness adviser / consultant….
as a Synthesiser of, and a Conduit for information between R&D organisations
(Information Suppliers) and Farmers/Growers (Information Users).
Quality and
Quantity of
Information
INFORMATION
SYNTHESISERS AND
CONVEYERS
Quality and
Quantity
Agribusiness Advisors
INFORMATION
USERS -
Mode of
Delivery
INFORMATION
SUPPLIERS -
Industry – Farmers
and Land Managers
Information
RDCs, State
Agencies, etc.
R&D
Managers,
Brokers
and Doers
of R&D
Mode of
access to
the info.
Future R&D
priorities
Advice
Technical Needs
and Priorities
of Growers
and Advisors
There are benefits for all
Stakeholders…
An effective supply chain helps…
R&D Organisations – to promote
research outputs, meet key
adoption performance indicators
(KPIs) and encourage adoption of
new practices and technologies
Agribusiness – by facilitating
access to sources of relevant,
cutting-edge information allowing
them to maintain their knowledge
base and maximise their value to
clients
End Users – such as Growers,
whose enterprise and natural
resource sustainability ultimately
relies on the transfer of new
information from the RD&E
providers
All Stakeholders – to have input to
priority setting of RD&E providers
through a feedback loop
Rural Industry – to remain
sustainable and profitable through a
more dynamic process of RD&E.
Applied
Needs
Feedback
Phone: 61 7 4615 2255 Mobile: 0408 063 229 Fax: 61 7 4615 2330
E-mail: [email protected] PO BOX 7642 TOOWOOMBA MC Qld 4352 AUST
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Using Agribusiness to Facilitate an Effective Information Supply Chain
November 2009
Project Background
Stone’s earlier research indicated that although Agribusiness advisory
processes already operate effectively – a key impediment for Agribusiness is the
ready access to relevant, robust, scientifically based R&D outcomes.
This CVCB funded project ‘Maximising the connection between Research,
Development and Extension RD&E providers and Agribusiness’ – commenced
in August 2005. The final project report was published in 2009. The project
objective was to develop an effective strategy for future interaction between
RDCs and Agribusiness to maximise the capacity of the Agribusiness sector
to transfer relevant R&D outcomes to Growers.
The project confirmed that farmer innovation is driven by access to cutting
edge data and technologies. Therefore any access limitations to such data /
technologies, through Agribusiness Advisers, automatically became a key
impediment facing Growers. This limitation was the project focus.
During the study it became apparent that the publically funded R&D
community needed to learn more about how Agribusiness Advisers access
information. This necessitated the development of a common framework for
interaction. Such an interaction process would need to be based on
achievement of defined key performance indicators that could demonstrate
success.
Key Findings

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The Agribusiness sector is a key information delivery, advisory and
practice change agent for the most innovative and productive Grower
segments.
Agribusiness and RDCs seek to engage with each other – they simply
don’t know how to.
Limitations – which affect the capacity of Agribusiness to act as an
effective information conduit to end users such as Growers, need to be
understood by R&D providers.
Agribusiness is evolving in its extension role. This provides an
opportunity for RDCs / R&D agencies to engage with them and support
that process, while addressing their own accountability to funding
agencies to demonstrate delivery and adoption of R&D outputs.
Of the Grower/Farmer clients surveyed in this project – see box, the majority
of clients were A (34%) and B (33%) class clients with the remaining 33% of
clients at C and D. Advisers reported that they preferred A and B clients, to C
and D clients and would actively pursue that mix for profitability and job
satisfaction reasons. These are the clients who generally implement their
advice and recommendations and are their main source of income. Similarly,
they also preferred clients from the corporate and professional categories. It
can be expected that existing commercial drivers will continue to focus
Agribusiness advisers on the more profitable and motivated clients.
This reinforces the importance and value of fostering the connection between
RDCs and Agribusiness to fulfill the information needs of the most profitable
groups of Growers to improve overall industry sector performance.
Barriers and Contextual Differences
During this project it became apparent that there was contextual disparity – a
cultural divide – between the R&D organisations and the Agribusiness sector.
The R&D organisations have strong, systems based public accountability
whereas Agribusiness is reactive, and commercially and client focused.
Two key issues revolved emerged – Commercial Benefit from access to R&D
Phone: 61 7 4615 2255 Mobile: 0408 063 229 Fax: 61 7 4615 2330
E-mail: [email protected] PO BOX 7642 TOOWOOMBA MC Qld 4352 AUST
Project Methodology
The key Stakeholders in this information
supply chain were: Growers who are the
ultimate users of R&D outputs;
Agribusiness Advisers that act as a key
conduit to Growers; and RDCs that are
primary strategists and funders of rural
RD&E.
A combination of interviews, discussion
groups, surveys, field visits and one-on-one
contacts with all stakeholders was
conducted to identify issues and common
factors.
Engagement of the two target
audiences by the RDCs
encompassed knowledge of how
Agribusiness and Growers
seek their information delivery.
It also necessitated development
of appropriate terms of
engagement in the supply chain –
which would recognize differing
drivers and needs of each group –
and determine Terms of Trade.
Growers Defined
The project created Agribusiness–based
definitions of Grower client categories:
‘A’ class clients / Growers – are the top
highly profitable Growers in their
discipline and are generally proficient
farm business operators and innovators
‘B’ class clients / Growers – are actively
moving towards the ‘A’ class and follow
the lead of ‘As’
‘C’ class clients / Growers – have
operations that are largely static in terms
of innovation and development – and
are regarded as traditionalists
‘D’ class clients / Growers – are
expected to exit the industry
Peri–urban / lifestyle – mostly
professionals and city dwellers with
smaller weekend farms
Corporate farms – aggregated family
farms and corporate entities like super
funds
Next generation farmer – young
professionals returning home.
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Using Agribusiness to Facilitate an Effective Information Supply Chain
outputs and Timeliness of delivery. RD&E personnel perceive that
‘Agribusiness can make money’ from access to and the use of R&D outputs,
while Agribusiness perceives the need for R&D outputs to be more ‘timely’.
However RDC levy payers (and tax payers) commission R&D to generate
levy payer business profits and industry development to generate industry
profits and wealth for the wider economy. The R&D organisations of today
are also highly focused on generating external income. The Agribusiness
sector focuses on meeting client needs in as timely a manner as possible –
strong relationships are a cornerstone of their long term business. However
RDCs are strongly driven by ‘process’ with a focus on accountability for the
use of public/industry funds. Agribusiness argues that this compromises the
timely nature of R&D work and delivery of outcomes – both interim and
final findings.
These emerging issues lead to further identification of drivers and needs of
stakeholder groups involved in the project.
Stakeholder
Growers
Definitions
segments
Growers – broadacre in
grains, meat &
livestock, sheep &
wool, cotton & dairy
Growers in more
intensive industries –
horticulture, sugar and
wine/grapes
Growers in highly
intensive industries of
pigs, eggs, etc.
Agribusiness Suppliers of product
Resellers
RDC
Drivers/needs
Raw information and
synthesised information
Practical and economic
take home messages
for decision–making
A fit with their goals
and key drivers –
business, ROI,
personal, family and
lifestyle
Advice – mostly from
agribusiness leading to
adoption and change
Long-term client
relationships
Meeting client goals
and drivers
Access to information
November 2009
Common Ground
It was established that common ground
exists between Agribusiness and RDCs
regarding their joint requirements:
 To facilitate access by Agribusiness
to R&D information – for delivery to
Growers
 To deliver practical and relevant
R&D outputs associated with needs
of the End User – recognising
Grower segmentation, their industry
sector and geographic location
 To seek input from Agribusiness in
setting future priorities for R&D
 To encourage Agribusiness and
Growers to assist in trials/R&D
work
 The strong desire of Agribusiness to
engage with R&D providers and
provide a strong feedback
mechanism from Growers into
RDC / RD&E priority setting; that is
regarded as a highly desirable process
 The joint focus on practice change –
through the adoption of new
technologies by Growers thereby
creating financial benefits for the
individual enterprise and wider
industry / community benefit.
Private consultants –
agronomists,
marketers
Specialist management Delivery in terms they
consultants
relate to – relevant to
their clients too
Dealers
Ability to synthesise
information into advice
and products
Technical associations Relationships=profits=$
change hands
Professionals –
Bankers/accountants
Sector specific
R&D strategic planning
Operates mostly in
silos
C ollaborate on key
industry projects
Manage R&D
Show benefits and ROI
to stakeholders
Extension, Adoption
and Practice C hange as
an emerging issue
Increase $ returns to
growers
Triple bottom line
Phone: 61 7 4615 2255 Mobile: 0408 063 229 Fax: 61 7 4615 2330
E-mail: [email protected] PO BOX 7642 TOOWOOMBA MC Qld 4352 AUST
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Using Agribusiness to Facilitate an Effective Information Supply Chain
November 2009
The Information Access Point
A clear overarching issue was the importance of common access, by Agribusiness and
Growers, to R&D information in appropriate and relevant formats. It is clearly
a joint priority and one which could potentially initiate, facilitate and foster
meaningful engagement between RDCs and Agribusiness.
The emerging proposition during the project was to develop a Central Information
Repository or (central access point) in the R&D information supply chain, in which
R&D information from RDCs could be housed and then accessed by Agribusiness
and End users. Such an access point should have a feedback capacity – from Grower
to Agribusiness to R&D organisations, and from Grower and Agribusiness jointly
back to the R&D organisations. Below is a representation of the ideal web based
Central Information Repository process.
Public access only to Plain
English Executive Summary
Access by authorised people
The Ideal Central
Information Repository



Password protected for
Australian users only
Locally relevant findings
including trials /
farmer experiences
‘Blue Sky’ level
Type of R&D Outputs
Regionally relevant R&D
results / findings
with practical outcomes
CENTRAL REPOSITORY
‘On-farm’ level
Local Relevance

Generates benefits
(links to a value proposition)
for all stakeholders
Focuses on Agribusiness
as the primary client of the
repository
Is marketed to End Users as
a place where ‘Agribusiness
can get access to
unprocessed knowledge and
summarised information –
that directly meets your
needs’
Would be associated with
the AANRO database –
which was regarded as a
‘storage warehouse’.
Experienced Advisors
> 10 years
National, State
or generalist
data / findings
Type of User –
not intended for farmers
Inexperienced Advisors
Length and technical
rigour of R&D findings
Plain English –
Short 200 word
Executive summary
Concise technical
summary –
500 to 1000 words
Scientific report –
high rigour level
R&D project output
The Central Information Repository – a supply chain solution
The development of such an access point or information repository was identified as
being a major value–adding proposition that could benefit rural industry overall, as
well as individual RDCs and Agribusiness.
The commercial entity ‘FarmPlus’ was proposed as a suitable model for this purpose.
Specific attributes of the FarmPlus product were:

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
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Its ability to be an in–store information shop that advisers and growers can use
readily
Its ability to be used on–the–road by agronomists / advisers – on low ‘line
speeds’
Its capacity to be used ‘at the farm table’ during advisory sessions
Its search capability which allows it to separate and sort information
It provides an access point for detailed information and/or for summary
information
It can interface with AANRO and act as the retailer to deliver direct to
Agribusiness Advisers
Potential 60-70% coverage of Growers – those who use Agribusiness Advisers
An active rather than static process for interaction between Growers,
Agribusiness Advisers and potentially Researchers.
The next stages of implementing FarmPlus as an information delivery tool were
defined.
In summary it was proposed that the FarmPlus model could be the ‘talking point’ or
tool to commence more formal RDC and Agribusiness engagement using a tangible
product to act as an effective information supply chain solution.
Phone: 61 7 4615 2255 Mobile: 0408 063 229 Fax: 61 7 4615 2330
E-mail: [email protected] PO BOX 7642 TOOWOOMBA MC Qld 4352 AUST
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