Farming systems and production management

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Integrated value chain scenarios for enhanced mill region profitability
(2005) Thorburn, PJ; Archer, AA; Hobson, PA; Higgins, AJ; Sandel, GR; Prestwidge, DB; Andrew, B; Antony, G; McDonald, LJ; Downs, P; Juffs, R
The Australian sugar industry has recently faced an unprecedented cost-price ‘squeeze’ from a run of poor seasons and the collapse of the sugar price. As a result there is impetus to consider diversifying products from the raw sugar production value chain. The chain is complex however, and alternative products will necessitate substantial changes to the chain, the impacts of which will be difficult to predict a priori. Modelling offers insights into the impacts of, and benefits from changes to value chains. Analyses of the chain should, ideally, be conducted in enough biophysical detail to allow the logistical challenges to be properly analysed. The application of these modelling techniques in a participatory environment would allow groups within mill regions to more thoroughly evaluate diversification options of their sugar value chains in their region, and so move forward with more confidence and greater understanding than occurs with other approaches. While participatory modelling has previously been undertaken for issues in one or two sectors of the Australian sugar value chain, it has not been attempted for the whole of the chain before. In this project we aimed to facilitate the improved economic efficiency of the sugar industry value chain through developing and participatively applying an innovative modelling capability that allowed industry groups to identify and evaluate sugar value chain diversification options. The project was conducted in partnership with all sectors of the Burdekin and Maryborough industries. The first phase of the project entailed working with the regional groups to identify and prioritise potential diversification options for their region. In both regions whole crop harvesting to maximise electricity co-generation was identified as the highest priority venture for consideration in the project. In the Burdekin, two contrasting mill regions (Invicta and Pioneer) were analysed to maximise the relevance of the results to the region.
Increasing the capacity to identify and action value chain integration opportunities
(2005) Higgins, A; Archer, AA
This report provides a review of the past value chain sugar research in Australia and other countries, and formulates key messages that the Australian industry can learn upon for future value chain activities. Compared to farming systems research, value chain research in sugar is not widely understood in the Australian industry, nor are the benefits of its existing research activities or new opportunities. In this document there are 11 current and past Australian projects reviewed that addressed value chain issues. An additional five projects from overseas sugar industries are also reviewed. Attitudes towards value chain research have been captured through focus groups and interviews in Maryborough and the Herbert, which are also summarised in this report. Value chain research in the Australian sugar industry has evolved substantially since its beginnings in 1997. Significant changes are in terms of learning from earlier projects incorporating their successful facets, and the increased value chain opportunities being addressed. Evolution of value chain issues and breadth of chain addressed is due to a growing acceptance within the industry of the change to achieve the benefits, but also external forces which create new priorities. This evolution is illustrated in Table 1 for the Australian sugar industry projects from 1997 to 2005, with the projects in ascending chronological order or start date.

Farming systems and production management

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