and Getting the Business Model Northern Australia · peanuts a healthier option, increases shelf...
Transcript of and Getting the Business Model Northern Australia · peanuts a healthier option, increases shelf...
Peanuts and Getting the Business Model Right for Northern
AustraliaGraeme Wright and Lionel Wieck
Presentation Outline
Overview of PCA and Australian Peanut Industry
PCA Katherine NT Peanut Project 2002‐2009 Diversification of Peanut Production Base
Lessons Learnt from NT Peanut Project
Research and Development Peanut and Maize Variety Development Optimal Cropping Systems and Rotations Update on PCA Peanut Breeding Program
Summary
Overview
• Established in 1924, PCA is Australia’s leading processor and supplier of Hi Oleic peanuts
• Located in key Australian peanut growing regions with operating facilities at Kingaroy and Tolga in Queensland
• PCA’s assets include a valuable gene pool and cultivar breeding program, and water licences in the Bundaberg region
• Focused strategy on value adding peanut products and marketing into high value niche markets
Kingaroy
Tolga
Snapshot of PCAPrimary services Growing services, peanut drying, shelling,
blanching, roasting, and peanut marketing
Average peanut tonnages
Approximately 25,000 tonnes intake
Facilities Kingaroy, Tolga, Gayndah
Number of FTE & casuals
Up to 250
Corporate structure
Public unlisted company, 877 shareholders
Leading Australian supplier and processor of Hi Oleic peanuts..........
• Hi Oleic peanuts have an oleic acid ratio that more closely resembles that of olive oil. This naturally bred characteristic makes Hi Oleic peanuts a healthier option, increases shelf life and commands a premium to mid‐oleic varieties of peanuts
• PCA’s processing throughput averages 25,000 tonnes of peanuts per annum, or approximately 60% ‐ 70% of average Australian peanut production (dependant on dryland production)
PCA supplies the following peanut products:
• Peanuts in‐shell
• Peanut kernels (raw, blanched, splits, gourmet)
• Granulated
• Peanut paste
• Roast peanut fines
• Peanut oil
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Operating in key areas of the value chain
SEED GROWING INTAKE PROCESSING SELLING
Selecting Characteristics Preparing Soil Weighing Blanching Flavouring
Cross Breeding Planting of Seed Drying Roasting Packaging
Testing ‐ Glass house Fertilizing Sample Grading Separation of Splits Marketing
Field Testing Spraying for weeds Aflatoxin Testing Xray Sorting Warehousing
Propagation of Seed Spraying for insects Cleaning Colour Sorting Distribution
Release of Commercial Qty Spraying for diseases Foreign Material removal Salting
Turning the bushes Storing Flavouring
Threshing the peanuts Shelling Packaging
Cleaning Grading by size Transporation
Drying
PCAFarmer
D i r e c t i o n o f v a l u e c h a i n
Blanched Product
• Approx 85% of raw kernels are blanched• Approx 60% Peanut Butter and 40% Snack and Confectionary
New Snack Food under PCA’s own brand “Kingaroy Gold”
www.kingaroygold.com.au/
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PCA Katherine NT Peanut Project 2002‐2009
B
NQ NQ
B
Pre‐1980’s
Regional Change in Peanut Production
Late 1980’s ‐ 2005
• Peanut farming commenced in Burnett and N. Qld in early 1900’s
• Mainly based on rainfed production, with large variability in production
• This created significant difficulties with sustainable marketing of product domestically and overseas
Reasons for Change in Production Base?
Burnett Region SEQ – Getting drier?
Climate Variability/Change
Katherine Region NT
Getting wetter!
Reasons for Change in Production Base?
Climate Variability/Change
NT Development
Florina Road – 500ha Pilot Farm ( Purchased 2002)
Produced (in year‐2008) up to: 4,000mt Peanuts2,500mt Corn12,000mt Fodder
NT Development
Taylors Park ‐ 12,000ha Farm ( Purchased 2007 )
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Lessons Learnt from NT Peanut Project
“VISION WAS RIGHT...
EXECUTION WAS POOR”
Major Lessons Learnt: Wrong Business Model
o In situation where Peanuts had to “pay all the bills”
o Hay market then not as viable as now with improved cattle market
o Return side of ‘non‐peanut’ business was not viable
o Project needed large capital investment (bores, 46x pivots, elec) and was ultimately under‐capitalised, with company taking on too much debt
o Project proved we could grow high yielding, excellent quality peanuts, and built on R&D in NT and Qld over 10+ years
Major Lessons Learnt: Peanut Needs to be Part of Cattle Prodution System
o We see Peanut as being a rotational legume in Fodder Production System for Cattle in the NT
o Peanut hay has very high nutritional value (12% protein, high digestibility. Lucerne equivalent)
o Cleanings from peanut (LSK, small pods) contain very high protein (~40%), high oil and excellent cattle feed.
o Peanut meal, a by‐product of oil extraction, also has very high nutritive vale ( 42% protein)
o Project proved we could grow high yielding, excellent quality peanuts, and built on R&D in NT and Qld over 10+ years
Major Lessons Learnt: Peanut as a Winter Crop
o Winter Irrigated Production shown to produce highest yield and best quality
o Out of season intake attractive for PCA for optimal plant utilisation, with potential price premiums for winter product
o Minimal foliar disease pressure and good quality hay productiono Need to plant peanuts by early‐late March – Key Priority, as pod load set
prior to cool weather, then pod filling occurs in warmer Aug‐Sept, with harvest in mid‐ Sept (good drying conditions; no rain)
o Wet season cropping for hay/fodder/silage production using millet/forage sorghum/cavalcade (Nov – Feb)
o Wet season hay crops very easy to establish after peanut hay baling
Major Lessons Learnt: Wet Season Peanuts Are Too Riskyo Climatic variability for planting and harvesting is too great o Foliar disease pressure is intense due to high humidity, with very high
level of fungicide management requiredo Aflatoxin risk is very high, especially with end of season drought, high
temps and wet harvesto Weed control is difficult and timing has to be perfecto Greater erosion potential
Major Lessons Learnt: Winter Rotational Optionso Research from other regions shows peanut responds to rotational crop
break (eg sugar – peanut system)o Maize is a good option, and excellent yields have been achieved in the NT
with normal, gritting, waxy and popcorn typeso Maize can be utilised locally for cattle fattening, or for specialty maize
markets in S Aust, especially when MIA lacks watero Window for maize is June – Oct. Any later and Aflatoxin risk is very high
(high temperatures)
1 in 1 1 in 2 1 in 3 1 in 4 1 in 5
Pod Yield (t/ha)
NT Peanut and Corn Variety Testing + Farming System R&D
NT Govt, Qld DAF and PCA have successfully conducted a number of peanut and maize variety 2000 ‐ 2015 , identifying adapted varieties for NT
conditions
Chifley
Fadden Middleton
D107-5-p
5-2
Wheeler Deakin
Conder
D117-6-p
4-1
D117-1-p
1-4Holt
D57-1-p
2-10
NC 7 McM
ahon
D48-4-p
4-3
Forde
Menzies
Streeton SO95 Lyo
ns
0
1
2
3
4
5
6
7
8
9
Yiel
d in
t/ha
Varie ty
Jum bo O ther kerne l Shell
Example: Peanut‐maize production simulations for Katherine
Peanut Crop Simulation Models
DAFFQ/PCA have developed models to test various cropping system scenarios for Northern Australian conditions
• Grain yield of peanut and maize Irrigation requirements
FULL SEASON MATURITY FDR VARIETIES
Better Foliar Disease Tolerance (Leaf Spot, Rust, Net Blotch)
cv. Sutherlandcv. Holt
A major aim of the FS breeding program is to combinefoliar disease tolerance of Sutherland with high yield
potential of Introductions
“D281‐p40‐236A” – NEW FULL SEASON RELEASE
• Better Kernel Yield/ha and Gross Returns/ha(~9% higher than Holt) across a broad range of sites and years• Processing characters are acceptable for broad range of markets
Cross Site/Year AnalysisGenotype Pod Yld Kernel Yld Rel K Yld (HO) Grade Value $/t Gr Returns/ha Rel G Returns (HO) Blanch % Oil Content % Oleic %D281-p40-236 A 5841 a 4098 a 109% 792 b 3271 a 108% 85.6 b 51.9 b 79.5 aHolt 5422 b 3763 b 100% 804 ab 3023 b 100% 89.0 a 53.7 a 77.7 bcMiddleton 4722 c 3250 c 86% 813 a 2711 c 90% 80.7 c 52.1 b 78.5 ab
lsd 5% (G) 286.1 204.0 19.0 189.8 2.1 0.65 1.14lsd 5% (GxE) 904.9 645.2 60.2 600.2 6.63 2.0 n.s.Letters denote significant differences
Genotype Means Over (10) Environments (Full Season Regional Variety Trials)
D281‐p40‐236A is showing excellent Foliar Disease Tolerance (leaf rust + leaf spot + net blotch)
Enhanced Foliar Disease Tolerance
0
200
400
600
800
1000
1200
1400
1600
2011/12 ‐Kernel Yield With No Sprays (kg/ha)
2012/13 ‐ Kernel Yield With No Sprays (kg/ha)
KERN
EL YIELD
(kg/ha)
Relative Kernel Yield Performance Under High Disease Pressure
D281‐p40‐236 AHolt
0
1000
2000
3000
4000
5000
6000
P32‐115‐p229‐60
D304‐17‐p148‐12
P70‐2‐p283‐84
D281‐p50‐251
UF 49
P58‐p48‐6
D304‐23‐p191‐37
P69‐p251‐50
P32‐115‐p229‐61
P69‐p251‐44
Southern Runner
P33‐142‐p258‐69
UF 55
P39‐p468‐109
P69‐p251‐43
D281‐p52‐461
P28‐88‐p85‐7
P29‐p142‐33
P28‐88‐p87‐17
P68‐p181‐21
P28‐88‐p87‐13
UF 40
D281‐p36‐224
P28‐88‐p87‐9
D281‐p50‐253
D283‐p31/35‐75
P69‐p235‐31
P65‐p131‐17
P28‐88‐p87‐10
P69‐p251‐42
P11‐p377‐169
P11‐p378‐173
N10095olCTL
P69‐p281‐80
P58‐p48‐7
D281‐p40‐236 A
Florida Fancy
P32‐115‐p232‐65
WT09‐0754
D281‐p52‐259B
P69‐p251‐48
P31‐109‐p216‐46
P28‐80‐p50‐1
P69‐p266‐61
P69‐p281‐78
Sutherland
D304‐29‐p221‐47
P28‐88‐p87‐12
P32‐115‐p232‐63
P58‐p48‐8
P11‐p375‐162
P70‐2‐p283‐85
P60‐p65‐13
P31‐109‐p216‐41
P69‐p266‐62
P31‐109‐p216‐42
P31‐109‐p222‐55
D304‐29‐p227‐61
P69‐p251‐49
P69‐p268‐67
D283‐p3‐5B
Fisher
P97‐154‐123
P70‐2‐p283‐83
P64‐p93‐16
P70‐16‐p299‐89
WT09‐0400
N10080olJCL
D304‐23‐p190‐31
P29‐p127‐24
N10094olCSm
P69‐p278‐72
P69‐p257‐56
M08‐0240
P33‐142‐p258‐67
P36‐192‐p406‐97
UF 43
P32‐115‐p232‐64
P65‐p155‐18
P32‐110‐p223‐58
P31‐109‐p222‐56
WT08‐0757
UF 50
P69‐p251‐45
P65‐p155‐20
M08‐0088
P65‐p155‐19
P60‐p75‐15
N10083olC
P12‐p379‐183
P39‐p476‐111
UF 48
P70‐2‐p283‐86
P11‐p376‐167
N10093olCLSm
Holt
P38‐219‐p446‐101
N09024oIJ
P29‐p127‐27
UF 47
UF 62
NC 7
UF 57
P36‐192‐p406‐98
NC3033
N09032ol
WT09‐0760
P35‐166‐p323‐72
P38‐219‐p446‐100
UF 61
Menzies
P35‐166‐p323‐73
UF 52 (McCloud)
UF 51
Middleton
P70‐16‐p299‐90
UF 60
UF 46
UF 56
N09019olJ
POD YIELD (kg/ha)
LINE
Pod Yield of Breeding FS Lines Under Severe Foliar Disease (No Sprays) at Kairi RS NQld
Enhanced Foliar Disease Tolerance –FS Breeding Pipeline…
MENZIESHOLT
SUTHERLANDD281‐p40‐236A
P32 (FLORIDA 7 x SU)
P70 (GA05E x SU)
New Ultra Early Lines
New UE var’s (“P” lines ) are showing up to 50% pod/kernel yield increases above Walter, with larger kernel size
CROSS SITE ANALYSIS ‐ Ultra Early Trials in 2012/13 ‐ Genetic Improvement over the Past 6 years (2007‐2013)VARIETY Pod Yield (kg/ha) % Gain v's Walter Kernel Yield (kg/ha) % Gain v's Walter % Jumbo's (over Runner Screen) % Gain v's Walter
P23‐p153‐63 5026 42.3% 3679 50.2% 51.1 87.1%Redvale 4250 20.3% 2975 21.4% 39.5 44.5% Tingoora 4046 14.6% 2802 14.4% 35.4 29.6% Walter 3531 0.0% 2450 0.0% 27.3 0.0%
0
1000
2000
3000
4000
5000
6000
P54
‐42‐p251‐122
P23
‐p171‐83
P54
‐52‐p268‐145
P54
‐45‐p255‐127
P52
‐p194‐71
P49
‐7‐p55
‐31
P23
‐p171‐85
P54
‐39‐p236‐99
P23
‐p157‐65
P49
‐7‐p53
‐27
P50
‐p104‐43
P24
‐p187/205‐98
P20
‐25‐p69
‐34
P52
‐p206‐87
P20
‐25‐p69
‐29
P19
‐4‐p19
‐18
P51
‐p160 ‐56
P48
‐p27
‐16
P13
‐p45
‐235
P49
‐4‐p43
‐23
P23
‐p153‐63
P19
‐1‐p2‐1
P52
‐p206‐89
P20
‐25‐p69
‐33
P19
‐4‐p9‐8
P49
‐7‐p53
‐25
P52
‐p194‐69
D291‐p137‐109
P23
‐p157‐68
P13
‐p23
‐233
P53
‐28‐p225‐95
P52
‐p205‐85
P52
‐p206‐88
Red
vale
P49
‐7‐p55
‐ 32
P19
‐1‐p2‐3
P19
‐4‐p19
‐17
P20
‐25‐p69
‐31
P23
‐p165‐74
P49
‐7‐p55
‐29
P49
‐15‐p66
‐39
P13
‐p07
‐221
P19
‐4‐p13
‐14
P52
‐p206‐90
P51
‐p168‐58
P49
‐15‐p66
‐36
P52
‐p197‐76
P52
‐p179‐64
D291‐p186‐191
P49
‐15‐p66
‐41
P24
‐p185‐91
P22
‐63‐p126‐48
P52
‐p216‐92
P49
‐15‐p66
‐34
P52
‐p216‐91
P49
‐15‐p66
‐35
P24
‐p187/205‐97
Tingo
ora
P52
‐p197‐75
P49
‐4‐p43
‐20
P49
‐15‐p66
‐40
Walter
P52
‐p197‐77
P52
‐p199‐80
POD YIELD
(kg/ha)
LINE
Pod Yield of UE Breeding Lines Under Severe Foliar Disease (No Sprays) at Kairi RS NQld
Enhanced Foliar Disease Tolerance –Ultra Early Breeding Pipeline…
WALTERTINGOORA
REDVALE
P23‐p153‐63
P54 (ICGV x REDVALE x SU)
Pod Yield Improvement
• Mean Full Season Maturity Pod Yields were 5.1t/ha• EM lines are now highly competitive despite ~ 30 days
earlier maturity• Some EM lines have pod yield potentials of >6t/ha
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 2013‐14
Ratio
of U
ltra Early
/Full Season Po
d Yield (%
)
Year of Testing
Progress in Pod Yield Potential of Ultra Early v's Full Season Types (averaged over 5 sites 2008 to 2014)
Benefits of Peanut Production in NT
o Already established market for supply of Hi Oleic peanuts
o Little risk of oversupply as ready domestic and international markets for premium quality snackfood (eg Kingaroy Gold)
o PCA has demonstrated peanuts can be successfully grown in the NT, and with current buoyant livestock industry there is good potential for shared benefits
o Cattlemen could readily set up pivot irrigation systems for profitable peanut‐hay operation
o PCA can provide agronomic and logistical support, + training of local agronomists
Summary
o Peanuts have been shown to grow well in NT/N Aust, and are an effective legume in rotation with a range of cereal / fodder / cane crops.
o Peanuts grown under centre pivot irrigation during winter can produce sustainable pod yields of > 4.5+t/ha.
o Growing peanuts is not the stand alone operation, it needs to be a part of a broader cropping system.
o Peanut provides a cash crop + quality peanut hay.
o High value cereal (e.g. waxy/gritting corns, rice) options assist cereal rotation profitability.
o Fodder crops (sorghum/millet) provide long rotational benefits for peanuts and have ready markets into the cattle industry.