Why should Australian farmers support overseas aid?
Especially agricultural aid – doesn’t that just give a leg-up to our competitors?
Leaving aside moral arguments that overseas development aid is ‘the right thing to do’ for wealthy nations like Australia, there are also pragmatic reasons why well-targeted aid, especially in agriculture, is in the long-term best interests of Australian farmers and rural communities.
Specific examples of benefits from aid flowing back to Australia described below all stem from the direct experience of ACIAR – the Australian Centre for International Agricultural Research.
ACIAR was established by the Fraser government in 1982, out of a recognition that Australian agricultural, fisheries and forestry science has much to offer developing countries in our region as they seek to feed their people and develop their economies.
ACIAR is an independent statutory authority in the foreign affairs portfolio, reporting directly to the Minister for Foreign Affairs. I am just the sixth CEO of ACIAR in 36 years. We have enjoyed remarkable stability over that time, enabling us to build very solid long-term partnerships from east Africa to the Pacific, developing many projects that have delivered benefits back to Australian rural industries and communities.
In February, then Foreign Minister Julie Bishop launched our new 10-year strategy.
In many ways ACIAR is similar to Rural R&D Corporations, in that we organise and fund research, but our focus is overseas, taking Australian science to developing countries in the Indo-Pacific region, and we work across livestock, crops, horticulture, fisheries, forestry, land, water and climate.
Australian farmers and rural communities benefit from the work of ACIAR in several ways:
- At the most basic level, as an exporting country, we do better when the countries in our region can afford to buy our products. As economies develop and people get richer, they consume more meat, dairy, fruit, processed cereals, sugar, wine and wool, and they demand higher quality food.
- Australian scientists working on pests and diseases in developing countries can help to manage risks and limit the spread of major problems before they reach Australia. In doing so, they also get opportunities to work on problems that thankfully don’t (yet) exist in Australia, enabling them to build skills in detection, diagnosis and control of exotic diseases. This has proven of crucial value for Australia, for example with Panama Disease in bananas, and Newcastle Disease in poultry.
- ACIAR investment in collaborative breeding programs gives Australian industries access to new varieties. For example, seven new citrus rootstocks were recently released into the Australian market, developed from disease-resistant and salt-tolerant Chinese cultivars through a collaboration with NSW DPI funded by ACIAR. Germplasm used by Australian wheat breeders to release high performance varieties to Australian growers draws heavily on material from CIMMYT – the International Maize and Wheat Improvement Centre in Mexico – funded by ACIAR and the Grains Research and Development Corporation.
- ACIAR-funded fruit fly research directly helped mango farms in North Queensland, when exports to Japan were withdrawn in 1995 due to fruit fly incursions. The Queensland DPI was able to develop postharvest treatment protocols for Australian mangoes much faster because of their work for ACIAR in Malaysia, resulting in approval to restart exports at least six months sooner than would have been possible otherwise.
- ACIAR often supports Australian researchers to work with partners in neighbouring countries to tackle a shared challenge. The strength of our innovation system leads to new technologies being trialled and adopted first here. Research on growing tropical tree crops, such as mango, jackfruit and cocoa, on trellises for greater productivity and cyclone resistance, led by Queensland DAF with support from Horticulture Innovation Australia and ACIAR, is now offering trellising as a potentially transformative technology to Queensland growers. Research to tackle productivity problems associated with plant viruses in sweetpotato crops in PNG, has led to virus therapy techniques and virus-free planting material being adopted as the foundation for a more productive sweetpotato industry in Australia. Techniques developed by Prof Peter Harrison from Southern Cross University to restore degraded fringing coral reefs in the Philippines (by stocking hatchery-reared coral larvae at the time of larval settlement into enclosures over the reef) are now being trialled on the Great Barrier Reef.
- ACIAR is an important source of applied research funding for regional universities and state departments of primary industries, with major flow-on benefits for regional centres like Wagga, Armidale, Orange, Lismore, Toowoomba, Gatton, Roseworthy, Mildura, Yanco, Townsville, Hobart, Darwin and Maroochydore.
All over the world, evidence over the decades since World War 1 has shown that investment in agricultural research delivers great returns, within and between nations. ACIAR has a fine tradition of measuring and tracking the impact of our investments. Some projects deliver exceptional benefit to cost ratios. For example, clonal improvement of eucalypt and acacia plantation genotypes in Vietnam delivered returns of around 80:1, and vaccination of village chickens in east Africa delivered returns of around 60:1.
Perceptions that our aid helps competitors to out-compete our own exporters don’t hold up under closer examination. Smallholder producers in developing countries rarely compete in the same high-value markets as Australian exporters. The gap in most instances remains very large, and reducing it somewhat usually creates opportunities for Australian industries.
For example, Indonesia wants to become self-sufficient in beef, and ACIAR is funding the University of New England, CSIRO and the University of Queensland to help lift beef productivity and production in eastern Indonesia in particular. But beef self-sufficiency for Indonesia remains a very long way down the track. In the meantime, they will need many breeding cattle from Australia and multiple linkages with the northern beef industry in particular. Building these links will help Australian exporters and producers.
Mangos are another example. Market studies around the Asia-Pacific, led by Griffith University in collaboration with the Australian Mango Industry Association, with input from state and territory DPIs and support from ACIAR, have shown how mango markets are differentiated by seasonal time slots and price points, local market preferences and varietal characteristics. Innovations in pest and disease management, flower induction and post-harvest handling can bring benefits to the mango industry in Australia and in partner countries.
Overall, over the last 36 years, using very conservative assumptions and only counting the benefits that can be quantified and costed, the ACIAR portfolio has delivered benefits at least five times greater than our total expenditure. Many benefits from more recent projects are yet to be fully realised.
While I have great admiration for agricultural economists, benefit:cost ratios tell only a fraction of the story of why investing in agricultural aid in our region makes good business sense for Australia.
Being a trusted science partner across our region, helping neighbouring countries to tackle some of their most pressing problems using Australian know-how, is a very tangible, practical demonstration of our commitment to regional security, prosperity and sustainability. In doing so, we learn a lot and we develop new capabilities that help our own industries, and in the long term we create more and better market opportunities for Australian farmers.
In short, the 2.5% of the Australian overseas aid budget managed by ACIAR delivers terrific value for Australian farmers, rural industries and rural communities.
This article originally appeared on Australian Farmers in March 2018.