Download (4Mb) - USQ ePrints - University of Southern Queensland

Relationships between sectors and participants in the supply chain need to be improved. Experience in
the sugar industry has shown that where there has been a tradition of cooperative relationships
between participants, or a major effort has been placed to develop these relationships, there has been
greater progress in improving the supply chain, which has led to coordinated action, cooperation, and
organization among diverse industry stakeholders.
Tangible and intangible benefits of value chain improvement should be promoted throughout the
industry. Tangible benefits (eg $/ tonne biomass delivered) are sometimes difficult to quantify but
provide a key incentive for adoption as does the promoting of intangible benefits (eg increased cooperation).
Flexibility should be built into the design, operation, and management of the supply chain to enable it
to cope with, and adapt to, unforeseen events such as weather impacts, equipment, changes to industry
participants and cross-sectoral relationships. The multi-sectoral nature of most projects meant that
they are much more vulnerable to unforeseen external events than single component, single sector
projects.
Consideration should be given to the development of various “model” contracts and protocols for
services to encourage greater use of standard supply agreements and pricing arrangements which
encourage best management practice and equitable distribution of proceeds.
While there will be potential to increase value-add through diversification, the impact on supply chain
constraints needs careful consideration. A diverse range of products will strengthen mallee industry
economic viability. Consideration will need to be given to the benefits and practicalities, capital
requirements, and costs of production of each potential product as well as the sustainability of those
markets over time. The implication of the addition of each product for the operations, productivity,
and sustainability of all other sectors in the value chain need consideration.
While improved technology (such as a harvester) that will give a step change in cost efficiency should
be sought, equal consideration needs to be given to integration with other elements of the supply chain
and accumulated incremental improvements.
Account should be given to the social and human aspects of the supply chain. Trust will be a key
ingredient for improved functioning of the value chain. Commitment should be sought to share
information, improve the understanding by all participants of the drivers and operations of all sectors
and increasing the size of cake as well as equitable apportionment of risks and rewards across the
value chain.
Improvements to the productivity and profitability of the mallee farming systems will require further
R&D to improve biomass yield, tree presentation for cost effective harvesting and better integration
with other farming systems. Farming systems need to be implemented that not only enhance economic
and environmental performance in the farming sector, but also match value chain requirements for
overall efficiency.
Harvesting and transport systems will need to be further developed and optimised to provide improved
capital utilisation and more efficient harvesting operations. This will be driven by the distribution of
mallee plantings in the landscape and the specific alley or block planting configurations. Information
on biomass yield, harvester and road transport performance and tracking will improve deliveries and
scheduling to the processor.
A large range of supply chain models and tools have been developed and applied in the sugar sector.
Key opportunities for the mallee industry include:
156