Compost Australia National Industry Forum — National Marketing Plan

Compost Australia is convening a National Industry Forum on 26-27 July 2007 in Canberra to develop a National Marketing Plan for the industry.

This edition of eNews provides a listing of activities, state by state, specifically focused on market development and demand creation for recycled organics products, please refer to sections 3 & 4 of this newsletter.

Compost groups and government agencies in each respective state were asked to respond to a set of questions to directly inform the National Marketing Plan.

For an introduction to concepts and language of marketing and market development specifically relevant to recycled organics, please refer to pages 11-34 of the publication: Guide to Selecting, Developing and Marketing Value-Added Recycled Organics Products (Recycled Organics Unit, 2002). This publication is free to download from the Recycled Organics Units' publications webpage.

The 2006/2007 government and industry programs were detailed in the previous edition of the Recycled Organics National eNews (Issue #2 - October 2006).

For this edition please refer to sections 3 & 4 of this newsletter as above.

The following question was asked of the state industry groups':

• What has your state industry group done collectively to develop recycled organics market demand?
  • Do you have a documented market development plan?
  • What are the priority target markets in your state?
  • List the associated industry led programs and information resources?
  • In your view, what is the role for government to achieve the objectives?
  • In your view, what is the role for industry to achieve the objectives?

The state industry groups' responses are presented below, following an overview of Compost Australia's progress on addressing marketing issues.

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Compost Australia

During the previous 12 months, Compost Australia has been focused on engaging the following three specific strategies, as provided by Angus Johnston, National Project Manager - Recycled Organics.

Strategy 1: Industry to Influence
Compost Australia has built on the energy and industry identity created by the Roadmap Project to create a more unified and outward looking association. During 2006 the focus was on improving internal decision making processes and developing grant applications for federal funding. For this reason the business and market development plans are both informal and evolving. A workshop on recycled organics market development (as a key step in documenting a national market development plan) is to be run in conjunction with this year’s AGM.

Compost Australia recognise that the key to funding the ongoing implementation of the Roadmap is establishing a joint industry fund, or ‘War Chest’, that can be used to leverage grant money and other government funding opportunities. The biggest challenge is raising those funds in a fair and equitable manner (limiting free-riding).

Strategy 2: Marketing / Market Development
The Roadmap identifies marketing ‘fit-for-purpose’ products under a common brand as an important strategy for creating a successful Recycled Organic Industry in Australia. Since mid-2006 Compost Australia has been working towards a revised Australian Standard for Composts, Soil Conditioners and Mulches, plus an updated product certification scheme that allows compost manufacturers and researchers to register specific products designed to meet end-user needs with an independent certifier.

During the first few months of 2007 a new ‘Leaf’ Brand has been developed to provide the link between independently certified products and joint marketing activities. A national agreement involving the industry, the WMAA Board and an independent certifier is now nearing completion. The first certified products carrying the brand should be available from August in Victoria, and be ready for the peak sales period in Spring 2007.

Strategy 3: Education and Research
The development of a Compost Australia Communications Plan and the R&D Forum have been fundamental mechanisms for implementing Strategy 3. The work of the Recycled Organics Unit (NSW) and of the relevant state government authorities provided a firm platform for education and research even prior to the Roadmap (2005). The RO Library, an on-line one-stop-shop for finding literature on recycled organics, and the this eNews provide good coverage of current and completed research in the field.

Compost Australia supports these resources by providing information to the ROU and directing interested parties to these resources. However, there is still work to be done in establishing systems for communicating the results of research and the benefits of using recycled organic products. It is envisaged that the product development, certification and joint marketing activities will assist in distributing research information and using it to educate the market.

Recycled Organics Western Australia (ROWA) has been active in developing and testing a National Communication Planning framework starting in Western Australia. Basic procedures, forms and data management systems are being established to facilitate a nationally consistent mechanism for communication. Western Australia will also host the next R&D Forum in September 2007.

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Compost New South Wales

Garry Kimble has responded on behalf of Compost NSW.

Do you have a documented market plan?

• No. However, the basis for such a plan is being developed as a result of two studies being undertaken by Hyder Consulting on behalf of Compost NSW and the NSW DECC (funded jointly by DECC and WMAA).
  • The first study consists of a market analysis to update supply and demand trends for quality RO products manufactured from compostable organic material diverted from landfill;
  • The second study will result in a Critical Issues Paper which will make a case for appropriate government and industry policies and actions that will allow the NSW RO industry to overcome structural barriers to the extension of markets for materials recovered from urban waste streams.
• The above studies will build on the information already contained in the following documents:
  • Compost Industry Supply Chain Road Map (identifying the major barriers to market development in NSW)
    • affordability of product by likely new end users;
    • transport costs to move material from point of generation to point of use;
    • r egulation not supportive of market development.
  • “The Compost Industry in NSW” - Power Point presentation by Compost NSW.
  • Compost Industry Position Paper, Compost NSW - Power Point Presentation.
    • transport costs (Major potential markets far from sources of raw materials)
    • benefits and value of water efficiency properties not widely known;
    • value of increasing soil carbon is not a tradeable commodity.
• Individual companies in the industry run with their own marketing plans, which they are reluctant to share with their competitors through an industry association. Due to the fiercely competitive nature of this industry (due to supply outstripping demand), the industry as a whole has not been able to agree on a marketing plan to grow the industry as a whole. The aim of an industry marketing plan is to “grow the pie” so that everyone in the industry gets a chance to increase their business.

What are the priority target markets in New South Wales?

• Urban Amenity - market is saturated and shows little potential growth - 61% of market (opportunities in specialised areas eg. top dressing of sporting fields, golf courses, etc).
• Intensive Agriculture - 25% (offer best opportunities for market development).
• Extensive Agriculture - 8% (offer best opportunities for market development).
• Rehabilitation and Enviro-remediation - 3% (and shrinking).
• Biofuels - 3% (static).

List the associated industry led programs & information resources?

• Programs are run and supported by the following organisations and agencies:
  • Recycled Organics Unit, University of NSW;
  • NSW Department of Environment and Climate Change, Sustainability Division;
  • NSW Department of Primary Industry.
• Information resources include:
  • US Composting Council;
  • Composting Association in the UK;
  • Composting Council of Canada;
  • Individual members of Compost Australia and the organisations with which they are affiliated.

In your view, what is the role of government to achieve the objectives?

• Continue to promote organics recycling as contributing to sustainability.
• Water benefits.
• Salinity abatement.
• Carbon sequestration.
• Provide level ‘playing field’ for organic products.
• Continue to support Research and Development in composting.
• Use funds from the waste levy and gate fees to develop new markets.
• Landfill levy hypothecation – agricultural market development.
• Put in place market based instruments (MBI’s) to encourage use of composts:
  • Transport rebates;
  • Bounties;
  • Purchasing policies.
• Reduce cost impositions on the industry - e.g. by streamlining licensing and approval processes.
• Diesel fuel rebate available to processors.
• Extended generator responsibility.
• Compost as an input into carbon cycle.

In your view, what is the role of industry to achieve the objectives?

• Producer responsibility:
  • Industry training package;
  • National industry survey;
  • Triple bottom line assessments;
  • Life cycle assessment;
  • Windrow composting;
  • Net environmental benefit;
  • Risk assessment and reduction of risk;
  • herbicides/pesticides;
  • Pathogens/weed seeds.
• Increase market confidence
  • Compost Supply Chain Roadmap;
  • Viticulture industry;
  • phylloxera compliance agreement;
  • National Seal of Approval;
  • National branding scheme;
  • Fit-for-purpose products;
  • National research;
  • Research trials.
• Influence government policy
  • Diesel fuel rebate;
  • Extended generator responsibility;
  • Compost as an input into carbon cycle;
  • Water benefits;
  • Salinity abatement;
  • Carbon sequestration;
  • Landfill levy hypothecation – agricultural market development;
  • Provide level ‘playing field’ for organic products.

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Compost Victoria

Andrew Monk has responded on behalf of Compost Victoria (CV).

Do you have a documented market plan?

• CV does not. Sustainability Victoria has a draft and we are planning this coming year to set one in place.

What are the priority target markets in Victoria?

• The following segments are seen to have the greatest potential in the short to medium term and will have priority in market development initiatives pursued in the Plan:
  • Urban Amenity, including the sub-sectors:
    • urban property development projects, including private and public landscaping in major subdivisions, roadside and waterway landscaping, and urban open spaces;
    • home gardeners and retail garden supplies;
    • commercial landscapers;
    • commercial and wholesale nurseries supplies;
    • recreational surfaces;
    • local government Parks and Gardens.
  • Intensive agriculture (horticulture and viticulture) within an approximately 200 km radius of metropolitan Melbourne and provincial cities.
• Market segments that have a lesser priority, but that are still addressed through this Plan include:
  • Broadacre cropping and pasture management;
  • Urban land rehabilitation, including landfills and extractive sites;
  • Rural land rehabilitation;
  • Renewable Energy;
  • Animal feed;
  • Bioproducts.

List the associated industry led programs & information resources?

• Certified Compost scheme (accreditation, product and product spec development and marketing).
• Healthy and Sustainable Gardening Scheme.
• Contamination management guidelines.

In your view, what is the role of government to achieve the objectives?

• Co-funding industry projects, and communicating benefits / outcomes to markets.
• Co-ordination, collation and dissemination of information.
• Opportunity identification and sharing with industry; engagement of stakeholders where there are opportunities.
• Promotion of best practice organics recovery systems (collection, processing and marketing) and realistic costs of best practice services to local government, industry and the wider community.
• Officers to support industry objectives within government directed and driven by industry interests and feedback.

In your view, what is the role of industry to achieve the objectives?

• Co-funding (cash and in-kind work) industry projects.
• Initiate and direct industry projects.
• Co-operative and collegiate work to further the industry’s objectives.
• Expansion of certified compost scheme to raise industry standards and to be promoting this to the public and onsellers.
• Promoting the new EPA regulations for licensing of premises as means also of improving industry reputation (and performance) and support from government.
• Input into and steering of government policy initiatives impacting on the industry.

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Compost South Australia

Steven Marshall has responded on behalf of Compost SA.

Do you have a documented market plan?

• Compost SA has historically been very busy developing end markets for recycled organics.
• Compost SA has worked hard in a range of target areas including: viticulture, intense horticulture (including glass house), orchards, municipal, bagged product, erosion control and remediation. Some of these areas are far more advanced than others.
• Compost SA is now on the third iteration of its Strategic Plan. This is a simple document setting out key strategies for the organisation. This document has been developed with a range of processors, suppliers, industry consultants, the EPA and other state and local government bodies.
• We have had particularly strong support from Zero Waste SA.
• In the past year, a full-time Industry Development Officer (IDO) has been employed by a consortium of three processors (Jeffries, Peats and Van Shaiks). This consortium has received both federal and state government grants to also enable research into the disease suppressive characteristics of compost, and also some trials aimed at determining the efficacy of compost application in vineyards in SA.

What are the priority target markets in South Australia?

• Target markets can be grouped geographically or by end use.
• Compost SA targets geographic markets which can be easily and cost effectively served by member processors. These include:
  • the South-East, Barossa;
  • Northern Adelaide Plains;
  • McLaren Vale;
  • Langhorn Creek;
  • Adelaide Hills; and,
  • the Riverland.
• Compost SA has also identified a range of targetted end use markets including:
  • viticulture;
  • intense horticulture;
  • fruit trees;
  • erosion control and remediation.

List the associated industry led programs & information resources?

• Compost SA is extremely active in holding a range of events designed to promote the compost industry. These have been well attended and included a range of interstate and international speakers.
• At the moment the consortium is preparing a website 'compost for soils'. This will be made widely available throughout the industry and will hold a range of articles focussed on compost applications.
• It is envisaged that these will be made into a range of 'fact sheets' distributed during the IDO's promotional activities.

In your view, what is the role of government to achieve the objectives?

• There is no doubt that the Australian compost industry is in a difficult position. A massive surplus of finished product exists across the country and is growing.
• The industry needs short term assistance to deal with the surplus and assist in the developing of sustainable end markets for recycled organic product.
• A subsidy to first time users would be a very valuable program which would stimulate the trial of compost and 'kick start' the move of recycled organics into mainstream agricultural practice.

In your view, what is the role of industry to achieve the objectives?

• It is important that industry do not simply wait for government to take the lead.
• In SA we have developed three successive strategic plans and remain proactive at addressing the current surplus.
• Industry funds have been sought and committed totalling $225k over three years ($75k from each in the consortium).
• Compost SA is a very active group and this needs to continue into the future.

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Recycled Organics Western Australia (ROWA)

Geraldine Busby has responded on behalf of ROWA.

Do you have a documented market plan?

• Not as yet. However,
  • ROWA has applied to DEC WA for grant funding to develop a market plan; and,
  • ROWA members have organised a workshop to conduct market research into what is needed for the development of a marketing plan prior to WA Waste Recycled conference later this year.

What are the priority target markets in Western Australia?

• ROWA has not specifically identified these yet, however industry reports point to:
  • Horticulture;
  • Council parks & gardens;
  • Turf management;
  • Farming (including organic farming, targeting small farms initially before broadacre due to distance);
  • Land development / re-development;
  • Consumer (domestic gardening).

List the associated industry led programs & information resources?

• Government website: Department of Agriculture and Food.
• Industry association websites including: Organic Growers WA.

In your view, what is the role of government to achieve the objectives?

• ROWA's strategic objectives relevant to government are:
  • To advance market development for recycled organic products; and,
  • To communicate quality messages.
• Government's role to assist ROWA achieving these objectives are:
  • To partner ROWA in developing the recycled organics industry by liaising directly with the association to provide input to policy and regulations;
  • To partner ROWA in developing 'prime locations' to demonstrate the application of recycled organics;
  • To partner ROWA in developing campaigns across government agencies to encourage the use of recycled organics;
  • To actively engage the industry to determine how quality messages can be disseminated and how barriers to entry can be erected for producers that do not create quality products;
  • To provide reference materials (via website/email distribution) or information about how consumers can purchase quality products in their area (eg. an online database of processors);
  • Local government reviews of procedures (ie. for garden organics), ensuring that current practices do not devalue the overall market for recycled organics.

In your view, what is the role of industry to achieve the objectives?

• ROWA's role to achieve the development of recycled organics market demand is:
  • Advance market development;
  • Disseminate quality issues;
  • Influence policy and regulations;
  • Establish itself as a credible association for the recycled organics industry;
  • Develop relationships within government agencies and respond 'as one' when asked for an opinion.

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Compost Queensland

No response by the close of press.

The following question was asked of the state government departments':

• What is your organisations approach to recycled organics market development / demand creation?
  • Do you have a documented market development plan?
  • What are the priority target markets in your state?
  • List the associated industry led programs and information resources?
  • In your view, what is the role for government to achieve the objectives?
  • In your view, what is the role for industry to achieve the objectives?

The state government departments' responses are presented below.

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Zero Waste South Australia

Philip Matthews has responded on behalf of ZWSA.

Whilst ZWSA has a focus on the diversion of organics from landfill is is also aware of the importance of market development and clean feedstocks.

• ZWSA have a documented market development program in conjunction with the recycled organics industry and the South Australian Research and Development Institute (SARDI). Whilst it is a multi pronged approach there two main themes:
  • Supporting the industry in developing markets;
  • Working with compost industry, councils, the public and collectors to reduce contamination. This cleaner feedstock will reduce many threats to the long term sustainability of the industry.
• In terms of developing markets the compost industry and government are working together towards achieving many outcomes.
  • SA has a a research officer working in SARDI to look at the disease suppression of composts. The work is being done with intensive production in the glasshouse and greenhouse industry.
  • Work is also being done within SARDI looking at subsurface injection of compost in vineyards.
  • SA is the first state to appoint an Industry Development officer - Katie Webster. Katie is working with industry and agronomists to promote the benefits of compost and has 5 focus areas/market around the state. A steering committee with representatives from the three main composters in SA, ZWSA and SARDI are overseeing the project and monitoring the progress.
• Priority markets are for:
  • horticulture (including glasshouse and greenhouse industry);
  • viticulture; and,
  • broadacre agriculture (some).
• In terms of achieving the objectives of Market development it is extremely important that all parts of the industry work together and contribute financially towards the outcomes. In SA this achieved by all parties having open discussions and prioritisations and each partner being prepared to make an upfront commitment of $$ towards the project.
• In terms of achieving a reduction in organics contamination due to the complexity of many parties having some involvement and as such the approach has been slightly different. I think that the key to achieving success is that each party involved in the supply chain of composted organics must take responsibility for their involvement. This means that:
  • councils need to take some responsibility for the education of their residents and their contracts with collection companies;
  • collection companies must take responsibility for what is collected and taken to the composter;
  • the composter must have a responsibility to ensure that contaminants are further minimised by their processing and that they pass clean product to end users;
  • end users have a responsibility to report contamination back to the processor.
  • the state government needs to take a level of responsibility and a lead role in the coordination to bring all parties together (ie. councils, collectors, processors and end users) to ensure that a reduction in contamination is achieved.

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Department of Tourism, Arts and Environment (DTAE) Tas

Rowena Zwart responded on behalf of DTAE, Tasmania.

• DTAE is not involved in market development/demand creation, however the Department for Economic Development has been working on this matter in Tasmania.
• The priority target markets in Tasmania are:
  • horticulture;
  • viticulture;
  • broadacre agriculture.
• DTAE does not have any, however other associated programs and information resouces include:
  • local government might have specific information for their area;
  • DTAE supports the Tasmanian Waste Exchange (TWEX) which assists organic material producers to link up with processors;
  • a statewide Waste Management Strategy is being developed at present.
• The role for government is to facilitate between industry and disseminate information.
• Market development and demand creation is primarily a role for industry to take the lead.

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Department of Environment and Conservation (DEC) NSW

No response by the close of press.

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Sustainability Victoria

No response by the close of press, although Bill Grant of Sustainability Victoria was consulted in relation to Compost Victoria's response.

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Environmental Protection Agency (EPA) Queensland

No response by the close of press.

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Department of Environment (DoE) Western Australia

No response by the close of press.

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Zero Waste ACT

No response by the close of press.

This section of eNews provides a soapbox platform for industry stakeholders to communicate burning issues and to initiate discussion.

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The views expressed here are those of the author and do not necessarily represent the views of the ROU or sponsors.

Recycled Organics Unit
www.recycledorganics.com • rou@unsw.edu.au