Report for the Rural Industries Research & Development Corporation (RIRDC)
In 2007 the Executive Committee of Lucerne Australia determined that an understanding of the economic contribution of the Australian lucerne seed industry was a key input required for their strategic planning process and so contracted Rural Solutions SA to undertake this research into the core economic indicators of this successful and emerging industry.

Rural Solutions SA engaged industry players, relevant seed associations and lucerne seed producers to collect the required data for presenting a baseline position for this industry which had never undertaken analysis like this before.

The report presented a set of economic indicators (now able to be assessed as ongoing KPI’s) for the lucerne seed industry as well as a consistent time series of economic information. The economic indicators detailed in the report included:

• gross value of production (GVP) for lucerne seed for the period 2002/03 to 2006/07;
• value of exports;
• economic impact of the lucerne seed industry in South East South Australia (the major region for lucerne seed production in Australia);
• contribution to gross state product (GSP) from the lucerne seed industry in South East SA;
• employment (direct and indirect) within the lucerne seed industry;
• cost of production based on gross margin analysis; and
• external factors that influence the success of the lucerne seed industry.

The analysis highlighted the significant contribution being made to Australia’s agricultural production by the lucerne seed industry. Increases in Gross Value of Production and the high demand for lucerne seed internationally has bolstered the key performance indicators and generated confidence amongst growers and seed industry service providers that they hold a competitive position against other grain crops. Overall value of the lucerne seed industry is estimated to be around $AUD 95 million per annum when associated inputs and allied industries are considered.

The feedback received from this report has been very positive and Rural Solutions SA is proud to have been chosen to undertake this work which will significantly contribute to the future industry development of lucerne seed as an important part of Australian agriculture.

Contact: Martin Carter