Production

Australian potatoes are produced in every state, with Tasmania producing the largest amount of 350,000 tonnes. Total Australian production for human consumption as reported in the latest ABS statistics was 1.33 million tonnes (ABS 2001/02).

The Value Chain

The industry can be segmented into seed production, fresh use potatoes production and processing. The seed market consists of certified seed of around 60,000 tonnes and own kept seed of around 80,000 tonnes. The fresh market consists of around 650,000 tonnes of washed and brushed potatoes including some semi-processed products such as pre-peeled potatoes for the catering trade. The processing segment includes french fries, wedges and crisping products from just over 600,000 tonnes of potatoes. 

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PBR and Potatoes

If you have heard of the words "private ownership" or  "Plant Breeder's Rights (PBR)" or similar words recently, you are starting to experience the effects of Plant Breeder's Rights (PBR) legislation introduced in 1994.

Any commercial crops such as potatoes, cereals, peas, canola or other plantscan now be "marketed exclusively" for commercial benefit by individuals or companies who believe they can profit from marketing them. Usually, a cultivar within a plant group, for example a named potato such as Nadine, can be privately owned if:

1. It has limited distribution and has not been sold for more than 4 years overseas or 1 year in Australia.
2. It is distinctly different from other cultivars within a plant group.
3. It has been developed privately.

Nadine is a named potato which is able to be "marketed exclusively" by Elders Limited in Australia.

The rights to exclusive marketing of a plant usually requires a payment in the form of a royalty to the breeder who developed a cultivar. The exclusive marketing rights of a plant cultivar is registered with the Australian PBR office with the authority of the breeder. Such individuals or companies are commonly called the "Head Licensee" and have the right to charge a fee called a royalty or head licensee fee. This usually covers investment costs and incorporates a profit.

The attraction

Exclusive marketing rights presents commercial benefits to industry and can be financially worthwhile if you are on a winner. However, if testing in the field and market place proves that a cultivar is not worthy, it can be costly.

 

The benefits of PBR are profit motivated and include the marketplace responding to consumer demands for improved quality, including visual, taste, size, cooking purpose or some other reason. This is balanced with the benefits that farmers and the market chain can get out of a PBR plant cultivar.

PBR provides true competition in fresh produce where individuals or companies begin to align themselves with PBR cultivars and aggressive marketing is used with the hope of paying back the investment. PBR makes the industry more innovative with growing, handling and marketing owned cultivars.

Playing by the rules

PBR states: "Unauthorised commercial propagation or any sale, conditioning, export, import or stocking of propagation material of this variety is an infringement under the Plant Breeder's Rights Act 1994".

Those who do not wish to play by the rules and try to obtain PBR material without the consent of the Head Licensee should be aware that they could face hefty prosecution under federal laws. Any prosecution will be done through the PBR office and could cost up to $55,000 for an individual and $275,000 for companies.

Many farmers and people in the market chain are sceptical or apprehensive about PBR. This is natural and there will be pain for those who don't change with the times because new cultivars will tend to replace public ones. However, those that keep their ear to the ground, know what is happening and participate in PBR cultivars are likely to benefit from increasing their market options.

For more information please visit the PBR website

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