The Future of Farming: Strategic Intent, Technology Diffusion ... - CEMI

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Centre for Entrepreneurial Management and InnovationThe Future of Farming: Strategic Intent, Technology Diffusion and Precision Farm Management2Centre for Entrepreneurial Management and InnovationPhone: +618 6488-3981Fax: +618 6488-1072Email: tim.mazzarol@uwa.edu.auGeneral Inquiries:Email: admin@cemi.com.auWebsite: www.cemi.com.auCEMI Discussion Paper SeriesISSN 1448-2541Discussion Paper 0201© Copyright Joanne Sneddon and Tim Mazzarol 2002Discussion Papers should not be reproduced without attribution to the author(s) as the source of the material.Attribution for this paper should be:Sneddon, J.N., and Mazzarol, T. (2002) “The Future of Farming: Strategic Intent, Technology Diffusion andPrecision Farm Management” CEMI Discussion Paper Series, DP 0201, Centre for Entrepreneurial Managementand Innovation, www.cemi.com.auNOTE:This paper was originally published by CEMI when it was part of the Graduate School of Management, TheUniversity of Western Australia, 35 Stirling Highway Crawley WA 6009.Centre for Entrepreneurial Management and Innovation | www.cemi.com.au
Centre for Entrepreneurial Management and InnovationThe Future of Farming: Strategic Intent, Technology Diffusion and Precision Farm Management3THE FUTURE OF FARMING: STRATEGIC INTENT,TECHNOLOGY DIFFUSION AND PRECISION FARMMANAGEMENTJoanne N. Sneddon, University of Western Australia (joanne.sneddon@uwa.edu.au)Tim Mazzarol, University of Western Australia (tim.mazzarol@uwa.edu.au)ABSTRACTThis paper examines the application of new technologies to precision agriculture, with specific reference to thewool industry in Australia. It argues that the adoption of new innovation is essential to the long-termsustainability of the industry, but cautions that the diffusion of such technologies is likely to depend on thestrategic intent of the wool producers. Multiple case studies are presented to illustrate how the strategicmanagement approaches adopted by wool producers will influence the potential adoption issues facing suchnew technologies. Propositions for the future diffusion of new technologies are outlined.Key words: strategic intent, innovation diffusion, farming enterprises.RESPONDING TO THE MARKET WITH INNOVATIONAgainst a backdrop of declining terms of trade and increasing competition it has become increasinglyimportant for Australian wool producers to adopt innovations that will have a positive impact upon enterpriseproductivity and profitability (Beare, 1999). Although innovative technologies are available to help woolproducers become more productive and profitable, change in the wool industry is slow compared with otherbroad acre enterprises (McLachlan, 1999). Wool producers have traditionally relied upon wool prices to liftprofitability, rather than introducing innovations that will help reduce production costs or increase fibrequality (Burbidge 1999).The relatively low cost of managing pastures is considered to be of great international competitive advantageto Australia’s wool industry (Chapman and MacMillan 2000). However, much inefficiency exists within theAustralian grazing system with the average wool producer utilising around 30 per cent of green feed,compared with 80 per cent of feed utilised in intensive farming operations (Grimm 1998). The optimal greenfeed utilisation level for the average wool enterprise is around 60 per cent indicating a great potential forproducers to graze more sheep and grow more wool (Grimm 1998). The general under-utilisation of pastures isa result of producers stocking their wool enterprise to survive the poorest growing season rather than stockingto a rate that maximises the conditions of the actual season. This conservative approach to feed utilisation islargely due to the lack of reliable and timely pasture management information available to wool producers.In response to the underutilisation of green feed among wool producers, CSIRO and WA Department ofAgriculture (WADA), in conjunction with the Western Australian Department of Land Administration (DOLA),formed a research consortium to develop remotely sensed pasture management technologies for woolproducers and other extensive graziers. The main objective of the consortium was to develop and deliverCentre for Entrepreneurial Management and Innovation | www.cemi.com.au
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