The AgriFutures Ginger Program invests in research, development and extension (RD&E) to support a sustainable, growing and prosperous ginger industry that supplies product of the highest quality and meets the demands of consumers in Australia and around the world. The AgriFutures Ginger Program is funded through statutory levies, paid by ginger growers, and Commonwealth matching funding. The ginger levy, which was established in 2010, is paid at the first point of sale, at a rate of 0.5% of the sale price.
The purpose of evaluating Program investments is to ensure that the Program is delivering economic benefits and having impact in the ginger industry. AgriFutures Australia conducts economic evaluations of its Programs as they near the end of their five-year RD&E cycles. This process provides accountability to the AgriFutures Australia Board, levy payers and Government.
This study evaluated the benefit-cost ratio of projects funded under the AgriFutures Ginger Program RD&E Plan 2017-2022. The impact assessment addressed a population of seven projects and the impacts from four were valued. Funding for the four projects where impacts were valued totalled $0.91 million (present value terms) and produced aggregate total expected benefits of $5.46 million (present value terms). This gave a benefit-cost ratio of approximately 6 to 1. When the benefits of the impacts valued ($5.46 million) were compared with the total investment in all projects in the population ($2.30 million), this produced a benefit-cost ratio of 2.4 to 1.
It was concluded, given the assumptions made in valuing the impacts, that the benefit-cost ratio for investment in Ginger Program projects lies somewhere between 6 and 2.4 to 1.