Annual Report 2019-20
Research and innovation for rural prosperity Annual Report 2019-20
AgriFutures Australia Annual Report 2019-20
Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from AgriFutures Australia. Requests and enquiries concerning reproduction and rights should be made using the contact details below.
AgriFutures Australia is the trading name for Rural Industries Research & Development Corporation (RIRDC).
Building 007 Tooma Way Charles Sturt University Locked Bag 588 Wagga Wagga NSW 2650
02 6923 6900 [email protected] agrifutures.com.au
ABN: 25 203 754 319 ISBN: 978-1-76053-098-3 Publication No. 20/049
Printed by Union Offset Design by Sunday Collective Copy by AgriFutures Australia
Cover image: Courtesy of Dee-Ann and Phillip Prather at Down Under Enterprises. 4 Annual Report 2019-20 5
Contents
Section Section
1 Executive summary 3 Operations
Chair’s report 12-13 Investments
Highlights and achievements 14-15 – Overview of R&D investments 150-151 – Financial snapshot 152-155 Vision 16-17 – Evaluation 156-161 Investment and impact 18-19 – Communicating R&D results 163
Measuring success 20-27 People and governance
– AgriFutures Australia Board 164-169 2 Arenas and industry reports – AgriFutures Australia staff 170-171
– Governance and accountability 172-183 Arena 1 – People and Leadership 30-39
Arena 2 – National Challenges and Opportunities 40-73 4 Financials 186 - 221
Arena 3 – Growing Profitability 74-131 5 Appendices 224-246
Arena 4 – Emerging Industries 132 - 137
Collaboration 138-147 Section 1 6
Transmittal letter
Research and innovation for rural prosperity
Tuesday, 29 September 2020 Building 007 Tooma Way Charles Sturt University The Hon. David Littleproud MP Locked Bag 588 Minister for Agriculture, Drought and Wagga Wagga NSW 2650 Emergency Management PO Box 6022 House of Representatives 02 6923 6900 [email protected] Parliament House agrifutures.com.au CANBERRA ACT 2600 Email: [email protected]
Dear Minister,
In accordance with the requirements of Section 28 of the Primary Industries Research and Development Act 1989 (PIRD Act), section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Funding Agreement 2015-2019, I present the Annual Report of AgriFutures Australia for the year ended 30 June 2020.
Under section 46 of the PGPA Act and in accordance with the Public Governance, Performance and Accountability Rule 2014, the Directors of AgriFutures Australia have prepared and approved the content of the Annual Report.
The activities of our organisation are reported against the objectives, strategies, outputs and outcomes of AgriFutures Australia’s Strategic Research and Development Plan 2017-22, and are consistent with AgriFutures Australia’s 2019-20 Annual Operational Plan and Portfolio Budget Statement.
In accordance with the requirements under paragraph 39(1)(a) of the PGPA Act, the Annual Performance Statement contained in this Annual Report is based on properly maintained records, accurately reflects the performance of the AgriFutures Australia, complies with sub section 39(2) of the PGPA Act and is in accordance with 16F of the PGPA Rule 2014.
Yours faithfully,
Mrs Kay Hull AM Chair AgriFutures Australia
cc: Senator the Hon. Jonathon Duniam Assistant Minister for Forestry and Fisheries and Assistant Minister to the Minister for Agriculture [email protected] AgriFutures Australia is Mr Andrew Metcalfe the new trading name for Secretary, Department of Agriculture, Water and Environment Rural Industries Research & Development Corporation. [email protected] ABN: 25 203 754 319 Section 1 8 Annual Report 2019-20 9
About AgriFutures Australia
AgriFutures Australia Enabling legislation Certification Annual Report Our purpose is to invest in research AgriFutures Australia’s enabling On 28 September 2020, the This document is AgriFutures legislation is the Primary Industries AgriFutures Australia Board Australia’s Annual Report Research and Development Act 1989 authorised this Annual Report with and development that is adopted and to government and industry (Commonwealth Government of the following resolution: stakeholders, covering the Australia) (the PIRD Act). organisation’s operations for Approved the Annual Report for assists rural industries to be productive, 2019-20. It is aligned with Responsible Minister the year ending 30 June 2020, AgriFutures Australia’s Strategic for the current and previous which includes the following R&D Plan 2017-2022, Annual reporting period certification: “That the Board accepts profitable and sustainable. Operational Plan 2019-20 and responsibility under Section 46 of the Australian Government’s The Hon. David Littleproud MP the Public Governance, Performance research priorities. It complies Minister for Agriculture, Drought and and Accountability Act 2013 for with mandatory and best practice Emergency Management the preparation and content of this reporting and includes: report of operations in accordance Senator the Hon. Bridget McKenzie with the Public Governance, Minister for Agriculture We are guided by an ambition to be • An operational report Performance and Accountability (Financial Reporting) Rule 2015. known as an organisation that places • An annual performance Senator the Hon. Jonathon Duniam statement our people, our rural industries and Assistant Minister for Forestry and • Financial statements Fisheries. regional communities at the heart of • The Auditor-General’s report Our key performance indicators everything we do. on the financial statements. AgriFutures Australia evaluates Our deliverable performance by measurement of the: To maximise the knowledge • Level of stakeholder satisfaction outcomes for industry and and comfort government from our research and • Degree to which the objectives development (R&D) investments of the five-year research and in new and emerging industries, development program plans established rural industries and are achieved national rural issues. • Rate of return on investment • Extent to which investments address government and industry priorities and optimise partnerships with other research agencies. > 2019-20 Section – 01 Section 1
Executive summary Executive Summary Section 01 Section 1 12 Annual Report 2019-20 13
Chair’s report
Welcome to the AgriFutures Australia year in review for 2019-20. Once again, our producers and rural industries who are renowned for their resilience and responsiveness have stepped up to the mark to sustain our nation in a year like no other.
Each year our farmers and primary producers are We also held the inaugural AgriFutures Summit in July AgriFutures’ growAG. initiative will enable us to The AgriFutures Australia Board, management tested with enormous challenges and in 2019-20 2019. This was a gathering of over 120 stakeholders support the growth of Australian rural innovation and and staff are immensely proud of our levy payers, they have faced drought, fires, flooding rains and a from across the organisation including the Levied showcase it to the world. It will provide a collaborative levied industries, and industry panels for the many worldwide pandemic. Together they have overcome Industries Panel Chairs, a number of Advisory Panels, platform across the sector for Australian Agriculture achievements outlined in this Annual Report. As challenges into opportunities and thanks to their the 2019 AgriFutures Rural Women’s Award State/ Research, development and investment, an Chair I am blessed to have not only engaged and dedication and determination, they have delivered food Territory Winners and our Horizon Scholars. international gateway to connect and promote committed Board members to whom I pay immense and fibre to Australia and the world. innovation and commercialisation opportunities respect for their dedication, I also have an entire This inclusive model has enabled AgriFutures Australia both nationally and internationally in order to deliver team at AgriFutures Australia under the outstanding 2020 has seen city and country become one in their to support and grow the “next gen” leaders in our rural benefits to the producer and farmgate. We thank leadership of the Managing Director. This team gratitude and respect for our producers as Minister industries and communities. Minister Littleproud for the opportunity to lead this always put the success of our industries first and Littleproud gave reassurance that we produce enough exciting and transformational project. foremost, my sincere appreciation to each of you. In a food for 75 million people ensuring Australia has the evokeAG. 2020 again delivered added benefits to levy constantly changing world, we all remain committed greatest food security in the world. payers and their industries. Doubling the size of Startup The cross pollination of growAG., evokeAG. Network and to collaboration and innovation with the industries, Alley in 2020 and focusing on attracting both investors the evokeAG. event will bring even more value to our producers and growers driving and shaping Australian The 13 levied industries that make up our AgriFutures and farmers to the event, resulted in a platform for levy payers, agricultural industries, the innovation agriculture now and into the future. Australia network, each contribute significantly to local and international innovators to showcase ideas system and will supercharge Australian and Asia sustaining our nation in diverse ways; this diversity in front of a global audience. In addition to subsidising Pacific’s agriculture to the world. enables their levies to contribute to world class attendance from within our levied industries, one of the research, development, and extension (RD&E) objectives of evokeAG. 2020 was to enable more farmers Throughout the COVID-19 uncertainty our People and constantly adding value to not only the contributing to view the innovation, establish contacts and hear the Leadership space, including the Rural Women’s Award industries but to the entire agriculture sector. The global messages. By offering our primary producers and our Horizon Scholarship program has stayed objectives of the team at AgriFutures Australia a special priced ticket we doubled the farmers in the relevant and resilient by seeking out opportunities including the Board is to deliver over and above our room to over 300 of the 1478 registered participants. to adapt and go virtual. AgriFutures Australia is Mrs Kay Hull AM RD&E commitments, to listen to and strengthen our working with the women in the 2020 cohort to roll Chair industries. To achieve this, we have been engaging An example of the added value evokeAG. has delivered to out a program that ensures their projects flourish AgriFutures Australia through discussions at a panel, industry, and board our levy payers is the tea tree oil industry engaging in a over coming months. Our Horizon Scholars are also level. project based on blockchain type technology. AgriFutures enjoying new online opportunities. Australia funded research with Geora and the Australian This past year we have introduced additional capacity Tea Tree Industry Association (ATTIA) and this continues building opportunities with the new Levied Industries to provide traceability along the full length of the supply Capacity Building Program. Launched in 2019, it has chain from farm gate to consumer product. This is a prime provided a range of opportunities from the Australian example of world-class innovation. Institute Company of Directors course, travel bursaries and other mentoring programs. Section 1 14 Annual Report 2019-20 15
Highlights and achievements 2019 2020
2020 Farm Biosecurity Increased evokeAG. Farmers2Founders Truffle Growers Guide The Changing Producer of the Year thoroughbred breeding Landscape of Award outcomes Protein Production: evokeAG. 2020 attracted 1478 Producers build their Truffle growers welcome investors and farmers, local entrepreneurial and important industry field guides Opportunities and international innovators to technological skills, so they and manuals to help identify and challenges for Shane and Julie Templeton The development of a quick showcase ideas and innovation in can solve real industry issues, pests, diseases and their win the 2020 Farm Biosecurity on-farm test helps the Australian agriculture front of a global audience. capitalise on, and commercialise host trees. Producer of the Year Award for thoroughbred breeding industry new technologies, and bring implementing strict biosecurity improve fertility and reproduction novel, high-value products A new report identified protocols. They adopted outcomes. to market. Two AgriFutures opportunities and challenges for AgriFutures Australia funded AG. Australia-funded participants grow Survey targets alternative (i.e. non-traditional) research to help combat Pythium, who have benefited are QCamel Community Trust proteins in the coming decade. a disease threat with potential to and Hive Haven. decimate the ginger industry. Improved value of growAG. will provide transparency Australian honey across Australia’s agricultural AgriFutures Australia is from measurement of innovation system, encourage Emerging Industry understanding and building Agriculture – a $100b New hay variety antibacterial activity collaboration, attract investment, community trust in the Australian sector by 2030? and find commercial partners focuses on seaweed agriculture sector by working with from within Australia and 11 RDCs, the National Farmers’ around the world. growAG. is being Federation and NSW Department Growers increase their Australia has at least seven Prioritising investment developed in partnership with Future RD&E priorities add to of Primary Industries with 6,461 productivity and profitability Leptospermum species that decisions in key areas that the other RDCs and is in the final emerging seaweed industry people participating in the national thanks to a new hay variety called produce honey with exceptionally have the greatest impact is the stages of construction. blueprint. trust survey in its first year. Koorabup which has excellent high levels of antibacterial cornerstone of this analysis disease resistance and a superior activity, providing the scientific which estimates a shortfall of level of Septoria resistance. basis to facilitate the entry of $15.7b based on the current Australian honey producers into growth trajectory of the sector. premium medicinal markets. Feedback on AgriFutures Sesame seed cropping Chicken meat RD&E Rice Programs benefits industry Commercial R&D field trials assist in the development of Blockchain technology An independent review into the The delivery of the chicken meat sesame as a high-value summer Australian Rice Partnership extension and training program cropping alternative in Australia. breeding program finds its operating ensures the industry’s focus is on Growers and consumers to effectively and growers give the Rice research outcomes, development benefit from the development Extension project the thumbs up, of best practice management of blockchain technology in the saying it is held in high regard. materials and training. AgriFutures Tea Tree Oil Program to establish traceability of pure tea tree oil. Section 1 16 Annual Report 2019-20 17
To grow the long-term prosperity Vision of Australian rural industries.
Goal Priorities Outcome Approach
Four distinct arenas define our 1 broad commitments in delivering To support the people driving the future Rural industries are Listening and Attracting capable people on the priorities of the Australian prosperity of Australian equipped with skilled influencing Government, our stakeholders, and People and rural industries and into careers in agriculture. regional communities people and the Building the capability of our ultimate goal which is to create Leadership by providing them with 1 future rural leaders. leadership to grow thriving rural industries and vibrant learning opportunities and and prosper. experiences. regional communities.
2
Delivering Informing debate on issues of Challenges and results To identify and nurture importance to rural industries. opportunities that National research and innovation Adapting new technologies for are common across opportunities that are Challenges and use across rural industries. 2 synergistic across rural rural industries Opportunities industries. Working collaboratively on issues are identified and common across rural industries. addressed.
3
Partnerships and collaborations Engaging industry participants To enhance the profitability in determining RD&E priorities. and sustanability of our Industry participants levied rural industries. Investing in innovation that are confident that Growing Regional communities and assists levied industries to be 3 Profitability the broader Australian more profitable. their levy investment economy depend on is delivering value. Delivering outcomes to maximise profitable farms. 4 industry uptake and adoption. Performance culture
High-potential Supporting the early stage To support new and emerging rural Emerging establishment of high emerging rural industries. industries 4 Industries potential rural industries. 5 established. Efficientbusiness practices Section 1 18 Annual Report 2019-20 19
AgriFutures Australia’s investment portfolio
Investment and Arenas Outcome Programs
Rural industries AgriFutures Rural Women’s Award 1 are equipped with AgriFutures Horizon Scholarship impact skilled people and AgriFutures Ignite Network People and the leadership to Leadership grow and prosper. Rural Women’s Award Alumni startup.business In 2019-20, AgriFutures Country to Canberra
Challenges and National Rural Issues Australia managed 147 new 2 opportunities that evokeAG. are common across growAG. rural industries projects across all four Arenas. National Challenges extensionAUS and Opportunities are identified and addressed. Farmers2Founders The total investment of the new Bridge Hub
Nationally coordinated initiatives: projects is more than $27m. • Climate Research Strategy for Primary Industries • The Rural Health and Safety Alliance • Biocontrol of weeds • Securing pollination • Australian biomass and bioenergy assessment
Industry Rice 3 participants are Chicken Meat 147 $ 341 $ 27.9m 50.8m confident that their Export Fodder Growing Profitability levy investment is Honey Bee and Pollination delivering value. Thoroughbred Horses Ginger Tea Tree Oil Pasture Seeds No. of new New project No. of current Total allocated projects expenses projects expense (all current Smaller levied industries: projects over the life • Goat Fibre • Deer of the projects). • Buffalo • Ratite • Kangaroo
High potential New and emerging emerging rural rural industries 4
industries Emerging Industries established. Section 1 20 Annual Report 2019-20 21
Measuring success
Arenas Priorities Key Performance Indicator Measure Units Target Achieved KPI Results 2019-20 Notes
Attracting capable Annual intakes of students into Australian Council 1,800 per - No survey statistics available Data is only available for the 2018-19 period because 1 people into careers in agriculture and agricultural science of Deans Agriculture annum for 2019-20 it is still being collated for 2019-20. Intakes are new agriculture course at Australian universities annual survey first year students. 1,382 (including agriculture and People and related courses) in 2018 Since 2016 there has been a steady decrease in the Leadership intake of students studying agriculture or agriculture- related courses but since that time it has levelled off.
Enrolments (which refers to all students in the courses from first to final year) has remained steady between 2016-2018, at more than 4,000 students.
Building the capability 80% of our stakeholders feel Annual Stakeholder 80% 84% • The feedback from stakeholders clearly of future rural leaders their confidence as a leader Survey suggests that the leadership programs has has increased significantly or increased the confidence of participants very significantly as a result of as leaders. participation in an AgriFutures Australia People and Leadership • Almost one in three reported the program program “had very significantly” increased their confidence as a leader.
• The results indicate a positive endorsement of the programs in instilling confidence into participants.
Grow the AgriFutures Ignite Network 1,500 2,122 members The Ignite Network Facebook group continues Facebook group to 1,500 members to grow with 1,486 “active members” (70%) with a minimum of 70% participating from a total of 2,122 members. Of the group’s as “active members” members, 60.8% are female and 39.2% are male. Of the 2,122 members, 263 live in Sydney, 242 live in Melbourne and 176 live in Adelaide (representing the group’s top three cities). The majority of members are Australian, however there are overseas members representing New Zealand, India and the United Kingdom.
Deliver one major 1 event Not achieved due to COVID-19 25 candidates have been accepted into the capacity building program 2020 Australian Institute of Company Directors for AgriFutures Ignite (AICD) Capacity Building Program. Due to the Networking members situation around COVID-19 and the social distancing protocols put in place, this was due to be held in May 2020. This event is now being held online in November 2020. Section 1 22 Annual Report 2019-20 23
Measuring success
Arenas Priorities Key Performance Indicator Measure Units Target Achieved KPI Results 2019-20 Notes
More than 80 AgriFutures Rural Alumni 80 More than 140 members Continued the promotion of the AgriFutures 1 Women’s Award Alumni participants Facebook Rural Women’s Award Alumni Program which are confirmed within the second year has more than 300 members; facilitated People and of the Alumni Program, starting and networking events and established the establishing an AgriFutures Rural AgriFutures Rural Women’s Award Alumni Leadership Women’s Award Alumni Advisory Panel Advisory Panel. The AgriFutures Rural Women’s Award Advisory Panel (with five women) was announced on Tuesday, 11 September 2019 at the Alumni Lunch at Hotel Kurrajong, Canberra.
80% of AgriFutures Horizon Scholars Survey of 80% 83% Supported Horizon Scholars through industry secure employment in our rural participants placements, conducted industry-building industries or a related sector within workshops and facilitated industry networking six months of graduating opportunities.
Informing debate on Inform debates of national Number of significant 5 8 Eight of these projects were developed under the 2 issues of importance to significance to rural industries National Rural Issues Emerging NRI Forum. The themes of this work rural industries through research studies (NRI) studies published were: international agricultural trade subsidies, National each year provenance and storytelling, alternative protein production, land use planning, sectoral planning Challenges and for a $100bn sector by 2030, integrating NRM Opportunities and industry-led sustainability, improved carbon markets, and community trust.
Adapting new Develop agrifood technology Number of new 1 per 4 Supported commercialisation of Hive Haven technologies for use innovation that will identify, test technologies entering annum and Q Camel through the Farmers2Founders across rural industries and commercialise ideas and commercialisation program. Also supported a new biocontrol agent technologies of researchers phase with private for weeds and seasonal prediction models for and entrepreneurs for use in sector participation climate variability through two Research and Australian rural industries Development for Profit Projects.
Facilitate one international 1 event Delivered evokeAG. 2020 evokeAG. was held 18-19 February 2020 and agricultural technology event to lift was attended by more than 1478 Australian the prosperity of Australian agrifood and international delegates. industries that engages people and business to share ideas and connect
Working collaboratively Deliver ten collaborative rural Number of 10 per 15 AgriFutures Australia led six, including on issues common research projects that deal with collaborative initiatives annum two new Rural RD&E for Profit programs, across rural industries issues of national significance involving other RDCs and participated in nine cross-industry that positively affect more than collaborations. one sector of agriculture Section 1 24 Annual Report 2019-20 25
Measuring success
Arenas Priorities Key Performance Indicator Measure Units Target Achieved KPI Results 2019-20 Notes
Engaging industry Percentage of growers Annual Stakeholder 80% - N/A 98% of levy payers believe it is important or very 3 participants in comfortable or very comfortable Survey important for Australian Agriculture to have an determining RD&E paying the R&D levy organisation like AgriFutures Australia. priorities Growing 71% of levy payers reported that they were satisfied Profitability or very satisfied that their R&D levy was being invested to achieve the outcomes they expected.
Investing in innovation 85% of KPIs outlined in Percentage of KPIs 85% 97% 334 of 344 planned project milestones that assists levied program specific RD&E five met in each industry satisfactorily met objectives (97%). industries to be more year plans are met program RD&E plan profitable
Delivering outcomes Stakeholders rate the value Annual Stakeholder 75% 79% 79% Levy payers rate the value of AgriFutures to maximise industry of AgriFutures Australia’s Survey Australia’s Information products and services uptake and adoption information, products and as good or excellent. services as high or very high 67% of levy payers agree or strongly agree that AgriFutures Australia encourages them to innovate.
52% of levy payers agree or strongly agree that AgriFutures Australia has encouraged translating R&D to on farm practices.
52% of levy payers agree or strongly agree that AgriFutures Australia has increased the capability / skills of people within my industry.
Stakeholders are comfortable or Annual Stakeholder 80% - N/A 71% of levy payers reported an involvement in very comfortable with the level of Survey at least one AgriFutures Australia sponsored engagement between AgriFutures engagement event, workshop or training, or field Australia and the industry Host one annual Levied 1 2 day, or evokeAG, etc. Industry Advisory Panel Chairs meeting Hosted two Advisory Panel Chairs events: 1 x meeting at Summit July 2019, 1 x participation in Host one a key 1 1 the 2020 Levied Industries forum (June 2020). stakeholder forum 20 Levy payers joined 23 Advisory Panel Chairs, Deputy Chairs, and AgriFutures Australia Board members to discuss how AgriFutures Australia engages with, and meets the needs of, the levied industries, in an online Forum (June 2020). Section 1 26 Annual Report 2019-20 27
Measuring success
Arenas Priorities Key Performance Indicator Measure Units Target Achieved KPI Results 2019-20 Notes
Final deliverables from research As recorded in the No target - 81% 42 of 54 (81%) final deliverables were reviewed, 3 projects are reviewed, approved Research Management set approved, and submitted for publication within and submitted for publication System one month of being submitted. Growing within one month of the final deliverable being submitted Profitability
Research program R&D As reflected in the Within 2% This was achieved with the R&D expenditure expenditure is managed within financial statements 10% across the 13-levied industry investment 10% of the annual budget program managed within 2% of the PBS budget.
Supporting the early Generate enhanced economic Number per annum One new Hemp (approximately $10 million In 2019-20 the area cultivated for Hemp was 4 stage establishment benefit by investing in R&D to rural based on area of planting) 2,500 Ha nationally (an increase from 111 Ha of high potential rural support five new rural industries industry nationally in 2012). Emerging industries with high growth potential to exceed $10m per annum (GVP) In previous years AgriFutures Australia has Industries achieved the following:
• 2018-19: Hazelnuts (approximately $10 million to $12 million based on area of planting).
• 2017-18: Black truffles (approximately $11 million based on rolling three-year average).
• Other Emerging Industries supported by AgriFutures Australia that have already reached or exceeded the $10m per annum threshold include crocodiles, dairy goats and gamebirds/quail.
• 24 industries have been identified with the potential to reach $10m per annum threshold by 2022 (Coriolis Report).
Facilitate and support at least Number per annum 1 Commenced growing the Australian Design and deliver a Native Ag+Food Tech one industry capacity building Native Ag+Food sector, an Challenge to source technology solutions activity to establish or advance investment to explore technology from both mature technology developers and emerging industries and capability gaps in targeted startups that have developed solutions. native ag+food value chains that are likely to be inhibiting commercial growth in the sector and to pilot interventions Section – 02 Section 2
Arena and industry reports
Arena 1 – People and Leadership 30-39
Arena 2 – National Challenges and Opportunities 40-73
Arena 3 – Growing Profitability 74-131
Arena 4 – Emerging Industries 132-137 Arena and industry reports Section 02 Section 2 30 Annual Report 2019-20 31
Arena 1 People and Leadership AgriFutures Rural Women’s Award
Goal Outcome 2. In 2019, the 2019 AgriFutures Rural Women’s Award Deliverables for 2019-20: State/Territory Winners were involved in the inaugural To support the people driving the future prosperity Rural industries are equipped with skilled people “AgriFutures Summit”, a gathering of over 120 More than 500 guests including Alumni, the private of Australian rural industries and regional and the leadership to grow and prosper. stakeholders from across the AgriFutures business. sector, industry, government, and the media attended communities by providing them with learning Some of the other stakeholders included: AgriFutures the AgriFutures Rural Women’s Award Gala Dinner opportunities and experiences. Programs Horizon Scholars, Levied Industries Panel Chairs and National Announcement at Parliament House on and a number of Advisory Panels. At the Summit, Tuesday, 11 September 2019. • AgriFutures Rural Women’s Award To build prosperous and sustainable rural industries, the Rural Women’s Award cohort participated in a we need rural leaders with the skills and knowledge • AgriFutures Horizon Scholarship four-day workshop where they received training, Applications for the 2020 AgriFutures Rural Women’s to make informed decisions about the future of their • AgriFutures Ignite Network development and networking opportunities. Award opened on Wednesday, 12 September and closed enterprises and industries. Thursday, 31 October 2019. Applications for NT closed • AgriFutures Rural Women’s Award Alumni on Sunday, 26 January 2020. A total number of 109 We believe that increasing and supporting the human • startup.business applications were received. capacity to drive improvements in industry through Summary of program • Country to Canberra the adoption of RD&E outcomes and innovation is just The AgriFutures Rural Women’s Award is Australia’s leading The 2020 AgriFutures Rural Women’s Award State/ as important as the research itself. award acknowledging and supporting the essential role Territory Winners will remain as their State/Territory Winner until September 2021 when the National While new technologies, systems, processes and Highlights and achievements women play in rural industries, businesses and communities. The Award provides a platform to inspire and support Winner and Runner Up of this cohort will be announced business models are important, people are the critical at a gala event at Parliament House. element in ensuring the growth of Australian rural 1. The AgriFutures Rural Women’s Award Gala Australian women to use and develop their skills to benefit industries. Dinner and National Announcement was held their industries and communities. The 2020 AgriFutures Rural Women’s Award virtual at Parliament House Canberra on Tuesday, 11 program began online. As such, AgriFutures Australia is committed to September 2019. Jo Palmer, NSW/ACT State Over the past two decades, the Award has gained a supporting rural people through continued investment Winner was named the National Winner and Claire significant profile, and is recognised as a program of in leadership, capacity and skills development Moore, VIC State Winner was named Runner Up. influence among parliamentarians, industry and media. programs like the AgriFutures Rural Women’s Award, Each state and territory winner receives a $10,000 AgriFutures Horizon Scholarship and the AgriFutures Westpac bursary for innovative ideas and projects, Ignite Network. access to professional development opportunities and Alumni networks.
Plan for 2019-20 Outcomes in 2019-20
Increase applications for the program The number of applications reached 109, an increase $1,441,255 $1,331,437 $1,307,106 from 101 in 2019 and 89 in 2018.
Hold a four-day development workshop The 2019 AgriFutures Rural Women’s Award State/ Territory Winners came together in July 2019 to participate in a workshop in Hahndorf, SA in conjunction with the Horizon Scholars.
Total program Total program Total program expenses expenses expenses Host a sell-out Gala Dinner and National A capacity crowd of over 500 guests attended the event. 2017–18 2018–19 2019-20 Announcement event Section 2 32 Annual Report 2019-20 33
AgriFutures Horizon Scholarship AgriFutures Ignite Network
Highlights and achievements Summary of program Highlights and achievements Summary of program
1. The AgriFutures Horizon Scholarship was open for the AgriFutures Australia is committed to supporting the next 1. The Advisory Panel met for the inaugural The AgriFutures Ignite Network is a program for passionate first time to university students in their final two years generation of leaders that will drive the future prosperity AgriFutures Summit in July 2019. The Ignite rural leaders, innovators and entrepreneurs. AgriFutures of study. This new model encourages career readiness of Australian rural industries and communities. The Advisory Panel members discussed National Ignite Network members influence, make changes, innovate and assists scholars in developing meaningful AgriFutures Horizon Scholarship is awarded to students Rural Issues, engagement more broadly and have and are interested in exploring agribusiness trends. Their connections with industry as they are preparing to studying an agriculture-related undergraduate degree or a begun to identify the issues and opportunities for ideas and knowledge will shape the future of agriculture enter the workforce. Science, Technology, Engineering, Maths/Finance (STEM) panel members to drive cultural change either and its long-term prosperity. The AgriFutures Ignite degree with relevant majors aligning to agriculture. through the Facebook group or panel members Network is made up of two main groups: 2. In 2019 the Horizon Scholars were involved in the talking to their networks. inaugural “AgriFutures Summit”, a gathering of In partnership with industry sponsors, the AgriFutures 1. A Facebook group where members share information, over 120 stakeholders from across the AgriFutures Horizon Scholarship supports students enrolled in full-time 2. The Ignite Advisory Panel attended evokeAG. ideas, learning and development opportunities. business. At the Summit, the Scholars participated in study at an Australian university by providing: 2020 in Melbourne and actively participated in 2. The AgriFutures Ignite Advisory Panel – 10 members a week-long workshop where they received training, all sessions and networking opportunities. The who report directly to the AgriFutures Australia • A bursary of $5,000 per year for the final two years development and networking opportunities. panel met informally for breakfast and took part Managing Director on trends, opportunities and of their degree in a series of interviews, some of which have challenges facing Australia agriculture. • Professional development workshops already been used to promote the importance of the Australian Institute of Company Director’s • Annual industry work placements aligned with the Deliverables for 2019-20: Foundation Course to the Ignite Network. scholar’s areas of interest and their sponsor’s industry The aim for 2019-20 was to continually engage passionate 3. The AgriFutures Ignite Network has a closed • Opportunities to network and gain knowledge at a rural leaders in the AgriFutures Ignite Network across the Facebook group for members to connect with range of industry events. following areas: each other. As of 30 June 2020, there were Deliverables for 2019-20: 2,122 members who actively use the group to 1. Information and knowledge share stories, opportunities and information 2. Ideas and collaboration The AgriFutures Horizon Scholarship applications opened with each other. on Monday, 21 October 2019 and closed on Friday, 22 3. Unlocking professional development and November 2019. A total of 86 applications were received. leadership skills 4. Uncovering emerging initiatives. Horizon Scholars completed a two-week work placement in late 2019 and early 2020. There has been a great In 2019-20, consistent communications were the focus variety of placements, including a placement with the for building the AgriFutures Ignite Network. Members Australian Wool Innovation Head Office in London, contributed significantly, meaning opportunities were a placement on a cattle station in Kununurra and a regularly shared among the AgriFutures Ignite Network. placement with CSIRO in Sydney.
Plan for 2019-20 Outcomes in 2019-20 Plan for 2019-20 Outcomes in 2019-20
Hold a week-long professional The entire AgriFutures Horizon Scholarship cohort came together in July Grow the AgriFutures Ignite Network to As of June 30 2020, the AgriFutures Ignite Network Facebook group had development workshop 2019 to participate in a workshop in Hahndorf, SA in conjunction with the more than 500 members 2,122 members. 2019 AgriFutures Rural Women’s Award State/Territory winners.
Engage the AgriFutures Ignite Network 25 candidates have been accepted into the 2020 Australian Institute of Connect the AgriFutures Horizon Eight Horizon Scholars were given the opportunity to attend evokeAG.. through one major capacity building event Company Directors (AICD) Capacity Building Program. Due to the situation Scholars to opportunities and building 2020. Several Scholars also attended the 2019 AgriFutures Rural around COVID-19 and the social distancing protocols put in place, this was their networks Women’s Award Gala Dinner and National Announcement. In late 2019, due to be held in May 2020 but has been postponed until further notice. two scholars closely aligned with AgriFutures Australia industries were asked to attend Advisory Panel meetings and the Henty Field Days to represent the program and the organisation. Advisory Panel Members: Guy Coleman Lucinda Hawkins Sally Leigo Andrew Duver Jessica Fealy Nicolas Lyons Joshua Gilbert Simone Kain Oli Madgett Susan Hall Section 2 34
AgriFutures Rural Women’s Award Alumni
Highlights and achievements Summary of program
1. The first AgriFutures Rural Women’s Award Advisory The AgriFutures Rural Women’s Award Alumni program Panel was announced in September 2019. The key focuses on fostering a vibrant and active community and priorities of the RWA Advisory Panel are to work with delivering tangible personal and professional benefits for the RWA community to identify topics for professional its members through engagement across three program development activities, to select and support streams – Connect, Mobilise and Inspire. participants in the mentoring program, to lead and coordinate initiatives to raise the profile of the Award Deliverables for 2019-20: and the Alumni and to build the community through engagement on Facebook and at events. The second annual Alumni Lunch was held at Hotel Kurrajong in Canberra on Tuesday, 2. The AgriFutures Rural Women’s Award has a 11 September 2019. closed Facebook group for Alumni to connect with each other. As of 30 June 2020, there are 145 There were 60 attendees at the lunch including Alumni, members who actively use to the group to share Westpac representatives and AgriFutures Australia stories, opportunities, learning and development representatives. The AgriFutures Rural Women’s Award ideas and information with each other. Advisory Panel were announced at the 2019 Alumni Lunch.
3. In June 2020, AgriFutures Australia launched The RWA Travel Subsidy was made available to the the inaugural Rural Women’s Award Alumni AgriFutures Rural Women’s Award Alumni, which financially Newsletter, distributed bimonthly to encourage assisted 12 Alumni to attend the Gala Dinner and National connection within the Alumni network. Announcement that was held Parliament House on Tuesday, 11 September 2019.
Plan for 2019-20 Outcomes in 2019-20
Host an Alumni lunch the day of the The second annual Alumni Lunch was held on Tuesday, Gala Dinner 11 September 2019 at Hotel Kurrajong, Canberra. There were 60 attendees.
Launch the Travel Subsidy to provide The RWA Travel Subsidy took place in 2019, Alumni assistance to attend the Gala with 12 Alumni accessing the subsidy. Dinner and National Announcement
Launch the Advisory Panel The AgriFutures Rural Women’s Award Advisory Panel was announced on Tuesday, 11 September 2019 at the Alumni Lunch at Hotel Kurrajong, Canberra.
Advisory Panel Members: Mary Retallack Jacqueline Wilson-Smith Sandra Ireson Lillian Lever Jackie Jarvis
Section 2 36 Annual Report 2019-20 37
startup.business Country to Canberra
Highlights and achievements 1. Gympie State High School, QLD – 33 students Highlights and achievements Summary of program 2. Manilla Central School, NSW – 23 students 1. More than 190 students from across Australia took 1. 18 young women from across rural, regional and Founded in 2014, Country to Canberra is an award-winning part in the 2019 startup.business program. 3. Mount View High School, NSW – 22 students remote Australia came together in Canberra not-for-profit that runs nationwide programs providing for the annual Country to Canberra Power Trip. education, leadership and mentorship opportunities 2. 65 original business ideas were generated as a result 4. Kinross Wolaroi School, NSW – 24 students They undertook leadership and media training, to regional, rural and remote teenage girls. Country to of the 2019 startup.business program. 5. Ballarat Grammar School, VIC – 20 students mentoring from CEOs and politicians, meet and Canberra is a leading voice for young women committed to strengthening rural communities into the future. In 3. The Brilliant Business Kids Festival took place on 6. Cleve Area School, SA – 50 students greets with inspiring role models and more. Friday, 29 November 2019 at the University of Sydney. 2019, AgriFutures Australia was again the proud Diamond 2. In 2019, the first “Careers” Fair driven by More than 100 students and teachers completed 7. Kempsey High School, NSW – 21 students sponsor of this important program. AgriFutures Australia” was included in the Power a full day of masterclasses, workshops and panel The 2019 program culminated with a Pitch Week where Trip program. The Careers Fair included six discussions. Deliverables for 2019-20: each school held an event for students to pitch their ideas/ rotating stations where the Power Trip winners solutions developed as part of the program. The winning could speak to different experts regarding their In 2019, 18 young women participated in the five-day Summary of program pitches from each school were then selected to attend the career pathway options, Ignite Network’s Angela leadership program called the “Country to Canberra Brilliant Business Kids Festival at The University of Sydney AgriFutures Australia and startup.business have joined Hughes participated in the Careers Fair. Power Trip”. AgriFutures Australia sponsored 10 spots on Friday, 29 November 2019. All pitches were based forces to deliver an exciting education program to teach on this trip with young women travelling from across around an agricultural challenge and/or opportunity. 3. The 2019 Power Trip Panel Discussion was high school students in rural and regional Australia how to Australia to participate. “Overcoming the odds - power, equality and life’s solve problems facing agriculture using innovation and an Applications for the 2020 program opened on toughest moments”. This session featured Horizon The workshop commenced on Sunday, 24 November entrepreneurial mindset. Monday, 19 August 2019 and closed on Friday, 29 Scholar Emma Moss and discussed important 2019 and consisted of activities such as: November 2019. issues of gender equality, careers in agriculture Deliverables for 2019-20: and activism. AgriFutures Australia is supporting the following five • Public speaking training Applications for the 2019 program opened on Friday, schools through the 2020 program: • A leadership development workshop 18 January 2019 and closed on Friday, 8 February 2019. 1. Kinross Wolaroi School, NSW • A financial wellbeing workshop AgriFutures Australia supported the following seven schools through the 2019 program: 2. Cleve Area School, SA • The Careers Fair driven by AgriFutures Australia 3. Gympie State High School, QLD • A tour of Parliament House, where participants had the opportunity to meet the Prime Minister. 4. Manilla Central School, NSW 5. Mount View High School, NSW
Plan for 2019-20 Outcomes in 2019-20 Plan for 2019-20 Outcomes in 2019-20
Expose more than 100 Year 9 and 10 students to More than 190 students from across Australia took part in Create opportunities for cross collaboration Participants from the AgriFutures Horizon Scholarship and entrepreneurial thinking and agricultural programs the 2019 startup.business program. for Country to Canberra to link to other AgriFutures the AgriFutures Ignite Network participated in the Careers through the startup.business partnership Australia programs Fair and Panel Discussions at the Country to Canberra Power Trip workshop in Canberra. Section 2 38 Remote work advocate and founder of Pointer Remote Roles, Jo Palmer.
In the spotlight AgriFutures Rural Women’s Award Winner
The 2019 AgriFutures Rural Women’s Award National Winner, Jo Palmer is a remote work advocate and founder of Pointer Remote Roles. During COVID-19 she has been inundated with requests for support from companies moving to remote work.
As many businesses and workers Her vision enables others to also Collaboration and now consider the unfamiliar world contribute to the prosperity of rural communication of “working from home” Jo Palmer is and regional Australia. Initially optimistic there is a silver lining to inspired by her own network of If you’re used to being in the these challenging times. highly-qualified professional office, incidental collaboration friends, many unable to make the and communication usually “Talk about a crisis to make people most of their skills as a result of happens in person. This does look at remote work as a legitimate living in regional areas. not automatically transfer to way to do things,” said Jo Palmer. the virtual world. Collaboration “This mad rush to ‘go remote’ has the and communication takes effort, As Jo knows only too well, rural, potential to open up a can of worms consideration and negotiation regional and remote areas in that organisations haven’t thought of when being done remotely. I Australia hold a wealth of highly before,” said Jo Palmer. suggest come up with a Remote qualified and experienced Communication Strategy or Policy professionals and much of this “There are some serious so everyone is on the same page. talent is sitting idle, particularly considerations that business among women. Pointer Remote owners and managers need to take Culture and inclusion Roles provides a valuable pathway into account.” for companies, corporations and Maintaining (or completely reshaping) government agencies to fill positions So here are Jo’s top tips to help your company culture needs to be with the best candidate for the job, business owners and managers front of mind when working in a regardless of where they live.” Based survive working from home: distributed team. Regular check- in The Rock, near Wagga Wagga, Jo ins to ensure everyone is feeling Palmer personally demonstrates that Work Health and Safety implications supported is vital. Boundaries around location is no barrier for individuals for your team work expectations need to be set and looking to create impact, innovate Managers are still responsible for the there also needs to be a huge amount and make a difference. safety of their staff, even when they of consideration, patience and work from home. It is management’s understanding being demonstrated responsibility to ensure that throughout your organisation. Many workspaces are safe so you don’t will be working with kids at home or have Workcover come knocking if other caring responsibilities, so take there is an incident.We recommend it easy on your team and ensure that having a WHS Audit of your team’s you are showing empathy. home offices as soon as possible. With many organisations being thrust into remote work situations for the first time, we understand that there is much confusion and uncertainty. The most important consideration is the WHS implications for your employees working from home. Section 2 40 Annual Report 2019-20 41
Arena 2 National Challenges and Opportunities National Rural Issues
Goal Outcome Highlights and achievements Summary of program
To identify and nurture research and innovation Challenges and opportunities that are common across 1. The Changing Landscape of Protein Production: The National Rural Issues Program invests in research opportunities that are synergistic across rural sectors. rural industries are identified and addressed. Opportunities and challenges for Australian to inform national policy development and debate on agriculture study was instrumental in providing issues important to rural industries. This includes taking Australian rural industries are faced with challenges Research programs industry and government with credible information leadership on research where there may be cross-sectoral and opportunities that are both industry-specific and on the implications for Australian agriculture in and national interests. The Program delivered a range of National Rural Issues: common across rural sectors. Beyond the commodity response to opportunities and challenges of an research supporting policy and national decision making level, our rural industries require leadership to identify evokeAG. emerging market for alternative proteins in the by government and industry. These included engagement and respond to national rural issues and enhance shared growAG. coming decade. with groups such as the National Farmers’ Federation, the benefits. Australian Government Department of Agriculture, Water extensionAUS 2. Farmers2Founders (F2F): AgriFutures partnered and the Environment, state governments and other Rural Unlike other RDCs that represent one or a few similar Farmers2Farmers in a pilot F2F program which aimed to attract and Research Development Corporations. Strong stakeholder industries, AgriFutures Australia manages RD&E for a develop proactive, innovative Australian primary engagement and involvement in these research projects diverse portfolio of plant and animal industries. As such, Bridge Hub producers looking to grow and transform their has helped identify key policy knowledge gaps and ensure it is uniquely placed to assist Australian rural industries businesses through cutting edge innovation and that research outputs are relevant, practical and able to be to prioritise and drive cross-sectoral RD&E. Nationally coordinated initiatives: adoption of new technologies. Key initiatives used by decision makers. • The Climate Research Strategy for Primary Industries delivered through the program included: 16 AgriFutures Australia brokers partnerships, facilitates workshops (400 participants), two Pre-Accelerator priority setting and provides advice to strengthen the • The Rural Health and Safety Alliance Priorities Program (24 participants), Business Growth national agricultural research and innovation effort. It • Improved seasonal forecasting Bootcamp Program (8 producer-led teams) and the also complements individual industry RD&E by investing 1. Informing debate on issues of importance to • Biocontrol of weeds Early Adopter Program (10 businesses engaged). in research of cross-sectoral value, in areas such as rural industries This partnership has supported producer-led climate change, natural resource management, and • Securing pollination innovations, increased digital literacy across the The Program delivered projects and reports across a safety and welfare. • Australian biomass and bioenergy assessment sector and supported businesses to deliver quality range of cross-sectoral issues including freight, trade, new products to market. health and safety, emerging technologies and agricultural technology. The Program also delivered collaborative 3. Agriculture – a $100b sector by 2030? In 2017, research corporation activities and initiatives in the National Farmers’ Federation announced a agricultural and veterinary chemicals, community trust bold vision for the industry to achieve $100 billion and rural health and safety. in farm gate output by 2030. This report provided an estimate of the current growth trajectory of The results from research reports and other projects Australia’s agriculture, fishing and forestry industries undertaken as part of the National Rural Issues $ $ $ and identified the growth opportunities and Program have contributed to industry and government 1,488,438 1,539,643 2,293,001 downside risks to achieve the target. It informed policy discussion and debate on cross-sectoral issues the prioritisation of investment decisions that will influencing the sustainability and profitability of have the greatest impact. It was led by AgriFutures Australia’s agricultural sector. Australia in partnership with Rural Research and Development Corporations. This work has also informed the future development of the sector, particularly in projects that have identified opportunities for continued growth as well as horizon scans, Total program Total program Total program which have been key to spotting emerging industry and expenses expenses expenses technology trends early and evaluating the potential impact 2017–18 2018–19 2019–20 and benefits for Australian agriculture. Section 2 42 Annual Report 2019-20 43
National Rural Issues
2. Adapting new technologies for use across Water and the Environment to identify and discuss cross- 1. Informing debate on issues of importance to rural industries rural industries sectoral projects for collaborative action. Now in its third year, 69 project ideas have been raised through Emerging technologies are changing the way agricultural the Forum of which 44 projects and initiatives have been Projects completed products are made, marketed and transported. delivered. The Forum is also a useful vehicle for supporting in 2019-20 Outcomes for 2019-20 Advances in genetics, sensory systems, the Internet direction setting for the sector in helping identify cross-sectoral of Things, device connectivity and remote sensing, opportunities and threats. Examples of collaborative projects automation, and food traceability all disrupt the supply PRJ-012020 This work provides an understanding of the current state of play with regard initiated through the forum process and delivered in 2019-20 chain. In 2019-20 AgriFutures Australia is realising International agricultural to agricultural subsidies paid by major agricultural exporting countries to include: Agriculture – A $100bn sector by 2030, Improving the benefits these new technologies present. Refer to subsidies and their impact their domestic producers and provides an analysis of the extent to which carbon markets to increase farmers participation, the changing evokeAG., growAG. and Bridge Hub. on Australian agriculture those subsidies are impacting Australian agricultural producers. This landscape of protein production and the Joint-RDC Community information will arm industries with information to inform their input into 3. Working collaboratively on issues common Trust Program. trade policy debate and discussions. across rural sectors Positive collaboration Many issues impact more than one rural industry. For PRJ-011998 This is a decision-making guide to assist small to medium businesses to determine example, succession planning, climate forecasting and In 2019-20, AgriFutures Australia engaged with all 15 Provenance how and where to tell their provenance stories, taking into account their target market managing the impact of climate; pollination services; RDCs, including the Council of Research and Development Storytelling Guidebook and audiences as well as their level of expertise and available resources. extension and adoption; biosecurity; and animal welfare are Corporations, to deliver five projects, conduct three and cofund an additional three Rural R&D for Profit Program projects. all issues that impact more than one sector. Collaboration Consumer trends, This resource was developed to help producers understand why consumers are and information sharing is essential. In 2019-20, the Rural Safety and Health Alliance (RSHA) technologies and interested in provenance stories and the technologies and platforms that are available In 2019-20 AgriFutures Australia has continued to partner, continued to deliver improved health and safety outcomes for platforms to help communicate them. Short case studies help illustrate how the technologies facilitate priority setting and provide advice to strengthen the the rural sector in partnership with nine participating RDCs. The have been used by producers to support their provenance stories. national agricultural research and innovation effort. Refer to Alliance began to develop activities and investments in a range Farners2Founders and extensionAUS. of initiatives that benefit Australia’s health and safety record for Provenance and • Case study 1: Candy Abalone agriculture and fishing industries. An example of three projects Storytelling case studies • Case study 2: Pure Gold Pineapples initiated throughout the year include in communications, data Deliverables for 2019-20 • Case study 3: OBE Organics and cross-industry death and injury risk comparisons. In 2019-20, AgriFutures Australia delivered: • Case study 4: Australian Wool Network Year one of the three-year Joint-RDC Community Trust program • Case study 5: Paris Creek Farms • Twelve studies on issues of national significance to was delivered. Over 200 industry members were consulted on the • Case study 6: Tasmanian Truffles rural industries and distributed to key stakeholders results and many industry conversations have been initiated. In through media releases and publications. total, 6461 people participated in the national trust survey, which This is a tool kit of templates for individual businesses to construct their provenance • Positive collaboration between Research and provides a roadmap for industry to develop capability across the stories and determine impact from communications. Often producers get overwhelmed Development Corporations, Government, industry and sector to monitor, anticipate and respond to shifts in the levels of with the options available, the templates help businesses plan and deliver on their the commercial sector in cross-sectoral investment trust, build a common language and collective national narrative provenance story. initiatives that positively impact the rural sector. around the community trust challenge and identify common AG. best practice approaches, strategies and interventions for • Delivered evoke an international agricultural PRJ-012063 This study focuses on the implications for Australian agriculture of the opportunities building, rebuilding and maintaining community trust. technology forum to lift the prosperity of Australian The Changing Landscape and challenges of an emerging market for alternative (i.e. non-traditional) proteins in agrifood industries that engaged people and business While AgriFutures Australia leads and supports a number of of Protein Production: the coming decade. to share ideas and connect. cross-sectoral, joint-RDC projects and programs, including three Opportunities and challenges for Australian Studies of national significance Rural Research and Development for Profit (RR&D4P) programs, it participates in other RDC initiatives including the Forewarned agriculture Of the 12 studies, two were collaboratively funded during is Forearmed RR&D4P project led by Meat and Livestock 2019-20 with engagement from eight RDCs and the National Australia, and the Plant Biosecurity Research Initiative managed Farmers’ Federation. A further four of the 12 were developed by Horticulture Australia Limited. with significant in-kind RDC contributions. Cross-sectoral work was initiated through the Emerging National Rural In 2019-20, AgriFutures Australia also partnered with other Issues Forum, a meeting of all the RDCs, the National organisations, including the Food Agility CRC, Farmers2Founders Farmers’ Federation and the Department of Agri-culture, and Bridge Hub, on projects outside of the RDCs. Section 2 44 Annual Report 2019-20 45
National Rural Issues
1. Informing debate on issues of importance to rural industries (continued) 3. Working collaboratively on issues common across rural sectors
Projects completed Projects completed in 2019-20 Outcomes for 2019-20 in 2019-20 Outcomes for 2019-20
PRJ-011297 The project examined various challenges that arise from the current land use PRJ-012006 This work traces the non-intentional death and injury statistics over the 12 Best practice land planning frameworks to inform a more comprehensive discussion across Australian Non-intentional Farm months from January to December 2019. The report highlights the greatest risk use planning jurisdictions on best practice approaches that recognise the long-term strategic Related Incidents in areas and tracks changes over time. This information is critical to understanding value of agriculture. The aim being to inform future improvements to land use Australia 2019 where the risks for Australian farmers lie and whether efforts to ameliorate planning that caters for future food and fibre production. these risks are working.
PRJ-011482 This analysis showed an estimated shortfall of $15.7b based on the current PRJ-012006 This six-monthly update provides a snapshot of the on-farm death and injury Agriculture – a $100b growth trajectory of the sector. This report was used to help inform and prioritise Non-intentional Farm statistics from 1 January to 30 June 2019. sector by 2030? investment decisions in areas that will likely have the greatest impact. Related Incidents in Australia 2019 mid-year report
PRJ-011336 This report examines and builds the evidence base on the integration of the activities 2. Adapting new technologies for use across rural industries Integrating NRM of the NRM regional bodies with industry-led sustainability initiatives and identifies with Industry-Led those areas of common value. The report also aimed to identify potential policy and Sustainability program settings to facilitate and encourage greater collaboration and integration Projects completed for those common values. in 2019-20 Outcomes for 2019-20 Rural Safety and Health The Rural Safety and Health Alliance is a partnership of nine Rural Research and PRJ-011108 This report is the culmination of two years’ work by the Queensland University of Alliance Development Corporations and aims to generate positive change in Australia’s rural Horizon Scanning Technology, uncovering 39 unique emerging technologies with potential for game- industry’s work health and safety performance. Opportunities for New changing impact on Australia’s rural industries. Many of the emerging technologies Technologies and showcased have been identified by industry experts as having significant Industries commercial impact and transferability from overseas or non-agricultural domains Joint-RDC Community AgriFutures Australia works with 11 RDCs, the National Farmers’ Federation and for use on Australian farms or within the agricultural value chain. Trust Program: Trust NSW Department of Primary Industries on a program to build, rebuild and maintain community trust in the Australian agriculture sector. This work contributes to a national narrative around community trust at a whole-of-sector scale. The Program PRJ-011294 This report presents an analysis of the opportunities for Australian agricultural will provide industry with access to a suite of practical tools and products designed Improving Carbon producers to participate in carbon markets and the barriers that are preventing to facilitate understanding of, and engagement in, monitoring, anticipating and Markets to Increase these opportunities from being realised. The report also provides recommendations responding to shifts in the levels of trust the community has in Australia’s rural Farmer Participation on the policy measures that can be used to mitigate these barriers so as to increase industries. The first round of reporting was undertaken in 2019-20 with over 200 and diversify agricultural participation in carbon markets. industry stakeholders consulted on the findings.
PRJ-011666 The pilot year of the program concluded in 2019-20. The aim of the initiative is to PRJ-010722 23 agvet chemical projects in 2019-20 are being managed on behalf of AgriFutures’ Farmers2Founders attract and develop proactive, innovative Australian primary producers looking to AgVet Chemical Projects levied and emerging industries, including truffles, ginger, plantago, chicken meat, grow and transform their businesses through cutting edge innovation and adoption pasture seed, hemp, quinoa, rice, lucerne seed, cocoa, green tea, hazelnuts and of new technologies. tea tree. Over a four-year period, data will be generated to support a permit or label registration of chemicals to address industry priority pests and diseases. Section 2 46
Bridge Hub
Bridge Hub was established in 2018 and is an agrifood The Challenge was introduced during evokeAG. 2020 tech innovation hub that is passionate about the positive via the Bridge Hub Challenge Wall which was used to and sustainable impact research and technology can identify and gather all of the water related problems have on the Australian agricultural and food sectors. we are faced with across the agri system. Prizes and Bridge Hub has developed global linkages to help drive investment opportunities for the best solutions to our the development of the Australian agrifood tech sector. It water problems are on offer to Australian, New Zealand partners with Australian agrifood researchers and startups and Israeli researchers, startups and students and to commercialise their activities in order to scale globally winners will be announced in September/October 2020. (Launch Pad) and connects global agrifood tech startups to Australian testbed opportunities (Landing Pad). Ecosystem Development:
2019-20 has been an extremely busy year, notwithstanding Bridge Hub is playing an active role in the development COVID-19 as the Australian agrifood tech sector continues of the Australian agrifood tech sector. The approach is to gain traction. Here is a brief summary of the key focused on growing the size of the market and the deal Bridge Hub activities. flow. Part of that engagement included Bridge Hub being involved in the creation of AusAgritech (www. Launch Pad Activities: ausagritech.org) in February 2020 and the establishment of the ANZ Agritech Council (https://www.anzagritech. Bridge Hub has conducted due diligence on more than org/) in September 2019. fifty investment opportunities during 2019-20. In February “we” welcomed Agronomeye (www.agronomeye.com.au) evokeAG as the first company to join the Bridge Hub Launch Pad. Agronomeye is developing water mapping technology The activities of Bridge Hub closely align with the goals AG. which will provide material benefits to farmers and the of evoke . As such, Bridge Hub continued its active AG. environment. We have been working closely with the involvement in evoke during 2019/20. It hosted the Agronomeye team to help build traction in Australia, the International Delegate Reception in collaboration development of their business model and supporting them with Callaghan Innovations and AgriFutures Australia. with their capital raising activities. In addition to the Water Challenge Wall, Bridge Hub assisted AgriFutures Australia in designing and hosting Landing Pad activities: the evokeAG. startup program and assisted with the identification of appropriate speakers and investors to Throughout 2019/20 Bridge Hub continued to undertake invite to the event. trials in Australia of a number of Israeli agrifood tech companies. Some of these technologies were water related, including CropX, N Drip and Tal Ya. These companies are all doing groundbreaking work in their quest to reduce the amount of water we need to use in our food production.
Water Challenge:
The Bridge Hub Water Challenge was launched during the year and its purpose is to uncover the best and brightest research, the most innovative ideas and the best startups that positively impact water sustainability within our agrisystem. It has the bold aim of trying to drought proof our agrisystem by being smarter with our water. Section 2 48 Annual Report 2019-20 49
evokeAG. and growAG.
Highlights and achievements Summary of program Steering Committee: Investor Working Group:
1. Doubling the size of Startup Alley in 2020 and In November 2017, AgriFutures Australia formed a • Arianna Sippel, Austrade • Matthew Pryor, Agthentic focusing on attracting both investors and farmers Steering Committee made up of agrifood tech leaders • Christine Pitt, Food Futures • Spencer Maughan, Finistere Ventures to the event, resulted in a platform for local and in Australia to further scope and develop a concept • Ethy Levy, Bridge Hub • Arianna Sippel, Austrade international innovators to showcase their ideas in paper and brief around hosting an international • Michael Dean, AgFunder • Jon Sandbrook, WNT Ventures front of a global audience. 100% of startups who agrifood tech event in Australia. • Peter Wren-Hilton, AgriTech NZ • Stu Bradbury, Sprout Agritech participated in the event rated the overall experience • Sarah Nolet, Agthentic • Jeremy Colless, Artesian AgriFutures Australia committed to leading this event. In as very high (94%) or high. • Ben van Delden, KPMG • Craig Shapiro, Bridge Hub late January 2018, the AgriFutures Board approved for • Michael Robertson, CSIRO • Robert Williams, Artesian 2. Across the two days and 29 sessions, there were 113 work to commence on the event. • Spencer Maughan, Finistere Ventures • Mark Callanan, Hummingbird speakers including 23 international speakers from • John Harvey, AgriFutures Australia • Michael Macolino, BDO In February 2018, AgriFutures Australia announced that nine countries. This speaker figure also includes • Belinda Allitt, AgriFutures Australia • Andrew Coppin, Affirmative Financial Services evokeAG. would take place in Melbourne at the Royal Exhibition eight Future Young Leaders and the 10 startups that • Pip Grant, AgriFutures Australia • John Harvey, AgriFutures Australia Building on Tuesday, 19 and Wednesday, 20 February 2019. participated in Local and International Showcases. • Michael Beer, AgriFutures Australia Top speakers included John Hartnett (SVG Ventures/ After the resounding success of the inaugural event, Startup Steering Committee: • Pip Grant, AgriFutures Australia THRIVE), Rachael Neumann (AWS), Mike Lee (Alpha the AgriFutures Board approved the event to go ahead Food Labs) and Jack Cowin (Hungry Jacks). • George Peppou, VOW on 18–19 February 2020 at the same location. • Tash Ayers, AgriStart 3. The size and diversity of attendees meant that • Cass Mao, Tenacious Ventures we had strong representation from all areas of • Dianna Somerville, Bridge Hub the ecosystem. By offering a primary producer Deliverables for 2019-20 • Dallas Pearce, AgriFutures Australia discounted ticket we doubled the primary producers • To position AgriFutures Australia as a thought leader in the room from 2019 to over 300 farmers, which in the innovation and agrifood tech space was a core objective of the event and made it more • To build collaboration and partnerships between valuable for other delegates to connect with the end AgriFutures Australia and the private sector Plan for 2019-20 Outcomes for 2019-20 user of much upstream innovation. • To create an event that will drive growth across the AG. 4. grow is in the final stages of construction and will agrifood tech sectors to benefit Australian agriculture Receive 75 applications for Startup Alley, with a 81 applications were received, including eight provide transparency across Australia’s agricultural minimum of five international applications international applications. innovation system, encourage collaboration, attract • To position AgriFutures as a reputable conduit and investment, and find commercial partners from centre of knowledge for agrifood tech and innovation AG. in Australia within Australia and around the world. grow is being Host five international delegations Hosted: developed in partnership with the other RDCs. • To create deal flow between investors and startups. • New Zealand (NZTE and Callaghan Innovation) • United Kingdom (Innovate UK / Global Business Innovation Programme) • Canada (High Commission of Canada) • Singapore (A*Star and CSIRO) • United States (SVG Ventures).
Total program Total program expenses income $ $ Host 70 speakers across the entire program, 113 speakers, including eight Future Young Leaders and 2,226,786 2019-20 1,618,288 2019-20 including 12 international speakers 10 speakers from the Startup Program.
23 international speakers from nine countries. Section 2 50 Annual Report 2019-20 51
Climate Research Strategy evokeAG. and growAG. for Primary Industries
Plan for 2019-20 Outcomes for 2019-20 Highlights and achievements investment and coordinated response in primary industries RD&E. CRSPI has 20 partners who are federal, 1. Carbon in Agriculture Industry Workshop state and territory governments, rural Research and Receive 25 applications for Future Young Leaders 43 applications including six international applicants. December 2019. Development Corporations and CSIRO. The role of CRSPI with at least one international application is to coordinate and communicate the RD&E effort 2. Pathways for Australian Primary Industries across partners and to stimulate and assist collaboration Climate Research Strategy Review March 2020. and co-investment to achieve cross-sectoral outcomes in Delegate numbers reach / exceed 1,300 1,478 delegates, including speakers and media. 3. Future Drought Fund Submission December 2019. climate risk, adaptation and greenhouse gas mitigation.
Summary of program CRSPI has three focus areas: adaptation to a changing Connect 200 delegates through the event app 99.8% of delegates downloaded the event app. and variable climate; emission intensity and markets; The program is in its final year of a three-year research and climate change in business and policy. 2,045 messages sent between delegates. strategy. This is the third phase of CRSPI which has been operating since 2000. The goal of the Climate Research Deliverables for 2019-20 158 meetings set between delegates. Strategy for Primary Industries (CRSPI) is to prepare primary industries for adaptation to our changing Coordination and management of collaborative activities and variable climate and mitigation of greenhouse for the primary industries in climate change and Total evokeAG. income and expenditure to be within Income: achieved 88% of income target, gas emissions from the sector through collaborative greenhouse house gas mitigation. 15% of budget falling within 15% of budget.
Expenditure: 96% of expense budget was used, falling within 15% of budget. Plan for 2019-20 Outcomes for 2019-20
Partner Forums May and September 2019 Priorities for collaborative research in climate adaptation, risk 85% of partners / sponsors rate their experience Experience: 100% of partners / sponsors / exhibitors and the mitigation of greenhouse gas emissions identified for and value of the contribution of evokeAG. as high or rated their experience of evokeAG. as high or very high the agricultural sector. extremely high (very high 71%, high 29%).
Value: 100% of partners / sponsors / exhibitors Carbon in Agriculture Industry Workshop Support to advance high priority greenhouse gas emissions rated their investment in evokeAG. as very or December 2019 accounting and reporting collaborative research which will extremely valuable (extremely valuable 28.6%, better position Australian agriculture for a trajectory toward very valuable 71%). lowering its emissions.
Australian Farm Institute Independent Assessment: The importance and benefits of taking a collaborative approach Develop an International Investor Working Group International Investor Working Group that co-developed Pathways for Australian Primary Industries Climate to RD&E to assist in the preparedness of Australian agriculture to help shape elements of the 2020 program a program that included an international investor Research Strategy March 2020 for our changing climate confirmed. New opportunities to network dinner. extend and build on current partnerships identified.
Rebuild and relaunch of CRSPI website Increased access by stakeholders to current knowledge on AG. Increase evoke social media following by 15% Facebook followers: increased by 206%. climate adaptation and emissions mitigation. across all channels Twitter followers: increased by 112%. Instagram followers: increased by 207%. Development of a collaborative proposal for Significant progress toward harmonising the accounting Newsletter reach: increased by 1,529%. a Common Methodology in Greenhouse Gas and reporting of greenhouse gas emissions across evokeAG. media mentions: Increase of 136%. Accounting for the agriculture sector the agricultural sector. A common method will assist Australia’s agricultural export industries’ credentials on international markets. Scope out growAG. platform and establish if there Identified that there were no suitable platforms are any solutions already in the market in existence. CRSPI Conference March 2020 Nil outcome as the conference was cancelled due to COVID-19 pandemic. Section 2 52 Annual Report 2019-20 53
Australia Biomass and Bioenergy Assessment (ABBA)
Highlights and achievements This information is collated and presented spatially Projects completed through the Australian Renewable Energy Mapping in 2019-20 Outcomes for 2019-20 1. Queensland University of Technology (QUT) developed Infrastructure (AREMI) interface. an analytic tool to aggregate biomass availability by radius from specified locations in Australia and to Data collected and uploaded will include: A core purpose of ABBA is to support the Argus Media – organiser of Argus Biomass Asia develop and demonstrate approaches for the use of development of industries, many activities were conference. Discussions to develop the potential for • The types, locations and volumes of existing biomass AREMI data tools to evaluate optimal combinations conducted in 2019-20 Australian companies to participate in this conference of biomass from multiple feedstocks for potential resources and and bioenergy industries. in 2020 and also Altus Renewables in Queensland and Department Environment and Science (DES) biomass energy plants. • Identification of other relevant spatially based another company looking at pelletising sugar cane sustainability policy team have commissioned information in communication with commercial trash – Burdekin Renewable Fuels. 2. Partnering with the Australian Bureau of Statistics external consultant, Ricardo, to undertake a participants in the renewable energy sector. to make current and future data gathering easier. materials flow analysis for organic wastes and Discussion and provision of ABBA data to Advanced This involved engagement with the ABS Statistical • Land capability for future biomass. residues in Queensland Energies Group scoping the re-development of the Collections group who manage the Agricultural Census Rocky Point sugar mill. and REACS survey. Focus on data formatting and Deliverables for 2019-20 future automation requirements. Provided information/data to a New Zealand based The project delivered numerous reports Australia- company looking at developing a pellet business in 3. Showcasing the ABBA program at the wide including: south east Queensland. International Tropical Agriculture Conference in Brisbane: “Value adding opportunities for • Modelling approach to identify land capability for Discussions between Ricardo and the Queensland agriculture through Biofutures”. dedicated bioenergy crops in Queensland. ABBA team are ongoing. The report has used ABBA information and will be completed in June 2020. Summary of program • Developing general machine productivity predicting model for thinning operations in Australia. • International Conference on Biomass Materials and Handling, Surfers Paradise (July 2019) Australian farms and land managers produce biomass • Large-scale feasibility of locating biomass-to- that can be used for production of bioproducts or energy. bioenergy conversion facilities using spatial • Victorian substrates testing regime in collaboration Making the most of this resource involves understanding information technologies: a case study on forest with C-Loop Power and Thermal and RMIT where it is and developing integrated regional solutions. biomass in Queensland. • Investigated the potential for a bioeconomy based industry in the Collie area, WA. AgriFutures Australia manages a project with the Australian Renewable Energy Agency (ARENA) to map Analytic tool to aggregate biomass where the biomass resources in Australia are on the availability by radius Australian Renewable Energy Mapping Infrastructure (AREMI). AgriFutures Australia also funds the Biomass ABBA made significant progress in the development and Producer website to showcase how regional solutions are demonstration of the first online analytics tool for the developing to make the most of these available resources. biomass data in AREMI. The tool allows users to select or enter a location on the AREMI platform and specify a The purpose of the Australian Biomass for Bioenergy radius around which to aggregate biomass availability data Assessment (ABBA) project is to catalyse investment reading from the information contained in the state-based $ $ $ in the renewable energy sector through the provision of data files. The system has been demonstrated with many 648,381 546,114 484,076 detailed information about biomass resources across of the states now operational in the development system Australia. This project delivers a national database including NSW, WA and SA. of biomass resources for the potential production of bioenergy across Australia. The Program also supported a PhD related to studies to understand to evaluate the optimal configuration and the optimal combination of multi-biomass approaches for the Project outputs will include detailed analysis of the Total program Total program Total program types, volumes and locations of potential bioenergy selected biomass energy plants with known production capacity. Three multi-biomass approaches were examined expenses expenses expenses feed-stocks in each state and land use capability for 2017–18 2018–19 2019–20 future biomass production. including Sugarcane waste (Bagasse and Cane trash, Forest waste (Sawmill residues) and Forest harvest residues; and Sugarcane waste and Forest waste. Section 2 54
In the spotlight evokeAG.
Farmers, industry leaders, innovators and global experts came together to connect and collaborate, recognising the opportunities in agrifood tech and innovation for Australian agriculture.
1478 people from 22 countries filled Amazon Web Services’, Rachael “There are many ways farmers can the Royal Exhibition Building in Neumann, said research and increase water use efficiency on their Melbourne on the 18 -19 February development (R&D) in startups is a farm. Across the industry, innovations 2020 for the second evokeAG event. critical foundation to drive innovation. in technology are only one small piece of the puzzle. Focusing on the AgriFutures Australia, Managing “At the moment Australia invests value of water to their business, and Director, John Harvey said evokeAG. 1.87% as a percentage of Gross the risks associated with volatile has once again delivered on its Domestic Product (GDP) and the water availability will help farmers promise to deliver leading-edge global average is 2.3%,” said panel determine which practices are best farming insights from the best in the member, Ms Neumann. suited to helping their business adapt world, and the response has been to a water limited future,” said Ms Fay. amazing. “In Israel, 4.9% of GDP is invested in R&D so I think we still need to get AgFunder’s Founding Partner Michael “Armed with the latest technologies, better and from a policy perspective, Dean capped off Day 2 with exciting innovations and insights, we can dive if we want to drive innovation, we news that investment into Australia’s into 2020 knowing that we have the need to exceed those numbers.” agrifood technology has jumped ability to respond to our changing AG. by 83 per cent. Fresh statistics in markets and opportunities across the The two-day evoke program saw AgFunder’s AgriFood Tech Investing agricultural industry,” said Mr Harvey. more than 100 speakers from eight Report – 2019 reveal Australia’s total different countries take to the stage investment is $90.3 million. A highlight was leading Australian to inspire, challenge and transform political journalist and former ABC the way we think about food and “Australia is one of the good news Insiders program host Barrie Cassidy farming into the future. In a breakout stories of 2019 with record growth who led a robust panel discussion session on how industry is adapting in agrifood tech investment. It is on how we can best respond to to Australia’s water shortages. also pleasing to see startups from population growth, increasing food Strategic Project Manager, Murray across the supply chain receiving consumption and a demand to Dairy, Amy Fay said producers are investment. There is still much to do cater for diversified diets. Hungry going through transformative change but it is very encouraging to see such Jacks Founder, Jack Cowin told the in their businesses in order to robust year on year growth over the audience that a long-term strategy achieve the step change in water use past three years,” said Mr Dean. is needed in Australia to drive efficiency required. innovation in agriculture. “The DNA of Australia is entrepreneurial, we are “One example in the dairy industry early tech adopters in this country is the move away from traditional and we’re well equipped in this perennial ryegrass species to other regard,” said Mr Cowin. crops and forages that are more water use efficient or flexible in “My concern is the big stuff, what are their water requirements. Adopting the building blocks that this country a different feed base system can needs to use to make us successful increase water use efficiency over the next forty and fifty years.” from 1t/ML to upwards of 3t/ML, or alternatively allow farmers to reduce irrigation altogether and use conserved fodder when water availability is very tight. Section 2 56 Annual Report 2019-20 57
Q Fever
Summary of program Deliverables for 2019-20 Plan for 2019-20 Outcomes for 2019-20 Q Fever is a disease of humans and livestock caused by The project aims to develop a better understanding of Coxiella burnetii bacterial infection. The research project the risk of Q Fever spread within and between Australian Biannual meeting Research collaborators met for a biannual face to face will develop a better understanding of factors influencing ruminant livestock enterprises; and develop national meeting at the University of Melbourne in February 2020. the risk of Q Fever spread within and between Australian guidelines for an emergency response plan to be used in ruminant livestock enterprises, and develop national the event of Q Fever outbreak in humans. guidelines for an emergency response plan to be used in Literature reviews Literature reviews were progressed, and sampling the event of Q Fever outbreak in humans. techniques refined. Specifically, the work will provide a better understanding of the drivers of Q Fever spread in farmed ruminants, including understanding the Q Fever reservoirs, Macropod pilot project The macropod pilot project testing was completed, and amplification and transmission pathways to help direct comprehensive macropod and livestock sampling protocols biosecurity resources more efficiently. In turn, this will have been developed. reduce the burden of an extremely debilitating disease in rural communities. This project will also provide knowledge that can be used to develop policies that will limit the Online workshop Hosted an online workshop for Tasmanian-based expert likelihood of a large and prolonged Q Fever outbreak in stakeholders, continued workshop qualitative data analysis Australia. This will help to maintain Australia’s position as and drafted a knowledge, attitudes and practices (KAP) an exporter of premium agricultural produce. questionnaire for Q Fever patients.
Scientific publications Project team members contributed to a paper, now published, investigating how Q Fever notifications are associated with variation in patient occupations or lifestyles.
Grant application Submitted a grant application to Agriculture Victoria, for a Q Fever focused project which would enhance and extend the existing project’s outcomes, and have another application in development, which proposes to investigate the human- animal interface in hotspots of non-traditional animal exposure/contact. Section 2 58 Annual Report 2019-20 59
Securing Pollination
Highlights and achievements Deliverables for 2019-20
1. Field work for the project is complete. Field research activities for the project concluded during 2019-20 with analysis and writing of these activities 2. Pollinator fact sheets and guides to bees in crops in the becoming the focus. final stages of development by all partners and for all $ $ $ focus crops. Key deliverables for the year included: 2,800,906 1,977,543 1,363,468
3. Relationships established between native and • Information booklet produced for growers of various honeybee visitation and crop yield and quality. crops across the project. This booklet lists the native bees collectively observed visiting a range of crops Summary of program across eastern Australia, and describes basic biological characteristics and identifying features of these bees This program aims to provide detailed scientific Total program Total program Total program information on pollinator effectiveness and densities, • Pollinator plant selector tool nearing completion. This expenses expenses expenses bee movements and pollination distances. It is hoped tool assists growers to generate site specific planting 2017–18 2018–19 2019–20 the assessment of pollinator habitats, particularly guides for their farms that selects appropriate plants foraging and nesting plants, will also assist in developing for revegetation that also support pollination outcomes. strategies against the Varroa mite. • Findings that demonstrate the relationship between Australian agriculture and horticulture rely on pollination native and honeybee visitation and fruit quality in from honey bees. It’s estimated that 65% of horticultural blackberry and apple, and crop yield in Lucerne. and agricultural crops produced in Australia require pollination services. Some of the most important • The presence of native vegetation has a positive impact questions and concerns currently facing pollination- on crop yields and quality in a number of crops. dependent industries will be answered in an Australian first multi-million-dollar research project.
This program involves collaboration between Australia’s most knowledgeable bee and pollination researchers to In-kind assess the contribution of pollinators to nine Australian contributions crops (apples, pears, Lucerne, almonds, canola, melons, Grant funding blueberries, raspberries and mangoes), investigate re-establishing native vegetation to support pollinator food and nesting resources, and use new technologies to communicate the findings to farmers.
Partner cash contributions
$5,255,000 $3,409,447 $5,135,457
Total project resources $13,799,904 Section 2 60
In the spotlight The true cost of trade barriers
A new study reveals the impact of global farm subsidies and agricultural trade policies on the competitiveness of Australia’s rural industries.
A new AgriFutures Australia-funded Report author Kym Anderson said Among some of the report’s study fills a knowledge gap in the the report’s key recommendations recommendations: current cost of trade subsidies, highlighted the important role of arming our rural industries and government trade negotiators in • Given that market price support governments with evidence to ensuring Australian agricultures’ provided by import barriers inform trade negotiations and policy global competitiveness. continues to be the dominant discussions going forward. policy instrument dampening “We shouldn’t solely focus on tariff Australian farmers’ The report International barriers when negotiating free trade competitiveness, the Australian agriculture subsidies and their agreements (FTAs), the research Government should continue impact on Australian agriculture, showed that domestic farm subsidies to seek opportunities to get them developed by internationally in competing countries are also lowered. renowned authors Kym Anderson significant impediments to Australia’s and Ernesto Valenzuela, found global competitiveness. We need to • Multilateral trade reform via that Australian farmers are on periodically review the global policy negotiations among the the losing end when it comes to environment and take a proactive World Trade Organization (WTO) global farm support policies. approach to levelling the international membership is the best way playing field via multilateral, regional of boosting national and global While Australia is a non-subsidising and bilateral trade agreements,” said economic welfare and would agricultural export country, the Mr Anderson. also provide the largest gains to most recent data shows that farm Australia’s net farm incomes and subsidies and import barriers abroad Import barriers (tariffs and tariff agricultural exports. lowered Australia’s net farm incomes rate quotas) remain the dominant by 15 per cent and reduced its farm protective policy instrument globally, • Even if there is insufficient WTO exports by 29 per cent. but domestic supports (budgetary member interest in multilateral transfers to farmers) have become reductions in import barriers at The findings were timely given the much more significant in the past present, the Australian uncertainty around global markets decade or so. Government should strive to get and Australia’s continued reliance on WTO members to at least reduce trade as a key driver towards the $100 The impact of farm policies abroad is the expansion of domestic billion farm gate growth target set by most notable in Australia’s red meat, subsidies to farmers, given their the National Farmers’ Federation. wheat and dairy industries, but rice recent and prospective growth and cotton exports are also negatively under current WTO entitlements. The findings equip our industries, impacted, especially relative to their policy makers and governments with production size. • Preferential trade agreements are the knowledge to negotiate better an additional avenue for trade deals for Australian farmers, Australia requires access to the most expanding farm export markets. fishers and foresters. up to date information and empirical Australia’s most important such analysis to inform discussions with opportunities at present are via Australia is increasingly connected key trading partners. This study offers the current trade negotiations with, and competing against, our a global perspective on Australia’s with the EU and the prospects of farming peers across the globe agricultural export operations and an FTA with the UK once it and there’s no better time for the an opportunity for our industries to completes its transition from Australian agricultural community re-double their efforts on the global exiting the EU. to reassess the impacts of global policy reform stage. trade policies. Section 2 62 Annual Report 2019-20 63
Promoting the Importance of Bees extensionAUS
Summary of program Outcomes for 2019-20 Highlight and achievement Deliverables for 2019-20
AgriFutures Australia received a grant from the Australian • Development of an industry communications plan for Six new Communities of Practice joined the In 2019-20, extensionAUS delivered: Government to promote the role of bees and their impact promoting bees based on an extensive industry and extensionAUS platform in 2019-20: • 56 people from four new Communities of on the entire food chain, to help protect bees and reduce community scoping survey. their decline. • Urban Plant Health Network Practice attended a two and a half day bootcamp • Prioritised research projects and commenced induction to extensionAUS in Melbourne during • Peri-urban Environmental Biosecurity Network Deliverables for 2019-20 investigation into legume pasture species as a floral September 2019. resource. • Botanic Gardens Biosecurity Network • Six new Communities of Practice joined Key deliverables for 2019-20 included: • Identified research opportunities of non-obtrusive extensionAUS in 2019-20: Urban Plant Health • Soil Moisture Monitoring • Provide support to the Australian Honey Bee Council techniques for hive health monitoring for American Network, Peri-urban Environmental Biosecurity (AHBIC) and state associations to develop resources Foulbrood disease. • Victorian Field Crop Diseases Network, Botanic Gardens Biosecurity Network, and build capacity. Soil Moisture Monitoring, Victorian Field Crop • Sustainable Energy Diseases and Sustainable Energy, bringing the • Provide support for the development of a virtual total to 16 communities of practice. resource library for beekeepers. Summary of program
• Provide support for research to develop methods for Through a web based digital platform, extensionAUS Grant funding hive health assessment; understand floral resource consolidates and organises existing knowledge, tools management; and identify opportunities to coordinate and resources for extension delivery by public and access to feed sources for bees. private providers.
It is led by three partner organisations: AgriFutures Australia, NSW Department of Primary Industries (NSW DPI) and Agriculture Victoria. The Australian Government Department of Agriculture, Water and the Environment also supports the platform via Agriculture Victoria who coordinate three biosecurity focused Communities of $ Practice. 183,575 $1,500,000 In 2019-20, these communities focused on a diverse range of themes including biosecurity, crop diseases, Total project resources soil, energy, dairy, poultry, irrigation, bees, food $1,500,000 innovation, extension practice, rural women, precision agriculture and young farmers.
Total program The platform has grown to incorporate a total of 16 expenses communities of practice, highlighting the program’s success 2019–20 and contribution to extension delivery and engagement across Australia’s rural industries.
A number of rural industries are also represented on the digital platform, including chicken meat. Section 2 64
In the spotlight Farmers2Founders Program
AgriFutures Australia partnered with Farmers2Founders (F2F), a new entrepreneurship program designed to support primary producers adopt emerging technologies, new business models and embrace changing consumer markets.
The F2F program has There is evidence a number of The initiative has attracted and producers are looking to diversify and developed proactive, innovative been designed to help develop new food and fibre products Australian primary producers producers build their to satisfy a dynamic domestic and looking to grow and transform international consumer market. their businesses. Regional entrepreneurial and workshops, held in locations technological skills, For the industry to realise the across Australia, showcased so they can solve National Farmers’ Federation’s target the latest trends and benefits of of a $100 billion agriculture sector by emerging new agriculture, food real industry issues, 2030, the growth of new industries and fibre technologies, and how capitalise on and will need to be much more rapid and cutting-edge technologies to help much more responsive to new trends grow their business. As a F2F commercialise new and ways of doing business. F2F partner, AgriFutures Australia technologies, and was established by thought leaders hosted dedicated F2F workshops and innovation specialists Sarah bring novel, high-value for its Levied Industries. Following Nolet (AgThentic) and Dr Christine the workshops, farmers ready products to market. Pitt (Food Futures Company). The to transform their businesses co-founders saw a gap between the on-farm and beyond the farm gate agriculture and tech communities could apply for the F2F innovators and knew a unique approach was or early adopter streams in needed to solve the problem. “Our aim agtech, and food innovation. is to elevate the role of producers to solve real problems and networks, Key statistics: explains Sarah Nolet. Producers have hard-won expertise, insights, context, • 16 workshops delivered, 400 and networks. We must unlock this attendees and 200 of them being potential and enable producers to producers catalyse more high value agrifood innovations.” • Two pre-accelerator programs delivered with a total of 24 “Changing global conditions in participants agriculture are creating a fantastic opportunity for our food and fibre • Business Growth Bootcamp Program industry in Australia, and we want – eight producer-led teams to make sure that producers have participated every opportunity to contribute their • Early Adopter Program – 10 experience and play a key role,” said businesses engaged through the Dr Pitt. We know there are producers program. who are ready to step forward to develop new technologies, new value F2F is supported by AgriFutures chains and new products and we Australia, Australian Wool Innovation, wanted to create a program that was Grains Research and Development designed specifically for them.” Corporation, Meat & Livestock Australia F2F thought leaders Sarah and Wine Australia. Nolet and Dr Christine Pitt. Photo courtesy of F2F. Section 2 66 Annual Report 2019-20 67
Underpinning Agricultural Productivity and Biosecurity by Weed Biological Control (Rural R&D for Profit)
Summary of program Deliverables for 2019-20
This project will undertake foundational and applied Key deliverables for 2019-20 included: In-kind research to integrated management of important weeds contributions that affect Australian agriculture and water resources. The • Project Activity Plan Grant funding project will focus on 11 major weeds and complete risk • Monitoring, Evaluation & Reporting Plan assessments of promising biocontrol agents identified, undertake large-scale releases of approved agents and • Communications & Extension Plan understand interactions between control methods, as well as progressing biocontrol research into new weed targets Outcomes for 2019-20 towards delivery. Field surveys will be used to validate a quantitative risk analysis approach to determining candidate Permits for importation and research on new candidate agents for African boxthorn into Australia were secured Partner cash agents’ suitability for release, providing more certainty contributions around risk assessment data. The project will extend beyond by CSIRO, and permit paperwork for importation of the current project on weed biocontrol funded by the Rural new candidate agents for fleabane into Australia were R&D for Profit to increase speed to impact. submitted. $7,492,034 $3,752,928 $4,399,617 AgriFutures Australia has been awarded a grant through NSW DPI initiated novel image analysis methodologies the Rural RD&E for Profit program to deliver the project. using high resolution for identification of Hudson pear. Total project resources AgriFutures Australia has contracted research agencies NSW DPI developed a nomination for African Lovegrass $15,644,579 including: CSIRO, NSW DPI, Queensland Department of to the Environmental Impact Committee (EIC). Agriculture and Fisheries and the Victorian Department of Jobs, Precincts and Regions, with a further 21 organisations QDAF and their collaborators have commenced a engaged as funding partners. range of activities associated with obtaining plant materials, establishing international collaborations The project will focus on 11 weeds of importance to many and identifying host specificity. The preferred biological different agricultural industries in Australia: African control agent for Clidemia has been identified as well Boxthorn, Cabomba, Grains weeds (Fleabane, Sowthistle), as potential collaborators in three countries who could Navua Sedge, Hudson Pear, African Lovegrass, Silverleaf provide samples. Nightshade, Prickly Acacia, Endemic Giant Rat’s Tail, Clidemia Hirta and Sporobolus spp. An application seeking approval of Navua sedge as a biological control target has been prepared for submission to the EIC. Native range surveys in Tanzania, Kenya and Nigeria have identified a new smut fungus (Cintractia sp. nov.) attacking flower heads and seeds as a promising biological control agent.
VIC DJPR has sourced an important potato cultivar $2,932,538 ‘Nadine’ from the USA for field experiments with silverleaf nightshade. They have also completed an important milestone in the Biocontrol Risk Model through the drafting of risk criteria with national researchers and the regulatory body.
Total program expenses 2019–20 Section 2 68
In the spotlight Emerging alternative proteins
New research into the changing landscape of protein production in Australia estimates there will be an additional opportunity of $19.9 billion for the sector by 2030, of which $3.1 billion is attributed to alternative protein categories.
The study concluded that there is Australian agriculture in response this research as part of its mandate more than enough room for both to an emerging market for to lead cross-sectoral research into animal-based and alternative alternative proteins up to 2030. rural issues of national and global proteins in the Australian market. It provides reliable forecasts significance. Forecast global demand for protein is to underpin policy, regulatory strong and will accommodate growth changes and advocacy positions. The report found the production in both sectors. of alternative protein offers Segregation and competition opportunity for Australian The report, The Changing Landscape between traditional and agriculture, provided that: of Protein Production, funded by alternative protein producers are AgriFutures Australia’s National Rural not as big a threat as expected, • The industry is mindful of Issues Program and delivered by the the report identifies real the limited natural capital Australian Farm Institute, provides opportunities for the sector. which can be used for protein ground breaking analysis which production in a resource estimates there will be additional Enabling traditional and alternative constrained future and makes opportunities for the Australian protein producers to work in informed decisions on the most protein sector by 2030. This includes collaboration – such as using the by- efficient and sustainable use of $8.9 billion for Australian animal product of insect farming as feed for this capital proteins, $7 billion for traditional chickens, pigs or fish – can provide a • Australian agriculture presents plant-sourced proteins, while mutual sustainability benefit. a united front in the aim of alternative protein products could Australian Farm Institute Executive producing sufficient protein for deliver a $3.1 billion opportunity for Director, Richard Heath said while the growing population Australian agriculture. there’s been a lot of hype around the • The industry monitors the Alternative proteins are those potential of so-called ‘fake meat’ as marketing language used foods that act as a substitute a disruptor to the livestock industry, by some alternative protein for traditional animal-sourced this research shows the emerging companies to ensure accurate protein. This includes plant- market for alternative proteins should representations of both plant- sourced and non-traditional not be seen as a threat to existing and animal-sourced proteins proteins including plant-sourced production systems but as a means are presented to consumers. meat, dairy and egg substitutes, of diversifying choices for producers, processors and consumers. cultured or cellular meat, insects Overall, the emerging market for and algae. “New demand for animal protein alternative proteins should be seen not as a threat to existing This research provides important from a growing global population will production systems but as a analysis not only on the size of outweigh any additional market share means of diversifying choices the alternative protein trend but that alternative proteins may gain in for producers, processors and more critically on the implications the next decade,” Mr Heath said. consumers to fill the growing gap for Australian producers and AgriFutures Australia’s National between global protein demand investors. It identifies the Rural Issues Program invested in and supply. aggregate opportunities for Section 2 70 Annual Report 2019-20 71
New Biocontrol Solutions for Sustainable Management of Weed Impacts to Agricultural Profitability (Rural R&D for Profit)
Summary of program Deliverables for 2019-20 Plan for 2019-20 Outcomes for 2019-20
This project aimed to develop biocontrol agents for the Key deliverables for 2019-20 included: control of ten weeds of importance in Australia. Five The project identified the following • African boxthorn (Lycium ferocissimum): the rust, of these weeds are Weeds of National Significance • Application to release the sagittaria fruit potential biocontrol agents (Puccinia rapipes) two leaf-chewing beetles, (Cassida (WoNS): cabomba, sagittaria, prickly acacia, silverleaf feeding weevil. distinguenda and Cleta eckloni) and a leaf-mining weevil nightshade and African boxthorn. Fleabane and (Neoplatygaster serietuberculata). • Hosting tests on bio-agents for prickly acacia, sowthistle have become major weeds of cropping cabomba, mother-of-millions, and ox-eye daisy. • Cabomba (Cabomba caroliniana): the cabomba weevil land while mother of millions and giant rat’s tail grass (Hydrotimetes natans.). impact on grazing land. Ox-eye daisy is becoming a • Hosting specificity testing for agents on cabomba, • Fleabane (Conyza bonariensis):- the rust (Puccinia cnici- serious environmental weed in crown land. fleabane, sowthistle (France), African boxthorn, oleraceiI) and a stem gall forming tephritid fly. ox-eye daisy (Switzerland), mother-of-millions Biocontrol agents, when released and established in the (Madagascar), giant rat’s tail grass (South Africa) • Ox-eye daisy (Leucanthemum vulgare):-a rhizome-feeding Australian environment, will benefit primary producers and prickly acacia (Australia and South Africa). moth (Dichrorampha aeratana) and a root-feeding beetle through the general landscape level reduction in weed (Cyphocleonus trisulcatus). pressures on rangelands, croplands and water assets, • A preliminary study of agents for silverleaf • Silverleaf nightshade (Solanum elaeagnifolium):- a tingid thereby enabling better integrated weed management nightshade in the US, prickly acacia in India and (Gargaphia arizonica) and a mite (Aceria sp.). outcomes. Farmers directly affected by the weeds targeted novel fungi in giant rat’s tail grass. with these new biocontrol agents will see a gradual • Sagittaria (S platyphylla and S. calycina):- a fruit-feeding reduction in their control costs, as the released agents weevil (Listronotus appendiculatus), a crown-boring weevil build-up their populations and cause increasing damage (L. sordidus) and the tuber-feeding weevil (L. frontalis) on the weeds. • Giant rat’s tail grass (Sporobolus pyramidalis and S. natalens): - the fungus Ustilago sporoboli-indici and a The methods used: wasp (Tetramesa sp.). • Stakeholder engagement to identify management • Prickly acacia (Gall thrips (Acaciothrips ebneri), a gall mite goals for the targeted weeds and opportunities for (Aceria sp.) and a gall fly Notomma( mutilum). integrated weed management. Despite extensive surveys and testing, no suitable agents for • Literature reviews to identify prospective sowthistle or mother of millions were identified during this biocontrol agents. project, due to lack of host specificity. • Molecular characterisation of the weeds and Applications have been submitted or are in preparation to bioclimatic models to select most appropriate release agents for sagittaria, cabomba, ox-eye daisy, African region(s) to survey in the native range. boxthorn, fleabane and prickly acacia. These agents will be imported into Australian quarantine during 2020. • Native range field surveys to characterise the diversity of pathogens and insects that may be potential agents and prioritised their further study.
• Investigations on the biology and host range of prioritised agents in the native range and in quarantine facilities in Australia to determine if they are safe for release into the Australian environment. Section 2 72 Annual Report 2019-20 73
New Biocontrol Solutions for Sustainable Management of Weed Impacts to Agricultural Profitability (Rural R&D for Profit)
Plan for 2019-20 Outcomes for 2019-20 Project resources
AgriFutures Australia has been awarded a grant through the This project brought together a network The contributors to each weed project are as follows:- second round of the Rural R&D for Profit program to deliver of international collaborators spanning the project called ‘New Biocontrol Solutions for Sustainable Australia, Europe, Africa, South America, • African boxthorn: Primary Industries Research South Management of Weed Impacts to Agricultural Profitability’. Asia and North America. As well, there Australia (PIRSA), and rangelands and pastoral were significant resources committed stakeholders and land managers, Ravensthorpe Shire. from industry project partners both • Cabomba: SEQwater, Sun Water and other rural water financially and in-kind. asset managers. In-kind • Fleabane: Grains Research and Development Corporation contributions (GRDC). Grant funding • Sowthistle: Grains Research and Development Corporation. • Mother of Millions: Northwest LLS, QDAF. • Ox-eye daisy: Central Coast Shire, NSW Biocontrol Taskforce. • Giant rat’s tail grasses: (QDAF, NSWDPI NSW Weed Partner cash Biocontrol Taskforce (via Rous County Council), Bundaberg contributions Regional Council, Gladstone Regional Council and HQPlantations Pty Ltd.). • Sagittaria: Goulburn Murray Water, Murrumbidgee $6,230,437 $3,179,818 $3,603,635 Irrigation, Coleambally Irrigation, Goulburn Broken CMA, NQ dry tropics, Central Coast Council, Central Murray Total project resources Council NSW Office of Environment and Heritage, Wyong $13,013,890 Shire, Murray LLS. • Silverleaf nightshade: PIRSA, GRDC, Bland Shire Council, NSW DPI, Murrumbidgee Landcare. • Prickly acacia: (Vachellia nilotica).
$2,160,407 $1,869,639 $1,838,856
Total program Total program Total program expenses expenses expenses 2017–18 2018–19 2019–20 Annual Report 2019-20 75
Arena 3 Growing Profitability
Goal Outcome
To enhance the profitability and sustainability of Industry participants are confident that their levy our levied rural industries. investment is delivering value.
Regional communities and the broader Australian Research programs: economy depend on profitable farms and industry. There is a clear link between economic prosperity • Rice and our capacity for innovation and uptake of new • Chicken Meat technology. Rural industries that are well placed • Export Fodder to adopt new ideas and use technology to create • Honey Bee and Pollination productivity benefits, are more likely to establish a competitive advantage and are better structured for • Thoroughbred Horses sustainable growth. • Ginger That’s why AgriFutures Australia invests in research, • Tea Tree Oil innovation and learning initiatives that enhance the • Pasture Seeds profitability and sustainability of the agriculture, fisheries and forestry sectors. Smaller levied industries: AgriFutures Australia empowers our levy-paying • Goat Fibre industry participants to shape RD&E priorities, encourage industry uptake of innovation and • Buffalo support our rural industries to adapt to changing • Kangaroo environments at operational, market and • Deer regulatory levels. • Ratite Section 2 76 Chair of the Chicken Meat Advisory Panel, Guy Hebblewhite.
Industry Advisory Panels
The role of Industry Advisory Panels Levied Industries Capacity Building Program
AgriFutures Australia currently partners with eight key The Growing Profitability and People and Leadership levied agricultural industries for the delivery of RD&E arenas have come together to deliver a new Levied through Industry Advisory Panels. These panels perform Industries Capacity Building Program. This program key tasks to guide and assist AgriFutures Australia with supports recipients who are directly involved with our levied investments, including: industries. The Levied Industries Capacity Building Program was launched in November 2019 and three opportunities 1. Advising on the industry requirements for research were delivered in 2019-20. They are outlined below: and development through the development and • Australian Institute Company Director’s Course (AICD) monitoring of RD&E Plans 12 individuals working across our levied industries 2. Advising on proposals for RD&E investment in participated in the five-day AICD Course. The following accordance with the objectives and strategies of industry stakeholders who were selected from an industry-specific RD&E Plans application process were: Andrew Hayward (Export 3. Monitoring, reviewing and advising on research Fodder), Angela Urquhart (Rice), Danny Le Feuvre (Honey support for the relevant industry Bee and Pollination), Dee-Ann Prather (Tea Tree Oil), Guy Cunningham (Pasture Seeds), Guy Hebblewhite (Chicken 4. Advising on, and assisting in, the dissemination, Meat), Katherine Balding (Chicken Meat), Kellie Crossley adoption and commercialisation of the results of (Rice), Michael Flanagan (Tea Tree Oil), Nicole Christodoulou RD&E activities. (Ginger), Georgie Troup (Export Fodder) and Matthew Colvin (Honey Bee). Total investment: $132,471.95 Industry Advisory Panels are representative of the RD&E AG. programs implemented by AgriFutures Australia. Panel • evoke attendance and travel subsidy members are selected on a skills-basis and may contribute 16 individuals working across our levied industries attended with capacities in strategic management, governance, evokeAG.. Attendance and travel was subsidised. The event industry-specific knowledge, science, technology, leadership took place on Tuesday, 18 and Wednesday, 19 February 2020 and ethics. AgriFutures Australia encourages diversity in Melbourne. Total investment: $32,037.79 through age, gender and geographic location, working with specific industry sectors to foster leadership skills to support • Mentoring Program succession planning for future panel members. AgriFutures Australia together with Ricegrowers Industry Advisory Panels typically meet quarterly or as Association of Australia (RGA) offered individuals working business needs’ require. Panels convene for the purpose within the rice industry or another levied industry, the of research after proposal planning and assessment opportunity to participate in a 12-month Mentoring in investment areas identified in the RD&E Plan for Program to advance their personal and business their individual industry. Members are encouraged development via one-on-one mentoring. The following to be advocates for their industries, be active in industry stakeholders who were selected from an extending research outcomes for their industry, and application process were: Corey Ryan (Export Fodder), maintain engagement within rural communities and Stephen Donohue (Honey Bee and Pollination), Bryce their business networks to better inform AgriFutures Riddell (Export Fodder), Ryan Hopcroft (Chicken Meat), Australia in service delivery. Jodie White (Ginger), Tim Bateman (Honey Bee and Pollination), Cameron Collins (Thoroughbred Horses), Alex O’Reilly (Tea Tree Oil), Brendan Missenden (Honey Bee and Pollination), and Cecelia O’Gorman (Thoroughbred Horses). Total investment (excluding RGA investment): $23,639.00 Section 2 78 Annual Report 2019-20 79
Rice
Highlights and achievements Summary of program Deliverable for 2019-20
1. Independent reviews of the two major The GVP for rice in 2019-20 was $102.2 million, down from To improve the productivity and sustainability of the investments in the AgriFutures Rice Program $174.9 million in 2018-19 due to continued dry conditions Australian rice industry through ongoing improvement – the Australian Rice Partnership breeding that significantly reduced water allocations in the rice in water use efficiency to deliver gains in on-farm program and the Rice Extension project. The production areas of the southern Murray Darling Basin. productivity as well contributing to environmental and review of the breeding program found that social sustainability in rice growing areas. During the 2019-20 year the Rice Program conducted partnership between NSW DPI, SunRice and independent reviews into two of its largest investments AgriFutures Australia is operating effectively – the Australian Rice Partnership breeding program and and made key recommendations to drive Advisory Panel Members: the Rice Extension program. These reviews focused on improvements in the program. These included program performance and identified where efficiencies the implementation of molecular markers and • Drew Braithwaite • Russell Ford can be made. The reviews will be used to guide further a fully functional database to further improve (Chair) • Laura Kaylock investment made in both rice extension and rice breeding. the performance of varieties released, which will • Michele Groat • Dr Laurie Lewin (Vice Chair) • Dr Ben Ovenden in turn provide more options to growers. These The AgriFutures Rice Program provided a number of • Dr Vito Butardo • Lucinda Staley recommendations will become the focus for the capacity building opportunities during 2019-20 which • Brian Dunn • Antony Vagg program over the next investment period. The align with the Rice Program Five Year RD&E Plan Rice Extension review found that the program objective “Extension, sustainability and human capital”. is held in high regard by many rice growers. The Together with RGA the Rice Program supported 10 rice team and its activities are seen to be effective growers to attend evokeAG. in February 2020, allowing in engaging with, and delivering relevant an opportunity to see innovative new technology for information to stakeholders. agriculture first-hand. The Program also released travel bursaries of $5,000 for up to five applicants to 2. The AgriFutures Rice Program provided support attendance at the International Temperate development opportunities for those working in Rice Conference in Brazil or the Rice Technical Working the rice industry by announcing travel bursaries Group in the USA. Attendees provided their insights of $5,000 for up to five applicants to support and recommendations back to AgriFutures Australia, attendance at the International Temperate Rice which ranged from the initiation of long-term rice Conference in Brazil or the Rice Technical Working trials, exploration of genotyping options, to program Group in the USA in February 2020. specific improvements. 3. Peter and Renee Burke won the Sunrice Grower The Rice Program is contributing to Rural R7D for of the Year in August 2019 for their outstanding Profit project, Smarter Irrigation for Profit (Phase agronomic and business management on the 2). The program of work is tackling the challenge of 1280-hectare irrigation farm they own and operate reduced water availability by focusing on practical, cost near Jerilderie, NSW. $ $ $ effective strategies to improve the water productivity 3,675,621 3,679,158 3,364,233 of Australian cropping and pasture irrigators. The project is a partnership between the major irrigation industries of cotton, dairy, sugar, rice and grains, research organisations and farmer groups. Involvement in this project works towards the strategic objective outlined in the Rice Program Five Year RD&E Plan of “Cross-sectorial Total program Total program Total program research required to achieve the Dry Rice 1.5 t/ML water expenses expenses expenses use efficiency target by 2030”. 2017–18 2018–19 2019–20 Section 2 80 Annual Report 2019-20 81
Rice
Projects completed Strategic objectives Projects completed Strategic objectives in 2019-20 Outcomes in 2019-20 for 2017-22* in 2019-20 Outcomes in 2019-20 for 2017-22*
PRJ-009805 Under this project, a rapid method Rice breeding – varieties and Rice Travel Bursaries 2020: Travel bursaries each worth $5,000 Extension, sustainability and Next-generation for ranking rice genotypes for their quality improvement. for five people assisted participants human capital. healthy rice starch digestibility properties has been PRJ-012428 in attending either the International developed. This development has assisted Cross-sectorial research Peter Snell – Australian Temperate Rice Conference in Brazil Published: Next in selecting and breeding low GI, healthy required to achieve the Dry Rice rice breeder or the Rice Technical Working Group in generation healthy rice rive varieties that will attract a premium 1.5 t/ML water use efficiency the USA, with both conferences held in in domestic and international markets. by 2030. Published: 7th International February 2020. The bursaries provided Temperate Rice Conference. an opportunity for recipients to upskill Pelotas, Brazil 9th to 12th their knowledge, broaden their networks PRJ-010712 The objective of this project was to Rice breeding – varieties and February 2020 and improve their general understanding Post Graduate measure multiple levels of starch quality improvement. of global rice production systems. “top-up” Scholarship structure in rice and relate those PRJ-012418 M Van Leeuwen structures to how quickly we digest Christopher Proud – Post- rice. Adoption of the knowledge from Doctoral Research Fellow this project could contribute to the rice industries goal of expanding the choice Published: Report on travel of rice quality types that digest slowly in to the International Temperate our local and global markets. Rice Conference, Brazil, and Technical Rice Working Group, USA PRJ-011226 Rice grower and Extension Coordinator Extension, sustainability and PRJ-012417 Australian Rural for the Rice Extension program, human capital. Russell Ford – Sunrice Head Leadership Program Troy Mauger was awarded the ARLP of Agronomic R&D 2018- Course 25 scholarship for Course 25. Participating
Troy Mauger in the ARLP has provided Troy the Published: 7th International opportunity to obtain additional skills Temperate Rice Conference. Published: Australian to continue his leadership development Pelotas, Brazil 9th to 12th Rural Leadership and make a valuable contribution to his February 2020 Program (ARLP) community. Scholarship for Course PRJ-012411 Danyon Williams 25 – Troy Mauger – Graduate agronomist
Published: Australian Rice PRJ-010188 The project covered a wide range of topics Farm productivity – crops Industry Capacity Building Rice Pest and Disease and has some components of immediate inputs, crop protection and the Travel Bursary Biosecurity 2 relevance to rice producers and farming system. commercial agronomists. Other sections PRJ-012423 Published: Rice of this project involved the evaluation of Harriet Brickhill – pests and diseases pesticides that are yet to be registered Rice Extension Officer and legally available for use in rice. Published: International Temperate Rice Conference
*Strategic objectives 2017-22 relates to individual levied industry RDE Plans. Section 2 82 Annual Report 2019-20 83
Northern Rice
Highlights and achievements NSW Department of Primary Industries (NSW DPI), Projects completed Strategic objectives University of Queensland (UQ) and University of Southern 1. The project identified two new fragrant long Queensland (USQ) to meet the challenges through a in 2019-20 Outcomes in 2019-20 for 2017-22 grains, three new soft-cooking long grains, three coordinated and collaborative research effort. new tropical medium grains, and one new low-GI PRJ-010763 This project was key to field activities and Extension, communication medium grain within the target grain quality classes The RD&E program, that formed the basis of the Developing and experimentation for the other projects and was and partnership for northern Australia. project, comprised four projects that investigated building capacity responsible for extension within the production regions. development. the following areas, in relation to the development of The team conducted more than 50 field experiments over 2. The project identified regional impacts on a rice industry in northern Australia: the three year period of the project. yield and grain quality that will impact variety recommendations to ensure quality requirements are A1: Varietal breeding and selection – to deliver Due to a relatively small number of growers, extension met and farm productivity is maximised. market characteristics, e.g. a soft-cooking long was able to consider specific information relating to the grain, soft-cooking fragrant, tropical medium grain grower’s farming system. The advice included farming 3. A best practice rice production manual and crop and low glycaemic index (GI) varieties. system development, nutrition management, and chemical protection guide were published specific for rice management programs. Knowledge passed directly to production in northern Australia. This was produced A2: Pests and disease – focus on northern Australia growers in real time allowed the project to succeed in by Rice Extension. and identification of disease races for bacterial adopting new techniques for advancement of rice production blight and rice blast. systems in northern Australia based on information Summary of program A3: Agronomy – optimisation of rice yield through gathered from this project. Rice production in northern Australia focuses on the establishment and crop nutrition, environmental and best practice management. development of specialty domestic and international PRJ-010812 The grain harvested from the wet season was uniformly Rice breeding - varietal markets, with high quality long grain and fragrant rice, A4: Adoption – grower engagement through Developing high of superior quality to dry season rice. This was measured and quality improvement. which command premium prices, best suited to the region. established farming networks, delivering quality rice for for the proportion of broken grains and chalk, which This strategy complements the rice industry in the Riverina information packages and developing management Northern Australia are the two factors that determine price of rice in most region of NSW and helps the rice industry manage supply options for rice within the northern farming system. international and domestic markets. Moreover, the challenges and limits its overall exposure to risk due to cooking and eating quality of the wet season rice was climate and markets. A5: Post-harvest handling – address variability in much better than the dry season rice, and the difference rice and handling post-harvest including moisture was significant. This was explained by the different Alongside the opportunities presented through management, transport and storage. temperatures that occurred when the grain was ripening. a viable northern rice industry there are also In the wet season, the grain ripened during the cooler considerable challenges to establishment and Field experiments for variety evaluation and months of the year, whereas dry season rice ripened development. These include: determination of agronomic best management in mid-summer. Further, wet season rice accumulated practice, pest and disease surveys, development of more biomass which probably enabled greater capacity • Breeding and selection of suitable varieties that protocols and establishment of facilities for quality to transport substrates to the grain for the synthesis and produce high yields of marketable rice testing, and employment of staff and post-doctoral deposition of starch and protein. • Understanding the nature of and controlling pests positions for the project was accomplished. and diseases Deliverables for 2019-20 • Understanding agronomic issues and To improve the productivity of the Northern Australia rice • The positioning of rice in the farming system and industry through ongoing investment in variety evaluation, adoption of rice farming in northern Australia. development of the understanding of the interaction between genotype, environment and management, and AgriFutures Australia established a concerted program of identification of key pests and disease and conditions work focused on these challenges. This program brought facing incursions. together SunRice, Rice Research Australia Pty Ltd. (RRAPL),
Northern Australia Rice is funded through a Commonwealth Government grant and does not involve any Rice Program levy funding. Section 2 84
Northern Rice
Projects completed Strategic objectives in 2019-20 Outcomes in 2019-20 for 2017-22
PRJ-010813 In this three-year project, breeding activities were Rice breeding - varietal Developing varieties undertaken to evaluate germplasm that was suitable for and quality improvement. with agronomic tropical regions in Northern Australia. The objective was to integrity/market identify candidate varieties for four categories: (1) soft- cooking fragrant variety, (2) soft-cooking long grain, (3) tropical medium grain and (4) a low glycaemic index (GI) variety.
This project identified nine candidate varieties for the four varietal categories suitable for production in the northern region. Although further testing and evaluation is required to screen these candidate varieties before commercial production, this project has provided a foundation for future rice production.
PRJ-010814 The project established best management practices for: Crop inputs, crop Developing rice protection and grain growing packages • Sowing windows for varieties within the key receival. for Tropical North production regions Australia • Plant population highlighting the importance for maximum yield and management of disease • Nitrogen fertiliser application rate and application strategies across both wet and dry season and minimising the risk of runoff that is important for the health of the Great Barrier Reef. The project established critical soil test values for phosphorus, potassium, sulphur.
Key pests and disease were identified.
Project Team:
• John Smith (AgriFutures • Russell Ford (RRAPL/SunRice) • Venea Dara Daygon (UQ) Australia) • Peter McDonnell (SunRice) • Peter Snell (NSW DPI) • Melissa Fitzgerald (UQ) • Tony Matchett (Savannah Ag) • Alison Gregory (SunRice) • Gavin Ash (USQ) • Adam Sparks (USQ) • Ando Radanielson (USQ) • Deb Slinger (NSW DPI) • Keith Pembleton (USQ) Section 2 86
In the spotlight Making every drop count “ The combination of technology, irrigation design, Australian rice growers are among some of the world’s most efficient producers. As an industry, it grows more top-quality crop protection products and rice with less water than anywhere else in the world but a Nuffield Scholar is calling for even greater change. rice genetics has opened the door to maximising water use
That’s a key research finding of NSW rice The report also investigated the role This has led to largely inefficient grower and 2017 Nuffield Scholar, of genetic enhancement of rice by water usage and aquifer depletion efficiency like never before.” Mark Groat, who with support from looking at the successes of short- by between 0.15 and 0.45 metres AgriFutures Australia, travelled season rice varieties and stubble per year. across the world to the United States, management in North-West India. South America, China and India Mr Groat said benchmarking of drawing comparisons and insights for “Winter crop rotation and stubble Australian data shows an identifiable rice production back in Australia. management dramatically increased yield gap of two tonnes per hectare water use efficiency while enhancing between the average and top twenty The Nuffield Scholar said although soil characteristics in that region. per cent of growers. Australia is a small market “at It’s a focus on the system as a whole the bottom of the world”, its world rather than the individual crop that is “Identifying and addressing causes reputation is much bigger than its the key learning here.” of this gap, decreasing evaporation market size. and increasing marketability are The report featured a series of key components to increasing “This opportunity provided by comparative case studies from water use efficiency in terms of AgriFutures Australia to meet some international rice growing regions dollars per megalitre.” of the industry leaders in the world with similar geographic and climatic of rice research enhances that traits as Australia, such as the USA’s One of the report’s key reputation,” said Mr Groat. Mississippi Delta, Uruguay, North- recommendations is industry refocus East China and North-West India. on benchmarking, extension and “Rice has an underserved research into in-situ management. reputation of high-water use As a rice grower with an agronomic/ and comparatively low water extension background and experience “The combination of technology, use efficiency, or the amount of in irrigation layout and design, Mr irrigation design, crop protection product produced per unit of water. Groat wanted to explore how we products and rice genetics has Regardless, rice is just another crop compare to other rice growing areas opened the door to maximising competing within a common water of the world by investigating: water use efficiency like never market. Therefore, profitability before,” said Mr Groat. per megalitre is paramount and • What is their attitude to water increasing water use efficiency and what can we learn from each “If as an industry we can focus is they key driver to sustained other? on effective in-situ stubble production of Australian rice.” management, identify and prioritise • What opportunities exist not only extension services on yield gaps, The report, ‘The Future of Australian at the farm level but also at re-evaluate our research priorities Rice Production‘ examined increasing industry level? and better tell our story, then we water use efficiency through the twin will be better placed to seize the lens of production per megalitre and • How does an emphasis on water opportunities before us. return per megalitre at a time when use efficiency give the industry producers are facing lower water a marketing edge and enhance “Decisions made today will decide allocations and higher water prices. the reputation of the Australian if the industry over the next rice industry on a world stage? decade is surviving from one year “It’s about gaining a greater return to the next or is an example and for the water used, whether that’s The report found in the Mississippi inspiration of what Australian in terms of yield, quality, consumer Delta, the majority of water is producers and an Australian demand, or company reputation,” pumped from the Mississippi commodity industry, can achieve.” said Mr Groat. River Valley alluvial aquifer with no regulation on extraction, and no charge for water. Section 2 88 Annual Report 2019-20 89
Chicken Meat
Highlights and achievements Summary of program Deliverables for 2019-20 These reviews covered:
1. The Chicken Meat RD&E Program has invested The Australian chicken meat industry GVP for 2019- To achieve significant benefits to the Australian • Litter, aerosols and food safety pathogens in a significant project to deliver extension and 20 was $2.78 billion which has increased slightly chicken meat industry within its available resources • Rodent control training for the chicken meat industry. The three- from $2.72 billion in 2018-19. through the implantation of targeted and high-impact year project with Queensland Department of RD&E projects. • Food safety interventions and Agriculture and Fisheries continues to ensure that Our investments seek to drive productivity research outcomes, development of best practice through improvements in production efficiency Additional resourcing was identified as a key priority • The nutrient content of Australian feed management materials and training are delivered and underpin the social license of the industry for the Chicken Meat Program. The Program is now ingredients. in the right format to the right parts of industry. through improved animal welfare, environmental overseen by a 2.6 FTE research management team. Where these projects also delivered benefits to and human health outcomes. The Chicken the wider poultry industry, they were co-funded 2. The Chicken Meat RD&E program has been a Meat research portfolio is supplemented by an • In 2019-20 an operational review was by Australian Eggs. An important new four-year long-time supporter of the Australian Poultry extension and training project that will ensure that commissioned to look at the Chicken Meat investment partnership involving the AgriFutures Science Symposium (APSS). This is the premier research outcomes are delivered to industry. Program to understand the opportunities and Australia Chicken Meat Program and Queensland avian science conference hosted in February constraints Department of Agriculture and Fisheries has been each year in Sydney. This year, marks 30 years of The Chicken Meat Program Advisory Panel established. It will deliver extension and training AgriFutures Australia sponsorship and support. • Program Management resourcing was participated in a Strategic Scenario Planning to enable the sustainable growth of the chicken The conference featured many speakers and identified as a constraint to growth. workshop to identify megatrends that could meat industry. This enabling project has started to students working on nutrition, welfare and Resourcing was increased from 1.2 FTE to 2.6 impact the industry in the short, medium, and develop materials and deliver training to support health and disease projects funded by our FTE looking after the program. long term. This exercise has been pivotal in the adoption of a R&D outcomes in the industry. This Chicken Meat Program. focussing the attention of the Advisory Panel The Chicken Meat Program delivered key reviews project will continue to be an important delivery onto key issues for the industry over the next 15 3. A comprehensive study of current demand to the Australian chicken meat industry that strategy for the AgriFutures Chicken Meat Program. years. This scenario planning was incorporated drivers for chicken meat and future market captured the key research conducted over the past into the 2019-2022 RD&E Strategy. The key focus opportunities in Australia concluded that 10 years, summarised the current body of scientific Advisory Panel Members: of the new Strategy is to increase knowledge and chicken meat remains the most popular type knowledge and identified knowledge gaps of understanding that fosters an innovative adaptive of meat served in Australian households. importance to the industry. • Guy Hebblewhite • Dr Peter Chrystal and valuable chicken meat industry. Consumers are satisfied with the eating quality (Chair) • Jason Fry and safety of chicken meat. The demand for • Dr Greg Underwood • Dr Anthony Keyburn The Chicken Meat Panel visited the Rockhampton chicken meat is not likely to decline in the near (Vice Chair) • Susy Klein Campus of the University of Central Queensland future, rather it will continue to grow provided • Dr Sheridan Alfirevich • Georgina Townsend and the Sandy Bay Campus of the University of chicken meat continues to offer consumers • Katherine Balding Tasmania to further develop existing relationships value for money, versatility and good eating with key researchers in the industry as well as quality in terms of flavour, taste and tenderness. forge new connections.
The Chicken Meat Program is contributing to the “Closing the Loop: Black Soldier Fly technology to convert agricultural waste”. This is a Rural R&D Profit project which will develop safe high quality, low-cost fertiliser and soil improvers and $4,196,902 $4,725,532 $6,147,336 is a major cross industry collaboration with the Australian Pork, Eggs, Dairy, Fisheries and Meat Processing industries.
Total program Total program Total program expenses expenses expenses 2017–18 2018–19 2019-20 Section 2 90 Annual Report 2019-20 91
Chicken Meat
Projects completed Outcomes Strategic objectives Projects completed Outcomes Strategic objectives in 2019-20 in 2019-20 for 2017-22 in 2019-20 in 2019-20 for 2017-22
PRJ-010184 Free range chicken meat production continues to grow Improving Food Safety of PRJ-010552 This project has assisted the poultry industry in having a Improving Food Safety of Resilient plants for in market share (15%, ACMF 2020). To obtain free range Australian Chicken Meat. Litter, Aerosols resource document that will enable them to make better Australian Chicken Meat. free range chicken accreditation in Australia, many programs stipulate that and Food Safety decisions on the management of both Salmonella and meat farms palatable vegetation must be available to poultry on the Pathogens – Campylobacter levels on farm and in the processing plant. range at all times. However, there are difficulties maintaining Summarising a herbage cover on the outdoor range due to bird activity Decade of Research It also demonstrates the quantitative approach (pecking and scratching). The challenge is to provide (enumeration of pathogens) that can be adopted on farm palatable vegetation all year round. which in turn can enable better management of pathogen numbers (on farm) with positive impacts to end products. This project sought to increase meat chicken welfare on free range farms by utilising resilient forage plants on the It also assists industry to be better able to address issues range. There were two outcomes: the first was to identify related to the environmental movement of pathogens those forage plants with increased resilience to chicken in and around farms and it is a resource document for activity resulting in less bare ground exposed on the outdoor decision makers both at an industry level and external range. The second outcome was to demonstrate that more to the industry (or government) as well as a resource for chickens go outdoors and exhibit a wider range of natural training and dissemination at a farmer level. behaviours due to increased usage of the outdoor range area with resilient herbage cover. PRJ-010603 This project provided a range of visual best practice Develop and implement Developing visual litter management how to information tools for meat measures to improve PRJ-010365 The Australian chicken meat industry is extremely interested Improve chicken meat litter management chicken growers through a series of short videos and a industry’s impact on the PhD - To investigate in low protein diets which, axiomatically, contain high production through the extension resources litter shed guide. environment. the effect of inclusions of an increasing range of synthetic amino acids. whole supply chain. for meat chicken The videos demonstrated key concepts that impact on supplemental amino A fundamental issue to the development of low protein diets growers litter through animation. acids of broiler is how efficiently broiler chickens utilise synthetic amino Published: A series performance acids. This project investigated the effect of protein reduction of animations for It also demonstrated strategies other meat chicken in commercial broiler chicken rations with incorporation of industry growers have implemented to maintain dry and friable de-oiled rice bran (DORB) and supplementation of limiting litter in different situations. amino acids (valine, isoleucine, and/or tryptophan) with ration formulation either on total amino acid (TAA) or standardized ileal digestible amino acids (SIDAA). PRJ-010623 The core of this project has been to determine the Improve chicken meat Utilisation of requirements for (synthetic) amino acids, impacts of feed production through the synthetic amino access on their utilisation, their postenteral availability whole supply chain. PRJ-010446 This project produced a series of training DVDs/videos Develop and implement acids by poultry and retention in tissue pools. An essential objective has Coordinating the that present the biosecurity requirements and appropriate measures to improve been the assessment of 12 synthetic amino acids in the development of risk minimisation measures relevant to all sectors of the industry’s impact on the context of low protein diets. Biosecurity DVDs commercial meat chicken industry. The videos produced environment. for the Australian included processing plant induction/training, general Chicken Meat biosecurity, hatchery biosecurity and feedmill biosecurity of food borne pathogens. Although many of the biosecurity Published: Video - practices relevant for each of these objectives are shared, Feed Mill Biosecurity the emphasis and approaches taken may be quite different. guidelines The outcome was the delivery of four biosecurity training DVDs/videos for all sectors of the chicken meat industry. Section 2 92 Annual Report 2019-20 93
Chicken Meat
Projects completed Outcomes Strategic objectives Projects completed Outcomes Strategic objectives in 2019-20 in 2019-20 for 2017-22 in 2019-20 in 2019-20 for 2017-22
PRJ-010721 Eggs laid outside an optimal nesting system pose Improve chicken meat PRJ-011003 This project gathered evidence-based data via a review Improving Food Safety of 2018 Nuffield a major productivity problem, but the issue can be production through the Current and of current food safety interventions in chicken meat Australian chicken meat. Australia Farming mitigated if a holistic approach is taken to managing a whole supply chain. potential food production. The review included: Scholarship - Emma bird’s environment. Ms O’Flaherty, detailed the practical safety interventions O’Flaherty steps involved in this holistic approach, and revealed for meat chicken • Information in interventions currently available opportunities for the industry to increase hatchability and production in Australia decrease chance of contamination in production. • Those not available in Aus-tralia • Potential new interventions under development
PRJ-010761 The role of the Program Development Officer is to improve Develop and implement • Patent information Chicken Meat the quality and efficiency of the proposal development, measures to improve • Government reports Program review and contracting process. The project improved industry’s impact on the • Policy statements Development proposal rejections from 73% rejected proposals down environment. • Conference proceedings etc. Services to 29%. This was through the role providing guidance and advice to research to ensure that project proposals This research identifies existing and emerging research aligned with priorities for the industry. applications that will be of most benefit to the Australian chicken meat industry. This will help inform the future investment decisions of the AgriFutures Chicken Meat PRJ-010762 Developing a novel approach to extension of research Develop and implement Program and will also provide recommendations for the Chicken Meat in the chicken meat industry through a service delivery measures to improve most promising food safety interventions for potential Extension Services model based on an industry stakeholder review, a range of industry’s impact on the adoption by the chicken meat industry in Australia. communications products and interactive workshops. environment.
PRJ-011023 Antimicrobial resistance (AMR) occurs when organisms Improve chicken meat Antimicrobial such as bacteria, fungi, parasites and viruses develop the production through the PRJ-010953 This project was a continuation of a previous project Develop and implement stewardship ability to stop treatments designed to remove them (such whole supply chain. Electrolyte and investigated the affect of electrolytes in the measures to improve verification in the as antibiotics against bacteria) from being effective. The supplementation to drinking water of meat chickens exposed to shed industry’s impact on the Australian Chicken focus of antimicrobial stewardship (AMS) is to safeguard the alleviate the adverse temperatures of 32 degree celsius, which is equivalent environment. Meat Industry effectiveness of antimicrobial agents by ensuring they are effects of severe heat to an outside temperature of 40 degree celsius that used appropriately. stress some of the major chicken growing regions experience. It included controlled studies, as well as application on a commercial farm. PRJ-011301 The disposal of infected material is a core component Develop and implement Mass Disposal of the process of recovery from an Emergency Animal measures to improve Preparedness Project Disease (EAD). Prior planning will make for a much more industry’s impact on the PRJ-010965 The results of this research directly benefit producers, Develop and implement structured and efficient decision-making process in the environment. Review of rodent the Australian chicken meat industry body and the measures to improve event of an EAD. The recommendations of AUSVETPLAN control for the Australian egg industry body by allowing them to industry’s impact on the for preplanning of disposal of animal carcasses, materials, Australian Chicken understand the potential risks associated with current environment. equipment, products and by products in the event of an Meat and Egg rodent control programs and by providing them with key EAD that may occur in the poultry industries has not yet Industries product information that can be used to improve the been actioned. This project has developed the systems management of rodents on farm. and plans that are required to meet AUSVETPLAN recommendations. Section 2 94 Annual Report 2019-20 95
Chicken Meat
Projects completed Outcomes Strategic objectives Projects completed Outcomes Strategic objectives in 2019-20 in 2019-20 for 2017-22 in 2019-20 in 2019-20 for 2017-22
PRJ-011475 This project identified the possible causes of skills Develop and implement PRJ-011564 This project compiled current Australian and global data Improve chicken meat Scholarship – shortages in the poultry sector. It investigated the reasons measures to improve Review of the in a review of the nutrient specifications of commonly production through the Ashlee Morgan behind the lack of youth interest in pursuing a career industry’s impact on the Nutrient Content used feed ingredients within the Australian broiler whole supply chain. in the poultry sector and in agriculture in general. environment. of Australian Feed industry from databases provided by source companies, The project used both a qualitative and quantitative Ingredients including Evonik, Adisseo, FINA, Brazil (Rostag-no), INRA approach to identify student’s attitudes towards and data published in the scientific literature (specifically the poultry industry and potential barriers to entry Published Project Wayne Bryden and Rosalina Angel) to assist Australian into the industry. This project helps the industry to Summary: Review broiler integrator nutritionists with diet formulation. develop strategies to address the skills to ensure the of Nutrient Content sustainability of Australia’s poultry industry. of Australian Feed This project also highlighted areas within the compilation Ingredients of nutrient specifications for commonly used Australian feed ingredients where Australian data was lacking or PRJ-011528 All Energy has built a comprehensive tool for the red Develop and implement inconsistent to identify key areas for development and Reviewing the meat industry covering PV solar as well as thermal energy measures to improve guide future research. Solar Photovoltaic and storage under MLA project P.PSH.0867 (current). industry’s impact on the This review also assessed the range and variation in Assessment Tool for environment. nutrient specifications between databases, determined the Chicken Meat This tool draws on equipment data and costing the extent of variation between Australian and global Industry databases and decades of experience in designing renewable energy plants with cost benefit analysis. specifications, and identified the key sources of variation. Published: Self Through this process, one of the large valueadds was assessment tool - to provide prebuilt scenarios that users could quickly Solar PV assessment use to visualise their energy usage and energy saving PRJ-012046 The project undertook an independent assessment Improve chicken meat tool for chicken options. In 2014, AgriFutures Australia commissioned a Review of Chicken of the overall operation of the AgriFutures Chicken production through the farmers solar PV assessment tool to allow growers a first pass Meat Program Meat Program. whole supply chain. assessment of the financial viability at their farm; this operations The project assisted in defining the structure and project proposes to review this tool to maximise the value resources required to support the operations and to the Australian industry. growth of the AgriFutures Chicken Meat Program. This project updates the industry’s knowledge of solar PV and the feasibility at Australian chicken meat farms, plus expands the tool into thermal energy and energy storage. It also increases the adoption of solar PV and concentrated solar in the industry as well as reduces the operating costs and emissions and improves bird welfare in an economically viable way. It achieves these goals with minimised (targeting zero) capital outlay by the industry. A broader objective is to further disseminate the economic viability of solar PV and other energy options to chicken meat producers, and by addressing the identified objectives, assist in the adoption and uptake by industry.
Photo credit: USQ Photography Annual Report 2019-20 97
In the spotlight Chicken CCTV: Australian first
University of Southern Queensland (USQ) mechatronic engineer Dr Cheryl McCarthy is researching a new way to detect chicken welfare using machine vision, a camera technology with artificial intelligence akin to face recognition.
The research is the first of its kind “This data can be used in the “This data can in Australia, and has been the diagnosis of temperature stress be used in the subject of a two year project funded, or foot conditions like footpad to date, by the AgriFutures Chicken dermatitis.” diagnosis of Meat Program. The software has wide-reaching temperature stress Chicken sheds are typically inspected possibilities, with investigations also three times per day and rely on the underway to apply to chicken weight or foot conditions human eye, whereas Dr McCarthy’s estimation and in a free-range setting like footpad system deploys continual on-board using drone technology. image analysis to provide minute-by- dermatitis.” minute alerts. “There is currently no system evaluated in Australia for chicken “The cameras observe the daily shed monitoring. Practically on farm behavioural patterns of the chickens, this technology will allow growers to picking up changes indicative of monitor flocks around the clock. underlying health issues,” said Dr McCarthy. In addition, welfare parameters, growers will also be able to estimate “The camera technology’s artificial the weight of their chickens intelligence spots subtle patterns in throughout the shed and identify behaviours – are the chickens sitting if they are on target or not. This more often? Grouping together? Not information could then be provided to eating as much? processors to assist in forecasting,” said Mr Hebblewhite. “The benefits include increased productivity via early interventions This research follows Dr McCarthy’s and better animal welfare, and as the previous research in remote cameras are low-cost, the technology monitoring using smart cameras to is well-suited to on-farm use,” said Dr perform tasks like cattle condition McCarthy. scoring, weed spot spraying and crop growth monitoring. AgriFutures Chicken Meat Advisory Panel Chair and grower This article was first published by the Guy Hebblewhite added that the University of Southern Queensland. technology could be a game-changer in improving chicken welfare issues, productivity and forecasting for the supply chain. Section 2 98
In the spotlight Ratite Program researcher Lauren Chartier
University of Adelaide PhD student, Lauren Chartier, is investigating if Emu oil can be used as a therapy for ulcerative colitis and colitis- associated colorectal cancer when taken orally and combined with plant extracts and herbal medicines.
Emu oil has traditionally been used Why did you get involved in the Future investigations may find ways to to ease pain and promote healing project? select and refine active components of wounds, burns, rashes and scars of Emu oil to increase its efficacy when applied directly to the area. This I always knew that I was passionate when ingested. Therefore, this would is the first research to investigate the about traditional and natural require developments from the Ratite anti-inflammatory and anti-cancer therapies for medical conditions. industry to support these advances potential of orally administered Emu When I decided to undertake an and will further increase the demand oil in preclinical colitis-associated Honours project, my supervisors Prof for Emu oil products in Australia and colorectal cancer. Gordon Howarth and Dr Suzanne world-wide. Mashtoub, immediately intrigued me Why is this research project with their Emu oil research group. What’s the best piece of important? Following Honours, it was a natural professional/career advice you’ve progression then to do a PhD in the ever been given? Ulcerative colitis is an incurable same field. I am drawn to this research inflammatory bowel disease that is as it is novel, multi-disciplinary and As an early-career scientist and increasing in prevalence worldwide. has strong connections to Traditional PhD student, it is very common to Australia has one of the highest Australian Medicines and the experience ‘imposter syndrome’ or rates of ulcerative colitis; with more agriculture industry. Additionally, feelings that the research being than 75,000 people living with the as we are the only research group conducted is so small in the scheme condition. Currently, medications are in the world investigating Emu oil of things that it will never make a prescribed to manage symptoms; for gastrointestinal therapies, it is difference. However, I’ve always been however, they are largely ineffective exciting to be a part of research that told to ‘look at the big picture’ and and invasive surgery is often could truly be life changing for future think about the end goal of saving necessary. Surgeries are usually used patients. and improving lives. To be a scientist to remove sections of the bowel and you need confidence, passion, result in a compromised quality of life How will this research benefit the determination and a lot of resilience. for patients. Ulcerative colitis patients Ratite industry? Are there any are often diagnosed early in life (teens learnings beyond this industry? What have you learned about your and early 20’s) and which means they industry from the growers/producers are at a much higher risk of developing This research has the potential to you have been involved with? colorectal cancer during their lifetime. largely benefit the Ratite industry because as research progresses, the The Emu oil I use in my PhD research This research aims to identify demand for high-quality Emu oil will is sourced from Emu Tracks, a local Emu oil alone, and combined with increase, supporting Emu farmers South Australian Emu oil supplier. We naturally-sourced therapies (plant and the Australian economy as a have researched and compared Emu extracts and herbal medicines), whole. Although Emu oil is readily oil from other regions of Australia as an additional treatment to available to purchase, there is no and Emus that have been fed varied conventional colitis and colorectal solid scientific backing for dosage diets. We concluded that there are no cancer therapies. Furthermore, this recommendations or therapeutic major differences when it comes to research is crucial as Emu oil has potential. We are commencing the fatty acid components of the oil the potential to limit side-effects of clinical trials with Emu oil and and its efficacy in preclinical research. pharmaceutical treatments, improve inflammatory bowel disease patients, Therefore, this has taught us that Emu patient quality of life and prevent the and therefore the commercialization farmers throughout the country have development of tumours in colitis- of Emu oil as a medical therapy for the potential to benefit economically associate colorectal cancer. gastrointestinal conditions following and produce therapeutic Emu oil these investigations is expected. products in the future. Section 2 100 Annual Report 2019-20 101
Export Fodder
Highlights and achievements Summary of program Deliverables for 2019-20
1. The National Oat Breeding Program delivered a new The GVP for Export Fodder in 2019-20 was $484.9 million, Implementation of targeted and high impact RD&E hay variety ‘Koorabup’ which was released in spring up from $427.5 million in 2018-19. projects to achieve far-reaching benefits to the export 2019. The new variety has an excellent combination fodder industry. of disease resistance and a superior level of septoria Over the 2019-20 year the Export Fodder Program has resistance. Gaining access to new hay varieties with made significant progress in a number of areas. In Advisory Panel Members: improved disease resistance helps growers increase particular the Program has established an Expression their productivity and profitability. of Interest (EOI) for commercial breeding companies to continue the National Oat Breeding Program. This EOI has • Peter Baker (Chair) • Andrew Hayward 2. The Export Fodder Program has made two important been held in conjunction with GRDC and South Australian • Zane Banson • Munro Patchett new investments to benefit the industry: Research and Development Institute and is due to • Sean Blechynden • Lucinda Staley conclude in September 2020. • Pat Guerin • Steve Woods • Chemical Residue Monitoring for the Fodder Industry. This project will provide advice to The Export Fodder Program also held a very successful the fodder industry on changing market Open Call for projects. Projects that align with the requirements for a range of food safety industry’s five-year Strategic Plan were sought, in parameters and assisting industry to consider particular those that aligned with Objectives 4, 5 and 6. actions to address any market access concerns subsequently arising. The program invested in a number of new projects:
• Yield and quality assessment of dual purpose • PRJ-012613 Improved oat varieties for hay wheat for the export hay industry. This project production 2020 aims to provide growers, processors and • PRJ-012002 Chemical Residue Monitoring for the exporters with hay yield and quality data of new Fodder Industry and potential awnless wheat in order to diversify hay production, increase hay yield, control • PRJ-011968 Fodder Safe problem and contaminant grass weeds, provide a pathway to market and increase exports. • PRJ-011946 Yield and quality assessment of dual purpose wheat for the export hay industry 3. The Export Fodder Advisory Panel appointed a new Panel Member – Zane Banson. Zane is Chief Financial The Advisory Panel has farewelled Sean Blechynden and Officer with Wingara Ag Limited and comes with thanks him for his contribution to the Export Fodder Panel over 10 years’ experience in CFO Advisory, Company over the last three years. After a competitive Open Call Secretarial, and Financial Reporting from KPMG, process, Zane Banson has been appointed to the Panel to Exxon Mobil and boutique advisory firms. He is driven replace Sean. We look forward to Zane’s contribution over by the pursuit of opportunities in exporting quality the coming years of his term. Australian produce in the fodder and meat industry, $791,799 $1,159,468 $1,334,814 with a particular focus on supply chains.
Total program Total program Total program expenses expenses expenses 2017–18 2018–19 2019–20 Section 2 102 Annual Report 2019-20 103
Export Fodder Honey Bee and Pollination
Projects completed Strategic objectives Highlights and achievements Summary of program in 2019-20 Outcomes in 2019-20 for 2017-22 1. Increasing industry leadership opportunities The GVP for Honey was $138.6 million, up from $129.3 through the initiation of the Industry Development million in 2018-19. PRJ-011967 Advanced breeding lines were promoted to yield trials Oaten Hay Breeding grants program covering strategic, succession and Improved oat varieties for based on hay and grain productivity, hay and grain quality, program governance projects. These industry development The Honey Bee and Pollination Program provided support hay production 2018-19, disease resistance, and agronomic traits. The new hay grants will benefit the industry through driving for beekeepers as a result of the bushfires and continued Hay agronomy finishing in 2020 variety, Koorabup, was launched in spring 2019. Commercial honey quality assurance outcomes for beekeepers, drought. This has been achieved with the development of seed was available to growers for the 2020 growing season. a Bushfire Recovery Plan which assists with information Chemical usage integrity developing high level governance capability in This new variety has an excellent combination of disease Australian Honey Bee Industry Council members, and about the management of hives post bushfires and the resistance and a superior level of septoria resistance Fodder analysis additional pollen metabarcoding testing to increase scarcity of floral resources during drought. compared to current hay varieties. identification of pollen. The plan has been developed for use by industry to Three advanced breeding lines were selected for breeder 2. In July 2019, the industry held a workshop to consider prioritise funding for further R&D to aid beekeepers seed development. Lines 07079-9, 07423-18, and 08131-28 ‘Driving production through investigating floral recover from bushfires. The program received additional all have varying combinations of disease resistance, hay resource access across Australia’. The workshop and funding through the Promotion of the Importance of Bees yield potential and hay quality. report provide a comprehensive study into the floral project from the Commonwealth Government, and the access for beekeepers across states and territories to Advisory Panel established priority R&D for this program. Advanced breeding lines selected for variety release will be drive engagement and enable greater access to these protected by PBR and the commercialising partner will have Key areas of research in this project over the next three resources. first option for commercialising the new varieties. years are the development of sensory technology for bee 3. Lifting beekeeper profitability through the hive diseases, promotion of R&D, and the further work into honey bee gut bacteria and the impact on honey PRJ-010828 This project was designed to assess workplace health and Work, health and safety investigation of Leptospermum spp. active honeys. bee disease. A research open call with a focus on further Export fodder workplace safety (WHS) problems and issues within the Australian This research has investigated Leptospermum honey investigation into honey characterisation and building safety standards export fodder processing industry with a focus on identifying known for its potential as an antibacterial – with a an industry-valued database of honey characteristics key areas of Workplace Health and Safety (WHS) risk and the view to determine the impact of plant variety and was conducted with the Composition of Australian Published: Final Report development of strategies to alleviate/mitigate these risks. location source on the bioactivity of the honey. Summary honey project funded through NSW Department of Primary Industries. PRJ-012002 This project provided advice to the fodder industry on Chemical usage integrity Chemical residue monitoring changing market requirements for a range of food safety for the fodder industry parameters.
Published: New Investment Project Summary
PRJ-011946 This project aimed to provide advice to growers, Hay agronomy $620,595 $932,056 $604,656 Yield and quality assessment processors and exporters with hay yield and quality data of dual purpose wheat for the of new and potential wheat varieties. Fodder analysis export hay industry
Published: New Investment Project Summary Total program Total program Total program expenses expenses expenses 2017–18 2018–19 2019–20 Section 2 104 Annual Report 2019-20 105
Honey Bee and Pollination
Deliverables for 2019-20 Advisory Panel Members: Projects completed Strategic objectives in 2019-20 Outcomes in 2019-20 for 2017-22 To support RD&E that will secure a productive, • Dr Doug Somerville • Prof Saul Cunningham sustainable and more profitable Australian (Chair) • James Kershaw beekeeping industry and secure the pollination of • Danny Le Fervue • Dr Diana Leemon PRJ-011925 Floral resource access has been identified Increase understanding of Australia’s horticultural and agricultural crops. (Vice Chair) • Samuel Malfroy Strategic Industry Workshop as the industry’s number one priority by the the role of flora in honey bee • Tiffane Bates • Annelies McGaw peak industry body, the Australian Honey management. Published: Strategic • Ashley Zamek Bee Industry Council (AHBIC). In response to Industry Workshop: this priority, the AgriFutures Honey Bee and Improving floral resource Pollination Program worked with AHBIC to access for beekeepers design a solutions-focussed workshop with Projects completed Strategic objectives clear deliverables that were to be of equal value Published Fact Sheet: to commercial beekeepers and policy makers. in 2019-20 Outcomes in 2019-20 for 2017-22 Management of bee This workshop report outlines strategic actions, nutrition in drought and fire opportunities and potential policy changes PRJ-011631 This project assessed the benefit-cost ratio of 17 Promote extension, affected areas required for improving floral resource access. Review of investment in RD&E projects across the AgriFutures Honey Bee communication and capacity Honey Bee Program & Pollination Program. This gave an estimated net building. The final report for this project has delivered present value of $8.85 million, and a benefit-cost an outcome that has seen industry and Published: An Economic ratio of approximately 4.1 to 1. government refer to the document for Evaluation of AgriFutures’ consideration. Investment in the AgriFutures Honey Bee & Pollination Program PRJ-012495 This project has delivered a report and Increase the productivity and (2015-2019) Bushfire Recovery Workshop summary for industry to utilise and promote profitability of beekeepers. recovery from the 2019-2020 bushfires. Published: AgriFutures PRJ-009186 This large, systematic analysis of Australian Increase the productivity and Honey Bee and Pollination Active Australia Leptospermum honey provides a rigorous profitability of beekeepers. Program R&D Annual Report Leptospermum honey: evidence base for the value of Australian New sources and their Leptospermum honey as a therapeutic agent Published Plan: Bushfire bioactivity that is as effective as manuka honey against Recovery Action Plan bacteria. The outcomes of this research are the Published: Active Australian location on Leptospermum spp. and differences Published Summary Leptospermum Honey: New in activity between varieties. sources and their bioactivity
PRJ-011385 This project delivered over ten media outputs Promote extension, Honey Bee and Pollination and drove media opportunities for the program. communication and capacity Program Communications building. 2018-2020 Section 2 106 Annual Report 2019-20 107
In the spotlight Five from the hive: Highlights from the honey bee industry
As the 2014-19 Five Year Research, Development & Extension Plan comes to an end, Dr Doug Somerville, Chair of the AgriFutures Australia Honey Bee & Pollination Advisory Panel reflects on what has been achieved.
“We have achieved some tremendous “If we can successfully elevate standard and database of Australian things over the past five years. Australian honey into the superfood honeys that reflects the true variability Our role is to secure a productive, category it will be a major boon for the in the chemical composition and sustainable and more profitable profitability of our industry. With no variability of Australian honeys.” Australian beekeeping industry and trade barriers for foreign honey, the by strategically investing in research health benefits of our honey ensures “Australian beekeepers are proud that focuses on all three of these core we have a level of differentiation for of their honey, it’s some of the most elements we have positioned our the 70% of Australian consumers pure in the world. With this work industry well as we head into a new who do not consider Australian-made underway we will be providing them Strategic Plan,” said Dr Somerville. as a key purchase consideration. It with the support they need to stand up will enable us to charge a premium, against future misinformation,” said Dr Reflecting on the last five years, leading to a more profitable industry.” Somerville. Combating chalkbrood Diversification Looking ahead: A new strategic plan Dr Somerville has identified five Preventing pest incursions highlights; each having laid the Moving towards a database Over the past five years, the industry Another highlight from the previous “We are currently finalising our next foundations for a prosperous future of Australian honeys While the lack of pests in Australia has taken steps to combat chalkbrood five years has been uncovering the Strategic Plan. There will be no radical for the industry. through the analysis of gut bacteria in potential economic benefits the shifts in strategy, and we see this plan In 2018, the industry was challenged such as the varroa mite has led to a healthy bees. Australian beekeeping industry could as an extension of the previous five Elevation of Australian honey by inaccurate media reports claiming prosperous and clean industry, this receive through diversification into the year plan. We have made giant strides as a superfood that one in five Australian honey could change at any moment. A series of projects have uncovered harvest and selling of propolis. towards improving bee productivity, we samples was adulterated. The a rich diversity of bacterial species continue to explore new diversification Honey has been a staple of breakfast misinformation was driven mostly by So how do we ensure we are inhabiting the gut of healthy bees, According to research undertaken by opportunities and we double down on tables and kitchens for decades. the fact the databases of honey used dedicating enough resources to with a proportion of bacteria showing AgEconPlus, beekeepers could expect the prevention of pest incursions,” said For years it played an unsung, for comparison contained very few defending against pests which we strong antifungal activity against the to earn an extra $1,400 a year through Dr Somerville. unglamorous role as a natural and samples of Australian honey. Around know would be destructive, such as chalkbrood pathogen. propolis production. delicious sweetener for everything 70% of Australian honey is produced the varroa mite, and finding out more If there is one thing the past five years from porridge, to tea and stir-fry’s. from native plants and our unique flora about pests, where the impact may be Dr Somerville believes that this “There’s still a way to go before we can has shown, it’s that the Australian means that our honey is just as unique. less clear? research has the power to position turn propolis into a viable market here honey bee and pollination industry is But everything changed when the the Australian Honey Bee industry The answer is in research and a clear in Australia, but what is most exciting one of the most adaptive and resilient medicinal properties of honey began Since those inaccurate reports, the as a leader in combating chalkbrood example of this is when Dr Ben Oldroyd is the new areas of diversification that industries in Australia. All 25,093 to elevate the product into a new industry has moved forward with plans in bees. sphere of health food category. to establish a database of Australian from the University of Sydney travelled are opening up around our industry, registered beekeepers in Australia honeys based on a project undertaken to Africa to conduct a risk assessment “As with all science, this research which helps us ensure the future have contributed to the growth and Initially, this evolution was led by by Jamie Ayton from the NSW for the large African hive (LAHB) beetle. is ongoing and the next phase will strength and viability of the industry. success of the industry. By diverting research showing that New Zealand Department of Primary Industries determine the feasibility of the research resources to address manuka honey is a potent killer of Throughout the fieldwork in South “Diversification is one of the inherent external issues like pest incursions, (DPI). Africa, it was deduced that although commercialisation of Australian native many bacterial pathogens. But in 2019 bee gut bacteria as a probiotic. strengths of our industry. Our misinformation and food trends, the AgriFutures Australia funded-research According to Dr Somerville, the LAHB could cause significant damage beekeepers can seamlessly move from industry has positioned itself strongly led by the University of Technology, findings from the NSW DPI project are in Australia, it was unlikely to be as “We’re very excited to see where that honey products to pollination and now for growth and prosperity in 2020 and Sydney’s Professor Liz Harry and a guiding light for the industry. big a threat as small hive beetle. research leads us.” even to propolis production. Building beyond. Dr Nural Cokcetin, discovered that This research continues to help the on this, we can even start using the specific chemical components relating “The findings from the NSW DPI industry manage limited resources unique flora we use to our advantage, to antibacterial activity of several report are clear and set us on the right appropriately. including the way we differentiate and Australian Leptospermum honeys trajectory to ensure that our honey is market our products. While the market was similar to that of its Manuka accurately tested. As recommended is only becoming more fragmented, we counterpart in New Zealand. by the report, we will progress with the are the best placed industry to turn establishment of an Australian honey fragmentation into an opportunity. Section 2 108 Annual Report 2019-20 109
Thoroughbred Horses
Highlights and achievements Summary of program Deliverables for 2019-20 Advisory Panel Members:
1. The thoroughbred breeding industry contributes The GVP for Thoroughbred breeding in 2019-20 was • Advancements in detection and treatment of • Prof Nigel Perkins • Annelies McGaw $1.16 billion to the Australian economy. A landmark $451.5 million, up from $428.3 million in 2018-19. diseases and parasites in breeding horses (Chair) • Thomas Rielley report: The Measurement of the economic impact • Improve jockey safety through developing • Dr Catherine Chicken • Jacqueline Stewart of the Australian thoroughbred breeding industry, 2019-20 has been a year of consolidation for the concussion recovery (Vice Chair) • Dr Craig Suann highlighted the value of the industry to the Australian Thoroughbred Horses Program with two final reports • Derek Field economy and will become the basis for future published: Measurement of economic impact of the • Understand the breeding and racing industry horse investment. It is the first report published from the Australian thoroughbred breeding industry and Australian movements through the development of surveys thoroughbreds from birth to racing. These were both thoroughbred horses levy. • Initiate development of early pregnancy detection commissioned specifically to meet priority industry needs. and stallion fertility tools 2. Increased breeding outcomes for the thoroughbred breeding industry through development of quick tests The Thoroughbred Horses Program has continued to • Consider environmental effects on breeding horses. that will help breeders make informed decisions prior invest funds in projects which align with the Interim to breeding and will reduce the spread and impact Thoroughbred Horses RD&E Five Year Plan (2017- 2022). This includes contributing to the Thoroughbred of disease. This continued investment in research Projects completed Strategic objectives addresses issues from reproductive diseases through Welfare Initiative being coordinated by Thoroughbred to the development of rapid tests, to improve stall Breeders Australia. in 2019-20 Outcomes in 2019-20 for 2017-22 side and farm management. Both AgriFutures Australia and The Thoroughbred Horses PRJ-011162 This project identified the value of the industry to the Industry planning, 3. Delivery of welfare knowledge and research Program Advisory Panel have taken the opportunity Measurement of economic Australian economy. economic benefit studies outcomes around the welfare of thoroughbred in 2019-20 to meet with industry stakeholders in the impact of the Australian and market research horses from birth to racing. This ground-breaking Hunter Valley, NSW, and Nagambie, VIC in October 2019 thoroughbred breeding industry research, based on survey and industry data, to gain a clearer understanding of the issues facing the outlines five recommendations for future RD&E to thoroughbred breeding industry. The Advisory Panel Published: Measurement of improve the wellbeing of young horses before they utilises these occasions to ensure that the program and economic impact of the Australian commence racing. the Interim Thoroughbred Horses RD&E Five Year Plan thoroughbred breeding industry (2017-2022) remain relevant to the industry.
PRJ-011251 The outcome of this project identified key research Continue to improve Wellbeing from Pregnancy to activities for future investment. breeding outcomes Racing-Horse Demographics and foal health and development Published: Australian racing from birth to racing
$ $ $ PRJ-011357 This project identified structural changes to the Reduce the incidence and 342,189 904,931 981,825 Post graduate Scholarship – heart muscle that could increase the likelihood of impact of diseases and University of Adelaide – cardiac arrhythmia in horses. parasites in horses Laura Nath
To be published
Total program Total program Total program PRJ-011745 The peer review gave strength to the measurement Industry planning, expenses expenses expenses Peer review of Measurement of economic impact of the Australian thoroughbred economic benefit studies 2017–18 2018–19 2019–20 of economic impact of the breeding industry report and enabled the use of the and market research Australian thoroughbred report by the industry. breeding industry Section 2 110
In the spotlight No horsing around when it comes to equine fertility
Groundbreaking work by the University of Newcastle postdoctoral researcher Dr Zamira Gibb, and her team of researchers is predicting stallion sperm quality at the time of breeding.
Dr Gibb works with the thoroughbred factor is sperm metabolic activity in a Research shows external factors horse industry including the Hunter dismount semen sample which helps such as environmental fluctuations Valley Equine Research Centre and identify breedings, or covers, which and changes to management equine reproductive specialists, using are unlikely to produce a pregnancy,” practices also play a part in falling natural methods to improve fertility said Dr Gibb fertility rates. and improve reproductive outcomes, with a focus on stallions. “This is really important because Dr Gibb said the research team has it allows managers to schedule also looked holistically at improving “Thoroughbred horses are selected the mare to be rebred on the same horse health by considering for breeding on the basis of pedigree cycle to increase the chance of a external changes such as reducing and athletic performance as opposed positive pregnancy outcome. By temperature levels for both stallions to reproductive traits and therefore, increasing per cycle conception and mares. like humans, are not subjected to rates, mares will conceive earlier selection pressure for fertility,” said in the breeding season, resulting in “Like us, horses get stressed with Dr Gibb. earlier foals which will attract higher extended periods of intense heat so prices at yearling sales and be more something as simple as installing “This has resulted in equine and competitive in age-related races.” misters at the hottest part of the day, human populations with significantly can improve fertility,” said Dr Gibb. lower per cycle conception rates than Dr Gibb’s work has also been other species.” influenced by Laureate Professor One of the aims of the Thoroughbred John Aitken, the Director of the Horses Program is to assist the Thanks to funding from AgriFutures University of Newcastle’s Priority thoroughbred horse industry by Australia, Dr Gibb and her team at the Research Centre for Reproductive developing collaborative strategies to University of Newcastle have been Science, who asked her to head up a improve breeding outcomes in a safe trialling a device which allows a test new team in horse fertility while she and sustainable way. to be performed on-farm which is a was in her last year of her PhD. greater predictor of the success of a It is hoped the device will become an cover than conventional methods. “Professor Aitken is one of the world’s invaluable tool for use in research and leaders in human sperm research will be as well used as a microscope This is how it works. At the time of and although not translating directly or flow cytometer, a device which cover, the stallion handler captures due to differences in metabolic measures the characteristics of cells. a drop of semen which is known in processes between horse and human scientific terms as the “post coital sperm, working alongside a world The next step is the development of a urethral sample”, or on-farm as a leader in human fertility has been a device which can be used by general ‘dismount sample’, in a warm cup. Dr great advantage for the horse fertility farm staff. Gibb and her team have developed team,” said Dr Gibb. a device into which this droplet “We are now ready to construct is placed to assess the sperm’s “We are gaining invaluable insights prototype devices and disseminate characteristics to show the likelihood into the basic biology of stallion them to partner farms for testing,” of pregnancy. sperm metabolism and this said Dr Gibb. information is key in guiding our “Previously, the shape or motility research and delivering key findings of the sperm cells were used as a for the industry both here and predictor of fertility, but we have internationally.” shown that the defining important
Zamira and Paxi Section 2 112 Annual Report 2019-20 113
Ginger
Highlights and achievements Summary of program Advisory Panel Members:
1. Options to increase the genetic diversity of ginger and The GVP for Ginger in 2019-20 was $51.1 million, The Ginger Advisory Panel is also working on further • Nicole Christodoulou • Dr Mike Smith future proof the Australian ginger industry against up from $50.8 million in 2018-19. options to increase genetic diversity in the ginger industry. (Chair) • Lucinda Staley pests and diseases were identified. The range of novel findings that include a range of options for ginger • Ethan Graham • Ric Stevens options includes traditional breeding to develop new The Ginger Program has invested in a number of projects such as: traditional breeding to develop new varieties, • Jason Keating • Kylie Templeton varieties, importation of potentially resistant varieties to deliver against the objectives outlined in the industry importation of potentially resistant varieties from • Scott Kirkwood • Dr Jo White from overseas, biocontrols, mutation breeding and RD&E plan. New projects include: overseas, biocontrols, mutation breeding and polyploids polyploids. The Ginger Advisory Panel is now exploring were identified in a recently completed project. • PRJ-011740 Ginger Extension Coordination Project how these options can be further investigated and This project, which is now being delivered by the implemented. The Ginger Advisory Panel also farewelled Ric Stevens and Australian Ginger Industry Association, aligns thanked him for his contribution during his term on the 2. The Ginger Advisory Panel welcomed two new Panel with the industry objective: “Encourage industry Advisory Panel. In his place the Panel welcomed two new Members. Kylie Templeton is Commercial Director engagement – communicate research outputs, Members – Kylie Templeton and Dr Jo White. and third generation farmer at Templeton Ginger assist industry with research adoption, build industry Pty Ltd. Kylie is responsible for the logistics of the capacity and develop investment and implementation partnerships”. business, liaising with wholesale agents, managing Deliverables for 2019-20 sales as well as marketing for the Templeton Ginger • PRJ-011849 Chemical Minor Use Permit Research brand. Kylie brings extensive knowledge of the ginger This project, which focuses on key chemical To provide RD&E support to a sustainable, growing and industry to the Advisory Panel. Dr Jo White is a ginger control needs of the ginger industry aligns with the prosperous ginger industry supplying product of the grower with a background in research. Jo has over 15 objective: “Drive on-farm productivity – improve highest quality that is strongly sought-after by discerning years’ experience in agricultural research programs, industry pest and disease management, harness consumers in Australia and around the world. including 10 years’ experience in the field of plant innovative technology and facilitate adoption of pathology of broad acre summer crops. Jo has a keen clean certified seed”. interest in aiding the ginger industry to develop and deliver on-ground practical research solutions which • PRJ-011522 Ginger Ninja: Automating disease improve productivity and profitability for growers. detection in seed ginger stock Aiming to automate disease detection in ginger 3. Templeton Ginger has been recognised for its rhizomes, this project also aligns with the biosecurity efforts by winning the 2020 Farm objective: “Drive on-farm productivity – improve Biosecurity Producer of the Year Award, presented industry pest and disease management, harness at the ABARES Outlook Conference in Canberra. innovative technology and facilitate adoption of Templeton Ginger implemented strict biosecurity clean certified seed”. protocols with the adoption of AgriFutures funded research to help combat Pythium, a disease threat with potential to decimate the ginger industry. $328,872 $288,426 $320,165
Total program Total program Total program expenses expenses expenses 2017–18 2018–19 2019–20 Section 2 114
Ginger
Projects completed Strategic objectives in 2019-20 Outcomes in 2019-20 for 2017-22
PRJ-011612 This project indicated that there were options to increase Drive on-farm Improving ginger to future the genetic diversity and future proof the Australian productivity proof the industry against ginger industry against pests and diseases. The range pests and diseases of options includes traditional breeding to develop new Lift the demand for varieties, importation of potentially resistant varieties from Australian ginger Published Final Report overseas, biocontrols, mutation breeding and polyploids. Summary: Improving ginger These options need to be further explored. to futureproof the industry against pests and diseases
PRJ-010755 The communications and extension program Encourage industry Ginger Development and disseminates information on industry research to ginger engagement Extension levy payers and stakeholders. The program delivered 10 communication and engagement events attended Lift the demand for by 302 people, including five R&D technical meetings Australian ginger (a forum for growers and researchers), two Australian Drive on-farm Ginger Industry Field Days with more than 90% of productivity Australian producers in attendance.
The clean seed program delivered a source of planting material for growers to individually propagate and multiply with 10,000 plantlets supplied to industry.
PRJ-011740 This project aimed to improve the adoption of improved Drive on-farm Ginger extension planting material and enhanced pre and post-harvest productivity coordination project management practices.
PRJ-011627 This project aimed to improve weed control for ginger Drive on-farm Site-specific weed growers, using artificial intelligence for weed detection, productivity control for ginger precision herbicide delivery and an evaluation of cropping systems alternative weed control opportunities.
PRJ-011522 This project aimed to develop and demonstrate an Drive on-farm Ginger Ninja: Automated automated vision system that is capable of robustly productivity disease detection in identifying signs of Fusarium in seed ginger stock. seed ginger stock Annual Report 2019-20 117
In the spotlight Ginger Enterprise wins Biosecurity Award
The implementation of strict biosecurity protocols to combat a disease threat with potential to decimate the ginger industry has earned Templeton Farming Enterprises the 2020 Farm Biosecurity Producer of the Year Award.
Eumundi, Queensland ginger grower “One of the valuable things the and manage the outbreak. This and Australian Ginger Industry Japanese growers said is ‘you will project has been a great example Association (AGIA) president, Shane never eradicate it, you will have of AgriFutures Australia working Templeton, Templeton Farming to learn to manage it’,” said Mr with researchers and industry for Enterprises was acknowledged at Templeton. an effective outcome for our rural the ABARES Outlook Conference industries. Dinner in March 2020. Mr Templeton “Japanese growers went through a was honoured to receive the Pythium outbreak in the 1950s, so Mr Templeton agrees: “Every year award and to raise awareness of they look for it on a daily basis. was another bit of learning and one a challenging disease. According of the first things we found was that “Their paddocks aren’t as big as ours it moves with water if you received to Mr Templeton some growers but if they see it, they remove it and reported losses of one-third of yearly a big rainfall event, so drainage was cover it with plastic, isolating it so it very important. production in the early 2010s with doesn’t spread.” Pythium myriotylum spreading at “Then we found it wasn’t just water a rate of 10 square metres a day. This strategy formed the frontline but soil movement, so if you walked Mr Templeton said the industry’s of the battle to stop the disease’s or took a tractor and plough through biosecurity efforts – based on non- spread and on the Templeton farms a patch of Pythium you would pass chemical voluntary quarantine of staff swung into action to spot any on more spores.” infected fields and farms – needed a outbreaks. Funded by AgriFutures ‘one-in-all-in’ industry approach. Australia, DAF scientists were able Being water-borne the disease also to identify the strain and advise spread via seed treatment, further “It took seven years to gain the the industry that it was spread foiling efforts to contain it. Rotation knowledge and information we through water and soil movement. with non-root crops has proved needed to tackle the issue and Now retired DAF researcher Dr Mike valuable, giving growers another anyone who didn’t adopt the Smith studied Pythium Soft Rot in non-chemical tool for control. The biosecurity measures is not in the ginger. Pythium Soft Rot is regarded Templetons now grow ginger every ginger business anymore,” he said. as one of the most destructive five years in rotation with pasture – “We grabbed any information diseases of ginger worldwide taking a big hit in production terms. and disease epidemics caused we could from Department “At one stage it looked like we of Agriculture and Fisheries by Pythium myriotylum were first recorded in Australia during the wet couldn’t grow in old ginger ground Queensland (DAF) and research at all and we purchased new ground funded by AgriFutures Australia. summer of 2007/08, which had more rain days than any other summer on for clean seed production via tissue “Spore counts seemed to keep record. During the 2011/12 season culture,” Mr Templeton said. increasing and the industry couldn’t it was estimated 1500 tonnes were The industry’s biosecurity now survive by adopting biosecurity to lost due to Pythium Soft Rot. includes cleaning boots and vehicles a small degree, we had to go to the and ensuring contractor’s machinery tenth degree to head this thing off.” Early AgriFutures Australia-funded research examined containment and isn’t spreading spores. For the ginger Shane’s sister Kylie Templeton, also control solutions, while research in supply chain and customers, the a third-generation ginger grower 2012-13 further investigated factors growers’ dedication to biosecurity and part of Australia’s largest ginger contributing to persistence and is protecting the industry not only operation, Templeton Ginger, reached spread. from destructive Pythium but other out to growers in Japan where disease threats. Pythium had been a problem and the The DAF research was instrumental Photo credit: Sharon Abrahams, in helping the ginger industry identify Plant Health Australia). research yielded good advice. Section 2 118 Annual Report 2019-20 119
Tea Tree Oil
Highlights and achievements Summary of program Deliverables for 2019-20
1. After being introduced to blockchain technology at The GVP for Tea Tree Oil in 2019-20 was $40.8 million, To improve the productivity and sustainability of the evokeAG. 2019, the AgriFutures Tea Tree Oil Program which is up from $40.6 million in 2018-19. Australian tea tree oil industry through reducing barriers Advisory Panel funded a project to develop a in the market and improved production system with the blockchain solution for the tea tree oil industry. The AgriFutures Tea Tree Oil Program objectives are to development of new varieties. The successful development involved the input from improve the supply, increase the demand and to provide a number of tea tree oil producers, manufacturers effective extension of R&D outputs. Advisory Panel Members: and resellers to ensure a workable system. Three new scoping studies will assess the most Establishing an unbreakable traceability of pure tea sustainable options for weed, nutrition and pest and • Michael Flanagan (Chair) tree oil from farm to the consumer is vital for quality disease management in tea tree plantations. • Dr Gavin Ash assurance in the market. • Phillip Butlin New clonal propagation techniques will allow quicker • Digby Growns 2. AgriFutures Australia has begun three new projects uptake of new higher yielding cultivars with better oil • Gae Plunkett following requests from tea tree growers for more quality from the reinvigorated breeding program. • Dee-Ann Prather R&D into weeds, nutrition, pests and disease • Prof Jeromy Vanclay management. These new projects will scope Engagement with regulatory bodies globally will increase solutions to improved sustainable plantation demand with the opening of export market opportunities. management practices. The safety and efficacy of tea tree oil is being promoted with the introduction of traceability, analysis of samples, 3. Cloning new tea tree cultivars has halved the time to and a widespread survey of users. match the market demand for high quality tea tree oil. The Tea Tree Oil Breeding Program is delivering A new project will collate the safety and efficacy of tea tree new cultivars with higher yield, disease resistance oil R&D results in an easy to read format for consumers and quality oil. The development of a system of clonal and present formulation options for new manufacturers. production allows growers to plant the new varieties sooner than the current seedling production system.
$443,814 $425,808 $543,081
Total program Total program Total program expenses expenses expenses 2017–18 2018–19 2019–20 Section 2 120 Annual Report 2019-20 121
Tea Tree Oil
Projects completed Strategic objectives Projects completed Strategic objectives in 2019-20 Outcomes in 2019-20 for 2017-22 in 2019-20 Outcomes in 2019-20 for 2017-22
PRJ-011621 Developed a clonal production system for tea Improving supply PRJ-011952 Industry representatives attended a workshop Increasing demand Contribution to the CRC-P tree to halve the time for new high yielding Block Chain Traceability for to improve their understanding of blockchain for cloning tea tree to cultivars with low methyl eugenol to be Tea Tree Oil and assessed blockchain to be the unbreakable produce low methyl eugenol available to supply the demand for high quality solution to traceability of the pure tea tree tea tree oil. Published Final Report: oil supply chain. Further development of the Published Final Report: Blockchain Traceability for blockchain system is recommended. Contribution to the CRC-P The development of these clonal techniques tea Tree Oil - Part 1 for Cloning tea tree to will reduce the time to market for new, higher The final report is being used to encourage produce low methyl eugenol value cultivars. uptake from producers, manufacturers and marketers.
PRJ-011626 Effective communication and extension have Extension, sustainability and Communication of research been conducted throughout the industry from human capital PRJ-012315 Industry representatives helped build a Increasing demand findings to tea tree oil producers to end users around the world. Block Chain Traceability for minimal blockchain system to demonstrate, industry levy payers Developments in market supply and demand Tea Tree Oil Part 2 educate and encourage adoption and further and regulatory changes have also been development in the tea tree oil industry. The Published Final Report: monitored. Published Final Report: system provides complete traceability of pure Communication of research Traceability for Tea Tree Oil tea tree oil from the farm, assuring high quality findings to tea tree oil The tea tree pesticide guide has been updated, Part 2 and safety to the end user. industry levy payers monthly newsletters published and the annual field day, held at Casino, NSW in October 2019. The final report is being used to encourage There has been regular contact with industry uptake from producers, manufacturers and and feedback to the Program Advisory Panel. marketers.
The final report describes the delivery of one on one interaction, field days, newsletters, website PRJ-011624 The health and safety of tea tree oil forms Increasing demand content, a literature database and social media the basis of this project. The latest annual posts. This enables communication to a broad Published: Chiral testing report describes how manufacturers are being range of stakeholders from tea tree oil growers, of commercial Tea tree oil educated on the correct chemical analysis of manufacturers and consumers. samples for adulteration tea tree oil and the reduced efficacy and safety of using adulterated product.
PRJ-012032 The new breeding management system Improving supply Operationalising a adopted by the Tea Tree Breeding Program breeding management allows for the assessment of large historical system for tea tree datasets for the selection of parents with higher yields, oil content and oil quality. This will Published Final Report: lead to higher genetic gains. Operationalising a breeding management Better parents are now being selected for system for Tea Tree crossing and so new cultivars with higher yields, higher quality and disease resistance will become available. Annual Report 2019-20 123
In the spotlight Unlocking tea tree oil’s potential
The Australian tea tree oil* industry’s biggest challenge – adulteration – is set to be tackled by new blockchain supply chain traceability.
Adulteration, the fraudulent dilution For ATTIA’s CEO Tony Larkman For Bridie Ohlsson, Co-founder of 100% pure tea tree oil with other blockchain is a potential game and CEO of Geora, the mission is products, often industrial waste, or changer for the industry. “Between to build agricultural asset registry other material masquerading as tea 40 and 50 per cent of our tea tree systems that are a foundation tree oil, has been a major threat to oil is destined for use in cosmetics traceability technology that can be the Australian industry for several so it’s critical that we’re able to added to over time to deliver new decades. A new project, funded by provide certainty to manufacturers value for industries, producers and AgriFutures Tea Tree Oil Program and and consumers that what’s being consumers alike. developed by Geora who are working used in these products is in fact closely with the Australian Tea Tree 100% pure Australian tea tree oil. “We’ve built a system that protects Industry Association (ATTIA), aims the Australian tea tree oil industry to solve this challenge by providing “This blockchain project will make and the ATTIA certification mark traceability along the full length traceability from farm gate to end using blockchain. It’s an application of the supply chain – from farm to product a reality for our industry that will let a producer create an consumer product. and that’s nothing but good news. It asset in the system, send it to ATTIA means we can protect our reputation for checking against the certification The technology behind this and grow the brand through registry, then the certificate is project is blockchain, a record of consumer confidence and expand the attached to the asset on the chain transactions and tracking assets market for 100% pure tea tree oil.” and anyone further down the supply that is stored across computers to chain can confirm and check that secure information and build trust. In Tony said, “I’ll admit I was sceptical the certificate is in place.” agriculture one of its most valuable at first about this emerging applications is the management technology and how we could make Bridie added, “Blockchain of global supply chains, enhancing it work for us but working closely technology and the solution that traceability and providing accurate with Geora and AgriFutures Australia we’ve built for the tea tree industry provenance information. The industry my fears have been allayed.” has the potential to be utilised by learnt more about blockchain at other industries that are likewise evokeAG. and with Geora explored Providing customer certainty is concerned with provenance and how a custom application could be a valuable part of the TTO R&D traceability. It has immediate built for the Australian tea tree oil Program for AgriFutures Australia. applications for other Australian industry that would protect its brand essential oil industries and could The key objective of the Tea Tree expand to Australian Certified and certified product all along the Oil Program is to fund research supply chain John Harvey, Managing Organic products and even and development that will Australian beef.” Director AgriFutures Australia said improve supply of and increase that the project is exactly the type of demand for tea tree oil. More and Testing of the application by selected innovation he envisaged would come more consumers are wanting to out of evokeAG. Australian tea tree producers, understand the products they manufacturers and resellers started “We wanted to bring together cutting- use and how they are produced. at the end of February 2020 with edge technology and the producers Blockchain is the next step in helping large scale testing expected from and industries who can use it. producers tell their provenance May 2020 on. evokeAG. is where people connect and story and for the overall industry to collaborate on all things agriculture demonstrate the safety and efficacy and the tea tree oil industry’s new of Australian tea tree oil in order to blockchain application is such a great increase demand. example of the impact starting these *100% pure Australian tea tree oil is an conversations can have.” essential oil distilled from plantations of Melaleuca alternifolia. Section 2 124 Annual Report 2019-20 125
Pasture Seeds Pasture Seeds
Highlights and achievements Summary of program Projects completed Strategic objectives 1. AgriFutures Australia has been working hard to The GVP for Pasture Seeds in 2019-20 was $44.6 million, in 2019-20 Outcomes in 2019-20 for 2017-22 provide producers with the knowledge to identify and up from $42.7 million in 2018-19. escalate potential exotic lucerne viruses. The research PRJ- 009839 One approach to combating diseases is to breed resistant Sustainable certified has investigated threat risk analysis and produced The Pasture Seed Program has continued to engage with Improved subterranean cultivars. However, prior to this project, little was known temperate pasture seed identification documents along with a contingency the pasture seed industry. The Advisory Panel travelled clover seed production about the genetics and diversity for resistance to the four production. plan to be adopted by the Commonwealth Government to Keith, SA to participate in the Lucerne Australia field from multiple disease most important diseases of subterranean clover; viz. the Building industry agency responsible for plant biosecurity. day. The field day included a visit to AgriFutures Australia- resistance soil-borne root rot diseases caused by Pythium and Phy- funded irrigation and lucerne seed production trials in the tophthora and the foliage diseases rust (Uromyces) and capability and capacity. 2. A key focus for the program has been solving the region. This visit provided an opportunity to meet with the Published: Improved clover scorch (Kabatiella). problems of harvesting subterranean clover and medic executive of Lucerne Australia. subterranean clover seed crops through the development of a subterranean production from multiple This project has identified many new host resistances as clover and medic harvester. The research team The Program has continued to focus on LSW - a major disease resistance well as molecular markers closely linked to genes and QTLs will continue to investigate synergies between pest to lucerne seed production. The Program will see controlling resistance. Published: Project subterranean clover and other crops and trial further investment in the research of this issue through summary engineering modifications to enhance subterranean commissioning the development of a LSW and parisitoid clover and medic harvesting. DNA identification test.
3. Innovative research on developing a DNA identification Understanding the size and significance of the pasture PRJ-009751 Alfalfa dwarf disease (ADD) is causing major economic Connectivity and tool to identify and quantify Lucerne Seed Wasp (LSW), seed industry has been a priority in 2019-20. The Program Potential exotic virus loss in lucerne (Medicago sativa) production in Argentina. communication. and parisitoid numbers in soil, harvest samples and invested in a project to determine the size, scope and threats to lucerne seed Five different viruses are known to be associated with seed samples has been commissioned. This research location of the industry. The results of the project will production in Australia this disease. Alfalfa leaf curl virus (ALCV) is the most likely Production and enable targeted extension of program outcomes and processing efficiency and will deliver outcomes that will allow producers to Published: Potential key virus, leading to severe symptoms and yield losses. ensure industry participants have access to research profitability. understand levels and impacts of LSW in their crops. exotic virus threats to There is a risk of accidental introduction of ALCV into commissioned by the Program. Australia. Potential pathways of ALCV entry are through lucerne seed production in Building industry Australia viruliferous aphids or infected host plants. Biosecurity capability and capacity. measures should be put in place to prevent its entry. Deliverables for 2019-20 Advisory Panel Members: Published: Alfalfa dwarf Grower vigilance and early detection will be key to keeping disease Draft Contingency the industry safe from ADD. To enhance productivity and sustainability of the pasture • Lisa Anderson (Chair) • Brian Field Plan seeds industry through researching pests and diseases, • Joe Cook (Vice Chair) • Annelies McGaw Published: Fact Sheet This contingency plan delivers the information available improving variety knowledge and selection for the industry, • David Brown • Dr Mary-Jane Rogers as of October 2018 on disease epidemiology, virus di- and developing new technology to address ongoing agnostic methods, and potential control measures to production concerns within the industry. assist with an appropriate biosecurity response in case of an ADD incursion into Australia. ADD is caused by a mixed infection of lucerne with up to five different viruses that may pose a potential threat to the Australian lucerne seed and hay industry.
The outcomes provide industry and government with $464, 590 $487, 922 $386,907 a clear direction if there is an incursion of an exotic lucerne virus.
Total program Total program Total program expenses expenses expenses 2017–18 2018–19 2019–20 Section 2 126 Annual Report 2019-20 127
Goat Fibre Buffalo
Highlights and achievements information to mohair and cashmere producers in Highlights and achievements The AgriFutures Buffalo Program has focused on the areas of animal health and welfare, economic addressing issues associated with uncertainty of supply Providing new guidelines about how to align Australian resilience, environmental stewardship, work health and Providing new information about the challenges of and on live export markets and processing to meet halal sustainable goat fibre production with international safety and compliance in the management system. humane stunning buffalo for Australia’s export markets. markets, both domestically and in the international supply market expectations. The new guidelines provide The study, Developing Appropriate Stunning Methods for chain. Future RD&E is likely to include competitiveness, Consumers of goat fibre products are increasingly timely guidance for Australian goat fibre producers Halal Slaughter of Water Buffalo, developed and tested sustainability and market demand for Australian buffalo in using sustainable methods to achieve good animal interested in the origin of the products and the overseas markets. health and welfare, social welfare and environmental methods employed to produce goat fibre. They a series of activities to deliver a suitable method of stewardship outcomes. are seeking assurance that fibre is produced in a humanely stunning smaller buffalo prior to slaughter for sustainable manner. halal meat production Deliverables for 2019-20 Summary of program Future RD&E priorities include a focus on extension Summary of program Investigations are ongoing into best practice methods for Halal stunning and slaughtering for local processing, which The GVP for goat fibre in 2019-20 was $1.5 million, and training of new guidelines to improve best practice, up from $1.4 million in 2018-19. The AgriFutures potentially leading to sustainability assurance The GVP for Buffalo in 2019-20 was $7.3 million, up from are in line with community expectations. Goat Fibre Program has focused on providing new programs. $5.5 million in 2018-19.
Projects completed Strategic objectives Projects completed Strategic objectives in 2019-20 Outcomes in 2019-20 for 2017-22 in 2019-20 Outcomes in 2019-20 for 2017-22
PRJ-012077 Sustainable The new guidelines provide timely guidance for Enhance industry PRJ-009441 This research was commissioned following industry Enhance industry success goat fibre production: Australian goat fibre producers using sustainable success through targeted Developing Appropriate concerns and feedback from markets about opportunities through targeted industry- Guidelines methods to achieve good animal health and welfare, industry-specific RD&E Stunning Methods to enhance the welfare of buffalo during the slaughter specific RD&E strategies. social welfare and environmental stewardship outcomes. Strategies. for Halal Slaughter of process. Previous studies have reported that buffalo are Water Buffalo notoriously difficult to stun. This report covers a series of activities aimed at developing a suitable method of humanely stunning smaller buffalo prior to slaughter for halal meat production in overseas markets.
$38,699 $23,965 $14,850 $2,129 $2,520 $50,485
Total program Total program Total program Total program Total program Total program expenses expenses expenses expenses expenses expenses 2017–18 2018–19 2019–20 2017–18 2018–19 2019–20 Section 2 128 Annual Report 2019-20 129
Kangaroo
Highlights and achievements Summary of program Projects completed Strategic objectives 1. The Australian kangaroo industry: male-only The GVP for Kangaroo in 2019-20 was $30.5 million, in 2019-20 Outcomes in 2019-20 for 2017-22 harvesting, sustainability and an assessment down from $32.5 million in 2018-19. of animal welfare impacts, project was finalised PRJ-010771 This project found that: Animal welfare – gathering in June 2020. This project provides objective The AgriFutures Kangaroo Program focuses on animal The Australian scientific evidence to a information to underpin the sustainable harvest of welfare, sustainability, nutritional value, trade barriers kangaroo industry: Animal welfare is generally improved using code- standard sufficient to gain kangaroo, and highlights that, during harvesting, and food safety and product value. male-only harvesting, compliant commercial harvesting. third-party endorsement for kangaroos are managed using ecologically sustainability and an the industry’s animal welfare sustainable practices and that animal welfare This form of kangaroo harvesting is sustainable Deliverables for 2019-20 assessment of animal practices. impacts are minimised wherever possible based on and satisfies the three components necessary for To provide RD&E to support a sustainable industry with welfare impacts the best available science. sustainable use of natural resources: harvesting Sustainability – compiling particular focus on enhancing the licence to operate and does not negatively impact biodiversity; harvesting is and sharing scientific 2. Strong progress on the review of the Kangaroo consumer appeal. profitable; and harvesting is culturally acceptable. evidence. Commercial Code (due for completion by end of August 2020). Following inclusion of new Kangaroo populations fluctuate widely. The recommendations from animal welfare research, consequences of male-only harvesting are fast public consultation on the draft code was population recovery following disturbance, and higher completed in January 2020. Consultation included average densities relative to populations which include surveys using two sample groups: a representative a greater proportion of males. sample of greater than a 1,000 people representing Consequently, this harvest strategy would not meet the Australian population, and an open survey pastoralists’ needs of controlling kangaroo populations receiving more than 11,000 responses. Differences to support better land management and pastoral between these groups provide important lessons productivity. in how the kangaroo industry is perceived by representative Australians and impacted by groups ideologically opposed to kangaroo harvest.
$129,117 $68,675 $17,797
Total program Total program Total program expenses expenses expenses 2017–18 2018–19 2019–20 Section 2 130 Annual Report 2019-20 131
Deer Ratite
Highlights and achievements Deliverables for 2019-20 Highlights and achievements Summary of program
There were no active investments during the There were no active investments during the The Ratite Program is currently supporting Lauren The GVP for Ratite in 2019-20 was $299,000, down 2019-20 period. 2019-20 period. Chartier – PhD candidate investigating the effects from $365,000 in 2018-19. of novel nutraceuticals on experimentally–induced Summary of program colitis-associated colorectal cancer. The AgriFutures Ratite Program has focused on the opportunity to value-add to the emu oil market. The The GVP for Deer in 2019-20 was $2.2 million, up from $1.9 Lauren has now completed all animal trials required research could expand the applications for emu oil. million in 2018-19. for her PhD thesis. The results from these studies are being finalised and an abstract has been The AgriFutures Deer Program will be working closely with submitted to the ‘14th Congress of The International deer farmers to partner in new RD&E investment including Society For the Study of Fatty Acids and Lipids’ for investigation of effective feeding, nutrition, genetics and presentation to be held in Qingdao, China in June market development for competitiveness along the farmed 2020. Furthermore, results from the experimental venison and velvet supply chains. work completed in year 1 of scholarship payments The plan focuses on: (grape seed extract and Emu Oil in colitis-associated colorectal cancer) were presented at Digestive • Improved handling and restraint facilities Diseases Week, a prestigious gastroenterology conference in San Diego, USA in June 2019. • Improved genetics
• Research to identify impediments to deer processing
• Research on opportunities for multi-species processing
• Extension/training for producers working with processors to facilitate deer handling and slaughter. Section 2 132 Annual Report 2019-20 133
Arena 4 Emerging Industries
Highlights and achievements Summary of program Deliverables for 2019-20
1. Developed an industry blueprint for the emerging In 2019-20 AgriFutures Emerging Industries program High-potential emerging rural industries established. Advisory Panel Members: seaweed industry in Australia. The project further developed a refined three phase maturity model involved key representatives of Government, to guide investment and provide support to the many In 2019-20, several research projects delivered for the • Brian Ruddle (Chair) regulatory organisations, entrepreneurs, industries targeted for growth. The three major phases Emerging Industries program including: • Susan Wilson (Deputy Chair) corporates, regulators, funders and a wide range have included: • Angeline Achariya of seaweed industry specialists and seaweed • Methods for improved tenderness of alpaca • Mila Bristow research organisations nationally to develop 1. Building early stage clusters (actual industry GVP carcases using different processing techniques • John Lever an understanding of the future key research up to $2 million per annum), • Tom McCue • Determining pregnancy status in camels development and extension priorities for seaweed • Christopher McLoghlin to accelerate industry growth. The seaweed • Early stage support of up to one year to conduct • Ann Ross • Fact Sheet Australian Hemp Conference industry’s forecast growth is projected to create viability assessments, identify areas for potential • Ian Smith 2020 - Proceedings new coastal jobs helping protect and regenerate RD&E, and portfolio building or market development • Will Taing activities that will help guide industry formation, waterways and contribute to greenhouse gas • Seaweed Industry Blueprint – Strategic Plan reduction. feasibility and growth • Insect RDE Strategy 2. Development of sesame as a high-value summer 2. Growing industry capability (actual industry GVP $2 million and up to $10 million per annum), cropping alternative in Australia with the rollout • Australian Truffle Orchards Pest and Disease of commercial R&D field trials using new Field Guide shatterproof varieties to improve harvest yield • Funding of up to two years for collaborative RD&E projects to resolve key technical challenges and to capitalise on new markets with increased • Australian Truffle Orchards Integrated Pest and and RD&E programs to accelerate growth and global demand for sesame seed and sesame oil. Disease Management Manual development to achieve a GVP of $10 million 3. Created an unmatched DNA-based genomic • Pests and diseases of truffles and their host trees 3. Expanding toward established and/or levied resource for Australian livestock herding dogs, in Australia - handbook including 12 whole-genome sequences from industries – (actual industry GVP $10 million per Australian Kelpies and electronic DNA scan data annum or greater) • National Industrial Hemp Variety Trial Fact Sheet from 320 Kelpies, as well as smaller numbers of samples of other breeds. A new genetic database • Projects up to two years to support continuity of and new knowledge relating to the value of a newly emerged industry to sustain growth and livestock herding dogs in Australia and identified development. key traits. This has enabled greater clarity towards accelerating 4. Generated a business case to support the industries towards $10 million GVP per annum. development of a world first industrial hemp variety trial program nationally across Australia. Procurement in 2019-20 has been guided by the three- The business case outlines the system to enable phase approach and also resulted in greater value $ $ $ the independent assessment of industrial hemp chain integration for all newly contracted projects with 1,644,300 1,217,133 2,588,926 varieties that consistently deliver high quality most projects having commercial partners in their and high yielding products across a range of R, D and E projects. Australian locations and environments for the commercial benefit of growers and the entire supply chain. Total program Total program Total program expenses expenses expenses 2017-18 2018-19 2019-20 Section 2 134 Annual Report 2019-20 135
Emerging industries
Projects completed Projects completed in 2019-20 Outcomes in 2019-20 in 2019-20 Outcomes in 2019-20
PRJ-011891 The project successfully developed and validated a reliable blood PRJ-012-018 AgriFutures sponsored the Conference held in Fremantle and Determining pregnancy status in sampling tool for determining pregnancy status of feral camels. It is Australian Industrial Hemp proceedings that culminated from 247 delegates, 47 expert camels. expected that the technique will be easily adopted by veterinarians Conference 2020 – Proceedings speakers and 20 exhibitors including topics on: working with feral camels. Fact Sheet Industrial hemp production for cannabidiol (CBD); seed supply for Australia; crop agronomy; food and health products; fibre and material products and Industry cooperation and investment PRJ-010413 The project successfully developed a system, tools and resources opportunities Commencing implementation of a for the genetic evaluation of valuable phenotypic traits of working genetic evaluation system for livestock dogs. It also established a new database resource that will enable working dogs the collection, curation and analysis of livestock herding ability in PRJ-010399 This communications focused project catalogued and described the dog performance data. Research and Development most destructive of truffle pests and set the framework for the DNA Extension for the Truffle Industry survey of soil to assist in determining the presence of pest species, which otherwise may not have been noticed because of their cryptic or PRJ-010702 The Leptospermum Plant Breeding program achieved many trait Published: Australian Truffle nocturnal activities. Leptospermum Plant Breeding objectives in the green house and in field trials. Orchards Pest and Disease Program for Development of High Field Guide Grade Manuka Honey Published: Australian Truffle Orchards Integrated Pest and PRJ-011909 Development of a roadmap to provide the Australian insect industry Disease Management Manual Catalysing a $10M Australian Insect with growth strategies, market differentiation with other proteins/ Published: Pests and diseases Industry: an industry-led RD&E plan animal feed sources, and positioning for downstream processing of truffles and their host trees in and markets. Furthermore, it will fast-track the Australian industry Australia towards being recognised as a global leader in insect farming and enable producers to capitalise on Australia’s unique opportunities and competitive advantages. Section 2 136 Photo credit: Nicolas Neveux, Pacific Biotechnologies
In the spotlight Blueprint for a $billion “The opportunity for an Australian seaweed industry Australian seaweed industry is really significant from an AgriFutures Australia together with the Australian Seaweed Institute, developed a blueprint for the emerging seaweed economic, environmental and industry in Australia. The industry has ambitions to create new coastal jobs, protect and regenerate waterways and contribute social impact lens.” to greenhouse gas reduction.
“The current global market for “The opportunity for an About the Australian seaweed products such as food, Australian seaweed industry Seaweed Institute cosmetics, nutraceuticals, animal is really significant from an feed and fertiliser is estimated economic, environmental and The Australian Seaweed Institute is at over US$11 billion and is social impact lens. Just one of the spearheading industry development expected to double in value by native seaweeds found off the through collaboration with growers, 2025,” said Jo Kelly, CEO of the Australian coast, Asparagopsis, researchers, businesses and Australian Seaweed Institute. has been shown to reduce government to create a model for methane emissions from cattle to sustainable ocean aquaculture “Australia has ideal growing almost zero when added to their and, in parallel, develop the market conditions and a huge export feed. This is significant because for the end products and research opportunity for high-value more than 66 per cent of all programs needed to position bioproducts from native agricultural greenhouse gases in Australia as a global leader. With an Australian seaweeds. And Australia come from the digestion initial launch into the food market, while there are a handful of process of cattle. The Australian Seaweed Institute’s entrepreneurs and researchers product will be export ready and undertaking projects around “This single use for seaweed closely followed by seaweed products Australia, there are no is incredibly exciting, but as for use in nutraceuticals, bio commercial scale seaweed the research into bioproducts plastics, animal feed and fertiliser. ocean farms operating here and from native Australian seaweed australianseaweedinstitute.com.au/ no strategic plan for industry species is virtually non-existent, development,” she added. the potential for this industry to About Jo Kelly contribute to global health and MBA, B.Env. Eng, Grad Cert. The Seaweed Industry Blueprint nutrition while adding significant Innovation & Sustainability. Myer project is designed to unite value to the Australian economy Innovation Fellow 2019 existing seaweed research and cannot be overstated,” said aquaculture efforts into an action Ms Kelly. An impact entrepreneur with over plan to accelerate investment 20 years’ experience in business, Jo and development. The project The initial objective of the is passionate about growing a new forms part of AgriFutures blueprint is to outline the regenerative, seaweed industry in Australia’s Emerging Industries seaweed industry opportunity for Australia to support thriving oceans Program which is focused on Australia including a clear plan and communities. identifying and supporting of action that will, at a minimum, the emergence of agricultural deliver a $10 million industry by She combines executive experience industries that can reach, or 2025. The second objective is to in strategy, sustainability, innovation, exceed, a $10 million per annum create an industry development ethical finance and environmental threshold in the next five years. blueprint with appropriate engineering to drive forward milestones to grow the industry sustainable industries of the future. to over $1 billion by 2040. Section 2 138 Annual Report 2019-20 139
Examples of AgriFutures Australia collaborations Collaboration across industries and the sector
What Who Aim
Plant Biosecurity AgriFutures Australia, Cotton RDC, CCRDC, A collaboration of plant At AgriFutures Australia, we The AgriFutures Australia Strategic R&D Plan 2017- Research Initiative Australian Government, FWPA, GRDC, industries related research understand that the key to 2022 reflects our strong commitment to collaboration, Phase 1 (2018-2020) Horticulture Innovation, PHA, SRA, Wine organisations that aims to specifically focussing on cross-sector and cross-regional Australia. increase national coordination developing real and lasting approaches to research. PRJ-010855 of R&D investments that https://www.pbri.com.au/about/ support the long-term solutions for our rural industries We believe that adopting a collective approach to RD&E not protection of Australia’s plant only results in greater resources for individual projects, but is to take a shared approach to sector from biosecurity threats. shared challenges. That is why we also helps to achieve a shared commitment to nationally significant challenges such as biosecurity, climate change, collaborate with a range of industry natural resource management and capacity building. and government stakeholders Honey bee genetic AgriFutures Australia, NSW DPI, University The project will develop a to develop and implement RD&E improvement of Sydney, Better Bees WA, Wheen Bee national genetic improvement initiatives with benefits across the National cross-sectoral RD&E strategies program. Foundation, Olam, Monson’s Honey & program to transform the Pollination, Costa Group, South Pacific performance of honey bees Rural RnD4Profit agricultural sector. AgriFutures Australia plays a lead role in one of the national Seeds Pty Ltd, Australian Government. in Australia using innovative 18-04-021 cross-sectoral RD&E strategies. For the Climate Research breeding technologies. The Strategy for Primary Industries cross-sectoral strategy, project will focus on selecting AgriFutures Australia coordinates activities across traits of importance to 19 partners including the Australian Government, beekeeping, horticulture and state and territory governments, CSIRO and other RDCs. broadacre industries dependent on honey bee pollination. A national database will be built to hold the honey bee genetic trait data that is collected. The project will also undertake an economic evaluation of breeding programs and develop and implement standardised selection methods that beekeepers can use to assess honey production, pollination and health traits. Section 2 140 Annual Report 2019-20 141
What Who Aim What Who Aim
Underpinning AgriFutures Australia, CSIRO, NSW DPI, This project will undertake Improving plant Horticulture Innovation, AgriFutures The development of a mobile, agricultural QDAF, VDJPR, GRDC, Bundaberg Regional foundational and applied pest management Australia, Cotton RDC, GRDC, SRA, Wine cross-industry plant pest productivity and Council, Gympie Regional Council, HQ research to contribute to through cross Australia, FWPA, Nursery & Garden Industry surveillance network to monitor biosecurity by weed Plantation P/L, Hinchinbrook Shire Council, integrated management of industry deployment Association, CSIRO, SARDI, WAAA, DJTR, the presence of pests that biological control NSW Environmental Trust, NSW Weed important weeds that affect of smart sensor, NZIPFR, Rothamsted Research, Burkard threaten major agricultural Biocontrol Taskforce, SEQ Water, Australian Australian agriculture and diagnostics and Scientific, PHA, Australian Government. sectors across Australia. Rural RnD4Profit Government. water resources. The project forecasting. 18-04-014 will focus on 11 major weeds and complete risk assessments PRJ-012437 of promising biocontrol agents RnD4Profit identified, undertake large- scale releases of approved agents and understand Forewarned is MLA, AgriFutures Australia, GRDC, Cotton Australian farmers and agribusiness interactions between control forearmed: equipping RDC, SRA, AGWA, Dairy Australia, APL, BOM, operate in one of the most variable methods, as well as progressing farmers and University of Melbourne, QDAF, SARDI, climates of any country in the world, biocontrol research into new agricultural value USQ, Monash University, DEDJTR, Suncorp, with extreme events and climate weed targets towards delivery. chains to proactively Australian Government. variability the largest drivers of manage the impacts fluctuations in annual agricultural of extreme climate income and production. This project Australian AWI, AgriFutures Australia, Cotton RDC, Consider the implications events. will deliver direct value to farmers Participation in GRDC, MLA, SRA. for EU trade exposed through improving the seasonal PRJ-011148 the European Australian industries from forecast of extreme climate events, RnD4Profit Union Product an environmental impact including low and high rainfall, heat, 16-03-007 Environmental perspective. cold and frost. It will equip farmers Footprint Technical with the information and tools to Advisory Board. be forewarned and change their (OF-005541) management practices so they are proactively prepared. The project PRJ-012437 outputs will decrease the impacts of extreme climate events on farm and industry profit. Food Agility CRC AgriFood businesses, technology Improve the competitiveness, companies, researchers, government. productivity and sustainability PRJ-010765 of Australia industries. Foster High throughput APL, AgriFutures Australia, Murdoch Provide the Australian pig and AgriFutures Australia, Food & Fibre high quality research to solve technology University, University of Adelaide, Tecan chicken meat producers with Gippsland, AFI, AWRI, Costa Group, CSBP, industry-identified problems for defining Australia, Thermo Fisher Scientific, NSW a competitive advantage in the FIAL, IAG, KPMG, Mulgowie Farming Co., through industry-led and antimicrobial DPI, Illumina, Australian Government. international market by developing MLA. outcome focused collaborative resistance status of a world’s best practice for objective partnerships. Encourage and pork and chicken. description of the occurrence of facilitate small and medium antimicrobial resistance at the enterprise participation in PRJ-011051 herd/flock level. collaborative research. Rural RnD4Profit 16-03-012 Section 2 142 Annual Report 2019-20 143
What Who Aim What Who Aim
Closing the Loop: Australian Pork Ltd, AgriFutures Australia, This project will investigate the Boosting diagnostic GRDC, Hort, SRA, Cotton RDC, Wine Develop and implement Black Soldier Fly Australian Eggs, AMPC, Dairy Australia, development of Black Soldier capacity for plant Australia, FWPA, AVR, SARDI, QDAF, improved national diagnostics technology to convert QDAF, FRDC, Future Green Solutions, Fly Farming (BSF) castings and production industries. Australian Government. for key biosecurity threats by agricultural waste University of Western Australia, Australian larvae into high quality, low- developing diagnostics that into high quality Government. cost, slow-release, granulated PRJ-012847 In-kind: AgriFutures Australia facilitate early and accurate fertiliser and soil fertilizer products, that are safe Rural RnD4Profit diagnosis and rapid response improvers. to handle, transport and apply. 18-04-003 to threats that impact on It will assist with overcoming production and access to PRJ-012404 existing adoption barriers by domestic and international Rural RnD4Profit involving policy makers and markets. farmers during field trials and assisting early adopters through extension activities. Area Wide Cotton RDC, AgriFutures Australia, CSIRO, This project will identify the Adoption of BSF technology and Management University of New South Wales, University benefits, key principles and its products has the potential for cropping of Queensland, University of Adelaide, practices of successful weed to increase productivity and systems weeds, Millmerran Landcare Group, Irrigation Area Wide Management (AWM) profitability via reduced investigating the Research & Extension Committee Inc, by developing an improved input costs and generation of weed management, Toowoomba Regional Council, Australian understanding of the bio- alternative revenue streams social and economic Government. physical, geographic, economic to a wide range of agricultural opportunity. and social drivers of AWM enterprises. success through studying key Rural RnD4Profit weed species across diverse landscapes. The project will also characterise and identify Smarter Irrigation for Cotton RDC, AgriFutures Australia, SRA, Increase the water productivity the social and economic Profit Phase 2 Dairy Australia, GRDC, Deakin University, of over 4000 irrigated cropping costs and benefits of weed University of Melbourne, USQ, University and pasture agricultural management across a range PRJ-012384 of Tasmania, University of Sydney, DJPR, enterprises by 10-20%. of land uses. Rural RnD4Profit Gwydir Valley Irrigators, NSW DPI. Section 2 144 Annual Report 2019-20 145
What Who Aim What Who Aim
Climate Research A joint initiative of rural RDCs, state To promote a strategic and AgriFutures Rural AgriFutures Australia, Westpac To identify and support the Strategy for Primary and territory governments, Australian collaborative approach to Women’s Award Agribusiness, ABC Rural, Fairfax capabilities of emerging rural Industries Government, DAWR and CSIRO – climate change RD&E for Agricultural Media, RM Williams Outback women leaders to increase their 19 in total. primary industries. Magazine, Australia Community Media and participation and contribution state/territory governments. to Australia’s primary industries and rural communities. Rural Safety and AgriFutures Australia, Australian Eggs, Healthy, safe and productive Health Alliance Australian Pork Limited, Australian working lives in the primary Wool Innovation, Cotton Research and industries through investment AgVet Collaborative AgriFutures Australia, GRDC, DA, HIA, CRDC, To identify solutions to key Development Corporation, Dairy Australia, in RD&E to drive sustainable Forum AWI, SRA, WA, Forest and Wood Products industry challenges in relation Fisheries Research and Development improvements to work health Australia, CropLife Australia and Animal to accessing agvet technologies, Corporation, Grains Research and and safety outcomes. Medicines Australia. and highlight areas of business Development Corporation and Meat and opportunity for agvet chemical Livestock Australia. registrants by providing a priority list of industry needs and a process to identify potential partnerships and co- AgriFutures Horizon AgriFutures Australia, Dairy Australia, To support the next generation investment opportunities with Scholarship AgriFutures Chicken Meat, Grains Research of agriculture leaders who will industry. Development Corporation, Cotton Research take up the challenge of farming and Development Corporation, AgriFutures for the future. In partnership Rice, Australian Wool Innovation, Hort with industry sponsors, the goal Innovation, Australian Eggs, Meat and of the scholarship is to enhance Honey Bee and AgriFutures Australia Honey Industry Support RD&E that will secure Livestock Corporation, McCaughey the future supply of graduates Pollination RD&E Association and HIA. a productive, sustainable and Memorial Institute and Westpac. available for employment in the more profitable Australian rural sector. beekeeping industry and secure the pollination of Australia’s horticultural and agricultural crops.
Poultry Hub Australia AgriFutures Australia, Australian Eggs and The Poultry Hub Australia was University of New England. established at the conclusion of the Poultry CRC in mid-2017. The key objective PHA is to provide leadership in coordinating collaborative projects essential to the Australian poultry industry’s long-term sustainability and deliver practical solutions in a nimble and timely manner. Section 2 146 Annual Report 2019-20 147
What Who Aim What Who Aim
Feed Grains AgriFutures Australia, Australian Eggs, GRDC, Established to integrate and Rural R&D for Profit GRDC, CSIRO, NSW DPI, QDAF, VIC The project aims to improve Partnership MLA, APL, DA, Pork CRC and Stock Feed identify collaborative research program – New DEDJTR, PIRSA, SEQ Water, Shire of the long-term profitability of Manufacturers’ Council of Australia. and development initiatives Biocontrol Solutions Ravensthorpe, NSW Weed Biocontrol primary producers by developing across participating R&R funding for Sustainable Taskforce, North West LLS, NSW Office novel biocontrol solutions that agencies involved with the feed Management of of Environment & Heritage,Bundaberg will reduce recurrent costs of grain and livestock supply chain. Weed Impacts Regional Council, Gladstone Regional control for farmers affected by to Agricultural Council, HQ Plantations, Goulburn Murray the target weeds. Profitability Water Corporation, Murrumbidgee Irrigation Ltd, Coleambally Irrigation Rural R&D for Profit AgriFutures Australia, HIA, University of This project will increase the Rural RnD4Profit Cooperative Limited, Goulburn Broken program – Securing Adelaide, University of Sydney, University profitability and security of 15-02-005 CMA, Murray LLS, USDA-ARS, Australian Pollination for of New England, Australian National pollinator dependent crops by Biological Control Laboratory, Wyong Shire More Productive University, PIRSA, SA Department improving the health, diversity Council, NSW National Parks Service, Agriculture: Environment, Water and Natural Resources, and abundance of pollinators on Central Murray County Council and Guidelines for O’Connor NRM, Native Vegetation Council, farms. It will do so by managing Murrumbidgee Landcare Inc. Effective Pollinator Trees for Life and Apple and Pear Ltd, and improving natural resources, Management and Lucerne Australia, SA Apiarist Association, in particular critical food Stakeholder Adoption Northern and York NRM Board, Costa Group, resources to support managed Australian Melon Association, Australian and wild crop pollinators, and Rural R&D for Profit Meredith Dairy, University of Melbourne, This project will improve the Rural RnD4Profit Mango Industry Association, Terrestrial in doing so will manage and program – Taking the and University of Queensland, University understanding of Q Fever 15-02-035 Ecosystems Research Network, Greening mitigate the biosecurity risk ‘Q’ (Query) out of ‘Q’ of Sydney, Australian Rickettsial Research reservoirs, amplification and Australia, Almond Board of Australia, posed by the Varroa mite. Fever Laboratory, University of Adelaide, transmission pathways to help Adelaide and Mount Lofty Ranges Natural Charles Sturt University and Goatvetoz. direct biosecurity resources Resources Management Board, Apple and Rural RnD4Profit more efficiently. In turn, this Pear Growers Association (SA), Raspberries 15-02-008 will reduce the burden of an and Blackberries Australia, Eco-informatics. extremely debilitating disease in rural communities.
Australian Pastures AgriFutures Australia, GRDC, AWI, MLA, To acquire, document, conserve, Genebank DA, and state Departments of Agriculture. maintain and distribute plant genetic resources of pasture and forage species of actual or potential value to Australian agriculture. Section – 03 Section 2
Operations
Investments
– Overview of R&D investments 150 – Financial snapshot 152-155
– Evaluation 156-161
– Communicating R&D results 163
People and Governance
– AgriFutures Australia Board 164-169
– AgriFutures Australia staff 170-171
– Governance and accountability 172-183
Section 03 Operations Section 3 150 Annual Report 2019-20 151
Investments
Overview of R&D investments
In 2019-20, AgriFutures Australia invested in 147 new The main elements of the RD&E investment framework A balanced R&D portfolio Cost Allocation Policy projects, of which 104 were research projects. The for 2019-20: average AgriFutures Australia investment per research AgriFutures Australia invests its RD&E funds through AgriFutures Australia has a Cost Allocation Policy for project increased from 2018-19, continuing the steady • Continued engagement with our levied industries new, developing, maturing and established industry allocating direct and indirect costs across its programs. upward trend. through an online Levied Industry Forum programs, along with several national and cross-sectoral Direct research and development program costs are programs and initiatives. allocated at program level and corporate costs are When deciding on which research programs to invest in, • Encouraging industry uptake of innovation in allocated through a program management fee. This fee AgriFutures Australia evaluates, among other things, the more of our industries through targeted extension Expenditure is allocated using a range of measures that is based on a three-year rolling average of expenditure likely level of industry adoption of the research outputs, programs ensure a balanced, financially responsible approach to its including the current year forecast and the previous two together with the expected economic, environmental, investment of both industry and core funds. • An annual review of performance against the years’ actual expenditure. This is then weighted and capped and social effects of the project outputs. at a pre-determined proportion of research expenditure RD&E Plan Our investments integrate the triple bottom line objectives to ensure the variance in effort between small and large of economic, environmental and social responsibility. The programs is captured as accurately as possible. • External evaluation of Export Fodder, Chicken majority of investment is aligned with short-to-medium- Meat (noting evaluation is on page 165), Rice and term adaptive research outcomes and investment returns, Kangaroo Investment over the period of their with the remainder contributing to long-term strategic respective RD&E srategies research objectives.
• Establishing industry specific strategic directions Our industry advisory panels provide advice as to the for the coming year appropriate balance of investment between industry- • Preparing Annual Operational Plan (AOP) specific RD&E priorities and cross-sectoral investment, proposals with input from AgriFutures Australia’s including: R&D advisory panels through an annual review of • Government research priorities progress against their RD&E strategic plans • Program objectives • Setting funding allocations for 2019-20 • Project length • Aligning program strategies within portfolios against RD&E strategic plans, and allocating pre- • Levels of risk, return and leverage. determined budgets Industry advisory panels assist in identifying and advising • Implementing programs through a combination of on specific RD&E priorities to implement the RD&E open call and commissioned projects plans. Financial investment is determined by industry contribution, Australian Government where appropriate, • Developing communication strategies for all and our own evaluation of the RD&E needs against levied industry programs. investment priorities.
Where AgriFutures Australia is the appropriate lead agency, we manage and develop collaborative investment programs with partners. Areas that are well suited to collaborations include climate change issues, natural resource management, health, safety and welfare, capacity building and leadership. Section 3 152 Annual Report 2019-20 153
Financial snapshot
Financial and operational summary ($M)
Revenue 2019-20 2018-19 2017-18 2016-17 2015-16 Revenue as % 2019-20 2018-19 2017-18 2016-17 2015-16
Commonwealth appropriation 10.2 11.5 9.3 9.2 8.6 Commonwealth appropriation 22% 34% 32% 40% 31%
Industry levies 3.5 5.3 5.8 3.2 4.0 Industry levies 7% 15% 20% 14% 14%
Commonwealth matching 20.7 5.3 4.7 4 3.3 Commonwealth matching 44% 15% 16% 17% 12%
External Contributions 11.0 10.4 7.1 4.7 11.0 External Contributions 24% 30% 24% 20% 39%
Interest 0.5 0.6 0.6 0.6 0.6 Interest 1% 2% 2% 3% 2%
Other income 1.0 1.4 1.6 1.5 0.5 Other income 2% 4% 6% 6% 2%
Total 46.9 34.5 29.1 23.2 28.0 Total 100% 100% 100% 100% 100%
Expenditure 2019-20 2018-19 2017-18 2016-17 2015-16 Expenditure as % 2019-20 2018-19 2017-18 2016-17 2015-16
Research programs 31.6 26.0 24.7 22.9 17.3 Research programs 84% 84% 87% 86% 81%
Communications 0.4 0.6 0.5 0.5 0.5 Communications 1% 2% 2% 2% 2%
Corporate 5.7 4.4 3.0 3.1 3.6 Corporate 15% 14% 11% 12% 17%
Total 37.7 31.0 28.2 26.5 21.4 Total 100% 100% 100% 100% 100% Section 3 154 Annual Report 2019-20 155
Expenses 2019-20 Expenses 2019-20 $000 $000
Arena 1 - Evaluation 12 Arena 3 - All Levied Industries 51 People and Growing Profitability AgriFutures Horizon Scholarships 275 Buffalo 15 Leadership People and Leadership 302 Chicken Meat 6,147
AgriFutures Rural Women's Award 422 Deer 5
Levied Industries Capacity Building 150 Export Fodder 1,335
AgriFutures Summit 157 Ginger 320
Goat Fibre 50 Total Arena 1 - People and Leadership 1,318 Honey Bee and Pollination 605
Kangaroo 18
Northern Rice 1,184 Arena 2 - Ag Vet Chemical 297 National Challenges Pasture Seeds 387 Biomass for Bioenergy 484 and Opportunities Ratite 8 BridgeHub 100 Rice 3,364
Climate Change Research Strategy 453 Tea Tree Oil 543
evokeAG 2,227 Thoroughbred Horses 982
Extension Hub 223 Total Arena 3 - Growing Profitability 15,014 growAG. 63
Honey Bee Genetic Improvement 34
Joint-RDC Community Trust Program 572 Arena 4 - National Rural Issues 1,663 Emerging Industries
New biological solutions for sustainable management 1,839 Total Arena 4 - Emerging Industries 2,589 of weed impacts to agricultural profitability
Promoting the Importance of Bee’s in Agriculture 184
Rural Safety and Health Alliance 204 Corporate Board 105
Secure Pollination for more productive agriculture: 1,363 Communications 427 Guidelines for effective pollinator management and Corporate 976 stakeholder adoption Information & Communications Technology 761 Taking the Q (query) out of Q Fever: developing a (47) better understanding of the drivers of Q fever spread Salaries 2,094 in farmed ruminants Salaries - Third Party Employees 1,767
Underpinning agricultural productivity and 2,933 Strategic Contingency 63 biosecurity by weed biological control
Total Corporate 6,193 Total Arena 2 - National Challenges and Opportunities 12,592
Total expenses 37,706 Section 3 156 Annual Report 2019-20 157
Table 1 Economic Evaluation Investment Criteria for the Export Fodder Industry by Project Export Fodder (discount rate 5%, 30 years from 2019/20)
Project Code and abbreviated PVB ($m) PVC ($m) NPV ($m) BCR IRR (%) MIRR (%) Title
Export Oaten Hay Breeding 3.93 2.47 1.46 1.59 10.2 6.5 In July 2020, an economic Methods Program PRJ-007615, PRJ-011408 and PRJ-011967 evaluation was carried out on The impact assessment used cost-benefit analysis the Export Fodder Program Five (CBA) as its primary tool, incorporating both qualitative Year RD&E Plan 2016-2021 by and quantitative approaches. Initially, 10 R&D project Fodder Safe 1.79 0.47 1.32 3.78 60.1 11.0 investments were defined, however, once evaluation criteria Project number PRJ-010570 Poimena Analysis, in accordance were applied, the scope of the assessment encompassed with the Council of Rural Research five projects. These projects were completed between and Development Corporations’ 2016 and 2020, covered two of the seven objectives of the Workplace Safety Standards 0.16 0.20 -0.04 0.78 2.3 3.6 Export Fodder Program Five Year RD&E Plan 2016-2021, Project PRJ-010828 guidelines. Qualitative summaries of had sufficient information and documentation available, all program investments within the 1 and had not been included in any previous program July 2016 – 30 June 2021 timeframe evaluations. Three of the projects were grouped under one Aggregate of five projects 5.80 3.15 2.65 1.83 14.5 7.3 topic, Export Oaten Hay Breeding, the others were Fodder (above three projects/ were compiled, which included the Safe (maintaining product market standard) and Workplace groupings) identification of project outputs, Safety Standards. outcomes and impacts. Project Project information was assembled from original project Aggregate across the AgriFutures 5.80 3.41 2.40 1.70 13.0 7.0 impacts were categorised in a triple proposals, final reports, and any progress reports or other Australia Export Fodder 5 Year bottom line context, in terms of relevant publications and materials. Assistance was RD&E Plan 2016-2021 provided by AgriFutures Australia personnel, industry delivery of economic, environmental personnel, project principal investigators and others. The and social benefits. Some of the most nature and extent of impacts realised and/or anticipated significant project impacts were was used to determine projects with significant impact. An economic evaluation of the significant impacts against quantitatively valued as part of the not only the cost of those projects but also the costs of Analyses were undertaken for total impacts that included investment criteria for the export fodder industry alone assessment. all projects in the population was conducted. The present future expected impacts. Conservative assumptions were (Table 1). The second set of investment criteria are the value of benefits (PVB) and the present value of costs (PVC) used to avoid overstating future expected positive impacts national returns from the investment (Table 2). This is were used to estimate investment criteria of net present or benefits. Sensitivity analyses were undertaken for needed given that a significant portion of the investment value (NPV) and benefit-cost ratio (BCR) at a discount rate variables with significant uncertainty and for variables that in the workplace safety project accrues to the Australian of 5%. The PVB and PVC are the sums of the discounted were key drivers of the investment criteria. community and to Australian workers. streams of benefits and costs. The key implications from each of the three projects/ The internal rate of return (IRR) was estimated from the groupings are: annual net cash flows. The modified internal rate of return Results/key findings • The Export Oaten Hay Breeding is the principal means (MIRR) was estimated using a re-investment rate of 5%. Overall program funding, from both AgriFutures and of investment for genetic gain and improvements for All past costs and benefits were expressed in 2019-20 other investors, for the five projects where impacts were the industry to maintain a producer’s terms of trade dollar terms using the Implicit Price Deflator for Gross valued totalled approximately $3.9 million (present value through increasing productivity. Investment return is Domestic Product. Investment criteria were estimated terms) and produced aggregate total expected benefits dependent on new varieties achieving market share. for 0, 5, 10, 15, 20, 25 and 30 years from the year of last of approximately $5.8 million (present value terms). This research investment for the Program. However, the 30-year gave an estimated net present value of $2.4 million, an • AgriFutures Australia’s investment in Fodder Safe benefit time frame was used in summary performance aggregate benefit-cost ratio of 1.7 (ranging from 0.8 to 3.8 provides a strong economic return on the investment. reporting and in all sensitivity analyses. Cost for each depending on project), an internal rate of return of 13% and In addition, there are significant environmental and project included the cash contributions of the Program a modified internal rate of return of 7%. social benefits to which the project contributes that (including both AgriFutures and industry investment), as could not be quantified but are important. well as any other resources contributed by third parties (e.g. There are two sets of investment criteria reported for researchers, both as cash and in-kind). the investment by AgriFutures Australia. The first is the Section 3 158
Table 2 Investment Criteria for the Australian community by Project (discount rate 5%, 30 years from 2019/20)
Project Code and PVB ($m) PVC ($m) NPV ($m) BCR IRR (%) MIRR (%) abbreviated Title
Export Oaten Hay 3.93 2.47 1.46 1.59 10.2 6.5 Breeding Program PRJ-007615, PRJ-011408 and PRJ-011967
Fodder Safe 1.79 0.47 1.32 3.78 60.1 11.0 Project number PRJ-010570
Workplace Safety Standards 3.13 0.20 2.92 15.52 42.8 15.4 Project PRJ-010828
Aggregate of five projects 8.85 3.15 5.70 2.81 18.7 8.7 (above three projects/ groupings)
Aggregate across the 8.85 3.41 5.44 2.60 17.1 8.4 AgriFutures Australia Export Fodder 5 Year RD&E Plan 2016-2021
• The results from the impact assessment suggest Conclusions that the Workplace Safety Standards project, at face value, generates a poor return for the The positive results in terms of the type of impacts industry. However, this ignores the benefits of an identified and valued indicate that the program is improved ability of companies and the industry to delivering value for the resources invested. Based on these attract and retain high value employees and the overall findings, AgriFutures Australia is confident that the improved safety image of the industry, neither of Export Fodder RD&E investments are worthwhile. which were able to be valued. More importantly, it does not take into account the much larger community and worker benefits which flow from an improved workplace safety environment. The results from this impact assessment suggest that once these benefits are taken into account, the project has a gross national benefit. Section 3 160 Annual Report 2019-20 161
Table 1 Economic Evaluation Economic evaluation of the investment by objective from the AgriFutures Chicken Meat Chicken Meat Program Five Year RD&E Plan 2014-2019.
Objective PVC ($m) PVC ($m) NPV ($m) BCR IRR (%) MRR (%)
1. Increase the productivity and $1.81 $22.92 $21.11 12.7 655% 16% Methods efficiency of chicken meat In May 2019, an economic production evaluation was carried out on the The impact assessment used cost-benefit analysis Chicken Meat Program Five Year (CBA) as its primary tool, with a focus on quantitative 2. Deliver safe food and good $1.37 $5.53 $4.16 4.0 73% 11% RD&E Plan 2014-2019 by GHD Pty approaches. Initially, 45 R&D project investments were animal welfare outcomes defined, however, once evaluation criteria were applied, Ltd, in accordance with the Council the scope of the assessment encompassed 30 projects. of Rural Research and Development These projects were completed between 2014 and 3. Manage the environment $1.12 $7.52 $6.40 6.7 55% 14% 2018, covered all five objectives of the Chicken Meat for sustainable Corporations’ guidelines and to Program Five Year RD&E Plan 2014-2019, had sufficient development guide the implementation of the information and documentation available, and had not Chicken Meat Three-Year RD& been included in any previous program evaluations. 4. Create foundations for the $0.48 $0.99 $0.51 2.1 64% 10% Project information was assembled from original project future, including capacity E Plan (2019-2022). Qualitative proposals, final reports, and any progress reports or and market insight summaries of all program other relevant publications and materials. Assistance investments within the 2014-2019 was provided by AgriFutures Australia personnel, project 5. Ensure research adoption $0.48 $2.57 $2.09 5.3 226% 14% principal investigators, industry personnel including the via extension and timeframe were compiled, which Australian Chicken Meat Federation. included the identification of project communication The nature and extent of impacts realised and/or outputs, outcomes, and impacts. anticipated was used to determine projects with Total $5.25 $39.52 $34.27 7.5 157% 13% Project impacts were categorised significant impact. An economic evaluation of the in a triple bottom line context, significant impacts against not only the cost of those in terms of delivery of economic, projects but also the costs of all projects in the population was conducted. The present value of benefits Results/key findings environmental, and social benefits (PVB) and the present value of costs (PVC) were used to and assessed against the Chicken estimate investment criteria of net present value (NPV) Overall program funding, from both AgriFutures and However, this analysis excludes additional non-market and benefit-cost ratio (BCR) at a discount rate of 5%. The other investors, for the 30 projects where impacts were benefits to the broader community, principally via Meat Program Five Year RD&E Plan PVB and PVC are the sums of the discounted streams of valued totalled approximately $5.3 million (present value improved animal welfare, environmental and human health 2014-2019 objectives. benefits and costs. The internal rate of return (IRR) was terms) and produced aggregate total expected benefits outcomes. These outcomes are important contributors to estimated from the annual net cash flows. The modified of approximately $39.5 million (present value terms). This the industry’s ‘social licence’. internal rate of return (MIRR) was estimated using a re- gave an estimated net present value of $34.3 million, investment rate of 5% (Table 1). Investment criteria were a benefit-cost ratio of 7.5 (ranging from 2.1 to 12.7 Table 1 shows the estimated values for key economic estimated for 0, 5, 10, 15, 20, 25 and 30 years from the depending on objective), an internal rate of return of 157% metrics from the 30 projects evaluated for the Chicken year of last research investment for the Program. and a modified internal rate of return of 13%. Meat RD&E Program.
However, the 30-year benefit time frame was used in Of note, the investment in Objective 1 Increase the summary performance reporting and in all sensitivity productivity and efficiency of chicken meat production Conclusions analyses. Cost for each project included the cash delivered incremental gains in production efficiency, via contributions of the Program (including both AgriFutures reduced inputs and increased feed efficiency, and resulted The positive results in terms of the type of impacts and industry investment), as well as any other resources in significant benefits. These investments were estimated identified and valued indicate that the program is contributed by third parties (e.g. researchers, both to have delivered the highest BCR of the five objectives delivering value for the resources invested. Based on these as cash and in-kind). Analyses were undertaken for (12.7). The economic impact of projects focussed on overall findings, AgriFutures Australia is confident that the total impacts that included future expected impacts. delivering safe food and good animal welfare outcomes Chicken Meat RD&E investments are worthwhile. Conservative assumptions were used to avoid (Objective 2) and improved environmental outcomes overstating future expected positive impacts or benefits. (Objective 3) are estimated to deliver a relatively lower Sensitivity analyses were undertaken for variables with economic return (BCR of 4.0 and 6.7 respectively). significant uncertainty and for variables that were key drivers of the investment criteria. Section 3 162 Annual Report 2019-20 163
Performance against the Australian Communicating Government’s research priorities R&D results
Science and Research Priorities AgriFutures Australia publishes In 2019-20, AgriFutures Australia collected the fourth full year of data about the additional communication Expenditure for 2019-20 final reports and/or project outputs produced by research projects. Figure 9 provides Arena 1 Arena 2 Arena 3 Arena 4 Total Total summaries to promote and make the number of presentations (at field days, workshops ($’000) ($’000) ($’000) ($’000) ($’000) (%) publicly available the results and and conferences), scientific journal articles and industry newsletter articles delivered, or that will be delivered, by 1. Food 12 8,417 12,505 2,446 23,380 91.58% outcomes of the research projects the 65 research projects completed in 2019-20. it funds. During 2019-20, 65 final 5. Energy 0 287 31 0 319 1.25% reports or project summaries
6. Resources 0 45 0 0 45 0.18% were delivered.
7. Advanced manufacturing 0 0 906 0 906 3.55%
8. Environmental Change 60 606 0 0 666 2.61%
9. Health 0 195 0 0 195 0.77%
Unspecified* 0 7 9 2 17 0.07% Figure 9 Research project Total 72 9,558 13,451 2,448 25,529 100.00% communication outputs (in addition to reports and factsheets) 133 Rural Research and Development Priorities 399 Expenditure for 2019-20 Arena 1 Arena 2 Arena 3 Arena 4 Total Total ($’000) ($’000) ($’000) ($’000) ($’000) (%)
1. Advanced Technology 10 3,848 2,664 2,438 8,960 35.10% No. of projects
2. Biosecurity 0 4,953 441 8 5,403 21.16%
3. Soil, water and managing natural resources 0 638 1,078 0 1,716 6.72% 57
4. Adoption of R&D 62 112 9,259 0 9,433 36.95% Presentations
Unspecified* 0 7 9 2 17 0.07% Scientific journal articles Industry newsletter articles
Total 72 9,558 13,451 2,448 25,529 100.00%
*Unspecified includes ancillary expenses incurred in the completion of research projects *This data has been collected from AgriFutures Australia Clarity system. Section 3 164 Annual Report 2019-20 165
People and Governance
AgriFutures Australia Board
Mrs Kay Hull AM (Chair) Mr Ian Henderson (Deputy Chair) Mr John Harvey (Managing Director) Dr Kathryn Andrews
Mrs Kay Hull is a Riverina personality, award-winning Mr Ian Henderson is the founder, CEO and principal vinegar Mr John Harvey joined AgriFutures Australia in May 2016 Dr Kathryn Andrews has a diverse professional businesswoman, much lauded community leader and maker at Australian Vinegar and has a desire to help as Managing Director. He accepted the challenge to set a background which spans Natural Resource Management former Federal Member of Parliament, representing the new and emerging industries evolve into self-sustaining, new, more commercial direction for AgriFutures Australia (NRM), stakeholder engagement and research into policy Riverina for 12 years. productive and profitable industries. and aims to make it a change agent for transforming and practice. existing industries with new technologies and seeding new, She has led, contributed to and been influential in a broad With degrees in Mathematics and Physics, in addition high value industries that ensure Australian agriculture Her experience in rural industries is personal and range of sectors in the community – from motor vehicles to Winegrowing, Mr Henderson has had a varied career. continues to grow. professional. When she was young, Dr Andrews’ father trades and services to local council, tourism, education, Initially specialising in IT management, data security, data developed the first export standard buffalo abattoir in health, cancer support, and alcohol and drugs initiatives, matching and fraud detection in the public service, he made Prior to this appointment, Mr Harvey held various positions the Northern Territory. Her family was also involved in tea and currently serves on the NSW Skills Board, Australian the move to wine production and focussed on domestic at the Grains Research and Development Corporation tree production. National Advisory Council on Alcohol and Drugs, and the and export sales, which led to an opportunity to become a (GRDC) spanning 18 years, including five years as Managing Telegraph Rural Advisory Panel, amongst others. vinegar maker. Director. Dr Andrews has held a variety of roles across Australia, many focusing on NRM. She is currently the Executive Having grown up in regional Australia, Mrs Hull has a A career highlight was receiving a prestigious Winston A graduate member of the Australian Institute of Company Officer for NRM Regions Australia, a consultant passion for food and fibre production, and during her time Churchill Fellowship in 2006 to study vinegar making in Directors, Mr Harvey was a Director of Australian Crop and a visiting lecturer at the ANU Fenner School for in parliament ensured the agriculture sector had a strong Europe. This allowed him to understand the possibilities in Accreditation System Limited and a Director of the Value Environment and Society a fellow at the College of voice particularly in relation to water access for irrigation. emerging industries, and how regulation and industry unity Added Wheat Cooperative Research Centre. Indigenous Futures, Arts and Society at Charles Darwin Today she continues her staunch support of regional is essential to success. University, and a member of the Future Drought Fund Australia’s agricultural sector as Chair of the AgriFutures He has served on the boards of Pulse Breeding Australia, Consultative Committee. Australia Board. Mr Henderson is also an Audit Committee member for Barley Breeding Australia and the National Soybean Granite Belt Water Inc. Breeding Program. He was also a member of the Australian Prior to this, she worked to establish the Lake Eyre Taking on the role in 2016, Mrs Hull believes AgriFutures Winter Cereals Pre-Breeding Alliance and the CRC for Plant Basin Coordinating Group (Australia’s only community Australia is uniquely positioned to lead the way for Mr Henderson is excited about the future for AgriFutures Based Management of Dryland Salinity. designed and managed cross-border NRM organisation), Australian agriculture and deliver benefits to the entire Australia and wants to unite the various rural industries to and became its first CEO. She was also Chair of Territory nation by investing in people, forging new frontiers build a community that shares research outcomes, inspires BSc (Rural) Hons (UNE), GAICD. Natural Resource Management while based in Darwin of learning, fostering an environment that prizes one another and adds value to each other through collective and has participated in national committees including Appointed on 03/05/16 collaboration, entrepreneurship and real commercial investment in R&D. the Australian Landcare Council and CSIRO Sustainable outcomes, and investing in new and emerging industries to Agriculture Flagship Advisory Committee. B.Sc. Mathematics, Physics (Griffith), Assoc. Degree ensure the productive and competitive future of Australia’s Winegrowing (CSU), GAICD, Professional Member Australian rural industries. BSc Hons (ANU), PhD (ANU). Institute of Food Science and Technology. Appointed on 02/08/16 Appointed on 01/10/17 Appointed on 01/10/17 until 01/08/19 until 30/09/20 until 30/09/20 Extended for a second term until 2022 Section 3 166 Annual Report 2019-20 167
Mr Richard Clark Dr Anthony Hamilton Dr William Ryan
Mr Richard Clark is an information and communications Dr Anthony Hamilton was a farmer from Forbes, NSW, Dr William Ryan has worked professionally in agriculture technology (ICT) leader who has spent his career building and is currently a non executive director of a diversified for more than 40 years with a varied career in research and bridges between industry, research and application. cropping and livestock business. commercial agribusiness
He has had a diverse career in Australia and abroad, A farmer all his life, Dr Hamilton has a passionate interest He describes successfully implementing early weaning on working with high profile ICT companies including Nokia/ in all things rural and sees the importance of holistic farms extensive cattle stations in northern Australia as one of his Alcatel-Lucent, NICTA, Ericsson and Philips, in senior and the pursuit of opportunities for new rural industries. proudest moments. The program significantly increased manufacturing, strategy, R&D, business development, CTO branding rates and also illustrated to him the tremendous and CMO roles. Dr Hamilton has been involved in AgriFutures Australia impact that both research and development can have in a for a number of years, having started with the New Plant commercial cattle production system. Mr Clark has had extensive experience across the Products Committee off the back of his experience growing Australian science, technology and innovation sector, new crops such as jojoba and azuki beans. Dr Hamilton is Dr Ryan joined the Board in 2014 with a professional contributing to ICT public policy, R&D investment incentives, also a member of the GRDC Northern Panel. record that includes revitalising and leading Kondinin, ICT start-ups and university syllabus. one of Australia’s largest independent research groups. He also gained his PhD researching the agronomy and He is currently Chair of the Agricultural Produce He has a strong belief that strategy is only as good as physiology of azuki and kintoki beans. Commission of Western Australia, a director at the its implementation and that ICT is an enabler across all Mt Burdett Foundation Pty Ltd, as well as being an BSc in Agriculture Hons; PhD (USyd) industries. independent agricultural consultant. Appointed on 11/10/14 Bachelor of Production Engineering (Swinburne University); BSc in Agriculture (UWA); PhD (UWA) GAICD Centenary Medal for contributions to ICT R&D policy; until 30/09/17 Member of the Australian Institute of Company Directors. Appointed on 11/10/14 Reappointed on 01/10/17 until 30/09/17 Appointed on 01/10/17 until 30/09/20 until 30/09/20 Reappointed on 01/10/17 until 30/09/20
Rural Industries Research & Development Corporation Mrs Kay Hull AM (Chair) Mr Ian Henderson Mr John Harvey (Deputy Chair) Dr Anthony Hamilton (Managing Director) Mr Richard Clark
Dr William Ryan Dr Kathryn Andrews Section 3 170 Annual Report 2019-20 171 Organisation structure – as of 30 June 2020
Board of Directors AgriFutures Australia staff
Executive Coordinator Managing Director Amy Glanville John Harvey
General Manager, General Manager, General Manager, General Manager, Communications & Corporate Business Development Research Capacity Building Louise Heaslip Michael Beer John Smith AgriFutures Australia is a government agency, Belinda Allitt with 20 staff as at 30 June 2020 and an annual Senior Manager, Senior Manager, Senior Manager, Manager, Senior Manager, Business Development Research (small Corporate Communications evokeAG. operating budget of around $46.90 million. National Rural Issues Industries) David Heazlewood Georgie Davies Pip Grant Jen Medway Dr Mila Bristow
Manager, Senior Manager, Manager, Research Manager, Human Resources Business Development Thoroughbred Horses, Communications Project Lead, growAG. Corporate Emerging Industries Honey Bees & & Capacity Building Debbie van der Rijt (PT) AgriFutures Australia endeavours to create Performance reviews are formally conducted Ericka Burgun (C) (PT) Tom McCue Pasture Seeds Georgie Macneil (C) opportunities so that it attracts and retains skilled every six months, with an annual performance Annelies McGaw and experienced staff. assessment in June. Manager, Coordinator, Business Manager, Corporate Manager, evokeAG. Corporate Development Manager, Research Communications Dallas Pearce AgriFutures Australia staff are employed under Indigenous employment at AgriFutures Australia Nicole Legovich Kirsty McKee (C) Chicken Meat Jo Mazzocchi (C) Section 87 of the PIRD Act 1989. This legislation Georgie Townsend For the period 1 July 2019 to June 2020, AgriFutures requires AgriFutures Australia to determine Manager, Executive Services, Manager, Partnerships Australia did not employ any Indigenous staff. Legal Services Business Development & appropriate terms and conditions of employment for Manager, Research Capacity Building Manager, evokeAG. Corporate Research Coordinator its staff. AgriFutures Australia’s Enterprise Agreement Chicken Meat Brooke Croft (C) Steve Honner (C) Erin Hulm (C) (PT) Laura Harley (C) 2018–21 sets out the terms and conditions of Dr Sue Hatcher (PT) employment. Executive staff (including the Managing Accountant, Coordinator, Coordinator, Manager, Export Director) are employed on individual contracts. Corporate Emerging Industries Capacity Building Fodder, Ginger & Rice Erin Kean (C) Bek Farrugia (C) Petri Swart (C) AgriFutures Australia is committed to a credible, Lucinda Staley (C) equitable and aligned performance management system. Manager, Business Coordinator, Development Manager, Research Corporate AgriFutures Australia’s performance management Communications Tea Tree Oil Kristy Middlebrook (C) system includes a formal process and an ongoing Samantha Munro (PT) Gae Plunkett (C) (PT) informal process that encourages staff to plan, review and recognise performance. Performance agreements Executive Service, Coordinator, are agreed annually between staff and their Corporate Coordinator Research Jessica Grant (C) Laura Skipworth (C) supervisors and include a comprehensive training and development component. Systems Coordinator, Coordinator, Corporate Research Gerard McTaggart (C) Annie Lane (C) (PT)
Manager, Communications Levied Industries Lauren Sharkey
Coordinator, Communications Emma Hand (C)
Coordinator, Research Tasmin Rowe (C)
C= Contractor PT= Part Time Coordinator, * As of 30 June, 2020 Research Holli Hope-Jones (C) Section 3 172 Annual Report 2019-20 173
Governance and accountability
Governance Board appointments Maintaining ethical standards Audit Committee The AgriFutures Australia Board is committed to The Minister for Agriculture appoints Directors All members of the Board agree to be bound by the The Audit Committee from 1 July 2019 to 30 June governance systems that enhance performance and other than the Managing Director, who is appointed principles contained in the Board Code of Conduct. The 2020 comprised: compliance. Each Annual Report includes a description of by the Board. Board Code of Conduct is provided to all Directors as part how strategic directions, policies and processes have been of the induction process and provides guidance on their Chair: Dr William Ryan applied during the year. During the year, the Board reviewed The Chair is appointed by the Minister and is not a responsibilities, including how to act ethically, honestly, Members: Mr Richard Clark, Mr Ian Henderson policies and processes concerning all major areas of Board nominated Director. and with due care and diligence. Ethical standards at operations, including Director and Board performance, risk AgriFutures Australia are upheld with its values in mind: Five of the Directors are nominated by a selection Audit Committee charter management, conflicts of interest, Board subcommittees, connectedness, networking, innovation, approachability, committee established by the Minister in consultation and the Managing Director’s performance. AgriFutures positive, professionalism, confidence and future-thinking. The objective of the Audit Committee is to provide with the National Farmers’ Federation and the Australia’s management policies and procedures will independent assurance and assistance, and to Australian Chicken Meat Federation (nominated continue to be refined and updated as standard practice make appropriate recommendations to the Board on Directors). within the organisation. AgriFutures Australia’s risk, control and compliance Directors’ reports The Minister appoints a nominated Director as the framework and its external accountability. The Board provides strong leadership and requires that Deputy Chair. AgriFutures Australia’s staff have their qualifications, Accountability to industry The Managing Director and the General Manager, Corporate, have a standing invitation to attend these skills and experience enhanced with formal and on-the- The Board appoints the Managing Director and may For the purposes of reporting on operations in 2019-20, meetings but are not members of the Committee. job training each year. An Audit Committee and other appoint an Acting Managing Director. AgriFutures Australia had two organisations prescribed committees of the Board are established from time to time by Section 7 of the Primary Industries Research During 2019-20, the Audit Committee had oversight to support the Board. Appropriate advisory panels with and Development Act 1989 (PIRD Act). This requires of the completion of the statutory financial relevant skills to AgriFutures Australia research programs AgriFutures Australia to report annually on its activities statements and annual compliance statement, are established to ensure that projects are properly guided, Board terms each financial period. This accountability runs parallel reviewed the Fraud Control and Risk Management and that industry and government funds are spent wisely. Directors other than the Managing Director are to AgriFutures Australia’s Annual Report to the Minister plans, reviewed the Accountable Authority appointed by the Minister and hold office for a and the Parliament. Separately, it is relevant to note that Instructions, the Conflict of Interest Policy, and specified term not exceeding three years. The the deer, honey bee and rice industries are nominated as the Audit Committee Charter, directed the internal Board charter Managing Director is appointed by AgriFutures representative bodies for the Primary Industry (Excise) audit function, and monitored the development Australia for a specified term. An Acting Managing Levies Act 1999. and implementation of new business systems and The AgriFutures Australia Board Charter sets out the Director may be appointed for a specified term. policies. function, duties and responsibilities of the Board in order Formal reporting occurred as follows: to facilitate Board and management accountability for • National Farmers’ Federation Date of Audit Committee Meetings 2019 – 2020 AgriFutures Australia’s performance and strategic direction. • Canberra ACT: 9 September 2019 Board expertise • Australian Chicken Meat Federation The Board is committed to fulfilling its duties, abiding by • Wagga Wagga NSW: 22 November 2019 all relevant laws and regulations and providing employees The Directors are selected from a wide cross- AgriFutures Australia reported to these prescribed bodies section of the rural business community and offer with a safe and rewarding working environment. The Board during industry meetings being held for their own purposes. • Melbourne VIC: 20 February 2020 considers the broader community, external and internal expertise in production, processing, marketing, AgriFutures Australia made no payments towards the costs stakeholders, and industry partners in its deliberations. R&D administration, business management, social of these meetings. • Teleconference: 21 May 2020 sciences, technology transfer, environmental and ecological matters. Board committees Board composition During 2019-20, the Board operated one committee, the Audit Committee. The record of meetings is taken by As at 30 June 2020, AgriFutures Australia’s Board the Executive Services Coordinator or General Manager, comprised seven Directors: a Chairperson, an Executive Corporate Director (titled Managing Director) and five other nominated Directors. One of the nominated Directors is the Deputy Chair. Section 3 174 Annual Report 2019-20 175
Performance review Board meetings Inductions and continuing education Act, conduct the affairs of AgriFutures Australia, subject to the following Managing Director limitations where Board The Board is committed to continuous improvement and During 2019-20, the Board held four meetings: of Directors approval is required: undertakes an evaluation of the Board’s performance During the year, Directors participated in various industry and other Board responsibilities in each Board term, in • Canberra ACT: 10 and 11 September 2019 • Approval of the Strategic R&D Plan, Annual Operational conferences and workshops to further their knowledge of accordance with the Board Performance Policy. Plan and Budget, and Capital Budget • Wagga Wagga NSW: 4 and 5 December 2019 stakeholder issues and emerging sector issues. The Board • Approval of all notifications to the Minister as required also develops an annual program of briefings for Directors The last evaluation process was completed in June 2019. under section 15 & 16 of the Public Governance, • Wagga Wagga NSW: 11 and 12 March 2020 that are usually held in tandem with a Board meeting. Performance and Accountability Act 2013 (PGPA Act) The performance review for the Managing Director is Individual Directors may also participate in professional conducted annually by the Board in accordance with the • Teleconference: 3 and 4 June 2020 development programs with the Australian Institute of • Purchases of capital items in excess of the total Managing Director Performance Management Policy. Company Directors and other entities as required. budget limit • Write-off of non-recoverable debts above $50,000 for any given financial year Board/Audit Committee remuneration Independent professional advice • Agreements that commit AgriFutures Australia to arrangements with other organisations/people in The remuneration for the 2019-20 financial year is as follows: Board members may seek independent professional advice the nature of joint ventures, partnerships, being at AgriFutures Australia’s expense as considered necessary an essential participant in a CRC, shareholdings in Chairperson = $60,980 to discharge their duties and responsibilities. Directors corporations or joining in the formation of a company Director = $36,590 must obtain the approval of the Chair (which may not be • Any contract where the total AgriFutures Australia Audit Committee Chair = $9,880 unreasonably withheld) and the advice received made commitment exceeds $650,000 other than a variation Audit Committee Member = $4,940 available to all Board members as appropriate. to a Board-approved contract where the variation is less than 20 per cent of the approved commitment and the variation does not materially affect expected contract Table 9 Potential conflict of interest outputs AgriFutures Australia Board Director attendance for 2019-20 • The commitment of AgriFutures Australia through The Board manages the potential for conflict of interest for contractual obligation for the commercial use of, or Board meetings Audit meetings Directors and senior management by an annual declaration exploitation of, its intellectual property of potential conflicts and by a standing agenda item at • Material changes in accounting policy within the control each Board meeting that requires Directors who may have Meetings held Meetings Meetings held Meetings Meetings of AgriFutures Australia and consistent with Finance a conflict of interest in any matter to discuss it at that attended attended attended as Minister’s orders meeting. Where a material potential conflict is identified, observer the Director leaves the meeting during discussion of • Approval of the Conflict of Interest Policy the matter. Potential conflicts are recorded in the Board • Media releases that comment or provide an opinion on K. Andrews 4 4 - - - minutes and are available for consideration by AgriFutures AgriFutures Australia as an organisation Australia’s auditors. R.Clark 4 4 4 4 - • Any other limitations notified in writing to the Managing Director by the Board. Members of the Audit Committee also provide an annual A.Hamilton 4 4 - - - written declaration to the Board stating they do not have All AgriFutures Australia staff are bound by its Financial any conflicts of interest that would preclude them from Policy and Procedures and related Accountable Authority J.Harvey 4 4 - - 3 being members of the Committee. Instructions. The Accountable Authority Instructions detail powers I.Henderson 4 4 4 4 - delegated to AgriFutures Australia staff under sections 90 and 91 of the PIRD Act 1989. The instrument limits financial K.Hull AM 4 4 - - 1 Related entity transactions authority as follows: The decision-making process for AgriFutures W.Ryan 4 4 4 4 - Australia’s financial transactions, including related • The financial liability into which AgriFutures Australia is entity transactions, is guided by AgriFutures Australia’s entering must be consistent with strategic, operational Accountable Authority Instructions and Financial Policy and capital plans and Procedures. • The limits designated by approved budgets for which delegates are responsible (for example, program/ cost The Board and the Managing Director have powers centre budget, etc.). conferred on them by the PIRD Act. AgriFutures Australia’s Conflict of Interest Policy applies The Board has determined that the Managing Director to all staff. shall, in accordance with the Accountable Authority Instructions and pursuant to Section 76(2) of the PIRD Section 3 176 Annual Report 2019-20 177
Agreements to conduct research • It is satisfied that exceptional circumstances exist Purchasing procedures Risk management that require amendment to the standard form for the organisation • The applicant completes a statement of non- AgriFutures Australia procures goods and services The AgriFutures Australia Risk Management Policy AgriFutures Australia uses a standard form contract for compliance for each of those clauses. ranging from low-value petty cash items to high-value and Framework 2020-21 supersedes the AgriFutures R&D projects (research agreement), which sets out the goods and services that may involve complex tendering and Australia Risk Management Plan 2017-20. AgriFutures terms on which AgriFutures Australia will engage successful Consultancy services and selection contracting processes. Therefore, purchasing procedures Australia’s Risk Management Policy and Framework is will vary according to the value and complexity involved in assessed annually by the Audit Committee and Board applicants to carry out the project. The research agreement of suppliers has been developed to reflect AgriFutures Australia’s each particular purchase. AgriFutures Australia expects to ensure all risks are reviewed where there have been statutory and other responsibilities in funding projects. The consultancies used by AgriFutures Australia during its staff to adopt a simple, straightforward approach to the changes in internal or external operating environments AgriFutures Australia will generally not negotiate substantive 2019-20, the nature of their work, and the cost of their purchase of low-value goods and services and use more and to consider any emerging risks. The control framework amendments to any clauses of the agreement unless: services are listed in Table 10. complex methods to manage the risks involved in major comprises a risk assessment methodology to identify purchases. risks to the organisation with relevant mitigant strategies. Management also reports to each Board and Audit Table 10 The following principles are applied for all transactions: Committee meeting on the status and progress of the Initiated in 2019-20 management of any key risks. Name of consultancy Nature of consultancy Cost of services ($) or ongoing • Expenditure is to be appropriate for the purpose (AgriFutures Australia funds must be used solely In 2019-20, AgriFutures Australia conducted a series of risk Banki Haddock Fiora Legal Services $49,248.46 Ongoing for the purposes of AgriFutures Australia, in line workshops with a specialist risk management consultant with the AOP) Australian Government Solicitor Legal Services $991.00 Ongoing to identify and review major strategic and operational risks to the organisation. The review of these risks is a constantly • Purchases should represent value for money HWL Ebsworth Legal Services $28,032.68 Ongoing ongoing process to ensure risk identification management Hulm Lawyers Pty Ltd Legal Services $16,665.64 Ongoing • Procurement processes should be conducted in an and mitigation remains current and relevant to AgriFutures efficient, effective and ethical manner. They should be Australia and its stakeholders. King & Wood Mallesons Legal Services $163,060.37 Initiated in 2019-20 transparent and publicly defensible The Audit Committee oversees preparation and Rob McInnes IP Advisory Pty Ltd Legal Services $3,000.00 Ongoing • Staff must not improperly use their position to gain implementation of AgriFutures Australia’s risk Betzner Consulting Pty Ltd Project Work $72,006.32 Ongoing an advantage for themselves or someone else. Staff management initiatives. Rob McInnes IP Advisory Pty Ltd Project Work $4,000.00 Ongoing must declare any real or perceived conflict of interest
Rural Analytics Pty Ltd Project Work $34,100.00 Ongoing • Procurement should be conducted in accordance with Fraud control Purple Pyjamas Project Work $1,750.00 Ongoing the procedures outlined in the AgriFutures Australia’s Procurement Procedure, with particular attention AgriFutures Australia’s Fraud Control Plan is approved by Forest Hill Consulting Project Work $44,520.00 Ongoing paid to the requirements associated with various the Audit Committee and Board. Australian Business Class Project Work $6,300.00 Ongoing procurement thresholds and methods. The Managing Director is satisfied that: The Strategic Directions Group Pty Ltd Project Work $254,517.76 Initiated in 2019-20 • A fraud risk assessment and fraud control plan Computers Now Pty Ltd Project Work $710.00 Initiated in 2019-20 Indemnities and insurances have been prepared in compliance with the SJS Consulting Partners Pty Ltd Project Work $29,400.00 Initiated in 2019-20 Commonwealth’s Fraud Control Guidelines as set out for Directors and officers in AgriFutures Australia’s Fraud Control Plan 2018–20 The Trustee for Countryside Farming Trust Project Work $2,186.25 Initiated in 2019-20 Since February 1999, AgriFutures Australia has been a • Appropriate fraud prevention, detection, investigation Andrew Barr Consulting Pty Ltd Project Work $1,603.36 Initiated in 2019-20 member of Comcover, the Australian Government’s self- and reporting procedures and processes are in place Miracle Dog Pty Ltd Project Work $4,800.00 Initiated in 2019-20 managed fund for insurance cover. The insurance covers as specified in AgriFutures Australia’s Fraud Control The Trustee for CMA Trading Trust Project Work $17,250.00 Initiated in 2019-20 Directors and officers against various liabilities they may Plan 2018–20 incur in their capacity as officers of AgriFutures Australia. Honey & Fox Pty Ltd Project Work $1,935.00 Initiated in 2019-20 • One incident of attempted fraud was reported The Comcover insurance contract prohibits disclosure in 2019-20. Department of Primary Industries and Regions Project Work $5,410.00 Initiated in 2019-20 of the nature and limit of the liabilities covered and the Accordingly, the Board is satisfied that AgriFutures Terri Janke and Company Pty Ltd Project Work $1,982.00 Initiated in 2019-20 amount of AgriFutures Australia’s membership premium. Australia’s fraud control policies, procedures and initiatives No insurance claims were made during 2019-20. During Paul Donnelly Project Work $1,047.75 Initiated in 2019-20 are in accordance with the Commonwealth’s Fraud Control August 2018, the Board executed an Access and Indemnity Guidelines. Ernst & Young Project Work $82,864.80 Initiated in 2019-20 Deed. The Deed enables new Directors as they are The Audit Committee oversees preparation and appointed and designated senior officers to be indemnified R L and R M Ford Project Work $5,100.00 Initiated in 2019-20 implementation of AgriFutures Australia’s Fraud Control from liabilities they may incur as Directors and officers of Policy. Focus Insights Pty Ltd Project Work $4,920.00 Initiated in 2019-20 AgriFutures Australia, as permitted by the PGPA Act. Crafted Solutions Pty Ltd Project Work $27,520.00 Initiated in 2019-20 Callida Pty Ltd Project Work $5,147.50 Initiated in 2019-20 The Trustee for Birdandco Practice Trust Project Work $15,000.00 Initiated in 2019-20 Section 3 178 Annual Report 2019-20 179
AgriFutures Australia actions under the Work Health and Safety Act 2011
Table 11
Ministerial reporting Accountability Act requirement AgriFutures Australia action The Australian Government is a key stakeholder. Compliance with general policies of government It provides the legislative framework under which Details of work health and safety • AgriFutures Australia’s Work Health and Safety Policy was updated to meet AgriFutures Australia is not required to comply with the AgriFutures Australia operates, a core appropriation arrangements the requirements of the Work Health and Safety Act 2011 Commonwealth Procurement Rules 2014. However, the through the Department of Agriculture and matching AgriFutures Australia Procurement Policy aligns with the • Staff were consulted and the Policy was circulated and published on the Commonwealth funds to those AgriFutures Australia Commonwealth Procurement Guidelines where practicable. industries with a statutory levy. intranet
In addition to the specific linkages of Board appointments Compliance with legislative requirements • Related policies were also reviewed and updated. and corporate documentation such as the Corporate Plan, the Annual Operational Plan and this Annual Report, Public Governance, Performance AgriFutures Australia also writes to the responsible and Accountability Act 2013 Initiatives undertaken during the • Work health and safety is a standing item on the meeting agendas of Minister outlining the key outcomes of Board meetings. AgriFutures Australia has no instance of non-compliance year to ensure the health, safety and the Workplace Consultative Committee (WCC), staff meetings, executive with the Public Governance, Performance and welfare at work of employees and meetings, and Audit Committee and Board meetings contractors Accountability Act 2013 for the period 2019-20. • Policy awareness sessions were conducted on all reviewed and updated Ministerial directions work health and safety policies Work Health and Safety Act 2011 Under Section 143 of the PIRD Act, the Minister may Part 14, Schedule 2, Part 4 Other Persons • Managers were briefed on their roles and responsibilities under the give written directions to AgriFutures Australia as to the legislation performance of its functions and the exercise of its powers. Table 11 summarises the requirements under the Work No such directions were given in 2019-20. Health and Safety Act 2011 and the AgriFutures Australia’s • New staff undertook workplace assessments to ensure that any reasonable related actions. workplace adjustments were made (ergonomic equipment, furniture, etc. Under Section 22 of the PGPA Act, the Minister may give was provided as required) written directions to AgriFutures Australia regarding The Environment Protection complying with the general policies of the Government. No • The annual influenza vaccination program was offered to all staff during and Biodiversity Conservation Act 1999 such directions were given in 2019-20. 2019-20, and occurs each year AgriFutures Australia is required to report against two criteria. The first is how AgriFutures Australia’s activities • First aid officers and have been appointed and are appropriately trained accord with and contribute to ecologically sustainable Judicial decisions • Work health and safety information is displayed prominently in the development (see Table 12). The second is to report on workplace. No judicial decisions were recorded for 2019-20. AgriFutures Australia’s environmental performance, and measures being taken to mitigate the impact activities have on the natural environment. Health and safety outcomes (including Health and safety outcomes remain comparable to previous years. Significant events the impact on injury rates of employees and contractors achieved as a result of On 18 and 19 February 2020, AgriFutures Australia hosted initiatives mentioned above) evokeAG., the Asia Pacific region’s largest agrifood tech event at the Royal Exhibition Building, Melbourne.
On 11 September 2019, AgriFutures Australia hosted the Statistics of any accidents or Nil AgriFutures Rural Women’s Award Gala at Parliament dangerous occurrences during the year House, Canberra. arising out of conduct or undertakings by AgriFutures Australia that required On 10 June 2020, AgriFutures Australia hosted the Levied the giving of notice Industries “Virtual” Forum, a great success in the COVID-19 era of video communication with stakeholders. Details of any investigations Nil conducted during the year that relate to undertakings carried on by the employer, including details of all notices given to the employee Section 3 180 Annual Report 2019-20 181
The effect of AgriFutures Australia’s actions on the environment
Table 12
Program Environmental issue Outcomes Program Environmental issue Outcomes
Rice The AgriFutures Rice Program Further advancement towards the development of cold- tol- Tea Tree Oil Integrated Weed management Increased effectiveness of herbicide use and greater uptake of continues to fund the Rice Breeding erant rice varieties has continued and new research into heat non-chemical control methods, including less risk of off-target project that has a goal to develop rice tolerance for adaption to northern Australia opens opportunity pollution (e.g. water ways), and lower negative impacts on varieties with enhanced adaptation, to grow rice under a variety of climatic zones. beneficial organisms which may contribute to pest and disease e.g. improved cold tolerance, salinity bio-control. tolerance, drought tolerance and Improved temperature tolerance, remote crop sensing and water productivity, to cope with an precision farming will lead to greater potential for reducing irri- evolving production environment gated water use, managing seasonal variation and crop inputs. Ginger Improving ginger to future Introducing genetic diversity to the edible Australian ginger proof the industry against pest markets will help the industry cope with increasing pest and and disease disease pressure, and changes to growing conditions, which will Chicken Meat National environmental guidelines Development of nationally consistent guidelines for planning and likely increase due to various forces including climate change. for chicken meat farms development of chicken meat farms. National guidelines for mod- This study has set the groundwork needed to achieve the goal elling odour and dust impacts will be incorporated into a frame- of increasing the genetic diversity, improving pest and disease work for environmental management of meat chicken farms. resistance and reducing the impact of pests and diseases using biocontrols, for the Australian ginger industry. Industry best practice for litter Research into litter management, litter re-use, risk assessment of alternative litter sources, odour emissions and in-shed air Emerging Sustainable Use of Australia’s Australian Native Oils develop a seed bank and herbarium quality together with a review of current and potential barriers Industries Biodiversity reference collection for retention of key varieties of Australian to reuse of chicken litter will be compiled into a best practice essential oil bearing plants. manual for chicken meat growers.
The impact of nutritional strategies, such as reduced crude Accelerating Wattle Seed production for the Australian Native protein diets, on litter quality highlights the interaction between Food Industry. nutrition and the environment and the need to take a whole system approach to chicken meat production. Responding to climate change and National Agronomy Sesame Trials. Food Security Industry best practice for A review of water sanitisation treatments, water treatment addi- water quality management and tives and on-farm water distribution system quality management sterilisation practices has been documented into a manual for industry. Industrial Hemp, developing new efficient hemp varieties for Australia and alternate feed sources for drought. Environmental credentials of Quantification of environmental impacts from chicken meat pro- chicken meat production duction will provide a current industry benchmark and demon- Dates, understanding date pollination responses to the strate changes that have occurred over the past 10 years. This environment. research will provide carbon mitigation options for the industry and a pathway for development of carbon neutral products. Better use of water Hazelnuts, assessing different irrigation approaches.
Optimising free range conditions Development of resilient plants, that persist on the range and provide adequate shelter for free range birds to optimise Environmental Planning Coffee, creating a plan for a compelling industry-wide ranging behaviour and enhance both welfare and production. environmental sustainability system.
Pasture Seeds Soil erosion and compaction Research has been initiated into developing new and novel Weed Management Plantago, de-risking, commercial validation & value impacts of subterranean clover methods of subterranean clover harvesting to address impacts maximisation of Plantago in the Ord River Irrigation Area. harvesting around soil erosion associated with the current method of vacuum harvesting machinery, and soil compaction associated Best practice Lavender, developing new knowledge and agronomic practices with paddock preparation prior to harvesting. This research will to enable diversification and new knowledge for growers on the result in machinery modifications that will reduce soil erosion conditions to grow lavender. and soil compaction as a result of harvesting. Section 3 182 Annual Report 2019-20 183
Measures being taken to minimise the impact Freedom of Information AgriFutures Australia documents may be imposed for processing requests (except where applicants are seeking documents containing their own of actions by AgriFutures Australia on the The broad objective of the Freedom of Information Act 1982 AgriFutures Australia publishes or holds corporate personal information). Should the FOI request incur any environment (FOI Act) is to give the Australian community access to documents such as the Annual Report, Corporate Plan and charges, applicants will be provided with an estimate of information held by the Commonwealth Government. Annual Operational Plan. These are free while stocks are the applicable charges. Requests will not proceed until AgriFutures Australia continued initiatives to minimise the available. applicants provide a response to the estimate. AgriFutures impact of its actions on the environment by: Reforms to the FOI Act, which came into effect on 1 May Australia may decide to remit, reduce or not impose 2011, are aimed at promoting a pro-disclosure culture They are also available for free download from AgriFutures • Continued electronic distribution of Board and Audit processing charges under certain circumstances. across government and building a stronger foundation Australia’s website at agrifutures.com.au. Committee papers for greater openness and transparency in government AgriFutures Australia’s extensive research library is • Continued electronic distribution of Advisory Panel operations. AgriFutures Australia is committed to a available for viewing, free downloading or purchasing meeting papers proactive approach to publishing information that it holds Review rights for the benefit of the rural and rural research communities from its print-on-demand portal at agrifutures.com.au/ Following receipt of the decision on access, applicants are • Availability of electronic versions of a majority of and the broader Australian public. publications-resources/publications/ internal policies, forms and administrative documents entitled to seek an internal review of the decision by writing This information is accessible through AgriFutures Purchases can also be made by phoning 1300 634 313 for to the FOI Coordinator within 30 days of being notified of • Encouraging teleconferencing whenever possible Australia’s website at agrifutures.com.au. the cost of a local call. the decision.
• Developing a risk assessment framework for project AgriFutures Australia operates under the direction of a Alternatively, applicants may write to the Office of the proposals to reduce the risk of funding plants and Board of Directors. Its headquarters are in Wagga Wagga, Australian Information Commissioner (OAIC) seeking a animals that may become invasive. NSW and contact details are: Accessing information review of AgriFutures Australia’s decision. This can be done as a result of either the initial decision or the internal Formal requests for information under the FOI Act must AgriFutures Australia continued to promote the use of Freedom of information review decision. print-on-demand services for its publications by: AgriFutures Australia be made in writing to: The FOI Coordinator AgriFutures Building 007 Australia at the appropriate postal address. Subsequent review options after internal review and OAIC • Electronically distributing corporate documents to review are also available. The complete process for seeking Tooma Way In many cases, an application under the FOI Act may clients and stakeholders a review on access is provided in the decision letter sent to Charles Sturt University not be required as information or documents may be applicants at the completion of the request. • Encouraging the use of electronic files in place of Wagga Wagga NSW 2650 readily available. An up-to-date listing of projects funded hardcopy items, e.g. the Annual Operational Plan and Postal address: by AgriFutures Australia is detailed on the AgriFutures other corporate documents c/o Charles Sturt University Australia website. Funding information on individual projects is available on request. Further information • Encouraging distribution of electronic research Locked Bag 588 Wagga Wagga NSW 2678 reports for stakeholders rather than printing hard The FOI Coordinator can be contacted to discuss any copies. agrifutures.com.au prospective request to the organisation. Since 1 May 2011, Processing of FOI requests agencies have been required to provide public access to documents released in accordance with the FOI Act. Upon receipt of a FOI request, AgriFutures Australia will Mechanisms for reviewing and increasing the How to make a request for access to provide an acknowledgement of receipt within 14 days. In Documents released under the FOI Act can be obtained accordance with the FOI Act, a decision must be notified effectiveness of above measures documents under the FOI Act by accessing AgriFutures Australia’s FOI Disclosure Log at to the FOI applicant within 30 days of receipt. However, agrifutures.com.au. • AgriFutures Australia closely monitored its paper Requests made under the FOI Act must: as some documents may be subject to a third-party usage and postage costs during the year to quantify consultation process, the FOI Act provides agencies AgriFutures Australia’s FOI information can be found by the effectiveness of these measures • Be in writing with the right to extend the applicable timeframe by an accessing agrifutures.com.au. additional 30 days. If consultation is required, applicants • More generally, AgriFutures Australia has a regular • State that the request is an application for the will be informed accordingly. program of evaluating the impact of its R&D purposes of the FOI Act investments using a triple bottom line approach, Information Publication Scheme • Provide such information concerning the document assessing economic, environmental and social that will allow AgriFutures Australia to identify it Fees and charges Agencies subject to the FOI Act are required to publish impacts information to the public as part of the Information • Provide detail of how notices provided by AgriFutures • The AgriFutures Australia project application process FOI requests made to AgriFutures Australia on or after Publication Scheme. Australia in relation to the FOI request can be sent to specifically requires an applicant to address the 1 November 2010 no longer require an application fee the applicant. environmental implications of their project in addition to be paid. However, the FOI Act provides that charges to the economic and social impacts. Section – 04 Section 3
Financials
Auditor’s report and Director’s statement 186-188
Statement of Comprehensive Income 189-191
Statement of Financial Position 192-193
Statement of Changes in Equity 194
Cash Flow Statement 195-196
Section 04 Financials Section 4 186 Annual Report 2019-20 187
Auditor’s report and Director’s statement Section 4 188 Annual Report 2019-20 189
Financial and performance statements
Contents Overview
Certification Notes to the financial statements
Primary financial statement 1. Financial Performance 1.1 Expenses Statement of Comprehensive Income 1.2 Own-Source Revenue and Gains Statement of Financial Position Statement of Changes in Equity 2. Financial Position Cash Flow Statement 2.1 Financial Assets 2.2 Non-Financial Assets 2.3 Payables 2.4 Interest Bearing Liabilities 2.5 Other Provisions
3. People and Relationships 3.1 Employee Provisions 3.2 Key Management Personnel Remuneration 3.3 Related Party Disclosures
4. Managing uncertainties 4.1 Contingent Assets and Liabilities 4.2 Financial Instruments 4.3 Fair Value Measurement
5. Other information 5.1 Aggregate assets and liabilities Section 4 190 Annual Report 2019-20 191
STATEMENT OF COMPREHENSIVE INCOME Budget Variances Commentary for the period ended 30 June 2020 Statement of Comprehensive Income The 2019 comparative for Revenue from Government a. $2.3m for new Rural Research and Development and Total Comprehensive Income has been restated. for Profit (RnD4P) and other Grant programs. 2020 2019 Restated Original budget Refer to the Prior Period Error note in the Overview for Notes $’000 $’000 $’000 further information. b. $2.3m in additional industry contributions across NET COST OF SERVICES a number of programs. The original budget is the 2019-20 Budget Statement Expenses (PBS). The surplus of $9.2m is $10m over budget due c. The reclassification of ticket sales and primarily to additional Revenue from Government Employee Benefits 1.1A 3,209 2,966 3,409 sponsorship income relating to the evokeAG and of $1.2m and own-source revenue of $8.1m. Total RWA programs. Income of $1.7m was reclassified Research Projects 1.1B 25,529 21,048 27,416 expenses were $0.7m less than budget. from Other Revenue in the PBS Budget. Suppliers 1.1C 8,737 6,923 7,363 The additional Revenue from Government of $1.2m Depreciation and Amortisation 2.2A 202 105 185 3. Other Revenue was $2.1m under budget is comprised of: primarily due to a reclassification of ticket sales Finance Costs 15 - - and sponsorship income for evokeAG and RWA 1. Additional Commonwealth matching payments of Write-Down and Impairment of Assets 14 6 - programs of $1.7m. $4.6m were received relating to a revised funding Total expenses 37,706 31,048 38,373 calculation methodology under the PIRD Act, for the Total expenses were under budget by $0.7m. current year. 1. Research expense was below the budget Own-Source Income 2. Industry levies were reclassified from Revenue from estimate by $1.9m due to deferral of expenditure Government to Industry Levies. This resulted in a into 2020-21 in some programs which was Own-source revenue reduction in Revenue from Government of $3.5m. partially offset by expenditure on new programs not included in the PBS budget. Industry Levies 1.2A 3,522 5,265 - The additional own-source revenue of $8.1m is Revenue from Contracts with Customers 1.2B 11,079 10,441 4,733 comprised of: 2. Suppliers expense was above budget by $1.4m Interest 448 625 600 due to new capacity building and stakeholder 1. Industry levies were reclassified from Revenue engagement programs developed after the Royalties 1.2C 880 239 338 from Government in the PBS Budget resulting in an PBS budget was published, the engaging of Other Revenue 119 176 2,266 increase of $3.5m. additional contractors when necessary and a Total own-source revenue 16,048 16,746 7,937 2. Revenue from Contracts with Customers was reclassification of expenditure from research $6.3m above budget consisting of: expenditure in the PBS.
Net cost of services 21,658 14,302 30,436 Revenue from Government 1.2D 30,933 23,289 29,737 Surplus/(Deficit) 9,275 8,987 (699)
Total comprehensive income 9,275 8,987 (699)
The above statement should be read in conjunction with the accompanying notes. Section 4 192 Annual Report 2019-20 193
STATEMENT OF FINANCIAL POSITION as at 30 June 2020
2020 2019 Restated Original budget 2020 2019 Restated Original budget Notes $’000 $’000 $’000 Notes $’000 $’000 $’000
ASSETS EQUITY Financial assets Reserves - - - Cash and Cash Equivalents 2.1A 4,806 4,718 2,307 Retained surplus 53,812 47,896 19,896 Trade and Other Receivables 2.1B 8,587 24,971 1,270 Total equity 53,812 47,896 19,896 Investments 2.1C 46,930 20,000 17,000 Total financial assets 60,323 49,689 20,577 The above statement should be read in conjunction with the accompanying notes.
Non-financial assets Budget Variances Commentary Property, Plant and Equipment 2.2A 874 128 100 Statement of Financial Position Computer Software 2.2A 21 45 511 The 2019 comparative for Trade and Other Receivables, Total liabilities of $7.6m were over budget by $6.2m, Prepayments 232 372 150 Total financial assets, Total Assets, Net Assets and Total primarily due to: Total non-financial assets 1,127 545 761 Equity has been restated. Refer to the Prior Period Error 1. An increase in research project accruals of $1.1m Total assets 61,450 50,234 21,338 note in the Overview for further information. with all planned work activities not realised in part Total equity of $53.8m was above budget by $33.9m due to the impact of COVID-19. LIABILITIES due to: 2. An increase in other payables of $4.2m due to Payables 1. A positive operating variance of $10m in 2019-20 timing of income recognition for grants and Suppliers 415 280 388 industry contributions under AASB 15. 2. The receipt of $21.4m to rectify the prior Research Projects 2.3A 1,680 1,351 600 period error and 3. An increase in lease liabilities of $0.7m with the Other Payables 2.3B 4,173 267 - implementation of AASB 16. 3. The opening equity balance in the PBS Budget Total payables 6,268 1,898 988 not being updated to reflect the 2018-19 audited financial statements. Interest bearing liabilities Total Assets of $61.4m were $40.1m over budget Leases 2.4A 734 - - due to: Total interest bearing liabilities 734 - - 1. Cash and cash equivalents were $2.5m over budget due to higher cash levels being maintained Provisions to meet research project milestone payments that Employee Provisions 3.1 556 428 454 were not paid. Other Provisions 2.5 80 12 - 2. Trade and Other Receivables were $7.3m over Total provisions 636 440 454 budget due to the June Commonwealth Matching claim of $6.1m being higher then expected. Total liabilities 7,638 2,338 1,442 Net assets 53,812 47,896 19,896 3. Investments were over budget by $29.9m due to the positive operating variance as reported in the Statement of Comprehensive Income and cash from collection of receivables. Section 4 194 Annual Report 2019-20 195
STATEMENT OF CASH FLOW CHANGES IN EQUITY STATEMENT for the period ended 30 June 2020 for the period ended 30 June 2020
2020 2019 Restated Original budget 2020 2019 Budget $’000 $’000 $’000 Notes $’000 $’000 $’000
RETAINED EARNINGS OPERATING ACTIVITIES Opening balance Cash received Balance carried forward from previous period 47,896 38,909 20,595 Receipts from Government 47,682 18,080 29,737 Adjustment on initial application of AASB 15 (3,372) Industry levies 3,522 5,265 - Adjustment on initial application of AASB 16 13 External contributions 11,918 10,773 - Adjusted opening balance 44,537 38,909 20,595 Sale of goods and rendering of services - 10 - Net GST received 2,038 1,558 - Comprehensive income Interest 419 612 563 Surplus/(Deficit) for the period 9,275 8,987 (699) Other 999 405 9,070 Total comprehensive income 9,275 8,987 (699) Total cash received 66,578 36,703 39,370 Closing balance as at 30 June 53,812 47,896 19,896 Cash used Research projects 27,599 22,614 27,748 TOTAL EQUITY Employees 3,081 2,922 3,339 Opening balance Suppliers 8,668 7,667 7,253 Balance carried forward from previous period 47,896 38,909 20,595 Interest Payment on Lease Liabilities 15 - - Adjustment on initial application of AASB 15 (3,372) Total cash used 39,363 33,203 38,340 Adjustment on initial application of AASB 16 13 Net cash from operating activities 27,215 3,500 1,030 Adjusted opening balance 44,537 38,909 20,595
INVESTING ACTIVITIES Comprehensive income Purchase of property, plant and equipment 88 62 675 Surplus/(deficit) for the period 9,275 8,987 (699) Investments 26,930 3,000 - Other comprehensive income - - - Total cash used 27,018 3,062 675 Total comprehensive income 9,275 8,987 (699) Net cash from (used) by investing activites (27,018) (3,062) (675) Closing balance as at 30 June 53,812 47,896 19,896
The above statement should be read in conjunction with the accompanying notes. FINANCING ACTIVITES Cash used Principal payments of lease liabilities (109) Budget Variances Commentary Retained Earnings Total cash used (109) - - Net cash from/(used) by financing activities (109) - - The 2019 comparative for Balance carried forward The closing equity balance of $53.8m was above from previous period, Surplus/(Deficit) for the period, budget by $33.9m due to the combination of the Total comprehensive income and Closing balance as opening balance variance of $27.3m, the positive Net increase in cash held 88 438 355 at 30 June has been restated. Refer to the Prior Period budget variance on the 2019-20 Statement of Cash and cash equivalents at the beginning 4,718 4,280 1,952 Error note in the Overview for further information. Comprehensive Income of $10m and equity of the reporting period adjustments of ($3.3m) on the initial application of The opening balance of $47.9m was $27.3m above AASB 15, AASB 1058 and AASB 16. Cash and cash equivalents at the end of the 2.1A 4,806 4,718 2,307 budget due to the correction of the prior period error of reporting period $21.4m and because the original opening balance PBS budget equity of $20.6m was not updated to reflect the The above statement should be read in conjunction with the accompanying notes. 2018-19 financial statements closing equity balance. Section 4 196 Annual Report 2019-20 197
Overview
Budget Variances Commentary Objective of Rural Industries Research Cash Flow Statement and Development Corporation Cash received The Rural Industries Research and Development The financial statements have been prepared on an accrual Total cash received of $66.5m was $27.2m over budget Corporation, trading as AgriFutures Australia, basis and in accordance with the historical cost convention, due to additional income received as reported in the (Corporation) is an Australian Government controlled except for certain assets and liabilities at fair value. Except Statement of Comprehensive Income. Industry levies Corporation defined as a corporate commonwealth where stated, no allowance is made for the effect of and external contributions are over budget by $15.4m entity in the Public Governance, Performance changing prices on the results or the financial position. and Other under budget by $8m due to reclassifications and Accountability Act 2013. The objective of the from the PBS. Corporation is to contribute to the productivity and The financial statements are presented in Australian sustainability of Australia through rural innovation by dollars and values are rounded to the nearest thousand dollars unless otherwise specified. Cash used working with industry and government. In doing this we generate the knowledge to help rural industries Total cash used of $66.4m was $27.3m over budget, and communities to capture opportunity and manage primarily due to investment in additional term deposits change. Growing the productivity and sustainability of Correction of a Prior Period Error of $26.9m. rural industries through innovation is a key driver of the prosperity and resilience of rural Australia. In August 2019, the Department of Agriculture, Water and the Environment (“Department”) in consultation with The Corporation is structured to meet a single outcome: Corporation noted that the requirements of the Primary Increased knowledge that fosters sustainable, Industry Research & Development Act 1989 (PIRD Act) had productive and profitable new and existing rural been applied incorrectly in calculating the Commonwealth industries and furthers understanding of national matching funding previously paid by the Department to the rural issues through research and development in Corporation until 2018-19. government-industry partnership. Commonwealth matching funding is calculated under The continued existence of the Corporation in its the PIRD Act and capped at the lessor of 50% of eligible present form and with its present programmes is expenditure (expenditure cap) or 0.5% of industry gross dependent on Government policy and on continuing value of production (GVP cap). Historically, the GVP cap was funding by Parliament for the Corporation’s applied on an industry by industry basis, however the PIRD administration and programs. Act requires the GVP cap to be calculated on an aggregated industry basis.
In addition, based on the external legal advice sought The Basis of Preparation by the Department in the current year, the Department also instructed the Corporation to include appropriation The financial statements are general purpose financial funded programs as eligible research expenditure for statements and are required by section 42 of the Public matching purposes. Governance, Performance and Accountability Act 2013. This change in calculation methodology for The financial statements have been prepared in Commonwealth matching funding meets the definition accordance with: of prior period error as defined in AASB 108 - Accounting Policies, Changes in Accounting Estimates and Errors as a) Public Governance, Performance and it is an error is in the nature of a mathematical mistake Accountability (Financial Reporting) Rule arising from misinterpretations of facts as the PIRD Act 2015 (FRR); and itself has not changed.
b) Australian Accounting Standards and This has resulted in the Corporation receiving a one-off Interpretations - Reduced Disclosure back payment of $21.4 million in the current financial year. Requirements issued by the Australian $5.5m of the payment related to 2018-19 and the balance Accounting Standards Board (AASB) that $15.9m of the prior period error related to 2017-18 and apply for the reporting period. earlier periods. Section 4 198 Annual Report 2019-20 199
The error has been corrected by restating each of the affected financial statement line items on the principal financial New Accounting Standards statements and their respective notes as follows: No accounting standard has been adopted earlier than the application dates as stated in the standard. 2019 2019 Adjustment Restated The new standards, revised standards, interpretations and amending standards that were issued prior to the sign off date Statement of Comprehensive Income (extract) $'000 $'000 $'000 and are applicable to the current reporting period did not have a material impact on the 2019-20 financial statements.
Revenue from government 17,777 5,512 23,289 Total comprehensive income 3,475 5,512 8,987 Nature of change in accounting policy, transitional Standard/ Interpretation provisions, and adjustment to financial statements 2019 2019 Adjustment Restated AASB 15 Revenue from AASB 15, AASB 2016-8 and AASB 1058 became effective 1 July 2019. Statement of Financial Position (extract) $'000 $'000 $'000 Contracts with Customers / AASB 2016-8 Amendments AASB 15 establishes a comprehensive framework for determining whether, Trade and Other Receivables 3,566 21,405 24,971 to Australian Accounting how much and when revenue is recognised. It replaces existing revenue Total financial assets 28,284 21,405 49,689 Standards – Australian recognition guidance, including AASB 118 Revenue, AASB 111 Construction Contracts and Interpretation 13 Customer Loyalty Programmes. The core Total assets 28,829 21,405 50,234 Implementation Guidance for Not-for-Profit Entities principle of AASB 15 is that a Corporation recognises revenue to depict Net assets 26,491 21,405 47,896 and AASB 1058 Income of the transfer of promised goods or services to customers in an amount that Retained surplus 26,491 21,405 47,896 Not-For-Profit Entities reflects the consideration to which the Corporation expects to be entitled in exchange for those goods or services. Total equity 26,491 21,405 47,896 AASB 1058 is relevant in circumstances where AASB 15 does not apply. AASB 1058 replaces most of the not-for-profit (NFP) provisions of AASB 2019 1004 Contributions and applies to transactions where the consideration to 2019 Adjustment Restated acquire an asset is significantly less than fair value principally to enable the Statement of Changes in Equity $'000 $'000 $'000 Corporation to further its objectives, and where volunteer services are received.
Balance carried forward from previous period 23,016 15,893 38,909 The details of the changes in accounting policies, transitional provisions Surplus/(Deficit) for the period 3,475 5,512 8,987 and adjustments are disclosed below and in the relevant notes to the financial statements. Total comprehensive income 3,475 5,512 8,987 Closing balance as at 30 June 26,491 21,405 47,896 AASB 16 Leases AASB 16 became effective on 1 July 2019.
This new standard has replaced AASB 117 Leases, Interpretation 4 2019 Determining whether an Arrangement contains a Lease, Interpretation 2019 Adjustment Restated 115 Operating Leases—Incentives and Interpretation 127 Evaluating the Note 1.2D: Revenue from Government $'000 $'000 $'000 Substance of Transactions Involving the Legal Form of a Lease.
PIRD ACT 1989 Contribution 5,298 5,512 10,810 AASB 16 provides a single lessee accounting model, requiring the recognition Total revenue from Government 17,777 5,512 23,289 of assets and liabilities for all leases, together with options to exclude leases where the lease term is 12 months or less, or where the underlying asset is of low value. AASB 16 substantially carries forward the lessor accounting in 2019 AASB 117, with the distinction between operating leases and finance leases 2019 Adjustment Restated being retained. The details of the changes in accounting policies, transitional Note 2.1B: Trade and Other Receivables $'000 $'000 $'000 provisions and adjustments are disclosed below and in the relevant notes to the financial statements. Department of Agriculture, Water and the Environment 1,487 21,405 22,892 Total receivables for Commonwealth contributions 1,487 21,405 22,892 Total trade and other receivables (gross) 3,571 21,405 24,976 Total trade and other receivables (net) 3,566 21,405 24,971 Section 4 200 Annual Report 2019-20 201
Application of AASB 15 Revenue from Application of AASB 15 Revenue from Contracts with Customers / AASB 1058 Contracts with Customers / AASB 1058 Income of Not-For-Profit Entities Income of Not-For-Profit Entities (Continued) The Corporation adopted AASB 15 and AASB 1058 using In relation to AASB 15, the Corporation elected to apply the Set out below are the amounts by which each financial The first column shows amounts prepared under AASB 15 the modified retrospective approach, under which the new standard to all new and uncompleted contracts from statement line item is affected as at and for the year ended and the second column shows what the amounts would cumulative effect of initial application is recognised the date of initial application. The Corporation is required 30 June 2020 as a result of the adoption of AASB 15. have been had AASB 15 not been adopted: in retained earnings at 1 July 2019. Accordingly, the to aggregate the effect of all of the contract modifications comparative information presented for 2019 is not that occur before the date of initial application. restated, that is, it is presented as previously reported Transitional disclosure under the various applicable AASBs and related In terms of AASB 1058, the Corporation is required Previous Increase/ interpretations. to recognise volunteer services at fair value if those AASB 15 AAS (decrease) services would have been purchased if not provided $'000 $'000 $’000 Under the new income recognition model the Corporation voluntarily, and the fair value of those services can be shall first determine whether an enforceable agreement measured reliably. The Corporation did not have any Expenses exists and whether the promises to transfer goods or volunteer services and therefore there was no impact Expenses 37,706 37,706 - services to the customer are ‘sufficiently specific’. If on transition as at 1 July 2019. Total Expenses 37,706 37,706 - an enforceable agreement exists and the promises are ‘sufficiently specific’ (to a transaction or part of a transaction), the Corporation applies the general AASB Revenue 15 principles to determine the appropriate revenue Industry Levies 3,522 3,522 - recognition. If these criteria are not met, the Corporation shall consider whether AASB 1058 applies. Revenue from Contracts with Customers 11,079 11,379 (300) Interest 448 448 - Royalties 880 880 - Impact on transition Other Revenue 119 119 - Revenue from Government 30,933 30,933 - The impact on transition is summarised below: 1 July 2019 Total Revenue 46,981 47,281 (300) Increase/(decrease) $’000 Net (cost of)/contribution by services 9,275 9,575 (300)
Departmental Assets Liabilities Cash and Cash Equivalents 4,806 4,806 - Income in Advance 3,372 Trade and Other Receivables 8,587 8,587 - Total liabilities 3,372 Investments 46,930 46,930 - Total adjustment recognised in retained earnings (3,372) Property, Plant and Equipment 874 874 - Computer Software 21 21 - Prepayments 232 232 - Total Assets 61,450 61,450 -
Liabilities Suppliers 415 415 - Research Projects 1,680 1,680 - Other Payables 4,173 501 3,672 Leases 734 734 - Employee Provisions 556 556 - Other Provisions 80 80 - Total Liabilities 7,638 3,966 3,672 Retained earnings 53,812 57,484 (3,672) Section 4 202 Annual Report 2019-20 203
Impact on transition Application of AASB 16 Leases The Corporation adopted AASB 16 using the modified As a lessee, the Corporation previously classified leases On transition to AASB 16, the Corporation recognised additional right-of-use assets and additional retrospective approach, under which the cumulative as operating or finance leases based on its assessment lease liabilities, recognising the difference in retained earnings. effect of initial application is recognised in retained of whether the lease transferred substantially all of the earnings at 1 July 2019. Accordingly, the comparative risks and rewards of ownership. Under AASB 16, the The impact on transition is summarised below: information presented for 2020 is not restated, that is, it Corporation recognises right-of-use assets and lease 1 July 2019 is presented as previously reported under AASB 117 and liabilities for most leases. Increase/(decrease) related interpretations. $’000 On adoption of AASB 16, the Corporation recognised The Corporation elected to apply the practical expedient right-of-use assets and lease liabilities in relation Departmental to not reassess whether a contract is, or contains a to leases of office space, which had previously been Right-of-use assets - property, plant and equipment 831 lease at the date of initial application. Contracts entered classified as operating leases. Lease liabilities 831 into before the transition date that were not identified as leases under AASB 117 were not reassessed. The The lease liabilities were measured at the present value Retained earnings 13 definition of a lease under AASB 16 was applied only to of the remaining lease payments, discounted using the contracts entered into or changed on or after 1 July 2019. Corporation’s incremental borrowing rate as at 1 July 2019. The Corporation’s incremental borrowing rate is the AASB 16 provides for certain optional practical rate at which a similar borrowing could be obtained from expedients, including those related to the initial an independent creditor under comparable terms and The following table reconciles the Departmental minimum lease commitments disclosed in the Corporation's adoption of the standard. The Entity applied the conditions. The weighted-average rate applied was 1.88%. 30 June 2019 annual financial statements to the amount of lease liabilities recognised on 1 July 2019: following practical expedients when applying AASB 16 to leases previously classified as operating leases The right-of-use assets for office space were measured 1 July 2019 under AASB 117: at an amount equal to the lease liability, adjusted by the $’000 amount of any prepaid or accrued lease payments. • Apply a single discount rate to a portfolio of leases Minimum operating lease commitment at 30 June 2019 265 with reasonably similar characteristics; Plus: effect of extension options reasonable certain to be exercised 612 • Exclude initial direct costs from the measurement Undiscounted lease payments 877 of right-of-use assets at the date of initial Less: effect of discounting using the incremental borrowing rate as -46 application for leases where the right-of-use asset at the date of initial application was determined as if AASB 16 had been applied Lease liabilities recognised at 1 July 2019 831 since the commencement date;
• Reliance on previous assessments on whether leases are onerous as opposed to preparing an impairment review under AASB 136 Impairment of Taxation assets as at the date of initial application; and The Corporation is exempt from all forms of taxation except fringe benefits tax (FBT) and the goods and • Applied the exemption not to recognise right-of- services tax (GST). use assets and liabilities for leases with less than 12 months of lease term remaining as of the date of initial application. Events After the Reporting Period The Corporation has been impacted by the COVID-19 pandemic with key events held by the Corporation either cancelled or deferred. There have also been minor impacts on project delivery due to the effects of COVID-19 on research organisations. The pandemic is not expected to impact on the Corporation’s ability to operate as a going concern due to the Corporation’s diverse income streams and cash reserves. Section 4 204 Annual Report 2019-20 205
This section analyses the financial performance of the Rural Industries 1. Financial performance Research & Development Corporation for the year ended 2020. 1.1 Expenses
2020 2019 2020 2019 $’000 $’000 $’000 $’000
1.1A: EMPLOYEE BENEFITS Goods supplied 2,198 1,792 Wages and salaries 2,673 2,470 Services rendered 6,527 4,996 Superannuation Total goods and services supplied or rendered 8,725 6,788 Defined contribution plans 256 274 Defined benefit plans 68 43 Other suppliers Leave and other entitlements 196 44 Other lease rentals1 - 116 Separation and redundancies 10 33 Workers compensation expenses 12 19 Other employee benefits 6 102 Total other suppliers 12 135 Total employee benefits 3,209 2,966 Total suppliers 8,737 6,923
ACCOUNTING POLICY 1The Entity has applied AASB 16 using the modified retrospective approach and therefore the comparative information Accounting policies for employee related expenses is contained in the People and relationships section. has not been restated and continues to be reported under AASB 117. The Entity has no short-term lease commitments or low value leases as at 30 June 2020.
1.1B: RESEARCH PROJECTS The above lease disclosures should be read in conjunction with the accompanying notes 2.2A and 2.4A. Public sector Australian Government entities (related entities) 2,915 1,554 ACCOUNTING POLICY State and Territory Governments 7,087 5,790 The Entity has elected not to recognise right-of-use assets and lease liabilities for short-term leases of assets that Private sector have a lease term of 12 months or less and leases of low-value assets (less than $10,000). The entity recognises Non-profit organisations 421 147 the lease payments associated with these leases as an expense on a straight-line basis over the lease term. Tertiary institutions 7,151 6,808 Commercial entities 7,955 6,749 Total research projects 25,529 21,048 1.2: Own-source revenue and gains
2020 2019 ACCOUNTING POLICY $’000 $’000 The Corporation manages research project expense through project contracts which require research partners to perform services in accordance with scheduled milestones. Research project expenses are recognised when the OWN-SOURCE REVENUE contracted milestone payments are due. 1.2A: Industry levies Industry levies 3,517 5,260 Industry levy penalties 5 5 1.1C: SUPPLIERS Total industry levies 3,522 5,265 Goods and services supplied or rendered Conferences 1,338 1,200 Consultants 624 393 ACCOUNTING POLICY Contractors 3,034 1,776 Industry Levies Information and communication 990 932 Under Section 30(1)(a) of the Primary Industries Research and Development Act 1989 (PIRD Act), each program Legal services 261 141 to which a levy is attached receives industry levies. These contributions to the Corporation are collected and Learning and development 173 135 distributed by the Australian Government under the various Levy Collection Acts. Industry levies revenue is recognised as income of not-for-profit entities in accordance with AASB 1058, when the Corporation has an Travel 730 812 unconditional right to receive cash which usually coincides with when the amounts are paid or payable by the Other 1,575 1,399 Government to the Corporation. Total goods and services supplied or rendered 8,725 6,788 Section 4 206 Annual Report 2019-20 207
The Corporation has determined that all revenue from contracts with customers are recognised as income of 2020 2019 not-for-profit entities in accordance with AASB 1058, except for those that are enforceable and with sufficiently $’000 $’000 specific performance obligations and are accounted for as revenue from contracts with customers in accordance with AASB 15. 1.2B: Revenue from Contracts with Customers The impact of initially applying AASB 1058 on the Corporation’s revenue is described in Overview. Due to the Industry contributions 4,698 4,325 modified retrospective transition method chosen in applying AASB 1058, comparative information has not Grants Australian Government 4,541 4,396 been restated to reflect the new requirements. The adoption of AASB 1058 did not have an impact on Other comprehensive income and the Statement of Cash flows for the financial year. Sponsorships 993 998 Ticket Sales 778 677 Revenue is accounted for under AASB 15 when the underlying contract contains identifiable and measurable performance obligations. Revenue is recognised over time as the Corporation satisifes each of the performance Other 69 45 obligations in the contract. The transaction price is the total amount of consideration to which the corporation Total revenue from contracts with customers 11,079 10,441 expects to be entitled in exchange for transferring promised goods or services to a customer. Revenue is rec- ognised using the input method of milestone payments paid to research organisations to allocate the transac- Disaggregation of revenue from contracts with customers tion price to performance obligations. AgriFutures disaggregates revenue from contracts with Revenue is accounted for under AASB 1058 when the underlying contract does not contain identifiable customers into the following categories performance obligations, or that are not enforceable. They are recognised when the Corporation has an Major product / service line unconditional right to receive cash which usually coincides with receipt of cash. Conferences 1,771 1,675 As a result of the transitional impacts of adopting AASB 15, a portion of revenue from contracts with customers Research services 9,239 8,721 has been deferred and has been recognised in contract liabilities. Other services 69 45 Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less 11,079 10,441 any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.
Type of customer Public sector Australian Government entities (related entities) 6,059 5,683 State and Territory Governments 1,071 509 2020 2019 Local Governments 76 13 $’000 $’000 Private sector Non-profit organisations 96 71 1.2C: Royalties Tertiary institutions 348 494 Research project royalties 880 239 Commercial entities 3429 3,671 Total royalties 880 239 11,079 10,441
Timing of transfer of goods and services Over time 6,799 - ACCOUNTING POLICY Point in time 4,280 10,441 Royalties The Corporation receives a portion of the total royalties paid under commercialisation agreements. The Corporation has voluntarily changed the accounting policy for royalties in 2019-20 with royalties recognised under AASB 1058 on an accural basis when the royalty is entitled to be received by the Corporation.
ACCOUNTING POLICY Under the voluntary change in accounting policy, royalties relating to the current year are accrued using either an estimation by the entity collecting the royalty or an a three year average of royalties collected. This change Revenue from Contracts with Customers provides reliable and more relevant information as it ensures that revenue is recorded in the correct accounting The following is a description of principal activities from which the Corporation generates its revenue from period. The effect of the change in accounting policy is an increase in royalties revenue of $0.3m in the 2019-20 Contracts with Customers: financial year. • Research projects. Industry contributions are contributions from industry organisations to projects and Australian Government Grants are grants to a program managed by the Corporation; and • Sponsorships and ticket sales for events managed by the Corporation. Section 4 208 Annual Report 2019-20 209
This section analyses the Rural Industries Research & Development Corporation 2. Financial position assets used to conduct its operations and the operating liabilities incurred as a result. 2.1: Financial assets Employee related information is disclosed in the People and Relationships section.
2020 2019 restated 2020 2019 Restated $’000 $’000 $’000 $’000
1.2D: Revenue from Government 2.1A: Cash and cash equivalents Amounts from portfolio department 10,220 12,479 Cash at bank 4,806 4,718 PIRD Act 1989 Contribution 20,713 10,810 Total cash and cash equivalents 4,806 4,718 Total revenue from Government 30,933 23,289 2.1B: Trade and other receivables
The 2019 comparative for PIRD Act 1989 Contribution and Total revenue from Government has been restated. Goods and services receivables Refer to the Prior Period Error note in the Overview for further information. Goods and services 1,726 1,711 Other 419 34 Total goods and services receivables 2,145 1,745
ACCOUNTING POLICY Commonwealth contributions Revenue from Government Department of Agriculture, Water and the Environment 6,143 22,892 Funding received or receivable from non-corporate Commonwealth entities (appropriated to the non-corporate Total receivables for Commonwealth contributions 6,143 22,892 Commonwealth entity as a corporate Commonwealth entity payment item for payment to this entity) is recognised as Revenue from Government by the Corporation unless the funding is in the nature of an equity injection or a loan. Other receivables Under Section 30(1)(b) of the Primary Industries Research and Development Act 1989 (PIRD Act), the Australian Government provides matching payments, within certain parameters, equal to one half of the amount expended GST receivable 249 313 by each program. Matching payments are recognised as Revenue from Government when the necessary Interest 55 26 expense is recognised. Total other receivables 304 339
Total trade and other receivables (gross) 8,592 24,976 Less impairment loss allowance (5) (5) Total trade and other receivables (net) 8,587 24,971
Credit terms for goods and services were within 30 days (2019: 30 days).
The 2019 comparative for Commonwealth Contributions, Department of Agriculture Water and the Environment and Total receivables for Commonwealth contributions has been restated. Refer to the Prior Period Error note in the Overview for further information.
ACCOUNTING POLICY Financial Assets Trade receivables, loans and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance. Section 4 210 Annual Report 2019-20 211
ACCOUNTING POLICY 2020 2019 Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair $’000 $’000 value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate. 2.1C: Investments Term Deposits 46,930 20,000 Assets acquired at no cost or for nominal consideration are initially recognised as assets and income at their fair value at the date of acquisition unless acquired as a consequence of restructuring of Total investments 46,930 20,000 administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.
ACCOUNTING POLICY Asset Recognition Threshold Term Deposits Purchases of property, plant and equipment are recognised initially at cost in the statement of financial The Corporation retains sufficient funds in cash to meet immediate working capital requirements. Amounts over this position, except for purchases costing less than $300, which are expensed in the year of acquisition (other requirement are invested in term deposits usually on three month terms. than where they form part of a group of similar items which are significant in total).
Interest revenue is recognised on an accrual basis. The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in the property leases taken up by the Corporation where there exists an obligation to restore the property to original condition. These costs are included in the value of the Corporation’s buildings with a corresponding provision for the ‘make good’ recognised. 2.2: Non-financial assets Revaluations Following initial recognition at cost, property, plant and equipment (excluding ROU assets) is carried at 2.2A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are Office Furniture Computer Leasehold Computer Right of conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially equipment & fittings equipment improvements Software1 Use Assets Total from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. $’000 $’000 $’000 $’000 $’000 $’000 $’000 As at 1 July 2019 Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity Gross book value 25 21 191 62 598 897 under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation Accumulated depreciation, (14) (4) (128) (25) (553) - (724) decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they amortisation and impairment reversed a previous revaluation increment for that class. Total as at 1 July 2019 11 17 63 37 45 173 Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount Recognition of right of use asset on 844 844 of the asset and the asset restated to the revalued amount. initial application of AASB 16 Adjusted total as at 1 July 2019 11 17 63 37 45 844 1,017 Lease Right of Use (ROU) Assets Leased ROU assets are capitalised at the commencement date of the lease and comprise of the initial lease Additions liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for by Commonwealth lessees as separate asset classes to corresponding Purchase 8 - 80 - 88 assets owned outright, but included in the same column as where the corresponding underlying assets Right-of-use assets - would be presented if they were owned.
Depreciation and amortisation (6) (3) (46) (13) (18) - (86) On initial adoption of AASB 16 the Corporation has adjusted the ROU assets at the date of initial application Depreciation on right-of-use assets (116) (116) by the amount of any provision for onerous leases recognised immediately before the date of initial Disposals - application. Following initial application, an impairment review is undertaken for any right of use lease asset that shows indicators of impairment and an impairment loss is recognised against any right of use Other - - (2) (6) - (8) lease asset that is impaired. Lease ROU assets continue to be measured at cost after initial recognition in Total as at 30 June 2020 13 14 95 24 21 728 895 Commonwealth agency, GGS and Whole of Government financial statements.
Total as at 30 June 2020 represented by Gross book value 33 21 269 62 592 844 1,821 Accumulated depreciation, (20) (7) (174) (38) (571) (116) (926) amortisation and impairment Total as at 30 June 2020 13 14 95 24 21 728 895
1 The carrying amount of computer software comprises of purchased software only. Section 4 212 Annual Report 2019-20 213
Depreciation Depreciable plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Corporation using, in all cases, the straight-line method of depreciation. 2.3: Payables
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and 2020 2019 necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. $’000 $’000
Depreciation rates applying to each class of depreciable asset are based on the following useful lives: 2.3A: Research projects Public sector Australian Government entities (related entities) 358 16 Asset Class 2019-20 2018-19 State and Territory Governments 71 442 Office Equipment 5 years 5 years Private sector Furniture & Fittings 10 years 10 years Non-profit organisations 110 - Computer Equipment 3 years 3 years Tertiary institutions 626 530 Leasehold Improvements Lease term Lease term Commercial entities 515 363 Buildings Lease term N/A Total research projects 1,680 1,351
The depreciation rates for ROU assets are based on the commencement date to the earlier of the end of the All research projects are expected to be settled in no more than 12 months. useful life of the ROU asset or to the end of the lease term. Research project creditors are recognised at their nominal amounts, being the amounts at which the liabilities will be Impairment settled. They relate to payments approved on achievement of agreed milestones, but which were unpaid at the end of the All assets were assessed for impairment at 30 June 2020. Where indications of impairment exist, the asset’s period. Settlement is usually made within 60 days. recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.
The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. 2.3B: Other Payables Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash Salaries and wages 45 20 flows, and the asset would be replaced if the Corporation were deprived of the asset, its value in use is taken Superannuation 6 2 to be its depreciated replacement cost. Paid Parental Leave - 1
1 Derecognition Lease incentive - 13 An item of plant and equipment is derecognised upon disposal or when no further future economic benefits Income received in advance 4,122 231 are expected from its use or disposal. Total other payables 4,173 267 Intangibles The Corporation’s intangibles comprise purchased software. These assets are carried at cost less accumulated 1 The Entity has applied AASB 16 using the modified retrospective approach and therefore the comparative information amortisation and accumulated impairment losses. has not been restated and continues to be reported under AASB 117. Software is amortised on a straight-line basis over its anticipated useful life. The useful life of the Corporation’s software is 5 years (2019: 5 years).
All software assets were assessed for indications of impairment as at 30 June 2020.
Section 4 214 Annual Report 2019-20 215
This section describes a range of employment and post 3. People and relationships employment benefits provided to our people and our relationships with other key people.
2.4: Interest Bearing Liabilities 3.1: Employee provisions
2020 2019 2020 2019 $’000 $’000 $’000 $’000
2.4A: Leases 3.1: Employee provisions Lease liabilities1 734 - Leave 556 428 Total leases 734 - Total employee provisions 556 428
1 The Corporation has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117. ACCOUNTING POLICY Total cash outflow for leases for the year ended 30 June 2020 was $123,989. Liabilities for short-term employee benefits and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.
Other long-term employee benefits are measured as net total if the present value of the defined benefit ACCOUNTING POLICY obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets Refer Overview section for accounting policy on leases. (if any) out of which the obligations are to be settled directly. Leave The liability for employee benefits includes provision for annual leave and long service leave.
The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the entity’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. 2.5: Other Provisions Provision for Third Party Provision for The liability for long service leave has been determined by reference to the shorthand method as per the FRR and Employer Entitlements Restoration Total Commonwealth Entity Financial Statements Guide. The estimate of the present value of the liability takes into $’000 $’000 $’000 account attribution rates and pay increases through promotion and inflation.
As at 1 July 2019 - 12 12 Superannuation Amounts provided for 68 - 68 Employees of the Corporation are members of the Public Sector Superannuation Scheme (PSS), or the PSS accumulation plan (PSSap), or other superannuation funds held outside the Australian Government. Total as at 30 June 2020 68 12 80 The PSS is a defined benefit scheme for the Australian Government. The PSSap is a defined contribution scheme. Provision for Restoration: The Corporation currently has 1 (2019:1) commitment for the leasing of premises which has provisions requiring the Corporation to restore the premises to their original condition at the conclusion of the lease. The liability for defined benefits is recognised in the financial statements of the Australian Government and The entity has made a provision to reflect the present value of this obligation. is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes. Provision for Third Party Employer Entitlements: The Corporation currently has 1 (2019:0) commitment for the provision of staff through a third party employer. The contractual agreement contains provisions for the Corporation to meet the The Corporation makes employer contributions to employee’s defined benefit superannuation scheme at rates annual leave and long service leave entitlements of the employees. The Corporation has made a provision to reflect the determined by an actuary to be sufficient to meet the current cost to the Government. The Corporation accounts present value of this obligation. for the contributions as if they were contributions to defined contribution plans.
The liability for superannuation recognised as at 30 June represents outstanding contributions.
Accounting Judgements and Estimates The liability for long service leave has been estimated using present value techniques in accordance with the shorthand method as per FFR 24. This takes into account expected salary growth, attrition and future discounting using Commonwealth bond rates. Section 4 216 Annual Report 2019-20 217
3.2: Key Management Personnel Remuneration
Executive remuneration reporting Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Corporation, directly or indirectly, including any director (whether executive or otherwise) of the Corporation. The Corporation has determined the key management personnel to be the Managing Director, six Directors and four General Managers. Key management personnel remuneration is reported in the table below:
2020 2019
$’000 $’000 Short-term benefits Post-employment benefits Other long-term benefits Termination benefits Total remuneration
Short-term employee benefits 1,362 1,178 Post-employment benefits 118 111 Other long-term employee benefits 130 96 Total key management personnel remuneration expenses 1,610 1,385
Name Position title Base salary Bonuses Other benefits and allowances Superannuation contributions service Long leave Other long-term benefits The total number of key management personnel that are included in the above table are 11 individuals John Harvey Managing Director 345,071 - - 21,120 35,267 - - 401,458 (2019: 12 individuals). Michael Beer General Manager, 196,047 - - 18,625 20,536 - - 235,208 The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Business Minister. The Portfolio Minister’s remuneration and other benefits are set by the Remuneration Tribunal and are not Development paid by the Corporation. Louise Heaslip General Manager, 192,862 - - 18,235 33,263 - - 244,360 Corporate 3.3: Related party disclosures Belinda Allitt General Manager, 199,901 - - 18,991 21,514 - - 240,406 Communications & Capacity Building John Smith General Manager, 162,243 - - 15,413 19,069 - - 196,725 Related party relationships: Research The Corporation is an Australian Government controlled entity. Related parties to this entity are Directors and Executive and other Australian Government entities. Kathryn Andrews Director 36,871 - - 3,503 - - - 40,374 Richard Clark Director & Audit 41,849 - - 3,976 - - - 45,825 Transactions with related parties: Committee Member Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education Tony Hamilton Director 36,871 - - 3,503 - - - 40,374 loans. These transactions have not been separately disclosed in this note. Ian Henderson Director & Audit 41,849 - - 3,976 - - - 45,825 The directors and key management personnel of the Corporation during the year were: Committee Member Kay Hull Chair 61,449 - - 5,837 - - - 67,286
Mrs K Hull AM (Chair) Mr J Harvey (Managing Director) William Ryan Director & Audit 46,828 - - 4,448 - - - 51,276 Mr I Henderson (Deputy Chair) Mrs L Heaslip Committee Chair Dr T Hamilton Ms B Allitt Dr W Ryan Mr M Beer Total 1,361,841 - - 117,627 129,649 - - 1,609,117 Mr R Clark Mr J Smith Dr K Andrews Remuneration for the Chair and Directors is in accordance with the Remuneration Tribunal There were no transactions with related parties during the financial year which require disclosure in this note. (Remuneration and Allowances for Holders of Part-time Public Office) Determination 2019
The Managing Director and General Managers are employed via an Executive Services Agreement with remuneration grades approved by the Board.
There are no Senior Executives or Other Highly Paid Staff
This disclosure has been prepared on an accruals basis. Section 4 218 Annual Report 2019-20 219
This section analyses how the Rural Industries Research 4. Managing uncertainties & Development Corporation manages financial risks within its operating environment. 4.1: Contingent liabilities and assets ACCOUNTING POLICY Financial assets Quantifiable contingencies The Corporation classifies its financial assets in the following categories: As at 30 June 2020, the Corporation has no quantifiable contingencies (2019: nil). a) financial assets at fair value through profit or loss; Unquantifiable contingencies b) financial assets at fair value through other comprehensive income; and c) financial assets measured at amortised cost. As at 30 June 2020, the Corporation has no unquantifiable contingencies (2019: nil). The classification depends on both the Corporation’s business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the entity becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to ACCOUNTING POLICY pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are Contingent liabilities and contingent assets are not recognised in the statement of financial position but are transferred upon trade date. reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an Financial Assets at Amortised Cost asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is Financial assets included in this category need to meet two criteria: greater than remote. 1. the financial asset is held in order to collect the contractual cash flows; and 2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount. Amortised cost is determined using the effective interest method. Effective Interest Method Income is recognised on an effective interest rate basis for financial assets that are recognised at amortised cost. 4.2: Financial instruments Financial Assets at Fair Value Through Other Comprehensive Income (FVOCI) 2020 2019 Restated Financial assets measured at fair value through other comprehensive income are held with the objective of both $’000 $’000 collecting contractual cash flows and selling the financial assets and the cash flows meet the SPPI test. 4.2A: Categories of financial instruments Any gains or losses as a result of fair value measurement or the recognition of an impairment loss allowance is Financial assets at amortised cost recognised in other comprehensive income. Cash and cash equivalents 4,806 4,718 Trade receivables 8,338 24,658 Term deposits 46,930 20,000 Total financial assets at amortised cost 60,074 49,376
Financial Liabilities Financial liabilities measured at amortised cost Suppliers 415 280 Research projects 1,680 1,351 Total financial liabilities measured at amortised cost 2,095 1,631
4.2B: Net Gains or Losses on Financial Assets Financial assets at amortised cost Interest revenue 448 625 Impairment (5) (5) Net gain from financial assets at amortised cost 443 620
4.2C: Net Gains or Losses on Financial Liabilities
There is no gains or losses on financial liabilities for the period ending 30 June 2020 (2019: nil).
The 2019 comparative for Trade receivables and Total financial assets at amortised cost has been restated. Refer to the Prior Period Error note in the Overview for further information. Section 4 220 Annual Report 2019-20 221
Fair value measurements at the ACCOUNTING POLICY 4.3: Fair Value Measurement end of the reporting period Financial Assets at Fair Value Through Profit or Loss (FVTPL) Financial assets are classified as financial assets at fair value through profit or loss where the financial assets 4.3A: Fair Value Measurement 2020 2019 Restated either doesn’t meet the criteria of financial assets held at amortised cost or at FVOCI (i.e. mandatorily held at $’000 $’000 FVTPL) or may be designated. Financial assets at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit or loss. Financial assets The net gain or loss recognised in profit or loss incorporates any interest earned on the financial asset. Cash and cash equivalents 4,806 4,718 Impairment of Financial Assets Trade and other receivables 8,338 24,658 Financial assets are assessed for impairment at the end of each reporting period based on Expected Credit Held-to-maturity investments 46,930 20,000 Losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased, or an amount equal to 12-month expected credit Non-financial assets losses if risk has not increased. Plant and Equipment 146 128 The simplified approach for trade, contract and lease receivables is used. This approach always measures the loss allowance as the amount equal to the lifetime expected credit losses. Financial liabilities A write-off constitutes a derecognition event where the write-off directly reduces the gross carrying amount of Suppliers 415 280 the financial asset. Research projects 1,680 1,351 Financial liabilities Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial The 2019 comparative for Trade and other receivables has been restated. Refer to the Prior Period Error note in the liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’. Overview for further information. Financial Liabilities at Fair Value Through Profit or Loss
Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value ACCOUNTING POLICY adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any All property, plant and equipment are measured at fair value in the Statement of Financial Position. interest paid on the financial liability. When estimating fair value, market prices were used where available. Where market prices were not available, Financial Liabilities at Amortised Cost depreciated replacement cost was used (ie level 3).
Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These Level 3 measurements use inputs to estimate fair value where there are no observable market prices for the liabilities are subsequently measured at amortised cost using the effective interest method, with interest assets being valued. expense recognised on an effective interest basis. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the materially from the asset’s fair values as at the reporting date. The regularity of independent valuations depends goods or services have been received. upon the volatility of movements in market values for the relevant assets.
5.1: Aggregate assets and liabilities 2020 2019 Restated $’000 $’000
Assets expected to be recovered in: No more than 12 months 60,524 50,031 More than 12 months 926 203 Total assets 61,450 50,234
Liabilities expected to be settled in: No more than 12 months 6,866 2,260 More than 12 months 772 78 Total liabilities 7,638 2,338
The 2019 comparative for No more than 12 months and Total assets has been restated. Refer to the Prior Period Error note in the Overview for further information. Section – 05 Section 5 Courtesy of Brian Dunn, a NSW Department of Primary Industries research agronomist based at the Yanco Agricultural Institute.
Appendices
Appendix 1: Annual Performance Statement 224
Appendix 2: Environmental Performance 224 (including WH&S accountability)
Appendix 3: RD&E Portfolio 225-237 (Statutory levy and sub-accounts)
Appendix 4: Glossary 238
Appendix 5: AgriFutures Australia R&D Advisory 239
Appendix 6: Annual Reporting Requirements 240-243 (Legislative requirements)
Appendix 7: Service charter 244
Appendix 8: Selection Committee’s report 245-246 Section 05 Appendices Section 5 224 Annual Report 2019-20 225
Appendix 1: Appendix 2: Appendix 3: Annual Performance Environmental Performance RD&E Portfolio Statement (including WH&S accountability) (Statutory levy and industry sub-accounts)
Annual Performance Statement Result against performance criterion Buffalo
The Annual Performance Statements fulfil Section 39(1) (a) The Public Governance, Performance and 2019-20 of the Public Governance, Performance and Accountability Accountability (PGPA) Rule 2014 and Department of $ Act 2013 (PGPA Act) for the 2019-20 financial year and Finance Direction require entities to report against all accurately presents the entity’s performance in accordance measures listed in the Research & Development Plan Income Revenue with Section 39(2) of the PGPA Act. and the Portfolio Budget Statements.
AgriFutures Australia delivered a suite of outcomes Revenues from government that have fostered sustainable and productive new and Our vision is to grow the long-term prosperity Commonwealth contributions 5,970 of Australian rural industries existing rural industries, and provided understanding of national rural issues. Statutory industry levies 51,414 The development of this Strategic R&D Plan 2017-2022 Other outcomes are summarised in the Highlights and involved an extensive stakeholder consultation process achievements of this Annual Report. Industry levy penalties 122 during 2016-17 that considered:
• Analysis and insights on research achievements and Other income 3,291 impacts Total revenue 60,797 • Current and past performance of the organisation
• How the current and likely future rural industry operating environment might influence research and Expenses Research projects 8,911 development investment
• Research priorities and preferences Program management fees 3,029
• Organisational structure, approaches and systems. Other expenses 2,910
In developing this revised Strategic R&D Plan 2017-2022, Total expenses 14,850 AgriFutures Australia engaged in additional consultation, including:
• A series of seven face-to-face Regional Innovation Conversations around Australia targeting Surplus/(deficit) 45,947 emerging leaders Retained surplus at beginning • Face-to-face meetings with our two declared of reporting period* 259,923 Representative Organisations – National Farmers’ Federation and the Australian Chicken Meat Retained surplus at Federation end of reporting period 305,870
• Face-to-face meetings with a number of our other key stakeholders. *The “Retained surplus at beginning of reporting period” has been restated. Refer to the Prior Period Error note in the Overview section of the 2019-20 AgriFutures Australia financial statements for further information. Section 5 226 Annual Report 2019-20 227
Chicken Meat Deer
2019-20 2019-20 $ $
Income Revenue Income Revenue
Revenues from Government Revenues from Government
Commonwealth contributions 3,066,414 Commonwealth contributions 1,478
Statutory industry levies 1,356,558 Statutory industry levies 5,059
Industry levy penalties 1,713 Industry levy penalties 3
External contributions 542,802 Other income 23,166
Other income 465,047 Total revenue 29,706
Total revenue 5,432,534
Expenses Program management fees 2,957
Expenses Research projects 5,782,746 Other expenses 2,020
Reference panel expenses 34,449 Total expenses 4,977
Program management fees 191,754
Other expenses 138,387 Surplus/(deficit) 24,729
Total expenses 6,147,336 Retained surplus at beginning of reporting period* 3,171,569
Retained surplus at Surplus/(deficit) (714,802) end of reporting period 3,196,298
Retained surplus at beginning of reporting period* 1,992,874
Retained surplus at end of reporting period 1,278,072
*The “Retained surplus at beginning of reporting period” has been restated due to the *The “Retained surplus at beginning of reporting period” has been restated. Refer to the implementation of AASB 15 Revenue from Contracts with Customers. Refer to the Application of Prior Period Error note in the Overview section of the 2019-20 AgriFutures Australia financial AASB 15 Revenue from Contracts with Customers note in the Overview section of the 2019-20 statements for further information. AgriFutures Australia financial statements for further information. Section 5 228 Annual Report 2019-20 229
Export Fodder Ginger
2019-20 2019-20 $ $
Income Revenue Income Revenue
Revenues from Government Revenues from Government
Commonwealth contributions 660,772 Commonwealth contributions 149,419
Statutory industry levies 579,805 Statutory industry levies 263,405
Industry levy penalties 899 Industry levy penalties 740
External contributions 185,000 Other income 11,613
Other income 374,307 Total revenue 425,177
Total revenue 1,800,783
Expenses Research projects 256,099
Expenses Research projects 1,122,530 Reference panel expenses 8,909
Reference panel expenses 25,921 Program management fees 29,377
Program management fees 95,748 Other expenses 25,780
Other expenses 90,615 Total expenses 320,165
Total expenses 1,334,814
Surplus/(deficit) 105,012
Surplus/(deficit) 465,969 Retained surplus at beginning of reporting period 408,558 Retained surplus at beginning of reporting period 2,747,639 Retained surplus at end of reporting period 513,570 Retained surplus at end of reporting period 3,213,608 Section 5 230 Annual Report 2019-20 231
Goat Fibre Honey Bee and Pollination
2019-20 2019-20 $ $
Income Revenue Income Revenue
Revenues from Government Revenues from Government
Commonwealth contributions 23,752 Commonwealth contributions 293,147
Statutory industry levies 25,244 Statutory industry levies 310,794
Industry levy penalties 54 Industry levy penalties 1,114
Other income 5,184 Other income 16,785
Total revenue 54,234 Total revenue 621,840
Expenses Research projects 44,250 Expenses Research projects 482,594
Program management fees 2,413 Reference panel expenses 31,186
Other expenses 3,822 Program management fees 54,817
Total expenses 50,485 Other expenses 36,059
Total expenses 604,656
Surplus/(deficit) 3,749
Retained surplus at beginning Surplus/(deficit) 17,184 of reporting period* 570,380 Retained surplus at beginning Retained surplus at end of reporting period* 1,087,059 of reporting period 574,129 Retained surplus at end of reporting period 1,104,243
*The “Retained surplus at beginning of reporting period” has been restated. Refer to the *The “Retained surplus at beginning of reporting period” has been restated. Refer to the Prior Period Error note in the Overview section of the 2019-20 AgriFutures Australia financial Prior Period Error note in the Overview section of the 2019-20 AgriFutures Australia financial statements for further information. statements for further information. Section 5 232 Annual Report 2019-20 233
Kangaroo Pasture Seeds
2019-20 2019-20 $ $
Income Revenue Income Revenue
Revenues from Government Revenues from Government
Commonwealth contributions 7,520 Commonwealth contributions 191,143
Statutory industry levies 41,987 Statutory industry levies 150,588
Industry levy penalties 154 Industry levy penalties 5
Other income 8,255 Other income 149,725
Total revenue 57,916 Total revenue 491,461
Expenses Research projects - Expenses Research projects 321,694
Program management fees 9,192 Reference panel expenses 27,962
Other expenses 8,605 Program management fees 29,432
Total expenses 17,797 Other expenses 7,819
Total expenses 386,907
Surplus/(deficit) 40,119
Retained surplus at beginning Surplus/(deficit) 104,554 of reporting period* 602,454 Retained surplus at beginning Retained surplus at end of reporting period* 1,185,519 of reporting period 642,573 Retained surplus at end of reporting period 1,290,073
*The “Retained surplus at beginning of reporting period” has been restated. Refer to the *The “Retained surplus at beginning of reporting period” has been restated. Refer to the Prior Period Error note in the Overview section of the 2019-20 AgriFutures Australia financial Prior Period Error note in the Overview section of the 2019-20 AgriFutures Australia financial statements for further information. statements for further information. Section 5 234 Annual Report 2019-20 235
Ratite Rice
2019-20 2019-20 $ $
Income Revenue Income Revenue
Revenues from Government Revenues from Government
Commonwealth contributions 4,000 Commonwealth contributions 1,662,438
Other income 212 Statutory industry levies 174,617
Total revenue 4,212 Industry levy penalties 10
External contributions 350,750
Expenses Research projects 8,000 Other income 139,857
Total expenses 8,000 Total revenue 2,327,672
Surplus/(deficit) (3,788) Expenses Research projects 3,161,150
Retained surplus at beginning Reference panel expenses 29,570 of reporting period* 18,319 Program management fees 143,705 Retained surplus at end of reporting period 14,531 Other expenses 29,808
Total expenses 3,364,233
Surplus/(deficit) (1,036,561)
Retained surplus at beginning of reporting period* 14,661,564
Retained surplus at end of reporting period 13,625,003
*The “Retained surplus at beginning of reporting period” has been restated. Refer to the *The “Retained surplus at beginning of reporting period” has been restated. Refer to the Prior Period Error note in the Overview section of the 2019-20 AgriFutures Australia financial Prior Period Error note in the Overview section of the 2019-20 AgriFutures Australia financial statements for further information. statements for further information. Section 5 236 Annual Report 2019-20 237
Tea Tree Oil Thoroughbred Horses
2019-20 2019-20 $ $
Income Revenue Income Revenue
Revenues from Government Revenues from Government
Commonwealth contributions 265,157 Commonwealth contributions 489,625
Statutory industry levies 168,224 Statutory industry levies 389,200
Industry levy penalties 235 External contributions 205,313
Other income 4,102 Other income 12,046
Total revenue 437,718 Total revenue 1,096,184
Expenses Research projects 462,063 Expenses Research projects 884,124
Reference panel expenses 26,548 Reference panel expenses 34,938
Program management fees 23,415 Program management fees 40,877
Other expenses 31,056 Other expenses 21,887
Total expenses 543,082 Total expenses 981,826
Surplus/(deficit) (105,364) Surplus/(deficit) 114,358
Retained surplus at beginning Retained surplus at beginning of reporting period* 263,622 of reporting period* 734,627
Retained surplus at Retained surplus at end of reporting period 158,258 end of reporting period 848,985
*The “Retained surplus at beginning of reporting period” has been restated. Refer to the *The “Retained surplus at beginning of reporting period” has been restated. Refer to the Prior Period Error note in the Overview section of the 2019-20 AgriFutures Australia financial Prior Period Error note in the Overview section of the 2019-20 AgriFutures Australia financial statements for further information. statements for further information. Section 5 238 Annual Report 2019-20 239
Appendix 4: Appendix 5: Glossary AgriFutures Australia R&D Advisory Panels
Panels and Chairs at 30 June 2020
ABARES Australian Bureau of Agricultural and GVP Gross value of production Chicken Meat Ginger Rice Resource Economics and Sciences IRR Internal rate of return Guy Hebblewhite (Chair) Nicole Christodoulou (Chair) Drew Braithwaite (Chair) ABBA Australian Biomass for Bioenergy MCV Managing climate variability Dr Greg Underwood (Vice Chair) Ethan Graham Michele Groat (Vice Chair) Assessment MIRR Modified internal rate of return Dr Sheridan Alfirevich Jason Keating Dr Vito Butardo ACMF Australian Chicken Meat MLA Meat & Livestock Australia Katherine Balding Scott Kirkwood Brian Dunn Federation Inc. MOU Memorandum of understanding Dr Peter Chrystal Dr Mike Smith Russell Ford AECL Australian Egg Corporation Limited NFF National Farmers’ Federation Jason Fry Lucinda Staley Laura Kaylock AFIA Australian Fodder Industry NPV Net present value Dr Anthony Keyburn Ric Stevens Dr Laurie Lewin Association NRM Natural resource management Susy Klein Kylie Templeton Dr Ben Ovenden AME Apparent metabolisable energy OAIC Office of the Australian Information Georgina Townsend Dr Jo White Lucinda Staley AOP Annual Operational Plan Commissioner Antony Vagg APL Australian Pork Limited OECD Organisation for Economic Emerging Industries Honey Bee and Pollination APVMA Australian Pesticides and Veterinary Cooperation Brian Ruddle (Chair) Dr Doug Somerville (Chair) Tea Tree Oil Medicines Authority and Development Susan Wilson (Deputy Chair) Danny Le Fervue (Vice Chair) Michael Flanagan (Chair) AWI Australian Wool Innovation PGPA Act Public Governance, Performance and Angeline Achariya Tiffane Bates Dr Gavin Ash B/C Benefit–cost Accountability Act 2013 Mila Bristow Prof Saul Cunningham Phillip Butlin CCRSPI Climate Change Research Strategy for PIRD Act Primary Industries Research and John Lever James Kershaw Digby Growns Primary Industries Development Act 1989 Ann Ross Dr Diana Leemon Gae Plunkett CRC Cooperative Research Centre PSR Pythium soft rot Ian Smith Samuel Malfroy Dee-Ann Prather CRDC Cotton Research and Development PVB Present value of benefits Will Taing Annelies McGaw Prof Jeromy Vanclay Corporation PVC Present value of costs Christopher McLoghlin Ashley Zamek CSIRO Commonwealth Scientific and R&D Research and development Tom McCue Thoroughbred Horses Industrial Research Organisation RD&E Research, development and extension Ignite Prof Nigel Perkins (Chair) DA Dairy Australia RD4P R&D for Profit program Export Fodder Guy Coleman Dr Catherine Chicken (Vice Chair) DAWR Department of Agriculture and RDC Research and development Peter Baker (Chair) Andrew Duver Derek Field Water Resources corporation Zane Banson Joshua Gilbert Annelies McGaw DEDJTR Department of Economic RGA Ricegrowers’ Association Sean Blechynden Susan Hall Thomas Rielley Development, Jobs, Transport and RIRDC Rural Industries Research and Pat Guerin Lucinda Hawkins Jacqueline Stewart Resources Development Corporation Andrew Hayward Jessica Fealy Dr Craig Suann DPI Department of Primary Industries RWA Rural Women’s Award Munro Patchett Simone Kain FSANZ Food Standards Australia Lucinda Staley Sally Leigo New Zealand Steve Woods Nicolas Lyons ESD Ecologically sustainable development Oli Madgett FOI Act Freedom of Information Act 1982 FRR Public Governance, Performance and Pasture Seeds Accountability (Financial Reporting) Lisa Anderson (Chair) Rule Joe Cook (Vice Chair) GIS Geographic information system David Brown GRDC Grains Research and Development Brian Field Corporation Annelies McGaw GST Goods and services tax Dr Mary-Jane Rogers Section 5 240 Annual Report 2019-20 241
Appendix 6: Annual reporting requirements (Legislative requirements)
AgriFutures Australia’s Annual Report complies with the Section 7: Representative organisations The Public Governance, Performance and iv. The entering into of agreements under Sections requirements of the Australian Government’s legislation, 13 and 14 during the period and its activities 1. The Minister may, by notice published in the Gazette, which are set out below. The Acts are the: Accountability Act 2013 during the period in relation to agreements declare one or more specified organisations to be entered into under that section during or prior representative organisations in relation to an R&D The PGPA Act is the main legislation that specifies content • Primary Industries Research and and standards for presentation of statutory authorities’ to the period Development Act 1989 Corporation or an R&D Council. Annual Reports for parliamentary scrutiny. v. Its activities during the period in relation 2. A declaration may be made in respect of an R&D • Public Governance, Performance and to applying for patents for inventions, Corporation or an R&D Council at any time after the Section 46 of the PGPA Act requires AgriFutures Australia Accountability Act 2013 commercially exploiting patented inventions making of regulations under Section 8 establishing Directors to prepare an Annual Report each financial year and granting licences under patented • Environment Protection and Biodiversity AgriFutures Australia or Council, even if the regulations and to give it to the responsible Minister by 15 October. inventions Conservation Act 1999. concerned are not in force at that time. d) To: vi. The activities of any companies in which 3. The Minister must, in relation to each R&D Corporation i. Monitor AgriFutures Australia has an interest and each R&D Council, declare at least one organisation ii. Evaluate The Primary Industries Research to be a representative organisation. vii. Any activities relating to the formation of a and Development (PIRD) Act 1989 iii. Report to the Parliament, the Minister and its company 4. A declaration must be published on the Department’s representative organisations on: R&D activities website as soon as practicable after it is made. viii. Significant acquisitions and dispositions of real Section 3: Objects that are coordinated or funded, wholly or partly, by property by it during the period. The objects of this Act are to: Section 9: Establishment of AgriFutures Australia AgriFutures Australia. b) An assessment of the extent to which its operations e) To disseminate and commercialise, and facilitate the a) Make provision for the funding and administration 1. AgriFutures Australia is established. during the period have: dissemination, adoption and commercialisation of the of research and development relating to primary 2. The regulations may specify the primary industries results of research and development in relation to the i. Achieved its objectives as stated in its R&D plan industries with a view to: or class of primary industries in respect of which primary industry or class of primary industries in respect AgriFutures Australia is established. ii. Implemented the Annual Operation Plan i. increasing the economic, environmental and social of which AgriFutures Australia was established; and if a applicable to the period. benefits to members of primary industries and to the Section 11: Functions levy attached to AgriFutures Australia has a marketing community in general by improving the production, component – to carry out marketing activities for the c) An assessment of the extent to which AgriFutures processing, storage, transport or marketing of the The functions of a R&D Corporation are: benefit of the primary industry or class of primary Australia has, during the period, contributed to the products of primary industries industries in respect of which the AgriFutures Australia attainment of the objects of this Act as set out in a) To investigate and evaluate the requirements for was established. Section 3. ii. Achieving the sustainable use and sustainable research and development in relation to the primary management of natural resources industry or class of primary industries in respect of f) Such other functions as are conferred on AgriFutures d) In respect of the grain industry or such other which it was established and, on the basis of such Australia by this Act or any other Act. primary industry or class of primary industries as is iii. Making more effective use of the resources and investigation and evaluation: prescribed in the regulations, particulars of sources skills of the community in general and the scientific Section 28: Annual Report and expenditure of funds, including: community in particular i. to prepare an R&D plan under Section 19 1. The Directors must include in each report on an R&D i. Commodity, cross commodity and regional iv. Supporting the development of scientific and ii. to review and revise the plan Corporation prepared under Section 46 of the PGPA Act: classifications technical capacity b) To prepare an Annual Operation Plan under Section 25 a) Particulars of: ii. Funds derived from transfer of assets, debts, v. Developing the adoptive capacity of primary for each financial year. liabilities and obligations under Section 144. producers c) To coordinate or fund the carrying out of R&D activities i. The R&D activities that it coordinated or funded, vi. Improving accountability for expenditure on research that are consistent with the Annual Operational Plan wholly or partly, during the period and development activities in relation to primary prepared by AgriFutures Australia and in force at the ia. If a levy attached to AgriFutures Australia has a The Public Governance, Performance and industries. time. marketing component during the period – the Accountability Act 2013 b) Make provision for the funding and administration of ia. has, during the period, contributed to the attainment marketing activities that it coordinated or funded, marketing relating to products of primary industries. of the objects of this Act as set out in Section 3. wholly or partly, during the period The PGPA Act is the main legislation that specifies ii. The amount that it spent during the period in content and standards for presentation of statutory d) In respect of the grain industry or such other primary authorities’ Annual Reports for parliamentary scrutiny. industry or class of primary industries as is prescribed in relation to each of those activities the regulations, particulars of sources and expenditure iib. The impact of those activities on the primary Section 46 of the PGPA Act requires AgriFutures of funds, including: industry or class of primary industries in respect Australia Directors to prepare an Annual Report each financial year and to give it to the responsible Minister i. Commodity, cross commodity and regional of which AgriFutures Australia was established by 15 October. classifications iii. Revisions of its R&D plan or Annual Operation Plan ii. Funds derived from transfer of assets, debts, approved by the Minister during the period liabilities and obligations under Section 144. Section 5 242 Annual Report 2019-20 243
Index of Annual Report requirements
Reference Contractual/Legislation details Yes No N/A Page Reference Contractual/Legislation details Yes No N/A Page
RDCs Funding Agreement 2015-19 Public Governance, Performance and Accountability Rule 2014
14-15, 16-17, Report must be approved and signed by accountable authority and include details of Contribution to the implementation of relevant Industry sector and cross-sectoral • 40-41, 138-147, how and when approval was given and state that accountable authority is responsible • Clause 11.10(a) strategies under the RD&E Framework 151 for the preparation and contents of the Annual Report (as required in section 46 of the s17BB PGPA Act and in accordance with the Finance Minister’s Orders) 6, 188 Clause 11.10(b) The rationale for the mix of projects included in the Balanced Portfolio • 151 Report must comply must comply with the guidelines for presenting documents to Clause 11.10(c) Report on research extension activities • 42-43, 63, 78, 88 • s17BC the Parliament. All Clause 11.10(d) Collaboration with industry and other research providers • 45, 51 Report must be constructed having regard to the interests of the Parliament and Identify sources of income including separate identification of R&D Payments, other users. Information included in the report must be relevant, reliable, concise, • Commonwealth Matching Payments, other forms of income and Marketing • s17BD understandable and balanced All Clause 11.10(e) Payments and Voluntary Contributions 152-153 Report must specify the enabling legislation and include a summary of its objects and • Full cost of R&D and Marketing programs allocated in accordance with the Cost s17BE (a) & (b) functions and the purpose of the entity (from R&D Plan) 6, 240 - 241 • Clause 11.10(f) Allocation Policy 151-161 s17BE (c) Report must specify the name of the responsible Minister(s) • 9
Progress in implementing R&D Plan including progress against KPIs and the • Report must provide details of: Clause 11.10(g) achievement of key deliverables and associated outcomes. 9,18-27, 224 - Directions issued under legislation by the responsible Minister, or other Minister • s17BE (d) & (e) - General policy orders (GPO) that apply to the RDC under s22 (PGPA Act)- For each program bring the KPIs in the R&D plan and AOP together and demonstrate • Clause 10.2(b)(iii) how the deliverables funded advanced the outcomes. 14-15, 18-27 s17BE (f) Report must provide particular of any non compliance of a direction or GPO • Clause 11.10(h) Assessment of the efficiency and effectiveness of investments • 8-9, 150-151 Include a copy of relevant years annual performance statement (PGPA Act s39(1)(b) s17BE (g) and section 16F of PGPA Rule 2014) 244 Clause 11.10(i) Progress in implementing the Guidelines1 • 151, 162-163 Include a statement of any significant issue, and remedy action taken, reported to the • Clause 11.10(j) Consultation with the RO(s) on plans and activities 76, 244 responsible Minister under s 19(1)(e) of the PGPA Act that relates to non compliance • Clause 11.10(k) Other relevant matters notified to RDC by the Commonwealth • s17BE (h)& (i) with the finance law in relation to the entity. Must include information about the directors including names, qualifications, Primary Industries Research and Development Act 1989 experience, attendance of board meetings, and whether the director is an executive or • Report the particulars of the R&D activities that RDC co-ordinated or funded, s17BE (j) non-executive director 164 - 175 • s28(a)(i) wholly or partly, during the period 28-163 Must provide an outline of the organisational structure, including subsidiaries*, Report the particulars of the marketing activities that RDC coordinated or funded, wholly location of major activities and facilities and information on the main corporate • • s28(a)(ia) or partly, during the period s17BE (k) & (l) governance practices. (*Or an explanation on any missing information and how this (and s17BE (s)) affects the annual report) 170 - 171 s28(a)(ii) Report the amount spent in relation to R&D and marketing activities 150-155 s17BE (m) Must include information on the main corporate governance practices • 174 - 179 s28(a)(iib) Report the particulars of the impact of R&D and marketing activities on industry • 150, 156-161 Disclose the decision-making process undertaken by the board for related entity • s28(a)(iii) Include particulars of revisions of the R&D Plan that have been approved by the Minister • s17BE (n) & (o) transactions 175 Any agreements entered into under s13 and 14 of the PIRD Act and the activities in Highlight significant activities and changes that affected the operations or structure • • s28(a)(iv) relation to the agreements entered into during or prior to the period 176 s17BE (p) during the financial year Activities in relation to applying for patents for inventions, commercially exploiting s17BE (q) Include particulars of judicial decisions and, decisions of administrative tribunals • • s28(a)(v) patented inventions and granting licences under patented inventions s17BE (r) Include particulars of any report on the entity • s28(a)(vi) Activities of any companies in which the Corporation has an interest • s17BE (s) Unable to obtain information from a subsidiary n/a S28(a)(vii) Activities relating to the formation of a company • 241 Must include details of any indemnity given to the accountable authority, any member s28(a)(viii) Significant acquisitions and dispositions of real property (land and buildings) • of accountable authority or officer against a liability, including premiums paid, or agreed to be paid, for insurance against the authority, member or officer’s liability for Include an assessment of the extent to which RDC’s operations during the period have s17BE (t) legal costs 177 s28(b) achieved its objectives as stated in its R&D plan; and implemented the AOP n/a Must include information about the executive remuneration in accordance with An assessment of the extent to which RDC has, contributed to the attainment of the • • S17BE (ta) Subdivision 17C. 217 s28(c) objects of the PIRD Act. 6, 173, 175, 238 s17BE (u) Must include an index identifying where the requirements of s17BE are to be found. • 242 - 243 Particulars of sources and expenditure of funds, including commodity, cross commodity s28(d) and regional classifications; and funds derived from transfer under s144 151-161 Must include a table each of the key management personnel, senior executive and other highly paid staff of the entity with the following information: name; position tile; Subject to agreement between the Presiding Member of the Selection Committee and the • base salary; bonuses; other benefits and allowances; superannuation contributions s141(1A) RDC Chair include committee’s annual report as a discrete part of RDC’s annual report 245-246 (made by the entity); long service leave; other long-term benefits; termination Particulars of any directions given by the Minister in a financial year must be included in s17CA, s17CB, benefits; total remuneration, which must be the sum of the amounts included for the • S 143(2) the annual report 178 s17CC purposes of paragraph (c) to (j). 217 Must include the policies and practices of the entity regarding the remuneration of Public Governance, Performance and Accountability Act 2013 key management personnel, senior executives and other highly paid staff, setting out • s39(1)(b) Include a copy of the annual performance statements • 189, 224 the governance arrangements under which they operate; and the basis on which the s17CD remuneration has been determined. 217 s43(4) Include a copy of the annual financial statements and the Auditor General’s report • 186 - 221 Must calculate executive remuneration amounts on an accrual basis for reporting, s46(3) The annual report must comply with any requirements prescribed by the rules 172 - 179 s17CE unless found to be exempt. 217
1 ‘‘Guidelines’ for the 2019-20 Annual Report are the Rural RD&E Priorities, the Science and Research Priorities and the Levy Principles and Guidelines in relation to the introduction of new levies or changes to existing levies (if applicable). Section 5 244 Annual Report 2019-20 245
Appendix 7: Appendix 8: Service charter Presiding Member Rural Research and Development Corporation Selection Committee
29 September 2020 Enabling legislation and the Board Primary clients
AgriFutures Australia’s enabling legislation is the Primary • For AgriFutures Australia-related industries, all The Hon. David Littleproud MP Industries Research and Development Act 1989 (the PIRD participants in the marketing chain (producers, Minister for Agriculture, Drought and Emergency Management Act 1989). The AgriFutures Australia Board is accountable processors, distributors and consumers) PO Box 6022 to the Parliament of Australia through the Minister for House of Representatives • On AgriFutures Australia’s strategic cross-sectoral Agriculture. It: Parliament House program, the National Farmers’ Federation on behalf CANBERRA ACT 2600 • Sets strategic direction and establishes policies for of all rural industries. AgriFutures Australia • Oversees operational and functional performance Dear Minister against budget and other key performance indicators Industry consultations on behalf of stakeholders. Rural Industries Research and Development Corporation Selection Committee Communications channels between AgriFutures Australia Report for activities 2019–20 financial year. and rural industries meet two essential functions: accountability and bringing industry influence to bear on This report summarises the activities of the Rural Industries Research and Development Corporation (RIRDC) the research agenda. At the peak industry level, AgriFutures Core business Selection Committee for the 2019–20 financial year, pursuant to section 141 of the Primary Industries Research Australia is accountable to the: To facilitate a more profitable, dynamic and sustainable and Development Act 1898 (PIRD Act), in relation to the nomination of directors for appointment to the Rural rural sector by maximising the knowledge outcomes • National Farmers’ Federation Industries Research and Development Corporation (trading as AgriFutures Australia). from our R&D investments for Australian industries and • Australian Chicken Meat Federation government in: Establishment of the selection committee AgriFutures Australia is committed to working with industry • New and emerging industries to deliver research and development outcomes. We work The RIRDC Selection Committee was established under the PIRD Act for the purpose of nominating seven persons in partnership with Advisory Panels to decide on research for appointment as directors of AgriFutures Australia. • Established rural industries priorities and to make RD&E investment decisions. I was appointed by you as the RIRDC Selection Committee Presiding Member on 30 March 2020, for a period • National rural issues. ending 31 December 2022. From my nominations, following consultation with the RIRDC’s representative Core principles in AgriFutures Australia’s approach organisations—Australian Chicken Meat Federation and National Farmers’ Federation—you appointed the other to its mandate are: Reporting to stakeholders selection committee members on 26 May 2020 as follows:
• Collaboration – AgriFutures Australia consults widely There are four key accountability documents for • Mr Geoffrey Annison with its industry and government stakeholders to stakeholders: • Dr Alexander Ball determine investment strategies and priorities and • A five-year Corporate Plan that sets out strategies, • Ms Christine Hawkins AM seeks strong collaborative arrangements with other directions and performance indicators for • Ms Robbie Sefton. funding partners and research providers where this AgriFutures Australia can enhance outcomes Huntsman Recruiting, an independent specialist recruitment firm, assisted in the recruitment process but did not • Three and Five-Year RD&E Plans for each industry • Facilitation – AgriFutures Australia facilitates more play a part in the selection of the director nominees. program within new and emerging industries, effective use of community and scientific expertise in established rural industries and national rural issues the creation of new knowledge and its adoption 2020 Selection Process • An Annual Operational Plan that sets out yearly • Innovation – AgriFutures Australia invests in objectives to give effect to the five-year Corporate Applications were called for through advertisements placed in The Australian Financial Review and The Weekend innovative solutions to the problems and constraints Plan, five-year industry plans, the annual budget and Australian, which have national circulation, on 1-2 May and 8-9 May 2020. Details of the vacancies were also facing its key stakeholders. annual research priorities distributed through a range of electronic networks, including social media, Women on Boards and Boardlinks champion, to ensure a broad range of candidates were considered. The representative organisations were also • The Annual Report, which sets out achievements invited to nominate candidates for consideration by the selection committee. Applications closed on 17 May Stakeholders against objectives, budgets and administration costs. 2020. A total of 426 applications were received, of which 152 were from female applicants. Four current directors applied for reappointment. • The Australian Government on behalf of rural industries and taxpayers • Industry funders • The Australian community. Section 5 246 Annual Report 2019-20 247
The selection committee undertook relevant consultations with the AgriFutures Australia Chairperson, Mrs Kay Hull AM, on 29 May 2020 about the skills and future directions for Notes AgriFutures Australia. Applications were considered by the selection committee a virtual meeting held over Zoom The selection committee undertookon 18 relevantJune 2020 consultations and a shortlist of 2 with the AgriFutures2 candidates Australia were selectedChairperson, for Mrs Kay Hull AM, on 29 May 2020 about the skills and future directions for AgriFutures Australia. Applications interviewwere considered. This included by the selectionthe four current committee a virtualdirectors meeting. held over Zoom on 18 June 2020 and a shortlist of 22 candidates were selected for interview. This included the four current directors. Interviews were conducted over the last week of June 2020 and the first week of July 2020, using Zoom. Interviews wereSecretariat services were provided by conducted over the last week of June 2020 and Huntsman Rec the first week ofruiting. July 2020, using Zoom. Secretariat services were provided by Huntsman Recruiting. Expense incurred by the selection committee in the 2019–20 financial year was for Secretariat Expense incurred by the selection committee in the 2019–20 financial year was for Secretariat Services: Services: Secretariat Services $5,500.00 Secretariat Services $5,500.00 Total $5,500.00 Total $5,500.00
Further details of remainder of the selection process will be provided as part of the report of activities of the selection committee in the 2020–21 financial year. Further details of remainder of the selection process will be provided as part of the report of activities of the selection committee in the 2020–21 financial year.
Terry Enright
Presiding Member RIRDC Selection Committee
Terry Enright Presiding Member RIRDC Selection Committee
AgriFutures Australia
Building 007 Tooma Way Charles Sturt University Locked Bag 588 Wagga Wagga NSW 2650
02 6923 6900 [email protected] agrifutures.com.au