G36
Statement of
Delivering science and technology to Corporate Intent benefi t New Zealand’s pastoral sector 2015-2020 G36
FOREWORD 1 AGRESEARCH’S CORE PURPOSE 2 AGRESEARCH CONTEXT 4 Economic drivers 4 Trends in agriculture 4 Trends in agri-food 5 Trends in agri-technologies 5 Trends in the science system 5 Helping Kiwis connect with science 5
NZ SCIENCE INITIATIVES 7 National Science Challenges 7 The New Zealand Food Safety Science and Research Centre 9
PLANNING FOR IMPACT 10 An Adoption and Practice Change Roadmap 10 Project Planning Tools 10 Evaluation Methods 10
contents CO-OWNED SECTOR OUTCOMES 11 OUTCOME AREAS 12 Outcome 1: Improved Dairy On-Farm Performance 13 Outcome 2: Improved Meat & Fibre On-Farm Performance 18 Outcome 3: Improved Returns from Dairy Products 23 Outcome 4: Improved Returns from Meat & Fibre Products 26 Outcome 5: Improved Pan-sector Performance 29 Outcome 6: Improved Māori Agribusiness Performance and Vision Mātauranga 33
INTERNATIONAL ACTIVITIES 36 Overall direction 36 Examples of international work 36
INFRASTRUCTURE FIT FOR PURPOSE 38 Innovation Hubs 38 Research Infrastructure 38
CORE FUNDING INVESTMENT 40 Overview 40 Investment process 41
ORGANISATIONAL VITALITY 44 Prizes to recognise excellent science and technology 44 Advisory panels to ensure science quality and relevance 45 Growing talent and supporting change 47
TRANSFORMING OUR CAPABILITY 48 Roadmaps to strengthen science 48 Four Investments to grow capability 49
FINANCIALS 50 Assumptions 50 Accounting policy 50 Reporting to shareholding ministers 50 Dividend policy 51 Acquisitions and divestment of assets 51 Activities for which AgResearch seeks compensation from the Crown 51 Estimate of current commercial value 51 AgResearch senior scientist Dr Debbie Burg (left) and DairyNZ senior scientist Dr Susanne Meier KEY PERFORMANCE INDICATORS FOR 2015/16, AT A GLANCE 52 PERFORMANCE INDICATORS 53 GLOSSARY OF ABBREVIATIONS 57
Cover image: (right) are part of the team working in an MBIE and DairyNZ-funded research programme to improve cow fertility. The project aims to help the dairy industry reach its target of a 78% 6-week in-calf rate, an increase from the 2011 rate of 65%. For more on the part AgResearch is playing in the research programme see page 15. NOTES 58
Presented to the House of Representatives pursuant to Section 44 of the Public Finance Act 1989.
2 statement of corporate intent 2015-2020
foreword
Agriculture, and the food, textiles and other products that arise from it, is the backbone of the New Zealand economy. The sector generates more than $25.3 billion in export earnings, directly employs around 130,000 people and provides images that convey “New Zealand” to our many international visitors.
AgResearch is the research institute charged with engaging with the pastoral, agri-food and agri-technology sectors and related food and textile industry stakeholders to bring about a step-change in performance and competitiveness.
This Statement of Corporate Intent (SCI) shows how we will work with our stakeholders to create tangible and valuable benefits. It details what we will do, how we will do it and how our contribution will be measured. It also shows how our institute is making a real difference to the economic, environmental and social well-being of our country, and its most important export sector.
As a Crown Research Institute, AgResearch provides a link between our Government shareholder and the sectors we serve so we engage closely with both to support government and industry strategies. Growing exports will require that we grow production volumes in our biological economy while improving the quality of our natural resources. This is both challenging and vital to New Zealand’s success. Science is essential in helping achieve the increase in productivity that we need. The landscape in which we operate is changing and the way science is developed and delivered here, and overseas, is emphasising collaboration and co-location. We are committed to ensuring that New Zealand science can anticipate and plan for these changes. Initiatives include our Future Footprint Programme to catalyse agri-innovation clusters and playing a significant role in National Science Challenges, including hosting the Our Land and Water Challenge. We support New Zealand’s economic growth through these innovation system initiatives and by working to grow business investment in research and development. We will continue to play a lead role in many of these initiatives and will respond to others as they are advanced by Government. We continue to contribute to New Zealand’s priorities by driving impacts and delivering outcomes for the pastoral, agri-food and agri-technology GROWING EXPORTS sectors through quality science, building research collaborations, strategically WILL REQUIRE THAT WE investing our Core Funding and capital, strengthening relationships with stakeholders “ GROW PRODUCTION and end-users, and transferring technology and knowledge. VOLUMES IN OUR The sectors we serve have diverse needs and complex interconnections. To achieve BIOLOGICAL ECONOMY our Core Purpose, we engage with many organisations within those sectors to WHILE IMPROVING THE understand their needs, gain their confidence to invest in research and development, QUALITY OF OUR NATURAL secure that investment and, (jointly with those stakeholder organisations), deliver the RESOURCES. THIS IS innovation they need to grow their productivity, market access and export value. BOTH CHALLENGING AND We will continue re-weighting our research towards sectors and firms that see research as VITAL TO NEW ZEALAND’S a priority, have the ability to pay for it, and where the routes to create impact are apparent. SUCCESS. SCIENCE IS We will continue to work with the sector to describe the changes that are underway at ESSENTIAL IN HELPING AgResearch and how they will provide long term benefits. ACHIEVE THE INCREASE We – our partners, stakeholders, management and staff – will work together to make IN PRODUCTIVITY THAT the difference for all New Zealand, to grow the pastoral and related sectors in a WE NEED. sustainable way to underpin our economic prosperity. This SCI shows how we plan to do so over the next five years.
Sam Robinson Dr Tom Richardson Chairman, AgResearch Chief Executive, AgResearch 1 agresearch’s core purpose
AgResearch’s purpose is to enhance the value, productivity and profitability of New Zealand’s pastoral, agri-food and agri-technology sector value chains to contribute to economic growth and beneficial environmental and social outcomes for New Zealand1. AgResearch will fulfil its purpose through the provision of research and transfer of technology and knowledge in partnership with key stakeholders, including industry, government and Māori, to achieve the following outcomes: A. Increase the value of these industry sectors to the New Zealand economy through the development of high-value pastoral-based products and production systems that meet current and future global market needs B. Position New Zealand as a global leader in the development of environmentally sustainable, safe and ethical pastoral production systems and products C. Ensure that New Zealand’s pastoral sector is able to protect, maintain and grow its global market access D. Increase the capacity of rural communities and enterprises to adapt to changing farming conditions in ways that balance economic, environment, social and PARTNER WITH THE cultural imperatives. PASTORAL, AGRI-FOOD The sector-aligned impacts shown in this Statement of Corporate Intent are mapped “ AND AGRI-TECHNOLOGY against our Statement of Core Purpose outcomes in Table 1. To achieve these SECTORS TO IDENTIFY outcomes, AgResearch is the lead CRI in the following areas: THE INNOVATION • Pasture-based animal production systems THAT IS NEEDED AND DELIVER OUR • New pasture plant varieties COLLECTIVE EXPERTISE • Agriculture-derived greenhouse gas mitigation and pastoral climate change TO CREATE VALUE FOR adaptation NEW ZEALAND. • Agri-food and bio-based products and agri-technologies • Integrated social and biophysical research to support pastoral, agri-food and agri- technology sector development. AgResearch will work with other research providers and end-users to particularly contribute to the development of the following areas: • Biosecurity, land, soil and freshwater management • Climate change adaptation and mitigation • Food and beverage sector (including foods for human nutrition and health, food technologies and food safety). AgResearch’s core value proposition is our ability to: “Partner with the pastoral, agri-food and agri-technology sectors to identify the innovation that is needed and deliver our collective expertise to create value for New Zealand.”
2 TABLE ONE TABLE improved from returns dairy products improved pan-sector ma and improved from returns meat products fibre and improved meat on-farm fibre and performance improved dairy on-farm performance 11 18 17 16 15 14 13 12 10 9 8 7 6 5 4 3 2 1 New high-valuedairyandfoodsolutionproductsprocesses New productsfromMāoriagribusiness enterprises Improve on-farmproductivityinMāori agribusinessenterprises Practical policysolutionsdevelopedandadopted Reduced environmental footprintofpastoralfarmingoperations Higher valuewoolproducts Improved processingefficiency Meat productsandprocesseswhichconsistentlymeettheneedsofexistingnewmarkets Continuous improvementinfarmmanagementpractices Improved animalhealthstatusofmeat-andfibre-producinganimals Improved productivityinmeat-andfibre-producinganimals Improved productivityofforage Improved animalwelfare Control targetsmetfornationallymonitoreddiseases Adoption ofnewfarmmanagementpracticeswhichimproveproductivity Improved animalhealthandmilkquality Improved rateofgeneticgaininthenationalherd Improved productionfromhome-grownfeed AgResearch’s Statement of Core Purpose outcomes (A to D left) mapped against the six outcomes described in this SCI in this described outcomes six the against mapped (A toDleft) outcomes Purpose Core of Statement AgResearch’s - ori agribusiness performance ori agribusiness statement ofcorporate intent2015- A B C D 2020
3 STATEMENT OF CORPORATE INTENT IMPACTS agresearch context
We exist to create beneficial outcomes for New Zealand agriculture. We deliver our Core Purpose in the context of New Zealand’s economy, trends in agriculture, agri-foods, agri-technologies and the science system.
ECONOMIC DRIVERS sector’s resilience to low prices. These gas intensity since 19904 but more work Agriculture is at the heart of New approaches are important themes in the is required. Similarly, clean water is an Zealand’s export success. The value of Primary Growth Partnerships and MBIE essential resource for New Zealand. agricultural exports in 2014, as shown in Partnership Programmes to which we The National Objectives Framework Figure 1, represented about half of New contribute. supports setting sustainable quality and Zealand’s merchandise exports. quantity limits. Partnerships between TRENDS IN AGRICULTURE the sector, policy agencies and scientists The long-term prospects for New Despite price volatility, New Zealand’s will be essential to find ways to grow Zealand’s agricultural products are agriculture, agri-food and agri- within those limits. favourable, thanks to broadening technology sectors have continued to primary sector growth and freer trade. Science has a particular ability to build value and increase export returns But in the short and medium term, price integrate measures, perspectives over many years. While a growing share volatility creates challenges for farmers and knowledge to find innovative of added-value products will enable and processors. According to the solutions that achieve both growth and export returns to increase more rapidly Ministry for Primary Industries (MPI) in environmental goals. than export volumes, doubling primary December 20142 As host of the Our Land & Water National : industry exports in real terms from $32 Science Challenge, AgResearch has an “… continued diversification of products billion in June 2012 to over $64 billion by important role in that process, along is important to safeguard our export 20253 will require both higher production with the sector, government, industry earnings from sector-based commodity volumes and a greater share of higher and other non-government organisations cycles. Moreover, it strengthens our value products. and communities. Scientific evidence opportunities for growth across markets Growing production and productivity can give confidence to farmers that their and consumer channels.” in our biological economy, while actions are appropriate, confidence AgResearch is supporting the sector improving the quality of our natural to sectors that a collective solution is to diversify its products, create value resource base in line with these goals, possible and confidence to policy makers in market niches, de-commoditise is both challenging and vital to New and communities that policy goals and and improve its efficiency to reduce Zealand’s success. Good progress has the communities’ aspirations will be export price volatility and increase the been made on reducing our greenhouse achieved.
agriculture sector statistics – 2014 or latest available figures
6.7 million dairy cattle • 4.92 million dairy cows 20.7 billion litres of milk exports • 11,927 dairy herds • 1.69 million tonnes of milk solids $15.6 billion of FIGURE 1 FIGURE • 1.72 million ha farmed for dairying dairy products and ingredients • 95% of milk is exported 29.6 million sheep 114,842 tonnes wool (clean) $8.8 billion of meat, textiles and by-products 3.73 million beef cattle • 90% of wool (clean) • 12,290 sheep and beef farms production is exported • 7.9 million ha • 92% of sheep meat is exported 1.17 million tonnes red meat • 80% of beef and veal is exported 0.95 million deer
4 statement of corporate intent 2015-2020
… CONTINUED DIVERSIFICATION OF PRODUCTS IS IMPORTANT TO SAFEGUARD OUR EXPORT “ EARNINGS FROM SECTOR-BASED COMMODITY CYCLES. MOREOVER, IT STRENGTHENS OUR OPPORTUNITIES FOR GROWTH ACROSS MARKETS AND CONSUMER CHANNELS.
This will require scientists to describe about $1.3 billion in 2009 to about $1.9 Roadmaps (see p.38 and p.48) along complex systems in ways that are billion in 201310 and their effective use with New Zealand-wide initiatives, relevant and meaningful for decision- contributed to a multifactor productivity such as Innovation Hubs and National makers. Science has to deliver both improvement of 1.2% per annum from Science Challenges, aim to achieve fundamental research that will solve 1996 to 2012 for the New Zealand those goals. The changes we make will future problems and tools to help agriculture sector, compared to 0.7% per increase value for taxpayer and levy- stakeholders solve today’s problems. annum for the measured sectors of New payer investments, combine education, 11 research and end-users to be more Through our involvement in National Zealand’s economy . efficient; maximise use of infrastructure Science Challenges, Innovation Hubs Agri-technologies are important and increase collaboration. and other national and international outputs of AgResearch science. Past initiatives, AgResearch is addressing research programmes have targeted HELPING KIWIS CONNECT WITH these challenges by developing the development of new and improved SCIENCE technologies and knowledge to help forage cultivars, endophytes (such as the pastoral sector engage with wider AR37), biological pest control agents AgResearch’s key stakeholders and society. A key step is to enable stronger (such as for Argentine Stem Weevil end-users include 25,000 small and collaboration across science disciplines and Clover Root Weevil), measurement medium-sized enterprises that make up – between animal and plant production, technologies and decision-support tools our dairy, sheep & beef and deer farming systems and environmental scientists, (such as Farmax). Current research sector, the owners of those enterprises for example – to build the right “New supports these technologies, with a and their families. New Zealand farmers Zealand Inc” teams to address important focus on decision support tools; and farming families have led the issues. We also draw on international growing the value of products world in taking a scientific approach to networks such as the Global Research disseminated through our subsidiary farming, either innovating themselves, Alliance5, Horizon 20206 and the Global Grasslanz Technology; and innovating in partnership with research Agenda for Sustainable Livestock7. commercialising intellectual property and technology suppliers or adapting emerging from our science. and adopting technologies to improve TRENDS IN AGRI-FOOD their farm businesses. Our success as an exporting nation TRENDS IN THE SCIENCE SYSTEM AgResearch has worked with rural depends on how well-positioned New The government has encouraged the community stakeholders for many years Zealand businesses are to succeed in business sector to double their R&D to explore how science and technology a global environment8. From 2008 to to more than 1% of gross domestic can improve their lives and businesses, 2014, the share of processed primary product12. To leverage greater business help rural communities engage with products in New Zealand goods sector research and development science and technology, promote the exported increased from 33% to 42%9. activity, the government has also relevance of science and technology There is scope for this trend to continue dedicated a higher proportion of its to rural life and support debate about as unprocessed primary products still science and innovation investment science and technology issues. 13 made up 31% of goods exported in to business-led R&D through We work with industry initiatives to the year to March 2014. AgResearch is Callaghan Innovation, Primary Growth promote careers in science to primary contributing to improve opportunities Partnerships and other channels. and secondary school students and to process agricultural products into AgResearch is at the nexus of agricultural their teachers, as well as to tertiary high-value exports and, as part of the students. These include the NZ Young production and environment and our proposed New Zealand Food Safety Farmers’ Get Ahead and Teachers’ Day research has yielded, and will yield, Science and Research Centre and other Out programmes and the DairyNZ billions of dollars in benefits but the projects, we are working to ensure Year 13 Science Careers Day. We are challenges New Zealand and our sectors also a regular participant in the Royal overseas customers have a high level of face are too big for any one institution Society’s Science Teaching Leadership confidence in the safety and provenance to solve. Programme, hosting secondary school of New Zealand’s food products. teachers two terms at a time to develop We believe driving economic growth their leadership skills and lead the TRENDS IN AGRI-TECHNOLOGIES requires creating denser clusters of improvement of science teaching at talent, with less duplication, fewer silos, Agri-technologies are increasingly their schools. more co-operation and a value-added important to New Zealand, both because approach. We are leading the way to These activities align with the national they enable our agriculture sector to be meet these requirements by creating strategic plan for science in society A highly competitive and because they are clusters and shared infrastructure. Our Nation of Curious Minds - He Whenua a significant export industry themselves. 14 Future Footprint Project and Science Hihiri I Te Mahara and AgResearch will Agri-technology exports grew from continue working to support this strategy.
5 FOR MANY OF THEM FINDING OUT ABOUT THE VARIETY OF “ SCIENCE EXPERTISE REQUIRED BY THE INDUSTRY, AS WELL AS THE DIFFERENT CAREER PATHWAYS YOU COULD TAKE, WAS A REAL EYE OPENER.
40 passionate students
Senior Waikato high school students with a passion for science got a taste of a career in agricultural science at the second annual DairyNZ Year 13 Science Career Day hosted by DairyNZ, AgResearch, LIC and the University of Waikato in March 2015. This workshop showed senior science students the many career opportunities within New Zealand agriculture. “Ensuring that agriculture, such an important driver of the New Zealand economy, has the science talent it needs for continued innovation is vital. It has been very pleasing to have had such a fantastic response to this year’s event from students and teachers alike. When a student writes on their feedback form they’d like to do it all again to learn more, you can’t ask for a better response than that,” says event organiser, DairyNZ Industry Education Facilitator, Susan Stokes. Forty students from 16 Waikato schools took part in agricultural science activities led by scientists from the four organisations. They spanned soil assessment, pasture growth, nutrient leaching, animal productivity and health and meat science. AgResearch food technologist Dr Mustafa Farouk took part in last year’s event and returned this year to introduce this year’s attendees to meat science. progress report “It was wonderful to talk to such enthusiastic young people about our work,” he says. “For many of them finding out about the variety of science expertise required by the industry, as well as the different career pathways you could take, was a real eye opener.”
This workshop contributes to building talent required by AgResearch, the research and pastoral sectors and aligns with SCP Outcome D (see p.2).
6 statement of corporate intent 2015-2020 nz science initiatives
The research landscape is changing enhances decisions at the individual National Science and community scale, thus achieving to emphasise collaboration across Challenges the sectors. AgResearch is heavily primary production growth targets within community and regulatory limits. involved in major cross-New AgResearch hosts the Our Land & Water Zealand collaborations. National Science Challenge (NSC) and Greater value from global markets and contributes to the High Value Nutrition, value chains: The primary sector will New Zealand’s Biological Heritage, sustain higher economic growth by Science for Technological Innovation participating in global value chains, and other NSCs. The Challenges have generating new products, services and the mandate of leading and influencing market segments that are aligned with, the research direction of their respective are validated against, and improve fields to help the New Zealand public get environmental, social and cultural values. even better value from its annual $1.3 Operating at the Nexus: The size and billion investment in science complexity of the Challenge means and innovation. the research spans ecological and social science. The Nexus provides the WE WORK WITH OTHER opportunity to interconnect the three RESEARCH ORGANISATIONS TO tier themes and catalyse delivery of “ ALIGN AND FOCUS RESEARCH the Challenge research, as well as the ON THESE CHALLENGES AND aligned $100m per annum of national HELP THE NEW ZEALAND research investment. PUBLIC GET EVEN BETTER The transdisciplinary research teams VALUE FROM ITS ANNUAL include stakeholders to co-design, co- INVESTMENT OF $1.3 BILLION develop and co-innovate the Challenge IN SCIENCE AND INNOVATION. activities, maximising adoption and practice change, as described on p.10. OUR LAND & WATER – TOITŪ TE The first two official Challenge WHENUA, TOIORA TE WAI appointments are Ken Taylor as The Our Land and Water NSC will permanent Challenge director and “enhance primary sector production Professor Richard McDowell as and productivity while maintaining Chief Scientist. and improving our land and water quality for future generations”15. The Ken Taylor was the Director of the Challenge strategy, co-developed by Science Group at Environment stakeholders and the science teams, has Canterbury, and chairs a reference three themes that are key to delivering group of the Land and Water Forum. transformational change to the sector: FIGURE 2 Collaborative capacity: Collaboration stimulates development of new land The leaders of the Our Land and Water National and water use and management options Science Challenge (left) Ken Taylor, Challenge that open pathways to increased market Director and Dr Richard McDowell, Chief value and build the social capital Scientist (right). necessary to support transition to a limits-based management regime. Innovative, resilient land and water management: Land users and regulators will have a menu of tested smart technologies, innovative land use options and land and water use practices. These will improve efficiency, productivity and natural capital while linking to real time monitoring that 7 Professor McDowell was the Interim projects led by Massey University on • A new integrated ‘one ecosystem’ Chief Scientist of the Challenge, and is the food science of health foods, and research agenda a Principal Scientist at AgResearch and by Plant & Food Research on consumer • Deeper collaboration across research Professor of Soil and Water Quality at insights in relation to food-for-health in boundaries and disciplines Lincoln University. our key markets with a focus on Asia. • Larger-scale research programmes Other research partners in the AgResearch also had three successful focusing on ‘mission-critical’ research Challenge include ESR, GNS Science, projects in the High Value Nutrition • Stimulating and rewarding research Landcare Research, Lincoln Agritech, contestable funding round. excellence; and Lincoln University, Massey University, All three projects are funded for three • More effective public engagement. NIWA, Plant & Food Research, Scion years with $1,000,000 each from the and the University of Auckland. Challenge and as well as co-investment The Challenge aims to reverse the from industry partners. decline of New Zealand’s biological HIGH VALUE NUTRITION – KO NGĀ heritage through a step-change in KAI WHAI PAINGA “Complex beef lipids for metabolic research innovation, globally-leading health” is led by Dr Emma Bermingham. The overarching objective of the High technologies and sector action. She says meat from grass-fed animals Value Nutrition Challenge is to develop may contain bioactive complex lipids The Challenge involves researchers from high-value foods with validated health that have the potential to improve all seven Crown Research Institutes, eight benefits. The Challenge will drive metabolic health. universities and Te Papa Tongarewa. economic growth through excellence in AgResearch's Dr Maureen O'Callaghan is the following themes: “We want to provide robust scientific the Programme 2 Leader. evidence that consuming complex lipids • Clinical application (which food extracted from New Zealand grass-fed to do what) SCIENCE FOR TECHNOLOGICAL red meat will lead to reduced INNOVATION – KIA KOTAHI MAI – TE • Biomarkers (measuring impact, cholesterol levels.” AO PŪTAIAO ME TE AO HANGARAU clarifying risk) “We are working with Hawkes Bay The Science for Technological • Meeting consumer preferences and company Firstlight Foods, which produces Innovation Challenge will provide health values premium grass-fed Wagyu beef.” New Zealand with the advanced • Science of food. Reducing the risks of developing scientific, engineering, mathematical The Challenge aims to increase the allergies in children is the aim of the and ICT expertise required to support value of New Zealand food exports by project “Natural protection of milk” knowledge-based manufacturing improving their value propositions to led by Dr Alison Hodgkinson. She is and service industries that will drive consumers through health claims, leading partnering with Miraka, the Māori- improvement in the country’s economic to increased premiums and/or increased owned dairy processing and exporting wellbeing. Research targets include: sales volumes. Research in all the themes company which is looking to expand its • New medical device technologies to will be relevant to the health targets, business by diversifying into higher- improve health outcomes for New regulatory needs, consumer preferences/ value dairy products. Zealanders, reduce healthcare costs, values, and the food types that offer the The third project “a2 Milk™ for gut and generate export earnings greatest economic opportunity16. comfort” is aimed at demonstrating the • Improved yields in our primary In the High Value Nutrition National health benefits of a2 Milk for people industries (meat, dairy, forestry, Science Challenge priority research who believe they are intolerant to cows’ fisheries, horticulture) using round announced in October 2015, $3.6 milk and is led by Dr Matthew Barnett. innovative technologies million was allocated for an AgResearch- “With partner the a2 Milk™ Company we • New materials made from sustainable led project into gut health where we are will be running human clinical studies to sources and new monitoring working with the University of Otago, confirm the benefits of dairy products technologies supporting sustainably the Malaghan Institute of Medical that are exclusively of the A2 protein productive agricultural environments Research and Plant & Food Research. type on increased gut comfort through The research is aimed at fast-tracking preventing intestinal inflammation in • Innovative software embedded opportunities helping New Zealand’s some consumers,” he says. in manufactured products and food and beverage industry to develop underpinning applications and and market foods with validated health NEW ZEALAND’S BIOLOGICAL services that support New Zealand’s benefits, such as improved gut function HERITAGE– NGĀ KOIORA TUKU IHO knowledge-based economy. and comfort. The New Zealand’s Biological The Challenge involves researchers from AgResearch staff will also be working Heritage Challenge addresses the AgResearch, AUT, Callaghan Innovation, in four other teams that have received services sustaining the healthy GNS Science, Lincoln Agritech, Lincoln grants from High-Value Nutrition ecosystems on which our global University, Massey University, Scion, priority round. They are Immune Health, reputation is founded17. The Challenge University of Auckland, University led by the Malaghan Institute of Medical will increase the relevance, value and of Canterbury, University of Otago, Research; Metabolic Health, led by the impact of biosecurity and biodiversity Victoria University of Wellington and University of Auckland; and preliminary research through: University of Waikato. 8 statement of corporate intent 2015-2020
The proposed New Zealand Food Safety Science and Research Centre This proposed Centre is a joint investment by Government and New Zealand’s food industry, recommended by the Report on the WPC Contamination Incident. The Centre is hosted by Massey University with support from AgResearch, Cawthron Institute, ESR, Plant and Food Research, University of Auckland and University of Otago and it provides: · Rapid access to science-based information · Rapid deployment of best teams, optimising skills for maximum cost-efficiency · Better, more cost-efficient use of existing resources and investment in new resources to fill gaps and create opportunities · Ways to prevent and avert catastrophic events · Better control of messages, particularly in crises. The Centre emphasises a co-creation / co-invention model (see p.10) in which industry workshops identify needs and industry, government and research providers combine to develop strategies to meet those needs. AgResearch’s Dr Gale Brightwell has been appointed interim deputy director of the Centre. In addition to the Centre investment and our existing Core Funding investment in food safety, AgResearch has committed a further $1 million p.a. of Core Funding to a food provenance and assurance initiative (see p.40).
9 Beyond Results.CO.NZ
planning for impact How our research is taken up and applied in the sector is a key focus for AgResearch
AN ADOPTION AND PRACTICE needs, developing solutions, delivering As well as quantitative and qualitative CHANGE ROADMAP or transferring those solutions to end indicators, evaluation methods include: AgResearch has always aimed to users, and ensuring impact into the • Participant feedback sheets maximise the impact of its research future. The template is designed to to evaluate workshops with and the value it creates for the sectors prompt discussion among the project stakeholders or other we serve. Our Adoption and Practice team, and can be useful in stakeholder project participants Change Roadmap, completed in discussions to better understand and • The Objective/Reflective/ May 2013 (see p.48), recommended clarify expectations, particularly when Interpretive/Decisional (ORID) new approaches that we are now starting a project. It can be updated process to help participants and implementing across our throughout the life of the project if and stakeholders provide qualitative research programmes. when changes occur. information on the strengths and Based on case studies showing what The Programme Logic helps us develop weaknesses of an event or project successful adoption and practice change a clear implementation pathway from • Narratives and case studies to looks like, we developed research activities to short, medium and long term impact with next- and provide context to quantitative • Planning tools to maximise potential end-users. Examples of simplified indicators and illustrate change and for adoption and practice change frameworks can be seen on pp.14 to 32. how change occurred. Collections of from the beginning of a project We have developed a simple logic that narratives or case studies can enable • Monitoring and evaluation can be used with project teams allowing in-depth analysis. techniques to measure the difference everyone to participate in These methods are used to drive our science makes its development. impacts in each area where AgResearch • Principles of success to guide what Supporting tools include an Indicator aims to deliver outcomes for the sectors leads to successful adoption and Tool, which lists potential progress we serve and New Zealand as a whole. practice change indicators for processes, outputs, Find out more about these planning impacts and signs of unanticipated • An understanding of the skills and tools and how AgResearch plans for outcomes that could be applicable brokering capability required to impact at www.beyondresults.co.nz. before, during and after a project. There support our researchers to work is also an Indicator Sorting Tool to alongside stakeholders. select the most appropriate indicators PROJECT PLANNING TOOLS focusing on relevance, usefulness, clarity and accessibility criteria. We have developed project planning tools, starting with an Impact Planning EVALUATION METHODS Tool to clarify stakeholder roles We are supporting project teams to throughout the project. The template evaluate throughout the life of the helps the project team identify the role project. This is to keep the project on the stakeholders, including AgResearch, track to deliver impact, and to measure play throughout the life of the project the impact it has created. through to achieving impact. This includes identifying opportunities or
10 statement of corporate intent 2015-2020
co-owned sector outcomes
How we invest to create the greatest impact for New Zealand agriculture To understand where AgResearch should focus its efforts to have the greatest impact in the sector, we have invested considerable effort into understanding the goals of our stakeholders and then working to develop an appropriate portfolio of short, medium and long-term programmes to achieve those goals. These programmes are grouped into outcome areas through which we help achieve the targets our sector stakeholders have prioritised in their strategies.
AgResearch research and development portfolio (for 2014/15)
Note that AgResearch carried out some R&D in 2014/15 that was not aligned with our Core Purpose, mostly because it supported$1=5%, the Core $2=10% Purposes of <
FIGURE 3 FIGURE Product & Orignal values Knowledge Key: Strategic Applied Development Other Govt Commercial Research Research & Transfer 10 - 15 years 3-5 years 1-2 years Govt-MBIE Core H3: $30M H2:$57M H1:$32M
$10.99 $14.64 $ 8.35 improved dairy on-farm performance $33.9M
improved meat and fibre $8.84 $11.98 $11.72 on-farm performance $32.5M
improved returns from dairy products $7.5M $3.05 $3.96 $0.52
improved returns from meat and fibre products $11.8M
$1.47 $7.49 $2.93 improved pan-sector and ma-ori agribusiness performance $32.8M
11 outcome areas Our work is divided into six outcome areas to benefit the sector.
12 statement of corporate intent 2015-2020
outcome 1 improved dairy on-farm performance
• Environmental Stewardship – Landscape proactive environmental stewardship The dairy industry is a vital contributor and wise use of natural resources to the New Zealand economy and it • Animal Welfare – farm to high presents a substantial opportunity standards of animal health, welfare for economic growth. The 2013 dairy and well-being industry strategy was developed by DairyNZ, Federated Farmers (Dairy), the • Work Environment – provide a world- Dairy Women’s Network and the Dairy class work environment on-farm Companies Association of • Local Communities – enhance the New Zealand18. communities we live in It shows how it is vital to have • National Prosperity – grow dairying’s sustainable development (meeting contribution to the prosperity and present needs without compromising well-being of New Zealand. the ability of future generations to meet Some key priorities in the their needs19) and to remain competitive strategy include: on the world stage. These considerations led to an enhanced emphasis on • Attracting people to the industry • National Animal Identification & Tracing (NAIT), powered by OSPRI social responsibility, higher standards • Changing systems and intensity of animal and human welfare, and New Zealand, which links people, environmental stewardship. • Effective environmental impact property and livestock in mitigation options New Zealand AgResearch contributes to almost all of the dairy industry’s following 10 strategic • Strategic management practices. • Forage Value Index (FVI), the objectives, through research and The industry is also addressing independent source of Forage Value development, modelling and analysis, threats including: Indices and seasonal dry matter technology and knowledge transfer, performance values for short term • Availability of water expert advice and by developing people, and perennial ryegrass cultivars in in partnership with one or more dairy • Ability to maintain resilient, New Zealand. industry organisations: profitable systems The growth of dairying in the South • Farm Profit – increase on-farm • Product integrity and reputation. Island (now 39.2% of all cows and 41.6% of all milksolids production20), especially profit and resilience through • Increasing standards for in Canterbury, Otago and Southland, greater efficiency product testing. requires a re-focus on the needs of • Research and Development – In particular, the industry has to manage South Island dairy farmers. AgResearch research and develop innovative its growth within limits described by is working with DairyNZ and Southland technologies and solutions to meet local policy. dairy farmers to form a Southern Dairy the future needs of dairy farms The dairy industry has an increasing Hub – an innovation centre testing • Talented People – attract, develop focus on industry and farm-based concepts that will benefit southern dairy and retain highly skilled and information systems to help farmers farmers and future dairying in the south. motivated people throughout make wise decisions, from the tactical to We also support the aspirations of the the industry the strategic level. Some key information growing dairy goat and dairy sheep • Biosecurity and Product Integrity – systems include: industries to discover new components enhance the assurance levels of • Dairy Industry Good Animal and functional benefits of non-bovine New Zealand’s biosecurity and Database (DIGAD), which contains milk, improve the efficiency of farming product integrity animal genetic records, herd test and farming practices and ensure the • Industry Information Systems – results, animal breeding values environmental sustainability of goat and create and maintain industry-wide and other animal-related fields sheep dairying in New Zealand. systems and structures to serve the • DairyBase, a web-based package that needs of dairy farmers records and reports standardised dairy farm business information, both physical and financial 13 Programme logic for Improved Dairy On-Farm Performance and related opportunities to improve Pan-Sector and Maori Agribusiness Performance
Pathways to Impacts Example Programmes Outputs Indicators Implementation
Improved production from Clover root weevil Biocontrols for insect Industry organisations, Profit from
FIGURE 4 FIGURE home-grown feed biocontrol and pest and plant pests regional councils, productivity, dairying’s biopesticide economic contribution management strategies Improved forage manufacturers to NZ Black beetle Yersinia trial cultivars and endophytes Grasslanz Technology Next generation Ltd, plant breeding biopesticides companies Improving forage legumes Pastoral Genomics Resilient grasses
Improved rate of genetic Animal factors affecting Roles of key genes, NZ animal breeding Animal production gain in the national herd methane new genetic and genetics efficiency, rate of gain technologies companies in breeding value Dairy sheep farm systems
Improved animal health Facial eczema Vaccines, Animal breeding and Progress on industry and milk quality anthelmintics, genetics companies, animal health/milk Parasite resistance in animal management DairyNZ, veterinarians quality initiatives dairy cattle strategies, breeding solutions
Adoption of new farm Land use change and Decision-support DairyNZ, rural Practice change management practices intensification tools, e.g. Overseer, professionals, farm on-farm, including which improve productivity Farmax, etc. consultants and land adoption of farm Rural futures and profitability managers planning Technology transfer extension handbook
Control targets met for TB vaccine Vaccines, disease TBfree New Zealand, Annual period nationally-monitored management Polybatics, animal prevalence for bovine diseases strategies health companies tuberculosis
Improved animal welfare Dairy goat supply systems Recommendations on DairyNZ, MPI, rural Compliance with the improved practices professionals New Zealand Animal Off-pasture wintering Welfare Code (2010) systems for dairy cattle
our strategy Improved Dairy On-Farm Performance impacts are delivered through the innovation pipelines shown in Figure 4. These pipelines include many research projects on cattle, goat and sheep dairy farming.
14 farm, compared to the 2011 rate of 65% of 2011 rate the to compared farm, 400-cow on a profit increased in p.a. $28,000 deliver to estimated is which rate, in-calf 6-week a78% of target its reach industry dairy the help to aims project This todeliver.” is able AgResearch research multi-disciplinary the of demonstration anexcellent and team, the for triumph is areal embryos of status fertility the in determining far so achieved success of level the this, “Despite problems. logistical and technological significant faced has team research the that says Productivity Animal Leader, Group Science Ian Sutherland, Dr analysis,”Sara. and says amplification extraction, DNA for toInvermay transported then and frozen are embryos These Island. North the in farms various at cows dairy from embryos flush team (recover) the post-insemination, eight Day At Fonterra. from support and companies flushing embryo commercial staff, DairyNZ and AgResearch of ateam with started “We says. she it,” amplify we then there), and little is very (there DNA of copy is asingle this in mind –bearing cells single these from DNA extracting by this did “We stage. early this at do to difficult is very that something not, or fertilised been have embryos cell single whether todetermine was team’s challenges the of one says Reproduction Team Leader, Science Edwards, Sara Dr development.” in embryonic later to anevent due or fertilisation, of toafailure is due this whether know don’t –we cows dairy our of number in asignificant todevelop failing are embryos that is know we All program. research in the objectives future for foundation the provide will approach, amulti-disciplinary requires which information, this Collecting failure. pregnancy for reasons possible and timing, the identifying are “We insemination," Debbie. says after days 35 first in the occur which conceptions, of loss 30% apparent the is in reducing challenge biggest programme’s fertility “The genetics. better the of advantage totake tools management new developing as well as fertile, more naturally are that cows selecting through come will improvement The fertility. cow dairy to improve programme research DairyNZ-funded, and in anMBIE partners are team Reproduction AgResearch’s from others and here) (shown Berg Debbie Dr scientist Senior loss of conceptions reducing the 30% SCIENCE FOR IMPACT FOR SCIENCE
21 .
progress report pasture production andpasture profitfrom productivity. increasing thereby endophytes, ryegrass novel to addition in pastures dairy in beetle black controlling of method alternative an provide could project This entomaphaga MH96 entomaphaga Yersinia bacterium, an AgResearch-patented contained that product aprototype with treated mini-plots that Farming Fund found have Sustainable Industries' Primary of Ministry the and DairyNZ Agri-Nutrients, Ballance by funded Group Farm Systems Innovative AgResearch’s by out carried aproject from results Preliminary Biopesticides” programme, led by AgResearch by led programme, Biopesticides” Generation “Next in the development under are pests pasture key other and beetle black for solutions Biological pest. pasture important this against is effective that toabiopesticide lead could work this successful, if and, results autumn year’s last toconfirm is underway work Further Mike Wilson. Dr Scientist Senior AgResearch says conditions,” dry under particularly growth, pasture reduce severely can that population larval damaging the reduce will This eggs. laid have they before killed be will beetles black correctly, timed if that, advantage distinct the offers application “Spring numbers. beetle in black similar reductions achieved time same the at out carried trial plot A large farm. anearby and campus Ruakura AgResearch’s Waikato, at in the out carried was trial The reduction. a25% about averaged which plots, untreated than better much and reduction, 45% averaged which chemical pesticide, a with treated plots in than greater significantly was This 2014. spring during population beetle black adult in the reduction an 80% than more averaged in blackin beetle 80% reduction 22 , statement ofcorporate intent2015- 23 .
2020 15 16
progress report New Zealand. New in dairying of sheep sustainability environmental the ensure to criteria establishing and milk, ewe’s harvested of value and volume net the improving components, its of functionality the and composition its knowing by milk from value greater creating industry, sheep dairy Zealand New the from exports grow help to aims research This season. milking the of end the until Kingsmeade from collected be also will samples Effluent system. the through moving volumes (nutrient) effluent the tomeasure monitored continuously are flows Effluent effluent. sheep in dairy concentrations nutrient tounderstand parlour milking and pond Farms effluent Ag Antara the of samples monthly taking is team research environmental programme’s The systems. digestive and immune consumer’s the affects milk sheep Wayne how Young Dr is investigating Meanwhile, composition. milk on factors other and origin of farm stage, lactation age, seasonality, of influence the toinvestigate Kingsmeade Farms and Ag Antara Dairy, Sheep Spring at milk collecting are Broadhurst Marita and Day Li Dr programme, the of part In another age. of weeks four at feed hard onto them wean and feed hard toeat begin lambs tohelp age, of week one from to milk access restricting of using aprotocol trial weaning early an todesign used were trial this from results The lambs. of surveillance using video dispensers milk automatic around lambs of behaviour the studied first The Farms. Ag Antara with trials animal three conducted his team and Stevens David Dr 2014/15,During AgResearch’s areas. outcome Products Dairy from Returns Improved and Performance On-Farm Dairy Improved our aims straddling research four includes programme The Dairy. Sheep Spring and Dairy) River Blue (formerly Farms Ag Antara Cheese, Artisan Trust, Kingsmeade Waituhi Kuratau partners industry and University, Victoria and Innovation Callaghan Otago, of University the from are collaborators research The Samuelsson. Linda Dr AgResearch’s by is led industry” sheep dairy Zealand New emerging the of exports “Boosting programme, six-year MBIE-funded new The industry dairy sheep boosting the
SCIENCE FOR IMPACT FOR SCIENCE Sustainable Dairying. Dairying. Sustainable for Strategy the of goal Stewardship Environmental the with aligns project This inputs. farm of level and practices management existing their on depending farms individual between vary will losses to reduce ability the that and systems dairy these from Nlosses reducing of challenge tothe approach all’ size ‘one is fits no there that analysis this from is apparent say it They productivity. milk maintaining while environment, to the Nlosses reduce can options mitigation and management tactical and strategic of a range integrating that suggest assessments modelling say these researchers The topasture. DCD applying and diet cow tothe supplement ahigher-energy introducing rate, in stocking areduction with combined performance animal improving were These emissions. farm base nitrous oxide (N oxide nitrous and Nleaching increased with associated were 2009 and 2001 between 7-30% of increases production milk suggests analysis Zealand.The New &Lamb Beef and Fonterra DairyNZ, , &Innovation Science for Ministry the by is funded which programme, (Environment) 21 Pastoral the and Employment and Innovation Business, for Ministry Fund; the Farming Sustainable Industries’ Primary of Ministry the by 2001 since made Funding was attributes. management farm and climate soil, contrasting with regions, in five located farms dairy on undertaken was Research environment. tothe Nloss reactive reduce could options mitigation emission oxide nitrous and efficiency (N) nitrogen of per-hectare N per-hectare in reductions deliver toconsistently found were practices mitigationThree losses. farm base 2009 tothe relative 20% around by losses leaching N to reduce estimated was this catchments, the across Averaged months. winter and autumn during grazing pasture of duration the tolimit was farms the from losses Nleaching reducing for measure effective most single say the Researchers losses. N increased these offset could options mitigation and management tactical and that strategic integrating found several study the hand, other the On respectively. 0-25% and parties funding of arange by supported in 2001 began which research on based A project, integration through lower20% nlosses 24 , assessed how integrating a range arange integrating how , assessed 2 O emissions relative to the 2009 2009 tothe relative O emissions 2 O) emission losses of 3-30% 3-30% of O) losses emission progress report sustainability principles from barn to bottle to barn from principles sustainability improving the efficiency ofgoat farming and integrating milk, goat of benefits functional and components new discovering including industry, goat dairy the of goals research the achieving to contributes facility This exciting opportunity.” is issues an farming-related goat toresearch committed be will who facility, research goat dairy adedicated with organisation, research agricultural a world-renowned with working and development, and in research invest tocontinually need we aclaim such “To making be world. in the formula infant goat dairy best is the believe we what produce to profile correct the with purpose for fit milk in producing and quality milk welfare, animal on focus is agreater There indoors. farmed mainly are goats now where shift anindustry been has “There growth. industry’s tothe is crucial work AgResearch the says Tony Murison) Greg and Giles Executive Prosser, Chief Colin Officer Scientific Chief DGC with picture, in the right the from (second Storey Campbell Chairman DGC goats. dairy for surfaces bedding best the determine aims to facility 48-goat new the in trial first The DGC. from funding co- kind in and cash significant Farming Fund, with Sustainable the through Industries Primary for Ministry the by third MBIE the by and funded two underway, programmes research goat dairy three has AgResearch says. he component,” R&D astrong on based exports high-quality marketing and developing of record track anexcellent has “DGC Murison. Greg Dr Director &Programmes Partnership AgResearch business,” says their growing and in establishing (DGC) Co-operative Goat Dairy supported has which work and tooff-farm on-farm from chain, value the across right adifference made has science where of example is agreat industry goat dairy “The at Ruakura. facility research goat dairy dedicated its opened AgResearch 2015 in March when forward step another took supply milk goat Zealand’s New Work toincrease r&d facility dairynew goat 25
.
“ EXCITING OPPORTUNITY. EXCITING AN IS ISSUED FARMING-RELATED GOAT TO RESEARCH COMMITTED FACILITY, BE WILL WHO RESEARCH DAIRY GOAT ADEDICATED WITH ORGANISATION, RESEARCH AGRICULTURAL RENOWNED AWORLD- WITH AND WORKING AND DEVELOPMENT, RESEARCH TO CONTINUALLYNEED IN INVEST WE ACLAIM SUCH MAKING TO BE statement ofcorporate intent2015- 2020 17 outcome 2 improved meat & f ibre on-farm performance
Landscape Nearly 7.9 million hectares of New Zealand’s pasture lands are used for sheep, beef and deer farming26. About 12,290 farm businesses grow the 29.6 million sheep, 3.73 million beef cattle and 0.95 million deer wintered in 2014. About 855,000 surplus dairy bulls and heifers are retained each year to be raised for beef27. The sector’s land area has declined in recent years as anticipated returns from dairying and forestry have driven land use change. The growing dairy sector could potentially increase the dairy beef supply over time but, although calves slaughtered for veal increased from 1.6 to 2.1 million28 between 2010 and 2014, adult cattle slaughter numbers have remained steady at about 2.4 million per year and beef production available for export was almost unchanged at 584,000 tonnes in 201429. Lamb production available for export also remained almost unchanged from 2010 at 372,000 tonnes in 201430. The impacts on which AgResearch focuses in this outcome area are heavily influenced by the key industry organisations, Beef + Lamb New Zealand and Deer Industry New Zealand (DINZ). In addition, the Red Meat Sector Strategy developed by Beef + Lamb New Zealand and the Meat Industry Association (MIA) described a critical role for innovation to assist in improving the sector’s fortunes. Based on that strategy, the Red Meat Profit Partnership PGP programme aims to enable more consistency in farm performance and profitability by assisting farmers to extend their capability based on best practice information and resources, sharing information, and providing suitable tools and support31. The FarmIQ PGP programme has also set goals for on- farm production that are supported by AgResearch’s science-based innovation.
Our Strategy Senior AgResearch staff work with senior Beef + Lamb New Zealand staff and the Farmer Research Advisory Group (FRAG)32 members to develop research projects to meet the needs of sheep and beef farmers. The FRAG, includes one member each from the seven farmer councils and acts as a conduit between farmers, Beef + Lamb New Zealand’s board and research team. Researchers also have opportunities to propose project ideas to the FRAG. The result of the process is a research portfolio that is closely aligned with farmer needs while not duplicating existing or past research. We also work with Beef + Lamb Genetics, continuing from our work with its predecessor Ovita, to help build stronger genetics by focusing on industry-relevant outcomes and adoption, and with Pastoral Genomics to help achieve stepwise and sustainable gains in forage productivity. We take a similarly consultative approach in working with DINZ to identify and carry out research projects to help achieve the goals of DINZ’s Passion 2 Profit. Improved Meat and Fibre On-Farm Performance impacts are delivered through several innovation pipelines shown in Figure 5 that include many research projects. Some examples are shown on these pages.
18 statement of corporate intent 2015-2020
targeting 50% improvement in nitrogen response
The N-Guru decision support software released in July 2014 was the first product from the $32 Million, seven-year Clearview Innovations PGP programme led by Ballance Agri-Nutrients with co-investment from MPI. AgResearch worked with Ballance to design software to improve nitrogen use efficiency on pastoral farms by recommending variable rather than uniform rates of nitrogen fertiliser application, where soil nitrogen content varies sufficiently across the farm. When combined with soil nitrogen tests for multiple locations around a farm, N-Guru predicts the response of pasture to added nitrogen and enables Ballance sales staff to advise farmers on the minimum nitrogen fertiliser to use in each part of the farm to obtain the desired growth response. The
progress report same nitrogen can therefore produce more pasture drymatter than it would if distributed uniformly. This can either save the farmer fertiliser cost or enable N-GURU WILL CONTINUE TO greater production for the same amount of fertiliser. BE REFINED WITH FARMER N-Guru will continue to be refined with farmer “ FEEDBACK AND IT IS EXPECTED feedback and it is expected to drive between 20 and TO DRIVE BETWEEN 20 AND 40% of the nitrogen-use efficiency improvement 40% OF THE NITROGEN-USE Ballance aims to achieve through the Clearview EFFICIENCY IMPROVEMENT Innovations programme. The programme aims to BALLANCE AIMS TO ACHIEVE increase nitrogen uptake efficiency from a response THROUGH THE CLEARVIEW of 10 kgDM per kg of N to 15 kgDM per kgN INNOVATIONS PROGRAMME. – a 50% improvement. Clearview Innovations also aims to increase phosphate use efficiency by 20%. This research is helping improve on-farm management and reduce farming’s environmental footprint while increasing efficiency.
19 Programme logic for Outcome 2: Improved Meat & Fibre On-Farm Performance and related opportunities to improve Pan-Sector and Māori Agribusiness Performance
Pathways to Impacts Example Programmes Outputs Indicators Implementation
Next generation FIGURE 5 FIGURE biopesticides Industry organisations, Undermining weeds Biocontrols for insect regional councils, Global change and plant pests biopesticide New forages and Improved productivity processes manufacturers forage management of forage Improved forage leading to step-change Improving forage cultivars and Grasslanz Technology in productivity legumes endophytes Ltd, plant breeding companies Pastoral genomics Endophyte innovation
Sheep Genomics Projects Improved productivity Sheep Reproductive Roles of key genes, Beef + Lamb Genetics, Increase in production in meat- and fibre- Performance new genetic Genomnz, NZ animal and profit from sheep, producting animals technologies breeding companies beef and deer Beef Production Deer Progeny Test
Parasitology ecology Diagnostics, Reducing incidence Improved animal health Animal breeding and & pharmacology anthelmintics, and cost of pests and status of meat- and fibre- genetics companies, Parasitology - CARLA™ disease management diseases in sheep, beef producing animals Polybatics strategies and deer Haemonchus vaccine
Pastoral 21 – PGPs, industry Continuous improvement management to Decision-support Improved farm organisations, rural in farm management improve hill pasture tools, management productivity; improved professionals, farm practices approaches farm decision-making Pastoral 21 – integrated consultants farm planning
20 statement of corporate intent 2015-2020
33,000 animals target productivity in tb test trial
A new test for bovine tuberculosis (TB) developed AgResearch staff Ray Moss, Trevor Knight and Shirley by AgResearch in a five-year MBIE-funded contract is Nicholls spoke at a field day in late 2014, held on attracting international attention. Andrew and Nicky Newton’s Hyton Farm, near Cheviot Emeritus Scientist Professor Bryce Buddle (shown in North Canterbury. The research on the farm is below) says the project team has encouraging one sheep and beef component of the Pastoral 21 preliminary results from a trial which show the potential programme ‘Lifting farm profit and production while for a more accurate and cost-effective diagnostic test in reducing environmental impact’, running from 2011 to the battle against bovine TB. 2016 with investment by sheep and beef farmers “The current test used on New Zealand farms often through Beef + Lamb gives false positives, and a blood test is needed to New Zealand. confirm infection. We have developed a new skin test The scientists are with a similar sensitivity to the existing reagent bovine studying how to tuberculin, and fewer false positive reactions in non- establish new plant infected animals,” he says. genetics on land so steep it is usually sown by aircraft.
progress reports Ray Moss has trials on four sites, with two aspects (north vs south) on each site, monitoring production, quality and persistence for 16 different treatments, including existing pasture (control), grass- legume-herb mix, legume mix, spring vs autumn sown and finally, with vs without summer fallow. Seven The new test displays specific M. bovis proteins on legumes, four grasses and two herb species are the surface of polyester “Biobeads”, giving a cost- being used. effective and more reliable skin test reagent for Meanwhile, Trevor Knight is working on novel legumes bovine TB. The technique has been developed by New to increase early spring feed supplies. Results to spring Zealand biotechnology company PolyBatics, which is 2014 showed the standard perennials generally had the commercialising the new test. best production and hybrids with potential scored close The proteins show stronger immune responses when to white clover. Many other legumes in the 2012 planting displayed on very small particles and they can be used died out during the first year. The annual legumes in in a very low concentration; the Biobeads can also be both plantings produced very well in the first spring but, produced at low cost using fermentation. although they flowered and set seed, there was little re-establishment. The team has a large field trial underway to obtain estimates of test sensitivity and specificity in Shirley Nicholls and the Germplasm Development team comparison with the existing test. More than 30,000 are developing more phosphate-efficient clovers using cattle and 3,000 deer have already been tested and interspecific hybridisation. results for specificity have been very encouraging, “We want to produce plant material with all the current with significantly fewer false positives than for bovine beneficial traits and valuable new traits introduced from tuberculin and the test is on track to deliver these other species. We had some plants on hand at the equivalent sensitivity. field day to show what you can produce when you cross Bryce says the new skin test reagent has attracted two quite different species,” says Shirley. international attention and material has been supplied This research supports Beef + Lamb NZ’s goal to increase to the United States Department of Agriculture, and the productivity on sheep and beef farms by 3% p.a, with United Kingdom Department for Environment, Food lower inputs and more sustainable farm systems33. and Rural Affairs to test the reagent. This research contributes to TBfree’s goal to eradicate bovine tuberculosis from New Zealand.
21 22
progress report p.a. earnings net aiming for+$34m the P2P programme on-farm are to: are on-farm programme P2P the of goals Specific health. animal and genetics feeding, in especially toapply, farmers for convenient are that solutions into technologies package help We also can systems. farm their into genetics and health, animal feeding, deer on knowledge scientific best the integrate farmers helping by project second tothe is contributing AgResearch industry earnings by $34 million per year per million $34 by earnings industry net increase and ayear revenues in extra $56 million aims todeliver MPI. P2P from co-investment million $7.4 with years seven over programme Partnership Growth Primary million a$16 as established been has (P2P) 2Profit Passion Zealand’s New Industry Deer The P2P programme includes two inter-linked projects: inter-linked two includes programme P2P The • • • • • • • due to increased loin and leg muscle yield. muscle leg and loin to increased due 1%, by carcass adeer of value average the Increase weights carcass average toheavier due venison, of kg per 7% by efficiency processing Increase season. chilled the during available deer more making 8%, by slaughter at age average the Reduce produced. venison kg per saving in a6% feed resulting seven, year by 4kg by increase will size slaughter at carcass so rates growth Increase 72% of average industry the from to76%, rates tosale survival Increase Market-led production. Market-led venison premium Marketing 35 . SCIENCE FOR IMPACT FOR SCIENCE The paper, in the prestigious journal Science journal prestigious in paper, the The agriculture. Zealand New for spin-offs valuable very had already has 2014, in June published genome, sheep the map to effort international enormous An improving 28 traits for the future. the for needs Zealand New animals the breed to breeding, cattle beef and sheep for technologies genetic existing and new of most the make to goal Genetics’ Zealand’s New +Lamb Beef supports research This dense.” 12 more times about It’s house. the provide will this Zealand, in New from came you city tothe down information genetic giving SNP chip 50K previous the of analogy the use If you impressive. is really provide SNP can chip density high the which information of amount The basis. aresearch on sire breeders toterminal lambs ram for values breeding toreport used been has it year last In the sheep. Zealand in New traits quality eating FarmIQ by totrack used being primarily “It’s in 2013. SNP completed chip density high the for critical absolutely been has information genome new the says Isaacs FarmIQ CEO Collier Genetics.” Zealand New Lamb + Beef entity new the through tocome what’s of ataste are here celebrated being outcomes “The in Ovita. investments earlier their through research togenomic made have farmers sheep Zealand New commitment huge the by underpinned was work the says Champion Scott Dr Executive Chief Zealand New +Lamb Beef 15 years. next the over industry Zealand New the for million $200 togenerate estimated been has SNP chips 50K) (5K and density medium and low Using the results. these from developed chips density lower uses implementation Commercial liveweight. ewe adult and yield meat born, lambs of number resistance, parasite eczema, facial include traits These project. Genetics + Lamb Beef the within sheep, purpose dual Zealand’s New of in most traits 28 for selection genomic toimprove used being are chips density lower other of aseries FarmIQ and by developed information this on SNP based chip A 606K says. he known,” is also variants those all of order the means assembly the and variants, DNA million 30 than more identified has work Associated genome. sheep the of assembly quality high very a produced effort international “The generated. been has it as years seven to six last the for project the from information the using been have scientists Zealand New says John authors. the of two are Brauning Rudi Team Leader Bioinformatics and McEwan John Scientist Principal AgResearch authors. 73 with 26 institutions countries, eight in researchers by work years’ eight represents 34
,
statement of corporate intent 2015-2020
Outcome 3 improved returns from dairy products
Landscape The food and beverage industry contributed 56% of New Zealand merchandise export value in the year to December 2014. Milk and milk products are New Zealand’s largest food export ($15.6 billion in the same year) and New Zealand is the world’s second largest milk and milk product exporter36. Products range from commodities through to specialist ingredients/extracts and branded consumer products. The Fonterra co- operative is the largest New Zealand dairy company, collecting most of New Zealand’s milk supply. There are two other long-established co-operative dairy companies, Tatua and Westland, and newer processors such as Synlait, Open Country and Miraka. On a smaller scale, the Dairy Goat Co-operative manufactures and exports goat milk nutritional products and there is an emerging New Zealand sheep milk industry. AgResearch’s priorities are focused on developing new high-value dairy and food solution products and processes. This aligns with Priority 9 of the Building Innovation area within the Government’s Business Growth Agenda, with the High Value Nutrition National Science Challenge and the strategies of New Zealand’s dairy companies. Some of the underpinning science required to deliver this outcome is also common to the Improved Returns from Meat & Fibre Products outcome area, such as food structures and functionality, and both sectors also share interests in areas such as food safety.
Our Strategy Improved Returns from Dairy Products impacts are delivered as shown in Figure 6. These pipelines include many projects and some examples are shown in this section. AgResearch delivers improved returns from dairy products through New Zealand dairy processing companies, including Fonterra. By 2017, AgResearch will have made a significant contribution to at least one dairy product that is in testing or in the market.
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progress reports people throughout the industry. motivated and skilled highly retain and develop attract, to aims which goal, People 2013-2018 Talented Farming Dairy Sustainable for Strategy the supports project This 2025.” by exports sector agricultural todouble target government’s the achieving to critical be will This approach centre. the at firmly is consumer end the where safety, tofood approach future-focussed and aholistic supports report “The useful. report the find will sectors food all nation producing afood As dairy. about isn’t just report the that is helpful it However, sector. dairy the from commitment strong need we impact areal tomake recommendations report’s the “For safety. food of face changing the anticipate to need now we food suitable and safe of provider class aworld as reputation our tomaintain forward, “Looking Mrs Goodhew. shape,” says is in good sector dairy Zealand’s New of capability safety food the found Group Working “The Group. Working Capability Dairy the of report final the welcomed Goodhew Jo Minister Safety 2015 Food In December departments. government and providers, education representatives, industry dairy include group working the of members other and Gent Greg director Board Fonterra former and farmer dairy Ruawai by is chaired Group Working The activities. development todeliver a‘roadmap’ develop and needs capability long-term and medium short, sector’s processing dairy the todetermine Group Working Capability Dairy the tojoin asked was Argyle, Kevin toPlate, Pasture Dairy for Leader Portfolio AgResearch according to a 2014 MPI report toa2014 according strategies, industry primary implementing successfully of aresult as 2025, by in 2012 to403,000 350,000 from toincrease projected are sector primary in the Jobs employed people to be 53,000 more 37 .
benef benef its $8.6 mp.a. development and functionality testing. and functionality development product out carry properties, immune-enhancing high with milk produce which herds dairy develop to objectives programme’s the achieve helping is AgResearch 2021. by Zealand New to benefits in economic year per million $8.6 tocreate estimated was programme Hua Whai The spin-offs. possible and projects the from benefits potential significant offers programme the that reported review independent mid-term 2015, an early By $3.9 million. totalling funding industry and government 50:50 with 2016, in June tofinish planned is 2013in June and began programme The partner. Hua’s research is Whai AgResearch and consumers, health-conscious on afocus with markets, Zealand New and Asian in the partners industry with closely work Ltd Zealand New Kanematsu and Ltd Miraka Incorporation, Wairarapa Moana partners Commercial products. milk dairy immune-enhancing on based ingredients, dairy added-value new, aims todevelop programme Partnership Growth Primary Hua Whai The
statement of corporate intent 2015-2020
Programme logic for Outcome 3: Improved Returns from Dairy Products and related opportunities to improve Pan-Sector and Māori Agribusiness Performance
Pathways to Impacts Example Programmes Outputs Indicators Implementation
Gut barrier function Understanding human FIGURE 6 FIGURE Gastrointestinal tract health targets for physiology functional foods Characteristics of New high-value dairy and Brain health New products, niche products and New Zealand dairy food solution products processes and services Goat milk ingredients processing companies and processes with high dairy content Sheep milk functional Understanding food characteristics assurance issues; Food assurance strategies to improve microbiology food assurance
25 outcome 4 improved returns from meat & f ibre products
Landscape Meat is New Zealand’s second largest food export behind dairy products and New Zealand is the world’s largest sheep meat exporter38. Total exports from sheep and beef operations, including textiles and by-products, were around $8.8 billion per annum for the year to December 201439. The export value from venison, velvet and co-products is about $241 million per annum40. Most meat industry export revenue depends on traditional whole meat foods. A voluntary trade association, the Meat Industry Association, represents these processors, marketers and exporters, and co-operates with Beef + Lamb New Zealand to develop and implement a “whole of sector” strategy encompassing on-farm and off-farm activities. AgResearch works with the MIA and other investors in meat industry R&D to co-ordinate investments so they deliver the greatest value and to deliver that value to end-users. Maintaining market access and growing new markets for traditional meat exports will be essential but New Zealand is becoming more resource constrained so the sector cannot rely on increasing export revenue by simply increasing red meat production. Changes in land use are creating challenges for supply, with the number of lambs killed diminishing in recent years. The industry is also vulnerable to competition from developing agricultural economies with cheaper value chains and capacity to increase exports beyond their current local focus. These factors all create an impetus for science-led innovation to create more value from red meat and other carcass components. The wool industry has also faced significant challenges. In 2013/14, 114,842 tonnes of clean wool were exported41. About 43% of New Zealand’s wool exports that year were strong crossbred wool, another 33% was fine crossbred, 16% was medium wool and 7% was fine wool. Fine wool is roughly 3-5 times more valuable than strong wool, per kilogram42. AgResearch’s focus on wool aims to: • Support marketing credentials for wool, especially with respect to its environmental credentials • Assist wool sector firms with new product development • Work to support existing product functionality, such as insect and stain resistance • Find new uses for wool by understanding its attributes. Much of the underpinning science required to deliver this outcome area is common with the Improved Returns from Dairy Products outcome area.
Our Strategy Improved Meat & Fibre Off-Farm Performance impacts are delivered through several innovation pipelines, as shown in Figure 7. These pipelines include many research projects with many research partners and some examples are shown on the following pages.
26 statement of corporate intent 2015-2020
SCIENCE FOR IMPACT
7 years, +$75m exports
The Meat Industry Research and Innovation Partnership, launched in October 2014, is an $8.7 million investment over seven years by the Meat Industry Association and MBIE to support the +$880m on-farm Red Meat Sector Strategy. The programme aims to both increase meat export value and address revenue targeted significant industry risks. AgResearch, ESR and Carne Technologies are research providers to the partnership. The research goals include: • Extending the quality and shelf-life of chilled The Red Meat Profit Partnership (RMPP) is meat exports in response to “slow-steaming” a seven-year PGP programme valued at $64 million. Its partners include Beef + Lamb • Addressing known and emerging pathogens, New Zealand, Alliance Group, ANZCO, Silver including E.coli H7:O157 and related bacteria Fern Farms, Greenlea, Blue Sky Meats and • Developing new value-added products out of Progressive Meats as well as Rabobank and ANZ existing products Bank. It aims to deliver up to $880 million per annum in additional • Maximising meat and bone meal value to on-farm revenue aquaculture feed market. by 2025. The programme balances applied and AgResearch carried fundamental research, including supporting out the Informing graduate students in meat science and Extension Pilot Project engineering and expects to add at least $75 million Design to enable RMPP to exports by 2020. to understand, based This programme supports the Red Meat Sector on proven practice, Strategy’s goal of creating a strong brand position in when and why to use premium markets. progress report different approaches to extension to achieve uptake by sheep and beef farmers. The partners also wanted to inform the design of extension pilot projects being tested by the partnership, and to be able to confidently measure and evaluate their success or otherwise. The study was undertaken over four stages, with each stage informing the direction of the next. Nine types of extension approaches were identified based on differences in the design of each approach and the circumstances in which each approach was successfully applied. The key design and contextual factors, along with success measures for extension projects identified from a literature review, were used to develop a monitoring and evaluation programme logic (or log frame) for each approach. The final stage identified extension studies that were typical of each approach and these were used to detail implementation steps and provide successful examples. This research supports the RMPP goal to help the red meat industry become more profitable, confident and productive.
27 Programme logic for Outcome 4: Improved Meat and Fibre Off-Farm Performance and related opportunities to improve Pan-Sector and Māori Agribusiness Performance.
Pathways to Impacts Example Programmes Outputs Indicators Implementation
Meat protein FIGURE 7 FIGURE combi-foods Understanding of Added value foods – meat characteristics structure, delivery, and component digestion interactions Meat products and New Zealand meat New differentiated processes that meet the Deer Select Prototype food processing and products for existing needs of existing and new products MIA partnership exporting companies and new markets markets programme Understanding food Food assurance assurance issues: microbiology strategies to improve food assurance Value from Quality – shelf life
MIA partnership Meat industry New technologies that Improved processing Prototype processing programme equipment companies, contribute to improved efficiency technologies Food Product Modeller Ovine Automation Ltd. processing efficiency
Wool protein cross- linking Understanding wool Contributions to new Wool quality sheep characteristics and New Zealand strong Higher value differentiated fit-for- screening interactions and fine processors wool products market products for New wool products and exporters Prototype wool new markets Bleach damage products Eco-credentials
28 statement of corporate intent 2015-2020
Outcome 5 improved pan-sector performance
Landscape Many goals are common across the agri-food sector, including market access, environmental performance and biosecurity. International consumers of New Zealand’s products seek food safety and prices they can afford, followed closely by sustainability credentials. New Zealand’s economic growth depends strongly on agriculture sector productivity growth. However, out of 31 countries for which OECD statistics provided the required data for the year 2009, New Zealand ranked 15th in agricultural GDP per worker. This was a substantial decline from 1998, when New Zealand ranked 8th out of 29 countries. If agriculture is to make a major contribution to economic growth in New Zealand, we must accelerate our agricultural productivity growth. Agriculture also has a major influence on the New Zealand environment and the wellbeing of society. It is our most common land use after native vegetation and takes up 39% of New Zealand’s land area. Agricultural practices are increasingly subject to regulation to manage their environmental impacts, so agricultural productivity improvements must go hand-in-hand with reduced environmental impact and improved resource use efficiency, including improved nutrient management. Despite the vital importance of rural land-based resources to our economy, New Zealand is one of the world’s most urbanised countries: 86% of the population lived in urban areas in 2010. If rural land is to be productive, the people who work the land must want to live in rural areas. It will also be vital for economic growth from land and natural capital to go hand-in-hand with environmental, economic and social sustainability. Continued health of our productive and natural ecosystems requires those biological systems to be protected from the threat of invading pest animals, insects, plants, bacteria and viruses. Our country’s island ecosystems are uniquely susceptible to catastrophic pest invasions that can cause hundreds of millions of dollars of damage per year. Biosecurity research strengthens our border security against known and previously unknown threats, and develops new detection technology that reduces the cost of protecting against existing threats. Biocontrol research delivers cost-effective techniques to manage existing pests without creating adverse environmental impacts, such as those resulting from chemical control methods. AgResearch is a major partner in the Better Border Biosecurity collaboration, which is the key New Zealand grouping of biosecurity researchers who work to protect New Zealand from pests of plants.
Our Strategy Improved Pan-Sector Performance impacts are delivered through the innovation pipelines shown in Figure 4 to Figure 7 and specific pan-sector research is shown in Figure 8. These pipelines include many research projects with many research partners, of which some examples are referred to on the following pages.
29 30
progress report improve animal productivity. and emissions gas greenhouse Zealand’s New reduce to approaches breeding-based to lead could project This kgDM. g per 14 about was rate production methane 10 g). mean The to down anextreme 12 at (with less, 25% g/kgDM about produced sheep low-methane-output to 17up g) while anextreme (with intake (DM) drymatter kg per methane 16 gof about produced sheep High-methane-output different. were sheep in these emissions top-ranking journal Genome Research. This paper This Research. Genome journal top-ranking in the published was project Microbiome Rumen the of Sequencing Deep the through undertaken mitigation gas greenhouse agricultural on Research genomics through less methane Funding. An allied paper allied Funding. An Core AgResearch and Centre Research Gas Greenhouse Agricultural Zealand New Consortium, Research Gas Greenhouse Pastoral the Emission Research, Livestock in Partnerships MPI Global the Energy, of Department the US of Science of Office the from investment had work The sheep. methane-emitting low versus in high expression gene in differ methanogens that showed 44 showed why the methane methane the why showed
43
SCIENCE FOR IMPACT FOR SCIENCE will result in increased animal productivity as well. as productivity animal in increased result will it whether and long-term last effects inhibition the if tosee trials running is now team research The partner.” commercial a with toengage looking already are “We milk. or in meat residues no leave and productivity on effects adverse no have term, long in the emissions reduce can compounds these that toconfirm needed are trials Further days. early are these that stressed be must “It results. dramatic such showed trials term short- the because second and, diet grass-based a consuming livestock on work they because First, reasons. two for significant are results “The about. excited get can farmers Zealand New that is news inhibitors methane of test successful the says Pridmore Rick Dr member Group Steering NZAGRC and Chairman PGgRc Ron. says 30%,” least at from period a two-day over production in methane areduction showing in sheep, successfully tested been now have that compounds five identified process screening “The unaffected. system rumen the of rest the leave and function methanogen inhibit would that compounds finding on focussed they in 2010, team AgResearch the by published was methanogen of a genome complete first the when available became that information genetic Using the methane. generate that in ananimal’s rumen microbes the methanogens, kill or down slow that inhibitors of types new is It seeking Ronimus. Ron Dr AgResearch's by led and (NZAGRC) Centre Research Gas Greenhouse Agricultural Zealand New and (PGgRc) Consortium Research Gas Greenhouse Pastoral the by is funded work inhibitor The experiments. in laboratory and searches computer-based through compounds 100,000 than more screened team the which during work, years’ five of result the were findings the said programme, research methane the ordinates co- who Janssen, Peter Dr scientist Principal 30%. least at by trials term in short cattle and sheep from emissions methane reduce can that far so compounds safe animal- different five identified had they 2015 that April 28 on North in Palmerston held Conference Mitigation Gas Greenhouse Agricultural Zealand New the at announced scientists AgResearch methane reduce animal-safe compounds New Meduna. Zealand/Veronika Radio Photo: sheep. in compounds inhibiting methane- test to used chambers respiration the of front in Janssen Peter and Muetzel Stefan Ronimus, Ron members team Research Photo:
oxide (N oxide nitrous anthropogenic toreducing approaches five assessed authors the to 3.3 mt gas emissions. greenhouse reduce to efforts international to This New work supports Zealand’s contributions in 2050. 3.3 tonnes million Scientist Cecile de Klein de Cecile Scientist Principal AgResearch collaboration including aninternational by 2014 in published In apaper n reducing programme. research mitigation methane joint NZAGRC the and PGgRc the of aims four of one is inhibitors methane Developing farmers.” for win-win areal be would This wool. or milk meat, toproduce ability animal’s in the toanincrease lead may it animal, tothe redirected be can energy that of some “If animal,” the Peter. by says consumed forage the in energy dietary the of 9% about represents methanogens rumen by produced “Methane increase from 4.4 million tonnes of N of tonnes 4.4 million from increase to authors the by predicted were emissions oxide nitrous scenario, usual” as a“business Under included. are wastes organic and production fertiliser nitrogen with associated emissions when 87% or emissions, total anthropogenic N anthropogenic total the of 77% about for account systems food from emissions but emissions gas greenhouse global of 8% about up worldwide. N worldwide. these five areas could reduce N reduce could areas five these in improvements credible combining that showed They countries. in affluent humans of diets in the protein animal-derived the lowering and utilisation food improved management, manure improved production, animal improved production, crop improved including emissions, to reduce approaches five assessed authors the However, population. human world’s the by food for demand to 7.5 toincreasing due in 2050 tonnes million 2 O) emissions 2 O makes O makes 2 2 O o-n emissionso-n 45 , 2 O-N emissions to emissions O-N 2 O-N in 2010 in 2010 O-N
progress report while lowering greenhouse gas greenhouse emissions. while lowering increase resource efficiency and farmprofitability, sector pastoral Māori the help to aims project This results.model mitigation the todemonstrate workshops and days using hui/field farm, each around groups discussion toestablish advisors farm their and farms study case four the with work will Brown, Margaret Dr AgResearch’s by led stage, third The models. support decision Forecaster and Mitigator Farmax, using the analysis in-depth receive will farms four These farms. study case four on impacts their and options mitigation of arange model will design, and modelling mitigation project, the of stage second The profile. emission its benchmark and in OVERSEER™ todetermine modelled and profiled be will farm Each Zealand. New across from farms Māori 30 of network representative a selecting and sector pastoral Māori the of aprofile developing by start will project The Research Centre. Gas Greenhouse Zealand Agricultural New the by funded project research is athree-year This farmers. pastoral options for Māori mitigation gas greenhouse toinvestigate Scion and Research &Food Plant Consortium, Research Gas Greenhouse Pastoral NIWA, University, Massey University, Lincoln Research, Landcare DairyNZ, AgFirst, with is working AgResearch network sharing knowledge a 30farm statement ofcorporate intent2015-
2020 31 Programme logic for Outcome 5: Improved Pan-Sector Performance and related opportunities to improve Māori Agribusiness Performance
Pathways to Impacts Example Programmes Outputs Indicators Implementation
Clean water,
FIGURE 8 FIGURE Implications of productive land changing pastoral Sustainable land use farming for the research initiative environment Reduced environmental Animal variation Implications of the Impact of pastoral Farming technology footprint of pastoral in emissions changing environment farming on the supplies farming operations Compounds to reduce for pastroal farming environment methane emissions Approaches and Plant effects on technologies to nitrous oxide build resilient agro- ecosystems North Otago irrigation
Achieving green growth in the NZ pastoral Understanding policy sector implications through Policies informed Life Cycle Analysis models Regional councils, Practical policy solutions in natural resource methodology MPI, rural developed and adopted Approaches management and communities Animal deposition to stakeholder primary production modelling engagement and policy development Rural futures – water policy
32 statement of corporate intent 2015-2020
Outcome 6 improved maori agribusiness performance and vision matauranga
Landscape Our Strategy The Māori economy is a vital element in growing New Our goals to improve Māori Agribusiness Performance aligns Zealand’s overall economy. The Māori asset base rose to with the Business Growth Agenda under “Harnessing Māori $42.6 billion in 201546 – up by $6 billion since 2010 – but the resources’ productive potential”51 , including: productivity of that asset base remains relatively low and only · Work with Māori to identify and promote best practice 47 5.5% of New Zealand’s exports are from Māori businesses . governance models for collectively held resources There is a lot of potential to lift the productivity of the Māori asset base, which would deliver benefits through improved · Partner with Māori, and other primary sector participants, profitability and greater exports, leading to greater wealth and to enable initiatives to advance the productivity of more opportunities for Māori. A 2011 Te Puni Kōkiri report48 Māori agribusinesses states Māori land owners aspire: Our goals are also consistent with those of the Federation of • To retain and improve existing long-term businesses Māori Authorities (FoMA) and Te Puni Kōkiri (TPK). associated with the land, especially farming, and for owners Previous analysis52 has divided Māori freehold land into to use the land directly rather than through lease, and three tiers: • To achieve sustainable financial return for owners, provide · Tier 1: Well developed for agribusiness (20%) employment for the owners where possible and to build a · Tier 2: Under-performing entities. Developed for productive financial base for coming generations. use but underperforming relative to industry PriceWaterhouseCoopers (PwC) analysed the scope to improve benchmarks (40%) Māori freehold land usage and productivity in 2014 for the · Tier 3: Under-utilised lands (40%) Ministry for Primary Industries49. PwC found about 45% of the land was satisfactory in its current use, 39% (mostly in We engage in different ways with each tier, to match what we non-dairy grazing) could have its productivity upgraded in its can provide to their individual needs. current use, and it would be beneficial to convert about 13% For Tier 3, we mentor agribusinesses and link them through our from its current use to a more productive use. The benefit of networks to organisations that can assist them to reach Tier 2 intervening to improve the productivity of Māori freehold land by putting in place existing good practices and technologies. in these ways was estimated at a present value of more than $1 billion in gross domestic product (GDP) terms. We help Tier 2 agribusinesses benefit from networking and clustering, farm optimisation and decision support tools Māori agribusinesses face many challenges to improve their incorporating the Māori dynamic – particularly the need to productivity, including the regulatory framework with which create value over time through operating performance rather 50 they operate, limited capital to invest and governance issues, than capital gain. in addition to the challenges faced by other New Zealand agribusinesses. The regulatory framework is being addressed We help Tier 1 agribusinesses grow through developing through Government’s review of the Te Ture Whenua Māori Act new products and new markets, creating better processes 1993 but the other challenges remain substantial. and thereby taking more control of the value chain. These organisations have the resources to invest in research and development, both by themselves and with the government through the Primary Growth Partnership, National Science Challenges or AgResearch Core Funding. To deliver to all three tiers, we link to potential investors and build relationships and networks that make us a valued partner. In the government sector, these partners include MPI, MBIE, Callaghan Innovation and TPK. To support our delivery, we are building both the capacity of our own people and more effective networks throughout the Māori agribusiness sector. Particular examples include a network focusing on forages, greenhouse gas emissions and benchmarking with Parekarangi Trust farm, Ngāi Tahu and work relating to the Hawkes Bay Regional Growth Strategy53. 33 not a new concept within Māoridom but Delivering to Vision recognises the necessary step change Maori cultural Matauranga needed within AgResearch to stimulate competency programme growth, identify opportunities and AgResearch’s goal to improve Māori To deliver on our Vision Mātauranga capture benefits for a prosperous Agribusiness Performance lies within goals, we must provide our staff with Māori economy. the wider goal of Vision Mātauranga – to the knowledge, skills and experience to unlock the innovation potential of Māori AgResearch is positioned at the core of interact and collaborate effectively with knowledge, resources and people. This the Tihangaia framework to demonstrate Māori. To achieve this, we developed strategic aspiration is relevant to the a willingness to play an integral a cultural competency programme Vision Mātauranga themes of: leadership role in delivering quality customised to the varying needs of outputs to Māori and to symbolise a • Indigenous Innovation: Contributing AgResearch governance, management desire to work in partnership with cross- to economic growth through and staff. For the Board, AgResearch sector partners to achieve this. The three distinctive R&D leaders and key science staff, a series of supporting pou (pillars) each represent a four workshops is helping them: • Taiao: Achieving environmental work stream: sustainability through iwi and hapu • Understand and be aware of the • Pou Hononga – strengthening relationships with land (including social, environmental, economic and long-term partnerships with Mana kaitiakitanga) cultural imperatives that drive Māori Whenua organisations at campus economic development and the • Mātauranga: Exploring indigenous and farm level. Māori agribusiness sector knowledge and RS&T. • Pou Kōkiri – developing high-level • Understand key values and principles To assess progress towards unlocking strategic partnerships across important to Māori and how they the innovation potential of Māori multiple-sectors to stimulate influence decision-making in knowledge, resources and people, development, growth and practice Māori agribusiness AgResearch monitors the indicators change adaptation relevant across • Confidently articulate the relevance shown on p.53. the sector. of Māori needs in science • Pou Wānanga – Board and programmes and research proposals management engage with sector Tihangaia framework • Have an understanding of cultural leaders to gain insight into matters etiquette and be confident in During 2013, the AgResearch Board that are nationally significant for the addressing Māori audiences. adopted the framework shown in Figure Māori agribusiness sector. 9 as a platform for AgResearch to Ongoing coaching and mentoring by develop more meaningful partnerships AgResearch’s senior Māori staff will with Māori. The Tihangaia framework is support these staff in their development through the programme. AgResearch has also recently engaged the services of an external expert as Vision Mātauranga advisor to assist Programme logic for Outcome 5: AgResearch’s Tihangaia framework, us to understand and reposition our with three pou of effective Māori engagement. approach to the Vision Mātauranga for stronger revenue and change. FIGURE 9 FIGURE
Pou Hononga AGRESEARCH’S GOAL TO IMPROVE Mana Whenua (Campus and MĀORI AGRIBUSINESS PERFORMANCE Farms) “ LIES WITHIN THE WIDER GOAL OF VISION MĀTAURANGA – TO UNLOCK THE INNOVATION POTENTIAL OF AgResearch MĀORI KNOWLEDGE, RESOURCES AND PEOPLE.
Pou Kōkiri Pou Wānanga High Level Strategic Māori Agribusiness Partnerships Forum (Sector and (SCI Impact) Engagement)
34 statement of corporate intent 2015-2020
100,000 hectares of maori land
AgResearch and Te Tumu Paeroa: the new Māori Trustee, signed a Memorandum of Understanding (MOU) in 2015 which signifies a new long-term relationship for the future of Māori agribusiness in New Zealand. Te Tumu Paeroa manages 100,000 ha of Māori land and has wide-ranging research opportunities to optimise Māori farm performance. Jamie Tuuta, the Māori Trustee and head of Te Tumu Paeroa, signed the MOU with Chris Koroheke, AgResearch’s Portfolio Leader Māori Agribusines (left and right, in image across). “AgResearch’s committment is to contribute to and support the growth of Māori agribusiness,” says Chris. “Te Tumu Paeroa’s vision is to mobilise Māori land,” says Jamie. “Much of our work is to enable Māori to achieve progress report higher commercial aspirations for their land and assets and grow their value in a sustainable manner. We are always seeking to partner with organisations MUCH OF OUR WORK IS TO that have capabilities that assist us to provide benefits ENABLE MĀORI TO ACHIEVE to the owners that we work on behalf of.” “ HIGHER COMMERCIAL An initial project will enable AgResearch to consider ASPIRATIONS FOR THEIR LAND the potential and Te Tumu Paeroa’s vision for the land AND ASSETS AND GROW THEIR under its management. VALUE IN A SUSTAINABLE MANNER. WE ARE ALWAYS This MOU will help Te Tumu Paeroa achieve its vision to mobilise Māori land and assets to create this SEEKING TO PARTNER WITH generation’s legacy. ORGANISATIONS THAT HAVE CAPABILITIES THAT ASSIST US TO PROVIDE BENEFITS TO THE OWNERS THAT WE WORK ON BEHALF OF.
35 international As well as working in New Zealand, AgResearch also works overseas where there is activities benefit to New Zealand.
Switzerland, Thailand, UK, USA, Overall direction Examples of Uruguay and Vietnam. international work There are four areas where it is AgResearch scientists are also appropriate for AgResearch to carry out AgResearch scientists collaborate with involved in the Global Agenda for international work, under our Statement scientists in research organisations Sustainable Livestock and the European of Core Purpose: around the world, leading to about half Commission’s Horizons 2020 research • National, sector or company of AgResearch’s journal publications and innovation framework programme. initiatives where we can add having international co-authors. These multi-stakeholder platforms foster collaborations in which excellent science supporting R&D capability An example is AgResearch’s involvement is contributed to New Zealand as much • Direct science collaboration to in the Livestock Research Group as New Zealand scientists contribute ensure international class science, of the Global Research Alliance on excellent science to their international access intellectual property Agricultural Greenhouse Gases. This collaborators. and capability group is co-chaired by Dr Harry Clark54 of the AgResearch-hosted New Zealand AgResarch is a member of a Ministry of • Science diplomacy to support Agricultural Greenhouse Gas Foreign Affairs and Trade (MFAT) panel New Zealand’s international profile Research Centre. that is intended to deliver its expertise to and free trade agreements developing countries through the New Participating countries include • Direct requests from international Zealand Aid Programme. AgResearch Argentina, Australia, Brazil, Canada, companies for R&D capability that do is also involved in a project in Uruguay Chile, China, Colombia, Costa Rica, not conflict with the interests of New under the New Zealand Aid Programme Denmark, Finland, France, Germany, Zealand or our sector partners. with partners Instituto Nacional de Ghana, Indonesia, Italy, Ireland, Japan, Investigación Agropecuaria (INIA) and Malaysia, Mexico, the Netherlands, New Plan Agropecuario (PA) that commenced Zealand, Norway, Peru, Philippines, in December 2013. AgResearch scientists Republic of Korea, Spain, Sweden, Dr Liz Wedderburn, Dr Trevor Jackson, Oscar Montes and Dr Margaret Brown are working to improve the profitability and viability of family farms in Uruguay without damaging the environment. international collaboration
AgResearch scientists collaborate with scientists in research organisations around the world, leading to about half of AgResearch’s journal publications having international co-authors.
36 trade relationships with China. China. with relationships trade and diplomatic Zealand’s New supports work This Commission. Guizhouthe Agriculture by supported and University Lanzhou Technology, & Science Agriculture Pastoral of College Zealand, in New China of Republic People’s the of Embassy the by sponsored and recommended was award The work.” Phil’s of great is aresult as This incomes. farmer and in productivity improvement significant with pasture, green Zealand New resemble now desert almost tobe used that areas “Huge impact. animportant had in China Phil’s work Worker, Carl said toChina, Ambassador Outgoing Square.” Tiananmen in People the of Hall Great in the participants many so with and Premier the by run a ceremony in toparticipate experience exciting and humbling a was later, certainly it visits 60 and years “Thirty involved. me got and project in the involved was Brougham, Ray Dr Director, the and Division DSIR Grasslands with Iwas time the At Dushan. at farm amodel toestablish government Chinese the by contracted were Zealanders New some where Guizhou of province southwest in 1983 in the began in China involvement “My award. the receive to delighted was He years. 20 than more after model asuccessful is still which region in Karst farm dairy type grazing first the establishing supervised Phil in China. production agriculture grassland accelerating and capacity research enhancing staff, technical Chinese many trained has he and research science seed forage todevelop institutions other and University Lanzhou assisted also He region. in the performance economic and environmental improved so, in doing and management, and establishment pasture selection plant through fertility soil improve to organisations other Commission and Agriculture Guizhou the University, Lanzhou with worked Phil China. towestern techniques and systems farming grassland Zealand-style New in introducing instrumental been also and 1980s early the since production livestock and grassland on projects R&D in 30 involved been has He Wan Gang. Technology of Science of Minister and Keqiang Li Premier Vice Jinping, Xi President including people, 2,000 than more by attended People, the of Hall Great in The a ceremony at award the received Phil in 1995.inception its since organisations international two and scientists foreign 94 to only made been has award The agriculture in China. toadvancing commitment Phil’s 30-year recognised China of Republic People’s the of Award Cooperation Technology and Science International 2014 The 2015. in January Beijing in aceremony at scientists foreign for award highest China’s received Rolston Phil Dr AgResearch’s commitment 30-year SCIENCE FOR IMPACT FOR SCIENCE
progress report value products through evidence-based science. evidence-based through value products added Zealand’s New of exports supports work This convention. the during programme Shorn toCP Wools’ up Just signed retailers more 22 and high was wool selling in Confidence connections.” new to make anopportunity as well as conference the attended who industry in the people with to reconnect achance also was It well. as story AgResearch the totell I got but retailers, tocarpet direct story wool Zealand New the totell I get did only “Not levels. many on worthwhile was conference this toattend time the investing says Andy website. their for presentation the giving Andy filmed later they much so presentation conference wool basic the liked Global CCA Andy. says stand,” the on be would Zealand New from Wool” “Dr that intercom the over announce would “They benefits. product understand wool’s them tohelp to retailers directly totalk available also was Andy floor. the from questions many attracting brand, Zealand New the with association its and wool of story the on presentations gave Andy sales. and business operations their toimprove need they tools and information the with retailers One Carpet provide helped conference The DC. 2015 in Washington January in held Convention Winter Partners Global CCA in the toparticipate Cooper Andy Leader Impact Science AgResearch CP Wool asked States, United tothe carpets wool premium export Through their Just Shorn™ programme Shorn™ Just their Through retailers 22 more
statement ofcorporate intent2015-
55 to to 2020 37 infrastructure fit Our buildings and facilities need to be of a standard to match the world-class for purpose science we are delivering.
• An international centre for collaborative recently signed a Heads of Agreement Innovation Hubs food research (FoodHQ) in with Massey University for our new Food Since our Future Footprint Programme Palmerston North. Science building on the Massey campus. (FFP) was announced in 2012, These initiatives will facilitate more We have developed a comprehensive AgResearch has had a key role in collaboration between researchers support package for relocating staff and developing agricultural, agri-food and and the private sector to accelerate those who have already moved have agri-technology innovation hubs at innovation and enable organisations to found that it has met their needs. Palmerston North and Lincoln. As access facilities and equipment more We maintain a strong focus on well as enabling us to work with other cost-effectively than they would alone. agencies to optimise sector and regional partnership with key industry and development, the Future Footprint Our buildings and facilities need to be regional stakeholders and we continue to Programme will provide us with a much- of a standard to match the world-class share our plans and report on progress needed infrastructure update. science we are delivering. to them. Our plans to co-locate staff and integrate The masterplans for both campuses science and infrastructure facilities with are now complete and design planning Research Infrastructure universities, partner research and sector for new fit-for-purpose facilities at organisations include: Lincoln, the food science building at Delivering sophisticated laboratory- Massey University, and redevelopment based research means an ongoing need • A world-class agricultural research and of glasshouses at our Grasslands site for specialised and expensive laboratory education hub at Lincoln is underway. In Palmerston North we equipment. Modern instrumentation has also created huge data volumes and the need for high-performance computing A concept image from the FoodHQ master plan resources. This trend will escalate with technologies such as Next Generation Sequencing being applied to underpin many research areas. Several nationally-funded collaborative initiatives are available to help FIGURE 10 FIGURE AgResearch meet its research equipment needs. These include New Zealand Genomics Limited (to provide advanced high throughput instrumentation and high capacity computing resources) and the National eScience Initiative (to provide supplementary High Performance Computing capability), coupled with REANNZ (Research and Education Advanced Network New Zealand Ltd – formerly the KAREN network) to provide high speed networks. Improving AgResearch’s internal infrastructure is also important. In
38 Scopus citation counts. citation Scopus to links and software bibliographic EndNote tothe export automated include will AgScite future, In the needs. reporting tomeet outputs science AgResearch all store electronically and releasingassociated information with risk minimise business review, peer internal through quality science maintain to easier it make They time. some for wish-list AgResearch’s on been have that needs fulfilling are systems new The into an online workflow process to: process workflow anonline into combined which projects separate two of culmination the are systems These AgScite. called Repository anOutputs and Process Release Outputs anew in place put AgResearch 2014/15, during Mike Dodd and Maqbool Nauman scientists by led a project • • • for all AgResearch staff. AgResearch all for and by reporting and retrieval search, storage, permanent for to AgScite outputs text full approved Feed and approval, output and review quality science our Co-ordinate process release outputs the Initiate
progress report FIGURE 11 seed-fund project. a and funds contestable for bids joint include initiatives These programme. construction significant tothe in addition working of way anew foster will that initiatives establishing are partners founding the this To facilitate Hub’s tothe is collaboration. success Central time. same the at partners industry agri-sector by Hub the at facilities of development the by complemented be will This organisations. partner the through Government Zealand New the by Lincoln at of, facilities growth or in, investment for plans to significant is linked development of phase initial The Hemisphere. Southern in the research land-based and environmental of concentration significant most the forming scientists 900 than more have —will Research &Food Plant and DairyNZ AgResearch, University, Lincoln between -apartnership Hub Lincoln The outcomes. environmental and economic sustainable enhance and sector primary the of performance and productivity the to transform education and research industry, together bring will Lincoln, at based cluster, innovation The extension. accelerating and talent growing business, growing though sectors landbased Zealand’s New from exports of growth the support and excellence land-based through wealth is Hub togrow Lincoln the of vision The partners 5 founding A concept image from the Lincoln Hub master plan Hub master Lincoln the from image A concept — 3.0
MASTERPLAN
statement ofcorporate intent2015- 2020 39 core funding Core Funding enables us to invest directly in science, technology transfer investment and capability building.
Overview AgResearch’s Core Funding was invested during FY15 as shown in Table 2. The performance of each Core-Funded project that was proposed to continue after June 2015 was assessed from January to March 2015. All but one project were performing well and continued to be aligned with industry stakeholder needs. One project was terminated to rebalance AgResearch’s investment portfolio and meet changing stakeholder needs. Within the capability expense area we will fund new key positions, award a Science Prize and a Technology prize (see p.44), and also allocate Curiosity Funding to seed new science ideas. AgResearch will fund new positions to meet stakeholder needs as recommended by the Farm Systems and Environment Roadmap and the Food Sciences Roadmap (see p.48). The Science Prize, when awarded, is for a foremost science publication from AgResearch authors within the last five years and the Technology Prize, when awarded, is based on outputs (technology and/or information) that achieve significant stakeholder/ sector impact(s) within the last 36 months (irrespective of when the output was developed). The prizes include Core Funding to the team(s) to pursue new innovative ideas. From the Science Collections and Infrastructure expense area AgResearch funds the Margot Forde Germplasm Centre. This is New Zealand’s national gene-bank for grassland plants and the Centre also hosts the New Zealand Endangered Species Seed-bank. For 2015/16, the Board has allocated up to $3 million of Core Funding for three initiatives that started in 2014/15:
40 statement of corporate intent 2015-2020
TABLE TWO AgResearch Core Funding Investment by Vote output expense or priority area and category
SCP VALUE IN VALUE IN VALUE IN VALUE IN OUTCOME(S)* 2013 /14 , 2014 /15 ( SCI ) 2014 /15 2015 /16 $MILLION $MILLION (ACTUAL) , (PROJECTED), $MILLION $MILLION BIOLOGICAL INDUSTRIES Primary industry productivity A, C, D 25.3 25.5 23.1 21.2 and sustainablity
High value food and biological products A, C 6.8 7.3 8.0 7.7 and processes
ENVIRONMENTAL RESEARCH Climate and atmosphere B, D 0.7 0.7 0.7 0.7 Lands and fresh water (including B, D 1.6 1.3 3.5 3.2 terrestrial ecosystems) HIGH VALUE MANUFACTURING AND SERVICES Novel materials, manufacturing and A, C 1.4 1.4 1.3 1.3 applications
OTHER Science collections and infrastructure A 0.5 0.5 0.5 0.5 Capability 2.6 2.2 1.8 2.0 To be allocated after 1 July 2015 2.3 Totals 38.9 38.9 38.9 38.9 Within the above totals, Core Funding will be applied during 2015/16 in the following categories:
Research 28.6 27.9 National Science Challenges 9.8 10.5 Science collections and infrastruture 0.5 0.5
*See p.3
FOOD PROVENANCE AND »» Validated Functionality: Credibly Investment process ASSURANCE. This project focuses validating health and wellbeing on two specific areas to protect and benefits over and above nutrition, The overall investment process for enhance New Zealand’s food safety which the consumer trusts and for AgResearch’s Core Funds is shown in reputation and integrity: which they will pay a premium. Figure 12. For the 2015/16 year, a process »» Pre-harvest Food Chain Control, FUTURE FARM SYSTEMS. In to seek Curiosity Fund project proposals which will focus on developing partnership with the pastoral agriculture from staff will be run before December methods and processes to reduce industry, this project will: 2015 (after this SCI will be finalised) so food contaminants introduced these funds can be allocated to projects »» Develop a vision of the critical by December 2015. on-farm factors shaping farming systems in »» Traceability, Counterfeit and the future As signalled in Table 2, $36.6M of Origin, which will develop non- core funding for FY16 had been »» Build the capacity to examine the allocated when this SCI was finalised. invasive, real-time testing systems implications of these factors on to verify product origin. The remaining FY16 Core Funding farming systems investments will be made by the Board ADDED-VALUE FOODS. This project »» Define the farming systems that using investment priorities guided by the focuses on adding value to foods could result from these factors six Outcome Areas described in this SCI and ingredients over and above their (see pp.12-35). commodity value. Two specific routes »» Address the knowledge and best suited to New Zealand foods are capability gaps to ensure these being pursued: farming systems prosper. »» Differentiation: Finding and These initiatives have already attracted highlighting key points of considerable interest from industry differentiation in New Zealand partners who wish to co-invest with food ingredients/products while AgResearch in these areas, thus helping leveraging the “New Zealand to grow business investment in R&D as story” and the well-aligned global well as delivering valuable “naturality” food trend science outcomes.
41 42
FIGURE 12 AgResearch’s Core Funding Allocation Process
2. Design projects and approve 1. Setting and communicating Investment Areas Stage recommendations totheBoard for existingprojects,andmakes intoaccount taking pastperformance Management reviewsallproposals, accepted-in-principle forprojectsthatwere proposals Project Managerssubmitfull allocation year’s Approval-in-principle fornext recommendations andprovide SGLs reviewdocuments (newandongoing) proposals Project Managerssubmitshortproject ProjectManagers staff andappoint communicate Investment Areas to Science GroupLeaders(SGLs) strategic intent Investment Areas alignedtothe Management developsasetof strategy session for Core Funding atitsNovember Board confirmsstrategicintent strategy session fortheannualBoard opportunities information onstakeholder needsand Management preparesandcollates year’s budget year’s when itapprovesthenextfinancial Core FundingBoard allocates and shareholders collates informationfromstaff Management engagesand to refine Feedback to refine Feedback Mid May April March February January December November October the year throughout Ongoing statement of corporate intent 2015-2020
43 organisational AgResearch has many initiatives in place to support our people and vitality infrastructure priorities over the next five years.
Prizes to recognise excellent science and technology In 2012/13 AgResearch launched a Science and a Technology Prize to recognise and reward outstanding achievements by AgResearch teams in science and technology. The criteria for these prizes are described on p.40. Science Prize
The paper Trophectoderm lineage determination in cattle56 by members of AgResearch’s Animal Reproduction and Reproductive Technologies Teams received the 2014 AgResearch Science Prize. The lead author on the paper was Debbie Berg, a Senior Scientist in the Animal Reproduction Team. Other authors included Martyn Donnison, David Wells, Ric Broadhurst, David Pearton, Craig Smith and Peter Pfeffer. This work was an excellent fundamental scientific study into the differences FIGURE 13 FIGURE in embryological development between small and large animals. It concluded that findings in small animal models cannot necessarily be extrapolated to larger species, such as cattle, so such studies should be performed in the species of interest. Increasing reproductive success in cattle will be crucial for New Zealand’s long-term profitability and economic growth and the fundamental information about bovine reproduction developed in this study is being used in current research programmes. The paper received very high international coverage, culminating in a News AgResearch’s 2014 Science Prize winners, Dr David Wells, and Views article in Nature57. By June 2014 the paper had already been cited Dr Debbie Berg (lead author) and Ric Broadhurst. 70 times.
44 statement of corporate intent 2015-2020
TECHNOLOGY PRIZE The 2014 AgResearch Technology Prize was awarded to the AR37 novel endophyte technology. The scientists, technicians and teams working with and developing this technology 14 FIGURE included Anouck de Bonth, Stuart Card, Allan Hawkes, David Hume, Sarah Finch, Lester Fletcher, Linda Johnson, Chris Pennell, Wayne Simpson & Lee Sutherland (Plant-Fungal Interactions), Joanne Jensen & Alison Popay (Biocontrol & Biosecurity), Marty Faville, Tom Lyons, Phil Rolston, Doug Ryan & Jana Schmidt (Forage Breeding), Wade Mace (Plant Phenotyping), Syd Easton (Forage Improvement), John Caradus, Bruce Belgrave, Shaun Monk & Dawn Perry (Grasslanz Technology Ltd). 2014 AgResearch Technology Prize winners from left to right: Syd Easton, John Caradus, Linda Johnson, A panel of stakeholders and AgResearch Chris Pennell, Dawn Perry, Tom Lyons, Stuart Card, Alison Popay, Bruce Belgrave, Sarah Finch, Wade senior leaders agreed that the novel Mace, Anouck de Bonth, Marty Faville, Jana Schmidt, Wayne Simpson and Brian Tapper. endophyte technology showed the largest impact of all the nominated technologies, creating substantial economic, environmental and social benefits. It has good pathways to uptake by farmers and is well supported by a strong commercial model and quality science. As well as improving FIGURE 15 FIGURE productivity, novel endophytes also benefit animal health. AR37 (shown in Figure 15) is primarily used in the dairy industry but also has benefits for the sheep and beef industry.
Advisory panels to ensure science quality and relevance
SCIENCE ADVISORY PANEL AgResearch’s Science Advisory Panel (SAP) was established by the AgResearch Trial plots of ryegrass containing AR37 endophyte (centre) and no Board to provide strategic advice on endophyte (either side). research priorities, scientific programme direction and knowledge and technology transfer that assists AgResearch to deliver its Core Purpose. SAP members were selected for their expertise, strategic insight and application in scientific disciplines relevant to agriculture. The members are independent and are appointed on their individual merits, not as delegates or representatives of any group or organisation. The Chair and other members were appointed for an initial term of three years.
45 AgResearch’s Science Advisory Panel FIGURE 16 FIGURE
Panel members from left Bruce German (UC Davis), John Oldham (SRUC – retired), Brian Keating (CSIRO), Frank O’Mara (Teagasc), Peter Hunter (University of Auckland). Absent: Rick Dixon.
AGRESEARCH’S SAP MEMBERS AND THEIR AREAS OF EXPERTISE: STRATEGIC USER ADVISORY PANEL Dr Brian Keating (Chair) » Executive Director Agriculture The CRI Taskforce Report recommended Food & Health, CSIRO, Dutton Park QLD, Australia that each CRI have a Strategic User Farm Systems Research Advisory Panel (SUAP). The AgResearch Board gains independent advice from Professor Richard Dixon » Director of the BioDiscovery Institute strategic users by inviting experts to University of North Texas, Denton, TX, USA discuss specific issues with the Board Plant Sciences and management several times each year. Each meeting leads to a greater Professor Bruce German » Professor appreciation of the issues and actions to Department of Food Science & Technology develop AgResearch’s science and sector University of California Davis, CA, USA engagement pertaining to the topic. Food Sciences During 2014/15, the AgResearch Board met with the following end-users to seek Professor Peter Hunter » Professor of Engineering Science their independent advice: University of Auckland • Traci Houpapa (Chair, Federation of Bio-engineering and math modelling Mâori Authorities)
Dr John Oldham » formerly Head of Research • Board members of Beef + Lamb Scottish Agricultural College (2002-2009), Edinburgh, Scotland New Zealand Animal Sciences • Senior executives of Westpac Bank • Mavis Mullins (Chair of the Poutama Dr Frank O’Mara » Director of Research Trust, Rangitane, Atihau nui a Teagasc, Carlow, Ireland Paparangi & Te Arawa) Environmental Sciences • Andy Ramsden, sheep breeder and winner of the Allflex sheep industry innovation award at the 2014 Beef + Lamb New Zealand Sheep The SAP provides independent high-level strategic advice to the Board Industry Awards but it is not responsible for making decisions on AgResearch’s current • Colin Brown, Managing Director, or future work programme, or evaluating the balance of activity and TracMap resource allocation undertaken by AgResearch; these responsibilities rest with the Board. • The Board of DairyNZ.
46 statement of corporate intent 2015-2020
Growing talent and supporting change 2 days a week With AgResearch’s rapid organisational change secondment and resourcing challenges, we have to grow our talent, build staff skills and engage staff more effectively than we ever have before. Beyond our traditional mentoring and peer review approaches to improve individual performance, we identified AgResearch Research Associate Natalie Mapp strengthening our leaders’ skills in coaching as a (pictured right) is spending two days a week route to a higher performance level. We therefore in the Dairy Goat Co-operative (DGC)‘s offices instituted a Coaching Culture programme for the acting as a conduit between AgResearch, DGC 2015/16 and 2016/17 financial years, starting with and the farmers. senior leaders and progressing to junior leaders. The secondment idea came up in 2014 as an We also put in place a Navigating Change opportunity to strengthen R&D integration programme designed to help people understand and opportunity what happens and what they can do to help identification, themselves, colleagues and families, as we according to Science implement changes within AgResearch. Between Impact Leader briefings, workshops and leaders’ sessions, 821 Warren King. “Both person-hours were invested in this in FY14 and organisations thought the programme continues as required. it would be easier if one person was To maximise staff retention during our Future responsible for Footprint initiative we developed a Relocation communication.”
Support package after many conversations with progress report staff from across AgResearch. The comprehensive By mid-October 2014 package provides tools, resources and Natalie was at her DGC information to support staff members and their desk two days a week as the Farmer families over the coming years, including housing Science Liaison. assistance, a two-year salary guarantee, paid Natalie is relishing the opportunity to work so leave, and help for spouses. Staff who asked to closely with client and farmers. relocate during 2014/15 have already found this package beneficial.
BEING PART OF THEIR TEAM TWO DAYS A WEEK HAS BEEN A “ GREAT EXPERIENCE. THERE IS A MUCH STRONGER WORKING RELATIONSHIP AND MORE TRUST, AT A LEVEL THAT CAN ONLY BE ACHIEVED WHEN YOU WORK TOGETHER FROM THE SAME LOCATION.
47 transforming our AgResearch’s science capability is the core of our ability to create impact for capability our sector.
Roadmaps to strengthen science
OUR ROADMAP CYCLE AgResearch has established a five-year cycle of “Science Roadmap” projects. Each Roadmap focuses on a key science area and informs planning with respect to positioning, capability, infrastructure, partnerships and other prerequisites to delivering our SCI’s target outcomes. Roadmaps developed to date have been (with the year in which they were reported to the Board): 2012: Animal Sciences 2013: Adoption & Practice Change; Forage Sciences 2015: Farm Systems & Environment; Food Sciences 2016: Bio-Products Our Adoption & Practice Change Roadmap implementation is described on p.10.
FARM SYSTEMS AND ENVIRONMENT ROADMAP The Farm Systems & Environmental Roadmap, reported to the Board early in 2015, was the last Roadmap in our first cycle to focus on our on-farm science activities and capabilities. It had an important role to integrate the other largely on-farm Roadmaps (Animal Sciences, Forage Sciences and Adoption & Practice Change) through “systems thinking”. This Roadmap sought to re-position our Farm Systems and Environmental Sciences capabilities to deliver future-focussed, integrated, world-leading science. The science aims to contribute to sustainable, profitable farming enterprises in which environmental considerations make a positive contribution, rather than requiring trade-offs between economic and environmental impacts. Overall recommendations included: 1. Continuing to support current industry/policy drivers while shifting towards work on future farm systems that consider environmental sciences, value chains and markets 2. Integrating activity across teams by establishing at least one large farm- system based trial by June 2017 3. Recruiting and/or developing new skills to build a world-standard farm systems and environmental sciences capability 4. Making a long-term resource investment to support our Māori partnerships, to gain trust and confidence o nga kaitiaki o nga taonga tuku iho, and to help the Māori agribusiness sector understand and define its own R&D needs.
48 statement of corporate intent 2015-2020
FUTURE ROADMAPS We will complete our Food Sciences Roadmap in 2015, a Bio-Products Roadmap in 2016 and then revisit the cycle commencing in 2017.
FOUR INVESTMENTS TO GROW CAPABILITY All our Science Roadmaps to date have recommended we invest to grow our scientific capability in specific areas that are needed by our stakeholders. To do this, we have invested Core Funding to initially pay personnel and operating costs so these new recruits can get their science underway while working to understand stakeholder needs and building relationships that lead to stakeholder co-investment. Some of the new staff we recently brought on board through those investments are:
Dr Stephen Miller Dr Kirsty Hammond The 2012 Animal Sciences Roadmap Kirsty (Te Whānau-ā-Apanui) has been recommended that we appoint a new appointed to the Animal Nutrition Quantitative Genetics Senior Scientist and Physiology Team. She completed position to provide leadership in a PhD at Massey University, with quantitative genetics. co-supervision from AgResearch and DairyNZ researchers. In late 2011, she Having been an international leader in obtained a post-doctoral position at the his field and a trusted thinker within the University of Reading, UK to work with Canadian beef and sheep industry, Steve Dr Chris Reynolds, an internationally joined us from the University of Guelph recognised science expert in ruminant in Canada, in 2013. nutrition and nitrogen metabolism. Steve is focusing on identifying and Kirsty’s research background and delivering quantitative genetic research science networks are at the nexus of that is strategically relevant to industry, improving animal productivity while maintaining scientific excellence, minimising environmental impacts from identifying and galvanising strategic livestock. Kirsty represents a strong industry partnerships to produce new investment in talent for the future. research proposals and networking with and presenting seminars to industry stakeholders in the wider pastoral community.
Dr Li Day Dr Kioumars Ghamkhar Li joined AgResearch as a Principal A senior research scientist, Kioumars is Scientist and Science Impact Leader the new Director of the Margot Forde – Dairy Processing & Supply in 2014, Forage Germplasm Centre. having previously been a Principal He joined AgResearch in October Research Scientist and Group Leader 2014 from Australia, where he was for the Food Structure & Chemistry with the Victorian Department of Group in CSIRO Animal Food & Health Environment and Primary Industries. He Sciences, based in Werribee, Melbourne, was previously at the Centre for Plant Australia. Li’s research interests and Genetics and Breeding at the University expertise relate to the structure, of Western Australia, Perth. assembly and physical functionality of bio-macromolecules, protein Kioumars has a M.Sc. (Genetics & biochemistry, soft-matter rheology and Evolution) from the University of Isfahan, food processing. Iran, and a Ph.D (Plant Molecular Phylogeny and Evolution) from the Li completed her Bachelor of Science University of New England, New South in Chemical Engineering in China Wales, Australia. In his previous roles, and a PhD in Food Biosciences at the he developed methodologies for core University of Reading, UK. She is fluent collection development and germplasm in Chinese and holds a qualification for rationalisation and provided core second language teaching. collections for forage legume species in Soon after arriving in AgResearch, Western Australia. He is helping further Li was asked to lead our Food evolve those methodologies using new Sciences Roadmap. molecular techniques at AgResearch.
49 creating impacts for agriculture
f inancials
In executing this SCI, AgResearch will implement its Reporting to shareholding ministers Future Footprint programme to collaborate with like-minded organisations and have World-class AgResearch makes available to the Shareholders the following documents and information: science facilities.
Subject to the assumptions noted below, the projected QUARTERLY REPORTS financial performance for AgResearch is shown in Table 3. These include: Because of the significant changes in play over the normal • financial statements SCI 5 year reporting period that result from Future Footprint, and their impact on AgResearch’s financial performance, the • comparisons with budgets and comments on financial Financial Confidential Section includes 10 year projections to activities for the quarter show the ‘normalised’ position post that programme of work • comment on research achievements and comparisons of being completed. such achievements with business plans.
HALF-YEARLY REPORTS Assumptions These include: The assumptions that underpinned our previous three SCIs • unaudited financial statements and notes (including and the Future Footprint Business Case were developed in 2011. accounting policies) for the half year within two months of A Future Footprint Business Case update has recently been the half year prepared and the financial projections in this SCI reflect that Business Case. • comparative actual figures for the corresponding period of the previous financial year The material assumptions underpinning the financial projections for FY2016 to FY2020 are described in detail in the • a commentary on the operations and overall performance Financials Confidential Section. Those assumptions include: for the period 1. Revenue growth of 3% from FY2015 to FY2020 • a statement of responsibility 2. Science and non-science personnel costs will increase by • a statement that the CRI has operated in accordance with approximately the value of the Consumer Price Index (CPI) the principles set out in Section 5 of the CRI Act and the each year. Companies Act 1993 during the period If any of the above assumptions do not prove accurate, • commentary on progress towards achieving annual including delays in new revenue, there may be a material performance targets (financial and non-financial). impact on our ability to deliver on these projections. The Board will monitor progress in this area and take appropriate action if ANNUAL REPORT we appear unlikely to meet these projections. An Annual Report of the operations of AgResearch is delivered to the Shareholding Ministers within three months of the end of each financial year. In it, the Board incorporates: Accounting policy • Audited consolidated financial statements for that financial AgResearch’s financial statements are prepared in accordance year, consisting of a report of the operations of AgResearch with the requirements of the Companies Act 1993, the Financial and its subsidiaries during that financial year, statements of Reporting Act 1993, the Crown Research Institutes Act 1992, the financial position, comprehensive income and cashflows, Public Finance Act 1989 and Generally Accepted Accounting including budget (as established at the beginning of Practice in New Zealand (NZ GAAP). The financial statements, the year in the SCI) and statements of commitments, including the financial information presented in this SCI, contingent liabilities, accounting policies and such other comply with the New Zealand Equivalents to International statements as may be necessary to show the financial Financial Reporting Standards (NZ IFRS) and other applicable results of the operations of AgResearch and its subsidiaries financial reporting standards as appropriate. during the financial year and their financial position at the end of the year. A full Statement of Accounting Policies and a table of risks relating to this SCI are provided on AgResearch’s website at • Comparative information for the previous financial period www.agresearch.co.nz. There have been no material changes in • The auditors’ report on these financial statements. accounting policies since the 2015 Annual Report. • A statement of responsibility • A report on AgResearch’s performance as a good employer
50 statement of corporate intent 2015-2020
TABLE THREE Overview of projected financial performance for the five years ended 30 June
2014 2015 2016 2017 2018 2019 2020 ACTUAL ACTUAL BUDGETED PROJECTED PROJECTED PROJECTED PROJECTED $000 $000 $000 $000 $000 $000 $000 Revenue 160,758 155,379 147,940 149,800 151,414 158,690 160,519 Operating surplus 1,031 304 (2,972) 1,271 (1,453) (134) 3,916 Total equity 216,879 226,500 223,976 224,807 232,673 232,232 234,701 Note: The November forecast of 2016 is materially the same as the 2016 budget.
• A corporate social responsibility report • transactions that affect a company’s ownership of a subsidiary or a subsidiary’s ownership of another entity • A report against financial and non-financial performance (provided that transactions which include “drag-along” indicator targets set in the SCI clauses that compel AgResearch to sell interests at a future • Any direction given by the Shareholding Ministers date at the direction of the investors shall be valued at the in writing. time of the investment transaction), and The Annual Report will comply with the annual reporting • other transactions that fall outside the scope of the provisions in Part V of the Public Finance Act 1989, Section 17 definition of the company’s core business or that may have of the Crown Research Institutes Act 1992 and the Companies a material effect on the company’s science capabilities. Act 1993. The Board will advise shareholding Ministers in writing MISCELLANEOUS before entering into any transaction related to property and commercialisation activities below this threshold in accordance Any other information required by the Shareholding Ministers with notice requirements agreed between the Ministers and in their capacity as Shareholders. AgResearch from time to time.
Dividend policy Activities for which AgResearch seeks The Company’s policy is that it will return surplus cash compensation from the Crown to shareholders in the form of a dividend when no sound investment opportunities (including reinvestment, At the date of this SCI, no compensation has been sought from commercialisation, capital expenditure and the retention of the Government. important capabilities) exist. It is forecast that no dividends will be paid in the year ending Estimate of current commercial value 30 June 2016. AgResearch was purchased in December 1992 for $56.9 million. The Board’s estimate of the current commercial value of the Acquisitions and divestment of assets Crown’s investment in the Group over the forecast period is approximately $230 million. This value reflects the midpoint As required by section 13(1)(d) of the Crown Research Institutes of total equity over the forecast period to FY2020 and is based Act, AgResearch will not acquire shares that give it substantial on the Fair Values derived from the Company’s accounting influence in or over a company; or acquire an interest in any policies. The value of the Crown’s investment, which was $228 partnership, joint venture, or other association of persons, or million at 30 June 2015, will increase to $235 million at 30 June an interest in a company other than in its shares except after 2020. AgResearch’s assets are primarily land (including farms) written notice to the shareholding Ministers. and buildings, valued at market value, and therefore this is an The Board will obtain prior written consent for any transaction appropriate proxy for AgResearch’s commercial value. or series of transactions involving a full or partial acquisition, disposal or modification of property (buildings, land and capital equipment) and other assets with a value equivalent to or greater than $10 million. The Board will obtain prior written consent for any transaction or series of transactions with a value equivalent to or greater than $5 million involving: • the acquisition or disposal, in full or in part, of shares or interests in a subsidiary, external company or business unit
51 creating impacts for agriculture
Key Performance Indicators for 2015/16, at a glance We aim to achieve these key scientific and organisational milestones in 2015/16.
Strategic Goal Objective Key Performance Indicators for FY16
Comprehensive understanding of the Grow our understanding of the sector >90% of surveyed stakeholders rate sector, including key and emerging and the sector’s recognition of AgResearch's understanding/contribution players and their relationships. that understanding. to their strategy as good or better.
Stakeholders Grow commercial revenue through Co-owned strategy with >$42M of stakeholder-driven commercial closer alignment of stakeholder and key stakeholders. science revenue secured. AgResearch strategic goals.
Operating Profit budget achieved. Sustainable financial performance to Achieve financial targets. enable achievement of strategic goals.
Financial Net Profit Before Tax budget achieved.
Engagement Index (EI) from the staff Staff engagement increased. survey of >60.9. Innovative and high performing workforce. Total Medical Treatment Injuries (MTI) People We will all have a safe workplace. and MTI causing lost time <70 per year. No serious harm accidents.
R&D solutions which meet sector Ensure AgResearch has the research needs and contribute to Impacts and portfolio, and capabilities that will >436 FTEs in research teams. Outcomes identified in our meet current and future stakeholder Complete a Bio-Products Roadmap. strategy (SCI). needs and deliver our strategy.
> 1.12 Scopus-indexed papers published Research Deliver relevant, high quality, reliable per scientist. Quality, relevant science. R&D outputs that meet stakeholder needs and deliver to our strategy. > 1.34 industry-funded reports published per science staff member.
Robust business processes and Improve the effectiveness and Increase productivity to $222k revenue per systems that enable delivery efficiency of business processes. FTE. on strategy.
AgResearch infrastructure is fit Commence construction of new facilities Infrastructure aligned to strategy.
Enabling systems for purpose. at Lincoln and Palmerston North.
52 statement of corporate intent 2015-2020 performance indicators
AgResearch measures its performance using quantitative non-financial or semi-financial indicators that tell us when and in what areas our performance may be satisfactory or unsatisfactory. These indicators do not directly show that we are delivering value to our sector but they are necessary, if not sufficient, leading measures of that value. Some indicators included in our 2014 SCI were evaluated as less relevant or less useful and so are not included in this SCI. Target values are shown for each indicator, with the values from our 2015 Annual Report also shown.
generic cri performance indicators
ID INDICATOR DEFINITION FY16 TARGET FY15 RESULT
G.1 End user Revenue per FTE from commercial sources $98k $102k collaboration
G.2 Research Publications with collaborators. (Percentage of publications a) 19% a) 20% collaboration with a) only AgResearch authors, b) with other NZ authors, b) 33% b) 29% c) with international authors or d) with a combination of NZ c) 23% c) 29% and international authors) d) 25% d) 21%
G.3 Technology & Commercial reports per scientist FTE. 2.1 1.0 knowledge transfer
G.4 Science quality Impact of scientific publications. (The average value of 2.7 2.62 2-year citations per document for scientific journals assessed by SCImago in which AgResearch staff published during the year, weighted by the number of AgResearch publications in each journal. The reference figure is for the 2014 calendar year.)
G.5 Financial indicator Revenue per FTE, based on average FTEs over the year. $222k $213k
agresearch-specific indicators of end-user engagement and science relevance
ID INDICATOR DEFINITION FY16 TARGET FY15 RESULT
1.1 Confidence of (a) Percentage of relevant funding partners and other (a) 75% 70% stakeholders end-users that have a high level of confidence in the CRI’s (b) 85% 80% ability to set research priorities, and (b) the percentage of stakeholders who were satisfied with their collaboration or partnership with AgResearch
1.2 Revenue from Revenue coming directly from stakeholders. Excludes $42M $48.7M stakeholders revenue from central Government, includes co-investment from stakeholders with central Government.
53 creating impacts for agriculture
agresearch-specific operating indicators of knowledge and technology transfer
ID INDICATOR DEFINITION FY16 TARGET FY15 RESULT
2.1 Collection requests Number of requests and enquiries for access to 3000 3079 AgResearch’s publicly available collections.
2.2 Stakeholder reports Number of client reports submitted by AgResearch staff. 250 264
2.3 Trade publications Number of published articles in stakeholder relevant outlets, 130 NA including trade magazines, applied industry journals, popular media and stakeholder blogs
2.4 Licensing deals (a) Total revenue, (b) number and (c) percentage of (a) $10M $10.5M licensing or other deals of AgResearch-derived IP (including (b) 9 11 technologies, products and services) with New Zealand and (c) 55% 36% international partners per annum
2.5 Adoption Percentage of relevant end-users who have adopted 92% 90% knowledge and/or technology from AgResearch
agresearch-specific operating indicators of delivery to vision matauranga
ID INDICATOR DEFINITION FY16 TARGET FY15 RESULT
3.1 Effective Percentage of Māori agribusiness partners and end-users 100% 67% relationships with who rate AgResearch as “good” or better for effective Māori collaboration and partnering in the annual customer relationship survey
3.2 Revenue from Revenue (direct and leveraged) from Māori $1.6M $1.04M Māori stakeholders agribusiness stakeholders
agresearch-specific operating indicators of research collaborations and linkages
ID INDICATOR DEFINITION FY16 TARGET FY15 RESULT
4.1 International (a) Number and (b) percentage of peer-reviewed scientific (a) 150 171 linkages papers co-authored with an international author (b) 46% 51%
(c) Number of technologies licensed in from offshore (c) 1 0
4.2 Research (a) Number and (b) percentage of joint scientific peer- (a) 250 270 collaboration reviewed publications and (c) number and (d) percentage of (b) 84% 84% IP outputs with other New Zealand or international research (c) 2 0 institutions per annum (d) 20% 0%
54 statement of corporate intent 2015-2020
agresearch-specific operating indicators of science quality
ID INDICATOR DEFINITION FY16 TARGET FY15 RESULT
5.1 Publications in peer- Number of Scopus-indexed scientific papers per 1.2 1.26 reviewed scientific scientist FTE. journals
agresearch-specific non-financial indicators of organisational vitality
ID INDICATOR DEFINITION FY16 TARGET FY15 RESULT
6.1 Staff engagement Staff survey result for overall level of staff engagement 61.2% 58.2%
workforce composition and demographics 58
ID INDICATOR DEFINITION FY16 TARGET FY15 RESULT
7.1 Total FTEs and Excluding casuals and fixed term employees of less than 6 % of total FTEs months duration, by: a) Research Teams a) 388.67 448.95 b) Research Support b) 177.54 177.03 c) Other c) 93.37 76.14 d) Total d) 659.58 702.12
7.2 Total FTE and Divided into: Headcount in a) Scientists FTE a) 241.90 267.56 Research Teams b) Scientists Headcount b) 266 286 c) Technicians/Technologists FTE c) 165.47 212.99 d) Technicians/Technologists Headcount d) 189 248
55 creating impacts for agriculture
financial performance indicators 2014 2015 2016 2017 2018 2019 2020 ACTUAL ACTUAL BUDGETED PROJECTED PROJECTED PROJECTED PROJECTED $000 $000 $000 $000 $000 $000 $000 Operating Margin % 7.1% 6.5% 4.8% 7.9% 7.4% 9.7% 13.1% EBITDAF per FTE $000’s 14 11 18 17 23 32 Quick Ratio 3.5 3.9 3.5 2.4 0.3 (0.1) 0.3 Interest Coverage 1,888 2,883 999 999 13 9 15 Adjusted Return on 1.9% (0.1)% (1.8)% 0.4% (0.9)% (0.3)% 1.5% Equity % Revenue Growth % 0.9% (3.3)% (4.8)% 1.3% 1.1% 4.8% 1.2% Capital renewal (2.8) (0.7) 2.0 3.8 7.1 2.4 0.6 Equity Ratio % 82.4% 83.2% 84.4% 85.1% 85.0% 84.6% 84.3% (Please refer to the financial assumptions shown on p.50)
56 statement of corporate intent 2015-2020 glossary of abbreviations
ACC Accident Compensation Corporation INIA Instituto Nacional de Investigación Agropecuaria AgDocs AgResearch’s internal document and records IP Intellectual Property management system, based on MBIE Ministry of Business, Innovation and Employment Microsoft Sharepoint ME Metabolisable Energy (e.g. of forage) BCC BCC turns innovative ideas into thriving new businesses (http://www.thebcc.co.nz/) MEDAP Māori Economic Development Action Plan BCG Bacillus Calmette–Guérin, a vaccine MfE Ministry for the Environment against tuberculosis MS Milksolids BERL Business and Economic Research Ltd MPI Ministry for Primary Industries BNZ Bank of New Zealand NAIT National Animal Identification & Tracing CRI Crown Research Institute NIWA National Institute of Water and Atmospheric CRW Clover Root Weevil Research, a CRI CSIRO Commonwealth Scientific and Industrial Research NZM New Zealand Merino Organisation (of Australia) NZPBRA New Zealand Plant Breeding and Research DCANZ Dairy Companies Association of New Zealand Association DIGAD Dairy Industry Good Animal Database OECD Organisation for Economic Cooperation and Development DINZ Deer Industry New Zealand OSPRI TBfree New Zealand Ltd and NAIT Ltd are wholly- DHA Docosahexaenoic acid owned subsidiaries of OSPRI New Zealand Ltd. DM Dry Matter (e.g. with respect to forage) PGgRc Pastoral Greenhouse Gas Research Consortium EBIT Earnings Before Interest and Tax PGP Primary Growth Partnership EBITDAF Earnings before interest taxes depreciation PIP Deer Industry Productivity Improvement amortisation and foreign Programme EBV Estimated Breeding Value R&D Research and Development ESR Environmental Science and Research, a CRI REANNZ Research and Education Advanced Network ETS Emissions Trading Scheme New Zealand FAO Food and Agriculture Organisation SAP Science Advisory Panel FFP Future Footprint – AgResearch’s initiative to SCI Statement of Corporate Intent organise our science capability to create science SCP Statement of Core Purpose innovation hubs. SNP Single Nucleotide Polymorphism (a difference in a FTE Full-time equivalent (staff) single nucleotide (A, T, C or G) in the genome) FVI Forage Value Index STEC The shigatoxigenic group of Escherichia GDP Gross Domestic Product coli bacteria GenomNZ AgResearch’s genetic testing laboratory SUAP Strategic User Advisory Panel GHG Greenhouse Gas TAPS Te Arawa Primary Sector GTL Grasslanz Technology Ltd, an TB Tuberculosis AgResearch subsidiary TPK Te Puni Kōkiri H1, H2, H3 Three horizons in an R&D pipeline: Product & US United States (of America) knowledge development and transfer, applied research, and strategic research respectively USDA United States Department of Agriculture HR Human Resources UK United Kingdom HVN High Value Nutrition (National Science Challenge) WRONZ Wool Research Organisation of New Zealand YBG Yellow Bristle Grass 57 creating impacts for agriculture
notes
1. AgResearch’s full Statement of Core Purpose can be found at http://www.agresearch. 40. DeerNZ (2015) At a glance industry statistics [http://www.deernz.org/about-deer- co.nz/about-us/our-company/Pages/core-purpose.aspx industry/nz-deer-industry/deer-industry-statistics/glance-industry-statistics] 2. MPI (2014) Situation and Outlook for Primary Industries 2014 – Mid-Year Update, 41. Beef + Lamb New Zealand (2013) Annual Report, p.32 December 2014 [https://www.mpi.govt.nz/document-vault/3119], p.7. 42. Wool Task Force Report “Restoring Profitability to the Strong Wool Sector”, February 3. MPI (2015) The export goal [https://www.mpi.govt.nz/about-mpi/our-strategy-2030/ 2010 the-export-goal/]. 43. Shi W. et al. (2014) Methane emission phenotypes linked to differential gene expression 4. NZ Government (2014) The Business Growth Agenda – Future Direction 2014 [http:// in the sheep rumen microbiome. Genome Research 24: 1517-1525. www.mbie.govt.nz/pdf-library/what-we-do/business-growth-agenda/bga-reports/future- 44. Kittelmann S., Pinares-Patiño C.S., Seedorf H., Kirk M.R., Ganesh S., McEwan J.C., direction-2014.pdf], p.83. Janssen P.H. (2014) Two different bacterial community types are linked with the low- 5. http://www.globalresearchalliance.org/ methane emission trait in sheep. PLoS ONE 9: e103171. 6. http://ec.europa.eu/programmes/horizon2020/ 45. Oenema O., Ju X., De Klein C., et al. (2014) Reducing nitrous oxide emissions from the 7. http://www.livestockdialogue.org/ global food system, Current Opinion in Environmental Sustainability, 9-10, 55-64. 8. NZ Government (2014) The Business Growth Agenda – Future Direction 2014 [http:// 46. TPK (2015) Annual Report, Te Puni Kokiri, Wellington, N.Z. [ https://www.tpk.govt.nz/ www.mbie.govt.nz/pdf-library/what-we-do/business-growth-agenda/bga-reports/future- documents/download/1185/TPK-Annual-Report-2015.pdf], p.11. direction-2014.pdf], p.13. 47. MBIE (2015) Building Export Markets, Ministry of Business, Innovation and 9. ibid, p.13. Employment, Wellington, N.Z. [http://www.mbie.govt.nz/info-services/business/ business-growth-agenda/pdf-and-image-library/towards-2025/mb13078-1139-bga- 10. Coriolis (2014) New Zealand’s Agritech Sector [https://www.nzte.govt.nz/ report-01-export-markets-09sept-v17-fa-web.PDF], p.7. media/3800142/new-zealands-agritech-sector-2014.pdf], p.22 48. “Ko Ngā Tumanako o Ngā Tāngata Whai Whenua Māori/Owner Aspirations Regarding 11. Statistics New Zealand (2014) Industry Productivity Statistics: 1978–2012, the Utilisation of Māori Land”, Te Puni Kōkiri report, April 2011 [http://www.stats.govt.nz/~/media/Statistics/Browse%20for%20stats/ IndustryProductivityStatistics/HOTP78-12/ips-1978-2012-productivity-by-industry- 49. PwC (2014) Growing the Productive Base of Māori Land – Partial National Cost-Benefit tables.xls], Table 1.03. Analysis [http://www.mpi.govt.nz/document-vault/4963], p.7. 12. NZ Government (2014) The Business Growth Agenda – Future Direction 2014 [http:// 50. PricewaterhouseCoopers (2013) Growing the Productive Base of Māori Freehold Land, www.mbie.govt.nz/pdf-library/what-we-do/business-growth-agenda/bga-reports/future- Prepared for Ministry for Primary Industries [www.mpi.govt.nz/document-vault/4261] direction-2014.pdf], p.45. 51. NZ Government (2014) The Business Growth Agenda – Future Direction 2014 [http:// 13. ibid, p.46. www.mbie.govt.nz/pdf-library/what-we-do/business-growth-agenda/bga-reports/future- direction-2014.pdf], p.93. 14. MBIE and Ministry of Education (2014) A Nation of Curious Minds - He Whenua Hihiri I Te Mahara [http://www.msi.govt.nz/assets/MSI/Update-me/Science-in-society-project/ 52. “Māori Agribusiness in New Zealand: A Study of the Māori Freehold Land Resource”, science-in-society-plan.pdf]. MAF Report, March 2011 15. Our Land & Water National Science Challenge (2014) Proposal outline. 53. MBIE (2014) East Coast Economic Potential Study, Ministry of Business, Innovation and Employment, Wellington, N.Z. [http://www.mbie.govt.nz/info-services/sectors- 16. High Value Nutrition National Science Challenge (2014) Mission Statement [http:// industries/regions-cities/regional-growth-programme/east-coast] www.msi.govt.nz/assets/MSI/Update-me/National-science-challenges/HVN-vision-and- mission.pdf] 54. http://www.globalresearchalliance.org/research/livestock/ 17. New Zealand’s Biological Heritage (2014) Public Summary [http://www.msi.govt.nz/ 55. http://www.justshorn.com/ assets/MSI/Update-me/National-science-challenges/1003-Biological-Heritage-public- 56. Berg D.K. et al. (2011) Trophectoderm lineage determination in cattle, Dev Cell, 20(2), summary.pdf] 244-55. 18. DairyNZ (2013) Making Dairy Farming Work for Everyone. 57. Rossant, J. (2011) A mouse is not a cow, Nature, 471, 457-8. 19. As defined by the United Nations’ Bruntland Commission on 20 March 1987. 58. Totals in this table may not equal the sum of components shown due to rounding. 20. DairyNZ and LIC (2014) New Zealand Dairy Statistics 2013-14 [http://www.dairynz. co.nz/media/1327583/nz-dairy-statistics-2013-2014-web.pdf]. 21. http://www.6weeks.co.nz/#stats-facts 22. Novel Bacteria and Uses Thereof (Yersinia entomophaga whole organism). PCT Patent No. WO/2007/142543, Initial filing date 8/06/2006. 23. http://bioprotection.org.nz/research/programme/next-generation-biopesticides 24. Monaghan R.M., De Klein C.A.M. (2014) Integration of measures to mitigate reactive nitrogen losses to the environment from grazed pastoral dairy systems, Journal of Agricultural Science, 152, S45-S56. 25. Dairy Goat Co-operative (2015) Our Research [http://www.dgc.co.nz/our_research.cfm] 26. Statistics New Zealand (2013) Agricultural Production Statistics – June 2013; Beef + Lamb New Zealand (2013) Farm classes (http://www.beeflambnz.com/information/ on-farm-data-and-industry-production/farm-classes/); Statistics New Zealand (2013 Agricultural Production Census and AgResearch analysis. 27. http://www.beeflambnz.com/Documents/Information/Sheep%20and%20beef%20mid- season%20update%202011-12.pdf 28. Beef + Lamb New Zealand (2014) Annual Report, p.33. 29. ibid, p.33. 30. ibid, p.33. 31. http://www.mpi.govt.nz/news-resources/news/red-meat-sector-programme-formalised 32. http://www.beeflambnz.com/news-events/News/2014/september/new-process-see- farmers-driving-research/ 33. B+LNZ (2014) Strategic Direction 2014-18, p.12 [http://www.beeflambnz.com/ Documents/About%20us/Strategic%20direction.pdf] 34. Jiang Y. et al. (2014) The sheep genome illuminates biology of the rumen and lipid metabolism, Science, 344, 6188, pp.1168-1173. 35. DINZ (2015) What is Passion2Profit? [http://deernz.org/dinz-activity/p2p-deer-industry- initiative/what-passion2profit] 36. Statistics New Zealand, Overseas Merchandise Trade Statistics to December 2014. 37. Grimmond D., Bell B., Yap M. (2014) Future capability needs for the primary industries in New Zealand, Infometrics and Nimmo-Bell [https://www.mpi.govt.nz/document- vault/3893] 38. 39% more sheep meat by weight was exported by New Zealand in 2010 than by the next- largest exporter (Australia) according http://faostat3.fao.org/. 39. Statistics New Zealand, Overseas Merchandise Trade Statistics to December 2012.
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59 creating impacts for agriculture
60 statement of corporate intent 2015-2020
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