Annual Report 2013-2014 ©2014 Rural Industries Research and Development Corporation. This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Rural Industries Research and Development Corporation. Requests and inquiries concerning reproduction and rights should be made using any of the contact details below. ISSN: 1037-3470 RIRDC Publication No.14/060 Level 2 15 National Circuit Barton ACT 2600 PO Box 4776 Kingston ACT 2604 Phone: 02 6271 4100 Fax: 02 6271 4199 Email: [email protected] Web: www.rirdc.gov.au ABN: 25 203 754 319 Printed by Union Offset Printing, Canberra Design and typesetting by Downie Design
2 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Contents
Transmittal letter...... 5 About RIRDC...... 7 Organisational Structure...... 9 RIRDC’s Corporate Plan...... 10 Chair’s report...... 11 Performance snapshot...... 15 Key Achievements in 2013-14...... 16 Financial snapshot...... 25 RIRDC's Portfolio Structure...... 28 Collaboration...... 31 Evaluation ...... 35 Performance against the Australian Government’s research priorities...... 41 R&D outputs and outcomes for 2013-14...... 44 Goal 1: Promote leadership and innovation in the rural sector...... 45 Goal 2: Increase profit and productivity in rural industries...... 51 Goal 3: Enhance sustainability across the rural sector...... 80 Corporate Governance...... 87 Financial and performance statements...... 109 Appendices ...... 158 Appendix 1: Statutory levy and industry sub-accounts...... 160 Appendix 2: Legislative requirements...... 175 Appendix 3: RIRDC R&D Advisory Committees and Chairs at 30 June 2014...... 178 Appendix 4: Service charter...... 179 Appendix 5: RIRDC Selection Committee Report 2014...... 181 Appendix 6: Glossary...... 183 Appendix 7: Index of Annual Report requirements...... 186 Index...... 190 Corporate Directory...... 194
3
Transmittal letter
15 October 2014
The Hon. Barnaby Joyce MP Minister for Agriculture Parliament House CANBERRA ACT 2600
Dear Minister, In accordance with Section 28 of the Primary Industries Research and Development Act 1989, I present the Annual Report of the Rural Industries Research and Development Corporation for the year ended 30 June 2014. This Annual Report has been prepared and approved by the Board of the Rural Industries Research and Development Corporation in accordance with Section 9 of the former Commonwealth Authorities and Companies Act 1997, as it applied to the 2013-14 reporting period, and section 46 of the Public Governance, Performance and Accountability Act 2013. Yours sincerely,
Professor Daniela Stehlik Chair Enc: cc: Senator the Hon. Richard Colbeck Parliamentary Secretary to the Minister for Agriculture Dr Paul Grimes Secretary, Department of Agriculture
5 About RIRDC About RIRDC
• The 2013-14 RIRDC Annual Report This document is RIRDC’s annual report to government and industry stakeholders which covers the Corporation’s operations for 2013–14. It is aligned with RIRDC’s Corporate Plan 2012–2017, the Annual Operational Plan 2013–14, and the Australian Government Research Priorities. During 2013-14 RIRDC's management as a statutory corporation was subject to requirements of the Commonwealth and Companies Act 1997 (CAC Act). From 1 July 2014, the CAC Act was repealed and replaced by the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Some provisions of the CAC Act remain in force during the transition period, including performance reporting requirements for the 2013-14 financial year. It complies with mandatory and best practice reporting and includes: • An operational report • Financial statements • The Auditor-General’s report on the financial statements • RIRDC’s purpose To invest in research and development that is adopted and assists rural industries to be productive, profitable and sustainable. • Enabling legislation RIRDC’s enabling legislation is the Primary Industries Research and Development Act 1989 (Commonwealth Government of Australia) (the PIRD Act 1989). • Responsible Minister for the reporting period The Hon. Barnaby Joyce MP (current Minister) Minister for Agriculture The Hon. Joel Fitzgibbon MP Minister for Agriculture, Fisheries and Forestry • Our deliverable To maximise the knowledge outcomes for industry and government from our R&D investments in new and emerging industries, established rural industries, and national rural issues. • Our key performance indicators RIRDC evaluates performance against the following: • Sector five-year R&D plans are meeting their objectives to provide the knowledge: –– for diversification in Australia’s rural industries; –– increasing the profitability, resilience and sustainability of RIRDC’s established industries; and –– to address national rural issues and to meet the needs of industry, community and Government. (continues overleaf) 7 (from previous page) • Demonstrated high level of support from industry, government stakeholders and partners through regular stakeholder surveys and continuing co-investment. • Implementation of a revised strategy to increase use of RIRDC’s research, development and extension outcomes: –– leading to adoption of new technologies and industries; –– adoption of knowledge to increase the profitability; –– resilience and sustainability of RIRDC’s established industries; and –– adoption of knowledge to address national rural issues is demonstrated by client surveys and program evaluations. • Certification On 24 September 2014 the RIRDC Board authorised this Annual Report with the following resolution: The Board: Approved the Annual Report for the year ending 30 June 2014, which includes the following certification: “That the Corporation Board accepts responsibility under Section 9 of the Commonwealth Authorities and Companies Act 1997 for the preparation and content of this Report of Operations in accordance with the Finance Minister’s Orders”.
8 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Organisational Structure (PART TIME) EXECUTIVE OFFICE MANAGER AFFAIRS MANAGER AND PUBLIC COMMUNICATIONS OFFICER FINANCE (PART TIME) MANAGER FINANCE OFFICER (PART TIME) ADMINISTRATIVE GENERAL MANGER - CORPORATE SENIOR MANAGER ICT RIRDC BOARD MANAGING DIR EC TOR MANAGING PROJECT MANAGER TIME) SENIOR RESEARCH (FOUR FULL MANAGERS EXECUTIVE MANAGER MANAGER RESEARCH PROGRAM CO-ORDINATORS (FOUR FULL TIME, ONE PART TIME) EXTERNAL RESEARCH (THREE ON RIRDC’s organisational structure at 30 (as June 2014) MANAGERS CONTRACT)
At 30 June 2014 the Corporation had 16 staff employed on a full time basis (including Managing Director) and four part-time staff members. In addition the Corporation contracted five external managers to manage various R&D programs during 2013-14. Figure 1.
9 RIRDC’s Corporate Plan
Figure 2. RIRDC’s Corporate Plan 2012-17
VISION Enhanced prosperity for Australian rural industries and their communities
PURPOSE To invest in research and development that is adopted and assists rural industries to be productive, profitable and sustainable
GOALS Promote leadership Increase profit Enhance and innovation and productivity sustainability in the rural sector in rural industries across the rural sector
STRATEGIES Deliver analysis on issues Manage demand driven Work collaboratively on of national importance to RD&E that meets industry cross sector issues that the rural sector and needs impact across industries broader community Facilitate investments Increase knowledge Assess the feasibility, that deliver economic about rural industry value and potential social and environmental options that offer regional competitiveness of new benefits for rural economic development plant and animal industry industries opportunities opportunities Adopt a life-cycle Encourage the sustainable Encourage research that approach to investment use and management of fosters science and in new, developing and natural resources industry creativity established industries Promote leadership, capacity, skills and pathways that create opportunities
OUTCOME Increased knowledge that fosters sustainable, productive new and existing rural industries and furthers understanding of national rural issues through research and development in government-industry partnership.
10 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Chair’s report
The 2013-14 financial year began as one of consolidation for RIRDC and ended with substantial change. The strategic and administrative changes that were fundamental to enabling RIRDC’s 2012-17 Corporate Plan to be fully implemented were all completed in this, the second year of the Corporate Plan’s timeline. It has been yet another year of productive and important work at the Corporation, with the delivery of many valuable and industry-focussed R&D outcomes. A key focus during 2013-14 was the Corporation’s drive towards consolidating the amount of research projects being funded and carried out. Another area of focus was a drive towards more collaborative research through partnerships and the leveraging of external resources and relationships. RIRDC is now managing fewer R&D projects than it has for many years, however the Corporation’s investment in each of them is generally greater. In simple terms, RIRDC is managing less R&D projects, but they are bigger R&D projects with outcomes that should have a greater impact. RIRDC managed 247 active research projects in 2013-14 with a total cost of $43 million. The Corporation invested $14.6 million in these projects and leveraged $31.7 million of investment in cash and in-kind from other organisations. The philosophy behind this is that the impacts and benefits of larger projects will have a greater impact on the industries that should benefit from it. The Corporation is also leveraging external resources more than it has in the past. For each RIRDC dollar invested, $2.8 was leveraged from other organisations. A greater focus on collaboration was an approach endorsed by the RIRDC Board well before the significant cuts that the Corporation was forced to make following the Government’s Budget in May 2014. RIRDC has a strong history of collaborating with other research and development corporations (RDCs) and other research institutes and organisations, including universities and the CSIRO. The Corporation also has a strong commitment to conducting RD&E specifically focussing on cross-sector and cross-regional approaches to addressing research needs. This is an area of R&D in which RIRDC has not only the mandate, but also the willingness to tackle those issues that impact the entire agricultural sector and not just a single commodity. Investment in RIRDC’s primary cross sectoral investment totalled $2.3 million in 2013-14 of which 58 per cent, or $1.3 million was provided by external parties. Adopting a collective approach to RD&E not only results in greater resources for individual projects but also helps to achieve a shared commitment to nationally significant RD&E.
11 The RIRDC Board and senior executive are of the strong belief that collaboration is an efficient and effective strategy for solving many of the challenges facing the agriculture industry - examples include biosecurity, climate change and natural resource management, and capacity building. The long list of areas in which RIRDC collaborates with other agencies can be found further on in this Annual Report under the collaboration section. One example of the way in which RIRDC drove and promoted collaboration in RD&E during 2013-14 is through the Corporation’s leading role in the development of the AgNorth CRC. With the aim of submitting a bid in July 2014 for funding through the CRC program, the development of the AgNorth CRC began with RIRDC setting the framework and priorities and seeking partners for the fledging CRC. Similar to RIRDC, the national CRC program was significantly impacted by the tight fiscal operating environment. Large cuts to the CRC’s budget resulted in the 2014 round of CRC proposals being abandoned and hence uncertainty about the future of the AgNorth CRC. Despite this setback, RIRDC is still committed to the AgNorth CRC and is examining other funding options so that the AgNorth CRC can become a reality. RIRDC’s commitment to the AgNorth CRC remains because agriculture (including aquaculture) will play a strategically important role in an emerging transformation of the north. It can diversify and balance regional economies by attracting private investment, developing trade with domestic and overseas markets, sustainably drawing on natural resources, creating demand for infrastructure development, working with existing and creating new businesses, improving the liveability of local communities, and creating demand for new skills. Not only do strong agricultural industries diversify gross state and territory product, they help in mitigating economic cycles of the extractive industries in the north. The AgNorth CRC offers a long term research commitment, enabling many of the seemingly intractable issues about northern development to be addressed. Rigorous early analysis would identify priority precincts for agricultural development where international and domestic market demand, supply chains and logistics align with access to productive land and water resources. If successful, the AgNorth CRC will design and test business models tailored to the north which reduce investment risk and attract capital flows. Another significant project undertaken by RIRDC during 2013-14 was the development and successful launch of www.farmdiversity.com.au – an easily accessible, simple-to-use website that allows farmers to identify options for diversifying their farming enterprise. Farm diversification is an increasingly common practice for farms and rural businesses around the world. In the face of increasing financial, environmental and market pressures, diversification offers the opportunity to spread income risk and build resilience. Prior to the launch of www.farmdiversity.com.au there was no single ‘one-stop-shop’ resource that allowed farmers to identify and then further explore the on-farm diversification options available to them. The FarmDiversity website was developed because RIRDC identified a gap in the availability of resources and information about farm diversification, and from this it was determined there was a real need for an easily accessible and free online resource that would provide farmers with diversifications options that would suit their farm specifically. In order to tailor the website to the specific geographical location of a farm, users can enter their postcode and other advanced search options, hence only showing options suitable for that location and particular enterprise.
12 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 The development of the website involved collaboration with industry and other RDCs and the aim is to continue to grow the number of options available on the website over the next year. In the 2012-13 RIRDC Annual Report I noted that in August 2013 the Thoroughbred industry had voted in favour of statutory levy to fund R&D. The formal process of submitting a request for a statutory levy has been completed and at the time of this Annual Report going to print the proposal was being considered by the Australian Government. Should this levy be implemented it is hoped that RIRDC’s involvement in horse industry RD&E will resume. In the meantime, RIRDC’s funding of horse industry RD&E has ceased and will resume only when a levy is introduced and funding through matching industry and government contributions is committed. The 2013-14 year finished in an extremely challenging manner for RIRDC as a result of the Government’s 2014 Budget.
...the Corporation remains focussed and determined to deliver RD&E that meets its purpose and reason for being – to invest in research and development that is adopted and assists rural industries to be productive, profitable and sustainable.
RIRDC was advised that it will receive a $2 million cut to its core funding in 2014-15, with further cuts of $3 million annually for the following three years. This will result in a reduction of $11 million over four years in base funding. As a statutory body it is not surprising that RIRDC has been required to ‘share the pain’ in a tight fiscal environment. However, RIRDC’s modest level of government funding is focused on genuine public good R&D that is an investment in the future of rural industries and their communities. Over several years RIRDC has been responsibly and prudently cutting costs wherever possible in order to maximise the proportion of RIRDC funds allocated to direct R&D. The budget cuts announced in May have meant staffing levels and funding for direct R&D have had to be reduced. The cuts announced in the budget required a reduction in staffing which will ultimately impact on the level of engagement and services that can be provided to RIRDC’s stakeholders. Unfortunately the budget reduction has necessitated a loss of staff, including long-standing staff members who have made valuable contributions to RIRDC over several years. A significant restructure of the Corporation’s organisational structure and consolidation of its R&D program were also undertaken. The budget reduction will impact principally on RIRDC’s cross-cutting projects that address broader rural issues and those programs that address the needs of small industries. RIRDC’s larger levy paying industry programs, such as rice, chicken meat, pasture seeds and honey bee R&D, will not be affected directly by the budget decision. RIRDC will ensure that the impact of the cuts does not diminish the value and quality of individual projects and the Corporation will remain focused on delivering demand driven R&D to build productive capacity and innovation in the industries it serves.
13 The Board of RIRDC welcomed the Government’s on-going commitment to rural research and confirmation of an additional $100 million for R&D over the next four years announced in the May Budget, and it is important the Corporation now focus on assembling strong proposals for funding under the competitive grants program that will drive the allocation of the additional $100 million for rural R&D. Despite these set-backs the Corporation remains focussed and determined to deliver RD&E that meets its purpose and reason for being – to invest in research and development that is adopted and assists rural industries to be productive, profitable and sustainable. Daniela Stehlik Chair, Rural Industries R&D Corporation
14 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Performance snapshot
Table 1. Key performance Indicators—Portfolio budget statements (PBS) for 2013–14
2013–14 Indicators 2013–14 Actual Budget Target Improved delivery effectiveness including 90% satisfaction of Due to budgetary improvement in access to the information provided stakeholders surveyed constraints a to industry, evidenced by new delivery mechanisms comprehensive and stakeholder satisfaction with access. Level of stakeholder survey was satisfaction of stakeholders surveyed. not conducted in 2013-14 and was postponed until 2014-15.
Sector five-year research and development plans are 85% 100% of the 14 meeting their objectives. programs that had sector five-year R&D plans met their objectives. 100% of RIRDC’s 20 programs met their objectives.
Evaluation of projects and programs to show a 3:1 The evaluation of strong positive return on investment. RIRDC’s Wildflowers and Native Plants R&D Program reported the delivery of indicative lower bound and upper bound benefit cost ratios of 1.6 and 3.1. The RIRDC Global Challenges R&D Program delivered lower bound and upper bound benefit cost ratios of 2.6 and 4.9.
RIRDC’s RD&E investments address the 95% 100% government’s National and Rural Research Priorities, priorities of industry partners and optimise partnerships with other research agencies.
The main elements of the RIRDC investment framework for 2013–14 were: • An annual review of performance against the Corporate Plan. • Setting strategic directions for the coming year. • Preparing Annual Operational Plan (AOP) proposals with input from RIRDC’s R&D Advisory Committees through an annual review of progress against their five-year R&D plans. • Funding allocations set for 2013–14. • Aligning program strategies within portfolios against R&D five-year plans, and allocating pre-determined budgets that are funded subject to performance.Implementing programs through a combination of open call and commissioned projects.
15 Key Achievements in 2013-14 A practical tool to help farmers diversify their farm - www.farmdiversity.com.au
In June 2014 RIRDC launched a new online tool which allows farmers to investigate almost 100 options for diversifying their enterprise. The search tool, located on the www.farmdiversity.com.au website is free and easy to use. After simply entering their postcode, farmers see a ‘shortlist’ of industries that may be viable in their area. More specific search information, such as rainfall, soil type and climate zone can be used to refine the search. Farmers can also search for a particular plant or animal that may be of interest. For each plant and animal the website provides Importantly, the new tool essential information such as production status, may identify industries that growing region maps, risks and challenges, regulatory considerations, publications, resources, a farmer may never have and contact information for industry bodies. considered as opportunities. Previously, farmers would have had to do extensive internet searches to unearth this kind of information. Importantly, the new tool may identify industries that a farmer may never have considered as opportunities. While the primary driver for diversification is to increase income, other benefits are improving resilience, spreading risk and even reducing environmental impact.
Aussie honey good for gut health: new research uncovers prebiotic qualities A world-first study funded by RIRDC has discovered that Australian eucalypt honey has prebiotic qualities, meaning that regular consumption could improve gut health. Prebiotic foods stimulate the growth of gut bacteria that contribute to human health and reduce the growth of deleterious gut bacteria. Prebiotic foods are not digested by human enzymes, but reach the large intestine intact and act as a food source for beneficial bacteria including bifidobacteria and lactobacilli. (continues overleaf)
17 (from previous) The study analysed the chemical and functional properties of 20 Australian eucalypt honey samples, originating from Jarrah, Red Stringybark, Spotted Gum and Yellow Box eucalypt tree species. The results of the research could lead to wide-reaching industry and human health benefits. Researchers engaged in the study were able to show in human trials that Australian eucalypt honeys have prebiotic qualities at levels that could help improve gut health, which can have a couple of important flow on effects.
Researchers... were able Australian eucalypt honeys are natural, healthy and common foods that can now be viewed as products to show in human trials that can help improve gut health. This has benefits not only for the people eating the honeys, but also that Australian eucalypt provides the Australian honey industry with a honeys have prebiotic unique point of difference that is backed by science. qualities at levels that could This research will give the Australian honey help improve gut health, industry the ability to not only better compete with other natural and artificial sweeteners for dietary which can have a couple of use, but also to differentiate Australian eucalypt honeys from the cheaper products marketed by important flow on effects. international competitors.
Prebiotic foods promote the growth of beneficial bacteria in the human intestine with a positive impact on health. In recent years awareness of the role of intestinal bacteria and their complex interactions in human health has increased markedly. There is increasing evidence that the gut microbiota is intrinsically linked to our metabolic health and a number of gastrointestinal diseases, such as inflammatory bowel disease, cancer, cardiovascular disease and obesity have been linked with a degradation of beneficial gut microbiota. The long-term economic viability of the Australian honey industry is particularly important to Australia, not only for the honey industry itself but also in relation to the pollination services that honey bees provide to horticultural and agricultural industries. Australian Bureau of Agricultural and Resource Economics (ABARES) analysis showed that in 2011-12 the Australian honey industry had a gross value of honey and beeswax production of $79 million, which was forecast to rise to $88 million in 2012-13 and $92 million in 2013-14.
18 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Research shows huge potential of sweet sorghum as a multi-product crop A RIRDC-funded research study into sweet sorghum has shown the huge potential of the crop as a single source of energy, food and animal feed. Sweet sorghum is receiving significant global interest because of its potential as a multi-product crop, however there has been minimal research under Australian growing conditions or using Australian processing facilities, until now. Sweet sorghum is a fast growing plant that produces a stalk up to five metres tall with a high concentration of fermentable sugars at a level similar to that of sugarcane, and produces a large panicle of edible, nutritional grain similar to that of grain sorghum. Unlike many other crops used for renewable energy production, sweet sorghum can simultaneously produce food and feed co-products. Conducted by Queensland University of Technology in collaboration with industry partner AgriFuels Ltd, the research looked at sweet sorghum’s agronomy, its ability to be processed using existing processing infrastructure, its carbon footprint, using it to produce biofuels, and its use in food products for humans, fish and livestock. Sweet sorghum has a wide potential cropping area, including tropical and sub-tropical Queensland, the Northern Territory, Western Australia and in temperate regions of New South Wales and Victoria. The research showed that several varieties of sweet sorghum grew very quickly in field trials, reaching maturity in only 16-20 weeks with fermentable sugar concentrations similar to those of sugarcane under optimal conditions. The research indicated there are significant short term opportunities for the co-location of sweet sorghum and sugarcane production to increase feedstock availability for bio‑ethanol production. The study found that adding sweet sorghum juice to sugarcane juice resulted in higher ethanol yields than fermenting sugarcane juice alone. The research team also produced a range of sweet sorghum food and feed products including sweet sorghum flour, syrup, sweet sorghum-based breakfast cereal, fish and animal feed pellets and human dietary fibre products. When the researchers analysed the nutritional quality and economics of these products it was shown that there are significant opportunities for manufacturing food and feed products from sweet sorghum in Australia. These products include livestock feed from sweet sorghum grain, syrup or molasses feed supplements, stock feed from sweet sorghum bagasse, and the production of mixed animal and fish feed products incorporating all three residues. A carbon footprint analysis of six biorefinery process options for the conversion of sweet sorghum to fuel and animal feed products under Australian conditions was also carried out and the results were positive. The researchers conducted a life cycle assessment and it determined that the aggregated effects of all sweet sorghum biorefinery products resulted in a strong net reduction in Global Warming Potential. This was true even for scenarios with the lowest sweet sorghum crop yields, so sweet sorghum biorefineries can assist in reducing carbon emissions. Australia is well placed to establish integrated biorefineries producing sweet sorghum-based products for domestic use and for export into the Asian market.
19 Research into jockey safety vests lays foundation for change
A study into the effectiveness of jockey safety vests has confirmed that the vests have not contributed to the rise in fall-related neck and spine injuries and has also led to the peak industry body suspending the use by jockeys of one vest. Compulsory for jockeys and trackwork riders since 1998, safety vests are now an established part of the kit worn by jockeys. The physical and financial cost of jockey fall injuries is substantial - industry information suggests that the average time lost following a fall is over 500 hours per incident, with the claim cost from horse-related falls amounting to approximately $3 million per annum. Part-funded by RIRDC, with significant funding from the racing industry, the study included four main components. The first was a survey of jockeys to get an insight into their views on the safety vests that are currently used; the second was an analysis of insurance claim data about injuries before and after the introduction of safety vests; the third was a review of video footage of jockey falls from horses; and the fourth was the testing of the most popular safety vests against Australian standards. The jockey survey found that while there were positive views on the safety benefits of vests, many riders were not completely satisfied with the comfort or protection offered by vests and some concerns were raised about whether vests were contributing to a perceived increase in spinal and neck fractures. The analysis of insurance claim data showed a reduction over time in injuries in areas protected by the vests, such as the back, chest and ribs, but an increase in spinal and neck fractures. The review of video footage by a biomedical engineer suggested spinal and neck fractures were mainly caused by the rider’s head hitting the turf after taking a forward dive off the horse into the track. As safety vests are not designed to protect the upper spinal column from these types of injuries the report determined that such injuries are not a result of a fault in the vests. All safety vests used by Australian jockeys were tested against standards approved in the Australian Rules of Racing. Of the two most popular vests worn by jockeys, one vest performed extremely well, while the other vest comprehensively failed the testing. Based on these results, the Australian Racing Board (ARB) moved in September 2013 to ban
20 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 the use of the Tipperary vest by licensed jockeys, track The physical and financial riders and stable hands. ARB Chief Executive Peter McGauran said the cost of jockey fall injuries report has allowed the horse racing industry to is substantial - industry make important decisions based on solid research and hard facts. information suggests that the “Jockey safety is of paramount importance to the average time lost following Australian Thoroughbred racing industry and the equipment available to jockeys must offer effective a fall is over 500 hours per protection whilst being comfortable under riding incident, with the claim conditions. Striking a balance between protection and wearability is a particular challenge for racing cost from horse-related falls authorities given the uniqueness of race riding,” Mr McGauran said. amounting to approximately “It’s vital that we base safety equipment standards $3 million per annum. on the best available science and this report makes a major contribution to our understanding of the benefits of riding vests. “The RIRDC study has already seen the ARB act to ban the Tipperary vest because it didn’t meet the required standard, and it will also be the basis on which the ARB will shortly introduce more rigorous approval and compliance processes for other vests.” The report makes a number of recommendations aimed at improving jockey safety. These include changes to the ARB’s standard for vests, improving systems for approving vests and better systems for monitoring compliance and vest performance. The ARB has already decided to adopt all of the report’s key safety recommendations. The report’s principal researcher was Dr Caroline Foote from Equine Consulting Services. Study finds that Australia’s farmer population is ‘competitively young’ A study funded by the Rural Industries R&D Corporation found that, while the number of younger farmers entering agriculture continues to fall, the Australian farm population remains ‘competitively young’ compared to other developed economies. The report, titled ‘New entrants to Australian agricultural industries – where are all the young farmers?’ used Australian Bureau of Statistics (ABS) population census data from the eight censuses conducted between 1976 to 2011 to examine the current demographic structure of the Australian farmer population. The report quantified the extent of structural ageing in the Australian farm sector, examined the behaviours that are causing structural ageing and explores the social, demographic and economic conditions that influence these behaviours.
(continues overleaf) 21 (from prevtious) The study found that the number of farmers aged under 35 years of age has fallen by 75 per cent since 1976. The most important factor in this fall has been falling numbers of farms due to farm aggregation, leaving fewer opportunities for younger people to enter agriculture. Another reason for declining numbers of younger farmers are factors that are common with the rest of the Australian labour market, including structural ageing of the Australian workforce and delayed entry to the workforce due to longer years spent in tertiary education. What sets farming apart from other occupations is the lowering rate of exit from farming amongst farmers Australia has a aged over 65 - since 1991 the population of farmers aged younger farming over 65 has increased by 55 per cent. This decreases the proportional measure of farmers aged under 35 and is also an population compared important contributor to the increasing median age of the farmer population. to all but one other In addition to these factors, the increasing age of first marriage developed country - in Australia has reduced the number of younger female entrants to farming. New Zealand. However, despite these figures the study concluded that there is little cause for concern over any link between farm sector structural ageing, low recruitment of younger people into agriculture and food security. Australia has a younger farming population compared to all but one other developed country - New Zealand. Of particular importance is the study’s tentative finding that many of Australia’s younger farmers can be found on the larger farms which produce the bulk of Australia’s farm production. These farms are comparatively immune to the ageing seen in the rest of the farm sector. This means that structural ageing in the farm sector is probably not a threat to Australia’s food security or to future growth in the sector.
22 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Using satellites to move beehives A new online tool that uses images from NASA satellites is set to revolutionise the way Australia’s beekeepers find sources of nectar and pollen for their bees. Called ‘BeeBox’, the online tool is the first of its kind in the world and uses historical and current satellite imagery to help beekeepers predict where and when eucalypt trees will flower. Most Australian beekeepers rely on flowering eucalypts to provide nectar and pollen for their bees, with most locating their hives within state- owned eucalypt forests. Eucalypts are highly adapted to Australian conditions and their flowering cycle is complex. Most species only flower every two, three or four years and a number of factors influence flowering, including temperature and rainfall. BeeBox, which was developed with funding from RIRDC, can be accessed for free from home or a mobile device and uses imagery direct from NASA satellites to provide the most up-to-date and accurate information about eucalypt flowering cycles. Historical satellite imagery has been used to produce maps that show eucalypt growth cycles across south-eastern Australia over the past decade. Beekeepers can view growth at a single point in time, compare points in time, or select and plot eucalypt growth cycles over the past ten years. The variability and uncertainty of where and when eucalypt trees will flower has in the past prevented beekeepers from being able to plan the movement of their hives with a large degree of certainty. BeeBox now provides beekeepers with a level of information they’ve previously never had access to and should help them better predict eucalypt flowering cycles and hence inform the movement of their hives. Beekeepers have to drive vast distances every year in an effort to locate stands of flowering eucalypt trees that will provide adequate supplies of nectar and pollen for their bees, and fuel is by far the greatest cost for a beekeeping operation. BeeBox has the potential to considerably cut their costs – especially fuel costs – by allowing them to make better informed planning decisions and moving their hives less. BeeBox can be accessed at www.sideroxylon.com.au/beebox/
23 Financial Snapshot Financial snapshot
Table 2 Financial and operational summary
Revenue ($ million) 2009-10 2010-11 2011-12 2012-13 2013-14 Commonwealth Appropriation 10.4 10.5 11.8 11.2 11.3 Industry Levies 1.8 2.4 4.2 4.6 5.5 Commonwealth matching dollars 2.6 3.0 3.2 3.4 3.4 Interest .6 .9 1.0 .8 .7 Other Income 11.3 7.7 8.4 4.4 3.9 26.7 24.5 28.6 24.4 24.8
Expenditure ($ million) 2009-10 2010-11 2011-12 2012-13 2013-14 Research programs 18.1 23.4 24.8 16.4 17.3 Communications .5 .5 .3 .5 .5 Corporate 3.4 4.8 4.4 4.5 4.8 22.0 28.7 29.5 21.4 22.6
Revenue as % 2009-10 2010-11 2011-12 2012-13 2013-14 Commonwealth Appropriation 39% 43% 41% 46% 46% Industry Levies 7% 10% 15% 19% 22% Commonwealth matching dollars 10% 12% 11% 14% 14% Interest 2% 4% 3% 3% 3% Other Income 42% 31% 30% 18% 15% 100% 100% 100% 100% 100%
Expenditure as % 2009-10 2010-11 2011-12 2012-13 2013-14 Research programs 82% 82% 84% 76% 77% Communications 2% 2% 1% 3% 2% Corporate 16% 16% 15% 21% 21% 100% 100% 100% 100% 100%
25 Figure 3. Revenues for 2013-14
Other 4%
External contributions 15%
Revenues Industry from Levies Government 22% 59%
Figure 4. Expenditure for 2013-14
Suppliers 16% Employees 20%
Research projects 64%
26 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Figure 5. Share of total expenditure by research program
Climate Change Research Strategy for Primary Industries National Rural Issues Other
Global Challenges
Investing in People Primary Industries Health and Safety Dynamic Rural Chicken Bioenergy, Bioproducts Communities Meat and Energy Wildflowers and Native Plants
Tea Tree Oil Fodder crops New and Developing Honey bee Plant and Industries Pollination
Horses New and Developing Animal Industries
Pasture Essential Oils Seeds and Plant Extracts Rice
27 RIRDC's Portfolio Structure Figure 6: RIRDC’s portfolio structure in 2013-14
GOAL 1: GOAL 2: GOAL 3: Promote leadership and Increase profit and Enhance sustainability across innovation in the rural sector productivity in rural industries the rural sector
Strategy 1.1 Strategy 2.1 Strategy 3.1 Deliver analysis on issues of Manage demand driven RD&E that Work collaboratively on national importance to the rural meets industry needs cross sector issues that impact sector and broader community. across industries. Strategy 2.2 Strategy 1.2 Facilitate investments which deliver Strategy 3.2 Assess the feasibility, value and economic, social and environmental Increase knowledge about rural potential competitiveness of benefits for rural industry options that offer regional new plant and animal industry industries and the economic development opportunities. broader community. opportunities.
Strategy 1.3 Strategy 2.3 Strategy 3.3 Encourage research that fosters Adopt a life-cycle approach to Encourage the sustainable use and science and industry creativity. investment in new, developing and management of natural resources. established industries. Strategy 3.4 Promote leadership, capacity, skills and pathways that create opportunities.
GOAL 1 GOAL 2 GOAL 3 RESEARCH RESEARCH RESEARCH PROGRAMS: PROGRAMS: PROGRAMS:
NATIONAL RURAL ISSUES CHICKEN MEAT BIOENERGY, BIOPRODUCTS AND ENERGY GLOBAL CHALLENGES FODDER CROPS PRIMARY INDUSTRIES HEALTH NEW PLANT AND ANIMAL HONEY BEE (INCLUDES AND SAFETY PROGRAM OPPORTUNITIES FEASIBILITY POLLINATION PROGRAM) DYNAMIC RURAL HORSE (INCLUDES COMMUNITIES HENDRA VIRUS) INVESTING IN PEOPLE PASTURE SEEDS CLIMATE CHANGE RESEARCH RICE STRATEGY FOR PRIMARY ESSENTIAL OILS AND INDUSTRIES PLANT EXTRACTS
NEW AND DEVELOPING ANIMAL INDUSTRIES NEW AND DEVELOPING PLANT INDUSTRIES TEA TREE OIL WILDFLOWERS AND NATIVE PLANTS
29 Collaboration Collaboration
RIRDC understands the key to developing real and lasting solutions for rural industry is to take a shared approach to shared challenges. That is why RIRDC works in collaboration with a range of industry and government stakeholders to develop and implement research and development initiatives which impact across the agricultural sector. Under its Corporate Plan, RIRDC has strengthened its commitment to collaboration by specifically focussing on cross-sector and cross-regional approaches to addressing research needs. Adopting a collective approach to RD&E not only results in greater resources for individual projects but also helps to achieve a shared commitment to nationally significant RD&E. Collaboration is an efficient and effective strategy for solving many of the challenges facing the agriculture industry - examples include biosecurity, climate change and natural resource management, and capacity building. RIRDC managed 247 active research projects in 2013-14 with a total cost of $43 million. RIRDC invested $14.6 million in these projects and leveraged $31.7 million of investment in cash and in-kind from other organisations. For each RIRDC dollar invested, $2.8 was leveraged from other organisations.
Figure 7: RIRDC’s R&D investment and number of projects
160 150 140
130 Number of Research projects 120 started in year 110 100 Average RIRDC 90 investment per research project 80 ($’000) started in year 70 60 2011-12 2012-13 2013-14
31 Examples of RIRDC collaborations across industries and the sector Table 3. Major collaborations that RIRDC managed or participated in during 2013–14
What Who Aim Climate Change Research A joint initiative of rural research To promote a strategic and collaborative Strategy for Primary and development corporations, approach to climate change research, Industries (CCRSPI) state and territory governments, development and extension for the Australian Department of primary industries. Agriculture and the CSIRO Hendra virus research RIRDC Horses Program, To fund research consistent with the as part of the National Australian Department goal of the National Hendra Virus Hendra Virus of Agriculture, Research Program to minimise the Research Program Australian Department impact of the Hendra virus. of Industry, Australian Department of Environment Primary Industries Health RIRDC, Cotton Research and Healthy, safe and productive working and Safety Partnership Development Corporation, Sugar lives in the primary industries through Research Australia, Fisheries investment in RD&E drive sustainable Research and Development improvements to work health and Corporation, Grains safety outcomes. Research and Development Corporation, Meat & Livestock Australia, Australian Meat Processor Corporation Horizon Scholarship RIRDC, Cotton Research and To support the next generation of Development Corporation, agriculture leaders who will take up the Grains Research and challenge of farming for the future. In Development Corporation, partnership with industry sponsors the Meat and Livestock Australia, goal of the Scholarship is to enhance the Australian Egg Corporation future supply of graduates available for Limited, Australian Department employment in the rural sector. of Agriculture, Australian Pork Limited, Horticulture Australia Limited, Australian Wool Innovation, Sugar Research Australia, Grape and Wine Research and Development Corporation, Woolworths, Lallemand Animal Nutrition and McCaughey Memorial Institute Rural Women’s Award RIRDC, Australian Department To identify and support the capabilities of Agriculture, Westpac of emerging rural women leaders Agribusiness, ABC Rural, to increase their participation and Fairfax Agricultural Media, RM contribution to Australia’s primary Williams Outback Magazine, industries and rural communities. NT Farmers Association and State Governments ABARES Science RIRDC, ABARES To provide recognition to innovative and Innovation and other sponsors scientific projects that will contribute to Awards for Young the ongoing success and sustainability People in Agriculture, of Australia’s agricultural, fisheries and Fisheries and Forestry forestry industries. National Animal Manure RIRDC Chicken Meat Program, To co-ordinate a national research Management Program Australian Egg Corporation network under an agreed collaborative Limited, Australian Pork program that will estimate the Limited, Meat and Livestock agricultural greenhouse gas emissions Australia, Dairy Australia, (GHG) abatement potential for various Horticulture Australia Limited animal manure management systems. and the Australian Government
32 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 What Who Aim
Structural RIRDC, Regional To review lessons and knowledge adjustment impacting Australia Institute gained from the impacts of structural rural communities adjustment processes and programs - including lessons, experiences and opportunities - in rural and regional Australia.
‘Food and Fibre’ RIRDC, Australian Department To understand medium and longer term Supply Chains Study of Infrastructure and Regional opportunities for irrigated agriculture of key regions in Development, The State of across northern Australia and critical Northern Australia Queensland, The Northern supply chain and infrastructure Territory of Australia, and The investment issues that may help to foster State of Western Australia those opportunities.
National RIRDC, Australian Bioenergy To improve the coordination and Bioenergy RD&E Strategy RD&E Forum member collaboration of primary industries agencies, Australian and State focused bioenergy RD&E nationally Government departments, universities, relevant RDC’s, CSIRO, bioenergy industry
Myrtle Rust RIRDC, Plant Health To provide technical advice to the Australia, Australian and State Myrtle Rust Transition Management Government departments, Group (MRTMG) on specific scientific CRC for Plant Biodiversity, issues and to assist in developing Universities, Botanic Gardens, techniques and strategies that minimise CSIRO, Myrtle rust- the impact of Myrtle Rust affected industries
Pollination RD&E RIRDC Honey bee and To secure the pollination of Australia’s Pollination Program and horticultural crops into the future on a Horticulture Australia Ltd sustainable and profitable basis
New and Emerging RIRDC, Australian New To improve the coordination and Industries Rural Industries RD&E collaboration of new rural industries National RD&E Strategy Forum - Australian and State RD&E nationally departments, universities, CSIRO and industries
Valuable behavioural RIRDC, Meat and Livestock Use genomic technologies to develop a phenotypes in Australia, Sydney University, breeding program for working dogs to Australian farm dogs working dog industry (Working reduce the cost of wastage, and improve Kelpie Council) behavioural and health traits
Biomass Producer website RIRDC, Australian Bioenergy To develop a knowledge hub website RD&E Forum member to inform primary producers agencies, Australian and State of their opportunities in the Government departments, bioenergy supply chain. universities, relevant RDC’s, CSIRO, industry
Poultry CRC RIRDC Chicken Meat Program; The Poultry CRC’s major challenge is Australian Egg Corporation to help Australia achieve sustainable, Limited (AECL); Bioproperties ethical poultry production in the face of Pty Ltd; CSIRO; Department population growth and climate change. of Agriculture, Fisheries and Forestry Queensland; University of Melbourne; University of New England (UNE).
Managing Climate RIRDC, Grains Research & To help primary producers and Variability Program Development Corporation, Meat natural resource managers manage & Livestock Australia, Sugar the risks and exploit the opportunities Research Australia resulting from Australia’s variable and changing climate.
33 Evaluation Evaluation
The Corporation ensures it is able to monitor and report the benefit and impact of its RD&E investments. In order to do this, during 2013 RIRDC adopted a more encompassing evaluation policy that established measures and the approach by which the Corporation will evaluate its performance against the delivery of the Corporate Plan 2012-17. The evaluation policy will also guide continuous internal improvement of RIRDC’s management, administration and delivery of RD&E programs. RIRDC’s evaluation policy is focussed on evaluating RD&E delivery in a way that is simple, draws on the Corporation’s existing data gathering capabilities and is cost effective for the size of the organisation. The primary approaches used are: • An Annual Report that has a rigorous relationship with the AOP and will demonstrate the impact of RD&E investment to stakeholders. • Every project undergoes a pre-project evaluation, to ensure investment decisions are consistent with program R&D plans and government and industry stakeholder priorities. • On-going evaluation throughout the life of major projects. • Post-project evaluation of sample projects to determine return on investment. • Case-studies that qualitatively and quantitatively evaluate the benefit of a sample of long ‑term, medium-to-large sized RIRDC projects and communicate stakeholder benefit. • Synthesis reports of the outputs and benefits of a portfolio of projects. • Post-project evaluation of key projects that did not deliver anticipated outputs to capture lessons to inform future investment. • Annual program reviews against AOP, including how well they delivered against corporate goals. • Evaluation of programs toward the conclusion of a program’s three year (review at six months prior to end) or five year (review at 12 months prior to end) RD&E plan. New RD&E plans are to make explicit reference to the findings of the evaluation of the previous plan. Programs are to budget funding for evaluations in the appropriate year. • Annual monitoring of Australian Government reporting expectations including the National and Rural R&D Priorities. • An independent external review of RIRDC’s delivery against the Corporate Plan undertaken in Year 4 of the Plan.
35 Impact assessment of RIRDC’s Wildflowers and Native Plants R&D Program and Global Challenges R&D Program (2013-14)
In the year ending June 2014, impact assessments were carried out on two RIRDC R&D programs - the Wildflowers and Native Plants R&D Program and the Global Challenges R&D Program. The impact assessments were carried out by Agtrans Research over the period December 2013 to June 2014. The approach of these impact assessments was similar to the new approach that was adopted in 2013. Qualitative summaries of all investments within each program were compiled and potential benefits were identified in a triple bottom line context (economic, environmental and social). Some of the benefits that were considered the most significant were valued as part of the impact assessment. Methods The first step in the impact assessment was defining the population of investments. The project population for the Wildflowers and Native Plants R&D Program was defined as projects completed in the past five years (June 2008 to June 2013) and having a final report available. There were 16 projects defined in the project population for the Wildflowers and Native Plants R&D Program. There were 18 projects defined in the project population for the Global Challenges R&D Program. As for the Wildflowers Program, projects had to be completed (with final reports) within the period June 2008 to June 2013 to be included in the population. The population therefore included some projects that commenced earlier than June 2008. Each investment was evaluated through the following steps: 1. Information from the original project proposals, final reports, and any progress reports or other relevant reports and material was assembled with assistance from program personnel, Principal Investigators and others. 2. An initial description of the project background, objectives, activities, costs, outputs, outcomes and benefits was drafted. Additional information needs were identified. 3. Telephone and/or email contact was made with Principal Investigators or other relevant industry personnel and the draft sent to that person or persons for perusal and comment, together with specific information requests. 4. Further information was assembled where appropriate from industry personnel and others associated with the industry, and the quantitative analysis undertaken. 5. Drafts were passed by RIRDC Program Managers and in some cases Principal Investigators for comment. Some of the potential benefits identified from the investment in each Program were then valued. The Present Value of Benefits (PVB) and Present Value of Costs (PVC) were used to estimate investment criteria of Net Present Value and Benefit-Cost Ratio at a discount rate of 5%. The Internal Rate of Return was also estimated from the annual net cash flows. The PVB and PVC are the sums of the discounted streams of benefits and costs. All dollar costs and benefits were expressed in 2013-14 dollar terms and discounted to the 2013-14 year. A 30 year benefit time frame was used in all analyses, with benefits estimated for 30 years from the year of last investment. Costs for the R&D project included the cash contributions of the program (includes both RIRDC and industry investment), as well as any other resources contributed
36 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 by third parties (e.g. researchers or industry). Sensitivity analyses were undertaken for those variables where there was greatest uncertainty or for those that were thought to be key drivers of the investment criteria. Some identified benefits were not quantified mainly due to: • A weak or uncertain relationship between the research investment and the identified R&D outcomes and associated benefits. • The magnitude of the value of the benefit was thought to be only minor. Two sets of analyses and corresponding investment criteria were reported, both at program level. The first analysis refers to projects where significant benefits were identified and valued. In this analysis, the present value of the benefits was compared to the investment in the particular projects generating the benefits. This process is likely to estimate a maximum value set of investment criteria. The second analysis refers to the same set of valued benefits but compares them to the total investment in the program population. As there are likely to be some positive benefits from the projects where benefits were not explicitly valued, the results from the second analysis are likely to represent a minimum value set of investment criteria for the program. Types of Impacts Economic impacts driven by the Wildflowers and Native Plants R&D Program were identified, including increased demand via quality improvements, provision of new, high value products, increased grower profits from productivity improvements and reduced costs of production, and reductions in export shipment rejections. Environmental impacts included a reduction in environmental impacts from growers adopting principles of sustainable agriculture and some reduction in usage of chemical pest control methods. Social impacts included increased scientific and industry capacity. Economic impacts from the Global Challenges R&D Program were predominantly economic in nature and focused on industry. Impact pathways included improvements in agricultural policy development by government and industry resulting in improved efficiency and effectiveness of the agricultural sector, increased and/or improved investment in R&D and transport infrastructure, improved marketing/market access of Australian agricultural products, and increased agribusiness/rural industry profits via market enhancement or reduced costs. In addition, some environmental impacts addressing biodiversity and climate change were delivered. Social impacts were related to issues of equity and the spillover benefits to rural communities from prospective productivity and trade gains to rural producers and supply chains. Investment Criteria Tables 4 and 5 present the estimated investment criteria for each of the programs evaluated. Table 4 presents the minimum and maximum investment criteria for the Wildflowers and Native Plants R&D Program at a 5% discount rate. (continues overleaf)
37 Table 4: Investment Criteria for Total Investments for the Wildflowers and Native Plants R&D Program (discount rate = 5%, 30 years)
PVB PVC NPV B/C IRR Investment ($m) ($m) ($m) Ratio (%)
Wildflowers and Native Plants R&D 8.53 2.75 5.78 3.10 13.3 Program – Upper Bound (Maximum)
Wildflowers and Native Plants R&D 8.53 5.38 3.15 1.59 8.3 Program – Lower Bound (Minimum)
Table 5 presents the minimum and maximum investment criteria for the Global Challenges R&D Program at a 5% discount rate.
Table 5: Investment Criteria for Total Investments for the Global Challenges R&D Program (discount rate = 5%, 30 years)
PVB PVC NPV B/C IRR Investment ($m) ($m) ($m) Ratio (%)
Global Challenges R&D Program – 9.29 1.91 7.38 4.86 18.6 Upper Bound (Maximum)
Global Challenges R&D Program – 9.29 3.54 5.75 2.62 11.7 Lower Bound (Minimum)
Conclusions A range of impacts, predominantly economic in nature, were identified from the two R&D Programs evaluated. The evaluation of the Wildflowers and Native Plants R&D Program reported the delivery of indicative lower bound and upper bound benefit cost ratios of 1.6 and 3.1. The Global Challenges R&D Program delivered lower bound and upper bound benefit cost ratios of 2.6 and 4.9. These quantitative results, along with the qualitative identification of impacts, demonstrate that both programs are delivering positive impacts and returns on investment. The impact assessment process used in this evaluation allowed for a qualitative classification and assessment of all the projects in the population and has provided useful information for both demonstrating accountability for past investment decisions as well as for some guidance for the allocation of program resources in the future.
38 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014
Performance against the Australian Government's research priorities Performance against the Australian Government’s research priorities
The National and Rural Research Priorities of the Australian Government provide an over-arching framework for public investment in rural research and development. RIRDC’s Annual Operational Plan (AOP) 2013–14 was closely aligned with these priorities. RIRDC addresses the Government’s research priorities in the following manner: • The RIRDC five-year corporate plan has the Government’s priorities built into its strategies. The current RIRDC Corporate Plan 2012–2017 specifies RIRDC strategies that will contribute to these priorities. • The five-year R&D plans for individual programs address the Government’s research priorities. • RIRDC’s annual advice to researchers on doing business with the Corporation includes reference to the Government’s priorities. This information can be found on RIRDC’s website at www.rirdc.gov.au/for-researchers. • RIRDC’s annual reports and annual operational plans have sections reporting on the outcomes from RIRDC investments that contribute to the research priorities.
Table 6: RIRDC funding allocations against the National Research Priorities
Goal 3 Total National Research Priorities Goal 1 Goal 2 Total ($'000) ($'000) ($'000) ($'000) (%)
An environmentally sustainable Australia
A1: Water – a critical resource 0 0 0 0 0.00%
A2: Transforming existing industries 264 3238 760 4262 29.24%
A3: Overcoming soil loss, salinity and acidity 0 32 0 32 0.22%
A4: Reducing and capturing emissions in 44 0 73 117 0.80% transport and energy generation
A5: Sustainable use of Australia's bio diversity 0 839 54 893 6.13%
A6: Developing deep earth resources 0 0 0 0 0.00%
A7: Responding to climate change and 57 45 0 102 0.70% variability Promoting and maintaining good health
B1: A healthy start to life 0 0 0 0 0.00%
B2: Ageing well, ageing productively 0 0 55 55 0.38%
B3: Preventive health care 0 328 97 425 2.92%
B4: Strengthening Australia's social and 325 20 0 345 2.37% economic fabric
41 Goal 3 Total National Research Priorities Goal 1 Goal 2 Total ($'000) ($'000) ($'000) ($'000) (%)
Frontier technologies for building and transforming Australian industries
C1: Breakthrough science 37 2274 69 2380 16.33%
C2: Frontier Technologies 0 449 149 598 4.10%
C3: Advanced materials 0 1498 0 1498 10.28%
C4: Smart information use 0 1462 84 1546 10.61%
C5: Promoting an innovation 178 1140 50 1368 9.38% culture and economy Safeguarding Australia
D1: Critical Infrastructure 102 100 0 202 1.39%
D2: Understanding our region and the world 95 0 0 95 0.65%
D3: Protecting Australia from invasive 0 659 0 659 4.52% diseases and pests
D4: Protecting Australia from 0 0 0 0 0.00% terrorism and crime
D5: Transformational defence technologies 0 0 0 0 0.00%
Total 1,102 12,084 1,391 14,577 100.00%
Table 7: RIRDC funding allocations against the Rural Research Priorities
Goal 1 Goal 2 Goal 3 Total Total Rural Research Priorities ($,000) ($,000) ($,000) ($,000) (%)
1. Productivity and adding value 393 8,178 692 9,263 63.55%
2. Supply chain and markets 372 762 98 1,232 8.45%
3. Natural resource management 43 678 79 800 5.49%
4. Climate variability and climate change 57 143 364 564 3.87%
5. Biosecurity 0 1,015 56 1,071 7.35%
6. Innovation skills 204 1,033 42 1,279 8.77%
7. Technolog y 33 275 60 368 2.52%
Total 1,102 12,084 1,391 14,577 100%
42 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014
R&D outputs and outcomes for 2013-14 Goal 1: Promote leadership and innovation in the rural sector
• Goal 1 strategies and research programs Strategy 1.1 Strategy 1.2 Strategy 1.3 Deliver analysis on Assess the feasibility, Encourage research issues of national value and potential that fosters science and importance to the rural competitiveness of industry creativity sector and broader new plant and animal community. industry opportunities
Goal 1 outcomes
• Rigorous feasibility assessments of rural industry diversification opportunities are undertaken and the results are publicly available. • Improved understanding of the threats and opportunities that could impact on rural industries is achieved. • RIRDC knowledge is valued and used by government, industry, other RD&E investors and research stakeholders to make policy and investment decisions for the benefit of rural industries and their communities. • Through early identification of issues RIRDC is a more informed investor and better prioritises its RD&E investments. • RIRDC facilitates research on emerging issues, new innovation and new industries for the Australian rural sector. Goal 1 research programs in 2013–14 There were three RIRDC research programs in Goal 1 in 2013–14: • National Rural Issues • Global Challenges • New Plant and Animal Opportunities Feasibility
45 • NATIONAL RURAL ISSUES
Summary of Research Program This was the second year of operation for the National Rural Issues (NRI) program, allowing the modus operandi of the program to develop. This included strong engagement with key stakeholder groups, such as the National Farmers’ Federation, TheDepartment of Agriculture, Department of Foreign Affairs and Trade, the Department of Infrastructure and Regional Development, the Regional Australia Institute and other research and development corporations. Ongoing engagement with key stakeholders, and oversight from the NRI Consultative Group, ensured that the programs’ purpose was well communicated and that key policy issues were identified, as they arose. The second year of operation saw a streamlining of management arrangements, as well as a number of existing projects being completed and a number of new projects commencing. As the program moves into its third year of operation, further streamlining will result in the NRI being merged with the Global Challenges program, broadening the scope of the program to address issues of importance to the rural industries from a domestic and global perspective, as well as delivering economies of scale. Objective To identify and undertake research to inform national policy development and debate on issues important to rural industries. This includes taking leadership on research where there may be cross-sectoral and national interests. Total Program Expenses
2012-13: $490,380 2013-14: $635,548
Stated Priorities for 2013-14 Inform and improve policy debate on contemporary rural issues that impact on Australian agriculture at national and regional scales. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Development of frameworks to better account for Two regional studies were completed, examining agriculture in regional development planning the opportunities and links between agriculture and regional economies Understanding demographic change in Analysis of recent data to understand changes Australian farmers in numbers and demographics of farmers across agriculture, with the final report launched by Minister Joyce. Understanding of food consumption A study examining projections of domestic food projections in Australia and how they relate to consumption and food production across a range of domestic production Australian agricultural industries Insights into key issues for policy makers relating Studies undertaken to understand trends in to rural issues transport vehicle ownership and operation, the agricultural and veterinary chemical market in Australia, phosphorus resources and farmer engagement in natural resource markets
46 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Final Reports
Plan for 2013-14 Outcome in 2013-14 Accounting for agriculture in place based Research complete – publication date frameworks for regional development, to be confirmed Northern Queensland regional study Accounting for agriculture in place based Research published frameworks for regional development, Northern Tasmania regional study Securing a sustainable phosphorus Research published future for Australia Nutritional sufficiency of Australia’s food Research complete – publication date production system to be confirmed Understanding agricultural and veterinary chemical Research continuing markets in Australia Road transport trends in Australia Research published Enterprise engagement in natural resource markets Research published ‘Food and Fibre’ supply chains study of key regions Research continuing in northern Australia Structural adjustment impacting rural communities Research complete
External Research Manager Responsible for Program Simon Winter Ph: 02 6281 5257 Email: [email protected]
47 • GLOBAL CHALLENGES
Summary of Research Program It is essential that Australia’s agricultural industries remain highly competitive, given the highly trade-exposed nature of the industries, both in terms of competition in export markets and imports to the domestic market. At the same time, the ‘after shocks’ of the Global Financial Crisis continue (resulting in increasing anti-competitive sentiment in global markets) and there is increasing competition for agricultural produce from emerging economies both in terms of supply and demand. In Australia, the rate of productivity growth in agriculture continues to decline; while the National Farmers’ Federation progressed its Blueprint for Australian Agriculture and the incoming Government commenced White Papers into the competitiveness of Australian agriculture and northern agriculture. The importance of agriculture in Australia is well- recognised, as is the need to continue to improve. Within this context the RIRDC Global Challenges program continues to provide rigorous R&D in support of improved industry profitability and sustainability. In 2013–14 the Global Challenges program undertook R&D relevant to understanding future global trade patterns and how they might impact on Australia, reaffirming the need for global markets to operate in a free and transparent manner, assessing the impacts of agricultural production on the environment, understanding drivers of productivity and consideration of alternate pathways to markets. The program continues to engage widely with a range of stakeholders to ensure topical issues are identified and addressed, as necessary. To continue to strive for greater efficiencies, the Global Challenges program will merge with the National Rural Issues program in 2014-15. Objective To collectively address global challenges, whether impediments or opportunities, to improve the profitability and sustainability of Australian agriculture. Total Program Expenses
2012-13: $526,291 2013-14: $594,689
Stated Priorities for 2013-14
• Identify impediments to a globally competitive Australian agricultural sector and support research into options and strategies to reduce these impediments. • Understand the factors impacting on global food security and identify risks and opportunities relating to food security issues for Australian agriculture. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Analysis of issues affecting market access Analysis published and provided to Government for Australian agricultural commodities and industry organisations in support of free trade in export markets agreement negotiations Reinforcement of the rationale for pursuing free Production of a report that highlighted the benefits trade and the disadvantages of not doing so of open and transparent global markets and the costs of barriers to free trade Understanding of individual country responses to Publication of a series of papers and publications food security issues drawing on global modelling of future trade and climate change scenarios and their impacts on food security Definition of the real opportunities for Australia in Input into the RIRDC submission to the relation to global food security Agricultural Competitiveness White Paper, drawing on previous work of the programt
Final Reports
Plan for 2013-14 Outcome in 2013-14 Reinforcing the need for open trading of global Research complete – publication date agricultural commodities to be confirmed Individual country responses to food security Global modelling of food security issues published Promoting systems-based approach to Not progressed - stakeholders identified more export certification pressing priorities to be addressed within a limited budget Assessing Australian agriculture — opportunities, Not progressed - stakeholders identified more regional risk and vulnerabilities in the context of pressing priorities to be addressed within a the Asian Century limited budget The opportunities from regional-based marketing of Studies into north QLD and Tasmania published Australian agricultural commodities New immigrants improving productivity in Research continuing Australian agriculture Climate change, trade policies and food security: Research published implications for Australia Developing a LCI database for Research published Australian agriculture Additional deliverables not foreshadowed in Publication of a report addressing the impacts of a 2013-14 AOP high Australian dollar on agrifood exports Publication of a report on the characteristics of farmers' markets Publication of a report modelling the impacts of free trade agreements on Australia Publication of a report on the effective administration of agricultural tariff quotas Publication of a report modelling the impacts of climate mitigation policies
External Research Manager Responsible for Program Simon Winter Ph: 02 6281 5257 Email: [email protected]
49 • NEW PLANT AND ANIMAL OPPORTUNITIES FEASIBILITY
Summary of Research Program The New Plant and Animal Feasibility program assesses the feasibility of animal or plant products that are very new to Australia, which have the potential to contribute to Australia’s agricultural productivity in a significant and sustainable way. These products have not been produced commercially in Australia in recent times. In 2013-14, the program made an open call for agricultural products with potential viability within Australia. Expressions of interest were submitted to RIRDC regarding the following products: • Figs • Forestry • Native currant • Lablab beans • Horseradish • Wild rice • Coconut • Palm sugar • Ancient grains • Peruvian purple corn The program invested in two feasibility projects on ancient grains and Peruvian purple corn. Objective Invest in feasibility studies into new plant and animal opportunities for Australia. Total Program Expenses
2012-13: $45,113 2013-14: $20,000
Stated Priorities for 2013-14
• Assess the feasibility of two new agricultural products/industries for Australia. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Two feasibility studies into new plant and animal The project ‘Feasibility and opportunities opportunities for Australia for Peruvian purple corn in Australia’ was contracted in 2013-14. The project ‘Ancient grasses make new products’ is scheduled to be contracted in 2014-15.
Senior Research Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected] Goal 2: Increase profit and productivity in rural industries
• Goal 2 strategies and research programs Strategy 2.1 Strategy 2.2 Strategy 2.3 Manage demand driven Facilitate investments Adopt a life-cycle RD&E that meets which deliver approach to investment industry needs. economic, social in new, developing and and environmental established industries. benefits for rural industries and the broader community.
Goal 2 outcomes
• RIRDC generates practical knowledge that assists industries to be more profitable, productive and sustainable. • Industry priorities are identified in individual Five Year RD&E Plan. • Well managed RD&E investments are made that meet rural industry productivity and sustainability needs. • There is commitment and investment by new, developing and established industries in RD&E. • Industry development and growth pathways are identified and supported by appropriate RD&E. • Leadership and collaboration is enhanced for key issues affecting multiple industries. Goal 1 research programs in 2013–14 There were 11 RIRDC research programs in Goal 2 in 2013-14: • Chicken Meat • Fodder Crops • Honey bee (includes Pollination program) • Horse (includes Hendra Virus) • Pasture Seeds • Rice • Essential Oils and Plant Extracts • New and Developing Animal Industries • New and Developing Plant Industries • Tea Tree Oil • Wildflowers and Native Plants
51 • CHICKEN MEAT
Summary of Research Program and Industry The chicken meat industry is considered to be at the established stage of the RIRDC industry life cycle and the program is funded by statutory R&D levies paid by industry participants on chickens hatched. ABARES forecasts chicken meat production to continue to rise from 1,080kt in 2013-14 to 1,110kt in 2014-15, with per capita consumption forecast to grow to 47.1kg by 2017-18. ABARES projects chicken meat to remain the most consumed meat in Australia, with its margin over other meats to continue to grow out to at least 2018-19. The RIRDC Chicken Meat Program’s investment in human capacity building in the animal welfare area (in a collaborative effort with Australian Pork Limited and Australian Egg Corporation Limited) began to deliver its intended benefits over 2013-14, with the portfolio of projects aimed at developing tools to measure animal welfare outcomes, developing objective standards of animal welfare, and strategies for evaluating and enhancing the welfare of chickens continuing to expand over the year. In response to several recent outbreaks of avian influenza in other sectors of the poultry industry, there was some refocussing of Program activities towards identifying ways to reduce biosecurity risks to the industry. An example of this was the development and support of a project aimed at identifying methods for deterring wild birds from farm dams, range areas and the vicinity of sheds, with the ultimate goal of reducing the risk of spill-overs of avian influenza from wild birds into commercial flocks. The Chicken Meat Program undertook a review of performance against its 2009-2014 R&D Plan over the course of 2013-14, and with this as background, developed and released a new Five Year RD&E Plan 2014-2019. The identified priorities in this new Plan are: 1. Increase the productivity and efficiency of chicken meat production. 2. Deliver safe food and good animal welfare outcomes. 3. Manage the environment for sustainable development. 4. Create foundations for the future, including capacity and market insight. 5. Ensure research adoption via extension and communication. In a continued effort to strengthen its role in the area of communication, extension, training and technology transfer, the Program sponsored a second series of workshops for chicken growers in May 2014 which focussed on managing ventilation during cold weather for bird health, welfare and performance outcomes, and has also initiated the development of a new communications plan for the Program. Objective
• Stimulate and promote R&D that will deliver a profitable, productive and sustainable Australian chicken meat industry that provides quality wholesome food to the nation. Total Program Expenses
2012-13: $2,945,504 2013-14: $2,552,845
52 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Reporting against the Guidelines on Funding of Consultation Costs by Primary Industry Portfolio Statutory Authorities This expenditure includes program administration and management costs, which included $123,688 for R&D management services paid to the Australian Chicken Meat Federation Inc (ACMF). The list of projects managed by the ACMF, including the nature and outcome of each project, are summarised below. Stated Priorities for 2013-14
• Address husbandry, nutrition, disease management and physiology issues that constrain production and productivity in the chicken meat industry and/or which result in adverse animal welfare outcomes. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Undertake research for the Chicken Meat industry • Nine projects focussing on animal welfare, to address nutrition, health and welfare and production efficiency and environmental outputs environmental issues: completed in the course of 2013-14. • At least seven projects, focusing on animal • Ten new project outputs became available on- welfare, production efficiency and environmental line in 2013-14. outputs completed and at least seven project outputs available on-line. • The viability of vectored bacterial vaccines assessed, the viability of developing a new • Feasibility of at least one new animal health diagnostic test for detecting antibodies to H5N1 product, one new diagnostic test and one new avian influenza assessed (unsuccessful) and technique for monitoring odour emissions from a new method for continuous monitoring of farms assessed. odorous emissions from meat chicken farms (by SIFT-MS technology) was evaluated and proven • At least one new diagnostic test to be to have potential. available to industry. • A new Enzyme-Linked Immunosorbent Assay (ELISA) test for avian nephritis virus was successfully developed and is now commercially available to the Australian industry.
Final Reports
Plan for 2013-14 Outcome in 2013-14 Evaluation of NIR-based diet formulations for Final report delivered and published on the broiler chickens RIRDC website in September 2014 and presentation of results at a key industry symposium, demonstrating improved accuracy and robustness of the AusScan NIR calibrations for predicting the AME content of cereal grains, thereby improving the value of and confidence in this technology for industry nutritionists who make use of this commercially available test. Avian influenza: improved diagnostics for detecting Final report delivered and published on the antibodies to H5N1 RIRDC website in September 2014 which detailed extensive (but unsuccessful) attempts to develop a competition ELISA aimed at detecting antibodies specifically against H5N1 avian influenza. Available phosphorous requirements of broilers Final report delivered in July 2013. The results demonstrated that it is possible to safely reduce dietary available phosphorous levels in broiler diets from current levels, which will reduce the cost of poultry production and decrease phosphorous excretion to the environment.
53 Plan for 2013-14 Outcome in 2013-14 Artificial olfaction system for on-site A final report was delivered in June 2014 that odour measurement showed that, although there is a demand for on- site odour assessment technologies, an artificial olfactory system is not currently commercially viable for broiler odour applications and is unlikely to become so unless sensors that are more specific and sensitive to the key odorants become available. Implementation of a net energy system for the Final report delayed until December 2014. Papers Australian chicken meat industry on the significant progress made have been published and presentations given at key industry and animal nutrition workshops. Development of a vaccine to control Final report delivered in March 2014. Prototype campylobacter in chickens adenovirus based vaccines for Campylobacter jejuni were constructed and their effectiveness in preventing colonisation of chickens with Campylobacter jejuni evaluated. Dislocated calcium alimentation for broilers Final report delivered in June 2014. While the research found that although broilers have a calcium-specific appetite, it is likely to be difficult to exploit this commercially, although the finding that calcium appears to be prioritised over phosphorous is of importance in a nutritional context. Parallel development of novel vaccine Final report delivered and published on the vectors (pilot study) RIRDC website in September 2014. The results showed that ILTV can be used as a vector to express antigens from another poultry pathogen and could be useful for the future development of vectored vaccines for the Australian poultry industry. Nuffield Australia Farming Scholarships – Final report delayed until September 2014. Guy Hebblewhite 2013
Additional deliverables not foreshadowed in the 2013-14 Annual Operating Plan
Poultry litter: alternative fertiliser and ways to Final report delivered and published on the increase soil organic carbon RIRDC website in September 2014. Results demonstrate the value of litter as a source of fertiliser for grazing pastures on different soil types. Reducing costs and energy by replacing inefficient Final report delivered in May 2014, along with a ventilation fans spreadsheet-based tool designed to compare the performance and costs associated with running different poultry house fans. This tool can be used by growers to help them to assess the economic viability of replacing fans with more efficient models through reduced energy costs. Rapid continuous chemical analysis of broiler shed Final report delivered in June 2014. Trials of a emissions by SIFT-MS technology used for measuring low levels of volatile organic compounds (VOCs) in other, industrial applications, demonstrated some potential for its use in detecting and monitoring levels of VOCs associated with chicken farm odours. Solar guidelines for the Australian Recieved June 2014. Guideline document and other on-farm chicken industry support tools delivered to help growers to assess the viability of a solar installation on their property
54 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Plan for 2013-14 Outcome in 2013-14 Broiler farm odour dispersion modelling from Final report delivered in May 2014. The findings AERMOD, AUSPLUME and CALPUFF of this analysis will help industry and other stakeholders understand the implications of a recent change in the odour dispersion model used in one state (with potential to flow on to other states) to assess broiler farm odour impacts on neighbours. FAO Poultry Technical Working Group Final report delivered in April 2014. Actively participated in the development of global guidelines for the assessment of livestock environmental performance, an activity lead by the FAO, facilitating alignment of the methodologies used for life cycle assessment of the Australian chicken meat industry’s environmental footprint with emerging global methodologies. 2013 Microorganism survey to support ongoing Report on survey results delivered in October pathogen reduction programs 2014, along with a comparison with results from previous years, providing evidence of improvements made in the outcomes of industry’s pathogen reduction programs. Vitamin K and broiler bone development Final report delivered in September 2013. The research demonstrated that the vitamin K concentration in eggs can be manipulated in response to both the dietary concentration of the vitamin in the hen’s diet and the form of the vitamin fed, providing a possible commercial pathway for potentially improving leg strength in meat chickens through vitamin supplementation of their parent dams.
External Research Manager Responsible for Program Dr Vivien Kite Ph: 02 9929 4077 Email: [email protected]
55 • FODDER CROPS
Summary of Research Program and Industry The fodder and silage industry is an AUD$2 billion a year industry. There are strong export growth prospects for Australian fodder in China, Vietnam, the UAE and Korea. Demand for hay is strong domestically, as the drought in Queensland grips, and low supply is driving prices in this region to $400/t for cereal hay and $500/t for Lucerne. The fodder program fits in the established industry category in the RIRDC industry life- cycle analysis. The RD&E activities are funded 50:50 by industry voluntary contributions and RIRDC core funds at a program funding level. The fodder RD&E program has reached a point where a different financial model for the program’s continued operation is critical to determine. Both the industry and RIRDC are working towards transitioning to new financial and program arrangements. Objective
• To stimulate and promote those R&D efforts that will produce quality fodder products and secure sustainability and profitability for all sectors of the Australian fodder industry value chain in domestic and export markets. Total Program Expenses
2012-13: $462,150 2013-14: $455,962
Stated Priorities for 2013-14
• Continue the development of important fodder varieties. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Oaten hay varieties will be progressed through Two oat hay lines have been increased for release. disease nursery and hay trials One is ready, with bulked breeder seed for commercial production and delivery in late 2014. The second has improved disease resistance and breeder seed will be produced in Western Australia. Over 1,600 oaten hay lines were assessed in the disease nursery. Additionally, prospective lines were refined from 2,700 to 32 through a series of five evaluation stages. Two important molecular markers - salt tolerance Molecular markers and phenotypic assays were and water soluble carbohydrate - will be delivered to developed for water soluble carbohydrates, boron the Oaten Hay Breeding Program and salt tolerance, respectively. The markers and the phenotypic assays are now being used for selection in the national oat breeding program. Two varieties of vetch will be commercialised Commercialisation of two new woolly pod vetch lines has not yet been achieved. Two lines have been accepted for commercial release by a seed company.
56 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Final Reports
Plan for 2013-14 Outcome in 2013-14 Development of molecular markers in oats The project has been completed and the information on the project outcomes has been drafted as two scientific manuscripts called ‘Tolerance to Boron and salinity stress – rate studies comparing oat, wheat and barley’; and ‘SNP discovery in oat and anchoring to sequenced grass genomes’. New common and woolly pod vetch varieties for Two lines have been accepted for commercial grain and hay/silage release by a seed company.
Senior Research Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]
57 • HONEY BEE (INCLUDES POLLINATION PROGRAM)
Summary of Research Program and Industry RIRDC considers the Honey Bee and Pollination industry to be at the established stage of RIRDC’s industry life-cycle. The program is funded by a statutory R&D levy and Horticulture Australia Limited, with investments made to deliver the RD&E Plan. To ensure the maximum investment in RD&E, a number of approaches to program changes were introduced, including the funding of fewer, but larger projects and from July 2014 a single Honey Bee and Pollination Program, RD&E Plan and advisory committee. The beekeeping industry has experienced lower honey production this financial year, due to drought conditions and bushfires that burnt hives. However, the levy to the Program held-up, due to sales of honey inventories held by some producers and packers. Pollination services were provided to many crops, with almonds continuing to be the industry that requires and demands the largest number of hives. RIRDC made a submission to the Senate inquiry into the future of the beekeeping and pollination services industries in Australia. Objectives
• To support RD&E that will secure a productive, sustainable and more profitable Australian beekeeping industry. • To support RD&E that will secure the pollination of Australia’s horticultural and agricultural crops into the future on a sustainable and profitable basis Total Program Expenses
2012-13: $1,006,122 2013-14: $1,061,537
Stated Priorities for 2013-14
• Facilitate the roll-out of the National Bee Pest Surveillance Program focused on high risk ports. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Undertake research for the honey and pollination The research allowed beekeepers to: services industry to address pests and diseases and increase productivity and profitability • Understand which pathogens the Varroa jacobsoni mite can transmit to honey bees. • Assess how mating between Asian Honey Bees and European honey bees impacts on the viability of European honey bee brood. • A comparison of the impacts of using non- enclosed and enclosed screened bottom boards in honeybee hives. The research allowed the manager of the National Bee Pest Surveillance Program, Plant Health Australia, to allocate resources based on the relative likelihood of establishment of pest bees and bee pests at various Australian ports.
58 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Plan for 2013-14 Outcome in 2013-14 Additional deliverables not foreshadowed in the • Beekeepers will financially benefit from the 2013-14 Annual Operational Plan discovery that honey from four species of Australian eucalypts have prebiotic activity. • Beekeepers benefited from participating in a ‘Neonicotinoids and other Insecticides – research and stewardship symposium’, jointly funded by RIRDC, Australian Pesticides and Veterinary Medicines Authority and GRDC. • Three ‘Honey bee R&D Newsletters’ were published and distributed to stakeholders. • Six beekeeping industry association conferences were sponsored (all states, no territories) and a member of the Honey bee and Pollination Advisory Committees made a presentation about the programs at each. • The communications strategy for the Pollination Program continued to be rolled-out and included the distribution of five media releases to help communicate the outcomes of research from the Pollination Program and to encourage adoption by industry and education of the wider community regarding the importance of pollination services. • A new Honey Bee and Pollination Program Five Year RD&E Plan 2014/15 – 2018/19 was developed.
Final Reports Plan for 2013-14 Outcome in 2013-14 Genetic variation of Varroa jacobsoni and pathology A summary of this project is available on of microbial pathogens RIRDC’s website. Sexually transmitted diseases as threats for The PhD scholar submitted her thesis to Australian honey bees the University of Western Australia and a summary of the findings are expected to be published in 2014-15. T2M Inter-specific matings betweenA. cerana Asian Honey Bees (A. cerana) were found to mate and A. mellifera with European Honey Bees (A. mellifera) but the eggs were unviable. A summary of this project was reported in the June edition of RIRDC’s Diversity magazine, available on the RIRDC website. T2M Risk assessment of ports for bee The report of this project was provided to the pests and pest bees manager of the National Bee Pest Surveillance Program, Plant Health Australia, who have allocated resources based on the reported relative likelihood of establishment of pest bees and bee pests at various Australian ports. Residues and safety trials for SHB The data allowed the Australian Pesticides and harbourage device Veterinary Medicines Authority to register the product known as Apithor. Screened bottom boards Bee hives with screened bottom boards, used overseas to assist with the management of Varroa mites, were found under Australian conditions not to reduce the quantity of honey that the hive produced.
Senior Research Manager Responsible for Program Dr Dave Alden Ph: 02 6271 4128 Email: [email protected] 59 • HORSE (INCLUDES HENDRA VIRUS)
Summary of Research Program and Industry In August 2013 68 per cent of Thoroughbred breeders voted to support the introduction of a research and development levy. In November 2013 Thoroughbred Breeders Australia lodged a submission for the introduction of the levy. At the time of printing this Annual Report, the Australian Government was reviewing the submission. No new projects were funded through the program and ongoing projects drew-down on the program’s reserves. RIRDC continued to manage seven research projects in the National Hendra Virus Research Program which are scheduled to be completed in 2014-15 and 2015-16. In 2013 four horses were confirmed to have been infected with Hendra Virus, compared with ten in 2012. Objectives
• For the Australian horse industry to be nationally and internationally recognised for its excellence as a reputable user and supplier of quality horses, products and services; and for the industry to expand in the global market by having the requisite skills and knowledge for efficient, profitable and sustainable production. Total Program Expenses
2012-13: $1,305,743 2013-14: $779,619
Stated Priorities for 2013-14
• Assist the Thoroughbred sector of the horse industry prepare a submission for an R&D levy. • Manage the Australian Government’s investment in the National Hendra Research Program. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Undertake research for the horse industry to address The research allowed horse breeders, owners, health, safety and welfare trainers, riders and researchers to: • Understand the effect of galloping on the bones of racehorses and strategies that reduce injury in racehorses. • Determine whether exercise-induced bleeding in the lungs of horses can be treated. • Understand how nanotechnology can be used to deliver drugs to treat laminitis in horses. • Understand the effects of padded whips on horses to assist industry develop science-based policies concerning whip use. • Determine the suitability of jockey’s safety vests. A submission for a Thoroughbred horse R&D levy was made by Thoroughbred Breeders Australia to the Minister for Agriculture.
60 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Final Reports
Plan for 2013-14 Outcome in 2013-14 Developing training programs to prevent injury in This project was been completed and a fact sheet young racehorses about this project is expected to be published on RIRDC’s website in 2014-15. Efficacy of IV and aerosolised recombinant equine This project was terminated as horses failed to TNF-α for treating EIPH respond to the treatment approach. Working towards a more accurate diagnosis of This project will be completed in 2014-15. inflammatory airway disease Laminitis treatment by regional drug delivery to This project was been completed and a fact sheet the horse’s foot about this project is expected to be published on RIRDC’s website in 2014-15. Determining forces generated using a padded whip This project was been completed and a report and impacts on the horse about this project is expected to be published on RIRDC’s website in 2014-15. Targeting blood cell activation and clotting This project was been completed and a fact sheet dysfunction in equine endotoxaemia about this project is expected to be published on RIRDC’s website in 2014-15. Health and Safety in Australian Racing: Evaluation The Australian Racing Board has undertaken a of Safety Vests number of initiatives as a result of the investigation into the effectiveness of existing safety vests for jockeys and trackwork riders in Australia. The report is published on RIRDC’s website. Thoroughbred horse R&D levy Through consultation with breeders, a submission for a Thoroughbred horse R&D levy was developed and made by Thoroughbred Breeders Australia to the Minister for Agriculture.
Senior Research Manager Responsible for Program Dr Dave Alden Ph: 02 6271 4128 Email: [email protected]
61 • PASTURE SEEDS
Summary of Research Program and Industry The RIRDC Pasture Seeds RD&E Program is focussed on certified temperate pasture legumes. The levied temperate pasture species, which is the focus of this program, are medics, Lucerne, serradella, sub-clover and white clover. Annual production of seed from these species has been estimated at 20,600 tonnes, excluding farmer-to-farmer seed sales. Annual production of certified temperate pasture seed has been estimated at 8,500 tonnes. The pasture seeds GVP for levied varieties for 2012-13 was $40 million. Total pasture seed GVP was estimated at $107 million. The temperate pasture seeds industry is regarded as mature on the RIRDC industry lifecycle. The 2013-14 year is the start of the 2013-2018 Pasture Seeds five year RD&E plan. The plan was developed in consultation with industry stakeholders and has a focus on the collection of market data, leadership, products and communication with all parts of the pasture seed industry. 2013-14 represents the finalisation of projects from the previous five year RD&E plan. Objectives
• To maximise opportunities and minimise risks for a profitable and sustainable pasture seeds industry based on a reputation for reliable supply, domestically and internationally, of a range of quality pasture species. Total Program Expenses
2012-13: $336,713 2013-14: $294,538
Stated Priorities for 2013-14
• Contribute in the pastures seeds industry to new variety development and better management choices both on farm and along the supply chain. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Commercialisation of a new species of pasture, A number of technologies for low cost tedera Bituminaria bituminosa (Bituminaria bituminosa) seed production were developed which included seed yield responses to water, plant characters that influence seed production and efficient harvesting technologies. These are expected to create efficient and low cost seed production, which in turn accelerates adoption. Seednet/Landmark has won an expression of interest to deliver this new pasture seed.
62 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Plan for 2013-14 Outcome in 2013-14 Fact sheets outlining the evaluation and analysis • A project was completed that determined of two common methods of irrigation used in no significant difference between overhead producing white clover seed, and different methods sprinklers and drop tubes usage on white clover of fertilisation of Lucerne seed yield. In fact, the findings determined that a 25-30% reduction in irrigation volume per irrigation event had no detrimental effect on seed yield, thus increasing the $ return per mega litre by 35-100%, and so has provided farmer confidence on irrigation efficiency. A fact sheet about this research is being developed in 2014-15. • The independent fertiliser trial showed seed growers a comparison of different fertilisers in both dryland and irrigated paddocks. Outcomes to date have shown the relative gross margins between the different fertilisers. The analysed data summaries were distributed at the annual field day of the demonstration site. Delivery of molecular markers for breeding A journal article was accepted by the nematode tolerant medics Biomedcentral Plant Biology science journal on the genetic analysis of Pratylenchus tolerance in medics. The markers have been made available to medic breeders. Completion and delivery of a survey, a molecular A fast diagnostic assay for farmers to determine diagnostic assay, and a management package if they had insecticide resistant green aphids to assist Lucerne growers in the identification was delivered. A range of fact sheets, four and management of a new insecticide resistant scientific publications, field visits and symposium blue green aphid presentations were also delivered. A field day will be promoted and delivered to show Reports updating pasture seed growers on both the results of the variety and fertiliser trials, as well variety trial analysis and fertiliser trial results were as a conference, and some workshops around dodder delivered at the respective field days. A Lucerne detection and management. seed contract developed from a previous RIRDC project was launched at the Trial Site Field Day. Continued workshops to facilitate an action plan for golden dodder biosecurity were held. A grower symposium on ‘GM friend or foe?’ was held in Keith, S.A. on 14 November 2013. Additional deliverables not foreshadowed in the • A review of the Pasture Seeds Program 2013-14 Annual Operational Plan by Agtrans Research found that RIRDC investments in projects addressing the program objectives generated pasture seed grower and community benefits that included increased yield/yield loss avoided; reduction in input costs; increased profitability from industry expansion (in export markets); improved demand; decrease in adverse environmental impacts from production; and increased scientific and industry capacity. • Additionally, the RD&E priorities in the new five year plan were: fostering industry alliances, collaborations and partnerships; focus on the collection of market data and market education; improve industry capacity through skills and leadership training; create products that increase production and processing efficiency; and improve industry knowledge through innovative extension and communication products.
63 Final Reports
Plan for 2013-14 Outcome in 2013-14 Commercial seed technology for Bituminaria A seed company has won an expression of interest bituminosa var. albomarginata to deliver this new pasture seed. Introgression of tolerance to Pratylenchus neglectus A scientific journal article was accepted, into annual medics and the markers have been made available to medic breeders. Evaluating drop tube and sprinkler irrigation for A final report has been received, fact sheets white clover seed production are being developed as well presentation of the results at the next Lucerne Australia field day in Keith, S.A. A new blue green aphid — a biohazard to the A diagnostic assay, a range of fact sheets, four pasture seed industry scientific publications, a number of field visits and a symposium presentation was delivered. Lucerne Australia communication and Research summaries, farmer fact sheets, a number adoption project of field days, industry workshops, as well as a number of topical grower symposiums were delivered by this project. Additional deliverables not foreshadowed in the • The new Pasture Seeds Five Year RD&E Plan 2013-14 Annual Operational Plan was published on the RIRDC web site. • The review of the previous five year RD&E Pasture Seeds Program by Agtrans Research forms an appendix within the new Pasture Seeds Five Year RD&E Plan.
Senior Research Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]
64 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • RICE
Summary of Research Program and Industry The Australian rice industry is a successful industry involving more than 1,500 farm businesses, and up to 8,000 employees in the associated growing, milling and transportation activities. The rice industry GVP for 2013-14 was $271,775,437 and has a rolling average of $255 million. Up to 80 per cent of the rice crop is exported. The industry is still adjusting to the loss of NSW DPI extension agronomists, water price fluctuations and rebuilding leaders for the industry. An extension project to coordinate public and private R&D has been a success this last year. Additionally, new water efficient rice varieties are very close to delivery. Several strong industry leaders have been identified and supported and this will benefit agriculture in the rice growing region now and into the future. The Australian rice industry is classified as an established industry by RIRDC and the RIRDC Rice RD&E program is funded by a grower levy. Objective
• To improve the productivity and sustainability of the Australian rice industry through the organisation, funding and management of a research, development and extension program that is aligned with industry reality and stakeholder needs. Total Program Expenses
2012-13: $2,878,495 2013-14: $4,349,127
Stated Priorities for 2013-14
• Invest in the rice industry to develop new varieties, better input management and explore the feasibility of innovative products. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 A new project will begin a review of the optimal At the annual rice industry field day a summary sowing rate and resulting row spacing for maximum of the results for optimal sowing rate and row yield and water use efficiency of rice spacing to maximise yield and water use efficiency were displayed. The trials to show how to improve rotational crop establishment options following rice, which were established at Yanco, Jerilderie and the Murray Valley, were also presented. A project assisting the implementation of precision Two “Introduction to Precision Ag” workshops agriculture in the Australian rice industry will hold were run; a briefing attended by around 300 workshops and create case study booklets of the growers was held at the annual rice industry field 2013 rice yield data day about the latest precision agriculture results; the farmer Case Studies Booklet is in the final stages of being delivered; on-farm trials were conducted for the 2013-14 season; findings are showing that the importance of having a level paddock (uniform depth of water) and addressing variability in plant available nutrient supply caused by traditional cut and fill levelling methods is gaining critical importance.
65 Plan for 2013-14 Outcome in 2013-14 Trials of rice options for the Ord will continue. A trial to determine profitable rice options for the Ord district has continued with one variety, Viet 1, a standout. A demonstration day for the trial was held where a number of published articles and fact sheets that had been developed were delivered to 16 growers. A project delivering best herbicide use summaries Best herbicide use summaries were distributed with and associated field days a presentation at demonstration plots, at the annual rice industry field day. Farmer meetings will be held to encourage Over 720 rice crop samples were put through the accurate use of Near Infrared (NIR) the NIR tissue test services to predict rice tissue tissue test services nitrogen content and subsequent nitrogen top dressing recommendations in the 2013-14 season. Two projects will provide information about Information through field days and presentations chemicals for snail control, sowing method on chemicals that can be used for snail control, influencing seed disease incidence, methods to best herbicide use, and investigations into rice blast reduce disease during the establishment phase of races present in Australia were delivered at the rice rice production, and investigations into rice blast annual R&D seminar day, as well as at the annual races that are present in Australia rice industry field day. Four projects will continue analysis and research Molecular markers, protein profiles and germplasm to develop molecular markers and germplasm to have been analysed to assist in the rice breeding eventually deliver new varieties of rice program to deliver new varieties of rice. A project to assess the extension services gap in the Rice extension services have been assessed and a rice industry and to determine the communication structure implemented through a rice extension products that will be required to be created and coordinator. Products required have been delivered to address this identified and are in the process of being completed for delivery to rice growers. One rice industry candidate will be identified A rice industry candidate has been identified and and supported for the Australian Rural will be supported to participate in the Australian Leadership Program Rural Leadership Program. One rice industry candidate will be identified Two rice industry candidates were identified and and supported for a Nuffield Scholarship and a were supported to participate in the Nuffield Horizon Scholarship Scholarship, and one candidate has been supported in the Horizon Scholarship. Four articles will be created and published in the The IREC Farmers' Newsletter Autumn edition Irrigation Research and Extension Committee was distributed to 2,700 irrigated farmers with (IREC) farmers newsletter articles on irrigating wheat after rice, converting rice layouts to row crop layouts and two articles from the Nuffield Scholars. Initiation of a trial site to determine the benefits of A trial site has assessed the benefits of degradable degradable polymer film use in a rice system. polymer film use in a rice system. Further trials will be run to confirm positive results of early emergence and a definitive conclusion on yield. Initiation of a project to determine the feasibility of An initial study of the effect of microwave energy the use of microwave technology to manage weeds on soil biota has been undertaken, as well as in a rice farming system preliminary studies of microwave treatment of grasses and their seeds to determine an ecological model for crop yield potential. A draft paper of these findings has been prepared for submission to a scientific journal. Initiation of a PhD project to determine The PhD student has completed a preliminary value adding opportunities for a rice literature review and has made substantial progress processing by-product in the experimental work. Results are showing that there is considerable antioxidant activity, correlated with protein hydrolysis, and work is continuing to analyse other bioactivities of the hydrolysates.
66 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Final Reports
Plan for 2013-14 Outcome in 2013-14 Ricegrowers’ Association Communication and The RGA undertook the planning and Adoption Project coordination of each of the annual Rice Field Days, the annual rice R&D seminar day and the dissemination of R&D at the annual rice conference. They would also organise and facilitate the collection of R&D data from farmers’ farms, arrange the rice pre-season planting meetings, arrange meetings with the GRDC and CRDC to pursue cross sectoral opportunities, and arrange work and industry placements for the Horizon Scholarship. Farmers newsletter (IREC) The IREC newsletter has delivered four articles about the latest rice R&D. Australian Rural Leadership Program An outstanding candidate has been found each year Scholarship for Course 20 that this scholarship has been called for, and each candidate has gone on to lead in different areas in the rice industry. Nuffield Scholarship for a rice grower An outstanding candidate has been found each year (and sometimes two candidates) and each continues to contribute to the growth of agriculture and rice farming. Horizon Scholarship The Horizon Scholars have had access to many different areas of the rice industry through support to attend industry field days, as well as having availability to industry participants.
Senior Research Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]
67 • ESSENTIAL OILS AND PLANT EXTRACTS
Summary of Research Program and Industry The RIRDC Essential Oils and Plant Extracts program represents a number of different industries, and a wide variety of end uses. The dominant products in Australia are eucalyptus, sandalwood, lavender, peppermint and fennel. Industries that use essential oils include pharmaceutical, industrial and food. Essential oils are used for their therapeutic properties, perfumery, food additives, and as industrial chemicals. Medicinal herbs are produced for complementary medicines and for the extraction of active compounds for pharmaceutical medicines. The global market has been growing steadily over the past decade with sales in the United States growing at between 3 – 4 per cent a year. In Australia there are three large herb growers, a few medium sized growers and about 50–60 small growers. The value of medicinal herb production in Australia is estimated to be around $2 million a year. The processing of medicinal herbs in Australia draws largely on imported material and so there is scope for import replacement. Australia exported $42.8 million worth of essential oils in 2011–12 and imported essential oils worth $35.6 million. R&D in 2013–2014 focused on four strategic areas, including improved production systems, demonstrated safety and efficacy of Australian products, development of new products, and improved industry and research capacity. Management of Myrtle rust became a serious issue in Australia in 2011, particularly for the lemon myrtle industry, with the potential for it to become more widespread. RIRDC committed additional funding to address this threat in 2012–13 and a number of positive research outcomes have been delivered to address this issue. Opportunities to develop capacity for this industry are encouraged by RIRDC. The industry peak body is the Essential Oil Producers Association of Australia (EOPAA). Objective • To provide the knowledge and skills base for industry to provide high, consistent and known qualities in their essential oils and plant extracts products that respond to market opportunities and enhance profitability, productivity and sustainability. Total Program Expenses
2012-13: $476,674 2013-14: $423,838
Stated Priorities for 2013-14
• The Essential Oils and Plant Extracts Program focussed on: –– Developing agronomic and extraction parameters for Centipeda cunninghamii production. –– Communicating the RD&E outcomes of the Essential Oils and Plant Extracts Program through the EOPAA Newsletter and website. –– Developing research capacity through a research scholarship in Eucalyptus oil breeding. –– Identifying causes and management solutions for fungal diseases in sandalwood. –– Developing bioactive extracts for the personal care industry.
68 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Increased productivity through disease The sandalwood industry are now better able to management, e.g. pythium in ginger, respond with improved management techniques pathogens in sandalwood to minimise fungal infection by understanding when in the tree’s life cycle, and in what season, it is safest to prune. Increased productivity through new product The essential oil and plant extracts industries development, ranging from plant extracts for continue to investigate new products by: the cosmetics industry through to new varieties resulting from technological advances in breeding. • Demonstrating efficacy of a range of plant extracts from plant waste streams and exploring their potential for the cosmetic market. • Making improved genetic selections of new crops such as Centipeda that may form the basis of a new high value industry. Minimising the impacts of Myrtle rust for new Industries impacted by Myrtle rust (tea tree oil, and emerging industries with a myrtaceous eucalyptus oil, waxflower, thryptomene and native plant base and the subsequent spread into the foods) are now able to respond to Myrtle rust with surrounding environment chemical solutions by applying for emergency permits with the APVMA and by: • Developing residue limits for chemicals used to treat native foods impacted by native foods. • Selecting resistant genetic material within crops impacted by Myrtle rust. • Understanding management impact on the spread of Myrtle rust in native food plantations.
Final Reports
Plan for 2013-14 Outcome in 2013-14 Tropical sandalwood silviculture management to Final report delivered. The research provided an minimise fungal attack understanding of when in the tree’s life cycle, and in what season, it is safest to prune sandalwood in order to minimise fungal attack. Bioactive extracts for the personal care industry Final report delivered. Pilot- and commercial- scale extraction processes were optimised and validated for four new plant extracts. A licencing arrangement for these extracts has been developed and the commercialisation process is now progressing. Additional report not foreshadowed in the 2013-14 The investment in the 13 projects of $3.9 million Annual Operational Plan: produced a benefit cost ratio of 5.8 to 1 and when compared across the entire investment produced a • Economic Evaluation of Investment in the benefit cost ratio of 3.6 to 1. Essential Oil and Plant Extracts R&D Program
Senior Research Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]
69 • NEW AND DEVELOPING ANIMAL INDUSTRIES
Summary of Research Program and Industry The new and developing animal industries program includes both levied and non-levied industries. Through consultation with industry, opportunities to enhance industry performance through conducting RD&E were identified wherever possible. While many may require industry-specific investigation (e.g. nutrition, disease, husbandry for a particular species), there are a number of issues that present impediments or opportunities to more than one industry. These issues could be addressed in a cross-industry manner, providing benefit to several industries and enhancing the value of RIRDC’s investment. As all of the levied industries have committed to ongoing financial contributions to RD&E, each warranted its own plan within this broader Animal Industries RD&E Plan. There is a single plan for all of the non-levied industries. Several industries are in a situation where the largest barriers are commercial rather than technical, and thus cannot be comprehensively addressed by projects that readily fall within the definition of research and development as defined by the PIRD Act (1989 and amended 2013). These barriers include lack of processing facilities, orderly marketing arrangements, scale or access to markets. It is also of note that for some industries, especially non-levied industries (e.g. dairy sheep and goat, marron, rabbit, redclaw and potentially crocodile) the problem is not lack of demand, but lack of commercial supply. For many of the new and developing animal industries, the last few years have been very difficult due to a range of factors – cost of production increases, impacts of droughts, disease, lack of scale or market impediments. This has led to stagnation or, in many cases, reductions in the gross value of production (e.g. rabbit, emu, redclaw, marron, deer, fibre goats, buffalo and kangaroo). To be commercially viable, many enterprises need to move from being ‘hobby farms’ to being businesses that adopt best practice in all facets and are eagerly embracing new technologies. Objective • To conduct RD&E for new and developing animal industries that contribute to the profitability, sustainability and productivity of regional Australia. Total Program Expenses
2012-13: $1,603,237 2013-14: $1,395,863
Stated Priorities for 2013-14
• Improve production efficiencies, increase research capability, and research the characteristics and market advantage of new animal products which demonstrate prospectively for Australia. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 A final framework/manual to assist the Indigenous This project has now been completed, with the pastoral industry to become viable final version of the Indigenous pastoral manual printed and circulated to extension officers in northern Queensland, Northern Territory, Western Australia and South Australia. The manual is available online, via the RIRDC and FutureBeef websites.
70 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Plan for 2013-14 Outcome in 2013-14 A comprehensive report on the The project is progressing and will be production of marron completed in 2014-15. Finding a polycheate (bait) worm industry partner An extension to this project is being negotiated. to commercialise research into this new industry Alpaca immunoglobulin research is completed and This project has now been completed, with the an investor utilises the technology revised final report being prepared for publication subject to confidentiality protection. The project has found that alpaca produce high levels of antibody and a test was developed to identify high-responding individuals early in life. Alpaca anti-venom was extremely effective at neutralising pro-coagulant effects of three snake venoms (and a dog was saved from snakebite during the course of the project using the alpaca product). Further work is needed on the extraction of antibodies from serum and to determine whether alpaca anti-venom is likely to evoke allergic reactions in people. The researcher has been asked to identify a commercial funding partner for this next phase. Additional report not foreshadowed in the 2013-14 This research showed that the public believe Annual Operational Plan: commercial harvesting is an acceptable form of kangaroo management, as long as it is done by • Improving the humaneness of commercial professional and skilled shooters, and the carcases kangaroo harvesting are used rather than wasted. For kangaroos, the harms associated with harvesting will be reduced; harvesters now have practical information so that good welfare practices can be accepted, implemented and continually improved by them during harvesting; policymakers can have confidence that policy development and training is based on the best available science; and the general public can be reassured that the welfare of kangaroos during harvesting is an important issue.
Final Reports Plan for 2013-14 Outcome in 2013-14 Marron production enhancement Now due for completion in 2014-15
Developing an effective diluent for transport Now due for completion in 2014-15 of rabbit semen Development of a polychaete worm aquaculture Now due for completion in 2014-15 industry in South Australia Molecular selection tools for the Australian Now due for completion in 2014-15 crocodile industry Indigenous Pastoral consultancy services — Stage 1 The manual is available online, via the RIRDC and FutureBeef websites Alpaca immunoglobulins phase 2 The final report will be published in 2014-15
DIAA website maintenance and information for the The website was maintained to allow Australian deer industry information to be accessed Improving the humaneness of commercial The final report was published on RIRDC’s website kangaroo harvesting
Senior Research Manager Responsible for Program Dr Dave Alden Ph: 02 6271 4128 Email: [email protected] 71 • NEW AND DEVELOPING PLANT INDUSTRIES
(Carob; Cocoa; Coffee; Dates; Hazelnuts; Jujubes (Chinese dates); Native foods and plants; Native grasses; Quinoa; Tropical fruits; and Truffles) Summary of Research Program and Industry The New and Developing Plant Industries program covers a suite of investments related to plant industries that are at various stages of development. RIRDC’s investment in the new and developing plant industries supports the critical role new industries play in helping the Australian agricultural sector to diversify. There is strong and growing pressure on Australian agriculture, from declining terms of trade, increased competition, and cross-cutting issues such as climate change. Diversification helps industries to better respond to those pressures and ultimately be more profitable and competitive. The New and Developing Plant Industries program helps to offer diversification options by assisting the development of new and emerging industries that are: • likely to have significant market opportunities; • likely to have a competitive advantage; • attractive to producers for expansion; and • able to identify R&D issues that are critical blocks, and pathways to adoption. Objective
• To facilitate the development of new and emerging industries based on plants or plant products that have commercial potential for Australia. Total Program Expenses
2012-13: $1,044,206 2013-14: $1,438,363
Stated Priorities for 2013-14
• In new plant industries improve production efficiencies, and understand the characteristics, market advantages and feasibility of some new plant industries which are prospective for Australia. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 A field day will be held showcasing the established A propagation workshop was held and plot and analysis of Platysace deflexa as a native demonstrated that existing horticultural vegetable industry machinery could be used to harvest Platysace tubers. Additional field days will be held to demonstrate Platysace tuber production to Indigenous landholders. Field days will be held to promote Teff Trials of M. stipoides were held in WA and and to showcase native grass germination Victoria. Field Days for Teff were held at the Agfest enhancement technologies 2013 (field days) and was also featured on ABC television's Landline programme. The native grass,Microlaena stipoides, will be ready The trial sites forM. stipoides proved difficult to be commercialised with an industry partner to establish and so uptake by commercial partners has been slow.
72 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Plan for 2013-14 Outcome in 2013-14 The New Crops website A new address has been established (http://www.newcrops.com.au) will be redeveloped (http://www.newcrops.info/). Creation of updated pages for the 82,000 species is imminent; a keyword analysis for all species is currently at the letter ‘R’ and a synonym analysis for all species has been completed. Continued analysis for chemical variability in coffee Coffee cherries at different stages of maturity bean samples based on qualitative and quantitative (both from tropical and subtropical regions) assays, as well as roasting and cupping on green were collected, prepared, processed and analysed. beans and also on different stages of coffee cherries Seventeen metabolites were identified in green bean High Performance Liquid Chromotography (HPLC) samples. Statistical analysis applied to these compounds partitioned green bean samples into their place of origin (Australian tropical, Australian subtropical and International). However, the results of the cupping assessments were not significant for place of origin. Positive correlations were found with taste tests and particular coffee chemicals. Investigate closed production systems for A trial to investigate the influence of controlled- ornamental ginger production through continued released fertiliser (CRF) on growth, flowering trial work on production and storage of Curcuma and plant quality for potted flowering Curcuma rhizomes, and to complete a stop/go review report has been completed and has shown nursery growers baseline information on the optimum rates of CRFs to use to grow a selection of new Curcuma hybrids as potted-flowering plants for the nursery market. Water use trials and analysis of hazelnut Three test sites were planted in winter 2013 crops will continue with encouraging results. NSW DPI hosted a hazelnut R&D meeting with the Hazelnut Growers Association. Investigation of the utilisation of carob in healthy Carob growers visited orchards on six properties foods for a new rural manufacturing industry near in WA. Technical & practical information through continued research and dissemination of was exchanged. Meetings about the development the findings through public and scientific media of small scale carob syrup processing facilities including preparation of a report entitled “Carob were also held. A review article on the health Incorporated Novel Healthy Foods” benefits of carob and its incorporation in foods has been written and will be submitted to a scientific journal. Studies on the development of carob incorporated into muffins and cookies/biscuits has been completed and will generate 1-2 research articles. Sanitarium was engaged as additional partners to the project. An initial report on date pollination, drafts of Pollen storage, production and transfer have been promotional material and an industry workshop demonstrated. An assessment of the weed potential will be delivered of commercial dates has been requested through the weeds branch of the NT Department of Land Resource Management. A stop/go report on Australian wild rice A major collection and observation trip in North characterisation will be received, outlining Queensland was held in 2014 and an Expert progress to date, a completed review of collections, Consultation Workshop on the use of crop the interest from potential collaborators, and wild relatives for pre-breeding in rice in Odaira, an overview and financial interest towards Shizuoka, Japan, organized and funded by the a larger research program on wild rice by Global Crop Diversity Trust, was attended. A other collaborators. white paper “Diversity Seek (DivSeek) Harnessing the power of crop diversity to feed the future” was prepared with an international group of scientist with support of the Global trust following a workshop in San Diego in January, 2014.
73 Plan for 2013-14 Outcome in 2013-14 A best practice manual will be completed for The main outcomes of the project were: publication, as well as a final report detailing the market situation and opportunities for • Development of a 'best practice manual' for the domestic and South East Asia delivery of complete supply chain of production, grading, Jujubes/Chinese date. storage and marketing techniques. • Promoting awareness for both fresh and processed jujubes within Australia. • Identification of potential markets in SE Asia for the supply of both fresh and processed product and provide linkages and information to industry. • Facilitation of the formation of a 'jujube grower group' in WA. The establishment of an aroma grading standard A final report was received which identified aroma for Australian Black Truffles, with the technology profiles in matureT. Melanosporum grown in demonstrated to the truffle industry Australia. Using this information, and the trends observed in the volatile profiles during aging of the truffle, a quality scale based on aroma has been suggested. A workshop and field day for interested growers A Field Day was held at the Coastal Plains Research of rambutan to introduce them to the latest Farm to show the new rambutan propagation techniques for production. method to growers. A final report detailing the progress of pilot-scale A final report was received showing potential planting red bayberry trials, outcomes of post- growers in tropical, subtropical and mild temperate harvesting marketing trials, the activities and regions of Eastern Australia the conditions progress towards a Grower Club, and the current required to be successful in the production and future extension and commercialization of red bayberry, including the practices and activities required for this industry timeframes involved. Development of a Kakadu Plum industry in Two projects commenced in this area this year, northern Australia firstly, the establishment of genetic orchards and secondly, the monitoring of product quality in a processing facility, which was recently set up in a Northern Territory community. A third project was completed, providing an educational/demonstration tool for savannah enrichment plantings. Minimising the impacts of Myrtle rust for new Native food industries impacted by Myrtle and emerging industries with a myrtaceous rust (lemon and anise myrtle and riberries) are plant base and the subsequent spread into the able to respond to Myrtle rust with chemical surrounding environment solutions afforded by emergency permits from the APVMA and by: • Developing residue limits for chemicals used to treat native foods impacted by native foods. • Selecting resistant genetic material within crops impacted by Myrtle rust. • Understanding management impact on the spread of Myrtle rust in native food plantations.
Final Reports Plan for 2013-14 Outcome in 2013-14 Commercialisation of elite lines of Microlaena A final report and draft papers have been stipoides as a perennial grain received. But the M. stipoides has proved difficult to establish and so uptake by commercial partners has been slow.
74 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Plan for 2013-14 Outcome in 2013-14 Development of Chinese date-Jujube Industry Delivered a 'best practice manual', promoted awareness by holding field days, prepared a final report published on the RIRDC web site, and facilitated the formation of a 'jujube grower group' in WA. Developing an Australian date industry A grower manual has been produced, documenting procedures for site preparation, planting, guard construction, irrigation design and scheduling, fertilizing, pruning, de-thorning, offshoot removal, canopy management, flowering, pollination, fruit set, thinning, bagging, bunch covers and harvesting; and identifying specialized tools and equipment needed for efficient plantation management. Development of a nano-sensor for volatile analysis The Australian Truffle industry will be able to of Australian Black Truffles develop a quality scale based on aroma using volatile profiles for truffles grown in Australia. Linking rambutan phenology and key economic This research has been extended for a further 12 germplasm for improved production months in order to evaluate the clonal systems and rootstocks that have been developed. Pilot production and sales of red A report called “The Commercial Potential of bayberry in Australia Red Bayberry in Australia” was published on the RIRDC website. Continuation of the Asian and World The newsletter was translated into Cambodian, Foods Newsletter Vietnamese, Chinese and delivered bi-monthly to these farmer groups. Improved Decision Making by LOTE Growers Delivery of workshops, training courses, meetings - The Next Step and field visits, and training programs were provided with competent bilingual assistance. This resulted in thirty per cent of the growers completing the ‘Freshcare’ QA training course. Significant improvements were made at the farm chemical shed in terms of labelling, chemical handling and storage. Additional deliverables not foreshadowed in the • A report titled “Producing Cocoa in Northern 2013-14 Annual Operational Plan Australia” was published on the RIRDC website. • A report titled “Identifying the Cause of Rot in Black Truffles and Management Control Options” was published on the RIRDC website. • A report titled “Lessons Learned from Cyclones in Northern Australia” was published on the RIRDC website. • The “Native Foods R&D Priorities and Strategies 2013 - 2018” was published on the RIRDC website. • A report titled “Collation of health literature for tropical exotic fruits and extracts” was published on the RIRDC website. • The “Priorities and Strategies for RD&E of the Australian Truffle Industry 2014 to 2019” was published on the RIRDC website.
Senior Research Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]
75 • TEA TREE OIL
Summary of Research Program and Industry In terms of the RIRDC industry life-cycle, the tea tree oil industry is at the maturing stage. The program is funded by matching voluntary contributions to deliver the Tea Tree Five Year RD&E Plan. The tea tree oil industry has experienced better than average production this financial year, and prices are holding up. The two lead priorities for the industry remain as the breeding program and international market access for cosmetics. Up until recently the impact of Myrtle rust on tea tree oil production has been minimal. There are now worrying signs that Myrtle rust is increasingly impacting on Melaleuca alternifolia. Additional work may be needed to find the best chemical solutions for the industry in the short term. Key long term strategies for the Tea Tree Oil Program include: • Market access through regulatory response product efficacy and safety research and its communication. • Production systems that lower cost and increase productivity (including the tea tree breeding program). • Proof of concept innovative uses of tea tree oil. • Communication and industry capacity building. Objective • To support the continued development of a profitable, productive and environmentally sustainable Australian tea tree oil industry that has established international leadership in marketing, value adding, product reliability and production. Total Program Expenses
2012-13: $483,308 2013-14: $533,205
Stated Priorities for 2013-14
• Meet regulatory challenges to international markets for tea tree oil utilising innovative analytical approaches. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Meet regulatory challenges to international The tea tree oil industry is now able to respond markets for tea tree oil using innovative to regulatory challenges in the international analytical approaches cosmetics market by: • Measuring the levels of methyl eugenol and chirality in Pure Australian Tea Tree Oil, as well as across a range of regions and seasons. • Having an understanding about the R&D pathway necessary to meet the regulatory challenges of the European cosmetics market.
76 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Plan for 2013-14 Outcome in 2013-14 Increased productivity through new product The tea tree oil industry continue to investigate development, ranging from plant extracts for new products for: the cosmetics industry through to new varieties resulting from technological advances in breeding • in vitro activity and clinical efficacy of tea tree oil products for acne treatment. • Anti-tumour mechanisms of action and prophylactic activity of tea tree oil. The tea tree oil industry continue to have high yielding, high quality product as a result of an ongoing tea tree oil breeding program. Minimising the impacts of Myrtle rust for new The tea tree oil industry is able to respond to Myrtle and emerging industries with a myrtaceous rust with chemical solutions afforded by emergency plant base and the subsequent spread into the permits with the APVMA and through the surrounding environment discovery of genetic resistance markers to Myrtle rust in tea tree. Additional deliverables not foreshadowed in the • Identifed the causal agent (Macrophomina spp) of 2013-14 Annual Operational Plan stump death which has emerged as a serious issue in tea tree plantations in Northern Australia. • Reviewed and updated the industry’s code of practice. • A path enabling the industry to reduce its nitrous oxide emissions by utilising tea tree residues and legumes in the growing system. • The industry developed and released a new five year R&D Plan.
Final Reports Plan for 2013-14 Outcome in 2013-14 Highly improved tea tree varieties to The tea tree breeding program continues to deliver maximise profit improved selections with improved yield and quality for the industry. In vitro activity and clinical efficacy of tea tree oil This project is awaiting the completion of the products against acne clinical trials which were delayed by ethics approval processes and difficulty in attracting participants for those trials. Additional deliverables not foreshadowed in the • The further dissemination of safety and efficacy 2013-14 Annual Operational Plan included: information on Australian tea tree oil • Chinese translation of the Safety and Efficacy of • Priorities and Strategies for RD&E identified Australian Tea Tree Oil for 2013-2018 for the Australian Tea Tree Oil Industry. • The Tea Tree Oil Five Year D&E Plan 2013-2018
Senior Research Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]
77 • WILDFLOWERS AND NATIVE PLANTS Summary of Research Program and Industry The Australian wildflower industry has a strong export focus. Wildflowers account for most of Australia’s fresh flower exports ($6.78 million), and have scope for further growth. The total value of the industry was estimated at $30 million (wholesale) in 2011–12. Australia-wide it is estimated that there are some 500 growers, with products primarily cultivated in plantations, and a few crops grown more intensively in greenhouses. On the world market, the Australian wildflower industry finds a competitive advantage by sourcing new crops and products from Australia’s diverse and unique range of endemic flora. The majority of projects supported by RIRDC, State Departments of Agriculture and other research providers have focussed on the development of new crops or products. A range of new technologies and management practices to improve quality and profitability have also been developed through R&D. Particular issues in 2013–2014 for the Australian wildflower industry included exposure to the export market with a significant impact from the high Australian dollar, as well as the impact Myrtle rust may have on myrtaceous wildflowers, such as waxflower and eucalyptus. The program will continue to be driven by projects with matching industry funding. A new five year plan is proposed for development in 2015. An industry review/investment case will accompany this activity. Key long term strategies for the Wildflowers and Native Plants Program include: • Providing profitable and sustainable production and management systems. • Improving product quality through post-harvest care and quality standards. • Assessing and evaluating markets to improve commercial outcomes for industry. • Improving existing products and developing new ones. • Enhancing the human capital of the industry and maximising adoption. Objective • To manage investment in R&D by the wildflower and native plants industry and government to build a profitable industry through more efficient production methods; a strong reputation as a supplier of improved, new and innovative products; expanded domestic and export market opportunities; and the sustainable use of land and water resources. Total Program Expenses
2012-13: $198,217 2013-14: $302,799
Stated Priorities for 2013-14 The Wildflower and Native Plants program focussed on: • Building capacity in the wildflower industry through a focussed communications strategy. • Coordinating leaf analyses results for key wildflower species and identify optimal nutritional levels. • Investigating innovative methodologies for breeding waxflowers and kangaroo paw. • Identifying farm based methods to control flowering in waratahs.
78 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Deliverables for 2013-14 Plan for 2013-14 Outcome in 2013-14 Increased productivity through new product The Australian wildflower and native plants development, ranging from plant extracts for industry has increased productivity through the cosmetics industry through to new varieties new varietal development and improved resulting from technological advances in breeding. farm practices by : • Novel techniques such as somatic fusion that can create new varieties of waxflower and kangaroo paw. • Using leaf analyses for key commercial species and optimising nutritional management. • Production of waratahs through timing control of flowering across the range of commercial selections. Minimising the impacts of Myrtle rust for new Waxflower growers are able to respond to the and emerging industries with a myrtaceous potential incursion of Myrtle rust by: plant base and the subsequent spread into the • The knowledge gained in understanding the surrounding environment genetic resistance across the range of selections within the industry. Additional deliverable not foreshadowed in the The capacity of the Wildflower and Native 2013-14 Annual Operational Plan Plants industry is developed through extension and communication of R&D. This extended along the supply chain to florists by producing a floristry manual, now approved for the TAFE curriculum, that includes important storage and handling information for Australian wildflowers and native plants.
Final Reports
Plan for 2013-14 Outcome in 2013-14 Farm based methods for control of Improved understanding of environmental and flowering in waratahs physiological cues which initiate and control flowering in waratahs, enabling better prediction of yield and extension of the flowering season. Somatic fusion within the Chamelaucium alliance Developed techniques for regenerating plants from protoplasts via somatic embryogenesis that have been optimised to facilitate evaluation of somatic hybrids Additional reports delayed from previous year: • Delivered a floristry manual (approved for the TAFE Curriculum) and detailed information • Australian market development strategy available to florists regarding storage and • (What cut flower is that?). handling of wildflowers. • Developing leptospermum for cut flowers. • New varieties of leptospermum evaluated and under commercialisation (delayed publication • Develop canopy management strategies for upheld for period of commercial in-confidence). wildflower crops. • Canopy management strategies developed for 21 wildflower crops.
Senior Research Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]
79 Goal 3: Enhance sustainability across the rural sector
• Goal 3 strategies and research programs Strategy 3.1 Strategy 3.2 Strategy 3.3 Strategy 3.4 Work Increase Encourage the Promote collaboratively knowledge sustainable use leadership, on cross sector about rural and capacity, skills issues that industry options management and pathways impact across that offer of natural that create industries. regional resources. opportunities. economic development opportunities.
• Improved knowledge across the rural sector of threats and opportunities. • RIRDC cross sector knowledge is valued and used by government, industry and research stakeholders. • Reduced duplication of effort and more efficient and effective investment of public funding when addressing issues which impact across the rural sector. • Natural resource issues are considered and addressed through industry specific and RIRDC cross sector investments. • Increased opportunities for people committed to the rural sector. Goal 3 research programs in 2013–14 There were four RIRDC research programs in Goal 3 in 2012-13: • Bioenergy, Bioproducts and Energy • Primary Industries Health and Safety Partnership • Dynamic Rural Communities • Investing in People
80 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • BIOENERGY, BIOPRODUCTS AND ENERGY
Summary of Research Program and Industry The Bioenergy, Bioproducts and Energy (BBE) program’s focus is communication and extension of research outcomes, as the bulk of R&D on bioenergy and biofuels is driven by the private sector, and is on a multi-million dollar scale of investment. RIRDC has focussed on communicating information to primary producers who are considering incorporating bioenergy in their operations. A web-based information portal is providing primary producers and local regional governments about being informed on where the opportunities are to engage in the bioenergy supply chain for primary producers. Objective
• Bring awareness to the primary industries sector about the opportunities to engage in the bioenergy supply chain as a feedstock producer. Total Program Expenses
2012-13: $359,641 2013-14: $201,546
Stated Priorities for 2013-14
• Extension and communication of bioenergy supply chain opportunities to primary producers. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Develop a knowledge hub website to inform The website is operational. Links have been primary producers of their opportunities in the verified and content to assist primary producers bioenergy supply chain. make decisions around power and heat (biogas), starting a project (biogas), stubble and straw, mallee, plantation residue, biomass availability in Tasmania, biomass availability in NSW, policies and regulations in Tasmania, are all available.
Final Reports
Plan for 2013-14 Outcome in 2013-14 Prospective taxa for short-rotation bioenergy in the The report “Identifying mallee eucalypts for tropics and sub-tropics biomass production in seasonally dry tropic and sub-tropic climates” has been published on the RIRDC website. Conversion of Lignocellulosic biomass to The report “Biomass gasification using reactive Dimethyl Ether (BioDME) flash volatilisation technology” has been completed and will be published on the RIRDC website in 2014-15.
Senior Research Manager Responsible for Program
Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]
81 • PRIMARY INDUSTRIES HEALTH AND SAFETY PARTNERSHIP Summary of Research Program The work health and safety (WH&S) performance of the primary industries continues to lag behind other Australian industries. Over the five years from 2007–08 to 2011–12, 294 primary industry workers died from work-related injuries. Three-quarters of these involved a vehicle. The total number of deaths equates to 16.81 fatalities per 100,000 workers, which is seven times the national rate of 2.29. This continued poor performance in terms of WH&S outcomes in the primary industries led RIRDC, together with program partners, to commit to a new three year investment plan for the Primary Industries Health and Safety Partnership in 2012-13. The program brought into focus the issue of improved WH&S and the extension of research that will deliver change in the workplace. In the second year of the current investment plan, the program finalised a plan for the program and put into place some foundation projects that will provide the platform for future work to address WH&S. The program also welcomed two new partners representing the meat and livestock sector - Meat and Livestock Australia and the Australian Meat Processor Corporation. Objective • To improve the physical and workplace health and safety of workers and their families in the primary industries across Australia Total Program Expenses
2012-13: $76,768 2013-14: $144,042
Stated Priorities for 2013-14 • Establish a new program plan for the Primary Industries Health and Safety Partnership addressing the physical and workplace health and safety of workers in the industries Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 A three-year plan of investment for the Primary Delivered, with the new plan attracting Industries Health and Safety Partnership completed additional partners.
Final Reports Plan for 2013-14 Outcome in 2013-14 Addressing the barriers to adopting improved health Research contracted and continuing. and safety in the primary industries Analysis of the health and safety risks to each sector Research contracted and continuing. within the Australian primary industries Additional deliverables not foreshadowed in the • Research contracted to identify the 2013-14 Annual Operational Planw responsibilities of employers and workers under the new harmonised legislation. • A synthesis of previous research undertaken by the program commenced.
External Research Manager Responsible for Program Simon Winter Ph. 02 6281 5257 Email: [email protected]
82 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • DYNAMIC RURAL COMMUNITIES (includes Aboriginal and Torres Strait Islander R&D Program) Summary of Research Program The Dynamic Rural Communities program aimed to build on RIRDC’s commitment to effectively engage stakeholders in identifying future R&D priorities. Projects within the program include natural resource management and sustainable rural communities. From 2014-15 the Dynamic Rural Communities program will no longer be an individual program and will be incorporated into the National Rural Issues and Investing in People Programs. Objective
• To enhance the capacity of rural communities to manage economic, social and environmental changes. Total Program Expenses
2012-13: $473,423 2013-14: $283,022
Stated Priorities for 2013-14 • The Dynamic Rural Communities program will no longer be an individual program and will be incorporated into the National Rural Issues and Investing in People Programs in future. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 RD&E investments addressing new opportunities Indigenous rural industry opportunities progressed for Indigenous participation in primary industries, through RIRDC investment in new and rural tourism and land and water management developing industry programs. Address issues of the transformation of rural Successful delivery of one new case study utilising communities facing economic, social and the Community Adaptability Tool which aims to environment change inform planning for the future.
Final Reports Plan for 2013-14 Outcome in 2013-14 Securing wealth and wellbeing of rural communities Two reports were published on the RIRDC website. The final reports were titled “Community Adaptability Tool – Securing the wealth and wellbeing of rural communities” and “The community adaptability tool (CAT) - a guide to using the CAT to secure the wealth and wellbeing of rural communities”. Transformation for resilient landscapes Final report received – “Transformation for and communities resilient landscapes and communities”.
Research Manager Responsible for Program
Margo Andrae Ph. 02 6271 4132 Email: [email protected]
83 • INVESTING IN PEOPLE Summary of Program The Investing in People program develops leadership and human capacity for primary industries and their communities and contributes to enhancing future labour support to meet demand in primary industries for skilled occupations. The program primarily invests in scholarships and programs that develop and build the skills and leadership potential of people in the rural sector. The two major initiatives within the Investing in People program are the RIRDC Rural Women’s Award and the Horizon Scholarship. The program also currently invests in externally-run capacity building programs, such as ABC’s Heywire youth program and the Australian Rural Leadership Foundation. Objective • To develop leadership and human capacity for primary industries and their communities and contribute to enhancing future labour supply to meet demand in primary industries for skilled occupations. Total Program Expenses
2012-13: $1,221,102 2013-14: $1,139,410
Stated Priorities for 2013-14 • To increase participation in the Horizon Scholarship program and to increase the number of women participating in the Rural Women’s Award. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Horizon Scholarships to support 25 continuing and The Horizon Scholarship continued to support eight new students for 2013-14 32 existing students and six graduating students. The Scholarship awarded fifteen new scholars and secured one new sponsor. 2013 National Rural Women’s Award completed 2013 National Award process and 2014 State award and 2014 State Rural Women’s Award completed. process was completed. Sponsorship of one candidate on the Australia One candidate accepted into the Australian Rural Rural Leadership Program Course 21. Leadership Program Course 21. Sponsorship of the ABC Heywire program. RIRDC supported the 2014 ABC Heywire Summit. Research capacity built through Three new scholarships awarded. scholarship investments.
Final Reports Plan for 2013-14 Outcome in 2013-14 Scholarship – The genetics of oil yield in Completed. melaleuca alternifolia Tony Byrne Memorial Scholarship top-up Due for completion in 2014-15. Scholarship - Development of seaweed-based feeds Due for completion in 2014-15. 2013 RIRDC Rural Women’s Award Reports from 2013 RIRDC Rural Women’s Award participants’ final report. are proceeding.
Research Manager Responsible for Program Margo Andrae Ph. 02 6271 4132 Email: [email protected]
84 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • OTHER CROSS SECTORAL PROJECTS Summary of Program in 2013-14 The RIRDC investment to address cross sector RD&E needs to encourage a “partnered responses” to shared RD&E activities, where the need for a collaborative response can be demonstrated, has resulted in a number of areas being supported with projects. Some of these cross sector issues have had serendipitous consequences. Such as the trellising from the cyclone research resulting in resilience to cyclones, as well as decreased labour costs and increasing produce quality. The other areas that were supported are the development of the Kakadu plum industry in northern Australia, and finding cross industry solutions for a myrtle rust epidemic. Objective • To work collaboratively on cross sector issue that impact across industries. Total Program Expenses
2012-13: $35,272 2013-14: $426,442
Stated Priorities for 2013-14
• To work collaboratively on the cross sector issues of cyclone resilience, overcoming Myrtle rust and Kakadu plum development, all of which impact across industries. Deliverables for 2013-14
Plan for 2013-14 Outcome in 2013-14 Improving the capacity of primary industries to Insurance companies and animal based industries withstand cyclonic winds have been engaged in this project. Cyclone resistant plant species, defoliation trials, defoliation chemical approvals, and trellis economic analyses are still being refined. The fact sheet called “Focus on cyclone resilience” is on the RIRDC website and has been distributed at a number of workshops. Minimise the impacts of Myrtle rust for new Myrtle rust results were reported at the Myrtle and emerging industries with a myrtaceous rust meeting in Sydney in July 2013 and the plant base and the subsequent spread into the ATTIA field day. Efforts to conserve a range of surrounding environment lemon myrtle species in order to develop the best possible Myrtle rust tolerant germplasm as a basis for the lemon myrtle and essential oil industries has progressed. Develop a scientific base for the further Negotiations between the parties have progressed development of the Kakadu Plum industry in slowly. However, there has been extensive northern Australia. publicity of this project and a number of parties are very interested in the value adding properties of Kakadu Plums.
Final Reports
Plan for 2013-14 Outcome in 2013-14 Investigating control options for Myrtle rust A report has been submitted and approved for in native foods publishing to RIRDC. Determination of residues in riberries, lemon and Data has been generated that will allow farmers anise myrtle and satin ash whose crops are affected by Myrtle rust to apply for minor use permits to help manage the disease.
85 Corporate Governance Corporate Governance
The RIRDC Board is committed to governance systems that enhance performance and compliance. Each year’s Annual Report includes a description of how strategic directions, policies and processes have been applied during the year. During the year the Board reviewed policies and processes concerning all major areas of Board operations, including Board induction processes, Director and Board performance; risk management; conflicts of interest; Board sub-committees; and the Managing Director’s performance. The Corporation’s management policies and procedures will continue to be refined and updated as standard practice within the organisation. The Board gives strong leadership to the Corporation, and requires through management that RIRDC staff have their qualifications, skills and experience enhanced with formal and on-the-job training each year. An audit committee and other committees of the Board are established from time to time to support the Board. Appropriate advisory committees with relevant skills to RIRDC research programs are established to ensure that projects are properly guided and that industry and government funds are spent wisely. Board Charter The RIRDC Board Charter sets out the function, duties and responsibilities of the Board in order to facilitate Board and management accountability for RIRDC’s performance and strategic direction. The Board is committed to fulfilling its duties to the Corporation, abiding by all relevant laws and regulations and providing employees with a safe and rewarding working environment. The Board considers the broader community, external and internalstakeholders, and industry partners in its deliberations. Board composition RIRDC’s 2013–14 Board was comprised of eight Directors—a Chairperson, an Executive Director (titled Managing Director) and six other Nominated Directors. One of the Nominated Directors is the Deputy Chairperson. Board appointments
• The Minister for Agriculture (the Minister) appoints Directors other than the Managing Director, who is appointed by the Board. • The Chairperson is appointed by the Minister and is not a Nominated Director. • Six of the Directors are nominated by a Selection Committee established by the Minister in consultation with the National Farmers Federation and the Australian Chicken Meat Federation (‘Nominated Directors’). • The Minister appoints a Nominated Director as the Deputy Chairperson. • The Board appoints the Managing Director and may appoint an Acting Managing Director. Board terms Directors other than the Managing Director are appointed by the Minister and hold office for a specified term not exceeding three years.
87 The Managing Director is appointed by the Corporation for a specified term. An Acting Managing Director may be appointed by the Corporation for a specified term. Board expertise The Directors are selected from a wide cross-section of the rural business community and offer expertise in production, processing, marketing, R&D administration, business management, social sciences, technology transfer and environmental and ecological matters. Maintaining ethical standards All members of the Board agree to be bound by the principles contained in the Board Code of Conduct. The Board Code of Conduct is provided to all Directors as part of the induction process and provides guidance on their responsibilities including to act ethically, honestly, and with due care and diligence. Ethical standards at RIRDC are upheld with the Corporation’s values in mind: professional, respectful, innovative, diverse and ethical (PRIDE). Directors’ reports
Accountability to industry For the purposes of reporting on operations in 2013–14, RIRDC had two organisations prescribed by Section 7 of the PIRD Act. This requires RIRDC to report annually on its activities each financial period. This accountability runs parallel to RIRDC’s Annual Report to the Minister and the Parliament. Separately, it is relevant to note that the deer, honeybee and rice industries are nominated as representative bodies for the Primary Industry (Excise) Levies Act 1999. Formal reporting during 2013–14 occurred as follows: • National Farmers’ Federation, 19 November 2013 • Australian Chicken Meat Federation, 25 November 2013 RIRDC reported to these prescribed bodies during industry meetings being held for their own purposes. The Corporation made no payments towards the costs of these meetings. The reporting of these consultation arrangements is in accord with guidelines issued by the then Minister for Agriculture, Fisheries and Forestry on 6 July 1998 on the Funding of Consultation Costs by Primary Industry and Energy Portfolio Statutory Authorities. Board committees During 2013–14, the Board operated one committee—the Audit Committee. The record of meetings is taken by the Executive Office Manager. Audit Committee Chair: Ms Roseanne Healy Members: Dr Merilyn Sleigh (ceased 24 July 2013) Mr Michael Guerin Mr Sam Archer Audit Committee charter The objective of the Audit Committee is to provide independent assurance and assistance, and to make appropriate recommendations to the Board on the Corporation’s risk, control and compliance framework and its external accountability.
88 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 The Managing Director and the General Manager, Corporate have a standing invitation to attend these meetings but are not members of the Committee. During 2013–14 the Committee oversighted completion of the statutory financial statements and annual compliance statement, reviewed the Fraud Control and Risk Management Plans, developed new frameworks for the fraud and risk management and reporting, reviewed the Instrument of Delegations, directed the internal audit function, and monitored the development and implementation of new business systems and policies. Ad hoc committees The Board may from time to time establish ad hoc committees of the Board to deal with specific items. Performance review The Board is committed to continuous improvement and undertakes an evaluation of the Board’s performance and other Board responsibilities twice in each Board term in accordance with the Board Performance Policy. The last external evaluation process was in December 2012 with the next one due during 2014-15. The performance review for the Managing Director is conducted annually by the Board in accordance with the Managing Director Performance Management Policy. Board remuneration Directors’ fees are set by the Remuneration Tribunal. As at 30 June 2014 these fees were $56,320 per annum for the Chairperson and $33,800 for Directors (other than the Managing Director whose remuneration arrangements are determined by the Board). In recognition of the additional responsibilities of Audit Committees, the Remuneration Tribunal has approved additional fees for members of RIRDC’s Audit Committee. The fees are $9,111 per annum for the Committee Chair and for $4,515 Committee members. Board meetings During 2013–14 the Board held six meetings: four in Canberra, one by teleconference and one in Leeton. The dates of these meetings were 24 July 2013, Leeton; 17 October 2013, Canberra; 4 and 5 December 2013, Canberra; 11 and 12 March 2014, Canberra; 14 May 2014, Canberra; 24 June 2014, teleconference.
89 Attendance at Board and Audit Committee meetings
Table 9. RIRDC Board Director attendance for 2013–14
Board Audit Meetings Meetings held & Meetings Meetings held & attended eligible to attend attended eligible to attend D Stehlik 5 5 0 0 M Sleigh 6 6 0 0 A Campbell 6 6 0 0 R Healy 6 6 4 4 L Stephens 5 6 0 0 M Guerin 6 6 4 4 A Johnson 6 6 0 0 S Archer 5 6 4 4 C Burns 6 6 4 4
Induction and continuing education of directors During the year, Directors participated in various industry conferences and workshops to further their knowledge of stakeholder issues and emerging sector issues. The Board also develops an annual program of briefings for Directors that are scheduled over the year and are usually held in tandem with a Board meeting. Individual Directors may also participate in professional development programs with the Australian Institute of Company Directors and other entities as required. Independent professional advice Board members may seek independent professional advice at RIRDC’s expense as is considered necessary to discharge their duties and responsibilities. Directors must obtain the approval of the Chairperson (which may not be unreasonably withheld) and the advice received will be made available to all Board members as appropriate. Potential conflict of interest Section 21 of the CAC Act requires that a Director who has a direct personal interest in a matter that is being considered by the Board must disclose the nature of the interest at a meeting of the Board. The Board manages the potential for conflict of interest for Directors and senior management by an annual declaration of potential conflicts and by a standing agenda item at each Board meeting that requires Directors who may have a conflict of interest in any matter to be discussed at that meeting to identify the potential conflict. Where a material potential conflict is identified the Director leaves the meeting during discussion of the matter. Potential conflicts are recorded in the Board minutes and are available for consideration by the Corporation’s Auditors. Members of the Audit Committee also provide an annual written declaration to the Board stating they do not have any conflicts of interest that would preclude them from being members of the committee.
90 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Related entity transactions The decision making process for the Corporation’s financial transactions, including related entity transactions, is guided by RIRDC’s Instrument of Delegations and Financial Policy and Procedures. The Board and the Managing Director have powers conferred to them by thePrimary Industries Research and Development Act 1989 (PIRD Act). The RIRDC Board have determined that the Managing Director shall, in accordance with this Instrument of Delegations and pursuant to section 76(2) of the PIRD Act, conduct the affairs of the Corporation, subject to the following Managing Director limitations where Board approval is required: • Approval of the Corporate Plan, Annual Operational Plan and budget, and capital budget. • Approval of all notifications to the Minister as required under sections 15 and 16 of the CAC Act. • Purchases of capital items in excess of the total budget limit. • Write-off of non-recoverable debts above $50,000 for any given financial year. • Agreements that commit the Corporation to arrangements with other organisations/ people in the nature of joint ventures, partnerships, being an essential participant in a CRC, shareholdings in corporations or joining in the formation of a company. • Any contract where the total RIRDC commitment exceeds $650,000 other than a variation to a Board approved contract where the variation is less than 20 per cent of the approved commitment and the variation does not materially affect expected contract outputs. • The commitment of the Corporation through contractual obligation for the commercial use of, or exploitation of, the Corporation’s Intellectual Property. • Material changes in accounting policy within the control of the Corporation, and consistent with Finance Minister’s Orders. • Material changes to the Corporation’s standard Research Agreement, or other legally binding agreements approved by the Board. • Any other limitations notified in writing to the Managing Director by the Board. All RIRDC staff are bound by the Corporation’s Financial Policy and Procedures and related Instrument of Delegations. The Instrument of Delegations details powers delegated to RIRDC staff under sections 90 and 91 of the PIRD Act 1989. The instrument limits financial authority as follows: • The financial liability into which the Corporation is entering must be consistent with the Corporate, Operational and Capital Plans. • The limits designated by approved budgets for which delegates are responsible (for example Program/Cost Centre budget, etc.). RIRDC’s Conflict of Interest policy applies to all staff who are delegated the power to approve financial transactions. Agreements to conduct research for the Corporation RIRDC uses a standard form contract for R&D projects (Research Agreement), which sets out the terms on which RIRDC will engage successful applicants to carry out the project. The Research Agreement has been developed to reflect RIRDC's statutory and
91 other responsibilities in funding projects. RIRDC will generally not negotiate substantive amendments to any clauses of the Agreement unless: • it is satisfied that exceptional circumstances exist that require amendment to the standard form; and • the applicant completes a statement of non-compliance for each of those clauses. During 2013-14 RIRDC managed 324 active and initiated 95 Research Agreements with external organisations, companies or individuals to undertake research for the Corporation. Consultancy services and selection of suppliers The consultancies used by RIRDC during 2013-14, the nature of their work, and the cost of their services are listed in the following table.
Table 10: Consultancies used in 2013-14
Name of consultancy Nature of consultancy Cost of Initiated in 2013–14 or services ongoing Banki Haddock Fiora HR legal advice $5,637.50 Ongoing Banki Haddock Fiora Various legal advice $54,365.08* Ongoing Bartier Perry Pty Ltd Project related advice $825.00* Ongoing Meyer Vandenberg HR legal advice $25,029.76* Ongoing Meyer Vandenberg Various legal advice $11,662.20 Ongoing Iconinc Holdings Pty Ltd CCRSPI website $25,081.10 12 December 2013 Australian Continuous Project evaluation training $54,626.04 Ongoing Improvement Group Benson Capital Pty Ltd AgNorth CRC $115,500.00 24 June 2014 Aurelian AgNorth CRC $44,000.00 7 May 2014 Pastoral Co Pty Ltd Trish Bergin Consulting Efficiency and $31,102.50 28 March 2014 effectiveness review Dale Chatwin EDRMS $14,520.00 Ongoing
* = actual cost incurred during the 2013–14 financial period The Corporation procures goods and services ranging from low value petty cash items to high value goods and services which may involve complex tendering and contracting processes. Therefore, purchasing procedures will vary according to the value and complexity involved in each particular purchase. The Corporation expects its staff to adopt a simple, straightforward approach to the purchase of low value goods and services and use more complex methods to manage the risks involved in major purchases. The following principles are applied for all transactions: • Expenditure is to be appropriate for the purpose (Corporation funds must be used solely for the purposes of the Corporation, in line with the AOP). • Purchases should represent value for money. • Procurement processes should be conducted in an efficient, effective and ethical manner. They should be transparent and publicly defensible. • Corporation staff must not improperly use their position to gain an advantage for themselves or someone else. Staff must declare any real or perceived conflict of interest.
92 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Procurement should be conducted in accordance with the procedures outlined in the Corporation’s Procurement Procedure, with particular attention paid to the requirements associated with various procurement thresholds and methods. Indemnities and insurances for directors and officers Since February 1999, the Corporation has been a member of Comcover, the Australian Government’s self-managed fund for insurance cover. The Corporation’s insurance covers Directors and officers against various liabilities that they may incur in their capacity as Officers of the Corporation. The Comcover insurance contract prohibits disclosure of the nature and limit of the liabilities covered and the amount of the Corporation’s membership premium. No insurance claims were made by the Corporation during 2013–14. On 26 March 2010 the Board executed an Access and Indemnity Deed. The Deed enables new Directors as they are appointed and designated senior officers to be indemnified from liabilities they may incur as directors and officers of the Corporation, as permitted by the Commonwealth Authorities and Companies Act 1997. Risk management The Corporation’s 2013–2016 Risk Management Plan is reviewed annually by the Audit Committee and Board to ensure all risks are reviewed where there have been changes in our internal or external operating environments, and to consider any emerging risks. The control framework comprises a risk assessment methodology and a risk register with relevant mitigation strategies. Management also reports to each Board and Audit Committee meeting on the status and progress of the management of any key risks. In 2013–14, the Corporation conducted a formal enterprise risk assessment workshop. The process identified key risks facing the Corporation at both strategic and operational levels using best practice methodology. The risk register was revised to address the key risks raised during the risk assessment process. The Board’s Audit Committee oversees preparation and implementation of the Corporation’s risk management initiatives. Fraud control The Corporation’s Fraud Control Plan is approved by the Audit Committee and Board. In February 2014, the Corporation conducted a formal fraud risk assessment. The Corporation’s Managing Director is satisfied that: • A fraud risk assessment and fraud control plan has been prepared in compliance with the Commonwealth’s Fraud Control Guidelines as set out in the Corporation’s Fraud Control Plan 2016-16. • Appropriate fraud prevention, detection, investigation and reporting procedures and processes are in place as specified in the Corporation’s Fraud Control Plan 2014-16. • No incidents of fraud have been reported. Accordingly, the Board is satisfied that the Corporation’s fraud control policies, procedures and initiatives are in accordance with the Commonwealth’s Fraud Control Guidelines. The Board’s Audit Committee oversees preparation and implementation of the Corporation’s fraud control policy.
93 Reserves Policy The Corporation has a reserves policy with the overriding aim to manage risk derived from fluctuations in income. The underlying objective of holding financial reserves is to maximise RIRDC’s investment in R&D, consistent with its business objectives, whilst enabling sufficient funds to be available to cover contracted liabilities and to maintain R&D capacity. Eighty seven per cent of the current reserves are in levy paying industry sub-accounts which are maintained at a level, that when combined with prudent expenditure, enables sub-accounts to maintain research and development investment on specific levy industry issues despite normally encountered volatility in revenue. Ministerial reporting The Australian Government is a key stakeholder. It provides the legislative framework under which RIRDC operates, a core appropriation through the Department of Agriculture, and matching Commonwealth funds to those RIRDC industries with a statutory levy. In addition to the specific linkages of Board appointments and corporate documentation such as the Corporate Plan, the Annual Operational Plan and this Annual Report, the Corporation also writes to the responsible Minister outlining the key outcomes of Board meetings. Ministerial directions Under Section 143 of the PIRD Act, the Minister may give written directions to the Corporation as to the performance of its functions and the exercise of its powers. No such directions were given in 2013–14. On 1 May 2012 the then Minister wrote to the Corporation and outlined his expectations. The RIRDC Corporate Plan 2012–17 is strongly aligned to the expectations of the Minister and will be the framework through which RIRDC invests to meet the Minister’s expectations. Under Section 28 of the CAC Act, the Minister may give written directions to the Corporation regarding complying with the general policies of the Government. No such directions were given in 2013–14. Judicial decisions No judicial decisions were recorded for 2013–14. Significant events There were no significant events in 2013–14 to report. Post 2013–14 events There are no post 2013–14 events to report.
94 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 The 2012–13 Board
Professor Daniela Stehlik—Chair Professor Daniela Stehlik is Professor of Sociology and previously, inaugural Director of the Northern Institute at Charles Darwin University, Northern Territory. Professor Stehlik's involvement in community development activities, and the impact of change on communities has led to a number of publications focusing on issues associated with social sustainability, community capacity building and evidence based policy. She is particularly interested in the generative capacity of women's energy and enthusiasm as an important component of community flourishing. In 2008 Professor Stehlik was a member of the Expert Social Panel involved in the Federal Government's Review of Drought Policy. Professor Stehlik is presently Adjunct Professor at ANU, JCU and QUT. Appointed 21/04/2010 until 20/04/2013, extended to 30/06/2013. Reappointed 02/08/2013 until 02/08/2016. BA (ANU), M. Soc Sci (ECU), A. Dip Bus Admin (SAIT), Uni SA, PhD (UWA)
Dr Merilyn Sleigh Dr Sleigh has a strong background in applied biological research with CSIRO and extensive experience in management and governance in the biotechnology industry and in the public sector. She was formerly Managing Director of ASX-listed biotechnology company EvoGenix Ltd. She is currently a non-executive director of Tyrian Diagnostics Ltd and Clover Corporation Ltd (both ASX-listed), and of AdAlta Pty Ltd, Relationships Australia (NSW) and Intersect Ltd. Dr Sleigh has previously acted as a consultant and adviser on research commercialisation and biotechnology investment and has served on a wide range of government committees, boards and councils. These include the Australian Research Council, the Cooperative Research Centres Committee, and the Boards of the Australian Institute of Marine Science and of Food Science Australia. She currently chairs the Business Development Advisory Committee for the Garvan Institute for Medical Research. Re-appointed 01/07/11 to 30/06/14. BSc (Hons), PhD, Dip Corp Man FTSE FAICD
Mr Alex Campbell AM Mr Campbell has extensive experience in agricultural production for sheep, cattle, farm forestry and viniculture. He was previously the Chairperson of the South Coast NRM Inc and Chairperson of the Albany Foundation Campus of the University of Western Australia. He is the past Chair of the CRC Salinity, Land and Water Australia and the WA State Salinity Council. He is also deeply involved with Regional NRM delivery and management. Mr Campbell has an Honorary Doctorate of Science in Agriculture from the University of Western Australia. Re-appointed 01/07/11 to 30/06/14. Extended to 30/09/14. Hon PhD (UWA)
95 Ms Roseanne Healy Ms Healy is an experienced non-executive company Director and corporate advisor in the areas of governance and strategy, public and private partnerships, resource economics, CSR and social investment. Ms Healy is currently a director of CUFA Limited, GP Partners, Country South, the Frankston Regional Aquatic Centre, Homestart Finance, SA Medicare Local Limited, Aquaculture Tenure Allocation Board and the Phylloxera and Grape Industry Board of South Australia. Ms Healy has held senior executive and Chief Executive roles. Re-appointed 01/07/11 to 30/06/14. Extended to 30/09/14. BA (Eco), MBA, MBR, MAICD
Dr Len Stephens Dr Stephens is currently the Managing Director of the Seafood CRC Company Ltd, a Cooperative Research Centre involving 30 industry and scientific partners focused on seafood productivity and market development. His previous positions and experience are: Company Director - Dairy Australia Ltd (2007-2010); Principal - Global Innovation Options Pty Ltd - Management Consultancy (January 2007-June 2007); Chairman - Australian Wool Exchange, Industry Standards Advisory Committee (2007); Chief Executive Officer, Australian Wool Innovation Ltd (2003-2006; General Manager, Meat & Livestock Australia Ltd (1996-2003Southern Program Manager, Meat Research Corporation (1996-1998); Inaugural Director, Victorian Institute of Animal Science (1987-1996; Company Director, Daratech Pty Ltd (1990-1995); Director, Regional Veterinary Laboratory, Bairnsdale, Victoria (1982-1987. Appointed 01/07/11 to 30/06/14. Extended to 30/09/14. AICD, Dip Agr Sci, BVSc, MSc, PhD
Mr Sam Archer Mr Archer and his family run a livestock and cropping farm in southern New South Wales. He has worked with the farming sector, indigenous groups and corporate entities on strategy, governance and sustainability initiatives for the past 26 years. He is Chair of the Riverina Local Land Services and the former Senior Vice President of the NSW Farmers' Association, member of the Australian Farm Institute's Research Advisory Committee and the National Farmers' Federation Economics and Trade Committees. He was awarded a Nuffield Farming Scholarship in 2008. Appointed 01/07/11 to 30/06/14. Extended to 30/09/14. Appointed member of Audit Committee, 04/07/13. Dip Farm Mmt, BCom, BA (Hon), N Sch, MAICD
96 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Mr Michael Guerin Mr Guerin is an experienced senior executive who has focused his professional career on agribusiness. He has held Managing Director roles with both Elders and ANZ Banking Group and was formerly the Chief Executive Officer of The Van Diemen’s Land Company. Michael has a proven track record in managing substantial businesses and budgets in multiple domestic and international markets, brings significant financial expertise and rigour to operations and has strong experience in risk management, product development and balance sheet and liquidity management in financial services. He has an expertise and track record in driving bottom line results with a leadership style based on a balance of EQ and IQ and an ability to manage complex relationships with multiple key stakeholders. Appointed 01/07/11 to 30/06/14. Extended to 30/09/14. MBA, Post Grad Diploma in Banking, Bachelor of Commerce, alumni of Columbia Business School
Ms Alana Johnson Alana Johnson is a Rural Consultant recognized nationally and internationally for her work in Change management, Farm Succession planning and Leadership Training. Alana is a fifth generation farmer who for the past 30 years has been involved in cattle production, farm forestry and landscape renovation on the family property near Benalla in Victoria. Alana is a graduate of the Australian Rural Leadership Program and the Australian Institute of Company Directors, she lectures at Monash University and was awarded an Australian Post Graduate Scholarship for her PhD research into the future of agriculture. A pioneer in rural women's leadership in Australia, Alana is a founding member of Australian Women in Agriculture, former President of the Foundation for Australian Agricultural Women, she holds the rural portfolio on the Board of the Victorian Women's Trust and is past Chair of the Women's Advisory Panel to the Victorian Minister for Agriculture. Alana was named in the inaugural 100 Women in Australian Agribusiness in 2013, the Financial Review/Westpac inaugural 100 Women of Influence in Australia in 2012 and was the RIRDC Victorian Rural Woman’s Award winner and Australian runner-up for 2010. Appointed 01/07/11 to 30/06/14. Extended to 30/09/14. BA, BSW, GAICD, FARLF
Mr Craig Burns –Managing Director Mr Burns commenced his role as Managing Director in July 2010. He previously held several positions in the Australian Government where he held senior positions focusing on trade and development policies for primary industries. His roles have included engagement on a range of multilateral, regional and bilateral trade agreements, international agricultural cooperation and minerals and energy policy. Mr Burns has extensive experience working with international organisations including the UN Food and Agriculture Organisation and the OECD. From 1999-2002 he was Minister-Counsellor (Agriculture) at the Australian Delegation to the OECD. He was Chairman of the International Grains Council from 2001 to 2002, Vice-Chair of the OECD Committee for Agriculture from 2002 to 2004 and Chair of the OECD Joint Working Party on Agriculture and Trade from 2004 to 2006. He is currently a Director of the Australian Rural Leadership Foundation (appointed 16 November 2012). Appointed 12/07/2010. Extended to 30/09/14. Master of Economics, Bachelor of Arts, Diploma of Education. 97 Staff and performance management RIRDC is a small Government agency, with only 20 staff as at 30 June 2014 and an annual operating budget of around $23 million. Since 2010 the number of senior executive staff in RIRDC has been reduced by two‑thirds, without any negative impact on the level or quality of service provided to the Corporation’s stakeholders. An efficiency and effectiveness review was carried out during the latter half of this financial year with findings and recommendations presenting opportunities for greater efficiencies and effectiveness from an already strong position. The recommendations included constructive options to ensure that RIRDC was well placed to meet a significantly tighter budgetary environment. The Federal budget reductions for 2014-15 and deeper cuts in the out years required a reduction in ASL of five to six positions with five full-time positions deemed redundant in May and June 2014. The structure of RIRDC is ‘flat’ which encourages a consultative culture and enables decisions to be made more quickly, with operational staff able to access senior managers and executive staff directly and easily. RIRDC endeavours to create career pathways so that the Corporation attracts and retains skilled and experienced staff. RIRDC staff are employed under Section 87 of the PIRD Act 1989. This legislation requires the Corporation to determine appropriate terms and conditions of employment for its staff. RIRDC’s Enterprise Agreement 2013–16 sets out the terms and conditions of employment. Executive staff (including the Managing Director) are employed on individual contracts. RIRDC is committed to a credible, equitable and aligned performance management system. RIRDC’s performance management system includes a formal process and an ongoing informal process that encourages staff to plan, review and recognise performance. Performance agreements are agreed annually between staff and their supervisors and include a comprehensive training and development component. Performance reviews are formally conducted every six months, with an annual performance assessment in June. Compliance with general policies of Government The Corporation complies with the following continuing notifications of general policies of the Government (as amended from time to time) under Section 28 of the CAC Act: • Commonwealth Fraud Guidelines. • Australian Government Cost Recovery Guidelines. • Australian Government Property Ownership Framework. • Australian Government Foreign Exchange Risk Management Guidelines. • Australian Government Protective Security Policy Framework. • RIRDC is not required to comply with the Commonwealth Procurement Guidelines 2008. However, the RIRDC procurement policy aligns with the Commonwealth Procurement Guidelines where practicable. Compliance with legislative requirements Work Health and Safety Act 2011 Part 14, Schedule 2, Part 4 Other Persons Work Health and Safety Act 2011 The table below summarises the requirements under theWork Health and Safety Act 2011 and the Corporation’s related actions.
98 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Table 11. RIRDC actions under the Work Health and Safety Act 2011
Act Requirement RIRDC Action Details of work health and • RIRDC’s Work Health and Safety policy was updated to meet safety arrangements the requirements of the Work Health and Safety Act 2011. • Staff were consulted and the policy was circulated and published on the Corporation’s intranet. • Related policies were also reviewed and updated. Initiatives undertaken during the • Work health and safety is a standing item on the meeting agendas year to ensure the health, safety of the workplace consultative committee (WCC); staff meetings; and welfare at work of employees executive meetings; and Audit Committee and Board meetings. and contractors • Policy awareness sessions were conducted on all reviewed and updated work health and safety policies. • Managers were briefed on their roles and responsibilities under the new legislation. • New staff undertook workplace assessments to ensure that any reasonable workplace adjustments were made (ergonomic equipment, furniture, etc. was provided as required). • The annual influenza vaccination program was offered to all staff in 2013-14, and occurs each year. • First aid officers and fire wardens have been appointed and are appropriately trained. • Work health and safety information is displayed prominently in the workplace. Health and safety outcomes Health and safety outcomes remain comparable to previous years. (including the impact on injury rates of employees and contractors achieved as a result of initiatives mentioned above) Statistics of any accidents or Nil dangerous occurrences during the year it arose out of the conduct of undertakings by RIRDC that required the giving of notice
Details of any investigations Nil conducted during the year that relate to undertakings carried on by the employer, including details of all notices given to the employee
The Environment Protection and Biodiversity Conservation Act 1999
How RIRDC practices relate to S.516A of the Environment Protection and Biodiversity Conservation Act 1999 RIRDC’s Corporate Plan 2012-2017 was developed in the context of the Government’s National and Rural Research Priorities. A key priority is an environmentally sustainable Australia. RIRDC’s strategies involve RD&E that addresses natural resource management and sustainability issues of national importance including investments in environmental farm management, agroforestry systems, organic farming systems, farming systems that integrate
99 rangelands and wildlife, changing energy supply and demand, water resource issues, weeds and productivity and the impact of climate change and variability. All RIRDC programs incorporate sustainability in their five-year R&D plans. How the outcomes specified for the agency in the appropriation act contribute to ecologically sustainable development (ESD) The Corporation has a single outcome: ‘Increased knowledge that fosters sustainable, productive and profitable new and existing rural industries and furthers understanding of national rural issues through research and development in government-industry partnership’. It contributes to ecologically sustainable development by recognising the need for research outputs that integrate economic, environmental and social objectives. The Corporation’s charter is to make and manage research investments. Impacts of this activity on the environment are sometimes difficult to attribute and may be subject to long response times. Some examples are in the following table (overleaf).
100 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Table 12. The effect of the agency’s actions on the environment
Program Environmental issue Outcomes Rice The Rice Program continues to fund the Further advancement towards the development of cold tolerant rice varieties has continued by trying to transfer the cold rice breeding program that has a goal tolerance of Sherpa into Reziq, which has a larger grain size, and thus confer greater water use efficiency over a larger area of the to develop rice varieties with enhanced rice irrigation region. adaptation, e.g. improved cold tolerance, salinity tolerance, drought tolerance and water productivity, to cope with an evolving production environment. Chicken Meat Reducing greenhouse gas emissions and Demonstrated the value of poultry litter as an alternative source of nutrients for pastures, with a particular focus on its potential increasing soil carbon to make a contribution to soil organic carbon levels.
Supported four projects, through the National Agricultural Manure Management Program (NAMMP), aimed at measuring greenhouse gas emissions and estimating the agricultural greenhouse gas emissions abatement potential of various livestock manure management options. Assessing the environmental impacts of Actively participated in the development of global guidelines for the assessment of livestock environmental performance, an chicken farming systems activity lead by the FAO, though Australian in the Technical Working Group for this project. Global Assessing environmental A project was completed that captured and presented environmental impact data for Australian agricultural commodities (life Challenges impacts of agriculture cycle inventory data) in a common format. This data is available for use by life cycle assessment practitioners, ensuring LCAs utilise data reflective of the Australian environment. New and Improving the humaneness of This research showed that the public believe commercial harvesting is an acceptable form of kangaroo management, as long as it developing commercial kangaroo harvesting is done by professional and skilled shooters, and the carcases are used rather than wasted. For kangaroos, the harms associated Animal with harvesting will be reduced; harvesters now have practical information so that good welfare practices can be accepted, Industries implemented and continually improved by them during harvesting; policymakers can have confidence that policy development and training is based on the best available science; and the general public can be reassured that the welfare of kangaroos during harvesting is an important issue. 101 102 Program Environmental issue Outcomes New Water – a critical resource The New Plant Products Program included projects that are aimed at finding or improving knowledge on alternative, Plant low-water-use crops including: Products • Quinoa - drought-tolerant super-grain • Development of Chinese Date-Jujube Industry
RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Date palm improvement trial • Native grasses and native legume research projects. • New Industries for future climates study Overcoming soil loss, salinity and acidity The New and Developing Plants program has a number of saline research projects including: • The trial of species for a K-pulping (paper • Research on quinoa and teff - salt tolerant super grains manufacture) process • Rejuvenation of the new crops website and carob industry • Native grass and native legume development development studies • Seaweed cultivation studies • Date palm R&D. • Studies towards the development of a Chinese date (jujube) industry Sustainable use of Australia’s The New Plants Program is commencing research into harnessing Australia’s wild rice genetic diversity. The New, Developing biodiversity and Maturing Plant Programs also conduct research projects on the sustainable use of Australia’s biodiversity including: • Native grasses for agriculture • Food and land rehabilitation. Responding to climate change and Many new plants projects, active in 2013–14 were, in whole or part, aimed at addressing issues of climate change or food variability security, including: • Asian and World Foods Newsletter • Cullen australasicum – overcoming a limitation towards its • Intensive seed-production systems to commercial success commercialise native grasses • Processing seed of selected low-input native grasses for • Drought tolerance of novel perennial legumes commercial adoption • Tropical Exotic Fruit Industry - Strategic Direction Setting • Development of Chinese date-jujube industry • Quinoa research • Cultivating Australian seaweeds for health and nutritional markets • Broad scale implementation of native grass germination enhancement technologies • Water use and the irrigation requirements of hazelnuts in Australia • Developing an Australian date industry • Improved decision making by LOTE • Commercialising cocoa growing in north Queensland growers—the next step • Commercialisation of elite lines of Microlaena stipoides as a perennial grain. Program Environmental issue Outcomes Essential Oils Transition to management of Myrtle Chemical control of the spread of Myrtle rust has been investigated in the native food and tea tree oil industries and potential and Plant rust for new Rural Industries for residue issues is also being monitored. Extracts Selections for resistance in lemon myrtle and tea tree are currently being explored, with preliminary results indicating variability in resistance across the species suggesting potential for future breeding programs.
Tea Tree Oil Integrated pest management options APVMA permits for softer chemical options for treating pests and weeds for tea tree oil producers. investigated for tea tree production systems Reducing nitrous oxide emissions and Commencement of a project to demonstrate the use of legumes and the application of tea tree mulch in tea tree production increasing soil carbon
Wildflowers Water – a critical resource An irrigation manual produced to guide wildflower producers in water use efficiency. and Native Plants Program 103 Measures being taken to minimise the impact of actions by the agency on the environment
• RIRDC continued initiatives to minimise the impact of its actions on the environment by: –– distributing advisory and Audit Committee meeting papers electronically; –– continued distributing Board papers electronically for use via computer tablets; –– enhancing intranet services to staff so that the majority of internal policies, forms and administrative documents are electronically available; and –– encouraging teleconferencing whenever possible. • The Corporation continued to promote the use of print-on-demand services for its publications by: –– electronically distributing corporate documents to clients and stakeholders; –– encouraging the use of electronic files in place of hardcopy items, e.g. the Annual Operational Plan and other corporate documents; and –– encouraging the URL distribution of electronic research reports rather than printing of hardcopies for distribution to our stakeholders. • RIRDC has developed a risk assessment framework for project proposals to reduce the risk of funding plants and animals that may become invasive. Mechanisms for reviewing and increasing the effectiveness of the above measures
• The Corporation closely monitored its paper usage and postage costs during the year to quantify the effectiveness of these measures. • More generally, the Corporation has a regular program of evaluating the impact of its R&D investments using a triple bottom line approach, i.e. assessing economic, environmental and social impacts. • The RIRDC project application process specifically requires an applicant to address the environmental implications of their project in addition to the economic and social impacts. Freedom of information The broad objective of the Freedom of Information Act 1982 (FOI Act) is to give the Australian community access to information held by the Government of the Commonwealth. Reforms to the FOI Act, which came into effect on 1 May 2011 are aimed at promoting a pro-disclosure culture across government, and building a stronger foundation for greater openness and transparency in government operations. RIRDC is committed to a proactive approach to publishing information which it holds to the benefit of the rural and rural research community and the broader Australian public. This information is accessible through its electronic bookshop on the Corporation’s website - www.rirdc.gov.au. RIRDC operates under the direction of a Board of Directors. Our headquarters is in Canberra and our corporate contact details are: Rural Industries Research and Development Corporation Level 2, 15 National Circuit Barton ACT 2600 Ph: 02 6271 4100 Fax: 02 6271 4199
104 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Email: [email protected] Web: www.rirdc.gov.au Postal Address: PO Box 4776 Kingston ACT 2604 As required under the FOI Act, RIRDC also submits an Annual Section 9 Statement to the National Archives of Australia outlining the documents and processes used to make decisions in relation to the funding of R&D Projects. How to make a request for access to documents under the FOI Act Requests made under the FOI Act must: • Be in writing. • State that the request is an application for the purposes of the FOI Act. • Provide such information concerning the document that will allow RIRDC to identify it. • Provide detail of how notices provided by RIRDC in relation to the FOI request can be sent to the applicant. RIRDC documents RIRDC publishes or holds documents that are corporate documents such as the Annual Report, Corporate Plan and Annual Operational Plan. These are free while stocks are available. They are also available for free download from RIRDC's website - www.rirdc.gov.au. RIRDC's extensive research library of is available for viewing, free downloading or purchasing from our print-on-demand portal at https://rirdc.infoservices.com.au/. Purchases can also be made by phoning 1300 634 313 for a local call charge. Accessing information Formal requests for information under the FOI Act must be made in writing to the FOI Coordinator: Mrs Christine Quick General Manager, Corporate Rural Industries Research & Development Corporation PO Box 4776 KINGSTON ACT 2604 Ph: 02 6271 4150 Fax: 02 6271 4199 [email protected] In many cases, an application under the FOI Act may not be required as information or documents may be readily available. An up-to-date listing of projects funded by RIRDC is detailed on the RIRDC website. Funding information on individual projects is available, on request, from the Corporation.
105 Processing of FOI requests Upon receipt of your FOI request, RIRDC will provide you with an acknowledgement of receipt within 14 days. In accordance with the FOI Act, a decision must be notified to the FOI Applicant within 30 days of receipt. However, as some documents may be subject to a third party consultation process, the FOI Act provides agencies with the right to extend the applicable timeframe by an additional 30 days. If consultation is required, you will be informed accordingly. Fees and charges FOI requests made to RIRDC on or after 1 November 2010 no longer require an application fee to be paid. However, the FOI Act provides that charges may be imposed for processing requests (except where you are seeking documents containing your own personal information). Should your FOI request incur any charges, you will be provided with an estimate of the applicable charges. Your request will not proceed until you provide a response to the estimate. RIRDC may decide to remit, reduce or not impose processing charges under certain circumstances. Review rights Following receipt of the decision on access, you are entitled to seek an internal review of the decision. If you wish to utilise this option, you are required to write to FOI Coordinator within 30 days of being notified of the decision. Alternatively, you may write to the Office of the Australian Information Commissioner (OAIC) seeking a review of RIRDC’s decision. This can be done as a result of either the initial decision or the internal review decision. Subsequent review options after internal review and OAIC review are also available. The complete process for seeking a review on access is provided in the decision letter sent to you at the completion of your request. Further information The FOI Coordinator can be contacted on 02 6271 4150 to discuss any prospective request to the Corporation. Since 1 May 2011 agencies have been required to provide public access to documents released in accordance with the FOI Act. Documents released under the FOI Act can be obtained by accessing RIRDC’s FOI Disclosure Log at www.rirdc.gov.au. RIRDC's FOI information can be found by accessing www.rirdc.gov.au. Information Publication Scheme Agencies subject to the Freedom of Information Act 1982 (FOI Act) are required to publish information to the public as part of the Information Publication Scheme (IPS). This requirement is in Part II of the FOI Act and has replaced the former requirement to publish a section 8 statement in an annual report. Each agency must display on its website a plan showing what information it publishes in accordance with the IPS requirements.
106 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014
Financial and performance statements Financial and performance statements
Independent Auditor's report...... 110 Statement by Directors, Chief Executive and Chief Financial Officer ...... 112 Statement of Comprehensive Income...... 113 Balance Sheet...... 114 Statement of Changes in Equity...... 115 Cash Flow Statement...... 116 Schedule of Commitments...... 117
109 Independent Auditor's report
110 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 111 Statement by Directors, Chief Executive and Chief Financial Officer
112 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Statement by Directors, Chief Executive and Chief Financial Officer Statement of Comprehensive Income
For the period ended 30 June 2014
Notes 2014 2013 $’000 $’000 EXPENSES Employee benefits 3A 4,416 3,830 Research projects 3B 14,578 14,249 Supplier expenses 3C 3,396 3,169 Depreciation and amortisation 3D 173 161 Finance costs 3E 2 1 Write-down and impairment of assets 3F 52 - Total expenses 22,617 21,410 Less: OWN SOURCE INCOME Own-source Revenue Industry levies 4A 5,476 4,623 External contributions 4B 3,569 3,744 Sale of goods 4C 35 32 Interest 4D 741 793 Royalties 4E 144 225 Other revenue 4F 129 292 Total own-source revenue 10,094 9,709 Gains Reversals of previous asset write-downs 4G - 11 and impairments Total gains - 11 Total own-source income 10,094 9,720 Net cost of services 12,523 11,690 Revenue from Government 4H 14,702 14,688 Surplus attributable to Australian Government 2,179 2,998 OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to profit or loss Changes in asset revaluation reserves - 1 Total other comprehensive income - 1 Total comprehensive income 2,179 2,999 Total comprehensive income attributable to the Australian 2,179 2,999 Government
The above statement should be read in conjunction with the accompanying notes.
113 Balance Sheet as at 30 June 2014
Notes 2014 2013 $’000 $’000 ASSETS Financial Assets Cash and cash equivalents 6A 5,578 3,510 Trade and other receivables 6B 1,859 2,285 Investments 6C 10,000 10,000 Total financial assets 17,437 15,795 Non-Financial Assets Property, plant and equipment 7A, B 170 254 Intangibles 7C, D 234 175 Other non-financial assets 7E 99 21 Total non-financial assets 503 450 Total assets 17,940 16,245 LIABILITIES Payables Suppliers 8A 239 623 Research projects 8B 1,002 941 Other payables 8C 342 417 Total payables 1,583 1,981 Provisions Employee provisions 9A 681 769 Other provisions 9B 63 61 Total provisions 744 830 Total liabilities 2,327 2,811 Net assets 15,613 13,434 EQUITY Reserves 474 474 Retained surplus 15,139 12,960 Total equity 15,613 13,434
The above statement should be read in conjunction with the accompanying notes.
114 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Statement of Changes in Equity
For the period ended 30 June 2014
Asset revaluation Retained earnings Reserves Total equity 2014 2013 2014 2013 2014 2013 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance Balance carried forward from 12,960 9,962 474 473 13,434 10,435 previous period Adjusted opening balance 12,960 9,962 474 473 13,434 10,435 Comprehensive income Other comprehensive income - - - 1 - 1 Surplus (Deficit) for the period 2,179 2,998 - - 2,179 2,998 Total comprehensive income 2,179 2,998 - 1 2,179 2,999 of which: Attributable to the 2,179 2,998 - 1 2,179 2,999 Australian Government Closing balance as at 30 June 15,139 12,960 474 474 15,613 13,434 Closing balance attributable to 15,139 12,960 474 474 15,613 13,434 the Australian Government
The above statement should be read in conjunction with the accompanying notes.
115 Cash Flow Statement
For the period ended 30 June 2014
Notes 2014 2013 $’000 $’000 OPERATING ACTIVITIES Cash received Receipts from Government 14,951 14,244 Industry levies 5,463 4,658 External contributions 4,007 4,059 Sale of goods and rendering of services 39 35 Net GST received 1,322 1,472 Interest 764 709 Other 287 556 Total cash received 26,833 25,733 Cash used Research projects 15,785 15,962 Employees 4,504 3,791 Suppliers 4,328 2,723 Other cash used - - Total cash used 24,617 22,476 Net cash from operating activities 10 2,216 3,257 INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment 33 58 Purchase of intangibles 115 81 Investments - - Total cash used 148 139 Net cash from used by investing activities (148) (139) Net increase in cash held 2,068 3,118 Cash and cash equivalents at the beginning of the 3,510 392 reporting period Cash and cash equivalents at the end of the 6A 5,578 3,510 reporting period
The above statement should be read in conjunction with the accompanying notes.
116 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Schedule of Commitments as at 30 June 2014
2014 2013 $’000 $’000 BY TYPE Commitments receivable Net GST recoverable on commitments 1,647 1,800 Total commitments receivable 1,647 1,800
Commitments payable Other commitments Operating leases1 469 796 Research projects2 17,653 19,007 Total other commitments 18,122 19,803 Net commitments by type 16,475 18,003
BY MATURITY Commitments receivable One year or less 868 937 From one to five years 779 863 Total other commitments receivable 1,647 1,800
Commitments payable Operating lease commitments One year or less 378 352 From one to five years 91 444 Total operating lease commitments 469 796
Research project commitments One year or less 9,166 9,955 From one to five years 8,487 9,052 Total research project commitments 17,653 19,007 Net commitments by maturity 16,475 18,003
Note: Commitments are GST inclusive where relevant. 1 Operating leases included are effectively non-cancellable and comprise: Leases for office accommodation On 2 December 2010 the Corporation leased premises (Level 2 Pharmacy Guild House 15 National Circuit Barton ACT) for a five year lease term commencing 1 October 2010. Under the terms of the lease agreement, rental for the period 1 October 2010 to 31 January 2011 was waived. The space consists of 618 m2 at a starting rent of $415 per metre. Lease for car parking bays On 31 May 2014 the Corporation extended a lease on nine car parking bays for a twelve month term commencing 1 June 2014. 2 Research projects comprise (i) amounts payable under research project agreements in respect of which the recipient is yet to perform the services required and (ii) contracts for research signed and sent by the Corporation but yet to be signed and returned by the researcher. The above statement should be read in conjunction with the accompanying notes. 117 118 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Notes to the Financial Statements
Note 1: Summary of Significant Accounting Policies...... 122 Note 2: Events After the Reporting Period...... 130 Note 3: Expenses...... 131 Note 4: Income...... 133 Note 5: Fair Value Measurements...... 134 Note 6: Financial Assets...... 136 Note 7: Non-Financial Assets...... 138 Note 8: Payables...... 143 Note 9: Provisions...... 144 Note 10: Cash Flow Reconciliation...... 145 Note 11: Contingent Liabilities and Assets...... 146 Note 12: Directors Remuneration...... 147 Note 13: Related Party Disclosures...... 148 Note 14: Senior Executive Remuneration...... 149 Note 15: Remuneration of Auditors...... 152 Note 16: Financial Instruments...... 153 Note 17: Financial Assets Reconciliation...... 156 Note 18: Compensation and Debt Relief...... 157 Note 19: Reporting of Outcomes...... 158
119 Notes to and forming part of the financial statements • Note 1: Summary of Significant Accounting Policies 1.1 Objective of Rural Industries Research and Development Corporation The Rural Industries Research and Development Corporation (Corporation) is an Australian Government controlled entity. The objective of the Corporation is to contribute to the productivity and sustainability of Australia through rural innovation by working with industry and government. In doing this we generate the knowledge to help rural industries and communities to capture opportunity and manage change. Growing the productivity and sustainability of rural industries through innovation is a key driver of the prosperity and resilience of rural Australia. The Corporation is structured to meet a single outcome: • Increased knowledge that fosters sustainable, productive and profitable new and existing rural industries and furthers understanding of national rural issues through research and development in government-industry partnership. The continued existence of the Corporation in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Corporation’s administration and programs.
1.2 Basis of Preparation of the Financial Report The Financial Statements and notes have been prepared in accordance with: • Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; and • Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period. The financial statements have been prepared on an accrual basis and in accordance with historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified. Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the Corporation or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies. Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.
120 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 1.3 Significant Accounting Judgements and Estimates In the process of applying the accounting policies listed in this note, the Corporation has made the following judgements that have the most significant impact on the amounts recorded in the financial statements: The fair value of non-financial assets (determined by the Australian Valuation Office) have been taken to be: • Office and computer equipment, furniture and fittings, the market value of similar assets, and • Leasehold improvements, the written down current costs. The liability for long service leave has been estimated using present value techniques in accordance with the shorthand method as per FMO 43.2(a). This takes into account expected salary growth, attrition and future discounting using Commonwealth bond rates. No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. 1.4 New Accounting Standards Adoption of new Australian Accounting Standard Requirements No accounting standard has been adopted earlier than the application date as stated in the standard. No new standards, revised standards, interpretations and amending standards that were issued prior to the signing of the statements and are applicable to the current reporting period, had a financial impact on the Corporation or are expected to have a future financial impact on the Corporation. Future Australian Accounting Standard Requirements No new standards, revised standards, interpretations and amending standards that were issued prior to the signing of the statements and are applicable to the future reporting periods are expected to have a material financial impact on the Corporation. 1.5 Revenue Revenues from Government Each year the Australian Government appropriates funds to facilitate RIRDC's core program activities. Amounts appropriated for departmental outputs for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the Corporation gains control of the funding, unless it is in the nature of an equity injection. Under Section 30(1)(b) of the Primary Industries Research and Development Act 1989 (PIRD Act), the Australian Government provides matching payments, within certain parameters, equal to one half of the amount expended by each leviable program. Matching payments are recognised as Revenue from Government when the necessary expense is recognised.
121 Industry Levies Under Section 30(1)(a) of the PIRD Act, each RIRDC program to which a levy is attached receives industry levies. These contributions to the Corporation are collected and distributed by the Australian Government under the various Levy Collection Acts. Industry levies revenue is recognised when the amounts are paid or payable by the Government to the Corporation. External Contributions External contributions consist of: • Industry contributions, which are contributions from industry untied to projects or a contractual agreement. These contributions are recognised as revenue on receipt; • Joint funding contributions, which are contributions from industry and other third party funding organisations to a particular project. These contributions are recognised as revenue on receipt; and • Other contributions to a program managed by the Corporation (eg. grants). These contributions are recognised as revenue on receipt. Interest Revenue Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement. Project Refunds From time to time the Corporation receives project refunds, typically where a provider delivers the project for less than the funds received. Project refunds relating to prior years expenditure are recognised as revenue upon receipt. Royalties Royalties are recognised when the royalty is entitled to be received by the Corporation. Goods and Services Revenue from the sale of goods is recognised when: • The risks and rewards of ownership have been transferred to the buyer; • The seller retains no managerial involvement nor effective control over the goods; • The revenue and transaction costs incurred can be reliably measured; and • It is probable that the economic benefits associated with the transaction will flow to the Corporation. Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed as at balance date. Allowances are made when collectability of the debt is no longer probable. 1.6 Gains Resources Received Free of Charge Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature. Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless
122 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 received from another Government entity as a consequence of a restructuring of administrative arrangements. Sale of Assets Gains from disposal of assets are recognised when control of the asset has passed to the buyer. 1.7 Employee Benefits Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. Leave The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Corporation is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will apply at the time the leave is taken, including the Corporation’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave has been determined by reference to the shorthand method set out in the FMOs. The estimate of the present value of the liability takes into account attribution rates and pay increases through promotion and inflation. Separation and Redundancy Provision is made for separation and redundancy benefit payments. The Corporation recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.
Superannuation Employees of the Corporation are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap) or other funds. The CSS and PSS are defined benefit schemes for the Australian Government. The remaining funds are defined contribution schemes. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes. The Corporation makes employer contributions to employee superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government of the superannuation entitlements of the Corporation’s employees. The Corporation accounts for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year. 1.8 Leases A distinction is made between finance leases and operating leases.
123 Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits. Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets. The Corporation did not have any finance leases during 2013–14. 1.9 Fair Value Management The Corporation deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period. 1.10 Cash Cash is recognised at its nominal amount. Cash and cash equivalents includes notes and coins held and any deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. 1.11 Financial Assets
The Corporation classifies its financial assets in the following categories: • ‘held-to-maturity investments’; and • ‘loans and receivables’. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.
Held-to-Maturity Investments Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Corporation has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at cost, with revenue recognised on an accrual basis.
Loans and Receivables Trade and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. The Corporation did not have any loans during 2013–14. Receivables are measured at cost less impairment.
Impairment of Financial Assets Financial assets are assessed for impairment at the end of each reporting period. If there is an indication that receivables may be impaired, the Corporation makes an estimation of the receivable’s recoverable amount. When the carrying amount of the receivable exceeds the recoverable amount, it is considered impaired and it is written down to its recoverable amount.
124 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 1.12 Financial Liabilities The Corporation’s financial liabilities consist of trade creditors and accruals, amounts owing to research providers and other payables. These liabilities are recognised at their nominal amounts, being the amounts which the Corporation expects the liabilities will be settled. Liabilities are recognised to the extent the goods and services have been received (and irrespective of having been invoiced). 1.13 Contingent Liabilities and Contingent Assets Contingent liabilities and contingent assets are not recognised in the Balance Sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote. 1.14 Acquisition of Assets Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring. 1.15 Property, Plant and Equipment
Asset Recognition Threshold Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $1,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘makegood’ provisions in property leases taken up by the Corporation where there exists an obligation to restore the property to original condition. These costs are included in the value of the Corporation’s leasehold improvements with a corresponding provision for the ‘makegood’ recognised. Revaluations Following initial recognition at cost, property, plant and equipment are carried at fair value less accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in
125 the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.
Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Corporation using, in all cases, the straight-line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following useful lives: Asset Class 2013–14 2012–13 Office equipment 5 years 5 years Furniture and fittings 15 years 15 years Computer equipment 3 years 3 years Leasehold improvements Lease term Lease term
Impairment All assets were assessed for impairment at 30 June 2014. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Corporation were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
Derecognition An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. 1.16 Intangibles The Corporation’s intangibles comprise purchased computer software. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Software is amortised on a straight-line basis over its anticipated useful life. The useful life of the Corporation’s software is 5 years (2012–13: 5 years). All software assets were assessed for indications of impairment as at 30 June 2014.
126 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 1.17 Taxation The Corporation is exempt from all forms of taxation except Payroll Tax, Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Revenues, expenses and assets are recognised net of GST except: • where the amount of GST incurred is not recoverable from the Australian Taxation Office; and • for receivables and payables. 1.18 Comparative Figures Comparative figures are adjusted so that they conform with changes in the presentation of the financial statements where required. There have been no changes to the comparative figures this year other than updating the reporting bands in the executive remuneration notes in accordance with the FMOs.
127 • Note 2: Events After the Reporting Period No matters or circumstances have arisen since the end of the financial year which significantly affected or may affect the operations of the Corporation, the results of these operations or state of affairs of the Corporation in subsequent years.
128 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Note 3: Expenses 2014 2013 $’000 $’000 Notes 3A: Employee benefits Wages and salaries 2,927 2,669 Superannuation: Defined contribution plans 202 169 Defined benefit plans 319 360 Leave and other entitlements 353 296 Separation and redundancies 396 123 Other employment benefits 219 213 Total employment benefits 4,416 3,830 Note 3B: Research projects Public sector: Australian Government entities (related entities) 1,078 1,686 State and Territory Governments 3,920 3,388 Private sector: Non-profit organisations 162 848 Tertiary institutions 5,072 4,654 Other 4,346 3,673 Total research projects 14,578 14,249 Note 3C: Suppliers Goods and Services: Consultants 856 629 Contractors 359 338 Information and communication 458 547 Legal Services 89 79 Learning and development 55 57 Travel 400 365 General goods and services 821 833 Total goods and services 3,038 2,848 Goods and Services are made up of: Provision of goods – external parties 358 472 Rendering of services – related entities 327 429 Rendering of services – external parties 2,353 1,947 Total goods and services 3,038 2,848 Other suppliers Operating lease rentals – external parties: Minimum lease payments 290 287 Workers compensation expenses 68 34 Total other suppliers 358 321 Total supplier expenses 3,396 3,169
129 2014 2013 $’000 $’000 Note 3D: Depreciation and amortisation Depreciation: Office equipment 4 4 Furniture and fittings 4 4 Computer equipment 56 46 Leasehold improvements 53 53 Total depreciation 117 107 Amortisation: Intangibles – Computer software 56 54 Total amortisation 56 54 Total depreciation and amortisation 173 161 Note 3E: Finance costs Unwinding of discount 2 1 Total finance costs 2 1 Note 3F: Write-down and impairment of assets Asset write-downs and impairments from: Impairment of receivables 52 - Other - - Total write-down and impairment of assets 52 -
130 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Note 4: Income 2014 2013 $’000 $’000 Revenue Note 4A: Industry levies Industry levies 5,473 4,621 Industry levy penalties 3 2 Total industry levies 5,476 4,623 Note 4B: External contributions Joint funding contributions 1,990 929 Industry contributions 801 2,150 Other 778 665 Total external contributions 3,569 3,744 Note 4C: Sale of goods Provision of goods – external parties 35 32 Total sale of goods 35 32 Note 4D: Interest Deposits 741 793 Total interest 741 793 Note 4E: Royalties Research project royalties 144 225 Total royalties 144 225 Note 4F: Other revenue Project funds 129 292 Total other revenue 129 292 Gains Note 4G: Reversals of previous asset write-downs and impairments Reversal of impairment losses - 11 Total reversals of previous asset write-downs and - 11 impairments REVENUE FROM GOVERNMENT Note 4H: Revenue from Government* Department of Agriculture CAC Act body payment item 11,319 11,243 Commonwealth contributions 3,383 3,445 Total revenue from Government 14,702 14,688
* The Corporation did not receive any funding under the Paid Parental Leave Scheme in 2014 (2013: $nil).
131 • Note 5: Fair Value Measurements The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below: Level 1: Q uoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date. Level 2: I nputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
Note 5A: Fair Value Measurements Fair value measurements at the end of the reporting period by hierarchy for assets and liabilities in 2014: Fair value measurements at the end of the reporting period using Fair value Level 1 inputs Level 2 inputs Level 3 $’000 $’000 $’000 inputs $’000 Non-financial assets: Office equipment 7 - - 7 Furniture and fittings 29 - - 29 Computer equipment 68 - - 68 Leasehold improvements 66 - - 66 Total non-financial assets 170 - - 170 Total fair value 170 - - 170 measurements The Corporation did not measure any non-financial assets at fair value on a non-recurring basis as at 30 June 2014. The highest and best use of all non-financial assets are the same as their current use.
Note 5B: Level 1 and Level 2 Transfers for Recurring Fair Value Measurements There were no transfers between Levels 1 and 2 during the period. The Corporation's policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.
132 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Note 5C: Valuation Technique and Inputs for Level 2 and Level 3 Fair Value Measurements
Level 2 and 3 fair value measurements - valuation technique and the inputs used for assets and liabilities in 2014: Category Fair value Valuation Inputs used (Level 2 or $’000 technique(s) Level 3) Non-financial assets: Office equipment Level 3 7 Depreciated Replacement replacement cost cost and useful life Furniture and fittings Level 3 29 Depreciated Replacement replacement cost cost and useful life Computer equipment Level 3 68 Depreciated Replacement replacement cost cost and useful life Leasehold improvements Level 3 66 Depreciated Replacement replacement cost cost and useful life Recurring Level 3 fair value measurements - valuation processes Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Note 5D: Reconciliation of Recurring Level 3 Fair Value Measurements Non-financial assets Property, plant Total and equipment 2014 2014 $’000 $’000 Opening balance 254 254 Purchases 33 33 Depreciation expense (117) (117) Total non-financial assets 170 170
133 • Note 6: Financial Assets 2014 2013 $’000 $’000 Note 6A: Cash and cash equivalents Cash on hand 1,468 2,454 Term Deposits <= 3 months 4,110 1,056 Total cash and cash equivalents 5,578 3,510 Note 6B: Trade and other receivables Goods and services: Goods and services – related entities 150 372 Goods and services – external parties 299 195 Total receivables for goods and services 449 567 Commonwealth contributions Department of Agriculture 1,015 1,264 Total receivables for Commonwealth contributions 1,015 1,264 Other receivables GST receivable from the Australian Taxation Office 315 299 Interest 132 155 Total other receivables 447 454 Total trade and other receivables (gross) 1,911 2,285 Less impairment allowance account: Goods and services (52) - Total impairment allowance account (52) - Total trade and other receivables (net) 1,859 2,285
All receivables are expected to be recoved in no more than 12 months. Receivables are aged as follows Not overdue 1,731 2,234 Overdue by: 0 to 30 days 126 23 31 to 60 days 2 2 61 to 90 days - - More than 90 days 52 26 Total receivables (gross) 1,911 2,285
All trade and other receivables are current assets.
134 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 2014 2013 $’000 $’000 The impairment allowance account is aged as follows: Overdue by: More than 90 days (52) - Total impairment allowance account (52) - Reconciliation of the impairment allowance account: Movements in relation to 2014 Goods and services Total $’000 $’000 Opening balance - - Amounts written off - - Amounts recovered and reversed - - Increase/decrease recognised in net surplus (52) (52) Closing balance (52) (52) Movements in relation to 2013 Goods and services Total $’000 $’000 Opening balance (13) (13) Amounts written off 2 2 Amounts recovered and reversed 11 11 Increase/decrease recognised in net surplus - - Closing balance - -
2014 2013 $’000 $’000 Note 6C: Investments Term Deposits* 10,000 10,000 Total investments 10,000 10,000 Total investments are expected to be recovered in: No more than 12 months 10,000 10,000 Total investments 10,000 10,000
*6 month term deposit @ 3.61% pa (2013: 6 month term deposit @ 4.30% pa)
135 • Note 7: Non-Financial Assets 2014 2013 $’000 $’000 Note 7A: Property, plants and equipment Office equipment Fair value 24 24 Accumulated depreciation (17) (13) Total office equipment 7 11 Furniture and fittings Fair value 52 52 Accumulated depreciation (23) (19) Total furniture and fittings 29 33 Computer equipment Fair value 194 236 Accumulated depreciation (126) (145) Total computer equipment 68 91 Total plant and equipment 104 135 Leasehold improvements Fair value 265 265 Accumulated depreciation (199) (146) Total leasehold improvements 66 119 Total property, plant and equipment 170 254
There were no revaluation increments credited to the asset revaluation reserve (2013: Nil), no decrements were expensed (2013: Nil). No indicators of impairment were found for property, plant and equipment. No property, plant or equipment is expected to be sold or disposed of within the next 12 months.
Refer to Note 7B for the reconciliation of opening and closing balances.
136 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Note 7B: Reconciliation of the opening and closing balances of property, plant and equipment (2013–14) Office Furniture Computer Leasehold equipment and equipment improvements Total $’000 fittings $’000 $’000 $’000 $’000 As at 1 July 2013 Gross book value 24 52 236 265 577 Accumulated depreciation and impairment (13) (19) (145) (146) (323) Net book value 1 July 2013 11 33 91 119 254
Additions: By purchase - - 33 - 33 Revaluations and impairments recognised in - - - - - other comprehensive income Disposals: Other - - (75) - (75) Depreciation expense (4) (4) (56) (53) (117) Disposals: Other disposals - - 75 - 75 Net book value 30 June 2014 7 29 68 66 170 Net book value as of 30 June 2014 represented by: Gross book value 24 52 194 265 535 Accumulated depreciation (17) (23) (126) (199) (365) 7 29 68 66 170
137 Note 7B: Reconciliation of the opening and closing balances of property, plant and equipment (2012–13) Office Furniture Computer Leasehold equipment and fittings equipment improvements Total $’000 $’000 $’000 $’000 $’000 As at 1 July 2012 Gross book value 31 52 184 265 532 Accumulated depreciation and impairment (16) (15) (105) (93) (229) Net book value 1 July 2012 15 37 79 172 303 Additions By purchase - - 58 - 58 Revaluations and impairments recognised in - - - - - other comprehensive income Disposals: Other (7) - (6) - (13) Depreciation expense (4) (4) (46) (53) (107) Diposals: Other 7 - 6 - 13 Net book value 30 June 2013 11 33 91 119 254 Net book value as of 30 June 2013 represented by: Gross book value 24 52 236 265 577 Accumulated depreciation (13) (19) (145) (146) (323) 11 33 91 119 254
2014 2013 $’000 $’000 Note 7C: Intangibles Computer software: Purchased (at cost) 570 657 Accumulated amortisation (336) (482) Total intangibles 234 175
Refer to Note 7D for the reconciliation of opening and closing balances. No intangible assets are expected to be sold or disposed of within next 12 months. No indicators of impairment were found for the intangible assets.
138 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Note 7D: Reconciliation of the opening and closing balances of intangibles (2013-14) Computer software purchased $’000 As at 1 July 2013 Gross book value 657 Accumulated amortisation and impairment (482) Net book value 1 July 2013 175 Additions: By purchase 115 Disposals: Other (202) Amortisation (56) Disposals: Other disposals 202 Net book value 30 June 2014 234 Net book value as of 30 June 2014 represented by: Gross book value 570 Accumulated amortisation and impairment (336) 234 Note 7D: Reconciliation of the opening and closing balances of intangibles (2012-13) Computer software purchased $’000 As at 1 July 2012 Gross book value 576 Accumulated amortisation and impairment (428) Net book value 1 July 2012 148 Additions: By purchase 81 Amortisation (54) Net book value 30 June 2013 175 Net book value as of 30 June 2013 represented by: Gross book value 657 Accumulated amortisation and impairment (482) 175
139 2014 2013 $’000 $’000 Note 7E: Other non-financial assets Prepayments 99 21 Total other non-financial assets 99 21 Total other non-financial assets - are expected to be recovered in: No more than 12 months 99 21 Total other non-financial assets 99 21
No indicators of impairment were found for other non-financial assets.
140 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Note 8: Payables 2014 2013 $’000 $’000 Note 8A: Suppliers Trade creditors and accruals 239 623 Total supplier payables 239 623 Supplier payables expcted to be settled within 12 months Related parties 30 50 External parties 209 573 Total supplier payables 239 623
Settlement is usually made within 30 days. Note 8B: Research projects Public sector Australian Government entities (related entities) 79 78 State and Territory Governments 257 352 Private sector: Non-profit organisations 503 238 Other 163 273 Total research projects 1,002 941 All research projects are expected to be settled in no more than 12 months. Research project creditors are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. They relate to payments approved on achievement of agreed milestones, but which were unpaid at the end of the period. Settlement is usually made within 60 days.
Note 8C: Other payables FBT payable 14 17 Wages and salaries 289 112 Superannuation 15 14 Lease incentive 24 43 CCRSPI payable - 231 Total other payables 342 417 Total other payables are expected to be settled in: No more than 12 months 337 393 More than 12 months 5 24 Total other payables 342 417
141 • Note 9: Provisions 2014 2013 $’000 $’000 Note 9A: Employee provisions Leave 681 769 Total employee provisions 681 769 Employee provisions are expected to be settled in: No more than 12 months 562 653 More than 12 months 119 116 Total employee provisions 681 769 Note 9B: Other provisions Provisions for restoration obligations 63 61 Total other provisions 63 61
All other provisions are expected to be settled in more than 12 months.
Provision for restoration $’000 Carrying amount 1 July 2013 61 Unwinding of discount or change in discount rate 2 Closing balance 30 June 2014 63
The Corporation currently has an agreement for the leasing of the premises which has a provision requiring the Corporation to restore the premises to their original condition at the conclusion of the lease. The Corporation has made a provision to reflect the present value of this obligation.
142 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Note 10: Cash Flow Reconciliation 2014 2013 $’000 $’000 Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement Cash and cash equivalents as per: Cash flow statement 5,578 3,510 Balance sheet 5,578 3,510 Difference - - Reconciliation of net cost of services to net cash from operating activities: Net cost of services (12,523) (11,690) Add revenue from Government 14,702 14,688 Adjustments for non-cash items Depreciation and amortisation 173 161 Revaluation increment - provision for makegood - 1 Changes in assets/liabilities (Increase)/decrease in net receivables 426 (364) (Increase)/decrease in repayments (78) 26 Increase/(decrease) in employee provisions (88) 39 Increase/(decrease) in supplier payables (384) 479 Increase/(decrease) in research projects payable 61 (294) Increase/(decrease) in other payables (75) 210 Increase/(decrease) in other provisions 2 1 Net cash from operating activities 2,216 3,257
143 • Note 11: Contingent Liabilities and Assets Quantifiable Contingencies As at 30 June 2014, the Corporation has no quantifiable contingencies (2013: nil).
Unquantifiable Contingencies As at 30 June 2014, the Corporation has no unquantifiable contingencies (2013: nil).
Significant Remote Contingencies As at 30 June 2014, the Corporation has no material remote contingencies (2013: nil).
144 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Note 12: Directors Remuneration 2014 2013 No. No. The number of non-executive directors of the Corporation included in these figures are shown below in the relevant remuneration bands: $30,000 to $59,999 8 7 $60,000 to $89,999 - 1 Total 8 8
$ $ Total remuneration received or due and receivable by directors of 329,317 314,068 the Corporation.
Remuneration of executive directors is included in Note 14: Senior Executive Remuneration.
145 • Note 13: Related Party Disclosures The directors and key management personnel of the Corporation during the year were:
Prof D A Stehlik (Chairperson) Dr M J Sleigh (Deputy Chairperson) Mr A D Campbell, AM Ms R Healy Mr S Archer Mr M Guerin Ms A Johnson Dr L Stephens Mr C S Burns (Managing Director) Ms A Lovett Ms F Raymond (ceased 24 January 2014) Ms C Quick (from 12 May 2014)
The aggregate remuneration of directors is disclosed in Note 12.
Several Directors of the Corporation hold Directorships with other organisations. All transactions between the Corporation and organisations with a Director common to the Corporation, or any dealings between the Corporation and Directors individually, are conducted using commercial and arms-length principles.
2014 2013 $000 $000 Total payments made to Director-related entities 450 564 The Corporation is a founding member of the Australian Rural 55 132 Leadership Foundation (ARLF). Mr C S Burns was appointed as a director of the foundation in November 2012. The ARLF received funding from the Corporation in relation to sponsorship of projects and training. Prof D A Stehlik is an Adjunct Professor of the Australian National 92 136 University (ANU). ANU received funding from the Corporation in relation to research projects. Prof D A Stehlik is an Adjunct Professor of the Queensland University 9 133 of Technology (QUT). QUT received funding from the Corporation in relation to research projects. Prof D A Stehlik is an Adjunct Professor of the James Cook University 178 163 (JCU). JCU received funding from the Corporation in relation to research projects. Mr M Guerin is a beneficiary of the Guerin Family Trust. 116 - The trustee of the Guerin Family Trust is Benson Capital Pty Ltd. Benson Capital Pty Ltd received funding from the Corporation for personal services provided by Mr Guerin.
146 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Note 14: Senior Executive Remuneration Note 14A: Senior executive remuneration expenses for the reporting period 2014 2013 $ $ Short-term employee benefits Salary (including annual leave paid) 497,261 689,597 Performance bonuses - - Total short-term employee benefits 497,261 689,597 Post-employment benefits Superannuation 102,529 133,774 Total post-employment benefits 102,529 133,774 Other long-term benefits Annual leave accrued 443 45,135 Long service leave 17,728 23,160 Total other long-term benefits 18,171 68,295 Termination benefits - - Total 617,961 891,666
Notes: 1. N ote 14A is prepared on an accrual basis (therefore the performance bonus expenses disclosed above may differ from the cash ‘Bonus paid’ in Note 14B). 2. N ote 14A excludes acting arrangements and part-year service where remuneration expensed for a senior executive was less than $195,000.
147 148 Note 14B: Average Annual Reportable Remuneration Paid to Substantive Senior Executives During the Reporting Period 2014 Senior Reportable Contributed Reportable Bonus Executives salary2 superannuation3 allowances4 paid5 Total RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Average annual reportable remuneration1 No. $ $ $ $ $ Total remuneration (including part-time arrangements):
less than $195,000 2 74,591 13,463 - - 88,054 $255,000 to $284,999 1 217,101 42,940 - - 260,041 $345,000 to $374,999 1 295,794 59,146 - - 354,940 Total 4 2013
Senior Reportable Contributed Reportable Bonus Executives salary2 superannuation3 allowances4 paid5 Total Average annual reportable remuneration1 No. $ $ $ $ $ Total remuneration (including part-time arrangements): $195,000 to $224,999 1 179,471 35,933 - - 215,404 $255,000 to $284,999 1 216,484 41,846 - - 258,330 $315,000 to $344,999 1 265,861 55,995 - 10,000 331,856 Total 3
Notes: 1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band. 2. 'Reportable salary' includes the following: a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column); b) reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits); c) reportable employer superannuation contributions; and d) exempt foreign employment income. 3. The 'contributed superannuation' amount is the average cost to the Corporation for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period. 4. ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries. 5. ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable remuneration band. The ‘bonus paid’ within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year. Note 14C: Other Highly Paid Staff
2014 Reportable Contributed Reportable Bonus Staff salary2 superannuation3 allowances4 paid5 Total Average annual reportable remuneration1 No. $ $ $ $ $ Total remuneration (including part-time arrangements): $315,000 to $344,999 1 311,243 25,049 - - 336,292 Total 1 2013 Reportable Contributed Reportable Bonus Staff salary2 superannuation3 allowances4 paid5 Total Average annual reportable remuneration1 No. $ $ $ $ $ Total remuneration (including part-time arrangements): $225,000 to $254,999 1 205,641 19,737 - - 225,378 Total 1
Notes: 1. This table reports staff: a) who were employed by the entity during the reporting period; b) whose reportable remuneration was $195,000 or more for the financial period; and c) w ere not required to be disclosed in Tables A, B or director disclosures. Each row is an averaged figure based on headcount for individuals in the band. 2. 'Reportable salary' includes the following: a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column); b) reportable fringe benefits (at the net amount prior to 'grossing up' for tax benefits); c) reportable employer superannuation contributions; and d) exempt foreign employment income. 3. The 'contributed superannuation' amount is the average cost to the Corporation for the provision of superannuation benefits to other highly paid staff in that reportable remuneration band during the reporting period. 4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.
149 5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year. • Note 15: Remuneration of Auditors 2014 2013 $’000 $’000 The cost of financial statement audit services provided to the Corporation were: Australian National Audit Office 30 27 30 27
No other services were provided by the Australian National Audit Office.
150 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Note 16: Financial Instruments 2014 2013 $’000 $’000 Note 16A: Categories of financial instruments Financial assets Loans and receivables: Cash and cash equivalents 5,578 3,510 Trade and other receivables 529 722 Investments 10,000 10,000 Total 16,107 14,232 Carrying amount of financial assets 16,107 14,232
Financial liabilities At nominal cost: Trade creditors and accruals Suppliers 239 623 Research projects 1,002 941 Other payables 24 274 Total 1,265 1,838 Carrying amount of financial liabilities 1,265 1,838
Note 16B: Net income and expense from financial assets Loans and receivables: Interest revenue 741 793 Impairment (52) - Net gain from loans and receivables 689 793 Net gain from financial assets 689 793
Note 16C: Net income and expense from financial liabilities There is no income and expenses from financial liabilities for the period ending 30 June 2014 (2013: nil).
Note 16D: Fee Income and Expense There is no fee income and expenses from financial assets and liabilities for the period ending 30 June 2014 (2013: nil).
Note 16E: Fair value of financial instruments There are no potential differences between the carrying amounts and fair values of financial assets and liabilities (2013: nil).
151 Note 16F: Credit risk The Corporation's maximum exposures to credit risk at the reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the balance sheet. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of trade and other receivables less the amount of the impairment provision (2014: $529,000 and 2013: $722,000). The Corporation manages its debtors by undertaking recovery processes for those receivables which are considered to be overdue. The risk of overdue debts arising is negated through the implementation of credit assessments on potential customers. The Corporation holds no collateral to mitigate against credit risk. The Corporation’s credit risk profile has not changed from the prior financial year.
Credit quality of financial instruments not past due or individually determined as impaired: Not past due nor Past due or impaired impaired 2014 2013 2014 2013 $000 $000 $000 $000 Cash and cash equivalents 5,578 3,510 - - Trade and other receivables1 349 671 180 51 Investments 10,000 10,000 - - Total 15,927 14,181 180 51
1 Trade and other receivables are subject to minimal credit risk, the majority of which will be recovered on a timely basis.
Ageing of financial assets that are past due but not impaired for 2014 0 to 30 31 to 60 61 to 90 90+ days days days days Total $000 $000 $000 $000 $000 Loans and receivables Trade and other receivables 126 2 - - 128 Total 126 2 - - 128
Ageing of financial assets that are past due but not impaired for 2013 0 to 30 31 to 60 61 to 90 90+ days days days days Total $000 $000 $000 $000 $000 Loans and receivables Trade and other receivables 23 2 - 26 51 Total 23 2 - 26 51
152 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Note 16G: Liquidity risk The Corporation's financial liabilities comprise trade creditors, research project creditors, and other payables. The exposure to liquidity risk is based on the notion that the Corporation will encounter difficulty in meeting its obligations in meeting its financial liabilities. This is highly unlikely due to Government funding, the Corporation's ability to draw down on reserves, and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations. The Corporation manages liquidity risk by ensuring all financial liabilities are paid in accordance with terms and conditions on demand. In addition, the Corporation has no past experience of defaults. The Corporation’s liquidity risk profile has not changed from 2012-13. The Corporation has no derivative financial liabilities in either the current or prior year.
The following table illustrates the maturities for financial liabilities.
Maturities for non-derivative financial liabilities 2014 On within 1 1 to 2 2 to 5 >5 demand year years years years Total 2014 2014 2014 2014 2014 2014 $000 $000 $000 $000 $000 $000 Other financial liabilities Suppliers - 239 - - - 239 Research projects - 1,002 - - - 1,002 Other payables - 19 5 - - 24 Total - 1,260 5 - - 1,265
Maturities for non-derivative financial liabilities 2013 On within 1 1 to 2 2 to 5 >5 demand year years years years Total 2013 2013 2013 2013 2013 2013 $000 $000 $000 $000 $000 $000 Other financial liabilities Suppliers - 623 - - - 623 Research projects - 941 - - - 941 Other payables - 250 19 5 - 274 Total - 1,814 19 5 - 1,838 The Corporation had no derivative financial liabilities in either 2014 or 2013.
Note 16H: Market risk The Corporation holds basic financial instruments that do not expose the Corporation to certain market risks. The Corporation’s market risk profile has not changed from 2012-13. The Corporation is not exposed to ‘currency risk’ or ‘other price risk’.
153 • Note 17: Financial Assets Reconciliation Notes 2014 2013 $’000 $’000 Total financial assets per balance sheet 17,437 15,795 Less: non-financial instrument components Commonwealth contributions receivable 6B 1,015 1,264 GST receivable 6B 315 299 Total non-financial instrument components 1,330 1,563
Total financial assets as per financial instruments note 16,107 14,232
154 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Note 18: Compensation and Debt Relief No compensation payments or statutory debt waivers were made during the reporting period (2012–13: Nil payments made).
155 • Note 19: Reporting of Outcomes The Corporation is structured to meet one outcome: Increased knowledge that fosters sustainable, productive and profitable new and existing rural industries and furthers understanding of national rural issues through research and development in government‑industry partnership.
Note 19A: Net cost of outcome delivery Outcome 1 Total 2014 2013 2014 2013 $000 $000 $000 $000 Departmental Expenses (22,617) (21,410) (22,617) (21,410) Own-source income 10,094 9,720 10,094 9,720 Net cost of outcome delivery (12,523) (11,690) (12,523) (11,690)
Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome.
156 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014
Appendices Content of Appendices
Appendix 1: Statutory levy and industry sub-accounts...... 160 Buffalo...... 160 Chicken Meat...... 161 Climate Change Research Strategy for Primary Industries...... 162 Deer...... 163 Fodder crops...... 164 Ginger...... 165 Goat Fibre...... 166 Honey Bee and Pollination...... 167 Hendra...... 168 Horse...... 169 Kangaroo...... 170 Pasture seeds...... 171 Queenbee...... 172 Ratite...... 173 Rice...... 174 Appendix 2: Legislative requirements...... 175 Appendix 3: RIRDC R&D Advisory Committees and Chairs at 30 June 2014...... 178 Appendix 4: Service charter...... 179 Appendix 5: RIRDC Selection Committee Report 2014...... 181 Appendix 6: Glossary...... 183 Appendix 7: Index of Annual Report requirements...... 186
159 Appendix 1: Statutory levy and industry sub-accounts • Buffalo 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 6,144 6,095 Statutory industry levies 9,876 3,924 Industry levy penalties 25 26 Other income 26,183 11,256 Total revenue 42,228 21,301 EXPENSES Research projects 32,424 15,500 Advisory committee expenses - - Program management fees 1,634 3,000 Other expenses 2,835 6,175 Total expenses 36,893 24,675 Surplus/(Deficit) 5,335 (3,374) Retained surplus at beginning of reporting period 62,703 66,077 Retained surplus at end of reporting period 68,038 62,703
160 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Chicken Meat 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 1,259,023 1,455,391 Statutory industry levies 1,162,869 1,120,267 Industry levy penalties 553 457 External contributions - - Other income 145,517 258,674 Total revenue 2,567,962 2,834,789 EXPENSES Research projects 2,223,004 2,670,190 Advisory committee expenses 31,020 37,674 External research management 123,688 138,519 Program management fees 130,547 42,000 Other expenses 44,586 57,121 Total expenses 2,552,845 2,945,504 Surplus/(Deficit) 15,117 (110,715) Retained surplus at beginning of reporting period 2,642,390 2,753,105 Retained surplus at end of reporting period 2,657,507 2,642,390
161 • Climate Change Research Strategy for Primary Industries 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 22,500 - External contributions 237,500 - Other income 558,132 - Total revenue 818,132 - EXPENSES Research projects - - Program management fees 227,128 - Other expenses 54,255 - Total expenses 281,383 - Surplus/(Deficit) 536,749 - Retained surplus at beginning of reporting period - - Retained surplus at end of reporting period 536,749 -
162 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Deer 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 9,362 8,927 Statutory industry levies 15,231 14,838 Industry levy penalties 4 12 Other income 14,323 19,159 Total revenue 38,920 42,936 EXPENSES Research projects 35,500 56,301 Advisory committee expenses - - External research management 1,035 - Program management fees 9,233 6,000 Other expenses 11,414 10,548 Total expenses 57,182 72,849 Surplus/(Deficit) (18,262) (29,913) Retained surplus at beginning of reporting period 347,832 377,745 Retained surplus at end of reporting period 329,570 347,832
163 • Fodder crops 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 175,000 175,000 External contributions 295,926 158,217 Other income 58,092 62,996 Total revenue 529,018 396,213 EXPENSES Research projects 410,388 405,335 Advisory committee expenses 67 - Program management fees 42,112 47,000 Other expenses 3,395 9,815 Total expenses 455,962 462,150 Surplus/(Deficit) 73,056 (65,937) Retained surplus at beginning of reporting period 580,928 646,865 Retained surplus at end of reporting period 653,984 580,928
164 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Ginger 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 136,177 71,722 Statutory industry levies 159,329 92,209 Industry levy penalties 675 268 Other income 11,290 2,341 Total revenue 307,471 166,540 EXPENSES Research projects 254,952 135,874 Advisory committee expenses 4,154 2,729 Program management fees 20,297 - Other expenses 10,561 16,546 Total expenses 289,964 155,149 Surplus/(Deficit) 17,507 11,391 Retained surplus at beginning of reporting period 31,095 19,704 Retained surplus at end of reporting period 48,602 31,095
165 • Goat Fibre 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 3,392 - Statutory industry levies 34,324 11,682 Industry levy penalties 69 37 Other income 3,036 2,398 Total revenue 40,821 14,117 EXPENSES Research projects 4,000 - Program management fees 2,766 - Other expenses 1,174 3,127 Total expenses 7,940 3,127 Surplus/(Deficit) 32,881 10,990 Retained surplus at beginning of reporting period 47,098 36,108 Retained surplus at end of reporting period 79,979 47,098
166 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Honey Bee and Pollination 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 434,979 385,834 Statutory industry levies 348,939 336,859 Industry levy penalties 644 470 External contributions 75,000 384,148 Other income 62,579 106,907 Total revenue 922,141 1,214,218 EXPENSES Research projects 833,072 767,340 Advisory committee expenses 40,020 52,015 Program management fees 108,618 84,000 Other expenses 70,478 89,727 Total expenses 1,052,188 993,082 Surplus/(Deficit) (130,047) 221,136 Retained surplus at beginning of reporting period 684,835 463,699 Retained surplus at end of reporting period 554,788 684,835
167 • Hendra 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 147,000 246,000 External contributions 333,334 520,833 Other income - - Total revenue 480,334 766,833 EXPENSES Research projects 465,496 890,665 Advisory committee expenses - - Program management fees 37,500 37,500 Other expenses - 2,563 Total expenses 502,996 930,728 Surplus/(Deficit) (22,662) (163,895) Retained surplus at beginning of reporting period 296,878 460,773 Retained surplus at end of reporting period 274,216 296,878
168 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Horse 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions - 100,000 External contributions 35,905 101,006 Other income 13,755 10,065 Total revenue 49,660 211,071 EXPENSES Research projects 214,952 287,472 Advisory committee expenses - - External research management 16,000 36,910 Program management fees 42,467 47,000 Other expenses 3,204 3,634 Total expenses 276,623 375,016 Surplus/(Deficit) (226,963) (163,945) Retained surplus at beginning of reporting period 231,219 395,164 Retained surplus at end of reporting period 4,256 231,219
169 • Kangaroo 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 33,216 73,409 Statutory industry levies 59,910 53,751 Industry levy penalties 119 348 External contributions - - Other income 12,481 84,406 Total revenue 105,726 211,914 EXPENSES Research projects 34,579 128,618 Advisory committee expenses - - External research management - - Program management fees 27,591 13,000 Other expenses 18,501 16,136 Total expenses 80,671 157,754 Surplus/(Deficit) 25,055 54,160 Retained surplus at beginning of reporting period 256,841 202,681 Retained surplus at end of reporting period 281,896 256,841
170 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Pasture seeds 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 142,932 164,811 Statutory industry levies 186,313 88,362 Industry levy penalties 957 74 External contributions - - Other income 95,850 85,876 Total revenue 426,052 339,123 EXPENSES Research projects 239,242 261,775 Advisory committee expenses 8,710 1,663 Program management fees 35,646 63,000 Other expenses 10,940 10,275 Total expenses 294,538 336,713 Surplus/(Deficit) 131,514 2,410 Retained surplus at beginning of reporting period 402,276 399,866 Retained surplus at end of reporting period 533,790 402,276
171 • Queenbee 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions - 1,671 Statutory industry levies 6,807 9,291 Industry levy penalties 132 103 Other income 1,586 1,875 Total revenue 8,525 12,940 EXPENSES Research projects - - Other expenses 9,349 13,040 Total expenses 9,349 13,040 Surplus/(Deficit) (824) (100) Retained surplus at beginning of reporting period 36,855 36,955 Retained surplus at end of reporting period 36,031 36,855
172 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 • Ratite 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions - - Other income 995 1,153 Total revenue 995 1,153 EXPENSES Research projects - - Other expenses - - Total expenses - - Surplus/(Deficit) 995 1,153 Retained surplus at beginning of reporting period 22,453 21,300 Retained surplus at end of reporting period 23,448 22,453
173 • Rice 2013–14 2012–13 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 1,357,887 1,276,778 Statutory industry levies 3,488,768 2,890,331 Industry levy penalties 144 - External contributions 250,000 387,500 Other income 393,689 319,067 Total revenue 5,490,488 4,873,676 EXPENSES Research projects 4,088,136 2,735,728 Advisory committee expenses 33,893 22,398 Program management fees 215,912 105,000 Other expenses 11,186 15,368 Total expenses 4,349,127 2,878,494 Surplus/(Deficit) 1,141,361 1,995,182 Retained surplus at beginning of reporting period 5,293,713 3,298,531 Retained surplus at end of reporting period 6,435,074 5,293,713
174 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Appendix 2: Legislative requirements
RIRDC’s annual report complies with the requirements of Australian Government’s legislation which are set out below. The Acts are: • the PIRD Act 1989 • the CAC Act 1997 • Commonwealth Authorities and Companies (Report of Operations) Orders 2005 • Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) ThePrimary Industries Research and Development Act 1989 (PIRD Act) Section 3: Objects The objects of this Act are to make provision for the funding and administration of research and development and marketing relating to primary industries with a view to: a. increasing the economic, environmental and social benefits to members of primary industries and to the community in general by improving the production, processing, storage, transport or marketing of the products of primary industries; b. achieving the sustainable use and sustainable management of natural resources; c. making more effective use of the resources and skills of the community in general and the scientific community in particular; d. supporting the development of scientific and technical capacity; e. developing the adoptive capacity of primary producers; and f. improving accountability for expenditure upon research and development activities in relation to primary industries Section 7: Representative organisations 1. The Minister may, by notice published in the Gazette, declare one or more specified organisations to be representative organisations in relation to an R&D Corporation or an R&D Council. 2. A declaration may be made in respect of an R&D Corporation or an R&D Council at any time after the making of regulations under section 8 or 92 establishing the Corporation or Council, even if the regulations concerned are not in force at that time. 3. The Minister must, in relation to each R&D Corporation and each R&D Council, declare at least one organisation to be a representative organisation. Section 9: Establishment of the Rural Industries Research and Development Corporation 1. The Rural Industries Research and Development Corporation is established. 2. The regulations may specify the primary industries or class of primary industries in respect of which the Rural Industries Research and Development Corporation is established. Section 11: Functions The functions of the RIRDC, deriving from section 11 of the PIRD Act are: (a) to investigate and evaluate the requirements for research and development in relation to the primary industry or class of primary industries in respect of which it was established and, on the basis of such investigation and evaluation: (i) to prepare an R&D plan under section 19; and
175 (ii) to review and revise the plan; and (b) to prepare an annual operational plan under section 25 for each financial year; and (c) to co‑ordinate or fund the carrying out of R&D activities that are consistent with the annual operational plan prepared by the Corporation and in force at the time; and (d) to: (i) monitor; and (ii) evaluate; and (iii) report to the Parliament, the Minister and its representative organisations on; R&D activities that are co‑ordinated or funded, wholly or partly, by the Corporation; and (da) to: (i) assess; and (ii) report to the Parliament, the Minister and its representative organisations on; the impact, on the primary industry or class of primary industries in respect of which the Corporation was established, of R&D activities that are co‑ordinated or funded, wholly or partly, by the Corporation; and (e) to disseminate and commercialise, and facilitate the dissemination, adoption and commercialisation of, the results of research and development in relation to the primary industry or class of primary industries in respect of which the Corporation was established; and (ea) if a levy attached to the Corporation has a marketing component—to carry out marketing activities for the benefit of the primary industry or class of primary industries in respect of which the Corporation was established; and (f) such other functions as are conferred on the Corporation by this Act or any other Act. Section 28: Annual report 1. The Directors must include in each report on an R&D Corporation prepared under section 9 of the CAC Act: a. particulars of: i. the R&D activities that it co-ordinated or funded, wholly or partly, during the period; and ii. the amount that it spent during the period in relation to each of those activities; and (ac) which (if any) of those activities related to ecologically sustainable development; and iv. revisions of its R&D plan or annual operational plan approved by the Minister during the period; and v. the entering into of agreements under sections 13 and 14 during the period and its activities during the period in relation to agreements entered into under that section during or prior to the period; and vi. its activities during the period in relation to applying for patents for inventions, commercially exploiting patented inventions and granting licences under patented inventions; and vii. the activities of any companies in which the Corporation has an interest; and
176 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 viii. any activities relating to the formation of a company; and ix. significant acquisitions and dispositions of real property by it during the period; and b. an assessment of the extent to which its operations during the period have: i. achieved its objectives as stated in its R&D plan; and ii. implemented the annual operational plan applicable to the period; and c. an assessment of the extent to which the Corporation has, during the period, contributed to the attainment of the objects of this Act as set out in section 3; and d. in respect of the grain industry or such other primary industry or class of primary industries as is prescribed in the regulations, particulars of sources and expenditure of funds, including: i. commodity, cross commodity and regional classifications; and ii. funds derived from transfer of: (A) assets, debts, liabilities and obligations under section 144; and (B) levies attached to Research Funds under the Rural Industries Research Act 1985 under section 151 of this Act. TheCommonwealth Authorities and Companies Act 1997 The CAC Act is the main legislation that specifies content and standards for presentation of statutory authorities’ annual reports for parliamentary scrutiny. Section 9 of the CAC Act requires RIRDC Directors to prepare an annual report in accordance with schedule 1 each financial year and to give it to the responsible Minister by 15 October. Clause 10 of the CAC Orders specifies that the report of operations and future prospects (one of three main elements of the annual report, the others being financial statements and a report by the Auditor-General) to include, among other things*: • a review of how RIRDC has performed during the financial year in relation to its statutory objects and functions, its R&D plan and its principal outputs and contribution to outcomes; • factors influencing its performance over the financial year and in the future; • significant events; • operational and financial results, including principal outputs, major investing and financing; activities and key financial and non-financial performance indicators; • significant changes in RIRDC’s state of affairs or principal activities; • developments since the end of the financial year; and • matters required to be included by the PIRD Act and any other legislation
*This is an edited version of clauses 8–18 of the CAC (Report of Operation) Orders 2005
177 Appendix 3: RIRDC R&D Advisory Committees and Chairs at 30 June 2014 • Chicken Meat Mr Gary Sansom • Essential Oils Mr Richard Davis • Fodder Crops Mr Peter Phillipsen • Ginger Mr Shane Templeton • Honey Bee Dr Michael Hornitzky • Horses Dr John McCaffrey • New and Developing Animal Industries Mr Paul Donnelly • New and Developing Plant Industries Dr Tony Hamilton • Pasture Seeds Mr Chris Martin • Pollination Mr Gerald Martin • Primary Industries Health and Safety Partnership Mr Gordon Gregory • Rice Mr Ian Mason • Rare Natural Animal Fibres Ms Fiona Vanderbeek • Tea Tree Oil Mrs Patricia Bolster • Wildflowers Mr Mark Irwin
178 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Appendix 4: Service charter
Enabling legislation and the Board RIRDC’s enabling legislation is the Primary Industries Research and Development Act 1989 (the PIRD Act 1989). The RIRDC Board is accountable to the Parliament of Australia through the Minister for Agriculture. It: • sets strategic direction and establishes policies for the Corporation; and • oversees operational and functional performance against budget and other key performance indicators on behalf of stakeholders. Core business To facilitate a more profitable, dynamic and sustainable rural sector by maximising the knowledge outcomes from our R&D investments for Australian industries and government in: • New and emerging industries. • Established rural industries. • National rural issues. Core principles in RIRDC’s approach to its mandate are: • Collaboration—RIRDC consults widely with our industry and government stakeholders to determine investment strategies and priorities and seeks strong collaborative arrangements with other funding partners and research providers where this can enhance outcomes. • Facilitation—RIRDC facilitates more effective use of community and scientific expertise in the creation of new knowledge and its adoption. • Innovation—RIRDC invests in innovative solutions to the problems and constraints facing its key stakeholders. Stakeholders
• The Australian Government on behalf of rural industries and taxpayers. • Industry funders. • The Australian community. Primary clients
• For RIRDC related industries, all participants in the marketing chain (producers, processors, distributors and consumers). • On RIRDC’s strategic cross-sectoral program, the National Farmers’ Federation on behalf of all rural industries.
179 Industry consultations Communications channels between RIRDC and rural industries meet two essential functions—accountability and bringing industry influence to bear on the research agenda. At the peak industry level, the Corporation is accountable to: • National Farmers’ Federation. • Australian Chicken Meat Federation. All of the research programs have reference steering committees with stakeholder membership. Reporting to stakeholders There are four key accountability documents for stakeholders: • A five-year Corporate Plan that sets out strategies, directions and performance indicators for the Corporation. • Five-year R&D plans for each industry program within new and emerging industries, established rural industries and national rural issues. • An annual operational plan that sets out yearly objectives to give effect to the five ‑year Corporate Plan, the five-year industry plans, the annual budget and annual research priorities. • The annual report, which sets out achievements against objectives, budgets and administration costs.
180 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Appendix 5: RIRDC Selection Committee Report 2014
Mr RG Granger Presiding Member Rural Industries Research and Development Corporation Selection Committee 6 Billeroy Court The Gap Qld 4061
The Hon. Barnaby Joyce MP Minister for Agriculture Parliament House CANBERRA ACT 2600
Dear Minister
Rural Industries Research and Development Corporation Selection Committee Report 2014
This report summarises the activities of the Rural Industries Research and Development Corporation (RIRDC) Selection Committee from 6 March 2014 to the end June of 2014, pursuant to the corporation’s enabling legislation, the Primary Industries Research and Development Act 1989 (PIRD Act), in relation to submission of its nominations for appointment to for the RIRDC board your consideration, along with a list of other persons the Selection Committee (SC) also considers suitable for appointment.
Establishment of Selection Committee
The SC was established under RD the PI Act for the selecting purpose of and nominating director candidates to you to replace the current director positions which were due to expire on 30 June 2014.
I was appointed under section 122 of the PIRD as Act the presiding member (PM) on 6 March 2014, for the period ending 31 December 2016. The SC comprised PM me as and four members nominated by me, following consultation with RIRDC’s two representative industry organisations—National Farmers’ Federation (NFF) and the Australian Chicken Meat Federation (ACMF). Ms Christine Hawkins fulfilled the role of an independent member. Members appointed by you on 7 May 2014 fo r the period ending 31 December 2016 were: − Mr Gary Sansom, Qld (ACMF nominee) − Mr Alan Wilson, Vic (ACMF nominee) − Ms Robbie Sefton, NSW (NFF nominee) − Ms Christine Hawkins, NSW (independent nominee).
Selection process The SC advertised the seven RIRDC board positions in the national press and . industry outlets In particular, advertisements were in placed the Australian Financial Review on 28 March 2014 and the Weekend Australian on 29 March 2014.
Applications closed on 17 April 2014. The Department of Agriculture listed the vacancies on the AusGovBoards and Women on Boards websites. The advertisement was also emailed to all registrants on the department’s Balance database.
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181 A total of 294 applications were received, of which 187 (63.6 per cent) were males and 107 (36.4 per cent) were female applicants.
Applications were considered by the SC and a meeting was convened in Sydney on 14 May 2014 to shortlist suitable candidates for interview. In developing the shortlist, the SC was mindful that all persons considered would need to be suitably qualified for appointment with expertise in one or more of the fields listed in section 131 of the PIRD Act.
In developing the top seven nominations and a list of other persons also considered suitable for appointment, he t SC had regard to the PIRD Act requirement to reflect diversity of expertise, experience and gender and experience in board matters.
Interviews were conducted on 20 and in 22 May 2014 Sydney.
The SC made its final decisions taking into account the collective balance of expertise and experience in board affairs required by the PIRD Act. Following referee checks, even s nominations and the names of three other persons also considered suitable for appointment, were submitted to you on 27 May 2014.
As at the 30 June 2014, the selection process was continuing.
Expenses as at 30 June 2014
Item $ Selection Committee’s travel and expenses 2857.00 Applicants’ travel and expenses 4316.00 Advertising 11,791.00 Presiding Member’s fees 3317.00 Secretariat costs (supporting the Selection Committee) 6839.00
TOTAL (INCLUDING GST) 29,120.00
RG Granger Presiding Member RIRDC Selection Committee 7 October 2014
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182 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Appendix 6: Glossary
AASB Australian Accounting Standards Board ABARES Australian Bureau of Agricultural and Resource Economics and Sciences ABC Australian Broadcasting Corporation ACMF Australian Chicken Meat Federation Inc. AECL Australian Egg Corporation Limited AFIA Australian Fodder Industry Association AME apparent metabolisable energy AOP annual operational plan APL Australian Pork Limited APVMA Australian Pesticides and Veterinary Medicines Authority ASX Australian Securities Exchange ATTIA Australian Tea Tree Industry Association AWI Australian Wool Innovation B/C benefit–cost CAC Act Commonwealth Authorities and Companies Act 1997 CIE Centre for International Economics COAG Council of Australian Governments COP code of practice CQ Central Queensland CRC cooperative research centre CRDC Cotton Research and Development Corporation CRRDC Council of Rural Research and Development Corporations CSIRO Commonwealth Scientific and Industrial Research Organisation CSS Commonwealth Superannuation Scheme DA Dairy Australia DNA deoxyribonucleic acid EFA Equestrian Federation of Australia EI equine influenza EMS environmental management systems EOPAA Essential Oil Producers Association of Australia ESD Ecologically Sustainable Development FBT fringe benefits tax FMOs Finance Minister’s Orders FOI Act Freedom of Information Act 1982 FRDC Fisheries Research and Development Corporation GRDC Grains Research and Development Corporation GST goods and services tax GVP gross value of production GWRDC Grape and Wine Research and Development Corporation HAL Horticulture Australia Limited IBDV infectious bursal disease virus
183 ICP Indigenous intellectual and cultural property ICT information and communication technology IEA International Energy Agency IM integrated management IP intellectual property IRR internal rate of return LCA life cycle assessment LCI life cycle inventory LOTE language other than English MCV managing climate variability MDBA Murray-Darling Basin Authority MLA Meat and Livestock Australia NFF National Farmers’ Federation NIR near infrared spectroscopy NLA National Library of Australia NPV net present value NRM natural resource management NSW DPI New South Wales Department of Primary Industries OAIC Office of the Australian Information Commissioner OECD Organisation for Economic Cooperation and Development OHS Occupational Health and Safety PISC Primary Industries Standing Committee RDCs Research and Development Corporations RGA RiceGrowers’ Association RIRDC Rural Industries Research and Development Corporation SME Small and Medium Enterprise SRA Sugar Research Australia
184 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 RIRDC program abbreviations
BBE Bioenergy, Bioproducts and Energy CME Chicken Meat EOI Essential Oils and Plant Extracts DYN Dynamic Rural Communities FCR Fodder Crops GC Global Challenges HBE Honey bee HOR Horse HZS Horizon Scholarship IIP Investing in People NAP New Animal Products NPP New Plant Products NRI National Rural Issues POL Pollination Program PSE Pasture Seeds PIHSP Primary Industries Health and Safety Partnership RIC Rice RNF Rare Natural Animal Fibres SCH Scholarships TTO Tea Tree Oil WNP Wildflowers and Native Plants
185 Appendix 7: Index of Annual Report requirements
Ref. Description Requirement Page No. 8(3) & A.4 Letter of transmittal Mandatory 5 A.5 Table of contents Mandatory 3 A.5 Index Mandatory 190 A.5 Glossary Mandatory 183 A.5 Contact officer(s) Mandatory 192 A.5 Internet home page address and Internet address for report Mandatory 2 9 Review by Secretary 9(1) Review by Chairperson Mandatory 11 9(2) Summary of significant issues and development Suggested 11; 94 9(2) Overview of department's performance and financial results Suggested 25-27 9(2) Outlook for following year Suggested 11; 45-85 9(3) Significant issues and development - portfolio Portfolio 45-85; departments – 86-106 suggested 10 Departmental Overview 10(1) Role and functions Mandatory 7 10(1) Organisational structure Mandatory 9 10(1) Outcome and program structure Mandatory 10; 29 10(2) Where outcome and program structures differ from Mandatory 15 PB Statements/PAES or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements), details of variation and reasons for change 10(3) Portfolio structure Portfolio 29 departments – mandatory 11 Report on Performance 11(1) Review on performance during the year in relation to Mandatory 45-85 programs and contribution to outcomes 11(2) Actual performance in relation to deliverables and KPIs set Mandatory 15 out in PB Statements/PAES or other portfolio statements 11(2) Where performance targets differ from the PBS/ Mandatory 15; 45-85 PAES, details of both former and new targets, and reasons for the change 11(2) Narrative discussion and analysis of performance Mandatory 11; 63-23; 45-85 11(3) Trend information Mandatory 45-85 11(3) Significant changes in nature of principal functions/services Suggested 11; 15 11(3) Performance of purchaser/provider arrangements If applicable, N/A suggested 11(3) Factors, events or trends influencing Suggested 11; 45-85 departmental performance 11(3) Contribution of risk management in achieving objectives Suggested 45-85; 93 11(4) Social inclusion outcomes If applicable; 98 mandatory
186 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 Ref. Description Requirement Page No. 11(5) Performance against service charter customer service If applicable; 104 standards, complaints data, and the department’s mandatory response to complaints 12 Discussion and analysis of the department’s Mandatory 110-111 financial performance 11(7) Discussion of any significant changes from the prior year, Mandatory 110-111 from budget or anticipated to have a significant impact on future operations. 11(8) Agency resource statement and summary resource Mandatory 25-27; tables by outcomes 113-117 12 Management and Accountability Corporate Governance 12(1) Agency heads are required to certify that their agency Mandatory 93 comply with the Commonwealth Fraud Control Guidelines. 12(2) Statement of the main corporate governance Mandatory 86-106 practices in place 12(3) Names of the senior executive and their responsibilities Suggested 195 12(3) Senior management committees and their roles Suggested 178 12(3) Corporate and operational planning and associated Suggested 15; 41-42; performance reporting and review 45-85 12(3) Approach adopted to identifying areas of significant Suggested 93 financial or operational risk 12(3) Policy and practices on the establishment and maintenance Suggested 87-94 of appropriate ethical standards 12(3) How nature and amount of remuneration for SES Suggested 89 officers is determined External Scrutiny 12(4) Significant developments in external scrutiny Mandatory 94 12(4) Judicial decisions and decisions of administrative tribunals Mandatory 94 12(4) Reports by the Auditor-General, a Parliamentary Mandatory 94 Committee or the Commonwealth Ombudsman Management of Human Resources 12(5) Assessment of effectiveness in managing and developing Mandatory 98 human resources to achieve departmental objectives 12(6) Workforce planning, staff turnover and retention Suggested 9; 98 12(6) Impact and features of enterprise or collective agreements, Suggested N/A individual flexibility arrangements (IFAs), determinations, common law contracts and AWAs 12(6) Training and development undertaken and its impact Suggested N/A 12(6) Work health and safety performance Suggested 98-99 12(6) Productivity gains Suggested N/A 12(7) Statistics on staffing Mandatory 9; 98 12(8) Enterprise or collective agreements, IFAs, determinations, Mandatory 98 common law contracts and AWAs 12(9) & Performance pay Mandatory 147 (B) 12(10)- Assets management If applicable; 110 12(11) Assessment of effectiveness of assets management mandatory
187 Ref. Description Requirement Page No. 12(12) Purchasing Mandatory 110 Assessment of purchasing against core policies and principles 12(13)- Consultants Mandatory 92 (24) The annual report must include a summary statement detailing the number of new consultancy services contracts let during the year; the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST); the number of ongoing consultancy contracts that were active in the reporting year; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST). The annual report must include a statement noting that information on contracts and consultancies is available through the AusTender website. 12(25) Australian National Audit Office Access Clauses Mandatory 110 Absence of provisions in contracts allowing access by the Auditor-General 12(26) Exempt contracts Mandatory N/A Contracts exempt from the AusTender 13 Financial Statements Mandatory 109-174 Other Mandatory Information 14(1) & Work health and safety (Schedule 2, Part 4 of the Work Mandatory 98-99 C.1 Health and Safety Act 2011) 14(1) & Advertising and Market Research (Section 311A of the Mandatory N/A C.2 Commonwealth Electoral Act 1918) and statement on advertising campaigns 14(1) & Ecologically sustainable development and environmental Mandatory 99-100 C.3 performance (Section 516A of the Environment Protection and Biodiversity Conservation Act 1999) 14(1) Compliance with the agency’s obligations under the Carer If applicable; N/A Recognition Act 2010 mandatory 14(2) & Grant programs Mandatory N/A D.1 14(3) & Disability reporting – explicit and transparent reference Mandatory N/A D.2 to agency level information available through other reporting mechanisms 14(4) & Information Publication Scheme statement Mandatory 106 D.3 14(5) & Spatial reporting – expenditure by program between If applicable; N/A D.4 regional and non regional Australia mandatory 14(6) Correction of material errors in previous annual report If applicable; N/A mandatory E Agency Resource Statements and Resources for Outcomes Mandatory N/A F List of Requirements Mandatory 186
188 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 189 Index Index
A Board meetings, 89 Aboriginal and Torres Strait Islander Board remuneration, 89 R&D Program, 83 Board terms, 87 Accountability, 87–89, 175, 179 C Advisory Committees, 178 CAC Act, 90, 91, 94, 98, 131, 175, 176, 177, 181 Alpaca, 71 Certification, 8 Annual Operational Plan, 7, 15, 35, 41, 59, 63, 64, 69, 71, 75, 77, 79, 91, 94, 104, 105 Chair’s report, 11 Appendices, 158 Chicken meat, 13, 52, 53, 54, 55 Audit Committee, 88 Climate change, 12, 31, 32, 33, 37, 41, 42, 49, 72, 100, 102 Auditor's report, 110–111 Climate Change Research Strategy for Primary Australian Government Cost Recovery Industries (CCRSPI), 32, 162 Guidelines, 98 Climate variability, 42 Australian Government Foreign Exchange Risk Management Guidelines, 98 Cocoa, 72, 75 Australian Government Protective Security Coffee, 72, 73 Policy Framework, 98 Collaboration, 32–33, 179 Australian Government Research Priorities, 41 D Australian Pesticides and Veterinary Medicines Dates, 72–74 Authority, 59, 181 Deliverables, 7 Australian Rural Leadership Foundation, 84, 97, 146 Department of Agriculture, 5, 32, 33, 46, 94, 131, 134 Australian Rural Leadership Program, 66, 67, 84, 97 Director’s statement, 112 Dynamic Rural Communities, 80, 83 B E Barnaby Joyce, 7 Benefit-cost analyses, 35 Enabling legislation, 7 Bioenergy, Bioproducts and Energy, 81 Environment Protection and Biodiversity Conservation Act 1999, 99, 175 Biosecurity, 42 Equity, 114, 115, 125 Board Essential Oils and Plant Extracts, 51, appointments, 87 68–69, 103, 183 charter, 87 Ethical standards, 88, 185 committees, 88 Evaluation, 15, 34–35, 38, 56, 63, 79, 89, 92, 175 composition, 87 Expenditure, 24–27 Directors, 94 F Alex Campbell, 95 Fibre, 33, 47, 166 Craig Burns, 97 Financial and operational summary, 25 Daniela Stehlik, 95 Financial and performance statements, 109 Len Stephens, 96 Balance sheet, 114 Merilyn Sleigh, 95 Cash flow statement, 116 Michael Guerin, 97 Index to the notes to the financial Roseanne Healy, 96 statements, 119 Sam Archer, 96 Schedule of commitments, 117 Board expertise, 88
191 Statement of changes in equity, 115 N Statement of comprehensive income, 113 National Farmers Federation (NFF), 87 Financial snapshot, 25 National Rural Issues, 45, 46, 48, 183 Five-year R&D plans, 7, 15, 41 Native Foods, 69, 72–75, 85 Fodder Crops, 51, 56–57 New and Developing Animal Industries, Fraud control, 89, 93 51, 70–71 Freedom of information, 104–106 New Plant and Animal Opportunities Feasibility, Funding allocations, 15, 41–42 45 NSW DPI, 65, 73 G Ginger, 69, 73, 165, 178 O Global Challenges, Organisational Structure, 9 15, 36, 37, 38, 45, 46, 48, 101, 183 P Glossary, 183–184 Goal 1: Promote leadership and innovation in the Pasture Seeds, 13, 62–64 rural sector, 45 Performance against the Australian Goal 2: Increase profit and productivity in Government’s research priorities, 41 rural industries, 51 Performance review, 89 Goal 3: Enhance sustainability across the Performance snapshot, 15 rural sector, 80 Pollination program, 51, 58–59 Governance, 87 Portfolio budget statements, 15 Post 2013–14 events, 94 H Poultry CRC, 33 Hendra Virus, 32, 51, 60–61 Primary clients, 179 Heywire, 84 Primary Industries Health and Safety Honeybee, 33, 51, 59, 167, 178, 183 Partnership, 32, 80, 82, 178 Horizon Scholarship, 32, 66, 67, 84 Primary Industries Research and Development Horse, 51, 60–61, 169 Act, 91, 175 Horticulture Australia, 32, 33, 58 R I R&D outputs and outcomes for 2012-13, 44 Indemnities and insurances, 93 Related entity transactions, 91 Information Publication Scheme, 106 Research Agreement, 91 Innovation, 42, 45, 179 Revenues, 26, 121, 127, 160–174, 161, 162, 163, Intellectual Property, 91 164, 165, 166, 167, 168, 169, 170, 171, 172, Investing in People, 80, 83, 84 173, 174 Rice, 13, 50, 65, 65–67, 66, 67, 73, 88, 101, 102 J Richard Colbeck, 5 Joel Fitzgibbon, 7 RIRDC’s portfolio structure, 29 Judicial decisions, 94 RIRDC’s purpose, 7 K Risk management, 87, 89, 93, 97 Rural Women’s Award, 32, 84 Key Achievements, 16 Key performance indicators, 7, 15 S L Scholarships, 32, 54, 66, 67, 84, 96, 97 Service charter, 179 Life-cycle, 51 Significant events, 94 M Staff, 92, 98–99, 99, 149 Managing Director, 87, 88, 89, 91, 93, 95, 96, 97, Stakeholders, 7, 8, 13, 15, 31, 35, 45, 46, 48, 55, 98, 146 59, 62, 80, 83, 87, 97, 98, 104, 179, 180 Ministerial directions, 94 Myrtle rust, 33, 68–69, 74, 76, 77, 78, 79, 85, 103
192 RURAL INDUSTRIES R&D CORPORATION Annual Report 2013-2014 T Tea Tree Oil, 69, 76, 76–77, 77, 103 Thoroughbred, 60–61 Tropical fruits, 72–75 Truffles, 72–75 V Varroa mites, 58, 59 W Wildflowers, 15, 36, 37, 38, 51, 78, 78–79, 103, 178 Work Health and Safety Act 2011, 98
193 Corporate Directory Chair Ph. 02 6271 4100 Professor Daniela Stehlik
Managing Director Ph. 02 6271 4111 Craig Burns
General Manager, Ph. 02 6271 4150 Corporate Christine Quick
Senior Program Manager, Ph. 02 6271 4128 Animal Industries Dave Alden
Senior Program Manager, Ph. 02 6271 4138 Plant Industries John de Majnik
Manager, Ph. 02 6271 4175 Communications and Public Affairs Damon Whittock
Finance Manager Ph. 02 6271 4158 Peter Waddell
195 Phone: 02 6271 4100 Fax: 02 6271 4199 Postal Address: PO Box 4776, Kingston ACT 2604 Street Address: Level 2, 15 National Circuit, Barton ACT 2600
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