The Australian Wine Research Institute 2008 Annual Report Board Members The Company The AWRI’s laboratories and offices are located within an internationally renowned research Mr R.E. Day, BAgSc, BAppSc(Wine Science) The Australian Wine Research Institute Ltd was cluster on the Waite Precinct at Urrbrae in the Chairman–Elected a member under Clause incorporated on 27 April 1955. It is a company Adelaide foothills, on land leased from The 25.2(d) of the Constitution limited by guarantee that does not have a University of Adelaide. Construction is well share capital. underway for AWRI’s new home (to be com- Mr J.F. Brayne, BAppSc(Wine Science) pleted in October 2008) within the Wine Innova- Elected a member under Clause 25.2(d) The Constitution of The Australian Wine tion Cluster (WIC) central building, which will of the Constitution (until 12 November 2007) Research Institute Ltd (AWRI) sets out in broad also be based on the Waite Precinct. In this new terms the aims of the AWRI. In 2006, the AWRI building, AWRI will be collocated with The Mr P.D. Conroy, LLB(Hons), BCom implemented its ten-year business plan University of Adelaide and the South Australian Elected a member under Clause 25.2(c) Towards 2015, and stated its purpose, vision, Research and Development Institute. The Wine of the Constitution mission and values: Innovation Cluster includes three buildings which houses the other members of the WIC concept: Mr P.J. Dawson, BSc, BAppSc(Wine Science) Purpose CSIRO Plant Industry and Provisor Pty Ltd. Elected a member under Clause 25.2(d) of the To contribute substantially in a measurable Constitution way to the ongoing success of the Australian Along with the WIC parties mentioned, the grape and wine sector AWRI is clustered with the following research Mr T.W.B. James, AssDip(Wine Prod) and teaching organisations: Australian Centre Elected a member under Clause 25.2(d) Vision for Plant Functional Genomics (APFG), Australian of the Constitution To deliver high value to the Australian grape Genome Research Facility (AGFR), Australian and wine sector through world-class research Grain Technologies (AGT), Australian Wheat Mr G.R. Linton, BAppSc(AppChem), and integrated solutions and to provide thought Management, BiometricsSA, three divisions of GradDip(SysAnal) leadership to the research activities of the CSIRO, Department of Water, Land and Elected a member under Clause 25.2(d) Australian wine sector Biodiversity Conservation, Primary Industries of the Constitution and Resources South Australia (PIRSA), and Mission The University of Adelaide’s School of Science Mr B.M. McKinnon, BAgSc (Oenology) (Hons) To underpin our world-class research and (which includes the Schools of Agriculture and Elected a member under Clause 25.2(d) of the integrated solutions with: Wine, and Earth and Environmental Sciences). Constitution (from 1 January 2008) • a tenacious pursuit of understanding; Mr S.B. Millar, CPA, DipMgmt Elected a member under Clause 25.2(d) • the development of a unique, extensive Registered office of the Constitution (until 1 November 2007) and usable knowledge base; and Waite Road, Urrbrae, SA 5064 Ms J.S. O’Connor, BEd (P.E.) • a focus on contributing substantially to Elected a member under Clause 25.2 (c) stakeholders achieving their needs Postal Address: of the Constitution PO Box 197, Glen Osmond, SA 5064 AWRI’s values provide guidance in how it will Professor I.S. Pretorius, BSc(Hons), MSc, PhD deliver on its mission. These values are: Telephone: (08) 83 03 66 00 Ex officio under Clause 25.2(b) of the Fax: (08) 83 03 66 01 Constitution as Managing Director of the AWRI • scientific integrity and excellence; Internet: www.awri.com.au Mr M.R. Watson, BEc, MBA • a culture of delivering results; ABN: 83 007 558 296 Elected a member under Clause 25.2 (c) of the Constitution (from 24 June 2008) • internally and externally collaborative; Mr S.J. Webber, BAppSc(Wine Science) • accountability and transparency; and Elected a member under Clauses 25.2 (d) and 27.1 of the Constitution (from 6 May 2008) • focused on the Australian wine sector and industry driven Chairman's Report By the time this report is published, two of the During the year, a number of significant mile- of a new long-term funding agreement, the year’s most important events are likely to have stones were passed. The AWRI published its tacit understanding that the GWRDC cannot unfolded. The AWRI anticipates occupying its , staff paper and it held its th Board allocate funds it does not have, has meant that new home in the Wine Innovation Cluster in meeting in May. the AWRI has had to become a frugal tailor October with the official opening of the and cut its cloth accordingly. This has meant building scheduled for November . Perhaps of more significance to the future of some delays in staff appointments and some During the past year, a great deal of preparatory the AWRI was the revamping of the constitution creative redeployment of existing staff. Our staff work has been done in anticipation of a shift to prepare for the next era. This was the culmi- members continue to push up their outputs. with as little disruption to the AWRI’s outputs as nation of a lengthy process involving careful Information requests responded to were possible. Mark Braybrook has shouldered much and extensive deliberation by board members more than the previous year and staff members of the load in smoothing out the details, whilst with the inputs of constitutional experts. The gaves oral presentations, conducted CEO, Professor Sakkie Pretorius, has been end result is a constitution which enhances workshops and presented lectures. These instrumental in ensuring that the ‘bang for our the AWRI’s ability to deliver outcomes for the numbers reflect a general belief by the Board buck’ in our new facilities are second to none. whole Australian grape and wine sector. Key and the staff that the past extension activities Our former CEO, Professor Peter Høj, should be features of the re-written constitution are: of the AWRI were in need of augmentation to recognised as the one who played the leading increase the reach and effectiveness of the role in igniting the vision of the Government • instigation of a new category system for the work undertaken by the AWRI. of South Australia to make a major investment election of Directors based on the small, in the concept of the cluster, and its manifesta- medium and large category system adopted As I step down from the AWRI Board at the end tion into a state-of-the-art building. by WFA (for the purposes of AWRI’s Consti- of , it is pleasing to reflect on the over- tution these categories have been defined whelming support and assistance given by a The second major event is the publication of as small [<, tonnes], medium [,- very competent and balanced Board and the the sequencing of the genone of a wine yeast , tonnes] and large [>, tonnes]); amazing energy and dedication shown by our for the first time in the world. Beyond the brief two CEOs during my Chairmanship: Professor front page news that this may generate lies the • a broad skills profile expected in any Peter Høj and our current CEO, Professor bigger story. The use of modern gene deletion levy-payer elected Director; Sakkie Pretorius. technology, along with the sequencing now in train of a number of other yeast strains with • removal of ‘Representative Directors’ in favour Finally, a sincere thank you to our staff, who well known performance characteristics, will of levy-payer elected Directors and up to make all the outputs happen. I was once forced step up the linking of genetic performance four ‘Special Qualification Directors’ elected to resort to comparing the AWRI to an Opera characteristics to enable new and better strains at the discretion of the Members of the AWRI; Trust in order to explain its financial charac- to be bred by conventional (non-GMO) methods. teristics. Inside this analogy, our staff perform • a requirement that no more than one Director their scientific arias with the pride and perfection The other key scientific highlights of the year can be appointed from any single entity of renowned artists. With the continued support are reported in detail at the beginning of this under the levy-payer election process; and from Australian grape and wine producers they report. Leaving the obvious merit of some of are well placed to continue to deliver. these to one side, it is interesting to drill down • a new requirement that Directors must “… into the detail of a few preliminary findings to take into account the legitimate interests of probe their far reaching possibilities. both Wine Grapes Levy Payers, Grape Research Levy Payers and other key stakeholders…”. From preliminary findings, the revelation that relatively low levels of nitrogen in the vineyard The AWRI continues to reach out both nationally Robin Day reduce the chloride levels in grapes and resultant and globally. National and international collab- Chairman wine has wide reaching ramifications, as does the orations are continually being developed with confirmation that tannin levels are augmented a view to enhancing the scope and quality of under low nitrogen regimes. The confirmation the AWRI’s outputs. This year, the first consumer that nitrogen supplementation to red musts preference study for Chinese consumers of has implications for fruit characteristics and, Australian wine was conducted by our therefore, style choice by winemakers is equally sensory team. as fascinating. Preliminary early studies on changes to the composition of volatile thiols The recent downturn in levy revenue due to the in white wines suggest that the rest of the recent short vintages has resulted in funding iceberg remains to be uncovered.