Statement of Corporate Intent 2019
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G36 Statement of Corporate Intent 2019/2020 – 2023/2024 Driving prosperity by transforming agriculture Financial Statements 01 Driving prosperity by transforming agriculture Chair and Chief Executive overview 02 Our strategic direction 04 The AgResearch Science Plan 06 New Zealand Bioeconomy in the Digital Age 08 Strategic science investment funding 10 Protected, enhanced, and sustained natural resources 12 Prosperous land-based enterprises 18 Added-value foods and bio-based products 26 Integrated facilities for research excellence 32 Māori Agribusiness 34 Vision Mātauranga 36 Our people 38 Aligned to government priorities 40 Sustainable future roadmap 42 Financials 44 Financial results 46 Non-financial targets 48 Miscellaneous items 50 Chair and Chief Executive overview AgResearch, through innovative science and research, is leading the way for the future of land-based food production in New Zealand. Despite primary industry export performance sought from our refreshed Science Plan is to exceeding expectations in the 2018/19 year, the increase the value of New Zealand’s exports agricultural sector is facing some considerable while enhancing our environment and challenges as it looks to the future. The effects underpinning our regional prosperity. This of climate and environmental change, rapid is supported by the two key overarching and advances in technology and food production integrated areas of science focus; creating systems, and evolving consumer preferences the smartest and most sustainable land use and expectations have meant a significant shift systems, and the most sought-after high value in what is needed for New Zealand’s agricultural- food and bio-based products. The Science Plan based economy to continue to flourish. was developed with the knowledge that future food production systems will be significantly Innovative science and thought leadership are different from today, and with recognition essential to support this shift. New Zealand that we must develop new and smarter will need to be at the edge of innovation and collaborations, with disciplines and partners technology for primary industries to succeed in outside of our traditional networks to create the future. AgResearch, as the Crown Research effective transdisciplinary teams. Together, Institute (CRI) primarily responsible for engaging the Science Plan and the SCI outline how pastoral, agri-food, agri-technology, and AgResearch will deliver our strategic goals, and environmental stakeholders with thought-leading how this leverages domestic and international scientific outcomes, is committed to creating collaboration. new opportunities and providing options to respond successfully to the challenges and In amongst the many and varied world-class opportunities faced by the sector. science programmes across our research areas currently under way, we have recently embarked This Statement of Corporate Intent (SCI) on a new Ministry of Business, Innovation sets out the framework for the research we and Employment (MBIE)-funded platform of will undertake in the coming five-year period research – the New Zealand Bioeconomy in 2019/20 - 2023/24. As in past years, this the Digital Age. The platform is an excellent framework has been created through close opportunity to put our refreshed Science Plan engagement with our stakeholders and national in action. It is designed to enable the transition and international collaborators. to diversified landscapes, to utilise digital technologies and data for land use design and AgResearch is well-placed to support the decision-making, and to connect food and bio- government’s science and innovation priority based product attributes across the value chain. areas. These areas include transitioning New Zealand’s primary industries into higher value A number of use cases are under way to products and exports, understanding and establish a ‘proof of concept’ that digital mitigating the effects of climate change, and technologies can and will transform New supporting the transition to a low emissions Zealand’s pastoral land-based sector. These economy. There is a clear role for our science include interdisciplinary approaches for to assist in these areas and in doing so we converting data to information at different support thriving and sustainable regions. scales, simulation and visualisation tools to accelerate adoption change, novel methods for To be successful, our science must be bold, linking food and bio-based product attributes agile, and future-focused in nature. The impact across the value chain, Māori agribusiness land Chair and Chief Executive overview Chair and Chief Executive 02 information, and new business and governance beyond is the design and construction of an models for increasing trust and value equity in AgResearch-led facility, which will be the first digitised value chains. stage of a wider education, research, and innovation precinct in the area. Our vision for this work is that the power of digital technologies is harnessed to enable the Whilst significant progress is being made transformation of New Zealand agriculture with key strategic initiatives, AgResearch and food production systems. We are excited continues to operate in a capital constrained about the scientific outcomes this platform will environment. As a result fiscal responsibility demonstrate, and the resulting advancements remains a critical focus and AgResearch will for the sector in the years ahead. continue to seek innovative approaches to delivering the best possible facilities and Our capital investment programme supports environments to underpin our enduring future the embedding of our Science Plan, and the new value for New Zealand. ways of working this requires. This programme will see new fit-for-purpose, technologically The next five years are critical for AgResearch advanced facilities in Palmerston North and as we support the sector through major Lincoln that will enable greater collaboration change. We are excited about the role we with our partners, collaborators, and the have to play, and the significant impact our wider industry. The Food Science Facility in work will have on transforming agriculture Palmerston North is scheduled for completion in New Zealand and further afield. Given the in early 2020. We are excited about realising transformation processes being progressed the benefits of the joint approach with Massey within AgResearch, we also look forward to University and the Riddet Institute, and look engaging further during the upcoming science forward to reporting on this in the coming review process. years. In Lincoln, the focus for 2019/20 and Dr Paul Reynolds Tom Richardson Acting Chair, Chief Executive, AgResearch AgResearch Chair and Chief Executive overview Financial Statements Chair and Chief Executive 03 Our strategic direction AgResearch’s vision remains unchanged — to drive New Zealand’s prosperity by transforming agriculture. Over the past year AgResearch has continued The breadth of AgResearch science capability, to refresh its strategic position. We have spanning the agricultural value chain, refined our overarching strategy and continues to underpin the organisation’s developed the next tier of detail around our differentiated value proposition whilst Strategic Initiatives in our refreshed Science ensuring a focused approach to delivering the Plan, a process that included extensive stated impact of increasing the value of New engagement with both internal and external Zealand’s exports. All the while enhancing stakeholders. our environment and optimising land use outcomes. This vision is supported by a focus on the two broad areas of aspiration; developing The AgResearch strategy is well aligned the world’s smartest and most sustainable to government priorities and will support land use systems and developing the most accelerating the shift from volume to sought-after, high value food and bio-based value agricultural production, enabling the products. Applied consistently to these transition to a productive, sustainable and aspirations are the twin lenses of consumer low emissions economy, and directly support focus and a systems based, integrated thriving sustainable regions. approach to science seeking to bring the best possible teams together to tackle both issues and opportunities, leveraging both the breadth of AgResearch capability and an extensive and developing network of external collaborators. Our strategic direction 04 Five critical strategic initiates have been 4. New Ways of Working – Implementing identified to underpin, direct, and facilitate the four campus model, including new organisational performance: facilities, and developing research, innovation and education centres 1. Financial Strength – Financial facilitating collaboration. This means sustainability allowing reinvestment into investing in people and processes to science capability and capacity over time. support the transformation process. 2. Revitalised Science Plan – Creating 5. Transforming Through Technology – enduring value via integrated and Embracing technology to change the focused areas of research that capitailise way we deliver science and to improve upon emerging opportunities from enabling systems and processes to rapid changes in food and farming enhance impact. technology, science, consumer drivers, and environmental constraints. 3. One AgResearch – Investing in an aligned organisational culture that is innovative, energised, vibrant, and collaborative. Driving prosperity by transforming agriculture