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Annual-Report-2014.Pdf G.42 PLANT & FOOD RESEARCH FOOD & PLANT ANNU A L L REPO R T 2014 T ANNUAL REPORT 2014 This report presents Plant & Food Research’s operating results for the financial year ending 30 June 2014. It also demonstrates how our research is supporting our Core Purpose industries in meeting their targets for economic and environmental sustainability. SECTION 1 SECTION 2 2 Highlights 46 Financial statements 4 Chairman’s commentary 48 Directors’ report 6 CEO’s review 49 Independent auditors’ report 8 Our Impact 50 Statements of comprehensive income 22 Responding to Psa 51 Statements of changes in equity 24 Engagement with Māori 52 Balance sheets 26 Science quality 53 Cash flow statements 28 Innovation through research collaborations 54 Notes to the financial statements 29 Science Advisory Panel 78 Performance indicators 30 Redefining success with industry 79 Statement of responsibility 32 International relationships 80 Directory 34 Our people 81 Index 38 Corporate governance 40 Core funding Presented to the House of Representatives pursuant to Section 39 of the Public Finance Act 1989 More information can be found on the company website and via our social media channels, or throughout this report using augmented reality, accessible on mobile devices using the Layar app. Learn more about Layar on page 82 and keep a look out for this symbol. www.plantandfood.co.nz/growingfutures OUR SECT RS OUR HISTORY 2013 Export market value ($B) → 1926 The Department of Industrial Science and Research (DSIR) formed. 2.45 1.2 1.52 26.5 0.28 → 1928 DSIR joined with the Department of Agriculture in establishing a Plant Research Station. → 1936 Plant Research Station transferred entirely to the DSIR. The DSIR begins doing its own research rather than coordinating that of other institutions. HORT WINE SEAFOOD FOOD CROPPING → 1980 The Fish Research Unit established at DSIR. 2.35 0.69 0.35 17.6 1.5 → 1992 Ten Crown Research Institutes (CRIs) established out of former government departments. 2013 Domestic market value ($B) → 2008 Plant & Food Research formed following the merger of former CRIs HortResearch and Crop & Food Research. Plant & Food Research is a The Institute brings together New Zealand-based more than 80 years of food, company providing research horticulture, arable and and innovation to ensure seafood research to deliver the sustainable growth of knowledge and technology the plant and marine-based to enhance New Zealand’s food industries. economic, environmental and social prosperity. OUR PEOPLE OUR FUNDING Research Core support $43.1M 89 Contestable $18.4M HEAD General REVENUE Other COUNT 135 SOURCES $2.8M Senior Royalties leadership $16.4M Research 12 50%50% Commercial 612 $38.9M Our activities are funded through the We have close to 850 staff New Zealand Government based at 13 sites across – our sole shareholder – New Zealand, as well as offices in the form of Core Funding in Australia and the USA. and contestable research funding, as well as through commercial revenues. Our science is Growing Futures™ OUR PURPOSE is to enhance the value and productivity of the horticultural, viticultural, arable, seafood and food and beverage industries. 1 Highlights → Collaborating with US company Marrone Bio Innovations, Inc. in the commercialisation of new biopesticides. Under a new research agreement, novel bio-active organisms and natural products will be provided to MBI for the development of biopesticides and plant health products for the international agricultural, home and garden, and forestry markets. → Initiating new research with the New Zealand Aid Programme to build value for small-holder avocado farmers in Kenya. The Kenya Avocado programme, in association with New Zealand company Olivado, will identify varieties and growing systems for avocados suitable for processing as high-value avocado oil. The aim of the research is to develop competitive advantage and sustainable economic returns for avocado farmers, 2 contributing to the aid programme’s goal of reducing poverty. FOR MORE GO TO PAGE 32 → LEFT: Appointing a new Chief Scientist, Professor Richard Newcomb. Professor Newcomb, Principal Scientist in the Molecular Sensing Team, succeeds Dr Ian Ferguson following the latter’s appointment as Chief Science Advisor to the Ministry for Primary Industries. FOR MORE GO TO PAGE 26 → Partnering with Australian researchers for new control options for the Queensland fruit fly. A new research facility, in partnership with Horticulture Australia Ltd, the CSIRO Biosecurity Flagship and the South Australian State Government, is developing sterile male-only Queensland fruit flies (Q-fly) with the aim of eradicating future incursions of the destructive pest into South Australia and supporting control of the pest in other production areas. FOR MORE GO TO PAGE 33 → RIGHT: Opening a new facility to enhance our seafood research programme. The $2.8 million purpose-built Maitai Seafood Research Facility was opened by Hon. Dr Nick Smith, MP for Nelson. The new facility will provide enhanced resources to meet the research needs of the New Zealand seafood industry. FOR MORE GO TO PAGE 19 → Demonstrating innovation expertise at the New Zealand Innovators Awards and the KiwiNet awards. Our insect pheromones research was awarded the Innovation in Environment and Agriculture award at the annual Innovators Awards and was a finalist for the KiwiNet Research & Business Partnership Awards. The Precision Seafood Harvesting programme won the People’s Choice award at the KiwiNet Awards and was runner up for the Supreme Award. FOR MORE GO TO PAGE 19 2 → RIGHT: Celebrating the 75th anniversary of the Mt Albert Research Centre. More than 700 people, including families of staff members and members of the local community, celebrated the milestone at an Open Day, the first held at the research centre for more than 25 years. → Securing $12 million of new investment from the competitive MBIE funding round. Plant & Food Research will lead nine new projects designed to support the growth of the horticultural and seafood sectors. → Securing funding for two new fundamental science projects through the Marsden Fund. The new projects will study how plants grow and adapt in response to UV and how plant branching can be controlled, ultimately informing future crop breeding and growing practices. FOR MORE GO TO PAGE 27 → LEFT: Partnering with the seafood industry for the public launch of the new Precision Seafood Harvesting technology. This new harvesting technology, now being commercialised through the Primary Growth Partnership programme, supports sustainable fishing practices by targeting specific sizes and species of fish, reducing non-target by-catch. → Partnering with Massey University, AgResearch, the Riddet Institute and the BioCommerce Centre to launch FoodHQ. The Manawatu food innovation alliance aims to create an international centre for collaborative food research and to support the government’s Business Growth Agenda of doubling food exports by 2025. FOR MORE GO TO PAGE 28 → Supporting a new PGP programme, led by New Zealand Winegrowers, to cement New Zealand’s position as a supplier of premium wines. Under the PGP, our scientists will work with wine companies to develop new techniques and practices to meet consumer demand for high quality, lower calorie and lower alcohol “lifestyle” wines. → Collaborating with fellow CRI AgResearch, the University of Auckland, Massey University and the University of Otago 2014 in the development of the High Value Nutrition National Science Challenge. The new research initiative aims to HIGHLIGHTS develop new food products with validated health benefits, enhancing the health of New Zealanders and supporting the growth of food exports. FOR MORE GO TO PAGE 28 3 Chairman’s commentary New Zealand’s plant and marine- In both Asia and beyond, we continue to work internationally with commercial and government partners to maximise the based food sectors have an opportunity for New Zealand. Our scientists also work with the important role to play in the New Zealand Aid Programme and other international agencies to use our science to support New Zealand’s international Government’s target of increasing interests and improve conditions in developing countries. This dimension to our work allows our researchers to access food exports to $60 billion by 2025. research done overseas, to work with scientists in other countries and to build the knowledge capability of our Institute. The horticulture, viticulture, arable, seafood and wider food industries all have ambitious strategies to support this growth, At home, the Māori economy continues to be a key opportunity and we are committed to providing the research capability for New Zealand’s food sector, with land and water assets required to ensure New Zealand fulfils its potential. estimated to be worth $10 billion. This year, the Board has reviewed and approved a refreshed Māori strategy that Asia is a key target for New Zealand exports, with a focus focuses on building long-term relationships with Māori-owned on premium products that meet the demands of a growing enterprises and working together to identify opportunities to middle-class population. Our Core Purpose sectors are optimise Māori resources. focused on rebalancing their product offerings, marketing and supply efforts in line with this trend. Plant & Food Research’s We are committed to working with our partners to prioritise experience in understanding consumer preferences – in resources for existing and emerging markets and to ensure terms of taste, flavour and eating experience – and in meeting New Zealand remains competitive globally. Our success will demands for food safety and sustainability will be key in be reflected in the success of our Core Purpose industries – allowing our partners to build a portfolio of future products delivering products that meet the needs of consumers and with the Asian market in mind. command a premium on the global market. MEETING CONSUMER DEMAND: New pear cultivars combine the best attributes of traditional European and Asian varieties to deliver novel flavours and textures. This new category of interspecific pears will have an export value of $60 million by 2023.
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