Annual Report 2014-2015 ©2015 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. ISBN: 978-1-74254-815-9 RIRDC Publication No.15-069 ISSN: 1037 3470 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 Front cover image: truffles CONTENTS

Transmittal Letter...... 5 About RIRDC...... 6 Organisational Structure...... 9 RIRDC’s Corporate Plan ...... 10 Chair’s Report...... 11 Key Performance Indicators ...... 15 Overview of R&D Investment...... 17 Communicating R&D Results...... 23 Highlights and Achievements in 2014-15...... 24 Financial Snapshot ...... 33 RIRDC’s Portfolio Structure...... 37 Collaboration...... 39 Evaluation...... 43 Performance Against the Australian Government’s Research Priorities...... 47 R&D Outputs and Outcomes for 2014-15...... 50 Goal 1: Promote Leadership and Innovation in the Rural Sector...... 51 Goal 2: Increase Profit and Productivity in Rural Industries...... 55 Goal 3: Enhance Sustainability Across the Rural Sector...... 82 Corporate Governance...... 95 Financial and Performance Statements...... 117 Notes to the Financial Statements...... 127 Appendices...... 167 Appendix 1: Statutory Levy and Industry Sub-Accounts...... 168 Appendix 2: Legislative Requirements...... 183 Appendix 3: RIRDC R&D Advisory Panels and Chairs at 30 June 2015...... 186 Appendix 4: Service Charter...... 187 Appendix 5: RIRDC Selection Committe Report 2014-15...... 189 Appendix 6: Glossary...... 191 Appendix 7: Index of Annual Report Requirements...... 193 Index...... 197 Corporate directory...... 201 4 Transmittal letter

15 October 2015

The Hon. Barnaby Joyce MP Minister for Agriculture and Water Resources Parliament House CANBERRA ACT 2600

Dear Minister, In accordance with Section 28 of the Primary Industries Research and Development Act 1989 (PIRD Act), I present the Annual Report of the Rural Industries Research and Development Corporation for the year ended 30 June 2015. This Annual Report has been prepared and approved by the Board of the Rural Industries Research and Development Corporation in accordance with section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Funding Agreement 2015-2019 between the Commonwealth of Australia and the Rural Industries Research and Development Corporation. Yours sincerely,

Professor Daniela Stehlik Chair cc: Senator the Hon. Anne Ruston Assistant Minister to the Minister for Agriculture and Water Resources Mr Daryl Quinlivan Secretary, Department of Agriculture

5 ABOUT RIRDC

VV The 2014-15 RIRDC Annual Report

This document is the Rural Industries Research and Development Corporation’s (RIRDC) annual report to government and industry stakeholders which covers the Corporation’s operations for 2014–15. It is aligned with RIRDC’s Corporate Plan 2012–2017, the Annual Operational Plan 2014-15, and the Australian Government’s research priorities. It complies with mandatory and best practice reporting and includes: • A report on performance • Financial statements • The Auditor-General’s report on the financial statements

VV RIRDC’s purpose

To invest in research and development that is adopted and assists rural industries to be productive, profitable and sustainable.

VV Enabling legislation

RIRDC’s enabling legislation is the Primary Industries Research and Development Act 1989 (Commonwealth Government of Australia) (the PIRD Act).

VV Responsible Minister for the reporting period

The Hon. Barnaby Joyce MP Minister for Agriculture

VV 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.

VV 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.

6 • 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 uptake 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 demonstrated by client surveys and program evaluations.

VV Certification

On 9 September 2015 the RIRDC Board authorised this Annual Report with the following resolution: The Board: Approved the Annual Report for the year ending 30 June 2015, which includes the following certification: “That the Corporation Board accepts responsibility under Section 46 of the Public Governance, Performance and Accountability Act 2013 for the preparation and content of this Report of Operations in accordance with the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015”.

7 8 ORGANISATIONAL structure Figure 1: Organisational structure

RIRDC BOARD

MANAGING DIRECTOR

BUSINESS SENIOR PROGRAM DEVELOPMENT GENERAL MANAGER MANAGERS MANAGER – CORPORATE (TWO FULL TIME) (PART-TIME)

SENIOR COMMUNICATIONS MANAGER AND PUBLIC ICT AFFAIRS MANAGER

PROGRAM EXTERNAL MANAGERS RESEARCH (TWO MANAGERS FULL TIME, (FOUR ON ONE PART FINANCE CONTRACT) TIME) MANAGER

EXECUTIVE OFFICE MANAGER (PART TIME)

PROGRAM CO-ORDINATORS HR & GOVERNANCE FINANCE OFFICER (ONE FULL TIME, OFFICER (PART TIME) (PART TIME) THREE PART TIME)

At 30 June 2015 the Corporation had 11 staff employed on a full time basis (including the Managing Director) and seven part-time staff members. One staff member was on maternity leave. In addition the Corporation contracted four external managers to manage various R&D programs during 2014-15.

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 CHAIR’S report The 2014-15 year has been one of substantial challenges for RIRDC, but it has also been a year in which the Corporation has proven its worth and demonstrated its ability to produce valued and important R&D during times of uncertainty and change. During the year, RIRDC reinforced its unique role as an agency that provides R&D for the new, emerging and mature industries within its portfolio – R&D that plays an important role in their ongoing sustainability and profitability. RIRDC works very closely with its portfolio industries to ensure it invests in the appropriate R&D in the most time and cost effective manner. This year also saw the induction of a new Board for RIRDC and the new Directors commenced from the December 2014 meeting. Directors have been actively engaged in becoming familiar with the breadth of the Corporation and its many stakeholders. Further details about the new Board line up can be found in the Corporate Governance section of this Annual Report. RIRDC is the nation’s leading agency for cross sectoral agricultural and rural research, which is managed through our National Rural Issues program. During 2014-15 the Corporation’s National Rural Issues program established itself as a leading source of independent analysis and trusted insights. I remain proud of the fact that for an agency with less than 20 staff our Corporation punches above its weight, as RIRDC managed 231 active research projects in 2014-15 with a total cost (across their life) of $82 million. Collaboration and ensuring value for every dollar spent is central to what we do, and RIRDC has committed $33 million of funding in its research projects and leveraged $49 million of investment in cash and in-kind from other organisations. For each RIRDC dollar invested, $1.50 is leveraged from other organisations. RIRDC uses a ‘life-cycle’ approach to determine the appropriate level and type of investment for new and developing industries. The life-cycle approach ensures RIRDC funding for RD&E is based on the development stage of an industry in the Australian market. RIRDC works with each industry to agree on their development stage against the life-cycle, which then informs the appropriate RD&E investments required to assist progression of the industry. During 2014-15 the Corporation managed its R&D portfolio within a tight fiscal environment. The 2014 Federal Budget announced a $2 million cut to RIRDC’s core funding in 2014-15, with further cuts of $3 million annually for the following three years. The Federal budget reductions for 2014-15 and deeper cuts in the out years required a restructure of the Corporation to reduce internal costs and overheads in order to maximise spend on research, development and extension. This restructure led to a reduction in staff numbers across the Corporation’s executive, corporate, communications and R&D functions. Despite the 30 percent cut to funding and subsequent staff losses the Corporation has adjusted remarkably well. The Corporation’s high level of service to its stakeholders has been maintained, as have its R&D administration and corporate functions.

11 The results from our RIRDC stakeholder survey, which was carried out during late 2014 and early 2015 reinforces these statements. This survey showed that stakeholder satisfaction with RIRDC is high and that stakeholders believe the organisation performs well, delivering what industry and government expects. Stakeholders consider they have a positive relationship with RIRDC and that the organisation is resilient and proactive in its approach to networking with industries. The survey found that stakeholders clearly believe RIRDC to be making a positive contribution to Australian agriculture and to be supporting industry growth. Respondents to the survey felt that RIRDC adds value to their industry and the work undertaken fills a gap that would otherwise not be filled. More than 70 percent of survey respondents perceived their relationship with RIRDC as ‘excellent’ with the remaining 30 percent describing their relationship as ‘good’. Close to half of those surveyed were very satisfied with RIRDC’s performance (38 percent) with the remaining 62 percent satisfied. Respondents reasoned that this was due to structural changes undertaken during the last half of 2014 and that these had improved their overall working experience. In addition, respondents – predominately from industry organisations – were empathetic to RIRDC’s recent budget cuts and felt the Corporation had achieved a great deal considering its limited resources. In May 2015 the Government announced the projects to be funded as part of Phase 1 of its ‘R&D for Profit’ program. RIRDC will be the lead agency responsible for managing two large-scale research projects announced as part of that program: • ‘Improved use of seasonal forecasting to increase farmer profitability’; and • ‘Consolidating targeted and practical extension services for Australian farmers and fishers’. Both projects involve a number of partner agencies that RIRDC will work closely with to ensure they deliver useful outcomes in a timely and cost-effective manner. The aim of the $1.8 million ‘Improved use of seasonal forecasting to increase farmer profitability’ project is to bridge the gap between seasonal climate forecasts and on-farm business decisions to improve the productivity and profitability of Australian farmers. The project will do this by identifying the critical information requirements relating to seasonal climate risks for primary industries by sector, type of decision, and region. It will also enable farmers to use the unrealised potential in existing seasonal climate forecasts by developing tools, information and training to skill farmers in understanding and using seasonal forecasts in farm business decision making. The $1.6 million ‘Consolidating targeted and practical extension services for Australian Farmers and Fishers’ project will address the national issue of fragmentation of Australian agriculture extension activities, which has been identified as reducing productivity and profitability for all stakeholders. Extension services have been a key approach in assisting Australian farmers and fishers to be responsive to change and be able to apply the latest innovation to their businesses. Over the last decade, the delivery of extension services has seen considerable change and in Australia we have extensive knowledge and expertise on extension options, implementation and needs but due to the considerable change that has occurred, this knowledge is not readily accessible to inform extension-related decision making. This RIRDC-managed project will aim to resolve these issues. Two important White Papers were released during the year – the Agricultural Competitiveness White Paper and the White Paper on Developing Northern Australia.

12 As part of the White Paper on Developing Northern Australia the Government announced it will invest $75 million in a new CRC for Developing Northern Australia to assist businesses, governments and researchers to work together to find northern solutions to northern problems. The CRC will be industry led and located in the north, with an initial focus on agriculture, food and tropical health — where pre-commercial R&D is needed to establish new industries. The CRC will build on the growNORTH proposal that was conceived and promoted by RIRDC and includes multiple agricultural and food businesses, other industry organisations, northern jurisdictions, universities, other research bodies, financial and professional services companies, and regional development organisations. Stakeholders consider they have a positive relationship with RIRDC and that the organisation is resilient and proactive in its approach to networking with industries.

Announced as part of the Agricultural Competitiveness White Paper was a $13.8 million, two year pilot programme to provide knowledge and materials on cooperatives, collective bargaining and innovative business models. This program will be managed by RIRDC and will help farmers to establish alternative business models – including cooperatives – and manage contract negotiations. Also announced as part of the Agricultural Competitiveness White Paper was $1.2 million in additional funding for RIRDC to carry out R&D into new and emerging industries. In early 2015 RIRDC received a request from the Minister for Agriculture, The HonBarnaby Joyce MP to progress stakeholder and staff consultations in relation to moving RIRDC from its current base in Canberra to a regional centre. These consultations continue to be held in conjunction with the development of a detailed cost benefit analysis of a potential move. As requested by the Minister, RIRDC will be submitting the results of these consultations and the findings of the cost benefit analysis to the Minister by the end of 2015. The RIRDC Board will be carefully assessing the risks that come with relocating RIRDC from Canberra to a regional centre. The main risks centre on business continuity, staff retention and the substantial costs that will be involved with relocating RIRDC’s operations. The request to relocate RIRDC to a regional centre has brought with it a level of uncertainty for RIRDC’s staff and I thank them for continuing to carry out their duties in a professional and efficient manner during this period. 2014-15 has been a year of significant achievement for RIRDC amidst a challenging operating environment. Throughout the year RIRDC continued to successfully identify and invest in research and development that will have real and lasting impacts on the rural industries it serves, and the Corporation continues to prove its worth to the people that work in the industries and live in the regional areas that directly benefit from the work we do. Professor Daniela Stehlik Chair, Rural Industries R&D Corporation

13 14 KEY performance indicators Table 1. Key performance Indicators—Portfolio Budget Statements (PBS) for 2014-15

2014-15 Budget Indicators 2014-15 Actual Target

Improved delivery effectiveness including Target met. More 90% satisfaction of improvement in access to the information provided than 70% of surveyed stakeholders surveyed to industry, evidenced by new delivery mechanisms respondents perceived and stakeholder satisfaction with access. Level of their relationship with satisfaction of stakeholders surveyed. RIRDC as excellent with the remaining 30% describing their relationship as good.

Sector five-year research and development plans are 100% of the nine 85% meeting their objectives. programs that had sector five-year RD&E plans met their objectives. 100% of RIRDC’s 14 programs met their objectives.

Evaluation of projects and programs to show a One RIRDC program 3:1 strong positive return on investment. was evaluated in 2014-15. The evaluation of RIRDC’s Horse RD&E Program delivered lower bound and upper bound benefit cost ratios of 2.3 and 9.2, respectively.

RIRDC’s RD&E investments address the 100% of RIRDC’s 95% government’s National and Rural Research program investments Priorities, priorities of industry partners and addressed the National optimise partnerships with other research agencies. and Rural Research Priorities and industry priorities and optimised partnerships

The main elements of the RIRDC investment framework for 2014-15 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 Panels through an annual review of progress against their five-year R&D plans. • Funding allocations set for 2014-15. • 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 16 OVERVIEW of R&D investment

In 2014-15 RIRDC invested in 78 new research projects as the Corporation implemented a strategy of investing in fewer but larger new research projects. The significant increase in the average RIRDC investment per research project (refer to Figure 3) was driven by one particularly large new project in the Rice program - refer to the Rice program page in this annual report for more details.

260 240 220

200 Number of Research projects 180 started in year 160 140 Average RIRDC 120 investment per research project 100 ($’000) started in year 80 60 2011-12 2012-13 2013-14 2014-15

Figure 3: RIRDC’s RD&E investment and number of projects Expected impact of R&D projects

When deciding on which research projects to invest in, RIRDC evaluates, among other things, the likely level of industry adoption of the outputs of the research, together with the expected economic, environmental and social impacts of the project outputs. In 2014-15 a total of 38 of the 78 new research projects were procured through a process of an open call for project proposals. Of these 38 new projects, the number that are expected to deliver various levels of adoption and impacts are displayed in Figures 4-7.

17 Figure 4. Level of industry adoption expected five years after completion of project

10 9 8 7

6 Not Relevant 5 Less than 25% 4

Number of projects of Number Greater than 25% 3 2 Greater than 50%

1 Greater than 75% 0

Figure 5. Industry productivity growth expected five years after completion of project 14

12

10

Not Relevant 8

Less than 5% 6

Number of projects of Number Greater than 5% 4 Greater than 20% 2 Greater than 40% 0

18 Figure 6. Environmental benefits expected 10 years after completion of project

35

30

25 N/A

20 Some environmental disbenefits

15 No environmental benefits or disbenefits Number of projects of Number 10 Some environmental benefits 5 Large environmental benefits 0

Figure 7. Social benefits expected 10 years after completion of project

35

30

25 N/A

20 Some social disbenefits

15 No social benefits or disbenefits Number of projects of Number 10 Some social benefits 5 Large social benefits 0

19 A balanced R&D portfolio

RIRDC invests its RD&E funds through a number of new, developing and maturing and established industry programs, along with a number of national and cross sectoral programs and initiatives. RIRDC allocates its expenditure using a range of measures that ensure a balanced, financially responsible approach to its investment of both industry and core funds. RIRDC’s investments integrate the triple bottom line objectives of economic, environmental and social responsibility. The majority of investment is aligned with short- to medium-term adaptive research outcomes and investment returns with the remainder contributing to long-term strategic research objectives. RIRDC’s project management system enables the portfolio of investments to be viewed against various dimensions including: • government research priorities; • program objectives; • project length; and • levels of risk, return and leverage. RIRDC’s Industry Advisory Panels assist in identifying and advising on specific RD&E priorities to implement the RD&E Plans, but ultimately investment is determined by industry support, support from the Australian Government where appropriate, and RIRDC’s own evaluation of the RD&E need against investment priorities.

20 21 22 COMMUNICATING R&D results In order to promote and make publicly available the results and outcomes of the research projects it funds, RIRDC publishes final reports and/or project summaries. During 2014-15 101 final reports or project summaries were published. In 2014-15 RIRDC modified its project management system to systematically collect data about the additional communication outputs produced by research projects. Figure 8 provides the number of presentations (at field days, workshops and conferences), scientific journal articles and industry newsletter articles delivered, or that will be delivered by the 71 research projects completed in 2014-15 since October 2014. Figure 8. Research project communication outputs (in addition to reports & project summaries)

350

300

250

Presentations 200

Scientific journal 150 articles Number delivered Number 100 Industry newsletters articles 50

0

23 of respondents to HIGHLIGHTS and 70% RIRDC’s stakeholder survey perceived their relationship achievements in 2014-15 with RIRDC as excellent

30% perceived their relationship with 78 RIRDC as good new research projects started in 2014-15

large scale research projects announced as part of the Government’s ‘R&D’ for Profit program are to be managed by RIRDC: 261 active research projects were managed by RIRDC Improved use of seasonal forecasting during 2014-15 to increase farmer profitability

Consolidating targeted and practical 2 extension services for Australian farmers and fishers

24 RURAL INDUSTRIES R&D CORPORATION Annual Report 2014-2015 ofof respondents respondents to to 70%ofRIRDC’s respondentsRIRDC’s stakeholder stakeholder to survey survey 70%RIRDC’s stakeholder survey 70% perceivedperceived their their relationship relationship perceivedwithwith RIRDC RIRDC their as relationship asexcellent excellent with RIRDC as excellent

30%30% perceivedperceived30% their their perceivedrelationshiprelationship their with with relationshipRIRDCRIRDC as with as good good 78 RIRDC as good 7878 newnew research research projects projects newstartedstarted research in 2014-15in 2014-15projects started in 2014-15

largelarge scale scale research research projects projects largeannouncedannounced scale research as as part part projectsof of the the announcedGovernment’sGovernment’s as part ‘R&D’ ‘R&D’ of thefor for Profit Profit Government’sprogramprogram are are to‘R&D’ to be be managed formanaged Profit by by programRIRDC: are to be managed by 261 active research projects RIRDC: 261 active research projects RIRDC: 261 activewere research managed projects by RIRDC Improved use of seasonal forecasting Improved use of seasonal forecasting were managed by RIRDC to increase farmer profitability wereduringduring managed 2014-15 2014-15 by RIRDC Improvedto increase use farmer of seasonal profitability forecasting during 2014-15 to increase farmer profitability Consolidating targeted and practical Consolidatingextension services targeted for and Australian practical 2Consolidating targeted and practical 2 extensionfarmers servicesand fishers for Australian 2 extensionfarmers andservices fishers for Australian farmers and fishers

25 Highlights and achievements in 2014-15 (continued)

Liquid Gold New research into antibacterial qualities of manuka honey

Australian beekeepers could be set for a boom, earning up to $30/kg for honey if new research funded by RIRDC confirms honey produced from various species of Australian manuka trees have antibacterial properties. Honey is increasingly being used for the treatment of wounds and skin infections due to its potent antibacterial and healing properties, including major infections like Golden Staph, E-coli and superbugs now becoming untreat- able with modern antibiotics.

A New Website to help farmers diversify their farms

Providing a new easy-to-use, easy-to-access web-based tool for farmers considering diversification on-farm, thewww.farmdiversity.com.au website has proven to be a useful resource for Australian farmers. After simply entering their postcode in the website’s search engine, 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.

26 RURAL INDUSTRIES R&D CORPORATION Annual Report 2014-2015 Strengthening the truffle industry through pest and disease management

With pest and disease a real threat to the Australian truffle industry, RIRDC began a project that will see integrated pest management and biosecurity plans devel- oped for the Australian truffle industry. A biosecurity plan for the truffle industry is being developed by Plant Health Australia.

27 Highlights and achievements in 2014-15 (continued)

Pip Job from NSW takes out 2014 RIRDC Rural Women’s Award

Pip Job, a New South Wales grazier and environmental advocate was announced as the winner of the 2014 RIRDC Rural Women’s Award. Pip’s far-reaching vision for innovative and socially connected family farms inspired the judges. Pip’s passion is identifying and breaking down the barriers to progress for farming families dealing with social challenges.

28 15 New Horizon Scholars announced

Fifteen young Australians with a love of agriculture and the capability to be future leaders were awarded the prestigious Horizon Scholarship in early 2015. Developed to help address the shortage of trained professionals entering primary industries and designed to promote the diverse career pathways that agriculture offers, the Horizon Scholarship attracts Australia’s best and brightest young tertiary students. The students are studying for degrees such as agricultural science and animal and rural sciences at universities across the country, and all are committed to a career in primary industries after their studies.

Tea Tree Oil Proven to fight acne Funded by RIRDC, a number of scientific papers were produced that supported the effectiveness of tea tree oil in fighting the bacteria that causes acne. The research has the potential to increase the acceptability of tea tree oil products for acne treatment amongst consumers and health professionals both in Australia as well as overseas.

29 Highlights and achievements in 2014-15 (continued)

R&D to set quinoa industry up for growth

The potential of quinoa as a significant new broad acre crop in Australia was progressed through a research project that will develop commercial varieties suitable for Australian broad acre production and provide farmers with advice on best management practice. Carried out by the Department of Agriculture and Food, Western Australia, the RIRDC-funded project is set to trial a number of potential Australian quinoa lines which will be commercially released after the conclusion of the project.

Handy Guidelines To help chicken meat growers reduce energy costs

A set of easy-to-use guidelines, case studies and online tools were developed for Australian meat chicken growers. The suite of tools provides growers with an introduction to roof-top solar photovoltaic (PV) electricity generation, case studies that investigate the viability of reducing operational costs at two meat chicken farms through the installation of rooftop solar PV, and an assessment tool to help growers assess whether installing a solar PV system is likely to be financially viable for their farm.

30 Topaz The new rice Aussie R&D made Australian rice growers – and Australian consumers – now have a new premium rice variety available to them, all thanks to world-class Aussie R&D. Called Topaz, the new premium fragrant rice variety was developed by the NSW DPI in partnership with RIRDC, SunRice and Rice Research Australia Pty Ltd. Through years of R&D and on-farm trials Topaz has been bred specifically for Australia’s temperate rice growing condi- tions. Marketed as a premium rice variety, Topaz is set to create new opportunities in the higher value markets both domestically and overseas. In market testing in Hong Kong, Topaz outperformed other fragrant rice varieties for taste, appearance and flavour.

31 32 FINANCIAL snapshot

Table 2: Financial and operational summary

Revenue ($ million) 2010-11 2011-12 2012-13 2013-14 2014-15 Commonwealth Appropriation 10.5 11.8 11.2 11.3 9.4 Industry Levies 2.4 4.2 4.6 5.5 4.5 Commonwealth matching dollars 3.0 3.2 3.4 3.4 3.3 Interest .9 1.0 .8 .7 .7 Other Income 7.7 8.4 4.4 3.9 5.1 24.5 28.6 24.4 24.8 23.0

Expenditure ($ million) 2010-11 2011-12 2012-13 2013-14 2014-15 Research programs 23.4 24.8 16.4 17.3 15.9 Communications .5 .3 .5 .5 .4 Corporate 4.8 4.4 4.5 4.8 3.6 28.7 29.5 21.4 22.6 19.9

Revenue as % 2010-11 2011-12 2012-13 2013-14 2014-15 Commonwealth Appropriation 43 41 46 46 41 Industry Levies 10 15 19 22 19 Commonwealth matching dollars 12 11 14 14 14 Interest 4 3 3 3 3 Other Income 31 30 18 15 23 100 100 100 100 100

Expenditure as % 2010-11 2011-12 2012-13 2013-14 2014-15 Research programs 73 72 67 64 67 Employees 14 12 18 20 16 Suppliers 13 16 15 16 17 100 100 100 100 100

33 Figure 9. Revenues for 2014-15

Other Revenues from 15% Government 55% External Contributions 11%

Industry Levies 19%

Figure 10. Expenditure for 2014-15

Suppliers Research 17% projects 67%

Employees 16%

34 Figure 11. Share of total expenditure by research program

Climate Change Research Strategy for Primary Industries Investing in People Primary Industries Other Health and Safety National Rural Bioenergy, Bioproducts Issues and Energy Chicken Meat Wildflowers and Native Plants Fodder Crops

Honey Bee and Tea Tree Oil Pollination New and Developing Horses Plant Industries Pasture Seeds New and Developing Animal Industries Rice Essential Oils and Plant Extracts

35 36 RIRDC’S portfolio structure 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 FODDER CROPS PRIMARY INDUSTRIES HEALTH HONEY BEE (INCLUDES AND SAFETY PARTNERSHIP POLLINATION PROGRAM) INVESTING IN PEOPLE HORSE (INCLUDES HENDRA VIRUS) CLIMATE CHANGE RESEARCH STRATEGY FOR PRIMARY PASTURE SEEDS INDUSTRIES RICE ESSENTIAL OILS AND PLANT EXTRACTS ANIMAL INDUSTRIES (NEW, DEVELOPING AND MATURING) PLANT INDUSTRIES (NEW AND EMERGING) TEA TREE OIL WILDFLOWERS AND NATIVE PLANTS

37 38 COLLABORATION RIRDC understands the key to developing real and lasting solutions for rural industries 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 – including biosecurity, climate change and natural resource management, and capacity building. RIRDC managed 231 active research projects in 2014-15 with a total cost across their life of $82 million. RIRDC has committed $33 million of funding in these projects and leveraged $49 million of investment in cash and in-kind from other organisations. For each RIRDC dollar invested, $1.50 is leveraged from other organisations.

National cross sectoral RD&E strategies

RIRDC plays a lead role in two of the national cross sectoral RD&E strategies. For the Climate Change cross sectoral strategy, RIRDC coordinates activities across 22 partners including the Australian Government, state and territory governments, CSIRO and other rural research and development corporations (RDCs). A key deliverable in 2014-15 for the Climate Change strategy was a national partner forum held in November 2014 to share information and ideas. The forum also identified areas that partners could work collaboratively on climate change issues. The other strategy RIRDC leads is the Biofuels and Bioenergy strategy. RIRDC is also an active member of the Water Use in Agriculture, Soils, Animal Biosecurity and Animal Welfare cross sectoral RD&E strategies. RIRDC also played a leadership role by seeking each of the cross sectoral strategy implementation committees to provide RDCs advice on the top five key priorities for their respective strategies for the next three years. These were collated and provided to better inform RDCs of the national priorities and needs.

39 Examples of RIRDC collaborations across industries and the sector Table 3. Major collaborations that RIRDC managed or participated in during 2014-15

What Who Aim

Climate Change A joint initiative of rural research and To promote a strategic and Research Strategy development corporations, state and territory collaborative approach to climate for Primary governments, Australian Government change research, development and Industries (CCRSPI) Department of Agriculture and the CSIRO. extension for primary industries. Hendra virus RIRDC Horses Program, Australian To fund research consistent with the research as part Government Department of Agriculture, goal of the National Hendra Virus of the National Hendra Australian Government Department of Research Program to minimise the Virus Research Industry, and Australian Government impact of Hendra virus. Program Department of Environment. Primary RIRDC, Cotton Research and Development Healthy, safe and productive working Industries Corporation, Sugar Research Australia, lives in the primary industries Health and Safety Fisheries Research and Development through investment in RD&E drive Partnership Corporation, Grains Research and sustainable improvements to work Development Corporation, Meat & Livestock, health and safety outcomes. and Australian Meat Processor Corporation. Horizon RIRDC, Cotton Research and To support the next generation of Scholarship Development Corporation, Grains agriculture leaders who will take Research and Development Corporation, up the challenge of farming for Meat and Livestock Australia, Australian the future. In partnership with Egg Corporation Limited, Australian industry sponsors the goal of the Department of Agriculture, Australian Pork Scholarship is to enhance the future Limited, Horticulture Innovation Australia supply of graduates available for Limited, Australian Wool Innovation, employment in the rural sector. Sugar Research Australia, Grape and Wine Research and Development Corporation, Woolworths, Lallemand Animal Nutrition and McCaughey Memorial Institute. Rural RIRDC, Australian Department of To identify and support the capabilities Women’s Agriculture, Westpac Agribusiness, of emerging rural women leaders Award ABC Rural, Fairfax Agricultural Media, to increase their participation and RM Williams Outback Magazine, NT contribution to Australia’s primary Farmers and State Governments. industries and rural communities. ABARES Science RIRDC, ABARES and other sponsors. To provide recognition to and Innovation innovative scientific projects that Awards for Young will contribute to the ongoing People in Agriculture, success and sustainability of Fisheries and Forestry Australia’s agricultural, fisheries and forestry industries. National Animal RIRDC Chicken Meat Program, To co-ordinate a national Manure Australian Egg Corporation Limited, research network under an agreed Management Australian Pork Limited, Meat & Livestock collaborative program that will Program Australia, Dairy Australia, Horticulture estimate the agricultural greenhouse Innovation Australia Limited, and the gas emissions (GHG) abatement Australian Government. potential for various animal manure management systems. Structural RIRDC, Regional Australia Institute To review lessons and knowledge adjustment gained from the impacts of impacting structural adjustment processes rural communities and programs – including lessons, experiences and opportunities – in rural and regional Australia.

‘Food and Fibre’ RIRDC, Australian Government To understand medium and longer Supply Chains Study Department of Infrastructure and term opportunities for irrigated of key regions in Regional Development, the State of agriculture across northern Australia Northern Australia Queensland, the Northern Territory and critical supply chain and of Australia, and the State of infrastructure investment issues that Western Australia. may help to foster those opportunities.

40 What Who Aim

National Bioenergy RIRDC, Australian Bioenergy RD&E To improve the coordination RD&E Strategy Forum member agencies, Australian and collaboration of primary and State Government departments, industries-focused bioenergy universities, relevant research and RD&E nationally. development corporations, CSIRO, and the bioenergy industry.

Myrtle Rust RIRDC, Plant Health Australia, To provide technical advice Australian and State Government to the Myrtle Rust Transition departments, CRC for Plant Biodiversity, Management Group (MRTMG) universities, National Botanic on specific scientific issues and to Gardens, CSIRO, and Myrtle rust- assist in developing techniques and affected industries. strategies that minimise the impact of Myrtle Rust.

Pollination RD&E RIRDC Honey Bee and Pollination Support RD&E that will secure a Program and Horticulture Innovation productive, sustainable and more Australia Limited. profitable Australian beekeeping industry and secure the pollination of Australia’s horticultural and agricultural crops.

New and Emerging RIRDC, Australian and State To improve the coordination and Industries National Government departments, universities, collaboration of new rural industries RD&E Strategy CSIRO and industries. RD&E nationally.

Valuable behavioural RIRDC, Meat & Livestock Australia, Use genomic technologies to phenotypes in Sydney University, and the working dog develop a breeding program for Australian farm dogs industry (Working Kelpie Council). working dogs to reduce the cost of wastage, and improve behavioural and health traits.

Biomass RIRDC, Australian Bioenergy RD&E To develop and manage a knowledge Producer website Forum member agencies, Australian and hub website to inform primary State Government departments, universities, producers of their opportunities in relevant research and development the bioenergy supply chain. corporations, CSIRO, and Econnect.

Poultry CRC RIRDC Chicken Meat Program, Australian The Poultry CRC’s major Egg Corporation Limited, Bioproperties Pty challenge is to help Australia Ltd, CSIRO, Department of Agriculture, achieve sustainable, ethical poultry Fisheries and Forestry Queensland, production in the face of population University of Melbourne, and University growth and climate change. of New England.

Feed RIRDC Chicken Meat Program, Established to integrate and Grains Partnership Australian Egg Corporation Limited, identify collaborative research Grains Research & Development and development initiatives across Corporation, Meat & Livestock Australia, participating R&D funding Australian Pork Ltd, Dairy Australia, Pork agencies involved with the feed CRC, and Stock Feed Manufacturers’ grain and livestock supply chain. Council of Australia (SFMCA).

Managing Climate RIRDC, Grains Research & Development To help primary producers Variability Program Corporation, Meat & Livestock Australia, and natural resource managers and Sugar Research Australia. manage the risks and exploit the opportunities resulting from Australia’s variable and changing climate.

Australian RIRDC Pasture Seeds program; Grains To acquire, document, conserve, Pastures Genebank Research and Development Corporation; maintain and distribute plant Australian Wool Innovation; Meat & genetic resources of pasture and Livestock Australia; Dairy Australia, and forage species of actual or potential State Departments of Agriculture. value to Australian agriculture.

41 42 EVALUATION In the year ending June 2015 an impact assessment was carried out on one RIRDC RD&E program – the Horse RD&E program. The impact assessment was carried out by Agtrans Research over the period October 2014 to April 2015. The approach of the impact assessment was the same approach as used in 2014. 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 Horse RD&E program was defined as projects completed in the years ending June 2012 to June 2015 and having a final report available. There were 21 projects defined in the project population for the Horse RD&E Program. 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. A draft was passed by the RIRDC Senior Program Manager and in some cases Principal Investigators for comment. Some of the potential benefits identified from the investment in the 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 core funds and industry investment), as well as any other resources contributed 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.

43 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

All impacts were relevant to the horse industry, especially the Thoroughbred racing industry. A range of impacts and potential impacts were reported, predominantly economic and social in nature. No environmental impacts (positive or negative) were identified from the projects. The predominant economic impacts were reduced deaths and injuries of horses and foals and reduced treatment costs. The predominant social impacts were improved rider and jockey safety and improvements in animal welfare driven by improved health and injury prevention and treatment. Investment Criteria

Table 4 presents the estimated minimum and maximum investment criteria for the Horse RD&E program at a 5% discount rate. Table 4: Investment Criteria for Total Investments for the Horse RD&E Program (discount rate = 5%, 30 years)

PVB PVC NPV B/C IRR Investment ($m) ($m) ($m) Ratio (%)

Horse RD&E Program – Upper 28.09 3.06 25.03 9.18 30.4 Bound (Maximum)

Horse RD&E Program – Lower 28.09 12.44 15.65 2.26 11.4 Bound (Minimum) Conclusions

A range of impacts, predominantly economic in nature, were identified from the Horse RD&E Program. The evaluation of the Horse RD&E program reported the delivery of indicative lower bound and upper bound benefit cost ratios of 2.26 and 9.18. These quantitative results, along with the qualitative identification of impacts, demonstrate that the program delivered 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.

44 45 46 PERFORMANCE against the Australian Government’s research priorities

The Strategic 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) 2014-15 was closely aligned with these priorities. The Strategic Research Priorities were replaced with new Science and Research Priorities in May 2015. This Annual Report aligns its 2014-15 R&D investments with the Strategic Research Priorities. The new priorities will be incorporated throughout 2015-16. 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. • Thefive-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 5: RIRDC funding allocations against the Strategic Research Priorities

Goal 1 Goal 2 Goal 3 Tot al Strategic Research Priorities Total (%) ($'000) ($'000) ($'000) ($'000)

Societal Challenge – Living in a changing environment

1.1: Identify vulnerabilities and boundaries 0 0 0 0 0.00% to the adaptability of changing natural and human systems

1.2: Manage risk and capture opportunities for 743 0 743 5.61% sustainable natural and human systems

1.3: Enable societal transformation to enhance 0 0 45 45 0.34% sustainability and wellbeing Societal Challenge – Promoting population health and wellbeing

2.1: Optimise effective delivery of health care 0 238 224 462 3.49% and related systems and services

2.2: Maximise social and economic 25 0 0 25 0.19% participation in society

2.3: Improve the health and wellbeing of 0 8 0 8 0.06% Aboriginal and Torres Strait Islander people

47 Goal 1 Goal 2 Goal 3 Tot al Strategic Research Priorities Total (%) ($'000) ($'000) ($'000) ($'000)

Societal Challenge – Managing our food and water assets

3.1: Optimise food and fibre production using 139 7,302 7 7,448 56.27% our land and marine resources

3.2: Develop knowledge of the changing 0 0 0 0 0.00% distribution, connectivity, transformation and sustainable use of water in the Australian landscape

3.3: Maximise the effectiveness of the 27 0 22 49 0.37% production value chain from primary to processed food Societal Challenge – Securing Australia’s place in a changing world

4.1: Improve cybersecurity for all Australians 0 0 0 0 0.00%

4.2: Manage the flow of goods, information, 0 0 0 0 0.00% money and people across our national and international boundaries

4.3 : Understand political, cultural, 347 0 0 347 2.62% economic and technological change, particularly in our region Societal Challenge – Lifting productivity and economic growth

5.1: Identify the means by which Australia can 187 1,380 0 1,567 11.84% lift productivity and economic growth

5.2: Maximise Australia’s competitive 531 797 36 1,364 10.30% advantage in critical sectors

5.3: Deliver skills for the new economy 0 513 666 1,179 8.91%

Total 1,256 10,981 1,000 13,237 100.00%

Table 6: RIRDC funding allocations against the Rural Research Priorities

Goal 1 Goal 2 Goal 3 Total Rural Research Priorities Total (%) ($,000) ($,000) ($,000) ($,000)

1. Productivity and adding value 127 7,597 486 8,210 62.02%

2. Supply chain and markets 159 467 10 636 4.80%

3. Natural resource management 0 231 0 231 1.75%

4. Climate variability and climate change 50 54 332 436 3.29%

5. Biosecurity 0 1,483 11 1,494 11.29%

6. Innovation skills 781 867 161 1,809 13.67%

7. Technolog y 139 282 0 421 3.18%

Total 1,256 10,981 1,000 13,237 100.00%

48

R&D outputs and outcomes for 2014-15

50 GOAL 1: Promote Leadership and Innovation in the Rural Sector

VV 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 2014-15

There was one RIRDC research program in Goal 1 in 2014-15: • National Rural Issues

51 National Rural Issues

Summary of Research Program

This was the third year of operation for the National Rural Issues program. The program invests in research and development to support rural industries to be productive, profitable and sustainable. The program delivered a range of research that aimed to support policy and national decision making. This included strong engagement with key stakeholder groups, such as theNational 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. This ongoing engagement led to the identification of a number of key policy knowledge gaps, which were addressed by the program. Aim

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

2013-14: $635,548 2014-15: $1,436,127

Stated Priorities for 2014-15

• Invest in research targeting current and emerging national rural issues to inform and improve policy debate by government and industry on issues relevant to agricultural and rural policy in Australia. • Undertake research that addresses impediments and opportunities to Australian agriculture that have arisen as a result of the global economy, including trade policy, agricultural productivity, and food security. • Enhance the global competitiveness of Australia’s agricultural sector through initiatives such as the modelling of the impacts of free trade agreements, analysing the differences in agricultural productivity growth between Australia and its competitors, comparing the competitiveness of Australian agriculture with its competitors and reaffirming the benefits of supporting a free trade agenda. • Support Australia’s negotiations in multilateral trade agreements through the analysis of challenging issues such as tariff quotas and special safeguards. • Introduction of foresighting studies to identify new and emerging issues likely to impact on future productivity and competitiveness of rural industries. • Invest in animal and plant industries which are new to Australia and have the potential to boost productivity, offer diversification options to farmers and expand domestic and export market opportunities. • Develop a consortium to support a bid for a new Cooperative Research Centre for northern Australia which is targeted at premium food and agricultural produce which can grow export markets into Asia.

52 Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Identify the factors that contribute to successful A project delivered an assessment of the factors entrepreneurship in Australian agriculture, considered by the better-performing farmers in investigate how best to assess farm business terms of business management. Two research performance, and develop a framework for projects were also undertaken to develop a industries to prioritise applications for minor use framework to assess AgVet chemical priorities and a permits for AgVet chemicals. process to share these priorities between industries and chemical companies. Investigate the interactions between climate Global modelling research assessed the interactions change, policy and food security; and the between climate change, agricultural policies and role of new immigrants in contributing to food security. Research is also being undertaken productivity increases. to consider the productivity bonuses from new immigrant workers. Complete analysis to reaffirm the importance Research finalised that assessed the importance of continued support for a free trade agenda; of free trade arrangements in the modern context. investigate any opportunities currently being missed Research completed that engaged with a broad due to existing policies on geographical indicators; sample of Australian agriculture to assess the and progress investigations into the best ways of potential opportunities offered by adopting comparing Australia’s competitiveness. Geographical Indications. Research was also delivered that investigated opportunities to compare the competitiveness of agricultural industries across countries. Investigate the impacts of export subsidies on global Two research projects were delivered that addressed agricultural trade and review the technical barriers these important trade issues, which were utilised in to the trade of Australian agricultural commodities. international trade negotiations (e.g. G20).

Publish a report which focusses on future rural Research was undertaken into the ‘Megatrends’ industries in Australia and host the final session of facing Australian agriculture into the future and ABARES Outlook 2015. was used as the basis of the final session at Outlook to consider the future of rural industries.

The feasibility and opportunities for Peruvian A literature review of purple corn research was purple corn in Australia will be investigated. completed. The global Peruvian purple corn market Additional feasibility studies will be undertaken on has been audited and the major markets are Europe, new products as they emerge during the year. Asia and USA, with Japan and USA having most purple corn products. Growing purple corn in Australia is still being examined. No other feasibility studies were undertaken. The ‘AgNORTH CRC’, if successful, will bring A new $75 million Cooperative Research Centre together private and public partners in a 10 year (CRC) for Developing Northern Australia partnership to collaborate to build profitable and was announced as part of the White Paper on sustainable new agricultural enterprises in northern Developing Northern Australia. This CRC will Australia, with a focus on supply chains and initially focus on agriculture, food and tropical markets to Asia. medicine. It is anticipated that key elements of the proposed AgNORTH CRC will be maintained in the new CRC.

53 Final Reports

Plan for 2014-15 Outcome in 2014-15 Understanding Australian farm Research completed and final report is available on business performance the RIRDC website. Climate change, trade policies and food security: Research completed and final report is available on implications for Australia the RIRDC website. Benchmarking energy use on farm Research completed and final report is available on the RIRDC website. Improved access to Agvet chemicals for Research completed and final report is available on agricultural industries the RIRDC website. Feasibility and opportunities for Peruvian Growing the purple corn in Australia is still being corn in Australia examined, and the project has been extended to finalise this work. Additional reports not foreshadowed in the 2014-15 Improved Agricultural Productivity through Annual Operational Plan enhanced Collaboration and Information sharing among G20 Countries Agriculture in the Riverina: Value, importance and impediments to increased competitiveness Accounting for agriculture in place-based frameworks for regional development A place-based agriculture development framework Nutritional sufficiency of the national food production system Trade Policy Today: A New Approach for a Changed World Emerging Asia, Trade-distorting Policies, and Food Security Concerns: Implications for Australia Economic Evaluation of Investment in the Global Challenges R&D Program Australian sustainable phosphorus futures – Phase 2: Adapting to future phosphorus scarcity Australian sustainable phosphorus futures – Phase 1 The high Australian dollar and agrifood export AusAg LCI – A Life Cycle Inventory database for Australian agriculture

Senior Program Manager Responsible for Program

Vicki Woodburn Ph: 02 6271 4124 Email: [email protected]

54 GOAL 2: Increase profit and productivity in rural industries

VV 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 and in new, developing and environmental benefits established industries. 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 a 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 2 research programs

There were 11 RIRDC research programs in Goal 2 in 2014-15: • Chicken Meat • Fodder Crops • Honey Bee and Pollination • Horses • Pasture Seeds • Rice • Essential Oils and Plant Extracts • Animal Industries (New, Developing and Maturing) • Plant Industries (New and Emerging) • Tea Tree Oil • Wildflowers and Native Plants

55 Chicken Meat

Summary of Research Program and Industry

The RIRDC Chicken Meat program is funded by statutory R&D levies paid by industry participants on meat chickens hatched. In March 2015 ABARES forecast that chicken meat production would grow 3.8 percent over the year, from 1,084kt in 2013-14 to 1,125kt in 2014-15. Per capita consumption was forecast to reach 45.4kg in 2014-15 and continue to grow over the next five years to an estimated 49.2kg pa by 2019-20, maintaining chicken meat’s position as Australian consumers’ most consumed meat. Over the course of the year, the Chicken Meat program finalised and commenced the implementation of a new Communications Plan for the Program. This has significantly strengthened program activities and outcomes in the area of communication, extension and technology transfer. One element of this has involved the initiation of a new series of summary publications, referred to as grower guides or guidelines, which bring together in a more user friendly format the findings from more detailed research funded by RIRDC and others. This was the first year of implementation of the Chicken Meat program’s five year RD&E Plan. The following priorities are identified in the Plan, remain highly relevant to industry and all were progressed in the course of 2014-15: 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. Aim

Stimulate and promote R&D that will deliver a productive and sustainable Australian chicken meat industry that provides quality wholesome food to the nation. Total Program Expenses

2013-14: $2,552,845 2014-15: $2,203,880

This budget excludes program administration and management costs, which included $118,428 for R&D management services paid to the Australian Chicken Meat Federation Inc. Stated Priorities for 2014-15

• Evaluate strategies for improving the welfare of chickens during grow-out and transportation. • Review measures that can be taken which reduce biosecurity risks posed by wild birds to meat chickens. • Determine the viability of a net energy system of feed formulation for meat chickens. • Optimise whole grain feeding strategies for improved performance of meat chicken production. • Evaluate a new technology for diagnosing important poultry disease agents. • Invest to resolve the identity of the key factors that impact on sorghum starch digestibility for meat chickens.

56 Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Science-based review of the key factors affecting A science-based review of recent literature meat chicken welfare completed, and strategies pertaining to a number of key factors affecting developed for improving the welfare of chickens meat chicken welfare was completed, and will during transportation. provide valuable input into the development of national standards and guidelines for poultry welfare to be progressed in 2015-16. A critical review will be prepared which will assist in A critical review was completed of strategies and industry planning measures that minimise potential technologies that could potentially be adopted spill-overs of avian influenza (and other avian by farmers to deter wild birds, particularly diseases) from wild birds to commercial flocks. waterfowl, from potentially contaminating meat chicken flocks. Validation of laboratory-based net energy prediction Validation trials, aimed at demonstrating the equations in feeding evaluations, including at a viability and value of feed formulation on a net commercial level, to inform feed formulation on a energy basis for commercial meat chickens, were net energy basis. completed. Further validation is required before this system can be fully transferred to industry. Development of more effective whole grain feeding Initiated research investigating different whole strategies, after gaining a better appreciation of grain feeding regimes which will provide a greater how whole grain feeding drives improvements in understanding of the mechanisms by which whole efficiency of feed conversion and energy utilisation. grain feeding leads to improvements in meat chicken productivity, and which will develop and test more effective whole grain feeding strategies. Expansion of the suite of low-cost, sensitive and Developed and made available for the industry’s specific tests for the detection of key poultry use, new molecular and serological tests for avian pathogens, thereby facilitating early intervention. nephritis virus. Developed new, low cost LAMP- based techniques for detecting a number of other poultry disease agents. Definition of the role of at least one key nutritional Significant progress made towards defining the factor that may be responsible for reducing sorghum key factors in sorghum that negatively impact on starch digestibility, thereby contributing to the performance of meat chickens fed sorghum-based inconsistent or sub-optimal performance of flocks diets. A workshop is being planned in 2015-16 on sorghum-based broiler diets. to communicate the findings of this research to industry nutritionists. Additional deliverable not foreshadowed in the Guidelines, case studies and online tools for meat 2014-15 Annual Operational Plan. chicken growers were published in November 2014. This suite of tools provides growers with an introduction to roof-top solar photovoltaic (PV) electricity generation, case studies that investigate the viability of reducing operational costs at two meat chicken farms through the installation of rooftop solar PV, and an assessment tool to help growers assess whether installing a solar PV system is likely to be financially viable for their farm.

57 Final Reports

Plan for 2014-15 Outcome in 2014-15 Communication Plan for the A new Communication Plan for the Chicken Meat Chicken Meat Program Program was developed and its implementation commenced in the course of the year. Review of evidence to underpin development of Report on the review has been delivered and welfare standards and guidelines is being used as input in the development of national animal welfare standards and guidelines for poultry. Implementation of a net energy system for the Final report delivered, and consideration will now Australian chicken meat industry be given to what additional research or activities need to be undertaken in order for a net energy system to be effectively transferred to industry. Available and retainable phosphorus of Final report delivered and will be feedstuffs for broilers published in 2015-16. Optimization of Australian protein meals Final report delivered and will be published in 2015-16 and the findings from the project communicated to both industry nutritionists and oilseed crushers. Co-funding contribution to National Welfare Final report on this collaborative capacity building RD&E Capacity Building Project project was delivered and demonstrated significant benefits flowing from this investment, such that a further three years of co-investment has been embarked upon. National agricultural manure management Three out of four projects to which the Chicken program (NAMMP) Meat Program contributed in this large collaborative program were completed and the outcomes communicated to a workshop of industry and government stakeholders. Final reports on all these projects will be delivered in 2015-16. Nuffield Australia Farming Scholarships – The report on this Nuffield scholar’s study Guy Hebblewhite tour has been completed and published by Nuffield Australia. Campylobacter dynamics in free-range & Final report delivered and will be conventional farming systems published in 2015-16.

External Research Manager Responsible for Program

Dr Kylie Hewson Ph: 02 9929 4077 Email: [email protected]

58 Fodder Crops Summary of Research Program and Industry The fodder and silage industry is a $2 billion-a-year industry. There are strong export growth prospects for Australian fodder in China, Vietnam, the UAE and Korea. The fodder program fits within the established industry category in the RIRDC industry life cycle analysis. The program’s RD&E activities are funded by industry voluntary contributions and RIRDC core funds. The fodder RD&E program has reached a point where a different financial model is required – both the industry and RIRDC are working towards transitioning to new financial and program arrangements. Aim 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

2013-14: $455,962 2014-15: $413,361

Stated Priorities for 2014-15 • Increase productivity in fodder through improved oaten hay and vetch varieties for hay and silage. Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Development of new oaten hay and vetch varieties Seed increase for a new oaten hay variety has for hay and silage production. been initiated for commercial release in 2017. Additionally, over 1,500 oaten hay lines were assessed in the disease nursery, and prospective lines then screened in hay quality and agronomic trails in South Australia and Western Australia.

Final Reports

Plan for 2014-15 Outcome in 2014-15 Future proofing fodder quality analysis for Australia An independent analysis for a consistent, accurate, efficient and cost-effective fodder analysis service was completed and the results were presented to RIRDC, the Australian Fodder Industry Association Board and the Quality Evaluation Committee participants and stakeholders for industry consideration and implementation.

Senior Program Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]

59 Honey Bee and Pollination 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 Innovation Australia, with investments made to deliver the RD&E Plan. RIRDC approved a new Plan in May 2015. The beekeeping industry has implemented a National Bee Biosecurity Program. Increases in the honey levy, effective 1 July 2015, will fund the National Bee Biosecurity Program to be managed by Plant Health Australia. Underpinning the National Bee Biosecurity Program will be a Biosecurity Code of Practice. Beekeepers reviewed, commented and revised a draft Code of Practice this year. The Code of Practice will provide a clear framework for Australian beekeepers to engage in best-practice biosecurity. The beekeeping industry has experienced lower honey production this financial year, due to drought conditions and bushfires that burnt hives and nectar producing trees. Levy to the program this financial year was about 10 percent lower than average. Pollination services were provided by beekeepers to many crops, with almonds continuing to be the industry that requires and demands the largest number of hives. Aim

Support RD&E that will secure a productive, sustainable and more profitable Australian beekeeping industry and secure the pollination of Australia’s horticultural and agricultural crops. Total Program Expenses

2013-14: $1,061,537 2014-15: $1,157,160

Stated Priorities for 2014-15

• Improve the National Bee Pest Surveillance Program to increase the likelihood of intercepting an incursion of Asian honey bees that could harm the Australian beekeeping industry and industries reliant on honeybees. • Australian honeybees to assist the re-opening of export markets for live bees; development of a code of practice that will specify best practice disease and pest management; and release a website known as ‘BeeAware’. Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Continue with a modified National Bee Pest The National Bee Pest Surveillance Program Surveillance Program to assist in reducing the continued to be delivered and assisted the likelihood of exotic bee pests and pest bees identification of incursions of exotic bee becoming established in Australia. pest and pest bees.

60 Plan for 2014-15 Outcome in 2014-15 Results of national survey of pathogens in The results of the national survey will be published Australian honeybee will be made available for use in the first half of 2015-16. in market access negotiations.

A code of practice for the honeybee industry will Consultation on the draft Code of Practice be released which specifies best practice disease and was undertaken and the code is expected to be pest management. finalised in 2015-16.

The ‘BeeAware’ website available as an authoritative The ‘BeeAware’ website was launched and the source of material about Varroa mite, for use by number of subscribers to the regular website beekeepers and pollinator-reliant industries. newsletter is growing. The website is becoming a go-to website for beekeepers and pollinator- reliant industries.

Final Reports

Plan for 2014-15 Outcome in 2014-15 Update and reprint of the book Beekeeping The book named ‘Australian Beekeeping Guide’ was published on the RIRDC website. Development of a Code of Practice and National The National Bee Biosecurity Program was Bee Biosecurity Program developed that led to an increase in the statutory levy to fund biosecurity under the Emergency Plant Pest Response Deed. The Code of Practice is expected to be finalised in 2015-16. International Union for the Study of Social Insects Sponsorship was provided to the International Union for the Study of Social Insects to include an industry workshop at their conference and to allow an international researcher to speak at the conference and an industry conference. T2M Develop an attractant specific to A The project was completed and a summary of cerana Java strain the project will be published on the RIRDC website in 2015-16. Upgrading knowledge on pathogens (particularly The project was completed and a report of viruses) of Australian honeybees the project will be published on the RIRDC website in 2015-16. Development of an Australian Bee Health and The ‘BeeAware’ website was launched and the Management website website is becoming a go-to website for beekeepers and pollinator-reliant industries. Communication for the Pollination Stakeholders of the Honey Bee and Pollination Program 2013-15 Program learnt about Program outputs through media releases and stories published in industry newsletters and journals. Compatibility of management objectives on public A report of the project and fact sheets for each lands with beekeeping of the States and Territories were published on the RIRDC website.

Senior Program Manager Responsible for Program Dr Dave Alden Ph: 02 6271 4128 Email: [email protected]

61 Horses Summary of Research Program and Industry RIRDC supported a levy submission made by Thoroughbred Breeders Australia in November 2013, seeking to establish a statutory levy for the Australian Thoroughbred industry. However, the government advised in August 2015 that it would not support the proposal for a levy. Ongoing projects drew down on the program’s reserves with only one new project funded through the program – an economic evaluation of investment in the program. Aim

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

2013-14: $276,623 2014-15: $74,584

Stated Priorities for 2014-15

Continue to work with the Thoroughbred horse industry in the expectation of the introduction of an R&D levy and conclude research including into an adenoviral vector vaccine, macrocyclic lactone resistance and injury prevention in young racehorses. Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 A vaccine to prevent Rhodococcus equi infections is The developed vaccine proved to be successful in trials on mice as the next step toward effective in mice. commercialisation.

Assessment of how to reduce worm populations While this study provided no proof of macrocyclic in horses that are resistant to macrocyclic lactone resistance among the study cyathostomin lactone products. populations, revision of the current worm control strategies of horse breeders, owners and managers is needed, with recommendations included in the summary of the project published on RIRDC’s website to be published in early 2015-16. Assessment of the future athletic performance of A summary of findings will be published on critically ill Thoroughbreds foals. RIRDC’s website in early 2015-16.

A more accurate diagnosis of inflammatory airway While further research is recommended, a disease in racehorses. more accurate method for accurate diagnosis of inflammatory airway disease was identified.

62 Final Reports

Plan for 2014-15 Outcome in 2014-15 An adenoviral vector vaccine against A summary of the findings was published on Rhodococcus equi RIRDC’s website. Macrocyclic lactone resistance in Australian horses The project was completed and a summary of the findings will be published on RIRDC’s website in early 2015-16. Working towards a more accurate diagnosis of A summary of findings was published on inflammatory airway disease RIRDC’s website. Short term and future athletic performance of The project was completed and a summary of the critically ill equine neonate findings will be published on RIRDC’s website in early 2015-16. Antimicrobial susceptibility patterns of bacterial A summary of findings was published on isolates from horses RIRDC’s website. Use of the guinea pig as a laboratory model for A summary of findings was published on Equine Amnionitis and Fetal Loss RIRDC’s website. Developing training programs to prevent injury in A summary of findings was published on young racehorses RIRDC’s website. Laminitis treatment by regional drug delivery to A summary of findings was published on the horse's foot RIRDC’s website. Targeting blood cell activation and clotting A summary of findings was published on dysfunction in equine endotoxaemia RIRDC’s website. Determining forces generated using a padded whip A report of the project was published on and impacts on the horse RIRDC’s website. Economic evaluation of investment in the A report of the project was published on Horse RD&E program RIRDC’s website.

Senior Program Manager Responsible for Program Dr Dave Alden Ph: 02 6271 4128 Email: [email protected]

63 Pasture Seeds

Summary of Research Program and Industry

2014-15 was the second year of operation of the Five Year RD&E Plan for the RIRDC Pasture Seeds program. The Pasture Seeds program focuses on a subset of all pasture seeds produced in Australia, with the levy derived from certified, temperate pasture legumes – lucerne, medics, Serradella, sub-clover and clover. The majority of the levy is derived from the certification of lucerne seed. The gross value of production for the levied varieties of pasture seeds in 2014-15 was about $56 million, up from $40 million in 2012-13. Industry export statistics indicate that lucerne seed exports increased from 8,400 tonnes in 2013 to 10,200 tonnes in 2014, with the major share sold to Saudi Arabia and the USA. The 2015 seed harvest produced mixed results due to the dry spring and lucerne seed wasp damage prior to harvest. Aim

To invest in prioritised RD&E that maximises the opportunities and minimises the risks for a profitable and environmentally sustainable temperate pasture seed industry, and that creates a domestic and global demand from this reputation. Total Program Expenses

2013-14: $294,538 2014-15: $270,645

Stated Priorities for 2014-15

Support the increased productivity and sustainability of the pasture seeds industry through development of new varieties, working with the Australian Seeds Federation to implement Best Practice Guidelines, to partner with the Pasture Renewal Initiative, and to continue to trial the effectiveness of fertilizers and varieties.

64 Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 A field day for growers to demonstrate the Lucerne Australia hosted the Annual Trial results of the lucerne variety and fertiliser seed Site Field Day on 2 March 2015 for growers to production trials. demonstrate the results of the final year of the lucerne variety trial and the third year of the trials to evaluate alternative fertilisers to maximise lucerne seed yield. More than 50 lucerne seed growers attended. Lucerne Australia to deliver a conference and Lucerne Australia has provided a conduit for R&D workshops around dodder detection, and deliver results from the Pasture Seeds Program and has articles on current R&D results. continued to work with growers, Natural Resources South East and SARDI on weeds.

Participation in the Pasture Renewal Initiative to The Pasture Seeds program now sponsors and increase the R&D information delivery channels actively participates in the Pasture Renewal to increase productivity and size of the domestic Initiative, working with the newly established market seed throughput by provision of information networks to help distribute R&D results, outcomes on the value of pasture renewal. and news from the program. Assist the Australian Seeds Federation in creating a The Australian Seeds Federation scoped a project set of best practice guidelines for the management of that included best practice guidelines for the adventitious presence in lucerne and increasing the management of adventitious presence in lucerne adoption and use of certified seed. and increasing the adoption of use of certified seed, but due to competing priorities this proposal was not supported. Additional deliverable not foreshadowed in the The program contributes to the Australian Pastures 2014-15 Annual Operational Plan Genebank, which aims to acquire, document, conserve, maintain and distribute plant genetic resources of pasture and forage species of actual or potential value to Australian agriculture.

Final Reports

Plan for 2014-15 Outcome in 2014-15 Development of molecular markers for A fast and reliable cultivar identification technique cultivar identification in subterranean clover seed was developed. This proof of concept has led to a further project being supported that extends the work to several forage and pasture legume species. Drop tube irrigated lucerne seed, herbage yield and The evaluation of the performance of 24 lucerne plant persistence evaluation seed varieties under a drop tube, centre pivot irrigation system is available to allow producers to make informed choices about lucerne varieties.

Program Manager Responsible for Program Margie Heath Ph: 02 6271 4145 Email: [email protected]

65 Rice

Summary of Research Program and Industry

The rice industry GVP for 2014-15 was $292,536,471, up from $271,775,437 in 2013-14. The industry faces challenges around restricted water availability, loss of important chemicals, updating on farm management procedures and the increasing cost of inputs. The RIRDC Rice RD&E program has delivered a new and valuable rice variety called Topaz, assisted in developing and delivering information on efficient fertiliser, water use and rice management techniques, as well as supporting a number of developing leaders through Nuffield Scholarships. The RIRDC Rice RD&E program is an established industry, funded by a statutory levy. Aim

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

2013-14: $4,349,127 2014-15: $4,857,379

Stated Priorities for 2014-15

Support the increased productivity and sustainability of the rice industry through development of more profitable varieties of rice, researching solutions to pests and diseases, implementing precision agriculture methods, examining the development and feasibility of new products like biodegradable polymer sheeting, and investigating the potential of rice production in the Ord.

Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Review of the alternative uses of rice straw. A document has been produced and will be delivered at a rice seminar strategy day in August 2015 for the industry to consider.

Determine the social factors that will influence the Interviews of farmers across three irrigation areas, rates of adoption of R&D. as well as private consultants, precision agriculture specialists, and retail agronomists have been completed. A comprehensive literature review has also been completed that researches the drivers and barriers to technology adoption at a macro, meso and micro level of technology uptake. The next phase of the project will be to analyse the data and to communicate the findings.

66 Plan for 2014-15 Outcome in 2014-15 Evaluation of growth regulators. Consultations with chemical companies were held regarding the registration status of two anti- gibberellins. Replicated trials were conducted during the 2014-15 season to evaluate these compounds. Reduction of rice panicle height and crop lodging scores were recorded, but rice grain yields were also depressed. Lower application rates will be assessed next season in an attempt to maintain grain yields whilst reducing the potential for rice crop lodging. Modernising rice data collection systems. A review of the Geographic Information System (GIS) has highlighted an increased need for training, help days and more “how to” information sheets – this has been implemented for growers. A mobile app for the independent loading of information to the GIS is currently in development. This means that information can be entered onto a phone or tablet and be stored until internet connectivity is strong enough when it will be downloaded onto the GIS. This addresses the internet problems that many growers encounter. Determining rice greenhouse gas emissions The impact of water and residue management and soil carbon. practices on greenhouse gas fluxes in flooded rice, as well as residue and nitrogen fertiliser management on greenhouse gas fluxes in subtropical aerobic rice is ongoing. Also ongoing is the work to determine emission factors for N²O from current farming practices and the highest impact mitigation options in flooded temperate and subtropical aerobic rice systems. Review optimal sowing rates and resulting Replicated trials support last year’s experiments row spacing for maximum yield and water use which confirmed that there is no reduction in grain efficiency of rice. yield from plant populations down to 50 plants/ m². This research was delivered to growers through the rice extension network, the annual field day and pre-season meetings. Investigate how to improve rotational crop Disc ploughs were constructed and fitted to a half establishment options following rice. track Yanmar tractor and another on a Kubota 30hp tractor fitted with steel wheels for trafficking wet fields. Experiments will commence to evaluate the capability of these ploughs under a range of rice stubble and soil conditions and exhibited at the rice annual field day. Assess rice yield variability in the Australian rice Farmers are beginning to implement precision industry in order to develop rice industry precision techniques from mid-season workshops where 115 agriculture best management practices. farmers and industry representatives attended, and three field days. A second farmer case study booklet has almost been ompleted, focusing on field levelling with GPS Control. A Fast-Track Adoption program is being run in partnership with the Rice Growers Association. Another project is setting up to benchmark the relationship between water productivity and yield variability to be able to benchmark water-use efficiency across the whole industry and enable farmers to identify opportunities to improve productivity and assess the impact of production management decisions. Trials to determine profitable rice options for A trial to determine profitable rice options for the the Ord district. Ord district has finalised with one variety, Viet 1, being a standout. A demonstration day for the trial was held. A number of published scientific articles, as well as fact sheets have been delivered.

67 Plan for 2014-15 Outcome in 2014-15 Deliver best herbicide use summaries and presenting Thirty one field days were presented in the three at associated field days. years of this project to assist in the dissemination of trial results and encourage exchange of experience by growers and agronomists. Best herbicide use summaries were distributed at demonstration plots, at the field days presented. Additionally, a Group G chemical is now under consideration for commercial registration. Also, ground spray options have been enhanced through testing and adoption of post-flush pre-emergence herbicides for drill sown rice avoiding the need to spray by air and reducing the potential for spray drift. Farmer meetings will be held to encourage the Many growers utilised the NIR tissue test services accurate use of NIR tissue test services. to predict rice tissue nitrogen content and subsequent nitrogen top dressing recommendations in the 2014-15 season.

Provision of information through field days and Information has been presented at field days and presentations about chemicals for snail control, best farmer meetings on chemicals that can be used for herbicide use, and investigations into rice blast races snail control, best herbicide use, and investigations present in Australia. into rice blast. A new chemical for snail control is in the process of being commercialised. A herbicide is being prepared for APVMA review. Rice blast material for incorporation into rice varieties has been sent to the rice breeding program. Molecular markers, protein profiles and germplasm A number of methods have been developed that will be developed to deliver new varieties of rice. will allow reliable measurement of the composition of rice storage proteins so that the Australian rice industry can breed varieties with higher grain quality. Additionally, several cold tolerant lines have been identified and preliminary analysis has identified a number of markers. Finally, molecular markers for four durable sources of rice blast resistance gene markers have been delivered to the rice breeding team. A trial site will continue to be assessed to determine The degradable polyolefin film resulted in the benefits of degradable polymer film use significantly higher plant populations and higher in a rice system. germination rate, but this was not translated in a better growth over the crop season. It will be tried again next season. Determine the feasibility of the use of The research has demonstrated that microwave microwave technology to manage weeds in a rice treatment of in-situ soil can effectively kill farming system. barnyard grass weed plants and their seeds in the top 2cm of soil. Additionally, in replicated pot trials the mean grain yield for wheat, canola and rice was significantly higher than the control. The microwave treatment also killed nematodes and snails. It is becoming evident that microwave soil treatment could be considered more as a benign version of soil fumigation and conditioner than simply as a replacement herbicide. A PhD project to determine value adding Analysis of the bioactivities of rice bran protein opportunities for a rice processing by-product. hydrolysates has been completed and the findings around the glutelin hydrolysates have been published in the Journal of the Science of Food and Agriculture. Another manuscript based on the findings on the bioactivities of albumin hydrolysates is in preparation.

68 Final Reports

Plan for 2014-15 Outcome in 2014-15 Agronomic options for profitable rice-based farming A trial to determine profitable rice options for the system in northern Australia Ord district has finalised with one variety, Viet 1, being a standout. A demonstration day for the trial was held. A number of published scientific articles, as well as fact sheets have been delivered. Rice Research Partnership (Rice A new premium fragrant rice variety called Topaz Varietal Improvement) was delivered to the Australian rice growers. It will create new opportunities in the higher value rice markets, and in market testing in Hong Kong, Topaz outperformed other fragrant rice varieties for taste, appearance and flavour. Rice NIR & remote sensing Considerable effort was undertaken to improve skills at collecting plant samples for the NIR Tissue Test Service and promote the benefits of undertaking the test. Over the three years of this project, 2,243 farmers attended meetings, discussions or field days where the NIR Tissue Test service was promoted. Improving pest and disease biosecurity in the This project was extended to assist with Australian rice industry the commercialisation of the new chemical for snail control. Australian rice weed management Thirty one field days were presented in the three years of this project to assist in the dissemination of trial results and encourage exchange of experience by growers and agronomists. Best herbicide use summaries were distributed at demonstration plots, at the field days presented. Additionally, a Group G chemical is now under consideration for commercial registration. Also, ground spray options have been enhanced through testing and adoption of post-flush pre-emergence herbicides for drill sown rice avoiding the need to spray by air and reducing the potential for spray drift.

Program Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]

69 Essential Oils and Plant Extracts

Summary of Research Program and Industry

The RIRDC Essential Oils and Plant Extracts program represents a wide variety of industries and end uses. Industries that use essential oils or plant extracts include pharmaceutical, industrial and food. The Essential Oils and Plant Extracts program fits within the mature industry category in the RIRDC industry life cycle analysis. The RD&E activities are funded by industry voluntary contributions and RIRDC core funds. Management of Myrtle rust is a serious threat to a number of important species that produce oil for the Essential Oil industry and is showing potential to become more widespread. Research outcomes have been delivered to address this critical issue. Aim

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

2013-14: $423,838 2014-15: $181,555

Stated Priorities for 2014-15

• Determine the safety and efficacy of essential oils and plant extracts for cosmetic and animal health end uses. • Determine key agronomic parameters for new, developing and maturing plant-based industries (e.g. integrated pest management, varietal selection, biosecurity management, irrigation scheduling, nutritional requirements etc.).

Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Develop nano-encapsulation of a native Innovative products for the food, feed and plant extract to test for efficacy of an animal pharmaceutical industries using nano-delivery health application. systems with plant extracts have been successfully proved to be able to deliver bioactive plant extracts to inhibit disease organisms in animal healthcare applications. More research is required to further test these nanoemulsions at a pilot scale before large scale commercial trials can begin.

70 Plan for 2014-15 Outcome in 2014-15 Varietal improvement and new product The varietal improvement ofCentipeda development for the Centipeda industry. cunninghamii is focussing on delivering selections with resistance/tolerance to chrysanthemum white rust, and manipulating flowering synchrony to optimise time of harvest to maximumise yield of bioactive compounds. Another project is continuing to develop a natural plant extract with efficacy in controlling microbiological contamination in fresh produce, particularly during supermarket storage. Agronomic parameters developed and documented The agronomic and extraction parameters for for the Centipeda industry. Centipeda cunninghamii is in the process of being evaluated for superior yield and level of bioactive compounds, especially in other locations in Victoria and southern states. Pests and diseases have been monitored in the different locations, and tolerance/susceptibility to chrysanthemum white rust has been examined. Additional deliverables not foreshadowed in the Two newsletters from the Essential Oil Producers’ 2014-15 Annual Operational Plan Association of Australia included information about the latest R&D from the RIRDC program, as well as more broadly, and was distributed to the Essential Oil Industry participants.

Final Reports

Plan for 2014-15 Outcome in 2014-15 Discovery of genetic resistance markers to Myrtle The project identified genetic resistance markers to rust in Myrtaceae Myrtle rust. Industries have been informed. Myrtle rust screening in lemon myrtle provenance Assessment of the disease was alarming. The plantings (Pt 2) lemon myrtle species was ranked as being highly susceptible to the disease. The good news is that 60 clones of those screened with the disease were found to be resistant to the disease. These plants have being re-inoculated to verify the results from the first screening, and then will be planted out in the field for breeding stock. This project was delayed due to an extended hot dry period preventing the planting of these very important clones out in the field. Nano-encapsulation of plant extracts for targeted A proof of concept has been proven and work delivery in healthcare towards conducting commercial trials is being undertaken.

Senior Program Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]

71 Animal Industries (New, Developing and Maturing)

(Buffalo; Camelids; Crocodile; Dairy goat; Dairy sheep; Farm dogs; Game birds; Marron, Mulloway; Polychaete worms; Rabbit; and Redclaw) Summary of Research Program and Industries

The New, Developing and Maturing Animal Industries program includes both levied and non-levied industries. While many RD&E opportunities 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 has its own sub-plan within the broader RD&E Plan. The Plan also captures the RD&E objectives and strategies 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 RD&E as described in 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, developing and maturing 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 and buffalo). To be commercially viable, many enterprises need to move from being ‘hobby farms’ to being businesses that adopt best practice in all facets and embrace new technologies. Aim

To conduct RD&E for new and developing animal industries that contributes to the profitability, sustainability and productivity of regional Australia. Total Program Expenses

2013-14: $899,376 2014-15: $803,743

Stated Priorities for 2014-15

• Implement the New Animal Industries RD&E Five Year Plan, and conduct RD&E for new and developing animal industries that contribute to the profitability, sustainability and productivity of regional Australia. • Continue breeding program for working dogs using genomic technologies to reduce the cost of wastage, and improve behavioural and health traits.

72 Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 2014-15 is the first year of implementation of the Investments were procured new Five Year Plan and research proposals will be consistent with the Plan. sought and contracted during the year against the priorities of the Plan. Identification of desirable behavioural and health The outcomes will be published on RIRDC’s phenotypes in Australian working dogs will be website in 2015-16. undertaken, and a breeding plan which shares the insights from the research will be made available for breeders to use to reduce wastage in the industry.

Final Reports

Plan for 2014-15 Outcome in 2014-15 Marron production enhancement The project was completed and a report of the project will be published on RIRDC’s website in early 2015-16. Developing an effective diluent for transport A summary of the finding was published on of rabbit semen RIRDC’s website. Development of a polychaete worm aquaculture The life of the project has been industry in South Australia extended into 2015-16. Molecular selection tools for the Australian A report of the project was published on crocodile industry RIRDC’s website. Optimising mulloway farming through better feed A report of the project was published on and hatchery practices RIRDC’s website. Developing assisted reproductive technologies in A report of the project was published on camelids, especially the Alpaca RIRDC’s website. Valuable behavioural phenotypes in The project was completed and a report of the project Australian farm dogs will be published on RIRDC’s website in early 2015-16. Alpaca immunoglobulins phase 2 The project has been completed and the researcher is considering how to commercialise the findings. Genetic improvements in Australian water The life of the project has been buffalo (xtn PRJ-634) extended into 2015-16. Indigenous Pastoral Project evaluation component The manual has the potential to become an effective tool for the expansion and development of the Indigenous pastoral industry. Optimising genetics, reproduction and nutrition of A report and summary of findings was published dairy sheep and goats on RIRDC’s website. Improving feeds and feeding practices for the A report of the project was published on redclaw aquaculture industry RIRDC’s website. Emerging animal and plant industries: Their A report of the project was published on value to Australia RIRDC’s website. Selective breeding programs for game birds and A report of the project was published on ratites – developing a knowledge base and tools RIRDC’s website. Characterisation of buffalo milk, cheese and A report of the project was published on yoghurt properties RIRDC’s website.

Senior Program Manager Responsible for Program Dr Dave Alden Ph: 02 6271 4128 Email: [email protected]

73 Plant Industries (New and Emerging)

(Carob; Coffee;Dates; Ginger; Native foods; Native grasses; Quinoa; Teff; and Truffles) Summary of Research Program and Industries

Supporting the establishment of new and emerging industries in the Australian agricultural sector is an important facet of RIRDC’s investment. The New and Emerging Plant Industries program covers a suite of investments related to plant industries that are at various stages of industry development and areas. Some are not commonly found in the Australian diet, however are common in international diets. For example, Teff is a very new product in Australia that is popular elsewhere around the world. Some industries are developing through a healthy eating trend, such as quinoa which is gathering a concerted interest from a wide variety of Australian farmers. Some industries are focused on extremely high value markets, like truffles which are becoming well established in Western Australia and Tasmania, but are still developing in other states. All are diversification options that could assist farmers to better respond to environmental or markets risks and pressures and ultimately assist Australian farm profitability. All are in the early stages of industry development and require research and development to enable the continued growth of these areas in Australia. Aim

To facilitate the development of new rural industries based on plants or plant products that have commercial potential for Australia. Total Program Expenses

2013-14: $1,438,363 2014-15: $1,230,807

Stated Priorities for 2014-15

• Determine key agronomic parameters for new, developing and maturing plant-based industries (e.g. integrated pest management, varietal selection, biosecurity management, irrigation scheduling, nutritional requirements etc.). • Establish two genetic orchards of Kakadu Plum to enable assessment of variability across a northern Australian collection. • Increase productivity through investment in the New and Developing Plant Industries by supporting product development for plant extracts to be used in the cosmetic industry, gluten and allergen free foods, exotic tropical fruit, and crop diversification options for farmers. Some industries that will be supported are guar, quinoa, native grasses, dates, wild rice, truffles, hazelnuts, carob, coffee and teff.

74 Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Varietal improvement and new product Inspections of overseas coffee field sites/trials have development for the coffee industry. been completed and promising varieties selected. Negotiations and access to seed is completed. The seed will be transported to Australia in mid-to-late 2015. Agronomic parameters developed and documented A fact sheet explaining how to grow Platysace for the truffle and Platysace industries. deflexa (Ravensthorpe radish) has been developed and the Australian Native Foods Industry Association has been made aware of it for distribution to its interested parties. A truffle growers’ guide has just begun development to gather and document management parameters for growing truffles. Integrated pest management and biosecurity plans A biosecurity plan for the truffle industry is being developed for the truffle industry. developed by Plant Health Australia.

Release a guide which shows the important A guide is being published that shows the agronomic characteristics to consider when important agronomic characteristics to consider producing teff. when producing teff.

Release a guide on how to improve native A number of scientific papers were published grass germination. showing how to improve native grass germination and the appropriate native grass companies have been notified of this research. Productivity of dates will be increased through Over 300 inflorescences from five major work on pollination. commercial date varieties were supplementary pollinated and fruit harvested. The harvested bunches have been weighed and subsamples of fruit taken to determine the fruit characteristics including flesh and seed weight. There were in excess of 7,500 individual fruit that needed to be processed and data entered. A report detailing the best methods and types of pollen to use will be created in the following year. Wild Australian rice will be characterised. The genomes of the two new taxa have been sequenced. Extensive field collection on Cape York has sampled a diversity of populations across the cape. A journalist from the US joined the field trip and prepared an article for a major international magazine. Seed is being grown to generate sufficient rice for sensory and consumer trait evaluation. Publication of outcomes has continued with the “Cover Story” on the distinctness of the Australian rice populations appearing in tropical plant biology. The potential of quinoa as a significant new The project has been implemented with the broadacre crop in Australia will be progressed Department of Agriculture and Food, Western through providing new growers with access to Australia, with significant work occurring to advice on best management practice; and developing establish and determine the intellectual property commercial varieties suitable for Australian broad and freedom to operate for a number of potential acre production. Australian lines expected to be trialled during this project, and commercially released after. A closed production system and germplasm for A closed loop production system for an ornamental ornamental native ginger flowers will be made native ginger flower has been finalised and a very available to growers. successful field day showcased some of the varieties developed in this project and was promoted by some of the industry participants.

75 Plan for 2014-15 Outcome in 2014-15 Establishment of two genetic orchards to underpin Extensive negotiations have been completed with knowledge of variation within the Kakadu Indigenous Land Councils in Western Australia plum population. and the Northern Territory. It was agreed that instead of orchards, that enrichment planting on country and collection of material from these on country sites would be preferable. Demonstration sites established and training This has not progressed due to the time it materials developed for remote/rural communities has taken to complete the negotiations with interested in growing the Kakadu plum industry. the Land Councils.

Monitoring of quality and bioactivity of a Kakadu A harvesting and processing model has been plum processing facility in northern Australia. implemented for the Wadeye people, which is working well for the harvesting and storage of Kakadu plum and will be a good model for other communities interested in adopting this activity. This year 300 pickers were employed and trained on the production, quality control practices, sanitation and hygiene with training material such as posters and videos during the harvesting season. Discussions around scaling up the production operations is occurring with interested Aboriginal commercial entities as numerous requests for a Kakadu plum extract are being experienced. Development of native plant extracts as natural Lemon and anise myrtle have potential as preservatives and functional food ingredients in functional foods and health-promoting ingredients cross industry applications if the unique combination of antioxidants can be maintained during storage and processing. Testing has shown high levels of antioxidant potential. However, the results of antimicrobial assays indicate that plant products utilising both lemon and anise myrtle have great potential as antiseptics or surface disinfectants as well as a role in the food industry for preservation and prevention of microbial spoilage. The virtual absence of antinutrients when used as flavourings should enhance these opportunities. Investigation of the potential for carob as a health Work with Sanitarium Health and Wellbeing Co ingredient in food manufacturing to analyse a number of carob fibre samples prepared using different techniques have been tested and have shown excellent results. This has initiated progression towards potential commercialisation of the project outcomes. Product development work is now in progress. Additional deliverable not foreshadowed in the The review and rejuvenation of the Australian New 2014-15 Annual Operational Plan Crops Website was completed. The New Crops website was redeveloped and a new online address was established (www.newcrops.info). Pages for the 82,000 species have been updated and a keyword and synonym analysis for all species has been completed. A guide for the site was produced and is available on the RIRDC website.

76 Final Reports

Plan for 2014-15 Outcome in 2014-15 Identification of desirable coffee A report was produced and a fact sheet published secondary metabolites and distributed to the coffee industry through the association. Developing a small native vegetable industry based A fact sheet explaining how to grow Platysace on Platysace deflexa deflexa (Ravensthorpe radish) was produced. Agronomic evaluation of Teff in Tasmania A guide was published on the RIRDC website. Broad scale implementation of native grass A number of scientific papers were published showing germination enhancement technologies how to improve native grass germination. Investigating a closed production system for A field day showcased some of the varieties ornamental ginger production developed in this project.

Senior Program Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]

77 Tea Tree Oil

Summary of Research Program and Industry

Tea tree oil is distilled from the leaves of Melaleuca alternifolia. The Australian tea tree oil industry has a farm-gate value in excess of $26 million with 90 per cent of oil exported. The oil is used in an expanding range of uses, particularly in personal care products, like face and hand washes, and products that benefit from containing antiseptic properties. The tea tree oil industry is at the maturing stage of the RIRDC industry life cycle. The R&D program is funded by matching voluntary contributions and on a project-by-project basis. The Tea Tree Oil RD&E program has reached a point where a different financial model is required. Both the industry and RIRDC are working towards transitioning to new financial and program arrangements. Aim

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

2013-14: $533,205 2014-15: $434,857

Stated Priorities for 2014-15

• Determine the safety and efficacy of essential oils and plant extracts for cosmetic and animal health end uses. • Determine key agronomic parameters for new, developing and maturing plant-based industries (e.g. integrated pest management, varietal selection, biosecurity management, irrigation scheduling, nutritional requirements etc.).

Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Determine the efficacy of tea tree oil as a Tea tree oil effectiveness against the bacteria that causes treatment for acne. acne was supported with clinical trials, increasing the acceptability of tea tree oil products for acne treatment. Investigate dermal penetration of tea tree products. A project has been initiated that will assess the dermal penetration of tea tree oil to comply with a recent European Union ruling on levels of tea tree oil in cosmetics. Varietal improvement and new product A project was renewed that will release improved development for the tea tree oil industry. tea tree seeds and clones. The previous breeding project has shown that the improved varieties are 40 percent higher yielding of oil and are a better option economically than improved seedlings. It is expected that even greater yield improvements can be predicted from clones selected during this project. The breeding program will also transition towards being fully industry owned during this period.

78 Plan for 2014-15 Outcome in 2014-15 Integrated pest management and biosecurity plan Integrated approaches to pest and disease developed for the tea tree oil industry management in tea tree were extended to farmers in Far North Queensland and NSW. Options to control a number of pests and diseases were provided to growers (See Final Reports below). Additionally, the biology, epidemiology and management of Elsinoë leaf spot in tea tree continued. Factors conducive to disease development and spore dispersal have been analysed. A selection of fungicides are being tested against Elsinoë leaf spot on tea tree, as well as in leaf litter to reduce the initial inoculum load. Additional deliverables not foreshadowed in the The Tea Tree Oil program is determining a path 2014-15 Annual Operational Plan that will enable the industry to reduce its nitrous oxide emissions by utilising tea tree residues and legumes in the growing system. The Tea Tree industry has: communicated to RIRDC issues requiring an R&D focus; provided a monthly newsletter to growers outlining R&D progress and latest developments; and provided a field days and a symposium for current and prospective tea tree growers.

Final Reports

Plan for 2014-15 Outcome in 2014-15 In vitro activity and clinical efficacy of tea tree oil A number of scientific papers were produced that products against acne supported the use of tea tree oil effectiveness against the bacteria that causes acne. This has the potential to increase the acceptability of tea tree oil products for acne treatment amongst consumers and health professionals both in Australia as well as overseas. Integrated pest disease management in tea tree oil – Tea tree plantations in Far North Queensland and monitoring and extension NSW have been assessed and monitored for Elsinoe, die back, psyllids as well as other pests and diseases to determine if an integrated approach to pest and disease management could be effectively extended to farmers. A range of options for controlling a number of pests and diseases were provided to growers. Specific emphasis was given to integrated pesticide management principles using the ATTIA Pesticide Guide, APVMA permits, withholding periods and soil health. As such, additional data on certain chemicals, critical to an integrated approach to pest and disease management, is continuing.

Senior Program Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]

79 Wildflowers and Native Plants

Summary of Research Program and Industry

Wildflowers account for most of Australia’s fresh flower exports (valued at $6.78 million annually). On the world market, the Australian wildflower industry has a competitive advantage by sourcing new crops and products from Australia’s diverse and unique range of endemic flora. The RIRDC Wildflowers and Native Plants program fits within the maturing stage of the RIRDC industry life cycle analysis. The industry is facing increasing pressure around independent operators who operate in family-run, vertical networks, independent of grower groups. This places financial pressure on those contributing to research on a project-by-project basis for the broader good of the industry through a matching voluntary contribution. The industry has reached a point where the development of industry-wide priorities and an alternative financial model for funding these priorities for the broader wildflower industry will need to be explored. Aim

To manage investment in R&D by the wildflower and native plants industry and government to build a profitable industry through efficient production methods, supply new and innovative products and the sustainable use of land and water resources. Total Program Expenses

2013-14: $302,799 2014-15: $93,940

Stated Priorities for 2014-15

• Determine key agronomic parameters for new, developing and maturing plant-based industries (e.g. integrated pest management, varietal selection, biosecurity management, irrigation scheduling, nutritional requirements etc.).

80 Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Varietal improvement and new product The Australian wildflower and native plants development for the wildflower and R&D Program has projects in place that are in the eucalyptus industries. process of developing unique, high value hybrid cut flowers for kangaroo paw Haemodoraceae( ), waxflower Chamelaucium( ), red flowering gum (Corymbia) and Grevillea. Additional deliverables not foreshadowed in the Extension and communication of the R&D of 2014-15 Annual Operational Plan the Wildflower and Native Plants program has continued through the development and publishing of three bimonthly newsletters, an industry survey to gather data on current trends on domestic and export markets, and support for the 29th International Horticultural Congress 2014.

Final Reports

Plan for 2014-15 Outcome in 2014-15 Defining leaf analysis as a strategy for effective This project established normal ranges of leaf nutrition management nutrient concentrations for Australian and South African native plants grown for commercial flower production. The industry can now use regular leaf analysis as a tool to develop effective nutrition management plans for healthy plant growth and high yields of a good quality product. Short notes were presented in the Wild Flowers Australia newsletters. Individual information fact sheets will be developed and distributed. This work will also be presented at the International Society for Horticultural Science symposium in Perth in August 2015 and included in the published conference proceedings.

Senior Program Manager Responsible for Program Dr John de Majnik Ph: 02 6271 4138 Email: [email protected]

81 GOAL 3: Enhance sustainability across the rural sector

VV 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 about sustainable leadership, on cross sector rural industry use and capacity, skills issues that options that management and pathways impact across offer regional of natural that create industries. economic resources. opportunities. development opportunities.

Goal 3 planned outcomes

• 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 2014-15

There were five RIRDC research programs in Goal 3 in 2014-15: • Bioenergy, Bioproducts and Energy • Primary Industries Health and Safety Partnership • Investing in People • Hendra Virus • Climate Change Research Strategy for Primary Industries (CCRSPI)

82 Bioenergy, Bioproducts and Energy Summary of Program The Bioenergy, Bioproducts and Energy program’s focus is on communication and extension, particularly for primary producers who are considering incorporating bioenergy in their operations. A web-based information portal is providing information about the types of biomass that can be used to create bioenergy and aims to help inform decision-making and identify opportunities for primary producers to engage in the bioenergy supply chain. Aim Bring awareness to the primary industries sector about the opportunities to engage in the bioenergy supply chain as a feedstock producer. Total Program Expenses

2013-14: $201,546 2014-15: $70,226

Stated Priorities for 2014-15 Maintain and add further case studies to “Biomass Producer”, the new communications and extension initiative for the farming community to raise their awareness about the risks and opportunities of feedstock production for bioenergy. Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Biomass Producer website content updated to The Biomass Producer website has been maintained reflect new information for farmers on bioenergy and updated with new content. Two case studies production. Relevant and informative case studies (Powering a distillery on grape waste; and Poultry published to provide primary producers with manure to power in the Darling Downs) were ‘real-life’ examples of incorporating bioenergy developed and published on the website and have been production into their enterprises. amongst the most popular pages. Additional deliverable not foreshadowed in the RIRDC coordinated an application for a national 2014-15 Annual Operational Plan project (Australian Biomass for Bioenergy Assessment) to collect, on a state-by-state basis, data on the location, volumes and availability of biomass, for inclusion on the Australian Renewable Energy mapping Infrastructure (AREMI) platform.

Final Reports

Plan for 2014-15 Outcome in 2014-15 Management of the Biomass Producer website The website continues to be accessible by the public.

Program Manager Responsible for Program Margaret Heath Ph: 02 6271 4145 Email: [email protected]

83 Primary Industries Health and Safety Partnership Summary of Program The primary industries employ around 3 per cent (335,000 employees) of the working population. In rural and regional Australia they are a major source of employment. Implementation of appropriate health and safety (WHS) practices has generally been poor, even though it is well known that most safety-minded organisations are also among the most profitable and that developing a safety culture on-farm pays off – not just by reducing fatalities and injuries. In 2014, there were 54 farm fatalities and for the first half of 2015 there have already been 24 deaths on-farm. In addition to this, there were 182,559 working weeks lost across the cotton, grain, mixed farming and sugar industries over a four year period to 2011-12. This is on top of agriculture, forestry and fishing collectively recording the highest fatality rates of any industry in 2010-11, with 17.64 deaths per 100,000 workers. This is nine times the overall fatality rate of 1.93 deaths per 100,000 workers during this period. Continued poor WHS outcomes in the primary industries have driven RIRDC, together with program partners, to continue to focus on WHS through the Primary Industries Health and Safety Partnership. The program has a strong focus on extension of research that will deliver change in the workplace and better understanding the barriers to adoption of improved practices. Aim To deliver healthy, safe and productive working lives in the primary industries through investment in RD&E to drive sustainable improvements to work health and safety outcomes. Total Program Expenses

2013-14: $144,042 2014-15: $285,982

Stated Priorities for 2014-15

• Invest in RD&E to drive sustainable improvements to work health and safety outcomes for all those working in the primary industries, including agriculture, fishing and forestry.

84 Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Map of the health and safety risks of those Research completed that identifies that major work industries participating in the Primary Industries health and safety risks, in terms of mortality and Health and Safety Partnership. morbidity, to farmers and fishers. Synthesis of existing research from the last 17 years Comprehensive research completed that reviews of the Partnership into a meaningful summary. the previous work undertaken by the PIHSP and identifies the major themes stemming from this body or work. Identification of the barriers to adoption of Analysis of previous work and engaging with improved workplace practices in terms of farmers and fishers was undertaken by this project health and safety. to identify and assess the barriers to adoption of better work practices. Define the responsibilities of employers and The new harmonised legislation was analysed to employees under the new harmonised Work Health identify similarities and differences and support and Safety legislation. materials prepared to assist farmers and fishers meet the regulatory obligations in relation to work health and safety.

Final Reports

Plan for 2014-15 Outcome in 2014-15 A synthesis and review of Primary Industries Health Research report delivered and published and Safety Partnership Publications on RIRDC website. Mapping work health and safety risks in the Research report delivered and published primary industries on RIRDC website. Work health and safety legislative responsibilities Research report delivered and published on RIRDC website. Addressing the barriers to adoption Research report delivered and published on RIRDC website. Additional reports not foreshadowed in the 2014-15 Cross-contamination by chemicals of Annual Operational Plan farming family members WHS for cotton farms (Summary) WHS for fishing (Summary) WHS for sugar cane (Summary) WHS for grain farms (Summary)

External Research Manager Responsible for Program Simon Winter Ph: 02 6281 5257 Email: [email protected]

85 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 initiatives 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 RIRDCRural 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. Aim 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

2013-14: $1,139,410 2014-15: $1,058,991

Stated Priorities for 2014-15

• Enhance the participation and contribution of women in agriculture and rural industries. • Attract and mentor young people with an interest in pursuing a career in agriculture.

86 Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Support Horizon Scholarships in 2014 with In 2014-15, the Horizon Scholarship supported sponsors from research and development 38 students including 15 new scholars and eight corporations (RDCs), government and the graduating scholars. private sector. Sponsor Course 22 of the Australian Rural Graduation of the 21st RIRDC-sponsored Leadership Program and ABC Heywire 2014. Australian Rural Leadership Program course participant. RIRDC supported the 2014 ABC Heywire Summit. Deliver the 2014 Australian RIRDC Rural Announcement of the 2014 RIRDC Rural Women’s Award; seek applicants for the 2015 Award Women’s Award National Winner and Runner-Up and maintain the Award’s Alumni network. occurred in September 2014. Announcement of 2015 RIRDC Rural Women’s Award State and Territory winners.

Final Reports and Scholarship Deliverables

Plan for 2014-15 Outcome in 2014-15 Scholarship – Reproduction and genetic distinction Completed. Scholarship – Tropical Sea Urchin Completed. Scholarship – Development of seaweed-based feeds Completed. Scholarship – Agave-derived ethanol production Completed. on marginal land Scholarship – Development of a vaccine to prevent Completed. Rhodococcus equi infection in foals Tony Byrne Memorial Scholarship top up Completed. 2014 RIRDC Rural Women’s Award Reports from 2014 RIRDC Rural Women’s participants’ final report Award were still proceeding at the time of printing this Annual Report.

Research Manager Responsible for Program Jennifer Medway Ph: 02 6271 4132 Email: [email protected]

87 Hendra Virus Summary of Program RIRDC continued to manage research projects in the National Hendra Virus Research Program which are scheduled for completion in 2015-16 and 2016-17. Hendra virus continues to be a concern in the wider community. Aim To minimise the impact of Hendra virus. Total Program Expenses

2013-14: $502,996 2014-15: $386,822

Stated Priorities for 2014-15 To manage the National Hendra Virus Research Program on behalf of the Australian, New South Wales and Queensland Governments and the horse industry. Projects in the program scheduled for completion during 2014-15 included: • Models to predict Hendra virus prevalence in flying-fox populations. • A national flying-fox monitoring program. • Techniques for early detection and improved diagnostics and therapeutics for Hendra virus infections in horses. • Recommendations to authorities to support decisions to reduce the risk of Hendra virus transmission to horses and humans.

88 Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Models to predict Hendra virus prevalence in The finalisation of this project has been delayed, flying-fox populations. although significant progress has been made on the spatial modelling of fruit bat colony dynamics. A national flying-fox monitoring program. The finalisation of this report has been delayed, although the national flying-fox monitoring program has been developed and implemented and ground counts have been conducted quarterly since November 2014. Techniques for early detection, improved A project developed a number of assays to diagnostics and therapeutics for Hendra virus test horses for Hendra virus infection post infections in horses. vaccination. As the tests require a significant level of interpretation, they will be retained within Australian Animal Health Laboratory. Recommendations to authorities to support A project identified biomarkers for the assessment decisions to reduce the risk of Hendra virus of the risk of Hendra virus spillover from bats into transmission to horses and humans. horses and other susceptible species and provided information on the feasibility of using urine as a non-invasive method for biomarker detection.

Final Reports

Plan for 2014-15 Outcome in 2014-15 Spikes in Hendra spillover: early warning through This project was completed and the final report the bat urinary metabolome will be published on the RIRDC website in early 2015-16. Development of improved diagnostics and This project was completed and the final therapeutics for Hendra virus infections report was published on the RIRDC website in February 2015. Longitudinal cohort study of horse owners This project will now be completed in 2015-16. Models to predict Hendra virus prevalence in This project will now be completed in 2015-16. flying-fox populations Implementing a national flying-fox This project will now be completed in 2015-16. monitoring program Early detection of Hendra virus infection by This project will now be completed in 2015-16. microRNA profiling

Program Manager Responsible for Program Margaret Heath Ph: 02 6271 4145 Email: [email protected]

89 Climate Change Research Strategy for Primary Industries Summary of Program RIRDC is the secretariat for the Climate Change Research Strategy for Primary Industries (CCRSPI). CCRSPI is a collaborative response to the opportunities and challenges posed by climate change for Australia’s primary industries. CCRSPI partners are the federal, state and territory governments, the rural research and development corporations and the CSIRO. Established in 2007, CCRSPI led the development of the climate change cross-sectoral strategy under the Australian Government’s National Primary Industries Research, Development and Extension Framework. CCRSPI promotes and facilitates national collaboration across primary industries on climate change, to identify research priorities and gaps and build capacity for cross-sectoral research efforts. Aim To host the secretariat of the Climate Change research Strategy for Primary Industries and promote collaboration on climate research.

Total Program Expenses

2013-14: $281,383 2014-15: $336,495

90 Other Non-Program Specific Projects

RIRDC invests resources to address cross sectoral RD&E needs to encourage a “partnered response” to shared RD&E activities, in areas where there is no obvious leader for the issue. This has resulted in a number of areas being supported by RIRDC-managed projects. Some of these issues revolved around on-farm diversification. Other areas included finalising measures that will mitigate cyclonic winds in cyclone-prone agricultural areas, the roll-out of a manual about the management of indigenous pastoral lands, and finding cross-industry solutions for a Myrtle rust epidemic. Aim To work and collaborate on issues that impact across industries. Total Program Expenses

2013-14: $426,442 2014-15: $571,921

Stated Priorities for 2014-15

• Complete research to identify an effective response to Myrtle rust for the native foods, tea tree oil, essential oils, plant extracts and wildflowers industries. • Continue to support research into on ground risk mitigation measures that will assist farmers to withstand cyclonic winds. • Support the development of a rice extension network. • Launch an online diversification knowledge hub to assist existing primary producers and new entrants about opportunities in new, developing and established plant and animal industries. • Complete regional-scale projects that focus on productivity, competitiveness and structural change issues as they impact on rural industries and their supporting communities. Completion of existing wet tropics and north west Tasmania projects and a new Riverina study. • Support the roll-out of the step-by-step framework, ‘Managing Indigenous Pastoral Lands’, across northern Australia. • Complete RD&E investments made under the Dynamic Rural Communities Research and Development (R&D) Plan 2009–14, which address transformation of rural communities.

91 Deliverables for 2014-15

Plan for 2014-15 Outcome in 2014-15 Completion of existing wet tropics and north west Projects were completed and reports were published Tasmania projects and new Riverina study. on the RIRDC website.

The Managing Indigenous Pastoral Lands Manual The Managing Indigenous Pastoral Lands Manual to be available on the RIRDC and FutureBeef has been published on RIRDC’s website and is websites and will be delivered on the ground by available through the FutureBeef website. The extension officers in NT, WA and Qld. Manual is being used by extension officers in northern Australia. Reporting finalised for the Dynamic All remaining projects from the Dynamic Rural Rural Communities Research and Communities program were finalised and reports Development (R&D) Plan. were published on the RIRDC website. • Minor use permits obtained for chemical Important information was received and passed treatments of Myrtle rust for the on to relevant industry communication channels native food industry. regarding control of Myrtle rust with chemicals, use of genetic resistance markers and the extreme • Myrtle rust resistance integrated into tea susceptibility of the native wildflower industry to tree and lemon myrtle breeding trials with the Myrtle rust threat. preliminary investigations into rust resistance for the Australian wildflower. Industries impacted by Myrtle rust are now able to respond to Myrtle rust with chemical solutions by applying for emergency permits with the APVMA and by implementing management protocols to reduce the spread of myrtle rust. A Myrtle rust fact sheet for farmers will be developed and available by the end of 2015.. Results of the evaluation of research on trellising, A number of producers from a variety of tropical plant species and defoliants that will improve industries attended and participated in a field the capacity of industries to withstand cyclonic walk through at the trellis trial site on the South winds at field days. Johnstone research station. They learned and saw that defoliation trials where it takes trees two years to recover, stressing that the decision to defoliate trees as a damage reduction strategy should not be taken lightly. They also saw the advantage of rocket pots to produce the best root systems and where it is being tested in the field to evaluate the resilience to uprooting. The trellis area delivered practical information on pruning techniques and flowering and cropping patterns for a range of crops. Yield data collected for guava, mango, carambola and longan show trees on trellis systems are out performing conventional plantings. An economic analysis tool was developed to compare the costs and benefits of trellising and this is available for producers. Multi-peril crop insurance was also explained to growers. Finally, a report on the ‘‘strength of trellis structures’’ is near completion and will give growers some guidelines on trellis design.

92 Plan for 2014-15 Outcome in 2014-15 A coordinated extension network distributing rice The rice extension team conducts regular phone research and development results that involves hook-ups with extension staff from SunRice, public and private extension specialists will be in Murray and Riverina LLS, NSWDPI, RGA, place and tested by the industry for providing their Southern Growers Group, IREC, Western Murray needs at both sowing and harvest. Land Improvement Group and the commercial agronomist network. Feedback from growers via commercial agronomists has assisted in targeting topical issues. The extension website is live and filled with rice research and development information documents, podcasts, videos and links. A web-based Water Budgeting Tool is being developed with Custom Bits Computing. A YouTube channel for Rice Extension is up and running with the Rice Field Day video. Footage from the Herbicide Field Day is being edited into a series of videos. Podcasts are also available. A Twitter account is running where current photos, events and alerts are uploaded. A monthly Rice Extension Newsletter is produced. Development and launch of a web-based The www.farmdiversity.com.au website was platform that will enable Australian farmers to launched, allowing farmers to interrogate their interrogate their options for new crop and animal options for new crop and animal prospects. prospects which they could integrate into their he website includes over 140 plant and farming systems to diversify for resilience and animal entries. increased profitability

Final Reports

Plan for 2014-15 Outcome in 2014-15 Launch of a diversification website – The website launched successfully and current www.farmdiversity.com.au development of entries is finalised. Improving the capacity of primary industries to This project has been extended to collect additional withstand cyclonic winds data on the various trial works. A method to screen new crop prospects This project is ongoing and has been extended for an additional year.

93 94 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 panels 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 internal stakeholders, and industry partners in its deliberations. Board composition

RIRDC’s 2014-15 Board was comprised of nine Directors—a Chairperson, an Executive Director (titled Managing Director) and seven other Nominated Directors. One of the Nominated Directors is the Deputy Chairperson. Board appointments

• The Minister for Agriculture 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. • Seven 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.

95 Board terms

Directors other than the Managing Director are appointed by the Minister and hold office for a specified term not exceeding three years. 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 2014-15, RIRDC had two organisations prescribed under 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 2014-15 occurred as follows: • National Farmers’ Federation, 19 November 2014 • Australian Chicken Meat Federation, 24 November 2014 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 2014-15, the Board operated one committee – the Audit Committee. The record of meetings is taken by the Executive Office Manager. Audit Committee

Chair: M s Roseanne Healy (ceased 30 September 2014) Dr William Ryan (commenced 11 October 2014) Members: M r Michael Guerin (ceased 30 September 2014) Mr Sam Archer (ceased 30 September 2014 Dr Keith Steele (commenced 11 October 2014) Ms Heather Stacy (commenced 11 October 2014)

96 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. The Managing Director and the General Manager, Corporate have a standing invitation to attend these meetings but are not members of the Committee. During 2014-15 the Committee oversighted completion of the statutory financial statements and annual compliance statement, reviewed the Fraud Control and Risk Management Plans, reviewed the Accountable Authority Instructions, directed the internal audit function, and monitored 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. The next Board evaluation will occur during 2016. 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 2015 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 $4,515 for Committee members. Board meetings

During 2014-15 the RIRDC Board held six meetings, all in Canberra. The dates of these meetings were 26 August 2014, 24 September 2014, 4 December 2014, 10 and 11 March 2015, 12 and 13 May 2015, and 22 June 2015.

97 Attendance at Board and Audit Committee meetings Table 7. RIRDC Board Director attendance for 2014-15

Board Audit Meetings Meetings held & Meetings Meetings held & attended eligible to attend attended eligible to attend D Stehlik 6 6 - - M Sleigh 1 2 - - A Campbell 1 2 - - R Healy 2 2 1 1 L Stephens 6 6 - - M Guerin 2 2 1 1 A Johnson 2 2 - - S Archer 2 2 1 1 K Goss 4 4 - - T Hamilton 4 4 - - J Mahoney 4 4 - - W Ryan 4 4 2 2 H Stacy 4 4 2 2 K Steele 4 4 2 2 C Burns 6 6 - -

Induction and continuing education of directors

All new and ongoing Directors received a comprehensive induction program prior to attending their first meeting. 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. Newly appointed Directors underwent a comprehensive induction program prior to attending their first meeting. 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

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.

98 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. Related entity transactions

The decision making process for the Corporation’s financial transactions, including related entity transactions, is guided by RIRDC’s Accountable Authority Instructions 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 the Accountable Authority Instructions 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 section 19 of the Public Governance, Performance and Accountability Act 2013 (PGPA 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 Accountable Authority Instructions. The Accountable Authority Instructions 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.

99 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 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 2014-15 RIRDC managed 261 active and initiated 78 Research Agreements with external organisations, companies or individuals to undertake research for the Corporation. As at 30 June 2015 the Corporation had 193 active and ongoing Research Agreements in place. Consultancy services and selection of suppliers

The consultancies used by RIRDC during 2014-15, the nature of their work, and the cost of their services are listed in the following table. Table 8: Consultancies used in 2014-15

Name of consultancy Nature of consultancy Cost of services Initiated in 2014-15 ($) or ongoing Currie Stakeholder survey 19,680.54 Initiated and Communications Pty Ltd completed in 2014-15 Banki Haddock Fiora Legal services 21,315.28 Ongoing Piper Alderman Legal services 2,117.00 Ongoing Meyer Vandenberg Legal services 11,924.00 Ongoing

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. • 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.

100 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 2014–15. 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 Public Governance and Accountability Act 2013. Risk management

The Corporation’s 2014–2017 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 2014-15, 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 March 2015, 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 2014-16. • 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. 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

101 sufficient funds to be available to cover contracted liabilities and to maintain R&D capacity. Seventy eight 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. The Australian Government also assists in the collection and distribution of the levies. 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 2014-15. 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 22 of the PGPA 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 2014-15. Judicial decisions

No judicial decisions were recorded for 2014-15. Significant events

There were no significant events in 2014-15 to report. Post 2014-15 events

There are no post 2014-15 events to report.

102 The 2014-15 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 the Australian National University, James Cook University and Queensland University of Technology. Appointed 21/04/2010 until 20/04/2013, extended to 30/06/2013. Reappointed 02/08/2013 until 01/08/2016. BA (ANU) ; M. Soc Sci (ECU) ; A. Dip Bus Admin (SAIT) Uni SA ; PhD (UWA)

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 30/06/16. Master of Economics; Bachelor of Arts; Diploma of Education

103 Mr Kevin Goss Mr Goss has served in chief and senior executive roles in research companies, statutory authorities and government agencies covering natural resources and agricultural R&D, water resources and environmental policy, integrated catchment management, natural resources management, land conservation, agricultural extension and communication, and rural social development. Currently Mr Goss is a member of the Biosecurity Council of Western Australia, an Honorary Research Fellow with The University of Western Australia and the independent chair of the Western Australian Marine Science Institution’s R&D Committee. He also consults to clients in agricultural and natural resources R&D. Previously, Mr Goss was Executive Director and Chief Executive Officer for the Future Farm Industries Co-operative Research Centre Ltd (2007-2011) and CEO of the CRC for Plant- based Management of Dryland Salinity (2004-2007). Prior to that he was General Manager Natural Resources and Deputy Chief Executive for the Murray-Darling Basin Commission (1998-2004), Chair of the National Dryland Salinity Program for Land & Water Australia (2000-2004), and Executive Director, Sustainable Rural Development in the Western Australian Department of Agriculture (1995-1998). Mr Goss has a strong professional interest in integration of R&D, industry and community engagement, and education and training in innovation, adoption of new practices and development of public policy to improve farm productivity and natural resource management. Appointed on 11/10/14 until 30/09/17. M.A. (Communication), Michigan State University; B.Sc. (Agriculture) Hons (UWA)

Dr Tony Hamilton Dr Hamilton is a farmer from Forbes, NSW who is currently the managing director of a diversified cropping and livestock business. Dr Hamilton has an interest in new crops, having been involved with the azuki bean industry in NSW, which was also the subject of his doctoral thesis. Dr Hamilton is Chair of the Australian Jojoba Industry Association and former chair of RIRDC’s New and Emerging Plant Industries Committee. Dr Hamilton is a current member of the GRDC’s Regional Cropping Solutions – Irrigation panel. Dr Hamilton also holds a graduate diploma from the Securities Institute of Australia and is a Nuffield Scholar. Dr Hamilton has a keen interest in agricultural RD& E and evidence-based agriculture. Appointed on 11/10/14 until 30/09/17. Bsc.Agr (Hons); PhD (Uni of Syd)

Dr Jan Mahoney Dr Jan Mahoney is currently a member of Dhelkunya Dja Land Management Council, Riding for Disabled Victoria and Secretary of Healesville Indigenous Community Services Association. Dr Mahoney has previously held board positions with Victorian Catchment Management Council, Parks Victoria, Grampians Wimmera Mallee Water, Woor Dungin Ltd, Mali Initiative, ACAS Ltd and the Grains Research and Development Corporation.

104 Dr Mahoney has had a long career in agriculture, beginning as a research scientist to executive roles in the grains and dairy industries and as CEO of the Grainfoods CRC. Dr Mahoney has worked with many organisations in the not-for-profit sector, assisting with strategic and business planning, policy development, performance management, mentoring, project development and implementation. Dr Mahoney has worked in communities in Mali and in Cape York. Appointed on 11/10/14 until 30/09/17. BA; PhD; Grad Dip Business; Grad Cert International Health; Advanced Company Directors Diploma, FAICD

Dr William Ryan Dr Ryan is currently the Chairman of the Agricultural Produce Commission of Western Australia and a member of GRDC’s Western Panel. Dr Ryan also provides independent consulting services to a range of clients in the agricultural sector and has been a member of an international team that reviewed the agricultural education, training and research system of Morocco. Dr Ryan has previously been the CEO of the Kondinin Group (2003-2008) and a senior executive with the Heytesbury Group (1994-2002). In 2005-06 Dr Ryan was a member of the Federal Government’s Agriculture and Food Policy Reference Group. Prior to this, Dr Ryan was involved in animal production research with the Western Australian Department of Agriculture. Appointed on 11/10/14 until 30/09/17. Bachelor of Science in Agriculture (UWA); PhD (UWA)

Ms Heather Stacy Ms Stacy has extensive agribusiness experience with a career in non-executive and executive roles in the corporate, government and not-for-profit sectors within Australia and internationally. From 2008 to 2014, Ms Stacy held senior roles with the Fonterra Co-operative Group in Australia and New Zealand. Previous executive roles included positions with BlueScope Steel, United Dairyfarmers of Victoria, Simplot and Metro Meat International. Ms Stacy has considerable experience in strategic planning and execution, as well as strong skills in commercial management, supply chain, stakeholder engagement, innovation and leadership. Her corporate experience spans the agribusiness, industrial and fast moving consumer goods sectors. Ms Stacy is passionate about the agricultural industry and rural and regional Australia. Ms Stacy is a recipient of the Australian Rural Leadership Program and an ANZAC Fellow. Ms Stacy has held board positions previously with the Victorian WorkCover Authority and Central Bayside Division of General Practice. Appointed on 11/10/14 until 30/09/17. Dip App Sci (Ag); MBA (UofSA); GAICD; Grad Cert Rural Leadership (JCU)

105 Dr Keith Steele Dr Steele has served as a Director on numerous company boards, including as Deputy Chairman of Beef CRC Limited (2006-2013), Deputy Chairman of eWater Ltd (2005-2012), Chairman of eWater Innovation Pty Ltd (2007-2011), Chairman of the South Australia Natural Resource Management Research Alliance (2008-2010), Non-Executive Director of AgResearch Australia Pty Ltd (2000-2001) and Chairman of Analytical Research Laboratories Ltd in New Zealand (1998-2001). Dr Steele is currently Managing Director of Steele Business Solutions Pty Ltd and is also contracted by AusIndustry as a Case Manager for Commercialisation Australia. Previously Dr Steele was Chief Executive Officer of AgResearch Ltd in New Zealand (1997- 2003), a company that had annual revenues exceeding $130 million and a staff of 980. Dr Steele has also served as Chief Scientist (1991-1995) and then Executive Director of the Department of Natural Resources and Environment (1995-1997). Appointed on 11/10/14 until 30/09/17. DPhil (Chemistry) (Waikato University, NZ); MAgrSc (1st Class Honours in Soil Science) (Massey University, NZ); BAgrSc (Massey University, NZ)

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 01/08/16. AICD; Dip Agr Sci; BVSc; MSc; PhD

106 Staff and performance management

RIRDC is a small Government agency, with 20 staff as at 30 June 2015 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. The Federal budget reductions for 2014-15 and deeper cuts in the out years required a restructure of the organisation to reduce internal costs and overheads in order to maximise spend on research, development and extension. This restructure led to a reduction in staff numbers across the Corporation’s Executive, Corporate, Communications and R&D functions. 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. Indigenous employment at RIRDC

For the period 1 July 2014 to 30 June 2015 RIRDC did not employ any indigenous staff. Compliance with general policies of Government

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.

107 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. Table 9. 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 meets the requirements safety arrangements of the Work Health and Safety Act 2011. 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 2014-15, and occurs each year. • A first aid officer 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

108 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 Strategic and Rural Research Priorities. The Strategic Research priorities were replaced with the Science and Research Priorities in May 2015. The new Science and Research Priorities are not reflected in this Annual Report due to the Strategic Research priorities still being relevant for the majority of the 2014-15 year. 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 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.

109 Table 10. The effect of the agency’s actions on the environment

Program Environmental issue Outcomes Rice The Rice Program Further advancement towards the development of continues to fund the cold tolerant rice varieties has continued and research rice breeding program from a number of separate projects are showing that has a goal to develop promise of being able to reduce cold tolerance rice varieties with a further 2 degrees, which translates to a very enhanced adaptation, e.g. large water saving. improved cold tolerance, salinity tolerance, drought tolerance and water productivity, to cope with an evolving production environment. Chicken Meat Reducing greenhouse Demonstrated the value of poultry litter as an gas emissions and alternative source of nutrients for pastures, with increasing soil carbon a particular focus on its potential to make a contribution to soil organic carbon levels. Through the National Agricultural Manure Management Program (NAMMP), investigated greenhouse gas emissions from livestock systems and estimating the agricultural greenhouse gas emissions abatement potential of various livestock manure management options. Environmental Revised the Management System for the chicken Management System industry program, including sections on energy and for the chicken water efficiency. industry Version II Honey Bee RD&E investments to Investment has supported the National Bee Pest and Pollination assist the interception Surveillance Program for a transition period until of exotic bee pests the industry can independently fund the Program, and pest bees at partially through a variation to the statutory levy Australia’s boarder implemented on 1 July 2015. National Rural Issues Assessing A project was completed that captured and presented environmental environmental impact data for Australian agricultural impacts of agriculture commodities (life 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. Animal Industries Improving the This research showed that the public believe (New, Emerging humaneness commercial harvesting is an acceptable form of and Developing) of commercial kangaroo management, as long as it is done by kangaroo harvesting professional and skilled shooters, and the carcases 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.

110 Program Environmental issue Outcomes New and Emerging Water – a The New and Emerging Plant Industries program Plant Industries critical resource included projects that are aimed at finding or improving knowledge on alternative, low-water-use crops including: –– Quinoa – drought-tolerant crop. –– Date palm pollination improvements. –– Development of Chinese Date/Jujube Industry. Overcoming soil loss, The New and Emerging Plant Industries program has salinity and acidity a number of saline research projects including: –– Studies towards the development of a Chinese date (jujube) industry. –– Research on quinoa – salt tolerant super grains. –– Rejuvenation of the new crops website and carob industry development studies. –– Date palm R&D. Sustainable use of The New and Emerging Plant Industries program has Australia’s biodiversity supported research projects on the sustainable use of Australia’s biodiversity including for Kakadu plums, wild rice, native vegetables and native grasses. Responding to climate Some new plants projects, active in 2014–15 were, in change and variability whole or part, aimed at addressing issues of climate change or food security, including: –– Quinoa research. –– Research on alternative grains such as teff. –– Characterising wild rice varieties. –– Date R&D. –– Development of Chinese date/jujube industry. –– Cultivating Australian seaweeds for health and nutritional markets Essential Oils Transition to The chemical control of Myrtle rust has and Plant Extracts management of been investigated. Myrtle rust for new Rural Industries Selections for resistance in lemon myrtle and tea tree have been explored. Tea Tree Oil Integrated pest APVMA permits for chemical options for treating management options pests and weeds for tea tree oil producers. investigated for tea tree production systems Reducing nitrous A project was supported that analysed the resulting oxide emissions and nitrous oxide emissions and increasing soil carbon increasing soil carbon when legumes and the application of tea tree mulch is used in tea tree production.

111 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 panel 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 and videoconferencing 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.

112 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 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. 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: [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.

113 Processing of FOI requests

Upon receipt of a FOI request, RIRDC will provide 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, the FOI applicant 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 a FOI request incur any charges, the request will not proceed until the FOI applicant provides a response to the cost estimate. RIRDC may decide to remit, reduce or not impose processing charges under certain circumstances. Review rights

Following receipt of the decision on access, FOI applicants are entitled to seek an internal review of the decision. If they wish to utilise this option, they required to write to FOI Coordinator within 30 days of being notified of the decision. Alternatively, the FOI applicant 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 the FOI applicant at the completion of their 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. RIRDC complies with this requirement.

114 115 116 FINANCIAL and performance statements

Auditor’s report...... 118 Director’s Statement...... 120 Statement of Comprehensive Income...... 121 Balance Sheet...... 122 Statement of Changes in Equity...... 123 Cash Flow Statement...... 124 Schedule of Commitments...... 125

117 Auditor’s report

118 Auditor’s report

119 Director’s Statement

120 Statement of Comprehensive Income

For the period ended 30 June 2015

Notes 2015 2014 $’000 $’000 NET COST OF SERVICES Expenses Employee benefits 3A 3,239 4,416 Research projects 3B 13,238 14,578 Suppliers 3C 3,255 3,396 Depreciation and amortisation 3D 170 173 Finance costs 3E 2 2 Write-down and impairment of assets 3F 7 52 Total expenses 19,911 22,617 Own-source income Own-source revenue Industry levies 4A 4,479 5,476 External contributions 4B 4,683 3,569 Sale of goods and rendering of services 4C 44 35 Interest 4D 658 741 Royalties 4E 252 144 Other revenue 4F 186 129 Total own-source revenue 10,302 10,094

Net cost of services 9,609 12,523 Revenue from Government 4H 12,742 14,702 Surplus attributable to the Australian Government 3,133 2,179 OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Changes in asset revaluation surplus 13 - Total other comprehensive income 13 - Total comprehensive income 3,146 2,179 Total comprehensive income attributable to the Australian 3,146 2,179 Government

The above statement should be read in conjunction with the accompanying notes.

121 Statement of Financial Position as at 30 June 2015

Notes 2015 2014 $’000 $’000 ASSETS Financial assets Cash and cash equivalents 6A 6,265 5,578 Trade and other receivables 6B 3,419 1,859 Investments 6C 10,000 10,000 Total financial assets 19,684 17,437 Non-financial assets Property, plant and equipment 7A, B 75 170 Intangibles 7C, D 171 234 Other non-financial assets 7E 77 99 Total non-financial assets 323 503 Total assets 20,007 17,940 LIABILITIES Payables Suppliers 8A 209 239 Research projects 8B 294 1,002 Other payables 8C 92 342 Total payables 595 1,583 Provisions Employee provisions 9A 593 681 Other provisions 9B 60 63 Total provisions 653 744 Total liabilities 1,248 2,327 Net assets 18,759 15,613 EQUITY Reserves 487 474 Retained surplus 18,272 15,139 Total equity 18,759 15,613

The above statement should be read in conjunction with the accompanying notes.

122 Statement of Changes in Equity

For the period ended 30 June 2015

Asset revaluation Retained earnings Reserves Total equity 2015 2014 2015 2014 2015 2014 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance Balance carried forward from 15,139 12,960 474 474 15,613 13,434 previous period Adjusted opening balance 15,139 12,960 474 474 15,613 13,434 Comprehensive income Other comprehensive income - - 13 - 13 - Surplus for the period 3,133 2,179 - - 3,133 2,179 Total comprehensive income 3,133 2,179 13 - 3,146 2,179 Closing balance as at 30 June 18,272 15,139 487 474 18,759 15,613

The above statement should be read in conjunction with the accompanying notes.

123 Cash Flow Statement

For the period ended 30 June 2015

Notes 2015 2014 $’000 $’000 OPERATING ACTIVITIES Cash received Receipts from Government 12,977 14,951 Industry levies 4,503 5,463 External contributions 3,119 4,007 Sale of goods and rendering of services 49 39 Net GST received 1,295 1,322 Interest 659 764 Other 463 287 Total cash received 23,065 26,833 Cash used Research projects 15,208 15,785 Employees 3,327 4,504 Suppliers 3,837 4,328 Total cash used 22,372 24,617 Net cash from operating activities 10 693 2,216 INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment - 33 Purchase of intangibles 6 115 Investments - - Total cash used 6 148 Net cash used by investing activities (6) (148) Net increase in cash held 687 2,068 Cash and cash equivalents at the beginning of the 5,578 3,510 reporting period Cash and cash equivalents at the end of the 6A 6,265 5,578 reporting period

The above statement should be read in conjunction with the accompanying notes.

124 Schedule of Commitments as at 30 June 2015

2015 2014 $’000 $’000 BY TYPE Commitments receivable Net GST recoverable on commitments1 2,370 1,647 Total commitments receivable 2,370 1,647 Commitments payable Other commitments Operating leases2 500 469 Research projects3 25,566 17,653 Total other commitments 26,066 18,122 Net commitments by type 23,696 16,475 BY MATURITY Commitments receivable Within 1 year 954 868 Between 1 to 5 years 1,416 779 Total other commitments receivable 2,370 1,647 Commitments payable Operating lease commitments Within 1 year 405 378 Between 1 to 5 years 95 91 Total operating lease commitments 500 469 Research project commitments Within 1 year 10,091 9,166 Between 1 to 5 years 15,475 8,487 Total research project commitments 25,566 17,653 Total commitments payable 26,066 18,122 Net commitments by maturity 23,696 16,475

Note: 1 Commitments are GST inclusive where relevant. 2 Operating leases included are effectively non-cancellable and comprise: Lease 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. On 25 June 2015 the lease was extended for a additional period of twelve months. Lease for car parking bays. The Corporation has a lease on nine car parking bays for a twelve month term ending 30 June 2016. 3 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 schedule should be read in conjunction with the accompanying notes. 125 126 NOTES to the financial statements Note 1: Summary of Significant Accounting Policies...... 128 Note 2: Events After the Reporting Period...... 135 Note 3: Expenses...... 136 Note 4: Income...... 138 Note 5: Fair Value Measurements...... 139 Note 6: Financial Assets...... 142 Note 7: Non-Financial Assets...... 144 Note 8: Payables...... 148 Note 9: Provisions...... 149 Note 10: Cash Flow Reconciliation...... 150 Note 11: Contingent Liabilities and Assets...... 151 Note 12: Senior Management Personnel Remuneration...... 151 Note 13: Related Party Disclosures...... 152 Note 14: Remuneration of Auditors...... 153 Note 15: Financial Instruments...... 154 Note 16: Financial Assets Reconciliation...... 157 Note 17: Reporting of Outcomes...... 158 Note 18: Budgetary Reports and Explanations of Major Variances...... 159

127 Notes to and forming part of the financial statements

VV 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 defined as a corporate commonwealth entity in thePublic Governance, Performance and Accountability Act 2013. 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 are general purpose statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013. The financial statements and notes have been prepared in accordance with: • Financial Reporting Rule (FRR) for reporting periods ending on or after 1 July 2014; 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 FRR, 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 executory 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 contingencies note. 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.

128 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 (based on advice from Australian Valuation Solutions) have been taken to be: • Office and computer equipment, furniture and fittings, the market value of similar assets, and • Leasehold improvements, the depreciated replacement cost. The liability for long service leave has been estimated using present value techniques in accordance with the shorthand method as per FFR 24. This takes into account expected salary growth, attrition and future discounting using Commonwealth bond rates. The liability for the make-good provision for restoration has been estimated using discounted cash flows. 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. New accounting standard AASB 1055 Budgetary Reporting has been adopted for the first time. 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 material effect on the Corporation’s financial statements. Future Australian Accounting Standard Requirements No new standards, revised standards, interpretations and amending standards that were issued prior to the signing of the statements are expected to have a material impact on the Corporation’s financial statements for future reporting periods. 1.5 Revenue

Revenues from Government Each year the Australian Government appropriates funds to facilitate the Corporation’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. Industry Levies Under Section 30(1)(a) of the PIRD Act, each program to which a levy is attached receives

129 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 organisations to projects. 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. The Corporation does not control this revenue and only receives a portion of the total royalties paid under the commercialisation agreements. 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 Corporation 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 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.

130 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 as per the FRR and Commonwealth Entity Financial Statements Guide. 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), 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. 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 2014-15.

131 1.9 Fair Value Measurement

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 2014-15. 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. 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 statement of financial position but are reported in the 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.

132 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 statement of financial position, 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 ‘make good’ 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 ‘make good’ recognised. Revaluations Following initial recognition at cost, property, plant and equipment is carried at fair value. 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. All property, plant and equipment assets were reviewed and assessed for fair value as at 30 June 2015 by Australian Valuation Solutions. 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 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.

133 Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

Asset Class 2014-15 2013-14 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 2015. 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 of disposal 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 (2013-14: 5 years). All software assets were assessed for indications of impairment as at 30 June 2015. 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 senior management personnel remuneration note in accordance with the FRR.

134 VV 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.

135 VV Note 3: Expenses

2015 2014 $’000 $’000 Notes 3A: Employee benefits Wages and salaries 2,385 2,927 Superannuation: Defined contribution plans 194 202 Defined benefit plans 299 319 Leave and other entitlements 189 353 Separation and redundancies - 396 Other employee benefits 172 219 Total employment benefits 3,239 4,416 Note 3B: Research projects Public sector: Australian Government entities (related entities) 955 1,078 State and Territory Governments 3,984 3,920 Private sector: Non-profit organisations 90 162 Tertiary institutions 4,055 5,072 Other 4,154 4,346 Total research projects 13,238 14,578 Note 3C: Suppliers Goods and services supplied or rendered: Consultants 1,050 856 Contractors 234 359 Information and communication 378 458 Legal services 36 89 Learning and development 33 55 Travel 423 400 General goods and services 718 821 Total goods and services 2,872 3,038 Goods supplied in connection with: External parties 287 358 Total goods supplied or rendered 287 358 Services rendered in connection with: Related entities 312 327 External parties 2,273 2,353 Total services rendered 2,585 2,680 Total goods and services supplied or rendered 2,872 3,038

136 2015 2014 $’000 $’000 Other suppliers Operating lease rentals in connection with External parties Minimum lease payments 308 290 Workers compensation expenses 75 68 Total other suppliers 383 358 Total suppliers 3,255 3,396 Note 3D: Depreciation and amortisation Depreciation: Office equipment 4 4 Furniture and fittings 4 4 Computer equipment 39 56 Leasehold improvements 53 53 Total depreciation 100 117 Amortisation: Intangibles – Computer software 70 56 Total amortisation 70 56 Total depreciation and amortisation 170 173 Note 3E: Finance costs Unwinding of discount 2 2 Total finance costs 2 2 Note 3F: Write-down and impairment of assets Impairment of receivables 4 52 Other 3 - Total write-down and impairment of assets 7 52

137 VV Note 4: Income

2015 2014 $’000 $’000 Own-Source Revenue Note 4A: Industry levies Industry levies 4,476 5,473 Industry levy penalties 3 3 Total industry levies 4,479 5,476 Note 4B: External contributions Industry contributions 2,474 2,791 Other* 2,209* 778 Total external contributions 4,683 3,569 Note 4C: Sale of Goods and Rendering of Services Sale of goods in connection with External parties 44 35 Total sale of goods and rendering of services 44 35 Note 4D: Interest Deposits 658 741 Total interest 658 741 Note 4E: Royalties Research project royalties 252 144 Total royalties 252 144 Note 4F: Other revenue Project funds 186 129 Total other revenue 186 129 Revenue From Government Note 4H: Revenue from Government Department of Agriculture Core funding 9,449 11,319 Commonwealth matching payments 3,293 3,383 Total revenue from Government 12,742 14,702

* The increase in 2015 is primarily associated with the revenue from the Rural Research and Development for Profit program.

138 VV 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, Valuation Techniques and Inputs Used Fair value measurements at the end of the reporting period by hierarchy for assets and liabilities in 2015: Fair value measurements at For Levels 2 and 3 fair value the end measurements of the reporting period 2015 2014 Category Valuation Inputs used Range $’000 $’000 (Level 1, techniques (weighted 2 or 34) average)

Non-financial assets3: Office equipment 6 7 Level 2 Market Adjusted n/a approach market transactions Furniture and fittings 11 29 Level 2 Market Adjusted n/a approach market transactions

Computer equipment 44 68 Level 2 Market Adjusted n/a approach market transactions Leasehold improvements 14 66 Level 3 Depreciated Replacement n/a replacement cost new (price cost per square metre) Consumed 10% economic benefit / Obsolescence of asset Total non-financial 75 170 assets Total fair value 75 170 measurements of assets in the statement of financial position Non-financial liabilities Provision for restoration 60 63 Level 3 Discounted Replacement n/a cash flow cost new (price per square metre) Market rate of interest n/a Total non-financial 60 63 liabilities Total fair value 60 63 measurements of liabilities in the statement of financial position

See notes overleaf 139 (from previous) 1. Th e Corporation did not measure any non-financial assets at fair value on a non-recurring basis as at 30 June 2015. 2. There has been changes to the valuation techniques for assets in the property, plant and equipment class. In instances where sufficient observable inputs, such as market transactions of similar assets, were identified in this financial year, the valuation technique was changed from a depreciated replacement cost to a market approach. 3. Fair value measurements The Corporation’s assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all NFAs is considered their highest and best use. 4. R ecurring and non-recurring Level 3 fair value measurements - valuation processes The Corporation tests the procedures of the valuation model as an internal asset materiality review at least once every 12 months with a formal revaluation undertaken once every five years. If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation. The entity engaged Australian Valuation Solutions (AVS) to undertake a full revaluation and confirm that the models developed comply with AASB 13. The weighted average is determined by assessing the fair value measurement as a proportion of the total fair value for the class against the total useful life of each asset.

Note 5B: Level 1 and Level 2 Transfers for Recurring Fair Value Measurements

There have been no transfers between level 1 and 2 of the hierarchy during the year. The Corporation’s policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.

Note 5C: Reconciliation of Recurring Level 3 Fair Value Measurements Recurring Level 3 fair value measurements – reconciliation for assets Property, plant Property, plant Tot al Tot al and equipment and equipment 2015 2014 2015 2014 $’000 $’000 $’000 $’000

As at 1 July 170 254 170 254 Purchases - 33 - 33

Depreciation (100) (117) (100) (117) Revaluations and impairments 1 - 1 - Transfer into Level 3 - - - - Transfer out of Level 31 (57) - (57) - Closing balance 14 170 14 170

1. Th e transfers out of level 3 during the year are based on an independent valaution undertaken by Australian Valuation Solutions. 2. The Corporation’s policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.

140 Recurring Level 3 fair value measurements – reconciliation for liabilities Provision for Provision for Tot al Tot al restoration restoration

2015 2014 2015 2014 $’000 $’000 $’000 $’000

As at 1 July 63 61 63 61 Purchases - - - - Finance costs 2 2 2 2 Revaluations and impairments (5) - (5) - Transfer into Level 3 - - - - Transfer out of Level 3 - - - - Closing balance 60 63 60 63

141 VV Note 6: Financial Assets

2015 2014 $’000 $’000 Note 6A: Cash and cash equivalents Cash on hand 1,103 1,468 Term deposits <= 3 months 5,162 4,110 Total cash and cash equivalents 6,265 5,578 Note 6B: Trade and other receivables Goods and services receivables in connection with Related entities 2,299* 150 External parties 60 299 Total goods and services receivables* 2,359 449 Commonwealth contributions Department of Agriculture 780 1,015 Total receivables for Commonwealth contributions 780 1,015 Other receivables GST receivable from the Australian Taxation Office 149 315 Interest 131 132 Total other receivables 280 447 Total trade and other receivables (gross) 3,419 1,911 Less impairment allowance Goods and services - (52) Total impairment allowance - (52) Total trade and other receivables (net) 3,419 1,859

All receivables are expected to be recoved in no more than 12 months. Trade and other receivables (gross) aged as follows Not overdue 3,374 1,731 Overdue by: 0 to 30 days - 126 31 to 60 days 42 2 61 to 90 days 3 - More than 90 days - 52 Total trade and other receivables (gross) 3,419 1,911

All trade and other receivables are current assets. * The increase in 2015 is primarily associated with funding from the Rural Research and Development for Profit progam.

142 Note 6B (cont): Trade and other receivables 2015 2014 $’000 $’000 Impairment allowance aged as follows Overdue by: More than 90 days - (52) Total impairment allowance - (52)

Goods and services receivable was with entities external to the Australian Government. Credit terms are net 30 days (2014: 30 days). Reconciliation of the Impairment Allowance Movements in relation to 2015 Goods and services Tot al $’000 $’000

As at 1 July 2014 (52) (52) Amounts written off 56 56 Amounts recovered and reversed - - Increase/decrease recognised in net surplus (4) (4) Totals as at 30 June 2015 - - Movements in relation to 2014 Goods and services Tot al $’000 $’000 As at 1 July 2013 - - Amounts written off - - Amounts recovered and reversed - - Increase/decrease recognised in net surplus (52) (52) Totals as at 30 June 2014 (52) (52)

2015 2014 $’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 @ 3.13% pa (2014: 6 month term deposit @ 3.61% pa)

143 VV Note 7: Non-Financial Assets

2015 2014 $’000 $’000 Note 7A: Property, plants and equipment Office equipment Fair value 6 24 Accumulated depreciation - (17) Total office equipment 6 7 Furniture and fittings Fair value 11 52 Accumulated depreciation - (23) Total furniture and fittings 11 29 Computer equipment Fair value 44 194 Accumulated depreciation - (126) Total computer equipment 44 68 Total plant and equipment 61 104 Leasehold improvements Fair value 14 265 Accumulated depreciation - (199) Total leasehold improvements 14 66 Total property, plant and equipment 75 170

On 30 June 2015, property, plant and equipment was revalued by an independent valuer from Australian Valuation Solutions. The revaluations were conducted in accordance with the revaluation policy stated at Note 1. Revaluation increments of $14,717 for computer equipment (2014: Nil) $2,524 for office equipment (2014: Nil) and $446 for leasehold improvements (2014: Nil) and a revaluation decrement of $4,675 for makegood (2014: Nil) were credited to the asset revaluation reserve by asset class and included in the equity section of the statement of financial position. A revaluation decrement of $9,848 for furniture and fittings (2014: Nil) and was debited to the asset revaluation reserve by asset class and included in the equity section of the statement of financial position. 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.

144 Note 7B: Reconciliation of the opening and closing balances of property, plant and equipment for 2014-15 Office Furniture Computer Leasehold equipment and fittings equipment improvements Tot al $’000 $’000 $’000 $’000 $’000 As at 1 July 2014 Gross book value 24 52 194 265 535 Accumulated depreciation and impairment (17) (23) (126) (199) (365) Total as at 1 July 2014 7 29 68 66 170 Additions: Purchase or internally developed - - - - - Revaluations and impairments recognised in 3 (11) 15 1 8 other comprehensive income Depreciation (4) (4) (39) (53) (100) Disposals: Other - (3) - - (3) Total as at 30 June 2015 6 11 44 14 75 Total as at 30 June 2015 represented by Gross book value 6 11 44 14 75 Accumulated depreciation and impairment - - - - - Total as at 30 June 2015 6 11 44 14 75

Note 7B: Reconciliation of the opening and closing balances of property, plant and equipment for 2013-14 Office Furniture Computer Leasehold equipment and fittings equipment improvements Tot al $’000 $’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) Total as at 1 July 2013 11 33 91 119 254 Additions Purchase or internally developed - - 33 - 33 Revaluations and impairments recognised in - - - - - other comprehensive income Depreciation (4) (4) (56) (53) (117) Diposals Other - - - - - Total as at 30 June 2014 7 29 143 66 245 Total as at 30 June 2014 represented by Gross book value 24 52 194 265 535 Accumulated depreciation and impairment (17) (23) (126) (199) (365) Total as at 30 June 2014 7 29 68 66 170

145 2015 2014 $’000 $’000 Note 7C: Intangibles Computer software Purchased (at cost) 565 570 Accumulated amortisation (394) (336) Total computer software 171 234 Total intangibles 171 234

No indicators of impairment were found for intangible assets. No intangible assets are expected to be sold or disposed of within the next 12 months. Refer to Note 7D for the reconciliation of opening and closing balances.

Note 7D: Reconciliation of the Opening and Closing Balances of Intangibles Computer Tot al software $’000 purchased $’000 As at 1 July 2014 Gross book value 570 570 Accumulated amortisation and impairment (336) (336) Total as at 1 July 2014 234 234 Additions: Purchase and internally developed 7 7 Amortisation (70) (70) Disposals: Other disposals - - Net book value 30 June 2015 171 171 Total as at 30 June 2015 represented by Gross book value 565 565 Accumulated amortisation and impairment (394) (394) Total as at 30 June 2015 171 171

146 Note 7D (cont): Reconciliation of the opening and closing balances of intangibles for 2013-14 Computer Tot al software $’000 purchased $’000 As at 1 July 2013 Gross book value 657 657 Accumulated amortisation and impairment (482) (482) Total as at 1 July 2013 175 175 Additions: Purchase or internally developed 115 115 Amortisation (56) (56) Disposals Other disposals - - Net book value 30 June 2014 234 234 Total as at 30 June 2014 represented by Gross book value 570 570 Accumulated amortisation and impairment (336) (336) Total as at 30 June 2014 234 234

2015 2014 $’000 $’000 Note 7E: Other non-financial assets Prepayments 77 99 Total other non-financial assets 77 99 Total other non-financial assets expected to be recovered No more than 12 months 77 99 Total other non-financial assets 77 99

No indicators of impairment were found for other non-financial assets.

147 VV Note 8: Payables

2015 2014 $’000 $’000 Note 8A: Suppliers Trade creditors and accruals 209 239 Total suppliers 209 239 Supplier payables expected to be settled within 12 months Suppliers in connection with Related parties 50 30 External parties 159 209 Total supplier payables 209 239

Settlement was usually made within 30 days. Note 8B: Research projects Public sector Australian Government entities (related entities) 15 79 State and Territory Governments - 257 Private sector: Non-profit organisations 207 503 Other 72 163 Total research projects 294 1,002 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 15 14 Wages and salaries 72 289 Superannuation - 15 Lease incentive 5 24 Total other payables 92 342 Other payables expected to be settled in: No more than 12 months 92 337 More than 12 months - 5 Total other payables 92 342

148 VV Note 9: Provisions

2015 2014 $’000 $’000 Note 9A: Employee provisions Leave 593 681 Total employee provisions 593 681 Employee provisions expected to be settled in: No more than 12 months 466 562 More than 12 months 127 119 Total employee provisions 593 681 Note 9B: Other provisions Provisions for restoration 60 63 Total other provisions 60 63

All other provisions are expected to be settled in more than 12 months.

Provision for Total restoration $’000 $’000 As at 1 July 2014 63 63 Unwinding of discount or change in discount rate 2 2 Revaluations and impairments (5) (5) Total as at 30 June 2015 60 60

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.

149 VV Note 10: Cash Flow Reconciliation

2015 2014 $’000 $’000 Reconciliation of cash and cash equivalents as per statement of financial position to cash flow statement Cash and cash equivalents as per: Cash flow statement 6,265 5,578 Statement of financial position 6,265 5,578 Discrepancy - - Reconciliation of net cost of services to net cash from operating activities Net cost of services (9,609) (12,523) Revenue from Government 12,742 14,702 Adjustments for non-cash items Depreciation and amortisation 170 173 Revaluation decrement - provision for makegood 5 - Movements in assets and liabilities Assets (Increase)/decrease in net receivables (1,558) 426 (Increase)/decrease in prepayments 22 (78) Liabilities Increase/(decrease) in employee provisions (88) (88) Increase/(decrease) in supplier payables (30) (384) Increase/(decrease) in research projects payable (708) 61 Increase/(decrease) in other payables (250) (75) Increase/(decrease) in other provisions (3) 2 Net cash from operating activities 693 2,216

150 VV Note 11: Contingent Liabilities and Assets

Quantifiable Contingencies As at 30 June 2015, the Corporation has no quantifiable contingencies (2014: nil)

Unquantifiable Contingencies As at 30 June 2015, the Corporation has no unquantifiable contingencies (2014: nil).

Significant Remote Contingencies As at 30 June 2015, the Corporation has no material remote contingencies (2014: nil)..

VV Note 12: Senior Management Personnel Remuneration

2015 2014 $ $

Short-term employee benefits Salary 910,176 880,686 Performance bonuses - - Total short-term employee benefits 910,176 880,686 Post-employment benefits Superannuation 185,095 168,269 Total post-employment benefits 185,095 168,269

Other long-term employee benefits Annual leave accrued 51,707 50,380 Long service leave 15,595 16,332 Total other long-term employee benefits 67,302 66,712 Termination benefits Voluntary redundancy payments - - Total termination benefits - - Total senior executive remuneration expenses 1,162,573 1,115,667

The total number of senior management personnel that are included in the above table are 18 individuals (2014: 12 individuals).

151 VV 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 - ceased 30 September 2014) Mr A D Campbell, AM (ceased 30 September 2014) Ms R Healy (ceased 30 September 2014) Mr S Archer (ceased 30 September 2014) Mr M Guerin (ceased 30 September 2014) Ms A Johnson (ceased 30 September 2014) Dr L Stephens Mr K Goss (Deputy Chairperson - from 11 October 2014) Dr T Hamilton (from 11 October 2014) Dr J Mahoney (from 11 October 2014) Dr W Ryan (from 11 October 2014) Ms H Stacy (from 11 October 2014) Dr K Steele (from 11 October 2014) Mr C S Burns (Managing Director) Ms A Lovett (ceased 10 September 2014) Ms V Woodburn (from 9 September 2014) Ms C Quick

The aggregate remuneration of non-executive 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.

2015 2014 Other Transactions with Directors or Director-Related Entities $000 $000

Total payments made to Director-related entities 835 1,054 The Corporation is a founding member of the Australian Rural Leadership 55 55 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 42 92 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 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 (JCU). 147 178 JCU received funding from the Corporation in relation to research projects. Mr M Guerin is a beneficiary of the Guerin Family Trust. The trustee 174 116 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. Mr K Goss is a Senior Honary Research Fellow of the University 375 584 of Western Australia (UWA). UWA received funding from the Corporation in relation to research projects. Mr K Goss works for Kevin Goss Consulting. Kevin Goss Consulting 42 20 received funding from the Corporation for personal services provided by Mr Goss before he was appointed as a Board member.

152 VV Note 14: Remuneration of Auditors

2015 2014 $’000 $’000 The cost of financial statement audit services provided to the Corporation were: Australian National Audit Office 31 30 31 30

No other services were provided by the Australian National Audit Office.

153 VV Note 15: Financial Instruments

2015 2014 $’000 $’000 Note 15A: Categories of financial instruments Financial assets Loans and receivables: Cash and cash equivalents 6,265 5,578 Trade and other receivables 2,490 529 Investments 10,000 10,000 Total loans and receivables 18,755 16,107 Total financial assets 18,755 16,107

Financial liabilities Financial liabilities measured at nominal cost Trade creditors Suppliers 209 239 Research projects 294 1,002 Total trade creditors 503 1,241 Total financial liabilities measured at nominal cost 503 1,241

Note 15B: Net gains or losses on financial assets Loans and receivables: Interest revenue 658 741 Impairment - (52) Net gain from loans and receivables 658 689 Net gain from financial assets 658 689

Note 15C: Net gains or losses on financial liabilities There is no gains or losses on financial liabilities for the period ending 30 June 2015 (2014: nil).

Note 15D: Fee income and expense There is no fee income and expenses from financial assets and liabilities for the period ending 30 June 2015 (2014: nil).

Note 15E: Fair value of financial instruments There are no potential differences between the carrying amounts and fair values of financial assets and liabilities (2014: nil).

Note 15F: 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 statement of financial position. 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 (2015: $2,490,000 and 2014: $529,000).

154 Note 15F (cont): Credit risk 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 assets not past due or individually determined as impaired Not past due Not past due Past due or Past due or nor impaired nor impaired impaired impaired 2015 2014 2015 2014 $’000 $’000 $’000 $’000 Cash and cash equivalents 6,265 5,578 - - Receivables for goods and services1 2,445 349 45 180 Investments 10,000 10,000 - - Total 18,710 15,927 45 180

1. R eceivables for goods and services 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 in 2015

0 to 30 31 to 60 61 to 90 90+ days days days days Tot al $’000 $’000 $’000 $’000 $’000 Receivables for goods and services1 - 42 3 - 45 Total - 42 3 - 45

Ageing of financial assets that are past due but not impaired in 2014

0 to 30 31 to 60 61 to 90 90+ days days days days Tot al $’000 $’000 $’000 $’000 $’000 Receivables for goods and services 126 2 - - 128 Total 126 2 - - 128

Note 15G: 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 2013-14.

155 Note 15G (cont): Liquidity risk

The following table illustrates the maturities for financial liabilities.

Maturities for non-derivative financial liabilities 2015 On within between between more demand 1 year 1 to 2 2 to 5 than 5 years years years total $’000 $’000 $’000 $’000 $’000 $’000 Other financial liabilities Suppliers - 209 - - - 209 Research projects - 294 - - - 294 Total - 503 - - - 503

Maturities for non-derivative financial liabilities 2014 On within between between more demand 1 year 1 to 2 2 to 5 than 5 years years years total $’000 $’000 $’000 $’000 $’000 $’000 Other financial liabilities Suppliers - 239 - - - 239 Research projects - 1,002 - - - 1,002 Total - 1,241 - - - 1,241 The Corporation had no derivative financial liabilities in either 2015 or 2014.

Note 15H: 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 2013-14. The Corporation is not exposed to 'currency risk' or 'other price risk'.

156 VV Note 16: Financial Assets Reconciliation

Notes 2015 2014 $’000 $’000 Total financial assets as per statement of 19,684 17,437 financial position Less: Non-financial instrument components Commonwealth contributions receivable 6B 780 1,015 GST receivable 6B 149 315 Total non-financial instrument components 929 1,330 Total financial assets as per financial instruments note 18,755 16,107

157 VV Note 17: 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 17A: Net cost of outcome delivery Outcome 1 Total 2015 2014 2015 2014 $’000 $’000 $’000 $’000 Departmental Expenses (19,911) (22,617) (19,911) (22,617) Own-source income 10,302 10,094 10,302 10,094 Net cost of outcome delivery (9,609) (12,523) (9,609) (12,523)

Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome.

158 VV Note 18: Budgetary Reports and Explanations of Major Variances

The following tables provide a comparison of the original budget as presented in the 2014–15 Portfolio Budget Statements (PBS) to the final financial outcome in the 2014–15 financial statements. The Budget is not audited. Variances are considered to be ‘major’ based on the following criteria: • the variance between budget and actual is greater than 10%; and • the variance between budget and actual is greater than 2% of the relevant category (income, expense and equity totals); or • an item is below this threshold but is considered important for the reader’s understanding or is relevant to an assessment of the discharge of accountability and to an analysis of performance of an entity.

159 Note 18A: Budgetary Reports Actual Budget Estimate Original1 Variance2

STATEMENT OF COMPREHENSIVE INCOME 2015 2015 2015 for the period ended 30 June 2015 $’000 $’000 $’000 Net cost of services Expenses Employee benefits 3,239 3,591 (352) Research projects 13,238 13,459 (221) Suppliers 3,255 2,841 414 Depreciation and amortisation 170 180 (10) Finance costs 2 - 2 Write-down and impairment of assets 7 - 7 Total expenses 19,911 20,071 (160) Own-source income Own-source revenue Industry levies 4,479 4,036 443 External contributions 4,683 2,259 2,424 Sale of goods and rendering of services 44 - 44 Interest 658 600 58 Royalties 252 220 32 Other revenue 186 293 (107) Total own-source revenue 10,302 7,408 2,894 Net cost of services 9,609 12,663 (3,054) Revenue from Government 12,742 12,663 79 Surplus attributable to the Australian Government 3,133 - 3,133 OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Changes in asset revaluation surplus 13 - 13 Total other comprehensive income 13 - 13 Total comprehensive income 3,146 - 3,146 Total comprehensive income attributable to the 3,146 - 3,146 Australian Government

1. The Corporation’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period (ie. from the Corporation’s 2014-15 Portfolio Budget Statements). 2. Between the actual and original budgeted amounts for 2014-15. Explanations of major variances are provided further below.

160 Actual Budget Estimate Original1 Variance2

STATEMENT OF FINANCIAL POSITION AS 2015 2015 2015 AT 30 JUNE 2015 $’000 $’000 $’000 ASSETS Financial assets Cash and cash equivalents 6,265 3,786 2,479 Trade and other receivables 3,419 2,285 1,134 Investments 10,000 10,000 - Total financial assets 19,684 16,071 3,613 Non-financial assets Property, plant and equipment 75 281 (206) Intangibles 171 193 (22) Other non-financial assets 77 21 56 Total non-financial assets 323 495 (172) Total assets 20,007 16,566 3,441 LIABILTIES Payables Suppliers 209 645 (436) Research projects 294 941 (647) Other payables 92 43 49 Total payables 595 1,629 (1,034) Provisions Employee provisions 593 916 (323) Other provisions 60 61 (1) Total provisions 653 977 (324) Total liabilities 1,248 2,606 (1,358) Net assets 18,759 13,960 4,799 EQUITY Reserves 487 474 13 Retained earnings 18,272 13,486 4,786 Total equity 18,759 13,960 4,799

1. Th e Corporation’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period (ie. from the Corporation’s 2014-15 Portfolio Budget Statements). 2. Between the actual and original budgeted amounts for 2014-15. Explanations of major variances are provided further below.

161 2 13 2015 1,653 3,146 1,653 3,133 4,799 $’000 Variance 1 2015 $’000 13,960 13,960 13,960 Original Budget Estimate Total equity Total 13 2015 $’000 3,146 3,133 Actual 18,759 15,613 15,613 2 - - - 13 13 13 2015 $’000 Variance 1 - - - 474 474 474 2015 $’000 Original Budget Estimate Reserves - Asset revaluation Asset 13 13 474 474 487 2015 $’000 Actual 2 - 2015 1,653 3,133 1,653 4,786 3,133 $’000 Variance 1 - - - 2015 $’000 13,486 13,486 13,486 Original Budget Estimate - Retained earnings Retained 2015 3,133 $’000 3,133 Actual 15,139 15,139 18,272

EQUITY B   Th STATEMENT OF CHANGES OF IN STATEMENT for the period ended 30 June 2015 30 June period ended for the balance Opening Balance carried forward from previous period balance opening Adjusted income Comprehensive Other comprehensive income Surplus for the period income comprehensive Total 30 June as at balance Closing 1. 1. 2. e Corporation’s original budgeted financial statement that was firstpresented to Parliament in respect of the reporting Portfolio period (ie.from the Budget Corporation’s2014-15 Statements). etween the actual and original budgeted Explanations amounts for 2014-15. of major variances are provided further below.

162 Actual Budget Estimate Original1 Variance2

CASH FLOW STATEMENT 2015 2015 2015 for the period ended 30 June 2015 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Receipts from Government 12,977 12,663 314 Industry levies 4,503 4,036 467 External contributions 3,119 2,259 860 Sale of goods and rendering of services 49 - 49 Net GST received 1,295 1,630 (335) Interest 659 600 59 Other 463 518 (55) Total cash received 23,065 21,706 1,359 Cash used Research projects 15,208 14,805 403 Employees 3,327 3,591 (264) Suppliers 3,837 3,125 712 Total cash used 22,372 21,521 851 Net cash from operating activities 693 185 508 INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment - 167 (167) Purchase of intangbles 6 78 (72) Investments - - - Total cash used 6 245 (239) Net cash used by investing activities (6) (245) 239 Net increase in cash held 687 (60) 747 Cash and cash equivalents at the beginning of the 5,578 3,846 1,732 reporting period Cash and cash equivalents at the end of the 6,265 3,786 2,479 reporting period

1. Th e Corporation’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period (ie. from the Corporation’s 2014-15 Portfolio Budget Statements). 2. Between the actual and original budgeted amounts for 2014-15. Explanations of major variances are provided further below.

163 Note 18B: Major Budget Variances for 2014-15 Explanations of major variances Affected line items (and category) Employee benefits and research expenses were below Employee benefits (Expenses and cash used) the budget estimate due to a reduction in ongoing Research projects (Expenses) funding announced in the 2014-15 budget. Supplier Suppliers (Expenses) expenses were above budget as the Corporation made greater use of external services. Industry levies were above the budget estimate due Industry levies (Revenue and cash received) to better than expected rice production.

External contributions were above the budget External contributions (Revenue and cash received) estimate due to the recognition of grant revenue received under the Rural Research and Development for Profit program that was not anticipated at the beginning of the year. Cash and cash equivalents were above the budget Cash and cash equivalents (Assets) estimate due to the surplus that was not anticipated at the beginning of the year. Trade and other receivables were above the Trade and other receivables (Assets) budget estimate due to the recognition of receivables associated with the Rural Research and Development for Profit program that were not anticipated at the beginning of the year. Property, plant and equipment values were below Property, plant and equipment (Assets) the budget estimate due to the deferral of assets purchases pending the possible relocation of the Corporation. Suppliers and research payables were below the Suppliers (Payables) budget estimate due to the cash payments being Research projects (Payables) made earlier than anticipated when budgeting.

Employee provisions were below the budget estimate Employee provisions (Provisions) due to a reduction in staffing levels.

The surplus for the period was above the budget Surplus for the period (Equity) estimate due to the recognition of grant revenue that was not anticipated at the beginning of the year. Receipts from Government were above the budget Receipts from Government (Cash received) estimate due to the earlier than expected receipt of funds from Government. Net GST received was below the budget estimate Net GST received (Cash received) due to a reduction in the GST receivable at the end of the year. Research and supplier payments were above the Research projects (Cash used) budget estimate due to the timing of the payments Suppliers (Cash used) made thoughout the year.

164 165 166 APPENDICES

Appendix 1: Statutory levy and industry sub-accounts...... 168 Buffalo...... 168 Chicken Meat...... 169 Climate Change Research Strategy for Primary Industries...... 170 Deer...... 171 Fodder crops...... 172 Ginger...... 173 Goat Fibre...... 174 Honey Bee and Pollination...... 175 Hendra...... 176 Horse...... 177 Kangaroo...... 178 Pasture seeds...... 179 Queenbee...... 180 Ratite...... 181 Rice...... 182 Appendix 2: Legislative requirements...... 183 Appendix 3: RIRDC R&D Advisory Panels and Chairs at 30 June 2015...... 186 Appendix 4: Service charter...... 187 Appendix 5: RIRDC Selection Committee Annual Report 2014-15...... 189 Appendix 6: Glossary...... 191 Appendix 7: Index of Annual Report requirements...... 193

167 Appendix 1: Statutory levy and industry sub-accounts

VV Buffalo

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 1,693 6,144 Statutory industry levies 20,203 9,876 Industry levy penalties 42 25 Other income 3,334 26,183 Total revenue 25,272 42,228 EXPENSES Research projects - 32,424 Reference panel expenses - - External research management 806 - Program management fees 2,576 1,634 Other expenses 1,194 2,835 Total expenses 4,576 36,893 Surplus/(Deficit) 20,696 5,335 Retained surplus at beginning of reporting period 68,038 62,703 Retained surplus at end of reporting period 88,734 68,038

168 VV Chicken Meat

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 1,090,140 1,259,023 Statutory industry levies 1,239,388 1,162,869 Industry levy penalties 856 553 External contributions - - Other income 177,650 145,517 Total revenue 2,508,034 2,567,962 EXPENSES Research projects 1,902,102 2,223,004 Advisory committee expenses 31,968 31,020 External research management 126,077 123,688 Program management fees 111,466 130,547 Other expenses 32,267 44,586 Total expenses 2,203,880 2,552,845 Surplus/(Deficit) 304,154 15,117 Retained surplus at beginning of reporting period 2,657,507 2,642,390 Retained surplus at end of reporting period 2,961,661 2,657,507

169 VV Climate Change Research Strategy for Primary Industries

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 22,500 22,500 External contributions 312,500 237,500 Other income 26,544 558,132 Total revenue 361,544 818,132 EXPENSES Research projects - - External research management 3,258 - Program management fees 231,916 227,128 Other expenses 101,321 54,255 Total expenses 336,495 281,383 Surplus/(Deficit) 25,049 536,749 Retained surplus at beginning of reporting period 536,749 - Retained surplus at end of reporting period 561,798 536,749

170 VV Deer

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 4,158 9,362 Statutory industry levies 18,234 15,231 Industry levy penalties 20 4 Other income 13,080 14,323 Total revenue 35,492 38,920 EXPENSES Research projects - 35,500 Reference panel expenses - - External research management 1,228 1,035 Program management fees 7,085 9,233 Other expenses 6,877 11,414 Total expenses 15,190 57,182 Surplus/(Deficit) 20,302 (18,262) Retained surplus at beginning of reporting period 329,570 347,832 Retained surplus at end of reporting period 349,872 329,570

171 VV Fodder crops

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 150,000 175,000 External contributions 212,338 295,926 Other income 144,223 58,092 Total revenue 506,561 529,018 EXPENSES Research projects 366,329 410,388 Reference panel expenses - 67 Program management fees 46,332 42,112 Other expenses 700 3,395 Total expenses 413,361 455,962 Surplus/(Deficit) 93,200 73,056 Retained surplus at beginning of reporting period 653,984 580,928 Retained surplus at end of reporting period 747,184 653,984

172 VV Ginger

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 113,400 136,177 Statutory industry levies 173,837 159,329 Industry levy penalties 469 675 Other income 4,124 11,290 Total revenue 291,830 307,471 EXPENSES Research projects 200,887 254,952 Reference panel expenses 1,065 4,154 Program management fees 21,182 20,297 Other expenses 22,558 10,561 Total expenses 245,692 289,964 Surplus/(Deficit) 46,138 17,507 Retained surplus at beginning of reporting period 48,602 31,095 Retained surplus at end of reporting period 94,740 48,602

173 VV Goat Fibre

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 2,730 3,392 Statutory industry levies 20,455 34,324 Industry levy penalties 225 69 Other income 3,558 3,036 Total revenue 26,968 40,821 EXPENSES Research projects - 4,000 Program management fees 4,769 2,766 Other expenses 5,743 1,174 Total expenses 10,512 7,940 Surplus/(Deficit) 16,456 32,881 Retained surplus at beginning of reporting period 79,979 47,098 Retained surplus at end of reporting period 96,435 79,979

174 VV Honey Bee and Pollination

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 461,900 434,979 Statutory industry levies 282,758 348,939 Industry levy penalties 727 644 External contributions 305,246 75,000 Other income 28,171 62,579 Total revenue 1,078,802 922,141 EXPENSES Research projects 1,000,676 833,072 Reference panel expenses 16,416 40,020 Program management fees 93,657 108,618 Other expenses 37,826 70,478 Total expenses 1,148,575 1,052,188 Surplus/(Deficit) (69,773) (130,047) Retained surplus at beginning of reporting period 554,788 684,835 Retained surplus at end of reporting period 485,015 554,788

175 VV Hendra

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 112,606 147,000 External contributions - 333,334 Other income - - Total revenue 112,606 480,334 EXPENSES Research projects 349,322 465,496 Reference panel expenses - - Program management fees 37,500 37,500 Other expenses - - Total expenses 386,822 502,996 Surplus/(Deficit) (274,216) (22,662) Retained surplus at beginning of reporting period 274,216 296,878 Retained surplus at end of reporting period - 274,216

176 VV Horse

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 27,555 - External contributions 2,901 35,905 Other income 39,872 13,755 Total revenue 70,328 49,660 EXPENSES Research projects 38,000 214,952 Reference panel expenses - - External research management 6,000 16,000 Program management fees 19,140 42,467 Other expenses 11,444 3,204 Total expenses 74,584 276,623 Surplus/(Deficit) (4,256) (226,963) Retained surplus at beginning of reporting period 4,256 231,219 Retained surplus at end of reporting period - 4,256

177 VV Kangaroo

2014-15 2013-14 $ $ INCOME

Revenue Revenues from Government Commonwealth contributions 24,290 33,216 Statutory industry levies 54,498 59,910 Industry levy penalties 90 119 External contributions - - Other income 11,939 12,481 Total revenue 90,817 105,726 EXPENSES

Research projects 28,629 34,579 Reference panel expenses - - External research management 8,242 - Program management fees 11,642 27,591 Other expenses 9,428 18,501 Total expenses 57,941 80,671 Surplus/(Deficit) 32,876 25,055 Retained surplus at beginning of reporting period 281,896 256,841 Retained surplus at end of reporting period 314,772 281,896

178 VV Pasture seeds

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 132,487 142,932 Statutory industry levies 172,048 186,313 Industry levy penalties 246 957 External contributions - - Other income 67,650 95,850 Total revenue 372,431 426,052 EXPENSES Research projects 219,384 239,242 Reference panel expenses 7,146 8,710 Program management fees 31,305 35,646 Other expenses 12,810 10,940 Total expenses 270,645 294,538 Surplus/(Deficit) 101,786 131,514 Retained surplus at beginning of reporting period 533,790 402,276 Retained surplus at end of reporting period 635,576 533,790

179 VV Queenbee

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions - - Statutory industry levies 8,226 6,807 Industry levy penalties 396 132 Other income 1,509 1,586 Total revenue 10,131 8,525 EXPENSES Research projects - - Other expenses 8,586 9,349 Total expenses 8,586 9,349 Surplus/(Deficit) 1,545 (824) Retained surplus at beginning of reporting period 36,031 36,855 Retained surplus at end of reporting period 37,576 36,031

180 VV Ratite

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions - - Other income 916 995 Total revenue 916 995 EXPENSES Research projects - - Other expenses - - Total expenses - - Surplus/(Deficit) 916 995 Retained surplus at beginning of reporting period 23,448 22,453 Retained surplus at end of reporting period 24,364 23,448

181 VV Rice

2014-15 2013-14 $ $ INCOME Revenue Revenues from Government Commonwealth contributions 1,462,683 1,357,887 Statutory industry levies 2,486,601 3,488,768 Industry levy penalties 44 144 External contributions 250,000 250,000 Other income 307,340 393,689 Total revenue 4,506,668 5,490,488 EXPENSES Research projects 4,572,960 4,088,136 Reference panel expenses 55,258 33,893 Program management fees 213,266 215,912 Other expenses 15,895 11,186 Total expenses 4,857,379 4,349,127 Surplus/(Deficit) (350,711) 1,141,361 Retained surplus at beginning of reporting period 6,435,074 5,293,713 Retained surplus at end of reporting period 6,084,363 6,435,074

182 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 PGPA Act 2013 • 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: a) make provision for the funding and administration of research and development relating to primary industries with a view to: i) 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; ii) achieving the sustainable use and sustainable management of natural resources; iii) making more effective use of the resources and skills of the community in general and the scientific community in particular; and iv) supporting the development of scientific and technical capacity; and v) developing the adoptive capacity of primary producers; and vi) improving accountability for expenditure on research and development activities in relation to primary industries; b) make provision for the funding and administration of marketing relating to products of 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 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. (4) A declaration must be published on the Department’s website as soon as practicable after it is made. 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.

183 Section 11: Functions

The functions of an R&D Corporation 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 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; iv) 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 46 of the PGPA Act: a) particulars of: i) the R&D activities that it co‑ordinated or funded, wholly or partly, during the period; and (ia) if a levy attached to the Corporation had a marketing component during the period—the marketing activities that it coordinated 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 (iib) the impact of those activities on the primary industry or class of primary industries in respect of which the Corporation was established; and iii) revisions of its R&D plan approved by the Minister during the period; and

184 iv) 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 v) its activities during the period in relation to applying for patents for inventions, commercially exploiting patented inventions and granting licences under patented inventions; and vi) the activities of any companies in which the Corporation has an interest; and vii) any activities relating to the formation of a company; and viii) 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 assets, debts, liabilities and obligations under section 144

The Public Governance, Performance and Accountability Act 2013 The PGPA Act is the main legislation that specifies content and standards for presentation of statutory authorities’ annual reports for parliamentary scrutiny. Section 46 of the PGPA Act requires RIRDC Directors to prepare an annual report each financial year and to give it to the responsible Minister by 15 October.

185 Appendix 3: RIRDC R&D Advisory Panels and Chairs at 30 June 2015

VV Chicken Meat Mr Gary Sansom

VV Animal Industries (New, Developing and Maturing) Dr Paul Donnelly

VV Ginger Mr Shane Templeton

VV New and Emerging Plant Industries Mr David McNeil

VV Honey Bee and Pollination Dr Michael Hornitzky

VV Pasture Seeds Mr Chris Martin

VV Primary Industries Health and Safety Partnership Mr Gordon Gregory

VV Rice Mr Ian Mason

186 Appendix 4: Service charter

Enabling legislation and the Board

RIRDC’s enabling legislation is the Primary Industries and 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.

187 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 panels 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.

188 Appendix 5: RIRDC Selection Committee Annual Report 2014-15

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 2014-2015 This report summarises the activities of the Rural Industries Research and Development Corporation (RIRDC) Selection Committee from 1 July 2014 to 30 June 2015. Pursuant to the corporation’s enabling legislation, the Primary Industries Research and Development Act 1989 (PIRD Act), the selection committee (SC) conducted a selection process and submitted its nominations for appointment as RIRDC directors for your consideration, along with a list of other persons the SC considered suitable for appointment. Establishment of Selection Committee I was appointed under section 122 of the PIRD Act as the presiding member (PM) on 6 March 2014, for the period ending 31 December 2016. The SC comprised me as PM 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 for 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 An initial process to select and nominate persons for appointment as directors, was carried out in the previous financial year resulting in the submission of seven nominations and the names of three other persons also considered suitable for appointment, on 27 May 2014. The nominations and additional names were drawn from some 294 applications received as a result of an extensive canvassing of potential candidates, including advertising in the national press and industry outlets. On 22 July 2014, you asked the SC to provide you with two further nominations along with a list of other candidates that the SC also considers suitable for appointment. You requested that the further nominations have expertise in commodity production, processing, expertise in board affairs and a sense of good business acumen.

189 In determining further nominations and mindful of the need to follow the selection process outlined in Part 4, Division 2 of the PIRD Act, the SC considered that best prospects for the further selections lay within the original set of applications. Given the significant number of applications received the SC felt this provided sufficient opportunity to meet the further requirements to complete board selections. In developing the shortlist for interview, 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. The SC was also mindful of your specific instructions to take account of expertise in commodity production, processing, board affairs and business acumen. After further process of analysis and discussion, the SC agreed to interview nine applicants and interviews were conducted 21 August 2014 in Sydney. Following contact of referees for each final selected candidate, the SC submitted to you on 25 August 2015, two further nominations along with two other persons the SC also considers suitable for appointment. On the 11 October 2014 you advised that Mr Kevin Goss, Dr Tony Hamilton, Dr Janet Mahoney, Dr William Ryan, Ms Heather Stacy and Dr Keith Steele had been appointed as RIRDC directors until 30 September 2017 with Dr Len Stephens appointed as a director until 1 August 2016. Please note that the expenses as previously advised by RIRDC for the in the 2013–14 annual report have been amended and the following table details final costs for SC operations over the past two financial years.

Selection Committee Expenses 2013-14 ($) 2014-15 ($) Total ($) Selection Committee 4,258.29 8,591.35 12,849.64 travel expenses Selection Committee member fee - 5,698.72 5,698.72 & reimbursement Applicant travel expenses 4,747.83 4,102.29 8,850.12 Advertising 12,970.05 - 12,970.05 Presiding member fees 30,068.45 7,628.82 37,697.27 & reimbursements Secretariat costs 3,225.51 1,096.49 4,322.00 Total (including GST) 55,270.13 27,117.67 82,387.80

RG Granger Presiding Member RIRDC Selection Committee 23 July 2015

190 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. AFIA ������������������������������������������������������������������������������������������������������������ Australian Fodder Industry Association AOP ������������������������������������������������������������������������������������������������������������������������������������������ annual operational plan APVMA ����������������������������������������������������������������������Australian Pesticides and Veterinary Medicines Authority ATTIA ������������������������������������������������������������������������������������������������������Australian Tea Tree Industry Association B/C ����������������������������������������������������������������������������������������������������������������������������������������������������������������benefit–cost COAG ���������������������������������������������������������������������������������������������������������������Council of Australian Governments COP ��������������������������������������������������������������������������������������������������������������������������������������������������������code of practice CRC ����������������������������������������������������������������������������������������������������������������������������������� cooperative research centre CRRDC �������������������������������������������������������������������Council of Rural Research and Development Corporation CSIRO ����������������������������������������������Australian Government Scientific and Industrial Research Organisation CSS �����������������������������������������������������������������������������������������������������������Commonwealth Superannuation Scheme DNA ���������������������������������������������������������������������������������������������������������������������������������������������deoxyribonucleic acid 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 IP ����������������������������������������������������������������������������������������������������������������������������������������������������� intellectual property IRR ������������������������������������������������������������������������������������������������������������������������������������������������ internal rate of return LCA ������������������������������������������������������������������������������������������������������������������������������������������������� life cycle assessment LCI ����������������������������������������������������������������������������������������������������������������������������������������������������� life cycle inventory MLA �������������������������������������������������������������������������������������������������������������������������������Meat and Livestock Australia NFF ��������������������������������������������������������������������������������������������������������������������������������� National Farmers’ Federation NIR ���������������������������������������������������������������������������������������������������������������������������������������near infrared spectroscopy NPV �������������������������������������������������������������������������������������������������������������������������������������������������������net present value OAIC ������������������������������������������������������������������������������������Office of the Australian Information Commissioner OECD ���������������������������������������������������������������������Organisation for Economic Cooperation and Development OHS ��������������������������������������������������������������������������������������������������������������������������Occupational Health and Safety PGPA �����������������������������������������������������������������Public Governance, Performance and Accountability Act 2013 PISC �����������������������������������������������������������������������������������������������������������Primary Industries Standing Committee RDCs ������������������������������������������������������������������������������������������������������� Research and Development Corporations RGA ���������������������������������������������������������������������������������������������������������������������������������������RiceGrowers’ Association RIRDC �����������������������������������������������������������������������Rural Industries Research and Development Corporation

191 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 �����������������������������������������������������������������������������������������������������������������������������������Honeybee 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

192 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 197 A.5 Glossary Mandatory 191 A.5 Contact officer(s) Mandatory 201 A.5 Internet home page address and Internet address for report Mandatory 1 9 Review by Secretary 9(1) Review by Chairperson Mandatory 11 9(2) Summary of significant issues and development Suggested 11, 102 9(2) Overview of department's performance and financial results Suggested 33-35 9(2) Outlook for following year Suggested 11; 51-93 9(3) Significant issues and development - portfolio Portfolio 51-93 departments – suggested 10 Departmental Overview 10(1) Role and functions Mandatory 6 10(1) Organisational structure Mandatory 9 10(1) Outcome and program structure Mandatory 10;37 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 37 departments – mandatory 11 Report on Performance 11(1) Review on performance during the year in relation to Mandatory 51-93 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 PAES, details of both former and new targets, and reasons for the change 11(2) Narrative discussion and analysis of performance Mandatory 11; 51-93 11(2) Trend information Mandatory 51-93 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 51-93 departmental performance 11(3) Contribution of risk management in achieving objectives Suggested 101 11(4) Social inclusion outcomes If applicable; 101 mandatory

193 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 118-119 financial performance 11(7) Discussion of any significant changes from the prior year, Mandatory 118-119 from budget or anticipated to have a significant impact on future operations. 11(8) Agency resource statement and summary resource Mandatory 33-35; tables by outcomes 121-125 12 Management and Accountability

Corporate Governance 12(1) Agency heads are required to certify that their agency Mandatory 101 comply with the Commonwealth Fraud Control Guidelines. 12(2) Statement of the main corporate governance Mandatory 95-114 practices in place 12(3) Names of the senior executive and their responsibilities Suggested 201 12(3) Senior management committees and their roles Suggested 201 12(3) Corporate and operational planning and associated Suggested 15; 47-48; performance reporting and review 51-93 12(3) Approach adopted to identifying areas of significant Suggested 101 financial or operational risk 12(3) Policy and practices on the establishment and maintenance Suggested 96-98 of appropriate ethical standards 12(3) How nature and amount of remuneration for SES Suggested 97; 107 officers is determined External Scrutiny 12(4) Significant developments in external scrutiny Mandatory 102 12(4) Judicial decisions and decisions of administrative tribunals Mandatory 102 12(4) Reports by the Auditor-General, a Parliamentary Mandatory 102 Committee or the Commonwealth Ombudsman Management of Human Resources 12(5) Assessment of effectiveness in managing and developing Mandatory 107 human resources to achieve departmental objectives 12(6) Workforce planning, staff turnover and retention Suggested 107 12(6) Impact and features of enterprise or collective agreements, Suggested 107 individual flexibility arrangements (IFAs), determinations, common law contracts and AWAs 12(6) Training and development undertaken and its impact Suggested 107 12(6) Work health and safety performance Suggested 108 12(6) Productivity gains Suggested N/A 12(7) Statistics on staffing Mandatory 9; 107 12(8) Enterprise or collective agreements, IFAs, determinations, Mandatory 107 common law contracts and AWAs 12(9) & Performance pay Mandatory 152 (B) 12(10)- Assets management If applicable; 118 12(11) Assessment of effectiveness of assets management mandatory

194 Ref. Description Requirement Page No. 12(12) Purchasing Mandatory 118 Assessment of purchasing against core policies and principles 12(13)- Consultants Mandatory 100 (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 118 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 117-161 Other Mandatory Information 14(1) & Work health and safety (Schedule 2, Part 4 of the Work Mandatory 108 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 109 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 113 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 193

195 196 INDEX

A Chair’s report 11 Chicken Meat 56 Accountability 96, 99, 101, 185 Climate Change 39, 40, 90 Advisory Panels 186 Climate Change Research Strategy for Agricultural productivity 52 Primary Industries (CCRSPI) 90 Alpaca 73 Climate Variability 41 Annual Operational Plan 6, 15, 47 Coffee 74 Appendices 167 Collaboration 39 Audit Committee 95 Comcover 101 Auditor’s report 118 Commonwealth Fraud Guidelines 101 Australian Bureau of Agricultural and Compliance with general policies of Resource Economics and Government 107 Sciences (ABARES) 40, 53, 56, 191 Compliance with legislative requirements Australian Government Research 108 Priorities 6, 47 Conflict of interest 98, 100 Australian Pesticides and Veterinary Corporate Directory 201 Medicines Authority 191 Corporate Governance 95 Australian Rural Leadership Foundation 86, CSIRO 39, 40, 41, 90, 191 103, 152 D B Dates 74 Barnaby Joyce 5, 6, 13, 189 Department of Agriculture 5, 30, 40, 41, 52, Bioenergy, Bioproducts and Energy 83, 192 75, 102, 104, 105, 138, 142 Biosecurity 27, 39 Director’s statement 120 Board 103 Dynamic Rural Communities 91, 92 Appointments 95 Charter 95 E Committees 96 Composition 95 Enabling legislation 6, 187 Directors 103 Environment Protection and Biodiversity Craig Burns 103 Conservation Act 1999 195 Daniela Stehlik 5, 11, 103 Equity 122, 123, 161, 162 Heather Stacy 105 Essential Oils and Plant Extracts 70 Jan Mahoney 104 Ethical standards 96, 194 Keith Steele 106 Evaluation 43 Kevin Goss 104 Expenditure 33, 35, 100 Len Stephens 106 Tony Hamilton 104 William Ryan 105 Expertise 96 Meetings 97 remuneration 97 C Certification 7

197 F K Financial and operational summary 33 Key Achievements 24 Financial and performance statements 33, Key performance indicators 15 117 Balance sheet 122 M Cash flow statement 124 Managing Director 103 Index to the notes to the financial Ministerial directions 102 statements 127 Ministerial reporting 102 Schedule of commitments 125 Myrtle rust 41, 70, 71, 91, 92, 111 Statement of changes in equity 123 Statement of comprehensive income 121 N Financial snapshot 33 Five-year R&D plans 6, 15, 47, 109 National Farmers’ Federation (NFF) 52, 95, Fodder Crops 59, 192 96, 189 Fraud control 101 National Rural Issues 52 Freedom of information 112, 114 National Rural Research, Development and Funding allocations 47, 48 Extension Framework 90 Native Foods 74 G Native Plants 80 New and Developing Animal Industries 72 , , Ginger 167 173 186 New and Developing Plant Industries 74 Global Challenges 54 Glossary 191 O Goal 1: Promote leadership and innovation in the rural sector 51 Organisational structure 9 Goal 2: Increase profit and productivity in rural industries 55 P Goal 3: Enhance sustainability across the Pasture Seeds 41, 55, 64 rural sector 82 Performance against the Australian Governance 95 Government’s research priorities 47 Performance review 97 H Plant Industries (New and Emerging) Hendra virus 40, 88, 89 55, 74 Heywire 86 Pollination 60 Honey bee 60, 110, 175 Portfolio budget statements 15 Horizon Scholarship 29, 86 Post 2014-15 events 102 Horse 62, 88, 177 Primary Industries Health and Safety Horticulture Innovation Australia 40, 41, 60 Partnership (PIHSP) 82 Public Governance, Performance and Ac- I countability Act 2013 (PGPA Act) 5, 99, 102, 183, 184, 185 Indemnities and insurances 101 Information Publication Scheme 114 Innovation 48, 51, 187 Intellectual Property 99 Investing in People 82, 86

J Judicial decisions 102

198 R R&D outputs and outcomes for 2014-15 50 Related entity transactions 99 Research Agreement 99, 100 Revenues 34, 129, 134 Rice 182 RIRDC’s portfolio structure 37 RIRDC’s purpose 6 Risk management 101 Rural Women’s Award 28, 86 S Scholarships 58, 66, 87, 192 Service charter 187 Significant events 102 Staff 107 Stakeholders 187, 188 T Tea Tree Oil 78 The Environment Protection and Biodiversity Conservation Act 1999 109 Thoroughbred 44, 62 Tropical fruits 74 Truffles 74 V Varroa mites 61 W Wildflowers 80 Work Health and Safety Act 2011 108

199 200 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

General Manager, Ph. 02 6271 4124 Policy and Cross-Sectoral Vicki Woodburn

Senior Program Manager, Ph. 02 6271 4128 Animal Industries Dave Alden

Senior Program Manager, Ph. 02 6271 4138 Plant Industries John de Majnik

Manager, Communications Ph. 02 6271 4175 and Public Affairs Damon Whittock

Finance Manager Ph. 02 6271 4158 Peter Waddell

201 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

www.rirdc.gov.au

202