Plant & Food Research Annual Report 2015

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Plant & Food Research Annual Report 2015 G.42 ANNUAL REPORT 2015 To enhance the value and productivity of New Zealand’s horticultural, arable, seafood and food and beverage industries to contribute to economic growth and the environmental and social prosperity of New Zealand. Our science is Growing Futures™ OUR PURPOSE To enhance the value and productivity of the horticultural, arable, seafood and food and beverage industries. Developing new uses for by-products, such as electrospinning nanofibres from marine collagen, adds value to New Zealand’s plant and marine- based food industries. OUR MISSION A sustainable business delivering science that maximises opportunities to enhance New Zealand’s economic, environmental 1 and social prosperity. OUR VISION Valued by our stakeholders and admired by our peers for the quality and impact of 2 our science. OUR VALUES The creative application of our knowledge; Relationships based on honesty, mutual respect and trust; 3 Achievement through leadership. This report presents Plant & Food Research’s operating results for the financial year ending 30 June 2015. It meets our reporting requirements for the Acts of Parliament under which we are governed. Unless otherwise stated, all figures are in New Zealand Dollars ($). This report also demonstrates how we are supporting our Core Purpose industries in meeting their targets for economic and environmental sustainability. It provides easy-to-read information outlining our performance and strategy, as well as case studies that demonstrate a cross-section of our research and outreach activities. This information is presented for the interest of our key stakeholders, including shareholders, staff, commercial partners and research collaborators. Presented to the House of Representatives pursuant to Section 39 of the Public Finance Act 1989 www.plantandfood.co.nz/growingfutures More information can be found on our company website and via our social media channels. CONTENTS SECTION 05 → OUR SCIENCE 50 4 About us 52 Our science 6 Our locations 54 Innovation through research collaborations 7 Our performance 56 Core Funding 8 Highlights 2015 SECTION 06 → OUR MANAGEMENT 62 SECTION 01 → OUR STRATEGY 10 64 Corporate governance 12 Chairman’s commentary 66 Board of Directors 14 CEO’s review 67 Science Advisory Panel 16 Our Strategy Roadmap 68 Senior management team 69 Organisational chart SECTION 02 → OUR IMPACT 18 SECTION 07 → FINANCIAL STATEMENTS 70 20 Our Core Purpose 22 Better cultivars faster™ 72 Financial statements 24 Residue-free pest and disease control 74 Directors’ report 26 Sustainable and profitable production systems 75 Independent auditors’ report 28 Proprietary foods with premium prices 76 Statements of comprehensive income 30 Sustainable, premium seafood and marine 77 Statements of changes in equity products 78 Balance sheets 79 Cash flow statements SECTION 03 → OUR RELATIONSHIPS 32 80 Notes to the financial statements 34 Engagement with Māori 103 Performance indicators 36 Enhancing our customer focus 104 Statement of responsibility 38 International relationships 106 Directory SECTION 04 → OUR PEOPLE 42 107 Index 44 Good employer responsibilities 48 People highlights Annual Report 2015 Plant & Food Research 3 About us OUR SECTORS OUR HISTORY → 1926 The Department of Scientific and Industrial Research (DSIR) formed. → 1928 DSIR joined with the Department of Agriculture in establishing a Plant Research Station. FOOD AND HORTICULTURE WINE SEAFOOD BEVERAGE CROPPING → 1936 Plant Research Station transferred entirely to the DSIR. The DSIR began doing its own research rather than coordinating that of other institutions. 2014 Export market value ($B) → 2.58 1.32 1.54 30.6 0.28 1980 The Fish Research Unit established at DSIR. → 1992 Ten Crown Research Institutes (CRIs) 2014 Domestic market value ($B) established out of former government departments. 2.51 0.75 0.35 17.6 1.5 → 2008 Plant & Food Research formed following the merger of former CRIs HortResearch and Crop & Food Research. Future target ($B) 10 2 3 60 1.95 BY 2020 EXPORTS EXPORTS EXPORTS BY 2025 BY 2020 BY 2025 BY 2025 Plant & Food Research is The Institute brings together a New Zealand-based more than 80 years of food, company providing research horticulture, arable and and innovation to ensure seafood research to deliver the sustainable growth of knowledge and technology the plant and marine-based to enhance New Zealand’s food industries. economic, environmental and social prosperity. 4 Plant & Food Research Annual Report 2015 OUR PEOPLE OUR FUNDING Research Core support $43.1M Contestable 82 $17.1M HEAD General Other REVENUE COUNT SOURCES 136 $2.4M Royalties $20.3M Senior leadership Research 12 51% 49% Commercial 626 $46.0M Our activities are funded through the We have close to 850 staff New Zealand Government based at 14 sites across – our sole shareholder – New Zealand, as well as offices in the form of Core Funding in Australia and the USA. and contestable research funding, as well as through commercial revenues. Meeting consumer demands for safe, sustainable and nutritious foods ensures New Zealand produce commands a premium in global markets. Annual Report 2015 Plant & Food Research 5 Our locations AVOCADO BERRY 1 BRASSICA 2 16 3 CEREAL 5 4 15 17 CITRUS HOP 6 7 Australia KIWIFRUIT 9 8 10 11 PEA PIPFRUIT 12 POTATO 18 13 ONION 14 SEAFOOD SUMMERFRUIT WINE GRAPE New Zealand USA 1 KERIKERI 2 AUCKLAND 3 PUKEKOHE 4 RUAKURA RESEARCH FARM (ha) RESEARCH FARM (ha) RESEARCH FARM (ha) RESEARCH FARM (ha) 27 0 4 0 STAFF STAFF STAFF STAFF RESEARCH GENERAL TOTAL RESEARCH GENERAL TOTAL RESEARCH GENERAL TOTAL RESEARCH GENERAL TOTAL 13 1 14 197 82 279 6 - 6 52 5 57 5 TE PUKE 6 HAWKE'S BAY 7 PALMERSTON NORTH 8 WELLINGTON RESEARCH FARM (ha) RESEARCH FARM (ha) RESEARCH FARM (ha) RESEARCH FARM (ha) 48 40 0 0 STAFF STAFF STAFF STAFF RESEARCH GENERAL TOTAL RESEARCH GENERAL TOTAL RESEARCH GENERAL TOTAL RESEARCH GENERAL TOTAL 37 4 41 44 12 56 104 13 117 - 1 1 9 NELSON 10 MOTUEKA 11 BLENHEIM 12 LINCOLN TANKS (TOTAL 600,000L) RESEARCH FARM (ha) RESEARCH FARM (ha) RESEARCH FARM (ha) 48 31 10* 210 STAFF STAFF STAFF STAFF RESEARCH GENERAL TOTAL RESEARCH GENERAL TOTAL RESEARCH GENERAL TOTAL RESEARCH GENERAL TOTAL 35 6 41 27 3 30 14 1 15 163 20 183 13 CLYDE 14 DUNEDIN 15 16 17 AUSTRALIA 18 USA RESEARCH FARM (ha) RESEARCH FARM (ha) 15. ADELAIDE 18. DAVIS, CALIFORNIA 16. BRISBANE 56 0 17. ALBURY STAFF STAFF STAFF STAFF RESEARCH GENERAL TOTAL RESEARCH GENERAL TOTAL RESEARCH GENERAL TOTAL RESEARCH GENERAL TOTAL 8 1 9 6 - 6 4 2 6 - 1 1 * VIA MARLBOROUGH RESEARCH CENTRE 6 Plant & Food Research Annual Report 2015 Our performance FINANCIAL PERFORMANCE * CORE 2010/11 113,217 CONTESTABLE COMMERCIAL 2011/12 121,375 ROYALTIES $ OTHER 2012/13 119,051 REVENUE ($000) 2013/14 119,588 2014/15 128,879 * Core Funding was allocated from 2011/12. Prior to this, Plant & Food Research received Capability Funding. $ ANNUAL REVENUE / SCIENCE FTE 193 207 212 213 224 ($000) 2010/11 2011/12 2012/13 2013/14 2014/15 SCIENCE PERFORMANCE TARGET 85% 83% 86% 90% 86% 88% 264 315 307 286 303 2010/11 2011/12 2012/13 2013/14 2014/15 2010/11 2011/12 2012/13 2013/14 2014/15 PEER-REVIEWED COMPLETED RESEARCH PUBLICATIONS MILESTONES Annual Report 2015 Plant & Food Research 7 Highlights 2015 → RIGHT: Opening the ‘Hop Lab’ to evaluate the sensory characteristics of new hop cultivars. The experimental brewery, in partnership with NZ Hops and Chris Little Engineering, will support the identification and commercialisation of new hops with characteristics desired by the craft brewing industry. → Supporting three new Sustainable Farming Fund projects to increase New Zealand horticultural exports. The projects, led by Onions New Zealand, the Foundation for Arable Research with Potatoes New Zealand, and Pipfruit New Zealand, will develop new tools and technologies to enhance export crop production. PAGE 39 → LEFT: Initiating new → Launching the Joint research with the New Graduate School of Zealand Aid programme Horticulture and Food to increase the income of Enterprise at Massey small-scale farmers in University. The School will Cambodia. The five-year increase opportunities for programme will identify students at the university high-value vegetables and to become involved with support training of farmers in commercial research that crop production techniques benefits the food industry. and safe agrichemical use. FOR MORE GO TO PAGE 39 → Partnering with Massey University, AgResearch, → Supporting the Ministry the Cawthron Institute, for Primary Industries in ESR and the universities the Queensland fruit fly of Auckland and Otago to biosecurity response in secure funding for a new Auckland. More than 50 staff food safety research centre. worked with MPI to support The $5 million Food Safety the initial incursion and Science & Research Centre eradication response. will ensure that New Zealand remains an international leader in the food safety field. PAGE 55 NEW ZEALAND-CHINA JOINT LABORATORY FOR KIWIFRUIT RESEARCH RIGHT: Partnering with the Sichuan Provincial Academy of Natural Resource Sciences (SPANRS) to launch the New Zealand-China Joint Laboratory for Kiwifruit Research. The Joint Laboratory will further research into kiwifruit diseases and physiology, as well as conservation of the native kiwifruit germplasm found in China. FOR MORE GO TO PAGE 55 8 Plant & Food Research Annual Report 2015 LAUNCHING A NEW → Partnering with Massey University, AgResearch, the Riddet Institute and the universities of FELLOWSHIP TO BUILD Auckland and Otago to secure $16 million of MBIE funding for the development of new STRONGER RELATIONSHIPS food engineering technologies. The research will develop new and extend existing food WITH SCIENTISTS IN CHINA processing technologies to enable manufacture of new added-value products and improve food manufacturing efficiency. The annual Fellowship, named for eminent Chinese → Publishing initial results from the Precision scientist Li Lairong (above), will be awarded to a Seafood Harvesting programme that horticultural scientist from China to spend up to demonstrate improved survival of young three months at one of Plant & Food Research’s sites snapper.
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