G.42 Annual Report 2020 Presented to the House of Representatives pursuant to Section 39 of the Public Finance Act 1989 This annual report presents operating results for The New Zealand Institute for Plant and Food Research Limited (Plant & Food Research) for the financial year ending 30 June 2020. 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 against our Statement of Corporate Intent 2019/20, 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, clients and research collaborators. Cover photo We have a team of 1000 people, including berryfruit technician Lenka James, working towards creating a smart green future for Aotearoa New Zealand. plantandfood.co.nz More information can be found on our company website and via our social media channels. J008927 Contents 2 About us 4 Our locations 5 Our performance 6 Our highlights 8 Celebrating our people Section 1 Our Strategy 10 12 Report from the Chair 14 CEO’s review 16 Our strategy for a smart green future Our 18 Our sustainability agenda To enhance the value Section 2 Apply / Whakamahi 20 Core Purpose 22 Lifting our customer engagement, and productivity brand & innovation 28 Stronger partnerships with Māori of New Zealand’s Section 3 Share / Tuari 32 horticultural, arable, 34 Profitable growth in science services 40 A world-class technology development business seafood and food and Section 4 Invest / Whakangao 46 beverage industries 48 Investing in future science to contribute to 54 Investing in facilities & information 56 Investing in people economic growth and Section 5 Our Governance 60 the environmental and 62 Corporate governance 64 Board of Directors social prosperity of 65 Science Advisory Panel New Zealand. 66 Organisational chart Section 6 Financial Statements 68 70 Financial performance 71 Directors’ report 72 Independent auditors’ report 74 Statement of comprehensive income 75 Statement of changes in equity 76 Balance sheet 77 Cash flow statement 78 Notes to the financial statements 101 Performance indicators 102 Statement of responsibility 104 Directory AboutAt Plant & Food Research,us we The Institute brings together more than 90 years believe science can create a of research supporting the primary industries. better future. By finding smarter, 1926 The Department of Scientific and Industrial Research greener options today, we’re (DSIR) formed helping secure the world we want 1928 DSIR joined with the Department of Agriculture in to live in tomorrow. With our establishing a Plant Research Station partners, we use world-leading 1936 Plant Research Station transferred entirely to the science to improve the way they DSIR. The DSIR began doing its own research rather grow, fish, harvest and share than coordinating those of other institutions food. Every day, we have 1,000 1980 The Fish Research Unit established at DSIR people working across Aotearoa 1987 Ministry of Agriculture and Forestry (MAF) Technology New Zealand and the world to division formed help deliver healthy food from the 1992 Ten Crown Research Institutes (CRIs) established out world’s most sustainable systems. of former government departments, including DSIR and MAF Technology 2008 Plant & Food Research formed following the merger of former CRIs HortResearch and Crop & Food Research Our Mission — to create the world’s most sustainable food systems Our activities are funded through direct We have more than 900 staff based at 14 commercial research for our customers, the sites across New Zealand, as well as offices reinvestment of royalties and the New Zealand in Australia and the USA. Government’s investment in science. Contestable Head count Strategic funding $13.1M Research $43.1M support 102 Royalties General $51.6M Other 973 168 $1.9M Senior leadership Commercial COVID-19 13 $50.4M recovery funding Research 50% 50% $8.8M 690 Strategic funding — Government investment allocated directly to each CRI Contestable — Government investment allocated through competitive bidding Royalties — Commercial return from plant varieties and IP Commercial — Direct investment by customers COVID-19 recovery funding — Government allocated COVID-19 funding Other — All other income sources 2 PLANT & FOOD RESEARCH ANNUAL REPORT 2020 Our science plays a vital role in the success of our sectors Food and Horticulture Wine Seafood Cropping beverage 2019 Domestic market value ($NZB) 2.7 0.6 0.4 21 1.6 2019 Export market value ($NZB) 4.4 1.8 1.9 36 0.3 $96 $470 $18 million million million United Kingdom and Ireland Continental $824 $174 $299 million million million Europe $301 $680 $268 North million million million America $2462 $104 $1089 Asia million million million $21 $50 Africa million million Central and South America $453 Australia million $361 $224 $17 $28 million million million million New Zealand exports Horticulture Wine Seafood Horticulture and wine — year to 30 June 2019 Seafood — year to 31 December 2019 PLANT & FOOD RESEARCH ANNUAL REPORT 2020 3 Our locations Key Avocado 1 Berryfruit Brassica 2 16 3 Cereal 5 4 15 17 Citrus 6 Hop 7 Australia Kiwifruit 9 8 10 11 Pea Pipfruit 12 Potato 13 18 Onion 14 Seafood Summerfruit New Zealand USA Wine grape 1/ Kerikeri 2/ Auckland 3/ Pukekohe 4/ Ruakura SITE AREA Total Research farm SITE AREA Total Research farm SITE AREA Total Research farm SITE AREA Total Research farm (ha) 52 46 (ha) 7 - (ha) 3 2 (ha) 6 1 RESEARCH RESEARCH RESEARCH RESEARCH PLANTINGS PLANTINGS PLANTINGS PLANTINGS STAFF Research General Total STAFF Research General Total STAFF Research General Total STAFF Research General Total 10 6 16 180 142 322 3 - 3 62 9 71 5/ Te Puke 6/ Hawke’s Bay 7/ Palmerston North 8/ Wellington SITE AREA Total Research farm SITE AREA Total Research farm SITE AREA Total Research farm Co-located at Science New Zealand (ha) 46 37 (ha) 48 44 (ha) 9 6 RESEARCH RESEARCH RESEARCH PLANTINGS PLANTINGS PLANTINGS STAFF Research General Total STAFF Research General Total STAFF Research General Total STAFF Research General Total 42 12 54 50 19 69 99 22 121 - 1 1 9/ Motueka 10/ Nelson 11/ Blenheim 12/ Lincoln SITE AREA Total Research farm SITE AREA Total Research farm Co-located at Marlborough Research SITE AREA Total Research farm (ha) 55 52 (ha) 1 - Centre. Includes 10ha of research farm (ha) 186 176 RESEARCH FINFISH FACILITY RESEARCH RESEARCH PLANTINGS 324,700L PLANTINGS PLANTINGS STAFF Research General Total STAFF Research General Total STAFF Research General Total STAFF Research General Total 29 9 38 40 10 50 12 1 13 148 48 196 13/ Clyde 14/ Dunedin 15/ 16/ 17 Australia 18/ USA SITE AREA Total Research farm Co-located at University of Otago 15. South Australia 18. California (ha) 58 57 16. Queensland RESEARCH 17. Victoria PLANTINGS STAFF Research General Total STAFF Research General Total STAFF Research General Total STAFF Research General Total 6 3 9 3 - 3 5 1 6 - 1 1 4 PLANT & FOOD RESEARCH ANNUAL REPORT 2020 Our performance Revenue ($000) Budgeted figure in brackets 2014/15 128,879 (125,950) 2015/16 139,748 (136,175) 2016/17 145,840 (141,915) 2017/18 156,401 (158,336) 2018/19* 168,879 (163,753) 2019/20 168,956 (179,586) Strategic funding Contestable Commercial Royalties COVID-19 Recovery Funding Other Annual revenue / science FTE ($000) 275 250 225 200 175 150 2014/15 2015/16 2016/17 2017/18 2018/19* 2019/20 Peer-reviewed publications Milestones completed to agreed timelines 384 350 339 88% 89% 86% 86% 86% 86% 303 312 313 85% 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 * Revenue as reported in the 2018/19 financial year reflects the impact of adoption of New Zealand Equivalents to International Financial Reporting Standards 15 (NZ IFRS 15). PLANT & FOOD RESEARCH ANNUAL REPORT 2020 5 Launched hot climate Launched the first apple tailored applespecifically for growing in hot regions from the New Zealand- Spain collaborative Hot Climate Programme. ‘HOT84A1’ is a mid- season, partial red-skinned sweet apple with a lightly crisp and very juicy texture. The first commercial trees will be planted in early 2021 on the Iberian Peninsula by Fruit Futur. Conducted studies which showed New Zealand blackcurrants can Recognised at Biosecurity Awards for improve sports performance, benefit multi-organisation myrtle rust effort. exercise recovery and motivation The Myrtle Rust Research Consortium, to adhere to exercise. New Zealand of which Plant & Food Research is blackcurrants improved sports a member, won the Bio-Protection performance by 0.45% compared Research Centre Science Award for with a placebo according to a meta- Highlights its rapid and integrated research analysis conducted with the University response to the fungal disease that of Auckland. Other studies found attacks many taonga plants. daily consumption of New Zealand blackcurrants either maintained Joined forces with Māori groups to or enhanced exercise recovery explore the use of technologies to effectiveness, and that consuming preserve reproductive cells of taonga blackcurrant juice one hour prior to fish and develop local skills to start a exercise produces a significantly lower nursery of regional treasures for the perception of exercise exertion. Uawanui community. The two projects support our vision to become a trusted Launched Operation Pollinator with and meaningful partner of Māori Syngenta in New Zealand. Operation and promote prosperity by weaving Pollinator, a global programme, aims Mātauranga Māori (Māori knowledge) to boost the numbers of pollinating with Western science.