grdc annual operational plan...priorities and performance to help achieve the objectives set out in...

GRDCAnnual Operational Plan

2008–09

The GRDC

The Grains Research and Development Corporation is astatutory authority established to plan and invest in R&D for the Australian grains industry.

Its primary objective is to support effective competition by Australian grain growers in global grain markets, through enhanced profitability and sustainability.

Its primary business activity is the allocation andmanagement of investment in grains R&D.

GRDC VisionDriving innovation for a profitable and environmentallysustainable Australian grains industry.

GRDC MissionTo invest in innovation for the greatest benefit to itsstakeholders. This will be achieved by being a global leaderin linking science, technology and commercialisation withindustry and community needs.

GRDC ValuesCommitment and action in meeting the needs of our stakeholders and exceeding their expectationsWinning as a teamAchievement of superior resultsCreativity and innovationOpenness and trust in dealing with peopleA performance-driven cultureEthical behaviour in all our activities

Level 1, 40 Blackall Street, Barton ACT 2600 | PO Box 5367, Kingston ACT 2604 | t. 02 6166 4500 | f. 02 6166 4599 | [email protected] | www.grdc.com.au

30 April 2008

The Hon. Tony Burke, MPMinister for Agriculture, Fisheries and ForestryParliament HouseCANBERRA ACT 2600

Dear Minister

I am pleased to submit for your approval the annual operational plan of the Grains Research andDevelopment Corporation (GRDC) for the financial year 2008–09. This is required under sections 25and 26 of the Primary Industries and Energy Research and Development Act 1989.

In developing the plan, the GRDC has been conscious of the need to facilitate performance reporting,as required under the Commonwealth Authorities and Companies Act 1997. This is consistent with thecorporation’s responsibility to plan and report in an ‘outcomes and outputs’ framework.

The coming financial year will be the second under the GRDC’s current five-year strategic R&D plan,Prosperity through Innovation.

The research activities outlined in this annual operational plan will contribute to implementing thestrategies and achieving the objectives set out in Prosperity through Innovation for the period 2007 to 2012.

Table 4 indicates how the GRDC’s R&D portfolio addresses the Australian Government’s NationalResearch Priorities and Rural R&D Priorities including the government’s focus on climate change andproductivity.

Part 5 of this annual operational plan explains that estimates of expenditure are indicative. Changes inthe operating environment may require the GRDC to vary the total expenditure or specific allocationsto secure its objectives. Variations may be required as a result of additional investments not presentedin this plan, or as a result of budget revisions arising from changes in levy income.

Yours sincerely

Keith PerrettChairman

Postal addressGrains Research and Development CorporationPO Box 5367KINGSTON ACT 2604

LocationLevel 1, Tourism House40 Blackall StreetBARTON ACT 2600

Telephone: 02 6166 4500Facsimile: 02 6166 4599Web site: www.grdc.com.au

Production notesCompliance editor: Noelia FreitasProgram editor: Zoltan LukacsConcepts, text and research: GRDCEditing: WordsWorth Writing, CanberraDesign and typesetting: Four Design Group, QueenslandPrinting: Goanna Print, Canberra

© Grains Research and Development Corporation 2008

ISSN 1038-670X

This publication is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without permission from the Grains Research and Development Corporation.

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Contents

Executive summary 2

1 The GRDC 4

Structure 4

Relationships with stakeholders 5

Performance evaluation 5

Planning and reporting 6

2 Investment strategy 7

Business environment 7

Investment process 7

3 R&D priorities 8

Australian grain grower priorities 8

Australian Government priorities 10

4 Planned outputs in 2008–09 13

Output Group 1—Practices 13

Output Group 2—Varieties 18

Output Group 3—New Products 21

Output Group 4—Communication & Capacity Building 24

Enabling functions 27

5 Estimated income and expenditure in 2008–09 30

Income 30

Expenditure 31

Payments to the Grains Council of Australia 31

Abbreviations list 34

Key contacts inside back cover

1

Executive summary

2

By strategically investing in R&D and the delivery of R&Doutputs, the Grains Research and Development Corporation(GRDC) works to achieve one outcome:

Through its commitment to innovation, an Australian grainsindustry that is profitable and environmentally sustainable for the benefit of the industry and wider community.

The outcome reflects the corporate vision in Prosperity throughInnovation, the GRDC’s Strategic R&D Plan 2007–12, and isconsistent with the Agriculture, Fisheries and Forestry portfoliogoal of achieving more sustainable, competitive and profitableAustralian agriculture, food, fisheries and forestry industries.

This annual operational plan sets out the GRDC’s objectivesand strategies for 2008–09, in the context of the strategic R&D plan and the drivers of change in the businessenvironment, against a background of variable seasons. The GRDC plans to further develop themes of ‘climatechange’ and ‘productivity’ across its four output groups in2008-09 by characterising and monitoring its R&D portfolio.

This plan describes how the GRDC’s investments andoperations will address the R&D priorities of Australian graingrowers and the Australian Government, and details theperformance indicators that will be used to measure successin 2008–09. It also forecasts the GRDC’s income andexpenditure, matching resources to objectives.

The GRDCThe GRDC is a statutory authority, established to invest inR&D and related activities to benefit the Australian grainsindustry and the wider Australian community. The GRDC isfunded by an industry levy and Australian Governmentcontributions. Its research portfolio covers 25 leviable crops,spanning temperate and tropical cereals, coarse grains,pulses and oilseeds.

A board of directors governs the GRDC, informed by theExecutive Management Team and a system of advisorypanels. The panels, which include grain growers,agribusiness practitioners, scientists and the corporation’sexecutive managers, advise the Board on national andregional R&D priorities and help the GRDC to work closelywith its stakeholders.

The GRDC has four output groups: Practices, Varieties, New Products and Communication & Capacity Building. At the operational level these four output groups form theGRDC’s three lines of business. The three lines of businessare supported by two enabling functions: Corporate Services and Corporate Strategy & Program Support.

The GRDC continually assesses the performance of itsprograms and projects, and their impact on the Australiangrains industry and wider community, and regularly reports to stakeholders.

Investment strategyThe GRDC’s primary objective is to support effectivecompetition by Australian grain growers in global grainmarkets, through enhanced profitability and sustainability. Over the period from 2007–08 to 2011–12, this objective willbe achieved by four overarching corporate strategies and a set of strategies for each output group, as set out inProsperity through Innovation.

To ensure that its strategies remain relevant, the GRDCcontinually monitors and reviews changes in its businessenvironment. Factors that are expected to influence thebusiness environment in 2008–09 include:

the continuing need for greater understanding of both theimpact of agriculture on greenhouse gas emissions andclimate change and the impact of climate change onagriculture

competition for grains, between domestic traders, thelivestock industry and the emerging biofuels industry,affecting domestic grain prices

the importance of demonstrating the impact of R&D onproductivity performance and profitability

continuing change in the characteristics of the Australianand global grain markets, including changes to wheatmarketing arrangements.

Informed by the five-year strategies and business conditions,the GRDC tailors its investment portfolio each year to bestaddress:

Australian grain grower priorities, as identified throughconsultation meetings held with the Grains Council ofAustralia, local research advisory committees, growergroups, grower organisations and individual grain growers

Australian Government priorities, as identified by theNational Research Priorities and Rural R&D Priorities.

Priorities and performanceTo help achieve the objectives set out in Prosperity throughInnovation, the GRDC has identified key priorities for 2008–09.Part 3 and Part 4 of this annual operational plan providedetails of these priorities, and describe how they relate to theprevailing business environment and the R&D priorities of theAustralian Government and Australian grain growers.

Priorities for 2008–09 include:

climate change—developing more resilient grain varieties,including drought tolerant and frost tolerant varieties, underpredicted climate change scenarios, and working onCropMate, the climate information management tool forcrop production, which will collate climate, weather, soil,crop and economic data associated with the decisionpoints in a grain production system in a particular locality

greenhouse gas emissions—studying paddock-basedgreenhouse gas emissions from Western Australian grainproduction, to allow assessment of greenhouse gasemissions throughout the life cycle from wheat to bread,enable better targeting of greenhouse gas mitigationpractices and identify areas where nitrogen use efficiencycan be improved to increase grain production profitability

weed management in changing farming systems—identifying the likely impact of weed threats and developingappropriate methods for managing weeds in changing farming systems

water use efficiency—establishing a national approach to achieve improvements in water use efficiency, focusingon creating partnerships between growers, researchorganisations and agribusiness to develop strategicprojects and monitor overall progress in each region

wheat breeding—supporting wheat breeding activities inAustralia through holding equity in wheat breeding entities,investing in pre-breeding research, and supporting NVT

barley breeding—developing a productive, profitable andsustainable Australian barley industry supported by therelease of commercially successful, market-targeted, elitecultivars of malting barley and feed barley

National Durum Wheat Improvement Program—developing a profitable, internationally competitive andecologically sustainable Australian durum wheat industry

Australian Winter Cereals Pre-Breeding Alliance—fostering greater levels of communication, coordination andcollaboration between research partners through a nationalapproach to cereal pre-breeding research

crop improvement of grain sorghum in Australia—developing improved germplasm that will benefit growerprofitability by increasing the yield and value of the grainand reducing production costs and losses

post-harvest grain hygiene—working to integrate andfocus the research effort on fumigation and insectmanagement in grain storage

new grain quality testing—developing a rapidreplacement for the ‘falling number test’ used for assessingweather damage to grain when there is a wet finish to theseason, which will benefit growers by avoiding significantdelays while samples are tested

international collaboration—supporting valuableinternational alliances and investments, such as acontractual agreement and investments with theInternational Maize and Wheat Improvement Center(CIMMYT) in Mexico and the Global Crop Diversity Trust

capacity building—building skills, training and education in agriculture.

These priorities are part of the GRDC’s core strategy ofcoordinating a national approach to grains R&D, whichincludes an emphasis on reducing duplication andfragmentation.

Performance measurement at both the corporate level and the output group level continues to be a key component of the annual operational plan. Performance indicators areidentified for each output group (see Part 4).

The GRDC undertakes independent research to measure theperformance of its output groups as well as the satisfaction of its stakeholders, including the Australian Government andgrain growers. The information gathered from this research,with a detailed assessment of performance, is discussed inthe GRDC’s annual report.

Estimates of income andexpenditureThe GRDC’s total income in 2008–09 is forecast to be $135.6 million, consisting of:

Australian Government contributions of $50.0 million

levy contributions of $75.8 million

other income, including interest on investments androyalties, of $9.8 million.

The GRDC Board has approved an annual expenditure of$121.0 million in 2008–09, an increase of approximately 13 percent in comparison to the 2007–08 expenditure budget.

These figures are indicative only. Changes in the GRDC’soperating environment may require the corporation to vary the total expenditure or specific allocations to secure itsobjectives.

3

The Grains Research and Development Corporation (GRDC)was established in 1990 as a statutory authority under thePrimary Industries and Energy Research and DevelopmentAct 1989 (PIERD Act). The GRDC’s primary objective is tosupport effective competition by Australian grain growers inglobal grain markets, through enhanced profitability andsustainability.

The role of the GRDC is to invest in R&D and related activitiesto benefit the Australian grains industry and the widerAustralian community. This includes:

coordinating or funding R&D activities

monitoring, evaluating and reporting on the impact of R&D activities

facilitating the dissemination, adoption andcommercialisation of the results of R&D activities.

The GRDC’s research portfolio covers 25 leviable crops,spanning temperate and tropical cereals, coarse grains,pulses and oilseeds.1 The GRDC is funded by a grower levy and Australian Government contributions.

StructureThe organisational structure of the GRDC is shown in Figure 1.

Board and Executive Management TeamA board of directors, headed by a Chairman, governs theGRDC, while a team of executive managers leads thecorporation’s business activities.

The Board oversees corporate governance, sets strategicdirection and monitors the ongoing performance of the GRDC and the Managing Director. The GRDC Board and theExecutive Management Team are responsible for managingand evaluating the organisation and its investments.

National PanelThe National Panel recommends the GRDC’s researchinvestment strategies to the Board, and assists the Board inmaintaining links with Australian grain growers, the AustralianGovernment and research partners. On advice from programteams, the National Panel also recommends proposals for thenational elements of the GRDC’s research investments.

4

1 The GRDC

GRDC Board

Panel Chair Panel Chair Panel Chair Executive Management Team

GRDC National Panel

Practices Varieties New Products

Lines of Business

CorporateServices

Corporate Strategy & Program Support

Enabling Functions

GRDC Program Teams

Northern Regional Panel

Southern Regional Panel

WesternRegional Panel

Figure 1—Organisational structure

Note: For the purposes of performance reporting each line of business corresponds to an outputgroup. The fourth output group, Communication & Capacity Building, is made up of a combinationof communication and capacity-building programs managed within the three lines of business.

1 Leviable crops are: wheat; coarse grains—barley, oats, sorghum, maize, triticale, millets/ panicums, cereal rye and canary seed; pulses—lupins,field peas, chickpeas, faba beans, vetch, peanuts, mung beans, navy beans, pigeon peas, cowpeas and lentils; and oilseeds—canola,sunflower, soybean, safflower and linseed.

Regional panelsThe GRDC’s three regional panels cover the northern, southern and western grain-growing regions of Australia.Supported by GRDC managers, the panels develop andmonitor regional investment priorities, identify investments thatrespond to the national priorities of grain growers and theAustralian Government, and make recommendations to theNational Panel. The regional panels work closely with growergroups and organisations, and have formal interactions withlocal research advisory committees, which refer researchissues to the panels on an annual basis.

Lines of business and enabling functionsAt the operational level, the GRDC’s organisational structure is divided into three lines of business: Practices, Varieties andNew Products (described as ‘output groups’ for performancereporting purposes). The lines of business are supported bytwo enabling functions: Corporate Services and CorporateStrategy & Program Support. A fourth output group,Communication & Capacity Building, delivers the outputs ofthe communication and capacity-building programs that aremanaged within the three lines of business.

Program teamsEach GRDC output group has a program team that isresponsible for developing, implementing and reviewinginvestment strategy. The program teams also evaluateprojects, prioritise potential investment opportunities andmonitor project performance.

Relationships with stakeholdersThe GRDC works closely with its two key customer groups:Australian grain growers and the Australian Government.

Grain grower interests are represented through the GRDC’snational and regional panels, and through the consultationand reporting relationships established between the GRDCand the Grains Council of Australia.

In addition to the direct benefits of the GRDC’s activities to the grains industry, the Australian Government’s priorities aremet through the benefits that flow on to the economy and thewider community. The GRDC works with various AustralianGovernment departments and agencies, in particular theDepartment of Agriculture, Fisheries and Forestry.

The GRDC also maintains strong relationships with its other stakeholders: research partners, including statedepartments, the Commonwealth Scientific and IndustrialResearch Organisation (CSIRO), universities, cooperativeresearch centres (CRCs), other rural R&D corporations(RDCs) and companies; grower groups; and co-investors in the private sector.

Performance evaluationEvaluating the impact of R&D investments and reporting tostakeholders on performance are part of the GRDC’s corebusiness. The GRDC continually assesses the performance of programs and projects against its strategies andstakeholders’ priorities by:

periodically surveying research partners, Australian graingrowers and the Australian Government to measure theirsatisfaction with the effectiveness of GRDC activities

conducting impact assessments to evaluate the benefitsthat GRDC-supported R&D is delivering to the grainsindustry, as well as the benefits that flow on to the widercommunity

monitoring total factor productivity across the mainagroecological zones to assess the industry-wide impact of the GRDC’s corporate strategies and corresponding R&D investments

conducting evaluations of progress reports and annualreports.

The GRDC will undertake impact assessment of four clustersof projects that contribute to common set of objectives andoutcomes and will generate impact assessment reports.These reports will have credible and transparentcounterfactual (without project) scenarios and will highlight the lessons learnt, which will be fed into the GRDC’sinvestment decision-making process.

Each year, the GRDC reports on its performance in terms of the detailed performance indicators identified in theDepartment of Agriculture, Fisheries and Forestry PortfolioBudget Statements. Part 4 of this annual operational plan setsout the performance indicators identified for each outputgroup for 2008–09.

5

Planning and reportingTable 1 shows the elements of the approach the GRDCadopts to meet its corporate planning and reportingobligations as a statutory corporation.

The GRDC’s annual operational plan is published in response to:

section 25 of the PIERD Act, which requires the annualoperational plan to describe how the activities planned forthe year will satisfy the objectives and strategies outlined inthe five-year R&D plan

a ministerial direction which requires the annual operationalplan to link planned outputs to the five-year strategic plan,set out relevant performance measures, and comply withthe reporting requirements outlined in the CommonwealthAuthorities and Companies (Report of Operations) Orders2005 under the Commonwealth Authorities and CompaniesAct 1997 (CAC Act)

a departmental direction which requires the annualoperational plan to be consistent with the outcomes, outputs and performance measures specified in theminister’s portfolio budget statements.

The GRDC’s annual report for 2008–09 will report in detail onthe GRDC’s performance in achieving the objectives of thisannual operational plan.

THE GRDC

Element Purpose

Annual operational plan Specifies the annual budget, resources and research priorities that give effect to the strategic R&D plan during agiven financial year

Annual procurement plan Makes procurement information publicly available through the Australian Government’s AusTender procurement management web site

Annual report Provides information on R&D activities and their performance in relation to the goals set in the annual operational plan and portfolio budget statement for a given financial year

Growers’ report Provides performance information to growers on R&D activities for a given financial year

Investment plan Informs potential research partners about some of the GRDC’s new investment priorities for the next financial yearand invites interested parties to submit research proposals

Portfolio budget statement As part of the Australian Government budget process, summarises the planned outputs, outcomes, performance information and financial statements for a given financial year

Stakeholder report Meets legislative requirements for reporting to the grains industry’s representative organisation, the Grains Councilof Australia

Statement of intent Describes how the GRDC will meet the requirements of the Australian Government’s Statement of Expectations during a given financial year

Strategic R&D plan Sets out the GRDC’s high-level goals, strategies and performance measures for a five-year period, developed in consultation with stakeholders and approved by the Minister

Table 1—Elements of the planning and reporting approach

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The GRDC’s annual operational plan is based on up-to-dateanalysis of the business environment and linked to the longerterm objectives of the strategic R&D plan, to ensure thatinvestments are relevant and targeted to enhance theprofitability and sustainability of the Australian grains industry.

Business environmentEach quarter, the GRDC reviews the ever-changing businessenvironment in which it operates, to identify emerging issuesand drivers of change.

In 2008–09, the GRDC expects change in its businessenvironment to be driven by factors including:

the continuing need for greater understanding of both theimpact of agriculture on greenhouse gas emissions andclimate change and the impact of climate change onagriculture

competition for grains, between domestic traders, thelivestock industry and the emerging biofuels industry,affecting domestic grain prices

the importance of demonstrating the impact of R&D onproductivity performance and profitability

continuing change in the characteristics of the Australianand global grain markets including changes to wheatmarketing arrangements.

the need for many growers to develop a new set ofbusiness skills to maintain their industry capacity

rationalisation of grains industry R&D investments,particularly in clarifying the roles of public and privateinvestments in strategic, basic and applied research

customer preferences regarding grain quality andsegregation.

Investment processAfter undergoing a rigorous review by the GRDC, inconsultation with stakeholders, the GRDC Investment Plan(Open and Multi-stage Tenders) 2008–09 was publiclyreleased in August 2007. The investment plan provides aclear indication of the GRDC’s investment priorities for2008–09, and complements the existing research portfolio tohelp achieve the objectives outlined in Prosperity throughInnovation.

The GRDC’s procurement process for each investment prioritycaters for multi-stage tender, open tender, limited tender anddirect negotiation. In addition, the ‘E-concept’ process hasrecommenced for 2008–09 investments. The process invitesproposals via the GRDC web site for innovative ideas withpotential to make major contributions to grain growers’productivity and profitability. It ensures a pathway through tothe GRDC for high originality and innovation.

2 Investment strategy

7

Each year the GRDC tailors its investment portfolio to bestaddress the R&D priorities identified by its key customergroups: Australian grain growers and the AustralianGovernment.

Australian grain grower prioritiesAustralian grain growers’ R&D priorities were identified duringthe development of Prosperity through Innovation, through theGRDC’s consultations with the Grains Council of Australia(GCA), local research advisory committees, grower groupsand grower organisations and individual grain growers. Key priorities identified were:

environmental– responses to climate change– improved water use efficiency– sustainability and resource management– soil health and biology

farm management– integrated farming practices and technologies– integrated management of weeds, diseases and pests– herbicide resistance management

variety development– biotechnology for improving

genetic gain– superior new varieties

new and innovative product development

capacity building– improving skills, training and education in agriculture– farm business management.

Table 2 shows how new investments in 2008–09 will directlyaddress these priorities. The GRDC’s investments in particularactivities involving the GCA are discussed in Part 5.

3 R&D priorities

Grain grower priorities Examples of relevant new GRDC investments

Environmental

Responses to climate change • Work to demonstrate to the National Emissions Trading Taskforce the credibility of including soil organic carbon in a national emissions trading scheme

Improved water use efficiency • A project to improve the integration of climate variability, available soil water and other precision agriculture information, to inform seasonal decision making

• Work to improve understanding of the genetic controls of root impedance and drought signalling in wheat, to increase the potential for drought survival in wheat

• Work to install and maintain equipment to monitor soil water balance (soil moisture, evapotranspiration and water infiltration) in conservation farming systems in grain-growing areas

• A project to help growers to improve crop water use efficiency and lift yields closer to their water-limited potential, by identifying and addressing the causes of poor water use efficiency

Sustainability and resource • A project to review current knowledge on the use of livestock in no-till systems, including an economic management analysis of the advantages and disadvantages

• A project to develop a farm nutrient loss index—a decision support tool in the form of a user-friendly Soil health and biology computer program, designed to assess the risk of nutrient loss from a paddock to the off-farm environment

• Work of the National Rhizobium Program to increase the amount of nitrogen added to Australian farming systems by rhizobial fixation in legume plant roots

• Work to identify opportunities and develop guidelines for the use of raw and composted manures and biological wastes in crop production

Farm management

Integrated farming practices • A project to nationally coordinate research to reduce the impacts of herbicide resistance and ensure the and technologies effective communication of integrated weed management solutions to the grains industry

• Work to improve knowledge of the ecology, seed bank dynamics and persistence of weeds at risk of Integrated management of developing herbicide resistanceweeds, diseases and pests • Work to further develop a national surveillance plan for high-priority emergency plant pests of the grains

industry, to continue raising biosecurity awareness in the industryHerbicide resistance • A project evaluating the potential for wheat curl mite to spread wheat streak mosaic virus in the Western management Region

• Work to identify potential economic and management benefits of in-furrow fungicide options for use in cereal and canola crops

• A project seeking to use molecular approaches to improve plant resistance to Rhizoctonia root rot• Work to coordinate the registration of grain storage chemicals, to maintain the use of the chemicals,

increase the robustness of the storage system and deliver insect-free grain• Work to reduce grain storage costs and handling charges by maintaining cheaper out-of-patent chemicals

Table 2—Investments to meet grain grower priorities

8

Table 2—Investments to meet grain grower priorities (continued)

Grain grower priorities Examples of relevant new GRDC investments

Variety development

Biotechnology for improving • Work of the Australian Cereal Rust Control Program to enhance genetic protection against cereal rust genetic gain diseases

• Work to identify new sources of stem and leaf rust resistance from uncultivated relatives of wheat• Work to develop lines of durum wheat that have a resistance to crown rot that is comparable to the level of

resistance achieved in bread wheat• Work to further improve barley through germplasm introduction, evaluation and enhancement• Work to validate molecular markers for high-priority traits in canola for non-exclusive use across the entire

Australian canola-breeding sector

Superior new varieties • A project seeking to use novel endophytes as an alternative technology pathway to plant genetics, to enhance yield in wheat, barley and other cereals and protect crops against pests and diseases

• Work of the National Oat Breeding Program to develop new oat varieties with improved yield, disease resistance and grain quality

• Work to develop disease-resistant triticale varieties with improved grain yield and feed/hay quality, to allow the Australian grains industry to capitalise on the expected growth in domestic and international demand for feed grains

• Work to develop higher yielding cultivars of Australian lupins suited to long-season growing environments• Work of the Queensland Department of Primary Industries and Fisheries to identify candidate genes for the

‘stay green’ trait in sorghum, to develop new sorghum varieties with better protection from drought and heat stress

• A project to enhance germplasm and improve productivity for maize suited to tropical Australia

New and innovative product development

• Work to develop specialised barley varieties to produce coeliac-friendly malt, for the domestic and international beverage markets

• A project to develop a hybrid baking process that produces bread, from Australian wheat, of quality equal to or better than that currently manufactured in Asia using the sponge and dough process

• Work to develop a range of new technologies and instruments, that are portable, robust and cheap, for real-time testing of grain, soil and leaf samples

• A project to further validate the accuracy of ‘diffuse gradients through thin film technology’, both as a test for soil phosphorus and in determining crop responses to nutrients such as phosphorus, zinc and potassium

• A project examining the applicability of thermal and hyper-spectral imagery for real-time sensing of crops, to inform management decision making

Capacity building

Improving skills, training and • Work to deliver technical workshops, to accelerate learning opportunities in the grains industryeducation in agriculture • A project to produce and distribute DVDs containing information delivered at Grains Research Updates

Farm business management • Work to enhance the promotion of Harvest Radio and Driving Agronomy to the Australian grains industry• Work to develop an information package in electronic book format, suitable for delivery via CD or the

internet, to provide a useful guide on how to integrate Brassica juncea into cropping systems• A project to provide regionally specific information on various wheat cultivars that are suitable for use in

wheat-on-wheat systems• Work to increase the timeliness of extension activities through email and SMS information delivery

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Australian Government prioritiesThe relevant Australian Government R&D priorities areidentified in the:

National Research Priorities, as outlined by the PrimeMinister in December 2002, and their associated prioritygoals

Rural R&D Priorities as announced to the RDCs by theMinister for Agriculture, Fisheries and Forestry in May 2007.

Table 3 shows the relationship between the government’sresearch priorities and their associated goals, while Table 4shows how new GRDC investments will directly address the rural R&D priorities in 2008–09. The expected totalexpenditure allocated to each of the Australian Government’spriorities is shown in detail in Part 5.

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R&D PRIORITIES

Table 3—Australian Government priorities and associated goals

National Research Priorities

Frontier technologies for An environmentally Promoting and maintaining

building and transforming Safeguarding Australia sustainable Australia good health

Australian Industries

A1: Water—a critical resource B1: A healthy start to life C1: Breakthrough science D1: Critical infrastructureA2: Transforming existing B2: Ageing well, ageing C2: Frontier technologies D2: Understanding our region

industries productively C3: Advanced materials and the worldA3: Overcoming soil loss, B3: Preventive healthcare C4: Smart information use D3: Protecting Australia from

salinity and acidity B4: Strengthening Australia’s C5: Promoting an innovation invasive diseases and A4: Reducing and capturing social and economic fabric culture and economy pests

emissions in transport and D4: Protecting Australia fromenergy generation terrorism and crime

A5: Sustainable use of D5: Transformational defenceAustralia’s biodiversity technologies

A6: Developing deep earth resources

A7: Responding to climate change and variability

Rural R&D Priorities

Productivity and Supply chain Natural resource Climate variabilityadding value and markets management and climate change

Biosecurity

Improve the productivity Better understand and Support effective Build resilience to Protect Australia’s and profitability of respond to domestic and management of climate variability and community, primary existing industries and international market and Australia’s natural adapt to and mitigate industries and support the development consumer requirements resources to ensure the effects of climate environment from of viable new industries and improve the flow of primary industries are change biosecurity threats

such information through both economically the supply chain, and environmentally including to consumers sustainable

Supporting the Rural R&D Priorities

Innovation skills Technology

Improve the skills to undertake research and apply its findings Promote the development of new and existing technology

Rural R&D priorities Examples of relevant new GRDC investments

Productivity and adding value • A project seeking to use novel endophytes as an alternative technology pathway to plant genetics, to Improve the productivity and enhance yield in wheat, barley and other cereals and protect crops against pests and diseasesprofitability of existing industries • A project to optimise cereal profitability in the high-rainfall zone through the integration of disease and support the development management and canopy management principlesof viable new industries • Work to validate molecular markers for high-priority traits in canola for non-exclusive use across the entire

Australian canola-breeding sector• Work of the National Oat Breeding Program to develop new oat varieties with improved yield, disease

resistance and grain quality• Work to develop higher yielding cultivars of Australian lupins to suit long-season growing environments• A project to enhance germplasm and improve productivity for maize suited to tropical Australia

Supply chain and markets • Work to coordinate intelligence gathering and market visits for wheat and barley breeders and marketers, Better understand and respond relating to the interpretation of market signals for breeding programsto domestic and international • Work to develop specialised barley varieties to produce coeliac-friendly malt for the domestic and market and consumer international beverage marketsrequirements and improve • A project to develop a hybrid baking process that produces bread, from Australian wheat, of quality the flow of such information equal to or better than that currently manufactured in Asia using the sponge and dough processthrough the supply chain, • Work to improve grain quality and minimise human and animal health concerns, to safeguard market including to consumers access for Australian wheat

• Work to develop disease-resistant triticale varieties with improved grain yield and feed/hay quality, to allow the Australian grains industry to capitalise on the expected growth in domestic and international demand for feed grains

Natural resource • A project to review current knowledge on the use of livestock in no-till systems, including an economic management analysis of the advantages and disadvantagesSupport effective management • Work to improve knowledge of the ecology, seed bank dynamics and persistence of weeds at risk of of Australia’s natural resources developing herbicide resistanceto ensure primary industries • A project to nationally coordinate research to reduce the impacts of herbicide resistance and ensure are both economically and the effective communication of integrated weed management solutions to the grains industryenvironmentally sustainable • A project to develop a farm nutrient loss index—a decision support tool in the form of a user-friendly

computer program, designed to assess the risk of nutrient loss from a paddock to the off-farm environment

• Work of the National Rhizobium Program to increase the amount of nitrogen added to Australian farming systems by rhizobial fixation in legume plant roots

• Work to identify opportunities and develop guidelines for the use of raw and composted manures and biological wastes in crop production

Climate variability and • Work to demonstrate to the National Emissions Trading Taskforce the credibility of including soil organic climate change carbon in a national emissions trading schemeBuild resilience to climate • A project to improve the integration of climate variability, available soil water and other precision variability and adapt to and agriculture information, to inform seasonal decision makingmitigate the effects of climate • Work to improve understanding of the genetic controls of root impedance and drought signalling in change wheat, to increase the potential for drought survival in wheat

• Work of the Queensland Department of Primary Industries and Fisheries to identify candidate genes for the ‘stay green’ trait in sorghum, to develop new sorghum varieties with better protection from drought and heat stress

• Work to install and maintain equipment to monitor soil water balance (soil moisture, evapotranspiration and water infiltration) in conservation farming systems in grain-growing areas

Table 4—Investments to meet Australian Government Rural R&D Priorities

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R&D PRIORITIES

Table 4—Investments to meet Australian Government Rural R&D Priorities (continued)

Rural R&D priorities Examples of relevant new GRDC investments

Biosecurity • Work to further develop a national surveillance plan for high-priority emergency plant pests of the grains Protect Australia’s community, industry, to continue raising biosecurity awareness in the industryprimary industries and • Work on pre-emptive breeding for improved resistance to biosecurity threats, with an initial emphasis on environment from biosecurity Russian wheat aphidthreats • A project evaluating the potential for wheat curl mite to spread wheat streak mosaic virus in the Western

Region• Work to identify potential economic and management benefits of in-furrow fungicide options for use in

cereal and canola crops• Work of the Australian Cereal Rust Control Program to enhance genetic protection against cereal rust

diseases• Work to identify new sources of stem and leaf rust resistance from uncultivated relatives of wheat• A project seeking to use molecular approaches to improve plant resistance to Rhizoctonia root rot• Work to coordinate the registration of grain storage chemicals, to maintain the use of the chemicals,

increase the robustness of the storage system and deliver insect-free grain• Work to reduce grain storage costs and handling charges by maintaining cheaper out-of-patent

chemicals

Supporting the Rural R&D Priorities

Innovation skills • Work to deliver technical workshops, to accelerate learning opportunities in the grains industryImprove the skills to undertake • A project to produce and distribute DVDs containing information delivered at Grains Research Updatesresearch and apply its findings • Work to enhance the promotion of Harvest Radio and Driving Agronomy to the Australian grains industry

• Work to develop an information package in electronic book format, suitable for delivery via CD or the internet, to provide a useful guide on how to integrate Brassica juncea into cropping systems

• A project to provide regionally specific information on various wheat cultivars that are suitable for use in wheat-on-wheat systems

• Work to increase the timeliness of extension activities through email and SMS information delivery

Technology • Work to develop a range of new technologies and instruments, that are portable, robust and cheap, for Promote the development of real-time testing of grain, soil and leaf samplesnew and existing technology • A project to further validate the accuracy of ‘diffuse gradients through thin film technology’, both as a

test for soil phosphorus and in determining crop responses to nutrients such as phosphorus, zinc and potassium

• A project examining the applicability of thermal and hyper-spectral imagery for real-time sensing of crops, to inform management decision making

• Work to develop and implement molecular markers for lupin breeding

12

4 Planned outputs in 2008–09

Output Group 1—PracticesTable 5 shows the 2008–09 investment budget and planned outputs for Output Group 1—Practices, in the context of its objective and strategies for 2007–12.

Planned outputs for 2008–09

Performance indicators Targets

Increased use of spectral imaging • An information package for growers on how to use spectral and other precision agriculture imaging and precision guidance technologies in crop technologies to improve protection and nutrition decisionsproduction efficiency • Targeted training activities and information packages in

precision agriculture directed at advisers, growers and undergraduate students

Coordinated national investments • Successful establishment of a coordinated national for weed management research integrated weed management initiativeand communication • New investment into preventative strategies for herbicide

resistance management in collaboration with government, manufacturers and resellers

Effective management of weed, • New strategic investment in surveillance, improved disease and insect biosecurity identification of exotic pests to Australia and development of risks new sources of plant resistance

Improved effectiveness of • New focused investments in farming systems research, partnerships between growers, development and extensionadvisers and researchers • New framework for improved pathways to registration and

prioritisation of pesticide research outcomes in the grains industry

• A series of regional workshops to engage growers, industry organisations and farming systems groups in planning on an agroecological zone basis

Successful development of an • Measurement of water balance in all current conservation industry-agreed framework for farming projectsmeasuring and monitoring • Integration of water use efficiency as a key measure in farming improvements in water use systems related research, development and extensionefficiency • Establish a systems-based national methodology to measure

water use efficiency

Engagement of key grain-growing • Launch of a comprehensive Australian grains industry regional natural resource environmental planmanagement bodies in the • A series of meetings in key grain-growing catchments to development of sustainable identify and prioritise key management practices relating to cropping systems for a variable managing impacts of climate changeclimate • Develop new partnerships with targeted natural resource

management bodies in major grain-growing areas to deliver products, tools and skills from GRDC research, development and extension

• New investments on improved crop agronomy and management practices effective in meeting catchment, production and environmental targets

• Commencement of the integration of current crop nutrition knowledge into the national Australian Soil Resource Information System (ASRIS) database to allow growers and their advisers to make better fertiliser decisions

• Further quantification of the economic benefit of ameliorating subsoil constraints

• Training packages to provide growers with skills to better manage the impacts of climate variability and climate change

Table 5—Practices overview

Output Group 1—Practices

Objective

Better practices developed and adopted faster

Strategies

Identify and develop profitable,innovative and integratedpractices and technologies

Ensure active grain growerinvolvement and commitment

Undertake targeted extensionand adoption throughappropriate delivery channels

Enhance sustainablemanagement of naturalresources

Investment budget for 2008–09

$34.9 million

13

ScopeThe Practices output group develops and promotes innovativeand integrated practices and technologies to increase thegrains industry’s capacity for on-farm change, particularly in the areas of soil constraints, water and nutrient use, cropthreats, environmental variability, agronomic improvements and biosecurity.

Alliances between growers and advisers are becomingincreasingly important in ensuring that new and improvedvarieties, practices and technologies are integrated intofarming systems. Recognising that information needs andpreferred delivery mechanisms differ according to productionregion, enterprise mix and individual circumstances, the outputgroup packages and tailors information that is regionallyspecific, and delivers it to growers and advisers throughappropriate networks.

The integration of natural resource management practices into cropping systems is essential for the long-term viability of the grains industry. The GRDC has significant partnershipswith a range of bodies established by the AustralianGovernment and state governments to deal withenvironmental issues. Through the Practices output group, the GRDC aligns sustainable production systems research at a farm level with broader, community-based land useinitiatives.

The Extension and Grower Programs area is focused onimproving the timeliness, relevance and quality of informationpackages on offer to customers. The further development of delivery platforms and relationships with extension networks in 2008–09 will accelerate research, developmentand extension outcomes.

Investment priorities for 2008-09

Climate change

The GRDC has been a key participant in the development of a national climate change research strategy to meet theneeds of primary industries.

Climate change, including changes in temperature, rainfall,winds, ocean currents and chemistry, atmospheric carbondioxide levels and nutrient supply, as well as extreme weatherconditions, is expected to impact on all primary industries. The national strategy aims to foster collaboration across allagricultural industries to address the questions of:

How will climate change influence the future of primaryindustries?

What does climate change mean for primary industries,their businesses and their regions?

What can primary industries do about it?

How can primary industries better prepare?14

PLANNED OUTPUTS IN 2008–09

Table 5—Practices overview (continued)



Improved effectiveness of research • Review of research advisory committee operations and advisory committees proposed feedback mechanisms

• Expansion of the zones in which the GRDC conducts industry liaison

Improved delivery of information to • Analysis of extension networks across Australia to improve customers to aid adoption of R&D the efficiency of delivery from the GRDC

• A completed audit of current decision support tools and products, identifying gaps and overlaps

Demonstrated engagement with • Establish national and regional meetings with a range of agribusiness channels to improve agribusinessesinformation flow

Enhanced targeted delivery of • Successful implementation of a customer relationship GRDC extension programs management system

Improved ability to deliver • Final Reports converted and made available on the GRDC’s information in GRDC final reports web siteto stakeholders

Output Group 1—Practices

Objective

Better practices developed and adopted faster

Strategies

Identify and develop profitable,innovative and integratedpractices and technologies

Ensure active grain growerinvolvement and commitment

Undertake targeted extensionand adoption throughappropriate delivery channels

Enhance sustainablemanagement of naturalresources


$34.9 million

The key themes of the strategy are:

map and build on existing research, development andextension activities

identify key information gaps

identify strategies for national collaboration

identify priority areas for collaborative R&D

identify successful strategies for communication andadoption of research.

The GRDC will use the strategy to guide its investments inboth the mitigation of greenhouse gas emissions and efforts to assist the industry to adapt to climate change, as acomplement to its investments in managing the effects ofclimate variability.

Precision agriculture

It has been demonstrated that the use of precision agricultureprovides financial and human resource management benefitsfor growers in many situations. Many Australian grain growers are close to adopting precision agriculture in oneform or another, but lack confidence in some aspects of thetechnology. The GRDC will continue to invest in projects toimprove education and training in precision agriculture forgrowers, and to encourage the validation and integration ofnew approaches through grower groups.

For growers already using the latest technologies andapproaches, variations in the scale at which measurementsare made present a major challenge in integrating informationfrom a wide range of sources to support managementdecisions. The GRDC will invest in the development oftechniques to better integrate information collected at different scales.

Precision agriculture has been shown to be useful inunderstanding and managing disease patches in fields. Multi-spectral imagery, for example, may prove useful inmeasuring weed patch stability and distribution in an effort to minimise the use of herbicides. An information package will be developed to assist growers to take advantage ofspectral imaging technologies.

Conservation farming

While the demonstrated benefits of conservation farmingmethods include reduced erosion hazard and improved waterinfiltration in soils, and reduced fuel, fertiliser and chemical use, some methods also have potential disadvantages that need tobe managed. The GRDC will continue to invest in field workand desk top reviews to maximise the benefits of conservationfarming systems for grain growers. For example:

Improved water infiltration can lead to ‘deep drainage’—agreater movement of water below the crop root zone—which in turn can lead to increased groundwater rechargeand water table rise. A GRDC-supported project willmeasure deep drainage effects in a range of tillage systemsin each of the three grain-growing regions.

The GRDC will support research into use of livestock inzero-tillage cropping systems, investigating both agricultural and economic impacts of introducing livestockinto grain-growing enterprises.

The GRDC will support research into how effectively andeconomically the use of manures—animal manures, surfaceretained crop residues after spraying with knockdownherbicides or soil incorporation of green crops—contributesto improving the levels of organic matter and groundcoverin cropping systems.

The sequestration of carbon in agricultural soils mayprovide growers with economic benefits in the form ofcarbon credits. The GRDC will support a project examininghow a carbon credit trading scheme might benefit growersand the wider Australian community.

Nutrient management

Although an abundance of fertiliser trials have been carriedout across the Australian grain-growing regions, many of theresults have not been widely analysed or published, andmuch knowledge resides with individual scientists, fertilisercompanies or grower groups. The GRDC will support aproject to compile, statistically re-analyse (where necessary)and interpret these results, in both the regional and thenational contexts.

The project will enhance the framework through which newscience developed under the GRDC’s Nutrient ManagementInitiative is delivered to growers in future. A national nutrientdatabase will be developed, within the national soil database(ASRIS), to be the repository of information collated andprocessed under the project. The aim is to providecomprehensive information to improve growers’ fertiliserdecisions in cropping systems, for all Australian grain-growing regions.

15

Weeds

The National Integrated Weed Management Initiative, whichwill coordinate strategic investment in projects on surveillance,cultural and genetic approaches to weed management in thegrains industry, will commence in 2008–09. The initiative willfacilitate communication and coordination between all GRDC-supported projects in weed management research,with an increased focus on integrated weed managementsolutions. The GRDC will manage the initiative, in conjunctionwith leading scientists from all key research stakeholders.

The GRDC will also continue to invest in research to modelglyphosate resistance, delivered through the University ofAdelaide and the New South Wales and Queenslanddepartments of primary industries. This will include continuedsupport for the Western Australian Herbicide ResistanceInitiative, which is improving the understanding of themechanisms of herbicide resistance by monitoring increasesin the incidence of grass and broadleaf weed resistance, and modelling its development, in a range of farming systems in the Western Region.

Diseases

In 2008–09, the GRDC will support ongoing projects by stategovernment pathology services that deliver research resultsand recommendations on disease management, with a focus on regional priorities.

These projects are closely linked with the Australian CerealRust Control Program (ACRCP), which will conductpathogenicity surveys of rust pathogens of wheat, barley, oats, triticale and rye, and report to industry on thedevelopment of new rust pathotypes. The ACRCP will alsocontinue to support research to characterise new sources ofrust resistance in cereal cultivars, and work closely withAustralian cereal-breeding programs to ensure that improvedresistant germplasm is quickly incorporated into new varieties.The ACRCP is an unincorporated joint venture between theGRDC, the University of Sydney, the International Maize andWheat Improvement Center in Mexico (CIMMYT) and CSIRO.

The GRDC will also support research conducted at theUniversity of Melbourne to develop molecular markers to track Brassica sylvestris-derived resistance to fungus in canola varieties.

Pests

The GRDC will continue to support research into, andcommunication of, integrated pest management (IPM)strategies for grain production.

In the Southern Region and the Western Region, the GRDCwill continue investing in research that responds to new threatsas insects and other invertebrates adapt to changing farmingpractices. This includes investment in the identification,prediction and management of pest outbreaks in the medium-rainfall to high-rainfall zones. Particular prioritiesinclude management of red-legged earth mite andmanagement of wheat curl mite, the transmission vector ofwheat streak mosaic virus.

The GRDC will also continue to invest in the NationalInvertebrate Pest Initiative (NIPI), a collaborative network ofgrains pest management researchers and extension specialists.NIPI activities are focused on developing proactive regionalsolutions to current and emerging invertebrate pest problems,with a particular interest in south-east and south-west Australia.NIPI will deliver improved national linkages through small,focused research projects and workshops, and a significantincrease in IPM training for industry advisers and growers.

GRDC investments in the Northern Region will increase theadoption of established IPM techniques by grain growers, toreduce the risk of insecticide resistance, poor pest control, andthe ‘flaring’ of pest species that would otherwise be controlledby the activity of natural enemies. This research, which alsoprovides technical expertise to other IPM projects nationally, will continue to improve chemical and other control strategiesfor Northern Region pulse crops, including chemical synergists,and to evaluate new active ingredients. In particular, thresholdmodels for heliothis and mirids will continue to be developedfor soybeans, mungbeans and peanuts.

Biosecurity

Through the Cooperative Research Centre for National PlantBiosecurity (CRC NPB), the GRDC will invest in the collation ofintelligence to identify and prioritise biosecurity threats to theAustralian grains industry. This will include the development ofa further five emergency plant pest contingency plans throughPlant Health Australia, and the development of enhanceddetection methods for the stored-grain pest khapra beetle andfor Tilletia indica, the cause of the wheat disease Karnal bunt.Potential genetic approaches to achieve sustainableresistance to Russian wheat aphid will also be identified.

The GRDC will also continue to invest in programs designedto protect the grains industry from new weed and cereal rustthreats, through the CRC NPB and the National IntegratedWeed Management Initiative, and to combat current andanticipated exotic rust threats by developing improvedgermplasm, through the ACRCP.

16


Water use efficiency

Investments within the GRDC’s Validation and Integrationprogram are focused on three strategic areas: engaging grain growers in local farming systems, monitoring theimplementation of farm management practices, and engagingthe private sector on tactical in-crop production issues. Newinvestments within this program during 2008-09 and beyondwill focus these key strategies on achieving measurableimprovements in whole-farm water use efficiency.

Managing water stress and increasing water use efficiency will continue to be important drivers of change in Australianagriculture. It is thought that improving efficiency in just somezones has the potential to significantly lift the productivity and profitability of the entire grains industry.

In 2008-09 the program will add value to the GRDC’s totalR&D investment by bringing together the necessary skills,resources and assets in new combinations from variousnetworks to enhance the transfer of new technologies togrowers, thus completing the research, development andextension cycle.

On a regional basis, the program will address ways toimprove average water use efficiency, understand andarticulate elements of business risk management, andimprove the characterisation of the physical, financial andsocial environment in which farming systems operate.

Investments will also encourage substantial interactionbetween growers in similar environments but differentgeographic locations, and between the different broadacreindustries, to facilitate the move towards true mixed farmingsystems. This will allow the sharing of capabilities andintroduce expertise into areas where it is currently notavailable.

The Validation and Integration program will also exploreopportunities to develop partnerships with regional naturalresource management bodies in prominent grain growingareas. It is envisaged that these partnerships will enhance the delivery of products, tools and skills arising from GRDCinvestments in order to improve the effectiveness of cropagronomy and other management practices in meetingcatchment targets.

Customer relationship management

Delivery of the first elements of the GRDC’s extensionimplementation plan will focus on improving the profile ofGRDC customers to enable more targeted and relevantinformation to be delivered in a timely manner. Numerousactivities to increase the level of segmentation data areplanned for 2008–09 to improve the distribution and feedbackof information to and from the GRDC and customers.Investments will focus on a range of demographic measuresthat will enable profiling of GRDC customers and partners.

Grains industry environmental plan

To better demonstrate the industry’s environmental credentialsand identify environmental issues that need to be addressed,the GRDC has developed a grains industry environmentalplan. Based on principles of ecologically sustainabledevelopment, the plan will examine risks and opportunities indealing with key issues across the catchments in which theindustry operates.

The plan involves gathering data from grain growers about the use of certain practices on-farm. Tracking theenvironmental impacts of the farming practices of interest willbe useful in understanding how grain growers are dealing with the dual needs to increase productivity and improveenvironmental management.

In 2008-09 the GRDC will launch a grains industryenvironmental plan and implement the first steps of the plan’s identified priorities.

Commercialisation

The GRDC will seek commercial partners to develop aphosphorus and multi-ion soil test using the ‘diffuse gradientsthrough thin film technology’ technique developed by theUniversity of Lancaster in the United Kingdom, the Universityof Adelaide and CSIRO. Commercial partnerships will beestablished early in 2008–09 to support an investment toimprove the accuracy and reliability of phosphorus soil tests,better reflecting crop response.

17

ScopeThe Varieties output group invests in gene discovery, breedingtechnologies, genetic resources, functional genomics,germplasm enhancement, genetic transformation, plantbreeding, crop variety testing, grain quality research and plant pathology (where directly related to breeding), acrossmany of the 25 crops in the GRDC’s R&D portfolio.

The output group supports crop improvement for growingdomestic markets, as well as for exports, with the aim ofraising the overall value of the Australian grains industry.

This means developing new varieties with enhanced yields as well as quality attributes that add value and meet marketdemands, and includes collaborating with the grains industryto clarify consumer requirements.

Varieties also supports the search for new sources of diseaseresistance to incorporate into crops, as well as research toimprove the understanding of the processes involved inresistance breakdown. It also invests to facilitate an industry-wide approach to improving data collection, for industry-goodpurposes and to increase the efficiency of EPR collection.18


Output Group 2—VarietiesTable 6 shows the 2008–09 investment budget and planned outputs for Output Group 2—Varieties, in the context of its objective and strategies for 2007–12.

Table 6—Varieties overview

EPR = End Point Royalty, GM = genetically modified, NVT = National Variety Trials



Average annual increase in yield • Average annual increase in yield (as measured in NVT trials) of:(as measured in NVT trials) for – 1.0 percent for wheatwheat, barley, canola, sorghum – 1.0 percent for barleyand pulses – 1.5 percent for canola

– 1.5 percent for sorghum– 2.0 percent for pulses

• The release of improved varieties of wheat, barley, canola, pulses and summer coarse grains that benefit the Australian grains industry

Research organisations that are • Industry agreement on key target traits for wheat and barleyresponsible for pre-breeding • Research organisations that are responsible for at least research with a focus on an 80 percent of the pre-breeding research having agreed to agreed set of key national and focus 50 percent or more of their resources on an agreed set regional traits of key national and regional traits

Evidence of excellent scientific • Enhanced communication and collaboration between industry research and effective collaboration and research stakeholdersboth nationally and internationally • Five examples of scientific excellence identified and reported through independent, expert both nationally and internationally through independent, scientific review in 2008 expert scientific review in 2008

Evidence that genes, germplasm • New traits and associated molecular markers developed for and enabling technologies use by Australian breeding programsdeveloped in GRDC-supported • New genes with potential importance to the Australian grains pre-breeding research are being industry discovered and made available for proof-of-concept used in breeding programs testing and further development

Continued progress towards • Delivery platforms for GM crops in Australiamarket entry for GM canola into • Access to enabling technologiesAustralia • Access to novel traits which reduce key limitations to grain

production

Participation in NVT by relevant • Participation in NVT by 90 percent of relevant breeding breeding programs programs

• Crop variety yield and performance data made available to Australian grain growers through the NVT program

EPR collection processes • Support to industry to simplify EPR collection processes and increase EPR collection efficiency

Output Group 2—Varieties

Objective

Growers have access to superiorvarieties that enable them toeffectively compete in global grain markets

Strategies

Build and sustain world-leadingbreeding programs

Focus pre-breeding research on key traits

Develop a path to market forgenetically modified crops

Facilitate faster adoption ofsuperior varieties


$47.8 million

Investment priorities for 2008-09

Wheat breeding

The GRDC has assisted its research partners to restructuretheir milling wheat and feed wheat breeding programstowards being self-funded through revenue from EPRs. It willcontinue to support wheat-breeding activities in Australiathrough holding equity in wheat-breeding entities, investing in pre-breeding research, supporting NVT and improvingagronomic practices. The Varieties output group may alsoinvest in wheat quality classification, depending on theoutcomes of the Wheat Expert Industry Group’s report.

In the short term, the GRDC will continue to invest in breedingfor dual-purpose feed wheat for the high-rainfall zone. TheGRDC will maintain a watching brief on the ability of thissegment of the varietal market to become self-sustaining.

In support of the industry’s goal to improve the reliability ofsupply of high-quality durum wheat, the GRDC will invest inthe establishment of a nationally coordinated durum-breedingprogram.

Barley breeding

Barley Breeding Australia (BBA), which was established inJuly 2006 as a nationally coordinated barley-breedingprogram, will continue to receive support from the GRDC in2008–09. BBA breeds superior varieties, including malt grainand feed grain, for both export and domestic markets.

The GRDC’s five-year investment in BBA will be reviewedduring 2008–09 to determine the effectiveness of BBA andidentify further improvements that could be made to theprogram.

BBA will also continue to work with the barley industry peakbody, Barley Australia, to access market signals and monitorissues that the industry will need to consider in future, such as variety identification.

Mungbean breeding

Commencing in 2008–09 the GRDC will support a newmungbean breeding project. Building on previous investment,the project will focus on:

progressing international linkages for bringing geneticmaterial into the Australian mungbean breeding program

developing cultivars with specific adaptations for drylandregions and irrigated regions

increasing yield, yield stability and plant harvestability

improving disease resistance, including by implementingreliable screening methods for various foliar diseases

improving grain quality.

To help ensure that growers have access to new varietiesfaster, and that those varieties are what the market requires, theGRDC has developed a strategic alliance with the QueenslandDepartment of Primary Industries and Fisheries and theAustralian Mungbean Association. Part of the AustralianMungbean Association’s contribution will be to provide expertknowledge of export markets and current market information to ensure the relevance of the breeding program.

First release of Pulse Breeding Australia varieties

Pulse Breeding Australia (PBA) is a world-class breedingprogram developing and releasing new varieties of chickpeas,field peas, lentils and faba beans. Established by the GRDC in2006, PBA is well on the way to delivering new varieties that will increase pulse production in Australia.

In 2008–09, the first new PBA varieties will be available togrowers:

Lentils—PB Seeds has been appointed as the commercialpartner for lentils until 2011. In 2007, funding from PB Seedsenabled seed production of 25 lines to more rapidly delivervarieties to growers. An early maturing variety (suitable forcrop topping) with high yields in shorter season areas islikely to be the first PBA release in 2009.

Chickpeas—AWB Seeds were selected to be thecommercial partner for new desi chickpea varieties until2011, and has begun multiplication of three new desivarieties. PBA expects significant commercial areas to be planted in 2009–10.

Field peas—Six breeding lines are being multiplied forpotential release in 2009. All produce dun type grain and are agronomicallysimilar to the popular variety KaspaA but are earlierflowering. Each offers a 5 percent to 10 percent yieldadvantage over KaspaA in lower rainfall environments

Faba beans—New broad and faba bean varieties arebeing increased for release. The major focus in 2008–09 will continue to be on disease resistance and quality for the food markets of the Middle East.

Canola Quality Objectives Group

Following a successful one-year pilot project, the GRDC willcontinue to invest in the Canola Quality Objectives Group(CQOG) in 2008–09. The CQOG is made up of all relevantindustry representatives and provides direction and marketintelligence to the Australian canola-breeding sector.

The CQOG acts as a technical adviser, ensuring timely andaccurate market information is fed into the germplasmenhancement and breeding programs. This will help to ensure that there are good links between breeding researchand breeding, such that the ‘market pull’ and the ‘researchpush’ are both factored into priority setting. 19

Development of enhanced germplasm

The GRDC will continue to support the Australian WinterCereals Pre-Breeding Alliance. The alliance represents at least 80 percent of industry investment in pre-breedingresearch for winter cereals.

One purpose of the alliance is to generate greater and moreeffective communication, coordination and collaborationbetween research organisations involved in pre-breeding. This will be achieved through frequent high-level meetingsand technical workshops, as well as through the formation of a web portal which ultimately will link all pre-breedingresearch projects of the partners.

Another objective of the alliance is to ensure that pre-breedingresearch remains relevant to the Australian grains industry. To further this objective, the GRDC will fund a liaison rolewhich links pre-breeding research with cereal breeding.

A set of key targets for research has been agreed and willguide future investment by the GRDC and its partners. An ongoing challenge for the alliance will be to break downcomplex key traits into discrete targets for scientific research.

The GRDC will also continue to maintain and enhance linkswith important international research institutions. Therelationship with CIMMYT in Mexico has been especiallyvaluable in the past and will continue to be of strategicimportance. In 2008–09, the GRDC will strengthen itsrelationship with the International Center for AgriculturalResearch in the Dry Areas (ICARDA) in Syria, to bettercomplement its investments in wheat, barley and pulsebreeding.

Gene discovery and new technologies

Investments in molecular marker development provideAustralian breeders with tools to track particular genetic traits through the various stages of their breeding programs.Molecular marker technologies progressively replace other,more time-consuming, costly or impractical methods ofconfirming the presence of a target gene in a plant, especiallywhen the trait of interest (for example, root growth, diseaseresistance or transpiration efficiency) is difficult to measure.

The GRDC makes long-term investments in molecular marker development. In 2008–09, the GRDC will re-invest inthe molecular marker programs for wheat, barley, canola andlupins, focusing on disease resistance and other priority traitsas defined by the breeders.

The Australian Centre For Plant Functional Genomics—a co-investment by the GRDC, the Australian Research Council,the South Australian Government and other investors—hasbeen funded until 2012. The centre has restructured itsportfolio to focus on the discovery of genes that confertolerance to drought, salt and frost. The GRDC will work withindustry to ensure effective stewardship for the GM canolatechnologies that have been admitted to New South Walesand Victoria. Additionally, the GRDC will work with theresearch community and industry stakeholders to developeffective partnership models to deliver other GM crops toAustralian growers in the future.

National Variety Trials

The NVT produce independent information on varietyperformance for Australian grain growers. The success of the NVT program is paramount to the GRDC’s strategy ofaccelerating the adoption of new winter cereal, pulse andcanola varieties in Australia. In 2008–09, the program willinclude GM canola in its trial program for the first time.

The program is nearing the end of its first phase. As part of its commitment to improving the efficiency and content of theNVT, the GRDC will conduct a formal review of the program in 2008-09.


20

ScopeThe New Products output group comprises New GrainProducts and New Farm Products and Services. The twoinvestment areas target opportunities both pre-farm gate andpost-farm gate, by investing in research, development andcommercialisation to provide growers with additional optionsin farm management and marketing.

To achieve its objective, the output group actively identifiesnational and international technology relevant to the Australiangrains industry; builds partnerships to develop products andservices and deliver them to growers; undertakes productdevelopment to meet market requirements; and developsrobust business cases that demonstrate the market demandfor and value of any product or service that the GRDC and itspartners propose to invest in.

21

Output Group 3—New ProductsTable 7 shows the 2008–09 investment budget and planned outputs for Output Group 3—New Products, in the context of its objective and strategies for 2007–12.

Table 7—New Products overview



Identification of national and • Identify and evaluate potential investment opportunities in the international work being area of nitrogen fixation, using the 2008 report by Steven M undertaken in the area of Jones entitled The state of knowledge and opportunities for nitrogen fixation investment in non-symbiotic nitrogen fixation in cereals and

canola crops in Australia

Assessment of a fungal • Identification of product pipeline from different sourcesbiopesticide product pipeline • Assessment against key pest targets undertakenfor activity against several new pest targets, including silverleaf whitefly and etiella moth

Development of commercial • Develop commercial strategies and, where appropriate, strategies and engagement with engage with commercial parties for: commercial partners – Crop Biofactories Initiative

– coeliac-friendly beer– high-amylose wheat (Arista joint venture)– fungal biopesticide

Licence agreements negotiated • Engagement of key commercial partners for the final phase for grain fumigant GLO2 (registration and market delivery) of the GLO2 grain fumigant

project

Product development and • Successful recruitment of a commercial partner to undertake commercial assessment to deliver phase two (product development and commercial a snail biopesticide product assessment) of the snail biopesticide project

• Investment in phase two of the snail biopesticide project, to take the technology from a proof-of-concept stage to a commercial product

Identify, scope and negotiate joint • Identify collaborative projectsprojects in partnership with feed • Scope and negotiate joint projects to develop solutions to grain user organisations increase whole-of-chain profitability and sustainability

Successful negotiation of the • Assessment and selection of potential partners for consortium to take forward the involvement in export wheat market research and export grain market research development partnership projects.and development partnership

Output Group 3—New Products

Objective

Deliver new products and services (both on farm and offfarm) that will assist growers toeffectively compete in global grain markets

Strategies

Identify national and international technology relevant to the grains industry

Develop partnerships to deliver new technology

Undertake product development to meet market requirements

Build robust business cases that demonstrate stakeholderreturn on investment


$10.9 million

Investment priorities for 2008–09

New grain products

New Grain Products investments are divided between:

new food products for human consumption

new feed products for animal consumption

new industrial products

food safety and grain hygiene.

New food products

In 2008–09, the GRDC will identify and develop opportunitiesfor partnering with companies to deliver several new grainfood products to market:

Arista Cereal Technologies Pty Ltd (the GRDC’s high-amylose wheat joint venture) will develop a research,commercialisation and communication strategy.

The GRDC’s coeliac-friendly beer project with CSIRO PlantIndustry has reached the product development stage, and a preliminary brew has been made and tested. In 2008–09,further product development, as well as identification of asuitable commercial partner, will be undertaken.

A project that has been developing a highly viscous starchfrom wheat, which will effectively compete with potatostarch in products such as instant noodles, has passed theproof-of-concept stage. Product development andidentification of a suitable commercial partner to progressthis product to market will be undertaken in 2008–09.

A project to develop Omega 3-producing canola hasrecently been contracted by the GRDC and is alreadyattracting considerable interest from multinationalcompanies. It will be very important to develop a partnering strategy for the project in 2008–09.

The GRDC will also continue collaborating with GoGrainsLimited to market and provide an income stream for thecompany, based on the message of ‘4+ serves of wholegrains a day’.

New feed products

In 2007–08, the GRDC formed a partnership with feed grainuser organisations to ensure that grains are developed tomeet the demands of the livestock industries. The partnership has identified a number of key areas in grain nutrition thatcould assist the livestock industries.

For example, the GRDC will continue to support the Pork CRC in implementing and using near-infrared calibrationsdeveloped by the Premium Grains for Livestock Program. The development and implementation of a projectinvestigating the potential to use grain nutrition to reducemethane emission in ruminants will also be examined forinvestment in 2008–09.

The partnership will continue to ensure that grain growers and livestock producers benefit from the feed grain market,through:

collaborative project development

development of a web site to provide access to generalinformation around the topic of feed grains

cooperation to bring all supply chain participants togetherto unravel problems and develop solutions to increasewhole-of-chain profitability and sustainability.

New industrial products

In 2008–09, the GRDC will focus on determining a pathforward for technologies that use grain and grain residues as feedstock for ethanol production, as identified in a reportbeing undertaken on the GRDC’s behalf by the CSIROTransformed Energies Flagship. The aim is to developopportunities for energy efficiency, regional self-sufficiencyand energy production for Australian grain growers.

The GRDC will also continue to partner with CSIRO in theCrop Biofactories Initiative. This project, which has progressed past the discovery and proof-of-concept stages,has continued to adjust its project portfolio with a very market-driven focus. Commercial partners have beenidentified, and the next three-year stage of the project willsecure commercial partnerships in order to develop a product for market.

Food safety and grain hygiene

In 2007–08, the GRDC, grain bulk-handling companies andthe CRC NPB successfully developed a program within theCRC that can encompass issues around grain hygiene. This provides a vehicle to meet the GRDC’s objectives ofhaving a national grain hygiene agenda, building capacity in grain hygiene areas that are deficient, and engaging withbulk-handling companies in relation to grain hygiene. The major goal in 2008–09 will be to develop a new suite of projects that dovetail with and strengthen the GRDC’sexisting grain hygiene projects with the CRC.22


New farm products and services

New Farm Products and Services identifies investmentopportunities in Australia and internationally. Those areas withthe greatest potential to deliver benefits to the grains industryare subjected to careful market evaluation, and a businesscase is developed to justify each potential investment.

Key themes within the GRDC’s new farm products andservices portfolio for 2008–09 include:

developing technologies or knowledge that provide ordefine a unique selling advantage for Australian grain in key export markets—in particular, new projects that havethe potential to increase Australia’s market share in theAsian market will be evaluated

developing and commercialising innovative instrumentationtechnologies to provide faster, cheaper, more accurateand/or more quantitative measurement tools for the grainsindustry

in collaboration with commercial manufacturers, identifyingnew research targets to build on extensive existing researchinto the manipulation of plant growth and health through theuse of soil biological inoculants

developing novel chemicals, including evaluating chemicalssourced overseas, that are effective against Australianinsect pests, weeds and diseases—in particular, scoping of a new herbicide pipeline will be achieved and, ifappropriate, an investment proposal will be formed

developing commercial links to assist the development ofproducts from existing projects, such as the GLO2 grainfumigant project.

Commercialisation

The GRDC plans to finalise licence agreements withcommercial parties to market products, domestically andinternationally, from the GLO2 (grain fumigant), CropBiofactories Initiative, Objective Grain Quality Testing andcoeliac-friendly beer projects.

Collaborative commercial R&D agreements will also beestablished, in the areas of biopesticides and graindisinfestation. These agreements will ensure that products are developed to suit the market and that intellectual property is transferred efficiently.

23

24


Output Group 4—Communication & Capacity BuildingTable 8 shows the 2008–09 investment budget and planned outputs for Output Group 4—Communication & Capacity Building, in the context of its objective and strategies for 2007–12.

Table 8—Communication & Capacity Building overview

RDC = R&D corporation



Implementation of the GRDC • A revised GRDC communication strategy developed, that communication strategy identifies the needs of stakeholders, key messages and

processes for evaluation• Successful implementation of the communication strategy,

to facilitate the delivery of research outputs to a wide audience, building on existing regional delivery channels

• Monitor grains industry and corporate issues to develop targeted communication strategies (e.g. pests and diseases)

• Identification of opportunities for the GRDC to work collaboratively with RDCs, research partners, industry partners and governments to deliver information in ways that reduce duplication, better target stakeholders and are more cost effective

Increased awareness of the • Unaided awareness of the GRDC increases through targeted GRDC and its research outcomes communication activities (from 68 percent in 2006 to

80 percent in 2009)• Increased understanding of the GRDC and its role as

measured through independent research surveys• Publications, products and services that increase awareness

of the GRDC’s research outcomes in the Australian grains industry and wider community and reflect the needs of different target audiences

Increased favourable mentions • Increase in positive media coverage (over established of the GRDC’s research activities benchmarks) for print and electronic media and outputs and those of its research partners

Increased awareness of GRDC • Increased profile of the GRDC and its research outcomes at investment outcomes through grains conferencespromotion at targeted conferences and workshops

Increased profile of the GRDC’s • The proportion of growers who are aware of the GRDC’s regional panels regional panels increase to 50 percent by 2009

Number of alternative electronic • Exploration of alternative electronic delivery mechanisms for delivery mechanisms identified rapid dissemination of information to customers

• Introduce mobile phone based extension• Delivery of audio based extension tools

Improved ability to deliver new • Creation and dissemination of web pages addressing information packages and tools specific industry issuesvia the GRDC website • Effectively packaged information on integrated research,

development and extension issues and technologies, delivered to customers

Improved delivery of technical • Implementation of technical workshops on strategic and information through workshops tactical research, development and extension issuesheld across Australia

Output Group 4—Communication &Capacity Building

Objective

Increase the awareness andcapacity to optimise adoption of grains research outputs

Strategies

Ensure planned, targeted,measured communication

Leverage delivery throughpartnerships

Develop demand-drivenpublications and products

Coordinate a national approach to building industry and research capacity


$6.0 million

ScopeThrough a range of communication activities, theCommunication & Capacity Building output group positionsthe GRDC as a credible source of technical and industry-specific information in Australia and internationally. It invests in a range of programs to enhance awareness, motivation and ultimately adoption of the outcomes of GRDC and partner investments.

In consultation with the other output groups, Communication & Capacity Building identifies opportunities for high-qualityand reliable new publications and products that meet grainsindustry needs. Australian grain growers are a diverseaudience, and their information needs and preferred deliverymechanisms vary. Accordingly, the output group packagesand delivers timely and targeted information to satisfy thedifferent demands.

Recognising the roles that research partners, governmentagencies and industry bodies play in influencing on-farmdecision making, the output group also collaborates withthese entities in a range of joint communication and deliveryactivities. Such collaboration ensures that the GRDC canleverage and maximise the dissemination of new information.

The output group also supports initiatives to encourage anddevelop capacity in education, training and technologytransfer for researchers and the wider industry.

Investment priorities for 2008–09

Communication campaigns

The GRDC needs to communicate effectively with a range ofgroups, including governments, research partners, grainsindustry bodies, growers and other industry participants.

In 2008–09, investment in communication activities will aim to develop a more integrated regional and nationalcommunication approach, to demonstrate the significance of the GRDC’s investments to a wider audience (including the readers of mainstream newspapers). This will becomplemented by an increase in issue-focused campaignstargeting particular industry segments.

25

Table 8—Communication & Capacity Building overview (continued)

RDC = R&D corporation



Increased grower and industry • Production of fact sheets that present information on particular satisfaction that publications, issues, both regional and national, and are timely, targeted products and services are timely, and relevant to growerstargeted and specific to customer • Increase in grower and industry satisfaction of GroundCoverneeds newspaper as measured through independent market

research surveys

Support of a range of activities • Continue to support training awards, travel awards, designed to build skills and conferences, Nuffield Foundation and Australian Rural expertise that will equip the Leadership Foundation ScholarshipsAustralian grains industry with the capacity to continuously innovate

Output Group 4—Communication &Capacity Building

Objective

Increase the awareness andcapacity to optimise adoption of grains research outputs

Strategies

Ensure planned, targeted,measured communication

Leverage delivery throughpartnerships

Develop demand-drivenpublications and products

Coordinate a national approach to building industry and research capacity


$6.0 million

Publications, products and services

The GRDC continually seeks new ways to provide R&Dinformation in user-friendly formats and through channels thatmeet the needs of its diverse range of customers, includingby surveying stakeholders every three years to determine their attitudes, needs and preferred formats for receivinginformation.

Results from the latest survey clearly show that growers areincreasingly accessing information electronically, from the web,but they still prefer to have hard copy for reference. In addition, the number of advisers accessing information electronically,from the web or through SMS or podcast, has doubled in thepast three years.

Exploring new ways of packaging and delivering informationto grain growers and the wider industry will continue to be apriority for the GRDC in 2008–09. This will include identifyingopportunities to:

expand the range of electronic delivery platforms the GRDCuses to extend information to stakeholders, examining thepotential of emerging technologies as they arise

integrate GRDC information products and services tomaximise the delivery and uptake of relevant information to customers

improve collaboration with industry networks to emphasisethe accessibility of information and reduce duplication.

A common theme arising from the stakeholder surveys hasbeen that grain growers prefer to receive timely information on particular issues relevant to their farming businesses.

To meet this need, in 2007–08 the GRDC began producing‘fact sheets’ for distribution through its GroundCovernewspaper. Each fact sheet is dedicated to a single issue,chosen on the basis of its timeliness, relevance andimportance to grain growers and other industry participants.Common topics include better pest, weed and diseasemanagement options, and best management practices. In 2008–09, the number of fact sheets distributed through theGroundCover newspaper will increase, to better reflect therange of important issues that impact on grain growers andthe grain-growing business enterprise.

Another initiative has seen the introduction of ‘researchreports’ which, in the majority of cases, are regionally focused.These reports can either be issue-specific or crop-specific—for example, a 2008 report on managing sorghum for highyields was popular with Northern Region growers. In 2008–09,the number of research report titles will increase, reflectinggrowers needs for more regionally specialised information.

Industry and research capacity

In 2008, the GRDC will commence implementation of itscapacity-building strategy. An audit will be commissioned to identify capacity-building needs with respect to each of the GRDC’s output group strategies.

The GRDC will continue to support a range of activitiesdesigned to build skills and expertise that will equip theAustralian grains industry with the capacity to continuouslyinnovate. Specifically, the GRDC will continue to supporttraining awards, travel awards, conferences, and NuffieldFoundation and Australian Rural Leadership Foundationscholarships.


26

Enabling functionsThe GRDC’s two enabling functions, Corporate Services andCorporate Strategy & Program Support, are responsible forkey operational activities in relation to:

corporate strategy

information management systems

corporate communication

risk management

quality management

human resource management

finance and administration

corporate governance and legal services.

These activities provide essential support for all thecorporation’s responsibilities under the PIERD Act and theCAC Act, and equip the four output groups to deliver theirtargeted outputs.

The GRDC value chain, shown in Figure 2, illustrates how theGRDC implements its strategies through five core businessprocesses and eight key enabling activities. A review of thebusiness processes will be completed in early 2008–09, witha view to achieving best operating practice by the end of the financial year.

Corporate strategy

Objective

Ensure implementation of the GRDC’s corporate strategiesand provide support to panels and output groups

Plan for 2008–09

Ensure existing output group projects and programsachieve targeted outcomes

Monitor the GRDC’s immediate and broader businessenvironments, and present information on key changes

Implement the Strategic R&D Plan 2007–12 by ensuringownership of the strategies by members of the Board,Executive Management Team, staff and regional panels

Implement recommendations from the GRDC BusinessProcess Review

Manage the portfolio balance tool and improve the efficiencyand effectiveness of selecting and managing projects

Institutionalise an impact assessment process andundertake impact assessments

Ensure efficient and effective functioning of the panels

Ensure compliance with requirements under the PIERD Actand the CAC Act

Grain grower

levies and

Australian

Government

funding

Achievement

of LOB

strategies

Grain growers

effectively

compete in

global grain

markets

Identify and

prioritise R&D

requirements

Evaluate theimpact and

report tostakeholders

Deliveroutcomes of R&D inproducts

and services

Manage the R&Dportfolio through

pathways tomarket

Design, procure and

contract required

R&D

Corporate Strategy

Information Management Systems

Corporate Communication

Risk Management

Quality Management

Human Resource Management

Finance and Administration

Corporate Governance and Legal Services

Figure 2—Value chain

FEEDBACK LOOP

VALUE CREATION

KEY ENABLING ACTIVITIES

CORE BUSINESS PROCESSES

27

Information management systems

Objective

Support R&D management and the business requirements of the organisation

Plan for 2008–09

Provide business systems that meet the requirements of the organisation

Maintain a reliable and secure network for GRDC users

Facilitate the procurement of equipment

Maintain and continuously improve the project managementsystem

Develop, implement and continuously improve the recordsmanagement system

Ensure that the GRDC’s web site and intranet aresuccessfully maintained and developed as effective toolsfor communication and education of staff and stakeholders

Corporate communication

Objective

Effectively communicate the corporation’s goals, strategiesand achievements

Plan for 2008–09

Through the GRDC’s regional panels, build greaterfamiliarity with the extent and diversity of the GRDC’s R&Drole and investment portfolio

Through mainstream media, identify and target informationof interest and relevance to the general public

Increase the effectiveness of internal communication withinthe GRDC

Develop integrated communication campaigns (involving all business units) to deliver specific and timely informationto external stakeholders

Deliver information, products and services to the GRDC’scustomer segments, responding to identified needs

Through customer feedback, measure the GRDC’seffectiveness and performance

Risk management

Objective

Ensure that business risks are identified, assessed andappropriately managed

Plan for 2008–09

Manage risks at the project, business unit and strategiclevels of the corporation

Maintain an effective risk management system

Continually monitor and update the risk management planand the fraud control plan, to reflect changes in theoperating environment

Include risk management in performance measures for staff

Develop and implement a process to ensure that the levelof staff knowledge of risk management is enhanced andrisk management is embedded in the corporation’s culture

Maintain a ‘comprehensive’ rating from Comcover on riskmanagement

Ensure that internal audit recommendations are included inbusiness risk and fraud control plans

Ensure that strategic risk is reviewed every six months

Quality management

Objective

Be recognised as a quality-driven organisation, throughquality leadership, continuous improvement and appropriateaccreditation

Plan for 2008–09

Maintain ISO 9001:2000 accreditation with no major non-conformances and with any minor non-conformancesclosed out within agreed timeframes

Demonstrate clear leadership on quality and the benefits to be derived from continuous improvement

Instigate business improvement measures for all areas ofquality failure, including customer complaints and processfailures

Promote quality assurance to ensure that it is effectivelyused for continuous business improvement

Evaluate and implement the alignment of policies andprocedures with the quality system

Create an effective feedback loop from staff and customers to the GRDC to measure effectiveness andimprove performance

28


Human resource management

Objective

Maintain best practice in human resource managementclearly focused on delivering business objectives

Plan for 2008–09

Ensure GRDC positions are correctly graded andremunerated

Continue competency-based performance appraisals

Achieve a performance-driven and customer-focusedculture

Ensure staff have clearly defined management objectives,critical success factors and performance indicators

Ensure reward systems are clearly linked to managementobjectives, critical success factors and key performanceindicators

Conduct training skills needs analyses and rectify identifiedgaps

Continue the formal succession planning process,identifying appropriate talent at all levels within thecorporation

Finance and administration

Objective

Manage the accounting and treasury functions in accordancewith Board and statutory requirements

Plan for 2008–09

Maintain a monitoring system through the Finance, Risk andAudit Committee and the internal audit program

Develop a budget and reporting framework to fosterfinancial responsibility at the business unit level

Develop, update and implement treasury managementsystems that enable the corporation to meet the fundingrequirements of the annual operational plan

Continue to improve and upgrade reporting systems andtemplates to encapsulate best practice

Corporate governance and legal services

Objective

Maintain a robust system of governance and protection of theGRDC’s legal interests

Plan for 2008–09

Further develop a business reporting and responsibilityframework to enhance organisational performance

Develop and implement a process to ensure that allstatutory requirements are met

Continue to ensure compliance with requirements under thePIERD Act, the CAC Act and ministerial directions

Ensure that planning and reporting documents (the annualreport, annual operational plan, portfolio budget statementand statement of intent) meet statutory requirements andare published and submitted on time

Ensure the Operating Manual reflects the requirements ofthe Board and the Executive Management Team and isunderstood and implemented by staff

Manage compliance through appropriate control systemsand an ethical business culture

Provide legal support to the organisation that is timely andhigh in quality and builds relationships with stakeholders

Provide high-quality secretarial support to the Chairman,Board and Executive Management Team

29

IncomeThe GRDC’s total income in 2008–09 is forecast to be $135.6 million.

Figure 3 shows the sources of the GRDC’s forecast totalincome for 2008–09, in percentage terms. In dollar terms:

Australian Government contributions are expected to be$50.0 million

levy contributions from grain growers are expected to be$75.8 million

other income, which includes interest on investments androyalties, is expected to be $9.8 million.

Figure 4 shows the sources of the GRDC’s forecast levyincome for 2008–09, in percentage terms, by leviable crop.The 2008–09 forecast is based on several assumptions,including:

wheat production will be 26 million tonnes

the average price of Australian Premium White (APW) wheat will be $339 per tonne free on board

the gross value of grains production will be $14.2 billion

2007–08 levy rates will be maintained in 2008–09.

The GRDC considered the following two income scenarios for 2008–09:

Scenario 1 is the baseline case, underlying the aboveincome information. It is based on the 2008–09 grainproduction forecasts made by the Australian Bureau ofAgricultural and Resource Economics (ABARE) in March2008 and average prices provided by Profarmer for the2008–09 crop.

The baseline scenario indicates that projected incomewould be $135.6 million. Gross reserves at the end of theyear would be $91.2 million, which is within the prudentiallimits of the GRDC’s reserves policy.

Scenario 2 projects a pessimistic case, with the major crop production of wheat, barley, oats, canola, andsorghum set at 30 percent below the ABARE March 2008forecasts. The price of APW wheat is also reduced to $300per tonne, with similar proportional reductions in the pricesof other major crops. This scenario highlights the sensitivityof GRDC income to fluctuations in grains production andprices.

Under Scenario 2, projected income for 2008–09 would be$105.0 million (projected income declines by $30.6 millioncompared to Scenario 1). Gross reserves at the end of theyear would be $60.6 million, which is above the lower limitof the GRDC’s reserves policy.

5 Estimated income and expenditure in 2008–09

30

Figure 3—Forecast total income

■ Grain Grower Levy 56%

■ Australian Government 37%

■ Interest, Royalty & Other 7%

Figure 4—Forecast levy income

■ Wheat 56%

■ Pulses 6%

■ Oilseeds 10%

■ Coarse Grains 28%

ExpenditureThe GRDC Board has approved an annual expenditure of$121.0 million in 2008–09, an increase of approximately 13 percent in comparison to the 2007–08 expenditure budget.

Table 9 summarises the GRDC’s estimates of expenditure for 2008–09. Of the total forecast R&D expenditure, newinvestments for 2008–09 amount to $24.4 million, whileongoing commitments amount to $84.5 million.

These figures are indicative only. Changes in the GRDC’soperating environment may require the corporation to vary the total expenditure or specific allocations to secure itsfinancial objectives.

Figure 5 shows the break-up of the proposed expenditure, inpercentage terms. Costs of employees and suppliers accountfor 10 percent of the forecast expenditure in 2008–09.

Australian Government Research Priorities

Table 10 summarises the expected total expenditure allocatedagainst each of the Australian Government’s NationalResearch Priorities and their associated goals for the 2008–09financial year. The allocation of funds is shown in both dollarand percentage terms for each output group and the enablingfunction Corporate Strategy and Program Support. The totalexpenditure in Table 10 does not include emerging issues,project review, impact assessment, project variation andcontingencies.

Table 11 summarises the expected total expenditure allocatedagainst each of the Australian Government’s Rural R&DPriorities for the 2008–09 financial year. The allocation of funds is shown in both dollar and percentage terms for eachoutput group and the enabling function Corporate Strategyand Program Support.

Payments to the Grains Council of AustraliaThe GRDC has budgeted to pay the GCA $150,000 in2008–09, to:

meet the GCA’s costs in preparing for and attendingconsultative meetings with the GRDC to assess the GRDC’s performance against the industry’s expectations

provide the GCA with funding for agreed projects andsupport the GCA’s participation in key conferences relevant to the GRDC’s functions.

Budget allocation 2008–09 2008–09$m %

R&D investments

1 Practices 34.9 28.8

2 Varieties 47.8 39.5

3 New Products 10.9 9.0

4 Communication & Capacity Building 6.0 5.0

Strategic investmenta 9.3 7.7

Management

Employees 6.0 5.0

Suppliersb 6.1 5.0

Total 121.0 100.0

Table 9—Estimates of expenditure

a Strategic investment includes investments in the Global Crop Diversity Trust,emerging issues, project review, impact assessment, project variation, andcontingencies.

b Supplier costs include depreciation and amortisation.

31

Figure 5—Forecast expenditure

■ On-going Commitments 70%

■ New ResearchInvestment 20%

■ Employees 5%

■ Suppliers 5%

32

ESTIMATED INCOME AND EXPENDITURE IN 2008–09

Fron

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tech

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14

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a—A

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alia

n G

over

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t Nat

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earc

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rior

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($ v

alue

s)

Fron

tier

tech

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1.78

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1.83

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Tabl

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b—A

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rior

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(% v

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s)

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Com

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33

Clim

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Pro

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and

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$m$m

$m$m

$m$m

$m$m

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8.79

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14

Tabl

e 11

a—A

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alia

n G

over

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t Rur

al R

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Pri

oriti

es ($

val

ues)

CC

B =

Com

mun

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es, p

roje

ct re

view

, im

pact

ass

essm

ent,

proj

ect v

aria

tion

and

cont

inge

ncie

s

Tabl

e 11

b—A

ustr

alia

n G

over

nmen

t Rur

al R

&D

Pri

oriti

es (%

val

ues)

Clim

ate

Rur

al R

&D

Pro

duct

ivity

and

S

uppl

y ch

ain

Nat

ural

res

ourc

eva

riabi

lity

and

P

riorit

ies

addi

ng v

alue

and

mar

kets

man

agem

ent

clim

ate

chan

geB

iose

curit

yIn

nova

tion

skill

sTe

chno

logy

Oth

era

Tota

lb

%%

%%

%%

%%

%

Prac

tices

8.69

0.10

9.34

1.19

10.2

94.

600.

300.

0134

.52

Varie

ties

14.1

91.

230.

408.

658.

995.

917.

840.

0747

.28

New

Pro

duct

s1.

221.

26–

0.32

1.99

–5.

830.

1410

.76

CC

B–

––

––

5.96

––

5.96

CSP

S–

––

–0.

990.

49–

–1.

48

Tota

l 24

.10

2.59

9.74

10.1

622

.26

16.9

613

.97

0.22

100.

00

ABARE Australian Bureau of Agricultural and Resource Economics

ACRCP Australian Cereal Rust Control Program

APW Australian Premium White

ASRIS Australian Soil Resource Information System

BBA Barley Breeding Australia

CAC Act Commonwealth Authorities and Companies Act 1997

CCB Communication and Capacity Building

CIMMYT International Maize and Wheat Improvement Center

CQOG Canola Quality Objectives Group

CRC cooperative research centre

CRC NPB Cooperative Research Centre for National Plant Biosecurity

CSIRO Commonwealth Scientific and Industrial Research Organisation

CSPS Corporate Strategy and Program Support

EPR End Point Royalty

GCA Grains Council of Australia

GM genetically modified

GRDC Grains Research and Development Corporation

ICARDA International Center for Agricultural Research in the Dry Areas

IPM integrated pest management

NIPI National Invertebrate Pest Initiative

NVT National Variety Trials

PBA Pulse Breeding Australia

PIERD Act Primary Industries and Energy Research and Development Act 1989

R&D research and development

RDC rural R&D corporation

34

Abbreviations list

Chairman—Keith Perrett

Managing Director—Peter Reading

Executive Managers:

Varieties—John Harvey

Practices—Greg Fraser

New Products—Vince Logan

Communication & Capacity Building—John Harvey & Greg Fraser

Corporate Services—Gavin Whiteley

Corporate Strategy & Program Support—Iftikhar Mostafa

Key contacts

grdc annual operational plan...priorities and performance to help achieve the objectives set out in...

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