Rural Industries Research & Development Corporation

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RIRDC ANNUAL OPERATIONAL PLAN  2000 - 2001

Executive Summary

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Key Elements of the 2000-2001 Plan	Revenue and Expenditure for 2000–2001
Corporation's Financial Position	Program Evaluation
Consultations with Industry	Notification of Significant Events

Key Elements of the 2000–2001 Plan
Our planned expenditure for 2000–2001 is $25.9 million — up from $24.7 million in 1999–2000. Three factors attributed to this increase of $1.2 million:
 
1. Funding for RIRDC core operations for 2000–2001 has been brought more into balance so that planned expenditure is very close to budget revenue. Compared to 1999–2000 this action is pulling down our expenditure by around $1.2 million.
2. Budgeted expenditure from our industry sub-accounts exceeds revenue by around $2 million in 2000–2001. This will reduce their reserves to around $4.4 million.
3. Some of our sub-programs are working with co-investors on one-off external contributions. In some cases the details are still being finalised but close to $1 million in additional funding is being budgeted.


In aggregate this expenditure of $25.9 million will go to funding and oversighting research projects across more than 20 sub-programs. As in previous years this project portfolio is drawn from the corporate and sub-program five–year plans and close dialogue with our industry partners. Information on each sub-program is presented on pages 12-65 of this Plan. This is where the more detailed industry-specific information is presented, including a listing of new projects to be funded in some of 2000–2001. Our website should also be referenced for details on ongoing projects.
 
 

All programs are directed to one overall outcome: more profitable, dynamic and sustainable rural sector. The outputs from each of our Programs are: Knowledge, processes and technology that support achievement of the planned outcome.

Program 1: Prospective New Industries

Planned Outcome
Improved prospects for new industries in rural and regional Australia.

Inputs
Budgeted funds of $2,397,994. This will be financed principally from Commonwealth appropriation funds but there are also some voluntary industry contributions.

Some Key Outputs for 2000–2001

1.1 New Plant Products

• Easier access to information on bushfoods/herbs through new websites. Development of business and research plans for coffee. Having done the market analyses better targetted investments in coffee, frozen culinary herbs, buckwheat, longan, olives and rambuttan.
• Building and trialling tractor drawn coffee harvester. Development of virus free garlic planting material with high allicin content.


1.2 New Animal Products

• New grading standards for kangaroo skins.
• Increased knowledge on how to produce and market dairy products from sheep and goats.
• More acceptable pelleted diets for farmed crocodiles.


Program 2: Emerging New Industries

Planned Outcome
Accelerated growth and development of emerging new rural and associated processing industries.

Inputs
Budgeted funds of $6,792,022. This will be financed from Commonwealth appropriation funds, statutory levies on the deer industry, and cashmere and mohair production, matching dollar for dollar those levy funds, voluntary industry contributions and some joint funding with Horticultural Research & Development Corporation.

The Joint Venture Agroforestry Program is expected to receive funds from the Land and Water Resources Research and Development Corporation, the Forest and Wood Products Research and Development Corporation, the Natural Heritage Trust, the Murray Darling Basin Commission and the Australian Greenhouse Office.

Some Key Outputs for 2000–2001

2.1 Asian Foods

• Improved information on a wider range of Asian fresh and processed vegetables with a focus on non-English speaking producers.


2.2 Agroforestry and Farm Forestry

• Increased availability of improved genetic material for medium to low rainfall agroforestry systems.
• Better farm forestry design to optimise water balance benefits and windbreak shelter benefits.


2.3 Deer

• Expanded Quality Assurance Program for the venison part of the industry by brand mark accreditation.
• Expanded export market outlets for venison.


2.4 Essential Oils and Plant Extracts

• Industry/researcher workshops and further issues of industry newsletters.
• Measurement-based irrigation procedures for peppermint production and examination of the scope for commercial spearmint production.


2.5 Organic Produce

• Domestic and export labelling framework which is consistent with overseas requirements.
• Inaugural national conference for the organic industry.
• Further collaboration with other RDCs and State agencies.


2.6 Rare Natural Animal Fibres

• Updated handbook on all aspects of goat fibre production, particularly cashmere.
• Assessment of marketing opportunities of coarse mohair fibre in fabrics.


2.7 Tea Tree Oil

• Release of seed out of the breeding project.
• An assessment of the suitability of tea tree as a topical antiviral agent and an improved understanding of the skin sensitivity of tea tree oil.


2.8 Wildflowers and Native Plants

• Grower trials of new lines of riceflowers, Baeckae species, flannel flowers, Ixodea daisy and yellow bells.
• The commercial release of several improved lines of waxflower.
• Improved targeting of sales based on analyses of markets in North America, Europe and Asia and a better understanding of the domestic market.


Program 3: Established Industries

Planned Outcome
Maximisation of the contribution of R&D to the profitability and sustainability of the established rural industries for which RIRDC provides R&D management services.

Inputs
Budgeted funds of $9,103,498. This will be financed principally by industry levies and matching dollar contributions from the Commonwealth.

Some Key Outputs for 2000–2001

3.1 Chicken Meat

• Development of a plan for the future management of Newcastle disease in Australia based on the outputs of collaborative industry, RIRDC and government surveys and research.
• Improved feed formulation practices, and better and more reliable information on nutritional value of a range of local feedstuffs.


3.2 Eggs

• Improved understanding of the nutritional and management requirements of imported layer strains.
• Improved understanding of the factors affecting nutritional value of feed grains.
• An industry plan to utilise the results of the international benchmarking study.


3.3 Honeybee

• Crop pollination extension package to assist extension officers and consultants to organise and encourage professional pollination services.
• Improved disease management as part of the quality assurance program to safeguard the quality and image of honey.


3.4 Rice

• Higher yielding and improved quality varieties, which are better focused on specific domestic and export consumer demands.
• Reduced water use, more effective fertiliser application, improved integrated weed control methods and reduced harvesting costs and wastage.


3.5 Horses

• A 'state–of–the–art' book on laminitis in horses, distilling the principal findings from RIRDC–funded research over the past four years.
• Promotion of the research findings from major projects on management and treatment of respiratory diseases in racehorses funded over four years.
• A strategy for learning and training in the horse industry as a follow–up to a workshop in this area.
• Support for a major study of the economic impact of the horse industry.


3.6 Fodder Crops

• Improved range of fodder varieties available to the Australian fodder industry.
• Improved fodder quality measurement standards accepted by all Australian testing laboratories.


3.7 Pasture Seeds

• Additional seed production varieties and better disease testing methods.


Program 4: Future Agricultural Systems

Planned Outcome
Identification of key generic cross-sectoral issues confronting the rural sector and appropriate R&D programs that will benefit the sector and the nation.

Inputs
Budgeted funds of $3,350,000. This will be financed principally from Commonwealth appropriation funding. However, there is a component of joint funding from other RDC's including Farm Occupational Health and Safety.

Some Key Outputs for 2000–2001

4.1 Global Competitiveness

• Research information to support Australia's input to the next WTO round of trade policy negotiations.


4.2 Resilient Agricultural Systems
 

• A review of agriculture's potential to provide pharmaceuticals, nutraceuticals and industrial products.
• Scope for irrigation enterprises to incorporate multiple use of water and integrated aquaculture into farm operations.
• Increased understanding among the rural community about accreditation in accordance with ecologically sustainable development principles to assist in obtaining price premiums.
• Release of Australian Rainman as a windows multimedia CD and Internet compatible product to improve management of climate variability.


4.3 Human Capital, Communications and Information Systems

• Improved leadership skills through the Australian Rural Leadership Program, the Rural Women's Award and the Nuffield Program.
• Improved capabilities of extension agents to achieve high levels of participation by stakeholders in R&D activities.
• Improved services to farmers through the internet.

In addition to the budgeted resources for Programs 1–4, the Corporation has provided $525,000 for a program development fund to give a degree of flexibility in addressing new initiatives during  2000–2001.

Program 5: Portfolio Management

Outcome Supported
A more profitable, dynamic and sustainable rural sector. The Corporation will do this by ensuring it remains a cost-effective, leading edge investor fostering competitive advantage in rural industries.

Inputs
Budgeted funds of $3,749,191. These funds allow provision for research coordination and management activities, corporate and program related communication activities and corporate/administration support in delivering the 2000–2001 Plan.

Planned Outputs

• Support and facilitate the outputs of RIRDC's Programs 1–4.


Some Key Outputs for 2000–2001

• Publication and distribution of quality research/corporate reports.
• Web site www.rirdc.gov.au as the hub of our information systems with high public usage.
• A revised set of RIRDC General Terms and Conditions of Employment.
• Completion of a User Survey by end May 2001.
• Completion of an evaluation of a set of completed projects for Program 4: Future Agricultural Systems.


The Corporation's Revenue and Expenditure for 2000–2001
The 2000–2001 Plan is framed around total Corporation revenue of $23.8 million. This is made up of a Commonwealth general appropriation of nearly $11.3 million, statutory levy and associated Commonwealth matching revenue of $7 million and other external income of $5.6 million.

The proposed expenditure in 2000–2001 is $25.9 million. In aggregate terms, the key expenditure areas are as follows:

 

Research and Development	$m	As % of  total expenditure
Prospective New Industries	2.40	10
Emerging New Industries	6.81	26
Established Rural Industries	9.10	35
Future Agricultural Systems	3.35	13
Program Development	0.53	2
Research Coordination and Management	1.54	6
Communications and Consultation	0.35	1

Functional Support Areas	$m	As % of total expenditure
Corporate	0.57	2
Communications	0.35	1
Administration	0.90	4

The Corporation's Financial Position
On an accrued basis the reserves held by the Corporation at the end of June 2000 and the end of June 2001 are estimated/forecasted as follows:

 

	RIRDC Core ($)	Sub-Accounts ($)	Consolidated ($)
Estimated end June 2000	(1,316,409)	6,331,926	5,015,517
Forecasted end June 2001	(1,396,371)	4,371,974	2,975,603

On a cash basis, the figures are as follows:
 

	RIRDC Core ($)	Sub-Accounts ($)	Consolidated ($)
Estimated end June 2000	(343,474)	6,432,177	6,088,703
Forecasted end June 2001	(383,436)	4,475,775	4,092,339

Where the Sub-Program is funded by statutory levies or significant external income, separate industry sub-accounts are held. Details begin on page 91. Nearly all of these sub-accounts hold reserves, which are forecast to be around $4.4 million at the end of June 2001. This is down from $6.3 million at the end of June 2000.

For RIRDC Core (the remainder), the forecast reserves are negative in accrued terms and just negative in forecast cash terms (just under $400,000).
It will be tight but, in the view of the Board, the reserves set out in the above tables should be sufficient for 2000–2001 operations given the risk profile of the Corporation. In making this judgment, Directors are aware that industry-funded reserves cannot be used to underpin the financial viability of the non-levy based accounts and that an application for a borrowing facility of up to $1 million is still before the Government.

If this application is not approved the Corporation will adjust its RIRDC Core payments to maintain a positive cash balance across its non-levy base.

In order of preference, our cash management strategy for RIRDC Core is a modest loan facility and then downsizing the Program via our Program Development allocation of $525,000.

Program Evaluation

This Plan sets aside funds to continue our rolling program of ex post project evaluations. Details are on page 81. In 2000–2001 a set of projects in Program 4 will be evaluated. This follows the Program 1 evaluations done in 1999–2000. The results of these evaluations will be presented in the Annual Report for that period. However, in short, they show rates of return for the 21 evaluated projects ranging from 6 to 230 percent and benefit/cost ratios ranged from 1.1 to 36.

Consultations with Industry

Prior to finalising the Plan, the Corporation consulted with the following industry organisations:

National Farmers' Federation

Australian Chicken Meat Federation Incorporated

Australian Egg Industry Association

Deer Industry Association of Australia

Ricegrowers' Association of Australia

Australian Honey Bee Industry Council

Australian Horse Industry Council

In the case of the National Farmers' Federation, consultations were on the total Plan and, in the case of the others, on those parts of the Plan that related directly to them.

Notification of Significant Events

The Corporation has reviewed this Plan in terms of section 15 of the Commonwealth Authorities and Companies Act 1997, which defines a particular class of proposal as 'significant' and notifiable to Ministers. The Corporation confirms, in the context of section 15, that there are no 'significant' proposals in this Plan that should be drawn to the attention of Ministers.

Last updated: 6 July 2000  Copyright © RIRDC
http://www.rirdc.gov.au/aop00-01/execsum.html