Organisations utilising a best practice planning process link their corporate and operational plans to their budgeting and performance plans to achieve an integrated planning cycle. Integration is critical to ensure the alignment of business and performance plans and the annual operating budget to the overall strategic direction of the organisation.

The RIRDC 2003–2004 Annual Operational Plan (AOP) has been developed in conjunction with our Five Year Plan which is being revised to address the present and future R&D environment in Australia.

The timing of this AOP coincides with the recently announced National Research Priorities developed by the Government after extensive consultation with public, private and research sector organisations. These broad priorities have been supplemented by the provision of updated Government priorities for rural research and development. The AOP specifically addresses how RIRDC programs will actively contribute to these research priorities in the year ahead.

Our contribution to the national and rural research priorities compliments RIRDC’s commitment to working with industry and research stakeholders and partners to identify objectives and strategies for each program and sub-program. These are included in this AOP and are elaborated upon in the 2003–2004 Research Priorities booklet. As such this AOP is a pivotal part of RIRDC’s operational and accountability procedures.

For the next year RIRDC received 526 applications for funding and some 150 will be contracted in 2003–2004. Overall budget statements and sub-account revenue and expenditure details are included in this AOP.

The Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry has approved the AOP as the basis for RIRDC’s operations. Any queries should be directed to the Corporate Directory at the back of this document. The homepage on our website – www.rirdc.gov.au is also a useful reference for further details on the operations of the corporation.
 

Professor Beth Woods  Chair July 2003

Dr Simon Hearn  Managing Director  July 2003

STRATEGIC PLAN Our Vision A more profitable, dynamic and sustainable rural sector Our Mission WHO? To meet the R&D-related    needs of our diverse client   group WHAT? By investing in and providing   information on R&D solutions   for our clients HOW? Through the delivery of    services, underpinned by    innovation, better practice,   scientific rigour and effective   partnerships WHY? To advance Australian    agriculture on a profitable,    dynamic and sustainable    basis Our Core Business Fostering the development of new industries – both prospective and emerging Managing research and development investments for established industries Addressing strategic cross-sectoral issues facing the rural sector Our Key Stakeholders The Federal Government, on behalf of rural industries and taxpayers Industry Funders The Australian community

Executive Summary

Key Elements of the 2003–2004 Annual Operational Plan
Budgeted revenue of $22.5 million which includes $12.1 million allocated by the federal government. The government is expected to provide a further $2.5 million to match outlays from statutory levies. Significant non-statutory revenue is budgeted for Agroforestry and joint ventures in Capacity Building for Innovation in Rural Industries and on Farm Health and Safety. Voluntary contributions from both the fodder and horse industries are also important budget revenue considerations.

Budgeted expenditure of $24.5 million in 2003–2004. This expenditure is in the five key program areasand includes all corporate, communication and administration costs. These outlays will fund existing and new research projects to meet the strategies and goals of RIRDC’s research and development plans.

The corporation is budgeting for a deficit of nearly $2 million in 2003–2004. Most of this deficit will be funded by reducing the reserves of RIRDC’s industry sub accounts. This drawdown from sub-accounts will total $1.7 million and in part represents the lagged effect of the drought on industry production levels and levy contributions. On RIRDC core, a net deficit of $180,000 is anticipated in the plan.

The levels of reserves in the industry sub accounts are fully adequate to meet the above commitments. The net deficit in core funds is attributable to increased demand for research projects and anticipated new projects to address the government’s nationaland rural research priorities. This can be readily accommodated within the corporation’s ongoing resource base.

Two important directional overlaps for RIRDC in the 2003–2004 will be to take proactive action to implement the corporation’s research commercialisation and IP policy and the need to contribute to the government’s National Research Priorities which were complemented by the recently announced rural research priorities. Accordingly, Program Development activity in the plan is budgeted to increase markedly in 2003–2004 to allow for proactive initiatives in these areas. As shown in this plan these objectives will not detract from the corporation’s commitment to stakeholder R&D strategies and priority outputs and outcomes in the year ahead.

The corporation has four R&D programs and 19 sub-programs within that structure. Information on each sub-program is presented on pages in this plan. New projects being funded in 2003–2004 are also listed within each sub-program.

The Corporation's Expenditure for 2003–2004

Research and Development		$m		2003/2004 Expenditure
	2001/2002	2002/2003	2003/2004	as a % of Total
Prospective New Industries	2.39	2.35	2.29	9.4%
Emerging New Industries	4.73	5.62	5.59	22.9%
Established Rural Industries	8.22	8.57	7.30	29.8%
Future Agricultural Systems	3.39	4.12	4.21	17.2%
Program Development	–	0.34	1.12	4.6%
Research Coordination & Management	1.64	1.58	1.57	6.4%
R&D Communications	0.29	0.34	0.32	1.3%
Functional Support Areas
Corporate	0.65	0.64	0.63	2.6%
Communications	0.35	0.40	0.45	1.8%
Administration	0.87	0.93	0.98	4.0%
	22.53	24.89	24.46	100.0%

The Corporation's Financial Position

Accrued reserves at the end of June 2003 and at the end of June 2004

	RIRDC Core ($)	Sub-Accounts ($)	Consolidated ($)
Estimated  end June 2003	(442,206)	6,228,007	5,785,801
Forecasted  end June 2004	(622,956)	4,501,004	3,878,048

Cash reserves at the end of June 2003 and at the end of June 2004

	RIRDC Core ($)	Sub-Accounts ($)	Consolidated ($)
Estimated  end June 2003	300,000	4,100,000	4,400,000
Forecasted  end June 2004	300,000	4,100,000	4,400,000

Note: The accumulated accrued and cash reserves above are based on projections made to 30 June 2003 and budgeted activity for 2003-2004 as disclosed in Tables 1-3.

Some Examples of Key Projects
 

• New Plants - Development of a pilot-scale, environmentally sustainable, wastewater system for olive oil extraction.
• New Animals - Investigation of factors that influence meat quality from kangaroos.
• Asian Foods - Development of taro, yam, yam bean and sweet potato exports to Japan and the U.S.A.
• Agroforestry and Farm Trees - Development of Florasearch—a systematic survey of Australian woody perennials of potential commercial use in drier areas of southern Australia.
• Deer - Development of nutritious long shelf life venison based products for specialist markets.
• Essential Oils - Improvement of lavender varieties by manipulation of chromosome number.
• Organic Produce - Development of organic sugar as a product in its own right and also as an ingredient.
• Rare Natural Animal Fibres - Development of processing and production benchmarks for cashmere.
• Tea Tree Oil - Development of the efficacy of tea tree oil as a topical antiseptic.
• Wildflowers and Native Plants - Assessing new Leptospermum hybrids for vase life, novel colour forms and varying flower times that will be productive in a range of locations and increase wildflower exports.
• Chicken Meat - Identify and prioritise any risks associated with pathogen emissions from chicken sheds and the use of chicken litter as fertiliser, so that strategies can be developed and adopted to minimise such risks.
• Honeybee - Major program of support for improved management and control of the recently introduced exotic pest - the small hive beetle.
• Rice - Development of the next stage of the rice breeding program. This will continue to develop new varieties which where started during the last phase of this research.
• Horse - Management strategies for reducing the risk of rhodococcal pneumonia on horse studs.
• Fodder Crops - Introduction of significant new hay oriented lines into the oaten hay breeding program and expansion of the oaten hay breeding activities to include sites and activities in all major producing States.
• Pasture Seeds - Commence the second stage of a water balance study which incorporates salinity issues for lucerne seed production in South Australia.
• Global Competitiveness - An assessment of adjustment assistance support schemes used in Australia and their implications for facilitating international trade policy reform.
• Resilient Agricultural Systems - Application of Environmental Management Systems (EMS) on Australian farms.
• Human Capital, Communication and Information Systems - Publication of a multi-disciplinary book on regional foods detailing the connection between food and health in regional Australia.

 

Last updated: June 2002  Copyright © RIRDC
http://www.rirdc.gov.au/aop02-03/contents.htm