Rural Industries Research & Development Corporation

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 Reporting Against Legislative and Planning Frameworks

The Primary Industries and Energy Research and Development Act 1989 sets out what must be in the Corporation’s Annual Report for 1997-98. Three important obligations are to make an assessment of the extent to which operations during 1997-98 have:

contributed to the objects of the enabling legislation;

achieved the key goals and performance targets as set out in the Corporation’s 1997–2002 R&D plan; and

implemented the 1997-98 annual operational plan of the Corporation.

The objects of our enabling legislation are about R&D as an investment that fosters innovation, competitiveness and sustainability. The objects also call for strengthening accountabilities for these investments to industry and government. Under the legislation, the nature of the R&D investment can be broad, ranging from covering the research discovery and generating ideas process itself, the training of people to carry out the research, through to information transfer and assistance with adoption of the research findings.

This Annual Report details the Corporation’s activities across this legislative mandate. The Corporation has four programs and, under them, there are twenty-one sub-programs. The achievements of each sub-program (on pages *–* of this report) describe how the Corporation is seeking to meet the objectives of our enabling legislation and how the ‘expected key outcomes’ of the annual operational plan for 1997-98 were met.

1997-98 was the first year of operations for the Corporation under its five year plan 1997–2002. This plan sets out a new set of performance indicators for the four programs. Our progress against the performance indicators in this five year plan is set out at table 1 on page. In addition, there are a number of corporate performance indicators in our plan that are not specific to any one Program and our results against each of these in 1997-98 are presented at page.

The Corporation, under its enabling legislation, also provides the corporate umbrella for its associated Dried Fruits Research and Development Council. The Council submits its annual report to the Minister directly.

Table 1: Meeting the performance indicators of the Five Year Plan 1997/2002

Program	Performance in 1997/1998
1.   Prospective New Industries  We will measure our success by:
The development of sustainable new industries	Strategic plans were established for durian, longan, lychee and mangosteen. Both the dairy goats and milking sheep industries are developing into sustainable industries based on R&D outcomes.
Industry adoption of the results of research that we organise and support	Progress was made in developing R&D plans for bushfoods and olives. The kangaroo industry has rapidly adopted meat trading language and specification.
Achievement of average benefit–cost ratios of two and/or internal rates of return greater than 15 per cent on R&D projects	The first phase of R&D for buckwheat was completed, exports of this new temperate-region crop was completed and the industry expressed interest in value-adding by noodle making. A market study and a pruning video for the burgeoning olive industry were completed. Research into emu and alpaca industries showed internal rates of return of 19 and 34 per cent, which exceeded the Corporation’s target of 15 per cent.
The level of industry funding support for our research programs	The Australian Lychee Growers’ Association made a commitment to dollar-for-dollar matching for future R&D.
The growth in industry outputs over a 5–10 year period.	The production and export of lychee continued to grow. The Lychee industry now has a G.V.P. of about $12 million a year.
Program	Performance in 1997/1998
2. Emerging New Industries   We will measure our success by:
The growth in emerging industries over a five year period	Industry trading of Australian rare and natural fibres was buoyant despite the downturn in Asian demand and utilisation. There was significant growth in the production of leafy Asian vegetables, some with significant exports (for example, Chinese cabbage). There was sustained overseas demand for Australian peppermint oil. Strategic planning workshops were held for the medicinal herbs industry, whose annual turnover is increasing by about 20 per cent a year.
Our establishment of R&D plans that address each industry’s agreed strategies and goals	RIRDC’s five year plan for R&D for the angora, mohair cashmere and alpaca industries was released. A five year plan for the Joint Venture Agroforestry Program was developed and preparations commenced for a Research and Development Plan for tea tree oil.
The level of industry funding support for the research programs we established and support	Support was received for establishing a range of industry groups that will provide a focus for R&D efforts and a basis for future funding support (for example, aquatic vegetables, bamboo and organic produce). The voluntary R&D contribution from the tea tree industry is now matched on a dollar-for-dollar basis by RIRDC.
The level of the adoption by industry of the results of research we organise and support	Several new program newsletters have been established, which have improved communications with industry (for example, Access to Asian Foods and Access to Asian Vegetables). There was strong demand for the publication Design Principles for Farm Forestry. First sale of seed resulting from the tea tree breeding program supported by RIRDC occurred in 1997-1998.
Achievement of an average benefit–cost ratio of five and/or internal rates of return greater than 20 per cent on R&D projects	A major benefit–cost study of 35 emerging industries projects found rates of return ranging from 3 to 61 per cent, with most greater than the Corporation’s target of 20 per cent and benefit–cost ratio of five.
3. Established Industries   We will measure our success by:
Our establishment of R&D plans that address each industry’s agreed strategies and goals	New five year plans for chicken meat, eggs and fodder crops were finalised during the year. All sub-programs now have current five year R&D plans that have been developed in close consultation with the appropriate industries.
Industry funding support for the agreed plans through R&D levies or other dollar-for-dollar mechanisms	Five of the seven sub-programs have a statutory R&D levy funding base. The other two, ‘Horses’ and ‘Fodder Crops’, have developed during the year levy proposals that are now either with or about to be submitted to the Government. The horse sub-program has a voluntary industry levy, which provides 50 per cent of the R&D funding.
The adoption level of the results from our research projects within industry practice	Examples of R&D outcomes with significant adoption during the year include: application of a rapid test for poultry diseases; a comprehensive database on nutritional values of chicken feedstuffs; learning materials for layer farm managers; guidelines for solving egg shell quality problems; improved honey quality through well defined bulk container quality standards; integrated weed control strategies for rice; improved trash management in rice harvesting; substantially improved information of several major horse health issues; a national standard for assessing fodder quality; improved water use efficiency for lucerne hay growers; and increased lucerne seed planting and demand in Western Australia. RIRDC has just undertaken a major review of its communications activities.  Implementation of the recommendations of this review should lead to wider adoption of the results and better quantification of this adoption before the end of the current strategic plan.
Achievement of average benefit–cost ratio of 10 and/or internal rates of return of greater than 25 per cent on R&D projects.	A major benefit–cost analysis of the program ‘Established Industries’ program is planned for 1998–99 as part of RIRDC’s clearly defined evaluation program.
Future Agricultural Systems  4.1 Global Competitiveness   We will measure our success by:
Establishing an R&D plan that addresses the needs of stakeholders	The needs of stakeholders are currently being met through the incorporation of individual project steering committees for most projects.
Developing options and strategies that identify new opportunities in the marketplace and in particular, contribute effectively to the Government’s ‘Supermarket to Asia’ initiative	Five research reports and three short reports were produced which highlight potential market opportunities in countries such as Korea, Japan, India, China, Indonesia and Myanmar. An Outlook Conference session on the Asian financial crisis was supported through a direct link to the ‘Supermarket to Asia’ program. During the year new collaborative links with this program were established.
Identifying options and strategies for reducing trade barriers and domestic policy impediments for Australian agriculture	A symposium on trade policy options was supported at the time of the Cairns Group meeting in Sydney. A major review of trade policy development options in the lead-up to the next WTO round was supported with a report in the final stages of production.
Improving linkages between producers, consumers and providers of agribusiness goods and services	A report was produced which facilitated better links between grain growers and others along the marketing chain.
Research project outcomes that have enhanced export performance and culture and resulted in the removal of impediments to effective trade with Asia in the food sector	A report was produced which highlights the results of a set of regional export forums that were used to develop an enhanced export culture in rural areas of Australia.
identifying new policies or institutional arrangements which will improve Australia’s global competitiveness	A workshop on the pros and cons of foreign investment for Australian agriculture was supported and a report will be produced early next year.
Our ability to demonstrate that average benefit–cost ratios of 10 and/or internal rates of return greater than 25 per cent can be achieved for R&D projects	A major benefit–cost analysis of the program ‘Future Agricultural Systems’ is planned for 2000–01 as part of RIRDC’s clearly defined evaluation program.
Program	Performance in 1997/1998
4.2 Resilient Agricultural Systems   We will measure our success by:
The establishment of R&D plans that address the needs of stakeholders	A review of the sub-program commenced and should be completed in 1998-99. 1997-98 was seen as a period when several separate programs were consolidated into sub-program 4.2.
The adoption level of results from our research projects	The focus of the program has been reviewed to ensure higher levels of adoption.
Pilot trialled accredited sustainable production systems in a range of industries and regions	In collaboration with other R&D corporations sustainability indicators for agriculture were identified.
Analytical processes for conceptualising/developing new agricultural systems	The report Better Planning for Rural Development was published.
The development of new agricultural systems	Support was given to developing aquaculture for marine species using reclaimed saline ground water and to research using farm irrigation water for aquaculture.
The development of adaptive responses and new opportunities for rural industries related to climate change and variability	The development of RAINMAN as a Windows and Internet compatible product, to be launched in 1998-99, was supported.
Improved management of pest-related constraints and risks	Research showed that the concentration and therefore the cost of various soil fumigants required to kill soil borne pathogens can be reduced. An important national workshop was held to explore opportunities for developing pesticide risk reduction strategies, particularly for export industries. Guidelines were developed for commercially establishing advisory services to assist growers in their management of nematode diseases in a range of crops.
Safe use of biotechnology to improve profitability and sustainability	Other organisations such as CSIRO and GRDC, on behalf of R&D corporations, are taking a leadership role. Support continued for the development of new procedures in waste management and bioremediation.
The identification of policies and institutions that are more responsive to the needs of sustainable and profitable agricultural systems	The reports Impact of Rural Subdivision on Agriculture and A Review of Family Farm Transfer were published.
Our ability to demonstrate that average benefit–cost ratios of 10 and/or internal rates of return greater than 25 per cent can be achieved for R&D projects	The Corporation has a four-year rolling evaluation program and the three sub-programs in Program 4 are scheduled for inclusion in this evaluation process in 2000-2001.
Program	Performance in 1997/1998
4.3 Human Capital, Communications and Information Transfer   We will measure our success by:
The establishment of R&D plans that address the needs of stakeholders	An R&D plan on farm health and safety was issued.
The adoption level of results from our research projects	R&D relating to communications and education targeted users’ needs.
the increased use of the Internet and other new information and communication systems by farmers to improve farm management	The Australian Farmers’ Guide to the Internet was published and over 2000 copies have been distributed to date.
Improved communication between end users (including farmers) and researchers	Significant progress was made by targeting press coverage, issuing newsletters, publishing short reports and improving the RIRDC web page.
The increased responsiveness of policies and institutions involved in agricultural education and communication	RIRDC research on farmer education assisted the recent review of the Rural Adjustment Scheme.
Better practices for farm health and safety	The Rural Injury Prevention Primary Education Resource was released.
Up to three new rural leaders trained per year and contributing to RIRDC industries	RIRDC provided two places in the Australian Rural Leadership Program from core funds.Corporation levy funds supported another three participants in 1997-98. RIRDC is also investigating options for supporting the continuation of the Rural Woman of the Year Award.
Up to five research post-graduates per year contribute to RIRDC industries	Nine new postgraduate scholarships were awarded in 1997-98.
Our ability to demonstrate that average benefit–cost ratios of 10 and/or internal rates of return greater than 25 per cent can be achieved for R&D projects	The RIRDC Board has approved a detailed benefit–cost analysis of projects in this sub-program in 2000-01.