2005-06 ANNUAL REPORT


For a version with all illustrations and graphics download the PDF document  ||  Financial pages ||  Appendices


Introduction
 

Board Resolution
On 6 September 2006 the RIRDC Board authorised this Annual Report with the following resolution:

The Board:
(i) noted the completed Compliance Checklist; and
(ii) approved the Annual Report for the year ended 30 June 2006 which includes the following declaration of certification: “That the Corporation Board accepts responsibility under Section 9 of the Commonwealth Authorities and Companies Act 1997 for the preparation and content of this Report of Operations in accordance with the Finance Minister’s Orders”.

Enabling legislation
The RIRDC’s enabling legislation is the Primary Industries and Energy Research and Development Act 1989 (Commonwealth of Australia) (the PIERD Act). The RIRDC Board is accountable to the Parliament of Australia through the Parliamentary Secretary to the Minister for Agriculture Fisheries and Forestry. RIRDC Core Business

  •  fostering the development of new and emerging industries
  •  managing research and development investments for established industries.
  •  developing a research program addressing important strategic, crosssectoral issues facing the rural sector


    • Who we are
    RIRDC is a statutory authority in partnership with the Australian Government and rural industries to invest in R&D.

    Our vision is for a more profitable, dynamic and sustainable rural sector.

    Our mission is to make and manage R&D investments on behalf of government and industry for the benefit of the rural sector. To achieve this we invest in:

    The RIRDC Board RIRDC Stakeholders RIRDC’s Primary Clients
      RIRDC’s Industry Consultations
  • communications channels between RIRDC and rural industries meet two essential functions – accountability and bringing industry influence to bear on the research agenda
  • at the peak industry level, the Corporation is accountable to:
  • National Farmers’ Federation
  • Australian Chicken Meat Federation
    • All of the research Portfolios and Programs have R&D Advisory Committees with stakeholder membership.

    Reporting to Stakeholders

    Message from the Chairperson
    It is a pleasure to report on the progress and performance of the Rural Industries Research & Development Corporation, which we believe has made a valuable contribution to the industries and communities of rural Australia during 2005–06.

    Established Industries
    Achievements from the Established Industries portfolio are characterised by production and sustainability improvements such as those achieved in the Rice and Chicken Meat Programs. Virtually all rice varieties currently grown in Australia have been developed through the RIRDC rice program, with 83% higher yields, and 45% lower water use. The chicken meat industry has developed environmental management systems (EMS), and the first Australian chicken farm was certified under an internationally-recognised EMS during the year.

    New Industries
    A new RIRDC publication provides information on the value of 27 emerging animal and plant industries, estimated to be over $670 million a year. In addition to their impressive commodity value, these industries play an important role in enhancing the regional flavour of rural Australia, improving sustainability and building communities around new types of regional enterprises catering to tourists and niche markets. RIRDC responds to the specific needs of new industries with targeted R&D – a typical result was the release during the year of a new naming standard for popular Asian vegetables responding to the industry’s concern that confusion was inhibiting the domestic market.

    National Rural Issues
    RIRDC has a unique role in looking after the R&D needs for cross-industry issues, and this role was reinforced in the findings of the Corish report. Our flagship RIRDC Rural Women’s Award recognises the contribution of women to rural industries and communities, and this year we announced the first-ever national winner and runner-up. The winner, Martha Shepherd, is an innovative producer of value-added products from her plantation-grown rainforest fruits. The runner-up, Bev Logue from Western Australia, is involved in environmentally and economically sustainable biodiesel production by and for farming communities. Together these women represent the scope of RIRDC’s interests and innovations, in new industry development, in ways of making farming more sustainable, and in ways to improve the wellbeing of rural communities.

    Collobaration with other Research and Development Corporations
    RIRDC places high value on collaborating with other Research and Development Corporations. In 2005–06 the Corporation managed 574 projects and almost 20% of these were on a collaborative basis . Through the National Rural Issues Portfolio the Corporation manages three RDC-based partnerships – the Cooperative Venture for Capacity Building (CVCB); the Joint Research Venture for Farm and Health Safety and the Joint Venture for Agroforestry (JVAP) – with a total of 88 collaborative projects. The New Industries Portfolio managed nine collaborative projects and the Established Industries Portfolio managed two.

    Challenges and Opportunities
    While RIRDC’s industries achieved strong production results in 2005–06, continuing drought and underlying climate change contribute to significant risk for future production. In combination with limited progress in multi-lateral trade liberalisation, the outlook for rural industry remains challenging. Innovation, driven by research and development is a critical element of the response to these drivers.
    During the year the government released its response to the Uhrig review of governance arrangements for the Rural Research and Development Corporations, supporting the model for an independent Board operating under the Commonwealth Authorities and Companies Act 1997 and thereby providing a stable platform for continuing operations.

    An internal change plan which commenced in 2004–05 was significantly advanced during 2005–06 with the focus on adoption, relationships and capacity becoming embedded in the process of continuous improvement. The current year will see implementation of improved business management systems, allowing for online workflow arrangements throughout the project planning and management process.
    In 2006–07 we will develop a new Corporate Plan in response to a changing operating environment. This plan will incorporate a set of clear principles to improve rates of adoption and investment of funds, ensuring that RIRDC builds on its reputation for sound management of industry and government resources.

    The people who make it happen
    RIRDC values effective relationships with our stakeholders and seeks to foster and grow these relationships to maximise our impact.
    Our advisory committees play an essential role, ensuring the needs of industry are met in the R&D undertaken. A strong working relationship between the corporation and its research providers is also a factor in maximising the delivery of results. Recognising the importance of these relationships, we initiated a series of forums to stimulate discussion about how the three key parties in the R&D process can best serve RIRDC’s objectives.

    The outcomes and achievements of the last year were realised through the dedication, hard work and professionalism of our staff and management team led by Managing Director, Peter O’Brien, implementing the strategic direction shaped by an active and engaged Board of Directors.
    There are many individual and collective contributions that underpin the effectiveness of RIRDC enabling the Corporation to deliver its outcomes. I would like to acknowledge and thank our many stakeholders, staff and management team and my fellow Directors for their support and input to RIRDC during 2005–06.
    Working together, RIRDC can again make a significant contribution to rural Australia in the year ahead.

    In conclusion, I would like to acknowledge the support of the Parliamentary Secretary with responsibility for rural R&D. We welcome the Hon. Sussan Ley, MP, who in January was appointed in the role replacing Senator the Hon. Richard Colbeck, who has moved into a new role in the Finance portfolio.

    Mary Boydell
    Chair
     

    Board of Directors
    Ms Mary Boydell  - Chairperson
    Ms Boydell is a Chartered Accountant with extensive experience in business, finance and management. She is currently Chairperson of the Gladstone Area Water Board, a Director of BSES Limited and a Director of Energex Limited. She is an external member of the Australian Government Department of Agriculture, Fisheries and Forestry Audit Committee and the Maroochy Shire Council Audit Committee and a member of the Queensland Regional Council of the Institute of Chartered Accountants. She is a former Director of the Australian Trade Commission and Burnett Water Pty Ltd, and a former Chief Financial Officer Australia and Asia for the international law firm Deacons.
    Appointed 19 January 2004 for three years.
    B. Comm., FCA

    Mr Steve Marshall - Non-Executive Director, Deputy Chairperson
    Mr Marshall is a consultant with a background in science and international food processing. He has held senior managerial roles here and overseas, and has extensive experience in food technology and production. He is a current director of the Grains Research and Development Corporation, Go Grains Health and Nutrition Ltd and the Australian Rural Leadership Foundation.
    Re-appointed 1 July 2005 for three years.  B.Sc (Hons), M.App.Sc

    Mr Robert Boshammer  - Non-Executive Director
    Mr Boshammer is an agricultural producer from northern Western Australia. He is a director of the Ord River District Co-operative, Plantation Management Services WA Pty Ltd, Odeum Produce Pty Ltd, Ord Fuels Pty Ltd, and Kimberley Land Holiday Park Pty Ltd. His focus is the development of rural and regional Australia through fostering the development of people skills, supply lines and quality small/medium enterprises.
    Re-appointed 1 July 2005 for three years.  B.App.Sc (Hons), DipT

    Ms Lindy Hyam - Non-Executive Director
    Ms Hyam is currently the CEO of Plant Health Australia and has held a number of other Directorships and CEO roles in agriculture, including Executive Director of the Horticultural Research and Development Corporation and Non-Executive Director of HortResearch, New Zealand. Other previous roles in international education include Chief Executive, IDP Education Australia, CEO of IELTS Australia (Winner of a National Export Award in 2004) and founding CEO of the Peace Scholarship Trust. Lindy has held a number of senior roles within State and local Government and business, including former President of the Women Chiefs of Enterprises International Australia.
    Appointed 1 July 2005 for three years.  MBA, B.Ed, Dip. Teach, MAICD

    Dr Andrew Johnson - Non-Executive Director
    Dr Johnson has extensive experience in science, economics, conservation, natural resource management, technology transfer and administering R&D. He is Chief of Division, CSIRO Sustainable Ecosystems, and is also a director of the CRC for Tropical Savannas Management, the Australian National WildlifeCollection Foundation and the Centre of Rural and Regional Innovation. Appointed 1 July 2005 for three years. BAgrSc (Hons), PhD, MPA (Harvard) GAICD
     

    Mr John Lawrenson - Non-Executive Director
    Mr Lawrenson has a background in agribusiness, finance, governance, international trade and marketing. He is Chairperson of the Australian Fresh Fruit Company Ltd and Pink Lady Australia Ltd, a Director with Apple and Pear Australia Ltd and Bonlac Supply Company Ltd and former managing director of the Australian Wheat Board.
    Re-appointed 1 July 2005 for three years.
    Associate CPA, FCA (UK)
     

    Mr Norman McAllister - Non-Executive Director
    Mr McAllister has extensive experience in agricultural production, marketing and processing. He is Chairman of Rice Research Australia Pty Ltd and is a Director of Rice Growers Ltd, Riviana Foods Pty Ltd, and Silica Resources Pty Ltd. He is also a past Chair of RIRDC’s Rice Research Program.
    Appointed 1 July 2005 for three years. Dip.Ap. Sc, G.ARLP, FAICD

    Mr Simon Murnane  - Government Director
    Mr Murnane is a Senior Executive with the Department of Agriculture, Fisheries and Forestry, with responsibility for policies and programs in the meat, wool and dairy industries. He has extensive experience in policy and programs affecting rural Australia, having worked in the fields of natural resource management as well as regional economic development.
    Appointed 2 November 2005. BA

    Mr David Mortimer - Government  Director
    Resigned 1 November 2005.
     

    Dr Peter O’Brien  - Managing Director
    Dr O’Brien was appointed Managing Director in February 2005. His career includes Executive Director of the Bureau of Rural Sciences, Director of the Australian Fisheries Management Authority and membership of the Executive Leadership Team of the Australian Government Department of Agriculture, Fisheries and Forestry. He is also a director of the Australian Poultry CRC. Dr O’Brien’s research has included wildlife management
    and exotic disease contingency planning and he has published on performance management and scenario planning. Appointed 21 February 2005. BSc (Hons1), PhD


    Message from the Managing Director
    Year of progress
    2005–06 has been a year of setting and implementing strategic change, hard work and success for the Rural Industries Research and Development Corporation in the service of our Industry and Government stakeholders. I would like to commend RIRDC staff for their efforts and achievements. RIRDC is a small organisation that succeeds because our people are focussed on our objectives and always willing to ‘go the extra mile.’

    In a nutshell, RIRDC has delivered significant innovation and productivity growth for our industries, by implementing its Annual Operational Plan, completing major strategic and structural change, while enhancing our relationships and value to key stakeholders. In response this year the rice and honey industries have increased their R&D levies and the fodder and horse industries have substantially raised their voluntary contributions to RIRDC’s research and development – all clear messages about the value they place on their partnership with the Corporation.

    Significant issues
    RIRDC responded pro-actively and professionally to many significant issues emerging during the year such as:

    Strengthening partnerships
    RIRDC has implemented new arrangements to strengthen its alignment and connection with our industries and our research providers. In 2005–06 we met with the Chairs of our Advisory Committees to develop new principles for adoption and to exchange views about industry drivers and issues and share developments within the Corporation. In August 2006 we held an inaugural workshop with our key research providers to strengthen these crucial relationships.

    Valuing knowledge
    RIRDC is in the knowledge business. Our investments create new knowledge which is the basis of innovation and productivity growth and sustainability in rural industries and communities. The Corporation has well-established practices and procedures in place to create, identify, manage and use the intellectual property that its investments generate, as well as to communicate these findings and to promote adoption and commercialisation as appropriate. In the coming year we will bring a new lens to these activities as we seek to maximise the outcomes from the knowledge that RIRDC’s investments create. We will bring together all of our knowledge management activities into a comprehensive approach that begins at the investment concept and flows through to maximise delivery of benefits to our clients and stakeholders.

    The year ahead
    Looking to the year ahead, the Corporation will be developing a new five-year Corporate Plan for implementation in July 2007. We will also be implementing a new investment framework, characterised by funded five-year plans and a portfolio focus. In conjunction with the Rural Research and Development Council of Chairs we will also be giving emphasis to the development of effective research management metrics and the capacity to better demonstrate our overall impact.

    The RIRDC team
    People are the fundamental asset of the Corporation, whether they are our staff, the members of our Advisory Committees, our Research Providers or the users of RIRDC’s innovations. In the coming year, we will be focussing on leadership development and retention within the Corporation, and on broadly reviewing our leadership and human capacity programs across the Corporation.

    Strategic planning for the future
    RIRDC has identified a number of strategic issues for 2007–08 which will influence new directions for our future business. These include the need for increased human capacity for industry and research communities; the importance of spatially-organised clients in regional Australia; the growing importance of peri-urban and lifestyle farming; the need for rural R&D to support indigenous communities; and a number of economic, environmental and policy issues affecting the rural sector. These issues are discussed in more detail under ‘Next Steps’ on page 18.

    Peter O’Brien
    Managing Director


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    Last updated: November 2007
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