GRDC Annual Report Meeting stakeholder needs through cooperative innovation

Transcription

1 GRDC Annual Report Meeting stakeholder needs through cooperative innovation

2 The GRDC The Grains Research and Development Corporation is a statutory 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 and management of investment in grains R&D. GRDC Vision Driving innovation for a profitable and environmentally sustainable Australian grains industry. GRDC Values Commitment and action in meeting the needs of our stakeholders and exceeding their expectations Winning as a team Achievement of superior results Creativity and innovation Openness and trust in dealing with people A performance-driven culture Ethical behaviour in all our activities GRDC Mission To invest in innovation for the greatest benefit to its stakeholders. This will be achieved by being a global leader in linking science, technology and commercialisation with industry and community needs. i

3 Highlights of Successes The GRDC in collaboration with its research partners successfully implemented a drought response strategy in to minimise the impact of the drought on R&D investments. Other successes for included the: formation of the National Wheat Breeders Alliance formation of the Australian Winter Cereals Pre-Breeding Alliance launch of Pulse Breeding Australia first year of operation of Barley Breeding Australia agreement between the GRDC, CSIRO and Groupe Limagrain to form the joint venture Arista Cereal Technologies Pty Ltd, to deliver high-amylose wheat continued improvement of the alignment between GRDC activities and the objectives of our key customer groups Australian grain growers and the Australian Government and other stakeholders acquisition of the genome sequence of the blackleg fungus, enabling prediction of the longevity and effectiveness of particular blackleg resistance sources in canola identification of the genes which produce beta-glucans, a form of dietary fibre, in barley establishment of a free-air carbon experiment to evaluate the impact of elevated carbon dioxide on cereal crop performance development and extension of approaches to better integrate livestock into cropping systems, through the Grain and Graze program development and extension of effective integrated management approaches for pests such as the etiella moth in lentils and mirid populations in soybeans launch of Australia s first variety of canola-quality juncea, Dune A. Figure 1 Total grain production and cropping area, to Figure 2 Area sown to grains by crop type, to Area sown (M ha) est Grain Production (MT) Area sown (M ha) est Wheat Coarse grains Pulses Oilseeds Source: Australian Bureau of Agricultural and Resource Economics (ABARE) Australian Crop Report, 19 June 2007 and ABARE Australian Commodities Report, June Quarter Source: Australian Bureau of Agricultural and Resource Economics (ABARE) Australian Crop Report, 19 June 2007 and ABARE Australian Commodities Report, June Quarter 2007 ii

4 Highlights of Challenges The GRDC works in an ever-changing business environment in the grains industry. Factors that particularly affected the industry in included significant changes in global grain markets, and the severity of drought in Australia, which had a major impact on grains production and on the GRDC s levy-based income. To meet these challenges, the GRDC focused on maintaining its existing R&D infrastructure as far as possible and minimising disruption to ongoing projects, while reducing the corporation s operating costs. This included working with R&D partners to identify activities that could be deferred or cancelled and potential savings in existing projects. At the same time, the GRDC continued to work with industry and R&D partners to meet the ongoing challenge of achieving a profitable and environmentally sustainable Australian grains industry by: formulating a nationally coordinated approach to grains R&D, to reduce fragmentation and duplication and to ensure maximum leverage for R&D expenditure developing an industry-wide agreement on the evaluation and development of genetic modification technology as it applies to the Australian grains industry supporting the development of superior varieties and best farming practices, to ensure grain growers remain competitive and profitable and receive maximum value encouraging cross-industry cooperation on common issues and challenges developing improved information delivery channels. Figure 3 GRDC total income in Figure 4 Grain grower levy by crop type in Grain grower levy $50.9m (52.2%) Australian Government $35.8m (36.7%) Interest, royalty and other $10.8m (11.1%) Wheat $27.6m (54.3%) Coarse grains $15.1m (29.7%) Pulses $4.6m (9.0%) Oilseeds $3.5m (6.9%) Source: GRDC Financial Statements Source: GRDC Financial Statements iii

5 Highlights of Five years at a glance GRDC Revenue $97.4m $115.1m $110.0m $122.3m $116.2m Expenditure $115.6m $126.7m $119.5m $124.0m $112.0m Operating surplus/(deficit) ($18.5m) ($11.6m) ($9.5m) ($1.7m) $4.2m Total assets $106.0m $127.7m $135.7m $141.0m $151.7m Total equity $65.3m $82.4m $94.0m $102.5m $104.2m Industry contributions $50.9m $60.9m $64.2m $68.8m $65.0m Commonwealth contributions $35.8m $43.1m $35.7m $42.3m $39.0m R&D expenses $103.0m $115.3m $106.4m $112.5m $101.3m Employee benefits $5.6m $5.2m $4.9m $4.6m $3.8m Suppliers $5.1m $5.6m $5.8m $6.4m $6.0m Number of full-time GRDC staff a Grains industry Estimated number of grain farms b 36,417 37,122 37,841 38,574 38,802 Number of grain crops covered by R&D levies Estimated gross value of production $7,154m $8,613m $7,000m $9,800m $4,746m Total grain production summer and winter crops 17,011,000 t 43,794,000 t 37,288,000 t 45,966,000 t 19,248,000 t a Number of full-time GRDC staff as at 30 June each year b ABARE estimates for the total number of broadacre farms planting more than 30 hectares per annum for grain production. Figure 5 GRDC total expenditure in Figure 6 GRDC R&D investments in Research and development $103.0m (89.1%) Employee benefits $5.6m (4.9%) Suppliers and other $7.0m (6.0%) Varieties $49.8m (48.3%) Practices $37.7m (36.6%) New Products $8.7m (8.4%) Communication and Customer Services $5.3m (5.1%) Other $1.6m (1.5%) Source: GRDC Financial Statements Source: GRDC Financial Statements

6 Letter of Transmittal 30 September 2007 The Hon. Sussan Ley, MP Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry Parliament House CANBERRA ACT 2600 cc The Hon. Peter McGauran, MP Minister for Agriculture, Fisheries and Forestry Dear Parliamentary Secretary I have pleasure in presenting the annual report of the Grains Research and Development Corporation (GRDC) for the year ended 30 June 2007, in accordance with section 9 of the Commonwealth Authorities and Companies Act 1997 (CAC Act) and section 28 of the Primary Industries and Energy Research and Development Act 1989 (PIERD Act). The GRDC is confident that its performance in contributed to the industry s and the government s vision for a profitable, internationally competitive and ecologically sustainable Australian grains industry. This vision is consistent with the GRDC s responsibility to plan and report against the: objects of the PIERD Act planned outcomes of Driving Innovation, the corporation s Five Year Research and Development Plan outcomes and outputs described in the annual operational plan and portfolio budget statements for This annual report complies with the planning and reporting requirements prescribed by the CAC Act. GRDC directors are responsible for producing an annual report in accordance with the rules laid down in Schedule 1 of the Act, including a Report of Operations as defined in the Minister for Finance and Administration s Commonwealth Authorities and Companies (Report of Operations) Orders The attached Report of Operations was made in accordance with a resolution of the corporation s directors on 18 September 2007 and, in my opinion, presents fairly the information required by the Minister s orders. Yours sincerely TERRY J ENRIGHT Chair Level 1, Tourism House, 40 Blackall Street, Barton ACT 2600 PO Box 5367, Kingston ACT 2604 Telephone: (02) Facsimile: (02) grdc@grdc.com.au 2

7 Table of Contents Part 1 Overview 5 About the GRDC 6 Planning and reporting approach 10 Report from the Chair and Managing Director 14 Key achievements 16 Significant events 18 Part 2 Our Outputs 19 Corporate performance 20 Collaboration 23 Research priorities 25 Output Group 1 Varieties 31 Output Group 2 Practices 41 Output Group 3 New Products 51 Output Group 4 Communication and Customer Services 59 Enabling Functions 68 Commercialisation 70 Environmental objectives 75 Single Vision Grains Australia 78 Part 3 Our Organisation 79 Accountability 80 Corporate governance 84 Board 86 Advisory panels and program teams 91 Our people 93 3

8 Table of Contents Financial Statements 97 Independent audit report 98 Statement by directors 100 Income statement 101 Balance sheet 102 Statement of changes in equity 103 Statement of cash flows 104 Schedule of commitments 105 Notes to and forming part of the financial statements 107 Appendices 127 Appendix 1 Australian Government research priorities 128 Appendix 2 Expenditure on government research priorities 129 Appendix 3 GRDC project list 132 Appendix 4 Joint R&D project list 152 Appendix 5 Publications and products 154 References 155 Glossary 156 Compliance index 158 Alphabetical index 160 Sugarcane grower Peter Russo and Isis Target 100 agronomist Judy Plath stand among Peter s latest peanut plantings. Photo: Rebecca Thyer 4

9 PART 1 Overview About the GRDC 6 Planning and reporting approach 10 Report from the Chair and 14 Managing Director Key achievements 16 Significant events 18 5

10 About the GRDC The Grains Research and Development Corporation (GRDC) was founded in 1990 under the Primary Industries and Energy Research and Development Act 1989 (PIERD Act). The corporation has two key customer groups: Australian grain growers and the Australian Government. Its role is to invest in R&D and related activities to benefit grain growers, other grains industry participants and the wider community. In doing so, the GRDC invests in research where obstacles to industry s progress exist and where R&D may be effective in overcoming such obstacles. This includes: investigating and evaluating the requirements for R&D in the grains industry coordinating or funding R&D activities facilitating the dissemination, adoption and commercialisation of the results of R&D. The GRDC determines its priorities in consultation with industry, government and research partners, and acts in partnership with public and private researchers, other R&D funding organisations, agribusiness and grower groups. The GRDC is funded jointly by a levy collected from grain growers based on the value of grain they produce, and contributions from the Australian Government. The industry levy is collected on 25 crops, spanning temperate and tropical cereals, oilseeds and pulses. 1 The GRDC s organisational structure and objectives recognise the complexities of the grains industry and its investment needs. Planning, delivering and communicating R&D outputs occurs in an environment that embraces governments, industry groups, research partners, other R&D investors and those operating in the industry itself particularly Australian grain growers. Organisational outcome In a dynamic environment, the GRDC addresses R&D priorities to meet national, regional, commodity and multicommodity challenges, in order to achieve the following overall outcome: Through its commitment to innovation, an Australian grains industry that is profitable and environmentally sustainable for the benefit of the industry and wider community. The outcome reflects the corporate vision in Driving Innovation: the GRDC Five Year Research and Development Plan , and is consistent with the Department of Agriculture, Fisheries and Forestry s portfolio goal of achieving more sustainable, competitive and profitable Australian agricultural, fisheries, food and forestry industries. GRDC ANNUAL REPORT 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. The levy for all crops is 0.99 percent of the net farm gate value of grain produced, except for maize, which is levied at percent of net farm gate value. 6

11 Structure The organisational structure of the GRDC is shown in Figure 7. Figure 7 GRDC structure, GRDC BOARD GRDC National Panel Panel Chair Panel Chair Panel Chair Executive Management Team Lines of Business Enabling Functions Varieties Practices New Products Communication & Customer Services Corporate Services Corporate Strategy & Program Support GRDC Program Teams Northern Regional Panel Southern Regional Panel Western Regional Panel Note: For the purposes of reporting against the GRDC Annual Operational Plan and the Australian Government Department of Agriculture, Fisheries and Forestry Portfolio Budget Statements , each of the four lines of business represents an output group. Western Victoria grower Lawrence Richmond (left) with Syrian-based researcher Dr Ken Street, during his recent visit to Australia. Photo: Brad Collis ABOUT THE GRDC 7

12 The GRDC Executive Management Team. L R: Back Vic Dobos (Communication and Customer Services), Vince Logan (New Products), Peter Reading (Managing Director), Greg Fraser (Practices). Front Gavin Whiteley (Corporate Services), John Harvey (Varieties), Iftikhar Mostafa (Corporate Strategy and Program Support). GRDC ANNUAL REPORT Board and Executive Management Team As described in more detail in Part 3, a board of directors governs the GRDC, while a team of executive managers based in Canberra leads the corporation s business activities. National Panel The National Panel includes the chairs of the GRDC s three regional panels, the GRDC s Managing Director and the GRDC s executive managers. It is the key body for developing and recommending to the Board the GRDC s overall corporate strategies and direction, and assists the Board in maintaining links with its two key customer groups Australian grain growers and the Australian Government as well as research partners. The National Panel also develops and recommends investment proposals for the national elements of the GRDC s research programs. In doing so, the National Panel considers advice from the four program teams that manage the GRDC s R&D investment portfolio. The program teams are discussed in more detail in Part 3. Regional panels Recognising variations in local conditions, the GRDC has three separate advisory panels to cover the northern, southern and western grain-growing regions of Australia. Figure 8 illustrates the geographical spread and characteristics of each region. Part 3 provides details on the membership of the regional panels. The three regional panels develop regional investment priorities and make recommendations on the allocation of investment budgets to meet regional needs. This is also achieved through their representation on program teams that advance recommendations on investments to the Board through the National Panel. Regional panels also identify investments that may respond to national priorities. An additional core function of the regional panels is to provide an interface with grain growers and researchers, to promote awareness of GRDC investments and research outcomes and the corporation s strategic direction. 8

13 Figure 8 GRDC regions Northern Region Southern Region Western Region Northern Region characteristics include: tropical and subtropical climate high inherent soil fertility yield dependency upon conservation of soil moisture from subtropical rainfall substantial enterprise size diversity in crop choice need for better-adapted pulses premium high-protein wheats for export and domestic markets high-potential yields competition with cotton Southern Region characteristics include: temperate climate relatively low soil fertility yield dependency upon reliable spring rainfall smaller enterprise size diverse production patterns and opportunities large and diverse domestic markets phase farming innovation increases in intensive livestock production and demand for feed grains Western Region characteristics include: Mediterranean climate low soil fertility yield dependency upon good winter rains as spring rainfall is generally unreliable large enterprise size narrower range of crop options dominant export market, smaller domestic market leading grain storage practice ease of transport access to South-East Asia ABOUT THE GRDC 9

14 Planning and reporting approach GRDC ANNUAL REPORT The GRDC is a statutory corporation, operating as a research investment body on behalf of Australian grain growers and the Australian Government. As well as its responsibilities under the PIERD Act, the corporation has accountability and reporting obligations set out in the Commonwealth Authorities and Companies Act 1997 (CAC Act) and in the Commonwealth Authorities and Companies (Report of Operations) Orders The GRDC is a portfolio agency of the Australian Government Department of Agriculture, Fisheries and Forestry. In line with its enabling legislation, the GRDC Board communicates its strategic directions and performance objectives through a five-year strategic plan that delivers: a statement of the GRDC s objectives and priorities an outline of the GRDC s strategies to achieve those objectives and priorities. GRDC Western Panel member Ruth Young. Cumnock NSW grower Andrew McCalman. Photo: Rebecca Thyer The strategic document current in , Driving Innovation: the GRDC Five Year Research and Development Plan , was approved by the Minister on 16 May In the GRDC completed the development of the new strategic R&D plan, Prosperity through Innovation, for the period The new plan was submitted to the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry on 19 June 2007 and took effect from 1 July Each year s planned activities are outlined in operational terms in an annual operational plan, and in terms of an outcome-based performance measurement framework in the portfolio budget statements. Both documents are subject to approval by the Minister for Agriculture, Fisheries and Forestry. The GRDC s annual report details the corporation s achievements against its planned outcomes. The output groups used for reporting purposes correspond to the lines of business that underpin the GRDC s business strategy and operations. In both its five-year strategy and its annual planning, the GRDC responds to the ministerial priorities for rural R&D corporations and the Australian Government s National Research Priorities. 10

15 These priorities, and the GRDC s achievements in meeting them so far, are discussed in more detail in Part 2. The corporation uses the Australian National Audit Office Public Sector Governance Better Practice Guide to assess the corporation s overall approach and ongoing development. The GRDC s corporate governance in is discussed in detail in Part 3. On 1 March 2007, the GRDC received its first public Statement of Expectations (SOE) provided by the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry. The SOE outlined the Parliamentary Secretary s expectations of the GRDC in five key areas: roles, government policies, performance reporting, communication and accountability. The GRDC responded with a Statement of Intent on 30 March 2007, and has been working to meet the Minister s expectations, as demonstrated in this annual report. The statements are discussed in more detail in Part 3. The GRDC s drivers for action, outcomes to be achieved, detailed outputs and future directions are summarised in the performance framework shown in Figure 9. PLANNING AND REPORTING APPROACH 11

16 Figure 9 Performance framework Drivers Australian Government s National Research Priorities + Rural R&D priorities + Ministerial directions Page Driving Innovation: The GRDC Five Year Research and Development Plan FOUR OUTPUT GROUPS, EACH WITH SPECIFIC INVESTMENT OBJECTIVES Objectives OUTPUT GROUP 1: VARIETIES Provide growers with access to new superior varieties by actively developing worldleading, cost-efficient breeding programs in Australia. Accelerate the rate of gain in key genetic traits of importance to the Australian grains industry by focusing germplasm enhancement research on traits of significance, reducing duplication and fragmentation, building international alliances and accelerating the speed to market. Explore potential delivery channels for genetically modified (GM) crops in Australia. Accelerate grower adoption of superior varieties, including through promoting results from the National Variety Trials program (NVT). Page 31 OUTPUT GROUP 2: PRACTICES Develop and validate better farming practices and have them adopted faster. Develop sustainable farming systems, adapted to each of the industry s agroecological regions, that are responsive to grower, community and catchment needs. Develop and deliver cost-effective, robust and environmentally responsible solutions to current and potential crop protection threats and thus minimise their cost to industry. Page 41 Performance indicators Wheat-breeding programs achieve key milestones for Barley Breeding Australia, the newly established national barley-breeding program, achieves key milestones during its first year of operation. The newly established National Pulse Breeding Program (now known as Pulse Breeding Australia) achieves key milestones for field pea, chickpea, faba bean and lentil breeding. New alliances, in addition to the International Maize and Wheat Improvement Center (CIMMYT), are established to introduce and evaluate potentially valuable international germplasm. Major research programs the Australian Centre for Plant Functional Genomics, the Value Added Wheat Cooperative Research Centre, the Molecular Plant Breeding Cooperative Research Centre and the Australian Winter Cereals Molecular Marker Program achieve key milestones for NVT achieves key milestones and implements planned enhancements on time. Useful results from the continuation of a stratified survey to measure current on-farm practices such as the use of gypsum and lime for soil amelioration; controlled traffic; precision agriculture; variable rate technology; nutrient budgeting; the application of risk management tools; the monitoring of water use and deep drainage; and the sowing of perennial pasture species. Enhanced management options for cereal foliar and root diseases across agroecological zones. Enhanced farmer capacity to deal with weed, disease and pest constraints on profitable grain production. Increased farmer adoption of weed management practices that delay the development of herbicide resistance. Identification of new avenues of pest control through the genetic manipulation of the pathogen, weed or invertebrate pest, or its host plant. GRDC ANNUAL REPORT Outputs New, improved varieties of wheat, barley, canola, pulse crops and summer crops released to the Australian grains industry. New advanced germplasm, with associated molecular markers, developed and used by relevant Australian breeding programs. New genes with potential importance to the Australian grains industry discovered and made available for proof-of-concept testing and further development. New breeding technologies developed and made available to researchers and crop breeders. A report published, analysing the delivery channels for GM crops in Australia. Crop variety yield and performance data made available to Australian grain growers through the NVT. New technology and practices to overcome soil constraints, harness the benefits of soil biota, and extend cropping rotation options. Integrated farm management practices that enable diverse farming businesses responsive to product prices; protect crops from disease and weed invasion; assist in overcoming subsoil constraints; improve opportunities for nutrient inputs, particularly nitrogen fixation; and allow for weather and climate variability. Natural resource management practices integrated into viable farming systems that lead to efficient water use and reduced drainage below the root zone; provide for efficient nutrient uptake; improve catchment management of salinity and water quality; and develop new learning methods. Improved management of weeds, diseases and pests through a better understanding of their biological interactions with crop plants. Increased diversity of crop protection strategies through understanding and use of the genetics of pest or host. Improved risk management through rapid identification of and response to threats. Weed, disease and pest management options that conform to economic, environmental and social demands. Outcome > Future >

17 Industry priorities Pages Role of the GRDC described in the objects of the Primary Industries and Energy Research and Development Act 1989 Page 80 Portfolio Budget Statements Annual Operational Plan OUTPUT GROUP 3: NEW PRODUCTS Deliver new, value-added grain products and new farm products and services to growers. Identify and implement partnerships necessary to develop and deliver these products and services. Identify opportunities to help new technology reach the Australian grains industry sooner. Access intellectual property from Australia and overseas to apply in the Australian marketplace. Page 51 OUTPUT GROUP 4: COMMUNICATION AND CUSTOMER SERVICES Increase the adoption of research outcomes and innovations that improve the economic, social and environmental performance of the grains industry, through the development and targeted delivery of imaginative products and services. Communicate and promote the GRDC s achievements to stakeholders. Turn research outputs into relevant information, products and services that are delivered to meet stakeholder needs. Support the capacity building of growers, advisers and researchers, through professional development. Support studies related to agriculture and science in secondary schools, in order to encourage students to consider them as possible career paths. Page 59 A new incorporated joint venture for soil inoculants established, with field trials undertaken and first product(s) released. Objective grain quality testing technology developed to the stage at which a commercial partner can take it forward to develop instrumentation. Development of a research, development and commercialisation plan for near-infrared (NIR) and mid-infrared (MIR) technologies to measure soil, plant and grain qualities. Establishment of a governing body to develop and implement a post-harvest grain hygiene strategy. Completion of three or more case studies with different end-users to demonstrate and promote a rational basis for trading feed grains. Establishment of a new incorporated joint venture for high-amylose wheat, to deliver a non-gm breeding line with an amylose content in the order of 70 percent. Crop selection and identification of delivery channels for GM crops completed (with the Varieties output group) for the outputs of the Crop Biofactories Initiative. Identification of research opportunities for new technologies to produce biofuels from Australian grain crops. Customer segmentation categories identified and strategies implemented to deliver tailored information. Organisational performance surveys carried out to measure the relevance of information, products and services delivered by the GRDC. Increased participation by growers, advisers and researchers in the GRDC s capacity-building program. A range of educational packages available for teachers and secondary school students. An incorporated joint venture to introduce, test, distribute and market new soil inoculant technologies sourced from both Australian and international research programs. Extension of objective grain quality testing technology developed for wheat and barley to the stage at which it can be transferred to a commercial partner to enable the development of instrumentation capable of being used by grain majors. Development of NIR and MIR technologies to enable the development of on-farm instrumentation packages to measure soil, plant and grain qualities. Assistance for industry and researchers in order to form a governing body that will develop and implement a post-harvest grain hygiene strategy covering a range of issues requiring further R&D effort prior to commercialisation. Case studies supporting the technology transfer and commercial evaluation of new measures of feed grain quality to demonstrate and promote the benefits of the Premium Grains for Livestock Program (PGLP). Investment in new grain food products that have the potential to improve many aspects of human health, for example by reducing cardiovascular disease, colorectal cancer, diabetes and obesity. Continued development of new industrial uses for grain crops and commercial partnerships through the Crop Biofactories Initiative with CSIRO, as well as identification of possible investment opportunities in new technologies in the biofuels area. A segmented customer database with enhanced functionality to deliver relevant information to identified stakeholder groups. This includes the capacity to meet current information needs as well as respond to emerging issues in a timely way. Improved exchange of relevant research information among our government, industry and research partner stakeholders. Mechanisms put in place to build the capacity of growers, advisers and researchers. Faster adoption of research outcomes and innovations through delivery of information, products and services. Raised profile of agricultural science among secondary school teachers and students. Through its commitment to innovation, an Australian grains industry that is profitable and environmentally sustainable for the benefit of the industry and wider community The GRDC be recognised as the leader in setting, coordinating and facilitating a national grains R&D agenda driven by market signals that will enable graingrowers to compete on world markets, and deliver against Australian Government priorities PLANNING AND REPORTING APPROACH 13

18 Report from the Chair and Managing Director In , Australia experienced one of the worst periods of drought in the country s recorded history. Drought conditions severely affected production of winter and summer crops. Grain growers also faced significant challenges in addition to the impact of the drought, such as higher energy costs, changing farm demographics and uncertainty in wheat export marketing arrangements. The benefits of GRDC-supported grains R&D made a critical difference to many growers circumstances. For example, crops that were grown under no-till regimes featuring stubble retention, which research has shown to preserve soil moisture levels, developed while many conventionally grown crops wilted. Robust crop varieties and the continuing refinement of agronomy and farming practices strengthened our capacity to withstand the challenging season of Grains industry production in The production of winter grains and oilseeds in was 15.7 million tonnes, a decrease of 25.5 million tonnes or 62 percent from the 41.2 million tonnes produced in The June 2007 Australian Crop Report from the Australian Bureau of Agricultural and Resource Economics reported that winter crop production in the two major crop-growing states was 7.5 million tonnes in Western Australia and 3.1 million tonnes in New South Wales, which together accounted for 67.5 percent of total winter crop production in Australia. Summer crop production in was 1.3 million tonnes, showing a decrease of 49 percent compared with 2.6 million tonnes produced the previous year. For the major summer broadacre crop of sorghum, production fell by 52 percent, to 952,000 tonnes, compared to 2.0 million tonnes the previous year. The GRDC s drought strategy in The GRDC, in collaboration with its research partners, implemented a number of actions to maintain an effective grains R&D program despite the effects of drought in In particular: the GRDC Board gave approval for the GRDC to lower its reserves target, from between 50 percent and 75 percent to between 40 percent and 70 percent of next year s expenditure the GRDC s budgeted operating costs were reduced the GRDC worked closely with its research partners to identify projects which could be deferred or cancelled, and cases where savings could be made from existing projects. GRDC ANNUAL REPORT Terry J Enright Chair Peter F Reading Managing Director These actions reflect a determined approach to the management of the GRDC s reserves and an in-depth analysis of operating costs. 2 This total updates the figure of 40.5 million tonnes shown in last year s annual report, which was based on the best estimate available at the time of publication. 14

19 The GRDC s achievements in The GRDC s achievements in were instrumental in implementing the strategies of Driving Innovation: the GRDC Five Year Research and Development Plan and The Way Forward, the strategic business plan. The GRDC facilitated the formation of the National Wheat Breeders Alliance which is establishing R&D priorities for pre-breeding in Australia. In its first year of operations, Barley Breeding Australia commenced implementing a national plan for breeding improved varieties to benefit the barley industry. The GRDC coordinated a national approach to reach agreement in developing the Australian Winter Cereals Pre-Breeding Alliance, involving representatives of Australian Government and state government departments, breeding entities and major research organisations such as the Australian Centre for Plant Functional Genomics, the Value Added Wheat Cooperative Research Centre (CRC), the Molecular Plant Breeding CRC and CSIRO. The purpose of this inclusive alliance is to generate a greater level of communication, coordination and collaboration between research partners involved in pre-breeding. Pulse Breeding Australia was launched in March 2007 to coordinate Australia s pulse-breeding efforts and create a world-class breeding and germplasm enhancement program to develop new, superior varieties more quickly for Australian growers. Flagship A, a new barley variety with high yields and exceptional export malting quality, from the University of Adelaide s breeding program, was launched in A GRDC-supported lucerne breeding program at the New South Wales Department of Primary Industries (NSWDPI) released Pegasis A a lucerne variety developed exclusively for short-term lucerne rotations and sustainable cropping systems. Pegasis A will be the first lucerne variety to be released through the Australian Lucerne Alliance, a partnership between the NSWDPI, the GRDC and Seedmark. Part 2 of this report provides more details on these achievements, and on the outcomes of many other GRDC initiatives and ongoing projects. The Hon. Sussan Ley, MP, Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, with Terry Enright, GRDC Chair, at Parliament House, Canberra, where Mrs Ley launched Prosperity through Innovation, the GRDC s new five-year strategic R&D plan. Challenges in The GRDC operates in an ever-changing grains industry. Its business environment in the year ahead is expected to be influenced by various factors, including climate change, growers terms of trade, total factor productivity, biosecurity, grain market dynamics and consumer attitudes. The year will be the first year of Prosperity through Innovation, the GRDC Strategic R&D Plan The new strategic R&D plan emphasises collaboration, and clearly defines performance measures and outcomes that will provide growers with the technologies and practices they require to remain competitive in global grain markets. Improved measuring of the impact of R&D on the grains industry and the wider community will be another key focus over the next five years. The GRDC s achievements depend on the effective and timely implementation of the corporation s strategies, which in turn depends on the cooperation of the Board, panel members and staff, and strong relationships with key customer groups and R&D partners. As it implements core strategies and line of business strategies in , the GRDC will continue to build relationships with grain growers, the Australian Government and research partners. We thank them for their significant contributions to grains industry R&D in We are pleased to note that our Annual Report has been recognised for high quality, and commend this year s report to the reader. Terry J Enright Chair Peter F Reading Managing Director REPORT FROM THE CHAIR AND MANAGING DIRECTOR 15

20 Key achievements In , the GRDC in collaboration with its research partners successfully implemented a strategy aimed at minimising the impact of the drought on R&D investments. Also in : Barley Breeding Australia, the national barleybreeding program which rationalised six statebased barley-breeding programs into one national program with three regional nodes, commenced operations. The National Wheat Breeders Alliance was established and is providing direction for R&D priorities for wheat pre-breeding in Australia. Agreement was reached between Australian Government and state government departments, breeding entities and other major research organisations to develop the Australian Winter Cereals Pre-Breeding Alliance. Pulse Breeding Australia (PBA) was launched, and commenced its role of coordinating Australia s pulse-breeding efforts and creating a world-class breeding and germplasm enhancement program. PBA commercialised several new varieties during the year, including two chickpea varieties, two lentil varieties and three peanut varieties. Flagship A, a barley variety resulting from the University of Adelaide s breeding program, was launched. Flagship A has a grain yield 7 percent higher than the current industry standard, and improved disease resistance. It is expected that Flagship A will soon be a leading export malting barley. Dune A, Australia s first variety of canola-quality juncea, was launched, providing growers in lower rainfall areas with a profitable and reliable canola crop. GRDC ANNUAL REPORT Pulse Breeding Australia (PBA) was launched in March The Pulse Breeding Australia board consists of: (back row, left to right) Mike Keller, University of Adelaide; John Harvey, GRDC; Peter Reading, PBA Chairman and GRDC Managing Director; John Sykes, NSW Department of Primary Industries; Gavin Gibson, Pulse Australia; (front row) Peter Gibson, South Australian Research and Development Institute; David Bowran, Department of Agriculture and Food WA; Greg Bender, PBA Coordinator (non board member); and Rex Williams, Queensland Department of Primary Industries and Fisheries. Absent: Phil Haines, Department of Primary Industries VIC. 16

21 Pegasis A, a new lucerne variety bred for short-term lucerne rotations. Trials have shown that it is more persistent than other winter-active varieties. Pegasis A, a new lucerne variety developed exclusively for short-term lucerne rotations and sustainable cropping systems, by the New South Wales Department of Primary Industries, was launched. Researchers in the Cereal Functional Genomics Program identified the genes which produce beta-glucans, a form of dietary fibre, in barley. Beta-glucans help prevent and treat human health conditions such as colorectal cancer, obesity, non insulin dependent diabetes and cardiovascular disease. A free-air carbon experiment to evaluate the impact of elevated carbon dioxide on cereal crop performance was established at Horsham (Victoria), through a partnership between the GRDC and the Australian Greenhouse Office. A blueprint for doubling sorghum production was developed. Approaches to better integrate livestock into cropping systems were developed and extended to growers through the Grain and Graze program. Effective integrated pest management approaches, such as broadacre control of the etiella moth in lentils and mirid populations in soybeans, were developed to reduce grower costs and provide environmental benefits. A diverse range of integrated weed management options were delivered to agronomists and consultants to improve weed control options in conservation farming. The GRDC, CSIRO and Groupe Limagrain signed an agreement to form the joint venture Arista Cereal Technologies Pty Ltd, to deliver high-amylose wheat. The acquisition of the genome sequence of the blackleg fungus through an Australian French collaborative project led to the prediction of the longevity and effectiveness of particular blackleg resistance sources in canola. Continued improvement of the alignment between GRDC activities and the objectives of our key customer groups Australian grain growers and the Australian Government and other stakeholders. The GRDC s Annual Report received a silver award at the Australasian Reporting Awards Fifty-seventh Annual Awards. KEY ACHIEVEMENTS 17

22 Significant events One of the GRDC s reporting requirements under the CAC Act is to notify the responsible Minister of proposed significant events as set out under section 15. The following table lists significant events which the GRDC notified the Minister of during , as well as the dates on which the Minister made announcements or decisions of particular significance to the GRDC. Table 2 Significant events, Gavin Whiteley, Executive Manager Corporate Services, Noelia Freitas, Compliance Officer and Geoff Budd, General Counsel at the Australasian Reporting Awards Fifty-seventh Annual Awards. Date Event 21 June 2006 The Hon. Sussan Ley, MP, Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, wrote to the GRDC Chair to formally approve the GRDC s Annual Operational Plan October 2006 The Parliamentary Secretary wrote to the GRDC Chair to formally approve the GRDC s Annual Report for tabling. The report was tabled in parliament on 2 November January 2007 The GRDC informed the Parliamentary Secretary that it would continue to fund the Australian Centre for Plant Functional Genomics Pty Ltd for five years, from 2008 to The GRDC informed the Parliamentary Secretary that the GRDC, CSIRO and Groupe Limagrain had commenced negotiations to form an unincorporated joint venture to undertake the development and commercialisation of a non genetically modified high-amylose wheat. The GRDC informed the Parliamentary Secretary that the GRDC and the Department of Agriculture and Food, Western Australia (DAFWA), were negotiating to incorporate DAFWA s wheat-breeding program, with DAFWA and the GRDC to own the company. 1 March 2007 The Parliamentary Secretary wrote to the GRDC Chair to formally provide the GRDC with a public Statement of Expectations as required under the Australian Government s implementation of recommendations of the Review of the Corporate Governance of Statutory Authorities and Office Holders (the Uhrig Review). 30 March 2007 The GRDC provided the Parliamentary Secretary with a formal response to the Statement of expectations, in a Statement of Intent detailing how the GRDC will fulfil the Minister s expectations during May 2007 The Hon. Peter McGauran, MP, Minister for Agriculture, Fisheries and Forestry, formally announced revised rural R&D priorities. GRDC ANNUAL REPORT May 2007 The Parliamentary Secretary wrote to the GRDC Chair to formally notify the GRDC of amendments to the Primary Industries and Energy Research and Development Act 1989, in particular the removal of the Government Director position from rural R&D corporation boards. 26 June 2007 The GRDC provided the Parliamentary Secretary with an update on the progress of negotiations to incorporate DAFWA s wheat-breeding program. 7 July 2007 The Parliamentary Secretary wrote to the GRDC Chair to formally approve Prosperity through Innovation, the GRDC Strategic R&D Plan July 2007 The Parliamentary Secretary wrote to the GRDC Chair to formally approve the GRDC Annual Operational Plan

23 PART 2 Our Outputs Corporate performance 20 Collaboration 23 Research priorities 25 Output Group 1 Varieties 31 Output Group 2 Practices 41 Output Group 3 New Products 51 Output Group 4 Communication 59 and Customer Services Enabling functions 68 Commercialisation 70 Environmental objectives 75 Single Vision Grains Australia 78 19

24 Corporate performance The GRDC s overall performance against the corporate objectives set out in Driving Innovation is usually assessed each year on the basis of formal surveys and analyses. The assessment is generally based on the GRDC Organisational Performance Research Survey conducted each year by an independent external consultant, and the annual Australian Grains Industry reports published by the Australian Bureau of Agricultural and Resource Economics. In response to the effects of the drought in , the GRDC, in collaboration with its research partners, implemented a number of actions to maintain an effective grains R&D program. As part of its drought response strategy, the GRDC decided to suspend the GRDC Organisational Performance Research Survey for one year. The survey will take place again in Table 3 provides a summary of corporate performance relating to Table 3 Performance in meeting corporate objectives, Product and service delivery objective: Deliver products and services to growers in support of their business objectives and within the context of the Australian Government s stated priorities Indicator Specific farming practice changes Performance Although the 2006 winter crop produced only about one-third of the tonnage produced in 2005, it has been widely recognised that had a similar season been experienced 30 years ago the impact on the economy and the environment would have been far more dire. Production in 2006 was relatively better for a number of reasons, including the adoption of management practices that: created opportunities for earlier sowing, including the targeted use of improved cereal cultivars to suit various situations the use of selective herbicides enabled better use of limited soil moisture, including increased understanding of plant nutrition demand and water use at different growth stages improved soil and plant analysis to better match fertiliser supply to plant demand. GRDC ANNUAL REPORT Whole-of-portfolio economic analyses Improvement in the performance of the grains industry, measured by ABARE analysis of industry performance across the agroecological zones A prospective economic analysis of the GRDC s investment portfolio was completed at the beginning of the five-year planning period. Results indicated that grains R&D would deliver an overall benefit cost ratio of 6.6:1, based on conservative assumptions. When account is taken of benefits flowing to off-farm businesses, the benefit cost ratio increases to 7.8:1. This equates to a net present value of about $3 billion flowing to the wider community through grains R&D over a fifty year period. The provisional estimate of average farm cash income (total cash receipts minus total cash costs) per farm declined to $33,000 in from $95,100 in This significant reduction in farm cash income is due to the drought. 20

25 Table 3 Performance in meeting corporate objectives, (continued) Relationship management objective: Build, lead and manage relationships to optimise benefits to stakeholders Indicator Assessment of innovation and flexibility in contractual relationship development with partners, strategic alliances and providers Evidence of intellectual property of significant value generated over the life of Driving Innovation Performance During the year the GRDC put in place a number of innovative and flexible relationships, including: a contractual relationship and investments with the International Maize and Wheat Improvement Center (CIMMYT) in Mexico a new working agreement with the International Center for Agricultural Research in the Dry Areas (ICARDA) that will allow easier and wider access to ICARDA germplasm for use in breeding programs to establish new varieties for Australian growers Arista Cereal Technologies Pty Ltd, a joint venture company with CSIRO and Groupe Limagrain, to deliver high-amylose wheat the Australian Winter Cereals Pre-Breeding Alliance, with representatives from state departments, breeding entities and major research partners. Over the duration of Driving Innovation, the GRDC developed significant value from its intellectual property through registration of patents, plant breeder s rights and trade marks. Patents The GRDC and related entities filed several national and international patents. The patent titles included: Cereal genotyping system Use of bifunctional alpha-amylase subtilisin inhibitor promoter to direct expression in the maternal tissue of a plant seed Molecular markers for high molecular weight glutenin subunits Genetic sequences of plant pathogen avirulence genes and uses thereof Antifungal peptides Markers for salinity tolerance in wheat plants and the use thereof in breeding programs Nucleic acid molecules and their use in plant male sterility Anther specific promoters and uses thereof Salt tolerant plants Tissue specific expression Polysaccharide transferase Peptides with antifungal activity Synthesis of fatty acids Insect silks. CORPORATE PERFORMANCE 21

26 Table 3 Performance in meeting corporate objectives, (continued) Relationship management objective: Build, lead and manage relationships to optimise benefits to stakeholders Indicator Evidence of intellectual property of significant value generated over the life of Driving Innovation (continued) Performance Plant breeder s rights More than 100 new commercial plant breeder s rights applications were registered by the GRDC and its research partners. More disease resistant and higher yielding varieties have been developed and have included: EGA Bonnie Rock A (wheat) EGA Eagle Rock A (wheat) Wyalkatchem A (wheat) Yitpi A (wheat) Baudin A (barley) Flagship A (barley) Mandelup A (narrow-leafed lupin) Kaspa A (field pea) Cairo A (faba bean) Moti A (chickpea) Warrior A (canola). Trade marks Trade marks registered by the GRDC to facilitate the creation of value to the grains industry include Grain and Graze, GoGrains, enirgy, and Ute Guide. Compliance objective: Ensure corporate compliance with all statutory and legal requirements Indicator Performance Ongoing endorsement by the Minister In , the Minister endorsed the GRDC Portfolio Budget Statements of statutory corporate planning and , the GRDC Statement of Intent 2007, the GRDC Strategic R&D reporting documents Plan and the GRDC Annual Operational Plan GRDC ANNUAL REPORT

27 Collaboration The GRDC is usually only one of a number of public and/or private organisations investing in the development of new technologies for the grains industry. The GRDC collaborates with other organisations to increase the return on its investment and deliver greater benefits to Australian grain growers than would be possible if the GRDC operated alone. Partnerships enable investors to share financial resources and research capability, as well as other benefits such as market knowledge and access to complementary technologies and intellectual property. They also reduce the risk faced by each organisation. RDC collaborations In , the Chair of the GRDC served for a second year as the head of the Council of Rural R&D Corporation Chairs, which brings together all the chairs of Australian rural R&D corporations and companies (RDCs) to identify and pursue areas of common interest. The GRDC also strengthened its strategic and operational relationships with the other RDCs by sharing corporate expertise in other ways. For example, the GRDC: worked with the other RDCs on developing a common framework for evaluating the impacts of R&D shared the GRDC s Statement of Intent with other RDCs participated in a workshop as part of the development of the new strategic R&D plan for the Cotton RDC participated in meetings of RDC business managers. In September 2006, at Parliament House in Canberra, the RDCs jointly showcased the successes of the Australian story of industry government partnership. Throughout the day, RDC representatives briefed more than 59 ministers, members of parliament, senators and ministerial advisers on the benefits of the RDC model. The GRDC Board members took part in the event and highlighted case studies on topics such as ensuring quality ingredients for fish and livestock Terry Enright, in his capacity as Chair of the Council of Rural R&D Corporation Chairs, with The Hon. Sussan Ley, MP, Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, at a breakfast at Parliament House, Canberra, to launch the booklet The benefits of rural R&D. feed; GoGrains; cooperative ventures to build capacity for innovation in rural industries; and accelerating the adoption of integrated soil management practices in irrigated cotton and grain. During , the Managing Director of the GRDC was appointed as an RDC representative on the RD&E Subcommittee of the Primary Industries Standing Committee. The standing committee seeks opportunities for collaboration between Australian Government and state government departments of primary industries. In , the GRDC was also an investment partner in a number of joint research projects, including: the Managing Climate Variability Program the Grain and Graze Program the Premium Grains for Livestock Program the Joint Centre for Farm Health and Safety Pastures Australia the Pasture Soil Biology Program the Aquaculture Nutrition Subprogram. Further details of these and other collaborative projects, including the research partners involved, are provided in Appendix 4. COLLABORATION 23

28 GRDC ANNUAL REPORT International collaborations Alliances In , the GRDC maintained two very valuable international alliances: a contractual relationship, and investments, with the International Maize and Wheat Improvement Center (CIMMYT) in Mexico this relationship has made significant long-term contributions to the productivity and sustainability of the Australian wheat industry a strategic alliance with ICARDA (the International Centre for Agricultural Research in the Dry Areas) in Syria this year, two new strategic projects were put in place to support the alliance, one on breeding chickpeas for drought tolerance and disease resistance and one on enhancing yield and yield stability in bread wheat. The GRDC continued to support the Global Crop Diversity Trust, providing $475,766 in The objective of the trust is to provide a permanent source of funds to support the long-term conservation of germplasm on which the world depends for food security. Investment The GRDC invests in several companies with overseas collaborators, for the benefit of Australian growers. These include: Philom Bios (Australia) Pty Ltd, a joint venture between the GRDC and Philom Bios Inc. of Canada, to develop and commercialise high-value biological soil inoculants Arista Cereal Technologies Pty Ltd, a joint venture with CSIRO and Groupe Limagrain of France, to develop high-amylose wheat technologies two collaborations through the Export Grains Centre Ltd (EGC), which has the GRDC and the Council of Grain Growers Organisations Ltd as its members HRZ Wheats Pty Ltd, a joint venture between EGC, CSIRO and Crop and Food Research (New Zealand), to develop quality wheats for high-rainfall zones Canola Breeders Western Australia Pty Ltd, a joint venture between EGC, the Council of Grain Grower Organisations Ltd, the University of Western Australia and Norddeutsche Pflanzenzucht Hans-Georg Lembke KG (Germany), to develop canola varieties primarily for Western Australia. Delegations In , the GRDC hosted a number of international delegations, mainly from countries with well-established grains industries. Through such visits, the delegations learn about Australia s industry government collaborative approach to R&D, while the GRDC gathers first-hand information about the industry drivers in other countries. Particularly noteworthy were high-level visits from: a four-person delegation from the Alberta Agriculture Funding Consortium, Canada, in August 2006 a 25-person delegation from the Asociación de Cooperativas Argentinas, Argentina, in November 2006 a three-person delegation from the Singaporean Ministry of Defence, accompanied by Computer Associates managers, in October 2006 a seven-person delegation from the Australian Centre for International Agricultural Research, in March 2007 a three-person delegation from the Iraqi Ministry of Agriculture and Australia-based Coffey International, in March

29 Research priorities Each year the GRDC tailors its investment portfolio, and its annual operational plan, to best address the research priorities of its key customer groups: Australian grain growers and the Australian Government. In , the GRDC s R&D portfolio was linked to: Australian grain growers R&D priorities for , as identified through consultations during the development of Driving Innovation the Australian Government s National Research Priorities, as outlined by the Prime Minister in December 2002 priorities for rural R&D, as announced by the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry in March Revised priorities for rural R&D were announced by the Minister for Agriculture, Fisheries and Forestry in May 2007, as part of Future Harvest: the 2007 Agriculture Statement. The revised priorities are listed in Appendix 1. Table 4 shows the relationships between industry and government research priorities, while Table 5 shows how the GRDC achieved results in relation to these priorities during A breakdown of expenditure allocated to addressing the Australian Government s research priorities during appears in Appendix 2. Lupin breeder in Western Australia. Photo: Evan Collis RESEARCH PRIORITIES 25

30 Table 4 Industry and government research priorities Ministerial priorities for Australian grain growers Australian Government s rural R&D corporations priorities National Research Priorities and companies Industry 1: Sustainability and resource NRP 1: An environmentally RRDP 1: Sustainable natural management: sustainable Australia resource management farming systems and rotations to protect and enhance the soil and water resource base genetic improvement for sustainability Industry 2: New and innovative product NRP 2: Promoting and RRDP 2: Improving development: maintaining good health competitiveness through a identify premium markets to enhance whole-of-industry approach grower returns RRDP 3: Maintaining and ensure flow of market signals improving confidence in the integrity of Australian agricultural, food, fish and forestry products Industry 3: Develop new alliances and links to market RRDP 4: Improved trade and market access Industry 4: Bringing biotechnology to bear NRP 3: Frontier technologies for RRDP 5: Use of frontier on sustainability and consumer benefit building and transforming technologies outcomes, to support profitable farming Australian industries systems and access to premium markets Industry 5: Genetic improvement and regional adaptation of new grain varieties: improved resistance to biotic and abiotic stress quality standards for specific end uses Industry 6: Integrated pest management: NRP 4: Safeguarding Australia RRDP 6: Protecting Australia to minimise total costs of pests, diseases from invasive diseases and pests and weeds to maintain options and control strategies Industry 7: Effective and targeted transfer and adoption of technology and knowledge for Australian growers RRDP 7: Creating an innovative culture Industry 8: Independent variety evaluation GRDC ANNUAL REPORT Charlie Hilton at his Bordertown property. Photo: Melissa Marino 26

31 Table 5 GRDC achievements against stakeholder priorities in Priorities Industry 1: Sustainability and resource management: farming systems and rotations to protect and enhance the soil and water resource base genetic improvement for sustainability NRP 1: An environmentally sustainable Australia RRDP 1: Sustainable natural resource management Relevant GRDC investments In partnership with the Australian Greenhouse Office, the GRDC supported the establishment of a free-air carbon experiment at Horsham (Victoria) to evaluate the impact of elevated carbon dioxide on cereal crop performance. Reports were tabled on the economic impact of subsoil constraints in the Northern Region (Queensland Department of Natural Resources) and the economic benefits of precision agriculture (CSIRO). A workshop held in December 2006 reviewed the outcomes of the GRDCsupported Soil Biology Initiative. In , the GRDC also supported the development of: an implement control system design for improved seed and fertiliser placement accuracy, to be integrated into an autonomous tractor which incorporates the use of GPS systems, tilt sensors and laser rangefinders with an operational safety subsystem an integrated approach to variable rate pesticide application, based on mapping crop biomass using near-infrared crop scanners and direct chemical injection spray application systems. Industry 2: New and innovative The Philom Bios (Australia) Pty Ltd joint venture was established and launched. product development: The joint venture expects to release new products in the second half of identify premium markets to The GRDC, CSIRO and Groupe Limagrain signed an agreement to form the enhance grower returns joint venture Arista Cereal Technologies Pty Ltd, to deliver high-amylose wheat. ensure flow of market signals A supplementary bid to the Cooperative Research Centre for National Plant NRP 2: Promoting and maintaining Biosecurity (CRCNPB) was successful in establishing a governing body to good health develop and implement a post-harvest grain hygiene strategy, through the RRDP 2: Improving competitiveness CRCNPB. through a whole-of-industry approach At the end of , the Objective Grain Quality Testing project had: RRDP 3: Maintaining and improving one technology ready for transfer, pending licence agreement. confidence in the integrity of one technology under negotiation for transfer to a commercial partner. Australian agricultural food, fish and forestry products Industry 3: Develop new alliances and links to market RRDP 4: Improved trade and market access GRDC activities to foster market alliances included: establishing the Philom Bios (Australia) Pty Ltd joint venture and continuing work to form the Arista Cereal Technologies Pty Ltd joint venture establishing a national alliance for pre-breeding of winter cereals the alliance includes all major research organisations in Australia and has begun coordinating research activities for the highest priority traits establishing a strategic alliance with the International Center for Agricultural Research in the Dry Areas (ICARDA) in Syria. This alliance will see the GRDC and ICARDA working on breeding new chickpea varieties with drought tolerance and disease resistance, and enhancing yield and yield stability in bread wheat. RESEARCH PRIORITIES 27

32 Table 5 GRDC achievements against stakeholder priorities in (continued) Priorities Industry 4: Bringing biotechnology to bear on sustainability and consumer benefit outcomes, to support profitable farming systems and access to premium markets NRP 3: Frontier technologies for building and transforming Australian industries RRDP 5: Use of frontier technologies Industry 5: Genetic improvement and regional adaptation of new grain varieties: improved resistance to biotic and abiotic stress quality standards for specific end uses Relevant GRDC investments The GRDC s investments in gene discovery, functional genomics and new technologies continued, through the Australian Centre for Plant Functional Genomics (ACPFG), the Cereal Functional Genomics Program, Grain Protection Genes, and the Australian Winter Cereals Molecular Marker Program. The annual internal review of the Crop Biofactories Initiative s research and commercial direction examined crop selection and identification of delivery channels for GM crops for Crop Biofactories Initiative products, and developed a short list to evaluate further. The GRDC commissioned a study to examine the delivery platform and supply chain infrastructure requirements for GM wheat and barley crops and products. The GRDC participated in Bioenergy Australia, as a means to keep abreast of Australian and international developments in relation to biofuels policy and technology. A report of the GRDC-commissioned study of the possibilities of biomass ethanol was completed. The GRDC engaged CSIRO to map regional areas where biomass ethanol production opportunities may exist. More than 1,500 wheat lines from the International Maize and Wheat Improvement Center (CIMMYT) in Mexico were imported into Australia. These lines potentially contain new sources of tolerance to drought and heat, and resistance to rusts and other biosecurity threats such as karnal bunt. During a visit to CIMMYT, Australian wheat breeders personally selected an additional 1,049 lines for importation. The acquisition of the genome sequence of the blackleg fungus through an Australian French collaborative project led to the prediction of the longevity and effectiveness of particular blackleg resistance sources in canola. The new national pulse-breeding program, Pulse Breeding Australia, commercialised new varieties including: two new chickpea varieties, with better resistance to fungal disease two new lentil varieties, with better resistance to ascochyta blight and botrytis grey mould. Dune A, Australia s first variety of canola-quality juncea, was released, providing growers in lower rainfall areas with a profitable and reliable canola crop. Three new peanut varieties that will give peanut growers increased flexibility in dry climates, higher yields and better resistance to foliar diseases (Ashton A, Sutherland A and Walter A ) were commercialised. A new maize line for the wet tropics, with 13% higher yield, entered the final stages of evaluation in and is expected to be released in GRDC ANNUAL REPORT Duaringa, Queensland, farmer Colin Dunne says the goal is money in the bank, not pretty machinery. Photo: Brad Collis 28

33 Table 5 GRDC achievements against stakeholder priorities in (continued) Priorities Industry 6: Integrated pest management: to minimise total costs of pests, diseases and weeds to maintain options and control strategies NRP 4: Safeguarding Australia RRDP 6: Protecting Australia from invasive diseases and pests Relevant GRDC investments As a result of GRDC supported research: A national surveillance plan was developed for emergency plant pest threats to the grains industry. Intelligence on herbicide resistance and understanding of resistance development mechanisms were improved, to manage the risks of herbicide resistance in the grains industry. A diverse range of integrated weed management options were delivered to agronomists and consultants to improve weed control options in conservation farming. A test to detect wheat streak mosaic virus in bulk seed samples of wheat was successfully developed to identify seed at risk of carrying disease into the next crop. Effective integrated pest management approaches such as broadacre control of the etiella moth in lentils and mirid populations in soybeans were developed to reduce grower costs and provide environmental benefits. Further refinements to rust management practices, including the management of the crop canopy through strategic post-emergence nitrogen applications, were delivered to growers to provide more effective integrated disease management strategies for stripe rust. Industry 7: Effective and targeted At the end of , the Objective Grain Quality Testing project had: transfer and adoption of technology one technology ready for transfer, pending licence agreement. and knowledge for Australian growers one technology under negotiation for transfer to a commercial partner. RRDP 7: Creating an innovative The Philom Bios (Australia) Pty Ltd joint venture was established and launched. culture The joint venture expects to release new products in the second half of The scoping of potential uses and available technologies for on-farm instrumentation was completed in Based on the results, the GRDC began preparing business cases for potential projects. The draft investment plan for contains two projects prepared from this report. Approaches to better integrate livestock into cropping systems through the Grain and Graze program were developed and extended to growers. A blueprint for doubling sorghum production was developed. Findings from localised farming systems research were communicated to growers through research compendiums and results manuals. The key profit drivers in northern cropping systems were identified. The Value Added Wheat Cooperative Research Centre (CRC) delivered genotyping and other services to the wheat-breeding community, and progressed a new triticale variety to the point of plant breeder s rights protection. The ACPFG and the Molecular Plant Breeding CRC continued to develop novel traits for breeders, using world-class science. Both organisations have leveraged significant international investment. All the organisations trained a great number of young plant scientists. The ACPFG alone had more than 30 PhD students in The success of the Australian Winter Cereals Molecular Marker Program was reflected in the routine use of markers in all major wheat and barley-breeding programs. RESEARCH PRIORITIES 29

34 Table 5 GRDC achievements against stakeholder priorities in (continued) Priorities Industry 8: Independent variety evaluation Relevant GRDC investments The National Variety Trials (NVT) program conducted 556 trials at 216 locations across mainland Australia. Although the drought affected many trials, results from 295 trials were made available to growers on For most crops, trial results were made available to growers through one month earlier in 2006 than in 2005 (the actual month varies for each crop). All grain-breeding companies across Australia continued to participate in the NVT program. Milestones for the provision of independent performance data on new varieties were achieved. Ten wheat varieties and ten canola varieties released at the end of 2006 were all evaluated in the NVT program prior to their release, and the performance results were made readily available to growers. The NVT network was expanded to ten locations in Queensland. Three new field pea lines with improved yield, earlier flowering and semidwarfing traits entered the final stage of evaluation in New lupin, mung bean and oat varieties entered final stage evaluation in and are expected to be released in The GRDC provided information on the performance of new varieties under a range of management regimes in the 2006 season to growers in the western and southern regions. Notes: Industry priorities are the eight grains industry priorities identified through consultation. NRP priorities are the Australian Government s four National Research Priorities. RRDP priorities are the seven ministerial priorities for rural R&D corporations and companies. GRDC ANNUAL REPORT

35 Output Group 1: Varieties Objectives Provide growers with access to new superior varieties by actively developing worldleading, cost-efficient breeding programs in Australia. Accelerate the rate of gain in key genetic traits of importance to the Australian grains industry by focusing germplasm enhancement research on traits of significance, reducing duplication and fragmentation, building international alliances and accelerating the speed to market. Explore potential delivery channels for genetically modified (GM) crops in Australia. Accelerate grower adoption of superior varieties, including through promoting results from the National Variety Trials program (NVT). Overview The Varieties output group reaches across the GRDC s 25 leviable crops, spanning winter cereal crops, summer coarse grains, pulses and oilseeds. It supports crop improvement for domestic and export industries based on grain, with the aim of raising the overall value of the Australian grains industry. The output group includes GRDC investments in gene discovery, breeding technologies, functional genomics, germplasm enhancement, genetic transformation, plant breeding, crop variety testing, grain quality research, and plant pathology (where directly related to breeding). The continuing prosperity of the industry depends on the development of new varieties with enhanced yields as well as quality attributes that add value and meet market demands. The latter is being achieved by collaborating with grain marketers and bulk handlers to clarify end-user requirements. Growing superior high-yielding varieties using optimal systems for crop management will lead to increased productivity. The search for new sources of disease resistance to incorporate into crop plants continues, alongside research to improve our understanding of the processes involved in resistance breakdown. Inputs In total, $49.8 million was invested through the Varieties output group in In addition, the Varieties output group attracted significant co-investment from its research partners. The output group also relied on the skills and expertise of the people within partner organisations. Outputs New improved varieties Wheat In , the GRDC and its state government R&D partners worked to reposition public sector wheat-breeding activities to become national programs competing for market share and that are rewarded through End Point Royalties (EPRs). Expressions of interest were sought for a new partner in the joint venture Enterprise Grains Australia (EGA), to commercialise varieties and to increasingly take on the breeding activities for north-eastern Australia. Shareholders in Australian Grain Technologies Pty Ltd (AGT) continued to support this national wheat-breeding operation in AGT and the Western Australian grain grower company Council of Grain Grower Organisations Ltd established the joint venture AGT WA, providing a base for AGT s breeding activities in Western Australia. OUTPUT GROUP 1: VARIETIES 31

36 GRDC ANNUAL REPORT The CSIRO wheat-breeding program continued to address the needs of growers, particularly mixed enterprise farmers in the high-rainfall zone of south-eastern Australia. The varieties produced from this breeding program are dual-purpose Grain and Graze wheats. The National Wheat Breeders Alliance was formed during Importantly, the alliance has established priorities for pre-breeding R&D in Australia which will be an ongoing activity for the alliance. It has also been working with industry including the Australian Seed Federation to address industry concerns regarding EPRs, such as confusion around the implementation of plant breeder s rights EPR collection. The drought had a significant impact on the wheat-breeding programs in For example, AGT sowed its largest field program ever, but a significant number of its trials in southern New South Wales and Victoria had to be abandoned because of lack of moisture. In , three new wheat varieties were released for growers: EGA Burke A, a product from the Queensland Department of Primary Industries and Fisheries (QDPI&F), is a noodle wheat with a yield advantage over comparable varieties in northern New South Wales as well as excellent disease resistance. Binnu A, a product from the Department of Agriculture and Food, Western Australia (DAFWA), is an udon noodle wheat with competitive yields as well as improved quality and disease resistance. Gladius A, a product from AGT, is broadly adapted and has the ability to out-yield currently grown varieties in lower yield potential areas when under drought stress. Growers also accessed new varieties produced by the private sector wheat breeders LongReach Plant Breeders (Catalina A and Guardian A varieties) and Nugrain (Derrimut A variety). The durum-breeding programs currently conducted through AGT at the University of Adelaide and at the New South Wales Department of Primary Industries (NSWDPI) continued to make good progress. Growers gained access to a new durum variety from NSWDPI: Jandaroi A, which offers the advantage of being a quick maturing line. Communications around durum-breeding projects were supported by the durum industry development officer and durum industry grower groups in northern New South Wales and South Australia. Because these projects are approaching the end of their GRDC funding cycles, a situation analysis of the durum-breeding industry was undertaken in to guide future investment decisions. Coarse grains Barley Breeding Australia (BBA) commenced operations on 1 July 2006, and is implementing a national plan for breeding improved varieties to benefit the barley industry. Its key performance indicators require the development, release and adoption of varieties meeting specific market and regional needs, and the assessment of operational performance within the Best Practice in Breeding framework. BBA West, in addition to conducting trials in Western Australia, is now trialling its germplasm in New South Wales, Victoria and Tasmania, on neutral to acid soils. Similarly, BBA South has extended its trial network to cover the neutral to alkaline soils in New South Wales, Victoria and southern Western Australia. Germplasm from the NSWDPI and Victorian breeding programs is being progressed and integrated into the operations of BBA West and BBA South. BBA North is actively changing its primary focus from breeding malt varieties to breeding feed varieties. This change is needed to meet future demand for feed grain in north-eastern Australia. During BBA enhanced linkages between investors in barley breeding and evaluation with groups further along the industry pipeline. For example: priorities for pre-breeding R&D have been established germplasm introduction into Australia is being coordinated growers, industry development officers, agronomists, bulk handlers and marketers are liaising through regional barley advisory committees dialogue with Barley Australia is helping to resolve issues related to variety identification, accreditation and marketing. No new varieties of barley were released in as there were multiple releases in , including six new malting varieties and two new feed varieties. 32

37 Pulses CHICKPEAS In , NSWDPI, in partnership with the GRDC, released two new chickpea varieties that will be a major boost for the industry, Flipper A and Yorker A. The varieties improved resistance to the fungal disease ascochyta blight will enable growers to substantially reduce, or in some situations eliminate, the use of foliar fungicides to protect their crops from this lethal disease. Flipper A is a tall, medium-seeded variety suited to the higher rainfall areas of New South Wales. Yorker A has medium to large seeds and is ideally suited to the whole-seed export market. As well as useful resistance to ascochyta, it has increased resistance to phytophthora root rot, the Northern Region s other major disease. PEANUTS The GRDC-supported breeding program released three new peanut varieties in : Ashton A is an excellent option for dryland growers, and has quality attributes with potential to increase profitability and value-adding for the peanut industry. Sutherland A has outstanding resistance to peanut foliar diseases (leaf spot and leaf rust), which will allow stabilisation of peanut yields in environments where foliar disease control has been difficult, such as in the rapidly expanding coastal production systems. It will also greatly reduce fungicide use, leading to huge environmental benefits. Walter A is an ultra-early (110-day) maturing variety that will deliver a modest yield of marketable peanuts in even the harshest seasons. Walter A will provide dryland peanut farmers with an extra option to spread their drought-related risk, and a greater range of possible sowing dates. The industry continues to develop only Hi Oleic lines. Hi Oleic peanuts have a higher ratio of oleic fatty acid than regular peanuts. This has health benefits for consumers as well as commercial benefits including flavour stability and longer shelf life. LENTILS Two superior lentil varieties have been commercialised. Nipper A (red lentil) and Boomer A (green lentil) have better disease resistance to ascochyta blight and botrytis grey mould than currently grown lentils, and are expected to be available to Australian growers in The two new, superior lentil varieties Nipper A and Boomer A were bred under the leadership of Michael Materne (pictured). Photo: Brad Collis Both varieties underwent extensive agronomic testing in The testing showed that the improved varieties will require less fungicide application to maintain disease control, resulting in large financial and environmental cost savings. Because of exceptionally dry conditions in , further breeding trials will be conducted in 2007 to provide reliable information and validate the performance of the other most advanced breeding lines. These lines will be in the pipeline for commercialisation over the next five years. Canola Australia s first variety of canola-quality juncea, Dune A, was released in to provide grain growers in lower rainfall areas with a profitable and reliable canola variety. It has taken considerable effort and development to transform the mustard Brassica juncea into a canola-quality oilseed. When grown in lower rainfall environments, Dune A has yields similar to those of traditional canola varieties but with a higher oil potential. Dune A also offers improved heat tolerance, strong seedling vigour, quick emergence, rapid canopy closure and shatter tolerance, thereby significantly reducing production costs for growers. OUTPUT GROUP 1: VARIETIES 33

38 GRDC ANNUAL REPORT New advanced germplasm National genetic resources centre In line with the strategy to reduce fragmentation and duplication in pre-breeding, the GRDC has promoted a coordinated approach to the operation of Australian plant genetic resources centres. The GRDC continues to work with the Australian Government and state governments to transition to an Australian National Genetic Resources Centre (ANGRC). An Interim Executive Coordinator, Paul Hattersley, was appointed to the ANGRC in October National alliance The development of advanced germplasm, with associated molecular markers, for use by Australian breeding programs is an area of significant public investment. Much of the work is high risk and expensive, with long lead times before benefits are delivered to growers. It is therefore important that research is focused on the traits that will have the greatest positive impact on the viability and sustainability of the Australian grains industry. During , the GRDC worked with research partners to promote a more coordinated, national approach to cereal germplasm enhancement. Agreement was reached to form the Australian Winter Cereals Pre-Breeding Alliance, involving representatives of state departments and other major research organisations, including the Australian Centre for Plant Functional Genomics (ACPFG), the Value Added Wheat Cooperative Research Centre, the Molecular Plant Breeding Cooperative Research Centre and CSIRO. By generating a greater level of communication, coordination and collaboration between research organisations involved in pre-breeding, the alliance aims to: better utilise resources to address issues of importance to the grains industry enhance the speed of delivery of research outputs to Australian plant breeders bring together research teams and skills to tackle the most challenging and economically significant problems facing the grains industry enhance linkages with the international prebreeding research community. In , in support of these aims the alliance commenced coordinating research activities for the highest priority traits and formalising simplified intellectual property arrangements between participants. International alliances The introduction of new genetic material through access to international germplasm continues to be a very important part of the development of Australian crop varieties. A successful model has been the alliance negotiated with the International Maize and Wheat Improvement Center (CIMMYT) based in Mexico. Through GRDC-sponsored visits to CIMMYT, Australian wheat breeders have selected promising CIMMYT germplasm on site, thereby increasing the relevance of imported germplasm to Australian wheat-breeding programs. These selections are in addition to more than 1,500 lines that are already imported to Australia from CIMMYT. In March 2006, eight wheat breeders (including representatives from AGT, DAFWA, CSIRO, EGA and LongReach Plant Breeders) selected 1,049 lines displaying tolerance to abiotic stresses such as drought, heat and new sources of rust resistance. The lines were imported into Australia and entered quarantine in January They are being multiplied for distribution to Australian breeding programs in early In March 2007, another four Australian wheat breeders visited CIMMYT to inspect and select germplasm for importation. The International Center for Agricultural Research in the Dry Areas (ICARDA) in Syria also has much to offer the Australian grains industry. ICARDA works with agricultural institutions, governments and other organisations in the developing world, as well as with advanced research institutes in industrialised countries. ICARDA s work on durum wheat, bread wheat, barley, chickpeas, lentils and faba beans is of particular interest to the GRDC. In August 2005, a visit to ICARDA by GRDC Chair Terry Enright and Program Manager Richard Brettell identified areas of common interest where a closer relationship between the organisations will result in demonstrable benefits for Australian growers. An alliance to formally define areas of cooperation was signed (by GRDC Chair Terry Enright) in May Two new strategic projects are supporting collaborative work under the alliance: one on breeding chickpeas for drought tolerance and disease resistance, and the other being on enhancing yield and yield stability in bread wheat. 34

39 Front left: Dr Mahmoud Solh, Director General of ICARDA (left), with GRDC Chair Terry Enright (right), and ICARDA colleagues: (back row, left to right) Sanjaya Rajaram, Director, Biodiversity and Integrated Gene Management Program; Raj Paroda, Assistant Director General, International Cooperation; William Erskine, Assistant Director General, Research. Gene discovery and new technologies In , the GRDC continued to make longterm, strategic investments in gene discovery, functional genomics and new technologies to supply Australian breeding programs of the future with useful breeding technologies and novel traits. The Australian Centre for Plant Functional Genomics has made progress in the study of genes that control plant reactions to abiotic stress, including mineral toxicity, drought and salinity. As one of several GRDC-supported organisations that provide opportunities for new plant scientists to develop their specialisations, the centre supported more than 30 PhD students in The Value Added Wheat CRC continued to deliver genotyping and related services to breeders, and progressed the development of a new triticale variety to the point of application for plant breeder s rights protection in In 2006, the Cereal Functional Genomics Program, a prior joint effort between the University of Melbourne and the University of Adelaide that is now part of the ACPFG, identified genes which produce beta-glucans, a form of dietary fibre, in barley. Beta-glucans help prevent and treat conditions such as colorectal cancer, obesity, non insulin dependent diabetes and cardiovascular disease. They are also important in beer making. The research team is now manipulating the amount of beta-glucans to improve the processing and end-use qualities of barley for human and animal consumption. The Grain Protection Genes program, with CSIRO, has discovered novel approaches to fungal and insect pest resistance. During , new patents were filed for technology applications; commercial partnerships are now being sought to bring these technologies to market. The Australian Winter Cereals Molecular Marker Program has enhanced the efficiency of breeding programs by allowing breeders to combine a greater number of desirable traits into a single plant over a shorter period of time. The success of the program is reflected in the fact that Australian wheat-breeding and barley-breeding programs now lead the world in marker-assisted breeding. With GRDC support, Australian researchers have again participated in the international Brassica A genome-sequencing program this year. This program links Australian canola researchers with key research collaborators overseas. It has produced candidate genes and molecular markers for resistance to blackleg disease, which is a major constraint for canola production in Australia. Delivery channels for GM crops in Australia Over the past 18 months industry and government agencies have commissioned several studies investigating issues related to the introduction of GM crops into Australia. These studies, focusing on GM canola, have documented co-existence and identity preservation requirements for grain production and marketing. OUTPUT GROUP 1: VARIETIES 35

40 To complement these reports, the GRDC Varieties and New Products output groups jointly commissioned a study specifically relating to the delivery platform and supply chain requirements for GM wheat and barley crops and products within the Australian grains industry. The report on performance for the New Products output group provides more details of the study. National Variety Trials The GRDC funds the National Variety Trials (NVT) to provide growers and their advisers with independent information on the agronomic performance of new variety releases of winter cereals, canola and selected pulse crops. The drought had a severe impact on many trials, especially across the southern and northern regions. As a result, many trial entries were renominated for the 2007 trial season, putting pressure on limited resources. The 2006 season again offered opportunities to review policy and operational elements of NVT so as to enhance the trial and information system and its service to growers. Planning has commenced for improvements such as the publication of basic variety information about as yet unreleased trial entries and the introduction of routine trial inspections. NVT entered its second year of operation in Trials were conducted at 216 locations across mainland Australia, and the results were published on the NVT website, GRDC ANNUAL REPORT NVT wheat trial at Hamilton, Victoria. Photo: Neale Sutton 36

41 Joint venture accelerates pulses Pulses are an important part of Australian grain production, both as export crops in their own right and as part of crop rotations. Pulse Breeding Australia (PBA) was established to coordinate Australia s pulse-breeding efforts and create a world-class breeding and germplasm enhancement program for four temperate pulse crops field peas, chickpeas, lentils and faba beans that will more quickly develop and release new, superior varieties for Australian growers. PBA is a collaboration between the GRDC, Pulse Australia, the University of Adelaide, the South Australian Research and Development Institute, the Department of Primary Industries (DPI) Victoria, the New South Wales Department of Primary Industries, the Queensland Department of Primary Industries and Fisheries and the Department of Agriculture and Food, Western Australia. PBA was officially launched on 15 March 2007 at the University of Adelaide. CASE STUDY The functions of PBA include: monitoring reliable market signals accessing elite germplasm for breeding efforts facilitating rapid adoption by Australian growers of new varieties that have been developed for and tested in local conditions facilitating greater collaboration and resource sharing in pulse breeding, to improve efficiencies and effectiveness. Coinciding with the establishment of PBA, the seed company PB Seeds was awarded a commercial licence providing first option exclusive rights to lentil varieties developed through PBA until June PB Seeds will enter into a licence agreement with DPI Victoria and will collaborate with PBA to produce, promote and fast-track the adoption of elite lentil varieties to help growers maximise their profitability. OUTPUT GROUP 1: VARIETIES 37

42 CASE STUDY Flagship A sets out for markets overseas A product of the University of Adelaide s world-class barley-breeding program, Flagship A will soon be one of the leading export malting barleys for Australia. The malting quality of Flagship A sets it apart from other Australian barley varieties and has already attracted keen interest from buyers overseas. It is ideally suited to the markets in China and South-East Asia. The distinctive malting quality comes from the application of European and Canadian genetics to a robust Australian feed variety. It has a unique combination of characteristics that allows bulk handlers, marketers and customers to ensure varietal purity through established testing methods. Flagship A is a tall, early- to mid-maturing variety, well adapted for the low- and mediumrainfall areas of southern Australia. It has reasonable straw strength and lodging resistance, is free threshing, and has early vigour and good resistance to head loss. In long-term trials across all major grain production regions of South Australia Flagship A consistently yielded higher than other barley varieties, including Schooner, Sloop, Gairdner A and Baudin A. Across Victorian regions, it yielded higher than Schooner but generally slightly lower than Gairdner A. Andy Barr and Jason Eglinton are all smiles following the launch of Flagship A at the Hart Field Day. Photo: Richard Henderson, Porter Novelli Although it is moderately susceptible to leaf rust and leaf scald, Flagship A has improved resistance to cereal cyst nematode and the spot form of net blotch. It is moderately resistant to the net form of net blotch. GRDC ANNUAL REPORT Strong winds, blown dust and a generally poor season failed to prevent more than 400 growers from attending the much-anticipated official launch of Flagship A at the 2006 Hart Field Day in South Australia s mid-north. Flagship A was launched by University of Adelaide barley breeder Jason Eglinton and GRDC Southern Regional Panel member Andy Barr, in his capacity as a director of ABB Grain Ltd. 38

43 Output Group 1: Varieties Investment priorities Wheat breeding Achievements The GRDC worked with its state government partners to reposition wheat breeding for a future in which national programs compete for market share and are self-sustained by revenue from End Point Royalties. Expressions of interest were sought for a commercial partner for Enterprise Grains Australia (EGA). Both the EGA s and the Department of Agriculture and Food, Western Australia s, wheatbreeding programs continued to meet their breeding targets. Three new varieties from GRDC-supported wheat-breeding programs were made available to growers. The National Wheat Breeders Alliance was formed. Barley breeding Barley Breeding Australia (BBA) formally commenced operations on 1 July In : material from the previous state-based system of independent breeding programs was integrated into the coordinated, national program the three breeding nodes of BBA established new trial networks to ensure growers needs are catered for across barley-growing states cooperation across the industry, from pre-breeding to marketing, was enhanced. Maize breeding Pulse breeding Canola breeding Peanut breeding Other breeding programs Gene discovery and new technologies A new maize line for the wet tropics, with 13% higher yield, entered the final stages of evaluation in and is expected to be released in The new national pulse-breeding program, Pulse Breeding Australia, commercialised new varieties including: two new chickpea varieties, with better resistance to fungal disease two new lentil varieties, with better resistance to ascochyta blight and botrytis grey mould. In addition, three new field pea lines with improved yield, earlier flowering and semidwarfing traits entered the final stage of evaluation. Dune A, Australia s first variety of canola-quality juncea, was released providing growers in lower rainfall areas with a profitable and reliable canola crop. Three new peanut varieties (Ashton A, Sutherland A and Walter A ) which are giving peanut growers increased flexibility in dry climates, higher yields and better resistance to foliar diseases were commercialised. New lupin, mung bean and oat varieties entered final stage evaluation in and are expected to be released in The GRDC s investments in gene discovery, functional genomics and new technologies continued, through the Australian Centre for Plant Functional Genomics, the Cereal Functional Genomics Program, Grain Protection Genes, and the Australian Winter Cereals Molecular Marker Program. Development of enhanced germplasm Faster adoption of better varieties A national alliance was established for pre-breeding of winter cereals. The alliance includes major grains industry research organisations in Australia and has commenced coordinating research activities for the highest priority traits. The National Variety Trials (NVT) program conducted 556 trials at 216 locations across mainland Australia. Though the drought affected many trials, results from 295 trials were made available to growers on OUTPUT GROUP 1: VARIETIES 39

44 Output Group 1: Varieties (continued) Indicators Wheat-breeding programs achieve key milestones for Barley Breeding Australia, the newly established national barley-breeding program, achieves key milestones during its first year of operation The newly established National Pulse Breeding Program (now known as Pulse Breeding Australia) achieves key milestones for field pea, chickpea, faba bean and lentil breeding New alliances, in addition to the International Maize and Wheat Improvement Center (CIMMYT), are established to introduce and evaluate potentially valuable international germplasm Major research programs the Australian Centre for Plant Functional Genomics (ACPFG), the Value Added Wheat Cooperative Research Centre, the Molecular Plant Breeding Cooperative Research Centre and the Australian Winter Cereals Molecular Marker Program achieve key milestones for Performance Germplasm continued to be assessed and selected in according to the specifications of research agreements and annual operating plans, although some results were affected by drought, particularly in southern New South Wales and Victoria. The majority of milestones in the six research contracts making up BBA were successfully achieved despite the effects of severe drought. Where there was non-achievement, it generally occurred because reduced numbers of trials were able to be harvested due to the drought. Milestones in the eight research contracts were successfully achieved despite the effects of severe drought. Progress was made in pyramiding desirable traits that will lead to the release of pulse varieties with improved crop reliability and yield potential. More than 1,500 CIMMYT wheat lines were imported into Australia. These lines potentially contain new sources of tolerance to drought and heat, and resistance to rusts and other biosecurity threats such as karnal bunt. During a visit to CIMMYT, Australian wheat breeders personally selected an additional 1,049 lines for importation. A strategic alliance was established with the International Center for Agricultural Research in the Dry Areas (ICARDA) in Syria. The alliance will see the GRDC and ICARDA working on breeding new chickpea varieties with drought tolerance and disease resistance, and enhancing yield and yield stability in bread wheat. The ACPFG and the Molecular Plant Breeding Cooperative Research Centre (CRC) continued to develop novel traits for breeders, using world-class science. Both organisations have leveraged significant international investment. The Value Added Wheat CRC delivered genotyping and other services to the wheat-breeding community, and progressed a new triticale variety to the point of plant breeder s rights protection. All the organisations trained a great number of young plant scientists. The ACPFG alone had more than 30 PhD students in The success of the Australian Winter Cereals Molecular Marker Program was reflected in the routine use of markers in all major wheat and barley-breeding programs. GRDC ANNUAL REPORT NVT achieves key milestones and implements planned enhancements on time All grain-breeding companies across Australia continued to participate in the NVT program. Milestones for the provision of independent performance data on new varieties were achieved. Ten wheat varieties and ten canola varieties released at the end of 2006 were all evaluated in the NVT program prior to their release, and their performance results were made readily available to growers. The NVT network in Queensland was expanded to ten locations. For most crops, trial results were made available to growers through one month earlier in 2006 than in 2005 (the actual month varies for each crop). While all milestones were met, the need to improve the user-friendliness of the website was identified. The mechanism for bulk export of trial performance data from NVT online was expanded to include receival standard tests. 40

45 Output Group 2: Practices Objectives Develop and validate better farming practices and have them adopted faster. Develop sustainable farming systems, adapted to each of the industry s agroecological regions, that are responsive to grower, community and catchment needs. Develop and deliver cost-effective, robust and environmentally responsible solutions to current and potential crop protection threats and thus minimise their cost to industry. Overview The Practices output group aims to develop optimal farm management practices that, when used to grow superior high-yielding varieties, will lead to increased productivity from sustainable grain production systems. Better farming practices contribute to increased productivity by minimising yield losses caused by a broad and constantly changing spectrum of biotic and abiotic stressors, such as weeds, diseases and invertebrate pests, poor soils, and variations in climate. The scope of the output group s activities includes developing and validating agronomic packages tailored to suit each region, to allow growers to gain the maximum advantage from the crops they grow, as well as new technologies to better manage crop threats before harvest and maintain grain quality after harvest. Agronomic benefits continue to accrue from research on water use efficiency, improved farming systems and precision agriculture and engineering. Soil biota, subsoil constraints and nutrient uptake provide scope for improving farmer profitability, while challenges for environmentally sustainable farming practices under increasing salinity, climate variability and greenhouse gas emission concerns continue to evolve. The increasing complexity of farming systems, and the need to reduce reliance on traditional chemicals to minimise the development of pest resistance, demand integrated crop protection solutions that are innovative, diverse and cost-effective. As the genetics of both crop pests and crop hosts are better understood, our ability to manipulate pest host interactions increases, providing farmers with vital alternatives to traditional mechanical and chemical crop protection solutions. Another important focus is slowing the development of herbicide resistance in several important weed species. Research in this area is seeking to develop more sustainable weed management practices to delay the onset of resistance in regions and cropping systems at risk, as well as to develop alternative control strategies where herbicide resistance already exists. The output group has a critical focus on ensuring that the latest R&D outcomes are extended to growers and other industry stakeholders. A range of on-farm participatory programs, conducted through effective partnerships and using emerging delivery technologies targeted to stakeholder needs, are under constant review. Investments support education, training and other capacity-building activities that facilitate on-farm practice change and allow the grains industry to make the best use of new technologies. Inputs In total, $37.7 million was invested through the Practices output group in In addition, the Practices output group attracted significant co-investment from its research partners. The output group also relied on the skills and expertise of the people within partner organisations. OUTPUT GROUP 2: PRACTICES 41

46 GRDC ANNUAL REPORT Outputs New technologies and practices Overcome subsoil constraints Subsoil constraints (SSCs) induced by high chloride levels are a substantial impediment to wheat production in the Northern Region. During , the GRDC supported mapping of SSCs in Queensland. The mapping showed that 61 percent of the land used for cropping has at least a minor limitation to root growth and function (greater than 400 parts per million of chloride), while 24 percent of that land has very high chloride levels (greater than 1,000 parts per million) at a soil depth of approximately 80 centimetres. Further GRDC-supported research is now being conducted with the aim of making the best of the situation, in terms of testing alternative crops, varieties and management approaches, without necessarily being able to ease the constraint. If wheat growers follow best management practices for their particular soils the identified SSC situation will have no economic costs. For example, in areas where SSCs limit the yield potential for wheat crops, growers could respond by reducing fertiliser inputs. Economic analysis of simulated wheat response to nitrogen suggests there is potential for Queensland growers to save $8 million each year by reducing fertiliser inputs, even in cases where the particular SSCs are not known. Action learning module workshops, like this one in Biloela in central Queensland, are helping advisers and growers to better recognise and understand how to manage subsoil constraints. Photo: Stuart Buck Integrated farm management practices Improved opportunities for nutrient input GRDC-supported field studies during repeatedly recorded beneficial responses in crops grown on calcareous sandy loam soils when phosphorus and key micronutrients were applied in liquid rather than granular form. In GRDC-supported research by CSIRO and the University of Adelaide, laboratory investigations using isotopic dilution techniques revealed that micronutrients and phosphorus applied to the soil in liquid form diffused further from the point of application and remain longer in potentially plant-available forms, compared with nutrients applied in granular form. The liquids diffuse away from the point of injection and are not chemically locked up, leading to better distribution of nutrients through the soil and an increased probability of uptake by plant roots. Granules draw the moisture to them in calcareous soils this results in the incorporation of nutrients into less soluble compounds. Integrated cropping and grazing practices With dual-purpose wheat varieties becoming more prevalent in prime lamb production in south-east Australia, the integration of cropping and grazing practices has become increasingly important. In , the GRDC supported research to identify and develop integrated practices to maximise both livestock weight gains and wheat yields. The GRDC believes that the integration of dual-purpose wheats into grazing systems in Australia s higher rainfall areas will lead to large increases in productivity and profitability. Field studies conducted in by the FarmLink group, involving farmers and scientists from the NSWDPI and CSIRO, showed that the grazing of dual-purpose wheats does not reduce grain yields if animals are removed before the stem elongation stage. In a number of experiments, grain yields after grazing were actually higher than in ungrazed crops. At the same time, liveweight gains made by stock grazing winter wheat were often greater than the gains made by grazing forage oats or pasture. 42

47 The GRDC-supported trial also found that liveweight gains in lambs grazing dual-purpose wheats could be increased by 54 per cent by providing a magnesium supplement at low cost. The preliminary work showed that all of the wheat varieties tested were deficient in magnesium, suggesting that when animals perform poorly grazing on wheat, they could be showing a subclinical magnesium deficiency. Acid soils could be part of the problem. While a crop s roots are in an acid topsoil they have less ability to take up magnesium, and the wheat itself can show signs of magnesium deficiency. Later, when the crop s roots are in subsoil, which usually has a higher ph, both the crop and the animals grazing it may get sufficient magnesium. Weather and climate variability In , GRDC-supported research into sea surface temperatures (SST) led to improvements in the accuracy of weather forecasts. SST to the north-west of Australia have been found to influence rainfall across the Australian grain belt. GRDC-supported research at DAFWA developed a model, based on the El Niño-Southern Oscillation Sequence, that accurately forecasts eastern Pacific SSTs a year in advance. The system can accurately predict May to October rainfall for much of the south-west and north-east of the country, with a lead time of four months. In addition, work at DAFWA and the University of New South Wales found that rainfall in the wheat belt of western and eastern Australia is related to irregular SST to the north-west of Australia. By incorporating the regional SST pattern into a regionally based forecasting system, the research team improved the accuracy of growing season rainfall predictions to early February. The improved long-range forecasting was made available to growers through the DAFWA website, Natural resource management practices Efficient nutrient uptake The poorest performing parts of a paddock are also the parts with the greatest risk of nitrogen leaching. GRDC-supported research conducted by CSIRO in Western Australia during provided growers with economic and environmental reasons to modify nitrogen application on these parts of the paddock. In a combination of field experiments, the research team used precision agriculture (PA) tools and modelling to assess the impact of spatial and seasonal variation on a range of fertiliser application options. Yield maps and electromagnetic maps were used in conjunction with simulation models and real-time weather data to account for site-specific mineral nitrogen in the soil. This information can now be used for site-specific fertiliser recommendations. A drought sea surface temperature (SST) pattern, indicated by the cold SST north of Australia and the warm SST west of Perth. In a wet year the reverse pattern would be seen. OUTPUT GROUP 2: PRACTICES 43

48 GRDC ANNUAL REPORT Field work in the central grain belt of Western Australia showed that areas with low water storage capacity resulted in both low wheat yield and a large loss of nitrogen due to leaching. Simulation studies showed that splitting the application of nitrogen, rather than applying all nitrogen at seeding, resulted in reduced nitrogen loss and increased grain yield. Improved catchment management of salinity and water quality The GRDC invests in three partnership projects investigating ways to improve catchment management, each involving the local catchment board or equivalent, state programs and agencies, the National Action Plan for Salinity and Water Quality and CSIRO. To assess the value of different options in salinity management, the projects are testing and modelling: land use options, such as agroforestry plantations, biodiversity plantings, perennial pastures or alley cropping management practices, such as opportunity cropping or phase farming engineering options, including banks to channel overland flows, local drains or evaporation ponds. For each project, the data and tools used and the processes of community engagement and participation, as well as the results, are being recorded in detail. They will provide a valuable guide for other grain-growing catchments where communities wish to tackle the problem of dryland salinity. Some important lessons have been learnt in this work. For example: large-scale community projects benefit from clear strategic direction it is important to objectively assess salinity risk before making major investments in management works the negotiation of options is important in persuading farmers to buy in consistent and relevant soil and landscape information is a fundamental requirement for landscape-scale natural resource and production management it is important to formalise arrangements for access to all relevant information before commencing catchment-scale planning strong technical support is a key element of interpreting complex landscape information and implementing change. Management of weeds, diseases and pests Weeds Integrated weed management (IWM) assists in managing herbicide resistance while providing growers with a diverse mix of cost-effective weed management tools. IWM can include herbicide rotations and various non-herbicide methods, such as enhanced crop competition, weed seed collection, or the collection, windrowing and burning of chaff to minimise weed seed numbers. GRDC investments, including support for the Western Australian Herbicide Resistance Initiative and the CRC for Australian Weed Management, continued to play an important role in improving intelligence on herbicide resistance and developing IWM strategies during More effective weed control options are vital to address the economic, environmental and social demands that farmers face in dealing with weeds as they increasingly adopt conservation farming methods, such as no-till seeding. Experiments conducted at the University of Adelaide demonstrated the impact of tillage methods on weed seed germination. Small-seeded weeds (such as Indian hedge mustard, sow thistle and silver grass) emerge in much greater numbers if a no-till narrow opener system is used. Larger seeded weeds (such as bedstraw, wild radish and annual ryegrass) emerge in greater numbers where wider seeding furrows increase the level of soil disturbance. Better understanding of weed seed responses to the environment allows growers to tailor weed control in integrated programs that manage weed burdens while reducing the risk of certain species becoming resistant to herbicides. A better understanding of weed biology and the factors that trigger germination is helping in the development of improved early weed control.

49 Diseases In , GRDC-supported research by NSWDPI produced significant reductions in crown rot infection in cereal crops by using inter-row sowing with autosteering accurate to 2 centimetres. The tests also confirmed the value of matching variety resistance to inoculum levels: a 12 percent yield advantage was achieved by growing the best partially resistant wheat variety available. Leaf, stem and stripe rust remain the most damaging diseases for cereal crops. The GRDC continued to support research into practical management strategies through its investments in regional pathology support programs, and a collaborative project between Southern Farming Systems and the New Zealand-based Foundation for Arable Research. These programs complement the genetic approaches to rust resistance that are under constant development through the Australian Cereal Rust Control Program. For effective rust management, growers are advised to adopt a preventive strategy which considers seasonal conditions and yield potential, crop rotation, sowing time, ability to spray on time and profitability. The key elements of practical rust control include selecting appropriate varieties, controlling over-summering hosts (the green bridge ), planning a control strategy ahead of sowing, and applying one or two well-timed foliar sprays where required. These messages have been clearly and vigorously extended to growers. As one of the elements of this extension effort, the GRDC s Agribusiness Trial Extension Network supported a research team to develop a model management strategy for stripe rust in wheat. The research found that the timing of fungicide application is crucial in minimising the impact of stripe rust. As part of a Central Queensland Sustainable Farming Systems project, the GRDC supported the publication of a management protocol to help ensure central Queensland remains free of the fungal disease ascochyta blight, which has been responsible for serious chickpea production losses throughout southern cropping areas. The published protocol provides a step by step guide on how to deal with suspected and confirmed cases in central Queensland. The impact of stripe rust can be greatly minimised if the timing of the fungicide application is right. Photo: Brad Collis Pests Integrated pest management (IPM) for invertebrate pests of cropping systems reduces grower costs and provides environmental benefits. Examples of IPM approaches under development in include work by the South Australian Research and Development Institute on broadacre control of the etiella moth in lentils. This pest causes serious losses, particularly to export trade, as damaged lentils suffer a severe price penalty. A successful management package has been developed, outlining pest identification methods, a monitoring technique using species-specific pheromone traps, and control strategies based on timed pesticide applications. Consultants and advisers have readily adopted these management recommendations, ensuring rapid implementation of the new strategy, optimal timing and effectiveness of etiella control measures, and reduced likelihood of crop damage and grain rejections. Risk management Incursions of new pests and diseases, such as wheat streak mosaic virus, are a constant threat to the Australian grains industry. The GRDC is contributing to the management of biosecurity risks posed by potential weed species by investing in a national surveillance plan to detect plants that have the potential to harm the grains industry. This includes developing contingency plans and increasing biosecurity awareness in the industry. OUTPUT GROUP 2: PRACTICES 45

50 In , Plant Health Australia embarked on a project to develop contingency plans for the five most significant potential exotic threats to the grains industry. The project will deliver a total of 15 plans over its three-year term, and will address such damaging global pests as karnal bunt, fusarium wilt of canola, barley stripe rust, Russian wheat aphid and khapra beetle. The cost of weeds in Australian cropping systems is estimated to be $1.5 billion each year. Funded by the GRDC, the CRC for Australian Weed Management has developed a decision-support framework that can assist policy decisions in determining an economically optimal response when a new weed incursion with potential impact in the grains industry is detected. This work has significantly improved industry preparedness for weed incursions. Workshops Building on the success of the IWM workshops described in the Annual Report, the GRDC, in conjunction with the CRC for Australian Weed Management and Independent Consultants Australia Network, brought senior consultants from the grains industry together in A workshop was held in Adelaide from 30 October to 1 November 2006, as an opportunity to present and discuss current knowledge on IWM and potential new weed control approaches, and to prioritise future research needs. The organisers received extremely positive feedback from the participants, and the outcomes from the workshop will assist in developing future research, development and extension and improving the adoption of IWM practices. Also in , a series of workshops were held to enhance information flow, build networks and improve understanding of common issues between the GRDC and agribusiness. The first workshop was conducted in Perth and involved representatives from a range of commercial and independent consultancy services, including members of the Australian Association of Agricultural Consultants Western Australia. The discussion included the potential role of an information repository, and the further development of market-focused commercial advice based on honest information. Workshops were also held in Wagga Wagga (New South Wales) and Melbourne, to discuss options to improve the information delivered to growers through agribusiness channels. The workshops concentrated on the training and professional development of agribusiness people, methods of packaging information to meet agribusiness and client needs, and emerging issues in relation to research, development and extension. GRDC ANNUAL REPORT Many growers have become more confident in using yield prediction models to assist them in adjusting their inputs. 46

51 Simulations slow the spread of glyphosate resistance Identifying the best management practices to prevent glyphosate resistance will help to extend the effective life of this important herbicide, and maintain the viability and sustainability of conservation farming techniques such as no-till cropping systems. Through GRDC investment, the Queensland Department of Primary Industries and Fisheries has modelled the development of glyphosate resistance, using models that simulate a wide variety of weeds, management options and cropping situations. These models build on the world-leading glyphosate modelling work of the University of Western Australia, the home of the Western Australian Herbicide Resistance Initiative. CASE STUDY During , the Queensland studies filled an important gap in knowledge of the test weed, barnyard grass namely, whether flushes of plants emerging late in summer produce different amounts of seed from flushes emerging early in summer. The information is critical for effective seed bank management because early flushes of emergence are more likely to be controlled by applied herbicides. Clarification of such population dynamics Plant modeller David Thornby has developed a model to find specific and practical ways of limiting the development of questions will allow the model to be glyphosate resistance in weeds on farms in Queensland and northern NSW. used to test factors likely to reduce the risk that herbicide resistance will evolve, such as increased summer cropping, double knock tactics, and the use of non-glyphosate herbicides in summer. Validation of the model is being assisted by comparing the simulation of the development of glyphosate resistance in annual ryegrass on the New South Wales Liverpool Plains with real events, based on historical data. Comparisons with populations of other weed species are also being undertaken. The long-term goal is to develop a broadly applicable simulation model that will enable Northern Region growers and agronomists to identify the risks of herbicide resistance for different farming systems and weed management practices, and assist growers to predict the impacts of various weed control tactics. OUTPUT GROUP 2: PRACTICES 47

52 CASE STUDY Grains industry leads the way in beating biosecurity risks Plant pest and disease incursions are a constant threat to Australian food production, whether they occur by natural means or through international movements of passengers, mail and cargo. Plant Health Australia (PHA) is responsible for developing a nationally coordinated plant health preparedness and prevention system for exotic and endemic plant pests and diseases. The Grains Council of Australia (GCA) is a core participant of PHA and allocates 1 percent of the grain s industry levy to the activities of PHA. The GRDC invests additional funds in a PHA program to develop contingency plans for key emergency plant pests of the grains industry. Objectives of the program include a national surveillance plan for grains industry emergency plant pests, cost-effective methods to determine area freedom from exotic pests, and higher levels of biosecurity awareness in the grains industry. The grains industry, supported by the GRDC, is one of the first Australian industries to develop contingency plans for emergency plant pests. The plans detail preparedness and emergency response arrangements for dealing with a pest incursion under the terms of the Australian Government s Emergency Plant Pest Response Deed and PLANTPLAN, as endorsed by the GCA. Five grains industry contingency plans have been delivered to date, targeting the high-risk disease and pest threats karnal bunt, hessian fly, pea leaf weevil, Russian wheat aphid and khapra beetle. Plans for fusarium wilt of canola, dwarf bunt of wheat, barley stripe mosaic virus and barley stripe rust are nearing completion. The contingency plan for khapra beetle was successfully implemented in Western Australia in April 2007, when an incursion of the beetle was discovered in a private home and was quickly and effectively eradicated. GRDC ANNUAL REPORT

53 Output Group 2: Practices Investment strategies Agronomic packages for new crop varieties Making the most of inputs Farm machinery Adapting to climate change Validation and adoption Achievements The GRDC provided information on the performance of new varieties under a range of management regimes in the 2006 season to growers in the Western Region and Southern Region. A workshop held in December 2006 reviewed the outcomes of the GRDC-supported Soil Biology Initiative. Reports were tabled on the economic impact of subsoil constraints in the Northern Region (Queensland Department of Natural Resources) and the economic benefits of precision agriculture (CSIRO). In , the GRDC supported the development of an implement control system design for improved seed and fertiliser placement accuracy, to be integrated into an autonomous tractor which incorporates the use of GPS systems, tilt sensors and laser rangefinders with an operational safety sub-system an integrated approach to variable rate pesticide application, based on mapping crop biomass using near-infrared crop scanners and direct chemical injection spray application systems. In partnership with the Australian Greenhouse Office, the GRDC supported the establishment of a free-air carbon experiment at Horsham (Victoria) to evaluate the impact of elevated carbon dioxide on cereal crop performance. The importance of adapting to climate change through the management of climate variability has been highlighted. The GRDC s achievements in relation to validation and adoption included the: development and extension of approaches to better integrate livestock into cropping systems through the Grain and Graze program development of a blueprint for doubling sorghum production communication of findings from localised farming systems research to growers through research compendiums and results manuals identification of the key profit drivers in northern cropping systems. Protecting the crop As a result of GRDC supported research: a national surveillance plan was developed for emergency plant pest threats to the grains industry improved herbicide resistance intelligence and understanding of resistance development mechanisms were built to manage the risks of herbicide resistance in the grains industry A diverse range of integrated weed management options were delivered to agronomists and consultants to improve weed control options in conservation farming a test to detect wheat streak mosaic virus in bulk seed samples of wheat was successfully developed to identify seed at risk of carrying disease into the next crop effective integrated pest management approaches such as broadacre control of the etiella moth in lentils and mirid populations in soybeans were developed to reduce grower costs and provide environmental benefits. OUTPUT GROUP 2: PRACTICES 49

54 Output Group 2: Practices (continued) Indicators Performance Useful results from the continuation In order to minimise the effects of drought on the GRDC s R&D program and of a stratified survey to measure industry capacity in , the corporation made a number of targeted current on-farm practices such as savings. This included suspending the annual collection of survey data to the use of gypsum and lime for soil measure the GRDC s performance. It is intended that this activity will resume amelioration; controlled traffic; in precision agriculture; variable rate technology; nutrient budgeting; the application of risk management tools; the monitoring of water use and deep drainage; and the sowing of perennial pasture species. Enhanced management options for cereal foliar and root disease across agroecological zones. Enhanced farmer capacity to deal with weed, disease and pest constraints on profitable grain production. Increased farmer adoption of weed management practices that delay the development of herbicide resistance. Identification of new avenues of pest control through the genetic manipulation of the pathogen, weed or invertebrate pest, or its host plant. Further refinements to rust management practices, including the management of the crop canopy through strategic post-emergence nitrogen applications, were delivered to growers to provide more effective integrated disease management strategies for stripe rust. The GRDC conducted a number of integrated weed management (IWM) workshops across several states and agroecological zones The initial stages of a comprehensive cereal rust implementation plan commenced The national invertebrate pest initiative (NIPI) gained significant momentum with the establishment of a sound interactive network of collaboration scientists and extension staff. This included increased interaction with industry and grower groups delivering various training workshops Active learning workshops were conducted in central Queensland resulting in 93% of surveyed growers indicating that they would change their weed management practices to reduce the risk of developing herbicide resistance. The acquisition of the genome sequence of the blackleg fungus through an Australian French collaborative project led to the prediction of the longevity and effectiveness of particular blackleg resistance sources in canola. Resistance genes become ineffective, resulting in severe yield losses, once the frequency of virulent isolates in a fungal population reaches a particular threshold. Virulence markers have been identified from the fungal genome sequence and are being used to rapidly screen field populations. The results, including data on changes in the frequency of virulent isolates over time, have been provided to canola breeders for use as a guide to the effectiveness of the particular resistance sources being deployed in breeding programs. GRDC ANNUAL REPORT

55 Output Group 3: New Products Objectives Develop and deliver new, value-added grain products and new farm products and services to growers. Identify and implement partnerships necessary to develop and deliver these products and services. Identify opportunities to help new technology reach the Australian grains industry sooner. Access intellectual property from Australia and overseas to apply in the Australian marketplace. Overview The New Products output group invests in research, development and commercialisation opportunities that focus on new grain products, and new farm products and services. New Grain Products covers the areas of new grain uses (food, industrial and feed) and food safety and grain hygiene, while New Farm Products and Services covers the areas of farm inputs (goods and services) and grain handling and storage. Inputs In total, $8.7 million was invested through the New Products output group in In addition, the New Products output group attracted significant co-investment from its research partners. The output group also relied on the skills and expertise of the people within partner organisations. Victorian oilseed grower Steven Hobbs with a jar of home-made biodiesel. Outputs Incorporated joint venture for soil inoculants Philom Bios (Australia) Pty Ltd was formed in April 2006, as a joint venture between the GRDC and Philom Bios Inc. of Canada (PBI), to develop and commercialise high-value biological soil inoculants. Philom Bios (Australia) achieved the following milestones in : appointment of a regionally based territory manager successful transfer of microbial strains to PBI for formulation trials handover to Philom Bios (Australia) of all field trials previously contracted independently by the GRDC first Australian trialling of Canadian phosphorous solubilisation microbes currently marketed in North America by PBI. With management in place and a business plan underway, the joint venture can now be considered an independent, operational business. Unfortunately, the drought conditions in 2006 were not conducive to field trialling and several trials were not completed. Philom Bios (Australia) has improved the trial designs and methodologies for the 2007 season. OUTPUT GROUP 3: NEW PRODUCTS 51

56 Extension of objective grain quality testing technology The intellectual property arising from the Objective Grain Quality Testing project is jointly owned by the GRDC and BRI Australia Ltd, an independent centre whose primary business is the provision of research and technological expertise to the grains production, processing and food industries. In April 2006, a joint management group established to guide the research and commercialisation process decided to call for expressions of interest from the private sector to invest in and undertake the commercial development phase of the project. Nine expressions of interest were received, including responses from several prominent international companies. The joint management group selected three of these to continue to the next stage. During , while the assessment and discussions were underway, the research group continued work on three key technologies, filing patents for two and beginning the writing for publication of the third. The commercialisation pathway for weather damage technology (potentially a replacement for the falling number test for grain) is expected to be finalised in late 2007 with the signing of a licence agreement. Negotiations surrounding image analysis technology for assessment of staining, pinking and black point are continuing as the research phase nears completion. Development of on-farm instrumentation packages While Australian grain growers and their advisors make significant use of data and measurements in production and marketing, a number of the key measurements cannot be made on-farm, in real-time or cost effectively enough to ensure adequate data is gathered. In , a scoping study was undertaken to review the current state of GRDC instrumentationrelated research, growers on-farm data and measurement instrumentation needs, and the technologies that might be used to satisfy growers needs. The aim was to use the findings of the scoping study as a basis for developing a GRDC investment strategy for on-farm instrumentation. The scoping study reviewed and prioritised grain grower information needs (as well as possible technologies) from the perspectives of maximising the return on investment and developing useful instrumentation for on-farm, real-time and low-cost measurement. Initially focused only on near-infrared (NIR) and mid-infrared (MIR) technologies, the scope of the study was broadened to include all instrumentation technologies relevant to on-farm needs. The report on the study was completed in December 2006, and the GRDC has commenced preparing business cases for potential for investment projects in GRDC ANNUAL REPORT Seeding at a property east of York, Western Australia. Photo: Evan Collis Post-harvest grain hygiene The GRDC made significant progress towards integrating the stored grain research laboratory and GRDC grain hygiene projects into the CRC for National Plant Biosecurity (CRCNPB) in A steering committee formed to examine a way forward for a national hygiene strategy for Australia determined that establishing or partnering with a CRC in this area would be the most effective way to utilise resources (financial, intellectual and human), and to develop innovative strategies to manage grain hygiene problems (such as insect resistance to phosphine, a stored-grain fumigant). A supplement to the CRCNPB was identified to be the preferred option. The supplementary bid was led by industry, supported by the CRCNPB Board, and successfully argued the benefits of securing funding for the integration of the national hygiene strategy into the CRCNPB. 52

57 Over the next five years, the CRCNPB s Post-harvest Integrity Research Program will work towards achieving: appropriate competencies for pest management across industry enhanced workforce capabilities, including nationally accredited training for technologists and practitioners agreed industry protocols and codes of practice based on up-to-date technical information mitigation of the risk of phosphine resistance integrated pest management based on HACCP (hazard analysis and critical control points) principles the delivery of Australian grain to customers in accordance with an expected value proposition that is, without insects and within agreed levels of fumigant residues grain quality that contributes to the sustainability and profitability of the grains industry from paddock to plate. Premium Grains for Livestock Program In , the GRDC worked on a number of case studies examining the commercial potential of the research outputs developed by the Premium Grains for Livestock Program. The program aims to identify the extent of differences in the nutritional value of various feed grains, and to use NIR technology to generate calibrations to predict these differences. communication between rural R&D corporations with interests in these projects and provide opportunities for collaborative funding and sharing of outcomes. New grain food products In November 2006, the GRDC signed a highamylose wheat joint venture agreement with CSIRO and Groupe Limagrain. The joint venture, now called Arista Cereal Technologies Pty Ltd, was established to develop high-amylose wheat technologies to a profitable commercial end point. High-amylose wheat contains starch with an amylose content above 50 percent (traditional wheat varieties have an amylose content ranging between 20 percent and 30 percent). The joint venture aims to develop wheat with around 70 percent amylose content, in order to be commercially successful. The new products and varieties that will be produced from this joint venture are expected to increase income opportunities for Australian grain growers, and enhance their competitiveness both in traditional markets and in new, higher value market segments. High-amylose wheat technology also addresses the key dietary issue of bowel health. Each case study involves an industry participant operating within the grains supply chain, and examines the practicalities of using, trading and evaluating feed grains. For example, one of the outcomes of a case study involving Inghams was the validation of apparent metabolisable energy (AME) for broiler production, using AME intake calibrations to differentiate between high-energy and low-energy wheat. The case studies are expected to be completed during The GRDC joined a new forum, the Feed Grain Partnership, during The partnership was established to develop projects that are relevant to all facets of the feed grain supply chain, and ensure that each sector of the chain can validate the direction of projects during their formulation. The Feed Grain Partnership will have its first meeting in , to bring together all parts of the feed grain supply chain to discuss issues that need urgent R&D attention. This will facilitate Matthew Morell (top) and Bruce Lee (below), participants in the high-amylose wheat joint wheat venture between the GRDC, CSIRO and Groupe Limagrain. Photos: Rebecca Thyer OUTPUT GROUP 3: NEW PRODUCTS 53

58 GRDC ANNUAL REPORT New industrial uses for grains Crop Biofactories Initiative In the third year of its predicted 12-year term, the Crop Biofactories Initiative (CBI) moved from the discovery phase to identifying a path to market for some of its products. One oil product is being used as a pathfinder to examine regulatory and commercial hurdles that other products might also have to face. Commercial paths to market for the other potential products are being examined as the focus turns from discovery towards delivery. The CBI periodically conducts internal reviews that assess the direction of the suite of projects in terms of novelty, commercial reality and timeliness, and benchmark the CBI against world s best practice. CBI outputs from the previous year, , included taking intellectual property positions on expoxydases (oils) and silk protein structures; and discovering the ability to create secondary functionality in complex monomers. GM cereals In , the GRDC Varieties and New Products output groups jointly commissioned Sd+D Consulting to examine the delivery platform and supply chain infrastructure requirements for GM wheat and barley crops and products within the Australian grains industry. The consultants are required to: identify generic pathways to market for broadacre crops of wheat and barley differentiate between food, feed and industrial applications, to determine the layers of regulatory approvals, process management/traceability requirements and associated costs identify the delivery platforms and supply chain infrastructure required for the introduction of GM crops and products identify measures for process management and traceability at all steps of the supply chain estimate the timelines and cost of entry to market for GM wheat and barley crops and products. The project commenced in January 2007 and is due to report in Biofuels In , the GRDC received the results of a consultancy examining the opportunities for GRDC investment in biomass ethanol. Biomass ethanol differs from grain-based ethanol in that vegetative material such as crop residue (stems and leaves), rather than grain, is used as the feedstock. The grain can be used for traditional food and feed production. The consultancy report suggested that the GRDC: investigate research or intellectual property that can be adapted for use in Australia to reduce the cost of using the starch in grains for ethanol production once the biofuels industry has clearly demonstrated that it is viable in Australia map the areas with potential for biomass ethanol production investigate biomass energy crops for new cropping areas in Australia maintain a watching brief on biomass-based ethanol developments internationally. The GRDC is working with CSIRO on a biomass mapping project to compare the pros and cons of biomass ethanol production and other crop uses in a number of regional areas. The GRDC is also a member of Bioenergy Australia, a forum that coordinates the collection and dissemination of information on all aspects of bioenergy and biofuels. Participation in this forum, and in international conferences, ensures that the GRDC remains informed about developments in this area. Australia has a long way to catch up in the biofuels industry, according to GRDC-supported Nuffield Scholar Caroline Brown. 54

59 GRDC CSIRO grain product synthesis builds biotech benefits The GRDC and CSIRO established the Crop Biofactories Initiative (CBI) to explore the potential to produce novel industrial compounds in field crops, using GM technology. The program builds on the strong biotechnology capabilities of CSIRO in areas of gene discovery and transformation technology, enzymology, microbiology, fermentation and biocatalysis. In , the CBI focused on two areas which show particular promise to move from the discovery and technical development phases towards commercialisation: novel protein biopolymers for use in high-performance fibres, and vernolic acid. CASE STUDY Insects are costly to keep and produce in bulk, but certain products they produce, particularly those with very novel properties that could be relevant in medical fields, could be in high demand. Part of this collaboration is to examine whether the products produced by insects can be produced more cost effectively, and in larger volumes, using a broadacre grain production system. Commonly studied insect silks, such as those of silkworms and orb-weaving spiders, are composed of very large proteins with repetitive amino acid sequences that make them particularly difficult to synthesize in recombinant systems.the CBI has been investigating an unusual insect silk, produced by bees, with a coiled structure based on small, non-repetitive genes. The bee silk has a number of desirable material properties, including toughness, high extensibility (stretchiness), extreme stability and retention of properties in both wet and dry environments. The research seeks to use the recombinant expression and self-assembly of the silk proteins to produce fibres, and to assess the physical properties of those fibres. The long-term aim is to identify opportunities for this class of materials to be produced by the Australian grains industry. Another example of product development in CBI is vernolic acid, an epoxygenated fatty acid present in oilseeds. Its potential for use in coating, plasticiser and polymer applications is well recognised, but commercial development has been limited by the cost of extracting the acid from low-yielding plant sources. The CBI has been working to develop a GM crop with a commercially viable yield of vernolic acid. The project has completed the initial genetic transformation and expression in a model plant system, and is now moving to optimise vernolic acid content in an agriculturally productive oilseed crop. OUTPUT GROUP 3: NEW PRODUCTS 55

60 CASE STUDY Tailored management process through project design In what is likely to be the last in the line of fumigants developed by CSIRO Entomology, the unique combination named GLO2 is poised to be a significant step forward for the protection of stored grain in Australia. The GRDC supports a commercialisation project designed to manage the path to market process for GLO2. Milestones for this project centre on the activities required to take a new active ingredient from the proof of concept stage to commercial launch. The diverse elements of the project include researching and managing: the development of a toxicology package coordinated trials in laboratory, on-farm storage and bulk-handling facilities patenting and intellectual property protection the preparation of a registration package for approval by the Australian Pesticides and Veterinary Medicines Authority market analysis the evaluation and selection of commercial licencees the negotiation of commercial agreements for manufacture and distribution. The GRDC s decision to use a specific project format such as this was based on the need to ensure this vital product is brought to the Australian grain market as quickly and cost effectively as possible. Products such as GLO2 have global market opportunities to consider, and this wider application often has significant bearing on domestic affordability. Close coordination between New Products and the CSIRO Entomology Business Development team, in the form of fortnightly meetings and a hands-on approach, has developed a working relationship much closer than usually warranted by a research project. This relationship has been crucial to the project s success in achieving such diverse milestones. GRDC ANNUAL REPORT

61 Output Group 3: New Products Investment priorities New farm products and services New grain products Indicators Achievements A joint venture was established to complete development and commercialisation of new soil inoculants. A strategy for the development of affordable near-infrared (NIR) and mid-infrared (MIR) instruments for on-farm grain and soil testing was formulated, with a view to investing in A commercial partner was selected for the commercial development phase of new objective grain quality testing instrumentation. A coordinated cross-industry investment in post-harvest grain hygiene was successfully developed through the CRC for Plant Biosecurity. A new investment opportunity in CSIRO work on omega 3 fatty acids was identified. In collaboration with the feed grain industry, case studies were initiated to demonstrate the value of establishing a more rational basis for trading feed grains. The New Grain Products and Varieties output groups jointly initiated a study into the pathway to market for GM crops. Performance A new incorporated joint The Philom Bios (Australia) Pty Ltd joint venture was established and launched. The joint venture for soil inoculants venture expects to release new products in the second half of established, with field trials undertaken and first product(s) released. Objective grain quality testing technology developed to the stage at which a commercial partner can take it forward to develop instrumentation. At the end of , the Objective Grain Quality Testing project had: one technology ready for transfer, pending license agreement one technology under negotiation for transfer to a commercial partner. Sanford Gleddie, Chief Executive of Philom Bios (Australia), addressing growers at a GRDC Grains Research Update in South Australia. OUTPUT GROUP 3: NEW PRODUCTS 57

62 Output Group 3: New Products (continued) Indicators Development of a research, development and commercialisation plan for NIR and MIR technologies to measure soil, plant and grain qualities. Establishment of a governing body to develop and implement a post-harvest grain hygiene strategy. Completion of three or more case studies with different end-users to demonstrate and promote a rational basis for trading feed grains. Establishment of a new incorporated joint venture for high-amylose wheat, to deliver a non-gm breeding line with an amylose content in the order of 70 percent. Crop selection and identification of delivery channels for GM crops completed (with the Varieties output group) for the outputs of the Crop Biofactories Initiative. Performance The scoping of potential uses and available technologies for on-farm instrumentation was completed in Based on the results, the GRDC began preparing business cases for potential projects. The draft investment plan for contains two projects prepared from this report. A supplementary bid to the Cooperative Research Centre for National Plant Biosecurity (CRCNPB) was successful in establishing a governing body to develop and implement a post-harvest grain hygiene strategy, through the CRCNPB. At the end of , three case studies were complete and six case studies were near completion. The GRDC, CSIRO and Groupe Limagrain signed the agreement to form the joint venture Arista Cereal Technologies Pty Ltd, to deliver high-amylose wheat. The annual internal review of CBI s research and commercial direction examined crop selection and identification of delivery channels for GM crops for CBI products, and developed a short list for further evaluation. The GRDC commissioned a study to examine the delivery platform and supply chain infrastructure requirements for GM wheat and barley crops and products. GRDC ANNUAL REPORT Identification of research opportunities for new technologies to produce biofuels from Australian grain crops. The report of the GRDC-commissioned study of the possibilities of biomass ethanol was completed. The GRDC engaged CSIRO to map regional areas where biomass ethanol production opportunities may exist. The GRDC participated in Bioenergy Australia, as a means to keep abreast of Australian and international developments in relation to biofuels policy and technology. 58

63 Output Group 4: Communication & Customer Services Objectives Increase the adoption of research outcomes and innovations that improve the economic, social and environmental performance of the grains industry, through the development and targeted delivery of imaginative products and services. Communicate and promote the GRDC s achievements to stakeholders. Turn research outputs into relevant information, products and services that are delivered to meet stakeholder needs. Support the capacity building of growers, advisers and researchers, through professional development. Support studies related to agriculture and science in secondary schools, in order to encourage students to consider these disciplines as possible career paths. Overview The Communication & Customer Services output group focuses on streamlining the collection and distribution of information from R&D outputs and positioning the corporation as a credible source of technical and industry-specific information. The output group packages and delivers tailored information that is regionally specific to ensure that it meets grower needs. It also offers a range of mechanisms to help build industry capacity. These include a visiting fellowship program, PhD and Undergraduate Honors Scholarship, grains industry training and development awards, short-term courses and conference sponsorship. Grains industry stakeholders are supported to attend national and international conferences, while secondary school students are encouraged to undertake tertiary studies in agricultural science through the provision of agricultural training awards. Inputs In total, $5.3 million was invested through the Communication & Customer Services output group in In addition, the Communication & Customer Services output group attracted significant co-investment from its research partners. The output group also relied on the skills and expertise of the people within partner organisations. Outputs Enhancing the customer database In , the GRDC took steps to enhance its customer database to improve its ability to deliver relevant information to identified stakeholder groups, meeting their information needs and responding to emerging issues effectively. To build database functionality and improve information flow, subscriptions in the government stakeholder category of the GRDC customer database were analysed, and enhancements were made to increase the subscription of government representatives across a range of departments and roles. Segmentation also commenced for grain grower stakeholders. Soil and rainfall data were integrated into the database, to build an improved profile of grower customers and enhance the capacity for the GRDC to deliver targeted information that is relevant to growers particular circumstances. In late 2006, the GRDC commenced working with consultants and agribusiness representatives to improve understanding of the specific needs of grains industry advisers so that appropriate segmentation categories can be integrated into the GRDC customer database. OUTPUT GROUP 4: COMMUNICATION & CUSTOMER SERVICES 59

64 GRDC ANNUAL REPORT Improving the exchange of information International symposium In August 2006, the GRDC hosted the Future Directions for Agricultural Research and Technology Implications for Australia symposium, held in Canberra. Leading international agricultural economists joined a panel of Australian experts to consider the future priorities for agricultural research globally, and the implications they will have for Australia. Representatives of Australia s public and private sectors welcomed the opportunity to hear presentations not only on Australia s research, development and extension activities but also on international trends and thinking. Grains Industry Profile The GRDC continued its involvement in the Signposts for Australian Agriculture project, a partnership between rural R&D corporations, the Australian Government and state and territory governments, and the National Land and Water Resources Audit. In , the GRDC participated in a seminar conducted by the Australian Government Department of Agriculture, Fisheries and Forestry to outline the first major demonstration product of the project, the Grains Industry Profile. Launched in April 2006, the Grains Industry Profile brings together economic, social and bio-physical information specific to the grains industry. It can be accessed at Phil Pardey, an agricultural economist from the University of Minnesota, addressing the Future Directions for Agricultural Research and Technology Implications for Australia symposium hosted by the GRDC. Website redevelopment In , the GRDC began redeveloping its website to improve the timeliness and relevance of information provided to customers. The redevelopment focused on improving the accessibility, functionality, design, look and feel of the website, while catering for customers with a range of internet connection speeds. Important features include greater ease of use and the capability to support a greater range of information types and formats. Harvest Radio Supported by the GRDC, Harvest Radio addressed the most topical issues on the agenda for grain growers in By monitoring emerging events, using up-to-date research outcomes and liaising with industry, Harvest Radio identified and covered issues such as: management strategies to minimise the impacts of stripe rust and other diseases the latest developments in precision agriculture, in conjunction with the release of the GRDC precision agriculture manual CD nutrient management in cropping systems, including the findings of a survey conducted as part of the GRDC s nutrient management initiative, and the efficient application of nitrogen and phosphorus. The GRDC also released a compilation of current Harvest Radio editions titled Driving Agronomy This audio CD was distributed to growers and advisers in conjunction with the GRDC s Ground Cover publication. Building industry capacity The GRDC continued to provide growers, researchers and others directly involved in the Australian grains industry with opportunities for professional development. In , the GRDC offered six different categories of training awards as well as travel and conference support. This included support for 23 travel awards, six industry development awards, 19 conferences and 26 training scholarships. National Youth Science Forum To encourage students to consider careers in agricultural science, the GRDC supported the National Youth Science Forum, a two-week intensive program held at the Australian National University (ANU).

65 The forum introduces high school students to research and researchers, encourages them to achieve excellence in all their undertakings, and helps them to develop their communication and interpersonal skills. It emphasises pure research, applied research and engineering in the physical and biological sciences. Three hundred students took part in the forum in Three GRDC staff members spent time with the students and spoke to them about their own journeys through agricultural science. BHP Billiton Science Awards The BHP Billiton Science Awards, Australia s most prestigious science awards, are supported by a partnership between BHP Billiton and the GRDC, the Australian Science Teachers Association, CSIRO and QANTAS. They reward 16 high school students who have undertaken practical research projects which demonstrate innovative approaches and thorough scientific procedures. In , the GRDC-sponsored winner was Megan Weller from the Kingaroy State High School in Queensland. Her project, entitled Are Peanuts Able to Effectively Germinate from Intact Pods?, looked at mechanisms that would enhance the germination rate of peanuts still in their pods, in the hope that in future farmers may be spared the expense and effort of shelling the kernels. As part of her award for Best Environmental Project, Megan attended a science camp in Melbourne and received a cash prize. Megan Weller, winner of the GRDC Award for best environmental project in the 2007 BHP Billiton Science Awards. Photo: Mark Fergus Program students (left to right) Kelsey Crook, Bill Bewsher, Laurence Dunning and Josh Cables explore phosphorus uptake through wheat roots at the University of Western Australia. Undergraduate summer school The GRDC, in collaboration with CSIRO Plant Industry and the Australian Pastoral Research Trust, provided funding support to the Summer School Student Program. This scholarship program offers students hands-on research experience, working on their own projects, in world-class plant laboratories. The students present their results in a public forum in Canberra and submit a final report on their findings for feedback. Nineteen students were selected from 58 applications from second-year and third-year science undergraduates. The projects that the students worked on covered topics such as reducing reliance on phosphorus fertiliser, developing novel herbicides against wild radish and investigating the biochemical and molecular basis for stem rust resistance. The GRDC funded two scholarships in , supporting outstanding students Heidi Waddell from the University of Newcastle and Kristin Griffiths from the ANU to spend three months at CSIRO in Western Australia. Heidi s research investigated plant-based management responses to salinity, while Kristin examined the way plants defend themselves against aphids. Secondary schools program In 2003, the GRDC and the School of Agricultural Science at the University of Tasmania (UT) established a program to encourage secondary school students to undertake tertiary studies in agricultural science. The program is part of a long-term effort to address the current and predicted skills shortages in many primary industries, particularly the grains industry. OUTPUT GROUP 4: COMMUNICATION & CUSTOMER SERVICES 61

66 GRDC ANNUAL REPORT This GRDC program involves presentations to Year 11 and Year 12 chemistry classes about the science that underpins agriculture and the careers available in agriculture. Students are invited to apply for an Industry Placement Scholarship, which involves a five-day science industry induction camp followed by a five-day industry placement. These scholarships have been very successful: in Tasmania, 45 of the 116 scholarship students have since enrolled in degree courses in agricultural science. The program also involves direct engagement with secondary school science teachers through the development of learning resources and the provision of professional development programs based on the latest scientific developments of importance to agriculture. The program has been running for three years, both in Tasmania with UT and in Western Australia with the University of Western Australia. The program has achieved high levels of engagement; for example: 432 focused presentations have been made to science classes, contacting 9,400 students 116 Year 11/12 science students have participated in six industry camps and placements nine professional development sessions have influenced 208 participating secondary school science teachers five resource CDs have been produced, and 1,600 copies have been distributed to schools about 20 industries, 40 schools and 50 university staff/students have participated in the program each year The project has also achieved: ongoing cooperation from local primary industries, which become involved in different aspects of the program from year to year high levels of participation among undergraduate students, post-graduate students, agricultural science lecturing staff and researchers, who take on responsibilities in different aspects of the program from year to year an increasing level of awareness among students and teachers of the importance of tertiary studies and careers in agricultural science significant attitudinal change among teachers and high-achieving students with respect to career pathways in science fields that underpin primary industries. This practical guide was published by the GRDC to assist farmers in developing their own succession planning strategies. Succession planning booklet Succession planning is a pressing issue for Australian farmers: recent studies indicate that the average age of farmers in Australia is 54 years, and that 25 percent of broadacre farm owner/managers are over the age of 65 years. Of the 15,000 primary producers in South Australia, approximately 27 percent will retire or semi-retire in the next five years; however, almost half of those planning to retire have no succession plans in place. However many farmers believe succession planning is not a priority particularly during poor seasons. Moreover, succession planning can be difficult, time consuming and emotionally exhausting for the owner/manager and other members of the family. Few people possess the full set of skills needed to develop an effective plan, or know what professional help is available. To help individuals and the wider grains industry develop effective succession strategies, in the GRDC supported the publication of a guide to farm succession planning. The free booklet was a collaborative effort between the GRDC, Meat and Livestock Australia, Australian Wool Innovation, the Sugar R&D Corporation and the Rural Industries R&D Corporation. This guide gives farmers the opportunity to mix and match options to suit their circumstances, and learn through other farmers experiences. It includes case studies based on 20 farm families from across the grains, dairy, meat, wool and sugar industries and some smaller enterprises. It also provides specialist advice from the accountancy, legal, financial planning, adviser and facilitator perspectives. 62

67 Agronomy after the drought a guide to decision making in 2007 Responding to the adverse conditions facing the Australian grains industry in 2006, the GRDC worked with local researchers and industry experts to compile a publication for industry advisers focusing on considerations to maximise the potential of the crop in The information in the publication was based on presentations and discussions that took place at a Recovery After the Drought workshop conducted by the GRDC after the 2002 drought. The information was updated with the latest knowledge available in each of the topic areas covered. CASE STUDY The publication was designed to be relevant to growers cropping a wide variety of soil types in districts across New South Wales, Victoria and South Australia, and contains principles and guidelines for issues such as disease, nutrition, rotations and managing weeds. The publication was made available at the 2007 GRDC Southern Region Grains Research Updates, distributed to farming systems groups and agribusinesses, and provided on the GRDC website. OUTPUT GROUP 4: COMMUNICATION & CUSTOMER SERVICES 63

68 CASE STUDY Strategies help growers adapt to a changing environment In response to the drought, and as part of its series of Ground Cover supplements, in March 2007 the GRDC published the Climate supplement, which addressed climate change, climate variability and managing risk on-farm. The GRDC s main investment in this area is through the Managing Climate Variability Program (MCVP), which is a partnership with the Australian Government, the Natural Heritage Trust and five other R&D corporations. The Climate supplement reported on the progress of a number of research projects within the MCVP as well as other GRDC research projects related to climate change. Some strategies currently being adopted by growers to manage the impact of climate change and climate variability are: adopting no-till and stubble retention farming practices to minimise loss of soil moisture sowing more drought-tolerant varieties and varieties with improved root systems or resistance to root disease using programs or tools such as Yield Prophet to manage climate variability recording a range of weather events, not just rainfall learning from growers in more marginal grain production areas making better use of forecasting tools. The supplement provided growers with a better understanding of how to adapt to and manage the risks associated with climate variability and climate change. GRDC ANNUAL REPORT

69 Output Group 4: Communication & Customer Services Investment priorities Communication Achievements The inaugural GRDC Growers Report, a reader-friendly summary of the way the GRDC operates, its financial profile and highlights of research investments, was published. The Growers Report was distributed as a supplement in the November issue of Ground Cover. In response to the ongoing drought and its impact on the GRDC s levy-based income, a number of communication initiatives were put in place: To communicate to its stakeholders the GRDC s response to the drought, an open letter from the GRDC Chair was placed in Ground Cover and other rural media publications. Regional media releases explaining the GRDC s position were also issued. Interviews with targeted rural media outlets (both broadcast and print) were organised to enable the GRDC Chair or Managing Director to explain the corporation s position and response to the drought. GRDC managers wrote to the corporation s research partners explaining its response to the drought. These letters were followed up with face-to-face meetings, in which GRDC managers outlined the identified research, development and extension savings which would impact on each organisation. The response from research partners was extremely positive, with many expressing their appreciation for having been consulted and involved in the process. Ground Cover continued to increase in popularity among its key stakeholders grain growers. As well as reporting on R&D findings, the newspaper presented case studies of growers who are innovative in their on-farm practices. The database used to mail out Ground Cover was continually updated. In every issue, Ground Cover subscribers are requested to update their details. To address the issue of cereal stripe and stem rust, the Cereal Rust Communication Campaign put in place a number of activities to raise growers and industry s awareness of the potential risks of these diseases. The awareness-raising campaign aims to: outline the impacts that stripe and stem rust can have on production and grower income communicate the latest disease management techniques describe the potential risk of cereal rust outbreaks in 2007 and beyond identify cereal rust biosecurity risks to the Australian grains industry. Customer service The GRDC undertook a number of customer service initiatives, including: commencing a series of workshops aimed at improving the GRDC s interaction with agribusiness and consultants, to maximise the two-way flow of information launching the Integrated Weed Management in Australian cropping systems manual targeting advisers and growers in order to improve understanding and management of the weed seedbank through a diverse range of integrated weed management tactics developing in conjunction with AWI and RIRDC, a farm productivity report to examine trends in productivity growth in Australian agriculture, as well as the contribution of R&D to productivity gains publishing Agronomy after the drought a guide to decision making in 2007, which contains principles and guidelines for issues such as disease, nutrition, rotations and managing weeds participating in the Cooperative Venture for Capacity Building project On the fast track an exciting project designed to build the skills of people involved in capacity-building activities and bring together current research conducting a southern panel consultant workshop, to explore, develop and facilitate areas of strategic improvement between the Southern Regional Panel and consultants podcasting through the GRDC website, to address emerging issues facing the industry OUTPUT GROUP 4: COMMUNICATION & CUSTOMER SERVICES 65

70 Output Group 4: Communication & Customer Services (continued) Investment priorities Capacity building Indicators Customer segmentation categories identified and strategies implemented to deliver tailored information. Achievements The GRDC continued to support the Nuffield scholarships. The 2006 scholarship winners were: David Jochinke from Murra Warra (near Horsham) Bruce Thompson from Temora Ronald Thompson from Chinchilla The GRDC supported the National Youth Science Forum, a two-week intensive program held at the Australian National University. Three hundred students took part in the forum in Three GRDC staff members spent time with the students and spoke to them about their own journeys through agricultural science. Megan Weller from the Kingaroy State High School in Queensland won the GRDCsponsored prize in the BHP Billiton Science Awards. The GRDC, in collaboration with CSIRO Plant Industry and the Australian Pastoral Research Trust, provided funding to the Summer School Student Program. The GRDC funded two scholarships in , supporting students Heidi Waddell from the University of Newcastle and Kristin Griffiths from the ANU to spend three months at CSIRO laboratories in Western Australia. The Australian Rural Leadership Foundation (ARLF) offers development opportunities for current and potential leaders from rural and regional Australia. In , the GRDC sponsored ARLF scholarships awarded to Susan Findlay Tickner from Victoria and Chris Joseph from Queensland. Susan is a marketing and development manager for the Department of Primary Industries Victoria at Horsham, and a partner in a 4,000 hectare dryland cropping enterprise at Warracknabeal. Susan used the scholarship as an opportunity to enhance her leadership skills and to be a more effective contributor to the grains industry, her regional community and her own business. Chris, a grain grower and member of the GRDC Northern Panel from Dalby in Queensland hopes that the scholarship will improve his ability to help people on the land. The GRDC successfully completed a pilot capacity audit. The audit, completed in April 2007, will significantly contribute to the development of the GRDC capacity building strategy to be completed during Performance In , the GRDC commenced the development of an industry extension plan that concentrates on customer segments and their relationship to the corporation. Ongoing work was also conducted on developing the GRDC database to improve segment categories. GRDC ANNUAL REPORT Organisational In order to minimise the effects of drought on the GRDC s R&D program and industry performance surveys capacity in , the corporation made a number of targeted savings. This included carried out to measure the deferring the GRDC organisational performance survey until relevance of information, products and services delivered by the GRDC. Increased participation by The GRDC supported 23 travel awards, six industry development awards and 19 growers, advisers and conferences, and sponsored 26 training scholarships. researchers in the GRDC s capacity-building program. 66

71 Output Group 4: Communication & Customer Services (continued) Indicators Performance A range of educational Through the secondary schools program, the GRDC facilitated: packages available for 432 focused presentations to science classes, contacting 9,400 students teachers and secondary six industry camps and industry placements attended by approximately 120 Year 11/12 school students. students nine professional development sessions (of two days each) influencing 208 participating secondary school science teachers the production of five resource CDs, and the distribution of 1,600 copies. GRDC-supported Nuffield scholars Bruce Thompson, Ronald Thompson and David Jochinke with GRDC Southern Panel chair David Shannon and GRDC deputy chair Ross Johns. Photo: Rebecca Thyer OUTPUT GROUP 4: COMMUNICATION & CUSTOMER SERVICES 67

72 Enabling functions GRDC ANNUAL REPORT The GRDC s two enabling functions Corporate Services and Corporate Strategy & Program Support are responsible for key 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 the corporation s responsibilities under the PIERD Act and the CAC Act, and equip individual output groups to deliver their targeted outputs. Outlined below and throughout this annual report are key activities undertaken by Corporate Services and Corporate Strategy & Program Support during Line of business strategies Following publication of the strategic business plan The Way Forward, the GRDC developed its line of business (LOB known for reporting purposes as an output group ) strategic options for the future. The development of the LOB strategies involved extensive discussions and consultation with the GRDC s stakeholders, including grain growers, grower groups, grower organisations, the Australian Government and research partners. The LOB strategies laid the foundations for the GRDC s new five-year strategic R&D plan, Prosperity through Innovation, which took effect from 1 July Business process review A key part of The Way Forward business strategy was a commitment to attain a level of best operating practice in the GRDC s core business processes and enabling activities. The GRDC undertook a comprehensive review of its core business processes in The purpose of this review was to simplify existing sub-processes and activities to increase efficiency and effectiveness while continuing to meet all statutory requirements. The review made several recommendations, which will be implemented during Portfolio monitoring and reviews Portfolio monitoring is a broad term that covers a range of activities undertaken by the GRDC to ensure that individual projects achieve their objectives and scheduled milestones, and that the R&D portfolio as a whole continues to address industry and government stakeholder priorities. The portfolio in included around seven hundred projects, at various stages of development, spread across four output groups. The portfolio monitoring system includes internal guidelines and/or procedures for: identifying and managing risks associated with individual projects during planning and implementation stages evaluating progress reports for project performance against objectives developing business cases, terms of reference and time frames for a limited number of formal reviews of targeted investment areas from across the entire portfolio. At the project level, portfolio monitoring involves an annual assessment of each project, by way of an annual progress report that identifies progress against the aims and milestones of the project. Satisfactory progress reports must be submitted to the corporation before further payments are made to research providers. 68

73 Other GRDC portfolio monitoring activities in included: external visits to research providers facilities, including research laboratories and sites where field trials are carried out internal monitoring procedures to assess the performance and efficiency of administrative activities associated with managing the large investment portfolio. This includes tracking the status of progress reports against internal performance targets and producing summary reports for management and staff. This contributed to a significant reduction in the number of progress reports remaining outstanding (unprocessed) at 30 June Project management system The GRDC successfully installed and implemented the Clarity Project Management System, a robust and versatile tool capable of handling all GRDC project work, during The project took 14 months to complete, from the issue of the request for tender to full implementation. The Clarity project consolidated three critical databases and forms environments into one application so that all staff have access to common reporting features and tools. New business processes were also introduced to improve the handling of projects within GRDC. A concerted effort to train all levels of staff at the GRDC ensured that the new system was universally accepted, and all staff are happy with the system and its performance. Electronic document and records management system The GRDC commenced assessment of its records management needs in In March 2007, the corporation issued a request for expression of interest to supply an electronic document and records management system. Procurement and implementation of a system is planned for Impact assessment Evaluating the impact of R&D investments and reporting to stakeholders on performance are parts of the GRDC s core business. In , the GRDC worked with other rural R&D corporations to develop a common methodology and governance arrangements for quantifying the impacts of R&D investments on each target industry as well as the wider community. An independent and comprehensive impact assessment exercise will commence early in Portfolio analysis In , the GRDC undertook a comprehensive analysis of its R&D investment portfolio, in terms of: project type pure basic, strategic basic, applied and experimental research project size research areas delivery time to growers of R&D products and services financial benefits to growers risk public good, market failure industry good, and industry good. The analysis has provided a greater understanding of the characteristics of the current portfolio, and is expected to facilitate the development of a more balanced portfolio. Grains value driver analysis The GRDC worked on a grains industry value driver analysis (VDA) during , to prioritise the drivers of grower profitability, productivity and sustainability in the grains industry. As part of the VDA, two agroecological zones: Mallee agroecological zone and South-east Queensland agroecological zone, were studied. Preliminary results from the VDA show that larger farm size, greater land use intensity, superior water use efficiency and higher cash receipts are some of the characteristics of better performing farms. The VDA is also expected to facilitate the development of a more balanced R&D investment portfolio. ENABLING FUNCTIONS 69

74 Commercialisation GRDC ANNUAL REPORT The GRDC s primary aim is to make new technology available to grain growers as quickly and as cost-effectively as possible. In some cases, the benefits of GRDC research investments can be most efficiently delivered to our growers through the commercial production of the research outputs. Commercialisation is a means of delivering technology to Australian grain growers so that they can effectively compete in global grain markets, and securing technology adoption. Commercialisation strategy The GRDC achieves its objective in commercialising research outputs through: ensuring commercialisation activities are aligned with the GRDC s four core strategies and are relevant to the strategies of the four output groups (Varieties, Practices, New Products and Communication & Customer Services). leveraging capital and expertise from coinvestors, to maximise opportunities to bring technology to the marketplace and give grain growers access to technology developing comprehensive business plans for delivering satisfactory returns to grain growers and investors. As part of the overall commercialisation strategy, the GRDC recognises that, after the proof-ofconcept stage, the following are necessary for commercialisation: a sustainable market size, expertise, funds, and distribution channels. Investments in joint ventures and companies will be based on the merits of business cases that demonstrate these attributes. Usually the GRDC is only one of a number of organisations investing in the development of new technologies by public and/or private organisations. Investment partnerships are desirable and necessary, because they reduce the risk to the GRDC in the funding of new technologies, and because partner organisations can bring benefits, apart from financial resources and research capability, such as market knowledge and access to complementary technologies. In selecting investment structures, the GRDC follows its internal guidelines and identifies and implements the most appropriate structure for holding its equity in each business arrangement. The GRDC ensures that all commercial entities with which it is involved have appropriate boards that possess the broad range of skills required to manage a business. Where the GRDC is a member of a consortium using public and private sector funds, it has influence over the terms of commercialisation, and determines these in collaboration with the other investors to ensure that a proper balance is struck among the needs of all members of the research consortium. The GRDC continues to seek new business opportunities that arise from its research portfolio, with the aim of providing benefit to growers, to the businesses undertaking the commercial development of new products, and to the GRDC and its research partners. For each commercial business opportunity, the GRDC seeks investment of resources from partners that will profit from the development and widespread uptake of the new technology. This is an important part of using GRDC investment funds to leverage funds from other sources including, in this area, commercial investment funds for the benefit of growers. Commercialisation outcomes Every commercialisation task is unique, and the process of bringing products and technology to market must be undertaken on a project-by-project basis. A cross-section of commercialisation work undertaken in is described below. New crop varieties In , the GRDC was actively involved in the release and commercialisation of several new crop varieties. The GRDC s primary objective was to encourage rapid adoption of the new, superior varieties by growers, while protecting the interests of the intellectual property owners. 70

75 In selecting commercial partners, the GRDC takes into consideration capabilities such as the ability to produce quality seed, the ability to market seed successfully, and the targets for seed production and variety uptake. The management and collection of End Point Royalties (EPRs), including the terms and conditions imposed on growers, are also taken into consideration. The new varieties commercialised in included: EGA Burke A, a noodle wheat with a yield advantage over comparable varieties in northern New South Wales as well as excellent disease resistance Binnu A, an udon noodle wheat suited to Western Australian conditions, with competitive yields as well as improved quality and disease resistance Gladius A, a broadly adapted wheat with the ability to out-yield currently grown varieties in lower yield potential areas under drought stress Jandaroi A, a durum wheat which offers the advantage of quick maturity Flipper A, a tall, medium-seeded chickpea variety suited to the higher rainfall areas of New South Wales Yorker A, a medium to large seeded chickpea ideally suited to the whole-seed export market three peanut varieties Ashton A, Sutherland A and Walter A two lentil varieties Nipper A (red lentil) and Boomer A (green lentil) Dune A, Australia s first variety of canola-quality juncea, which provides grain growers in lower rainfall areas with a profitable and reliable rotation crop. New grain storage fumigant GLO2 is a new insecticidal fumigant, developed by CSIRO with research investment from the GRDC, and designed initially for use in the grains industry. In particular, GLO2 was designed to provide a multi-functional grain treatment that is relatively inexpensive, is easy to handle and administer, and can be used effectively on-farm in both sealed and unsealed silos and other grain storage containers such as bins. A registration package is being developed by the CSIRO Entomology team to allow the product to be introduced to the market. Concurrently, discussions are taking place with a number of commercial partners with the potential to manufacture and distribute GLO2 in Australia and around the world. Objective grain quality testing The first of the technologies to be delivered from the GRDC-supported Objective Grain Quality Testing project is a rapid and cost-effective alternative to the falling number test. Negotiations are being progressed with potential commercial partners to bring the test to market. This technology, when developed into an instrument, will potentially become the international standard for the measurement of weather-damaged grain. While wet finishes to a season have been rare for most Australian growers this decade, there is a need for a rapid and objective measurement to replace the current test method, which frustrates growers because of its slowness, complexity and lack of accuracy. The final year of the Objective Grain Quality Testing project has been designed to allow collaborative R&D with commercial partners, ensuring a smooth transition of the work on key technology packages to partners and, through them, to market. High-amylose wheat In November 2006, the GRDC signed a joint venture agreement with CSIRO and the French grower-owned company Groupe Limagrain. The joint venture, now called Arista Cereal Technologies Pty Ltd, was established to develop high-amylose wheat technologies to a profitable commercial end point. Arista is in the early stages of commercialising a high-amylose wheat product. Final development of its baking properties and the way it incorporates into various baked products is being completed. The commercialisation strategy is being developed to determine the best pathway to market for the product, with a view to providing samples for evaluation by a range of Australian and international partners in COMMERCIALISATION 71

76 CASE STUDY Joint venture delivers affordable genotyping services to researchers and breeders Triticarte Pty Ltd is an incorporated joint venture between the Value Added Wheat CRC Ltd (in which the GRDC is a major partner) and DArT Pty Ltd. Triticarte s objective is to deliver low-cost, high-throughput, whole-genome genotyping services to wheat and barley breeding programs in Australia. The use of molecular marker technologies in breeding valuable crops started in the mid- 1980s, and technologies have progressed significantly since that time. In 2001, DArT Pty Ltd was formed to develop and commercialise Diversity Arrays Technology, an affordable, Australian-owned molecular marker technology for whole-genome analysis. Most older marker systems have proved too costly and ineffective for whole-genome analysis in cereals. Hence, the Value Added Wheat CRC identified the opportunity and need to provide a low-cost, whole-genome genotyping service for wheat and barley, using DArT technology. When a pilot project to test and evaluate the use of DArT for wheat and barley proved successful, Triticarte was established in Triticarte has been routinely delivering genotyping services for wheat and barley for the past three Dr Andrzej and Margaret Evers review results from DArT analysis. years. During , Triticarte analysed more than 12,500 samples, producing approximately four million data points. Its services have been delivered to Australian researchers and breeders and to an increasing number of international customers. GRDC ANNUAL REPORT The challenge for Triticarte is to remain viable as competing technologies and organisations seek a share of the success of the genotyping services. As the Australian Government contract for the Value Added Wheat CRC approaches its end (in June 2008), Triticarte is managing a strategic transfer of the CRC s share in the venture to assure continued business success. 72

77 Business relationships Most of the GRDC s business relationships are governed by contracts, such as research agreements and the licensing of the resulting intellectual property. However, in several cases the most effective way to encourage adoption of innovation in the grains industry is to establish a company or unincorporated joint venture. Key reasons for deciding to set up a company or joint venture include more effective management of intellectual property; more focused governance; ease of interaction with the private sector; and, in the case of CRCs, government policy. Table 6 describes the companies which the GRDC had shares or membership in In most cases the GRDC also nominated one or more directors to the company s board. Table 6 Companies in which the GRDC has shares or membership Name Activity GRDC role Companies limited by guarantee ACAS Ltd Provides cereal variety details online for Is a member of the company and farmers, manages the National Variety Trials provides a research contract Nominates a director Agrifood Awareness Ltd Provides information about gene technology Is a member of the company and to enable informed debate provides research funding Nominates a director CRC NPB Ltd Serves as the management company for the Is a member of the company and Cooperative Research Centre (CRC) for provides a research contract National Plant Biosecurity Export Grains Centre Ltd Invests in plant breeding Is a member of the company and provides a research contract Nominates two directors Grain Foods CRC Ltd Develops innovative grain products Is a member of the company and provides a research contract Nominates a director Go Grains Health and Identifies and communicates the health Is a member of the company and Nutrition Ltd benefits of grain food products provides research funding Nominates a director Pulse Australia Ltd Provides leadership for the development of Is a member of the company the pulse industry in Australia Nominates a director Value Added Wheat CRC Ltd Serves as the management company for the Is a member of the company Value Added Wheat CRC Nominates a director Tasmanian growers Bill Chilvers, Michael Chilvers and Rob Bradley at their Longford property. Photo: Melissa Marino COMMERCIALISATION 73

78 Table 6 Companies in which the GRDC has shares or membership (continued) Name Activity GRDC role Companies limited by shares Arista Cereal Technologies Pty Ltd Undertakes development of high-amylose Is a 9.4% shareholder and wheat nominates one director Australian Centre for Plant Conducts functional genomics research into Is a 21% shareholder in the Functional Genomics Pty Ltd abiotic stress company, in return for providing funding of $10 million over five years Australian Grain Technologies Undertakes commercial wheat breeding Is a 45% shareholder and Pty Ltd provides research contracts Nominates three of the seven directors Australian Weed Management Serves as the management company for the Has a beneficial interest in one Pty Ltd CRC for Australian Weed Management share of the company Philom Bios (Australia) Pty Ltd Develops and markets inoculant products Is a 50% shareholder and to benefit growers provides research contracts Nominates two of the four directors Intellectual property management The GRDC usually owns a share of all intellectual property generated by research projects it funds. This consists of registrable intellectual property (plant breeder s rights, patents and trademarks) and non-registrable intellectual property (copyright and trade secrets). The corporation actively manages its intellectual property, to: ensure that research outcomes are adopted as quickly and effectively as possible, by either dissemination or commercialisation provide access to GRDC intellectual property and gain access to third-party intellectual property where it will facilitate the delivery of research outcomes to our stakeholders. Plant breeder s rights In the GRDC and its research partners: lodged 17 new plant breeder s rights applications withdrew one new plant breeder s rights application surrendered 19 Certificates of Plant Breeder s Rights. Trademarks The corporation lodged one trademark application in , and maintained all of its existing trademarks. Subsidiaries During the year the GRDC had no subsidiaries. GRDC ANNUAL REPORT The GRDC (together with research partners) registers intellectual property where to do so will achieve the above objectives, and maintains a register of its registered intellectual property. Patents The GRDC continued to file and prosecute a number of patent applications and to maintain a number of patents, each time in conjunction with research partners. 74

79 Environmental objectives The Board revised the GRDC s environmental policy in February 2007, to state: The GRDC is committed to investing in RD&E that addresses the environmental priorities of its stakeholders and underpins the sustainable development of an internationally competitive Australian grains industry. The GRDC seeks investments that address the environmental concerns represented in the Australian Government s National Research Priorities and rural R&D priorities (as shown in Table 4), and provide both short-term and long-term economic, environmental and social benefits for the corporation s industry and community stakeholders. Such investments have a strong focus on identifying profitable solutions to environmental challenges, because profitable solutions are likely to be adopted as long as they are compatible with existing operations and easily implemented. An assessment of the investment portfolio carried out through the Industry Working Group on Natural Resource Management during found that the GRDC was the leading investor in projects directed at achieving a beneficial soil and water outcome for agricultural industries. The following sections describe some of the environmental successes arising from GRDC investments in Many of these successes have been achieved in collaboration with other rural R&D corporations, Australian Government and state government bodies, regional natural resource management organisations and grower groups. The energy-efficient practices the GRDC applies in its own work are discussed in Part 3. Measuring biodiversity in mixed farming systems Complementing the successful, regionally based mixed-farming projects of the Grain and Graze program, a national Biodiversity in Grain and Graze project has been established to study broader questions about mixed farming systems. A research team in Tasmania has designed 47 mixed-farming case studies to examine the relationships between biodiversity and on-farm production. The case studies will assist in developing a better understanding of the range of biodiversity in the mixed-farming systems, and help researchers to answer questions such as: Can farms be managed to improve ecosystem services and profitability? Does enterprise diversity on-farm lead to increased biodiversity? Is there is a relationship between site conditions, land use, landscape, terrain and biodiversity? Has rotational farming increased biodiversity, compared with monoculture farming? The project is collecting information on soils, vegetation, invertebrates (beetles, spiders and ants) and birds. Each case study monitors four paddocks on a single farm: a cropping paddock that has been in a crop rotation for at least three years a paddock in the break crop (lucerne or annual legume) phase of a rotation a perennial pasture paddock that has been established for at least three years an area of remnant vegetation. The data collected in suggests that there is a high level of diversity and functionality in all systems. Building healthy soils for sustainable farms The GRDC is a partner in the Healthy Soils for Sustainable Farms Program, which is working with farmers, community groups and researchers to bring together and build on existing information about soil health. The program offers the benefits of a national approach, linking industries and regions to assist the adoption of more coordinated, concerted and cost-effective approaches to improve soil health across Australia. The GRDC has investment links to the knowledge base and education aspects of the program, and to three particular projects: a project to improve farmers capacity to manage soil health issues in south-east Australia. In , the project used 21 paired demonstration sites and involved 820 farmers in farmer workshops. Training was also provided for 70 private sector and 30 public sector advisers, through adviser workshops. ENVIRONMENTAL OBJECTIVES 75

80 a project to improve access to soil management information for northern broadacre cropping industries. The project aims to develop a reference manual and database; deliver training workshops, materials and extension publications; develop tools for on-farm benchmarking, assessment and monitoring of soil health; and report on participatory on-farm research. a project to develop a state-wide soil health monitoring program in Western Australia. Soil health indicators will be linked to profitable on-farm outcomes by the project s economic analysis of best practice management options and their impacts on soil health. Managing climate variability in a changing environment The GRDC is the major investor in the Managing Climate Variability Program (MCVP), which has three key objectives: to improve seasonal climate forecasting, in terms of accuracy, lead-time and ease of use to provide tools and services for managing climate risk to increase the adoption of climate risk management. Through the MCVP, a forecasting tool called Yield Prophet has been developed and made available to growers to assist in risk management decisions. Yield Prophet assesses how the current season Southern Oscillation Index (SOI) is behaving in relation to similar SOI conditions in the previous 100 years, and presents yield probabilities. The forecast can be used to maximise returns from good finishes and minimise losses from poor seasons. Another decision support tool, Whopper Cropper, is being developed for use across all Australian cropping zones. Originally released in the northern cropping region, the computer-based risk management tool is based on the Agricultural Production Simulation Model (APSIM). Compared to Yield Prophet (also based on APSIM), Whopper Cropper is useful in making strategic rather than tactical crop management decisions: for example, should I plant a crop this season rather than should I apply a late-season nitrogen application. A comparative assessment of the usefulness of a range of decision support tools in making withinseason management decisions was completed in The project compared Yield Prophet and the Potential Yield Calculator and found that, while both tools added value to growers crop management decisions, a good knowledge of starting soil water was critical to the usefulness of Yield Prophet. GRDC ANNUAL REPORT The GRDC supports a number of programs that aim to help growers manage the impact of climate change and climate variability. Photo: Brad Collis The MCVP is also supporting the development of a new approach to targeted seasonal forecasts. In , the project identified that 51 percent of north-west Victoria s growing season rainfall over the past 35 years had been caused by cut-off lows, as opposed to cold fronts and other weather systems, and as much as 70 percent of the heavier rainfall events could be attributed to cut-off lows. A cut-off low is an isolated low-pressure system that has broken away from a low-pressure belt to the south, and extends vertically through much of the atmosphere. By observing the Bureau of Meteorology s four-day forecasts, growers can track the likelihood of cut-off lows occurring and more accurately anticipate rainfall. A great strength of the GRDC s participation in the MCVP is the ability to share in much larger collaborations. For example, the MCVP is a partner in the South-east Australian Climate Initiative with the Murray Darling Basin Commission, the Department of Sustainability and the Environment Victoria, the Australian Greenhouse Office, the Bureau of Meteorology and CSIRO. 76

81 Knowledge of soil water reaches new depths Accurate information about soil water can improve the effectiveness of many aspects of cropping, including the choice of crop and variety, fertiliser rates, sowing time, seeding rate and row configuration. Knowing how to assess available stored water, and relate that knowledge to individual areas and particular crops, can improve management of soils and raise productivity. In , the GRDC supported a project with CSIRO Sustainable Ecosystems to train and assist growers across Australia to improve their knowledge of soil water. CASE STUDY One aim of the project is to ensure ready access to data about soil profiles representative of all growing areas. The database, known as APSoil, includes details such as water storage capacity at various depths, and the incidence of root constraints (such as high ph or salinity), for each soil listed. Such details can identify potential problems in sowing particular crops or varieties in particular areas. The collection of these details is carried out with grain growers, in a training environment. More than 400 soil profiles will be included on the database by the project s completion; in , 280 profiles were made available for downloading through apsru/products/apsoil/default.htm. To improve methods of measuring available soil water, the project is assessing emerging technology, using existing aids such as the computer program HowWet?, and adding value to more traditional methods of monitoring soil water such as coring or push-probing techniques. The project is also exploring ways to match soil water data with expected crop water requirements and likely rainfall scenarios, through the use of simulation tools such as APSIM, Whopper Cropper and Yield Prophet. CSIRO researcher Neal Dalgliesh (left) inspects a soil sample with agronomist Bill Long at a Yield Prophet workshop. Photo: Danny Le Feurve ENVIRONMENTAL OBJECTIVES 77

82 Single Vision Grains Australia In response to approaches from industry, in 2005 the GRDC Board agreed to facilitate the establishment of Single Vision Grains Australia (SVGA) for a period of two years, ending on 30 June 2007, at a cost of up to $1 million per year. SVGA was not a separate legal entity, but existed through a series of agreements with consultants, and was managed by an Interim Board. In line with industry recommendations, the Interim Board was independent of the GRDC and other industry organisations. Table 7 sets out the membership of the Interim Board at 30 June A key role for the Interim Board was to seek crossindustry support for SVGA s ongoing operation, and to advise on what form SVGA should take after the two-year establishment period. The ultimate goal was to create support for a pan-industry body to address common issues facing the grains industry. At the completion of the agreed two-year funding period, financial support from industry was not forthcoming. As a result, the GRDC Board resolved to abide by its original decision to only provide funding for SVGA to 30 June GM and biotechnology project Through this project SVGA established three taskforces to develop a green paper, analyse technical process management and develop and implement a communications strategy. Education In this project SVGA developed a scoping paper on education and training for the Australian grains industry, to build on GRDC work in education and to identify opportunities to improve coordination across the grains value chain. Wheat marketing In this project SVGA prepared a report on potential wheat marketing options, following an intensive industry consultation process including an industry survey and a series of meetings, forums and interviews. Storage and hygiene SVGA prepared a report addressing onsite storage issues, following a series of meetings, workshops and industry conferences. All reports produced by SVGA are available on the SVGA website, and the GRDC website, During its two years of operation, SVGA addressed various industry-wide issues that were identified by R&D task forces in By 30 June 2007, SVGA had undertaken six projects: Biofuels This project culminated in the launch of an internationally recognised green paper and the Single Vision Ten-point Plan. The plan attracted much attention and was received positively by industry and other stakeholders. Infrastructure This project resulted in the development and distribution of three issues papers and a strategy paper for the grains industry and transport organisations, and achieved constructive involvement and feedback from industry stakeholders. GRDC ANNUAL REPORT Table 7 Single Vision Grains Australia Interim Board as at 30 June 2007 Position Occupant Industry expertise Chair Ian MacKinnon Grain production Director Christine Hawkins Finance, corporate structures, industry strategy and restructuring Director Philip Young Grain production, plant breeding and international consultancy (also a member of the GRDC Board) 78

83 PART 3 Our Organisation Accountability 80 Corporate governance 84 Board 86 Advisory panels and program teams 91 Our people 93 79

84 Accountability GRDC ANNUAL REPORT The GRDC is accountable to its two key customer groups Australian grain growers and the Australian Government for its performance in addressing their identified priorities. The GRDC also meets its responsibilities under its governing legislation and the broader legal framework for Commonwealth statutory authorities. Accountability to the Australian Government Responsible Minister Under the Primary Industries and Energy Research and Development Act 1989 (PIERD Act), the GRDC is accountable to the Australian Parliament through the Minister for Agriculture, Fisheries and Forestry, the Hon. Peter McGauran, MP. The Hon. Sussan Ley, MP, Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, is responsible for R&D corporations, including the GRDC. Australian Government priorities The GRDC continues to proactively address the Australian Government s National Research Priorities and ministerial research priorities for rural R&D corporations. These priorities and the GRDC s achievements in meeting them during are discussed in more detail in Part 2. Statement of Expectations and Statement of Intent As a result of the Review of the Corporate Governance of Statutory Authorities and Office Holders (known as the Uhrig Review), Ministers are required to outline their expectations of agencies in a public Statement of Expectations. Each agency must then respond with a Statement of Intent which details how they will achieve the Minister s expectations. The Parliamentary Secretary, provided the GRDC with an initial Statement of Expectations on 1 March The GRDC responded with its Statement of Intent on 30 March The GRDC is acting in accordance with these statements. The Statement of Expectations and Statement of Intent are likely to be renewed in late 2007 and annually thereafter. The current statements are available on the GRDC website. Ministerial directions The PIERD Act and Commonwealth Authorities and Companies Act 1997 (CAC Act) provide that the responsible Minister (the Minister for Agriculture, Fisheries and Forestry) or the Finance Minister may direct the GRDC with respect to the performance of its functions and the exercise of its powers, or require it to provide information. In July 1998, the responsible Minister, the Minister for Primary industries and Energy issued a direction requiring the GRDC to comply with the reporting requirements of the Guidelines on Funding of Consultation Costs by Primary Industry and Energy Portfolio Statutory Authorities. On 1 December 2004, the Finance Minister issued the Finance Minister s (CAC Act Procurement) Directions 2004, requiring the GRDC to comply with the Commonwealth Procurement Guidelines. On 18 December 2006, the Finance Minister required the GRDC to provide an annual report on compliance and financial sustainability, under section 16(1)(c) of the CAC Act. The requirements are detailed in Finance Circular 2006/11 Compliance Reporting CAC Act bodies. The GRDC is complying with the directions. General policies of the government Under section 28 of the CAC Act, the Minister may notify the GRDC Board of any general Australian Government policies that apply to the GRDC. The GRDC had been notified of the following policies as at 30 June 2007: Commonwealth Fraud Control Guidelines 2002 Finance Circular No 2006/06 Foreign Exchange (FOREX) Risk Management (replacing Finance Circular 2002/01) Finance Circular 2005/09 Cost recovery policy (replacing Finance Circular 2002/02) National Code of Practice for the Construction Industry and the associated Implementation Guidelines Protective Security Manual The GRDC is complying with the notified policies.

85 Accountability to the grains industry Industry representative Under the PIERD Act, the GRDC is made accountable to Australian grain growers through the industry s representative organisation, the Grains Council of Australia (GCA). Grains industry priorities In setting directions for (the last year of Driving Innovation), the GRDC identified industry priorities through consultation with the GCA and through grain grower workshops. The key industry priorities were incorporated into the GRDC Annual Operational Plan and included: sustainability and resource management new and innovative product development development of new alliances and links to market bringing biotechnology to bear on sustainability and consumer benefit outcomes, to support profitable farming systems and access to premium markets effective and targeted transfer and adoption of technology and knowledge for Australian growers integrated pest management to minimise the total cost of pests, diseases and weeds, and to maintain options and control strategies genetic improvement and regional adaptation of new grain varieties for improved resistance to biotic and abiotic stress, and quality standards for specific end uses. Information on how the GRDC is addressing these priorities is provided in Part 2. The GRDC also consulted extensively with the GCA and its affiliate organisations to identify industry priorities when preparing the GRDC s Strategic R&D Plan , Prosperity through Innovation. Stakeholder report Each year the GRDC prepares a stakeholder report to assist the GCA to formulate advice to the Minister on setting the research levy rates which provide the basis for the corporation s income each year. In , for the first time, the GRDC also prepared a Growers Report. This 20-page report was a shortened form of the Annual Report, providing a reader-friendly summary of how the GRDC operates, the corporation s financial situation and highlights of research investments. It was circulated to growers and other Ground Cover subscribers in November Industry levy rates In , a levy rate of 0.99 percent applied to all leviable crops covered by the GRDC, with the exception of maize, which was levied at percent. The levies were imposed and collected as stipulated by the following legislation: Primary Industries (Excise) Levies Act 1999, supported by the Primary Industries (Excise) Levies Regulations 1999, Schedules 4, 12, 20 and 25 Primary Industries Levies and Charges Collection Act 1991, supported by the Primary Industries Levies and Charges Collection Regulations 1991, Schedules 8, 19, 29 and 34. Proceeds from levies in are recorded in Note 4C of the Notes to the Financial Statements. The GRDC paid the Australian Government Department of Agriculture, Fisheries and Forestry $554, 028 for the collection and management of levies in Consultation arrangements The GRDC paid the GCA $66, 873 for its participation in consultations with the corporation during The GCA used these funds to meet its costs of preparing for and attending consultative meetings with the GRDC, to consider grains industry strategic directions and concerns and to assess the corporation s performance against industry expectations. The payments for consultation were made under the Guidelines on Funding of Consultation Costs by Primary Industries and Energy Portfolio Statutory Authorities, issued by the Minister for Primary Industries and Energy in July The guidelines also require that when a representative organisation conducts a project or consultancy on behalf of a statutory authority, details are to be included in the authority s annual report. Table 8 lists the project funds and conference support that the GRDC provided to the GCA in ACCOUNTABILITY 81

86 Table 8 GRDC funding for Grains Council of Australia participation in projects and events, Contribution $ Australian Quarantine and Inspection Service Grains Industry Consultative Committee 10,500 Market Access Biosecurity Grains Industry Consultative Committee 12,210 Travel for Cairns Group Meeting 7,865 National Agricultural Commodity Marketing Association Market Standards and Trade Committee 4,026 Grain Industry Leaders Summit 28,297 Seed Industry Consultation and Seed Industry Reference Group 8,800 GRDC ANNUAL REPORT Obligations under the Commonwealth Authorities and Companies Act Accountability A system of accountability and reporting obligations for the GRDC, reflecting its obligations under the PIERD Act, is set out under the CAC Act. Under the CAC Act, the GRDC is obliged to: prepare an annual report (in the prescribed form, including a report of operations), and to give it to the responsible minister by 15 October each year (section 9) ensure that any subsidiary s financial statements are audited by the Auditor-General (section 12(1)) prepare and provide to the responsible minister interim reports during a financial year, if required by the Finance Minister by notice in the Gazette (section 13) prepare and provide budget estimates (section 14) provide the responsible minister (in writing) with particulars of any proposal of the GRDC to undertake any one of a number of significant events (section 15) keep the responsible minister informed of the operations of the GRDC and its subsidiaries and provide such reports, documents and information as that minister or the Finance Minister requires (section 16) ensure that the general policies of the Australian Government as notified to the corporation are carried out (section 28). Conduct of officers The CAC Act imposes specific standards of general conduct for directors and other officers. Sections 22 27P ensure that officers of Commonwealth authorities are subject to standards of conduct comparable to those required of officers of companies under the Corporations Act Subsection 22(1), which is a civil penalty provision, states: An officer of a Commonwealth authority must exercise his or her powers and discharge his or her duties with the degree of care and diligence that a reasonable person would exercise if he or she: (a) were an officer of a Commonwealth authority in the Commonwealth authority s circumstances; and (b) occupied the office held by, and had the same responsibilities within the Commonwealth authority as, the officer. The Act also obliges an officer to: exercise his or her powers and discharge his or her duties in good faith in the best interests of the corporation (section 23) not make improper use of his or her position or information to gain an advantage for anyone or cause detriment to the corporation or anyone else (section 24 and section 25). A director must disclose to a meeting of the Board the nature of any material personal interest in a matter to be considered by the Board and, unless otherwise determined by the Board or the Minister, ensure that he or she is not present at deliberations and does not take part in any decision on the relevant subject matter (section 27F to section 27K). 82

87 Sanctions A civil penalty regime is contained in the CAC Act (Schedule 2), to deal with any breach by directors of: annual reporting rules (section 11) their general duty to exercise care and diligence (section 22) their general duty to act in good faith (section 23) their duty to not make improper use of the position of director to gain an advantage or cause detriment (sections 24 and 25). Judicial decisions and reviews by outside bodies In the GRDC was not affected by judicial decisions, nor was its conduct the subject of any reviews by outside bodies. Independent audits The Auditor-General, under the CAC Act, is required to audit each Commonwealth authority s financial statements. In addition, the Auditor-General Act 1997 confirms the power of the Auditor-General s staff to carry out performance audits of Commonwealth authorities and, in this role, to obtain documents and information. The Auditor-General s Independent Audit Report on the GRDC for is presented on pages 98 and 99. Roberto Busi, Research Associate, spraying weed seedlings with herbicide at WAHRI. Photo: Evan Collis ACCOUNTABILITY 83

88 Corporate governance GRDC ANNUAL REPORT The GRDC places high value on continuously improving the organisation s corporate governance. Key activities in this area during included: detailed review of most polices and procedures the design and implementation of new business and fraud risk reports monthly reviews of business and fraud risks an external review of Board performance. Policies and procedures In continuously improving the GRDC s corporate governance, the corporation is guided by the Australian National Audit Office s Better Practice Guide: Public Sector Governance. The GRDC Operating Manual, which is available to the Board and all staff members, describes the corporation s: policies and procedures roles and responsibilities (including those of the Board and board committees) Code of Business Conduct and Ethical Behaviour approval authority schedule, which includes delegations general guidelines management manual. Risk management and fraud Risk management has been embraced throughout the GRDC as a tool to assess risks at the strategic, operational and project levels. The GRDC prepares a regular business environment report to the Board. This report is used to update the GRDC s situation analysis and identify developing risks. The Executive Management Team, in consultation with managers, updates the business risk assessment report and the fraud control action plan each month. The Board reviews these documents at each meeting. Acumen Alliance, the GRDC s internal auditors, conducted a business risk assessment of the GRDC, and prepared a fraud control plan, in the first half of During the outcomes were incorporated in new templates for the GRDC s business risk assessment report and fraud control action plan, and progressively communicated through staff training. The significant work undertaken by the GRDC to continuously improve risk management was recognised at the Comcover Awards for Excellence in Risk Management On 29 November 2006, the GRDC received a Highly Commended award in the Enterprise-wide Risk Management (small agency) category the only award presented in that category. The GRDC is pleased with Comcover s recognition and useful suggestions for further improvement. The GRDC will strive to continue improving its risk management framework in Quality assurance The GRDC s Quality Management System has ISO 9001:2000 quality assurance accreditation from SGS International Certification Services Pty Ltd. In , the GRDC will use quality assurance for continued business improvement. In , regular internal audits were conducted by a contracted certified auditor. In December 2006, the GRDC also had a very successful external surveillance audit conducted by SGS International Certification Services Pty Ltd. These audits demonstrate that the Quality Management System based on ISO9001:2000 is robust, is being used correctly and is a useful tool for business improvement. 84

89 Indemnities and insurance premiums for officers GRDC officers, including members of the Board, are insured by the GRDC against various liabilities that they may incur in their capacity as officers of the corporation. Since 31 January 1999, Comcover, the Australian Government s self-managed fund for insurance risks, has provided the necessary insurance cover. The Comcover insurance contract prohibits the GRDC from disclosing the nature or limit of the liabilities covered or the amount of premiums payable. Environmental objectives The GRDC is required to report annually on its performance in relation to ecologically sustainable development and other environmental issues discussed in section 516A of the Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act). The principles of ecologically sustainable development have been incorporated into the decision-making systems and processes of the GRDC, as required under the EPBC Act. At the strategic level, Driving Innovation articulates the GRDC s vision for an Australian grains industry that is both profitable and environmentally sustainable. The GRDC strategic business plan, The Way Forward, outlines how the GRDC is implementing that vision. At its February 2007 meeting, the GRDC Board adopted a new environment policy. This policy relates to the way GRDC engages its research, development and extension (RD&E) partners. The policy states that: The GRDC will invest in RD&E that addresses the environmental priorities of its stakeholders and underpins the sustainable development of an internationally competitive Australian grains industry. Privacy Commissioner The corporation s privacy policy and procedures form part of the GRDC Operating Manual. The GRDC s annual Personal Information Digest entry as at 30 June 2007 has been lodged with the Privacy Commissioner. The online digest may be viewed at the commissioner s website, Freedom of information The GRDC is required to comply with the Freedom of Information Act 1982 (FOI Act). No requests under the FOI Act were received during For more information about the GRDC s information product line, see Appendix 6 and Enquiries about access to documents and other matters relating to freedom of information should be directed during normal working hours to: Freedom of Information Officer Grains Research and Development Corporation PO Box 5367 KINGSTON ACT 2604 Telephone: Facsimile: Service Charter The GRDC provides a wide range of publications for government and grower stakeholders as well as the wider community. The GRDC Service Charter, available through outlines the corporation s commitment to delivering these important resources. It was also agreed that the Environmental Policy relating to the corporate office would be revised. The corporation currently has in place paperrecycling arrangements and, where operationally viable, purchases energy-efficient equipment. Energy-efficient practices are encouraged within the corporation s premises, to reduce energy consumption wherever possible. Part 2 of this annual report includes a discussion of how GRDC investments helped to achieve environmental objectives in CORPORATE GOVERNANCE 85

90 Board The GRDC Board is responsible for the stewardship of the corporation, and oversees corporate governance within the GRDC. Its other functions include setting strategic direction, and monitoring the ongoing performance of the business and of the Managing Director. Board members As illustrated in Figure 10, the Board has combined expertise in business management; corporate governance; commodity production; processing and marketing; finance; risk management; management and conservation of natural resources and the environment; R&D administration; science, technology and technology transfer; intellectual property management; and sociology. Figure 10 Members of the GRDC Board in Members as at 30 June 2007 Terry J Enright Chair (Non-executive) Reappointed: 3 August 2004, commencing 1 October 2004 for three years Member: Remuneration Committee Terry runs a grain and livestock business at Mt Barker in Western Australia. He is a member and former grains councillor of the Western Australian Farmers Federation. He was Deputy Chair of the GRDC from 1999 to 2002 and, prior to that, Chair of the GRDC Western Regional Panel for three years. He has over 15 years experience in directing research investment within the grains industry. From 1993 to 2003 Terry was Chair of the Albany Port Authority in Western Australia. He is currently an independent board member of Agricultural Research Western Australia. He is also Chair of the Council of Rural R&D Corporation Chairs and a member of the Department of Education, Science and Training standing committee on National Research Priorities. Peter F Reading BScAg (Hons), FAICD Managing Director (Executive) Appointed: February 2004 Peter has been Managing Director of the GRDC since February He is a Director of the Export Grains Centre, Enterprise Grains Australia and GrainGene III. He is also the inaugural Chair of Pulse Breeding Australia. Peter was previously the Managing Director of the Grain Pool Pty Ltd. Peter graduated from the University of Sydney with an honours degree in agricultural science. He commenced postgraduate studies in agronomy before leaving university to work for American Cyanamid in Australia, Asia and the United States. In Australia he subsequently worked for Incitec, British Oxygen Group Asia and the Grain Pool in Western Australia. GRDC ANNUAL REPORT Nicole Birrell M.Sc (LSE), FAICD, FFin Director (Non-executive) Appointed: 1 October 2005 for three years Chair: Finance, Risk and Audit Committee Nicole runs a risk management consulting business, and a mixed farming enterprise at Corowa, New South Wales. Nicole has more than 27 years experience in corporate and investment banking, most recently as Head of Operational Risk and Compliance for the ANZ s Institutional Financial Services division. Previously a Director of AusBulk Ltd and of the Australian Practice Nurses Association Inc., Nicole is currently a Director and member of the Audit, Compliance and Risk Committee of SMS Management and Technology Ltd; a Director of and Chair of the Risk & Compliance Committee of Superpartners Pty Ltd; and a member of the Programs Advisory Committee for the School of Applied Economics at Victoria University, Melbourne. 86

91 Figure 10 Members of the GRDC Board in (continued) Members as at 30 June 2007 Ross Johns AdDipBusMgt, FAICD Deputy Chair (Non-executive) Reappointed: 1 October 2005 for three years Member: Remuneration Committee and Finance, Risk and Audit Committee Ross lives and works in rural Victoria, and has been a grain grower for many years. He is an active member of the Victorian Farmers Federation and a Director of ABB Grain Ltd. He takes a keen interest in regional affairs, and has participated in many overseas marketing missions. He brings to the GRDC experience in grain production and marketing, business management, sociology, technology transfer and natural resource management. Steve Marshall BSc(Hons1), M.AppSc, FAIFST Director (Non-executive) Appointed: 1 October 2005 for three years Member: Remuneration Committee Steve has a background in food science and technology management. He was Managing Director of Goodman Fielder Ingredients Ltd from 1993 to 1998 and Technology Director of Goodman Fielder Ltd from 1999 to He is currently Deputy Chair of the Rural Industries R&D Corporation (RDC) and a Director of the Australian Rural Leadership Foundation. Don Plowman BScAg, MScAg, PhD Director (Non-executive) Reappointed: 1 October 2005 for three years Don is the Executive Director Agriculture and Wine at the South Australian Department of Primary Industries and Resources. He has more than 25 years experience in managing research, including as a director with the Horticultural RDC and the Dried Fruits R&D Council, and as a board member for numerous cooperative research centres (CRCs). His particular areas of expertise are in administration, R&D, the environment and ecology, natural resource management and technology transfer. Timothy Reeves B.Sc(Hons) FTSE Director (Non-executive) Appointed: 1 October 2005 for three years Timothy Reeves is a consultant specialising in national and international agricultural R&D. He has worked for 39 years in agricultural research, development and extension, mostly focused on sustainable agriculture. His recent roles include: Member, United Nations Millennium Project Task Force on Hunger; Chair, New South Wales Agricultural Advisory Council on Gene Technology; Member, European Commission Expert Group for Evaluation of Framework Projects; Chair, Academic Advisory Board on International Community and Development Studies, Deakin University; and Professorial Fellow, Melbourne University. His professional career includes positions in the Department of Agriculture, Victoria; Foundation Professor of Sustainable Agricultural Production, Adelaide University; and Director General of the International Maize and Wheat Improvement Center (CIMMYT) based in Mexico. He is a former President of the Australian Society of Agronomy, and has received international and national honours. BOARD 87

92 Figure 10 Members of the GRDC Board in (continued) Members as at 30 June 2007 Philip Young BAgS, MEcon Director (Non-executive) Appointed: 1 October 2005 for three years Member: Finance, Risk and Audit Committee Philip has been an international agricultural and agribusiness consultant for the past 25 years, with a focus on China. He owns a share-farmed intensive grain production property at Munglinup on the south coast of Western Australia. He was the inaugural Chair of Australian Grain Technologies Pty Ltd from 2003 to 2005, and was appointed to the Interim Board of Single Vision Grains Australia in Departing member Russell Phillips BEc, Grad.Dip.Comp, Grad.Dip.AppFin/Inv Government Director (Non-executive) Appointed: 31 August 2005 Position ceased: 28 May 2007 Member: Finance, Risk and Audit Committee Russell is the General Manager for Wheat, Sugar and Crops in the Australian Government Department of Agriculture, Fisheries and Forestry. His team is responsible for providing policy advice and implementing a number of programs that contribute to the global competitiveness of Australia s food and agriculture industries. He has 25 years experience in public policy and administration covering agriculture, transport and competition issues in a range of Australian Government departments and international agencies. GRDC ANNUAL REPORT Change of membership structure Prior to June 2007, the GRDC Board was composed of nine directors, including the Government Director, Russell Phillips. The position of Government Director was removed by changes made to the PIERD Act in The GRDC ceased to have a Government Director from 28 May Selection Committee The Selection Committee, a committee chosen by the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry on advice from the GCA, nominates between five and seven GRDC directors. Appointment of directors nominated through this mechanism is subject to ministerial approval. The Parliamentary Secretary selects and appoints the Chair of the Board. The Managing Director is selected by the Board, and holds office at the corporation s pleasure. GRDC directors are appointed for three-year terms. No board appointments were made during Board Secretary Geoff Budd, GRDC General Counsel, is the Board Secretary. The role of the Board Secretary is to: ensure the correct recording of Board minutes, resolutions and action plans help ensure that action plans are closed out within agreed time frames prepare Board agendas collate and distribute Board papers and other related documents. Committees The Board receives formal reports from its committees, and any decisions the Board makes in relation to the reports are recorded in the minutes of the subsequent Board meeting. Terms of reference are in place for each of the committees described in Table 9. 88

93 Table 9 Board committees as at 30 June 2007 Committee Role Membership Finance, Risk and Audit Assist the Board in fulfilling its corporate governance At least three non-executive Committee responsibilities. directors. Review the corporation s financial reporting process, internal control system, risk management strategy and processes, internal and external audits, and process for monitoring compliance with laws and regulations and the Board s code of conduct. Review the corporation s financial statements. Remuneration Committee Review and make recommendations to the Board on The Chair, the Deputy Chair matters relating to the remuneration and performance and one other director. of the Managing Director. Review advice from the Managing Director on remuneration and performance policy for the corporation. Meetings The GRDC Board holds seven meetings every 12 months: four full quarterly meetings and three other meetings. The latter meetings are combined with visits to the GRDC regions, so that the Board visits each region at least once every 12 months. During the Board visited Horsham (Southern Region), Narrabri and Moree (Northern Region) and Perth (Western Region). Each director s attendance at Board and Board committee meetings during the year is set out in Table 10. Table 10 Attendance at Board and committee meetings, Finance, Risk and Remuneration Members Board Audit Committee Committee Meetings Meetings Meetings Meetings Meetings Meetings attended held and attended held and attended held and eligible eligible eligible to attend to attend to attend Terry Enright Nicole Birrell Ross Johns Steve Marshall Timothy Reeves 7 7 Russell Philips Don Plowman 7 7 Peter Reading Philip Young BOARD 89

94 Roles, responsibilities and code of conduct The roles and responsibilities of members of the Board, and their code of conduct, are documented in the GRDC Operating Manual. To request a copy of the manual, telephone the GRDC on or send an to grdc@grdc.com.au. Induction and training New board members go through a formal induction process, and there is a process of continuous education for all directors. Disclosure of interests Directors must comply with the CAC Act s requirements regarding material personal interests and with the GRDC s policy and procedures for conflict of interest. The Board reviews declarations of conflicts of interest at the start of each Board meeting and directors regularly update their conflict of interest declarations. Independent professional advice With the Chair s approval, directors may obtain independent professional advice, at the GRDC s expense, on matters arising in the course of their Board and committee duties. Relationship with the Executive Management Team The Executive Management Team (EMT) has seven members: the Managing Director, and the executive managers from each of the six management groups (the four output groups and two enabling functions). The management structure is shown in Figure 7 in Part 1. The EMT has an advice and implementation role in relation to the Board. The team investigates and recommends matters for the Board to consider. It also implements Board decisions in accordance with approved policies and procedures, including an approval authority schedule that sets out the necessary delegations. To ensure that the GRDC s operations are monitored and managed efficiently and effectively, the EMT meets regularly, and maintains and updates an annual business schedule. Performance monitoring and review At the start of each year the Board sets its annual key performance objectives. At each meeting the Board uses a checklist to review performance against those objectives. In 2006, the Board engaged Blake Dawson Waldron to conduct a detailed review of the Board s performance, including by testing the Board s performance against the findings and recommendations of the reviews conducted by Blake Dawson Waldron in December 2004 and December 2005 (the earlier reviews are described in the and annual reports). Blake Dawson Waldron provided its latest report in February The Board and management are addressing the findings and implementing the recommendations of the review. GRDC ANNUAL REPORT Charlie Boyle during seeding on the family property east of York, WA. Photo: Evan Collis 90

95 Advisory panels and program teams The panel system is a key strength of the GRDC. The Board makes decisions with the support of a national advisory panel, informed by the knowledge and experience of three regional panels and four program teams. This network helps to ensure that GRDC investments are directed towards the interests of all its stakeholders and the strategic objectives of its programs. National Panel The National Panel comprises the three regional panel chairs the GRDC s Managing Director and the GRDC s executive managers. The National Panel addresses national R&D priorities across the GRDC s investment portfolio and advances recommendations to the Board. In assisting the Board, the panel s key advice functions include reviewing program investment plans; reviewing budget development and allocations; recommending strategic changes in allocations; arbitrating issues of investment allocation and investment strategy; and endorse review recommendations. The National Panel also plays a major role in communicating with research partners and stakeholders. Regional panels The GRDC s three regional panels are composed of grain growers, agribusiness representatives, researchers and the GRDC executive managers, with provision for other industry experts to participate as appropriate. Regional panel members also participate as members of GRDC program teams. The regional panels develop and monitor the strategic direction for the regional elements of the GRDC s R&D investments (details of the regions are provided in Figure 8 in Part 1). Supported by the GRDC program managers, panel members assess investment proposals based on selection criteria, and undertake risk analysis of the potential investments. The panels are also responsible for ensuring that investment strategy is responding to the regional and national priorities of stakeholders. The GRDC Operating Manual covers roles, responsibilities, codes of conduct, remuneration and selection guidelines for panel members. Panel members as at 30 June 2007 are listed in Table 11. Table 11 Regional panel membership as at 30 June 2007 Chair Deputy Chair Members Northern Regional Panel Ian Buss Di Bentley a James Clark David Freebairn John Harvey Richard Heath Chris Joseph Iftikhar Mostafa John Sheppard Graeme Wright Bill Yates Southern Regional Panel David Shannon Mark Peoples Jeffrey Arney Andrew Barr Merna Curnow Vic Dobos Barbara Howlett Vince Logan Graeme Lukey Allan Mayfield Andrew Rice David Wolfenden Western Regional Panel Neil Young b Robert Belford Ralph Burnett David Capper Merrie Carlshausen Ben Curtis Greg Fraser Richard Oliver Gavin Whiteley Ruth Young a Resigned on 10 June b Replacing Dale Baker, who retired on 31 December ADVISORY PANELS AND PROGRAM TEAMS 91

96 Program teams Each of the GRDC s four program teams comprises program managers, panel members from each of the three regions, an executive manager and a panel chair. Depending on the size and complexity of the portfolio, some program teams comprise several subprograms (as shown in Table 12). Each program team is responsible for developing, implementing and reviewing the investment strategy within its output group. Other activities include evaluating projects, prioritising potential investment opportunities and monitoring project performance. Table 12 Program teams as at 30 June 2007 Program team Varieties Practices New Products Communication & Customer Services Subprogram teams Pre-breeding Breeding Agronomy, soils and environment Crop protection Validation and integration Extension and grower programs New grain products and new farm products Capacity building and corporate communications GRDC ANNUAL REPORT The GRDC staff assembled at headquarters. 92

97 Our people Staff are important to the GRDC, and priority is given to looking after them. The GRDC acknowledges the importance of families, and is committed to helping staff maintain a balance between personal and family responsibilities and work responsibilities. Excellence is valued throughout the organisation, and staff take pride in their achievements as talent and hard work combine, through teamwork, to achieve the required organisational goals. Staff As at 30 June 2007, the GRDC had 52 full-time positions and employed 43 full-time staff members, including the Managing Director, as shown in Table 13. These staff were employed under s. 87 of the PIERD Act, which provides that the terms and conditions of employment are to be determined by the GRDC. The GRDC also engaged four program consultants, under s. 88 of the PIERD Act. Table 13 Staff as at 30 June 2007 Position Occupant Managing Director s area Managing Director Peter Reading Manager Communications vacant Executive Assistant Wynette Neil Executive Manager, Communication & Customer Services Vic Dobos Corporate Services Executive Manager Gavin Whiteley General Counsel Geoff Budd Corporate Lawyer vacant Compliance Officer Noelia Freitas Manager Finance Danielle White Accountant Reporting Nino Divito Contract Payments Officer Cathy Wells Accounts Payable Officer Kylie McLay Manager Human Resources Wendy Neil Records Management Coordinator Ross Thompson Travel Coordinator Sarah Smith Receptionist Ros Walton Administrative Assistant vacant Manager IT Facilities Tavis Hamer Network Administrator Bhargav Prajapati Webmaster vacant Network Support Officer vacant OUR PEOPLE 93

98 Table 13 Staff as at 30 June 2007 (continued) Position Occupant Corporate Strategy & Executive Manager Iftikhar Mostafa Program Support Business Analyst Vincent Fernandes Corporate Strategist Evaluation and Reporting Manager Procurement and Contracting Contracts Coordinator Administrative Assistant Panel Coordinator (National and West) Panel Support Officer Panel Support Officer (North and South) Zoltan Lukacs Cathy Stewart Klaudia Skazlic Lauren Kennelly Julia Polkinghorne vacant Janine Corcoran Varieties Executive Manager John Harvey Administrative Coordinator Merrilyn Baulman Administrative Coordinator vacant Administrative Assistant vacant Manager Gene Discovery Andreas Betzner Manager Germplasm Enhancement Richard Brettell Project Manager Breeding Sara Hely Project Manager Pre-Breeding Jody Higgins Manager Wheat and Barley Breeding Leecia Angus Manager Pulse/Oilseed Breeding Brondwen MacLean Practices Executive Manager Greg Fraser Administrative Coordinator vacant Administrative Coordinator Angela Ditton Manager Agronomy Soils and Environment Martin Blumenthal Project Manager Practices Rohan Rainbow Manager Crop Protection John Sandow Manager Validation and Adoption Stuart Kearns Manager Extension and Grower Programs Tom McCue Manager Publications Maureen Cribb New Products Executive Manager Vince Logan Administrative Coordinator Bettina Garrett Manager New Farm Products and Services Paul Meibusch Manager New Grain Products John de Majnik GRDC ANNUAL REPORT Single Vision Grains Australia In , the GRDC funded two full-time positions and a part-time administrative position in Single Vision Grains Australia (as shown in Table 14), as well as an Interim Board consisting of five members. Table 14 GRDC-funded staff of Single Vision Grains Australia as at 30 June 2007 Position Chief Executive Officer Business Development Officer Executive Assistant (part-time position) Occupant Selwyn Snell Matt Kealley Michelle Fairbrother 94

99 Equal employment opportunity Staff are employed under terms and conditions consistent with the Equal Employment Opportunity (Commonwealth Authorities) Act 1987 and the equal employment policy set out in the GRDC Operating Manual. Table 15 shows the age and gender profile of GRDC staff for the past two reporting periods. Table 13 Breakdown of staff by age and gender yrs yrs yrs yrs >60 yrs Female Male Total % 20% 14% 28% 2% 56% 44% 100% % 23% 26% 23% 2% 49% 51% 100% Staff location Six management groups, including the professional staff who manage research contracts and investment opportunities, are housed in offices at the following Canberra address: Grains Research and Development Corporation First Floor 40 Blackall Street BARTON ACT 2600 The GRDC owns one floor of Tourism House at 40 Blackall Street. The GRDC does not own any research facilities. Performance management The GRDC has a structured approach to reviewing, recognising and improving performance. Measures of performance are aligned with the strategic direction of the organisation, and individual performance is rewarded through the annual bonus scheme, in which performance is assessed against agreed key result areas and performance indicators twice each year. Performance improvement and excellence is encouraged, and individual efforts and behaviour are identified and rewarded. Until the end of its operations on 30 June 2007 Single Vision Grains Australia operated from a rented office at: Suite 17 Level 2 2 Loraine Street CAPALABA QLD 4157 Code of conduct The GRDC Code of Business Conduct and Ethical Behaviour is published as part of the GRDC Operating Manual, and copies of the code are publicly available upon request. New staff members are introduced to the code during induction, and presentations on the code are made to staff at regular intervals. All staff have access to the code via the policies section on the GRDC intranet. Recruitment, training, retention and succession management In a climate of increasing labour shortages the GRDC is faced with strong local competition. Increasingly, the recruitment process looks for the relevant skills and the right people organisation match. The GRDC aims for an honest and open exchange of information in order to find this. New staff are given induction training during the first week, and induction information is available in hard copy as well as online for easy reference. Training is an extra reward benefit which is highly valued by many GRDC staff members. Training and development opportunities are identified to challenge staff and develop their capacity to perform both in their current roles and in future roles in the organisation. Attention is paid to helping staff find career paths that add direction and a sense of achievement to their roles. OUR PEOPLE 95

100 The GRDC values its people and seeks opportunities to demonstrate this. A formal succession management process takes place each year, and all staff are rated according to their potential to succeed in certain roles. Excellent performers may show potential to succeed other staff and be developed for that purpose. This allows retention of valuable industry knowledge across the organisation. All vacancies are advertised internally at first, which offers staff a chance to move up in new areas. Occupational health and safety The link between good health, enjoyment of work, productivity and excellence means the health and wellbeing of staff continue to be priorities at the GRDC. Some ways in which health and safety support are provided to staff are: promoting good nutrition by providing fresh fruit each week preventing injuries by increasing awareness of ways to prevent strains and injuries increasing awareness of stress and depression and ways to manage them, including through lectures by employee assistance program counsellors providing a free flu immunisation program providing a free employee assistance program and counselling service for all staff providing and maintaining safe plant, systems of work and access to and egress from the workplace improving hazard identification, risk assessment and risk control through health and safety representative training providing training on incident reporting and notification maintaining information and records relating to health and safety. During the year there were several instances of staff requiring extended sick leave. The GRDC was able to demonstrate its commitment to staff by an individual approach in each case, allowing in most cases a full and safe return to work. These instances showed a consistent application of policy, while allowing fairness and flexibility in accordance with the circumstances. Table 16 summarises the key elements of the GRDC s occupational health and safety performance during the year. Disability strategies The GRDC implements the requirements of the Disability Discrimination Act 1992 and the Commonwealth Disability Strategy to an extent which relates to the size and functions of the corporation, and as the need arises. If documents are presented on the internet, accessibility guidelines are followed and large print is available on request. The principle of reasonable adjustment is recognised and every effort is made to deal with concerns fairly. Table 16 GRDC occupational health and safety performance GRDC ANNUAL REPORT Indicators Training and awareness of occupational health and safety (OH&S) requirements Improved internal security arrangements Workplace facilities maintained to a high standard Performance Important activities conducted during the year included: training on emergency procedures for new staff senior first aid officer training for two staff members OH&S training for health and safety representatives the annual emergency building evacuation and fire drill the annual check and restock of the first aid kit the establishment of more extensive OH&S policies. Compliance with the Protective Security Manual was reviewed. The reception area was locked on close of business daily. Activities to ensure that facilities were well maintained during the year included: the twice-yearly inspection of fire extinguishers the annual radiation check of microwave ovens regular inspection of smoke detectors. 96

101 Financial statements Independent audit report 98 Statement by directors 100 Income statement 101 Balance sheet 102 Statement of changes in equity 103 Statement of cash flows 104 Schedule of commitments 105 Notes to and forming part of the 107 financial statements 97

102 Independent audit report GRDC ANNUAL REPORT

103 FINANCIAL STATEMENTS 99

104 Statement by directors In our opinion, the attached financial statements for the year ended 30 June 2007 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister s Orders made under the Commonwealth Authorities and Companies Act In our opinion, at the date of this statement, there are reasonable grounds to believe that the Corporation will be able to pay its debts as and when they become due and payable. The Statement is made in accordance with a resolution of the directors. Signed... Signed... Mr T J Enright CHAIRMAN Mr P F Reading MANAGING DIRECTOR GRDC ANNUAL REPORT

105 Income statement FOR THE YEAR ENDED 30 JUNE 2007 Notes $ 000 $ 000 INCOME Revenue Revenues from Government 4A 35,768 43,065 Interest 4B 5,015 5,673 Industry contributions 4C 50,868 60,861 Project refunds 4D 3,272 1,533 Royalties 4E 2,181 3,516 Other 4F Total revenue 97, ,136 TOTAL INCOME 97, ,136 EXPENSES Research and development 5A 103, ,329 Employee benefits 5B 5,634 5,165 Suppliers 5C 5,063 5,633 Depreciation and amortisation 5D Write-down and impairment of assets 5E 1, TOTAL EXPENSES 115, ,720 Share of operating results of associates and joint ventures accounted for using the equity method 6D (217) Surplus/(Deficit) before income tax (18,461) (11,584) Income tax expense SURPLUS/(DEFICIT) ATTRIBUTABLE TO THE AUSTRALIAN GOVERNMENT (18,461) (11,584) The Income Statement is to be read in conjunction with the notes to and forming part of the financial statements. FINANCIAL STATEMENTS 101

106 Balance sheet AS AT 30 JUNE 2007 Notes $ 000 $ 000 ASSETS Financial assets Cash and cash equivalents 6A 4,600 12,071 Receivables 6B 3,967 4,977 Investments 6C 86, ,872 Investments accounted for using the equity method 6D 83 Investments other 6E 4,849 4,229 Total Financial Assets 99, ,149 Non-financial assets Land and buildings 7A, D 5,750 4,590 Infrastructure, plant and equipment 7B, D Intangibles 7C, D Other non-financial assets 7E 72 Total Non-Financial Assets 6,381 5,584 TOTAL ASSETS 106, ,733 LIABILITIES Provisions Employee provisions 8A Total provisions Payables Suppliers 9A 1,155 1,072 Research and development 9B 38,432 41,859 Contributions not yet utilised 9C 361 1,727 Total payables 39,948 44,658 TOTAL LIABILITIES 40,752 45,318 NET ASSETS 65,274 82,415 EQUITY Retained surplus/(accumulated deficit) 7, Asset revaluation reserve 2,832 1,512 Capital commitment reserve 1,021 3,133 Contracted research reserve 53,917 76,813 TOTAL EQUITY 65,274 82,415 GRDC ANNUAL REPORT Current liabilities 38,092 43,523 Non-current liabilities 2,660 1,795 Current assets 94, ,992 Non-current assets 11,313 9,741 The Balance Sheet is to be read in conjunction with the notes to and forming part of the financial statements. 102

107 Statement of changes in equity FOR THE YEAR ENDED 30 JUNE 2007 Accumulated Results Asset Revaluation Reserve Contracted Research Reserve Capital Commitment Reserve TOTAL EQUITY $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 Opening Balance ,158 1,512 1,512 76,813 74,063 3,133 6,266 82,415 93,999 Adjustment for errors Adjustment for changes in Accounting policies Adjusted Opening Balance ,158 1,512 1,512 76,813 74,063 3,133 6,266 82,415 93,999 Income and Expenses Net Revaluation increment/(decrement) (Note 7B) 1,320 1,320 Subtotal income and expenses recognised directly in equity 1,320 1,320 Surplus/(Deficit) for the period (18,461) (11,584) (18,461) (11,584) Total income and expenses (18,461) (11,584) 1,320 (18,461) (11,584) Transfer between equity components 25, (22,896) 2,750 (2,112) (3,133) Closing Balance 30 June 7, ,832 1,512 53,917 76,813 1,021 3,133 65,274 82,415 The Statement of Changes in Equity is to be read in conjunction with the notes to and forming part of the financial statements. FINANCIAL STATEMENTS 103

108 Statement of cash flows FOR THE YEAR ENDED 30 JUNE 2007 Notes $ 000 $ 000 OPERATING ACTIVITIES Cash received Industry contributions 50,814 60,845 Commonwealth contributions 35,768 43,065 Interest 5,738 7,188 GST recovered from taxation authority (356) (1,016) Other 7,518 4,713 Total cash received 99, ,795 Cash used Research and development (108,175) (111,691) Employees (5,490) (5,149) Suppliers (4,916) (5,417) Total cash used (118,581) (122,257) Net cash used by operating activities 10(b) (19,099) (7,462) INVESTING ACTIVITIES Cash received Proceeds from sale of investments 18,597 49,784 Total cash received 18,597 49,784 Cash used Purchase of property, plant and equipment (120) (623) Purchase of investments (4,572) (38,663) Purchase of shares (2,277) (1,133) Total cash used (6,969) (40,419) Net cash from investing activities 11,628 9,365 Net increase/(decrease) in cash held (7,471) 1,903 Cash at beginning of reporting period 12,071 10,168 Cash at end of reporting period 10(a) 4,600 12,071 GRDC ANNUAL REPORT The Statement of Cash Flows is to be read in conjunction with the notes to and forming part of the financial statements. 104

109 Schedule of commitments AS AT 30 JUNE $ 000 $ 000 BY TYPE Capital Commitments Investments in shares 1,021 3,133 Total capital commitments 1,021 3,133 Other Commitments Operating leases Research projects forward program 120, ,205 Total other commitments 120, ,367 Commitments Receivable (10,996) (12,397) Net Commitments by type 110, ,103 BY MATURITY Capital Commitments One year or less 1,021 3,133 One year to five years Total capital commitments 1,021 3,133 Research Project Commitments One year or less 64,214 80,984 From one to five years 56,525 55,221 Over five years Research Projects commitments 120, ,205 Operating Lease Commitments One year or less One year to five years Over five years Total operating Lease commitments Commitments Receivable (10,996) (12,397) Net Commitments by maturity 110, ,103 NB: Commitments are GST inclusive where relevant. Capital commitments are GRDC's commitment to purchase shares in Arista Cereal Technologies Pty Ltd and Philom Bios (Australia) Pty Ltd. The Schedule of Commitments is to be read in conjunction with the notes to and forming part of the financial statements. FINANCIAL STATEMENTS 105

110 Schedule of commitments continued AS AT 30 JUNE 2007 Operating leases comprise: Nature of the lease Motor vehicles staff Photocopiers and fax machines General description of leasing arrangement Leased as part of salary packages No contingent rentals exist Photocopiers and fax machines have rental agreements for a period of 5 years, after this time they are usually replaced with new rental equipment Research project forward program commitments are amounts payable in respect of contracted Research Agreements held between the GRDC and research providers as at 30 June GRDC ANNUAL REPORT The Schedule of Commitments is to be read in conjunction with the notes to and forming part of the financial statements. 106

111 Notes to and forming part of the financial statements FOR THE YEAR ENDED 30 JUNE 2007 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of Preparation of the Financial Statements The financial statements are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997 and are a general purpose financial report. The financial statements have been prepared in accordance with: Finance Minister s Orders for reporting periods ending on or after 1 July 2006; and Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period. The financial report has been prepared on an accrual basis and is in accordance with historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial report is presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified. Unless alternative treatment is specifically required by an Accounting Standard or the Finance Minister s Orders, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow to the Corporation and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrealised are reported in the Schedule of Commitments and the Schedule of Contingencies. Unless alternative treatment is specifically required by an Accounting Standard, revenues and expenses are recognised in the Income Statement when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured. 1.2 Significant Accounting Judgements and Estimates The Corporation has made the following material estimates in relation to the carrying amounts of shares in unlisted companies: The valuation of unlisted shares held by the Corporation (as detailed in note 1.12) at each balance date is equivalent to the Corporation s share of net assets of each company. 1.3 Statement of Compliance Australian Accounting Standards require a statement of compliance with International Financial Reporting Standards (IFRSs) to be made where the financial report complies with these standards. Some Australian equivalents to IFRSs and other Australian Accounting Standards contain requirements specific to not-for-profit entities that are inconsistent with IFRS requirements. The Corporation is a not-for-profit entity and has applied these requirements, so while this financial report complies with Australian Accounting Standards including Australian Equivalents to International Financial Reporting Standards (AEIFRSs) it cannot make this statement. Adoption of New Australian Accounting Standard Requirements No Accounting Standard has been adopted earlier than the effective date in the current period. The following amendments, revised standards or interpretations have become effective but have had no financial impact or do not apply to the operations of the Corporation. FINANCIAL STATEMENTS 107

112 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 1.3 Statement of Compliance (continued) Amendments: Amendments to Australian Accounting Standards [AASBs 1, 132, 139, 1023, 1038] Amendments to Australian Accounting Standards [AASBs 1, 139] Amendments to Australian Accounting Standards [AASB 3] Amendments to Australian Accounting Standards [AASBs 4, 132, 139, 1023] Amendments to Australian Accounting Standards [AASB 1045] Amendments to Australian Accounting Standards [AASB 134] Amendments to Australian Accounting Standards [AASBs 1, 117, 118, 120, 121, 127, 131, 139] Interpretations: UIG 4 Determining whether an Arrangement contains a Lease UIG 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds UIG 6 Liabilities Arising from Participating in a Specific Market Waste Electrical and Electronic Equipment UIG 7 Applying the Restatement Approach under AASB 129 Financial Reporting in Hyperinflationary Economies UIG 8 Scope of AASB 2 UIG 9 Reassessment of Embedded Derivatives Future Australian Accounting Standard Requirements The following new standards, amendments to standards or interpretations have been issued by the Australian Accounting Standards Board but are effective for future reporting periods. It is estimated that the adoption of these pronouncements when effective will have no material financial impact on future reporting periods. Financial Instrument Disclosure AASB 7 Financial Instruments: Disclosures is effective for reporting periods beginning on or after 1 January 2007 (the financial year) and amends the disclosure requirements for financial instruments. In general AASB 7 requires greater disclosure than presently applicable. Associated with the introduction of AASB 7 a number of accounting standards were amended to reference the new standard or remove the present disclosure requirements through Amendments to Australian Accounting Standards [AASB 1, AASB 4, AASB 101, AASB 114, AASB 117, AASB 132, AASB 133, AASB 139, AASB 1023 and AASB 1038]. These changes have no financial impact but will affect the disclosure presented in future financial reports. GRDC ANNUAL REPORT Other The following standards, amendments to standards and interpretations have been issued but are not applicable to the operations of the Corporation Amendments to Australian Accounting Standards [AASB 121] Amendments to Australian Accounting Standards [AASB 2] Amendments to Australian Accounting Standards [AASB 1] Amendments to Australian Accounting Standards [AASBs 5, 6, 102, 107, 119, 127, 134, 136, 1023, 1038] Amendments to Australian Accounting Standards [AASB 102] Amendments to Australian Accounting Standards [AASBs 1, 101, 107, 111, 116, 138, Interpretations 1, 12] AASB 1049 Financial Reporting of General Government Sectors by Governments UIG 10 Interim Financial Reporting and Impairment UIG 11 Group and Treasury Share Transactions UIG 12 Service Concession Arrangements 108

113 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 1.4 Revenue The revenues described in this note are revenues relating to the core activities of the Corporation. Revenues from Government Revenue paid to the Corporation under Section 32 of the Primary Industries and Energy Research and Development Act 1989, representing 0.5% of the three-year moving average of gross value of production of grains, is for the purpose of funding research and development activities. Revenues from Government are recognised when they are entitled to be received by the Corporation. Industry Contributions Revenue paid to the Corporation under Section 30 of the Primary Industries and Energy Research and Development Act 1989, where a research levy is attached to grain producers output, is for the purpose of providing funds for research and development. Industry Contributions are recognised when they are entitled to be received by the Corporation. Interest Revenue Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement. Project Refunds Project Refunds are recognised upon receipt of the refund when it relates to prior years expenditure and when the funds accrued are not required for the completion of the project. Royalties Royalties are recognised when the royalty is entitled to be received by the Corporation. 1.5 Acquisition of Assets Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets (with the exception of investments in associates and investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured) are initially measured at their fair value plus transaction costs where appropriate. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition. 1.6 Property (Land and Buildings and Infrastructure), Plant and Equipment Asset Recognition Threshold Purchases of property, plant and equipment are recognised initially at cost in the Balance Sheet, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. Revaluations Fair values for each class of asset are determined as shown below: Asset Class Fair Value Measured at: Land Market selling price Building Market selling price Plant & equipment Market selling price FINANCIAL STATEMENTS 109

114 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 1.6 Property (Land and Buildings and Infrastructure), Plant and Equipment (continued) Following initial recognition at cost, property, plant and equipment are carried at fair value less accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially differ with the assets fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through surplus and deficit. Revaluation decrements for a class of assets are recognised directly through surplus and deficit except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount. Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives using, in all cases, the straight-line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following useful lives: Buildings on leasehold land 25 years 25 years Other Infrastructure, plant & equipment 3 to 5 years 3 to 5 years Assets Purchased with Research Payments Assets purchased with research payments may revert to the Corporation at the end of the research project period and will be accounted for appropriately at that date. During the financial year no research assets reverted to the Corporation. Impairment All assets were assessed for impairment at 30 June Where indicators of impairment exist, the asset s recoverable amount is estimated and an impairment adjustment made if the asset s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset s ability to generate future cash flows, and the asset would be replaced if the Corporation were deprived of the asset, its value in use is taken to be its depreciated replacement cost. No indicators of impairment were found for assets at fair value. 1.7 Intangibles GRDC ANNUAL REPORT The Corporation s intangibles comprise software for the new information management system and other software. These assets are carried at cost. Intangible assets are amortised on a straight-line basis over their anticipated useful lives as follows: Information management system 2.5 years 2.5 years Other intangibles 2.5 years 2.5 years All software assets were assessed for indicators of impairment as at 30 June

115 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 1.8 Employee Benefits Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled. Liabilities for short-term employee benefits (as defined in AASB 119) and termination benefits due within twelve months are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. Leave The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Corporation is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees remuneration, including the Corporation s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave has been determined by using the Australian Government shorthand method. In applying this method, the accrued long service leave for each employee as at reporting date is probability weighted, based on the Australian Government probability profile. The amount obtained for each employee is then discounted using the ten year Treasury Bond rate. The total estimated liability for the Corporation is the sum of the liabilities for each employee. Separation and Redundancy Provision is made for separation and redundancy benefit payments. The Corporation recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations. Superannuation Corporation staff contribute to the Commonwealth Superannuation Scheme (CSS), Public Sector Superannuation Scheme (PSS), Australian Government Employees Superannuation Trust (AGEST) or an approved superannuation scheme of their choice. The CSS and PSS are defined benefit schemes for the Australian Government. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. For CSS and PSS members, the Corporation makes contributions based on the rate determined by the Government Actuary, and for AGEST and other approved superannuation schemes, the Corporation contributes a minimum of 9% of superannuable salaries. Employer contributions amounting to $1,022,502 (2006: $689,262) in relation to these schemes has been expensed in the financial statements. 1.9 Leases A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all risks and rewards incidental to ownership of leased non-current assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits. The Corporation has no finance leases. Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets. FINANCIAL STATEMENTS 111

116 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 1.10 Cash Cash means notes and coins held and any deposits held at call with a bank or financial institution. Cash is recognised at its nominal amount Financial Risk Management The Corporation s activities expose it to normal commercial financial risk. As a result of the nature of the Corporation s business and internal and Australian Government policies, dealing with the management of financial risk, the Corporation s exposure to market, credit, liquidity and cash flow and fair value interest rate risk is considered to be low Investments Investments are initially measured at their fair value, and after initial recognition, measured at their fair values, with the exception of: a) investments in associates; and b) investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Investments in associates are accounted for under the equity method of accounting, and are initially recognised at cost. The Corporation s share of its associates post-acquisition profits or losses is recognised in the Income Statement and its share of post-acquisition movements in reserves is recognised in reserves. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured shall be measured at cost. The Corporation has acquired shares in the following start-up companies: Australian Grain Technologies Pty Ltd (holding: 45.83%); Australian Centre for Plant Functional Genomics Pty Ltd (holding: 20.99%); and Arista Cereal Technologies Pty Ltd (holding: 9.40%) respectively. The above companies conduct research and development activities relating to seed technology, new wheat varieties and high amylose wheat. The success and ability to generate future economic benefits are subject to uncertainty and the Corporation believes that this will impair the carrying values of the investments. The Corporation has established a Provision for diminution in share value to record a reduction in the value of these investments based on the Corporation s estimate of the trading performance of each company. A review of the trading performance will be done annually and the provision adjusted accordingly. The provision will remain effective until such time as the Corporation believes that the investment would generate sufficient future economic benefits from a successfully marketed product or service Derecognition of Financial Assets and Liabilities Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or the asset is transferred to another entity. In the case of a transfer to another entity, it is necessary that the risks and rewards of ownership are also transferred. Financial liabilities are derecognised when the obligation under the contract is discharged, cancelled or expires. GRDC ANNUAL REPORT Impairment of Financial Assets Financial assets are assessed for impairment at each balance date. Available for Sale Financial Assets If there is objective evidence that an impairment loss on an available for sale financial asset has incurred, the amount of the difference between its cost (less principal repayments and amortisation), and its current fair value, less any impairment loss previously recognised in expenses, is transferred from equity to the Income Statement. 112

117 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 1.14 Impairment of Financial Assets (continued) Investments in Associates If there is objective evidence that an impairment loss has been incurred on an investment in an associate, the amount of the impairment loss is the difference between the carrying amount of the investment and its recoverable amount (being the Corporation s share of the present value of the estimated future cash flows expected to be generated by the associate, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment) Supplier and other payables Supplier payments and accruals are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods and services have been received (and irrespective of having been invoiced) Research and Development The Corporation recognises Research and Development liabilities as follows. Most Research Agreements require the Researcher to perform services to meet payment criteria. Liabilities are recognised when there is a high probability that the Corporation will pay out remaining funds, such as on receipt of final report and any other criteria as set out in the Research Agreement Taxation The Corporation is subject to taxation (other than income tax) under the laws of the Commonwealth under section 46(1) of the PIERD Act Revenues, expenses and assets are recognised net of GST: except where the amount of GST incurred is not recoverable from the Australian Taxation Office; and except for receivables and payables Contingent Liabilities and Contingent Assets Contingent Liabilities and Assets are not recognised in the Balance Sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an existing liability or asset in respect of which settlement is not probable or the amount cannot be reliably measured. Contingent assets are reported when settlement is probable, and contingent liabilities are recognised when settlement is greater than remote. NOTE 2: ECONOMIC DEPENDENCY The Grains Research and Development Corporation was established in 1990 as a statutory corporation under the Primary Industries and Energy Research and Development Act 1989 (PIERD Act). The Corporation is dependent on levies collected from grain producers under the PIERD Act and Commonwealth contributions made by the Commonwealth for its continued existence and ability to carry out its normal activities. NOTE 3: EVENTS OCCURRING AFTER REPORTING DATE The Corporation had no events occurring after reporting date that would significantly affect its ongoing structure and financial activities. FINANCIAL STATEMENTS 113

118 NOTE 4: INCOME Revenues $ 000 $ 000 Note 4A: Revenues from Government Commonwealth contributions 35,768 43,065 Note 4B: Interest Deposits 5,567 5,682 Negotiable certificates of deposit 759 Floating rate notes Sub-total interest income 5,957 7,404 Management fee (271) (263) Revaluation of investments (671) (1,468) 5,015 5,673 Note 4C: Industry contributions Coarse grains 15,124 14,842 Grain legumes 4,600 5,568 Oilseeds 3,513 5,335 Wheat 27,631 35,116 50,868 60,861 Note 4D: Project refunds Cross commodity 2,822 1,023 Coarse grains Grain legumes Oilseeds 47 Wheat ,272 1,533 Note 4E: Royalties Cross commodity 1, Coarse grains Grain legumes Oilseeds Wheat 821 2,914 2,181 3,516 GRDC ANNUAL REPORT Note 4F: Other Levy penalties Groundcover advertising income Publications revenue Other income

119 NOTE 5: OPERATING EXPENSES Note 5A: Research and development Cross- Coarse Grain 2007 Commodity Grains Legumes Oilseeds Wheat Total $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 National 45,992 3, ,794 59,830 Northern Region 7,705 1, ,402 11,991 Southern Region 12, ,205 1,969 1,703 18,318 Western Region 6, , ,178 12,885 TOTAL 73,201 5,486 4,610 3,650 16, , ,048 6,960 5,252 5,078 16, ,329 The aforementioned classification of national and regional payments is usually based on investment recommendations by the three Regional Panels and the National Panel. The project outcomes may, however, have impacts across one or more regions $ 000 $ 000 Note 5B: Employee benefits Salaries 4,404 4,470 Superannuation 1, Leave and other entitlements Separation and redundancies 79 Total employee benefits 5,634 5,165 Note 5C: Suppliers Supply of goods and services from external entities 5,051 5,613 Operating lease rentals* * These comprise minimum lease payments only. 5,063 5,633 Note 5D: Depreciation and amortisation Depreciation: Infrastructure, plant and equipment Buildings Total depreciation Amortisation: Intangibles: Information Management System Software Total amortisation Total depreciation and amortisation Note 5E: Write-down and impairment of assets Investments (shares) revaluation decrement 1, FINANCIAL STATEMENTS 115

120 NOTE 6: FINANCIAL ASSETS $ 000 $ 000 Note 6A: Cash and cash equivalents Interest bearing cheque account 2,633 11,034 Money market call account 1,967 1,037 4,600 12,071 Note 6B: Trade and other receivables Debtors general Debtors research and development Industry levies receivable Accrued interest Accrued income 6 1,596 GST receivable 3,309 3,128 Other 3 3,967 4,977 Receivables (gross) are aged as follows: Not overdue 3,544 4,883 Overdue by: Less than 30 days to 60 days to 90 days more than 90 days 4 2 All receivables are current. Receivables for Goods & Services Credit terms are net 7 days (2006: 7 days). Accrued Interest The interest rates range from 3.29% to 6.15% (2006: 3.00% to 5.65%) and the frequency of payments range from monthly to quarterly ,967 4,977 GRDC ANNUAL REPORT $ 000 $ 000 Note 6C: Investments Floating Rate Notes 10,034 At market value BT Individually Managed Fund 44,695 45,238 At market value BT Money Market Trust $1 6 5 At market value UBS Brinson Individually Managed Fund 41,445 45,595 At market value Total investments 86, ,872 Floating Rate Notes These securities have a term of up to 5 years. Interest is paid monthly, quarterly and half-yearly. Interest rates are fixed every period at BBSW plus a margin. The margin varies between 0.27% and 0.40%. 116

121 NOTE 6: FINANCIAL ASSETS (continued) Note 6C: Investments (continued) Individually Managed Funds The funds are available at call. Interest rates will vary to reflect varying market interest rates. Ministerial Approval The Corporation has received approval under paragraph 18(3)(d) of the CAC Act to hold the investments listed above $ 000 $ 000 Note 6D: Investments accounted for using the equity method Investments in associates 83 Total investments accounted for using the equity method 83 All such investments are non-current. Equity accounted share of results Net profit/(loss) before income tax (217) Income tax expense attributable to net profit/(loss) Net profit/(loss) after income tax (217) Carrying amount of equity accounted investments Balance at the beginning of year Additions 300 Share of net profit/(loss) for the year (217) Carrying amount at end of year 83 Share of assets and liabilities Current assets 166 Non-current assets 1 Total assets 167 Current liabilities 84 Non-current liabilities Total liabilities 84 Net assets 83 Name of Entity Principal Activities Reporting Date Ownership Interest % % Philom Bios (Australia) Pty Ltd* Soil inoculant research 30 September and development * Incorporated in Australia FINANCIAL STATEMENTS 117

122 NOTE 6: FINANCIAL ASSETS (continued) Note 6E: Investments other Shares in Unlisted Companies $ 000 $ 000 Australian Grain Technologies Pty Ltd 9,285 8,152 Provision for diminution in share value (5,152) (3,924) 4,133 4,228 Australian Centre for Plant Functional Genomics Pty Ltd 1 1 Arista Cereal Technologies Pty Ltd 845 Provision for diminution in share value (130) 715 Total investments other 4,849 4,229 The shares held are ordinary shares. NOTE 7: NON-FINANCIAL ASSETS $ 000 $ 000 Note 7A: Land and buildings Leasehold land fair value Total land Buildings on leasehold land fair value 4,800 4,000 Accumulated depreciation (160) Total buildings 4,800 3,840 Total land and buildings 5,750 4,590 Note 7B: Infrastructure, plant and equipment Plant and equipment fair value Accumulated depreciation (343) (162) Total infrastructure, plant and equipment Movement in asset revaluation reserve Increment for land 200 Increment for buildings 1,120 Increment for plant and equipment 1,320 GRDC ANNUAL REPORT All revaluations are conducted in accordance with the relevant policy stated at Note 1. An independent valuer, the Australian Valuation Office, conducted a formal revaluation of land and buildings as at 30 June A formal revaluation of plant and equipment was conducted by the Australian Valuation Office at 30 June Acquisitions since 30 June 2005 are deemed to be at fair value at 30 June No indicators of impairment were found for infrastructure, plant and equipment. 118

123 NOTE 7: NON-FINANCIAL ASSETS (continued) $ 000 $ 000 Note 7C: Intangibles Information Management System at cost 1,293 1,271 Accumulated depreciation (1,014) (802) Total Information Management System Software at cost Accumulated depreciation (98) (80) Total software Total intangibles Note 7D: Analysis of Property, Plant, Equipment and Intangibles Table A Reconciliation of the opening and closing balances of property, plant and equipment and intangibles Other Computer Buildings on Infrastructure, software Leasehold leasehold Plant & Total Land land Equipment Intangibles Total $ 000 $ 000 $ 000 $ 000 $ 000 As at 1 July 2006 Gross book value 750 4, ,387 6,716 Accumulated depreciation/ amortisation (160) (162) (882) (1,204) Net book value 1 July , ,512 Additions: by purchase Net revaluation increment/ (decrement) 200 1,120 1,320 Depreciation/amortisation expense (160) (181) (230) (571) Net book value 30 June , ,381 Net book value as at 30 June 2007 represented by: Gross book value 950 4, ,417 7,836 Accumulated depreciation/ amortisation (343) (1,112) (1,455) Note 7E: Other non-financial assets Prepayments All other non-financial assets are current $ 000 $ FINANCIAL STATEMENTS 119

124 NOTE 8: PROVISIONS $ 000 $ 000 Note 8A: Employee Provisions Leave Aggregate employee entitlement liability Employee provisions are represented by: Current Non-current NOTE 9: PAYABLES $ 000 $ 000 Note 9A: Suppliers Trade creditors Accrued expenses 1, All supplier payables are current 1,155 1,072 Note 9B: Research and development Research and development 38,432 41,859 Research and development payables represented by: Current 36,035 40,298 Non-current 2,397 1,561 38,432 41,859 Note 9C: Contributions not yet utilised Contributions paid in advance by third parties towards specific projects 361 1,727 All contributions not yet utilised are current. NOTE 10: CASH FLOW RECONCILIATION (a) Reconciliation of cash and cash equivalents per Balance Sheet to Statement of Cash Flow Statement GRDC ANNUAL REPORT $ 000 $ 000 Cash at year end per Statement of Cash Flows 4,600 12,071 Balance Sheet items comprising above cash: 6A 4,600 12,071 Financial Asset Cash and cash equivalents 120

125 NOTE 10: CASH FLOW RECONCILIATION (continued) (b) Reconciliation of Operating Result to net Cash from Operating Activities: $ 000 $ 000 Operating result (18,461) (11,584) Depreciation and amortisation Write down of assets 1, Revaluation of investments 671 1,468 Share of net profit/loss of associates 217 Interest accrued on investments Changes in assets and liabilities (Increase)/decrease in receivables 989 (1,586) (Increase)/decrease in accrued interest 21 (19) (Increase)/decrease in prepayments 72 (45) Increase/(decrease) in employee entitlements Increase/(decrease) in payables (4,710) 3,630 Net cash from/(used by) operating activities (19,099) (7,462) NOTE 11: DIRECTOR REMUNERATION The number of directors of the Corporation included in these figures are shown below in the relevant remuneration bands $ Nil $14,999 5 $15,000 $29, $30,000 $44, $45,000 $59, $465,000 $479,999 1 $480,000 $494,999 1 The number of directors of the Corporation 8 13 Total remuneration received or due and receivable by directors of the Corporation 737, ,415 The directors of the Corporation, with the exception of the Managing Director, are appointed by the Minister Agriculture, Fisheries and Forestry, Australia. NOTE 12: RELATED PARTY DISCLOSURES The following persons were Directors of the Grains Research and Development Corporation during the year: Mr T.J. Enright (Chairman) Mr S. Marshall Mr R. Johns (Deputy Chairman) Dr D. Plowman Mr R. Phillips (Government Director Prof. T. Reeves removed-royal Assent 28/5/07) Mr P. Young Ms N. Birrell Mr P. Reading (Executive Director) Several directors of the Corporation hold directorships with other companies. All transactions between the Corporation and companies with a Director common to the Corporation are conducted using commercial and arms-length principles. The aggregate remuneration of Directors is disclosed in Note 11. FINANCIAL STATEMENTS 121

126 NOTE 13: EXECUTIVE REMUNERATION The number of senior executives who received or were due to receive total remuneration of $130,000 or more: Between $130,000 $144, Between $145,000 $159, Between $160,000 $174,999 2 Between $175,000 $189,999 4 Between $190,000 $204, Between $205,000 $219,999 1 Between $250,000 $264, The aggregate amount of total remuneration of officers shown above 2,115,601 1,832,538 The aggregate amount of separation and redundancy/termination benefit payments during the year in the remuneration shown above 78,800 The officer remuneration includes all officers concerned with or taking part in the management of the Corporation during except the Managing Director. Details in relation to the Managing Director have been incorporated in Note 11 Director Remuneration. NOTE 14: REMUNERATION OF AUDITORS The cost of financial statement audit services provided to the Corporation was: $ $ Australian National Audit Office 18,900 17,500 RSM Bird Cameron has been contracted by the Australian National Audit Office (ANAO) to provide audit services on the ANAO s behalf. Fees for these services are included above. No other services were provided by the Auditor-General or RSM Bird Cameron during the reporting period. NOTE 15: AVERAGE STAFFING LEVELS The average staffing levels for the Corporation during the year were: GRDC ANNUAL REPORT

127 NOTE 16: FINANCIAL INSTRUMENTS Note 16A: Interest Rate Risk Weighted Average Financial Floating Non Interest Effective Instrument Notes Interest Rate Fixed Interest Rate Maturing In bearing Total Interest Rate 1 Year or less 1 to 5 years > 5 years $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 % % Financial Assets Cash 6A 4,600 12,071 4,600 12, Receivables 6B 3,967 4,977 3,967 4,977 n/a n/a Floating rate notes 6C 10,034 10, Managed funds 6C 86,146 90,838 86,146 90, Investments accounted for using equity method 6D n/a n/a Investments other 6E 4,849 4,229 4,849 4,229 n/a n/a Total Financial Assets 4,600 12,071 86,146 98,838 10,034 8,899 9,206 99, ,149 Financial Liabilities Trade creditors 9A 1,155 1,072 1,155 1,072 n/a n/a Project liabilities 9B 38,432 41,859 38,432 41,859 n/a n/a Contributions not yet utilised 9C 361 1, ,727 n/a n/a Total Financial Liabilities 39,948 44,658 39,948 44,658 FINANCIAL STATEMENTS 123

128 NOTE 16: FINANCIAL INSTRUMENTS (continued) Note 16B: Fair Values of Financial Assets and Liabilities Total Total carrying Aggregate carrying Aggregate amount fair value amount fair value Note $ 000 $ 000 $ 000 $ 000 Financial Assets Deposits at call 6A 4,600 4,600 12,071 12,071 Receivables 6B 3,967 3,967 4,977 4,977 Floating rate notes 6C 10,034 10,034 Managed funds 6C 86,146 86,146 90,838 90,838 Investments under equity method 6D Investments other 6E 4,849 4,849 4,229 4,229 Total Financial Assets 99,645 99, , ,149 Financial Liabilities Trade creditors 9A 1,155 1,155 1,072 1,072 Project liabilities 9B 38,432 38,432 41,859 41,859 Contributions not yet utilised 9C ,727 1,727 Total Financial Liabilities 39,948 39,948 44,658 44,658 Financial Assets The fair values of deposits at call and receivables approximate their carrying amounts. The fair value of floating rate notes is based on discounted cash flows using current interest rates for assets with similar risk profiles. The fair value of the Individually Managed Funds is the quoted market value at reporting date, adjusted for the transaction costs necessary for realisation. The fair value of investments in associates is the initial cost of the investment in the associate adjusted for the Corporation s share of the post-acquisition change in the net assets of the associate. The fair value of shares in unlisted companies is the Corporation s proportion of the estimated net asset position of the company. Financial Liabilities The fair values of trade creditors, project liabilities and contributions not yet utilised approximate their carrying amounts. Note 16C: Credit Risk Exposures The Corporation s maximum exposure to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Balance Sheet. The Corporation has no significant exposures to any concentrations of credit risk. GRDC ANNUAL REPORT

129 NOTE 17: REPORTING OF OUTCOMES Note 17A: Outcomes of the Corporation Corporation activity involves the identification, co-ordination, funding and evaluation of research and development for Australia s grain industries. These financial statements provide a detailed overview of the Corporation s total financial operations for the year ended 30 June The Corporation operates predominantly in one industry, the grains industry and in one geographical area being Australia. Outcome 1 Through its commitment to innovation, an Australian grains industry that is profitable and environmentally sustainable for the benefit of the industry and wider community. Four outputs are identified for the above outcome. These are: Output 1 Varieties Output 2 Practices Output 3 New Products Output 4 Communications Note 17B: Net Cost of Outcome Delivery Expenses Outcome 1 Total $ 000 $ 000 $ 000 $ 000 Departmental expenses 115, , , ,720 Total expenses 115, , , ,720 Other external revenues Departmental Interest 5,015 5,673 5,015 5,673 Industry contributions 50,868 60,861 50,868 60,861 Project refunds 3,272 1,533 3,272 1,533 Royalties 2,181 3,516 2,181 3,516 Other Total other external revenues 61,636 72,071 61,636 72,071 Total other external revenues 61,636 72,071 61,636 72,071 Net cost/(contribution) of outcome 54,229 54,649 54,229 54,649 FINANCIAL STATEMENTS 125

130 NOTE 17: REPORTING OF OUTCOMES (continued) GRDC ANNUAL REPORT Note 17C: Major classes of departmental Revenue and Expenses by Output Groups Outcome 1 Output 1 Output 2 Output 3 Output 4 Total $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 Operating expenses Research and development 52,477 58,887 35,771 37,211 8,686 11,662 6,090 7, , ,330 Employees 1,409 1,292 1,408 1,291 1,408 1,291 1,409 1,291 5,634 5,165 Suppliers 1,318 1,226 1,434 1,344 1,128 1,013 1,183 2,049 5,063 5,633 Depreciation and amortisation Write-down of assets , Share of operating results (equity method) Total operating expenses 56,572 61,680 38,756 39,952 11,712 14,072 8,825 11, , ,720 Funded by Revenues from Government 18,219 21,988 12,419 13,895 3,016 4,355 2,114 2,827 35,768 43,065 Interest 2,555 2,897 1,741 1, ,015 5,673 Industry contributions 25,910 31,075 17,662 19,637 4,289 6,154 3,007 3,995 50,868 60,861 Project Refunds 1, ,272 1,533 Royalties ,181 3,516 Other Total operating revenues 49,147 57,595 33,043 36,854 8,889 12,411 6,325 8,276 97, ,136 The Corporation s outcomes and outputs are described at Note 17A. The Corporation uses actual expenses for the allocation of Research and Development expenses and some supplier expenses. All other expenses are apportioned across outputs evenly. Revenues uses actual income for allocation of project refunds, reversals of previous asset write-down and some other income. All other revenue is apportioned across outputs based on Research and Development expenditure. 126

131 Appendices Appendix Australian Government research priorities Appendix Expenditure on government research priorities Appendix GRDC project list Appendix Joint R&D project list Appendix Publications and products 127

132 Appendix 1: Australian Government research priorities Table A1.1 shows the relationships between the government s National Research Priorities and the goals that are associated with them, as well as the revised Rural R&D Priorities as announced by the Minister for Agriculture, Fisheries and Forestry in May Table A1.1 Australian Government priorities and associated goals National Research Priorities Frontier technologies for An environmentally Promoting and maintaining building and transforming sustainable Australia good health Australian Industries Safeguarding Australia A1: Water a critical B1: A healthy start to life C1: Breakthrough science D1: Critical infrastructure resource B2: Ageing well, ageing C2: Frontier technologies D2: Understanding our A2: Transforming existing productively C3: Advanced materials region and the world industries B3: Preventive healthcare C4: Smart information use D3: Protecting Australia A3: Overcoming soil loss, B4: Strengthening C5: Promoting an from invasive salinity and acidity Australia s social and innovation culture and diseases and pests A4: Reducing and economic fabric economy D4: Protecting Australia capturing emissions from terrorism and in transport and crime energy generation D5: Transformational A5: Sustainable use of defence technologies Australia s biodiversity A6: Developing deep earth resources A7: Responding to climate change and variability Rural R&D Priorities Productivity and Supply chain Natural resource Climate variability adding value and markets management and climate change Biosecurity Improve the Better understand Support effective Build resilience to Protect Australia s productivity and and respond to management of climate variability community, primary profitability of domestic and Australia s natural and adapt to and industries and existing industries international market resources to ensure mitigate the effects environment from and support the and consumer primary industries are of climate change biosecurity threats development of requirements and both economically viable new industries improve the flow of and environmentally such information sustainable through the supply chain, including to consumers GRDC ANNUAL REPORT Supporting the Rural R&D Priorities Innovation skills Technology Improve the skills to undertake research Promote the development of new and and apply its findings existing technology 128

133 Appendix 2: Expenditure on government research priorities The following tables summarise the total expenditure allocated against the Australian Government s National Research Priorities and priorities for rural R&D within the financial year (see Table 4 in Part 2 for a summary of these priorities and their relationships with the priorities of Australian grain growers). The allocation of funds is shown in both dollar and percentage terms for each output group. Table A2.1 Australian Government National Research Priorities, dollar values ($m) National Frontier Technologies for Research Promoting and Building and Transforming Priorities An Environmentally Sustainable Australia Maintaining Good Health Australian Industries Safeguarding Australia A1 A2 A3 A4 A5 A6 A7 B1 B2 B3 B4 C1 C2 C3 C4 C5 D1 D2 D3 D4 D5 Total Varieties Practices New Products CCS CSPS Total CCS = Communication & Customer Services, CSPS = Corporate Strategy & Program Support Notes: Strategic investments in included Single Vision Grains Australia Ltd, Agrifood Awareness and Australian Bureau of Agricultural and Resource Economics (ABARE) farm surveys. Total does not include investments such as emerging issues, contingencies and project variations. EXPENDITURE ON GOVERNMENT RESEARCH PRIORITIES 129

134 GRDC ANNUAL REPORT Table A2.2 Australian Government National Research Priorities, percentage values National Frontier Technologies for Research Promoting and Building and Transforming Priorities An Environmentally Sustainable Australia Maintaining Good Health Australian Industries Safeguarding Australia A1 A2 A3 A4 A5 A6 A7 B1 B2 B3 B4 C1 C2 C3 C4 C5 D1 D2 D3 D4 D5 Total Varieties Practices New Products CCS CSPS Total CCS = Communication & Customer Services, CSPS = Corporate Strategy & Program Support Notes: Strategic investments in included Single Vision Grains Australia Ltd, Agrifood Awareness and ABARE farm surveys. Total does not include investments such as emerging issues, contingencies and project variations. 130

135 Table A2.3 Australian Government rural R&D priorities, dollar and percentage values Maintaining and improving confidence in the Ministerial Improving integrity of priorities for competitiveness Australian Protecting rural R&D Sustainable through a agricultural food, Improved trade Australia from corporations natural resource whole-of-industry fish and forestry and market Use of frontier Creating an invasive disease and companies management approach products access technologies innovative culture and pests Total $m % $m % $m % $m % $m % $m % $m % $m % Varieties Practices New Products CCS CSPS Total CCS = Communication & Customer Services, CSPS = Corporate Strategy & Program Support Notes: Strategic investments in included Single Vision Grains Australia Ltd, Agrifood Awareness and ABARE farm surveys. Total does not include investments such as emerging issues, contingencies and project variations. EXPENDITURE ON GOVERNMENT RESEARCH AND PRIORITIES 131

136 Appendix 3: GRDC project list Table A3.1 Project expenditure, Project no. Project title Expenditure $ GRDC ANNUAL REPORT GENE DISCOVERY ACP00001 Australian Centre for Plant Functional Genomics 2,000,000 AGP00006 AWCMMP Component: Wheat marker implementation/validation for Australian Grain Technologies Pty Ltd 265,000 ANU00008 Genetic controls of root impedance and drought signalling in wheat 260,274 ANU00009 Wheat ERECTA/ERECTA-like genes: Proof of function on water use efficiency and potential for breeding improved germplasms 222,027 CAS00001 Australian Crop Accreditation System Ltd 594,843 CMB00012 AWCMMP Component: Curation of wheat and barley maps 50,000 CSP00017 Australian Cereal Rust Control Program Molecular biology 558,847 CSP00063 AWCMMP Component: Towards the application of perfect markers for broad spectrum disease resistance in wheat 144,000 CSP00089 Maintaining wheat grain number and size during reproductive stage drought stress 186,000 CWQ00010 Triticarte 150,000 CWQ00013 AWCMMP Component: Phenotyping complex quality traits for marker identification and validation: Phase 2 24,384 DAN00072 AWCMMP Component: Implementation/validation of molecular markers: Enterprise Grains Australia 369,022 DAN00073 National Statistics Project (KP1) Statistical support for crop improvement and National Variety Trials 256,523 DAN00074 National Statistics Project (KP2) Strategic statistical research for crop improvement 324,679 DAN00085 National Statistics Project (KP3) Molecular markers and statistical genetics 270,938 DAQ00076 Integrating crop improvement technologies for rapid yield advance 459,277 DAQ00077 AWCMMP Component: Pedigree-based genome mapping for marker assisted selection and recurrent parent recovery in wheat and barley: Phase 2 185,000 DAQ00078 Molecular biology support for barley improvement North 103,000 DAQ00085 Identifying candidate genes for stay-green in sorghum 147,149 DAR00001 Strategic investment in the development of Diversity Arrays Technology 401,264 DAR00002 AWCMMP Component: Adding value to Diversity Arrays Technology 77,000 DAV00058 Australian Participation in the multinational brassica genome project 250,010 DAV479 Development of molecular markers for implementation within the National Brassica Improvement Program 397,000 DAW00102 Development and implementation of molecular markers for lupin breeding 196,934 DAW00113 AWCMMP Component: Validation/implementation barley, Western Region 143,000 DAW00118 AWCMMP Component: Implementation/validation of molecular markers in DAFWA (VI 12) 161,000 GBA00003 Development of salt tolerant wheat for commercial production 342,825 GBA Commercialisation of intellectual property from GBA ,175 IPC00001 Transgenic wheat plants resistant to fusarium and other fungal pathogens 163,000 SV00001 GM Biotechnology Crop Project Pathway to market 33,171 TCC00002 Exploring commercialisation opportunities for Patent WO2006/ ,000 UA00007 Transformation in functional genomics and cereal improvement programs 393,928 UA00063 Breeding for frost tolerance in barley 130,

137 Project no. Project title Expenditure $ UA00070 Advancement of new genes for stem and leaf rust resistance from uncultivated relatives of wheat 167,693 UA00072 AWCMMP Component: Multiplex PCR technologies to accelerate the use of SSRs in cereal breeding and genetic research 142,015 UA00073 Genetic variation for improved frost tolerance in wheat 212,000 UA00080 AWCMMP Component: Association mapping 275,028 UA00083 Cereal Functional Genomics Centre 591,973 UA00086 Whole genome selection in wheat and barley The practical application of whole genome analysis 180,000 ULA00006 A novel male sterility system for canola and wheat 143,300 UMU00019 AWCMMP Component: Rice wheat barley comparative genomics for key agronomic traits 106,000 US00030 AWCMMP Component: Markers for rust resistance in cereals 102,530 US315 Australian Cereal Rust Control Program 1,050,318 USQ00007 Molecular markers for high-priority traits in winter cereals for the Northern Region 444,000 VR24 National Variety Trials combined budget 2,679,310 VR56 Project Review 2006 DArT Triticarte 27,427 WCI52 AWCMMP Communications project 81,633 Total Gene Discovery 15,670,997 GERMPLASM ENHANCEMENT ACG00002 National Genetic Resources Centre 7,000 AGS00002 CIMMYT suite of projects: Germplasm evaluation project 117,500 ANU00007 Managing and identifying resistance against barley scald 93,819 BA00002 Pilot brewing evaluation for malting barley lines destined for export 54,600 BRI00006 National Wheat Quality Testing Program 218,000 BRI00037 Seed testing and sorting using single-kernel NIR technology 199,000 CIM00007 CIMMYT alliance 30,000 CIM00008 CIMMYT alliance Component 1: Protecting the Australian wheat industry from Karnal bunt through the development and implementation of molecular markers (27,588) CIM00010 CIMMYT alliance Component 3: Improving the stress tolerance of wheat genotypes of relevance to the Australian production environment 297,000 CIM00012 Enhanced evaluation of CIMMYT germplasm in Australia CIMMYT component 147,546 CIM10 Exploitation of the genetic resources of synthetic wheats (7,802) CIM11 Enhanced evaluation of CIMMYT germplasm in Australia CIMMYT component 92,000 CIM13 Australian Cereal Rust Control Program Adult plant resistance and introgression of new and novel genes 356,000 CMB00003 Variation in barley scald and effective resistance gene deployment 137,000 CMB00006 MPBCRC: Improved disease resistance in cereals 219,300 CMB00008 MPBCRC: New markers, genetic mapping and QTL analysis 105,000 CMB00009 MPBCRC: Disease genetics Pathogen variation and host interactions 74,627 CMB00011 MPBCRC: Education and training program 178,301 CSP00053 Wheat trait, genes and germplasm for adaptation to water-limited environments in the northern region 864,283 CSP00057 Vigorous roots for hostile soils 93,530 CSP00058 Development and delivery of salt tolerance and water use efficiency traits for durum with diversified genetic background 259,664 CSP00059 Improved wheat and barley germplasm for saline and sodic soils: a collaborative proposal from CSIRO and Department of Primary Industries Horsham 124,350 GRDC PROJECT LIST 133

138 Project no. Project title Expenditure $ GRDC ANNUAL REPORT CSP00061 Analysis of the regulation of plant defence/stress gene expression 145,554 CSP00071 New resources for breeding for heading date and improved frost tolerance 128,002 CSP00076 International Adaptation Trial: Investigating adaptation of Australian and CIMMYT wheat germplasm 169,501 CSP00077 CSIRO Pre-breeding Gateway: Germplasm development and validation of novel traits for Australian wheat breeding 223,218 CSP00078 Genetic basis of sponge and dough breadmaking 363,836 CSP00080 Novel strategies for manipulating dormancy in wheat 315,985 CSP00081 Better wheats for Australia by capturing novel traits and associated markers for breeding programs 191,964 CSP00090 Creation and deployment to wheat of new recombinant alien translocations with barley yellow dwarf virus resistance 79,972 CSP00094 Fast tracking high-value traits using heavy-ion technology 36,804 CSPS15 Project Review 2006 Wheat trait, genes and germplasm for adaptation to water-limited environments in the Northern Region 5,107 CWQ00014 Late maturity alpha-amylase screening services 50,000 CWQ00015 CIMMYT suite of projects: Communication project 85,800 CWQ00016 Exploiting septoria resistance in wheat 171,336 CWQ00017 Dual-purpose Triticale Improvement Program (US) 165,508 DAN00061 Durum industry development Fast tracking genetic solutions to crown rot 165,183 DAN00064 Durum industry development Collaboration with ICARDA to accelerate cultivar improvement for adaptation across all production regions 60,000 DAN00089 Quarantine CIMMYT bread wheat germplasm 68,150 DAQ00002 Novel approaches to in-head frost tolerance 114,650 DAQ00045 SIP04: Defect elimination in wheat Black point 109,478 DAQ00094 National screening for barley grain defects including black point, staining and preharvest sprouting 130,877 DAQ00104 Sponge and dough bread quality of Australian wheat germplasm 249,125 DAQ566 Genetic approaches to resistance to fusarium and bipolaris in wheat and barley 140,853 DAS00048 Control of cereal fungal diseases 210,000 DAS00052 Plant genetic resources: Enhancing germplasm conservation for Australian agriculture 1,049,800 DAS00074 Incorporating new sources of stem and leaf rust resistance from wild oat species into cultivated oat varieties 53,593 DAV00076 Synthetic evaluation project 110,174 DAV00082 Improved selection for grain plumpness and malting quality 47,999 DAV436 Defect elimination in wheat Development of preharvest sprouting resistant bread wheats 35,000 DAW00085 Addressing rust resistance and other key traits in wheat breeding for the Western Region 393,604 DAW00126 Enhancing resistance to Stagonospora nodorum in Australian wheat germplasm 189,332 GRD151 Value Added Wheat CRC 750,000 GRD173 GrainGene 2 (32,230) ICA00003 Technologies for the targeted exploitation of cereal and pulse landraces 169,632 ICA00004 Enhancement of yield and yield stability of spring bread wheat in semi-arid Mediterranean areas of central and west Asia and north Africa 171,279 JHC00002 Executive Manager GrainGene 3 12,197 JHC Executive Manager GrainGene 3 Expenses 6,300 QOG00001 Wheat Quality Objectives Group 92,

139 Project no. Project title Expenditure $ RAC00002 Development of Australian test bake straight dough method 11,300 UA00034 SIP04: Defect elimination in wheat Preharvest sprouting 100,595 UA00039 SIP04: Defect elimination in wheat Coordination 11,214 UA00061 Development and evaluation of weed-competitive wheat cultivars 259,662 UA00074 Germplasm development for durum improvement in southern Australia 244,644 UA00076 Improving adaptation of wheat to hostile soils: Quantifying the importance of traits and targeted germplasm development 106,090 UA00085 SIP04: Defect elimination in wheat Late maturity alpha-amylase 191,057 UA00090 Physiological based screening for identifying novel salt-tolerant germplasm in wheat and barley 97,947 UA00093 Biochemical and genetic solutions to grain defects elimination and grain quality improvement 164,940 UA00094 Flour and product colour in wheat 199,680 UQ00040 Support for International Crop Information System for Australian grain breeding and CIMMYT germplasm introduction programs 74,178 UQ127 Assessment of the extent of collateral damage in genetically-engineered wheat and barley 18,975 US00028 Adult plant resistance and pathogen variability in cereal rust: Cereal host pathosystems 208,460 USQ00002 Generation and evaluation of transgenic wheat plants for frost tolerance 65,515 USQ00008 Durum industry development Molecular marker assisted selection for crown rot resistance 60,800 UT00012 Market optimisation and targeting of the fermentability of Australian malting barleys 94,600 UT00013 Targeting potassium homeostasis in breeding wheat for salt tolerance 50,044 UT8 Australia China Collaboration on barley genetic resources 100,000 UWA00038 Genetic Dissection of Fungal Disease Resistance in Legumes using Medicago truncatula 491,365 UWA00091 An international collaboration to develop interspecific hybrids between chickpea and its wild relatives 116,034 UWA00094 Interspecific hybridisation of lupins 148,844 VR34-1 Barley quality improvement 2,348 VR43-1 ICARDA germplasm 3,722 VR52 Commercialisation costs 1,919 VR53 GrainGene 3 641,406 VR55 National Genetic Resource Centre Interim Executive Coordinator contribution from other parties 80,000 VR55-1 National Genetic Resource Centre Interim Executive Coordinator 80,000 WCI38 Australian wheat quality improvement program Coordination and forum 26,500 Total Germplasm Enhancement 13,714,552 WHEAT AND BARLEY BREEDING AGP00004 Fast tracking of rust resistant Stylet replacements for growers in Southern Australia 244,619 AGP00005 National Triticale Improvement Program 406,875 AGP00008 Development of SunPrime Seeds lines 1,000,000 AGP2 Australian Grain Technologies Pty Ltd Independent directors 10,969 CMB00005 AWCMMP Component: Genetic analysis and marker-trait linkages south and west 544,000 CMB00014 Accelerating breeding progress by predicting the effects of genes influencing yield and quality in wheat and barley 202,772 CSP00019 Wheat breeding for the high-rainfall zones of Australia 314,279 GRDC PROJECT LIST 135

140 Project no. Project title Expenditure $ DAN00060 Australian Durum Industry Development Officer 125,465 DAN00101 Barley Breeding Australia New South Wales Department of Primary Industries 166,400 DAN00105 Australian National Durum Wheat Improvement Program 333,501 DAQ00110 Barley Breeding Australia Northern node 950,000 DAS00039 Improved oat varieties for milling, feed end use in the Southern Region Oat Breeding Program 610,003 DAV00079 National Barley Enhancement Program Coordinator 45,142 DAV00080 Barley cultivar development Department of Primary Industries Victoria, Horsham 454,303 DAW00120 Wheat breeding for the Western Region 1,283,894 DAW00151 Barley Breeding Australia Western Region 1,218,356 EGA00001 Enterprise Grains Australia 2,300,554 MCG00001 Export Grain Centre Independent Director 29,000 MPC00002 Coordinator for Barley Breeding Australia 259,800 MPC00003 Durum industry desktop study 14,000 PBS00005 Develop a national plan for barley breeding 26,400 RWF00006 Durum industry desktop study 1,258 UA00032 Barley Breeding Australia Southern node 1,567,520 UA00078 AWCMMP Component: Malting Barley Quality Improvement Program implementation and validation 182,500 UWA00096 Barley Improvement through germplasm introduction, evaluation and enhancement 156,763 VR01-1 Barley breeding 24,553 Total Wheat and Barley Breeding 12,472,926 GRDC ANNUAL REPORT PULSE, OILSEED AND SUMMER COARSE GRAINS ACA5 Contribution towards ACIAR project CS1/1999/072 Oilseed Brassica Improvement in China India and Australia 180,000 CI29 Lupin breeding Capital component 65,000 DAN00034 Faba bean improvement Northern Region 371,136 DAN00062 Albus lupin breeding 289,984 DAN00063 National Brassica Improvement Program New South Wales Agriculture 280,000 DAN00094 Australian Chickpea Breeding Program 871,352 DAQ00015 Crop Improvement of grain sorghum in Australia Core breeding 568,837 DAQ00060 National Mungbean Improvement Program 245,095 DAQ00062 Cloning of an insect resistance gene from sorghum 115,692 DAQ00070 Australian Peanut Improvement Program 475,311 DAQ00092 Maize germplasm enhancement and productivity improvement for tropical Australia 140,673 DAS00047 National Brassica Improvement Program South Australia 61,600 DAS00050 Lupin evaluation South Australia Victoria node 100,023 DAS00059 Improved vetch varieties for Australian farmers and end-users 203,986 DAS00066 Pulse germplasm enhancement Vegetative and reproductive frost tolerance in pulse crops 78,855 DAS00067 Pulse germplasm enhancement Bacterial blight in field pea, pod drop in lentil, and heat stress tolerance in field pea and faba bean 131,217 DAV00060 National Brassica Improvement Program Department of Primary Industries Victoria and lead agency 360,000 DAV00071 Australian Field Pea Breeding Program 775,000 DAV00072 Australian Lentil Breeding Program 455,

141 Project no. Project title Expenditure $ DAV00073 Pulse Germplasm Enhancement Boron and salt tolerance in temperate pulses and durable ascochyta blight resistance in chickpeas 49,382 DAW00101 Evaluation and selection of high-quality brassica breeding lines for short season environments of Western Australia 149,642 DAW00104 Yellow lupin improvement 312,692 DAW00105 Western Lupin Technology Narrow-leafed lupin breeding for southern Australia 776,704 FWC00001 Coordinator for Pulse Breeding Australia 10,000 GBE00001 Consultancy National Pulse Breeding Program 11,117 GBE Pulse Breeding Australia 24,180 RWF00007 Examination of options for better definition and delivery of innovation to the Western Australian lupin industry 25,419 UA00079 Faba bean breeding Southern and western regions 511,246 UQ00035 Professorial Chair in Crop Science and Innovation 70,000 UWA00092 Lupin germplasm characterisation 150,000 UWA00093 Pearl lupin development of the first Australian cultivar for commercial evaluation 52,023 Total Pulse, Oilseed and Summer Coarse Grains 7,911,897 TOTAL VARIETIES 49,770,372 AGRONOMY AND SOILS AGO00002 Australian Greenhouse Office contribution to DAW00103 Measurement of paddock-based greenhouse gas emissions from wheat production to improve life cycle assessment of wheat products (59,722) AWR00002 Contribution towards Pastures Australia 500,000 BAT00002 Consultancy Enhancing paddock profitability a collaborative diagnostic approach to cropping systems research 30,000 CAG00002 On-farm evaluation of frost minimisation techniques and risk management strategies 50,000 CCC00002 Quantifying the effects of maize rotation on soil quality and nutrient availability on cotton growth and yield 13,000 CCC00003 High-yielding irrigated grains in cotton cropping systems Phase 2 138,308 CCC00004 High-yielding Irrigated grains in cotton farming systems Phase 3 111,602 CFG2 Using precision agriculture and soil inoculants to improve crop performance and grower returns 50,000 CSA00007 Province, paddock or patch Giving farmers tools to optimise the scale at which fertiliser decisions are made 115,000 CSE00043 Harnessing soil microbial processes to get maximum value from stubble retention in different cropping regions 175,001 CSO00017 SIP09: Precision agriculture initiative Unlocking the benefits of precision agriculture for farm profits and the environment 269,463 CSO00031 Innovative solutions to subsoil constraints for a profitable and environmentally sustainable grains industry in Western Australia 71,385 CSO00032 Investigation of cause and extent of lodging and yield loss associated with stubble-retention in irrigated maize 40,982 CSO00033 Farming system options and catchment salinity response 211,818 CSO00034 Improving farm to catchment nutrient management for a more profitable and environmentally sustainable grains industry 199,759 CSO00038 Feasibility for rapid soil-measurement using core scanning 38,158 CSO231 Fluid fertilisers the next step toward raising yield potentials 50,950 CSO232 Managing the fallow period for optimum water use and nitrogen availability 30,000 GRDC PROJECT LIST 137

142 Project no. Project title Expenditure $ GRDC ANNUAL REPORT CSP00015 Improving wheat yields and quality in Western Australian sandplain farming system 172,568 CSP00040 Can we forecast seasonal wheat grain yields and protein in Western Australia? 114,587 CSP00049 Evaluating the use of subsoil water by crops is it the pipes or the pump? 85,214 CSP00064 Exploiting genetic variation in wheat roots to promote beneficial interactions with soil organisms and thereby increase yield 200,489 CSP00065 Delivering high yields of milling wheats in the HRZ of Western Australia 162,422 CSP00083 New approaches and technologies for management of wheat grain protein content 250,000 CSP00085 Evaluating the potential for dual-purpose (graze/grain) canola in the mixed farming systems of southern Australia 150,000 CSP00087 Water balance of conservation farming systems 49,940 CSP00098 Exploratory practices in the Western Region 25,000 CTF00002 Managing variability From controlled traffic farming and raised bed farming to information rich agriculture 176,000 CWC00003 Cover crop and stubble management systems for central and southern New South Wales 140,000 DAN00002 Permanent beds for sustainable cropping systems on irrigated farms 25,295 DAN00054 SIP09: Precision agriculture initiative 85,790 DAN00098 Development of agronomy packages for new varieties in southern New South Wales 129,423 DAN00104 Barley agronomy for Southern Australia 280,000 DAN00106 Developing agronomic solutions to improve barley yield and grain quality in the GRDC Northern Region 180,021 DAN484 Breeding improved lucernes for cropping systems in eastern Australia Phase 2 121,919 DAQ00084 Nutrient management in rainfed cropping systems of the northern grains region 285,352 DAS00017 Reducing the impact of climate variability Frost 44,500 DAS00035 Managing diseases using precision agriculture 156,221 DAS00040 Seed increase and distribution of perennial legumes to support sustainable and productive farming systems 60,000 DAS00075 DNA assay to quantify barley roots 57,077 DAS00078 Exploratory practices in the Western Region 25,000 DAS347 Breeding lucerne for Southern Australian cropping districts 66,970 DAV00030 SIP09: Precision agriculture initiative 173,324 DAV00049 Improving the profitability of cropping on hostile subsoils 500,000 DAV00057 Pulse Agronomic research for the development of variety specific management packages in south-eastern Australia 180,018 DAV00059 Management of high-rainfall cropping to improve water quality and productivity 216,241 DAV00061 Genotype and management combinations for highly productive cropping systems in the high-rainfall zone of southern Australia 480,357 DAV00066 Delivering rapid soil tests to growers 150,138 DAV00081 Assessment of greenhouse gas emissions in cereal legume cropping systems in southern Australia (505,000) DAW00084 Diagnostic support and training for precision agriculture 113,489 DAW00093 Identifying soil constraints to crops production on the south coast sandplain 120,300 DAW00099 Lupin agronomic improvement in the Western Region Enhancing the profitability of the lupin wheat rotation 333,992 DAW00103 Measurement of paddock-based greenhouse gas emissions from wheat production to improve life cycle assessment of wheat products (40,278) DAW00107 Oat agronomy and industry development for the Western Region 127,308 DAW00138 The use and impact of deep drains on improving salt-affected soils used for grain cropping in the Western Australian wheat belt 82,

143 Project no. Project title Expenditure $ DAW00146 Enhancing paddock profitability a collaborative, diagnostic approach to cropping systems research 349,692 DAW00147 Variety-specific agronomy for wheat yield and quality in the Western Region 250,810 DAW00148 Barley agronomy for the Western Region 391,687 DAW00155 Exploratory practices in the Western Region 25,000 DFT1 Coordination of GRDC water balance R&D and collation of results 3,409 DNR00004 SIP08: Combating subsoil constraints 354,281 GRD200 Agronomy Reference Group Western Panel 7,095 LWR25 Contribution towards Managing Climate Variability Program 953,097 MLA00001 Contribution towards Pasture Soil Biology Program 100,000 NEGSFS2 SIP09: Precision agriculture initiative (3,918) NMS00002 Adoption of improved nutrient management practices 210,000 SAN00013 Improvement of no-till farming practices through innovation in sowing, weed control, residue management and precision agriculture systems 200,000 SPA00003 Improvement of nutrient management through effective use of precision agriculture technologies in the southern Australian grains industry 82,000 UA00081 Determining the benefits of fluid fertilisers on neutral and acidic soils in eastern and western Australia 84,804 UA00091 Responses to salinity in barley and pulse crops 15,000 UA00092 Chemistry and crop agronomy in alkaline cropping soils 159,977 UA00095 Field validation of DGT (diffuse gradients in thin films) for phosphorus and extension of the DGT test to other nutrients 100,000 UCS00008 The contribution of subsoil constraints to canola yield decline 260,300 UM00023 Synchronising nutrient supply and crop demand in modern cropping systems 316,451 UM00027 Effect of elevated carbon dioxide on wheat-based production systems under Australian field conditions 299,890 UM00028 Indirect greenhouse gas emissions from wheat sheep farming systems 174,943 UNE00009 Chair in Mixed Farming Systems 85,805 UNS00002 Active implements for precision seed and fertiliser placement 26,800 UQ00037 Improved performance of cereal roots in Australian farming systems Matching roots to cropping systems in the northern cropping region 125,000 US00017 Incorporating precision agriculture into Australian farm management 168,204 US00033 Development of a multi-sensor platform for real-time collection of field soil data 73,390 US00036 Develop a set of precision agriculture education and training modules aimed at Australian grain growers and others working in the grains industry 99,888 US00037 Development of tertiary-level education material for precision agriculture 96,616 USA00005 Improving sowing system technologies for no-till cropping 30,000 UT00009 Delivering a world-class root model to Australian grains researchers 131,725 UWA00031 Optimising potassium cycling in crops and soils for improved grain production in Western Australia 115,225 UWA00081 Combating subsoil constraints: Unlocking crop potential through innovative subsoil management 439,000 UWA00083 Lectureship in pasture science at UWA 40,012 UWA00084 Profitable and sustainable nutrient management in the Western Australian grains industry 263,000 UWA00089 Delivering rapid soil tests to growers 152,023 UWA00090 Root systems for Australian soils: Root traits for hardpan penetration and water extraction in wheat 124,532 UWA396 High water use farming systems that integrate crops with perennial pastures 169,076 GRDC PROJECT LIST 139

144 Project no. Project title Expenditure $ UWA397 National field evaluation and selection of new pasture plants from the salinity CRC to improve hydrological stability 345,000 UWS00007 Improved management of nutrient and soil water interactions in the northern grain zone 126,132 WAN00012 New frontiers no-till farming systems 244,284 WAN00013 Cover crops for no-till farming systems 55,700 WWL00001 Bringing it all together for the grains industry A whole of catchment approach to integrated water management 187,536 Total Agronomy and Soils 14,445,247 GRDC ANNUAL REPORT CROP PROTECTION AKC00001 Registration for minor use chemicals for the grains industry 123,000 ANU00002 Lectureship in plant microbe interactions 54,296 ANU00006 Exploring a model system to develop controls for plant parasitic nematodes 102,123 CRW5 CRC for Australian Weed Management 750,000 CSE00027 Insecticide resistance and sustainable management of aphids 126,300 CSE00028 Natural enemy evaluation of the silverleaf whitefly (SLW) and ecological processes affecting SLW dispersal 170,200 CSE00029 National Invertebrate Pest Initiative 424,349 CSE00037 Curation and development of invertebrate collections within the Australian National Insect Collection 65,925 CSP00079 Non race specific (broad spectrum) adult plant rust resistance in wheat 277,972 CSP00096 Crown rot resistant bread wheat through new knowledge of epidemiology and genetics 47,508 CSU00006 Integrated weed management in southern New South Wales 191,500 CSV00002 Biological control of mice Immunocontraception 75,000 DAN00066 More profitable chickpeas through disease management Northern Region 100,000 DAN00067 Differential herbicide tolerance of winter crops in south-eastern Australia Stage 2 144,900 DAN00068 Integrated disease management in field crops with emphasis on sclerotinia stem rot in canola 127,300 DAN00079 Risk assessment and preventative strategies for herbicide resistance in the northern grain region (Phase 2) 206,000 DAN00086 Assessment of IPM strategies to control insects in rotational farming systems of the southern region 50,125 DAN00095 Helicoverpa spp. insecticide resistance: Monitoring, mechanisms and management 91,061 DAN00099 The importance and control of thrips in faba beans in northern New South Wales 100,012 DAN485 Management of fusarium diseases and common root rot of cereals in the northern cropping zone 280,159 DAQ00073 Implementing technologies and strategies to maintain resistance to sunflower rust 189,806 DAQ00074 Facilitating integrated pest management adoption in Northern Region broadacre farming systems 150,000 DAQ00079 Modelling for sustainable glyphosate use in the Northern Region 104,000 DAQ00086 Integrated pest management for pulses in Northern Australia Sustainable production in a changing cropping environment 142,489 DAQ00096 Emerging foliar wheat disease issues in the Northern Region 154,500 DAQ00097 Determining the cause, extent, impact and potential control measures for an unidentified disorder in sunflower crops in central Queensland 125,404 DAQ00105 Continued delivery of applied solutions to weed issues in central Queensland 109,620 DAQ00106 Herbicide tolerance of barley and wheat cultivars in the Northern Region (Phase 3) 75,000 DAQ00107 Cropping options to limit root lesion nematodes 109,933 DAQ00108 Reducing the impact of pulse diseases in the Northern Region 157,

145 Project no. Project title Expenditure $ DAS00070 Varietal herbicide tolerance in the Southern Region incorporating national coordination 90,000 DAS00071 Pathology in pulse crops in the Southern Region South Australia module 143,175 DAS00072 Rhizoctonia management Future directions for the Southern Region 70,000 DAS00073 Crown rot management for durum and bread wheats for the Southern Region 195,000 DAV00062 Victorian cereal pathology support with emphasis on crown rot management 246,680 DAV00078 Victorian pulse pathology and virology support program 120,040 DAW00106 Managing disease constraints in Western Region farming systems 599,125 DAW00114 Applied weed management in Western Australia 250,000 DAW00123 A systems approach to enhance the adoption of integrated weed management techniques in the northern agricultural region of Western Australia 201,620 DAW00124 Rotations to reduce impact of nematodes in western cereal-cropping systems 193,527 DAW00127 Crop pest management for farming systems in high-rainfall areas of southern Australia 151,363 DAW00131 Management of annual ryegrass using deleterious rhizobacteria 133,736 DAW00132 Improving the management of Diamondback moth (Plutella xylostella) in canola in the Western Region 109,989 DAW00134 Evaluating herbicide tolerance with new crop varieties 174,907 DAW00141 Developing a sensitive dry seed test to detect seed-borne viruses in bulk seed samples of wheat 174,786 DAW617 Weed control in crops using alternative technology to broadacre spraying systems 8,170 DNR00007 SIP08: Advanced techniques for managing subsoil constraints 100,320 HFG00005 Improving weed control options in conservation farming systems 169,300 IPM00002 Developing and demonstrating integrated pest management in broad-acre cropping 108,500 NPB00001 Evolution of Russian wheat aphid virulence and resistance sustainability 93,310 NPB00002 Enhancing the detection of Tilletia indica, the cause of Karnal bunt 99,958 NPB00003 Contingency plans for emergency plant pests of the grains industry 106,270 PR98 Project Review 2005 Grain Protection Genes 1,003 PR99 Project Review 2006 Crown rot 7,849 SFS00015 Optimising cereal profitability in the high-rainfall zone through the integration of disease management and canopy management principles 410,900 UA00071 Control and eradication of a parasitic weed, field trials 205,103 UA00075 Managing the risks of trifluralin resistance in no-till cropping systems 120,069 UA00088 Understanding and management of weed resistance to glyphosate 127,410 UBR00001 Fungicide resistance strategy 50,000 UM00015 Epidemiology and control of botrytis grey mould in lentils 55,147 UM00020 Strategies to ensure longevity of blackleg disease resistance genes in canola 100,200 UM00021 Monitoring populations of the blackleg fungus to develop strategies for deployment of resistance genes in oilseed brassicas 112,700 UM00022 Emerging mite pests in southern Australia 62,316 UM00026 Fungal pathology developments for management of oilseed brassicas in Australia 279,919 UMU00021 Australian Centre for Necrotrophic Fungal Pathogens Disease resistance 50,000 UMU00022 Australian Centre for Necrotrophic Fungal Pathogens 433,814 UNE62 Field studies and management of crown rot in the Northern Region 100,864 UQ00032 Advanced application technology to manage spray drift and improve the efficacy of weed management practices 110,000 UWA00097 Improved herbicide tolerance for pulses in the Western Region 149,263 UWA399 Western Australian Herbicide Resistance Initiative Phase 2 592,534 Total Crop Protection 11,334,558 GRDC PROJECT LIST 141

146 Project no. Project title Expenditure $ GRDC ANNUAL REPORT VALIDATION AND INTEGRATION AGM00001 Western Agribusiness Trial Extension Network 12,500 AGV00002 Northern Agribusiness Trial Extension Network 12,500 AOF00006 Oilseed Industry Support Program Increasing the value of the Australian oilseeds industry through enhancing productivity and value 168,000 BBC00002 Review of central Queensland farming systems 6,369 BBC00003 High-rainfall Zone Coordinator 125,000 BWD00006 The REAL Project Relevant, experienced, applied learning 221,450 BWD00008 Flexible farming systems to meet the challenges of farming the southern Mallee and northern Wimmera 236,200 CFI00009 Guiding growers to more profitable and sustainable cropping systems in the western districts of the northern grain belt 152,610 COS00001 Northern Agribusiness Trial Extension Network 12,500 CSA00009 Plant available water content Workshop delivery to growers 13,610 CSA00011 Training growers to manage soil water 246,932 CSP00009 Increasing farm profits in the high-rainfall zone using mixed cropping grazing systems based on winter wheats 85,000 CSP00097 Managing crops, animals and crop disease in mixed-farming systems based on dual-purpose wheats 65,000 CWF00007 Central west farming systems Extension and development 309,140 DAN00100 Northern Agribusiness Trial Extension Network 19,700 DAN00102 CropMate Climate information for crop production 78,989 DAQ00049 Sustainable farming systems for central Queensland 740,031 DAQ00050 Eastern Farming Systems Project Phase 2 (EFSII) A partnership for participatory RD&E in the north-eastern grains belt 562,752 DAQ00063 Viable and sustainable farming systems on ferrosols 184,485 DAQ00068 Networking innovation in grower groups 50,798 DAQ00091 Tool kits for BMP in peanuts Development extension for rapid adoption of decision support using commercial industry networks 133,356 DAQ00103 Western Farming Systems 3 Queensland: Validation and integration of new technologies through grower groups in south western Queensland grain-growing region 129,870 DAQ00109 Barley industry development for the Northern Region 119,496 DAQ00116 Central Queensland sustainable farming systems Phase 3 800,000 DAT00003 Enhancing TOPCROP and GRDC extension delivery in Tasmania 82,768 DAV00077 Barley agronomy and industry development for southern Australia 81,380 DAW00100 Pulse industry extension Expanding pulse cropping by targeted extension of improved varieties and management packages 298,894 DAW00149 Barley industry development for the Western Region 77,995 DEL00001 Agribusiness Trial Extension Network 12,500 FFC00001 Western Agribusiness Trial Extension Network 12,500 FGI00002 Western Agribusiness Trial Extension Network 12,300 FGI00005 Western Agribusiness Trial Extension Network 10,690 FLR00002 FarmLink: Supporting the establishment of a new farming systems group for southern New South Wales 194,700 GSA00002 Northern Agribusiness Trial Extension Network 12,500 HBS00001 Agribusiness Trial Extension Network 12,500 HFG00004 Straight to the Hart Profitable farming for the future 100,000 HOR00003 Western Agribusiness Trial Extension Network 12,

147 Project no. Project title Expenditure $ HOR00004 Linking knowledge sharing information 200,000 ICF00004 Lifting irrigated cropping profitability and water use efficiency Victoria 79,475 ICF00005 Lifting irrigated cropping profitability and water use efficiency New South Wales 178,150 ICF00006 Oilseeds Industry Development Officer Expansion of oilseed crops (with a focus on canola and soybean) for the irrigation and dryland areas of southern New South Wales and Victoria 130,000 ICF00007 High yield potential winter cereal genotypes for irrigated environments in eastern Australia 124,494 IMA00001 Agribusiness Trial Extension Network 11,375 IMA00002 Northern Agribusiness Trial Extension Network 12,300 JSA00002 Southern Agribusiness Trial Extension Network 25,000 JSR00001 Southern Agribusiness Trial Extension Network 12,500 KAL00001 Refinement of crop input and management strategies to optimise farm profitability and reduce risk 12,370 LIE00005 Growers critically analysing new technologies for improved farming systems 197,568 LWR00003 Healthy Soils for Sustainable Farms Programs 400,000 LWR23 Contribution towards Grain and Graze Program 496,000 MFI00001 Western Agribusiness Trial Extension Network 12,199 MFM00002 Increasing crop yields on Kangaroo Island and in the south-east of South Australia 156,200 MIG00008 The Grower Group Alliance Innovation through grower groups 177,940 MSF00002 Mallee Sustainable Farming project 546,668 NFG00001 Western Agribusiness Trial Extension Network 12,500 NGA00001 Validation and integration of new technology through grower groups in north-west New South Wales and south-west Queensland grain-growing zones 327,020 OCR00001 Best practice benchmarking 120,594 PAL00007 Crop support for the northern and southern regions 343,910 PHR00001 Northern Agribusiness Trial Extension Network 12,500 PLN00003 Western Agribusiness Trial Extension Network 12,500 RAI00001 Western Agribusiness Trial Extension Network 9,000 RPI00003 Zonal management in the riverine plains 10,750 RPI00006 Improving winter cropping systems in the riverine plains 152,062 RSS00001 Farming systems improvement in the upper north of South Australia 111,930 SFP06.1 Grower group support 16,111 SFS00014 Investigating stubble management systems to reduce dependence on burning in the high-rainfall zone region of southern Australia 183,585 SFX00003 Western Agribusiness Trial Extension Network 12,500 SYN00001 Western Agribusiness Trial Extension Network 12,500 SYN00002 Western Agribusiness Trial Extension Network 12,500 UA00087 Eyre Peninsula Farming Systems Project 2 508,286 UNE00007 Graduate Certificate and Certificate in Sustainable Grains Production 66,025 UT00014 Addressing key limitations to the development of high-value grain crops in Tasmania 150,000 UWA00082 Improving the adoption of technology by neighbourhood grower groups 23,000 WAN00008 Western Australian No-Tillage Farmers Association technology demonstration site 100,000 YPA00001 Robust, profitable and sustainable farming practices on Yorke Peninsula 155,000 Total Validation and Integration 10,532,027 GRDC PROJECT LIST 143

148 Project no. Project title Expenditure $ EXTENSION AND GROWER PROGRAMS AFQ00005 Research advisory committees Northern Region 72,500 AOF00004 Oilseeds Industry Development Officer Expansion of oilseed crops (with a focus on canola and soybean) for the irrigation and dryland areas of southern New South Wales and Victoria (30,000) CCS01-1 GRDC customer database 2,607 CCS32-1 Grains Research Updates 10,000 CCS36-1 Website redevelopment 5,624 CRD00002 Drift management extension strategy for the Northern Region 75,000 DAW00150 Further development of the Crop Updates Partnership 99,657 DRL00001 Conversion of investment booklets for the GRDC website 3,000 GST00001 Agribusiness technology transfer 70,000 ICN00006 Grains Research Updates Newsletter in the Northern Region 168,200 JAB00001 Website redevelopment services 60,000 JLC00011 GRDC Southern Region Crop Updates 322,000 NFA00005 Research advisory committees New South Wales 26,000 OBR00001 Development and production of Driving Agronomy 2006 audio CD 9,000 PSD36 Online technology dissemination 50,445 RDC14 Joint Farm Health and Safety Program 60,000 RMP00002 Development of Grains Research Updates 2007 CD 40,555 RRA00001 GRDC Website Redevelopment Project 80,700 SAF00004 Research Advisory Committees South Australia 26,000 UQ00034 Improving understanding and awareness of intellectual property amongst grain growers in Australia 199,950 VFF00006 Research advisory committees Victoria 26,000 Total Extension and Grower Programs 1,377,238 TOTAL PRACTICES 37,689,070 GRDC ANNUAL REPORT NEW FARM PRODUCTS AND SERVICES AGL00008 A scoping study into the state of knowledge and opportunities for investment in nitrogen fixation in cereal and canola crops arena in Australian crop rotation 100,000 ANU19 Development of specific microbial and transgenic technology to control fungal pathogens: A commercialisation project based on patent 193,192 AWR00004 Contribution towards the National Rhizobium Program (319,265) BRI00027 Objective grain quality testing 500,000 BRI00038 Engagement of Asian partners for hybrid baking project 44,000 CAD00001 Registration and commercialisation of new chemicals 30,000 CSE00035 Assessing limits of existing harvest bag technology under Australian conditions 179,775 CSE00040 Registration and extension of the use of new ethyl formate formulations on stored grain and structural treatment 218,024 CSE00041 Development of an integrated aeration fumigation system 241,462 CSE00044 Identifying mechanisms involved in phosphate solubilisation and plant-growth promotion by Penicillium-based rhizosphere inoculants 140,076 CSP00050 Quantifying the effect of hydrogen gas on soil biota and crop performance 184,611 DAN00097 National independent quality assurance and germplasm maintenance for rhizobium inoculants 111,090 DAQ00083 Integration of biopesticides into integrated pest management against sucking pests 133,750 DAS00036 Inoculants for soil-borne disease control 178,

149 Project no. Project title Expenditure $ HAW00001 Purchase of shares from the high-amylose wheat joint venture company 308,500 NEM00001 Commercialisation of minor rhizobial strains 75,750 NP01-2 Biological Inputs for Profitable Farming Philom Bios innoculum trials 24,258 NP15 Commercialisation costs 46,698 NP16-1 CFP&S Survey 6,032 PAL00009 Objective measurement of pulse qualities 50,000 PBA00001 Develop and market a range of inoculant products in Australia and the Asian regions designed to provide benefits to agricultural growers (300,000) RJH00001 National Output Development and Evaluation Project GRDC Soil Biology Initiative 30,000 UCS00010 Feasibility study of native invertebrate parasitic nematodes for control of snails and slugs 76,154 UF00002 Application of actinomycete endophytes for improved grain yield 375,500 UMU00003 National Rhizobium Program Managing rhizobia to maximise nitrogen fixation by legumes in agriculture 868,989 UWA00058 Biological indicators of soil quality 150,000 Total New Farm Products and Services 3,647,096 NEW GRAIN PRODUCTS ABB00001 Grains Microbial Baseline Survey 7,000 ARB00001 Crop Biofactories Initiative International reference panel 27,000 CGF00001 Grain Foods CRC Ltd 750,000 CGF00002 Grain Foods CRC Ltd Director Fees 25,000 CGF00003 National Lupin Allergy Project 70,000 CSA00012 Energy efficiency, self-sufficiency and production at farm to regional scale 9,407 CSE00030 Crop Biofactories Initiative 1,661,000 CSP00060 Starch Viscosity Project 181,428 CSP00084 Development of wheat with altered carbohydrate digestibility (starches) for food and industrial applications (536,000) CSP00088 Coeliac-friendly cereals Phase 3 179,030 DAN00075 Statistical analysis and data mining for the Premium Grains for Livestock Program 29,250 DAN00083 Resistance management of stored-grain insects in the Southern Region 152,100 DAQ00075 Optimising grain yield and quality: Integrating high moisture harvesting and grain storage strategies. 600,000 DAQ00090 Resistance monitoring and management Northern Region 127,230 DAQ00098 Phosphine fumigation of cool grain 97,668 DAQ00115 Consultancy A strategic approach to managing resistance to phosphine in the grains industry 78,000 DAW00129 Resistance monitoring and management Western Region 97,215 EMF00001 Consultancy A research trip and report on biomass ethanol technologies in North America and preliminary crop biomass mapping 75,175 EOB00001 Truegrain 30,000 GOG00001 GoGrains Membership subscription 350,000 GOG00003 GoGrains Health and nutrition 100,000 JCS00002 Benefit to Australian grain growers in the feed grain market 73,520 JPC00001 Crop Biofactories Initiative International reference panel 66,328 NP02-1 Stored Grain Pest Resistance Management Initiative Invoices 5,000 NP31-1 Contribution towards Industry Feed-Grain Partnership 70,750 NP32 GM pathway to market 52,384 GRDC PROJECT LIST 145

150 Project no. Project title Expenditure $ NPL00001 Scenario planning and feasibility for sunflower pectin 20,000 PCL00002 Enhancement of NIR calibrations for predicting the energy value of weather-damaged grains for pigs 100,032 PCL00003 Sorghum lines with enhanced starch availability for pigs and ethanol production 35,136 SBC00001 Crop Biofactories Initiative International reference panel 10,672 SDD00001 GM pathway to market 250,500 SEP00003 Opening the harvest window for yield, quality and profit on the south coast of Western Australia 75,000 SMC00001 Consultancy GoGrains Health and Nutrition Ltd 20,000 TCC00001 Consultancy Feed grains 647 VC01 Market intelligence: Existing 1,558 VC01-1 Market intelligence: Existing 33,677 WJM00003 Coordination of registration of grain storage chemicals 65,240 YEL00002 Facilitating investment in value-adding in Australia s grain industry Extension 60,000 Total New Grain Products 5,050,947 TOTAL NEW PRODUCTS 8,698,043 GRDC ANNUAL REPORT BUILDING RESEARCH CAPACITY AAC00003 Conference sponsorship Agriculture Australia ,000 ACT00001 Conference sponsorship Fifth Australian Controlled Traffic Farming Conference CTF07 10,000 AFQ00006 Travel award To attend the Thirteenth Australian Barley Technical Symposium 1,500 AIA00004 Conference sponsorship Tomorrows Agricultural Scientist Meeting the needs of industry 5,000 AIS00001 Conference sponsorship 2007 AFISC National Conference 6,000 ALA00001 Conference sponsorship Twelfth International Lupin Conference 10,000 ANU00004 Environmental management systems in agriculture: A comparative analysis of initiatives in the European Union and Australia 10,000 ARL00006 Australian Rural Leadership Foundation 98,000 ATA46 Agricultural training award to study at TAFE New South Wales Riverina Institute, Primary Industries Centre, North Wagga Wagga 3,000 ATA47 Agricultural training award to study at TAFE New South Wales Riverina Institute, Primary Industries Centre, North Wagga Wagga 3,000 ATA48 Agricultural training award To attend Australian Agricultural College Corporation, Emerald Campus 3,000 ATA49 Agricultural training award To attend Western Australian College of Agriculture, Cunderdin Campus 3,000 BAE00014 Conference sponsorship Outlook ,000 BRI00032 Research Horizons for Grain Leaders of the Future Course 147,800 BRS00010 Sponsorship of 2007 Science and Innovation Awards for Young People in Agriculture, Fisheries and Forestry 16,000 BWD00010 Travel award To attend the agricultural expos, farmer group open days and agricultural learning centres in the United Kingdom 4,500 CFM00006 Conference sponsorship Biofuels, Energy and Agriculture: Powering Towards Food Security? 5,000 CSD00002 BHP Billiton Science Awards ,000 CSO00039 Travel award To attend the Sixth European Conference on Precision Agriculture 3,500 CSP00086 CSIRO Summer Student Program ,

151 Project no. Project title Expenditure $ CSP00092 Travel award To participate and speak at the International Triticeae Mapping Initiative Workshop 3,500 CSP00093 Travel award To attend the Bouyoucos Conference 2007 International Conference on the Origin of Soil Water Repellency 2,500 CSP00095 Travel award To attend the Third International Conference of Quantitative Genetics 4,500 CWC00004 Conference sponsorship Central West Conservation Farming Association Annual Conference and Field Day 2007 and associated Conservation Agriculture Alliance of Australian and New Zealand meeting 7,500 DAN00103 Conference sponsorship Field measurement of nitrogen fixation 10,000 DAQ00111 Travel award To attend the Eighty-seventh American Meteorological Society Annual Conference 2,000 DAQ00112 Travel award To attend the Twelfth Australian Barley Technical Symposium 4,500 DAQ00113 Travel award International travel as part of the GRDC Bruce McClelland Memorial Award 5,000 DAQ00114 Travel award To attend the Society for Invertebrate Pathology Conference, Quebec, and United States Department of Agriculture Laboratory, Cornell University 8,589 DAS00077 Travel award To attend the Second Conference on Precision Crop Protection 3,500 DAW00152 Travel award To attend the Seventh Workshop of the Physical and Cultural Weed Control Working Group of the European Weed Research Society and a spray application technology course 3,000 DAW00153 Conference sponsorship Thirteenth Australian Barley Technical Symposium 15,000 DAW00154 Conference sponsorship Fifteenth Australian Research Assembly on Brassicas Conference 6,000 FLR00003 Travel award To attend the Fifth Australian Controlled Traffic Conference 2,500 GCA00019 Travel award To attend the International Federation of Agricultural Producers World Congress of Young Farmers 6,500 GRS100 Grains Industry Research Scholarship (CUR) Wheat quality and product quality requirements for steamed breads and steamed buns made from soft and hard wheat 30,000 GRS101 Grains Industry Research Scholarship (UWA) Metabolomic profiling in plants to understand the role of mitochondria in environmental stress tolerance 30,000 GRS102 Grains Industry Research Scholarship (UWS) Managing competitive rhizobial populations of low effectiveness in New South Wales chickpea cropping soils. 30,000 GRS103 Grains Industry Research Scholarship (UA) The isolation and characterisation of meiosis-specific proteins in bread wheat 30,000 GRS104 Grains Industry Research Scholarship (UA) An examination of the role of the thioredoxin h family in the stress response of cereals 30,000 GRS105 Grains Industry Research Scholarship (SWI) Investigation of the gene family encoding aquaporins, the protein channels regulating water movement, in wheat 30,000 GRS106 Grains Industry Research Scholarship (UMU) Regulation of nitrogen fixation in Sinorhizobium meliloti on the annual pasture legume medicago 30,000 GRS107 Grains Industry Research Scholarship (UWA) Wheat root architecture response to heterogeneous spatial and temporal supply of potassium 30,000 GRS108 Grains Industry Research Scholarship (ANU) Characterisation of aluminium tolerance genes in crop plants 30,000 GRS109 Grains Industry Research Scholarship (UWA) Physiological and molecular basis of salt tolerance in Lotus glaber, a new perennial pasture legume for salt-affected land 30,000 GRS110 Grains Industry Research Scholarship (UWA and CSP) Molecular and genetic study of plant resistance to aphid 30,000 GRS114 Grains Industry Research Scholarship (UQ) Discovery of genes involved in transmitting the long-distance RNA silencing signal 30,000 GRS115 Grains Industry Research Scholarship (ULA) Characterisation on the XERO2 system in Araidopsis thaliana 30,000 GRDC PROJECT LIST 147

152 Project no. Project title Expenditure $ GRDC ANNUAL REPORT GRS116 Grains Industry Research Scholarship (UMU) The role of secondary metabolites of the model legume, Medicago truncatula, in plant defence 30,000 GRS117 Grains Industry Research Scholarship (RMIT) Ingredients, fortification and colour characteristics of instant noodles 30,000 GRS118 Grains Industry Research Scholarship (USC) Nanotechnology and locked nucleic acid probes for DNA diagnostics and genotyping in grains 30,000 GRS119 Grains Industry Research Scholarship (SWI) Investigations of wheat genes encoding immunophilins involved in regulations of storage protein folding 30,000 GRS120 Grains Industry Research Scholarship (UM) Population genetics of the lucerne flea with applications for biocontrol 30,000 GRS121 Grains Industry Research Scholarship (UM) Sustainable resistance of Brassica napus to Leptosphaeria maculans 16,314 GRS123 Grains Industry Research Scholarship (UQ) Genetic control of long-distance RNA silencing in plants 10,000 GRS124 Grains Industry Research Scholarship (UQ) Novel genes regulating plant defence 8,750 GRS125 Grains Industry Research Scholarship (QUT) Characterisation of the NF-Y family of transcription factors in wheat 10,000 GRS126 Grains Industry Research Scholarship (UWA) Intellectual property rights and the optimal allocation of an agricultural R&D investment portfolio 8,750 GRS127 Grains Industry Research Scholarship (CUR) Adaptations for growing wheat in a drying climate 11,250 GRS128 Grains Industry Research Scholarship (UMU) A bioinformatics approach for identification of pathogenicity factors and fungicide targets in Stagonospora nodorum and closely related necrotrophic fungi 11,250 GRS129 Grains Industry Research Scholarship (UA ACPFG) Characterisation of transcription factors important in regulating salinity tolerance 10,000 GRS130 Grains Industry Research Scholarship (UM) Integrated and sustainable control of pest mite species 10,000 GRS131 Grains Industry Research Scholarship (US) Novel plasmodesmatal proteins and their role in transport in plants 10,000 GRS132 Grains Industry Research Scholarship (UNS) Amelioration of irrigation salinity for wheat cultivation using cyanobacteria and mycorrhizal fungi 12,500 GRS67 Grains Industry Research Scholarship (UA) QTL determination under association mapping 3,125 GRS80 Grains Industry Research Scholarship (UM) Fortuitous biological control as a sustainable provider of pest control 34,500 GRS81 Grains Industry Research Scholarship (US) Genetic and pathogenic variation in field population of the crown rot fungus (Fusarium pseudograminearum) 20,000 GRS82 Grains Industry Research Scholarship (UMU) Disease resistance to phytophthora in Medicago truncatula 26,250 GRS83 Grains Industry Research Scholarship (ULA) Pollen development in plants 5,000 GRS84 Grains Industry Research Scholarship (CSP UQ) Isolation and characterisation of transcription factors from wheat involved in drought adaptation 33,750 GRS85 Grains Industry Research Scholarship (UWA) The biology and control of Salsola tragus 27,500 GRS86 Grains Industry Research Scholarship (UWA) Host Plant Resistance in Medicago truncatula (Leguminosae) to Acrythosiphon pisum (Aphididae). 27,500 GRS87 Grains Industry Research Scholarship (RMIT) Enhancing crop utilisation through chloroplast targeted expression of cellulase genes in plants 18,750 GRS88 Grains Industry Research Scholarship (UM) Biosynthesis and role of fungal toxins in blackleg disease of canola 28,

153 Project no. Project title Expenditure $ GRS89 Grains Industry Research Scholarship (RMIT) Molecular interactions during preparation of Asian noodles and manipulation of nutritional and organoleptic characteristics 15,000 GRS90 Grains Industry Research Scholarship (US) Precision agriculture and whole-farm planning for sustainability 30,000 GRS91 Grains Industry Research Scholarship (CSIRO Molecular Science) Lignin from various straws as a renewable source of monomer (and other feedstock chemicals) 23,959 GRS94 Grains Industry Research Scholarship (CSP UQ) Wheat with enhanced resistance to fusarium diseases 17,500 GRS99 Grains Industry Research Scholarship (UMU) Metabolism and infection in the Stagonospora nodorum wheat pathosystem 30,000 ICA00005 Travel award To attend the Ninth International Conference on the Ecology and Management of Alien Plant Invasions 2,665 IDA00006 Industry Development Award Beyond the boundaries study tour 1,425 IDA00011 Industry Development Award Exchanging ideas with the successful Victorian cropping group (3,474) IDA00016 Industry Development Award Finding the balance 7,600 IDA00017 Industry Development Award Victorian no-till study tour 6,000 IDA00018 Industry Development Award Can reduced tillage, stubble retention and rotation improve my farming system? 15,000 IDA00019 Industry Development Award Information exchange tour 9,000 IDA00020 Industry Development Award Lessons from the United States: Exploring the United States Canada soybean, peanut and alternative fuels industries to identify opportunities for the Australian grain and cane industry 5,000 IDA00021 Industry Development Award Southern Victoria agriculture tour 3,800 ILC00001 Conference sponsorship 2006 International Landcare Conference 4,545 IST47 In-service Training Award (DAV) Challenges of advancing conservation agriculture on Kenya s farmlands 5,000 NAS00002 Conference sponsorship Fourteenth Australian Soybean Conference: Success with Soybeans 5,000 NUF00008 Nuffield Farming Scholarships 135,000 NYS2 Australian Nuffield Farming Scholars Association Scholarships 25,000 OIW00001 Conference sponsorship Grains West Expo ,500 PAL00013 Travel award To attend the CICILS International Pulse Industry Confederation Executive meeting and annual convention 3,000 PSD25-1 Knowledge management 39,996 RCI00004 Conference sponsorship Fifty-seventh Australian Cereal Chemistry Conference 5,000 RWF00008 Capacity audit 25,000 SAF00005 Conference sponsorship South Australian Farmers Federation Grains Council Annual General Meeting 2007[ 3,000 SAN00014 Conference sponsorship Ninth Annual South Australian No-till Farmers Association Conference ,500 SF25 Senior Fellowship (CSA) What prospects for increased on-farm grain productivity in Australia? 20,000 SFS00005 Developing Leadership Skills in Young Growers 17,000 UA00096 Conference sponsorship Sixteenth Biennial Australasian Plant Pathology Society Conference 8,000 UAH00002 Travel award To attend the Hart Field Trial site 650 UHS108 Undergraduate Honours Scholarship (UWA) Topdressing of legumes with dry granular inoculum, ALOSCA 6,000 GRDC PROJECT LIST 149

154 Project no. Project title Expenditure $ UHS109 Undergraduate Honours Scholarship (UWA) Small chaperone proteins in mitochondria for protection of plant respiration during stress 6,000 UHS110 Undergraduate Honours Scholarship (UWA) Investigation of possible non-target site resistance mechanisms endowing atrazine resistance in wild radish populations 6,000 UHS111 Undergraduate Honours Scholarship (UWA) Examining the cross-resistance patterns of diflufenican-resistant wild radish populations 6,000 UHS112 Undergraduate Honours Scholarship (UF) Investigation of flax rust resistance R/Avr protein interactions in vitro 6,000 UHS113 Undergraduate Honours Scholarship (ULA) Identification of secreted proteins, produced by the recalcitrant fungus, Sclerotinia sclerotiorum, that contribute to canola white rot disease 6,000 UHS114 Undergraduate Honours Scholarship (UWA) Low-input versus high-input farming systems: their relative performance 6,000 UHS115 Undergraduate Honours Scholarship (UQ) Selection for dormancy in white-grained wheat: Progress towards preharvest sprouting resistance 6,000 UHS116 Undergraduate Honours Scholarship (UA) Fungal gene expression in the Rhynchosporium secalis barley interaction 6,000 UHS98 Undergraduate Honours Scholarship (UM) Establishment and early growth of Brassica napus and Brassica juncea 6,000 UT00011 Building Human Capacity: Linking schools to universities through to primary industries 150,000 UWA00107 Travel award To attend the Twelfth International Rapeseed Congress 2,170 UWA00108 Travel award To attend and present at the Fifty-first Annual Conference of the Australian Agricultural and Resource Economics Society 1,600 UWA00109 Travel award To attend the Fifth International Rothamsted Research Resistance Conference ,500 VF00006 Visiting Fellowship Award (UNS) Dynamics and control of Autonomous Tractor-implement Systems 6,000 VF00007 Visiting Fellowship Award (ACP) Genetic studies of drought tolerance in wheat 12,100 VF00008 Visiting Fellowship Award (DAW) Characterisation of low-phytic acid wheat and barley 17,500 VIC00006 Conference sponsorship GRDC Irrigation Update ,500 WAF00005 Conference sponsorship WA Farmers Annual Conference ,000 WAN00014 Conference sponsorship Sixteenth Annual Western Australian No-Tillage Farmers Association Conference ,500 Total Building Research Capacity 2,081,364 GRDC ANNUAL REPORT CORPORATE COMMUNICATIONS BCA00002 Western Region Communicator BCA00003 Western Region Communicator Services 126,000 BER00005 International Research Review 30,300 BMP00001 Printing of the Birchip Cropping Group s Managing Herbicide Resistant Ryegrass booklet[ 13,235 CAN00002 Warehousing and distribution of GRDC publications, periodicals and promotional material 50,000 CCS26 Information products and services performance analysis (7,274) CCS27-1 Design, production and printing of CD ROM material 11,855 CCS27-2 Frost booklet 20,000 CIC00003 Northern Region Communicator Services 74,965 COR00007 Ground Cover newspaper 1,108,050 COR00008 Ground Cover supplements 213,996 COR00009 Ground Cover Direct Publications Catalogue ,

155 Project no. Project title Expenditure $ COR00010 GM biotechnology booklet ,921 COR00011 Repurposing of research report information for a grower audience 164,000 COR00012 Regional fact sheet for growers 173,000 DER00009 Component 1 Grower group discussions to evaluate effectiveness of GRDC information products and services 40,650 DER00010 Component 2 Qualitative leading grower and opinion leader study to evaluate effectiveness of GRDC information products and services 12,700 DER00011 Component 3 Quantitative grower study to evaluate effectiveness of GRDC information products and services 44,200 JLC00012 Design and printing of snail grower fact sheet 2,980 KDI00016 A Guide to Grain Market Lingo or similar title of publication 55,580 MAA00005 The Cob magazine 10,000 MAD00001 GRDC rust audit 5,850 PAL00012 Pulses in stock feed 13,200 PIG00003 Partners in grain 190,000 PIG00004 PinG Database 10,000 PNS00002 Southern Region Communicator Services 213,050 PSD01.1 Corporate communications 70,314 PSD21 Communication campaigns and information packaging 9,843 PSD22 Farming Ahead articles 62,495 RSS00002 Succession planning guide 67,000 RSS00003 Insect Ute Guide Southern Region Version 2 75,000 RSS00004 Canola Ute Guide Version 2 51,500 SDG00001 Development of the GRDC style guide 18,000 WDM00007 Paddock Diary , and ,550 Total Corporate Communications 3,202,152 TOTAL COMMUNICATION AND CUSTOMER SERVICES 5,283,516 ENHANCED MANAGEMENT AAA00005 Increasing informed debate and decision making about gene technology 100,000 BAE00013 Expert advice for the economic and strategic development of the Australian grains industry 540,000 GRD199 Single Vision Grains Australia Interim Board 920,593 GRD43-1 Funding support for Feed Grain Stock Survey 22,728 TOTAL ENHANCED MANAGEMENT 1,583,321 GRAND TOTAL 103,024,322 ACFPG = Australian Centre for Plant Functional Genomics, ACIAR = Australian Centre for International Agricultural Research, ANU = Australian National University, AWCMMP = Australian Winter Cereals Molecular Marker Program, CRC = cooperative research centre, CSA = CSIRO Sustainable Ecosystems, CSIRO = Commonwealth Scientific and Industrial Research Organisation, CSP = CSIRO Plant Industry, CUR = Curtin University of Technology, CIMMYT = International Maize and Wheat Improvement Centre, DAFWA = Department of Agriculture and Food, Western Australia, GM = genetically modified, ICARDA = International Centre for Agricultural Research in the Dry Areas, MPBCRC = Molecular Plant Breeding Cooperative Research Centre, NIR = near-infrared spectroscopy, QUT = Queensland University of Technology, RD&E = research, development and extension, RMIT = Royal Melbourne Institute of Technology, SWI = Swinburne University of Technology, QTL = quantitative trait loci, UA = University of Adelaide, UF = Flinders University, TAFE = College of Technical and Further Education, ULA = La Trobe University, UM = University of Melbourne, UMU = Murdoch University, UQ = University of Queensland, US = University of Sydney, UWA = University of Western Australia, UWS = University of Western Sydney GRDC PROJECT LIST 151

156 Appendix 4: Joint R&D project list Table A4.1 Joint R&D projects, R&D Partners Project Project title Start date Finish date GRDC ANNUAL REPORT ACIAR, GRDC ACA4 Pulse project with ICARDA 01-Jul Jun-07 ACIAR, GRDC ACA5 Oilseed brassica improvement in China, 30-Jun Jun-07 India and Australia AGO, Agriculture and DAW00103 Measurement of paddock-based 31-Dec Jun-09 Food WA, GRDC greenhouse gas emissions from wheat production to improve life cycle assessment of wheat products AGO, DPI Victoria, GRDC DAV00081 Assessment of greenhouse gas 01-Jul Jun-09 emissions in cereal legume cropping systems in Southern Australia AGO, GRDC AGO00002 AGO contribution towards DAW Dec-03 1-Jan-08 Measurement of paddock-based greenhouse gas emissions from wheat production to improve life-cycle assessment of wheat products AGO, GRDC AGO00003 AGO contribution towards UM Jun Jun-09 Indirect greenhouse gas emissions from wheat sheep farming systems AGO, GRDC AGO00004 AGO contribution towards UM Jun Jun-10 Effect of elevated carbon dioxide on wheat-based production systems under Australian field conditions AGO, GRDC, UM UM00027 Effect of elevated carbon dioxide on 01-Jun Jun-10 wheat-based production systems under Australian field conditions AGO, GRDC, UM UM00028 Indirect greenhouse gas emissions from 12-Jun Jun-09 wheat-sheep farming systems ANU, CSIRO, DEST, GRDC, NYS2 National Youth Science Forum 01-April Jun-07 University of NSW, University of Queensland, University of WA APL, CSIRO, DPI Victoria, DAN00075 Statistical analysis and data mining for 01-Jan Jun-08 GRDC, MLA, NSW Agriculture, the Premium Grains for Livestock RIRDC, SARDI, UNE, US Program APL, CSIRO, DPI Victoria, JCS00001 Premium Grain Livestock Program 01-Jan May-07 GRDC, MLA, NSW Agriculture, Technology Transfer and RIRDC, SARDI, UNE, US Commercialisation: Commercial evaluation of new measures of feed grain quality APL, CSIRO, DPI Victoria, JCS00002 Benefit to Australian grain growers in 01-Apr Oct-07 GRDC, MLA, NSW Agriculture, the feed grain market RIRDC, SARDI, UNE, US APL, CSIRO, DPI Victoria, JLB2 Premium Grains for Livestock Program: 01-Jul Jun-08 GRDC, MLA, NSW Agriculture, Component 1 Coordination RIRDC, SARDI, UNE, US APL, CSIRO, DPI Victoria, KSS00001 Premium Grains for Livestock Program 01-Jan May-07 GRDC, MLA, NSW Agriculture, NIR case study RIRDC, SARDI, UNE, US 152

157 Table A4.1 Joint R&D projects, (continued) R&D Partners Project Project title Start date Finish date APL, CSIRO, DPI Victoria, PCL00002 Enhancement of NIR calibrations for 01-Sep Aug-09 GRDC, MLA, NSW Agriculture, predicting the energy value of weather RIRDC, SARDI, UNE, US -damaged grains for pigs APL, CSIRO, DPI Victoria, TCC00001 Consultancy Feed grains 01-Jul Jun-07 GRDC, MLA, NSW Agriculture, RIRDC, SARDI, UNE, US APL, CSIRO, DPI Victoria, US312 Premium Grains for Livestock Program: 01-Jul Jun-08 GRDC, MLA, NSW Agriculture, Component 2 Production, storage and RIRDC, SARDI, UNE, US distribution of grain samples AWI, DA, GRDC, MLA, RIRDC AWR00002 Pastures Australia 30-Jun Jun-07 AWI, GRDC AWR00004 National Rhizobium Program 01-July Jun-08 AWI, GRDC DAN00097 National independent quality assurance 01-Jul Jun-08 and germplasm maintenance for Rhizobium inoculants AWI, GRDC UMU00003 National Rhizobium Program developing and delivering high-quality rhizobial inoculants to the Australian grains and pasture industries 01-July Jun-08 CRDC, GRDC CRD00002 Drift management extension strategy for the Northern Region 01-Jul Jun-07 DAFF, GRDC AFF00003 Corporate Governance for Women sponsorship 01-Jun Jun-07 FRDC, GRDC FRD00001 Aquaculture Nutrition Subprogram Maintenance of strategic directions, project and infrastructure development, and facilitation of nutrition research and extension across all Australian aquaculture sectors 01-Jul Jun-07 GRDC, ICARDA DAN00064 Durum industry development Collaboration with ICARDA to accelerate cultivar improvement for adaptation across all production regions 01-Jul Jun-08 GRDC, LWA LWR00002 Knowledge management in irrigated cotton and grains 22-Mar Jun-07 GRDC, LWA LWR00003 Healthy Soils for Sustainable Farms Program 01-Jul Jun-09 GRDC, LWA LWR23 Grain and Graze Program 01-Jul Jun-08 GRDC, LWA LWR25 Managing Climate Variability Program 01-Jul Jun-07 GRDC, MLA MLA00001 Pasture Soil Biology Program 01-Jul Jun-07 GRDC, RIRDC RDC14 Joint Farm Health and Safety Program 01-Jul Jun-07 ACIAR = Australian Centre for International Agricultural Research, AGO = Australian Greenhouse Office, ANU = Australian National University, APL = Australian Pork Limited, AWI = Australian Wool Innovation Limited, CRDC = Cotton Research and Development Corporation, DA = Dairy Australia, DAFF = Department of Agriculture, Fisheries and Forestry, DEST = Department of Education, Science and Training, DPI Victoria = Department of Primary Industries Victoria, FRDC = Fisheries Research and Development Corporation, ICARDA = International Centre for Agricultural Research in the Dry Areas, LWA = Land and Water Australia, MLA = Meat and Livestock Australia, NIR = near infra-red, RIRDC = Rural Industries Research and Development Corporation, SARDI = South Australian Research and Development Institute, UM = University of Melbourne, UNE = University of New England, UQ = University of Queensland, US = University of Sydney JOINT R&D PROJECT LIST 153

158 Appendix 5: Publications and products The GRDC has a large number of publications and information products, in print and electronic formats. Many hard copy products are provided for free (stocks of some free publications are limited), while others are sold to fully or partially recover the costs of publication. Some publications are available only in electronic format, and can be found on the GRDC s website at Ground Cover direct also provides a catalogue of GRDC publications and an online bookshop. On average, the GRDC s website home page received between 4,000 and 6,500 page views per month in The bookshop received approximately 2,400 page views per month. Most of the GRDC s reports and publications are publicly available. Key publications released in are listed below. Table A5.1 Publications available to the public free of charge GRDC ANNUAL REPORT Corporate publications GRDC Annual Report GRDC Growers Report GRDC Annual Operational Plan Farmer advice sheets Snails alert Information for grain growers Ground Cover The grains industry Six issues and supplements: research newspaper 63 Growers sharing knowledge 64 No-till 65 Grains nutrition 66 Root and crown diseases 67 Climate 68 Integrated weed management Identification guides for grain growers Wheat and barley leaf symptoms: The Back Pocket Guide (revised and reprinted) Slugs: The Back Pocket Guide Reviews of research Pulses nutritional value and their role in the feed industry Tools for grain growers A guide to succession sustaining families and farms Agronomy after the drought 2007 Agronomy after the drought a guide to decision making in 2007 Southern Region Driving agronomy 2006 (audio CD) Grains research updates 2007 (DVD) Paddock diary 2007 Precision agriculture 2007 (video CD) Information for technical advisers Update newsletter, issues 32, 33, 34, 35, 36 and 37, for the Northern Region Update newsletter, issues 42, 43, 44, 45, 46 and 47, for the Southern Region Table A5.2 Publications available for sale to the public Booklets Identification guides for grain growers Making Lucerne Pay Perennial Pastures for Western Australia Canola: The Ute Guide (revised edition) 154

159 References Glossary 156 Compliance index 158 Alphabetical index

160 Glossary The financial year that is, 1 July 2006 to 30 June AB ABARE abiotic stress ACPFG AGT AME BBA biotic stress CAC Act cereal crops CIMMYT CRC CRCNPB CSIRO DAFWA DPI Victoria ascochyta blight Australian Bureau of Agricultural and Resource Economics Stress caused to living organisms by non-living environmental factors, such as cold, heat or drought. Australian Centre for Plant Functional Genomics Australian Grain Technologies Pty Ltd apparent metabolisable energy Barley Breeding Australia Stress caused to living organisms by other living organisms, such as viruses, bacteria, insects or fungi. The Commonwealth Authorities and Companies Act 1997, which is complemented by the Commonwealth Authorities and Companies (Report of Operations) Orders 2005 orders made by the Finance Minister concerning the report of operations component of annual reporting. Members of the grass family grown for their edible, starchy seeds for example, wheat, barley, oats, rye and triticale. International Maize and Wheat Improvement Center, Mexico cooperative research centre Cooperative Research Centre for National Plant Biosecurity Commonwealth Scientific and Industrial Research Organisation Department of Agriculture and Food, Western Australia Department of Primary Industries Victoria Driving Innovation The GRDC Five Year Research and Development Plan EGA EGC Enterprise Grains Australia Export Grains Centre Ltd EPBC Act Environmental Protection and Biodiversity Conservation Act 1999 GRDC ANNUAL REPORT EPR GM GPS GRDC Ground Cover Harvest Radio End Point Royalty genetically modified Global Positioning System Grains Research and Development Corporation A free newspaper produced by the GRDC, with six editions each year The GRDC s web-based service that provides technical information for grain growers, including updates on research, trials, new varieties and farmer activities, and case studies. 156

161 ICARDA IPM IWM MCVP MIR NIR NSWDPI NVT PHA phosphine International Centre for Agricultural Research in the Dry Areas, Syria integrated pest management integrated weed management Managing Climate Variability Program mid-infrared near-infrared spectroscopy New South Wales Department of Primary Industries National Variety Trials Plant Health Australia A colourless gas with a strong fishy smell, used as a pesticide. PIERD Act Primary Industries and Energy Research and Development Act 1989 podcasting precision agriculture Distributing information through digital audio or video files available for download through the internet. The use of spatial information (such as yield maps) to better match crop agronomy techniques, such as fertiliser application, to paddock variations. Prosperity through The GRDC s Strategic R&D Plan Innovation pulses QDPIF R&D RD&E SOE SOI SSC SST SVGA The Way Forward UT VDA WSMV The edible seeds of certain pod-bearing plants, such as peas and beans. Queensland Department of Primary Industries and Fisheries research and development research, development and extension Statement of Expectations Southern Oscillation Index subsoil constraint sea surface temperatures Single Vision Grains Australia The GRDC s strategic business plan. University of Tasmania value driver analysis wheat streak mosaic virus GLOSSARY 157

162 Compliance index GRDC ANNUAL REPORT CAC Act requirements Annual Operational Plan 10, 13, 18, 22, 25, 81 Audit Committee (see Finance, Risk and Audit Committee) Auditor-General s Report 82, 98, 99 Chair s signoff 2 Corporate governance framework 84 statement 10 Corporate Plan/R&D Plan (see Annual Operational Plan above) Developments since end of financial year, affecting operations in future financial years 14, 113 results of those operations in future financial years 113 state of affairs in future financial years 113 Directors particulars access to independent advice 90 induction and training 90 meetings held 89 selection 89 meeting attendance 89 conflict of interest 90 Directors statement 100 Disability strategy 96 Enabling legislation 6, 10 Finance, Risk and Audit Committee 89 Financial Statements Five Year Research and Development Plan 10, 12, 15, 68 Future prospects Government policies (CAC Act, s. 28) 11, 80 Indemnities and insurance premiums for officers 85 Influences on performance (factors, events and trends) factors, events or trends 1 risks and opportunities 45, 84 Judicial decisions and reviews by outside bodies 83 Legislative functions 6, Legislative objectives 6, Location of major activities and facilities 6 9, Ministerial directions, effects 12, 80 Names of responsible ministers 80 Operational and financial results principal outputs 16 17, major investing and financial activities key financial and non-financial performance indicators 1, Organisational structure

163 Performance assessment efficiency and effectiveness in producing outputs 20 22, 27 30, 39 40, 49 50, 57 58, clear links between outcomes, strategies and principal outputs Review of Operations (form and content set out in CAC Orders) performance review statutory objectives and functions 6, Corporate Plan 10, 13, 18, 22, 25, 81 principal outputs and contribution to outcomes 16 17, Service Charter 85 Significant changes in state of affairs and/or principal activities Significant events (CAC Act, s.15) Stakeholders 80 Subsidiaries 74 PIERD Act requirements Acquisition and disposition of real estate Annual Operational Plan implementation 10, 13, 18, 22, 25, 81 Commercial activities Companies in which the GRDC has an interest Five Year Research and Development Plan 10, 12, 15, 68 Funds source 81, 101 expenditure 84, 104 Legislative objectives 6, R&D activities 1, 14 15, 25 (see also performance assessment) Selection Committee Report 88 Other reporting requirements Fraud control 84 Funding of consultation costs for Grains Council of Australia Government s R&D priorities incorporated into the Annual Operational Plan 10, 12 13, 15, 20 22, 25 30, 31 67, Intellectual property management 74 Risk management 84 Statement of Expectations 11, 18, 80 Statement of Intent 11, 18, 80 Other legislative requirements Ecologically sustainable development and environmental performance 75 77, 85 Disability strategy 96 Equal Employment Opportunity (Commonwealth Authorities) Act Freedom of Information Act Occupational Health and Safety (Commonwealth Employment) Act Privacy Act COMPLIANCE INDEX 159

164 Alphabetical index GRDC ANNUAL REPORT a abiotic stress, 35, 41, 81 accountability to Australian Government, 80 to grains industry, 81 accountability and reporting obligations, 82 achievements, 15 key, Output Group 1: Varieties, 39 Output Group 2: Practices, 49 Output Group 3: New Products, 57 Output Group 4: Communication and Customer Services, promotion of, 13 against stakeholder priorities, Acumen Alliance, 84 advisory panels, 91 see also National Panel; regional panels Agribusiness Trial Extension Network, 45 Agricultural Production Simulation Model (APSIM), 76, 77 agronomic benefits, 41 agronomic packages for new crop varieties, 49 Agronomy after the drought a guide to decision making in 2007, 65 agronomy and soils project list, Alberta Agriculture Funding Consortium, Canada, 24 alignment with customers and stakeholders, ii, 17 alliances international, 12, 24, 34, 40 market, 26, 27, 81 national, 34, 39 Annual Operational Plan, 18, 22, 81 Annual Report , 18 award for, 17 apparent metabolisable energy (AME), 53 APSoil (database), 77 Aquaculture Nutrition Subprogram, 23 Arista Cereal Technologies Pty Ltd, ii, 17, 18, 21, 24, 27, 53, 58, 71 ascochyta blight, 45 Ashton A, 28, 33, 39, 71 Asociación de Cooperativas Argentinas, Argentina, 24 Auditor-General Independent Auditor s Report, 83, Australian Association of Agricultural Consultants Western Australia, 46 Australian Bureau of Agricultural and Resource Economics (ABARE), 20 Australian Centre for International Agricultural Research, 24 Australian Centre for Plant Functional Genomics Pty Ltd (ACPFG), 12, 15, 18, 28, 29, 34, 35, 39, 40 Australian Cereal Rust Control Program, 45 Australian Government research priorities expenditure on, see also National Research Priorities; rural R&D priorities Australian grain growers R&D priorities see grains industry R&D priorities Australian Grain Technologies Pty Ltd (AGT), 31, 32 Australian Grains Industry reports (ABARE), 20 Australian Greenhouse Office, 17, 27, 49, 76 Australian Lucerne Alliance, 15 Australian National Audit Office, 11, 84 Australian National Genetic Resources Centre (ANGRC), 34 Australian Pastoral Research Trust, 61, 66 Australian Pesticides and Veterinary Medicines Authority, 56 Australian Rural Leadership Foundation (ARLF), 66 Australian Science Teachers Association, 61 Australian Seed Federation, 32 Australian Winter Cereal Molecular Marker Program (AWCMMP), 12, 28, 29, 39, 40 Australian Winter Cereals Pre-Breeding Alliance, ii, 15, 16, 21, 27, 34, 35 Australian Wool Innovation Ltd (AWI), 62, 65 b barley, 34 GM, 36 new varieties, 12 see also beta-glucans; Flagship A Barley Breeding Australia (BBA), ii, 12, 15, 16, 32, 39, 40 barley breeding project list, barley quality testing, 13 barley stripe mosaic virus, 48 barley stripe rust, 46, 48 BBA North, 32 BBA South, 32 BBA West, 32 bee silk, 55 beta-glucans, ii, 17, 35 BHP Billiton Science Awards, 61, 66 Binnu A, 32, 71 biodiversity measurement of in mixed farming systems, 75 Biodiversity in Grain and Graze project, 75 Bioenergy Australia, 28, 54, 55, 58 biofuels, 13, 28, 54, 58, 78 biomass ethanol, 28, 54, 58 biosecurity see risk management biotechnology, 26, 28, 81 biotic stress, 41, 81 blackleg fungus acquisition of genome sequence of, ii, 17, 28, 50 Blake Dawson Waldron, 90 Board, 8, Chair, 86, 88 see also Report by Chair and Managing Director committees, disclosure of interest, 90 and independent professional advice, 90 induction and training, 90

165 meetings, 89 members, performance monitoring and review, 90 roles, responsibilities and code of conduct, 90 Secretary, 88 Boomer A, 33, 71 Brassica A genome sequencing program, 35 bread wheat, 34, 40 breeding technologies new, 12 BRI Australia Ltd, 52 building research capacity project list, Bureau of Meteorology, 76 business process review, 68 business relationships, c canola, 33 GM, 35 new varieties, 12, 40 see also blackleg fungus; Dune A ; fusarium wilt of canola Canola Breeders Western Australia Pty Ltd, 24 canola breeding, 39 capacity building see under industry capacity carbon dioxide impact of elevated levels of, ii, 17, 27, 49 Catalina A, 32 catchment management of salinity and water quality, 44 Central Queensland Sustainable Farming Systems project, 45 cereal crop performance impact of elevated levels of carbon dioxide on, ii cereal foliar and root diseases management options for, 12, 50 Cereal Functional Genomics Program, 17, 28, 35, 39 cereal rust awareness-raising campaign, 65 implementation plan, 50 see also Australian Cereal Rust Control Program Cereal Rust Communication Campaign, 65 Chair see under Board challenges, iii, 15 chickpea breeding, 12, 28, 34, 40 chickpeas, 33, 39, 40 see also ascochyta blight; Flipper A ; Yorker A Clarity Project Management System, 69 climate change adapting to, 49, 64 Climate supplement of Ground Cover, 64 climate variability, 12, 41, 49, 64 in changing environment, 64, 76 see also Managing Climate Variability Program; weather and climate variability coarse grains, 32 see also pulse, oilseed and summer coarse grains Code of Business Conduct and Ethical Behaviour, 84, 95 Coffey International, 24 collaboration, international, 24 see also partnerships; relationship management Comcover, 85 Comcover Awards for Excellence in Risk Management, 84 commercialisation, outcomes, strategy, 70 Commonwealth Authorities and Companies Act 1997 (CAC Act), 18, 68, 80, 82 83, 90 Commonwealth Procurement Guidelines, 80 communication, 65 Communication and Customer Services see Output Group 4: Communication and Customer Services Communication and Customer Services Program team, 92 companies in which GRDC has shares or membership, competitiveness improving through whole-of-industry approach, 26, 27 compliance objective, 22 performance, 22 Computer Associates managers, 24 conduct of officers, 82 conferences, 59, 60, 66 conservation farming, 17 consultation arrangements, 81 Cooperative Research Centre (CRC) for Australian Weed Management, 44, 46 Cooperative Research Centre for National Plant Biosecurity (CRCNPB), 27, 52 53, 57, 58 Cooperative Venture for Capacity Building project On the fast track, 65 corporate communications project list, corporate governance, corporate objectives performance in meeting, corporate performance, Corporate Services, 68 staff, 93 Corporate Strategy and Program Support, 68 staff, 94 Council of Grain Grower Organisations Ltd, 24, 31 Council of Research & Development Corporation Chairs, 23 Crop and Food Research (New Zealand), 24 Crop Biofactories Initiative (CBI), 13, 28, 54, 58 crop protection project list, strategies and solutions, 12, 41 see also protecting the crop crop variety yield and performance data, 12 ALPHABETICAL INDEX 161

166 GRDC ANNUAL REPORT cropping rotation, 12 cropping systems integration of livestock into, ii, 17, 29, 42 43, 49 nutrient management in, 60 see also northern cropping systems cross-industry cooperation, iii, 57 crown rot infection, 45 CSIRO and Arista Cereal Technologies Pty Ltd, ii, 17, 18, 21, 24, 27, 53, 58, 71 and BHP Billiton Science Awards, 61 and Bioenergy Australia, 55 and biomass ethanol, 54, 58 and catchment management, 44 and cereal germplasm enhancement, 34 and HRZ Wheats Pty Ltd, 24 and integrated cropping and livestock practices, 42 and new industrial uses for grain crops, 13 and nutrient input, 42 and nutrient uptake, 43 and omega 3 fatty acids, 57 and precision agriculture, 27, 49 and South-east Australian Climate Initiative, 76 wheat breeding program, 32 CSIRO Entomology and GLO2, 56, 71 CSIRO Plant Industry and Summer School Student Profram, 61, 66 CSIRO Sustainable Ecosystems and soil water, 77 customer database enhancement of, 59 see also segmented customer database customer segmentation categories, 13, 59, 66 see also segmented customer database customer service, 65 customers alignment with, ii, 17 d DArT Pty Ltd, 72 delegations international, 24 Department of Agriculture, Fisheries and Forestry, 60 portfolio goal, 6 Department of Agriculture and Food of Western Australia (DAFWA), 18, 32, 37, 39, 43 Department of Primary Industries (DPI) Victoria, 37 Department of Sustainability and the Environment (Victoria), 76 Derrimut A, 32 Disability Discrimination Act 1992, 96 disability strategies, 96 disease management, 12, 45, 48 see also management of weeds, diseases and pests Diversity Arrays Technology, 72 Driving Agronomy, 60 Driving Innovation: The GRDC Five Year Research and Development Plan , 6, 10, 15, 20, 21, 25, 81, 85 drought, 20 agronomy after, 63 see also Agronomy after the drought a guide to decision making in 2007 communication initiatives, 65 and grains production, iii, 14 and industry capacity, 50 and NVT program, 36 and wheat-breeding program, 32 drought response strategy, ii, 14, 20, 50 Dune A, ii, 16, 28, 33, 39, 71 durum wheat, 34 breeding programs, 32 dwarf bunt of wheat, 48 e ecologically sustainable development, 85 education and training for grains industry, 78 educational packages for secondary school teachers and students, 13, 67 EGA Burke A, 32, 71 El Niño Southern Oscillation Sequence, 43 see also Southern Oscillation Index (SOI) electronic document and records management system, 69 Emergency Plant Pest Response Deed, 48 emergency plant pest threats national surveillance plan, 29, 48, 49 enabling functions, see also Corporate Services; Corporate Strategy and Program Support End Point Royalties (EPRs), 31, 32, 39, 71 energy costs increasing, 14 enhanced management project list, 151 Enterprise Grains Australia (EGA), 31, 39 environment policy, 75, 85 environmental objectives, 75 77, 85 Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act), 85 environmentally sustainable Australia, 26, 27 environmentally sustainable farming practices, 41 environmentally sustainable grains industry, iii, 85 equal employment opportunity, 95 etiella moth control of, ii, 17, 29, 45 events see significant events Executive Management Team (EMT), 8, 84, 90 Export Grains Centre Ltd (EGC), 24 extension and grower programs project list, 144 f faba bean breeding, 12, 40 faba beans, 34 farm machinery, 49 farm productivity report, 65 farm products and services see new farm products and services farming practices, 12 changes, 20, 41 environmentally sustainable, 12, 41, 75 see also integrated farm management practices; new technologies and practices; on-farm practices; Output Group 2: Practices FarmLink group, 42 Feed Grain Partnership, 53 feed grain trading see trading feed grains

167 fertiliser application options, 20, 27, 42, see also nutrient input; nutrient uptake field pea breeding, 12, 40 field pea lines, 30, 39 Finance, Risk and Audit Committee, 89 financial statements, Flagship A, 15, 16, 38 Flipper A, 33, 71 Foundation for Arable Research (New Zealand), 45 fraud see risk management and fraud free-air carbon experiment, ii, 17, 27, 49 freedom of information, 85 Freedom of Information Act 1982 (FOI Act), 85 frontier technologies, 26, 28 fumigants, 56 residues, 53 see also GLO2 fusarium wilt of canola, 46, 48 Future Directions for Agricultural Research and Technology Implications for Australia symposium, 60 Future Harvest: the 2007 Agriculture Statement, 25 g gene discovery and new technologies, 35, 39 project list, genetic improvement and regional adaptation of new grain varieties, 26, 28, 81 genetic modification technology, iii genetically modified (GM) crops/cereals delivery channels for, 12, 13, 28, 35 36, 54, 57, 58 see also GM and biotechnology project genotyping services to researchers and breeders, 35, 72 germplasm international, 12, 40 germplasm enhancement, 12, 34, 39 project list, research, 12 Gladius A, 32, 71 GLO2, 56, 71 Global Crop Diversity Fund, 24 global grain markets, iii glyphosate resistance, 47 GM and biotechnology project, 78 good health promoting and maintaining, 26, 27 Grain and Graze program, ii, 23, 29, 32, 49, 75 grain crops new industrial uses for, 13, 54, 55 grain food products see new grain food products grain products see new grain products Grain Protection Genes program, 28, 35, 39 grain quality testing objective, 13 grain storage fumigant see GLO2 Grains Council of Australia (GCA), 48, 81 funding for, 82 grains industry improvement in performance, 13, 20 production, iii, 14, 20 Grains Industry Profile, 60 grains industry R&D priorities, 25, 26 30, 81 grains industry training and development, 59 Grains Research and Development Corporation (GRDC), i, 6, 10 achievements, 15 and Australian Government policies, 80 Board, 8 challenges, 15 corporate governance, enabling functions, Executive Management Team, 8 financial statements, highlights challenges, iii five years at a glance, 1 successes, ii mission, i new strategic R&D plan see Prosperity through Innovation objectives see objectives organisation, organisational outcome, 6 role, 6 Statement of Expectations, 11, 18, 80 Statement of Intent, 11, 18, 22, 80 structure, 7 values, i vision, i grains value driver analysis, 69 GRDC Organisational Performance Research Survey, 20 greenhouse gas emissions, 41 Ground Cover, 60, 65, 81 Climate supplement, 64 Growers Report supplement, 65 Groupe Limagrain, ii, 17, 18, 21, 24, 27, 53, 58, 71 grower programs see extension and grower programs Growers Report, 81 Growers Report supplement of Ground Cover, 65 Guardian A, 32 Guidelines on Funding of Consultation Costs by Primary Industry and Energy Portfolio Statutory Authorities, 80, 81 h Harvest Radio, 60 hazard analysis and critical control points HACCP principles, 53 Healthy Soils for Sustainable Farms Program, herbicide resistance, 12, 29, 41, 44, 49, 50 see also glyphosate resistance hessian fly, 48 Hi Oleic peanuts, 33 high-amylose wheat, 13, 17, 18, 21, 24, 27, 53, 58, 71 see also Arista Cereal Technologies Pty Ltd highlights challenges, iii five years at a glance, 1 successes, ii HowWet? (computer program), 77 HRZ Wheats Pty Ltd, 24 i image analysis technology, 52 impact assessment, 69 ALPHABETICAL INDEX 163

168 GRDC ANNUAL REPORT implement control system for improved seed and fertiliser resource management placement accuracy, 27, 49 indemnities and insurance premiums for officers, 85 Independent Auditor s Report, independent audits, 83 Independent Consultants Australia Network, 46 industrial uses for grains, 13, 54, 55 industry capacity building, 59, 60 62, 66 see also building research capacity; Cooperative Venture for Capacity Building project On the fast track drought and, 50 participation of growers, advisers and researchers in capacity building program, 13, 66 industry development awards, 60, 66 industry levy rates, 81 industry placement scholarship, 62 industry representative, 81 Industry Working Group on Natural Resource Management, 75 information delivery channels, iii exchange of, 13, 60 see also Output Group 4: Communication and Customer Services infrastructure, 78 innovation and flexibility in contractual relationships development, 21 innovative culture creating, 26, 29 inputs making the most of, 49 Output Group 1: Varieties, 31 Output Group 2: Practices, 41 Output Group 3: New Products, 51 Output Group 4: Communication and Customer Services, 59 insects and insect silks, 55 integrated approach to variable rate pesticide application, 27 integrated cropping and livestock practices, ii, 17, 29, integrated farm management practices, 12, integrated pest management (IPM), ii, 17, 26, 29, 45, 49, 53, 81 Integrated Weed Management in Australian cropping systems manual, 65 integrated weed management (IWM), 17, 29, 44, 49, 50 workshops, 46 integrity of Australian agricultural, food, fish and forestry products maintaining and improving confidence in, 26, 27 intellectual property, 13, management, 74 see also patents; plant breeder s rights; trademarks internal security, 96 international alliances, 12, 24, 34, 40 International Centre for Agricultural Research in Dry Areas (ICARDA) (Syria), 21, 24, 27, 34, 40 international collaboration, 24 international delegations, 24 international investment, 24 International Maize and Wheat Improvement Centre (CIMMYT) (Mexico), 12, 21, 24, 28, 34, 40 international symposium see Future Directions for Agricultural Research and Technology Implications for Australia symposium invasive diseases and pests protecting Australia from, 26, 29 invertebrate pests, 45 see also national invertebrate pest initiative (NIPI) investment international, 24 partnerships, 70, 71 structures, 70 investment portfolio analysis, 69 Iraqi Ministry of Agriculture, 24 j Jandaroi A, 32, 71 Joint Centre for Farm Health and Safety, 23 judicial decisions and reviews by outside bodies, 83 juncea canola-quality see Dune A k karnal bunt, 46, 48 key achievements, khapra beetle, 46, 48 l leaf rust, 45 lentil breeding, 12, 28, 40 lentils, 33, 34, 39 see also Boomer A ; etiella moth; Nipper A letter of transmittal, 2 levy on graingrowers see industry levy rates line of business (LOB) strategies, 68 links to market, 26, 27, 81 livestock integration of into cropping systems, ii, 17, 29, 42 43, 49 localised farming systems research, 29, 49 LongReach Plant Breeders, 32 lucerne see Pegasis A lucerne breeding program, 15 lupin new varieties, 30 lupin breeding, 39 m maize breeding, 39 maize line new, 28 malting barley see Flagship A management see enhanced management management of weeds, diseases and pests, 44 46, 50 Managing Climate Variability Program (MCVP), 23, 64, 76 Managing Director, 86, 88 see also Report by Chair and Managing Director Managing Director s Area staff, 93 market alliances, 26, 27, 81 Meat and Livestock Australia, 62

169 mid-infrared (MIR) technologies see near-infrared (NIR) and mid-infrared (MIR) technologies to measure soil, plant and grain qualities Minister, 80 ministerial directions, 80 ministerial priorities for rural R&D corporations and companies, 26 mirid populations control of, ii, 17, 29 mixed-farming projects, 75 molecular marker technologies, 72 molecular markers, 12, 21, 72 see also Australian Winter Cereal Molecular Marker Program (AWCMMP) Molecular Plant Breeding Cooperative Research Centre (CRC), 12, 15, 29, 34, 40 mung bean new varieties, 30 mung bean breeding, 39 Murray Darling Basin Commission, 76 n National Action Plan for Salinity and Water Quality, 44 national alliance on cereal germplasm enhancement, 34, 39 national invertebrate pest initiative (NIPI), 50 National Land and Water Resources Audit, 60 National Panel, 8, 91 National Pulse Breeding Program see Pulse Breeding Australia (PBA) National Research Priorities, 10 11, 25, 26 29, 80, 128 see under Australian Government research priorities National Variety Trials (NVT) program, 12, 30, 36, 39, 40 National Wheat Breeders Alliance, ii, 15, 16, 32, 39 National Youth Science Forum, 60 61, 66 Natural Heritage Trust, 64 natural resource management practices, 12, near-infrared (NIR) and mid-infrared (MIR) technologies to measure soil, plant and grain qualities, 13, 52, 53, 57, 58 new crop varieties commercialisation of, New Farm Products and Services, 51, 57 project list, new grain food products, 13, 53 New Grain Products, 51, 57 project list, New Products program team, 92 staff, 94 see also Output Group 3: New Products New South Wales Department of Primary Industries (NSWDPI), 15, 17, 32, 33, 37, 42, 45 new technologies and practices, 42 Nipper A, 33, 71 Norddeutsche Pflanzenzucht Hans-Georg Lembke KG (Germany), 24 northern cropping systems key profit drivers, 29, 49 Northern Region, 9 and subsoil constraints, 27, 42, 49 Northern Regional Panel, 91 no-till and stubble retention farming practices, 14 no-till seeding, 44 novel protein biopolymers for use in highperformance fibres, 55 Nuffield scholarships, 66 Nugrain, 32 nutrient input, 42 nutrient management in cropping systems, 60 nutrient uptake, 12, 41, o oat breeding, 39 oats new varieties, 30 Objective Grain Quality Testing project, 27, 29, 52, 57, 71 technologies, 52 objectives, i compliance, 22 Output Group 1: Varieties, 12, 31 Output Group 2: Practices, 12, 41 Output Group 3: New Products, 13, 51 Output Group 4: Communication and Customer Services, 13, 59 product and service delivery, 20 relationship management, 21 occupational health and safety (OH&S), 96 officers conduct of, 82 omega 3 fatty acids, 57 on-farm instrumentation scoping of potential uses and available technologies for, 29, 52 on-farm participatory programs, 41 on-farm practices results from stratified survey, 12, 50 on-farm risk management, 64 operating costs reduction of, iii Operating Manual, 84, 85, 90, 91 organisation, Organisational Performance Research Survey suspension of, 20, 50, 66 organisational performance surveys, 13 Output Group 1: Varieties, 12, Output Group 2: Practices, 12, Output Group 3: New Products, 13, Output Group 4: Communication and Customer Services, 13, outputs, Output Group 1: Varieties, Output Group 2: Practices, Output Group 3: New Products, Output Group 4: Communication and Customer Services, overview, 5 18 Output Group 1: Varieties, 31 Output Group 2: Practices, 41 Output Group 3: New Products, 51 Output Group 4: Communication and Customer Services, 59 p partnerships, 13, 23 investment, 70, 71 see also business relationships; collaboration; relationship management RUNNING HEAD 165

170 GRDC ANNUAL REPORT Pasture Soil Biology Program, 23 Pastures Australia, 23 patents, 21, 74 PB Seeds, 37 pea leaf weevil, 48 peanut breeding, 39 peanuts, 33 see also Ashton A ; Sutherland A ; Walter A Pegasis A, 15, 17 performance compliance, 22 corporate, improvement in, 20 in meeting corporate objectives, occupational health and safety, 96 Output Group 1: Varieties, 40 Output Group 2: Practices, 49 Output Group 3: New Products, Output Group 4: Communication and Customer Services, product and service delivery, 20 relationship management, see also under grains industry performance framework, 12 performance indicators Output Group 1: Varieties, 12, Output Group 2: Practices, 12 Output Group 3: New Products, 13 Output Group 4: Communication and Customer Services, 13 performance management, 95 pest management, 45, 46, 48, 53 through genetic manipulation, 12, 50 see also integrated pest management (IPM); invertebrate pests; management of weeds, diseases and pests pesticide see variable rate pesticide application Philom Bios (Australia) Pty Ltd, 24, 27, 29, 51, 57 Philom Bios Inc. (PBI) (Canada), 24, 51 phosphine resistance, 52, 53 pilot capacity audit, 66 planning and reporting approach, plant breeder s rights, 21, 22, 74 Plant Health Australia (PHA), 46, 48 PLANTPLAN, 48 policies and procedure, 84 portfolio analysis see investment portfolio analysis Portfolio Budget Statements, 22 portfolio monitoring, post-harvest grain hygiene, 52 53, 57 strategy, 13, 58 Potential Yield Calculator, 76 Practices program team, 92 staff, 94 see also Output Group 2: Practices pre-breeding R&D, 32 precision agriculture (PA), 27, 49, 60 Premium Grains for Livestock Program, 13, 23, 53 Primary Industries and Energy Research and Development Act 1989 (PIERD Act), 6, 10, 68, 80, 81, 88, 93 amendments to, 18 Primary Industries (Excise) Levies Act 1999, 81 Primary Industries Levies and Charges Collection Act 1991, 81 Privacy Commissioner, 85 privacy policy and procedures, 85 product and service delivery, 20 product development new and innovative, 26, 27, 81 production see under grains industry professional development, 13 program teams, 92 project lists GRDC, joint R&D, project management system, 69 proof-of-concept testing and development genes, 12 Prosperity through Innovation, 10, 15, 18, 68, 81 protecting the crop, 49 Protective Security Manual, 96 Public Sector Governance: Better Practice Guide (ANAO), 11, 84 Public Sector Governance Better Practice (ANAO), 11 publications and products, 154 pulse, oilseed and summer coarse grains project list, Pulse Australia, 37 Pulse Breeding Australia (PBA), ii, 12, 15, 16, 28, 37, 39, 40 pulses, 33, 37 new varieties, 12 q QANTAS, 61 quality assurance, 84 Quality Management System, 84 Queensland Department of Natural Resources, 27, 49 Queensland Department of Primary Industries and Fisheries (QDPI&F), 27, 37, 47 r R&D nationally coordinated approach to, iii R&D corporations (RDCs) collaboration with, 23 RD&E Subcommittee of the Primary Industries Standing Committee, 23 records management system see electronic document and records management system recovery after the drought workshop, 63 recruitment, training, retention and succession management, regional panels, 8, 91 regions, 9 relationship management objective, 21 performance, see also collaboration; partnerships Remuneration Committee, 89 Report by Chair and Managing Director, research capacity see building research capacity research outputs turning into relevant information, 13 research priorities see grains industry R&D priorities; National Research Priorities 166

171 Review of Corporate Governance of Statutory Authorities and Office Holders (Uhrig Report), 18, 80 risk management, 12, 45 46, 48 on-farm, 64 risk management and fraud, 84 root diseases see cereal foliar and root diseases Rural Industries R&D Corporation (RIRDC), 62, 65 rural R&D priorities, 25 revised, 18, 25, 128 Russian wheat aphid, 46, 48 rust management practices, 29, 50 s safeguarding Australia, 26, 29 salinity, 12, 41, 44 see also catchment management of salinity and water quality sanctions under CAC Act, 83 scholarships, 62 ARLF, 66 Nuffield, 66 training, 60, 66 School of Agricultural Science (University of Tasmania), 61 Sd+D Consulting, 54 sea surface temperatures (SST) and weather forecasts, 43 secondary schools program: support for science and agriculture, 13, 59, 60 61, see also educational packages for secondary school teachers and students Seedmark, 15 segmented customer database, 13, 59 Selection Committee, 90 Service Charter, 85 SGS International Certification Services Pty Ltd, 84 sick leave, 96 significant events, 18 Signposts for Australian Agriculture project, 60 Singaporean Ministry of Defence, 24 Single Vision Grains Australia (SVGA), 78, 94 Interim Board membership, 78 staff, 94 Single Vision Ten-point Plan, 78 Soil Biology Initiative, 27, 49 soil biota, 12, 41 soil constraints, 12 soil inoculants incorporated joint venture, 13, 51, 57 soil moisture, 14, 20 soil water, 77 soils see agronomy and soils; Healthy Soils for Sustainable Farms Program sorghum production, 14 blueprint for doubling, 17, 29, 49 South Australian Research and Development Institute, 37, 45 South-east Australian Climate Initiative, 76 Southern Farming Systems, 45 Southern Oscillation Index (SOI), 76 see also El Niño Southern Oscillation Sequence Southern Region, 9 and agronomic packages for new crop varieties, 49 Southern Regional Panel, 91 consultant workshop, 65 sowing earlier, 20 soybeans see mirid populations staff, breakdown by age and gender, 95 code of conduct, 95 location, 95 performance management, 95 recruitment, training, retention and succession management, sick leave, 96 stakeholder priorities GRDC achievements against, stakeholder report, 81 stakeholders alignment with, ii, 17 Statement of Expectations (SOE), 11, 18, 80 Statement of Intent, 11, 18, 22, 80 statutory corporate planning and reporting documents, 22 stem rust, 45 storage and hygiene issues, 78 strategic business plan see The Way Forward (strategic business plan) strategic R&D plan, 22 see also Prosperity through Innovation stripe rust, 29, 45, 50, 60 structure, 7 subprogram teams, 92 subsidiaries, 74 subsoil constraints (SSCs), 12, 27, 41, 42, 49 successes, ii succession planning booklet, 62 Sugar R&D Corporation, 62 summer coarse grains see pulse, oilseed and summer coarse grains summer crops new varieties, 12 production, 14 Summer School Student Program, 61, 66 sustainability and resource management, 26, 27, 81 sustainable farming systems, 12, 41, 75 sustainable natural resource management, 26, 27 Sutherland A, 28, 33, 39, 71 t technology and knowledge effective and targetted transfer and adoption of, 26, 29 trade and market access improving, 26, 27 trademarks, 21, 22, 74 trading feed grains rational basis for, 13, 57, 58 training and awareness of OH&S requirements, 96 training scholarships, 60, 66 travel awards, 60, 66 Triticarte Pty Ltd, 72 RUNNING HEAD 167

172 u Uhrig Report see Review of Corporate Governance of Statutory Authorities and Office Holders (Uhrig Report) undergraduate summer school, 61 University of Adelaide, 15, 16, 32, 35, 37, 42, 44 University of Melbourne, 35 University of New South Wales, 43 University of Tasmania (UT), 61, 62 University of Western Australia, 24, 47, 62 v validation and adoption, 49 validation and integration project list, Value Added Wheat Cooperative Research Centre (CRC), 12, 15, 29, 34, 35, 40, 72 value driver analysis (VDA) see grains value driver analysis variable rate pesticide application, 27, 49 Varieties program team, 92 staff, 94 see also Output Group 1: Varieties varieties development of superior, iii, 12 see also agronomic packages for new crop varieties; new crop varieties variety evaluation independent, 26, 30 vernolic acid, 55 virulence markers, 50 w Walter A, 28, 33, 39, 71 water quality see catchment management of salinity and water quality water storage capacity of soils, 77 water use efficiency, 12, 41 The Way Forward (strategic business plan), 15, 68, 85 weather and climate variability, 43 weather damage technology, 52 weather forecasts, 43, 76 website podcasting, 65 redevelopment, 60 weed management, 12, 17, 45, 46, 50 see also integrated weed management (IWM); management of weeds, diseases and pests Western Australian Herbicide Resistance Initiative, 44, 47 Western Region, 9 and agronomic packages for new crop varieties, 49 Western Regional Panel, 91 wheat GM, 36 new varieties, 12, 31 32, 40 see also Binnu A ; bread wheat; Catalina A ; Derrimut A ; durum wheat; dwarf bunt of wheat; EGA Burke A ; Gladius A ; Guardian A ; highamylose wheat; Jandaroi A ; Russian wheat aphid wheat breeding, 12, 31 32, 34, 39, 40 project list, see also Value Added Wheat Cooperative Research Centre (CRC) wheat breeding program (DAFWA), 18 wheat export marketing uncertainties, 14 wheat lines importation of, 28, 40 wheat marketing, 78 wheat production and subsoil constraints, 42 wheat quality testing, 13 wheat streak mosaic virus, 29, 45, 49 whole-of-portfolio economic analyses, 20 Whopper Cropper, 76, 77 workplace facilities, 96 workshops information flow, network-builing and improved understanding with agribusiness, 46 recovery after the drought, 63 Soil Biology Initiative, 27, 49 southern panel consultant workshop, 65 weed management, 46, 50 y Yield Prophet, 64, 76, 77 Yorker A, 33, 71 GRDC ANNUAL REPORT

173 Contact details Location Level 1, Tourism House 40 Blackall Street BARTON ACT 2600 Postal address Contact officer GRDC PO Box 5367 KINGSTON ACT 2604 GRDC Compliance Officer Phone: Fax: Web: Delivery dates Submission of financial statements to the GRDC Finance, Risk and Audit Committee 9 August 2007 Submission of final draft to the GRDC Board 11 September 2007 Certification of financial statements by the Australian National Audit Office 15 August 2007 Approval of final annual report by the GRDC Board 18 September 2007 Submission to the Parliamentary Secretary to Minister for Agriculture, Fisheries and Forestry 30 September 2007 Submission to the Minister for Agriculture, Fisheries and Forestry 30 September 2007 Submission to the Australian Government Department of Agriculture, Fisheries and Forestry 30 September 2007 Tabling in parliament Presentation to the Grains Council of Australia During the spring session On tabling Production notes Compliance editor Photo editor Program editor Financials Concepts, text and research Editing and indexing Design and typesetting Printing Noelia Freitas Maureen Cribb Zoltan Lukacs Danielle White GRDC WordsWorth Writing, Canberra Four Design Group, Canberra Goanna Print, Canberra ISSN Grains Research and Development Corporation 2007 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.