G36
Annual Report
Highlights 2014/15
Delivering science and technology to
benefit New Zealand’s pastoral sector
Cover image: AgResearch Research Associate Carole Berry looking at a protein extracted from sheep milk. The newly-established Ministry
of Business, Innovation and Employment programme called ‘Boosting exports of the emerging New Zealand dairy sheep industry’ involves
AgResearch scientists from all over the country and will run over the next six years. To find out more visit page 9.
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ANNUAL REPORT 2014/15
CHAIR AND CHIEF
EXECUTIVE’S REVIEW
8
A SNAPSHOT
OF OUR WORK
Table of
contents
OUR
PURPOSE
CORE FUNDING
24
AGRESEARCH SCIENCE AND
TECHNOLOGY PRIZES
SIGNIFICANT STAFF
ACHIEVEMENTS
28
BOARD OF DIRECTORS
2015 FINANCIALS
31
6
26
30
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Our
purpose
AgResearch’s purpose is to enhance the value,
productivity and profitability of New Zealand’s
pastoral, agri-food and agri-technology sector
value chains to contribute to economic growth
and beneficial environmental and social
outcomes for New Zealand.
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AgResearch will fulfil
its purpose through the
provision of research and
transfer of technology and
knowledge in partnership
with key stakeholders,
including industry,
government and Māori, to
achieve the following sectoraligned outcomes:
A. Increase the value of these
industry sectors to the New
Zealand economy through the
development of high-value
pastoral-based products and
production systems that meet
current and future global
market needs
To achieve these outcomes,
AgResearch is the lead CRI
in the following areas:
• Pasture-based animal
production systems
• New pasture plant varieties
• Agriculture-derived greenhouse
gas mitigation and pastoral
climate change adaptation
• Agri-food and bio-based
products and agri-technologies
• Integrated social and
biophysical research to support
pastoral, agri-food and agritechnology sector development.
AgResearch will work
with other research
providers and end-users
to particularly contribute
to the development of the
following areas:
• Biosecurity, land, soil and
freshwater management
• Climate change adaptation and
mitigation
• Food and beverage sector
(including foods for human
nutrition and health, food
technologies and food safety).
B. Position New Zealand
as a global leader in
the development of
environmentally sustainable,
safe and ethical pastoral
production systems and
products
C. Ensure that New Zealand’s
pastoral sector is able to
protect, maintain and grow its
global market access
ANNUAL REPORT 2014/15
D.Increase the capacity of rural
communities and enterprises
to adapt to changing farming
conditions in ways that balance
economic, environment, social
and cultural imperatives.
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Chair and Chief Executive’s
The 2014/15 financial year has been one of successes and challenges for
both AgResearch and our sector. We have capitalised on our successes
and successfully navigated the challenges, thanks to a concerted effort
from staff and close relationships with our stakeholders.
It has been a very successful year of
significant science achievements, driving
impacts and delivering outcomes for the
pastoral, agri-food and agri-technology
sectors. One example of many is the
major gains in our work to reduce
methane emissions from sheep and
cattle, which has the potential to reduce
New Zealand’s greenhouse gases. In
research for the Pastoral Greenhouse
Gas Research Consortium and the New
Zealand Agricultural Greenhouse Gas
Research Centre, our scientists have
identified five different animal-safe
compounds that can reduce methane
emissions from sheep and cattle by
30% - 90%.
Other results showed for the first time
that cattle vaccinated with a methanogen
protein can produce antigen-specific
antibody in both blood and saliva, and
these antibodies are delivered to the
rumen – providing good support for the
idea that ruminants could be immunised
to reduce methane production. This
is in addition to the work for a Global
Partnerships in Livestock Emissions
Research project done in conjunction
with the US Department of Energy’s
Joint Genome Institute. It found
differences between high methane and
low methane output sheep which, if
changes could be implemented across
New Zealand’s pastoral sector, could
reduce New Zealand’s greenhouse gases
by 5%.
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As well as potentially enabling New
Zealand to meet its commitments
to address global climate change,
these approaches are likely to have a
substantial favourable impact on animal
productivity, which should encourage
farmer uptake and have strong
economic benefits to New Zealand.
AgResearch and our partners are now
focussing our resources on validating
these encouraging early results. More
examples of our research projects across
the organisation and the benefits they
are delivering for our sector are detailed
in the following pages.
AgResearch constantly balances
shifts in agricultural research needs
– and therefore revenue – with the
need to respond to emerging science
opportunities to maximise impact for
New Zealand’s pastoral sector.
Given the changing needs of our
sector and focus areas for government
investment, the Board and management
team carried out a very thorough review
of our business model in the first half
of the financial year. This resulted in
the development of business plans to
accelerate several areas where we and
our stakeholders feel an enhanced
AgResearch investment could create
greater value for New Zealand. At a high
level these areas include:
• Assisting New Zealand firms in their
desires to move up the value chain by
growing our R&D activities in food
safety and security and innovative,
high value food products
• Working much more closely with
Māori agribusiness across the
agriculture value chain
• Increasing our R&D to develop future
dynamic farm systems that achieve
economic, social, cultural and
environmental outcomes
• More strongly integrating R&D in
animal and forage sciences into a
farm systems framework
Growing the work we do with Māori
agribusinesses across the value chain
has involved projects such as a cultural
competency programme for staff,
signing Memoranda of Understanding
with Te Tumu Paeroa and the Poutama
Trust and the Board’s approval of our
Māori Agribusiness Business Investment
Case in May. The changes will enable
AgResearch to create more impact for
New Zealand while supporting the
aspirations of these groups.
We have been investing more of our
Core Funding towards these growth
areas in order to catalyse new projects
and grow our (and New Zealand’s)
capability in these areas. Although still
relatively early days, we are pleased
that the level of stakeholder interest
and direct financial co-investment are
well ahead of our expectations and are
well on-track to deliver real benefits for
New Zealand. This is one testament
to the willingness of sector leaders to
co-invest in new innovations for their
business. More examples of where we
are investing our Core Funding can be
found on page 24.
While we have increased science
capacity in areas, like the above, where
we see opportunities for our work to
increase the benefit to New Zealand,
we also needed to make the difficult
decisions to reduce the size of other
areas of science and support staff to
reflect our view of the current and
future need.
AgResearch’s operating profit and
surplus before tax for the year both
exceeded budget, a good result
considering the $5.4m drop in group
revenue compared to 2014. This
performance was the result of targeted
operating cost savings and lower
extraordinary items. Nonetheless,
operating margin and operating
margin per FTE are slightly less than
the prior year as a direct result of
the volatile revenue environment
we operate in and a relatively high
proportion of fixed costs. We will need
to remain vigilant.
Our overall financial position remains
very strong. We have cash reserves
of $59.9 million available to fund our
investment areas, especially our new
campuses at FoodHQ (Palmerston
North) and Lincoln Hub, the plans for
which have advanced significantly this
year. Property revaluations during the
period have seen our equity position
increase by $9.6 million to $226.5
million at year end.
Increasing our science vitality has
been an area of focus for us in the
last few years, with initiatives such
as our Science and Technology
prizes, Emeritus Scientist positions
and increasing our number of
PhD students and Post-doctoral
researchers. In the last year 121
graduate students were completing
post-graduate qualifications with
supervision from AgResearch staff,
compared with 89 students in 2012.
Our drive to increase the quality of
our science is also delivering results,
ANNUAL REPORT 2014/15
• Growing our, and assisting others’,
understanding and planning for
adoption and practice change
behaviour to ensure technology and
knowledge generated from R&D
is taken up and deployed on New
Zealand farms.
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with 66 papers published in 34 bench
mark high-impact journals – our
highest-ever number. In addition,
2014 saw our highest-ever number
of peer-reviewed papers per FTE.
We are also collaborating more with
other organisations with 51% of our
publications being co-authored with
international authors. Connecting NZ
science with the world’s best remains an
important measure for us.
Domestically, the research landscape
is also changing to emphasise
collaboration, and our deep involvement
in the National Science Challenges
reflects this. We are the lead
organisation for the Our Land and Water
Challenge, and we are contributing to six
of the other 10 Challenges: High Value
Nutrition, New Zealand’s Biological
Heritage, Science for Technological
Innovation, A Better Start, Aging Well
and Healthier Lives.
The end of the 2014/15 financial year
saw the retirement of director Dr Mike
Dunbier, after six years on the board.
We thank Mike for his significant
contributions over his two terms – his
work has been much appreciated. In his
place, we welcome Dr Paul Reynolds,
who recently retired as Chief Executive
and Secretary for the Environment at the
Ministry for the Environment, and we
look forward to benefiting from
his expertise.
Finally, our successes this year
have been thanks to our staff. Their
dedication to delivering the best science
outcomes for New Zealand’s agricultural
sector continues to inspire us.
We are also a key participant in the
New Zealand Food Safety Science and
Research Centre along with Massey
University, Cawthron Institute, ESR,
Plant & Food Research, University of
Auckland and University of Otago.
Over the last 12 months we have
continued to develop the master plans
for our four campuses as we lead the
creation of science, education and agribusiness hubs and clusters. We have
updated our Future Footprint business
case to reflect the increased momentum
the hub concepts have gained since our
original October 2012 business case,
with significant integrated development
planned at both Lincoln and Palmerston
North. Similarly, we are very pleased to
be partnering with the dairy sector in
developing the Southern Dairy Hub - a
research, demonstration and education
facility for southern dairy farmers.
Workplace health and safety has always
been important for AgResearch and
this is reflected in our tertiary employer
accreditation with the Accident
Compensation Corporation. This past
year we have focussed on increasing
our level of near-miss reporting,
thereby improving our ability to identify
potential safety issues before they cause
harm. Nothing is more important than
ensuring our staff go home safely
each night.
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Sam Robinson
Chair, AgResearch
Tom Richardson
Chief Executive, AgResearch
Visit our website to find out
more about each of these projects.
A snapshot of
our work
At any time AgResearch is
undertaking more than 800 science
and technology projects for the
benefit of the agricultural sector and
New Zealand. Here are just a few of
those stories and their impacts.
boosting exports of the
emerging nz dairy sheep
industry
A newly-established Ministry of Business,
Innovation and Employment programme
called ‘Boosting exports of the emerging
New Zealand dairy sheep industry’ involves
AgResearch scientists from all over the
country and will run over the next six years.
The research is aimed at growing exports
of the established New Zealand dairy sheep
industry by creating greater value from
milk through knowledge of its composition
and the functionality of its components,
improving net volume and value of harvested
ewe’s milk, and establishing criteria to
ensure the environmental sustainability of
sheep dairying in New Zealand. This valuechain approach to sustainable sheep dairying
will result in a more attractive industry to
new entrants and suppliers, further boosting
this emerging industry’s growth.
ANNUAL REPORT 2014/15
on farm
agresearch.co.nz
9
on farm
simple change could
increase income
from calves
benefit to new zealand
Based on the results of this study and
using conservative assumptions, it is
estimated that reductions in calving
assistance rates and proportional use
of a lower cost beef semen alternative
could generate annual cost savings to
the dairy farm sector of $1.9 million. An
additional conservative annual value
chain revenue benefit at the dairy farm
gate of $7 million, arising from sales
of four-day-old beef cross calves with
proven genetics, is also projected.
project
investment
Total project investment
from 2011 to 2015 was
$150,000 from Beef + Lamb
New Zealand Limited,
Livestock Improvement
Corporation and Ezicalve.
Using beef sires with high breeding values for calving
ease and growth can result in a win:win for both
dairy and beef farmers.
Two-thirds of New Zealand’s beef production originates from
the dairy industry, yet despite this, few dairy farms use beef
bulls of known genetics.
The five-year Beef + Lamb New Zealand Dairy Beef Integration
Programme, which began in 2011, has been looking at the
impact of using good beef genetics in a dairy beef supply chain.
The research programme follows on from a Beef + Lamb
New Zealand-funded survey of farmers in 2004 which showed
that dairy farmers assumed that beef calves caused more
birthing issues for dairy cows. As a result, few dairy farms use
beef bulls during artificial insemination and are increasingly
using Jersey or other dairy breed bulls for natural mating.
“We wanted to test this as we knew that the beef market had
a high demand for better quality beef cross animals,” says
AgResearch scientist and project leader Dr Vicki Burggraaf.
“Our research has shown that the use of beef sires with high
estimated breeding values for calving ease, growth and carcass
characteristics on dairy farms will produce surplus calves of
higher value to dairy farmers. Now in its final year, our project
will determine the overall impact to beef finishers and the
entire dairy beef supply chain.”
“For dairy farmers, the major
benefit is producing a potentially
higher value surplus calf with a
low risk of calving problems.
Finishers are supplied with
potentially faster growing
and more valuable cattle and
processors can benefit from
improved supply of table
quality beef.”
Dr Vicki Burggraaf
AgResearch scientist and project leader
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potential boosts to
deer industry from
genetic gains
AgResearch science is underpinning New Zealand’s
deer industry by boosting information on the genetic
merits of breeding animals.
Established in 2011, the Deer Progeny Test (DPT) is aimed at
better measuring the venison production genetics available
to the New Zealand deer industry and to allow commercial
farmers to better utilise them to improve productivity and
profitability.
The DPT has generated a complex dataset based on
information collated from three annual crops of progeny.
During this time populations of hinds were artificially
inseminated to some of the top stags from around the country
that are identified through the national database called
DEERSelect.
Senior Scientist Dr Geoff Asher says that by using those
stags across a common group of hinds and across a range
of different farms scientists got ‘linkage’ where they could
calculate the genetic merits of each stag across all farms. This
means that stag breeding values are relevant across all farms
recording in DEERSelect, and will be relevant to all farms that
purchase the recorded stags (or their semen), making it easier
for farmers to choose which stock to buy.
The second component of the DPT was to look at deer traits
that hadn’t been studied previously and this included ways
to increase the yields of high-value cuts such as loin and rear
legs relative to the lower-value shoulders. That means there is
the opportunity for DEERSelect to also be used to select highvalue primal meat weight over total carcass weight.
Dr Asher says the complex datasets from DPT have plenty
more to reveal.
benefit to new zealand
Through the use of DPT sires it is
estimated that for every 100g of highvalue loin muscle added to existing
total carcass weights in the sector, a
permanent genetic gain of $1.1 million
annually to export revenues from
chilled venison would be expected.
With regards to industry growth rates,
carcass weight, conception dates and
mature hind weight, it is estimated that
permanent additional DPT sire genetic
merit gains of at least $620,000 annually
across the industry is also possible.
project
investment
Funding for the DPT from
2012 to 2016 will amount
to $1.7 million from
DEEResearch Limited (a
joint entity owned 50/50
by AgResearch & Deer
Industry New Zealand),
Landcorp Farming Limited
and Alliance Group. In
addition, considerable
collaboration and in-kind
support has been received
from deer breeders
(‘Partner Herds’) and
the Alliance Group that
conducted data collection
at slaughter and of
meat quality.
a new test for bovine tb
Encouraging preliminary results from a trial show the
potential for a more accurate and cost-effective diagnostic test
in the battle against bovine TB. The current test used on New
Zealand farms often gives false positives, and a blood test is
needed to confirm infection. AgResearch is trialing a new skin
test that has a similar sensitivity to the existing reagent bovine
tuberculin, and fewer false positive reactions in non-infected
animals. More than 30,000 cattle and 3,000 deer have already
been tested and results for specificity have been
very encouraging.
ANNUAL REPORT 2014/15
A new test for bovine TB developed by AgResearch is
attracting international attention.
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on farm
science support for
emerging dairy goat
industry
benefit to new zealand
An established R&D relationship exists
between AgResearch and the Dairy
Goat Co-operative, with continuing
science-based evidence underpinning
value-added product development. Now
AgResearch science is focused on farm
management system improvements
that support sustainable and costeffective farm systems. Focusing on
farm management systems aligns
strongly with Dairy Goat Co-operative’s
production of high-value consumer
products to niche markets, and helps
to support its business success. Dairy
Goat Co-operative revenue has grown
steadily over the last 10 years, and the
work of the AgResearch team has been a
contributing factor in that growth.
In the past decade Government and
the Dairy Goat Co-operative has
invested more than $10 million into
dairy goat research. The Ministry for
Business, Innovation and Employment
is currently funding two AgResearch
programmes: $860,000 per annum over
a five-year period to study the health
and nutritional properties of goat milk
formula and a further $1.4 million per
year over a six-year period for on-farm
goat research. The Ministry for Primary
Industries’ Sustainable Farming Fund
has also invested $200,000 over three
years for researching best practices
around forage supply. Dairy Goat Cooperative and its shareholder farmers
have also provided notable support and
in-kind contributions.
The New Zealand dairy goat industry has developed
steadily over 25 years – during that time Dairy Goat
Co-operative (NZ) Limited has established itself as
New Zealand’s leading manufacturer and exporter
of goat-milk based nutritional powders.
AgResearch has partnered with the Dairy Goat Co-operative
over the last decade to research the attributes and benefits of
goat milk. A new on-farm project, Dairy Goat Supply Systems,
aims to develop best-practice guidelines for farming and
management of milking goats.
“With dairy goats there are no farming manuals and a wide
range of views on best practice farming systems,” says
Science Impact Leader Dr Warren King.
“Over the course of the remaining five years of the six-year
on-farm project, AgResearch’s Dairy Goat Project team will
undertake research into two key topics: forage supply systems
and animal performance and welfare.”
new research facility at ruakura
The industry aim of increasing the supply of dairy goat milk
produced in New Zealand has taken another step forward
with the opening of AgResearch’s new dedicated dairy
goat research facility at Ruakura.​Dairy Goat Co-operative
Chairman Campbell Storey says the AgResearch work is crucial
to the industry’s growth.
“Working with a worldrenowned agricultural
research organisation, with
a dedicated dairy goat
research facility, who will be
committed to research goat
farming-related issues is an
exciting opportunity.”
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Campbell Storey,
Chairman, Dairy Goat Co-operative
kiwi clover cultivars
taking on the world
A Grasslands Innovation-funded white and
red clover breeding programme undertaken by
AgResearch continues to expand and provide
growers in New Zealand and around the world with
options to cost-effectively increase yield and boost
returns.
Grasslands Innovation Ltd is a 30:70 joint venture between
AgResearch subsidiary Grasslanz Technology Ltd and PGG
Wrightson Seeds Ltd.
“Red clover (Trifolium pratense) generally does not tolerate
close grazing with most cultivars only lasting two years,
which, quite simply, is inadequate,” says John Ford, a
scientist with AgResearch’s Forage Improvement Group.
However, the development of Grasslands Relish red clover
is expected to turn the red clover market ‘on its head’ he
says. Relish is now marketed as a product that can be in the
ground for three to four years for conditioning breeding stock
and fattening lambs. The improved persistence and animal
performance with Relish red clover have resulted in projected
sales volumes this year that will be three to four times higher
than the previous red clover cultivar that it replaced.
benefit to new zealand
The recent availability of new clover
cultivars for New Zealand’s pastoral
livestock sector is expected to generate
additional on-farm revenue arising from
improved forage yields, persistence and
robustness for modern rotational grazed
farming systems. Based on current
projected seed sales and resultant
pasture adoption, the dairy farm sector
can expect an additional $34 million
annually in farm gate milk production,
with the sheep production sector also
gaining $11 million annually through
improved lamb carcass weights and
production.
The success of Relish is an example of long-term breeding
and development that AgResearch scientists have always
been renowned for.
Another scientist with the Forage Improvement Group, Greig
Cousins, says the development and subsequent commercial
success of cultivars like Relish also highlights the value of
AgResearch’s Margot Forde Forage Germplasm Centre –
New Zealand’s national seed bank of grassland plants.
“So in the case of Grasslands Relish, ecotype germplasm was
incorporated into New Zealand-bred cultivars and, with an
improved trialling method, helped to advance a novel cultivar
that is redefining the market and expanding the value and
use of red clover into different types of farming management
systems.”
Meanwhile, AgResearch‘s white clover programme continues
to boom and AgResearch’s long-term breeding programmes
that bring together new germplasm sources within white
clover have improved persistence on farm.
Through PGG Wrightson Seeds, AgResearch will launch
a new white clover cultivar ‘Grasslands Legacy’ in the
2015/2016 financial year which will replace the earlier ‘Kopu
II’ cultivar.
ANNUAL REPORT 2014/15
“Any germplasm that has potential agronomic benefits
is crossed with the local varieties. The best of these new
breeding lines move down the breeding pipeline and
are trialled at multiple sites under a range of grazing
managements. Only the very best are selected and bred to
become cultivars. The process can take up to 15 years, but all
that work has benefits to farmers here in New Zealand and
around the world.
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on farm
ongoing thistle control
benefit to new zealand
The accrued projected net benefit
from the introduction of green
thistle beetles as a biological weed
control agent in sub-sector steep
and extensive hill country sheep
production systems, is conservatively
estimated at $29 million with a 25:1
benefit-cost ratio over 15 years. Net
benefits are obtained from improved
pasture cover and animal productivity,
combined with mitigation of animal
health and wool contamination issues
commonly associated with invasive
Californian thistle weed infestations. Key
assumptions were estimates for peak
40% efficacy of the bio-control agent
after seven years and bio-control costs
reducing from $20 per ha at year one to
stabilise at $10 per ha from year three.
project
investment
Effective management of an invasive farm weed is
becoming more simple and robust thanks to ongoing
work undertaken by AgResearch scientists.
Californian Thistle is widespread throughout New Zealand
pasture and during its seasonal peak, covers 12% of grazed
land on sheep and 6% on beef farms, resulting in an annual
national revenue loss of $233 million. This loss increases to
$685 million per year when dairy and deer farms are included.
Work by AgResearch scientists is adding new tools to be
included in farmers’ ‘toolboxes’ to fight the aggressive weed.
The green thistle beetle (Cassida rubiginosa), released in
low-country pastures in New Zealand by the Californian
Thistle Action Group in 2007 as a biocontrol agent, is now
established in several parts of New Zealand and is showing
great promise at all sites. AgResearch is now investigating
its effects on thistle populations in hill country pastures
where conventional control practices such as mowing and
herbicides are not practical.
Meanwhile, research continues into the effects of defoliation
of the thistle. Earlier empirical work found mowing
Californian thistle during the rain greatly improves the level of
control and now a modelling study is exploring defoliation in
greater detail to help design the optimal mowing strategy.
In addition, researchers are learning more about the thistle
rust fungus and other pathogens of the weed, and their
potential as novel control methods.
Project investment for
the extensive sheep hill
country component, over
three years from 2014,
totals $1.18 million from
MPI Sustainable Farming
Funding grants and
AgResearch Core Funding.
natural insecticide
A product containing a natural insecticide to
fight one of New Zealand’s worst agricultural
insect pests, the black beetle, is a step closer
following several years of successful research
and trials by AgResearch. Research into the
product, that is infused with the naturallyoccurring bacteria Yersinia entomophaga, will
shortly begin its second stage which includes
investigating the optimum application rate
and production scale-up.
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nitrogen tool a starting
point for valuable
on-farm conversations
N-Guru is decision support software designed in a
partnership between AgResearch and Ballance
Agri-Nutrients to improve the efficiency of nitrogen
use on pastoral farms.
“AgResearch trials in 2008 showed that there was a negative
relationship between soil organic content and fertiliser
response,” says AgResearch Senior Scientist Mark Shepherd.
Ballance Agri-Nutrients funded some more nitrogen response
trials to test the results in locations throughout New Zealand
and in different seasons. Using the results from those trials
and the previous research, AgResearch scientists worked with
Ballance to come up with a simple software tool called N-Guru.
The Ballance team did the software design and AgResearch
supplied the underpinning equations to go into that software.
Soil total nitrogen tests were not a routine aspect of soil
testing but now, using the soil test where total nitrogen
varies sufficiently across the farm, the model can be used
to determine the benefit of variable nitrogen use instead of
applying nitrogen at uniform rates. Launched in 2014 Ballance
offers N-Guru as part of a fertiliser recommendation to help
farmers make better decisions.
By improving nutrient use efficiency through the strategic and
targeted use of nitrogen the risk of associated nitrogen loss is
reduced and the cost-benefit of fertiliser nitrogen application
increases.
“It is a great conversation starter for farmers and their rural
advisors. It gets everyone to think about how and where they can
get the best production from fertiliser,” says Dr Shepherd.
Development of the N-Guru software is ongoing, based on
feedback from farmers.
benefit to new zealand
Using the dairy sector as an example,
the ability for N-Guru to enable
analysis for differential N application
recommendations across a farm based
on soil test data will derive calculated
economic benefits on-farm. Ballance
advisor calculations have shown that
matching N fertiliser application to N
soil levels can result in increased N use
efficiency from 10:1 to 13:1, and 30%
additional dry matter production for
the same amount of fertiliser, when
compared to a generic practice of whole
farm N application rates. On a 100 ha
farm this equates to additional milk
solids production of 643 kg generated
by the additional 9651 kg DM produced.
Obviously the impact of N-Guru use
will be farm-specific; nevertheless as
the on-going science extension strategy
for N-Guru is developed and adopted
nationally, significant economic and
nutrient management sustainability
benefit gains to the dairy sector would
be anticipated.
N-Guru is the first product from
Ballance Agri-Nutrient’s $19.5 million,
seven-year Clearview Innovations
Primary Growth Partnership
programme, jointly funded by the
Ministry for Primary Industries.
Ballance Science Strategy Manager Warwick Catto says they
expect it to contribute significantly to the on-farm nitrogenuse efficiency objective that Ballance is targeting within the
Clearview Innovations PGP.
AgResearch scientists have identified five different animal-safe compounds that
can reduce methane emissions from sheep and cattle.
In a trial run over five years AgResearch scientists sought new types of inhibitors
of methane production that slow down or kill the methanogens, the microbes that
generate the methane. Using the genetic information that became available when
the first complete genome of a methanogen was published by the AgResearch
team in 2010, they focused on finding compounds that would inhibit methanogen
function and leave the rest of the rumen system unaffected.
Image credit
Veronika Meduna RadioNZ
The screening process identified five compounds that have now been tested
successfully in sheep, showing a reduction in methane production over a two-day
period from 30% to more than 90%.
ANNUAL REPORT 2014/15
reducing methane emissions from sheep and cattle
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on farm
p21 takes the science
to the farm
benefit to new zealand
Projected discounted cash flow analysis
with regard to Pastoral 21 Phase II
programme outputs has forecasted
important beneficial profitability gains
(derived over 15 years at 60% sector
adoption) with a net present value
(NPV) of $682 million for dairy system
improvements and competitiveness,
and NPV of $583 million for sheep
and beef (mixed livestock system)
hill country finishing systems for
young stock. Also anticipated is a 30
year NPV of additional production
values (equivalence for environmental
footprint initiatives) for novel feed
input innovations and environmental
management goal achievements ranging
from $113 to $1,051 million across
numerous initiatives.
Pastoral 21 is a collaborative venture
funded by DairyNZ, Fonterra, the
Dairy Companies Association of New
Zealand, Beef + Lamb New Zealand and
the Ministry of Business, Innovation
and Employment and AgResearch.
Investment funding commitment from
2011 to 2016 of $44.8 million; 50% from
Government via Ministry of Business,
Innovation & Employment, and 50%
from core partners DairyNZ, Fonterra,
the Dairy Companies Association of
New Zealand and Beef + Lamb
New Zealand.
Designed to boost farm productivity and reduce
environmental impacts, the Pastoral 21 programme,
which began in 2007, is now well into its second
phase, and has seen teams from many research
organisations working together in a variety
of coordinated research and farmer adoption
programmes.
The initial programme encompassed the full spectrum of
scale and complexity. One study showed the production
impact of grazing management and diet composition, while
another involved systems thinking (how individual elements
influence one another within a complete entity) among
multiple stakeholders to set targets and agree on a preferred
approach to improve the quality of waterways.
Pastoral 21 Phase II was even bolder and drew on the work
of its predecessor, as well as other public- and industry-good
R&D programmes, to create proven solutions that can be
practically applied on farms.
Its twin goals are:
• a $110/ha/year increase in average profitability from
dairy production, with a 30% reduction in nitrogen and
phosphorous losses to water
• a 3% annual meat productivity increase, while containing or
reducing environmental footprint.
“Delivering on these goals will mean changing the current
relationship between production and environmental footprint,”
says AgResearch’s P21 Science Leader Mark Shepherd.
“Thanks to science, better farm management practices and
other tools, we have found amazing ways to increase farm
production over the years. We’ve also found ways to reduce
environmental footprint – but not at the same pace. Our goal
is to reverse that trend – to ensure efficiency gains to reduce
our environmental footprint are achieved while still making
production gains.”
Dr Shepherd says that there were a number of findings from
the project.
“But the main headline is yes, we can at the very least
maintain profitability while reducing nutrient losses by
significant amounts. We have demonstrated that the
management practices work and, because there is no radical
thinking, farmers can adopt these systems now.”
16
The development of a unique merino wool fabric
by AgResearch scientists has allowed a small New
Zealand apparel company to create a niche product
to market globally online.
The fabric retains all the beneficial properties of traditional
wool fabrics in a lightweight construction with high natural
stretch and a lively drape. It’s based on a novel weavable
singles yarn production method that spins the yarn into a
special structure that isn’t hairy and where the fibres are
particularly well interlocked. This process requires a simple
attachment to existing worsted spinning machines. The
yarn is woven in a tight construction and the woven fabric is
then given a special worsted finish, ultimately producing the
fabric. It can be machine-washed and tumble-dried without
shrinkage. This shrink resistant behaviour is created purely
in the mechanical processing of the fibre, yarn and fabric,
unlike conventional methods which use chemical treatments
such as chlorine. There are significant environmental and
economic benefits.
The technology was transferred overseas but the shirts are
now being made and sold back in New Zealand. AgResearch
provided support to OneBlackShirt to source the fabric and
check the performance of both the fabric and shirts.
An established apparel company, Parisian, based in Auckland
is marketing the shirts online (www.oneblackshirt.co.nz).
benefit to new zealand
OneBlackShirt sells for NZ$225,
which is a premium price compared
to competing ready-made cotton
shirts that sell for up to NZ$160 in the
New Zealand market. OneBlackShirt
illustrates that shirt fabric is another
premium market for fine wool beyond
traditional markets such as men’s suits
and more recent developments such as
high-quality outdoor clothing.
Developing additional markets supports
the value of fine wool, for which the
inflation-adjusted price has varied over
time while holding its long-term value
over the last 20 years. New Zealand’s
fine wool (<24 micron) export volume
has trended upwards by 3.1% per year,
on average, over the last eight years.
According to Statistics New Zealand’s
Infoshare database, New Zealand
exported $8.5 million of clean and $102
million of greasy fine wool during 2014.
This compared to a value for these two
categories of $80.7 million in 2007,
which was equivalent to about $93
million in June 2015 dollars. Added-value
textile products based on fine wool were
additional to this figure but they could
not be distinguished from other textile
products in the reported statistics.
These results suggest that, while each
product like OneBlackShirt might
individually have a modest impact
on the volume of fine wool demand,
and thus on the international price of
fine wool, a range of such products
expanding the demand for fine wool
could drive millions of dollars of
additional export value each year.
Image credit:
OneBlackShirt
ANNUAL REPORT 2014/15
Stylish OneBlackShirt tailored shirts are made of a wool
fabric that was developed by AgResearch scientists at Lincoln
for Australian Wool Innovation (AWI) in 2005-2006.
in market
the stylish shirt with
science pedigree
17
in market
life cycle assessment
validates nz efficiency
benefit to new zealand
Consumer awareness about
environmental sustainability, and
including carbon footprinting is high
among a discerning consumer base,
especially in Europe, who consume
much of New Zealand’s high value lamb
and venison market products. Taking
New Zealand chilled lamb exports
to Europe as an example, some $580
million in export market value annually
would be underpinned in part by New
Zealand’s environmental credentials.
Low environmental impacts, including a
low carbon footprint, are laudable goals
for efficient food production systems.
Whole chain life cycle analysis of lamb,
dairy and beef has shown on-farm
greenhouse gas emissions accounting
for 80 to 90% of total emissions, due
largely to animal-related contributions.
However, improved productivity onfarm in the sheep sector has seen a
22% reduction in on-farm greenhouse
gas (GHG) emissions in the last 20
years, driven by improved efficiencies.
Farm scale dairy system modeling
in Southland has also shown a 13%
reduction in GHG associated with a
3% increase in profitability for farms
adopting mitigation strategies.
AgResearch expertise in LCA is
providing a leading influence for
attaining harmonisation of global
carbon footprinting methodologies,
which enable meaningful and valid
system comparisons to support
New Zealand’s market product
environmental credentials.
18
The LCA carbon footprinting
programme from 2008 to 2011
comprised a combined government and
industry investment of $1,024,000. The
investment arose from a collaborative
partnership between AgResearch
and funding partners representing
the pastoral livestock sector, namely;
Ministry of Primary Industries, Fonterra,
Landcorp Ltd, Ballance Agri-nutrients,
Meat Industry Association, Beef + Lamb
New Zealand, Elders, Wool Partners
International, DEEResearch, Deer
Industry New Zealand, and the Fertiliser
Association of New Zealand.
AgResearch scientists are leading the way with tools
to evaluate the resource use and environmental
efficiency of New Zealand agricultural systems and
products, and to account for these along the whole
supply chain or life cycle.
The application of Life Cycle Assessment (LCA) to agricultural
products is most evident with carbon footprinting but is
rapidly evolving to include wider environmental impacts.
A key benefit of LCA is that it evaluates the potential impacts
of products on multiple resource use and environmental
indicators for system optimisation. But for it to be fair
and effective requires standard methodologies that reflect
differing agricultural systems around the world. Because
these LCA requirements originate in Europe this has not
always been the case.
Dr Stewart Ledgard, Principal Scientist from our Nutrient
Management and Environmental Footprinting team, has
an important role to play in ensuring New Zealand food
products have fair and equal access to these markets. He
is currently contributing to work driven by the European
Commission as they investigate the potential implementation
of a universal and wide-ranging European food labelling
scheme. This would allow consumers to see first-hand the
impact that the product has on the environment.
“These include environmental effects that can potentially
affect human health as well as other eco-system indicators
such as water quality,” Dr Ledgard says.
“There are currently studies underway in Europe to test
evaluations for milk and red meat products so Beef + Lamb
New Zealand and the dairy industry are involved, with
support from the Ministry for Primary Industries.”
This is the latest step in research spanning more than
a decade and follows the ‘food miles’ debate that was
the catalyst for ongoing research on quantifying the
environmental footprint of our goods aimed at
European markets.
Dr Ledgard recently led a similar project for the Food and
Agriculture Organisation (FAO) of the United Nations
on small ruminant products – sheep and goat meat and
fibre products and trying to get common agreed methods
for environmental benchmarking. This is currently being
reviewed and revised.
two-way benefits for
agresearch and the
meat industry
The annual AgResearch Meat Industry Workshop
held on March 18, 2015 was the biggest in the
event's 11-year history. The invitation-only workshop
is one of the ways that AgResearch demonstrates
its ongoing support of the industry, creating
opportunities for industry representatives to discuss
and prioritise issues and learn from each other.
The workshops began in 2005 following feedback from the
New Zealand meat processing industry that they wanted a
technical forum to learn more about and share information
around recent research and development in the industry.
“This annual event is well attended by the industry and offers
AgResearch an opportunity to engage with meat industry
collaborators and other stakeholders and tell our story as
researchers,” says AgResearch Science Impact Leader - Meat
Products & Supply Dr Cameron Craigie.
“We invite technical level managers from New Zealand meat
companies, plus other stakeholders. From AgResearch’s
perspective it is about keeping in touch, discussing new ideas
and getting feedback. Our attendees come not only to catch
up with what AgResearch and other speakers are doing in the
research space, but also to network with their industry peers.
“There is a real two-way exchange of information which is
extremely valuable for everyone attending and, as there is
no other technical workshop held in New Zealand that has
a focus on the technical aspects of meat processing, we feel
like we are filling a real gap in the knowledge base of
our industry.”
benefit to new zealand
From 2006 to 2015, the number of
industrial attendees at the workshop
rose from 33 to 65. We estimate that
in 2015 the meat processing industry
invested about $85,000 in time and
travel to have their senior staff attend,
suggesting that they expected to gain
a substantially greater benefit from the
workshop than that investment.
While the specific impact of a particular
workshop cannot be readily estimated,
there is a clear overall impact from the
research, development and technology
transfer in which processors, their
technology and R&D suppliers are
engaged. For example, according to the
Meat Industry Association, the meat
processing industry employs about
25,000 people around regional New
Zealand and those people produced
43.2 tonnes of export meat per worker
in 2013 compared to 23 tonnes in 1980.
This was an 88% increase over 33 years,
or 2% compounding annual growth in
volumetric productivity, at the same
time that the industry greatly increased
value-adding to the point where 97% of
red meat exports have value added.
According to Beef + Lamb New
Zealand’s 2014 Annual Report, meat and
by-product exports from New Zealand
were worth $6.7 billion in the year to
September 2014, of which we estimate
about 70% was procurement costs
and thus the value added by the meat
processing industry was about $2 billion.
The Whai Hua Primary Growth Partnership programme
aims to develop new, added-value dairy ingredients, based
on immune-enhancing dairy milk products and is estimated
to create $8.6 million per year in economic benefits to New
Zealand by 2021. Commercial partners Wairarapa Moana ki
Pouakani Incorporation, Miraka Ltd and Kanematsu New
Zealand Ltd work closely with industry partners in the Asian
and New Zealand markets, with a focus on health-conscious
consumers. AgResearch is Whai Hua’s research partner and
is helping achieve the programme’s objectives to develop
dairy herds which produce milk with high immune-enhancing
properties, carry out product development, functionality
testing and market research.
ANNUAL REPORT 2014/15
project offers significant benefits
19
enabling impact
delivering to vision
matauranga
agresearch’s three pou of
effective maori engagement
The Māori economy is a vital element in growing
New Zealand’s overall economy. It has an estimated
asset base of over $42 billion, a $10.3 billion per year
GDP contribution and much of it is rural.
AgResearch’s goal to improve Māori agribusiness
performance lies within the wider goal of Vision Mātauranga
– to unlock the innovation potential of Māori knowledge,
resources and people – and is aligned to central government
policy initiative, He Kai Kei Aku Ringa: The Crown Māori
Economic Growth Partnership.
Pou Hononga
Mana Whenua
(Campus and
Farms)
AgResearch
Pou Kōkiri
Pou Wānanga
High Level Strategic
Partnerships
(SCI Impact)
Māori Agribusiness
Forum (Sector and
Engagement)
The AgResearch Board adopted the framework shown (left)
as a platform for AgResearch to develop more meaningful
partnerships with Māori. This is not a new concept within
Māoridom but recognises the necessary step change
needed within AgResearch to stimulate growth, identify
opportunities and capture benefits for a prosperous
Māori economy.
AgResearch is positioned at the core to demonstrate a
willingness to play an integral leadership role in delivering
quality outputs to Māori and to symbolise a desire to work
in partnership with cross-sector partners to achieve this.
The three supporting pou (pillars) each represent work
AgResearch is undertaking:
• Pou Hononga – strengthening long-term partnerships with
Mana Whenua organisations at campus and farm level
• Pou Kōkiri – developing high-level strategic partnerships
across multiple-sectors to stimulate development, growth
and practice change adaptation relevant across the sector
• Pou Wānanga – Board and management engage with sector
leaders to gain insight into matters that are nationally
significant for the Māori agribusiness sector.
supporting the growth
of maori agribusiness
AgResearch and Te Tumu Paeroa: the new
Māori Trustee have signed a memorandum
of understanding (MOU) which signifies
a new long-term relationship with positive
implications for the future of Māori
agribusiness in New Zealand and wideranging research opportunities to optimise
Māori farm performance.
20
“By tapping into AgResearch’s
expertise and network in agriscience, technology and research
it can assist us in making more
informed decisions for land
development projects that
we are involved with. This
memorandum of understanding
formalises the opportunity, and
we look forward to exploring
ways that we can work together
for shared interest.”
Jamie Tuuta
Māori Trustee and head of Te Tuma Paeroa
evaluation tool
supports better
decisions
AgResearch has been inundated with interest in
an evaluation tool developed to help grow Māori
agribusiness.
Aohanga Incorporation, a large Māori Incorporation, wanted
a tool developed to help them evaluate the relative merits of
different diversification opportunities for their land, and a
decision-making model that would make the process clear
to shareholders.
The AgResearch-developed tool is an Excel spreadsheet
that brings together information on the implications of
developing different land-based alternatives, based on the
Social Return on Investment theory. The tool incorporated
the owners’ values and priorities, the characteristics of the
land and current use to compare the potential outcomes
and benefits across four criteria: economic, social,
environmental and cultural.
Aohanga Incorporation used the tool to support integrated
decision making for land-based activities along two
dimensions: wellbeing (environmental, economic and
social), and activities (the impact of possible land-based
activities such as farming, forestry and other land uses).
They were able to compare land use options on a per
hectare basis, as well as compare enterprises including
sheep, cattle, forestry products or yield from beehives
(honey) and olive trees (olive oil).
The project has been a huge success, and has highlighted
the benefit of the effective partnership between Aohanga
and the research team, and the importance of relationships
for researchers and others working with Māori agribusiness.
The Social Return on Investment tool has garnered a lot of
interest from groups and individuals who would like to use it
to help make better decisions.
benefit to new zealand
The adoption of the Social Return
on Investment tool nationally by
primary sector-based Māori trusts and
incorporations would provide a solution
to some of the multiple purpose asset
resource management and use issues
that currently exist. The tool is capable
of assisting in land use decision making
to realise Māori livestock pastoral
system productivity and benefit gains
(where economic modelling suggests
improvements in Māori land use
capability could result in a net GDP
benefit of around $1 billion); but also
supporting the sustainable management
of an estimated $2.5 billion asset base
within Māori trust and incorporation
agricultural land ownership nationally.
project
investment
Total project investment
from 2012 to 2013 was
$130,000 from a MPI
Sustainable Farming
Fund grant and Aohanga
Incorporation support.
ANNUAL REPORT 2014/15
“People from around the country are very interested, and
a number of them have been in contact with us including
government, regional councils, district health boards, tribal
authorities, marae and farm consultants,” says AgResearch
Senior Scientist Oscar Montes de Oca Munguía.
21
enabling impact
adoption &
practice change
AgResearch has always aimed to maximise the
impact of its research and the value we create
for the sectors we serve but our Adoption and
Practice Change Roadmap, completed in May 2013,
developed better approaches that we are now
implementing across our research programmes.
Based on case studies showing what successful adoption and
practice change looks like, we developed:
• Planning tools to maximise potential for adoption and
practice change from the beginning of a project
Find out more about
AgResearch’s strategy and
the tools and processes we
have developed.
www.beyondresults.co.nz
• Monitoring and evaluation techniques to measure the
difference our science makes
• People and organisations who can facilitate and support our
researchers working alongside stakeholders.
Our process to plan for impact has four key steps:
1.Create an Impact Plan to identify stakeholders
2.Create a programme logic to establish project resources,
outputs and outcomes/impacts to be delivered
3.Identify measures that align with the project outcomes and
a data collection plan
4.Access ongoing facilitation to support data collection,
analysis, monitoring and evaluation.
primary innovation
Find out more about the project.
primaryinnovation.co.nz
The Ministry of Business, Innovation and
Employment and DairyNZ have funded a five-year
project, Primary Innovation, with the overall goal
of gaining greater economic benefit and a more
sustainable future from the performance of New
Zealand’s primary industries, including science.
Co-innovation is a way for research and the primary
industries in New Zealand to work together to accelerate the
pace of innovation and deliver more profitable growing and
farming practices. Led by AgResearch the Primary Innovation
project is encouraging and sharing ideas to foster co-learning
and co-innovation.
A unique trans-disciplinary team from three sectors –
forestry, horticulture and pastoral – and across 11 industry
organisations, Crown Research Institutes and universities,
including Wageningen University and Melbourne University,
has been formed. Together with a Community of Practice,
consisting of 44 industry and government participants, they
form an innovation network that is testing and evaluating coinnovation in action in six innovation projects.
22
collaboration
opportunities drive
infrastructure plans
The Lincoln Hub
Since our Future Footprint Programme was
announced in 2012, AgResearch has had a key role in
developing innovation hubs focusing on food sciences
in Palmerston North (FoodHQ) and land-based
sustainable productivity at Lincoln (Lincoln Hub).
Our plans to integrate science and infrastructure facilities
with universities, partner research and sector organisations
include:
• co-locating a significant number of AgResearch staff as part
of the Lincoln Hub - a world-class agricultural research and
education hub at Lincoln
• co-locating food science capability to FoodHQ - an
international centre for collaborative food research in
Palmerston North.
At the same time we are retaining research teams at all
campuses, including Ruakura and Invermay, to focus
on regional industry and specific farm systems and
environmental issues.
As well as enabling us to work with other agencies to
optimise sector and regional development, the Future
Footprint Programme will provide us with a much-needed
infrastructure update.
These initiatives will facilitate collaboration between
researchers and the private sector to accelerate innovation
and enable organisations to access facilities and equipment
more cost-effectively than they would alone.
The vision of the Lincoln Hub is to grow wealth through landbased excellence and support the growth of exports from
New Zealand’s land-based sectors though growing business,
growing talent and accelerating extension. The innovation
cluster, based at Lincoln, will bring together industry,
research and education to transform the productivity and
performance of the primary sector and enhance sustainable
economic and environmental outcomes.
The Lincoln Hub – a partnership between Lincoln University,
AgResearch, DairyNZ, Landcare Research and Plant & Food
Research – will have more than 900 scientists forming the
most significant concentration of environmental and landbased research in the Southern Hemisphere.
FoodHQ
From its base in Palmerston North FoodHQ offers one door
access to expertise across the food value chain. FoodHQ
unifies established research organisations AgResearch,
AssureQuality, Cawthron Institute, ESR (The Institute of
Environmental Science and Research), Fonterra, Massey
University, Plant & Food Research, the Riddet Institute and
the BCC. It is supported by the Palmerston North City and
Manawatū District councils.
FoodHQ plans to develop a fully-integrated super-campus
that encompasses the neighbouring Fitzherbert Science
Park and Massey University’s Manawatū campus Turitea
site. The super-campus will be home to more than 4,000
researchers and educators involved in the agri-food value
chain. Designed to meet – or surpass – world benchmarks,
it will compare with other industry-centred innovation hubs
in Denmark, the Netherlands and gives current and future
global customers one-door access to the very best in New
Zealand food innovation.
Ruakura
Farm systems and
environmental science
Lincoln as part of the Lincoln Hub
On-farm research
Invermay
Farm systems and environmental science
ANNUAL REPORT 2014/15
Grasslands as part of FoodHQ
Beyond-the-farm-gate science
23
Core
funding
Core Funding is a quantum of money that is devolved by government to AgResearch to support its
Core Purpose in accordance with its Statement of Corporate Intent.
Activities supported by Core Funding can include:
• Undertaking basic and applied research and experimental
development of importance to New Zealand
• Transferring knowledge and technologies to end-users
and stakeholders
How AgResearch intends to invest its Core Funding
is negotiated with the Shareholding Ministers through
AgResearch’s Statement of Corporate Intent.
This document is tabled with Parliament annually
and is made public after it is accepted by Government.
• Providing policy advice to Government
• Maintaining Nationally Important Assets
• Responding to emergencies and changing national priorities
• Building stronger international collaboration.l
2014/15 AgResearch revenue
by source ($million)
Core Funding
$38.9
Core Funding by outcome area
($million)
14
12.4
12.6
13.4
AgResearch SCI outcome area
13.2
IMPROVED DAIRY
ON-FARM PERFORMANCE
7
0
Other $16.3
14
13.0
11.7
9.9
9.1
7
Government other
$20.2
IMPROVED MEAT AND FIBRE
ON-FARM PERFORMANCE
0
14
Government MBIE
$21.8
7
2.7
3.6
3.6
3.1
6.4
6.5
6.0
6.7
4.4
4.5
6.0
6.8
IMPROVED RETURNS FROM
DAIRY PRODUCTS
0
14
7
Commercial
$58.1
0
14
7
0
Note: Other includes interest, royalties,
rent and dividends.
24
IMPROVED RETURNS FROM
MEAT AND FIBRE PRODUCTS
2011/12
2012/13
2013/14
2014/15
IMPROVED PAN-SECTOR
AND MĀORI AGRIBUSINESS
PERFORMANCE
Photo credit: Diane Bishop, Southland Times
An AgResearch Board initiative has
earmarked an annual Core Funding
investment of up to $1 million each
to research in the following areas
that have been identified as the ones
capable of delivering a step change to
New Zealand’s agricultural industry:
Food Provenance and Assurance
This project focuses on two specific
areas to protect and enhance New
Zealand’s food safety reputation and
integrity:
• Pre-harvest Food Chain Control,
which focuses on developing
methods and processes to reduce
food contaminants introduced onfarm
• Traceability, Counterfeit and Origin,
which develops non-invasive,
real-time testing systems to verify
product origin.
Added-Value Foods
This project focuses on adding value
to foods and ingredients over and
above their commodity value. Two
specific routes best suited to New
Zealand foods are being pursued:
• Differentiation: Finding and
highlighting key points of
differentiation in New Zealand food
ingredients/products while leveraging
the “New Zealand story” and the
well-aligned global “naturality” food
trend
• Validated Functionality: Credibly
validating health and wellbeing
benefits over and above nutrition,
which the consumer trusts and for
which they will pay a premium.
Future Farm Systems
In partnership with the pastoral
agriculture industry, this project is:
• Developing a vision of the critical
factors shaping farming systems in
the future
• Building the capacity to examine
the implications of these factors on
farming systems
• Defining farming systems that could
result from these factors
• Addressing the knowledge and
capability gaps to ensure these
farming systems prosper.
Industry Investment
During their first year in 2014/15 these
initiatives have already attracted
considerable funding from industry
partners who wish to co-invest with
AgResearch in these areas, thus
helping to grow business investment
in R&D as well as delivering valuable
science outcomes. A number of
stakeholders have also agreed to
fund separate projects that align
to a Core-Funded project and that
together constitute a mutually agreed
programme of work that meets both
organisations objectives.
Southland farmers benefit from
biological control of clover root weevil
AgResearch’s Core-Funded rapid response
of a biocontrol to fight an invasive pasture
pest in Southland has proven to be an
economic winner for Southland farmers.
In 2014 and 2015 Southland received
intensive releases of a parasitic wasp
(Microctonus aethiopoides) biocontrol
already established in other parts of New
Zealand, to battle the clover root weevil in
Southland. The weevil (Sitona obsoletus)
is a serious pasture pest whose rootfeeding larvae reduce white clover cover
and nitrogen fixation. The releases were in
response to unusually severe and prolonged
infestations during 2013 and 2014.
AgResearch’s ability to rapidly redirect some
of its Core Funding was critical in enabling
this fast response to a regional issue.
A cost-benefit analysis paper1 that was
presented at the 2015 NZ Plant Protection
Society conference, tracks the cost at
$600,000 spent on spreading the parasitoid
and finds the benefits paid for costs in
only one year because of dropping weevil
numbers.
We found that on dairy farms biological
control returned $14.78/ha/year on an
average farm or $2.3 million over the 158,017
ha estimated to be in dairy production. On
sheep and beef farms, the estimated return
to individual farmers was $6.86/ha/year or
$4.7 million over 719,854 ha, AgResearch
entomologist Scott Hardwick says.
“These benefits are ongoing for farmers
as once introduced the biocontrol become
a permanent part of the environment and
therefore the benefits apply every year post
parasitoid establishment.
“The results show in 98% of cases the
money we spent releasing the parasitic
wasp in Southland was recovered in a
year. That means a saving of quite a few
thousand dollars for each farmer and, let’s
face it, every cent counts, particularly for
dairy farmers who are facing particularly
difficult financial constraints.”
1Basse B, Phillips CB, Hardwick S, Kean JM (2015)
Economic benefits of biological control of Sitona
obsoletus (clover root weevil) in Southland pasture.
New Zealand Plant Protection 68:218–226.
ANNUAL REPORT 2014/15
Supporting transformational
science with Core Funding
25
AgResearch
science &
technology prizes
In their third year the AgResearch Science and Technology
prizes recognise outstanding achievement in research
quality and relevance and outstanding scientific output
that contributes to impact in the sector.
These prestigious annual awards demonstrate
AgResearch’s commitment to continuously improving the
quality and relevance of our research and show the impact
that our science is making.
agresearch science prize
winner 2015
3D structure of the Yersinia entomophaga toxin complex and
implications for insecticidal activity
The lead author on the paper is Dr Mark Hurst, a Senior Scientist in the
Soil Biology Team. Other authors from AgResearch include Sandra Jones
and Dr Sean Marshall, from the same team and Jason Busby and Shaun
Lott ex-AgResearch employees.
The Selection Panel described the paper as an excellent and particularly
well-written paper which uses a diverse range of methods to resolve the
molecular structure of a bacterial toxin that has potent insecticidal activity.
It then examines the way in which this molecular structure could produce
toxic effects following oral ingestion. This paper (published in PNAS,
108:20544-20549) covered a comprehensive study, and the Selection Panel
were particularly impressed with the breadth of the science. Additionally,
PNAS is a high impact journal (IF 9.809) and this 2011 paper has generated
23 citations to-date.
26
agresearch technology
prize winner 2015
The Green Revolution of Forage Grass Seed Production
The use of plant growth regulators, optimal nitrogen fertiliser and strategically timed
defoliation have resulted in notable reductions in nitrogen application rates, reduced impact
of crop lodging effects on seed yield and importantly significant seed yield gains. There have
been spectacular levels of uptake with 95% of growers adopting the technology package.
ANNUAL REPORT 2014/15
The scientists who have been working with and developing this technology are AgResearch
Senior Scientists Dr Phil Rolston and Dr Murray Kelly, AgResearch scientist Dr Jason
Trethewey and Foundation for Arable Research (FAR) collaborator Richard Chynoweth.
The development of the technology has been predominantly supported by the FAR and
PGG Wrightson Seeds.
27
Significant
staff achievements
prestigious award
for assisting chinese
agriculture
AgResearch’s Dr Phil Rolston received China’s highest award for
foreign scientists at a ceremony in Beijing in January 2015.
The 2014 International Science and Technology Cooperation
Award of the People’s Republic of China recognised his 30-year
commitment to advancing agriculture in China.
The award has been made to only 94 foreign scientists and two
international organisations since its inception in 1995.
Dr Rolston, a Senior Scientist with the Forage Breeding team at
Lincoln, received the award at a ceremony in The Great Hall of the
People. The ceremony was attended by more than 2,000 people,
including President Xi Jinping, Vice Premier Li Keqiang and
Minister of Science of Technology Wan Gang.
He has been involved in 30 R&D projects on grassland and
livestock production since the early 1980s and also been
instrumental in introducing New Zealand-style grassland farming
systems and techniques to western China.
28
The fourth AgResearch scientist in a row
has been awarded the Ray Brougham
Trophy by the New Zealand Grasslands
Association for outstanding national
contributions to the pastoral farming
industries. This year’s recipient was
Dr Stewart Ledgard and the award
recognised 35 years of science leadership
in soil fertility and environmental
management. Past winners were
Dr Syd Easton (2013), Tom Fraser (2012)
and Dr Greg Lambert (2011).
AgResearch Senior Scientist Dr Christine
Voisey was an invited keynote speaker at
the Fungal Genetics Conference, Asilomar,
CA, USA (March 2015) where she presented
results from her Marsden programme
concerning the role of mechanical stress and
calcium signalling in stimulating intercalary
growth by Epichloë fungi in grass leaves.
Science collaboration at Lincoln
Hub has been strengthened with
the appointment of AgResearch
Principal Scientist Dr Richard
McDowell as a Professor within
the Faculty of Agriculture and Life
Sciences at Lincoln University.
The position is part-time (0.2 of
a full time equivalent) with the
balance of his time remaining
with AgResearch.
Science Team Leader for Soils, Land
Use and Global Change Dr Mike
Dodd has been elected the new
President of the council of The New
Zealand Institute of Agricultural and
Horticultural Science Inc. Senior
scientist in the Forage Breeding
Innovation team Dr Jeanne Jacobs has
been elected to the council.
AgResearch’s Dr Mustafa Farouk
was awarded a Queens Service
Medal for services to the Muslim
community for his work building
bridges between generations and
communities. His role as an elder
in the Muslim community supports
the development of greater
understanding and acceptance
between communities and
generations.
In May 2015, AgResearch Science Group
Leader for Land & Environment, Dr Bram
de Vos, was appointed Managing Director
of the Environmental Sciences Group, one
of the five Sciences Groups at Wageningen
UR (University & Research Centre) in The
Netherlands. This was a great loss for
AgResearch but a tremendous career move
for Dr de Vos, who made a huge contribution
in his five years at AgResearch.
AgResearch’s Dr Trevor Jackson delivered the
Founders’ Lecture at the 34th Annual Meeting of
the Society for Invertebrate Pathology in Mainz,
Germany, which was the keynote address and
an honour awarded to a leading scientist. His
presentation was the first time an Australasian had
been recognised with this award.
AgResearch Science Group Leader for Animal
Productivity, Dr Ian Sutherland was re-elected for
a second four-year term to the Board of the World
Federation of Parasitologists.
ANNUAL REPORT 2014/15
Four AgResearch scientists were named as finalists in the Beef + Lamb New Zealand
Focus Genetics Sheep Industry Science Award. The finalists were Dr Dave Leathwick,
John McEwan, Dr Sin Phua and Dr Shannon Clarke and the award was won on 1 July
2015 by AgResearch Principal Scientist John McEwan. The citation noted that he has
been at the forefront of sheep genetics both nationally and internationally over the
past 30 years and the recognition is testament to his hard work and passion.
29
Board of
directors
Sam Robinson
CHAIR
Appointed June 2008
Sam Robinson (B.AgSci Hons) is a
well-known Hawke’s Bay sheep and
beef farmer who has had considerable
experience in agribusiness and is an
acknowledged farming leader. Sam
is currently Chair of AgResearch and
Centralines and is also on the board
of HBRIC, which is promoting the
Ruataniwha Water Storage Scheme.
Teresa Ciprian
DIRECTOR
Appointed July 2013
Teresa Ciprian has a background in
the commercialisation, marketing and
business development of branded
consumer dairy and other foods. She
has significant international business
experience, having held a number of
senior roles with Danone focused on
creating and delivering global growth
initiatives. Teresa’s governance portfolio
includes the boards of Firstlight Foods
Ltd, Aspeq Ltd and Aviation
New Zealand.
Jeff Grant
DIRECTOR
Appointed June 2014
Jeff Grant farms sheep, beef and deer
properties at Balfour and Otama Valley
in Southland. He was elected as a
Member of Parliament in 1987 and
served two terms including the role of
Senior Whip in the National Government
from 1990 until 1993 when he retired.
Jeff is currently the Chairman of Milford
Sound Development Authority, Mt
Linton Station, Southland Shared
Services & CEO’s Group and OSPRI New
Zealand. He is a director of SBS Bank
and Finance Now Ltd and is a trustee of
Pfx Trust (Massey and Lincoln University
joint venture).
30
Barry Harris
DEPUTY CHAIR
Appointed September 2009
Barry Harris is a company director with
extensive governance and executive
experience. Barry has held a number
of Chief Executive roles including
Environmental Waikato, Greater
Wellington Regional Council and
Hamilton City. He was also a senior
executive with Fonterra for five years.
Barry is also currently a director of
DairyNZ, Primary ITO and OSPRI
(former Animal Health Board).
Tania Simpson
DIRECTOR
Appointed July 2011
Tania Simpson is a Māori development
consultant with a broad range of
governance experience on boards
including Mighty River Power, Reserve
Bank of New Zealand, Landcare
Research and Maniapoto FM. She is
Chief Executive of Kōwhai Consulting
and a member of the Waitangi Tribunal
and the King’s Council. Tania has tribal
affiliations to Tainui, Ngā Puhi and Ngāi
Tahu and lives near Hamilton.
Andrew Macfarlane
DIRECTOR
Appointed July 2011
Andrew Macfarlane (B.AgSci) is a
farm management consultant, farmer
and property investor. He is a life
member and past president of the New
Zealand Institute of Primary Industry
Management. He is also a director
of ANZCO, a member of the Lincoln
University Council and Chairman of Deer
Industry New Zealand and a director
of the Ngai Tahu Rural Property. His
farming interests are in the dairy, meat
and arable sectors.
Dr Peter Stone
DIRECTOR
Appointed August 2013
Dr Peter Stone is a senior manager
at Australia’s CSIRO, where he is a
Research Director in the Land & Water
Flagship. Peter has experience in farm
management, food industry consulting,
grain marketing and agricultural
research. He is Brisbane-based but lived
in New Zealand for several years, during
which time he worked as a scientist at
Crop & Food Research.
Michelle Alexander
DIRECTOR
Appointed July 2014
Michelle Alexander is Commercial
Director/Chief Financial Officer for
Antares Restaurant Group Ltd (the
master franchisee for Burger King in
New Zealand). Michelle is a Chartered
Accountant, a member of the Institute of
Chartered Accountants of New Zealand
and a member of the New Zealand
Institute of Directors.
Dr Michael Dunbier
DIRECTOR
Appointed September 2009
Retired June 2015
Dr Michael Dunbier is a research
scientist with expertise in genetics and
plant breeding. He is a former director
of DSIR Crop Research and was the
founding Chief Executive of Crop & Food
Research. Michael chairs the board of
the Pastoral Genomics Consortium
and is also a Director of the Foundation
for Arable Research. In 2005, Michael
received the Bledisloe Medal from
Lincoln University and in 2011 the Jubilee
Medal from the New Zealand Institute
of Agricultural Science. He is a Fellow
of both the New Zealand Institute
of Agricultural Science and the New
Zealand Institute of Management.
2015
ALL FIGURES IN $K
2015 ACTUAL
2015 BUDGET
2014 ACTUAL
Total Operating Revenue
155,379
159,513
160,758
Total Operating Expenditure
154,408
159,200
160,937
Surplus/(Deficit) Before Tax
304
(720)
1,031
(113)
(692)
2,005
Total Assets
270,335
250,821
262,008
Value of Shareholders’
Investment
226,500
208,528
216,879
Surplus/(Deficit) After Tax
ANNUAL REPORT 2014/15
financials
31
Ruakura Research Centre
10 Bisley Road, Ruakura
Private Bag 3123
Hamilton 3240
Phone:+64 7 856 2836
agresearch.co.nz