R&D to drive innovation and industry growth- issues for funders and researchers

Dr Mark SweetinghamExecutive Director Grains Industry - DAFWACo-chair - Grains Industry National RD&E Strategy

AG Institute Australia Forum August, 2015

Kelly Ryan developed MyCrop®to ensure your crop is thepicture of health.

Grains Industry

WA Government’s growth agenda

Focus on supporting industries and businessesthat are capable and motivated to grow.

Economic Development

Supporting your success

Double the value of the sector

by 2025+

Our biggest and growing sector- an innovation success story‘000

Against the backdrop of a drying climate

GVAP up 80%in 15 years

GVAP up 66%in 15 years

Better geneticsBetter agronomyBetter business management

What R&D Funders Want

Governments

• Economic Growth

- productivity, jobs, export income, value adding, wealth creation

Industry

• Increased returns to levy payers

- business profitability, reduced business risk, increased asset value

Private Sector

• Return to Shareholders / Members

- products and services, market size, profitable clients

All want it sustainable

What do Researchers want

• Employment and career pathways• Worthwhile & exciting projects• Opportunities for networking and knowledge expansion• Straightforward and efficient administration transactions

(funders and own organisation)

Timeframes in Ag Innovation

From Discovery to Commercial Success

• Rhizobium inoculants (1896, Germany)• Hybrid corn (1933, USA)• Australian Sweet Lupin (1959, WA)• RR GM soybean (1980, USA)

• Understanding & responsibilities for funders and researchers

On average a 24 year cycle in agriculture

Alston, Pardey and Ruttan (2008)

management process

decision tool

new product

new skill

fail

Supporting your success

How state agencies, CSIRO, universities, the private sector and GRDC will work together with industry

National Grains Industry RD&E Strategy

• National / International Research (Discovery)

• Regional Development (Translation)

• Local Extension(Adoption)

Representation

• State Departments (5)• C’wlth Department of Agriculture (1)• GRDC (1)• CSIRO (1)• Universities (ACDA) (1)• Grain Producers Australia (3)

We are doing a very good job !

What’s the problem ?

Stakeholders Survey 2009

What growers and agribusiness thought of

• State Agencies

• CSIRO

• Universities

• CRCs

• GRDC• highly valued individuals• anti-private sector• personal expertise driven• un-strategic• difficult to engage with• internally bureaucratic• low morale

Stakeholders Survey 2009

What growers and consultants thought of

• AgChem

• Biotech

• Plant Breeding & Seed

• Fertilizer

• Machinery• short-term pragmatists• product solution focussed• globally big, but locally weak

• drying climate, more frost & seasonal variation

• total factor productivity growth flat-lining

• higher input costs

• increasing farm debt

• market deregulation and increased price volatility

• the Asian market opportunity

• increased competition from low-cost producing countries

The business environment

The RD&E environment

• Decreased public funding

• Increased private funding

• Globalisation of agchem, biotech, ag engineering and infotech

• Ageing workforce and infrastructure

• Declining regional capacity

Supporting your success

Public sector

Increased private sector involvrment

• State Departments (5)• C’wlth Department of Agriculture (1)• GRDC (2)• CSIRO (1)• Universities (3)• Grain Producers Australia (3)• National Agribusiness Reference Group (1)• Grain Trade Australia (1)• Cereal Breeders Alliance (1)• CropLife Australia (1)

2011 2014

Grains

industry

2025+

Pillars of the National Grains RD&E Strategy

1. A forward-looking plan to secure the skilled people and the critical infrastructure

2. Consultative planning processes to identify and align government and industry priorities

3. A more flexible and efficient RD&E system

4. Access the best global technology and partnerships

5. Enhanced delivery and practice change

www.npirdef.org/cms_strategy/project/6/6

Highly efficient RD&E system that fostersworld-class innovation

Industry and Government Priorities

OUTCOME STREAMS

Improved Varieties

Improved Practices

Market Competitiveness

Sector Capability

Productivity Markets Biosecurity Climate Variability Resource Management Regional Development Industry Capacity

Access to new genetics and varieties with better on-farm performance and enhanced market competitiveness.

Practices and systems that increase farm productivity and profitability whilst maintaining the resource base and product integrity.

Knowledge access and connectionsto improve the competitiveness and efficiency of the supply chain.

Up skilling to increase farm business and sector viability.

TFP growth to 2.5% p.a. by 2025

Powered by GRDC partnership investment

Projects• Long term (> 8 years) • Medium term (3-8 years)• Short term (0-3 years)

• National / International• Regional• Local

4%

Other GRDC Investments eg.

Research Companies• AGT, InterGrain, LongReach• ACPFG• AEGIC

Bilaterals• CCDM • Australian Grains Genebank

Cooperative Research Centres• Plant Biosecurity CRC

ARC Centres of Excellence• Plant Energy Biology

Capacity Building• AGI Skills & Capacity Initiative

The Road to 2025

Further transformation of the public – private agri-food innovation system

• NZ Crown Research Institutes

• UK Agri-Tech Catalyst

• EU Translational Research& Knowledge Exchange in Value Chains

Not for profit company• Northam HQ• Geraldton, Merredin,

Esperance, Perth nodes• 150 DAFWA staff

Scope• Agronomy • Soil Productivity• Crop Protection• Genetic Improvement• Farming Systems

• R&D to boost grain growing productivity;

• access relevant global grain science and technology;

• distribute knowledge and support innovation at the farm business level

GrainsWest Ltd

Proposed

Why• More flexible• Lower overheads• More efficient • Easier for the private sector

to partner with• Greater industry ownership

and direction

• R&D to boost grain growing productivity;

• access relevant global grain science and technology;

• distribute knowledge and support innovation at the farm business level

GrainsWest Ltd

Proposed

The innovation system would benefit from -

• Balanced portfolio of investments over the short and long term

• Combination of Block Grants and Competitive Grants

• Take some risks in blue-sky and accept failures - fail early or pivot - blue sky doesn’t have to mean big $

• Embed researchers in industry (real world exposure, mentoring)

• Groom successors- start early- don’t over-protect junior staff- takes time to become a really good innovator (15 year investment)

ConsumersFood companiesPrimary processors

Handlers/traders