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

1. R&D to drive innovation and industry growth- issues for funders and researchers Dr Mark Sweetingham Executive Director Grains Industry - DAFWA Co-chair - Grains Industry National RD&E Strategy AG Institute Australia Forum August, 2015

2. Grains Industry

4. Economic Development WA Government’s growth agenda Focus on supporting industries and businessesthat are capable and motivated to grow. Double the value of the sector by 2025+ Supporting your success

5. Our biggest and growing sector - an innovation success story ‘000 Against the backdrop of a drying climate

6. GVAP up 66% in 15 years GVAP up 80% in 15 years

7. 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

8. 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)

9. 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 new product fail decision tool new skill management process Alston, Pardey and Ruttan (2008)

10. National Grains Industry RD&E Strategy How state agencies, CSIRO, universities, the private sector and GRDC will work together with industry • National / International Research(Discovery) • Regional Development (Translation) • Local Extension(Adoption) Supporting your success

11. 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 ?

12. 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

13. 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

14. The business environment 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

15. 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 Public sector Supporting your success

16. 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) • CropLifeAustralia (1) 2011 2014 Grains industry 2025+

17. Pillars of the National Grains RD&E Strategy • A forward-looking plan to secure the skilled people and the critical infrastructure • Consultative planning processes to identify and align government and industry priorities • A more flexible and efficient RD&E system • Access the best global technology and partnerships • Enhanced delivery and practice change Highly efficient RD&E system that fosters world-class innovation www.npirdef.org/cms_strategy/project/6/6

18. TFP growth to 2.5% p.a. by 2025

19. 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%

20. 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

21. 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

22. GrainsWestLtd • R&D to boost grain growing productivity; • access relevant global grain science and technology; • distribute knowledge and support innovation at the farm business level • Not for profit company • Northam HQ • Geraldton, Merredin, Esperance, Perth nodes • 150 DAFWA staff • Scope • Agronomy • Soil Productivity • Crop Protection • Genetic Improvement • Farming Systems Proposed

23. GrainsWestLtd • R&D to boost grain growing productivity; • access relevant global grain science and technology; • distribute knowledge and support innovation at the farm business level • Why • More flexible • Lower overheads • More efficient • Easier for the private sector to partner with • Greater industry ownership and direction Proposed

24. 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) Handlers/traders Primary processors Food companies Consumers