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Cotton Research and Development Corporation—Report for 2013-14


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2013 -2014

Investing in RD&E for the world leading Australian cotton industry

CRDC ANNUAL REPORT

© Cotton Research and Development Corporation 2014

ISSN 1039 - 3544 ABN: 71 054 238 316

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without written permission from the Cotton Research and Development Corporation (CRDC). Enquiries concerning reproduction and publishing rights should be addressed to the CRDC Executive Director.

Cotton Research and Development Corporation Executive Director 2 Lloyd Street (PO Box 282) Narrabri NSW 2390 Australia

Phone: 02 6792 4088 Fax: 02 6792 4400 Email: crdc@crdc.com.au Website: www.crdc.com.au

If you are interested in learning more about CRDC and funded projects visit the CRDC website www.crdc.com.au or subscribe to our free magazine Spotlight.

Front cover photo: CRDC-supported mechatronic research fellow, Dr Cheryl McCarthy of the National Centre for Engineering in Agriculture (NCEA), is investigating the commercial development and evaluation of a machine vision-based weed spot sprayer. Photo courtesy NCEA.

All photos and images in this report were sourced principally from CRDC, or provided by project researchers or research institutions.

Published: December 2014

Investing in RD&E for the world leading Australian cotton industry

2013 -2014 CRDC ANNUAL REPORT

2 CRDC Annual Report 2013-2014

2 Lloyd Street (P O Box 282) NARRABRI NSW 2390 Tel: 02 6792 4088 Fax: 02 6792 4400

LETTER OF TRANSMITTAL

15 October 2014

The Hon. Barnaby Joyce MP Minister for Agriculture Parliament House Canberra ACT 2600

Dear Minister

It is with great pleasure that I submit the Corporation’s Annual Report for 2013-14, prepared in accordance with the provisions of the Primary Industries Research and Development Act 1989, the Commonwealth Authorities and Companies Act 1997 and section 46 of the Public Governance, Performance and Accountability Act 2013.

The activities of the Corporation are reported against the objectives, strategies, outputs and outcomes of the CRDC Strategic Research and Development Plan 2013-18 and are consistent with CRDC’s 2013-14 Annual Operating Plan and Portfolio Budget Statement.

Under Section 9 of the Commonwealth Authorities and Companies Act 1997, CRDC Directors are responsible for the preparation and content of the Annual Report being made in accordance with the Finance Minister’s orders. The report of operations was approved by a resolution of the Directors on 18 August 2014.

Yours sincerely

Dr Mary Corbett Chair Cotton Research and Development Corporation

3 CRDC Annual Report 2013-2014

CONTENTS

Section 1 Executive Summary 4

Report from the Chair and Executive Director 5

Major CRDC RD&E Achievements 2013-14 7

Overview of the Australian cotton industry 8

Section 2 CRDC Business 10

About CRDC 11

CRDC Operations 12

Setting the Research Priorities 14

CRDC Collaboration and Cooperation 16

Section 3 Corporate Operations 22

Business Financials 23

RD&E Investment Priorities 26

Section 4 RD&E Portfolio 28

Government and Industry Priorities 29

Program 1: Farmers 30

Program 2: Industry 38

Program 3: Customers 45

Program 4: People 52

Program 5: Performance 59

Section 5 CRDC People and Governance 64

CRDC Board 65

CRDC Employees 73

Governance and Accountability 75

Section 6 Financials 84

Independent Auditor Report 86

Statement by the Directors, Executive Director and Chief Financial Officer 88

Financial Statements 89

Notes of the Financial Statements 95

Section 7 Appendices 126

Appendix 1:

Measuring Performance 127

Appendix 2:

Australian Government Priorities 142

Appendix 3:

Environmental Performance 147

Appendix 4:

Research, Development and Extension Portfolio 148

Appendix 5:

Glossary and Acronyms 164

Appendix 6:

Annual Report List of Requirements 167

4

CRDC-supported postdoctoral research fellow, Dr Sharon van Brunschot of the University of Queensland, is investigating the control of silverleaf whitefly using similar science to that used to successfully control dengue fever in mosquitoes.

Report from the Chair and Executive Director

Major CRDC RD&E Achievements 2013-14

Overview of the Australian cotton industry

Section 1 Executive summary

5 CRDC Annual Report 2013-2014

Executive Summary

REPORT FROM THE CHAIR AND EXECUTIVE DIRECTOR

Cotton RD&E - led by CRDC over the past 24 years - has delivered and continues to deliver real outcomes for growers, the industry and the wider community.

Our focus is on improving the productivity and importantly, the profitability, of our growers and ensuring the industry is sustainable into the future - for this generation and the next. Our investments focus on all aspects by the supply chain: from growers to the wider industry to our customers, as well as our people and our performance.

A culture of RD&E innovation and the adoption of R&D findings have led to many of the industry’s success stories. Thanks to cotton RD&E, led by CRDC and delivered in partnership with our research partners, Australian cotton growers are world leaders in resource efficiency, while reducing their environmental footprint. Our growers achieve the highest yields in the world, increase productivity of around four per cent per annum and have increased their water productivity by 40 per cent and reduced their insecticide use by 95 per cent over the past 10-15 years.

The Australian cotton industry’s yield increases from 1961 to 2013, compared with the global cotton industry.

Australian

1961

1965

1969

1973

1977

1981

1985

1989

1993

1997

2001

2005

2009

2013

World

Lint yield (Kg/ha)

0

500

1,000

1,500

2,000

2,500

Today, cotton is Australia’s third most valuable agricultural export commodity. Our focus is on delivering a triple bottom line approach: outcomes that benefit the cotton industry and its communities via economic, environmental and social means. Importantly, as our investments in this year demonstrate, work continues on our future success stories.

In 2013-14, despite challenging seasonal conditions, Australia’s cotton production remained strong, with cotton growers weathering unseasonably dry conditions during planting and, in some areas flooding rains during picking, to generate an estimated four million bales - a benchmark achieved over each of the past three seasons. Cotton production during this season was particularly strong in the emerging southern New South Wales (NSW) areas and, for the first time, cotton was also grown on a commercial scale in northern Victoria during the 2013-14 season.

Weather was but one of a number of challenges faced by the industry during the year, with fluctuating cotton prices and international market changes providing external pressure. But this was also a year of major advances for the cotton industry, underpinned by the industry’s investment in RD&E - from resistance management preparation for the impending release of Bollgard III® technology to major initiatives in the marketing of Australian cotton.

The 2013-14 year also marked the first year of investment under the CRDC’s new Strategic R&D Plan 2013-18, which has a strong focus on improving the industry’s profitability, sustainability and competitiveness. With 99 per cent of Australian cotton being exported, we are not just a domestic industry. We are playing on the world stage and as the challenges get bigger, Australian cotton must get bolder.

That’s why the CRDC Strategic R&D Plan 2013-18 sets ambitious targets for the industry: ensuring cotton is profitable and farmers’ crop of choice; that the industry is the global leader in sustainable agriculture; that the industry is capturing the full value of its products for customers; that it has capable and connected people driving the industry; and that the measurement of its performance drives continuous improvements.

The Cotton Research and Development Corporation’s (CRDC’s) 2013-14 investment in research, development and extension (RD&E) continues our long standing commitment to deliver beneficial outcomes for our cotton growers and enhance industry’s performance.

6 CRDC Annual Report 2013-2014

REPORT FROM THE CHAIR AND EXECUTIVE DIRECTOR

The Plan is about ensuring the industry is prepared to overcome the challenges, and capitalise on the opportunities, ahead. In accordance with this Plan, during the 2013-14 year, CRDC invested a total of $21.9 million on behalf of cotton growers and the Australian Government in RD&E with more than 200 projects across five key program areas: farmers, industry, customers, people and performance.

The Strategic R&D Plan 2013-18 has a long-term focus on the future. The Australian cotton industry is already internationally recognised as innovative, dynamic and hugely successful - due in part to its willingness to invest in world-class RD&E results and rapidly adopt emerging science, innovations and technology.

However, the environment in which our industry operates is rapidly changing. Increased volatility in production, prices and climate, combined with rising input costs, staff shortages, and cotton’s declining share of the global fibre market all suggest that the future for the industry is going to be increasingly complex and uncertain.

The challenge for the industry is to continue adapting to these changes and remain profitable, sustainable and competitive in 20 years’ time, and beyond. It’s an ambitious goal given that the future is unpredictable. The challenge for CRDC is how and where to focus RD&E investments. As such, the Plan contains three futures themes which CRDC worked with the industry to develop in 2013-14 and will continue to develop over the coming year: profitable futures, sustainable futures and competitive futures.

In addition to a long-term strategic view for the future of the sector, ensuring RD&E continues to underpin the current success of the cotton industry is the major focus of CRDC. We believe there are strong benefits in the Australian Government continuing its co-investment in rural RD&E, working hand in hand with the Australian agricultural sector - which is why in April 2014 CRDC submitted a response to the Agricultural Competitiveness White Paper Issues Paper.

We also believe that RD&E outcomes are not truly valuable unless they reach their intended audience, which is why ensuring the outcomes of CRDC’s RD&E projects are delivered to growers has been a key focus for CRDC during 2013-14, with extension forming a critical component of CRDC’s industry involvement.

The industry’s extension program, CottonInfo, completed its second season during 2013-14, with support from joint venture partners CRDC, Cotton Australia and Cotton Seed Distributors Ltd.

During this time, CRDC also progressed with work on the response to the Australian cotton industry’s Third Environmental Assessment. Since 1991, the industry has proactively sought independent appraisal of its environmental management and performance, ensuring it continuously recognises and responds to environmental concerns. This 23 year commitment to independent environmental reviews is unique among agricultural industries, marking the industry’s dedication to continuously improving its environmental management.

The Third Environmental Assessment, conducted in 2012, identified future environmental priorities for the industry and made six specific recommendations for the industry to continue to reduce its environmental footprint. One of these, ‘deliver evidence based reporting of environmental performance’, has resulted in the development of the first Australian Grown Cotton Sustainability Report, which CRDC and Cotton Australia are currently finalising.

These achievements, combined with CRDC’s ongoing investments in RD&E on behalf of the industry, hold the industry in good stead in the lead up to the 2014-15 season, which is expected to again be a challenging one for growers, due to water shortages. Whatever the seasonal conditions, CRDC will be standing side by side with the cotton industry over the coming year, ensuring that growers and the Australian Government’s valuable investment in RD&E is delivered where it is needed most.

Finally, we will have a new Board of Directors in October 2014. Our thanks go to the current Board, who have soundly governed and guided CRDC to new levels of strategic ambition for RD&E outcomes.

Mary Corbett, CRDC Chair

Bruce Finney, CRDC Executive Director

7 CRDC Annual Report 2013-2014

MAJOR CRDC RD&E ACHIEVEMENTS 2013-14 Executive Summary

1. Continued improvements in water use efficiency Water use efficiency has long been a great success story for the Australian cotton industry, with significant gains made over time. Importantly, this work has continued in 2013-14, with RD&E investments into optimising crop water use and promoting water smart infrastructure, ensuring the industry’s efficiency gains continued their positive trend.

Irrigated cotton yields and irrigation water applied in Australia 2001-12.

Cotton yield

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Water applied

Cotton yield (bales/ha)

Water applied (ML/ha)

0

2

4

6

8

10

12

0

2

4

6

8

10

12

Source: Roth 2013

2. Development of the Bollgard III® Resistance Management Plan (RMP) Science underpinning the development of the Bollgard III® RMP is another major achievement for cotton industry RD&E during 2013-14. Preserving the efficacy of Bt cotton to control insect pests is vital to the survival of the industry, and this has been achieved through CRDC’s investment since Bt cotton was first introduced in 1996. With the latest Bt technology, Bollgard III®, set to be released in the 2015-16 season, the development of a pre-emptive RMP based on sound science has been a major focus during 2013-14.

3. Research underpinning the Cotton to Market strategy Working with industry partners to improve cotton’s market access has been a major achievement for CRDC during 2013-14. CRDC’s investment in understanding the current markets and potential opportunities for the Australian cotton industry provided sophisticated market intelligence, which in turn underpinned the development of a new industry marketing strategy by Cotton Australia with the assistance of the Australian Cotton Shippers Association (ACSA) and CRDC. The resulting Cotton to Market international program was launched in 2014, incorporating CottonLEADSTM and the Better Cotton Initiative.

Three of the major achievements from CRDC’s investment in RD&E over the 2013-14 period are:

8 CRDC Annual Report 2013-2014

Executive summary OVERVIEW OF THE AUSTRALIAN COTTON INDUSTRY

From small beginnings in the 1970s, Australia’s cotton industry is now the third most valuable agricultural export commodity. Cotton is now the major agricultural crop grown in many rural and remote regions of Queensland (Qld) and New South Wales (NSW).

Australian cotton is the highest-yielding, finest, cleanest and greenest cotton in the world. On a global scale, Australia is not a large cotton producer - only around three per cent of the global crop is grown within Australia, by some 1,300 cotton growers in Qld and NSW, and for the first time, Victoria (Vic).

However Australia is one of the largest exporters of cotton, with nearly 100 per cent of the national crop exported, generating in excess of $2 billion in export revenue annually. The industry generates significant wealth and provides an economic foundation to many regional and remote rural economies, employing up to 14,000 people.

Improved practices over the past 15 years have seen insecticide use reduced by 95 per cent and water use efficiency improved by 40 per cent, while improvements in fertiliser and energy use are driving an ongoing reduction in greenhouse gas emissions. The best cotton producers now achieve more than two bales of cotton per megalitre (ML) of water - almost double the industry average of just a decade ago. The industry is at the forefront of environmental management systems, and climate change mitigation and adaptation.

Importantly, cotton is an industry taking responsibility for itself by undertaking practice changes to meet societal expectations. The introduction of the industry’s best management practice program myBMP, the uptake of biotechnology to help reduce pesticide use, and the implementation of the industry’s environmental assessment and resulting actions, are all examples of the cotton industry recognising the need for change, and working with the RD&E system to enact it.

In recent years, new cotton varieties, and favourable weather and market conditions, have seen an expansion in southern NSW cotton growing regions, reaching as far south as the Victorian border. At the same time, CRDC research projects are exploring the viability of growing cotton in the Burdekin region in tropical Qld.

The Australian cotton industry is one of the success stories of Australian agriculture. A culture of innovation within the industry, supported by and embracing a well-organised RD&E framework, has been a major contributor to this success.

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Dr Onoriode Coast is a crop physiologist based at the Australian Cotton Research Institute near Narrabri. Dr Coast’s CRDC-supported project is applying plant-based measurements for irrigation in water limited environments in the Australian cotton industry.

10

Namoi cotton grower Matt Norrie talks with cotton researchers on farm at ‘Mollee’, Narrabri during dryland cotton picking. Photo courtesy Ruth Redfern.

About CRDC

CRDC Operations

Setting the Research Priorities

CRDC Collaboration and Cooperation

Section 2 CRDC Business

11 CRDC Annual Report 2013-2014

ABOUT CRDC CRDC Business

The Cotton Research and Development Corporation (CRDC) was established in 1990 under the Primary Industries and Research and Development Act 1989 (PIRD Act). This Act outlines the accountability of CRDC to the Australian Government and to the cotton industry, through its representative body Cotton Australia.

CRDC is based in Narrabri, NSW, the heart of one of Australia’s major cotton growing regions and home to the Australian Cotton Research Institute. CRDC invests in and manages a portfolio of research, development and extension (RD&E) programs that seek to enhance the environmental, social and economic values associated with cotton production systems, for the benefit of cotton industry participants, regional communities and the Australian people.

The CRDC is co-funded through an industry levy and matching Government contributions. The cotton industry R&D levy (excluding GST) is $2.25 per 227 kilogram bale of cotton. The Australian Government contributes matching funds up to a limit of 0.5 per cent of industry Gross Value of Production.

Vision A globally competitive and responsible cotton industry.

Mission To invest in RD&E for the world leading Australian cotton industry.

Purpose Enhancing the performance of the Australian cotton industry and community through investing in research and development, and its application.

Corporate outcome Adoption of innovation that leads to increased productivity, competitiveness and environmental sustainability through investment in research and development that benefits the Australian cotton industry and the wider community.

CRDC stakeholders „ Australian Government through the Minister

for Agriculture

„ Department of Agriculture

„ Cotton Australia

„ Cotton growers including Cotton Grower

Associations

CRDC research partners „ NSW Department of Primary Industries

„ Queensland Department of Agriculture,

Fisheries and Forestry

„ Other State Government Departments

„ Rural Research and Development Corporations

„ CSIRO

„ Universities

„ Cooperative Research Centres (CRCs)

„ Cotton Seed Distributors Limited

„ Crop Consultants Australia

„ Agribusinesses

12 CRDC Annual Report 2013-2014

CRDC OPERATIONS CRDC Business

CRDC Strategic R&D Plan 2013-18 CRDC, and its investment in R&D on behalf of the Australian cotton industry, is guided by a five year Strategic Plan (2013-18). The Plan sets the direction for the organisation and its investment and is designed to help the industry achieve its long-term vision, and the Government its rural R&D priorities.

The Plan for investment in R&D responds to the challenges arising for the Australian cotton industry’s profitability, sustainability and competitiveness. The Plan has a sharper focus, increased commitment of resources and greater ambition for future outcomes.

The Plan connects insights of changes in society with those of the cotton sector. It identifies the critical importance of responding with better knowledge sharing and even stronger relationships between farmers, industry and customers.

Core programs The importance of industry stakeholders has been recognised in the design of the plan, which consists of three RD&E programs - Farmers, Industry and Customers. Complementing these programs are two integrating programs - People and Performance, which recognise the interdependencies of issues within the RD&E programs, as well as responding to stakeholder and corporate requirements for improvement to the efficiency and effectiveness of operations.

„ Farmers - including successful crop protection,

on-farm resource use efficiency, innovations in cotton production.

„ Industry - including stewardship, natural resource

management, identifying and responding to threats.

„ Customers - including cotton quality, the

recognised value of Australian cotton, ensuring future demand for our cotton.

„ People - including skilling and educating

our industry workforce, creating networks and communication.

„ Performance - including measuring and reporting

on our industry’s performance, and continuous improvement under best management practices.

Cotton futures Within the CRDC Strategic R&D Plan 2013-18, CRDC has included three futures themes - profitable futures, sustainable futures and competitive futures. These themes provide a clear framework through which CRDC can invest in long-term innovations to address the industry’s goal to remain profitable, sustainable and competitive in 20 years’ time. During 2013-14, CRDC commenced planning the implementation of the three themes.

The scope of research in which CRDC could invest in the future is extremely broad, so to assist the industry narrow this focus, a Futures Forum was held in November 2013 with 80 delegates from across the industry gathered to help identify the areas of priority. The forum challenged assumptions about the way Australian cotton is currently produced and used, identified new ways in which cotton could be produced and used into the future, and identified the points along the supply chain where CRDC could focus its investment.

A broad range of priority areas were established as a result of the forum and outlined in a Futures Forum Delegate Report. This report gave CRDC some clear guidance on where potential investments should be directed in the future.

In 2014-15, CRDC will draft a Cotton Futures paper, outlining the priority areas, key outcomes, proposed partners and the planned procurement process for each area. This paper will be provided to the industry for consideration. From there, CRDC will start the process of calling for and investing in, specifically targeted futures research.

13 CRDC Annual Report 2013-2014

CRDC OPERATIONS

Communicating research outcomes CRDC is actively involved in the dissemination of research results, working through a range of mechanisms to promote research outcomes - principally supported by the industry’s joint extension program, CottonInfo.

CottonInfo aims to ensure the effective communication of, and support for, the adoption of research results. CRDC created the CottonInfo joint venture with Cotton Australia and Cotton Seed Distributors Ltd in 2012. Within this venture, CRDC is responsible for resourcing the program management, communication and technical specialists.

This collaboration has also seen the recruitment of new regional development officers in Qld and NSW. Their roles are aligned with technical specialists and the industry myBMP program in conducting extension campaigns to improve research communication, practice change and industry preparedness for biosecurity threats or natural disasters.

Measuring performance One of CRDC’s formal principles of operation is to strive to maximise return on industry and public funds, invested through our Corporation. The performance program includes a variety of monitoring and evaluation projects designed to ensure CRDC and industry can capture and demonstrate the impact of investment in RD&E. More information about performance projects are explained in the RD&E project summary section of this report.

CRDC analysis of a study by the Cotton Innovation Network in 2013, showed the CRDC accounted for 32 per cent of total cotton RD&E investments and was involved in over 80 per cent of all cotton RD&E undertaken in Australia.

It was estimated in a recent review that the minimum return on investment for the 2003-08 period was 7:1 for growers (a $7 benefit to growers for every $1 invested) and 14:1 for society at large (i.e. a $14 benefit to society for every $1 invested).

Overall, the CRDC estimates that public and private RD&E investment in the cotton sector is in the order of $60 million annually - supporting an industry that typically generates in excess of $2 billion in export revenue annually and contributes to broader economic, environmental and social benefits.

Cotton RD&E industry representative body Cotton Australia is the gazetted cotton industry representative organisation under the PIRD Act. Established in 1972 (as the Australian Cotton Foundation), Cotton Australia merged with the Australian Cotton Growers Research Association in 2008 to provide a united voice for cotton growers across research, stewardship, natural resource management and cotton production issues.

Cotton Australia and its members provide advice to CRDC on research strategy and investments from the perspective of cotton growers. This is achieved through a number of advisory panels aligned with CRDC’s programs.

14 CRDC Annual Report 2013-2014

SETTING THE RESEARCH PRIORITIES CRDC Business

Cotton Sector RD&E Strategy The Cotton Sector RD&E Strategy is one of 14 sectorial strategies within a national framework led by the Research and Innovation Committee (formerly the Primary Industries Standing Committee RD&E Committee). The Committee facilitates coordination among Australian and State Governments, CSIRO, Rural Research and Development Corporations, agriculture industries and universities to better harmonise roles in RD&E related to primary industries and assure that they work together effectively to maximise net benefits to Australia.

The Cotton Sector RD&E Strategy was formally approved in 2011. This strategy was a key resource for CRDC during the formation of the CRDC Strategic R&D Plan 2013-18. Progress of this plan is on-going and CRDC continues to facilitate a lead role in its implementation. The Cotton Sector RD&E Strategy sets out priorities for the cotton industry sector’s RD&E organisations to cooperate on a national basis to address the national needs of the industry.

Strategic needs of the cotton industry:

„ Better cotton plant varieties - lifts on-farm

performance and product value.

„ Improved farming systems - sustainable

production delivers quality cotton.

„ People, businesses and communities - proudly

developing cotton and sustaining regional communities and environments.

„ Product and market development - competitive

advantage through differentiation.

„ Development and delivery - maximising the

potential of research through extension.

Cotton Innovation Network Responsibility for the implementation of the Cotton Sector RD&E Strategy rests with the Cotton Innovation Network, while responsibility and authority for RD&E investment and provision of capability rests with the member organisations.

This network is independently chaired and comprises senior representatives from CRDC, the Department of Agriculture, Cotton Australia, Cotton Seed Distributors Ltd, CSIRO, NSW Department of Primary Industries, Qld Department of Agriculture, Fisheries and Forestry and the Australian Council of the Deans of Agriculture. CRDC provides the secretariat and funds the services of an independent consultant to support the work of the network.

The Cotton Sector RD&E Strategy outlines how the key RD&E organisations will work together, through the Cotton Innovation Network, to improve the quality and efficiency of RD&E over the next 10 years by coordinating:

„ Strategy and investment across cotton and with

other sectors - to maximise focus and leverage.

„ Research pathways - to define what RD&E is

needed and ensure it is sound and aligned.

„ Development and delivery - to ensure adoption

of research is optimised.

„ Capability - to ensure capacity is maintained

and developed.

The network has focused on developing a deeper and shared understanding of how these functions occur and opportunities for improvement. It has mapped what RD&E is needed currently and in the future.

CRDC’s involvement extends to greater than 80 per cent of the effort, with all the major RD&E organisations playing a significant role in at least two priorities. This highlights the integrated nature of cotton RD&E and its critical reliance on the continued commitment and involvement of all parties.

The Strategy is working effectively to ensure cotton RD&E remains well focused and organised with a strengthening ability to collaboratively solve problems and sharpen RD&E in areas where the industry can do better.

15 CRDC Annual Report 2013-2014

SETTING THE RESEARCH PRIORITIES

Vision 2029: The industry’s vision for a sustainable future In 2009, the Australian cotton industry developed a 20 year vision for the future that encompassed improved industry performance, collaboration and capacity, using a 20-year time frame to ensure a longer-term focus.

CRDC analysed ways in which it could advance the Vision 2029 elements and these were central during the formation of the CRDC Strategic R&D Plan 2013-18. CRDC meets with the Australia Cotton Industry Council annually to review progress towards achieving Vision 2029.

Element Goal CRDC invested in the following during

2013-14

Differentiated World leading supplier of an elite quality cotton highly sought in premium markets. „ Market and supply chain intelligence. „ Product, processing and supply chain

innovation and improvements.

Responsible Producer and supplier of the most environmentally and socially responsible cotton on the globe.

„ Solutions to production constraints,

optimising inputs, processes and improving environmental performance.

„ Supporting a best-practice framework.

Tough Resilient and equipped for future challenges. „ Solutions to production constraints.

„ The capacity to adapt to climate impacts.

„ Protection from biosecurity threats.

Successful Exciting new levels of performance that transform productivity and profitability of every sector of industry.

„ Improving product, production and

people.

Respected An industry recognised and valued by the wider community for its contribution to fibre and food needs of the world.

„ Measuring and communicating

performance.

Capable An industry that retains, attracts and develops highly capable people. „ Determining future capacity needs. „ Skills and leadership.

„ The industry CottonInfo team.

Source: Cotton Innovation Network.

16 CRDC Annual Report 2013-2014

CRDC Business CRDC COLLABORATION AND COOPERATION

CRDC was highly effective in partnering in over 80 per cent of the RD&E projects conducted in the cotton sector in 2013-14. Cooperation extended from participation in national cross sectorial collaborations, the industry extension joint venture CottonInfo, and at the local level, the continuation of an Aboriginal school based traineeship program (with assistance from the Aboriginal Employment Strategy).

Best Management Practices (myBMP) myBMP is the Australian cotton industry’s commitment to best practice in cotton production.

It is a voluntary farm management system that provides self-assessment mechanisms, practical tools and resources allowing growers to both comply with regulation and to ensure that cotton is produced with best practice across a range of focus areas.

It is also the mechanism that combines science and agribusiness management to lift the industry’s performance standards, address threats and anticipate future challenges and opportunities.

The Best Management Practices (BMP) program was launched in 1997 and redeveloped into the web-based program myBMP in 2010. CRDC and Cotton Australia are partners in myBMP and continue to develop the program to benefit the industry. Over time, BMP has extended from its focus as an environmental management system into a tool comprising 11 modules that touch on many areas of production and farm business. myBMP contains strong linkages with the industry’s joint extension program, CottonInfo.

Council of Rural Research and Development Corporations (CRRDC) A great deal of collaboration and cooperation takes place through the CRRDC: a forum for supporting the Rural R&D Corporations (RDCs) in collectively maximising their ongoing contribution to a sustainable and profitable Australian agricultural sector.

This collaboration extends well beyond co-investment. Cooperation, coordination and communication are equally important to avoiding duplication in research and maximising the impact of research outcomes. The scale of this collaboration extends from large national research programs to small local projects and administration, to bring a national focus in dealing with climate change, soil health, irrigation, crop protection, farm safety and human capacity.

CRDC continues to work with the CRRDC to investigate administrative efficiency gains within the RDCs and the rural R&D system as a whole.

The following table summarises CRDC collaboration with other RDCs. Many of these initiatives are covered in more detail in the RD&E project summary section of this report.

CRDC works in collaboration with other cotton industry bodies and other Research and Development Corporations (RDCs) to achieve strategic outcomes for the industry and to leverage higher returns for its investments.

17 CRDC Annual Report 2013-2014

CRDC COLLABORATION AND COOPERATION

Collaboration with Rural Research and Development Corporations (RDCs) 2013-14 Program or group Nature of collaboration

Council of Rural Research and Development Corporations (CRRDC)

The Council is made up of leaders from all 15 RDCs. The Council meets regularly throughout the year, to discuss ways to collaborate with joint RD&E projects, communication activities, business operations, and coordinate other joint RDCs activities at the broadest level. The 15 RDCs include a mix of both Statutory Authorities and industry owned companies.

1. Cotton Research and Development Corporation (CRDC)

2. Fisheries Research and Development Corporation (FRDC)

3. Grains Research and Development Corporation (GRDC)

4. Rural Industries Research and Development Corporation (RIRDC)

5. Australian Egg Corporation Limited (AECL)

6. Australian Grape and Wine Authority (AGWA)

7. Australian Meat Processing Council Limited (AMPC)

8. Australian Wool Innovation Limited (AWI)

9. Australian Pork Limited (APL)

10. Dairy Australia Limited (DA)

11. Forest and Wood Products Australia Limited (FWPA)

12. Horticulture Australia Limited (HAL)

13. Australian Livestock Export Corporation Limited (Livecorp)

14. Meat and Livestock Australia Limited (MLA)

15. Sugar Research Australia Limited (SRA)

More information about RDC collaborative projects are available from www.ruralrdc.com.au

Communications Managers group Using cross RDCs communication opportunities to promote rural industries and RD&E achievements. Each RDC nominates their Communication Manager or representative

to attend up to three group meetings each year to plan and provide input into collaborative RDC projects requiring communications support. In 2013-14, the RDC Communications Managers jointly hosted a dinner for the Agricultural Chief Scientists, a precursor event to the G20, to be held in Brisbane in late 2014.

Business Managers group Cooperation with all RDCs to improve administration, contracts, program management systems and IP management is in alignment with the Council of RDCs harmonisation

project. CRDC and GRDC continue to cooperate on best practices and innovation in IT, finance and administration. CRDC, AGWA and RIRDC continue co-hosting arrangements for Clarity program management systems.

Information Systems Managers group Cooperation between all RDCs to share Information and Communication Technology (ICT) knowledge and experiences with the various systems and software used by the RDCs.

R&D Managers Group Cooperation between all RDCs to share program, extension and R&D procurement management experiences, best practices and ICT systems.

Climate Change Research Strategy for Primary Industries

During 2013-14, CRDC worked collaboratively with other RDCs and partners of Climate Change Research Strategy for Primary Industries (CCRSPI) to review CCRSPI’s key strategic themes.

18 CRDC Annual Report 2013-2014

Program or group Nature of collaboration

Development of a Life Cycle Inventory for Australian Agriculture (AusAgLCI)

CRDC contributed to a joint program managed by RIRDC to establish a Life Cycle Inventory for Australian Agriculture. Other partners in the project include FWPA, DA, GRDC, HAL, MLA and SRA.

Primary Industries Health and Safety Partnership

CRDC renewed its co-investment in the Primary Industries Health and Safety Partnership with RIRDC, GRDC, SRA and FRDC. The five year partnership (2012-17) aims to improve the physical and mental health of farming and fishing workers, and their families, and the safety of the environment and work practices in these.

Spray drift minimisation

As the areas under conservation farming practices and GM herbicide-tolerant crop technology increase in cotton/grain producing regions, so too does the potential for spray drift damage to susceptible crops. CRDC and GRDC continue to co-invest in this program to map the location of farms where cotton is grown and invested in parallel to deliver spray application management training workshops to growers and agronomic advisors in the respective industries.

Insecticide resistance monitoring and management

CRDC and GRDC continued to co-invest in research to monitor resistance in Helicoverpa armigera and Helicoverpa punctigera to a range of pesticides commonly used on both crops.

Shared weed management issues CRDC continued to collaborate directly with GRDC on the important issue of glyphosate resistance management. A joint development and delivery focused project initiated

in 2011-12 continued into 2012-13 with an emphasis on fallow management of weeds in particular in 2013-14.

Education CRDC is collaborating broadly with rural RDCs and universities through the national Primary Industry Centre for Science Education (PICSE). This program is building on a decade of success in attracting high school students into science education and, beyond that, to careers in science that support agriculture. Other rural RDCs co-investing in PICSE are GRDC, FRDC, DA, RIRDC and HAL. The universities involved are the University of Tasmania, University of Western Australia, University of Southern Queensland, and University of the Sunshine Coast and Flinders University.

During the year CRDC continued a partnership with RIRDC, GRDC, HAL, SRA, AGWA, APL and AECL to invest in an undergraduate scholarship program, now known as Horizon Scholarships. The program is managed by RIRDC. CRDC currently supports eight Horizon undergraduate scholars.

Evaluating R&D return on investment

With significant taxpayer dollars invested in industry RD&E through the 15 RDCs, the CRRDC developed a rigorous external review process in 2006 to determine the value of these RD&E investments to the industries involved and to the Australian taxpayers. The CRRDC commissioned an external review of randomly selected research projects from RDCs every three years. The next review will occur in 2015.

CRDC COLLABORATION AND COOPERATION

19 CRDC Annual Report 2013-2014

CRDC partnerships with Australian Government CRDC was successful in gaining funding from four Australian Government grant programs. Since 1 July 2013 these projects have been managed by CRDC in partnership with government and industry and generate around $3.3 million for RD&E investment.

1. Improving energy efficiency on irrigated Australian cotton farms (Funded 2013-15; $500,411 from Department of Agriculture)

CRDC received an Energy Efficiency Information grant to deliver a two year project focused on ‘Improving energy efficiency on irrigated Australian cotton farms’.

This project aims to improve energy efficiency on irrigated Australian cotton farms and reduce their energy costs, through developing and extending a cost-effective process for irrigated cotton farmers to assess their overall energy use.

Energy audits show that a 30 per cent saving of energy on irrigated cotton farms is achievable. The National Centre for Engineering in Agriculture is coordinating industry-wide energy use benchmarking - developing and refining tools and products for cotton growers to reduce their energy consumption (including the cotton industry’s myBMP energy module and training Regional Development Officers (RDO’s) consultants and cotton farmers on tools and techniques to reduce energy consumption).

CRDC COLLABORATION AND COOPERATION

2. Carbon Farming in the Australian Cotton Industry (Funded 2013-18; $1,374,700 from Department of Agriculture)

CRDC received a Carbon Farming Futures Extension and Outreach grant, to deliver a project, focused on ‘Carbon Farming in the Australian Cotton Industry’.

The cotton industry has invested in nitrous oxide and other greenhouse gas emissions research for more than a decade, and has a a strong commitment to improvement through the industry’s Best Management Practices program myBMP and the dedicated CottonInfo team. Despite this, reducing emissions and optimising carbon sequestration on farm has been hampered by a lack of technical capacity in the integration of the various sciences, practical farm management, the policy context and economics. Through economic analysis and technical forums, a Carbon Technical Specialist, will integrate new and emerging carbon farming information into trusted cotton industry extension, BMPs and adviser training.

The appointment of this Carbon Technical Specialist within the CottonInfo team in 2013-14 is a significant step for this project. The Specialist is leading the industry effort to interpret carbon farming concepts into practical, farmer relevant practices.

3. Indirect emissions of nitrous oxide from broad acre irrigated agriculture (Funded 2013-16; $677,884 from Department of Agriculture)

CRDC received a Carbon Farming Futures Filling the Research Gap grant to deliver a three year project, focused on ‘Indirect emissions of nitrous oxide from broad acre irrigated agriculture’.

Irrigation water can contain significant concentrations of nitrate and dissolved nitrous oxide. As a result, the irrigation water itself, as well as the sediments deposited in the channels and canals of the irrigation system, may be significant sources of nitrous oxide emissions. This project seeks to identify the extent of nitrous oxide emissions from the irrigation water to determine whether it is significant, and what the appropriate management responses could be to mitigate those emissions.

20 CRDC Annual Report 2013-2014

4. Determining optimum N strategies for abatement of emissions for different irrigated cotton systems (Funded 2013-16; $769,535 from Department of Agriculture)

CRDC received a Carbon Farming Futures Action on the Ground grant to deliver a three year project, focused on ‘Determining optimum N strategies for abatement of emissions for different irrigated cotton systems’.

This project is trialling to demonstrate nitrogen fertiliser management strategies - including variable rate fertiliser applications, rotational cropping with legumes and matching fertiliser rates to crop demands on irrigated cotton farms, in three climatic zones in NSW and Qld. The aim is to determine their influence on improving nitrogen use efficiency, reducing nitrogen oxide emissions and enhancing carbon sequestration.

CRDC COLLABORATION AND COOPERATION

21

CRDC-funded researcher, Dr Rhiannon Smith of UNE, is helping growers to take advantage of future ecosystem service markets. Rhiannon’s research has found that old growth River Red Gums can store as much as 396.4 tonnes of carbon per hectare per year the same amount of carbon as 290 Holden Commodores emit in one year. Photo courtesy of Melanie Jenson.

22

Business Financials

RD&E Investment Priorities

Section 3 Corporate Operations

CRDC-funded research field trial is viewed by local cotton growers.

23 CRDC Annual Report 2013-2014

BUSINESS FINANCIALS Corporate Operations

Revenue Cotton farmers pay a levy of $2.25 for each 227 kilogram bale of cotton. Cotton levy revenue is collected at the point of ginning, that is, when cotton has been picked and delivered to cotton gins. This occurs from March to September of each calendar year, so cotton levy revenue in any financial year is drawn from two consecutive cotton crops.

The Australian Government provides a matching contribution to levy revenue. The contribution is based on the lesser of 0.5 per cent of a three-year rolling average of gross value of production, or equal to the cumulative levy receipts or up to 50 per cent of the cumulative total eligible expenditure on RD&E.

The setting and collection of the industry levy is enabled by the Primary Industries (Excise) Levies Act 1999 and the Primary Industries Levies and Charges Collection Act 1991. The Australian Government contributions in 2013-14 were capped at the value of levies collected, as it was lower than the 0.5 per cent of the three year average gross value of production.

Royalties from the sale of domestic and international planting seed, interest on investments, external grant revenue and research project refunds make up the balance of CRDC income.

Revenue 2013-14

(actuals by $m)

Industry levies 10.977

Australian Government 11.239

Royalties 1.830

Interest 1.779

Grants 1.243

Other 0.411

TOTAL 27.479

Total revenue for 2013-14 was $27.479 million. Revenue was $5.852 million (27 per cent) above budget of $21.627 million.

The above average crops in 2012-13 and 2013-14 combined to boost revenue from levies, Australian Government contributions and royalties. From the 2012-13 crop of 4.499m bales, 75 per cent of the levies were received in 2013-14.

ABARES Agricultural Commodities June 2014 estimated lint production for the 2013-14 season to be 910,000 tonnes (4.01 million bales), which is 0.51 million bales higher than the CRDC 2013-14 budget of 3.5 million bales.

Total revenue of $27.479 million for 2013-14 comprised:

„ Industry levy revenue of $10.977 million, which

includes $7.736 million (75 per cent) of the 2012-13 crop and $3.226 million (36 per cent) of the 2013-14 estimated crop.

„ Australian Government contribution of $11.239

million. Australian Government matching of expenditure was capped at the value of levies collected.

„ $1.830 million in royalties from the sale of CRDC

funded CSIRO seed varieties, which was $0.620m below budget due to delayed receipt.

„ Interest revenue of $1.779 million was 69 per cent

above budget, due to additional revenue under CRDC management.

„ Other revenue of $1.654 million, which includes

external grant revenue and project refunds. External grants included Carbon Farming Initiative $0.261 million, Action on the Ground $0.279 million, Filling the Research Gap $0.351 million, Energy Efficiency Information $0.240 million, third party project contributions of $0.112 million and projects refunds of $0.395 million.

CRDC’s investment in RD&E is funded through an industry levy and matching Government contributions. In 2013-14, the CRDC invested $22 million in cotton RD&E throughout the industry supply chain. In 2014-15, this figure is likely to equal $24 million.

24 CRDC Annual Report 2013-2014

BUSINESS FINANCIALS

Expenditure and investment Actual expenditure for 2013-14 was $21.923 million, an increase of $1.526 million over the budgeted expenditure of $20.397 million. CRDC’s increased capacity to invest in RD&E continues to attract research and scholarship funding applications.

In the previous three years CRDC worked closely with research organisations to rebuild the cotton industry’s research capacity which had been reduced during the drought period.

Actual ($m) 2009-10 2010-11 2011-12 2012-13 2013-14

Cotton Crop Size (millions of bales) 1.71 3.96 5.28 4.49 4.01*

Total Revenue 11.736 14.824 25.353 30.915 27.479

Industry levies 3.433 4.576 9.532 11.801 10.977

Australian Government 2.997 5.677 9.529 11.523 11.239

Royalties 1.897 2.789 3.145 3.971 1.830

Interest 0.568 0.805 1.401 1.726 1.779

National Program for Sustainable Irrigation ** 1.980 0.399 1.293 - -

Other (grants) *** 0.856 0.587 0.453 1.894 1.654

Expenditure total 11.501 9.812 13.717 19.301 21.923

Cotton RD&E activities 7.855 8.063 10.682 15.632 18.203

Equity position at 30 June 10.530 15.54 27.317 38.931 44.488

* ABARES estimate, Agricultural Commodities June 2014. ** The National Program for Sustainable Irrigation (NPSI) concluded 30 June 2012. ***

Includes grant income.

25 CRDC Annual Report 2013-2014

BUSINESS FINANCIALS

Portfolio Budget Statement The CRDC Portfolio Budget Statement released in May 2014 provided an estimate of CRDC’s outcomes, outputs, performance and financial position for 2014-15 to 2017-18. The statement was consistent with the CRDC Strategic R&D Plan 2013-18 and the Annual Operational Plan 2014-15.

Outcomes and outputs 2013-14 CRDC has one Government outcome: ‘Adoption of innovation that leads to increased productivity, competitiveness and environmental sustainability through investment in research and development that benefits the Australian cotton industry and the wider community.’

Outcome 2013-14

TOTAL Budgeted Revenue $21,627,000

TOTAL Actual Revenue $27,479,372

TOTAL Budgeted Cost of Outputs $20,397,000

TOTAL Actual Cost of Outputs* $21,922,966

* Total cost is shown rather than total price because CRDC is primarily funded through industry levies rather than on the basis of the price of its Outputs. Each research project and its funding contributes to the Outcome. Total research expenditure for the Outcome is calculated, with the remaining expenditure attributed to the Outcome on a pro rata basis.

Forecast revenue Water availability and commodity prices are the significant factors in forthcoming cropping decisions. The average storage level of public irrigation dams serving the Australian cotton growing region was 48 per cent of capacity in May 2014, down from 95 per cent at the same time in 2012 but well above the 10 year average of 29 per cent. These changes in circumstances reflect the volatility in cotton industry production and CRDC’s revenue. CRDC mitigates these impacts through accumulating financial reserves in good years to sustain expenditure through drought periods.

Seasonal inflows into the main cotton irrigation dams can be expected between now and the end of the cotton planting window (September to mid-November 2014). Similarly, soil moisture profiles can be expected to improve, which could enable recovery of planting in dry land areas. (Source: ABARES Agricultural Commodities Report for March-June 2014).

CRDC has budgeted for a $3.734 million operating deficit for 2014-15. This reflects revenue of $20.444 million and expenditure of $24.178 million. Industry levy revenue and Commonwealth contributions will continue to be drawn from two crop seasons, 2013-14 and 2014-15.

The size of industry levies and Commonwealth contributions is heavily reliant upon crop production, which is budgeted to be 3.0 million bales for 2014-15. However, early estimates indicate that the crop may decline to 2.0 million bales unless there is a significant increase in water availability. CRDC expects that the Australian Government contributions will be based on matching industry levy revenue in 2014-15.

Forecast expenditure Budgeted expenditure for 2014-15 is $24.178 million, an increase of $2.255 million over the 2013-14 actual expenditure. CRDC’s increased capacity to invest in RD&E continues to attract research and scholarship funding applications. The forecast expenditure for the next two years for RD&E is budgeted at approximately $20 million each year.

26 CRDC Annual Report 2013-2014

Corporate Operations RD&E INVESTMENT PRIORITIES

It includes: RD&E that seeks to ‘protect and defend’ the production base from pest threats; productivity RD&E focused on maintaining a positive rate of increase while ensuring resource use efficiency; enhancing product value through the supply chain; building a capable industry; and an element of research discovery.

The CRDC invests in applied RD&E that improves productivity, biosecurity, natural resource management and manages climate variability concurrently given the interrelationships between the issues.

The CRDC portfolio is a balance between five key areas: farmers, industry, customers, people, and performance.

CRDC program breakdown* Farmers Industry Customers People Performance TOTAL

Number of projects 70 49 20 71 14 224

Program expenditure $8.415m $5.412m $1.787m $2.019m $0.570m $18.203m

Per cent 46% 29% 10% 11% 4% 100%

* Excludes Cotton CRC projects and corporate research activities supporting RD&E planning and adoption. Some percentages have been rounded up or down.

CRDC projects 2009-10 2010-11 2011-12 2012-13 2013-14

Number of new projects 57 66 128 201 142

Number of continuing projects 50 42 50 61 118

Projects finalised 58 45 117 142 85

TOTAL number of projects** 107 108 178 262 260*

* Includes 36 Cotton CRC projects being managed to completion after the cessation of the CRC in 2012. ** Total is the sum of new and continuing projects in the same year.

The CRDC used the Strategic R&D Plan 2013-18 to guide its program investments in 2013-14. The Plan was developed with extensive industry, government and stakeholder consultation and was evaluated as part of the production of the Annual Operational Plan 2013-14 approved by the Minister in June 2013.

CRDC’s investments addressed the National Research Priorities, the Rural R&D Priorities of the Australian Government, industry priorities and the Cotton Sector RD&E Strategy.

27 CRDC Annual Report 2013-2014

RD&E INVESTMENT PRIORITIES

CRDC funded RD&E projects by National Research Priority (NRP) in 2013-14

34%

26% 24%

16%

Priority

NRP 1 - Environmentally Sustainable 24%

NRP 2 - Promoting and Maintaining Good Health 34%

NRP 3 - Frontier Technologies 16%

NRP 4 - Safeguarding Australia 26%

TOTAL 100%

CRDC funded RD&E projects by Rural R&D Priority (RRDP) 2013-14

30%

7%

8%

10%

24%

10%

11%

Priority

RRDP 1 - Productivity and Adding Value 30%

RRDP 2 - Supply Chain and Markets 7%

RRDP 3 - Natural Resource Management 11%

RRDP 4 - Climate Variability and Climate Change 10%

RRDP 5 - Biosecurity 24%

RRDP 6 - Innovation skills (supporting priority) 10%

RRDP 7 - Technology (supporting priority) 8%

TOTAL 100%

The investments against the National Research Priority (NRP) and Rural Research and Development Priorities (RRDP) attributed to each CRDC program in 2013-14 can be viewed in appendix 2 of this report.

28

Government and Industry Priorities

Program 1: Farmers

Program 2: Industry

Program 3: Customers

Program 4: People

Program 5: Performance

Section 4 RD&E Portfolio

Dr Janelle Montgomery of NSW DPI was awarded the 2013 Cotton Seed Distributors’ Researcher of the Year award for her outstanding contribution to improving cotton’s water use efficiency. Janelle is the NSW water use efficiency technical specialist for the industry’s extension program, CottonInfo, and her CRDC funded project is focused on water smart infrastructure investment. Photo courtesy Melanie Jenson.

29 CRDC Annual Report 2013-2014

GOVERNMENT AND INDUSTRY PRIORITIES RD&E Portfolio

Primary Industries Research and Development (PIRD) Act 1989 - No.17, 1990 as amended by the Rural Research and Development Legislation Amendment Act 2013. Compilation start date: 13 December 2013, Includes amendments up to: Act No.146, 2013. The objects of this Act are to:

a) make provision for the funding and administration of research and development relating to primary industries with a view to: i) increasing the economic, environmental and social benefits to members of primary industries and to the

community in general by improving the production, processing, storage, transport or marketing of the products of primary industries; and

ii) achieving the sustainable use and sustainable management of natural resources; and

iii) making more effective use of the resources and skills of the community in general and the scientific community in particular; and

iv) supporting the development of scientific and technical capacity; and

v) developing the adoptive capacity of primary producers; and

vi) improving accountability for expenditure on research and development activities in relation to primary industries; and

b) make provision for the funding and administration of marketing relating to products of primary industries.

Australian Government Industry

National Research Priorities

An Environmentally Sustainable Australia Transforming the way we utilise our land, water, mineral and energy resources through a better understanding of human and environmental systems and the use of new technologies.

Promoting and Maintaining Good Health Promoting good health and wellbeing for all Australians.

Frontier Technologies for Building and Transforming Australian Industries Stimulating the growth of world-class Australian industries using innovative technologies developed from cutting-edge research.

Safeguarding Australia Safeguarding Australia from terrorism, crime, invasive diseases and pests, strengthening our understanding of Australia’s place in the region and the world, and securing our infrastructure, particularly with respect to our digital systems.

Rural R&D Priorities

Productivity and Adding Value Improve the productivity and profitability of existing industries and support the development of viable new industries.

Supply Chain and Markets Better understand and respond to domestic and international market and consumer requirements and improve the flow of such information through the whole supply chain, including to consumers.

Natural Resource Management Support effective management of Australia’s natural resources to ensure

primary industries are both economically and environmentally sustainable.

Climate Variability and Climate Change Build resilience to climate variability and adapt to and mitigate the effects of climate change.

Biosecurity Protect Australia’s community, primary industries and environment from biosecurity threats.

Supporting priorities:

„ Innovation skills

„ Technology.

Cotton Industry Priorities

„ Invest in the skills,

strengths and occupational health and safety of the human resources in the cotton industry and its communities.

„ Improve the

sustainability of the cotton industry and its catchments.

„ Improve the

profitability of the cotton industry.

„ Create and

support a strong, focused and committed research program.

Cotton Sector RD&E Strategy five priorities: 1. Better plant varieties, 2. Improved farming systems, 3. People, business and community, 4. Product and market development and 5. Development and delivery. Cross sectoral strategies include: climate change, soils, plant biosecurity and water use.

CRDC Strategic R&D Plan five programs: Farmers, Industry, Customers, People and Performance.

30 CRDC Annual Report 2013-2014

PROGRAM 1: FARMERS

Outlined below are a selection of the key projects funded by CRDC under the five RD&E program areas: farmers, industry, customers, people and performance during 2013-14.

Program 1: Farmers Program Farmers

Outcome Cotton is profitable and consistently farmers’ crop of choice.

Measure Farmers increase productivity by 3 per cent per hectare per year

Theme 1.1 Successful Crop Protection 1.2 Productive Resource Efficiencies

1.3 Profitable Futures

Strategy Outcomes Cotton crops protected from pest, weed and disease threats.

Inputs for cotton production are optimised. Innovations in cotton production.

Will be achieved by

1.1.1 Monitoring and investigating the ecological behaviours and responses of cotton pest, weeds and diseases.

1.1.2 Testing practices that deliver improved management of insect pests, weeds and diseases.

1.1.3 Improving capacity, knowledge and adoption of techniques to successfully protect the cotton crop.

1.2.1 Delivering benchmarks of on-farm resource use efficiencies.

1.2.2 Developing and proving decision systems and practices that deliver optimal resource efficiencies on cotton farms.

1.2.3 Developing new systems and tools to support farm decision making processes.

1.2.4 Improving capacity, knowledge and adoption of techniques to optimise resource uses.

1.3.1 Investigating the application of new technologies and different scientific approaches which have the potential to deliver significant improvements and economic returns to the cotton farming system.

Measures of success Farmers are able to improve their crop management practices

based on sound science.

„ 85 per cent of farmers

adopting improved practices that reduce the reliance on pesticide inputs.

„ 50 per cent of farmers

adopting improved practices that reduce the incidence of insect pests, weeds and diseases affecting cotton on their farm.

„ World class science

foundations for managing ecological adaptations in cotton insect pests, weeds and diseases.

Farmers are able to increase their productivity:

„ per hectare of land.

„ per unit of nitrogen (N)

fertiliser.

„ per ML water.

„ per unit of CO2 equivalent

emitted.

Farmers are profitable:

„ Improving gross margins

for Australian cotton production systems.

„ On-farm innovations and

partnerships established to drive profitability.

RD&E Portfolio

31 CRDC Annual Report 2013-2014

PROGRAM 1: FARMERS

CRDC Program: Farmers

Theme: 1.1 Successful Crop Protection

Strategy: 1.1.1 Monitoring and investigating the ecological behaviours and responses of cotton pest, weeds and diseases

Measure of success: World class science foundations for managing ecological adaptations

in cotton insect pests, weeds and diseases

Monitoring and managing for disease threats New and existing disease threats continue to challenge the Australian cotton industry. The RD&E focus is on understanding the ecology of these threats and developing strategies and management tactics to address these issues. Queensland (QLD) and New South Wales (NSW) pathology projects completed early and late season disease surveys, across 79 farms, during the 2013-14 season. These surveys, which have been conducted for 31 years in NSW and 12 years in Qld, inform research and extension, and also provide ‘proof of absence’ for high priority exotic diseases.

Analysis of trends from these surveys, coupled with data from experiments and observational studies, has provided valuable strategies for integrated disease management aimed at decreasing the spread and severity of diseases. CRDC are also investing in research to understand and enhance microbial functions in the soil and improve the resilience of these soils to disease.

DAQ1402 - Fusarium wilt management in cotton (Funded July 2013 - June 2016)

This project provides pathology diagnostic services, disease management research capacity (Fusarium wilt, Boll rot) and maintains biosecurity preparedness and surveillance capacity. Diversity of Verticillium dahliae research has isolated a new strain from a farm in NSW, where severe symptoms (40 per cent yield reduction) had been reported. Research on genetic diversity of this pathogen, including pathogenicity, morphology and Vegetative Compatibility Group (VCG), is ongoing. This project has also confirmed an overall trend of increasing reniform nematode populations commonly associated with back to back cotton. Growers have reported up to 40 per cent yield loss from reniform nematodes in these back to back situations. Ongoing research is investigating the impact of growing non-host crops, such as wheat.

DAN1403 - Diseases of Cotton XI (Funded July 2013 - June 2016)

The Diseases of Cotton XI project, led by the NSW DPI, commenced in July 2013. The project builds on previous projects providing pathology research capacity for disease management (such as black root rot, Verticillium and seedling disease), as well as maintaining biosecurity preparedness and pathology capacity for surveillance and diagnostics. During 2013- 14 research investigated novel disease management approaches such as biofumigation and new seed treatments.

CSE1401 - Management options enhancing beneficial microbial functions in cotton soils (Funded July 2013 - June 2016)

This project adds to a number of existing research projects and long term experiments, by investigating how microbial communities are impacted by management practices. Working in collaboration with research teams led by Dr. Linda Smith (DAQ1402) and Dr. Karen Kirkby (DAN1403), this research aims to link the observations on soil fungal community with disease incidence and yield.

During 2013-14, preliminary results indicated a difference in soil fungal community diversity under different rotations, with the lowest diversity in the continuous cotton rotation. This research also looked for differences in microbial activity and diversity in long term nutrition/farming systems experiments at Australian Cotton Research Institute (ACRI), which will help with understanding differences between these trials, as well as the impact of management (stubble management and fertiliser application) on microbial activity important for plant growth.

32 CRDC Annual Report 2013-2014

CRDC Program: Farmers

Theme: 1.1 Successful Crop Protection

Strategy: 1.1.1 Monitoring and investigating the ecological behaviours and responses of cotton pest, weeds and diseases

Measure of success: 85 per cent of farmers adopting improved practices that reduce the

reliance on pesticide inputs

Lower reliance on insecticides (secondary pests) While total insecticide use in cotton has reduced by over 90 per cent in the last decade, within Integrated Pest Management (IPM) programs there is still very strong reliance on a few key products when pest issues arise. The future challenge for the industry will be to maintain low total insecticide use as pest threats and product availabilities continue to change. New pest threats will periodically emerge and may require the introduction/reintroduction of insecticide products to aid their control. This season’s emergence of mealy bug in new locations exemplifies a changing pest threat.

Understanding pest and beneficial ecology, availability of insect sampling techniques and damage thresholds, assists crop advisors and growers to implement practices that suppress pests and use appropriate insecticides at times when insect pest populations threaten the yield of the crop. Without thresholds, pest threats would be managed prophylactically. Insecticide applications that are triggered by thresholds represent their optimised use, therefore the greater the adoption of thresholds the lower the ‘reliance’ on insecticides. CRDC investment is aimed at refining existing thresholds, and developing thresholds and management tactics for emerging pests, such as Solenopsis mealybug. Grower and consultant survey data indicates moderate to high adoption of industry’s recommended thresholds for their management, as well as strong adoption of IPM.

CSE1403 - Automated insect monitoring for pest management (Funded July 2013 - June 2015)

This project is researching the feasibility of using a Commonwealth Scientific and Industrial Research Organisation (CSIRO) developed automated insect monitoring device to improve pest management and to better understand insect movement and habitat use. Early trials have been generally successful, and have provided interesting insights into differences in insect activity at different times of the day.

PROGRAM 1: FARMERS

CSP1401 - Enhancing IPM in cotton systems (Funded July 2013 - June 2018)

This project provides considerable IPM responsiveness capacity to industry, including in-season advice on symphyla in conjunction with Queensland Department of Agriculture, Fisheries and Forestry (QDAFF), silverleaf whitefly, and late season thrips. The project team has also provided technical support to CottonInfo, including industry training in pest sampling and identification. Research has also been conducted on the impact of new insecticides on predators, parasitoids and bees.

This builds on previous work and is presented to industry through the Cotton Pest Management Guide, ensuring that industry has the capacity to make informed decisions when selecting an insecticide as part of an overall IPM program.

Honeydew, residue from silverleaf whitefly and aphids, has the potential to damage the Australian cotton industry’s reputation for quality cotton. While management generally prevents this problem, this research is looking at the environmental degradation of these sugars if honeydew contamination does occur. A strong relationship between rainfall and reduction in honeydew concentration has been determined.

DAQ1204 - Management of mirids, stinkbugs and Solenopsis mealybug (Funded July 2011 - June 2014)

In recent years, Solenopsis mealybug has emerged as a challenging pest. This project has characterised the extent of damage at different crop stages, with heavy infestations (>500 mealybug in top 8 nodes at cut out) found to have an 80 per cent reduction in harvestable bolls.

While preliminary damage thresholds have been developed, there are currently no insecticides registered for control of this pest and insecticides are not expected to be the main means of control. Natural enemies have been proven to be effective at reducing populations. Integrated pest management that supports these natural enemies, including avoiding early season use of broad spectrum insecticides, considering increasing thresholds for other pests and good farm hygiene, have been identified as key components of mealybug management. Evaluation of insecticide options for Solenopsis mealybug are continuing, and based on research to date the Australian Pesticides and Veterinary Medicines Authority (APVMA) has recently approved a permit for field trials with buprofezen.

33 CRDC Annual Report 2013-2014

UQ1305 - Viruses, vectors and endosymbionts: Exploring interactions for control (Funded April 2013 - June 2016)

This project is focused on examining the symbiotic relationship that silverleaf whitefly (SLW) shares with bacteria (endosymbionts) that are harboured in the insects’ body and cells. Clarifying the influence that these endosymbionts have on the biology of SLW may reveal opportunities for new pest management approaches. Significant progress has been achieved in the development of diagnostic assays that underpin the surveillance efforts for virus and whitefly species identification and detection.

CRDC Program: Farmers

Theme: 1.2 Productive Resource Efficiencies

Strategy: 1.2.1 Delivering benchmarks of on-farm resource use efficiencies 1.2.3 Developing new systems and tools to support farm decision making processes 1.2.4 Improving capacity, knowledge and adoption of techniques to optimise resource uses

Measure of success: Farmers are able to increase their productivity per hectare of land, per

unit of N fertiliser and per unit of CO2 equivalent emitted

Nitrogen management The yields of Australian cotton growers continue to increase, and are on average, the highest in the world. High yields however result in high rates of nutrient removal, and the subsequent need for fertiliser to replace those nutrients, especially nitrogen.

Fertiliser costs continue to increase and nitrogen is the major component of these costs. As well as the direct costs associated with applying nitrogen, the losses (inefficiency) of nitrogen fertilisers can be significant. Most of the losses occur via the nitrogen returning as a gas to the atmosphere, as either nitrogen (N2) or nitrous oxide (N2O).

Nitrous oxide is an important greenhouse gas, with a global warming potential 300 times that of carbon dioxide. It is therefore a significant contributor to cotton’s carbon footprint. CRDC continues to invest in research aimed at better understanding how nitrogen requirements can be optimised, to reduce

PROGRAM 1: FARMERS

overall nitrogen requirements and improve nitrogen use efficiency. Optimising nitrogen use will both improve overall farm profitability and reduce greenhouse gas emissions.

The research portfolio investigating nitrogen use has a number of aims, including to:

„ Ensure that there is a comprehensive understanding

of the nutrition requirements of high-yielding cotton crops and of the associated management requirements.

„ Develop a comprehensive understanding of the

nitrogen losses from each component of the cotton-farming system and to identify management practices to minimise those losses.

Tools to help growers manage their nitrogen requirements are also being developed and enhanced, including NutriLOGIC, the Cotton Carbon Management Tool, and a new system for assessing the nitrogen content of leaves in a cotton plant.

CSP1403 - Improving cotton productivity with crop nutrition (Funded July 2013 - June 2016)

This long-term rotation and nutrition trial project began in 1994 and continues to be supported. In 2013-14 the focus of the research shifted from the impact of various rotation crops, such as vetch and faba beans on nitrogen fertiliser requirements, to investigating whether the new, significantly higher yielding varieties have different crop nutrition requirements. The project is also investigating the benefits of different crop stubble management options on nutrition needs and soil carbon levels.

CLW1401 - Monitoring greenhouse gas emissions from irrigated cropping systems (Funded July 2013 - June 2016)

The cotton industry has been investigating the losses of nitrous oxide from cotton fields since 2002 and continues to invest in developing a good understanding of the drivers for nitrous oxide emissions, which can be highly variable. This research is being conducted on the same site as the long-term rotation and nutrition trial (CSP1403). By using the different nitrogen rate treatments which that project is testing and comparing to determine optimum rates, this project is developing a clearer picture of the nitrous oxide emissions from the soil (losses) associated with different rates of fertiliser application nitrogen use (the emissions factor). The highly variable nature of the emissions requires an extensive data set to provide a clear picture.

34 CRDC Annual Report 2013-2014

FTRG1401 - Indirect emissions of nitrous oxide from broad acre irrigated agriculture (Funded July 2013 - June 2016)

In 2013-14 research commenced to investigate the losses of nitrous oxide associated with the irrigation system. This research is supported by the federal government’s Filling the Research Gap grant program. The research is investigating nitrogen losses from the water surface of the various components of the irrigation system including supply channels, return drains, furrows and water storages (an area not previously studied). Preliminary results have highlighted that the losses of nitrogen from an irrigated cotton farm via the irrigation system can be significant and options to mitigate these losses will be investigated in the coming season.

UTS1202 - Image processing method to estimate cotton requirements for nitrogen fertiliser (PhD) (Funded May 2012 - June 2015)

One of the challenges to improve nitrogen use efficiency is the ability to quickly and easily identify the current nitrogen status of the crop, so that management responses are timely. This PhD project has laid the groundwork for developing a handheld device to provide critical information about a crop’s nutrient status ‘in the field’ and filed a provisional patent for its new system for assessing nitrogen leaf content in December 2013.

DAN1306 - Cotton Gin Trash to bioethanol (Funded January 2012 - October 2014)

This project, led by NSW DPI, aimed to add value to cotton gin trash (CGT), a waste product from seed cotton processing at the gin. Current use of CGT is limited to composting the trash to use as a soil conditioner. The project evaluated higher value options than composting alone to provide ginners with an alternative source of income, and thereby improving the sustainability of the industry.

The project had a particular focus on processing methods for CGT for the production of bio-fuels. It also assessed the production of other bioproducts that may be developed from CGT.

In assessing CGT it was found that the trash contains a relatively high holocellulose content of 54 per cent (by weight), with the major component being glucans. The high proportion of available glucans and moderate lignin contents (~27 per cent) suggests CGT

is an ideal feedstock for bioprocessing into sugars and subsequently into ethanol via fermentation.

During 2013-14, results identified a number of other compounds that may provide the opportunity for further value adding of the existing waste product from ginning.

CRDC Program: Farmers

Theme: 1.2 Productive Resource Efficiencies

Strategy: 1.2.1 Delivering benchmarks of on-farm resource use efficiencies 1.2.2 Developing and proving decision systems and practices that deliver optimal resource efficiencies on cotton farms 1.2.3 Developing new systems and tools to support farm decision making processes 1.2.4 Improving capacity, knowledge and adoption of techniques to optimise resource uses

Measure of success: Farmers are able to increase their productivity per ML of water

DAN1205 - Promoting Water Smart Infrastructure Investment in NSW (Funded December 2011 to June 2014)

The Australian cotton industry has used values of Gross Production Water Use Index (GPWUIfarm) to benchmark water use efficiency since 1988-89. This project has compared the GPWUIfarm for 2012-13 to previous years. GPWUIfarm for 2006-07 and 2008-09 were 1.17 and 1.14 bales/ML, and both seasons had reduced plantings, low water availability and cotton prices.

In contrast, for 2012-13, which saw record planting and full production, the GPWUIfarm was 1.12 bales/ ML. There was no significant difference in GPWUIfarm between the three seasons, indicating the cotton industry is performing as water efficient in years of full production. Variation in GPWUIfarm between farms indicates the scope for further efficiency gains on individual farms.

PROGRAM 1: FARMERS

35 CRDC Annual Report 2013-2014

GVIA1302 - Grower led research in irrigation system comparisons in the Gwydir Valley (Funded July 2012 to August 2014)

The comparison of irrigation systems on ‘Keytah’ farm in the Gwydir Valley in NSW continues to engage many growers and industry personnel. This year’s field day attracted 130 attendees and media interest. The project results illustrate:

„ The highest yielding system was the lateral move.

„ The most water use efficient was drip irrigation.

„ Furrow had by far the greatest labour input

(hrs/p.a).

„ Laterals and drip had the highest operating energy

cost.

„ Bankless had the lowest total operating cost

($/ha/pa).

CSP1104 - Applying plant based measurements for irrigation in water limited environments (Funded July 2012 to June 2016)

In a world first under this project, irrigations were scheduled from Narrabri for a field in Emerald, based on data received from plant canopy temperature sensors, and without ever seeing the crop. Yields comparisons showed no difference between canopy temperature and traditional, with averages of 10.1 and 10.5 bales/ha respectively. This yield is consistent with highest yielding fields across different farms in the 2013-14 season in Emerald.

NEC1401 - Advancing VARIwise with autonomous irrigation and a grower’s guide (Funded July 2013 to June 2016)

This project is exploring ways to improve crop productivity through real time adaptive (spatial and temporal) control of irrigation application. The project researcher, Dr Alison McCarthy, received the CRDC sponsored, Federal Department of Agriculture’s Science and Innovation Awards for Young People in Agriculture (Cotton) in 2014, as well as the highly coveted Minister for Agriculture’s Award.

CRDC Program: Farmers

Theme: 1.2 Productive Resource Efficiencies

Strategy: 1.2.2 Developing and proving decision systems and practices that deliver optimal resource efficiencies on cotton farms

Measure of success: Farmers are able to increase their productivity per hectare of land

UQ1302 - Developing soil testing and fertiliser response guidelines to manage P, K and S fertility for irrigated and dryland cropping systems (Funded July 2012 - June 2017)

This three year project led by the Queensland Alliance for Agriculture and Food Innovation (QAAFI) has been conducting soil tests and fertiliser response guidelines to monitor phosphorus (P), potassium (K) and sulphur (S) fertility levels for irrigated and dryland cropping systems.

Soil reserves of P, K and S are declining due to removal rates exceeding replacement in fertilisers or soil amendments. Even in the situations where inputs exceed removal rates, the lack of mobility of some of these nutrients in soil (especially P and K), and the limited amount of deep tillage or soil inversion, means that these nutrients are becoming increasingly concentrated in the topsoil (0-10 cm), where they may be less available to cotton roots. Declining soil nutrient reserves will require more frequent applications of P, K and S and more targeted placement of fertiliser to ensure that the on-going high productivity of cotton farms can be maintained.

Therefore there is a need to develop improved soil and plant tissue testing guidelines to more precisely determine P, K and S fertiliser needs. While soil test and sampling strategies exist for P and K, work is still required to better enable growers and advisors to predict likely crop responsiveness, based on soil test results, and accordingly apply the optimum amount of fertiliser. Research is also required to better understand where in the soil profile cotton roots are accessing P and K, so that fertilisers can be applied in the right place and in the right form, to ensure they are most effectively accessed by the crop roots.

PROGRAM 1: FARMERS

36 CRDC Annual Report 2013-2014

Findings from the project so far have suggested that while early in the season the crop is able to utilise the P and K available in the top 30 cm, as the crop ages and the roots expand deeper into the soil profile, it becomes dependent on the deeper/subsoil nutrient reserves for P and K requirements. If confirmed, this may require a revision of the current fertiliser application placement strategies for P and K to ensure that replenishment is being provided to the soil region from which the nutrients are being extracted.

CRDC Program: Farmers

Theme: 1.2 Productive Resource Efficiencies

Strategy: 1.2.2 Developing and proving decision systems and practices that deliver optimal resource efficiencies on cotton farms

Measure of success: Farmers are able to increase their productivity per hectare of land and

per unit of CO2 equivalent emitted

DAN1202 - Managing carbon in a cotton-based farming system (Funded July 2011 - June 2014)

While the benefits of soil carbon are well understood, measuring soil carbon as part of a commercial farming operation is time-consuming and costly. It is also difficult to monitor changes in a regular and comprehensive manner across an entire farm.

This project aimed to develop a relationship between soil carbon levels, the management practices being deployed on the farm, and prevailing temperature and rainfall conditions. It was anticipated that qualitative indicators, such as rotation frequency, stubble retention levels and tillage intensity, could be used as surrogate indices for soil carbon sequestration.

Increasing soil carbon storage, as well as improving the water holding capacity of the soil and reducing greenhouse gas emissions, can also increase the resilience and long-term productivity of the soil. This increased resilience, or soil health, is achieved through improved water conservation, soil structure, nutrient storage, and reduced salinity and sodicity.

Irrigated corn was identified as a potential candidate to effectively increase soil carbon levels in a cotton-based farming system. The rotations compared were a cotton-corn-cotton sequence, and a back-to-back cotton sequence, under both a conventional and a minimum tillage (permanent bed) approach.

The preliminary results have been impressive, with a range of benefits being seen in the corn rotation. These have included increased yield of cotton in the crop following corn, higher levels of soil carbon (especially at depth; i.e. 60-120 cm), increased cotton root densities and rooting depth, and a decrease in black root rot infestation.

More broadly, the project suggested that legumes, although contributing large amounts of carbon (C) to the soil, were unable to retain it because their low C/N ratio facilitates rapid microbial decomposition. Further, C inputs of C4 crops such as sorghum and corn were much larger than those of C3 crops such as wheat, with a major proportion coming from the root systems.

CRDC Program: Farmers

Theme: 1.2 Productive Resource Efficiencies

Strategy: 1.2.3. Developing new systems and tools to support farm decision making processes

Measure of success: Farmers are able to increase their productivity per ML of water

NEC1302 - Commercial prototype smart automation system for furrow irrigation of cotton (Funded January 2013 - March 2015)

Cotton growers are under constant pressure to produce more cotton with less, including less water and less labour. Smart automated furrow irrigation potentially provides a solution for these very real constraints on irrigated cotton farms. This project aims to develop a commercial prototype system which sees the integration of the National Centre for Engineering in Agriculture (NCEA) real-time optimisation software with the Rubicon Water FarmConnect® surface irrigation automation system.

This year, performance evaluations have been undertaken on a real-time optimisation system for furrow irrigation (AutoFurrow). Trials for the system were undertaken on commercial furrow-irrigated cotton properties.

A new approach to selecting the optimal time to cut-off has been developed and tested, which will have application to both automated and manually controlled systems. For automated systems this will have the effect of making the system more robust and less susceptible to errors in the data.

PROGRAM 1: FARMERS

37 CRDC Annual Report 2013-2014

Preliminary analysis of the results from the Moree trial site show that application efficiencies above 85 per cent can be achieved consistently by all methods trialled this season.

The trials proposed for this coming season (the last season of the project) provide the opportunity to demonstrate the final configurations for the commercial prototype systems.

The output from this project will be a fully tested, commercial prototype adaptive real-time system for the automation and control of furrow irrigation. The outcome for the industry will be the commercial availability of a furrow irrigation system, able to compete with the pressurised alternative of centre pivot or lateral move machines on capital cost, water and labour savings, but without the massive energy costs.

CRDC Program : Farmers

Theme: 1.2 Productive Resource Efficiencies

Strategy: 1.2.3 Developing new systems and tools to support farm decision making processes

Measure of success: Farmers are able to increase their productivity per hectare of land

CSP1308 - Agronomic Management for Better Fibre and Textile Quality (July 2012 - June 2015)

This research is assessing the impact of different agronomic inputs and production management strategies, harvesting, and ginning, on fibre quality. The aims of this project are to develop crop and post-harvest management strategies that optimise crop fibre quality and yield, and assess the effects of changes in management and crop production conditions on fibre quality and subsequent yarn quality and spinnability.

In assessing agronomic impacts on fibre quality, different varieties were grown under two management regimes ‘Standard’ and ‘Wise’ management. The ‘Wise’ management treatment involved targeted irrigations at flowering, a later defoliation (thereby avoiding the application of boll openers), and using late season mepiquat chloride to mature the crop in time to avoid inclement weather. Standard treatments use normal irrigation practice, including the use of a boll opener at 60 per cent open bolls, and have no mepiquat chloride applied at cutout.

The results show, as expected, early defoliation had an impact on the maturity and High Volume Instrument (HVI) micronaire values of the top bolls, but limited impact of the quality of the bottom bolls. The relationship of fibre fineness, maturity and ribbon width on packing density of fibres in yarn has also been assessed. Consistently the variety with the lower inherent fibre fineness produced the cotton with lower micronaire and maturity.

Analysing the boll development period aims to support a more accurate assessment of the last effective flower. This will allow growers to improve the management of crops during the last one third of the crop production cycle. This project has produced improvements in the CottASSIST online tool by adding a micronaire predictor, which will allow growers to better predict crop quality.

To improve crop management the project is assessing the use of portable hand held technology to determine the micronaire of unopened cotton bolls to enable researchers and growers to better predict the micronaire of ginned cotton lint. This would allow better management of defoliation timing to maximise yield and avoid penalties for cotton micronaire outside of the preferred quality range (3.5-4.9).

Research also developed a new concept of fibre measurement called fibre ellipticity. It describes the shape of the fibre cross-section and will help the understanding of how fibres pack together and interact together in a yarn structure. This may have important outcomes for fibre processing and selection of fibre types to be used in processing.

PROGRAM 1: FARMERS

38 CRDC Annual Report 2013-2014

Program 2: Industry Program Industry

Outcome The Australian cotton industry is the global leader in sustainable agriculture.

Measure Industry can report against recognised sustainability indicators.

Theme 2.1 Respected Stewardship 2.2 Responsible Landscape Management 2.3 Sustainable Futures

Strategy Outcomes Industry protects its production technologies and its

biosecurity.

Industry leads in managing natural assets. An industry achieving its vision.

Will be achieved by

2.1.1 Monitoring for and investigating changes in pest and weed susceptibility to biotechnologies and crop protection products used by the cotton industry.

2.1.2 Exploring tactics and strategies that lower the risks of pesticides to the environment and resistance evolution in populations of key insect pests and weeds.

2.1.3 Developing and supporting the industry’s capacity to effectively steward key technologies and products.

2.1.4 Supporting the industry’s preparedness and ability to deal with biosecurity threats.

2.2.1 Defining the values and drivers relating to the management of natural landscapes and systems in cotton growing regions.

2.2.2 Recording and demonstrating improved environmental performance of the cotton industry.

2.2.3 Identifying and proving integrated management strategies which deliver environmental and productivity gains.

2.2.4 Researching the connectivity between cotton farms and natural systems in the landscape.

2.2.5 Supporting initiatives and partnerships to improve the knowledge and capacity to manage natural landscapes and systems in cotton regions.

2.3.1 Scoping and investigating critical threats and opportunities which may influence the long term sustainability of the Australian cotton industry.

2.3.2 Supporting innovative approaches to solve traditional industry issues and drive future sustainability.

PROGRAM 2: INDUSTRY RD&E Portfolio

39 CRDC Annual Report 2013-2014

Program 2: Industry Program Industry

Outcome The Australian cotton industry is the global leader in sustainable agriculture.

Measure Industry can report against recognised sustainability indicators.

Theme 2.1 Respected Stewardship 2.2 Responsible Landscape Management 2.3 Sustainable Futures

Measures of success Industry is able to maintain its access to, and the effectiveness

of, biotechnologies and crop protection products.

„ 100 per cent of cotton

farmers are aware of the underlying risks of trait and agricultural chemical resistance.

„ 100 per cent of insecticide

use decisions are consistent with the Insecticide Resistance Management Strategy (IRMS).

„ The cotton industry has

the necessary science to provide informed input into the development of resistance management plans for biotech traits.

„ The cotton industry

demonstrates pesticide management practices that lower the risks posed to the environment and the evolution of resistance in target insect pest and weed populations.

Industry is capable of managing its biosecurity responsibilities:

„ The cotton industry is able

to meets its biosecurity obligations.

„ The cotton industry is

prepared to effectively respond to biosecurity incursions.

Industry participation in the collective management of natural landscapes

„ Regional delivery

partnerships for every major cotton growing region.

Industry recognised for its leadership in environmental performance

„ Recognition by national

and global initiatives for biodiversity management.

„ 1000km of riparian lands

managed under best practice.

„ One million hectares of

floodplain vegetation managed under best practice.

Industry contributes to the improvement of landscape systems knowledge and science.

„ A comprehensive database

documenting the extent and condition of the natural assets the industry utilises and manages.

„ Two national science

based collaborations for the industry to inform surface and groundwater management.

Industry is capable of leading and adapting to change

„ Innovations and

partnerships established to drive cotton industry sustainability.

PROGRAM 2: INDUSTRY

40 CRDC Annual Report 2013-2014

CRDC Program: Industry

Theme: 2.1 Respected Stewardship

Strategy: 2.1.1 Monitoring for and investigating changes in pest and weed susceptibility to biotechnologies and crop protection products used by the cotton industry 2.1.2 Exploring tactics and strategies that lower the risks of pesticides to the environment and resistance evolution in populations of key insect pests and weeds 2.1.3 Developing and supporting the industry’s capacity to effectively steward key technologies and products

Measure of success: Industry is able to maintain its access to and the effectiveness of,

biotechnologies and crop protection products

Bt technology The Bt genes in Bollgard II® cotton that provide resistance to cotton’s greatest pest, Helicoverpa, have helped the industry to reduce its use of insecticides by 90 per cent in recent years. In the lead up to the commercial release of third generation Bt technology, it is critical that the industry gets the Resistance Management Plan (RMP) for Bollgard III® right to ensure the longevity of Bt technologies. Throughout 2013-14 there has been a significant effort by the Transgenic and Insect Management Strategy (TIMS) Bt Technical Panel on reviewing research relevant to the third generation Bt cotton RMP for Bollgard III®. This involves reviewing the current Bollgard II® RMP and its effectiveness and incorporating new research specific to the efficacy and expression of new Bollgard III® cultivars.

The science of resistance management is complex and a major priority for CRDC’s research investment. Along with the current investment into Bollgard II® resistance monitoring, CRDC has also been investing in research critical to determining an effective RMP

for third generation transgenic cotton.

The range of research is complex and includes:

„ Efficacy and expression characteristics of the toxins

contained in Bollgard III®.

„ Determining baseline frequencies to Vip3A,

the additional toxin contained in Bollgard III®.

„ Effectiveness of key tactics in the current RMP,

such as planting windows and refuges.

„ Alternatives to pupae busting and trap crops.

„ Helicoverpa spp ecology including flight capacity,

host preference and landscape influences on behavior.

„ Continued resistance monitoring in Bollgard II®,

including identifying resistance characteristics and potential cross resistance between different Bt toxins and conventional insecticides.

CSE1402 - Monitoring to manage resistance to Bt toxins (Funded July 2013-June 2016)

This research continues a program initiated in 1994 to monitor resistance in field populations of H. armigera and H. punctigera to the Bt toxins produced in transgenic cotton. In 2013 CSIRO shifted to performing only F1 screens to focus on the frequencies of the known resistances. In addition to screening F1 families against the toxin of interest (e.g. Cry2Ab), they introduced screens against all classes of Bt toxins (e.g. Cry1Ac and Vip3A) in an effort to detect any novel forms of resistance that carry dominance. The project has conducted extensive screening for the 2013-14 season, with early indication that there is no increases in the frequencies of resistance.

CSE1201 - The characterisation of Vip3A resistance in Helicoverpa spp. (Funded July 2011 - June 2014)

Monitoring for resistance to the Vip3A protein has revealed that genes allowing survival against this toxin already exist in H. punctigera and H. armigera, and as with Cry2Ab, the early data indicates that there is an unexpectedly high frequency of individuals in field populations that carry a gene conferring resistance to Vip3A protein. Understanding this resistance, and any associated fitness cost is an important element in development of the Bollgard III® RMP.

PROGRAM 2: INDUSTRY

41 CRDC Annual Report 2013-2014

CSE1302 - Area-wide pest suppression in transgenic landscapes: Implications for IRM (Funded July 2012 - June 2015)

Data generated from Cotton CRC projects has been combined with data generated from this project (2012-13 and 2013-14), providing a comprehensive space and time data set of Helicoverpa spp in cotton (5 years), sorghum (3 years) and pigeon pea (2 years). This final data set will be used for statistical analysis and simulation modelling. A general model for each Helicoverpa spp has been developed and includes the incorporation of real-landscape data, such as the amount of crops, and mandated and unmandated refuge, and an evaluation of the role of planting windows, in the development and delay of resistance.

CSE1304 - Managing Bt resistance and induced tolerance with effective refuge crops in preparation for Bollgard III® (Funded July 2012 - June 2015)

To better understand how well refuges work in practice relative to theory, this research developed the use of field cages to replace pupae digging. Comparisons between moth emergence from Bt cotton, with its unsprayed cotton refuge and its unsprayed pigeon pea refuge, has highlighted the importance of managing Bt cotton as well as refuge.

While most resistance work focuses on genetic resistance, this research has also investigated whether Helicoverpa spp can become tolerant of Bt, as a consequence of successive generations being exposed to low doses - survive without having resistance genes. To date, the idea that Helicoverpa can become tolerant to Bt toxins through successive generations being exposed to low doses has been demonstrated, with one toxin at a time under laboratory conditions (toxin incorporated diet). This research is now expanding to try to demonstrate this phenomenon on Bollgard II® plants.

CSE1306 - Managing Bt resistance, H.punctigera movements and cotton planting windows (Funded July 2012 - June 2015)

This project has provided key data and analysis to the Bt tech panel, including analysis of the long term pheromone trapping data and the Monsanto dataset of current (and recent) industry wide planting and defoliation dates to clarify the likely effectiveness of ‘planting windows’ with the Bt Resistance Management Plan (RMP). In addition to informing Bollgard III® discussions, this information was used

to support an application to APVMA to change planting window requirements for the 2014-15 season and is being prepared for publication.

This project is also evaluating how effectively moths from different plant host origins, move and mix within cotton production landscapes of different complexity, thus providing further evidence of the effectiveness of this critical component of the Bt RMP.

SC1301 - National Cotton Extension Development & Delivery - Stewardship of biotechnologies (Funded July 2012 - June 2015)

CRDC has invested in a Cotton Info Team Stewardship Technical Specialist, to coordinate the activities of the TIMS Bt Tech Panel and Insecticide Tech Panel. The Specialist is working with industry researchers to distil communication messages from this research to ensure the industry is aware of the importance of resistance management.

During 2014, regional meetings discussing the development of the RMP for Monsanto’s Bollgard III® technology have been delivered through the CottonInfo team, with collaboration between CRDC, Cotton Australia & Monsanto. These meetings have focused heavily on promoting the research outputs from CRDC’s stewardship theme, and have strongly demonstrated the need for locally generated research on Australian pests and the Australian environment in developing a robust RMP. A recent grower survey found that over three quarters of growers recognised the value of the elements of the RMP.

UNE1301 - Substitutes for pupae busting - commercial scale trials of moth busting (Funded July 2012 - June 2015)

Pupae busting is an effective, non-chemical method of preventing resistance carryover from one season to the next. However it can be costly, reduces soil water and carbon, and restricts farming systems. This project builds on previous work through the Cotton CRC to look at commercial area-wide trials of the novel moth attract-and-kill technology, Magnet®. This project targets moths emerging from late season cotton, and/or overwintering moths from spring wheat, as a potential way of reducing or eliminating the need for pupae busting. Field trials to date generally support the feasibility of moth busting as a tool for resistance management, with ongoing work addressing challenges of rain and timing.

PROGRAM 2: INDUSTRY

42 CRDC Annual Report 2013-2014

CRDC Program : Industry

Theme: 2.1 Respected Stewardship

Strategy: 2.1.3 Developing and supporting the industry’s capacity to effectively steward key technologies and products

Measure of success: The cotton industry demonstrates pesticide management practices

that lower the risk posed to the environment and the evolution of resistance in target insect pest and weed populations

Supporting industry capacity to manage herbicide resistance risk Herbicide resistance in cotton farming systems is a serious industry issue. Increased reliance on glyphosate in the cotton system has increased the risk of resistance developing to this herbicide. Seven weed species have confirmed glyphosate resistance. Ninety per cent of dryland area, as reported in the Crop Consultants Australia (CCA) survey, contains resistant weeds, and herbicide resistance is costing growers up to $60 per hectare per season in increased weed control.

CRDC1411 - Developing an industry-agreed strategy for managing herbicide resistance in cotton (Funded November 2013 - August 2014) CRDC commissioned Annabelle Guest to facilitate the development of a Herbicide Resistance Management Strategy (HRMS) for cotton. This strategy has been developed with guidance from Cotton Australia’s TIMS technical panel (herbicides) and the HRMS will be released in August 2014.

This strategy consolidates a large volume of weed ecology and herbicide resistance modelling conducted by project UQ1203, into a format that growers and consultants can employ in both irrigated and dryland systems. The strategy indicates the combinations of practices that offer greatest effect in delaying glyphosate resistance in herbicide tolerant cotton systems. The same practices apply to managing situations where resistant populations are already present. The future availability of multi-trait herbicide tolerant varieties has also been considered in the design of the strategy.

CRDC Program: Industry

Theme: 2.1 Respected Stewardship

Strategy 2.1.4 Supporting the industry’s preparedness and ability to deal with biosecurity threats

Measure of success: Industry is capable of managing its biosecurity responsibilities

Biosecurity CRDC has a number of investments aimed at supporting the industry’s capacity to deal with biosecurity threats through surveillance and development of diagnostic protocols and contingency plans. Investment into raising awareness and training is also ensuring that the industry has the capacity to adequately respond.

DAQ1405: Surveillance for exotic cotton viruses - Multiple targets in and nearby Australia (Funded July 2013 - June 2016)

This project has delivered better connectivity between the cotton industry and surveillance activities in northern Australia by other government agencies. This means that the cotton industry can access relevant information earlier and be more prepared to respond to changing threats. Virus research has assisted the industry to negotiate modification to import requirements for high risk plants.

Cotton leafroll dwarf virus (CLRDV), also known as Cotton blue disease and Chickpea stunt disease, was detected in an asymptomatic Sea Island cotton plant (Gossypium barbardense) in Laivai, Timor Leste in May 2013. The sample was collected by Northern Australia Quarantine Strategy (NAQS) and sent to QDAFF for screening, as part of this project. Cotton blue disease is generally regarded as the second most damaging virus disease to commercial cotton (second to Cotton leaf curl virus) and is a significant threat to the Australian cotton industry. The vector (cotton aphid - Aphis gossypii) is widespread in all Australian growing regions. This disease is a Plant Health Australia (PHA) high priority pest, and a national diagnostic protocol is currently being developed by QDAFF as part of the CRDC funded project (DAQ1201), ‘Surveillance and monitoring for endemic and exotic virus diseases of cotton’.

PROGRAM 2: INDUSTRY

43 CRDC Annual Report 2013-2014

DAQ1201: Surveillance and monitoring for endemic and exotic virus diseases of cotton (Funded July 2011 - June 2015)

Cotton blue disease is in the same family (poleroviruses) as the endemic Cotton Bunchy Top Virus. This research has identified that there are two genetically distinct strains of Cotton Bunchy Top Virus (CBTV-A and CBTV-B) found in almost all Australian cotton growing regions.

As CBTV-A and CBTV-B were found to be as different to each other as they are to Cotton blue disease, and both strains have been found in native cotton (G.sturtianum and G. australe) which occurs in scattered populations across Northern Australia, there is a likelihood these hosts may be capable of hosting other polero viruses (such as the exotic Cotton blue disease). As such they could act as a pathway for incursion from South East-Asia into Northern Australia. This research has provided important input into the industry’s Cotton blue disease contingency plan.

CRDC Program: Industry

Theme: 2.2 Responsible Landscape Management

Strategy: 2.2.3 Identifying and proving integrated management strategies which deliver environmental and productivity gains

Measure of success: Industry contributes to the improvement of landscape systems

knowledge and science.

CRDC1403 - Natural Resource Management (NRM) Technical Specialist (Funded October 2013 - June 2014)

This project translates research into action to support the cotton industry to continue to improve its environmental performance and aims to identify and improve integrated management strategies which deliver environmental and productivity gains on cotton farms.

Cotton NRM research underway is improving our understanding of how managing riparian land can promote the recruitment of trees and shrubs, the role of trees in arresting the lateral flow of groundwater in salty landscapes, the connectivity of groundwater aquifers and the value of ecosystem services provided by natural vegetated areas like erosion control, carbon storage and keeping pest thresholds lower for longer.

This project involves working closely with researchers to help define best management practices, and provide support and advice to growers to implement best management practice of natural resources on cotton farms. In 2013-14 the project undertook a major review of the myBMP Natural Assets module to ensure management of natural areas on cotton farms is guided by the latest research. This project will be extended and funded for another three years.

CRDC Program: Industry

Theme: 2.3 Sustainable Futures

Strategy: 2.3.1 Scoping and investigating critical threats and opportunities which may influence the long term sustainability of the Australian cotton industry

Measure of success: Industry is capable of leading and adapting to change

Managing Climate Change Medium term climate change models forecast an increase in average daily temperature, the concentration of carbon dioxide and the frequency of extreme weather events (especially periods of drought), as well as an increase in the intensity of rain fall events. All of these forecast changes have the potential to significantly affect the growth of cotton and how cotton should be best managed.

These projects are all interested in developing a better understanding of the implications of any changes to the climate for cotton growing and the identification of appropriate management responses (adaptation). There is a focus on temperature (extent of extremes and seasonal averages), carbon dioxide concentration, waterlogging and flooding. The research provides a broad investment in understanding the effects of a changed climate (through modelling, glass house experiments and small scale field trials) and in identifying potential adaptation options.

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44 CRDC Annual Report 2013-2014

UTS1301 - Assessing climate change impacts and adaptation options in the cotton industry (Funded July 2012 - June 2015)

This project aims to model the likely climate (including changes to the mean climate and to climate variability) in 2030 across nine cotton growing regions. The effect of climate on the key growth phases of the cotton crop, and on water use efficiency, yield and fibre quality is also being modelled. The costs and benefits of adaptation options are also being investigated.

The modelling results suggest that planting later than is current practice may be the best option to mitigate the impact of a hotter growing season on a key fibre quality parameter (micronaire). Project CSP1402, that supports large (4m x 4m) climate controlled facilities for use in the field, will be used to test and validate these modelled findings over the coming years.

CRC1101 - Improving prediction of cotton growth and production in a changing climate (Funded July 2010 - March 2014) and CSP1402 - National facility for climate change research (Funded July 2013 - December 2016)

These two projects, (CRC1101 and CSP1402), aim to investigate the interactive effects of increases in temperature and carbon dioxide levels on crop growth and development, and to evaluate the effectiveness of adaptation strategies such as choice of variety, planting date, and nutrition and irrigation management.

The PhD project CRC1101, using glass house experiments and small-scale field chambers has found that while elevated carbon dioxide levels may have a beneficial impact on crop growth and crop water use efficiency at current (ambient) temperatures, these impacts are not maintained under higher temperatures. For example, the beneficial effects of elevated carbon dioxide on crop growth and crop water use efficiency is not able to mitigate the negative impacts of higher temperatures on crop growth.

These findings will be tested in small-scale field trials utilising the climate controlled facilities supported in project CSP1402.

UWS1301 - Cotton industry adaptation to extreme weather and climate change (Funded July 2012 - December 2015)

This project aims to understand the effect of extended wet and dry periods on soil fertility and to identify potential remediation options. Project UWS1301, utilising glass houses, confirmed the small field chamber findings of CRC1101, that there is no additive effect of elevated temperature and carbon dioxide on crop growth. While each independently can enhance crop growth, there is no additional benefit when the two treatments are combined.

US1301 - The physiology of cotton crop nutrition, shade and waterlogging (Funded March 2012 - March 2015)

This PhD funded project aims to investigate the effectiveness of ethylene inhibitors to mitigate the impacts of waterlogging on crop growth and yield. This project has shown that pre-waterlogging application of the ethylene inhibitor aminoethoxyvinylglcine (AVG) not only enhanced the ability of cotton plants to recover from waterlogging, but also improved the yield of plants not subjected to waterlogging, when compared to a non-treated control.

Higher fruit abscission (loss) is a common response of cotton to many stresses, which is accelerated by higher ethylene synthesis. For waterlogging affected plants, those treated with AVG yielded 11-13 per cent higher than those not treated with AVG. While for plants not subjected to waterlogging at all, AVG treated plants yielded 7-9 per cent higher than the untreated controls.

PROGRAM 2: INDUSTRY

45 CRDC Annual Report 2013-2014

Program 3: Customers Program Customers

Outcome The Australian cotton industry captures the full value of its products.

Measure Double the premium for Australian cotton.

Theme 3.1 Assured Cotton 3.2 Differentiated Products 3.3 Competitive Futures

Strategy Outcomes The integrity and qualities of Australian cotton set global

benchmarks for customers.

Customers recognise the differentiated value of Australian cotton products.

The demand for Australian cotton products is positively transformed.

Will Be Achieved By

3.1.1 Improving Australian fibre quality testing standards and procedures and the capacity to measure and manage contamination.

3.1.2 Supporting the development and implementation of post farm gate BMPs.

3.1.3 Developing and implementing a standardised reporting system for Australian cotton product quality and traceability.

3.1.4 Benchmarking Australian cotton against key international programs for product stewardship and sustainability.

3.2.1 Identifying opportunities for improvements in fibre quality and cotton products.

3.2.2 Demonstrating the value of different fibre classes and defining fibre quality parameters that secure a premium market.

3.2.3 Developing customer-based partnerships for the development of higher value and novel products, which differentiate Australian cotton.

3.3.1 Investigating existing and future markets for Australian cotton and communicate these findings to the Australian Cotton Industry.

3.3.2 Facilitating the development of new technologies and systems to improve the competitiveness of Australia cotton.

Measures of success Customers have confidence in the integrity of Australian cotton:

„ Australia has the best ranking

for non-contamination in The International Textile Manufacturers Federation (ITMF) survey.

„ Customers recognise and use

Australia’s BMP standards as their guarantee of quality assurance.

„ Australia uses standardised

reporting systems for product quality and traceability for farmers, industry and customers.

„ Australia can respond to

customer needs for reporting sustainability indicators.

Customers value the qualities of Australian cotton:

„ New fibre classification

systems established.

„ Partnerships established to

demonstrate the potential for differentiating Australian cotton.

Customers continue to demand Australian cotton products:

„ Provide the Australian

Cotton Industry with knowledge of fabric innovations and future market opportunities.

„ Development of alternative

and high value cotton products.

PROGRAM 3: CUSTOMERS RD&E Portfolio

46 CRDC Annual Report 2013-2014

CRDC Program: Customers

Theme: 3.2 Differentiated Products

Strategy: 3.2.1 Identifying opportunities for improvements in fibre quality and cotton products

Measure of success: Customers value the qualities of Australian cotton

CMSE1305 - Commercial Ready Cottonspec (Funded July 2012 - October 2014)

This project, led by CSIRO, supports the use of high quality Australian cotton by mills. The software uses objective fibre quality data to predict yarn quality outcomes for a mill. The software system can be used to improve cotton ordering systems so mill managers can order appropriate cotton quality types to meet their end product objectives.

The current core aim is to refine the software system to be at a commercial ready stage. The project will focus on completing a commercial evaluation of the technology and initiate a process for its commercialisation.

During 2013-14, the second stage trials using the upgraded Cottonspec software version 1.1.4 (upgraded prediction models and inclusion of a Mill Correction Factor interface) commenced in four partner mills: Chongqing Sanxia, Luthai (Shandong), Demian (Shandong) and Xinjiang Esquel. Preliminary results have shown the upgraded models work very well for Chongqing Sanxia and reasonably well for Luthai and Xinjiang Esquel.

Mill Correction Factor (MCF) calculation has been refined and tested at the partner mills. The outcomes have allowed the prediction accuracy of the Cottonspec models to be significantly improved. Specific trials were completed with Australian Long Staple (ALS) cotton at Luthai Mill in China. This included blending ALS with Pima cotton.

To progress commercialisation of the technology, CSIRO engaged with and extended expression of interest (EOI) information to more than 12 potential Cottonspec licensees (companies and organisations in the cotton trading and spinning sectors) in China and Australia.

The technology offers a number of opportunities for the industry to promote the use of Australian cotton to high quality mills. Commercial scale trials, conducted over the last 3 years, have continued to demonstrate the value of the technology to mills over any existing software technologies.

CRDC Program: Customers

Theme: 3.2 Differentiated Products

Strategy: 3.2.1 Identifying opportunities for improvements in fibre quality and cotton products

Measure of success: Customers value the qualities of Australian cotton

CMSE1201 - Identifying the glass transition temperature behaviour of Australian cotton (Funded July 2011 - March 2015)

The cotton fibre may be damaged during processing at the gin and spinning mill. The physical state of the fibre can have an influence on the level of damage that may occur to the fibre during processing. The assessment of the transition behaviour, or glass transition (Tg), of the fibre may be used to manage the environmental conditions during processing and thereby improve the management of fibre processing. Tg for cotton has not been reported before.

This PhD project will assist to train a new Fibre Scientist. The project aims to measure Tg for cotton for the first time, and assess different fibres and the effects of moisture and temperature on Tg for cotton.

During 2013-14, a range of cellulose samples (cotton, viscose and Tencel fibre, cellulose filter paper and microcrystalline cellulose powder) have been assessed. Techniques used in assessing Tg include differential scanning calorimeter (DSC), dynamic mechanical analysis (DMA) and pycnometry and atomic force microscopy (AFM).

A number of fibre tests have been conducted and results are beginning to emerge in the area of glass transition (Tg). It has been noted that management of relative humidity (RH) may play a greater role in determining Tg than temperature. For example, Tg at 97 per cent RH may be -50 degrees Celsius while at 85 per cent it may be 10 degrees Celsius. This result is encouraging for assessing future management of Tg within cotton ginning and processing.

PROGRAM 3: CUSTOMERS

47 CRDC Annual Report 2013-2014

Future experiments will focus on determining whether there is any difference in the Tg of (developmentally) immature cotton compared to mature cotton fibres. This work will aim to identify the Tg, crystallinity and density of cotton of different varieties at varying developmental maturity, and relate these findings to their possible impact on post-harvest processing.

CMSE1312 - Cotton contamination detection sensors (Funded July 2012 - June 2014)

Australian cotton has very low levels of contaminant and as such is able to command premiums on the basis of this property. The use of new harvesters that produce modules wrapped in plastic on the harvester has reduced harvest costs. However, the plastic that encases these modules may present a contamination risk. Anecdotal evidence indicates that not all plastic is removed in the module feed area by operators or by the mechanised systems used to remove the wraps. A consequence is that if fragments of plastic were be to found in bales, the contamination free impression that mills have of Australian cotton will be damaged.

The project involved working in collaboration with Australian Ginners and the commercial company Loptex Italia (a manufacturer of sensors for detecting contamination in textile mills), to develop high speed contamination detectors and removal systems for use by Australian cotton gins.

Outcomes of the project have included the development of low cost camera base sensors to be used at the module hood feeding point of the gin. These sensors are able to provide gin operators a view of the feed rollers or beaters, and to determine if they become contaminated with any plastic wrap from the modules. The cameras proved very successful in providing the first stage of detection and have been adopted across a number of gins. The project aims to refine the software used in detection of the plastic by the cameras to provide an automated warming system for ginners.

Commercial interest for the CSIRO module hood sensor system is high. The system’s contaminant recognition factor was above 80 per cent, which justifies it as a useful tool able to improve and perfect Australia’s reputation in the international markets, as a producer of quality contaminant free cotton. In addition the system provides valuable data to gin operators about day-to-day contamination management while a gin is in operation.

The development of more advanced inline contamination sensor systems has progressed with a number of prototypes tested within commercial gins. The project continues to refine these sensors in collaboration with Loptex Italia. Commercial development of inline detection and removal systems will be assessed by Loptex Italia.

CMSE1402 - Automated gin seed fingers (Funded July 2013 - June 2015)

This project evolved from earlier research that assessed the impact of gin seed fingers on cotton fibre quality. Evidence emerged that the position of the seed fingers can have positive influences on fibre quality and yield during ginning. The concept was that the development of an automated gin seed finger system may be instrumental in the production of more and higher quality bales from the same gin input, resulting in a better return for growers.

The aim for the current project is to develop an automated gin seed finger system that is able to self-adjust according to the density of the seed roll to provide improvement in the efficiency of Australian saw gins. It is predicted that improvements would be achieved through higher lint turn-out and reduced residual lint on the seed, as well as possible changes in total energy requirements for ginning through improved management of the total load on the seed roll.

The project has progressed to develop and test a prototype automated gin seed finger system within commercial gins. Initial data indicated that small but significant improvements in gin turnout may be achieved to provide direct benefits for growers. A patent has been developed to protect the technology.

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48 CRDC Annual Report 2013-2014

CRDC Program: Customers

Theme: 3.2 Differentiated Products

Strategy: 3.2.2 Demonstrating the value of different fibre classes and defining fibre quality parameters that secure a premium market

Measure of success: Customers value the properties of Australian cotton

CMSE1308 - Effects of cotton cellulose structure and fibre surface substrate interactions on dye uptake (Funded July 2012 - June 2016)

Dyeing of cotton is a major cost in garment production. It may be influenced by the quality of cotton, however limited information is known about the key factors of the cotton fibre that may affect dye uptake and dyeing efficacy. This PhD project focuses on the assessment of the physical and chemical properties of cotton fibre and their influence on dye uptake.

Following the completion of a literature review, dyeing trials have commenced with structural differences between two cotton sets predicted based on dyeing behaviour. Analysis of the structure and surface chemistry of cotton will be conducted to better understand the impact of these properties on dye uptake. Further work will also include the use of different dyes and pretreatments.

In the future it is hoped that any properties considered to be potential factors of differential dye uptake can be identified to enable future differentiation of cotton based on dyeability. It is anticipated that this will also include a comparative study of dyeing behaviour of Australian and internationally grown cotton samples.

CRDC Program: Customers

Theme: 3.2 Differentiated Products

Strategy: 3.2.3 Developing customer-based partnerships for the development of higher value and novel products which differentiate Australian cotton

Measure of success: Partnerships established to demonstrate the potential for

differentiating Australian cotton

DU1102 - Development of low twist fine count yarns and fabrics from Australian Long Staple (ALS) upland cotton (Funded September 2011 - September 2014)

This project is a collaboration between CSIRO, Deakin University and Hong Kong Polytechnic University. The aim is to assess the use of Australian cotton in the production of low twist yarns, using innovative Nu-Torque technology. The development of Nu-Torque technology is new to spinning, which may not only reduce spinning costs, but also produce a higher quality fabric. New partnerships with mills and brand owners are also an aim for this project.

During 2013-14, spinning trials were completed with 100 per cent Pima Extra Long Staple (ELS), 80/20 ELS and Australian Long Staple (ALS) - LS cotton; 70/30 ELS and Australian LS cotton; and 100 per cent Australian LS cotton. Low-twist Nu-Torque yarns were produced with the optimised spinning parameters, using the cotton roving of 80 per cent ELS (Pima) and 20 per cent Australian cotton. The ply yarns have been knitted into garments and samples of the knitwear have been produced.

Twist level of Nu-Torque ply yarns were reduced by around 29 per cent. Under such conditions, Nu-Torque knitted fabrics still show very good bursting strength, air permeability and pilling resistance. Results showed that yarns produced with the new modified spinning system had reduced imperfections. At low twist levels, fine modified yarns and resultant fabrics also showed improved quality over conventional fabrics.

Trial results have been analysed, and an algorithm relating fibre to yarn properties has been developed. The research has shown that the 100 per cent roving Australian LS performed as well as ELS blends. This finding will assist the industry in the promotion of ALS cotton to mills that use the new spinning technology.

PROGRAM 3: CUSTOMERS

49 CRDC Annual Report 2013-2014

CRDC Program: Customers

Theme: 3.2 Differentiated Products

Strategy: 3.2.3 Developing customer-based partnerships for the development of higher value and novel products which differentiate Australian cotton

Measure of success: Partnerships established to demonstrate the potential for

differentiating Australian cotton

DU1301 - Design of thermal cotton/wool fabrics made from Australian fibre (Funded July 2012 - June 2015)

Cotton wool blends provide a number of advantages in terms of the thermal properties of finished garments. The majority of cotton/wool blends are knitted garments and the market opportunity is to develop

a new range of woven garments.

This project involves collaboration with leading researchers in Australia and a premium shirt producer in China (Esquel Ltd). The project aim is to develop a new range of thermal woven fabrics made from cotton and wool.

During 2013-14, the initial objectives were to design a range of fabrics with increased thermal resistance for cooler seasons. This began with assessing different cotton wool blends, including cotton:wool ratios of 90:10, 80:20, 70:30, 60:40 and 100 per cent cotton. The research also assessed a range of fabric treatments and fabric designs.

In achieving fabrics with different thermal ratings, the project progressed to design cooler fabrics to provide a range that could be used across different seasons. The target garments are dress and casual shirts.

Through collaboration with Esquel Ltd, the project has a very commercial focus and drive to develop fabrics that major international brands will find attractive. The overall goal is to have a range of thermal fabrics made from Australian natural fibres.

CRDC Program: Customers

Theme: 3.3 Competitive Futures

Strategy: 3.3.1 Investigating existing and future markets for Australian cotton and communicate these findings to the Australian cotton industry

Measure of success: Provide the Australian cotton industry with knowledge of fabric innovations

and future market opportunities

DU1302 - New developments and opportunities for cotton yarns and fabrics (Funded February 2013 - June 2014)

Cotton is losing its market share in all sectors of apparel. This project was commissioned to assess future trends for fibre use and identify key opportunities for cotton. The study focused on technology requirements, as well as trends, in garment production.

The project identified a number of short and medium term opportunities for advancing the use of cotton, including:

„ Reducing the environmental impacts associated

with the processing of denim. Denim, an iconic cotton fabric, is increasingly being produced utilising other fibres that claimed a lower environmental impact.

„ Improving the functionality of cotton fabrics

to enable them to better compete with fabrics made from man-made fibres. For example, heat and moisture management, anti-bacterial properties, and stain repellency.

„ Investigating novel blends of cotton with other

natural fibres, such as cashmere or ultra-fine wool, targeting fabrics for the luxury market.

PROGRAM 3: CUSTOMERS

50 CRDC Annual Report 2013-2014

CRDC Program: Customers

Theme: 3.3 Competitive Futures

Strategy: 3.3.2 Facilitating the development of new technologies and systems to improve the competitiveness of Australian cotton

Measure of success: Development of alternative and high value cotton products

DU1401 - Improving length, strength and fineness of cotton fibre (Funded January 2013 - January 2016)

Developing innovation in how cotton can be improved for selected markets includes new post farm processing techniques and technologies. Fibre length, strength and fineness are key aspects of premium fibres. Improvements in these properties, without affecting other quality traits of cotton, would allow cotton to secure higher value markets.

This PhD project aims to draw a cotton fibre and stabilise its new structure to make it longer, finer and stronger. The specific objectives of this project include:

„ Softening of the cotton fibre by using suitable

chemical reagents without degrading or dissolving the fibre.

„ Retaining the stretched fibre permanently even

after removing the chemical load.

„ Improving the mechanical properties of the cotton

fibre.

„ Understanding the structural changes during the

fibre drawing process.

The initial results from the project have been encouraging, successfully stretching individual cotton fibres following a chemical treatment. The tensile properties of the modified fibres are now being tested.

CRDC Program: Customers

Theme: 3.3 Competitive Futures

Strategy: 3.3.2 Facilitating the development of new technologies and systems to improve the competitiveness of Australian cotton

Measure of success: Development of alternative and high value cotton products

DU1402 - Ever-dry, self-cooling cotton fabrics (January 2014 - December 2015)

The main goal of this project is to develop new functional fabrics that have ever-dry, self-cooling properties. This includes developing an effective technique to make single layer cotton fabrics with an apparent directional water-transport effect - a functionality that currently requires double-layered (and thus bulkier) fabrics.

Key outcomes to date for this project include:

„ Development of cotton fabric treatments that

show directional water-transport, that are durable enough to withstand 50 cycles of laundering, and that have only a small influence on air permeability.

„ Coating systems have been developed successfully

for producing superhydrophobic patterns on cotton fabrics.

PROGRAM 3: CUSTOMERS

51 CRDC Annual Report 2013-2014

CRDC Program: Customers

Theme: 3.3 Competitive Futures

Strategy: 3.3.2 Facilitating the development of new technologies and systems to improve the competitiveness of Australian cotton

Measure of success: Development of alternative and high value cotton products

QUT1301 - The development of a web-based carbon footprint calculator for the Australian cotton industry (Funded January 2013 - December 2013)

This project was a follow-on from a PhD that undertook a comparative analysis of different ‘carbon footprint’ calculators and developed an alternative method for calculating the carbon footprint of Australian cotton, that took into account local conditions.

This project developed a Crop Carbon Management Tool (CCMT) - a web-based version of the calculator that enables farmers to better understand the sources and extent of greenhouse gas emissions from their farming operations. The CCMT is the most scientifically advanced carbon footprint calculator available, especially for estimating nitrous oxide emissions associated with fertiliser use. The CCMT is fully aligned with the requirements of Life Cycle Assessment (LCA) methodology and the International Greenhouse Gas Protocol (IGGP) for product life cycle accounting.

PROGRAM 3: CUSTOMERS

52 CRDC Annual Report 2013-2014

Program 4: People Program People

Outcome Capable and connected people driving the cotton industry.

Theme 4.1 Workforce Capacity 4.2 Networks 4.3 Communication

Strategy Outcomes A skilled, educated and progressive industry workforce.

An industry connected by dynamic networks. Stakeholder information needs are met.

Will be achieved by

4.1.1 Investigating effective strategies for attracting, developing and retaining people in the cotton industry.

4.1.2 Supporting initiatives which lead to the continuous improvement of human resource management including on-farm Workplace Health and Safety.

4.1.3 Understanding opportunities for greater Aboriginal participation in cotton and partnering with organisations to support the development of a culturally aware cotton workforce.

4.1.4 Supporting educational opportunities which increase the skills and knowledge of current workforces and will meet the needs of future workforces.

4.1.5 Creating opportunities for, and supporting the development of leadership skills.

4.2.1 Establishing and empowering creative forums and initiatives which build relationships.

4.2.2 Supporting and participating in collaborative cross sectoral RD&E initiatives.

4.2.3 Creating and facilitating opportunities for national and international RD&E exchange.

4.2.4 Facilitating engagement with stakeholders for prioritising and capturing advice on RD&E issues.

4.2.5 Honing research expertise and the application of science from core research disciplines.

4.3.1 Providing information for demand driven communication strategies and performance reporting.

4.3.2 Applying innovative communication methods.

PROGRAM 4: PEOPLE RD&E Portfolio

53 CRDC Annual Report 2013-2014

Program 4: People Program People

Outcome Capable and connected people driving the cotton industry.

Theme 4.1 Workforce Capacity 4.2 Networks 4.3 Communication

Strategy Outcomes A skilled, educated and progressive industry workforce.

An industry connected by dynamic networks. Stakeholder information needs are met.

Measures of success Opportunities for learning are demanded by industry:

„ A 10 fold increase in school

visits to promote careers in cotton by 2018.

„ A student gap year internship

program.

„ 50 horizon students by 2018.

„ 30 completed summer

scholarships by 2018.

„ 300 students having

completed the UNE Cotton Course by 2018.

Opportunities for workforce development are demanded by industry.

„ 60 Ginners trained.

„ 25 Industry representatives

having completed the Field to Fabric Course.

„ 50 cotton farmers awarded

a new Diploma in Human Resources by 2018.

„ A 10 per cent reduction in

cotton farm related injuries by 2018.

„ On-farm skill development

„ Participation in leadership

programs

People and industry are connected through effective networks:

„ 10 conferences and forums

are coordinated which promote industry, cross sectoral and community knowledge sharing.

„ CRDC is an active member

of key industry and government initiatives.

„ Agriculture Senior Officials

Committee (AgSOC) cotton and cross sectoral RD&E strategies.

„ 50 travel scholarships are

supported.

„ The cotton industry has

effective collaborative structures for prioritising RD&E

People have ready access to industry information:

„ Communication systems

for all CRDC stakeholders are meeting their communication needs.

„ The information and

services derived from CRDC investments are in demand and the technologies are adopted.

PROGRAM 4: PEOPLE

54 CRDC Annual Report 2013-2014

CRDC Program: People

Theme: 4.1 Workforce Capacity

Strategy: 4.1.1 Investigating effective strategies for attracting, developing and retaining people in the cotton industry

Measure of success: On farm skill development and a 10 fold increase in school visits to

promote careers in cotton by 2018

Investigating effective strategies for attracting, developing and retaining people in the cotton industry.

Research in workforce development has identified that improving the contribution of human capacity to a sectors’ competitiveness requires a multi-dimensional response. That is, people need to be simultaneously deployed more effectively in the production system, developed to meet new challenges and provided with interesting work and careers. In addition, this is understood to only be possible with due consideration to the particularities of local communities and regional economies in designing effective support systems.

The issues of attracting, retaining and developing people in a sector is far from solved by generating knowledge about skill needs, clever marketing strategies to attract people or developing and delivering training products. What is required is effective workforce development across the supply chain, requiring both an understanding of the workforce development system and a capacity to improve it.

Currently there are innovative practices in human capacity in the cotton sector such as progressive employers, a strong skills and training focus, and a commitment to myBMP. Also as new local models for workforce development such as ‘The Make it Work’ program, are building interest as well as greater involvement in grower association and local-level initiatives.

However, what is missing is:

„ A comprehensive understanding of the workforce

development system including data and information about the system at a regional scale.

„ An analysis of what is working well in the system

and what could be improved or built on.

„ A framework to link, engage and mobilise

stakeholders, including farmers, in planning and acting at a business, sector and regional scale.

Without these elements, there is often limited impact from project investments. For example, training is delivered but people do not have positions to go to, or the impacts are very short-term and people are attracted into the sector but do not stay in the long-term.

UM1201 - Innovative Work: Cotton workforce development for sustained competitive advantage (Funded July 2011 - December 2014)

The aim of this project is to improve the effectiveness of cotton workforce development so that the sector has the people it needs to drive industry competitiveness.

The key objectives of this project are to assist the cotton sector to have access to:

„ The data and information it needs (updateable

through time and available regionally) about the demand and supply for people and skills and how people are attracted, developed and retained in the sector.

„ An integrated workforce development strategy

that better links projects, organisations and people in the workforce system.

„ Appropriate processes, tools and resources to

influence workforce development by an ability to prioritise, plan and act both regionally and nationally.

„ The leadership and ownership of its workforce

development to improve outcomes for producers.

„ The ability to engage with key stakeholders at a

regional level who are interested in and can partner effectively to improve the workforce development system and its outcomes.

„ A network of employers and stakeholders in

two to three regions to plan and pilot new action in skills and workforce development.

PROGRAM 4: PEOPLE

55 CRDC Annual Report 2013-2014

During 2013-14, a draft strategy for action on workforce development was developed through this project. The draft strategy focuses on four key areas:

1. Identifying a sustainable source of labour that has the capacity to acquire the necessary skills and which can accept the physical and social demands of working in the cotton industry.

2. Building a critical mass of ‘good practice in employment relations’ and establishing a culture of innovation and excellence in this area to improve job design, manage work across seasons and retention. As well as sharing good practice examples widely, within and outside the industry.

3. Over the longer term, developing skills and career pathways for workers within the industry that take account of technical improvements in cotton production and the ongoing trend toward capital deepening and automation.

4. Developing a national and regional capacity to coordinate and take action and link to government.

Importantly, the notion of strategic collaborative action needs to be considered in terms of strategies, and whether each strategy would best fit the short, medium or long-term.

„ Short term - may include identifying a sustainable

source of labour.

„ Medium term - may encompass broader

collaborations in recruitment and retention (such as with other primary industries and regional industries such as mining).

„ Longer term - which could involve adding

workforce planning to strategic management at the enterprise level and considering what would help the industry best ride out the external threats (such as drought).

CRDC Program: People

Theme: 4.1 Workforce Capacity

Strategy: 4.1.2 Supporting initiatives which lead to the continuous improvement of human resource management including on farm Workplace Health and Safety

Measure of success: A 10 per cent reduction in cotton farm related injuries by 2018

Supporting initiatives which lead to the continuous improvement of human resource management including on farm Workplace Health and Safety.

Health and safety continues to be a major concern for cotton growers and employees within the cotton industry. While there is compelling evidence that the cotton sector is a leading performer in terms of health and safety, there is a requirement to continue to improve to meet the aspirational levels articulated within myBMP.

US1401 - Cotton industry injury and safety profile (Funded November 2013 - October 2014)

Ensuring that the data upon which decisions are made is both current and accurate is an important factor in making genuinely evidence based decisions. The cotton industry recognised that there was a gap in the provision of data.

This project aims to ensure that the most current and complete data is made available so priorities and actions to improve cotton farm health and safety are based on comprehensive evidence.

In turn, this data can be used with confidence by growers to update/modify myBMP information, and enhance their health and safety systems/practices.

It is also important that data covers a range of severity issues when health and safety issues are concerned. While correctly the major concern is with the prevention of Class 1 injuries that result in death and/ or permanent disability, growers also have a legislated responsibility to control as ‘far as is reasonably practicable’ all potentially hazardous actions.

PROGRAM 4: PEOPLE

56 CRDC Annual Report 2013-2014

Data from the National Coroners Information System (2001-13) has been accessed and analysed to classify incidents that were determined as definitely occurring within cotton production or possibly occurring in cotton production. Where it was clear the fatality involved another sector (e.g. cattle or grains), these cases were deleted from the analysis.

Cotton Related - Seven cases were identified involving the following mechanisms: aeroplane, cotton picker, dam drowning, farm ute, module builder and water pump. Further data on the costs associated with the cotton related fatal incidents is being completed and compiled.

Potentially Cotton Related - A further 28 possible cases, that may have involved properties where cotton was also grown, were identified. The mechanisms involved included dams, earth moving equipment, firearms, forklifts, fuel store, motorcycles, quads, tractors, utes and being hit by objects (trees, equipment, structures).

During 2013-14, a series of cotton Farm Safety workshops attracted over 80 growers to venues in Boggabri, Bourke, Brookstead, Carroll, Dalby, Gunnedah, Moree, Mungindi, Narromine, St George and Theodore.

CRDC Program: People

Theme: 4.1 Workforce Capacity

Strategy: 4.1.4 Supporting educational opportunities which increase the skills and knowledge of current workforces and will meet the needs of future workforces

Measure of success: „ 50 Horizon students by 2018, „ 30 completed summer scholarships

by 2018

„ 300 students having completed the

UNE Cotton Course by 2018

Supporting educational opportunities to increase the skills and knowledge of current workforces to meet the needs of future workforces.

The cotton industry recognises the need for passionate, skilled and innovative people to shape its future in a rapidly changing and growing world. To help ensure that the industry is able to attract talented young people, CRDC is investing in a number of initiatives focused at the school, undergraduate and post graduate levels.

UT1301 - Cotton Industry Young Professionals Program (Funded January 2013 - December 2015)

The Primary Industries Centre for Science Education (PICSE) has developed a cotton focused activity centre. Nineteen grade 10, 11 and 12 classes were introduced to cotton through this program. An additional 250 students (ranging from kindergarten through to grade 10) were involved in developing 90 projects for the Science and Engineering Investigation Awards, aimed toward engaging students in science based disciplines.

CA1403 - Primary Industries Education Foundation (Funded July 2012 - June 2014)

CRDC and Cotton Australia partner as members of the Primary Industries Education Foundation (PIEF). PIEF is the preferred provider of credible, relevant and factual information on all matters relating to agriculture for Australian teachers, students and the community.

CSE1305 - Developing education capacity in the Australian cotton industry (Funded July 2012 - June 2015)

CRDC has invested in funding a part time Education Officer, to be based at the Australian Cotton Research Institute, to implement a range of initiatives and activities in schools to boost knowledge of the industry and career options.

PROGRAM 4: PEOPLE

57 CRDC Annual Report 2013-2014

RIRDC1302 to RIRDC1306 and RIRDC 1401 to RIRDC 1405 - Horizon Scholarship (Funded April 2013 - December 2016)

The Horizon Scholarship has been developed to support the next generation of agricultural leaders, who will take up the challenge of farming for the future. The scholarship is for young people who are passionate about agriculture, with a keen interest in the future of the industries, and who are ready to expand their networks and learn new skills.

The Horizon Scholarship is an initiative of the Rural Industries Research and Development Corporation (RIRDC) that, in partnership with other RDCs and industry sponsors, supports undergraduates studying agriculture at university by providing a bursary, professional development workshop and work experience.

In 2013-14, CRDC supported five new Horizon Scholarships for undergraduate students; Jessica Kirkpatrick, Charlie French, Paul Sanderson, Alana Johnson and Emily Miller. Overall the CRDC has supported 12 Horizon scholars throughout the 2013-14 year.

CRDC Summer and Honours scholarships (Funded November 2013- November 2014)

Summer and Honours Scholarships are available to university students completing the senior years of an undergraduate degree or enrolled in an honours

program. The scholarships provide them with the opportunity to work on real research, extension or industry projects in a working environment as part of their professional development.

In 2013-14, CRDC granted five summer scholarships for undergraduate students Andrew Dickson (QUT1401), Brendon Delroy (UWS1402), Richard Quigley (US1402), Brook McAlister (UNE1405) and Charlotte Iverach (UNSW1402) to work with existing researchers or research organisations.

CRDC1415 - PhD Program 2014 postgraduate tour (Funded January 2014 - June 2017)

In 2013-14 CRDC funded a record 14 new PhD scholarships and held the first PhD tour of the cotton industry in five years. A total of 18 PhD students participated in the tour which enabled students to connect with cotton industry researchers, cotton growers and commercial organisations involved in the ginning and marketing of cotton.

CRDC Program: People

Theme: 4.1 Workforce Capacity

Strategy: 4.1.5 Creating opportunities for and supporting the development of leadership skills

Measure of success: Participation in leadership programs

Creating opportunities for and supporting the development of leadership skills The cotton industry, like many agricultural industries in Australia is facing complex change that challenges the social structural and environmental dynamic of rural communities and the industry. Faced with significant variability in climate, competition for skilled labour from the resources sector, changes in land use and access to water resources, the industry requires a network of informed and experienced leaders that can work together to develop resilient and sustainable farming systems and communities.

The industry requires leaders who are able to develop and broker solutions, as well as advocate for the industry in the public arena and in board rooms. CRDC supports a number of leadership development opportunities for the industry including Future Cotton Leaders program, Nuffield Scholarship program, Australian Rural Leadership Program and the Peter Cullen Trust Leadership program.

CA1404 - Australian Futures Cotton Leaders - Program 4 (Funded February 2014 - December 2014)

The Australian Future Cotton Leaders Program is an innovative program supporting individual commitment to creating and leading change in the Australian cotton industry. The program is designed to assist and work with participants to develop, implement and evaluate leadership development with the ongoing support of their own leadership facilitator and industry partner mentor. CRDC in conjunction with Cotton Australia has supported the development of 15 participants.

PROGRAM 4: PEOPLE

58 CRDC Annual Report 2013-2014

CRDC1412 - Nuffield Scholarship (Funded July 2013 - September 2015)

The Nuffield Scholarship is the leading program for primary producers in Australia and connects to a global network of scholars. The Nuffield Farming Scholarship is generally a two year program for outstanding farmers, owners or managers, aged between 28 and 40, to pursue an area of agricultural study internationally and at home. Participants travel for up to four months overseas, meeting farmers and agriculture decision makers on other continents and learning about farming practices. CRDC supported Nigel Corish as the scholar in 2013-14.

RIR1401 - Cotton Industry leadership development strategy (Funded July 2013 - June 2016)

The Australian Rural Leadership Foundation (ARLF) is focused on producing a network of informed, capable and ethical leaders who can work collaboratively to advance the interests of their industries, communities and rural Australia. It includes challenge-based education, workshops and overseas field study.

CRDC funds participants from the cotton industry to attend the Australian Rural Leadership Program, Training Rural Australians in Leadership (TRAIL) course, and TRAIL Blazers course.

PCT1401 - Peter Cullen Trust - Science to Policy Leadership Program (Funded September 2013 - November 2013)

The program behind the Peter Cullen Trust focuses on enhancing the role of science in policy development, by building leadership and communication skills of water scientists and irrigation’s rising stars. The aim is to make a difference in water and catchment management in Australia. Cotton Australia and the CRDC sponsor one irrigator and/or industry person to participate in the Peter Cullen Science to Policy Leadership Program every year.

The program selection process aims to attract participants who can think strategically, understand the political process, have the capacity to influence policy, demonstrate evidence of change leadership through collaboration, and have future aspirations of leadership.

In November 2013, fifteen successful applicants actively involved in water systems management graduated from the program, including Tandou Ltd Water Manager, Brendan Barry. Upon completion, successful participants graduate as Fellows of the Peter Cullen Trust. The Australian cotton industry currently has four Fellows: Juanita Hamparsum, Susan Madden, Brendon Warnock and Brendan Barry.

PROGRAM 4: PEOPLE

59 CRDC Annual Report 2013-2014

Program 5: Performance Program Performance

Outcome Measured performance of the Australian cotton industry and its RD&E drives continuous improvement.

Theme 5.1 Best Practice 5.2 Monitoring and

Evaluation

5.3 Reviews

Strategy Outcomes World’s best practice underpins the performance of the cotton

industry.

Industry and RD&E performance is captured. Continuous improvement in industry and RD&E

performance.

Will be achieved by

5.1.1 Supporting a best practice framework as the primary integrated planning, risk management, benchmarking, knowledge development and delivery system.

5.1.2 Promoting best practices through the development and delivery Joint Venture.

5.2.1 Developing and implementing an internal M&E framework for evaluating CRDC’s investment portfolio balance and its RD&E performance.

5.2.2 Conducting annual industry surveys to capture practice change.

5.2.3 Establishing a framework through which industry performance can be nationally and internationally reported.

5.3.1 Undertaking scientific discipline reviews of the industry’s RD&E.

5.3.2 Commissioning and participating in independent reviews of CRDC’s RD&E and organisational performance.

5.3.3 Commissioning independent reviews of the social, environmental and economic performance of the industry.

5.3.4 Participating in cross-sectoral RD&E impact evaluations and reviews.

Measures of success Industry is able to demonstrate best practice:

„ The cotton industry’s

myBMP program is the primary resource for farmers accessing best practice knowledge and tools.

„ The cotton industry’s

myBMP program is nationally recognised and integrated with other agricultural sector best management practice programs.

„ An 80 per cent coverage

of Best Management Practice systems across the Australian cotton industry.

Industry and CRDC are able to capture and demonstrate performance:

„ A rigorous monitoring and

evaluation platform which measures and reports on the performance of CRDC’s research and development investments.

„ An industry performance

monitoring and evaluation framework that is consistent with national and international standards.

„ Providing the industry

with cotton sustainability indicators and supporting its capacity to report against these indicators.

Industry and CRDC are able to continually review and improve performance:

„ Independent reviews of the

social, environmental and economic performance of the industry’s performance.

„ Independent reviews

of CRDC’s research and development performance.

PROGRAM 5: PERFORMANCE RD&E Portfolio

60 CRDC Annual Report 2013-2014

CRDC Program: Performance

Theme: 5.1 Best Practice

Strategy: 5.1.1 Supporting a best practice framework as the primary integrated planning risk management, benchmarking, knowledge development and delivery system

Measure of success: The cotton Industry’s myBMP program is nationally recognised and integrated

with other agricultural sector best management programs

CSP1201 - Linking research, extension and myBMP facilitation (Funded July 2011 - June 2014)

The cotton industry has a strong focus on its myBMP program and seeks to integrate research outcomes into industry best practice. This project, which is strongly linked to the industry’s extension team (CottonInfo), provides a mechanism to capture develop, package and deliver research outcomes and foster their uptake by industry. The project integrates new research outcomes into myBMP as well as supporting delivery through a range of online decision support aids and publications.

The CottASSIST web tool offers a unique way to capture and integrate research outcomes to assist growers and consultants with complex tactical and strategic decisions. CottASSIST contains a number of specific tools to guide grower decision making, including NutriLOGIC, a nutrition tool to optimise input efficiency while minimising green house gas emissions, a crop development tool enabling growers to optimise crop management and yield in a variable climate, as well as a cotton day degree calculator.

The aims of this project are to develop research outcomes and apply industry knowledge and experience to:

„ Ensure the CottonInfo team is linked and updated

with new and existing research outcomes.

„ Explore opportunities for the development of new

customised user-friendly web tools (including smartphones/tablets) to support myBMP and improve research uptake.

„ Integrate CottASSIST, the CottonInfo website,

and myBMP systems together as an online system.

„ Enhance existing CottASSIST web tools to ensure

ongoing availability of these and other tools to industry, and to maintain industry’s access to that capability and to external weather and climate information.

„ Collate data to review the crop development

tool so that it remains relevant to high yielding cotton crops.

PROGRAM 5: PERFORMANCE

61 CRDC Annual Report 2013-2014

CRDC Program: Performance

Theme: 5.1 Best Practice

Strategy: 5.1.1 Supporting a best practice framework as the primary integrated planning risk management, benchmarking, knowledge development and delivery system

Measure of success: The cotton industry’s myBMP program is the primary resource for farmers

accessing best practice knowledge and tools

RRR1402 - myBMP Lead Certification (Funded July 2013 - June 2015)

The myBMP program is a voluntary farm and environmental management system which provides self-assessment mechanisms, practical tools and auditing processes to ensure that Australian cotton is produced according to best practice. myBMP is the industry’s assurance mechanism - a best management practice system for growers to improve on-farm production. It attends to the industry’s requirement for risk management and supports industry’s social licence.

Through myBMP, all Australian cotton growers have a resource bank to access the industry’s best practice standards, which are fully supported by scientific research and development, resources and technical support. By using myBMP’s tools, growers can improve on-farm production performance by; better managing business and production risk, maximising potential market advantages, and demonstrating responsible and sustainable natural resource management to the community.

myBMP is the result of industry wide consultation with growers, researchers and industry bodies, taking into consideration the requirements of the cotton industry, now and into the future. Information is categorised into 11 key modules for growers including: biosecurity, biotechnology, energy and input efficiency, fibre quality, human resources and WHS, integrated pest management, natural assets, pesticide management, petrochemical storage and handling, soil health, and water management. During 2013-14 an additional module focused on ginning and classing was developed and reviewed for release in late 2014.

The myBMP Lead Certification project (RRR1402) provides auditing expertise for growers who wish to become myBMP accredited growers. During 2013-14 a total of 53 farms were certified as myBMP compliant.

CRDC Program: Performance

Theme: 5.2 Monitoring and Evaluation

Strategy: 5.2.3 Establishing a framework through which industry performance can be nationally and internationally reported

Measure of success: Industry and CRDC are able to capture and demonstrate performance

RRR1201 - Grower practices survey (Funded May 2012 - October 2013)

CRDC’s survey of growers gathers valuable information about cotton farming practices. Trends over time can be monitored when compared with similar surveys conducted in 2011, 2007, 2006 and earlier. This survey aimed to consolidate all CRDC funded surveys for 2013 into a single survey tool, to reduce the number of surveys growers are asked to complete for industry research. The information gathered feeds directly into research projects and is also used to evaluate research outcomes, plan new projects, identify priority issues and tell the industry’s ‘story’.

Survey responses covered 92,687 ha of irrigated cotton (23 per cent of the total irrigated crop) and 9,853 ha of dryland cotton production (27 per cent of the total dryland crop in 2012-13). 20 per cent (165) of the farms registered with CRDC who grew cotton in 2012-13 returned surveys. The survey was mailed to all 1,000 cotton growers registered with the CRDC in July 2013. While 352 replied, many had not grown cotton in 2012-13, reducing the population to 837. A total of 38 (23 per cent) of the responses included at least some dryland cotton production. At a regional level the rate of response ranged from 12 to 30 per cent. A total of 62 per cent of respondents have been involved with the cotton industry for 20 years or more.

Some of the key findings from this report included:

2012-13 season

„ Irrigated cotton was grown on average on 16 per cent

of the land area (on farms where it was grown) while dryland cotton accounted for 2 per cent.

„ Dryland cotton exceeded target yields in most

regions.

„ The highest reported yield from an individual field

was 16.2 bales/ha in the Upper Namoi.

„ 43 per cent of irrigator respondents and 24 per cent

of dryland respondents received quality discounts, ranging from 11c/bale to $75/bale with micronaire and colour being the most costly.

PROGRAM 5: PERFORMANCE

62 CRDC Annual Report 2013-2014

Nutrition

„ Average rates of nutrient application per hectare

of irrigated cotton were 243 kgN, 31kgP, 24 kgK, 3 kgZn and 14 kgS.

„ Average rates of nutrient application per hectare

of dryland cotton were 84 KgN, 13kgP, 10kgK, 1.8 kgZn and 5.5 kgS.

„ On average 67 per cent of nitrogen was applied

pre-season for irrigated cotton, which is similar to that reported for the 2010-11 season. There was a large variation between farms.

„ 13 per cent of farms have a petiole nitrogen test

conducted on every field every season on irrigated cotton.

Soils, crop rotations and other agronomy

„ Almost all respondents (99 per cent) thought that

soil health was generally increasing or steady.

„ 75 per cent of respondents produced on average

two or less cotton crops before breaking with an alternate crop or fallow. 49 per cent usually have at least one back-to-back cotton crop. 13 per cent grow five or more consecutive cotton crops.

Crop protection stewardship

„ 76 per cent of respondents thought the long term

value of complying with the BollgardII® resistance management plan (RMP) was worth the effort and cost; 11 per cent did not agree.

„ Herbicide resistant weeds were reported by

37 farms in irrigation and 31 farms in dryland.

Energy

„ Diesel accounted for 86 per cent of energy usage;

Electricity for 11 per cent.

„ 11 per cent of respondents had measured or

benchmarked their total energy usage in the past 5 years, 16 per cent had done this for individual operations and 24 per cent of irrigator respondents had a pump efficiency investigation completed.

Harvesting

„ Where round module pickers were used, 53 per

cent of respondents used contract harvesters, 40 per cent purchased or leased their own and 7 per cent used a combination of both.

„ The motivation for the decision to use a JD7760

was its ability to pick crops more quickly, a decrease in labour and decrease in workforce health and safety risks.

Human Resources

„ 73 per cent of respondents indicated that they have

a capable workforce.

„ The average vacancy rate at January 2013 was

0.4 positions per farm.

„ 65 per cent of casual staff employed at January 2013

were 417 visa holders.

Safety

„ 62 per cent of respondents complete inductions

for some or all new workers (51 per cent for all).

„ 24 per cent complete inductions before each season

with contractors.

„ 28 per cent have a formal system for workers and

contractors to report hazards.

„ 26 per cent have a documented health and safety plan.

Information and research

„ 73 per cent of respondents considered that cotton

industry research and development was effectively communicated to them.

„ The Australian Cottongrower, Cotton Pest

Management Guide, CRDC’s Spotlight and technical fact sheets rated highly as the preferred mechanisms to receive cotton RD&E information.

„ 91 per cent considered that R&D drives continuous

improvement of the Australian cotton industry.

Cotton productivity and profitability

„ 86 per cent of respondents believed that cotton

was profitable and consistently their crop of choice.

„ 32 per cent indicated they would not be able to farm

profitably into the future if recent trends in inputs costs and cotton prices continue.

„ Water and weather were the most frequently

identified limitations to productivity and profitability, followed by farm characteristics, labour, costs, finance and varieties.

„ The most mentioned drivers of productivity and

profitability were yield and price followed by water, costs and nutrition.

Aspirations

„ Close to half of respondents intend to grow their farm

assets and/or cotton enterprise.

„ One third intend to transition the farm ownership

to family members.

„ 11 per cent will move out of farming to retire

or for other reasons.

PROGRAM 5: PERFORMANCE

63 CRDC Annual Report 2013-2014

CRDC Program: Performance

Theme: 5.2 Monitoring and Evaluation

Strategy: 5.2.3 Establishing a framework through which industry performance can be nationally and internationally reported

Measure of success: Industry and CRDC are able to capture and demonstrate performance

RRR1401 - Developing a framework and benchmark for monitoring achievement of the CRDC’s Strategic R&D Plan (Funded October 2013 - June 2014)

CRDC commissioned the development of a Monitoring and Evaluation (M&E) framework for evaluating CRDC’s investment portfolio balance and its RD&E performance. The aim of the M&E framework is to enable CRDC to rigorously capture, measure and report on performance, and to be able to assess and report upon the impact and performance of investments undertaken in the CRDC Strategic R&D Plan 2013-18.

Evaluation is based on a logic framework approach linking core metrics from the plan and key performance indicators and practices described in the CottonInfo plan to ensure alignment through the RD&E supply chain.

The key objectives of the project are to:

„ Develop a framework.

„ Review strategic requirements for monitoring.

„ Distil a set of core metrics.

„ Map existing data sources and identify ongoing

needs and gaps.

„ Prepare a benchmark snapshot of the cotton

industry in 2013.

„ Recommend a framework and process for

benchmarking and gathering future data.

CRDC Program: Performance

Theme: 5.3 Reviews

Strategy: 5.3.1 Undertaking scientific discipline reviews of the industry’s RD&E

Measure of success: Industry and CRDC are able to continually review and improve

performance

CRDA1401 - Irricomm review - Tools for irrigating the field (Funded July 2013 - June 2014).

To increase productivity, cotton farmers need to optimise their use of resources, particularly water. Current irrigation projects have led to advances in the optimisation and automation of irrigation applications. Remote sensing and satellite imagery can now be used as indicators of crop stress and spatial variability, and the industry is close to fully understanding how weather forecasts and canopy temperature sensors can be used to refine scheduling decisions.

The development of a control system for variable rate irrigation application, and software that sequences irrigations and controls the communications between the system components, brings the industry tauntingly close to smart automated furrow irrigation.

The Australian cotton industry has an impressive record when it comes to optimising the use of water. Despite this, the tools that irrigators are using today to manage their irrigations have not changed dramatically over the last 20 years. The adoption of a system that automatically integrates soil, weather and plant data could achieve efficiency gains of over 20 per cent.

In March 2014, CRDC developed a workshop with the aim of bringing together irrigation researchers to identify current and future tools in the cotton irrigation toolbox, to optimise yield and water use efficiency.

Nearly thirty researchers gathered in Narrabri, NSW, for the two day workshop to learn about the RD&E projects underway and to develop a blueprint for an integrated, precise, automated irrigation framework that would fully service the future needs of cotton irrigation systems. All of the workshop participants agreed to a collaborative approach between organisations with the aspiration of developing a fully integrated system for irrigation scheduling.

PROGRAM 5: PERFORMANCE

64

Section 5 CRDC People and Governance

CRDC Board

CRDC Employees

Governance and Accountability

CRDC Program Manager Tracey Leven and National Centre for Engineering in Agriculture (NCEA) post-doctoral fellow Dr Alison McCarthy inspect one of the real-time adaptive control irrigation systems. Photo courtesy NCEA.

65 CRDC Annual Report 2013-2014

CRDC BOARD

CRDC People and Governance

Dr Mary Corbett BSc PhD (FAICD, AFAIM) Chair CRDC Board of Directors (from 13 August 2013)

CRDC Chair, Dr Mary Corbett, has more than 17 years’ experience as a Company Director in the scientific research and development area, and in education and training. She has significant board and corporate governance experience gained across a range of organisations. Dr Corbett is currently Chair of the West Moreton Hospital and Health Service and a Board member on the Wound Management Innovation CRC.

Dr Corbett was previously Deputy Chair of the Southbank Institute of Technology and Deputy Chair of the Australian Agriculture College Corporation. Dr Corbett also served on the Boards of Food Science Australia from 2004-09 and the Sugar Research and Development Corporation from 2002-08.

Dr Corbett has extensive experience as Chair and member of a number of board committees, including Audit and Risk Management, Intellectual Property and Remuneration and Nominations committees. She is Managing Director of Australian Business Class, an executive consulting organisation which specialises in providing senior executive training and facilitation.

Dr Corbett’s expertise lies in the areas of strategy, governance and leadership. She has a PhD in Clinical Physiology from Dundee University, Scotland.

Appointed Chair: 12/08/2013 until 13/08/2016 Appointed Chair of the Remuneration Committee (from 13 August 2013).

Mike Logan (GAICD) Chair CRDC Board of Directors (until 13 August 2013)

Mr Logan is a cotton farmer from Narrabri, NSW, and brought a wealth of practical industry experience and a strong vision to the position of CRDC Chair. He has long been a strong advocate of best practice use of natural resources in the Australian cotton industry. His cotton farm was the first in the world to gain International Organisation for Standardisation (ISO) certification for compliance with world’s best practice principles for environmental management.

Mr Logan also spent six years on the Board of Land and Water Australia, where he played a leadership role in a number of key programs dealing with irrigation and climate variability. He was a Director of the Australian Rural Leadership Foundation, the CRC for Irrigation Futures and Cotton Australia (for four years). He is currently CEO of Dairy Connect NSW.

Appointed: 13/08/2007 until 13/08/2010 Reappointed: 13/08/2010 to 13/08/2013 Chair of the Remuneration Committee and a member of the Audit Committee (until 13 August 2013).

66 CRDC Annual Report 2013-2014

CRDC BOARD

Mr Bruce Finney BSc Ag (MAICD) CRDC Executive Director

Mr Finney has extensive experience in the agricultural sector. Prior to his appointment to CRDC he worked in corporate agriculture in various corporate, management and agronomy roles in Australia and in an advisory role in Argentina. He is a member of the Advisory Board QLD DAFF programme on Agricultural Robotics at QUT.

He is a past chair of the Australian Cotton Growers Research Association and a past director of the Cotton Catchment

Communities CRC and Irrigation Association of Australia.

Mr Finney is a graduate of the Australian Rural Leadership Program and of the Company Directors Course of the Australian Institute of Company Directors.

Appointed: 01/08/2004 (by virtue of his appointment as Executive Director of CRDC) Attends the Audit, Intellectual Property and Remuneration Committees as an observer.

Mr Hamish Millar - CRDC Deputy Chair (FAICD)

CRDC Deputy Chair, Mr Millar is the Managing Director of Cowal Agriculture, a large scale agribusiness based in Emerald, Central Queensland, producing predominately irrigated cotton and grain. He is a graduate of the Memphis Exchange International Cotton School, and has experience in classing and marketing. Mr Millar has extensive knowledge of production and agribusiness within the cotton industry, including roles requiring strategic planning, business management and trading commodities.

Mr Millar has had extensive experience in several cotton industry organisations, including the Chair of the Australian Cotton Growers Association, Director of Cotton Australia, Director of the Cotton Industry Council and Chair of Cotton Industry Development in Northern Australia.

Mr Millar is committed to the benefits of well-targeted research and development to underpin the overall performance of the Australian cotton industry.

Appointed: 01/10/2011 until 01/10/2014 Appointed member of Intellectual Property Committee and Remuneration Committee.

Dr Michael Robinson BSc (Hons), PhD (FAIMS, GAICD)

Dr Robinson is the CEO of Plant Biosecurity Cooperative Research Centre. Previously he was the CEO of FrOG Tech Pty Ltd (a private research company specialising in geological reconstructions and interpretations across a range of sectors, including oil and groundwater) and CEO of GeoSphere Ltd (a specialist geological consulting firm in New Zealand).

Dr Robinson has extensive experience in primary industries and natural resources research, development and extension.

He was the Executive Director of Land & Water Australia, Centre Director of the Primary Industries Climate Challenges Centre (a joint venture between DPI Victoria and University of Melbourne), Chair of the National Climate Change Research Strategy for Primary Industries, CEO of the CRC for Greenhouse Accounting, and a member of the National Primary Industries Standing Committee RD&E Extension Subcommittee.

Appointed: 01/10/2011 until 01/10/2014 Appointed member of the Audit Committee.

67 CRDC Annual Report 2013-2014

CRDC BOARD

Mr Cleave Rogan (MAICD)

Mr Rogan has been farming and marketing cotton and grains for 30 years. He has acted in an advisory role to CRDC, working on research projects related to biosecurity, insects, weeds, diseases, cotton fibre processing and quality enhancement.

Mr Rogan was a Director of Cotton Australia and has been an industry representative on various other cotton industry associations and research advisory committees.

Appointed: 01/10/2011 until 01/10/2014 Chair of the Intellectual Property Committee.

Dr Lorraine Stephenson BSc (Hons), MBA, PhD, (GAICD)

Dr Stephenson is the Principal Consultant for Lightning Consulting Services, an independent energy and climate change strategic advisory business. She has over 30 years’ experience in the energy sector and has a strategic focus on creating opportunities for Australian businesses and governments to respond to climate change challenges.

Dr Stephenson is the former Clean Energy Adviser to the Queensland Government and a former member of the Expert Panel on Emissions Intensive Trade Exposed Industries advising the Australian Government.

She is currently a member of the Expert Panel on Emissions Intensive Trade Exposed Industries, a member of the NSW Climate Change Council and a non-executive director of Good Environmental Choice Australia Ltd.

Appointed: 01/10/2011 until 01/10/2014 Appointed member of Intellectual Property Committee.

Richard Haire (FAICD, FAIM)

Mr Haire is the Australian and New Zealand Managing Director and regional head of Olam International, a global leader in the supply chain management of agricultural products and food ingredients. He was formerly the Chief Executive of Queensland Cotton Corporation Pty Ltd and has been Director of several organisations, including Cotton Australia, SunWater Limited, the Cooperative Research Centre for Sustainable Cotton Production and the CSIRO Advisory Board for Field Crops.

Mr Haire is currently a Director of the Bank of Queensland and the Australian Institute of Company Directors (Queensland Division).

Appointed: 01/10/2011 until 01/10/2014 Chair of the Audit Committee and appointed member of the Remuneration Committee.

68 CRDC Annual Report 2013-2014

Composition CRDC’s Board comprises a Chair (appointed by the Minister for Agriculture), the Executive Director (selected by the Board) and five to seven non-executive Directors nominated by an independent Selection Committee. Appointment of non-executive Directors is subject to Ministerial approval and Directors (other than the Executive Director) are appointed for three-year terms.

Board 1. Mary Corbett (Chair appointed 13 August 2013) (Mike Logan was Chair until 12 August 2013)

2. Hamish Millar (Deputy Chair)

3. Richard Haire

4. Michael Robinson

5. Cleave Rogan

6. Lorraine Stephenson

7. Bruce Finney (Executive Director)

Chair On 13 August 2013, Dr Mary Corbett was appointed Chair of the CRDC Board for a three year term, ending on 13 August 2016. Dr Corbett has been a non-executive Director of CRDC since October 2008 and the Board’s Vice-Chair since 2011. Dr Corbett has over 17 years’ experience as a company Director, particularly in the fields of education and training, and rural, food and medical research.

Responsibilities of Executive Director It is the Executive Director’s responsibility to manage CRDC and the senior management team. Close links between the Board of Directors and management have assisted the development of a sense of mutual confidence, trust, teamwork and common purpose. Senior management participates in Board meetings, with other staff invited to contribute wherever appropriate.

Responsibilities of non-executive Directors The roles and responsibilities of Directors are set out in the Board Charter, which includes a governance statement, conduct and ethical standards provisions. Internal reviews of Board performance are conducted annually. The Board also obtains an external review of its performance periodically.

Call for non-executive Directors Applications for five to seven CRDC non-executive Directors opened in May 2014 and closed 13 June 2014. Joe Robinson was appointed the Presiding member of a selection committee, which assessed all applications and made nominations for appointment to the Minister. The Minister is expected to announce appointments by 1 October 2014.

Expertise The CRDC Board is a skilled based board, with Directors collectively bringing expertise in cotton production, processing and marketing, conservation/ management of natural resources, science and technology and technology transfer, environmental and ecological matters, economics, finance and business management, administration of research and development, sociology and public administration. The PIRD Act requires the CRDC Selection Committee to specify how its Board nominations will ensure that CRDC collectively possesses experience in board affairs, adding to the existing requirement for an appropriate balance of expertise.

Directors may obtain independent legal and professional advice at CRDC’s expense to enable them to discharge their duties effectively, subject to prior approval from the Chair, in consultation with the Board and Executive Director. This advice may relate to legislative and other obligations, technical research matters and general skill development to ensure there is a sufficient mix of financial, operational and compliance skills amongst Board members.

CRDC BOARD

69 CRDC Annual Report 2013-2014

Induction Following appointment to the Board, each Director is provided with an appropriate level of information about CRDC, its history and operations, and the rights, responsibilities and obligations of Directors. This information includes the Board Charter, Strategic R&D Plan and relevant legislation.

The induction process is tailored to the needs of new Directors and may include an initial visit to CRDC office in Narrabri to meet with the Chair and staff for a comprehensive overview of corporate activities and practices and a tour of key industry research facilities.

Training Where necessary and appropriate, CRDC sources training for Directors, either individually or as a group. The Board generally establishes the need for such training during the first meeting of Directors.

Functions „ Establishing strategic directions and targets.

„ Monitoring and evaluating the research and

development needs of the industry and ensuring CRDC’s research program is effective in meeting those needs.

„ Approving policies, plans, performance

information and budgets.

„ Monitoring policies, procedures and internal

controls to manage business and financial risk.

„ Ensuring compliance with statutory and legal

obligations and corporate governance standards.

Conflicts of interest In accordance with Section 131 of the PIRD Act, Directors are appointed based on their expertise and do not represent any particular organisation or interest group.

The Board follows section 21 of the CAC Act regarding Directors’ disclosures of interests. A Director who considers that he or she may have a direct or indirect pecuniary or non-pecuniary interest in a matter to be discussed by the Board must disclose the existence and nature of the interest before the discussion.

Depending on the nature and significance of the interest, Directors may be required to absent themselves from the Board’s deliberations. The Board has a standing notice of Director’s interests, which is an agenda item at each Board meeting and is updated as necessary.

The Board is very aware of its responsibilities regarding conflict of interest and duty of care and has adopted a very cautious approach. A Board Charter clearly outlines the roles and responsibilities of Directors in terms of potential conflicts of interest. This approach has been successful and no difficulties have been encountered.

Board Charter The CRDC Board Charter assists Directors in carrying out their duties and setting out roles and responsibilities of Directors and staff.

CRDC BOARD

70 CRDC Annual Report 2013-2014

Indemnities and insurance premiums for Directors and officers The Board has taken the necessary steps to ensure professional indemnity cover is in place for present and past officers of CRDC, including Directors of the CRDC, consistent with provisions of the CAC Act.

CRDC’s insurance cover is provided through Comcover; however, the insurance contract prohibits CRDC from disclosing the nature or limit of liabilities covered. In 2013-14, Directors and officers liability insurance premiums were paid and no indemnity-related claims were made.

CRDC BOARD

Board Meeting Dates Location

Meeting 4 - 2013 5 and 6 August, 2013 CRDC Board Room, Narrabri, NSW

Meeting 5 - 2013 3 October, 2013 Teleconference

Meeting 6 - 2013 6 and 7 November 2013 Hotel Urban, Brisbane, QLD

Meeting 1 - 2014 22 January, 2014 Teleconference

Meeting 2 - 2014 24 and 25 February, 2014 CRDC Board Room, Narrabri, NSW

Meeting 3 - 2014 29 and 30 April, 2014 QT Hotel, Canberra, ACT

Meeting 4 - 2014 17 and 18 June, 2014 Maraboon Tavern, Emerald, Qld

Attendances at Board meetings

Director Board meeting attendance

Meeting 4 2013 Meeting 5 2013

Meeting 6 2013 Meeting 1 2014

Meeting 2 2014 Meeting 3 2014

Meeting 4 2014 TOTAL

Mike Logan (Chair) until 12 August 2013

Yes - - - - 1 of 1

Mary Corbett (Chair) from 13 August 2013.

Yes Yes Yes Yes Yes Yes Yes 7 of 7

Hamish Millar Yes Yes Yes Yes Yes Yes Yes 7 of 7

Richard Haire Yes Yes Yes Yes Yes Yes 1st day

only

6½ of 7

Michael Robinson

Yes Yes Yes Yes Yes Yes No 6 of 7

Cleave Rogan Yes Yes Yes Yes Yes Yes Yes 7 of 7

Lorraine Stephenson

Yes Yes Yes Yes Yes Yes Yes 7 of 7

Bruce Finney Yes Yes Yes Yes Yes Yes Yes 7 of 7

71 CRDC Annual Report 2013-2014

Board Committees The Board operated the Audit, Intellectual Property and Remuneration Committees in 2013-14. In addition to formal meetings, much of the work of the Board and its Committees is conducted via email and telephone, supported by a secure online information portal. CRDC finds this arrangement to be effective, productive and cost effective.

Audit Committee Established under section 89 of the PIRD Act and section 32 of the Commonwealth Authorities and Companies Act 1997 (CAC Act), the Audit Committee’s primary role is to ensure CRDC’s financial reporting is a true and fair reflection of its financial transactions.

The Committee also provides a forum for communication between the Directors, the senior managers of CRDC and the internal and external auditors. It carries responsibility for identifying areas of significant business risk and stipulating the means of managing any such risk.

Richard Haire was Chair of the Committee, with members Mike Logan (until August 2013), Mary Corbett (from August 2013) and Michael Robinson. The Executive Director, Bruce Finney, attended the meetings as an observer. The Audit Committee met five times during 2013-14 with the 1 April 2014 meeting held by teleconference.

Intellectual Property Committee The role of the Intellectual Property (IP) Committee is to assist CRDC’s Board in fulfilling its responsibilities and to monitor the adequacy and effectiveness of CRDC’s policies and procedures relating to the management of IP.

The Committee’s specific responsibilities are to review the operation of CRDC’s IP Policy and IP Operating Principles and to consider IP matters directed to it by the Board for consideration.

Mary Corbett was Chair of the Intellectual Property Committee until August 2013, with Lorraine Stephenson, Hamish Millar and Cleave Rogan as members. Executive Director, Bruce Finney, attended as an observer. Cleave Rogan was elected Chair in August 2013. The committee met four times during 2013-14.

Remuneration Committee The Remuneration Committee advises the Board on the Executive Director’s remuneration and senior staff remuneration adjustments. The Chair of the remuneration committee was Mary Corbett, and supported by Richard Haire and Hamish Millar as members. The Remuneration Committee met twice during 2013-14.

CRDC BOARD

Attendances at Audit Committee meetings

Member Date of Audit Committee meetings

2013-14 5 Aug 2013 30 Oct 2013 3 Feb 2014 1 Apr 2014 14 May 2014 TOTAL

Richard Haire (Chair)

Yes Yes Yes Yes Yes 5 of 5

Michael Robinson Yes Yes Yes No Yes 4 of 5

Mike Logan Yes - - - - 1 of 1

Mary Corbett - Yes No Yes Yes 3 of 4

Attendances at Intellectual Property Committee meetings

Member Date of Intellectual Property Committee meetings

2013-14 23 Jul 2013

Brisbane

22 Oct 2013 Teleconference 4 Feb 2014 Brisbane

29 Apr 2014 Canberra TOTAL

Mary Corbett (Chair until August 2013) Yes - - - 1 of 1

Cleave Rogan (Chair after August 2013) Yes Yes Yes Yes 4 of 4

Lorraine Stephenson Yes Yes Yes Yes 4 of 4

Hamish Millar Yes Yes Yes Yes 4 of 4

72 CRDC Annual Report 2013-2014

Statement of principles CRDC Directors and staff members are required to:

„ Commit to excellence and productivity.

„ Be accountable to stakeholders.

„ Act legally, ethically, professionally and responsibly

in the performance of duties.

„ Strive to maximise return on investment of industry

and public funds invested through CRDC.

„ Strive to make a difference in improving the

knowledge base for sustainable cotton production in Australia.

„ Value strategic, collaborative partnerships with

research providers, other research and development bodies, industry organisations, stakeholders and clients, for mutual industry and public benefits; including cooperation with kindred organisations to address matters of national priority.

„ Value the contribution, knowledge and expertise

of the people within our organisation and that of our contracted consultants, external program coordinators and research providers.

„ Promote active, honest and effective

communication.

„ Commit to the future of rural and regional

Australia.

„ Comply with and promote best practice in

corporate governance.

„ Commit to meeting all statutory obligations and

accountability requirements in a comprehensive and timely manner.

Attendances at Remuneration Committee meetings

Member Date of Remuneration Committee meetings

2013-14 21 Nov 2013 26 Mar 2014 TOTAL

Mary Corbett, Chair Yes Yes 2 of 2

Hamish Millar Yes Yes 2 of 2

Richard Haire Yes Yes 2 of 2

CRDC BOARD

73 CRDC Annual Report 2013-2014

CRDC EMPLOYEES

CRDC People and Governance

CRDC’s small but dedicated team of skilled and experienced staff actively manage RD&E investment portfolios to achieve the cotton industry’s strategic goals. Our internal capacity is an important element of the overall effectiveness of RD&E investment for the cotton industry.

CRDC Organisational Structure on 30 June 2014

CRDC Board of Directors

CRDC Chair Dr Mary Corbett

CRDC Executive Director Mr Bruce Finney

R&D Investment Team CottonInfo Business and Finance Team

General Manager R&D Investment Ian Taylor (appointed December 2013)

R&D Managers: Jane Trindall Susan Maas (Acting) Allan Williams Bruce Pyke

CottonInfo Program Manager Warwick Waters (appointed March 2014)

Communication Manager Ruth Redfern (appointed January 2014)

General Manager Business and Finance Graeme Tolson

Accountant Emily Luff (appointed April 2014)

Trainee Accountant Elizabeth Eather

Executive Assistant Dianne Purcell

Project Administration Assistant Megan Baker (Acting)

Clerk Tamara Johnston

Employment Staff members are employed under Section 87 of the PIRD Act, which provides that the terms and conditions of employment are to be determined by the Corporation. CRDC complies with the Australian Government Bargaining Framework when exercising its power to engage employees in relation to sections 12, 87 and 119 of the PIRD Act.

In 2013-14 CRDC had a number of staffing changes as the organisation aligned its operations under the new five year Strategic R&D Plan 2013-18. Including the Executive Director, there were 12 full-time employees and 4 part-time employees on 30 June 2014. R&D Manager Tracey Leven and Project Administration Manager Amy Withington were on extended leave, and Bruce Pyke retired after 21 years of service to CRDC and cotton industry research.

CRDC employees

CRDC people 2009-10

2010-11

2011-12

2012-13

2013-14

Full-time employees

7 7 7 12 10

Part-time employees

1 1 1 2 4

Parental leave

0 0 0 1 2

TOTAL CRDC staff

8 8 8 15 16*

* The number of CRDC staff employed by CRDC on 30 June 2014.

74

Dr Oscar Alves, head of the Australian Bureau of Meteorology’s forecasting unit, on farm at ‘Kilmarnock’, Boggabri with Andrew Watson, the cotton industry’s Climate Champion in the Managing Climate Variability program to discuss climate application to irrigated and dryland farming systems. Photo courtesy Melanie Jenson.

CRDC EMPLOYEES

Staff training and development In 2013-14, CRDC spent $17,443 on training and $66,252 on recruitment for the senior roles of General Manager, R&D Investment; Program Manager, CottonInfo; and the Communications Manager. Areas of direct training activities were Director training, intellectual property management, Work Health and Safety, the Field to Fabric course, IT training, CPA workshop and support for a trainee undertaking academic studies in accounting.

Throughout the year, Directors and staff participate in a wide range of CRDC related activities involving external bodies, providing valuable experience, as well as skills and knowledge upgrades for the personnel involved.

Equal employment opportunity CRDC is committed to a merit-based, non-discriminatory recruitment and promotion policy and staff members are chosen strictly according to their qualifications for the job. Scientists undertaking CRDC funded research are of diverse backgrounds and cultures.

CRDC’s Equal Opportunity and Harassment Policy defines prohibited discrimination and harassment and sets out a complaints procedure to be followed if there is a breach of this policy, including details of what action can be taken once the complaint has been made. The policy applies to all employees, whether full-time, part-time, casual or temporary, to Directors and to contractors and customers (clients).

75 CRDC Annual Report 2013-2014

GOVERNANCE AND ACCOUNTABILITY CRDC People and Governance

Location CRDC is based in one of Australia’s major cotton-growing areas, Narrabri, in north west NSW. Being centrally located within the Australian cotton industry, CRDC benefits from developing and maintaining important relationships with cotton growers, researchers, processors and members of regional cotton communities.

PIRD Act legislation CRDC began operations in 1990 under the PIRD Act.

Charter The CRDC charter under the PIRD Act is to invest in and manage a portfolio of research, development and extension projects and programs in order to secure economic, environmental and social benefits for the Australian cotton industry and the community. This is to be conducted in a framework of improved accountability for research and development spending in relation to the cotton industry.

PIRD objects The objects of this PIRD Act are to:

(a) make provision for the funding and administration of research and development relating to primary industries with a view to:

(i) increasing the economic, environmental and social benefits to members of primary industries and to the community in general by improving the production, processing, storage, transport or marketing of the products of primary industries; and

(ii) achieving the sustainable use and sustainable management of natural resources; and

(iii) making more effective use of the resources and skills of the community in general and the scientific community in particular; and

(iv) supporting the development of scientific and technical capacity; and

(v) developing the adoptive capacity of primary producers; and

(vi) improving accountability for expenditure on research and development activities in relation to primary industries; and

(b) make provision for the funding and administration of marketing relating to products of primary industries.

Powers Under Section 12 of the PIRD Act, CRDC has the power to do all things necessary to carry out its functions, including but not restricted to:

„ Entering into agreements for the carrying out

of R&D or marketing activities;

„ Applying for patents, either solely or jointly;

„ Charging for work done, services rendered, and

goods and information supplied;

„ Acquiring, holding and disposing of real and

personal property; and

„ Anything incidental to any of its powers.

CRDC was established in 1990 as a partnership between the Australian people (through the Australian Government) and the Australian cotton industry (through Cotton Australia - its legislated representative industry body).

76 CRDC Annual Report 2013-2014

GOVERNANCE AND ACCOUNTABILITY

Functions Function Application

Investigating and evaluating the cotton industry’s requirements for research and development, and the preparation, review and revision of an R&D plan on that basis

This is achieved by continuing interaction with CRDC’s legislated industry body, Cotton Australia, as well as the industry peak body, the Australian Cotton Industry Council (ACIC). Cotton Australia undertakes a range of functions relating to CRDC, including an annual review to ensure the CRDC Strategic Plan remains current and relevant.

The cotton industry and cotton researchers were closely involved in development of the CRDC’s new Strategic Plan, which incorporated Australian Government and cotton industry RD&E priorities, as well as advice from the Minister and the Department of Agriculture.

Preparing an Annual Operating Plan for each financial year

An Annual Operating Plan is submitted to the Australian Government in April each year. From December 2013, the Annual Operating Plan no longer requires Ministerial approval, however it is provided to the Minister for information prior to being implemented.

Coordinating and funding RD&E activities consistent with current planning documents

RD&E projects are approved or commissioned in line with the Annual Operating Plan each year. The Annual Operating Plan is devised to address the objectives and strategies outlined in the current Strategic R&D Plan.

Monitoring, evaluating and reporting to Parliament, the Minister for Agriculture, and to industry on RD&E activities coordinated or funded by the Corporation

The Corporation reports formally to the Australian Parliament through its Annual Report. In addition, CRDC informs the Minister for Agriculture of any matters of interest or concern in the current operating environment.

This occurs in written and, where possible, face-to-face communication. CRDC is also in communication with the Department of Agriculture on a range of issues. Communication with the industry and Cotton Australia occurs continually on both a formal and informal basis, as outlined above. Communication with the broader community is a key focus of CRDC’s communication activities.

In order to ensure stringent evaluation of its RD&E activities, CRDC is committed to the ongoing Council of Rural Research and Development Corporation’s Impact Evaluation process.

Facilitating the dissemination, adoption and commercialisation of research and development results in relation to the cotton industry

Over more than a decade, the Australian cotton industry benefited from having an industry-wide extension network, supported by CRDC and continually reviewed and modified to suit prevailing conditions.

The CottonInfo joint venture by CRDC, Cotton Australia and Cotton Seed Distributors (CSD) provides the industry with a substantially revitalised development and delivery service to take research to the farm as quickly as possible.

The CottonInfo team is already working to improve responsiveness to grower needs through better communication and regional representation, focusing on delivering research directly to the grower via agronomy consultants and agribusinesses. The new model recognises the importance of supporting adoption of RD&E through multiple delivery pathways and will be underpinned by the redevelopment of the industry best management practices program, myBMP.

CRDC staff members play a pivotal role in facilitating fast and effective dissemination of CRDC funded research outcomes.

More broadly, CRDC hosts forums, participates in roadshows and the annual cotton trade show, produces publications, sponsors the biennial research-based Australian Cotton Conference and has a communication strategy to extend and enhance the adoption of RD&E. CRDC also collaborates in the successful commercialisation of RD&E where possible.

77 CRDC Annual Report 2013-2014

GOVERNANCE AND ACCOUNTABILITY

The CAC Act CRDC has been subject to the Commonwealth Authorities and Companies Act 1997 (CAC Act) since August 1998. The CAC Act, which ceases on 1 July 2014, provides enhanced levels of accountability as well as a planning and reporting framework. From 1 July 2014, CRDC will be subject to the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

Other legislation The setting and collection of levies on the cotton industry is enabled by the Primary Industries (Excise) Levies Act 1999 and the Primary Industries Levies and Charges Collection Act 1991.

Cotton R&D levy The Australian Government introduced an R&D levy at the request of industry. The cotton levy funds CRDC and Plant Health Australia research and development programs. The levy is payable on cotton produced in Australia and the producer (the person who owns the cotton immediately after harvest) is liable to pay the levy.

The levy rate for cotton (excluding GST) is $2.25 per 227 kilogram bale of cotton. The Australian Government contributes matching funds up to a limit of 0.5 per cent of industry Gross Value of Production.

Minister During 2013-14 CRDC was accountable to the Australian Parliament through:

„ the Minister for Agriculture, Fisheries and Forestry,

the Hon. Joel Fitzgibbon MP from 1 July 2013 to 18 September 2013.

„ the Minister for Agriculture, the Hon. Barnaby Joyce

MP from 18 September 2013 to 30 June 2014.

Minister’s responsibilities The Minister’s powers and responsibilities, as outlined under various sections of the PIRD Act, include appointing CRDC’s Chair and Directors and, under certain conditions, terminating these appointments; approving CRDC’s Strategic R&D Plan and any variations to it; appointing a person as Presiding Member of CRDC’s Selection Committee, as well as other members of that Committee; and transferring to CRDC any assets held by the Commonwealth that the Minister considers appropriate and which would assist its performance and function.

Ministerial directions No formal Ministerial directions were issued to CRDC in 2013-14. CRDC complies with all Ministerial directions, legislative and policy requirements of the Australian Government that it has been able to ascertain.

Ongoing directions from previous years that are applicable to CRDC are the Commonwealth Procurement Rules, the Building Code, Commonwealth Property Management Framework, Australian Government Foreign Exchange Risk Management Guidelines and the Australian Government Protective Security Policy Framework.

78 CRDC Annual Report 2013-2014

CRDC role, responsibilities and accountabilities „ CRDC is formally accountable to the Australian

people through the Australian Parliament and to the cotton industry through its industry representative body, Cotton Australia.

„ CRDC’s stakeholders set broad objectives, which

the Corporation addresses through its Strategic R&D Plan and Annual Operating Plan.

„ CRDC has used these objectives as a basis for the

development of its planned outcomes and the identification of key outputs.

„ CRDC’s reporting processes include the

presentation of a formal report to its industry stakeholder. Part of this presentation includes an opportunity for questioning and debating Board decisions.

„ CRDC annually reports on investments, project

outcomes, operation activities and financial statements every year via its Annual Report.

„ CRDC’s Annual Operating Plan 2013-14 marked

the first year of CRDC operation under the new Strategic R&D Plan for 2013-18. The Annual Report 2013-14 reports on the outcomes of investments, projects, operations and financials in 2013-14.

Policies, procedures and charters CRDC has 33 existing policies, procedures and charters to assist with the effective governance of the organisation. These documents are available from CRDC’s internal shared folders and made available to all Directors and new staff during induction training. Directors and management conducted, commissioned or enacted 16 reviews during 2013-14 listed in the table below.

Reviews 2013-14 Description Board, committee and management Last review

Board Board and committees:

IP Committee Charter Remuneration Committee Charter Audit Committee Charter

IP Remuneration Audit

Feb 2014 Apr 2014 Jun 2014

Finance & Administration Board, Audit committee and management Reserves policy Financial investments policy Conflict of Interest

Feb 2014 Apr 2014 Apr 2014

Human Resources Remuneration and management

Email and Internet Usage Policy Media Policy Social Media Policy Performance Counselling & Disciplinary Policy Grievance & Dispute Resolution Policy Equal Opportunity & Harassment Policy

Jan 2014 Jan 2014 Jan 2014 Jan 2014 Jun 2014 Jun 2014

WH&S Audit and management

WH&S Management Arrangements Apr 2014

Risk Management Audit and management

Fraud Risk Register & Plan Risk Register & Management Plan Fraud Control policy Business Continuity policy Crisis Management Plan Risk Management Framework Policy

Nov 2012 Aug 2013 Nov 2012 Jun 2013

Feb 2013 Aug 2013

GOVERNANCE AND ACCOUNTABILITY

79 CRDC Annual Report 2013-2014

Corporate reporting In accordance with the PIRD Act and the CAC Act, CRDC prepares a five-year Strategic R&D Plan, as well as an Annual Operating Plan for each financial year.

In 2013-14, CRDC submitted its Annual Operating Plan 2014-15 to the Minister for Agriculture, Senator the Hon. Barnaby Joyce with the plan commencing from 1 July 2014. The Annual Report 2012-13 was submitted to the Minister on 9 October 2013 and the Minister agreed to table the report in Parliament in 8 November 2013.

Fraud control Active fraud control is a major responsibility of all staff and clear standards and procedures have been established. All personnel engaged in the prevention, detection and investigation of fraud receive appropriate fraud control training, consistent with the Australian Government’s Fraud Control Guidelines.

The Audit Committee endorses, monitors and reviews the fraud control plan, which is read in conjunction with the Risk Management Plan and the Board Charter for Directors and Statement of Principles for staff.

CRDC’s Audit Committee, Executive Director and General Manager Business and Finance (the nominated fraud control officer) carry out the functions of a fraud investigation unit collectively, as described in the Commonwealth Fraud Investigation Model. The support of the Australian Federal Police would be sought if CRDC felt there was a prima facie case of fraud and further investigation was required. No such action was necessary in 2013-14.

Service charter CRDC does not provide services direct to the public and thus does not have a service charter; however, CRDC has a Board Charter which includes a Governance Statement and a Statement of Principles that embody the set of values underlying our decisions, actions and relationships.

National Disability Strategy CRDC working conditions and procedures for employees and stakeholders align with the Commonwealth Disability Discrimination Act 1992 in the broader context of the National Disability Strategy 2010-20 due to its small size and physical nature of the CRDC building allow. CRDC has ensured that any person with a disability could be properly accommodated and carry out all functions, as either a staff member or a visitor. Should a future staff member or visitor need more specialised disability assistance, CRDC will assess and meet these needs.

Equal Opportunity and Harassment Policy CRDC’s Equal Opportunity and Harassment Policy defines prohibited discrimination and harassment and sets out a complaints procedure.

Significant events CRDC had no significant events in 2013-14, as defined in section 15 of the CAC Act.

Significant changes in the state of affairs CRDC had no significant change in its state of affairs in 2013-14, as defined in section 16 of the CAC Act.

Judicial decisions and reviews by outside bodies CRDC had no judicial decisions or reviews by outside

bodies in 2013-14.

Work Health and Safety CRDC has a strong culture of achieving best practice and continuous improvement in Work Health and Safety (WHS), as required by the Work Health and Safety Act 2011. This is achieved by providing the necessary resources (both human and financial) to ensure that WHS functions effectively.

In accordance with Schedule 2 Part 4 of the WHS Act, CRDC details notifiable incidents reported each year. In view of its WHS record, CRDC remains vigilant in maintaining its safety performance by conducting audits and reviews of policies and procedures.

GOVERNANCE AND ACCOUNTABILITY

80 CRDC Annual Report 2013-2014

CRDC Work Health and Safety summary Legislative reporting requirements Schedule 2 Part 4 of the Work Health and Safety Act 2011

Action undertaken 2013-14

Initiatives during 2013-14 and outcomes

„ An independent audit of WHS performance, which informed the

review and updating of CRDC’s WHS Policy and procedures.

„ Fire warden, evacuation, fire extinguisher, ergonomics training.

„ Safety issues discussed formally at workplace meetings, workplace

inspections held (including vehicles) and staff consulted in resolving safety issues and physical conditions of the workplace.

„ A flu vaccination program for all CRDC staff was offered.

„ Work Health and Safety inductions for new staff, directors and

contractors.

Statistics of any notifiable incidents as defined by s.38 of the WHS Act „ CRDC had no notifiable incidents in 2013-14.

Details of any investigations conducted during the year, including details of all notices under Part 10 of the WHS Act

„ CRDC conducted no investigations and no notices were received

from, or given to, an employee.

Freedom of information General enquiries regarding access to documents or other matters relating to Freedom of Information should be made in the first instance to the Executive Director.

Funding information on individual projects funded by CRDC is available on request, unless that information has been classified as commercial-in-confidence. Information about CRDC projects is also available at the CRDC website: www.crdc.com.au.

During 2013-14, CRDC had one Freedom of Information request that CRDC managed in accordance with the provisions of its Freedom of Information plan, which complied with subsection 8(1) of the Freedom of Information Act 1982.

Categories of documents held

Category Nature Access

Administration Files D

Annual Operating Plans Files, Publications C

Annual Reports Files,

Publications

C

Applications, Guidelines and Contracts Files, Publications

C, D

Assets Register Files D

Financial Management Files D

Five Year Plans Files,

Publications

C

Project Lists Files,

Publications C, D

Research Reports Files,

Publications C, D

Workshop Reports Files,

Publications C, D

C: Documents customarily made available

D: Documents not customarily made available for reasons of privacy or commercial-in confidence.

GOVERNANCE AND ACCOUNTABILITY

81 CRDC Annual Report 2013-2014

Contractors and consultants CRDC employs consultants and contractors on a needs basis and after background checks to ensure proposed appointees have the necessary skills and experience. During the reporting year CRDC spent $638,114 exclusive of GST, to remunerate consultants and contractors.

Privacy and confidentiality arrangements require that CRDC policy is not to disclose amounts paid to individual consultants. A list of contractors and consultants with remuneration of $10,000 or more, exclusive of GST, can be found in the following table.

Contractor Service provided

2013-14

Aboriginal Employment Strategy Ltd HSC student traineeships

ACIL Allen Consulting Strategic advice

Banki Haddoc Fiora Lawyers Legal advice

Datacom Systems (ACT) Pty Ltd Software consultants

F1 Solutions Consulting Software consultants

Helen Wheels HR Project management

Infinity Outsourcing Group ICT system management

P Jones Project management

J Hamparsum Committee chair

M Jenson Publication content

Neil Deacon Design Publication design

Nexia Court & Co Internal audit services

Oakton Services Pty Ltd Internal audit services

Sefton & Associates Strategic advice

TechMAC Pty Ltd Program management

Weemalah WriteAbility Publication content, editing & design

Y Cunningham Web design

Payments to advertising agencies CRDC did not engage the services of any advertising agency, market research organisation, polling organisation, direct mail organisation or media promotion organisation during the reporting year.

GOVERNANCE AND ACCOUNTABILITY

82 CRDC Annual Report 2013-2014

Payment to representative body CRDC’s industry representative body is Cotton Australia. In 2013-14, CRDC contributed a total of $130,566 to Cotton Australia for industry consultation and project work. In accordance with the Guidelines on Funding of Consultation Costs by Primary Industries and Energy Portfolio Statutory Authorities these funds included $18,816 for their industry consultation role including several specific activities:

„ Industry consultation for development and

reviewing the CRDC Strategic R&D Plan. This ensures CRDC’s strategic planning continues to address evolving industry RD&E needs.

„ Industry consultation and participation in CRDC

forums to review RD&E funding applications and scoping future directions in research.

„ A meeting to receive and discuss the CRDC annual

report for the preceding year. This enables the industry representative body to ensure CRDC’s activities for that year have met its strategic objectives and to question senior staff on any matters of interest or concern.

While CRDC does not pay a fee for service to the industry representative body for these activities, it contributes to the expenses they incur in carrying them out, as authorised by section 15 of the PIRD Act, which relates to consultation with the industry stakeholder.

GOVERNANCE AND ACCOUNTABILITY

In 2013-14, CRDC contributed a total of $111,750 to Cotton Australia for the following co-funded project activities:

„ $25,000 p.a. to co-funding support for the Primary

Industries Education Foundation to support the cotton industry’s participation in cross-sectoral education initiatives.

„ $15,000 co-funding support for the Plant Health

Australia and Cotton Australia project to provide biosecurity training for cotton growers and agronomists to support cotton industry awareness of the national framework for biosecurity as an education initiative.

„ $30,500 support for the 2014 Australian Cotton

Conference to increase awareness in the Australian cotton industry of research outcomes.

„ $5,000 co-funding support for the cross-sector

CottonMap project lead by Cotton Australia and supported by GRDC and other commercial organisations. The project increases awareness within the grains industry of where cotton crops may exist near grain crops with the aim of decreasing the risk of spray-drift damaging cotton crops.

„ $36,250 co-funding support for the Australian

Future Cotton Leaders Course, a Ruralscope education program which supports the cotton industry’s participation in leadership education initiatives.

83

The Bollgard III® efficacy team: university student Katherine Grellman, CSIRO/CSD assistant Jamala Gordon, CSIRO technical assistant Susie Thomson and CSIRO technical officer Trudy Staines. Photo courtesy of Melanie Jenson.

84

International herbicide resistance expert, Dr Jason Norsworthy of the University of Arkansas, inspects a cotton field in the US that has been taken over by Palmer amaranth as a result of over-reliance on glyphosate a s a control method. Herbicide resistance is recognised as a serious issue for the Australian cotton industry, and the CRDC invests heavily in this area as a result. 84

Section 6 Financials

Auditor’s Report

Statement by the Directors, Executive Director and Chief Financial Officer

Financial Statements

Notes of the Financial Statements

CONTENTS

85 CRDC Financial Statements 2013-2014

Auditor’s Report Independent Auditor Report 86

Statement by the Directors, Executive Director and Chief Financial Officer 88

Financial Statements STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2014 89

STATEMENT OF FINANCIAL POSITION as at 30 June 2014 90

STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2014 91

CASH FLOW STATEMENT for the period ended 30 June 2014 92

SCHEDULE OF COMMITMENTS as at 30 June 2014 93

SCHEDULE OF CONTINGENCIES as at 30 June 2014 94

Notes of the Financial Statements Note 1: Summary of Significant Accounting Policies 95

Note 2: Events After the Reporting Period 104

Note 3: Expenses 104

Note 4: Own-Source Income 107

Note 5: Fair Value Measurements 108

Note 6: Financial Assets 109

Note 7: Non-Financial Assets 111

Note 8: Payables 115

Note 9: Provisions 116

Note 10: Cash Flow Reconciliation 117

Note 11: Contingent Assets and Liabilities 118

Note 12: Directors Remuneration 118

Note 13: Related Party Disclosures 118

Note 14: Senior Executive Remuneration 119

Note 15: Average Staffing Levels 121

Note 16: Remuneration of Auditors 121

Note 17: Financial Instruments 121

Note 18: Reporting of Outcomes 125

86 CRDC Financial Statements 2013-2014

87 CRDC Financial Statements 2013-2014

88 CRDC Financial Statements 2013-2014

In our opinion, the attached financial statements for the year ended 30 June 2014 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 1997, as amended.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Cotton Research and Development Corporation will be able to pay its debts as and when they become due and payable.

This statement is made in accordance with a resolution of the directors.

Cotton Research and Development Corporation STATEMENT BY THE DIRECTORS, EXECUTIVE DIRECTOR AND CHIEF FINANCIAL OFFICER

Dr Mary Corbett Chairperson 18th August 2014

Signed Signed Signed Signed

Richard Haire Director 18th August 2014

Bruce Finney Executive Director 18th August 2014

Graeme Tolson Chief Financial Officer 18th August 2014

89 CRDC Financial Statements 2013-2014

Notes

2014 $

2013 $

NET COST OF SERVICES

Expenses

Employee benefits 3A 1,937,109 1,910,084

Supplier 3B 1,151,790 614,382

Grants 3C 18,771,311 16,728,779

Depreciation and amortisation 3D 62,756 47,464

Losses from asset sales 3E - 737

Total expenses 21,922,966 19,301,446

OWN-SOURCE INCOME

Own-source revenue

Interest 4A 1,778,946 1,725,869

Rental income 4B 5,000 10,478

Royalties 4C 1,830,006 3,971,210

Other revenue 4D 1,649,394 1,884,238

Total own-source revenue 5,263,346 7,591,795

Net cost of services 16,659,620 11,709,651

Revenue from Government

PIRD Act 1989 Contribution 4E 11,238,949 11,522,788

Levies and penalties 4F 10,977,077 11,801,096

Total revenue from Government 22,216,026 23,323,884

Surplus attributable to the Australian Government 5,556,406 11,614,233

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus - -

Total other comprehensive income - -

Total comprehensive income attributable to the Australian Government 5,556,406 11,614,233

The above statement should be read in conjunction with the accompanying notes.

STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2014

90 CRDC Financial Statements 2013-2014

Notes

2014 $

2013 $

ASSETS

Financial assets

Cash and cash equivalents 6A 11,098,065 12,260,782

Investments held to maturity 6B 31,000,000 27,000,000

Trade and other receivables 6C 6,252,649 5,763,085

Total financial assets 48,350,714 45,023,867

Non-financial assets

Land and buildings 7A 790,443 694,412

Property, plant and equipment 7B,C 42,871 65,182

Intangibles 7D,E 92,282 17,585

Other non-financial assets 7F 4,205 -

Total non-financial assets 929,801 777,179

Total assets 49,280,515 45,801,046

LIABILITIES

Payables

Suppliers 8A 96,137 161,613

Grants 8B 4,286,734 6,270,194

Other payables 8C 99,406 95,990

Total payables 4,482,277 6,527,797

Provisions

Employee provisions 9A 310,337 341,754

Total provisions 310,337 341,754

Total liabilities 4,792,614 6,869,551

Net assets 44,487,901 38,931,495

EQUITY

Reserves 345,937 345,937

Retained surplus 44,141,964 38,585,558

Total equity 44,487,901 38,931,495

The above statement should be read in conjunction with the accompanying notes.

STATEMENT OF FINANCIAL POSITION as at 30 June 2014

91 CRDC Financial Statements 2013-2014

Asset revaluation reserve Retained earnings Total equity

2014 $

2013 $

2014 $

2013 $

2014 $

2013 $

Opening balance

Balance carried forward from previous period 38,585,558 26,971,325 345,937 345,937 38,931,495 27,317,262

Adjustment for errors - - - - - -

Adjustment for changes in accounting policies

- - - - - -

Adjusted opening balance 38,585,558 26,971,325 345,937 345,937 38,931,495 27,317,262

Comprehensive income

Surplus for the period 5,556,406 11,614,233 5,556,406 11,614,233

Other comprehensive income

- - - - - -

Total comprehensive income

5,556,406 11,614,233 - - 5,556,406 11,614,233

Transfers between equity components

- - - - - -

Closing balance as at 30 June

44,141,964 38,585,558 345,937 345,937 44,487,901 38,931,495

The above statement should be read in conjunction with the accompanying notes.

STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2014

92 CRDC Financial Statements 2013-2014

Notes

2014 $

2013 $

OPERATING ACTIVITIES

Cash received

Industry levies and penalties 10,177,874 12,958,210

Commonwealth contributions 10,902,082 10,462,148

Royalties 2,799,908 3,548,596

Grants 1,254,535 1,437,504

Grants - Parental Leave 18,731 -

Interest 1,850,561 1,281,554

Net GST received 1,765,315 817,418

Other 389,395 560,464

Total cash received 29,158,401 31,065,894

Cash used

Employees 1,987,101 1,765,672

Grants 22,789,370 15,536,369

Suppliers 1,333,475 570,733

Novation grants paid - 91,196

Novation suppliers paid - -

Total cash used 26,109,946 17,963,970

Net cash from operating activities 10 3,048,455 13,101,924

INVESTING ACTIVITIES

Cash received

Investments 13,000,000 22,000,000

Total cash used 13,000,000 22,000,000

Cash used

Purchase of property, plant and equipment 211,172 46,208

Investments 17,000,000 29,000,000

Total cash used 17,211,172 29,046,208

Net cash used by investing activities (4,211,172) (7,046,208)

Net increase/(decrease) in cash held (1,162,717) 6,055,716

Cash and cash equivalents at the beginning of the reporting period 12,260,782 6,205,066

Cash and cash equivalents at the end of the reporting period 6A 11,098,065 12,260,782

CASH FLOW STATEMENT for the period ended 30 June 2014

93 CRDC Financial Statements 2013-2014

2014 $

2013 $

BY TYPE

Commitments receivable

Research grant commitments3 1,982,477 1,149,500

Net GST recoverable on commitments1 2,382,773 1,915,470

Total commitments receivable 4,365,250 3,064,970

Commitments payable

Other commitments

Operating leases2 242,254 153,561

Research grant commitments3 25,968,241 20,916,610

Total other commitments 26,210,495 21,070,171

Net commitments payable by type 21,845,245 18,005,201

BY MATURITY

Commitments receivable

Other commitments receivable

Within 1 year 2,333,667 1,339,155

Between 1 to 5 years 2,031,583 1,725,815

Total other commitments receivable 4,365,250 3,064,970

Commitments payable

Operating lease commitments

Within 1 year 123,825 74,967

Between 1 to 5 years 118,429 78,594

Total operating lease commitments 242,254 153,561

Other Commitments

Within 1 year 14,873,762 11,962,943

Between 1 to 5 years 11,094,479 8,953,667

Total other commitments 25,968,241 20,916,610

Net commitments by maturity 21,845,245 18,005,201

Note 1: Commitments are GST inclusive where relevant.

Note 2: Operating leases are effectively non-cancellable and comprise of agreements for the provision of motor vehicles for the Corporation.

Note 3: Research grant commitments receivable and payable are Agreements Equally Proportionately Unperformed for research, development and extension contracts.

This schedule should be read in conjunction with the accompanying notes.

SCHEDULE OF COMMITMENTS as at 30 June 2014

94 CRDC Financial Statements 2013-2014

Refer to Note 11.

The above schedule should be read in conjunction with the accompanying notes.

SCHEDULE OF CONTINGENCIES as at 30 June 2014

95 CRDC Financial Statements 2013-2014

Note 1: Summary of Significant Accounting Policies

1.1 Objective of Cotton Research and Development Corporation

No matters or circumstances have arisen since the end of the financial year which significantly affected or may affect the operations of the Corporation, the results of these operations or state of affairs of the Corporation in subsequent years.

Cotton Research and Development Corporation is an Australian Government controlled entity. The objective of the Corporation is to bring industry and researchers together to establish research and development strategic directions and to fund projects that provide the cotton industry with the innovation and productivity tools to compete in global markets.

The Corporation is structured to meet one outcome:

“Adoption of innovation that leads to increased productivity, competitiveness and environmental sustainability through investment in research and development that benefits the Australian cotton industry and the wider community.”

The continued existence of the Corporation in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Corporation’s administration and programs.

1.2 Basis of Preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997.

The financial statements have been prepared in accordance with:

a) Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2013; and

b) Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities 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 statements are presented in Australian dollars and values are rounded to the nearest dollar unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the Corporation or a future sacrifice of economic benefits will be required 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 unrecognised are reported in the schedule of commitments or the schedule of contingencies.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when, and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

NOTES TO THE FINANCIAL STATEMENTS

96 CRDC Financial Statements 2013-2014

NOTES TO THE FINANCIAL STATEMENTS

1.3 Significant Accounting Judgements and Estimates

In the process of applying the accounting policies listed in this note, the Corporation has made the following judgements that have the most significant impact on the amounts recorded in the financial statement:

„ The fair value of land and buildings has been taken to be the market value of similar properties as determined

by an independent valuer.

„ Leave provisions also involve actuarial assumptions based on the likely tenure of existing staff, patterns of leave

claims and payouts, future salary movements and future discount rates.

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

No new standards, amendments to standards or interpretations applicable to the current reporting period had a material financial impact, and are not expected to have a future financial impact on the entity.

Future Australian Accounting Standard Requirements

Of the new standards, amendments to standards or interpretations that have been issued by the Australian Accounting Standards Board that are applicable to future reporting periods, none will have a material impact on the Corporation.

1.5 Revenue

Revenue from the sale of goods is recognised when:

a) the risks and rewards of ownership have been transferred to the buyer;

b) the Corporation retains no managerial involvement or effective control over the goods;

c) the revenue and transaction costs incurred can be reliably measured; and

d) it is probable that the economic benefits associated with the transaction will flow to the Corporation.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

b) the probable economic benefits associated with the transaction will flow to the entity.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

97 CRDC Financial Statements 2013-2014

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

Resources Received Free of Charge

Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Revenue from Government

Funding received or receivable from agencies (appropriated to Department of Agriculture as a CAC Act body payment item for payment to this Corporation) is recognised as Revenue from Government unless they are in the nature of an equity injection or a loan. Revenue from the Department of Agriculture is recognised on an accrual basis from the date that the Department of Agriculture notifies the Corporation of the amount receivable. Revenue from government includes:

a) Industry Levies: Under section 30(1)(a) of the Primary Industries Research and Development 1989 Act (PIRD Act), CRDC received cotton industry levies. This contribution to the Corporation is collected and distributed by the Australian Government under the Primary Industries (Excise) Levies 1999 Act.

b) PIRD Act 1989 Contributions: Under section 30(1)(b) of the PIRD Act, the Australian Government provides matching payments, within certain parameters, equal to one half of the amount expended by the Corporation. Matching payments are recognised as Revenue from Government when the necessary expenditure is recognised.

Parental Leave Payments Scheme

Amounts received under the Parental Leave Payments Scheme by the Corporation not yet paid to employees were presented as gross cash and a liability (payable). The total amount received under this scheme was $18,731 (2013: $nil).

1.6 Royalties

Revenue from royalties are recognised on an accruals basis in accordance with the substance of the relevant agreements except when the royalty cannot be measured with sufficient reliability and are recognised based on cash received.

CRDC’s major agreement in plant breeding royalties with CSIRO ceases at 30th June 2017.

1.7 Gains

Sale of Assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

1.8 Grants for Research and Development

The CRDC recognises project liabilities through project agreements that require the research partner to perform services or provide facilities, or to meet eligibility criteria. A grant R&D expense is recognised when the research provider has provided the services, or facilities and meet the eligibility criteria. Eligibility criteria includes but is not limited to providing progress reports, financial statements and intellectual property reports.

NOTES TO THE FINANCIAL STATEMENTS

98 CRDC Financial Statements 2013-2014

On the 1st July 2013 at the commencement of the new 5 year R&D Plan expenses previously referred to as Grants R&D Corporate were reallocated to Grants Corporate R&D Activities or to Suppliers as R&D Administration expenses. The 2012-13 comparative figures have not been reclassified as they represent the allocation expenditure under the previous 2008-13 R&D Plan. The following table illustrates the impact that the new R&D Plan would have had if it had been applied to the comparative figures.

Impact of new R&D Plan for the period ended 30 June 2013

As reported for 2012-13

Impact of change in R&D Plan

Potential impact on comparatives

$ $ $

Supplier 614,382 384,493 998,875

Grants 16,728,779 (384,493) 16,344,286

Total expenses 19,301,446 - 19,301,446

Total comprehensive income attributable to the Australian Government 11,614,233 - 11,614,233

1.9 Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits ) and termination benefits expected within twelve months of the end of reporting period 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.

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 at the estimated salary rates that will be applied at the time the leave is taken, 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 reference to the Department of Finance standard parameters for the Long Service Leave Shorthand Method set out in the FMOs. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

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

Staff of the Corporation are members of Public Superannuation Funds, Self Managed Superannuation Funds, the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).

NOTES TO THE FINANCIAL STATEMENTS

99 CRDC Financial Statements 2013-2014

The PSS is a defined benefit scheme for the Australian Government. The PSSap is a defined contribution scheme.

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. This liability is reported in the Department of Finance’s administered schedules and notes.

The Corporation makes employer contributions to the employees’ superannuation scheme at rates determined by an actuary, or by statute, sufficient to meet the current cost to the Government. The Corporation accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.

1.10 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased 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.

Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

1.11 Borrowing Costs

No borrowing costs were incurred by the Corporation during the year.

1.12 Fair Value Measurement

The Corporation deems transfers between levels of the fair value hierarchy to have occurred when either the quotable prices or observable inputs for each class of asset become available or cease to be available.

1.13 Cash and cash equivalents

Cash and cash equivalents includes cash on hand and demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash is recognised at its nominal amount.

NOTES TO THE FINANCIAL STATEMENTS

100 CRDC Financial Statements 2013-2014

1.14 Financial Assets

The Corporation classifies its financial assets in the following categories:

a) financial assets at fair value through profit or loss;

b) held-to-maturity investments;

c) available-for-sale financial assets; and

d) loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

Financial Assets at Fair Value Through Profit or Loss

Financial assets are classified as financial assets at fair value through profit or loss where the financial assets:

a) have been acquired principally for the purpose of selling in the near future;

b) are derivatives that are not designated and effective as a hedging instrument; or

c) are a part of an identified portfolio of financial instruments that the Corporation manages together and has a recent actual pattern of short-term profit-taking.

Assets in this category are classified as current assets.

Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest earned on the financial asset.

The Corporation has no derivative financial assets in both the current and prior year.

Investments Held-to-Maturity

Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Corporation has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

NOTES TO THE FINANCIAL STATEMENTS

101 CRDC Financial Statements 2013-2014

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period.

Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

Financial assets held at cost - If there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

1.15 Financial Liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial Liabilities at Fair Value Through Profit or Loss

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Other Financial Liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

Grants

Grant liabilities are recognised to the extent that:

„ the services required to be performed by the grantee have been performed, or

„ the grant eligibility criteria have been satisfied, but payments due have not been made.

A commitment is recorded when the Corporation enters into an agreement to make these grants but services have not been performed or criteria satisfied.

NOTES TO THE FINANCIAL STATEMENTS

102 CRDC Financial Statements 2013-2014

1.16 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the statement of financial position 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 asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.17 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 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 income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

1.18 Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $1,000, 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

Buildings Market selling price

Office equipment Depreciated replacement cost

Computer equipment Depreciated replacement cost Fittings & furniture Depreciated replacement cost

Following initial recognition at cost, property, plant and equipment were carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations were conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets.

NOTES TO THE FINANCIAL STATEMENTS

103 CRDC Financial Statements 2013-2014

Fair value is measured at market selling price where the market value can be determined in an “Active Market” in accordance with AASB 116 Property, Plant and Equipment, and AASB 136 Impairment. Where an active market is not available then “Depreciated Replacement Cost” has been used.

Revaluation adjustments were made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets were recognised directly in the surplus/deficit except to the extent that they reversed 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 was 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 to the Corporation 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:

2014 2013

Buildings on freehold land 40 years 40 years

Office Equipment 5 to 10 years 5 to 10 years

Computer Equipment 3 years 3 years

Fittings & Furniture 10 years 10 years

Impairment

All assets were assessed for impairment at 30 June 2014. Where indications 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 of disposal 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.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

NOTES TO THE FINANCIAL STATEMENTS

104 CRDC Financial Statements 2013-2014

1.19 Intangibles

The Corporation’s intangibles comprise of purchased and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Corporation’s software are 3 to 5 years (2012-13: 3 to 5 years).

All software assets were assessed for indications of impairment as at 30 June 2014.

1.20 Taxation / Competitive Neutrality

The Corporation is exempt from all forms of taxation except Fringe Benefits Tax (FBT), State payroll taxes and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except:

a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

b) for receivables and payables.

Note 2: Events After the Reporting Period No matters or circumstances have arisen since the end of the financial year which significantly affected or may affect the operations of the Corporation, the results of these operations or state of affairs of the Corporation in subsequent years.

2014 $

2013 $

Note 3: Expenses

Note 3A: Employee Benefits

Wages and salaries 1,688,962 1,531,907

Superannuation:

Defined contribution plans 153,518 152,072

Defined benefit plans 40,100 37,770

Leave and other entitlements 54,529 188,335

Total employee benefits 1,937,109 1,910,084

NOTES TO THE FINANCIAL STATEMENTS

105 CRDC Financial Statements 2013-2014

NOTES TO THE FINANCIAL STATEMENTS

Note 3B: Suppliers

Goods and services

External Parties 1,079,188 542,631

Total goods and services 1,079,188 542,631

Goods and services are made up of:

Provision of goods - external parties 386,532 58,936

Rendering of services - external parties 692,656 483,695

Total goods and services 1,079,188 542,631

Other supplier expenses

Operating lease rentals - external parties:

Minimum lease payments 69,639 68,957

Workers compensation expenses 2,963 2,794

Total other supplier expenses 72,602 71,751

Total supplier expenses 1,151,790 614,382

Note 3C: Grants

Public sector:

Australian Government entities (related entities) 6,536,619 5,742,554

State and Territory Governments 4,540,041 3,694,028

Universities & Colleges 4,971,850 3,881,201

Other Research Institutions 111,750 713,372

Corporate extension activities 567,827 1,096,437

Private sector:

Commercial entities 2,043,224 1,601,187

Total grants 18,771,311 16,728,779

2014 $

2013 $

106 CRDC Financial Statements 2013-2014

Note 3D: Depreciation and Amortisation

Depreciation:

Buildings 15,944 13,500

Office equipment 10,737 10,238

Computer equipment 15,353 14,809

Fixtures & Fittings 1,350 1,260

Total depreciation 43,384 39,807

Amortisation:

Intangibles

Computer Software 19,372 7,657

Total amortisation 19,372 7,657

Total depreciation and amortisation 62,756 47,464

Note 3E: Losses from Asset Sales

Other Property, plant and equipment:

Proceeds from sale - -

Carrying value of assets sold - 737

Total losses from asset sales - 737

2014 $

2013 $

NOTES TO THE FINANCIAL STATEMENTS

107 CRDC Financial Statements 2013-2014

NOTES TO THE FINANCIAL STATEMENTS

2014 $

2013 $

Note 4: Own-Source Income OWN-SOURCE REVENUE

Note 4A: Interest

Deposits 1,778,946 1,725,869

Total interest 1,778,946 1,725,869

Note 4B: Rental Income

Operating lease:

Other 5,000 10,478

Total rental income 5,000 10,478

Note 4C: Royalties

Royalties 1,830,006 3,971,210

Total royalties 1,830,006 3,971,210

Note 4D: Other Revenue

Project refunds 395,244 437,771

Industry grants 1,243,287 1,356,167

Other revenue 10,863 90,300

Total other revenue 1,649,394 1,884,238

REVENUE FROM GOVERNMENT

Note 4E: Revenue from Government

Department of Agriculture:

PIRD Act 1989 Contribution 11,238,949 11,522,788

Total revenue from Government 11,238,949 11,522,788

Note 4F: Levies and Penalties

Industry Levies 10,961,887 11,799,850

Penalties 15,190 1,246

Total fees and fines 10,977,077 11,801,096

108 CRDC Financial Statements 2013-2014

Note 5: Fair Value Measurements The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

Note 5A: Fair Value Measurements

Fair value measurements at the end of the reporting period by hierarchy for assets and liabilities in 2014

Fair value measurements at the end of the reporting period using

Fair value $ Level 1 inputs $

Level 2 inputs $ Level 3 inputs $

Non-financial assets

Land 180,000 - 180,000 -

Buildings on freehold land 610,443 - 610,443 -

Other property, plant and equipment 42,871 - 42,871 -

Total non-financial assets 833,314 - 833,314 -

Total fair value measurements of assets in the statement of financial position 833,314 - 833,314 -

Fair value measurements - highest and best use differs from current use for non-financial assets (NFAs)

The highest and best use of all non-financial assets are the same as their current use.

Note 5B: Level 1 and Level 2 Transfers for Recurring Fair Value Measurements

There were no transfers of recurring fair value measurements between level 1 and level 2 in the current or prior year.

The Corporation’s policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.

NOTES TO THE FINANCIAL STATEMENTS

109 CRDC Financial Statements 2013-2014

NOTES TO THE FINANCIAL STATEMENTS

Note 5C: Valuation Technique and Inputs for Level 2 and Level 3 Fair Value Measurements

Level 2 and 3 fair value measurements - valuation technique and the inputs used for assets and liabilities in 2014

Category (Level 2 or Level 3)

Fair value $

Valuation technique(s)1

Inputs used

Range

(weighted average)2

Non-financial assets

Land Level 2 180,000 Market

comparables Sale prices of comparable land

Land size

Long-term land appreciation rate

N/A

Buildings on freehold land Level 2 610,443 Discounted

cash flow Price per square metre Market rate

of interest

N/A

Other property, plant and equipment Level 2 42,871 Depreciated

replacement cost

Market prices of similar assets less depreciation

N/A

1. No change in valuation technique occurred during the period.

2. Significant unobservable inputs only. Not applicable for assets or liabilities in the Level 2 category.

Note 6: Financial Assets

Note 6A: Cash and Cash Equivalents

Cash on hand or on deposit 11,098,065 12,260,782

Total cash and cash equivalents 11,098,065 12,260,782

Note 6B: Investments held to maturity

Investments held to maturity 31,000,000 27,000,000

Total Investments held to maturity 31,000,000 27,000,000

2014 $

2013 $

110 CRDC Financial Statements 2013-2014

NOTES TO THE FINANCIAL STATEMENTS

2014 $

2013 $

Note 6C: Trade and Other Receivables

Goods and services:

Goods and services - related entities 8,211 -

Goods and services - external entities 59,020 768,007

Total receivables for goods and services 67,231 768,007

Department of Agriculture

PIRD Act 1989 Contributions receivable 3,502,865 3,165,998

Industry levies receivable 1,639,873 840,670

Total receivables from government 5,142,738 4,006,668

Other receivables:

GST receivable from the Australian Taxation Office 419,884 293,998

Interest 622,796 694,412

Total other receivables 1,042,680 988,410

Total trade and other receivables 6,252,649 5,763,085

Receivables are expected to be recovered in:

No more than 12 months 6,252,649 5,763,085

Total trade and other receivables 6,252,649 5,763,085

Receivables are aged as follows:

Not overdue 6,250,274 5,732,785

Overdue by:

0 to 30 days 1,000 350

31 to 60 days - -

61 to 90 days - -

More than 90 days 1,375 29,950

Total receivables (gross) 6,252,649 5,763,085

No indicators of impairment were found for trade and other receivables.

111 CRDC Financial Statements 2013-2014

Note 7: Non-Financial Assets Note 7A: Land and Buildings

Land:

Land at fair value 180,000 180,000

Buildings on freehold land:

Fair value 639,887 527,912

Accumulated depreciation (29,444) (13,500)

Total buildings on freehold land 610,443 514,412

Total land and buildings 790,443 694,412

No indicators of impairment were found for land and buildings. No land or buildings were expected to be sold or disposed of within the next 12 months.

Note 7B: Other Property, Plant and Equipment Office equipment:

Fair value 60,052 60,052

Accumulated depreciation (39,907) (29,170)

Total office equipment 20,145 30,882

Computer equipment:

Fair value 82,158 78,027

Accumulated depreciation (63,651) (48,298)

Total computer equipment 18,507 29,729

Fittings and furniture:

Fair value 13,596 12,598

Accumulated depreciation (9,377) (8,027)

Total fittings and furniture 4,219 4,571

Total other property, plant and equipment 42,871 65,182

No indicators of impairment were found for property, plant and equipment. No property, plant or equipment is expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets All revaluations were conducted in accordance with the revaluation policy stated at Note 1. On 30th June 2012, an independent valuer conducted the revaluation.

All increments were transferred to the asset revaluation surplus by asset class and included in the equity section of the balance sheet.

2014 $

2013 $

NOTES TO THE FINANCIAL STATEMENTS

112 CRDC Financial Statements 2013-2014

Land Buildings

Total

land and buildings

Office

equipment Computer equipment Fittings &

furniture

Total other property, plant & equipment Total

$ $ $ $ $ $ $ $

As at 1 July 2013

Gross book value 180,000 527,912 707,912 60,052 78,027 12,598 150,677 858,589

Accumulated depreciation and impairment (13,500) (13,500) (29,170) (48,298) (8,027) (85,495) (98,995) Net book value 1 July 2013

180,000 514,412 694,412 30,882 29,729 4,571 65,182 759,594

Additions - 111,975 111,975 - 4,131 998 5,129 117,104

Revaluations recognised in other comprehensive income

- - - - -

Depreciation expense

(15,944) (15,944) (10,737) (15,353) (1,350) (27,440) (43,384)

Reclassification: - - - - - - -

Disposals:

Gross book value - - - - - - - -

Accumulated depreciation and impairment - - - - - - - -

Net book value 30 June 2014

180,000 610,443 790,443 20,145 18,507 4,219 42,871 833,314

Net book value as of 30 June 2014 represented by:

Gross book value 180,000 639,887 819,887 60,052 82,158 13,596 155,806 975,693

Accumulated depreciation and impairment (29,444) (29,444) (39,907) (63,651) (9,377) (112,935) (142,379)

180,000 610,443 790,443 20,145 18,507 4,219 42,871 833,314

Note 7C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2013-14)

NOTES TO THE FINANCIAL STATEMENTS

113 CRDC Financial Statements 2013-2014

Land Buildings

Total

land and buildings

Office

equipment Computer equipment Fittings &

furniture

Total other property, plant & equipment Total

$ $ $ $ $ $ $ $

As at 1 July 2012

Gross book value 180,000 510,000 690,000 56,812 75,089 12,598 144,499 834,499

Accumulated depreciation and impairment - - (18,945) (33,490) (6,766) (59,201) (59,201) Net book value 1 July 2012

180,000 510,000 690,000 37,867 41,599 5,832 85,298 775,298

Additions - 17,912 17,912 3,990 2,939 - 6,929 24,841

Revaluations recognised in other comprehensive income

- - - - -

Depreciation expense

(13,500) (13,500) (10,238) (14,809) (1,261) (26,308) (39,808)

Reclassification: - - - - - - -

Disposals:

Gross book value - - - (750) - - (750) (750)

Accumulated depreciation and impairment - - - 13 - - 13 13

Net book value 30 June 2013

180,000 514,412 694,412 30,882 29,729 4,571 65,182 759,594

Net book value as of 30 June 2013 represented by:

Gross book value 180,000 527,912 707,912 60,052 78,027 12,598 150,677 858,589

Accumulated depreciation and impairment (13,500) (13,500) (29,170) (48,298) (8,027) (85,495) (98,995)

180,000 514,412 694,412 30,882 29,729 4,571 65,182 759,594

Note 7C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2013-14)

NOTES TO THE FINANCIAL STATEMENTS

114 CRDC Financial Statements 2013-2014

Note 7D: Intangibles

Computer software:

Purchased & internally developed software 237,901 143,832

Accumulated amortisation (145,619) (126,247)

Total intangibles 92,282 17,585

No indicators of impairment were found for intangible assets. No intangibles are expected to be sold or disposed of within the next 12 months.

Note 7E: Reconciliation of the Opening and Closing Balances of Intangibles Computer software purchased

Computer software purchased

As at 1 July

Gross book value 143,832 122,465

Accumulated amortisation and impairment (126,247) (118,590)

Net book value 1 July 17,585 3,875

Additions 94,069 21,367

Amortisation (19,372) (7,657)

Net book value 30 June 92,282 17,585

Net book value as of 30 June represented by:

Gross book value 237,901 143,832

Accumulated amortisation and impairment (145,619) (126,247)

92,282 17,585

Note 7F: Other Non-Financial Assets

Prepayments 4,205 -

Total other non-financial assets 4,205 -

Total other non-financial assets - are expected to be recovered in:

No more than 12 months 4,205 -

More than 12 months - -

Total other non-financial assets 4,205 -

Non-financial assets are expected to be recovered in no more than 12 months. No indicators of impairment were found for other non-financial assets.

2014 $

2013 $

NOTES TO THE FINANCIAL STATEMENTS

115 CRDC Financial Statements 2013-2014

2014 $

2013 $

Note 8: Payables Note 8A: Suppliers

Trade creditors and accruals 96,137 161,613

Total supplier payables 96,137 161,613

Supplier payables expected to be settled within 12 months:

Related entities 1,840 3,289

External entities 94,297 158,324

Total 96,137 161,613

Settlement was usually made within 30 days.

Note 8B: Grants, Subsidies and Personal Benefits

Grants:

Public sector:

Australian Government entities (related entities) 484,172 1,333,484

State and Territory Governments 1,774,454 2,568,362

Universities and colleges 973,776 1,079,852

Other research organisations 200,997 540,962

Private sector:

Other 853,335 747,534

Total grants 4,286,734 6,270,194

Total grants, subsidies and personal benefits are expected to be settled in:

No more than 12 months 4,286,734 6,270,194

More than 12 months - -

Total grants, subsidies and personal benefits 4,286,734 6,270,194

Settlement was usually made according to the terms and conditions of each grant. This was usually within 30 days of performance or eligibility.

NOTES TO THE FINANCIAL STATEMENTS

116 CRDC Financial Statements 2013-2014

2014 $

2013 $

Note 8C: Other Payables

Salaries and wages 39,900 39,556

Superannuation 4,466 4,491

PAYG & FBT 48,989 45,170

State payroll tax 6,051 6,658

Other - 115

Total other payables 99,406 95,990

Total other payables are expected to be settled in:

No more than 12 months 99,406 95,990

More than 12 months - -

Total other payables 99,406 95,990

Note 9: Provisions Note 9A: Employee Provisions

Leave 310,337 341,754

Total employee provisions 310,337 341,754

Employee provisions are expected to be settled in:

No more than 12 months 179,712 218,701

More than 12 months 130,625 123,053

Total employee provisions 310,337 341,754

NOTES TO THE FINANCIAL STATEMENTS

117 CRDC Financial Statements 2013-2014

2014 $

2013 $

Note 10: Cash Flow Reconciliation Reconciliation of cash and cash equivalents as per Statement of Financial Position to Cash Flow Statement

Cash and cash equivalents as per:

Cash flow statement 11,098,065 12,260,782

Statement of financial position 11,098,065 12,260,782

Difference - -

Reconciliation of net cost of services to net cash from operating activities:

Net cost of services (16,659,620) (11,709,651)

Add revenue from Government 22,216,026 23,323,884

Adjustments for non-cash items

Depreciation / amortisation 62,756 47,464

Net write down of non-financial assets - 737

Movements in assets / liabilities

Assets

(Increase) / decrease in net receivables (489,564) (1,281,573)

(Increase) / decrease in prepayments (4,205) 7,965

Liabilities

Increase / (decrease) in employee provisions (31,417) 111,531

Increase / (decrease) in employee withholdings 3,779 14,559

Increase / (decrease) in supplier payables (65,473) 70,785

Increase / (decrease) in other payable (365) 21,969

Increase / (decrease) in grants payable (1,983,462) 2,585,450

Increase / (decrease) in novation payable - (91,196)

Net cash from operating activities 3,048,455 13,101,924

NOTES TO THE FINANCIAL STATEMENTS

118 CRDC Financial Statements 2013-2014

Note 11: Contingent Assets and Liabilities The Corporation had no contingent assets and liabilities in the current or prior period.

Significant Remote Contingencies

Commonwealth Contributions The Cotton Research and Development Corporation was established under the Primary Industries Research and Development Act, 1989. This Act states the Commonwealth government will make payments to the Corporation equal to one half of the Corporation’s annual expenditure. However, government matching payments must not exceed industry levy receipts nor exceed 0.5% of the amount that the Minister determines to be the gross value of production (GVP) for that financial year. In 2013-14 Commonwealth contributions were capped to levy receipts of $11,238,950, leaving a remote contingent receivable of $4.581m for unmatched R&D expenditure.

Note 12: Directors Remuneration The number of non-executive directors of the entity included in these figures are shown below in the relevant remuneration bands:

$0 to $29,999 6 6

$30,000 to $59,999 1 1

Total 7 7

Total remuneration received or due and receivable by directors of the entity $172,399 $179,796

The number of non-executive directors includes directors that ceased to be directors or were appointed as directors during the year.

Remuneration of executive directors is included in Note 14: Senior Executive Remuneration.

Note 13: Related Party Disclosures Grants were made to a number of research institutions which are director related entities. They were approved under the normal terms and conditions of the Corporation. Following full disclosure of their relevant interests, the relevant Directors may or may not take part in discussion and abstain from decisions of the Board.

Grants to Director-Related Entities

2014 $

2013 $

Primary Industries Education Foundation - 25,000

Plant Biosecurity CRC 3,027 -

Grants to director-related entities 3,027 25,000

2014 No.

2013 No.

NOTES TO THE FINANCIAL STATEMENTS

119 CRDC Financial Statements 2013-2014

Note 14: Senior Executive Remuneration Note 14A: Senior Executive Remuneration Expense for the Reporting Period

Short-term employee benefits:

Salary 515,475 500,077

Annual leave accrued 45,231 44,311

Other1 21,118 18,550

Total short-term employee benefits 581,824 562,938

Post-employment benefits:

Superannuation 63,375 59,437

Total post-employment benefits 63,375 59,437

Other long-term benefits:

Long-service leave (56,308) 7,521

Total other long-term benefits (56,308) 7,521

Total 588,891 629,896

Notes:

1. Other includes motor vehicle benefits, other benefits and fringe benefit tax on those benefits.

2. Note 14A was prepared on an accrual basis.

3. Note 14A excludes acting arrangements and part-year service where remuneration expensed for a senior executive was less than $195,000.

2014 $

2013 $

NOTES TO THE FINANCIAL STATEMENTS

120 CRDC Financial Statements 2013-2014

Note 14B: Average Annual Reportable Remuneration Paid to Substantive Senior Executives during the Reporting Period

as at 30 June 2014

Fixed elements

Average annual reportable remuneration1

Senior

Executives No.

Reportable salary2 $

Contributed superannuation3 $

Reportable allowances4 $

Total

remuneration $

Total remuneration (including part-time arrangements):

less than $195,000 4 135,362 15,877 - 151,239

$255,000 to $284,999 1 236,062 20,851 - 256,913

Total 5

as at 30 June 2013

Fixed elements

Average annual reportable remuneration1 Senior Executives

No.

Reportable salary2 $

Contributed superannuation3 $

Reportable allowances4 $

Total

remuneration $

Total remuneration (including part-time arrangements):

less than $195,000 3 125,007 15,285 - 140,292

$225,000 to $254,999 1 229,088 19,809 - 248,897

Total 4

Notes:

1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.

2. ‘Reportable salary’ includes the following: a) gross payments (the Corporation currently does not provide bonuses); and b) reportable fringe benefits (at the net amount prior to ‘grossing up’ to account for tax benefits).

3. The ‘contributed superannuation’ amount is the average cost to the entity for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period.

4. ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries.

5. Various salary sacrifice arrangements were available to senior executives including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are reported in the ‘reportable salary’ column, excluding salary sacrificed superannuation, which is reported in the ‘contributed superannuation’ column.

6. For the purposes of this note, the Authority has defined senior executives as those employees who report directly to the Board and Executive Director. These employees are the only employees considered to have the capacity and responsibility for decision making that can have a significant and direct impact on the strategic direction and financial performance of the group. The Executive Director and General Managers of the Corporation are classified as senior executives and are disclosed in sections A and B of this note.

Note 14C: Average Annual Reportable Remuneration Paid to Other Highly Paid Staff during the Reporting Period

The Corporation did not employ any highly paid staff.

NOTES TO THE FINANCIAL STATEMENTS

121 CRDC Financial Statements 2013-2014

2014 2013

Note 15: Average Staffing Levels The average staffing levels for the Corporation during the year were: 13.0 12.6

2014 $

2013 $

Note 16: Remuneration of Auditors Financial statement audit services were provided to the Corporation by the Auditor General.

Fair value of the services provided: 16,500 13,500

Total 16,500 13,500

No other services were provided by the auditors of the financial statements.

Note 17: Financial Instruments Note 17A: Categories of Financial Instruments

Financial Assets

Loans and receivables:

Cash and cash equivalents 11,098,065 12,260,782

Trade and other receivables 67,231 768,007

Carrying amount of financial assets 11,165,296 13,028,789

Financial Liabilities

At amortised cost:

Grants payable 4,286,734 6,270,194

Other payables 96,137 161,613

Carrying amount of financial liabilities 4,382,871 6,431,807

Note 17B: Net Income and Expense from Financial Assets

Loans and receivables

Interest revenue 1,778,946 1,725,869

Net gain from financial assets 1,778,946 1,725,869

NOTES TO THE FINANCIAL STATEMENTS

122 CRDC Financial Statements 2013-2014

Note 17C: Fair Value of Financial Instruments

Carrying amount 2014 $

Fair value 2014 $

Carrying amount 2013 $

Fair value 2013 $

Financial Assets

Cash and cash equivalents 11,098,065 11,098,065 12,260,782 12,260,782

Trade and other receivables 67,231 67,231 768,007 768,007

Total 11,165,296 11,165,296 13,028,789 13,028,789

Financial Liabilities

Grants payable 4,286,734 4,286,734 6,270,194 6,270,194

Other payables 96,137 96,137 161,613 161,613

Total 4,382,871 4,382,871 6,431,807 6,431,807

The Corporation’s financial assets and financial liabilities comprise cash and deposits held at banks, current receivables and current liabilities. It is held that their carrying amount and fair value are the same.

Note 17D: Credit Risk

The Corporation’s maximum exposure to credit risk is the risk that arises from the potential default of a debtor. This amount is equal to the total amount of trade receivables (2014: $67,231 and 2013: $768,007). The Corporation has assessed that there is no risk of default and has not recognised an impairment allowance account.

The Corporation manages its credit risk through monthly reviews by management of the Corporation’s investments and the use of policies and procedures that guide employees in managing debtors.

The Corporation holds no collateral to mitigate against credit risk.

Credit quality of financial instruments not past due or individually determined as impaired

Not past due nor impaired Not past due nor impaired

Past due or impaired Past due or impaired

2014 $

2013 $

2014 $

2013 $

Cash and cash equivalents 11,098,065 12,260,782 - -

Trade and other receivables 64,856 737,707 2,375 30,300

Total 11,162,921 12,998,489 2,375 30,300

NOTES TO THE FINANCIAL STATEMENTS

123 CRDC Financial Statements 2013-2014

Ageing of financial assets that were past due but not impaired for 2014

0 to 30 days $ 31 to 60 days $

61 to 90 days $ 90+ days $

Total $

Trade and other receivables 1,000 - - 1,375 2,375

Total 1,000 - - 1,375 2,375

Ageing of financial assets that were past due but not impaired for 2013

0 to 30 days $ 31 to 60 days $

61 to 90 days $

90+ days $

Total $

Trade and other receivables 350 - - 29,950 30,300

Total 350 - - 29,950 30,300

The following list of assets have been individually assessed as impaired

The Corporation’s receivables overdue are not impaired as the majority relate to grant refunds due from government entities and the grants have not been finalised.

Note 17E: Liquidity Risk

The Corporation’s financial liabilities are payables. The exposure to liquidity risk is based on the notion that the Corporation will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to the internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

Maturities for non-derivative financial liabilities 2014

On demand $ within 1 year $

1 to 5 years $

> 5 years $

Total $

Grants payable - 4,286,734 - - 4,286,734

Other payables - 96,137 - - 96,137

Total - 4,382,871 - - 4,382,871

Maturities for non-derivative financial liabilities 2013

On demand $ within 1 year $

1 to 5 years $

> 5 years $

Total $

Grants payable - 6,270,194 - - 6,270,194

Other payables - 161,613 - - 161,613

Total - 6,431,807 - - 6,431,807

The Corporation manages its finances to ensure it has adequate funds to meet payments as they fall due. In addition, the Corporation has policies in place to ensure timely payments are made when due and has no past experience of default.

The Corporation has no derivative financial liabilities in both the current and prior year.

NOTES TO THE FINANCIAL STATEMENTS

124 CRDC Financial Statements 2013-2014

Note 17F: Market Risk

The Corporation holds basic financial instruments that do not expose it to certain market risks. The Corporation is not exposed to ‘currency risk’ or ‘other price risk’.

Interest Rate Risk

The only interest-bearing items on the statement of financial position are the ‘Cash and cash equivalents’. Cash at bank has variable interest rates and term deposits have fixed interest. Interest will fluctuate due to changes in the market interest rate. The interest rate risk does not have any impact on the fair value of the ‘Cash and cash equivalents’.

Interest rates for cash held at banks in operating accounts and at call accounts ranged from 0% to 3.0% as at 30th June 2014. Term deposit fixed interest rates during the year decreased from a high of 5.10% down to 3.74%. Interest rates on term deposits held at the end of the year ranges from 3.80% to 4.62%. Although Australian interest rates are at record lows it is expected there will continue to be downward pressure on interest rates due to volatility in the world economy continuing to effect the Australian economy. The sensitivity analysis has used 60 basis points as a reasonable representation of the continued volatility in the economy.

Sensitivity analysis of the risk that the entity is exposed to for 2014

Change in risk variable %

Effect on

Risk variable

Profit and loss $

Equity $

Interest rate risk Interest +0.60% 291,939 291,939

Interest rate risk Interest -0.60% (291,939) (291,939)

Sensitivity analysis of the risk that the entity is exposed to for 2013

Change in risk variable %

Effect on

Risk variable

Profit and loss $

Equity $

Interest rate risk Interest +1.20% 465,519 465,519

Interest rate risk Interest -1.20% (465,519) (465,519)

NOTES TO THE FINANCIAL STATEMENTS

125 CRDC Financial Statements 2013-2014

Note 18: Reporting of Outcomes The Corporation is structured to meet one outcome:

“Adoption of innovation that leads to increased productivity, competitiveness and environmental sustainability through investment in research and development that benefits the Australian cotton industry and the wider community.”

Note 18A: Net Cost of Outcome Delivery

Outcome 1

2014 $

2013 $

Expenses 21,922,966 19,301,446

Income from non-government sector

Industry Contributions 10,977,077 11,801,096

Royalties 1,830,006 3,971,210

Interest 1,778,946 1,725,869

Other 1,654,394 1,894,716

Total 16,240,423 19,392,891

Other own-source income - -

Net cost/(contribution) of outcome delivery 5,682,543 (91,445)

NOTES TO THE FINANCIAL STATEMENTS

126

CRDC-supported PhD student Kate Marshall, NSW DPI, examines a helicoverpa moth at the Australian Cotton Research Institute, Narrabri during CRDC’s PhD tour. Kate is researching molecular genetic methods to detect neonicotinoid resistance in cotton aphids. Photo courtesy Ruth Redfern.

Section 7 Appendices

Appendix 1: Measuring Performance

Appendix 2: Australian Government Priorities

Appendix 3: Environmental Performance

Appendix 4: RD&E portfolio

Appendix 5: Glossary and Acronyms

Appendix 6: Annual Report list of requirements

APPENDICES

127 CRDC Annual Report 2013-2014

APPENDIX 1: Measuring Performance Through focusing on CRDC’s five programs: farmers, customers, industry, people and performance - CRDC will strive to achieve its stated outcome of “Adoption of innovation that leads to increased productivity, competitiveness and environmental sustainability through investment in research and development that benefits the Australian cotton industry and the wider community”.

The CRDC continues to monitor, evaluate and report on the achievement of all program key performance indicators by submitting Portfolio Budget Statements (PBS) and annual reporting.

Portfolio Budget Statement performance indicators

The following deliverables and Key Performance Indicators (KPIs) formed part of CRDC’s Portfolio Budget Statement for 2013-14.

Deliverables 2013-14

„ Cotton is profitable and consistently farmers crop of choice.

„ The Australian cotton industry is the global leader in sustainable agriculture.

„ The Australian cotton industry captures the full value of its products.

„ Capable and connected people driving the cotton industry.

„ Measured performance of the Australian cotton industry and its RD&E drives continuous improvement.

Key Performance Indicators

KPI 2013-14 Measure of Success

Industry productivity growth per hectare per annum. 3 per cent In progress. Average production per hectare has continued to increase annually by 2.5 to 3 percent (averaged over the

past five years).

Industry reports to customer needs for sustainability indicators. 95 per cent In progress. Forty-five recognised sustainability indicators have been developed for the cotton industry under the

key aspects of economic, environment and social. The industry’s first ever sustainability report is currently under development and due for public release in late 2014.

Coverage of Best Management Practice systems across Australian cotton industry.

65 per cent In progress. CRDC and Cotton Australia are partners in the Best Management Practice program myBMP. The myBMP program comprises of 11 modules which cover areas of production and farm business operations. Adoption of myBMP is supported by linking with the industry’s joint extension program CottonInfo.

* Agriculture Senior Officials Committee’s (AgSOC) cotton and cross-sectoral Research Development and Extension (RD&E) strategies supported.

Report In progress. CRDC continues to support cross-sectoral priorities and strategies such as climate change, soils, plant biosecurity and water use through the delivery of the Cotton Sector RD&E Strategy and CRDC’s Strategic R&D Plan.

* During 2013-2014 the Primary Industries Standing Committee (PISC) was replaced by the Agriculture Senior Officials Committee (AgSOC).

APPENDICES

128 CRDC Annual Report 2013-2014

APPENDIX 1: Measuring Performance (continued)

CRDC Strategic R&D Plan progress during 2013-14

Program One: Farmers

Will be achieved by: Measure of success Progress

Theme: Successful Crop Protection

Outcome: Cotton Crops protected from pest, weed and disease threats

Monitoring and investigating the ecological behaviours and responses of cotton pest, weeds and diseases.

World-class science foundations for managing ecological adaptations in cotton insect pests, weeds and diseases.

In progress. Understanding the ecology of cotton pests (insect, weed and pathogens) is the focus of 10 projects, including three PhDs and two Post Doctorial positions. This information ensures a strong scientific basis for development of best practice and is the foundation for integrated pest, weed and disease management.

Testing practices that deliver improved management of insect pests, weeds and diseases.

85% of farmers adopting improved practices that reduce the reliance on pesticide inputs.

In progress. Current investments are aimed at developing and testing new and novel products and practices to improve insect pest, weed and disease management. New thresholds and tactics have been developed for a number of emerging insect pests, weeds and diseases. A number of innovative crop monitoring technologies and bio-pesticides are under development and are likely to significantly change the reliance on pesticides inputs.

High adoption of insect best practice has seen total insecticide active applied (g/ha) continue to decrease, with a 90 per cent reduction over the last decade.

Improving capacity, knowledge and adoption of techniques to successfully protect the cotton crop.

50% of farmers adopting improved practices that reduce the incidence of insect pests, weeds and diseases affecting cotton on their farm.

In progress. The ecology and best practice recommendations developed by research are packaged and communicated to industry through investment in the CottonInfo partnership.

APPENDICES

129 CRDC Annual Report 2013-2014

Program One: Farmers

Will be achieved by: Measure of success Progress

Theme: Productive Resource Efficiencies

Outcome: Inputs for cotton production are optimised

Delivering benchmarks of on-farm resource use efficiencies.

Farmers are able to increase their productivity:

„ per hectare of land.

„ per unit of nitrogen

fertiliser.

„ per ML of water.

„ per unit of CO2 emitted.

In progress. Two projects are specifically providing benchmarks of on-farm resource use efficiencies regarding water and energy use. The Australian cotton industry has used values of Gross Production Water Use Index (GPWUIfarm) to benchmark water use efficiency since 1988-89 and in the 2012-13 season, which saw record planting and full production, the GPWUI farm was 1.12 bales/ML.

This is not significantly different from the past two surveys GPWUIfarm for 2006-07 and 2008-09 were 1.17 and 1.14 bales/ML respectively indicating the cotton industry is performing as water efficient in years of full production. Regarding energy, a Federal grant is being utilised to benchmark energy efficiency on farms, the results of which will be available in 2015.

Developing and proving decision systems and practices that deliver optimal resource efficiencies on cotton farms.

Farmers are able to increase their productivity:

„ per hectare of land.

„ per unit of nitrogen

fertiliser.

„ per ML of water

„ per unit of CO2 emitted.

In progress. A number of projects continue to investigate nitrogen, in particular looking at developing a comprehensive understanding of the:

„ Nitrogen requirements of high-yielding cotton

crops.

„ Nitrogen loss pathways associated with each

stage of the cotton farming system.

Research is also on-going into phosphorous and potassium nutrition, and managing carbon in a cotton farming system.

The latter research has demonstrated the potential for a range of benefits by incorporating a corn rotation, such as:

„ Increased yield of cotton in the crop following

corn.

„ Higher levels of soil carbon (especially at depth

i.e. 60-120 cm).

„ Increased cotton root densities and rooting

depth.

„ A decrease in black root rot infestation.

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130 CRDC Annual Report 2013-2014

APPENDIX 1: Measuring Performance (continued)

Program One: Farmers

Will be achieved by: Measure of success Progress

Developing new systems and tools to support farm decision making processes.

Farmers are able to increase their productivity:

„ per hectare of land.

„ per unit of nitrogen

fertiliser.

„ per ML of water

„ per unit of CO2 emitted.

In progress. Current irrigation projects have led to advances in the optimisation and automation of irrigation applications.

Remote sensing and satellite imagery can now be used as indicators of crop stress and spatial variability - and the industry is close to fully understanding how weather forecasts and canopy temperature sensors can be used to refine scheduling decisions.

The development of a control system for variable rate irrigation application, and software that sequences irrigations and controls the communications between the system components, brings the industry close to smart automated furrow irrigation.

Improving capacity, knowledge and adoption of techniques to optimise resource uses.

Farmers are able to increase their productivity:

„ per hectare of land.

„ per unit of nitrogen

fertiliser.

„ per ML of water.

„ per unit of CO2 emitted.

In progress. CRDC is supporting the enhancement of a crop carbon management tool. The tool allows farmers to better understand the source and extent of greenhouse gas emissions from their cotton farm, and how to reduce them by improving their farming efficiency.

Theme: Profitable Futures

Outcome: Innovations in cotton production

Investigating the application of new technologies and different scientific approaches which have the potential to deliver significant improvements and economic returns to the cotton farming system.

Farmers are profitable:

„ On farm innovations and

partnerships established to drive profitability.

„ Improving gross

margins for Australian cotton systems.

In progress. CRDC is developing a futures based program to ensure the industry has research underway to meet its needs for a 15-20 year horizon.

The objective of the profitable futures theme is to increase cotton producer profitability through improved productivity and certainty of production.

The targets for the profitable futures theme are:

„ Doubling input efficiency by 2029.

„ Reducing per hectare volatility of yield

by half by 2029.

„ Reducing per bale volatility of quality grade

by half by 2029.

„ By 2029 Australian cotton production is resilient

to seasonal impacts and can consistently produce the world’s best quality cotton in increasing quantity.

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131 CRDC Annual Report 2013-2014

Program Two: Industry

Will be achieved by: Measure of success Progress

Theme: Respected stewardship

Outcome: Industry protects its production technologies and its biosecurity

Monitoring for and investigating changes in pest and weed susceptibility to biotechnologies and crop protection products used by the cotton industry.

Industry is able to maintain access to, and the effectiveness of, biotechnologies and crop protection products.

In progress. Current investments include monitoring for resistance to conventional insecticides/mitricides in aphids, mites, silverleaf whitefly and Helicoverpa spp, as well monitoring Helicoverpa spp for resistance to Cry1Ac, Cry2Ab and VIP proteins.

Exploring tactics and strategies that lower the risks of pesticides to the environment and resistance evolution in populations of key insect pests and weeds.

100% of farmers are aware of the underlying risks of trait and agricultural chemical resistance.

100% of insecticide use decisions are consistent with the Insecticide Resistance Management Strategy (IRMS).

The cotton industry demonstrates pesticide management practices that lower the risks posed to the environment and the evolution of resistance in target insect pest and weed populations.

In progress. There is a high level of awareness of the risks of trait and agricultural chemical resistance.

The 2013 Growing Practices Survey found 83 per cent of growers agreed that all their insecticide use decisions were consistent with the IRMS.

Herbicide resistance has been identified as a significant emerging issue. Investments have been made in identifying practices to reduce the risk of herbicide resistance including development of a herbicide resistance management strategy.

Developing and supporting the industry’s capacity to effectively steward key technologies and products.

The cotton industry has the necessary science to provide informed input into the development of resistance management plans for biotech traits.

In progress. The range of research investment into determining an effective Resistance Management Plan (RMP) for third generation transgenic cotton includes:

„ Efficacy and expression characteristics

of the toxins contained in Bollgard III®.

„ Reviewing the effectiveness of key tactics

in the current RMP, Helicoverpa spp ecology.

„ Examining resistance levels and characteristics.

This science has been used by the Transgenic and Insect Management Strategy (TIMS) Bt Technical Panel, to provide advice to industry on the development of the RMP for the third generation Bt technology.

APPENDICES

132 CRDC Annual Report 2013-2014

APPENDIX 1: Measuring Performance (continued)

Program Two: Industry

Will be achieved by: Measure of success Progress

Supporting the industry’s preparedness and ability to deal with biosecurity threats.

Industry is capable of managing its biosecurity responsibilities:

„ The cotton industry

is able to meet its biosecurity obligations.

„ The cotton industry is

prepared to effectively respond to biosecurity incursions.

In progress. Investment in biosecurity research and diagnostic capacity has resulted in surveillance and diagnostic capacity within existing CRDC funded disease projects for each of the six priority disease threats.

Biosecurity awareness is promoted through industry publications and through the CottonInfo team.

Theme: Responsible Landscape Management

Outcome: Industry leads in managing natural assets

Defining the values and drivers relating to the management of natural landscapes and systems in cotton growing regions.

Industry participation in the collective management of natural landscapes:

„ Regional delivery

partnership for every major cotton growing region.

In progress. A project titled Resilience assessment of the Australian cotton industry at multiple scales has commenced.

This project proposes using a resilience assessment approach to assist the cotton industry to develop a whole-of-system perspective that incorporates the economic, social and ecological dimensions of the industry, how these interact, influence each other and change over time.

Of particular importance is how the industry copes in the face of major expected and unexpected future changes and events (or shocks) such as droughts or market fluctuations.

Recording and demonstrating improved environmental performance of the cotton industry.

Industry contributes to the improvement of landscape systems knowledge and science:

„ A comprehensive

database documenting the extent and condition of the natural assets the industry utilises and manages.

In progress. The first Australian Grown Cotton Sustainability Report has compiled all data documenting the progress and status of a set of environmental indicators shortlisted for and by the cotton industry. It has also identified gaps for further investigation.

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133 CRDC Annual Report 2013-2014

Program Two: Industry

Will be achieved by: Measure of success Progress

Identifying and proving integrated management strategies which deliver environmental and productivity gains.

Recognition by national and global initiatives for biodiversity management.

In progress. The current investments underway will provide knowledge to use trees to arrest lateral saline water movement, boost the carbon footprint of cotton farms, and keep pest thresholds lower for longer.

A NRM Technical Specialist will deliver these innovative management strategies through myBMP and the CottonInfo platforms.

Researching the connectivity between cotton farms and natural systems in the landscape.

One million hectares of floodplain vegetation managed under best practice.

In progress. The current investments provide knowledge for key environmental assets in cotton landscapes - riparian vegetation, deep drainage, groundwater and ecosystem services.

Supporting initiatives and partnerships to improve the knowledge and capacity to manage natural landscapes and systems in cotton regions.

Two national based science based collaborations for the industry to inform surface and groundwater management.

In progress. Science partnerships remain a work in progress as research and NRM funding programs are uncertain at a state and national level.

Theme: Sustainable Futures

Outcome: An industry achieving its vision

Scoping and investigating critical threats and opportunities which may influence the long term sustainability of the Australian cotton industry.

Industry is capable of leading and adapting to change.

In progress. CRDC is developing a futures based program to ensure the industry has research underway to meet its needs for a 15-20 year horizon.

The objective of the sustainable futures theme is to achieve an increasingly resilient and responsible cotton industry.

The targets for the sustainable theme program are:

„ Cotton industry is minimally reliant on irrigation

for production by 2029.

„ Australian Cotton Industry is carbon neutral

by 2029.

„ Industry participation is more inclusive and

diverse by 2018.

„ Industry collaborates on strategic issues in more

respectful, open and creative ways by 2018.

„ Measured performance of the industry drives

continuous improvement by 2018.

„ Every bale of cotton is traceable back to origin

by 2018.

Supporting Innovative approaches to solve traditional industry issues and drive future sustainability.

Innovations and partnerships established to drive cotton industry sustainability.

APPENDICES

134 CRDC Annual Report 2013-2014

APPENDIX 1: Measuring Performance (continued)

Program Three: Customers

Will be achieved by: Measure of success Progress

Strategic theme: Assured Cotton

Outcome: The integrity and qualities of Australian cotton set global benchmarks for customers

Improving Australian fibre quality testing standards and procedures and the capacity to measure and manage contamination.

Australia has the best ranking for non-contamination in The International Textile Manufacturers Federation (TMF) survey.

In progress. Two projects have been initiated to further improve the non-contamination and quality status of Australian cotton, looking at minimising plastic contamination and improving moisture management in the round-module harvester system.

Work investigating how to best measure and manage fibre elongation is on-going.

Supporting the development and implementation of post farm gate BMP’s.

Customers recognise and use Australia’s BMP standards as their guarantee of quality assurance.

In progress. CRDC continues to support the training of cotton ginners and the investigation of how farm management and ginning practices influence fibre quality.

The myBMP program has been recognised by the Better Cotton Initiative so certified myBMP cotton can be sold as Better Cotton.

Developing and implementing a standardised reporting system for Australian cotton product quality and traceability.

Australia uses standardised reporting systems for product quality and traceability for farmers industry and customers.

In progress. A project has been initiated to determine whether the geographic origin of cotton lint can be objectively identified, and terms of reference to investigate options for enhancing the retrospective traceability of cotton have been developed.

Benchmarking Australian cotton against key international programs for product stewardship and sustainability.

Australia can respond to customer needs for reporting against sustainability indicators.

In progress. Sustainability indicators for Australian cotton farming have been developed, which were informed by international initiatives, including the Better Cotton Initiative and the International Cotton Advisory Committee’s Expert Panel on the Social, Economic and Environmental impact of cotton.

APPENDICES

135 CRDC Annual Report 2013-2014

Program Three: Customers

Will be achieved by: Measure of success Progress

Theme: Differentiated Products

Outcome: Customers recognise the differentiated value of Australian cotton products

Identifying opportunities for improvements in fibre quality and cotton products.

Customers value the qualities of Australian cotton. In progress. Collaborations have been established with six spinning mills to test CottonSpec, and with

eight mills (under the Premium Cotton Initiative) to produce high quality yarns and fabrics from Australian cotton.

Demonstrating the value of different fibre classes and defining fibre quality parameters that secure a premium market.

New fibre classification systems established. In progress. A project investigating novel spinning technologies to produce fine and high-quality yarns

from Australian cotton has been initiated.

Research has demonstrated that Australian Long Staple cotton is a viable replacement for a proportion of extra-long staple yarn in high quality fabrics.

Developing customer based partnerships for the development of high value and novel products, which differentiate Australian cotton.

Partnerships established to demonstrate the potential for differentiating Australian cotton.

In progress. A collaborative project with the integrated spinning mill Esquel Limited is developing novel cotton/wool fabrics.

Theme: Competitive Futures

Outcome: The demand for Australian cotton products is positively transformed

Investigating existing and future markets for Australian cotton and communicate these findings to the Australian cotton industry.

Customers continue to demand Australian cotton products:

„ Provide the Australian

cotton industry with knowledge of fabric innovations and future market opportunities.

In progress. CRDC is developing a futures based program to ensure the industry has research underway to meet its needs for a 15-20 year horizon.

The objective of the competitive futures theme is to capture increased value through supply chain transformation and development of new products and markets.

The targets for the competitive futures theme are:

„ Reduce the length and complexity of the supply

chain to add $1 billion of value to the Australian cotton industry by 2029.

„ Explore, identify and realise new end uses

of cotton to add $2 billion of value to the Australian cotton industry by 2029.

„ Develop systems and capability to extract

value for the Australian cotton industry from its information assets by 2018.

APPENDICES

136 CRDC Annual Report 2013-2014

APPENDIX 1: Measuring Performance (continued)

Program Three: Customers

Will be achieved by: Measure of success Progress

Facilitating the development of new technologies and systems to improve the competitiveness of Australian cotton.

Development of alternative and high value cotton products.

In progress. A number of projects have been initiated that are aiming to develop new technologies to add value to cotton products, including: new finishes for anti-wetting, self-sterilising cotton fabrics, and ever-dry self-cooling cotton fabrics.

Program Four: People

Will be achieved by: Measure of success Progress

Theme: Workforce Capacity

Outcome: A skilled, educated and progressive industry workforce

Investigating effective strategies for attracting, developing and retaining people in cotton.

Opportunities for workforce development are demanded by industry.

In progress. CRDC has three investment projects to support this objective: One research project with University of Melbourne and two PhD projects with University of Southern Queensland.

Collectively these projects are contributing to the development of a whole of industry workforce development strategy.

Supporting initiatives which lead to the continuous improvement of human resource management including on-farm Workplace Health and Safety.

A 10% reduction in cotton farm related injuries by 2018.

In progress. CRDC currently has two investment projects aimed at addressing on farm health and safety with University of Sydney and Australian Centre for Agricultural Health and Safety.

These projects have delivered a profile of incidents occurring on cotton farms and are developing campaigns to increase awareness and tactics to address specific incidents (such as r oll over protection for Quad bikes).

CRDC has co-invested with other RDC’s in the People in Ag program, as well as in the myBMP Human Resource Management (HRM) module update, to ensure that growers are able to access best practice HRM information.

Understanding opportunities for greater Aboriginal participation in cotton and partnering with organisations to support the development of a culturally aware cotton workforce.

Opportunities for learning are demanded by industry. In progress. CRDC currently supports student workplace scholarships through the Aboriginal

Employment Strategy and has provision for the support for an additional two placements.

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137 CRDC Annual Report 2013-2014

Program Four: People

Will be achieved by: Measure of success Progress

Supporting educational opportunities which increase the skills and knowledge of current workforces and will meet the needs of future workforces.

„ 50 Horizon scholars by

2018.

„ 30 completed summer

scholarships by 2018.

„ 300 students having

completed the UNE Cotton Course by 2018.

„ On-farm skill

development

„ 50 Cotton farmers

awarded a new Diploma in Human Resources by 2018.

In progress. In 2013-14 CRDC supported an additional five summer and honours scholarships and five Horizon Scholarships through RIRDC - taking the total number of Horizon scholars to 13.

CRDC also invested in 14 new PhD scholarships during the 2013-14 year, taking the total number of PhD scholars supported by CRDC to 26.

An additional 68 students enrolled in the UNE Cotton production course supported by CRDC in 2013-14, while initiatives to support on-farm skill development and a new Human Resource Management Diploma continue to be developed.

Creating opportunities for, and supporting the development of leadership skills.

Participation in leadership programs. In progress. CRDC is a significant supporter of the Future Cotton Leaders program, which attracted 15

participants in 2013-14 with the course due to finish in December 2014.

CRDC also supported a Nuffield scholar, two participants in the Australian Rural leadership Program and a participant in the Peter Cullen Trust.

Theme: Networks

Outcome: An industry connected by dynamic networks

Establishing and empowering creative forums and initiatives which build relationships.

„ Ten conferences and

forums are coordinated which promote industry, cross sectoral and community knowledge sharing.

In progress. CRDC supported the Inaugural Association of Cotton Scientists Research Conference and is an active participant in the cross RDC

collaborative forums held biannually.

Additionally CRDC supported numerous industry and technical forums throughout 2013-14.

Supporting and participating in collaborative cross sectoral RD&E initiatives.

„ CRDC is an active

member of key industry and government initiatives.

„ Agriculture Senior

Officials Committee (AgSOC) cotton and cross sectoral strategies.

In progress. CRDC participated in activities that include joint national strategic R&D planning with AgSOC, particularly in relation to climate change, soils and water, human capacity, communication and impact evaluation.

CRDC is a participant in the soils cross sectoral strategy with the Department of Agriculture and other RDC’s.

APPENDICES

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APPENDIX 1: Measuring Performance (continued)

Program Four: People

Will be achieved by: Measure of success Progress

Creating and facilitating opportunities for national and international RD&E exchange.

„ 50 Travel scholarships

are supported by 2018. In progress. CRDC supported 11 travel scholarships and scientific exchanges during 2013-14. Additionally CRDC has established relations with its US counterpart (Cotton Incorporated) and is seeking to co-invest in projects that have significance at an international scale.

Facilitating engagement with stakeholders for prioritising and capturing advice on RD&E issues.

Honing research expertise and the application of science from core research disciplines.

The cotton industry has effective collaborative structures for prioritising RD&E.

In progress. CRDC supported the activities of the grower panels, which provide advice on RD&E.

Additionally CRDC supports the activities of the Cotton Innovation Network, which is part of the AgSOC RD&E framework and was formed to help the cotton industry form strategy. The main purpose of the Cotton Innovation Network is to ensure the industry gets best value for its investment in research and establishes the best projects to achieve key outcomes.

Theme: Communication

Outcome: Stakeholder information needs are met

Providing information for demand driven communication strategies and performance reporting.

Communications systems for all CRDC stakeholders are meeting their communication needs.

In progress. CRDC invested $3.4 million in the CottonInfo joint venture during 2013-14 to assist in the development and extension of research outcomes.

As part of this investment, CRDC employed a new Communications Manager to develop systems to enhance accessibility and availability of key information for cotton growers and industry stakeholders.

Applying innovative communication methods. The information and services derived from CRDC

investments are in demand and the technologies adopted.

In progress. CRDC is currently supporting the development of a new CottonInfo website to meet grower information demands.

The website will also host interactive blogs, podcasts, and YouTube videos to enable growers to access information when they need it.

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Program Five: Performance

Will be achieved by: Measure of success Progress

Theme: Best Practice

Outcome: World’s best practice underpins the performance of the cotton industry

Supporting a best practice framework as the primary integrated planning, risk management, benchmarking, knowledge development and delivery system.

The cotton industry’s myBMP program is the primary resource for farmers accessing best practice knowledge and tools.

In progress. CRDC invests in two projects to support the achievement of this objective.

The investments have developed a centralised information repository for the storage of all extension materials and CRDC reports with appropriate metadata attached. The centralised repository is accessible through the CottonInfo, myBMP and CRDC websites, ensuring that a common set of materials is referenced and that material is stored in a single location. CRDC is also investing in a GIS referenced database.

Promoting best practices through the development and delivery Joint Venture.

„ An 80% coverage of

best management practice systems across the Australian cotton industry.

„ The cotton industry’s

myBMP program is nationally recognised and integrated with other agricultural sector best management practice programs.

In progress. As part of the CottonInfo joint venture, CRDC invests in a number of Technical Specialists whose role is to update myBMP modules, ensuring that the content of the modules reflects the latest in research findings and outcomes.

CRDC recently commissioned a review of myBMP and a number of key recommendations have been developed to ensure that myBMP continues to meet industry needs. Coverage of myBMP is 40% of the cotton industry.

Theme: Monitoring and Evaluation

Outcome: Industry and RD&E performance is captured

Developing and implementing an internal M&E framework for evaluating CRDC’s investment portfolio balance and its RD&E performance.

A rigorous monitoring and evaluation platform which measures and reports on the performance of CRDC’s research and development investments.

In progress. CRDC invested in the development of an M&E framework through Roth Rural.

The framework, being developed on a program logic basis, is close to completion and will be implemented by CRDC in 2014-15.

APPENDICES

140 CRDC Annual Report 2013-2014

APPENDIX 1: Measuring Performance (continued)

Program Five: Performance

Will be achieved by: Measure of success Progress

Conducting annual surveys to capture practice change. An industry performance monitoring and evaluation

framework that is consistent with national and international standards.

In progress. CRDC invests in two projects to assess industry performance: an annual grower practices survey and a survey conducted by Crop Consultants Australia.

These two surveys provide details of current industry practice both from a grower perspective and from consultants who provide much of the advice.

Key findings from the 2013 growers practices survey include:

„ 86% of respondents believe that cotton is

profitable and consistently their crop of choice.

„ 32% indicated they will not be able to farm

profitably into the future if recent trends in inputs costs and cotton prices continue.

„ Water and weather were the most frequently

identified limitations to productivity and profitability, followed by farm characteristics, labour, costs, finance and varieties.

The most mentioned drivers of productivity and profitability were yield and price followed by water, costs and nutrition.

Establishing a framework through which industry performance can be nationally and internationally reported.

Providing the industry with cotton sustainability indicators and supporting its capacity to report against these indicators.

In progress. CRDC invested in a project to develop sustainability indicators enabling the industry to report its performance at a national and international level. Forty-five indicators have been developed for industry and the first industry sustainability report is due for release in the latter half of 2014.

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141 CRDC Annual Report 2013-2014

Program Five: Performance

Will be achieved by: Measure of success Progress

Theme: Reviews

Outcome: Continuous improvement in industry and RD&E performance.

Undertaking scientific discipline reviews of the industry’s RD&E.

Independent reviews of the CRDC’s research and development performance.

Achieved. CRDC has undertaken a review of soil science in cotton.

Commissioning and participating in independent reviews of CRDC’s RD&E and organisational performance.

Independent reviews of the CRDC’s research and development performance.

In progress. CRDC has invested in the development of an M&E framework to enable performance monitoring of the R&D portfolio.

Commissioning independent reviews of the social, environmental and economic performance of the industry.

Independent reviews of the social, environmental and economic performance of the industry’s performance.

In progress. CRDC, in conjunction with the peak industry body Cotton Australia, has developed 45 sustainability indicators to enable to the industry to benchmark and monitor its performance against these indicators.

Participating in cross sectoral RD&E impact evaluations and reviews.

Independent reviews of the social, environmental and economic performance of the industry’s performance.

In progress. CRDC, in conjunction with the peak industry body Cotton Australia, has developed 45 sustainability indicators to enable to the industry to benchmark and monitor its performance against these indicators.

APPENDICES

142 CRDC Annual Report 2013-2014

APPENDIX 2: Australian Government Priorities National Research Priorities

The National Research Priorities (NRPs) were issued by the Australian Government in 2002, and enhanced and refined in 2003. They were being phased out by 30 June 2014 and will be replaced by new priorities in 2015.

During 2013-14 CRDC did not fund projects related to National Research Priorities A2, A6, B3, D1, D2, D4 and D5.

Priority 1 - An Environmentally Sustainable Australia

A1: Water - a critical resource

A2: Transforming existing industries

A3: Overcoming soil loss, salinity and acidity

A4: Reducing and capturing emissions in transport and energy generation

A5: Sustainable use of Australia’s biodiversity

A6: Developing deep earth resources

A7: Responding to climate change and variability

Priority 2 - Promoting and Maintaining Good Health

B1: A healthy start to life

B2: Ageing well, ageing productively

B3: Preventive healthcare

B4: Strengthening Australia’s social and economic fabric

Priority 3 - Frontier Technologies for Building and Transforming Australian Industries

C1: Breakthrough science

C2: Frontier technologies

C3: Advanced materials

C4: Smart information use

C5: Promoting an innovation culture and economy

Priority 4 - Safeguarding Australia

D1: Critical infrastructure

D2: Understanding our region and the world

D3: Protecting Australia from invasive diseases and pests

D4: Protecting Australia from terrorism and crime

D5: Transformational defence technologies

APPENDICES

143 CRDC Annual Report 2013-2014

Rural Research and Development Priorities

The Australian Government issued five revised Rural Research and Development Priorities in May 2007, and all are addressed below. During 2013-14, CRDC achieved the following outputs related to applicable priorities.

Australian Government Priorities CRDC RD&E outputs 2013-14

Rural R&D Priorities Applicable NRPs & goals

Productivity and Adding Value

Improve the productivity and profitability of existing industries and support the development of viable new industries.

B4 „ Supported ongoing R&D cross-sector partnerships that addressed climate change, natural resource management, irrigation, farm health and safety, and encouraged the development of future scientists.

„ Consolidated new collaborations with GRDC addressing

productivity and climate change preparedness in cotton and grains farming systems, including weeds.

„ Extended R&D to farmers of farming systems innovations

for improved production efficiencies, with a focus on resource management (soils, water, fertiliser use, energy use and carbon), as well as environmental performance.

„ Undertook further testing and commercialisation of novel

biopesticides for key cotton and grains pests.

„ Further enhanced the Best Management Practices program

to integrate planning, risk management and benchmarking with development of skills, knowledge and adoption of research outputs throughout the value chain.

Supply Chain and Markets

Better understand and respond to domestic and international market and consumer requirements and improve the flow of such information through the whole supply chain, including to consumers.

B4 Maintaining and improving international market access opportunities

„ Further improved industry awareness and preparedness

for major biosecurity threats, particularly silverleaf whitefly, Solenopsis mealybug, Helicoverpa spp., aphids, mites and viruses.

„ Continued to improve market intelligence and customer

feedback on Australian cotton’s competitive advantage.

„ Facilitated post-farm gate best practices for harvest, classing,

ginning, transport, storage and handling.

„ Further enhanced the Best Management Practices system to

integrate planning, risk management and benchmarking with development of skills, knowledge and adoption of research outputs throughout the value chain.

„ Continued to develop collaborative R&D partnerships with

Australian cotton shippers and overseas cotton spinning mills and domestic brand owners to facilitate opportunities for using newly developed Australian premium quality cotton, innovations in objective fibre measurement and textile processing knowledge.

APPENDICES

144 CRDC Annual Report 2013-2014

APPENDIX 2: Australian Government Priorities (continued)

Australian Government Priorities CRDC RD&E outputs 2013-14

Rural R&D Priorities Applicable NRPs & goals

Natural Resource Management

Support effective management of Australia’s natural resources to ensure primary industries are both economically and environmentally sustainable.

A1; A3; A5; A7 „ Supported ongoing R&D cross-sector partnerships addressing climate change, natural resource management, irrigation, and biodiversity, and encouraged the development of future natural resources scientists.

„ Enhancement of the best management practices system

(as above).

Climate Variability and Climate Change

Build resilience to climate variability and adapt to and mitigate the effects of climate change.

A7 „ Undertook R&D investments in biosecurity, as well as cropping systems for improved nitrogen, energy and water use efficiencies that will increase farm businesses’ climate change preparedness and reduce greenhouse gas emissions.

„ Extended farming systems innovations to farmers, facilitating

production efficiencies with an emphasis on resource management (soils, water, fertiliser, energy and carbon) and environmental performance.

„ Consolidated new collaborations with GRDC addressing

productivity and climate change preparedness in cotton and grains farming systems.

„ Continued to scope the potential impacts of climate change

on textile production and markets.

„ Supported ongoing R&D cross-sector partnerships

addressing climate change, natural resource management, irrigation and biodiversity, and encouraged the development of new scientists in these areas.

Biosecurity

Protect Australia’s community, primary industries and environment from biosecurity threats.

D3 „ Improved industry awareness and preparedness for major biosecurity threats, particularly silverleaf whitefly, Solenopsis mealybug, Helicoverpa spp., aphids, mites and viruses.

„ Further tested and commercialised novel biopesticides for

key cotton and grain pests.

„ Continued surveying for the incidence of endemic diseases

and pests, and surveillance for the presence of exotic diseases and pests, in all cotton growing districts.

„ Undertook R&D investments and activities that underpinned

the stewardship of biotechnologies and chemicals.

„ Enhanced the Best Management Practices system to

integrate planning, risk management and benchmarking, with development of skills, knowledge and adoption of research outputs for biosecurity.

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145 CRDC Annual Report 2013-2014

Australian Government Priorities CRDC RD&E outputs 2013-14

Rural R&D Priorities Applicable NRPs & goals

Supporting the Rural R&D Priorities

Improve the skills to undertake research and apply its findings.

C5 Workforce, skills, education

„ Supported ongoing R&D cross-sector partnerships

addressing climate change, irrigation and farm health and safety, and encouraged the development of future scientists in areas related to the cotton industry and its local environments.

„ Continued support for school and undergraduate level

programs, the Undergraduate Studentship Program and other scholarship systems. Continued support for postgraduate scholarships (PhD and Masters) and leadership programs for a broadly based response to the cotton industry’s future capacity.

„ Built on the ‘Sustaining Rural Communities Initiative’

established by CRDC and the Cotton CRC, with support for a conference in 2013 and supported and activated broader engagements based on that initiative.

„ Continued to support and enhance networks and

collaborations with education providers to activate a supply chain approach for the industry’s future R&D human capacity.

„ Further enhanced the Best Management Practices system

to integrate planning, risk management and benchmarking, with development of skills, knowledge and adoption of research outputs.

„ Invested in projects and partnerships with Wincott (Women’s

Industry Network - cotton), the Aboriginal Employment Strategy, an Aboriginal traineeship pilot training scheme (through the Australian Government’s Caring for our Country initiative) and the Future Cotton Leaders program.

Promote the development of new and existing technologies.

C2; C4 Further enhanced the Best Management Practices system, with new technologies; invested in new technologies such as the CottonInfo (cotton symptoms) app and the EnergyCalc Lite iPad application.

APPENDICES

146 CRDC Annual Report 2013-2014

Composition of National Research Priorities attributed to each CRDC RD&E Program 2013-14 ($’000)

National Research Priorities (NRP)

An Environmentally Sustainable Australia

Promoting and Maintaining Good Health

Frontier Technologies for Building and Transforming Australian Industries

Safeguarding Australia

TOTAL

Expenditure A1 A2 A3 A4 A5 A6 A7 B1 B2 B3 B4 C1 C2 C3 C4 C5 D1 D2 D3 D4 D5

$’000 $’000 $’000 $’000

Program 1: Farmers 550 349 246 144 919 123 3,137 5 199 403 358 1,983 8,415

Program 2: Industry 536 374 845 656 70 55 55 68 2754 5,412

Program 3: Customers

1,281 137 281 70 17 1,787

Program 4: People

29 23 12 109 78 44 548 59 1,115 2018

Program 5: Performance 57 34 58 60 296 44 21 570

TOTAL 1,172 406 258 685 1,902 123 44 5,918 75 391 281 587 1,603 4,758 18,203

Some funding totals have been rounded up or down to the closest whole number.

Composition of Rural Research and Development Priorities attributed to each CRDC RD&E Program 2013-14 ($’000)

Rural Research & Development Priorities (RRDP)

Productivity and Adding Value

Supply Chain and Markets

Natural Resource Management

Climate Change and Climate Variability

Biosecurity

Supporting the Priorities

TOTAL

Innovation Skills

Technology

Expenditure $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Program 1: Farmers

3,338 222 1,021 901 1,944 295 694 8,415

Program 2: Industry

866 222 947 730 2,399 104 145 5,413

Program 3: Customers

625 662 102 397 1,787

Program 4: People

412 105 49 65 1,212 175 2,018

Program 5: Performance

198 99 138 70 21 44 570

TOTAL 5,440 1,310 2,155 1,766 4,364 1,757 1,411 18,203

Some funding totals have been rounded up or down to the closest whole number.

APPENDICES

147 CRDC Annual Report 2013-2014

CRDC has integrated the principles of ecologically sustainable development under s.516A of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) into its planning framework. This meant developing contributions to Strategic Plan Measures of Success within each program for the broader triple bottom line outputs contained in the Strategic R&D Plan 2013-18.

In line with this, the Annual Operating Plan 2013-14 was designed to ensure strategic research initiatives that provide measurable environmental, economic and social benefits to the cotton industry and the wider community.

Environmental and social objectives underpin the economic viability of the industry. Improvements in the efficient use of resources (water, energy, nutritional supplements and chemicals), crop yields per hectare, and efficient farming methods aid the economic performance of cotton growers.

A contract with Crop Consultants Australia gathers information about on-farm practices and attitudes

across the industry, which CRDC then analyses and which provides researchers with valuable guidance to future RD&E directions.

Measures of success - Triple bottom line outputs

28%

35%

37%

Economic - Profitability and International Competitiveness 28%

Environmental - Sustainable Production Systems and Catchments 35%

Social - Empowered People and Communities 37%

TOTAL 100%

Number of CRDC projects which contributed to economic, environmental and social outcomes during 2013-14:

CRDC programs

Economic Environmental Social

Total sum of CRDC 2013-14 Investment

TOTAL number of projects

Sum of CRDC 2013-14 Investment

Number of projects

Sum of CRDC 2013-14 Investment

Number of projects

Sum of CRDC 2013-14 Investment

Number of projects

Program 1: Farmers

$ 3,516,519.00 33 $ 3,465,571.00 24 $ 1,433,291.00 8 $ 8,415,381.00 65

Program 2: Industry

$ 1,094,058.00 15 $ 3,566,236.00 33 $ 752,061.00 15 $ 5,412,355.00 63

Program 3: Customers

$ 303,548.00 3 $ 891,657.00 9 $ 591,851.00 8 $ 1,787,056.00 20

Program 4: People

$ 24,553.00 2 $ 27,149.09 6 $ 1,967,244.00 46 $ 2,018,946.09 54

Performance 5: Performance $ 305,341.00 7 $ 64,000.00 3 $ 200,405.00 1 $ 569,746.00 11

Grand Total $5,244,019.00 60 $8,014,613.09 75 $4,944,852.00 78 $18,203,484.09 213

APPENDIX 3: Environmental Performance

APPENDICES

148 CRDC Annual Report 2013-2014

APPENDIX 4 - RD&E Portfolio List of CRDC projects active during 2013-14:

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

Farmers program projects

AOTA1401 Action on the ground - operating costs CRDC Jane Trindall 01/07/2013 30/06/2014

AOTG1401 Determining optimum nitrogen strategies for abatement of emissions for different irrigated cotton systems

NSW DPI Steve Kimber 01/07/2013 30/06/2017

AOTG1403 Determining optimum nitrogen strategies for abatement of emissions for different irrigated cotton systems-testing emissions from different formulations and soil types

QUT Francois

Visser

01/10/2013 30/06/2014

CFEA1401 Carbon farming initiative - operating costs CRDC Jane Trindall 01/07/2013 30/06/2014

CFEO1401 Carbon farming in the Australian cotton industry (Carbon Farming Specialist)

CSD Jon Welsh 01/07/2013 30/06/2017

CFEO1402 Carbon farming extension project Cooler Carbon Consulting

Francois Visser

01/12/2013 30/06/2014

CFEO1403 Consultancy agreement Back

Paddock Company

Tom Cowlrick 01/11/2013 30/04/2014

CLW1401 Monitoring greenhouse gas emissions from irrigated cropping systems

CSIRO Ben

Macdonald 01/07/2013 30/06/2016

CRC1212 National extension development and delivery - crop protection QDAFF Ngaire

Rougley

01/07/2011 30/06/2014

CRDC1333 Turning around back-to-back cotton fields with efficiency and precision BIPL Miles Ellery 07/06/2013 30/10/2013

CRDC1405 Network Development Officer - Upper Namoi Valley CGA Sarah Clift 01/07/2013 30/06/2016

CSE1401 Management options enhancing beneficial microbial functions in cotton soils

CSIRO Gupta

Vadakattu 01/07/2013 30/06/2016

CSE1403 Automated insect monitoring for pest management CSIRO Nancy

Schellhorn 01/07/2013 30/06/2015

CSP1104 Applying plant-based measurements for irrigation in water limited environments.

CSIRO Onoriode

Coast

01/07/2012 30/06/2016

APPENDICES

149 CRDC Annual Report 2013-2014

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

Farmers program projects

CSP1302 Assisting cotton industry diversification in coastal North Queensland and tropical Australia

CSIRO Steve Yeates 01/07/2012 30/09/2015

CSP1303 Identification of beneficials attacking silver leaf whitefly and green vegetable bug

CSIRO Lewis Wilson 01/07/2013 30/06/2015

CSP1305 Irrigation Strategies in a limited water environment CSIRO Rose

Brodrick

01/07/2012 30/06/2015

CSP1308 Agronomic management for better fibre and textile quality CSIRO Michael

Bange

01/07/2012 30/06/2015

CSP1401 Enhancing IPM in cotton systems CSIRO Lewis Wilson 01/07/2013 30/06/2018

CSP1403 Improving cotton productivity with crop nutrition CSIRO Ian Rochester 01/07/2013 30/06/2016

CSP1406 Moisture at picking CSIRO Michael

Braunack

01/05/2013 30/06/2014

DAN1202 Managing carbon in cotton-based farming systems NSW DPI Nilantha

Hulugalle

01/07/2011 30/06/2014

DAN1205 Promoting water smart infrastructure investment in NSW NSW DPI Janelle

Montgomery 01/12/2011 30/06/2014

DAN1305 Updating and expanding Weedpak in support of the cotton industry and myBMP

NSW DPI Graham

Charles

01/07/2012 30/06/2015

DAN1306 Cotton Gin Trash (CGT) to bioethanol NSW DPI Tony Vancov 01/10/2012 31/01/2014

DAN1401 Closing the soil carbon balance in cotton-farming systems NSW DPI Nilantha

Hulugalle

01/07/2013 30/06/2016

DAN1402 Hard to control weeds in northern farming systems - understanding key processes to improve control methods

NSW DPI Sudheesh

Velayudhan 01/07/2013 30/06/2016

DAN1403 Diseases of Cotton XI NSW DPI Karen Kirkby 01/07/2013 30/06/2016

DAN1404 Centre for Biopesticides and Semiochemicals: Development of new tools and strategies for IPM

NSW DPI Robert

Mensah

01/07/2013 30/06/2018

DAN1405 Capital: Flumes and other ancillary instrumentation NSW DPI Guna

Nachimuthu 01/07/2013 31/12/2014

APPENDICES

150 CRDC Annual Report 2013-2014

APPENDIX 4: RD&E Portfolio (continued)

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

Farmers program projects

DAN1408 An evaluation of the current understanding of cotton-growing soils and soil management practice issues in Southern NSW

NSW DPI Johnathon Holland 06/01/2014 30/09/2014

DAQ1204 Management of mirids, stinkbugs and Solenopsis mealybug QDAFF Moazzem

Khan

01/07/2011 30/06/2014

DAQ1401 Strengthening the central highlands cotton production system QDAFF Paul Grundy 01/07/2013 30/06/2016

DAQ1401C Capital: Biodegradable film layer QDAFF Paul Grundy 01/02/2014 30/06/2014

DAQ1402 Fusarium wilt management in cotton QDAFF Linda Smith 01/07/2013 30/06/2016

DAQ1404 Optimising water and energy use in the Central Queensland irrigation sector

QDAFF Lance

Pendergast 01/07/2013 30/06/2016

EEIA1401 Energy efficiency information - operating costs CRDC Jane Trindall 01/07/2013 30/06/2014

EEIG1401 Improving energy efficiency on irrigated Australian cotton farms NCEA Craig Baillie 01/07/2013 30/06/2015

FTRA1401 Filling the research gap - operating costs CRDC Jane Trindall 01/07/2013 30/06/2014

FTRG1401 Indirect emissions of nitrous oxide from broad acre irrigated agriculture CSIRO Ben

Macdonald 01/07/2013 30/06/2016

GVIA1302 Grower-led research in irrigation system comparisons in the Gwydir Valley

GVIA Zara Lowien 01/07/2012 01/08/2014

NEC1201 The feasibility and development of alternate energy sources for cotton NCEA Craig Baillie 01/07/2011 30/06/2014

NEC1301 Assessing the impacts of new harvesting technologies on cotton NCEA John Bennett 01/07/2012 30/06/2015

NEC1302 Commercial prototype smart automation system for furrow irrigation of cotton

NCEA Rod Smith 01/01/2013 30/03/2015

NEC1401 Advancing VARIwise with autonomous irrigation and a grower’s guide

NCEA Alison

McCarthy

01/07/2013 30/06/2016

NEC1402 Commercial development and evaluation of a machine vision-based weed spot sprayer

NCEA Cheryl

McCarthy

01/07/2013 30/06/2016

APPENDICES

151 CRDC Annual Report 2013-2014

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

Farmers program projects

NEC1403 PhD: Soil-specific strategic irrigation: Identifying saline-sodic water as a resource

NCEA Aaditi Dang 03/03/2014 05/01/2017

QUT1401 Summer Scholarship: Andrew Dickson - Interaction between beneficial insects, aphids and biopesticides

QUT Caroline

Hauxwell

18/11/2013 30/01/2014

SCHOL00W PhD: Improved resource use efficiency via improved cotton root growth

CSIRO Post

Graduate 01/07/2012 30/06/2015

UA1101 The use of biological control agents in resistance management of Helicoverpa

UA Kay

Anantanawat 01/07/2010 30/11/2013

UNE1303 Microbial solutions for sustainable cotton and soil health management UNE Lily Pereg 01/07/2012 30/06/2015

UNE1305 PhD: Sarah Cooper - Microbial tools for advancing the management of soil and seedling health in cotton production systems

UNE Sarah Cooper 01/02/2013 01/02/2016

UNE1403 Oliver Knox - Professor of soil biology UNE Oliver Knox 01/01/2014 31/12/2018

UNE1404 Centre for Biopesticides and Semiochemicals: Semiochemical management for occasional pests of cotton and grains

UNE Peter Gregg 01/10/2013 30/06/2018

UNE1405 Summer Scholarship: Brook McAlister - Field investigations of subsoil sodicity in cotton

UNE Chris Guppy 01/11/2013 30/10/2014

UQ1203 Improved Integrated Weed Management systems in transgenic farming landscapes

QDAFF Jeff Werth 01/07/2011 30/06/2014

UQ1302 Developing soil testing and fertiliser response guidelines to manage P, K and S fertility for irrigated and dryland cropping systems

UQ Mike Bell 01/07/2012 30/06/2017

UQ1305 Viruses, vectors and endosymbionts: Exploring interactions for control UQ Sharon van

Brunschot 01/04/2013 30/06/2016

UQ1402 PhD: Host plant relationships of green mirids - is alternative control possible?

UQ Justin

Cappadonna 18/11/2013 17/11/2016

APPENDICES

152 CRDC Annual Report 2013-2014

APPENDIX 4: RD&E Portfolio (continued)

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

Farmers program projects

UQ1403 PhD: Multiple host use and gene-flow in green vegetable bug relative to cotton crop

UQ Dean

Brookes

01/10/2013 01/10/2016

UQ1404 Capital: Soil moisture monitoring equipment UQ John Smith 01/04/2004 31/03/2015

UQ1405 Capital: New Holland Boomer 25 Tractor and Trailer QDAFF Jeff Werth 12/06/2014 31/08/2014

UQ1502 PhD: The impact of irrigation methods and management strategies on nitrogen fertiliser recovery in cotton

UQ John Smith 01/07/2014 30/06/2017

US1301 PhD: The physiology of cotton crop nutrition, shade and waterlogging US Najeeb Ullah 31/03/2012 31/03/2015

US1402 Summer Scholarship: Richard Quigley - Effect of wide (1.5m) and conventional (1m) row spacing on cotton growth, maturity, yield, fibre quality and water use efficiency in Warren

US Daniel Tan 30/11/2013 30/04/2014

USQ1402 PhD: Self-guided drones for tracking irrigation in a cotton field USQ Derek Long 01/03/2014 01/03/2017

USQ1404 PhD: Quantifying and mapping the impacts of herbicide drift on cotton (non-target crop)

USQ Angelica

Cadavid

09/12/2013 08/12/2016

UTS1202 PhD: Image processing method to estimate cotton requirements for nitrogen fertiliser

UTS Mahdi

Mousa Ali 01/05/2012 30/06/2015

UWS1401 Centre for Biopesticides and Semiochemicals: Novel insecticides and synergists from endemic and exotic flora

UWS Robert

Spooner-Hart

01/10/2013 30/06/2018

UWS1402 Summer Scholarship: Brendan Delroy - Variation in colonisation and resource uptake of cotton mycorrhizal partnerships

UWS Jeff Powell 06/01/2014 28/02/2014

Outcome 1: Farmers program TOTAL $8,415,381

APPENDICES

153 CRDC Annual Report 2013-2014

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

Industry program projects

BGC1301 Increasing capacity to deliver accredited drift management workshops

Bill Gordon Pty Ltd Bill Gordon 01/07/2012 30/06/2015

CA1201 Biosecurity training for growers and agronomists: Training of an industry-wide network in emergency response procedures

CA Greg Kauter 01/07/2011 30/06/2014

CA1402 Cotton map 2013-14 CA Greg Kauter 01/07/2010 30/06/2014

CCA1401 Helicoverpa egg collecting in cotton regions to support Bt and insecticide resistance monitoring

CCA Fiona

Anderson 01/07/2013 30/06/2016

CLW1301 Measuring deep drainage from a cotton/wheat trial CSIRO Anthony

Ringrose-Voase

01/07/2012 30/06/2015

CRC1015 PhD: Economic environmental water trade-offs in the Namoi under climate change and variability

UWA Alison Wilson 01/04/2010 31/10/2013

CRC1101 PhD: Improving prediction of cotton growth and production in a changing climate

CSIRO Katie

Broughton 01/07/2010 31/03/2014

CRC1109A PhD: Ecology of Helicoverpa punctigera revisited: migration, overwintering and implications for Bt resistance

UNE Kris Le

Mottee

01/07/2010 31/12/2014

CRCP1401 Demonstration of novel evaporation mitigation technology in large scale trials

CRC

Polymers

David Solomon

01/07/2013 30/06/2016

CRDC1403 National cotton NRM Technical Specialist Stacey Vogel Stacey Vogel 29/10/2013 30/06/2014

CRDC1411 Developing an industry-agreed strategy for managing herbicide resistance in cotton

Annabelle Guest Annabelle Guest

15/11/2013 31/08/2014

CRDC1414 National NRM regional conference Stacey Vogel Stacey Vogel 13/03/2014 20/03/2014

CSE1201 The characterisation of Vip3A resistance in Helicoverpa spp. CSIRO Tom Walsh 01/07/2011 30/06/2014

CSE1202 Efficacy of Bollgard III ® cotton against Helicoverpa CSIRO Sharon

Downes

01/07/2011 30/06/2014

APPENDICES

154 CRDC Annual Report 2013-2014

APPENDIX 4: RD&E Portfolio (continued)

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

Industry program projects

CSE1302 Area-wide pest suppression in transgenic landscapes: Implications for IRM strategy

CSIRO Cate Paull 01/07/2012 30/06/2015

CSE1304 Managing Bt resistance and induced tolerance with effective refuge crops in preparation for Bollgard III®

CSIRO Mary

Whitehouse 01/07/2012 30/06/2015

CSE1306 Managing Bt resistance, H.punctigera movements and cotton planting windows

CSIRO Geoff Baker 01/07/2012 30/06/2015

CSE1402 Monitoring to manage resistance to Bt toxins CSIRO Sharon

Downes

01/07/2013 30/06/2016

CSE1404 Economic risk assessment of resistance management strategies for Bt cotton

CSIRO Stuart

Whitten

01/05/2014 30/06/2016

CSP1402 National Facility for Cotton Climate Change Research CSIRO Michael

Bange

01/07/2013 30/12/2016

DAN1201 PhD: Molecular genetic methods to detect neonicotinoid resistance in cotton aphid

NSW DPI Kate Marshall 01/01/2012 31/12/2014

DAN1203 Sustainable resistance management of mites, aphids and mirids in Australian cotton

NSW DPI Grant Herron 01/07/2011 30/06/2014

DAN1204 Helicoverpa resistance management and novel method to protect Bollgard II®

NSW DPI Lisa Bird 01/07/2011 30/06/2014

DAN1406 Investigating the on-farm risks of aflatoxin contamination of cottonseed

NSW DPI Kathy

Schneebeli 01/01/2014 31/12/2016

DAN1407 Capital: Roller Mill NSW DPI Chris

Anderson 01/10/2013 30/06/2014

DAQ1201 Surveillance and monitoring for endemic and exotic virus diseases of cotton

QDAFF Murray

Sharman

01/07/2011 30/06/2015

DAQ1403 Silverleaf whitefly resistance monitoring QDAFF Jamie

Hopkinson 01/07/2013 30/06/2016

DAQ1405 Surveillance for exotic cotton viruses: Multiple targets in and nearby Australia

QDAFF Cherie

Gambley

01/07/2013 30/06/2016

APPENDICES

155 CRDC Annual Report 2013-2014

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

Industry program projects

DNRM1401 The impact of improved water use efficiency (WUE) on paddock and catchment health

DNRM Mark Silburn 01/07/2013 30/06/2016

DNRM1402 Capital: Geophysical Surveying Terrameter DNRM Mark Silburn 01/11/2013 30/06/2014

GRDC1301 Climate champion program GRDC GRDC 01/07/2012 30/06/2015

GRDC1401 Managing climate variability program GRDC Beverley

Henry

01/07/2013 30/06/2016

GU1401 Critical thresholds for riparian vegetation regeneration in the northern Murray-Darling Basin (MDB)

GU Samantha

Capon

01/07/2013 30/06/2016

PHA1401 Provision of independent technical, secretarial and operational services to the National Working Party for Pesticide Applications (NWPPA)

PHA Nicholas

Woods

01/07/2013 30/06/2014

QUT1402 PhD: Evolution of viral diversity and virus ecology in the management of resistance to biopesticides

QUT Chris Noune 12/01/2014 30/06/2017

SC1301 National cotton extension development and delivery - stewardship of biotechnologies

Sally Ceeney Sally Ceeney 01/07/2012 30/06/2015

UNE1201 Positioning growers to take advantage of future ecosystem service markets

UNE Rhiannon

Smith

01/03/2012 01/03/2015

UNE1202 PhD: Next generation rural landscape governance -the Australian dimension

UNE Tanya

Howard

01/07/2011 30/06/2015

UNE1301 Substitutes for pupae busting - commercial scale trials of moth busting

UNE Peter Gregg 01/07/2012 30/06/2015

UNE1306 The characterisation of triacylglycerides as plant biomarkers in Helicoverpa moths

UNE Ben Greatrex 28/03/2013 30/06/2014

UNE1406 PhD: Sustainable water extractions: Low flow regia and critical flow thresholds

UNE Marita

Pearson

01/01/2014 30/06/2017

APPENDICES

156 CRDC Annual Report 2013-2014

APPENDIX 4: RD&E Portfolio (continued)

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

Industry program projects

UNSW1401 Quantifying the uncertainty associated with predicting coal seam gas production impacts

UNSW Bryce Kelly 01/07/2013 30/06/2015

UNSW1402 Summer Scholarship: Charlotte Iverach - Baseline measurements of methans in the groundwater and air throughout the Condamine Catchment

UNSW Charlotte

Iverach

01/12/2013 30/11/2014

UNSW1403 PhD: Spatial and temporal importance of diffuse and stream recharge in semiarid environments - Implications for integrated water management

UNSW Calvin Li 01/03/2014 28/02/2017

UQ1001 PhD: Flight characteristics of Helicoverpa spp in relation to the efficacy of transgenic cotton refuges

UQ Jason

Callander 15/09/2009 01/03/2014

UQ1301 Can genetic diversity predict the potential for emergent glyphosate resistance?

UQ James

Hereward 01/07/2012 30/06/2015

US1403 PhD: Effects of climatic fluctuation and land use change on soil condition in the Lower Lachlan

US Patrick Filippi 03/03/2014 02/03/2017

UTS1301 Assessing climate change impacts and adaption options in the cotton industry

UTS Qunying Luo 01/07/2012 30/06/2015

UWS1301 Cotton Industry adaptation to extreme weather and climate change UWS Brajesh K

Singh

01/07/2012 30/12/2015

Outcome 2: Industry program TOTAL $5,412,355

APPENDICES

157 CRDC Annual Report 2013-2014

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

Customer program projects

CMSE1201 PhD: Identifying the glass transition (Tg) temperature behaviour of Australian cotton

CSIRO Chantal

Denham

01/07/2011 30/03/2015

CMSE1203 Post Harvest BMP (including classing, ginning and harvesting) CSIRO Rene Van

der Sluijs

01/07/2011 30/06/2014

CMSE1305 Commercial ready CottonSpec CSIRO Shouren

Yang

01/07/2012 31/10/2014

CMSE1308 PhD: Effects of cotton cellulose structure and interactions on dye uptake

CSIRO Genevieve

Crowle

01/07/2012 30/06/2016

CMSE1310 Influence of fibre length on HVI strength measurement CSIRO Geoffrey

Naylor

01/07/2012 30/09/2013

CMSE1312 Cotton contamination detection sensors CSIRO Andrew

Krajewski

01/07/2012 30/06/2014

CMSE1401 A preliminary investigation into the colour characteristics of various cotton varieties

CSIRO Rene Van

der Sluijs

01/07/2013 30/06/2014

CMSE1402 Automated gin seed fingers - commercial application CSIRO Andrew

Krajewski

01/07/2013 30/06/2015

CMSE1403 PhD: Low wax Australian cotton - reducing the scouring requirements of cotton fabric

CSIRO Katherine

Birrer

01/04/2014 31/03/2017

CMSE1404 Scientific exchange: Eric Hequet - visiting fellowship CSIRO Stuart

Gordon

01/05/2014 30/08/2014

CRDA1403 Facilitating interaction between cotton ginners and QUT biofuels researchers

CRDC Tracey Leven 15/05/2014 15/05/2014

DU1102 Development of low twist fine count yarns and fabrics from Australian long staple upland cotton

DU Xungai Wang 01/07/2010 31/07/2014

DU1301 Design of thermal cotton/wool fabrics made from Australian fibre DU Xungai Wang 01/07/2012 30/06/2015

DU1302 New developments and opportunities for cotton yarns and fabrics

DU Xungai Wang 01/02/2013 30/06/2014

DU1401 PhD: Improving length, strength and fineness of cotton fibre DU Rechana

Remadevi 10/01/2013 09/01/2016

APPENDICES

158 CRDC Annual Report 2013-2014

APPENDIX 4: RD&E Portfolio (continued)

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

Customer program projects

DU1402 Ever-dry self-cooling cotton fabrics DU Tong Lin 01/01/2014 31/12/2015

QTT1401 Cotton gin trash as a potential resource: Reassessing risk factors QTT Angus

Crossan

01/11/2013 31/12/2014

QUT1301 The development of a web-based carbon footprint calculator for the Australian cotton industry

QUT Francois

Visser

01/01/2013 31/012/2013

TSW1401 Traceability of Australian cotton pilot study TSW Analytical

Chris May 01/05/2014 31/12/2014

UTS1201 Accounting for value chain sustainability and competitive advantage

UTS David Brown 01/07/2011 30/06/2014

Outcome 3: Customers program projects TOTAL $1,787,056

CRDC People program projects

ABA1401 2014 Science and Innovation Awards for young people in Agriculture, Fisheries and Forestry

Dept. Ag Dept. Ag 01/07/2013 30/06/2016

CA1401 Cotton Conference Foundation Sponsorship CA Barb Grey 01/03/2013 30/06/2016

CA1403 Primary Industries Education Foundation membership CA Adam Kay 01/07/2012 30/06/2014

CA1404 2014 Australian Future Cotton Leaders Program CA Jo Eady 01/02/2014 31/12/2014

CCA1402 Professional Soils and Nutrition Management Course, Goondiwindi CCA Fiona

Anderson 27/08/2013 28/08/2013

CCR1201 Climate Change Research Strategy for Primary Industries (CCRSPI) RIRDC Heather

Hemphill

01/07/2013 30/06/2016

CFOC1401 5th National NRM Knowledge Conference (Target 4) CRDC Jane Trindall 01/12/2013 19/03/2014

CGA1402 Celebrating the season CGA Claire

Jenkins

23/09/2013 31/12/2013

CGA1403 Cotton picking women’s picnic CGA Chantal

Corish

01/01/2014 30/06/2014

CGA1404 Building the relationship with the local high school to better the future cotton industry workforce

CGA Alexander

Roughley

01/01/2014 31/12/2014

APPENDICES

159 CRDC Annual Report 2013-2014

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

CRDC People program projects

CGA1405 Understanding soils and plant nutrition for cotton growers CGA Nigel Corish 14/11/2013 30/06/2014

CGA1406 Cotton communities health empowerment CGA Kelly Foran 01/01/2014 30/06/2014

CGA1407 The great northern bus tour CGA Claire

Jenkins

08/12/2013 30/06/2014

CGA1408 Understanding the weather CGA Geoff Hunter 01/01/2014 30/06/2014

CGA1409 Grower workplace health and safety capacity building in the Darling Downs

CGA Sandy Cowell 01/01/2014 30/09/2014

CMSE1301 Cotton field to fabric training program CSIRO Rene Van

der Sluijs

01/07/2012 30/06/2014

CMSE1302 Cotton ginning training program CSIRO Rene Van der Sluijs 01/07/2012 30/06/2015

CRDC1321 Enviro story books - 2013 PeekDesign Trudy Staines 01/07/2013 30/06/2014

CRDC1328 Building the capacity of cotton farms: employer driven staff development Waters Consulting

Warwick Waters

01/03/2013 30/06/2014

CRDC1404 Australasian Pacific Extension Network International Conference, NZ

Blue Dog Agri Liz Alexander 26/08/2013 29/08/2013

CRDC1410 Land and Water Australia (LWA) database Lynda George

Lynda George

01/08/2013 30/06/2014

CRDC1412 2014 Nuffield Scholarship: Nigel Corish Nuffield Australia

Jim Geltch 01/07/2013 30/09/2015

CRDC1413 2015 Nuffield Scholarship: Matthew McVeigh and Tom Quigley. Nuffield Australia

Jim Geltch 01/06/2014 30/09/2016

CRDC1415 PhD program 2014 - Postgraduate tour CSIRO Trudy Staines, Helen Dugdale

01/01/2014 30/06/2014

CRDC1416 Enviro story books - 2014 PeekDesign Trudy Staines 01/01/2014 30/12/2014

CRDC1417 Sponsorship: Rotary youth in cotton camp Rotary Tamsin Quirk 01/05/2014 30/05/2014

CRDC1418 Cotton futures initiative Paula Jones Paula Jones 02/04/2014 09/05/2014

CRDC1419 Supporting the adoption of agronomy best practices for cotton production by cotton consultants in Southern NSW

Warden Ag Steve

Warden

01/02/2014 30/04/2014

APPENDICES

160 CRDC Annual Report 2013-2014

APPENDIX 4: RD&E Portfolio (continued)

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

CRDC People program projects

CRDC1423 Consultancy agreement ACIL Allen

Pty Ltd

JP van Moort 02/05/2014 28/05/2014

CRDC1424 Visit key researchers and consultants in the United States cotton industry David Thornby

David Thornby

01/06/2014 30/07/2014

CRDC1425 Visit key researchers and consultants in the United States cotton industry RowAg Cleave

Rogan

01/06/2014 30/07/2014

CSD1401 Visit key researchers and consultants in the United States cotton industry CSD Kieran

O’Keefe

01/06/2014 30/07/2014

CSE1305 Developing education capacity in the Australia cotton industry CSIRO Trudy Staines 01/07/2012 30/06/2015

CSP1404 Scientific exchange: Dr Payton, USDA - Climate Change Effects CSIRO Michael

Bange

01/01/2014 28/02/2014

CSP1405 Scientific exchange: Dr Gwathmey - Mentorship in cotton CSIRO Rose

Brodrick

01/02/2014 31/03/2014

DAFF1401 Soils cross-sectoral strategy GRDC GRDC 01/07/2014 30/06/2017

DAN1302 Building the cotton industry knowledge hub NSW DPI David Larsen 01/07/2012 30/06/2015

DAN1304 Namoi Regional Cotton Development and Delivery Officer NSW DPI Peter Verwey 01/07/2012 30/06/2015

DAN1409 Visit key researchers and consultants in the United States cotton industry NSW DPI Graham

Charles

01/06/2014 30/07/2014

DAQ1302 Australian cotton production and best practice documentaries QDAFF Paul Grundy 01/07/2013 30/06/2016

DAQ1406 Beltwide Cotton Conference, New Orleans QDAFF Linda Smith 03/01/2014 10/01/2014

DAQ1407 Scientific exchange: invitation to four cotton pathology experts to attend an international FUSCOM workshop

QDAFF Linda Smith 01/05/2014 30/11/2014

DAQ1408 Visit key researchers and consultants in the United States cotton industry QDAFF Jeff Werth 01/06/2014 30/07/2014

GSA1401 Piloting a succession and professional development in the cotton agri-business sector

CDI Gordon

Stone

01/04/2014 30/04/2014

MQ1401 Visit to Arid-Land Agriculture Research Centre in Arizona MU Dalila

Rendon

16/05/2014 30/05/2014

PCT1401 2013 Science to Policy Leadership Program Peter Cullen Trust

Sandy Hison 09/09/2013 15/11/2013

APPENDICES

161 CRDC Annual Report 2013-2014

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

CRDC People program projects

RIR1401 Cotton Industry Leadership Development Strategy (ARLP, TRAIL and TRAILBlazer programs).

ARLF Lesley

Fitzpatrick Matthew Linnegar

01/07/2013 30/06/2016

RIRDC1103 Horizon scholarship 2011: Rebecca Dunsmuir RIRDC Rebecca

Dunsmuir 01/01/2011 31/12/2015

RIRDC1201 Horizon Scholarships 2012: Kirsty McCormack and Billy Browning RIRDC Kirsty

McCormack and Billy Browning

01/01/2012 31/12/2015

RIRDC1301 Collaborative Partnership Primary Industries Health and Safety RIRDC Simon

Winter

28/08/2012 30/06/2017

RIRDC1302 Horizon Scholarship 2013: Jessica Kirkpatrick RIRDC Jessica

Kirkpatrick 30/04/2013 31/12/2016

RIRDC1303 Horizon Scholarship 2013: Charlie French RIRDC Charlie

French

30/04/2013 31/12/2015

RIRDC1304 Horizon Scholarship 2013: Paul Sanderson RIRDC Paul

Sanderson 30/04/2013 31/12/2016

RIRDC1305 Horizon Scholarship 2013: Alana Johnson RIRDC Alana

Johnson

30/04/2013 31/12/2015

RIRDC1306 Horizon Scholarship 2013: Emily Miller RIRDC Emily Miller 30/04/2013 31/12/2015

RIRDC1401 Horizon Scholarship 2014: Felicity Taylor RIRDC Felicity

Taylor

31/03/2014 31/12/2017

RIRDC1402 Horizon Scholarship 2014: Grace Scott RIRDC Grace Scott 31/03/2014 31/12/2017

RIRDC1403 Horizon Scholarship 2014: Sam Johnston RIRDC Sam

Johnston

31/03/2014 31/12/2017

RIRDC1404 Horizon Scholarship 2014: Alana Martin RIRDC Alana Martin 31/03/2014 31/12/2017

RIRDC1405 Horizon Scholarship 2014: Michael Wellington RIRDC Michael

Wellington 31/03/2014 31/12/2017

SH1201 Capacity building of Cotton Grower Associations (CGA) in project planning and grant applications.

Fundbase Sally Hunter 01/07/2011 30/06/2014

APPENDICES

162 CRDC Annual Report 2013-2014

APPENDIX 4: RD&E Portfolio (continued)

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

CRDC People program projects

UA1401 Attend Refcom in Narrabri UA Kay

Anatanawat 04/08/2013 07/08/2013

UM1201 Innovative work: Cotton workforce development for sustained competitive advantage

UM Ruth Nettle 01/07/2011 31/12/2014

UNE1302 Cotton Production Course UNE Brendan

Griffiths

01/07/2012 30/06/2015

UNE1402 PhD: Human capacity needs and management on cotton farms UNE Bernice

Kotey supervisor

24/02/2014 28/02/2017

US1201 Managing cotton farm safety review and update US Tony Lower 01/07/2011 30/06/2014

US1401 Cotton industry injury and safety profile. US Tony Lower 01/11/2013 31/10/2014

USQ1401 PhD: Investigating retention strategies for growers and managers in the cotton industry

USQ Geraldine

Wunsch

01/07/2013 31/12/2016

USQ1403 PhD: The career motivational factors for farm employees in the Cotton Industry

USQ Nicole

McDonald 28/01/2014 27/01/2017

UT1301 Cotton industry young professionals program PICSE David Russell 01/01/2013 31/12/2015

WIN1101 On-farm environmental resources survey Wincott Helen

Dugdale

01/07/2010 30/06/2013

Outcome 4: People program projects TOTAL $2,018,946

APPENDICES

163 CRDC Annual Report 2013-2014

CRDC No. Project Title Research

Organisation Principal Researcher Start Date Cease Date

Performance program projects

BCA1401 BCA cotton comparative analysis Boyce Chartered Accountants (BCA)

Phil Achin 01/07/2012 30/06/2015

CCA1201 Annual qualitative and quantitative surveys for Australian cotton industry CCA Fiona

Anderson 01/07/2012 30/06/2015

CRDA1401 IrriComm review CRDC Paula Jones 01/07/2013 30/06/2014

CRDA1402 Futures forum CRDC Paula Jones 01/07/2013 30/06/2014

CRDC1406 Soil research review Gus

Hamilton

Gus

Hamilton

01/08/2013 30/06/2013

CRDC1420 Consultancy agreement Eco Logical

Australia

Roland Breckwoldt 14/04/2014 30/06/2014

CRDC1422 Improving Perceptions - Blueprint for Australian Agriculture NFF Georgie

Aley/Sophie Keatinge

06/05/2014 6/05/15

CRDC1426 Expert opinion agreement Syme and Nancarrow Water Social Scientists

Geoff Syme 14/04/2014 25/06/2014

CRDC1427 Consultancy agreement Paul Barnett Paul Barnett 26/06/2014 29/08/2014

CRDC1428 Review of the content in and between the myBMP modules Rachel Holloway

Rachel Holloway

11/06/2014 08/08/2014

CSP1201 Linking research, extension and myBMP - facilitation CSIRO Michael

Bange

01/07/2011 30/06/2014

RRR1401 Developing a framework and benchmark for monitoring achievement of the CRDC’s Strategic R&D Plan 2013-18

RRR Ingrid Roth 18/10/2013 30/06/2014

RRR1402 myBMP lead certification RRR Guy Roth 01/07/2013 30/06/2015

RRR1403 Integrated economic environmental and social performance reporting of cotton industry

RRR Guy Roth 01/07/2013 30/06/2016

Outcome 5: Performance program projects TOTAL $569,746

CRDC TOTAL RD&E Investment $18,203,484

APPENDICES

164 CRDC Annual Report 2013-2014

APPENDIX 5: Glossary and Acronyms

ABARES Australian Bureau of Agricultural and Resource Economics and Sciences

ACIC Australian Cotton Industry Council

ACRI Australian Cotton Research Institute

ACSA Australian Cotton Shippers Association

AECL Australian Egg Corporation Limited

AES Aboriginal Employment Strategy

AFM atomic force microscopy

AgSOC Agriculture Senior Officials Committee

AGWA Australian Grape and Wine Authority

ai/ha active ingredient per hectare

ALS Australian Long Staple cotton

AMPC Australian Meat Processing Council Limited

APL Australian Pork Limited

App Application program available from smart devices such as mobiles

APVMA Australian Pesticides and Veterinary Medicines Authority

ARLF Australian Rural Leadership Foundation

ARLP Australian Rural Leadership Program

AUSAgLCI Australian Agriculture Life Cycle Inventory

AVG aminoethoxyvinylglcine

AWI Australian Wool Innovation Limited

BCA Boyce Chartered Accountants

BIPL Blast Industry Pty Ltd

BMP Best Management Practices program

Bollgard II® Cotton varieties contain two genes resistant to Helicoverpa spp.

Bollgard III® Cotton varieties contain three genes resistant to Helicoverpa spp.

Bt Bacillus thuringiensis (crystal protein gene expressed in Bollgard II® and Bollgard III® cotton varieties, resistant to Helicoverpa spp.)

C carbon

CA Cotton Australia

CAC Act Commonwealth Authorities and Companies Act 1997

CBTV Cotton Bunchy Top Virus

CCA Crop Consultants Australia Inc.

CCMT Crop Carbon Management Tool

CCRSPI National Climate Change Research Strategy for Primary Industries

CDI Corporate Development Institute

CGA Cotton Grower Association

CGT Cotton Gin Trash

CMSE CSIRO Materials Science and Engineering

Corporation, the Cotton Research and Development Corporation

Cotton CRC Cotton Catchment Communities Cooperative Research Centre

CottonInfo team Team of Regional Development Officers, technical specialists and myBMP

specialists, formed under a joint venture between CRDC, Cotton Australia and CSD.

CottonLEADS Australian and United States program to lead responsible cotton production sustainably.

CQ Central Queensland

CRC Cooperative Research Centre

CRC Polymers Cooperative Research Centre for Polymers

CRDC Cotton Research and Development Corporation

CRRDC Council of Rural Research and Development Corporations

CSD Cotton Seed Distributors Ltd (a grower-owned cooperative)

CSIRO Commonwealth Scientific and Industrial Research Organisation

DA Dairy Australia Limited

DMA dynamic mechanical analysis

APPENDICES

165 CRDC Annual Report 2013-2014

DNRM Queensland Department of Natural Resources and Mines

DSC differential scanning calorimeter

DU Deakin University

ELS Extra Long Staple

EPBC Act Environmental Protection and Biodiversity Conservation Act 1999

EPI Environmental Performance Indicator

ESD Ecologically Sustainable Development

F1 F1 screens involve testing the offspring of single-pair matings between moths from Cry2Ab resistant strains maintained in the laboratory (SP15 for H. armigera and Hp4-13 for H. punctigera) and moths raised from eggs collected from field populations

FRDC Fisheries Research and Development Corporation

FWPA Forest and Wood Products Australia Limited

g/ha. grams per hectare

GIS Geographic Information System

GM Genetically Modified

GPWUIfarm Gross Production Water Use Index farm

GRDC Grains Research and Development Corporation

GVIA Gwydir Valley Irrigators Association

ha. hectare

HAL Horticulture Australia Ltd

Helicoverpa spp. Cotton’s major insect pests (H. armigera and H. punctigera)

HRMS Herbicide Resistance Management Strategy

HVI High Volume Instrument

ICT Information and Communications Technology

IDM Integrated Disease Management

IP Intellectual Property

IPM Integrated Pest Management

IRMS Insecticide Resistance Management Strategy

IT Information Technology

IWM Integrated Weed Management

K potassium

KPI Key Performance Indicator (measure of success)

LCA Life Cycle Assessment

Livecorp Australian Livestock Export Corporation Limited

LWA Land and Water Australia

M&E Monitoring and Evaluation

M&E Monitoring and Evaluation

MCF Mill Correction Factor

MDB Murray-Darling Basin

ML mega litre

MLA Meat and Livestock Australia

MP Member of Parliament

MU Macquarie University

myBMP my Best Management Practices

N nitrogen

NAQS Northern Australia Quarantine Strategy

NCEA National Centre for Engineering in Agriculture

NFF National Farmers’ Federation

NPSI National Program for Sustainable Irrigation

NQ North Queensland

NRM Natural Resource Management

NRP National Research Priorities

NSW New South Wales

NSW DPI NSW Department of Primary Industries

NWPPA National Working Party of Pesticide Application

NZ New Zealand

APPENDICES

166 CRDC Annual Report 2013-2014

APPENDIX 5: Glossary and acronyms (continued)

P phosphorus

PBS Portfolio Budget Statements

PHA Plant Health Australia

PhD Post Doctorate

PIB Peak Industry Body

PICSE National Primary Industry Centre for Science Education

PIEF Primary Industries Education Foundation

PIHSP Primary Industries Health and Safety Partnership

Pima cotton Gossypium barbardense. Related to Egyptian cotton, having extra long and fine staples. Limited Australian production.

PIRD Act Primary Industries Research and Development Act 1989

PISC Primary Industries Standing Committee

QAAFI Queensland Alliance for Agricultural and Food Innovation

QDAFF Queensland Department of Agriculture, Fisheries and Forestry

Qld Queensland

QTT Quick Test Technology

QUT Queensland University of Technology

R&D Research and Development

RD&E Research, Development and Extension

RDC Rural Research and Development Corporation

RDO Regional Development Officers

RH relative humidity

RIC Research and Innovation Committee

RIRDC Rural Industries Research and Development Corporation

RMP Resistance Management Plan

RRDP Rural Research and Development Priorities

RRR Roth Rural and Regional Pty Ltd

S sulphur

SLW silverleaf whitefly

spp. species

SRA Sugar Research Australia

Tg glass transition

TIMS Transgenic and Insect Management Strategy Committee

TRAIL Training Rural Australians in Leadership

TSW TSW Analytical

UA University of Adelaide

UNE University of New England

Upland cotton

Gossypium hirsutum. Comprises the vast majority of the Australian cotton crop, with Pima cotton comprising the remainder

US University of Sydney

USDA United States Department of Agriculture

USQ University of Southern Queensland

UTS University of Technology, Sydney

UWA University of Western Australia

UWS University of Western Sydney

VCG Vegetative Compatibility Group

Vic Victoria

WHS Workplace Health and Safety

Wincott Women’s Industry Network - Cotton

WUE Water use efficiency

Zn zinc

APPENDICES

167 CRDC Annual Report 2013-2014

Commonwealth Authorities and Companies Act 1997

A. ANNUAL REPORT REQUIREMENTS

Letter of transmittal .......................................................2

Exemptions from requirements ............................. nil

Standards of presentation ........................... all pages

Constructed in the interests of users ...... all pages

Freedom from ambiguity and jargon ..... all pages

Appropriate tables, graphs etc .................. all pages

Enabling legislation .....................................................75

Other applicable legislation .................................... 77

Responsible Minister .................................................. 77

Ministerial directions .................................................. 77

Directors’ details ...................................................65-68

Organisational structure and location .......... 73-75

Corporate governance practices .................... 75-82

Significant events and changes ...............................79

Judicial decisions or external reports ...................79

Information from subsidiaries ................................. nil

Indemnities .....................................................................70

B. FINANCIAL STATEMENTS .........................................89-125

C. AUDITOR REPORT ........................................................86-87

Primary Industries and Research and Development Act 1989

ANNUAL REPORT REQUIREMENTS

R&D activities coordinated or funded ..............................................30-63, 146-163

R&D expenditure ................................................... 23-25

Ecologically sustainable development ............................................................... 147

Impact of activities on the cotton industry ....................................30-63, 127-141

Revisions to Strategic R&D Plan .............................. nil

Revisions to Annual Operational Plan .................. nil

Entering into of agreements.................................... nil

Entering into of patents............................................. nil

Activities of a company ............................................. nil

Formation of a company ........................................... nil

Acquisitions and dispositions of real property . nil

Contribution to achievement of corporate objectives................................... 127-145

Contribution to the attainment of objects of this Act ............................................ 75-76

Sources and expenditure of funds ................. 23-27

Selection Committee report.................................... nil

OTHER REPORTING REQUIREMENTS

Report against Portfolio Budget Statement ..................(Appendix 1) 127-141

R&D expenditure allocated to Government R&D priorities ..........................(Appendix 2) 142-146

Appendix 6: Annual Report list of requirements

NOTES

168 CRDC Annual Report 2013-2014

CRDC’s three futures themes profitable futures, sustainable futures and competitive futures will provide a clear framework through which CRDC can invest in long-term innovations, like the one pictured here. B&W agronomist Brad Donald and Manager Peter Birch are enthusiastic about the use of drone technology in agriculture, and foresee benefits in productivity and efficiency for growers and consultants alike. Photo courtesy of Melanie Jenson.

www.crdc.com.au