Cherry Industry Annual Levy Payers Meeting

2013/14

Melbourne

ALPM Agenda

• Welcome and Introduction: Bob Granger, IAC Chair

• Cherry Investment Program – Stuart Burgess, Industry Services Manager (ISM)

• HAL Review – John Lloyd, CEO HAL

Overview

1. HAL’s role

2. Program Investment Decisions

3. R&D and Marketing Investment Summary

4. Program Highlights (13/14 program)

5. How to become informed and involved?

1. HAL’s Role

• HAL is an industry-owned RDC

• Purpose: to maximise benefits to Levy Payers through R&D and Marketing programs

• < 40 Members across 43 separate industries

• < 80 Commodities

• Fruits (i.e. cherries), nuts, vegetables, mushrooms, nursery, turf

VC’s

1. HAL’s Role

IAC

2. Program Investment Decisions

• Industry Strategic Investment Plan

• Industry Annual Investment Plan

• Annual Report

Advisory Structures • Industry Advisory Committee: - Sub committee to the Board - Provides advice to the Board • Sub committees

– R&D – Marketing

• Reference Groups – CGA Cherry Export Working Group (CEWG) – CGA Biosecurity Management Program (BMP) Team

- Strategy and program development - Expert reference point

Scott Coupland

Kym Green (Retiring)

Lucy Gregg (CGA)

Stephen Riseborough

Andrew Smith (CGA)

Peter Smith (CGA)

Ian Sparnon

Tessa Jakszewicz (Independent Officer)

Simon Boughey (Ex-Officio)

Stuart Burgess (Ex-Officio)

Bob Granger – Independent Chair

Industry Advisory Committee (IAC) members

3. Investment Summary

Cherry R&D $873,118

Cherry Marketing $305,909

Total Program investment $1,179,027

R&D Levy Investment Summary – 2013-16

2013/14 (A) 2014/15 (F) 2015/16 (F)

Opening Balance $48,154 ($9,974) $47,455

Total Revenue $814,990 $1,008,078 $651,498

Total Expenditure $873,118 $950,650 $338,216 *

Closing balance ($9,974) $47,455 $360,737

Note: (A) Actual, (F) Forecast, (*) $470,000 available for matching

Project Expenditure Summary 2007/08 to 2013/14

Investment Year Program

Expenditure No. of levy

projects Average project

expenditure /year No. of multi-

industry projects

2007/08 $258,265 16 $16,141 7

2008/09 $630,925 19 $33,207 9

2009/10 $744,950 18 $41,386 8

2010/11 $1,117,548 25 $44,702 8

2011/12 $1,352,744 23 $58,815 5

2012/13 $1,187,651 18 $65,980 9

2013/14 $989,711 26 $38,066 11

NB. Further scrutiny of project funding is being undertaken to more accurately reflect actual levy investment by

projects, taking account of factors such as multi-industry projects (MT and HG – traditionally smaller investments per

industry) and split between R&D and marketing. Further interrogation of the data will break down to investment by

objective and priority area (i.e. post-harvest / export development / crop health).

Levy Income Summary 2010/11 – 2013/14

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

July August September October November December January February March April May June

Total R&D & Marketing Levies

Actual 10/11 Actual 11/12 Actual 12/13 Actual 13/14 Budget 13/14 Forecast 13/14

TOTAL R&D & MARKETING July August September October November December January February March April May June

Actual 10/11 948 15,536 16,710 16,714 16,966 21,939 76,703 257,377 450,709 486,309 513,027 544,284

Actual 11/12 4,058 4,783 5,114 6,672 11,591 23,821 76,943 221,706 253,772 565,763 696,807 710,736

Actual 12/13 34,526 35,534 50,004 50,096 52,051 59,021 104,531 139,324 248,097 786,294 952,381 961,094

Actual 13/14 2,735 12,515 15,361 15,361 16,129 17,155 32,081 64,208 198,850 541,142 702,928 708,595

Forecast 13/14 2,735 12,516 15,362 15,362 16,129 17,156 86,433 292,270 429,753 609,063 685,638 700,000

Budget 13/14 6,965 14,406 19,951 21,613 23,656 44,186 156,317 518,022 728,852 874,302 956,506 979,997

2010/11 – 7,775t crop

2011/12 – 10,153t crop

2012/13 – 13,730t crop

2013/14 – 10,123t crop

SIP Objectives

• 1. To build a competitive supply of Australian cherries to ensure that consumers can confidently purchase consistently high quality fresh cherries at retail level.

• 2. To facilitate a profitable production sector by increasing demand for Australian cherries in line with increasing supply.

• 3. To ensure the Australian cherry industry has appropriate and sufficient capacity to manage change and industry expansion.

4. Program Highlights

Objective 1: To build a competitive supply of Australian cherries to ensure that consumers can confidently purchase consistently high quality fresh cherries at retail level.

Direct investment in Market Access / Export development focused activities through strategy 1.3 NB. $90,512 of new matched R&D investment approved in 2013/14 • CY12007 – Export development for Australian cherries (includes BMP $) • CY12023 – National cherry development program ** • CY13012 – Correlating fruit fly threat with cherry production and climate • MT13050 – Clothianidin residue survey • MT13045 - Fourth Australia-China Cooperation Forum • MT13031 – Establishment of systems to validate Pest Free Place of Production for Qld fruit fly in the Yarra Valley • MT13038 – Fruit fly quarantine technical discussions, China • MT12001 – SPLAT Cue-lure based management of Qld fruit fly

CY12007: Export development for

Australian cherries

Key output: Australian Cherry Industry Biosecurity Management Program

CY12003: Optimising fruit set, crop load, nutrition and size

Key output: applying 500g/ha RetainR

applied at 50% bloom

increased fruit set by 47% in Regina

CY12000: Reducing the impact of late season rainfall

Key output: Foliar calcium applications increased calcium in the fruit skin and increased pedicel (stem) retention. Also, Cytolin applications show promise in

promoting fruit set and reducing nose cracking

Obj 1 cont. Direct investment in development of strategies 1.1 & 1.2

Objective 2: To facilitate a profitable production sector by increasing demand for Australian cherries in line with increasing supply

• Integrated marketing campaign • Cherry launch • Media coverage • Aussie cherries facebook page • Point-of-sale kits • Woolworths national promotion • State promotions

Key outcomes: • Price per kilogram for cherries increased by 43%

compared to previous year • Even with higher price, consumers bought 20% more

cherries on each buying trip

Objective 2: To facilitate a profitable production sector by increasing demand for Australian cherries in line with increasing supply

Objective 3: To ensure the Australian cherry industry has appropriate and sufficient capacity to manage change and industry expansion

Objective 3: To ensure the Australian cherry industry has appropriate and sufficient capacity to manage change and industry expansion

Across Industry Program

• Focuses on providing outputs that are

widely beneficial across all horticulture

commodities & that would be difficult

to fund by a single industry

• Plant Biosecurity CRC (PBCRC)

• Office of Horticulture Market Access

(OHMA)

NB. The Sydney Morning Herald (NSW Tuesday 16 Aug1938)

R&D Transformational Fund

• Focuses on accelerating the development of R&D, ideas and technologies to address critical industry needs with a 10 to 15 year timeframe

• Currently 11 projects

• Dietary sterilization of male

Queensland Fruit Fly

• A value chain approach to the horticultural product

• Strategy Forum for Horticultural Education and Training

5. How to become informed and involved? Information and involvement through;

• Australian Cherries Newsletter • CGA Website • CGA and State Association • IAC and sub-committees • HAL website • HAL Industry Services Manager (Stuart

Burgess) • HAL Marketing Portfolio Manager

(Elisa Tseng) • Annual Levy Payers Meetings and

Conferences • Direct project involvement

Thank You

Stuart Burgess Industry Services Manager

stuart.burgess@horticulture.com.au 0417 536 300