Chicken Meat Research and Development Plan

2009–14

RIRDCShaping the future

Chicken Meat Industry

R&D Plan

2009-2014

RIRDC Publication No 09/084

RIRDC Project No PRJ-003307

© 2009 Rural Industries Research and Development Corporation. All rights reserved. ISBN 1 74151 884 9 ISSN 1440-6845 Chicken Meat Industry R&D Plan 2009-2014 Publication No. 09/084 Project No. PRJ-003307 The information contained in this publication is intended for general use to assist public knowledge and discussion and to help improve the development of sustainable regions. You must not rely on any information contained in this publication without taking specialist advice relevant to your particular circumstances. While reasonable care has been taken in preparing this publication to ensure that information is true and correct, the Commonwealth of Australia gives no assurance as to the accuracy of any information in this publication. The Commonwealth of Australia, the Rural Industries Research and Development Corporation (RIRDC), the authors or contributors expressly disclaim, to the maximum extent permitted by law, all responsibility and liability to any person, arising directly or indirectly from any act or omission, or for any consequences of any such act or omission, made in reliance on the contents of this publication, whether or not caused by any negligence on the part of the Commonwealth of Australia, RIRDC, the authors or contributors. The Commonwealth of Australia does not necessarily endorse the views in this publication. This publication is copyright. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved. However, wide dissemination is encouraged. Requests and inquiries concerning reproduction and rights should be addressed to the Publications Manager on phone 02 6271 4165 Researcher Contact Details In submitting this report, the researcher has agreed to RIRDC publishing this material in its edited form. RIRDC Contact Details Rural Industries Research and Development Corporation Level 2, 15 National Circuit BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604 Phone: 02 6271 4100 Fax: 02 6271 4199 Email: rirdc@rirdc.gov.au. Web: http://www.rirdc.gov.au Electronically published by RIRDC in August 2009 Print-on-demand by Union Offset Printing, Canberra at www.rirdc.gov.au or phone 1300 634 313

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Foreword Chicken meat was one of the first industries in Australia to recognise the value of research and development and establish a levy to support this activity. Research and development has served this industry well. For example, in 1965 it took chickens 65 days and 5.7 kg of feed to reach a bird live weight of 2 kg. In 2008 this is achieved in only 36 days with 3.6 kg of feed. This growth in productivity has been delivered through R&D but without use of genetically modified organisms, hormones or steroids. The industry is strongly supportive of research and development. The Rural Industries Research and Development Corporation (RIRDC) has managed the Chicken Meat R&D Program on behalf of industry since 1995 and this is the industry’s third Five Year Plan with RIRDC. Major themes driving the new Five Year Plan include: • The imperative for increased productivity and efficiency; • Understanding, adapting to and profiting from climate change; • Collaboration and working toward the National Poultry R, D and E strategy; • Rebuilding the industry’s human and institutional research capacity; • Recognition that food safety is imperative to ensure ongoing consumer confidence; • Acknowledgement that bird welfare is a legitimate community concern that

warrants research; • Understanding that certain types of market research are a valid use of industry R&D

resources. This new Five Year Plan is more comprehensive than previous editions. It incorporates outputs from RIRDC’s new Performance Evaluation Framework (RIRDC 2008) and RIRDC’s new Communication Strategy (Cox Inall Communications 2008). RIRDC views industry Five Year Plans as critical. They provide a guide for a strategic program of investment rather than an unstructured ‘grab bag’ of projects. Five Year Plans permit constant evaluation and re-planning. This Five Year Plan is consistent with RIRDC’s ongoing support for the Australian Poultry Cooperative Research Centre. A lot of work has been undertaken in drawing up this plan. It was the subject of a workshop in Sydney on 15 September 2008 and extensive consultation with industry. On behalf of the Corporation we would like to thank those involved for the contribution that they have made. Peter O’Brien Managing Director Rural Industries Research and Development Corporation

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Snapshot of the Five Year Plan Goal To stimulate and promote R&D that will deliver a profitable, productive, sustainable Australian chicken meat industry that provides quality wholesome food to the nation. Objectives Plan objectives that drive the 2009-2014 R&D Program along with expected share of the program budget are:

1. Production efficiency for profit, climate change response and food security outcomes - to improve the efficiency and productivity of chicken meat production and address climate change and food security challenges through improved feed management, nutrition, flock health, biosecurity and husbandry. Overseas breeding programs to continue to supply the Australian industry with genetic material and the RIRDC Program to add value to this resource through adaptation of chicks to Australian feed supply, animal health and production conditions (30%);

2. Animal welfare: a proactive response that includes objective standards and training - to proactively respond to emerging consumer and retailer concerns about the treatment of chickens during production, transportation and processing with objective scientific data, welfare standards, industry training and audited compliance. Delivery of this objective will generate community benefits and assist with the ongoing sustainability and positioning of the Australian chicken meat industry (7%);

3. Food safety: for enhanced consumer confidence and industry returns - to enhance the quality and safety of chicken meat products and in so doing improve the product and the industry’s image. Food safety research and extension to focus on all parts of the supply chain including: farm, processing, transport, retail and the consumer. Food safety has not been an area targeted, to date, for research by the Poultry CRC and is an important area of operation for the RIRDC Chicken Meat R&D Program (30%);

4. Addressing climate change, delivering resource use efficiency and environmental outcomes - to adapt to and capitalise on opportunities presented in a climate change environment. To deliver resource use efficiency and environmentally sustainable outcomes to the Australian chicken meat industry. Delivery of this objective will generate both industry and community benefits (20%);

5. Market research and intelligence gathering to inform industry decision making - to inform the Australian chicken meat industry through the preparation and dissemination of accurate, timely and detailed market research and industry intelligence. Certain types of market research are considered an R&D activity, whereas marketing and promotion of chicken meat is not. (3%); and

6. Collaboration to deliver human capital formation and extension outcomes - to ensure ongoing Australian chicken meat research and extension capacity

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(researchers and infrastructure); to proactively develop linkages with other chicken meat and poultry researchers and leverage the RIRDC Program into a worldwide knowledge pool; to develop joint venture projects; and to ensure the RIRDC Chicken Meat R&D Program is consistent with the findings of the National Research, Development and Extension Review (10%).

Program budget allocations are flexible and will be guided by the Chicken Meat R&D Advisory Committee. The plan is consistent with RIRDC’s overriding aim of maximising the contribution its investments make to the profitability, sustainability and resilience of rural industries and communities.

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Contents Foreword......................................................................................................................iii Snapshot of the Five Year Plan.................................................................................. iv 

Goal......................................................................................................................... iv Objectives................................................................................................................ iv 

Contents .......................................................................................................................vi 1.  Purpose of the Plan ................................................................................................ 1 

Introduction and Approach ...................................................................................... 1 Structure of this Report ............................................................................................ 2 

2.  Chicken Meat R&D Program and Overview....................................................... 3 Overview of the Program......................................................................................... 3 Chicken Meat R&D Advisory Committee ............................................................... 5 The Chicken Meat R&D System.............................................................................. 5 

3.  Industry Profile and Future Directions................................................................ 8 Overview of the Industry ......................................................................................... 8 Major Trends in the Industry ................................................................................. 13 Contribution of RIRDC to Industry Trends ........................................................... 16 

4.  Key Challenges for the Industry (SWOT) ......................................................... 17 5.  R&D Program Performance Assessment........................................................... 19 

The Existing R&D Program................................................................................... 19 Performance Assessment (RIRDC Evaluation Framework Part 1)........................ 26 

Relevance ............................................................................................................ 26 Effectiveness of the R&D ................................................................................... 29 Effectiveness of Management ............................................................................. 34 Efficiency ............................................................................................................ 37 Aggregation of Performance Assessment Results............................................... 41 Lessons................................................................................................................ 43 

6.  External Priorities and R&D Priorities in Other Industries ............................ 44 National Priorities and Rural Research Priorities................................................... 44 RIRDC Corporate Goals ........................................................................................ 45 United Kingdom, Canada and United States Research .......................................... 46 Grains R&D Corporation Program ........................................................................ 46 Meat and Livestock Australia R&D Program ........................................................ 46 Australian Pork Limited......................................................................................... 47 Australian Egg Corporation Limited...................................................................... 47 Lessons Learned..................................................................................................... 47 

7.  Consultation Findings .......................................................................................... 48 Future R&D Priorities ............................................................................................ 48 Specific Research Suggestions............................................................................... 50 

8.  Industry Commitment to Research .................................................................... 53 

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9.  The R&D Program 2009 - 2014 .......................................................................... 54 Key Themes Shaping Future Research Directions................................................. 54 Goal........................................................................................................................ 54 Objectives............................................................................................................... 54 Strategies................................................................................................................ 54 Key Performance Indicators................................................................................... 55 Resource Allocation ............................................................................................... 55 Objective 1: Production Efficiency for Profit, Climate Change Response and Food Security ............................................................................ 56 Objective 2: Animal Welfare – A Proactive Response with Objective Standards and Training .................................................................... 57 Objective 3: Food Safety – for Enhanced Consumer Confidence and Industry Returns............................................................................... 58 Objective 4: Addressing Climate Change, Delivering Resource Use, Environmental Outcomes................................................................. 59 Objective 5: Market Research and Intelligence Gathering to Inform Industry Decision Making ............................................................... 60 Objective 6: Collaboration to Deliver Human Capital Formation and Extension Outcomes ........................................................................ 61

10. Proposed Budget................................................................................................... 63 11. Communication Plan............................................................................................ 64 

Purpose and Communication Objective................................................................. 64 Approach – Application of the Decision Tree ....................................................... 64 Target Audience for Chicken Meat R&D Outcomes ............................................. 64 Early, Late or Mainstream Adopters ...................................................................... 65 Expected Key Messages from the Outcomes of the R&D Program ...................... 65 Communication Materials in Languages Other than English................................. 66 Targets for Adoption.............................................................................................. 66 Known Industry Networks ..................................................................................... 66 Major Events Where the Chicken Meat Industry is Represented .......................... 66 Key Influencers in the Chicken Meat Industry ...................................................... 66 Key Publications, Websites and Media.................................................................. 67 Conclusions............................................................................................................ 67 

References................................................................................................................... 68 Appendix 1: Contacts for the R&D Program.......................................................... 69 

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Abbreviations ACMF Australian Chicken Meat Federation AECL Australian Egg Corporation Limited AHA Animal Health Australia ARRIP Australian Rural Research in Progress CIE Centre for International Economics CPI Consumer Price Index CRC (Poultry) Cooperative Research Centre DAFF Australian Government Department of Agriculture Forestry and Fisheries DPI Department of Primary Industries EMS Environmental Management Systems EU European Union FSANZ Food Standards Australia and New Zealand FTE Full Time Equivalents FYP Five Year Plan GM Genetically Modified GPM General Performance Measures GVP Gross Value of Production IBDV Infectious Bursal Disease Virus IRA Import Risk Assessment IRR Internal Rate of Return KPI Key Performance Indicator LWA Land and Water Australia ME Metabilisable Energy NBIR Net Benefit Investment Ratio NPV Net Present Value NZ New Zealand PM Program Manager PR Program Review QA Quality Assurance R&D Research and Development RDC Research and Development Corporation RIRDC Rural Industries Research and Development Corporation SARDI South Australian Research and Development Institute SWOT Strengths, Weaknesses, Opportunities and Threats analysis U&A Usage and Attitudes (survey) UNE University of New England WTO World Trade Organisation

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Acknowledgements We wish to thank the following individuals for their assistance with the plan:

• Michael Clarke (Consultant Author of the Plan)

• Barry Shay, Chair Chicken Meat R&D Advisory Committee

• Dr Vivien Kite, Chicken Meat R&D Program Manager RIRDC

• Dr Elisa Heylin, Research and Communications Chicken Meat R&D Program RIRDC

• Andreas Dubs, Australian Chicken Meat Federation

• Margie Thomson and Helen Moffett RIRDC

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1. Purpose of the Plan Introduction and Approach This report provides a Performance Assessment for the Rural Industries Research and Development Corporation (RIRDC) Chicken Meat Research and Development (R&D) Program for the period 2004 to 2008 and a Five Year R&D Plan for the period 2009 to 2014. The Performance Assessment details the Chicken Meat Program’s success in achieving its objectives as set out in the previous Five Year R&D Plan and the relevance, effectiveness and efficiency of Five Year Plan project management. The Five Year R&D Plan for the period 2009 to 2014 has four main purposes:

1. To outline the rationale for the Chicken Meat R&D program that RIRDC will manage on behalf of the Australian Government and the Australian chicken meat industry.

2. To provide clear signals concerning chicken meat R&D needs and priorities for the period 2009 to 2014.

3. To encourage and support discussion between the chicken meat industry, RIRDC and the research, development and extension (R, D & E) community, that will enable the future needs of the industry to be identified and incorporated in annual and longer term planning.

4. To provide a budget framework for investment in chicken meat which will seed R&D for the next five years.

The Performance Assessment and Five Year R&D Plan were prepared by AgEconPlus between August and December 2008 and involved the following activities: • Interviews with the Chicken Meat Program Manager and review of Program Manager

records. • A survey of RIRDC Chicken Meat Advisory Committee Members. • Consultation with industry via a survey of industry members including members of the

Australian Chicken Meat Federation (ACMF), contract growers and industry researchers during August 2008.

• A workshop involving a broad cross section of the industry and the RIRDC Chicken Meat Advisory Committee held in Sydney, 15 September 2008.

• A review of industry literature to scan past R&D investment needs, successes and gaps.

• An evaluation of Program relevance, efficiency and effectiveness using the above data sources.

• Design of a new R&D Program using Program performance outcomes, consultation findings and external research directions.

A draft Performance Assessment and Five Year R&D Plan was provided to the RIRDC Chicken Meat Advisory Committee in November 2008 and refined following feedback from the Committee.

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Structure of this Report Consistent with the RIRDC Evaluation Framework (RIRDC 2008) and the RIRDC Five Year R&D Plan Template (RIRDC 2005) the report is structured on the following basis: • Chapter 2 provides an overview of Chicken Meat R&D Program structures; • Chapter 3 and 4 presents the industry profile, trends and SWOT analysis. Chapter 3

also assesses the contribution of the RIRDC program to industry performance; • Chapter 5 reviews the existing R&D Program including a Performance Assessment; • Chapter 6 provides insight into external R&D priorities and priorities in other protein

producing industries. This chapter provides context for setting future chicken meat R&D priorities;

• Consultation findings are reported in Chapter 7 and Chapter 8 summarises the industry’s ongoing commitment to research;

• The proposed R&D program is detailed in Chapter 9 and budgets are provided in Chapter 10; and

• A communications plan, consistent with the RIRDC Communications Strategy (Cox Inall Communications 2008) is presented in Chapter 11.

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2. Chicken Meat R&D Program and Overview

Overview of the Program In 1969 the chicken meat industry became one of the first Australian rural sectors to develop a joint industry/government R&D scheme. The scheme was managed by the Australian Chicken Meat Research Committee and was funded by a levy on meat chickens hatched. Industry levy funds were matched by Australian Government contributions. Levy and matching Government funding arrangements remain in place today. The first annual report of the Australian Chicken Meat Research Committee was published in 1970. Subsequent reviews of the Act covering the Committee’s activities led to the Committee being succeeded by the Chicken Meat Research Council (from 1 April 1986) and the Chicken Meat R&D Council (from 2 July 1990). In 1994-95, the Chicken Meat R&D Council was abolished and its functions merged with RIRDC. From 1 July 1995 the Chicken Meat Program was managed by the Chicken Meat Advisory Committee of RIRDC. The Five Year R&D Plan 2009 to 2014 is the industry’s fourth with RIRDC. Traditionally there has been an ‘on-farm’ emphasis to the work funded by the Chicken Meat Program of RIRDC and its predecessors, while the large integrated companies have focussed on product development, processing and marketing (‘proprietary’ research). The Chicken Meat R&D Program 2004 to 2009 addressed four major research objectives: Objective 1: Improve the efficiency of chicken meat production Objective 2: Enhance the quality, safety and image of chicken meat products Objective 3: Protect a sustainable production environment Objective 4: Improve Industry’s competitiveness, both domestically and internationally Overall funding levels and sources for the Chicken Meat Program 2004 to 2008 are shown in Figure 2.1.

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Figure 2.1 Approximate total expenditure over the last 5 years (2004 to 2008)

Source: RIRDC Program Records, RIRDC expenditure includes matching Australian Government contributions. Total annual expenditure between $4.1 million and $5.1 million A summary of the financial statement for the RIRDC Chicken Meat R&D Program at the end of 2007-08 is shown in Table 2.1. Table 2.1 Financial statement for the Chicken Meat R&D Program 2007-08

Reserves at the beginning of the period 3,543,745 Income Industry levies 1,061,091 Commonwealth contributions 1,492,500 Other income (including interest, royalties, sales of publications, etc) 60,649 Total 2,824,240 Expenditure Research projects 2,716,142 Other expenditure (including committee costs, communications, service fees, etc) 298,858 Total 3,015,000 Reserves at the end of the reporting period 3,352,985 Source: RIRDC 2007 The Chicken Meat R&D Program is well resourced with reserves at the end of the 2007-08 reporting period in excess of annual expenditures. The program has underspent relative to resources available.

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Chicken Meat R&D Advisory Committee The Chicken Meat R&D Advisory Committee oversees the RIRDC Chicken Meat Program. The Committee consists of persons with a range of skills and experience in the research, production and processing sectors of the industry or its service or supply industries, together with persons with relevant scientific expertise from outside the industry and a representative from RIRDC. The Committee is responsible for developing and ranking priority research proposals within the framework of the Five Year R&D Plan and provides recommendations on the allocation of research and development contributions (comprising industry levy contributions and Australian Government matching) to the RIRDC Board. It is also responsible for monitoring progress on supported projects and progress towards Program objectives more generally. The Chicken Meat R&D Advisory Committee consults with industry participants and organisations to evaluate the requirements of the industry for R&D, to prepare the Five Year R&D Plan, which is reviewed annually, and to monitor and evaluate the impact of R&D projects. The Chicken Meat R&D Advisory Committee has a particular role in ensuring its activities do not duplicate R&D undertaken by other organisations. The Chicken Meat R&D System A range of other organisations undertake research relevant to the Australian chicken meat industry. These include: • Chicken meat and stock feed companies; • Breeding companies; • Pharmaceuticals and feed additive companies; • Vaccine and biologicals manufacturers; • Higher education institutions, CSIRO and the State Departments of Primary Industries

(DPIs); • Overseas researchers; • Australian Egg Corporation Limited (AECL); and • Australian Poultry Cooperative Research Centre (CRC). The role and research focus of each of these organisations is briefly summarised below. Chicken Meat and Stock Feed Companies A large proportion of the R&D relevant to the Australian chicken meat industry is actually undertaken by industry participants themselves. The major integrated chicken meat and/or stock feed companies conduct some basic, and a considerable amount of applied and developmental research in the areas of nutrition, husbandry practices, bird health and welfare, food safety, product development, processing technologies, quality assurance and market development. These companies employ nutritionists, veterinarians, microbiologists, food technologists and back up technical and laboratory staff. Major producers and distributors also undertake a significant amount of economic and marketing research. In some fields, companies within the industry are better placed to carry out the necessary R&D and/or technology transfer than are external research organisations. In other cases, outside research providers are contracted to undertake R&D in relevant areas on behalf of

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the companies. The results of private sector research are normally only initially available to the companies concerned, although leakage to other industry participants usually occurs eventually. Breeding Companies International breeding companies supplying chicken genetic material to the Australian industry invest significant funds in R&D in order to sustain continued genetic improvement in their lines and hence to maintain their competitive position in the market. The commencement of importation of international meat chicken genetics was the single biggest boost to Australian industry productivity. Pharmaceutical and Feed Additive Companies Multinational companies largely own pharmaceutical and feed additive companies servicing the Australian poultry industry. The majority of their basic and applied research is conducted by the overseas parent company. However, some poultry work is conducted from time to time in Australia by these companies, particularly to generate data to register their products locally. This R&D is generally limited to purely confirmatory or field-testing of products under local conditions. Vaccine and Biologicals Manufacturers Australian companies involved in vaccine and biologicals manufacture have made significant investments in the past in the development of new vaccines and diagnostic technologies applicable to the Australian industry. Basic and applied research in this particular field has been quite extensive and has often been contracted out to external research providers. Since the 1990s large multinational vaccine companies have been able to access the local poultry vaccine market. As is the case with the pharmaceutical and feed additive suppliers to the industry, the majority of their basic and applied research is conducted by the overseas parent company. However, these companies do conduct some poultry work in Australia, particularly to generate data to register their products locally, but also to develop new products tailored specifically to the Australian market. Higher Education Institutions, CSIRO and State Departments of Primary Industries Universities, CSIRO, State Departments of Primary Industries and other public or private research providers, with funding often being provided by RIRDC, undertake a large amount of generic R&D applicable to all of the industry. Overseas Research In international terms Australia is a small producer of chicken meat, and therefore a comparably small player in global R&D. Continuing globalisation of the food industry and the prospect of chicken meat imports to Australia underline the importance of good access to global R&D. Australian researchers in this, as in other fields, have been effective in building international linkages, but it may be that in the years ahead a more formal, substantial and systematic investment in accessing global R&D is required.

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Australian Egg Corporation Limited The Australian Egg Corporation (AECL) has its own extensive program of strategic R&D investment and shares a number of common research, development and extension interests with the chicken meat industry. To this end, both AECL and the RIRDC Chicken Meat Program are co-investors in the Australian Poultry CRC. The Australian Poultry CRC The Australian Poultry CRC formally began operations in July 2003. The CRC business plan projects a budget of $78.8 million over seven years, including a CRC grant of $23.1 million. There are five core partners in the CRC – these being RIRDC, AECL, University of Melbourne, University of New England (UNE), and Bioproperties Pty Ltd - as well as fifteen supporting participants, including the three major meat chicken companies. The CRC’s aim is "to enhance the competitiveness of the Australian egg and chicken meat industries and supporting industries through the application of strategic programs delivering cost-effective and socially responsible production of safe, quality poultry products for domestic consumption and for emerging export markets". It has pursued this aim via research programs in: • Nutrition; • Health; • Bird welfare and environmental management; and • Education and training. Key differences in focus between the CRC and the RIRDC Chicken Meat R&D program are: • The CRC research portfolio includes longer term fundamental research projects; • The CRC undertakes fundamental basic-applied research in new fields; • The CRC portfolio includes higher risk projects; • The CRC favours research requiring cooperation amongst different research groups; • CRC research projects must have a strong commercial orientation; and • The CRC has a long-term education focus. • The CRC does not invest significantly in the area of chicken meat safety The CRC has successfully leveraged the portfolio of research available to the Australian chicken meat industry.

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3. Industry Profile and Future Directions

Overview of the Industry Products, Production and Markets The Australian chicken meat industry is a sixty-year success story, having grown from a scattered and informal adjunct to egg production into a major industry with assets in excess of $6 billion and a turnover of $3.6 billion. The industry generates 120,000 jobs though the economy, including 40,000 people in direct employment by the industry. The Australian Bureau of Agricultural and Resource Economics (ABARE publication ‘Australian Commodities’ March quarter 09.1) estimates the Gross Value of Production (GVP) of the poultry meat industry to be: • $1.637 billion in 2007-08.

Volume of production: • In 2007-08, the industry produced 804,908 tonnes of chicken meat from slaughterings

of 462 million chickens (from ABS Catalogue 7215.0 - Livestock Products, Australia) • The growth in meat produced over recent years has been greater than the number of

birds slaughtered - average bird weight is increasing through industry productivity gains and changes in market requirements.

Meat chickens are grown out to a range of sizes depending on the market for which they are destined. However, the average live-weight of Australian chickens at slaughter is currently 2.55 kg. The average dressed weight of a meat chicken at the end of production processing is approximately 1.8 kg. The Australian chicken meat industry is largely focussed on the domestic market; little product is exported. Exports tend to be opportunistic and for low value cuts (eg feet and necks). Only 28,000 tonnes (less than 5% of domestic production) was exported in 2006-07, at a value of $26 million. However, this was up on the 21,000 tonnes exported in 2005-06. Most chicken meat is produced in NSW (34%), followed by Victoria (28%), Queensland (19%), South Australia (9%), Western Australia (9%) and Tasmania (1%). Production is dominated by large, vertically integrated, private companies that own hatcheries, feed mills, broiler and breeding farms, and processing plants across a number of states, and who contract growing on a per bird basis to independent broiler growers (see Figure 3.1 below).

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Figure 3.1 The Australian chicken industry value chain

Source: http://www.chicken.org.au:80/page.php?id=2 These large vertically integrated companies rely on imported genetic stocks, processing and housing technology. In the case of genetic stocks all commercial meat chicken production is based on hybrid strains imported from two major international breeding companies and this is unlikely to change in the future. Genetic improvement is therefore

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not considered a research priority for Australian industry due to the limited capacity to commercialise outcomes and the rapid genetic gain realised from imported strains. Feeding, health management and bird husbandry often require significant adaptation to suit Australian conditions and feed ingredients. It is in this adaptation role that Australian chicken meat R&D adds value. Industry Structure and Institutions

There are 10 significant companies (each with at least 1% of total national production) involved in primary chicken meat production. Three chicken meat companies collectively process around 75% of total product and are geared to meeting the requirements of major customers such as the supermarket chains and quick service restaurants. There are approximately 800 broiler growout farms producing chickens under contract to the major chicken companies. There is a contract broiler grower on the Chicken Meat Advisory Committee. Several of the major companies also own their own broiler growout farms, and most companies also own breeding farms, from which day-old meat chickens are sourced. Most further processing of chicken meat is also undertaken by the major chicken meat companies. The Australian Chicken Meat Federation (ACMF) is the peak coordinating body for participants in the chicken meat industries. Its main objectives are the: • Promotion and protection of the interests of the chicken meat industry; • Conduct or support of research on all aspects of the industry; • Securing of representation on appropriate committees, boards and commissions; and • Approaching government bodies on all matters of concern to the industry.

ACMF is a signatory to the Emergency Animal Disease Response Agreement and represents the industry at the national level in matters regarding international trade, quarantine, animal health, biosecurity, food standards and food safety, and animal welfare. ACMF is also strongly involved in providing strategic direction to industry relevant R&D through providing research management services to the RIRDC Chicken Meat R&D Program (http://www.chicken.org.au/page.php?id=52).

Major research providers supporting the RIRDC Chicken Meat R&D Program are shown in Table 3.1.

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Table 3.1 Research Providers to the Chicken Meat Industry

Organisation Type Research Provider Departments of Primary Industries (DPI) Electronically published by RIRDC in [MONTH] 2009 Print-on-demand by Union Offset Printing, Canberra at www.rirdc.gov.au or phone 1300 634 313 and State Agencies

• Department of Employment, Economic Development and Innovation, Qld (DEEDI) – the single biggest provider to the program; has withdrawn from poultry production (nutrition and husbandry) research, but maintained an involvement in environmental, flock health and food safety research relevant to the industry. Undertake most of the industry’s environmental work and much microbiology/pathogen research

• DPI NSW – currently a relatively minor provider to the Program, but capacity possibly underutilised

• Victoria DPI – has withdrawn from poultry research but has one current project

• South Australian R&D Institute (SARDI) - has indicated a willingness to undertake poultry research in the future consistent with the National R, D & E strategy. Investment needed in staff capacity building.

Australian Universities and associated institutes

• University of Qld - proposing to fill some of the gap left by DEEDI in poultry production and nutrition areas

• Griffith University –provides microbiological research to the Program • Sydney University – the Program has invested in SU capacity

building (Chair of Poultry Sciences) but more work required to boost capacity

• University of NSW - an intermittent provider of research to the Program

• University of New England - a Poultry CRC partner and an intermittent supplier to the Program

• University of Melbourne - a Poultry CRC partner and the Program has strong links with the Veterinary Faculty

• Australian National University – small involvement only through post-graduate student in microbiology

• University of SA – small involvement only – food safety research • Institute of Medical and Veterinary Sciences – food safety research • University of Western Australia – feed supply and quality research

especially in relation to lupins CSIRO • Food Science Australia – food safety research, especially in relation

to Salmonella and Campylobacter research • Livestock Industries - a major provider to the program

Private Researchers • Includes both corporates and individuals eg Feedlot Services Australia

Source: RIRDC Chicken Meat Program Manager Markets Chicken meat is a widely consumed and highly accessible product. Australian annual per capita consumption of chicken meat has increased from 6 kg in 1965 to 36.2 kg in 2007. Per capita consumption is expected to continue to grow at current rates (between 1 – 4 % pa). Growth in chicken meat consumption is linked to real price decreases (ongoing productivity improvement) and an increased number of domestic consumers (Australian population growth). Chicken meat now challenges beef as the number one source of Australian dietary protein. Some key findings from an RIRDC Chicken Meat R&D Program-funded usage and attitudes survey, which was completed in 2008, are summarised in Table 3.2.

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Table 3.2 Chicken Meat Usage and Attitudes Research – Select Findings 2008

Positive Perceptions • It is a versatile meat • Chicken meals are quick and easy • Chicken meat is perceived as good value • Kids like it • It is easily digested • Chicken meat production has a low impact on

the environment

Negative Perceptions • Antibiotics are used in its production • Steroids and hormones used in production are

harmful to consumers • Consumption can give you tummy bugs • It is not a mans meal or high in iron • Consumption is not associated with good heath • It is not seen as Australian produced

Opportunities to increase chicken meat usage • Australian consumers say they want organic and free range chicken meat • Consumers will respond positively to information that chicken meat is Australian produced. • Make more of the product’s health benefits • Market as high protein and low in fat • Conclusion: generic promotion of the industry may be worthwhile Source: Colmar Brunton workshop presentation 15 September 2008 Of the live bird, approximately 70% by weight can be converted to chicken products for human consumption. Virtually all of the residual goes into a range of products mostly destined for the livestock feed and pet food markets. One modern processing plant identified 140 distinct chicken meat products originating from its operation, taking into consideration variations in size, cut, value adding, and so forth. Australia is a very small producer of chicken in a global context. The largest international chicken producing countries are the US (23% of world production), China (18%), Brazil (15%) and the EU (12%). Brazil, the US, the EU and Thailand are the biggest exporters of chicken meat, holding approximately 41%, 37%, 8% and 4% of the world trade (USDA FAS Livestock and Poultry: World Markets and Trade, 2008). While the Australian industry is recognised to be one of the most technically efficient producers of chicken meat in the world, it is not internationally competitive on a cost-of-production basis. The cost disadvantages of producing chicken meat in Australia run right through the production chain (RIRDC 2007). Nevertheless, Australia is considered to have a relatively good bird health status compared to most countries, and is one of the few continents untouched to date by the impacts of the H5N1 strain of avian influenza. This may provide future opportunities for the export of breeding stock. There is virtually no importation of chicken meat into Australia, other than very small quantities of fully retorted or cooked-in-can products eg canned soup. Current quarantine restrictions effectively prevent importation. Very virulent or variant strains of infectious bursal disease virus is endemic in the flocks of all nations interested in exporting to Australia. However, the recently finalised Import Risk Assessment for chicken meat may open up some opportunities for importation of chicken products from some regions or compartments in some countries in the future (RIRDC 2007). The relatively small size of the Australian market can limit the potential for successful commercialisation of certain products coming out of funded research, particularly those requiring significant investment in product registration processes (eg new vaccines). This

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has to be borne in mind in both R&D Program project selection and choice of commercialising partners (RIRDC 2007). Environment and Climate Change The chicken meat industry is reliant on feed from the grains industry (65% of production costs), water and energy inputs all of which are potentially affected by climate change. Ongoing adaptation to a changing environment and climate is needed. Input conservation and reuse is possible. Relative to other sources of dietary protein chicken meat is a low carbon emission food (0.3% of emissions compared to beef at 16%). As long as Australian consumers seek animal-based forms of dietary protein, the chicken meat industry is a carbon efficient source of supply. Carbon trading will be in place during the life of the industry’s next R&D plan. Research to minimise climate change costs, and maximise opportunities is an agreed industry priority that is well suited to the RIRDC R&D Program. Major Trends in the Industry Products, Production and Price Trends Poultry meat industry GVP has increased more than 50% over the last decade, from $1.054 billion in 1997/98 to $1.637 billion in 2007/08 (ABARE ‘Australian Commodities, March quarter 09.1’). The volume of production has followed a similar trend. Annual production growth rates for the decade to 2007 have ranged between 0% and 7% (averaging 4.5% pa), but with a tapering trend in more recent years. In 2007-08, the number of birds produced increased by 1% over 2006-07. The industry has been able to achieve significant productivity improvements over time with further efficiency gains expected in the future. In 1965 it took chickens 65 days and 5.7 kg of feed to reach a live weight of 2 kg. In 2007 this live weight was achieved in only 36 days and using 3.6 kg of feed. The rate at which feed is converted to meat in chickens is highly efficient and improving relative to other forms of protein production. The growth in popularity of chicken meat relative to other forms of protein has undoubtedly been in large part due to its increasing affordability vis a vis other protein sources. The increasing price competitiveness of chicken meat has been made possible by broadly based improvements in production efficiency, largely achieved through genetic improvements in the imported genetic stocks, but also through thr adoption of outcomes from domestic R&D. Consequently, the real price of chicken has constantly declined. It is noted that current high feed prices (see Figure 3.2 below for indicative US feed prices) have resulted in nominal chicken price increases in 2007 and 2008.

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Figure 3.2 US Chicken Feed Price Increases 2000 to 2008

Source: Chicago Board of Trade Wheat Price http://futures.tradingcharts.com/chart/CW/M Industry Structure and Institution Trends The decade to 2007 has seen some rationalisation in the number of chicken companies and growout farms as the industry has sought to capture scale economies. The sector has made significant investment in growout farm housing systems in the last ten years (eg tunnel ventilated sheds). The industry is relatively mature and has the ability to rapidly adopt new technology. The state of knowledge is also mature; most of the simple solutions to R&D challenges have been found and this means that remaining issues or problems require more complex and difficult scientific technological or engineering investments. In terms of industry institutions, the ACMF has become more securely funded since the last R&D Plan was prepared and is a potentially even stronger industry R&D partner for the RIRDC Program. A number of research providing institutions have withdrawn capacity from the poultry research sector. For example in 2007 two state DPIs signalled their intention to redirect their research priorities away from poultry, or at least some traditional areas of their involvement in poultry research. Some researchers that the RIRDC Program has previously been able to make use of from those Departments will no longer be available to conduct research for the Program. To counter these trends the RIRDC R&D Program has invested in building research capacity, for example by co-investing in a Chair of Poultry Science at the University of Sydney in 2003 (vacant in 2008). However, the industry remains critically short of research capacity in certain Program areas.

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Market, Consumer and Regulatory Trends The market for Australian chicken meat remains largely domestic and there is an ongoing trend towards ‘raw value added’ and ‘cooked further processed’ products. Whole chicken sales are static. Free range and organic chicken meat currently accounts for less than 5% of the Australian domestic market, but are growing at 15% pa. In addition, the industry notes ongoing and mounting pressure from consumers in relation to use of antibiotics in live bird production. The result has been increasingly stringent antibiotic use regulations and the need for research into alternatives. The ‘hormones and steroids in chicken myth’ remains as strong as ever in the minds of many Australian consumers. Food safety, animal welfare and biosecurity are all attracting regulatory attention at the current time and regulators are favouring regulation implementation through auditable industry assurance programs. The animal welfare issue is expected to intensify over time and the industry’s big trade customers (eg fast food restaurants) are increasingly focussed on welfare, environmental and other social issues associated with the products they supply. Consumer concerns with the ‘carbon footprint’ of food products is an issue on the horizon.

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Contribution of RIRDC to Industry Trends Table 3.3 summarises industry trends and causes. Table 3.3 Chicken Meat Industry Change Since 2004

Description of Change Factors Influencing Change Possible Influence of R&D Program on the Change

Changes in Production

Real price of chicken meat decreasing Average bird weight increasing Growth rates increasing Feed conversion ratios improving Total production increasing

Superior imported genetics (accounting for up to 90% of the gains)

Investments made by RIRDC and industry in bird health, nutrition and feed management (accounting for at least 10% of the gain)

Feed price increasing Increases in world grain prices Possible offsets achieved through feed formulation and other nutritional research

Changes in Industry Structures and Institutions

Rationalisation of chicken companies and growout farms

Opportunities to realise scale economies, new technology in plants and on growout farms

R&D to assist with adaptation of new technologies and management practices on growout farms to Australian conditions

Strengthening of ACMF as a source of information on the industry and promotion of product

Improved funding Nil

Fewer researchers available to the program State government and university policy decisions

Less capacity to complete research. RIRDC has invested in offsetting capacity building activities

Changes in Markets

Increased per capita consumption Growth in consumption forecast

Low cost protein source. Gains attributable to superior imported genetics.

Investments made in bird health, nutrition and feed management

Regulatory pressure on food safety, antibiotics, welfare, biosecurity

Consumer concerns RIRDC investments to address these issues are underway.

Increase in some imported products Import Risk Assessment outcomes

Nil

Source: Industry analysis Possible links exist between RIRDC Chicken Meat R&D Program outcomes and positive industry trends. However, it would be easy to overstate this result given the size of the RIRDC Program (<$3 million pa in a $1.4 billion GVP industry) and the range of other contributors to R&D outcomes (see Chapter 2). While other organisations make significant investments in chicken meat R&D, there remains a recognised need for the more ‘generic’ chicken meat R&D that can best be undertaken through whole of industry funding bodies such as RIRDC and the Australian Poultry CRC. Industry support for the RIRDC Chicken Meat Program continues to be strong (see Chapter 7 Consultation Findings).

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4. Key Challenges for the Industry (SWOT)

The following chicken meat Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis was developed from a review of the literature, industry consultation and collation of outcomes from the 15 September 2008 R&D planning workshop. Strengths • Chicken meat is a firmly entrenched Australian mealtime staple with consumption

forecast to increase by at least 1% pa for the foreseeable future. • The Australian industry has relatively good bird health status compared to most

countries, and is one of the few continents untouched to date by the impacts of the H5N1 strain of avian influenza.

• Amongst the world’s best researchers in avian health and food safety areas, (but gaps in some other areas, such as nutrition and animal welfare).

• An effective R&D Advisory Committee that has developed linkages between the Program, industry and the domestic and international research community.

• An industry that is relatively mature and has a history of rapidly adopting new technology and research outcomes.

• R&D success in the areas of feeding, health management and bird husbandry including the adaptation of overseas technology to suit Australian conditions.

Weaknesses • The industry is not internationally competitive on a cost of production basis (feed,

labour, scale, animal welfare, OH&S, cost of land, etc). • A mature R&D Program in which it is sometimes difficult to identify new and

prospective areas for research (however, it is noted that the Program retains strong industry support).

• Industry agreed research boundaries that confine the areas of research investigation open to the RIRDC R&D Program (eg processing and product research is completed by the chicken companies and other research is completed by the CRC).

• An aging researcher skills base plus a shortage of researchers and possibly research facilities for some key Program areas.

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Opportunities • Opportunities for continued productivity enhancements through the adoption of

improved technology on farm in areas such as bird health, husbandry, nutrition, feed management, etc.

• Opportunities to work with ACMF in the area of product and industry image management as well as assist or complement industry association activities through targeted research into consumer issues and beliefs and research projects to tackle obstacles to consumption.

• Opportunities for additional collaborative behaviour to generate additional synergies between RDCs, CRCs and research institutions.

• Opportunities to address animal welfare and food safety concerns before regulators impose unworkable solutions.

• Opportunities to better understand the industry’s carbon footprint and promote what is understood to be a ‘good news message’ relative to other sources of dietary protein.

• The opportunity to grow the industry and provide food security for consumers and address the climate change challenge.

• Opportunities to use resources more efficiently (particularly energy, water and litter), generate savings and even reuse/cogeneration potential.

• Opportunities to refocus the R&D program and develop longer term sub-programs which enhance research provider capacity.

Threats • A significant food safety event involving chicken meat could damage the image and

popularity of the product for some considerable time. • Local government planning requirements that make it difficult to expand or continue

to produce in suitable production areas. • Imported chicken meat would displace locally produced product if changes in import

restrictions or technology occur. • Feed grain access and price may limit production potential and consumer demand. • Water and energy use restrictions as a result of pollution concerns, such as greenhouse

gas emissions, would increase costs and or limit industry growth. • Outbreak of avian influenza would result in additional industry costs and curb both

supply and demand for chicken meat products. • Governments and some universities are progressively withdrawing their support for

poultry research. Consequently departmental officers are no longer available to complete research on behalf of the Program and facilities have been closed.

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5. R&D Program Performance Assessment

Chicken Meat R&D performance assessment is informed by: • R&D Plan for the Chicken Meat Program 2004-2009 (RIRDC 2004); • Annual Program Updates prepared by the RIRDC Program Manager; and • A Performance Assessment completed using the RIRDC Evaluation Framework (May

2008). The Existing R&D Program The most recent RIRDC five-year R&D plan for the chicken meat industry addressed four major research objectives: Objective 1: Improve the efficiency of chicken meat production Objective 2: Enhance the quality, safety and image of chicken meat products Objective 3: Protect a sustainable production environment Objective 4: Improve Industry’s competitiveness, both domestically and

internationally Details on the nature of these four research objectives and the types of investments made under each associated strategy are provided below. Commentary on the extent that strategies have been achieved is drawn from Annual Program Updates and consultation with the RIRDC Program Manager. Objective 1: Improve the efficiency of chicken meat production This objective has received the greatest share of the Program’s budget (see Table 5.1 below). Investments include research projects, postgraduate scholarships, travel awards and workshops. Objective 1 is driven by five strategies: • Develop the necessary technologies to define and control endemic and emerging

infectious and non-infectious diseases. Generally well addressed and one of the strategies in which the Program has available to it possibly the best choice and quality of research providers.

• Develop nutritional strategies to improve nutrient utilisation through the optimisation of gut health and manipulation of current constituents, including water. Also well addressed, particularly taking into account the Poultry CRC’s work in this area.

• Identify objective measures of, and strategies to enhance, broiler welfare. No specific projects at the end of year four of the Program but a number of individual projects have broiler welfare consideration imbedded in them. The Poultry CRC is working to enhance adoption of a welfare audit program, which was developed previously by RIRDC. The Committee advises that the most effective way to improve broiler welfare outcomes across the industry would be through more consistent adoption of appropriate welfare standards across the entire industry.

• Identify and support relevant technology transfer, training and networking opportunities for both industry personal and the industry’s supporting R, D & E community. Program Manager advice is that this strategy has been well addressed in

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the current Program. Examples provided by the Program Manager include supporting the major national industry researcher conferences, and the World’s Poultry Congress which was held in Brisbane in 2008.)

• Provide a ‘clearing house’ function for international research in relevant fields. Well addressed, largely though the work undertaken by Committee members in identifying overseas research of relevance to the Program and in making Program researchers in Australia aware of this material. Current success is, however, dependent on the good will of individual Committee members and formalisation of approaches may be advantageous in the future.

Objective 2: Enhance the quality and safety of chicken meat products, and improve

the image of chicken meat products This objective has also been well funded under the current R&D Plan. Investments include research projects, travel awards and workshops. Year 5 projects include– Australian consumer usage and attitudes survey and updating and expanding the data available on the nutritional content of Australian chicken meat. Objective 2 is driven by nine strategies:

• Develop and disseminate enhanced on-farm and processing plant food safety programs/plans. Workshops to advance the adoption of enhanced food safety programs in processing plants were held in 2007-08, with follow-up workshops planned to be held in early 2010. The development of on-farm food safety plans is considered to be no longer relevant, given the development by FSANZ of Primary Production and Processing Standards for poultry meat, which should be finalised within the life of the current R&D Plan.

• Improve public awareness of safe handling of chicken meat products. Not currently addressed in the Program. However, ACMF has been active in this area and the Committee has concluded that its direct involvement is now no longer needed.

• Develop through-chain strategies for control of Campylobacter and other food safety pathogens. The program has been active here with a number of investments for control of both Campylobacter and Salmonella. Potential for enhanced uptake of pathogen reduction strategies at all points in the production chain were explored at Pathogen Reduction workshops organised by RIRDC for industry in 2007-08.

• Develop an improved understanding of the epidemiology of antibiotic resistance of bacteria in poultry production. A small project investment here specifically targeting Salmonella. The R&D Committee is monitoring outcomes from several government funded antimicrobial resistance surveys and will consider what, if any, further research is needed to address the findings.

• Facilitate an improved understanding and acceptance in the community of genetic technologies and their application in food technologies, by means of public education, in conjunction with other bodies. This strategy has not been addressed by the Program, the Poultry CRC or ACMF. Going forward this will be a responsibility of ACMF.

• Evaluate welfare issues and address identified problem areas, such as may occur in harvesting, transportation and unloading. The program has not directly tackled this issue although standards and training materials have been developed, and training delivered by the Poultry CRC, with participation by the R&D Advisory Committee.

• Undertake regular assessment of consumer perceptions of industry practices and products. ACMF has been active in this area with investments in surveys of

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consumers’ beliefs and attitudes regarding a range of industry issues. The R&D program commissioned a chicken meat usage and attitudes survey in 2007-08 and findings were reported in the 15 September R&D planning workshop.

• Identify and support relevant technology transfer, training and networking opportunities. As for Objective 1.

• Provide a clearing-house function for international research. As for Objective 1. Objective 3: Help to protect a sustainable production environment This objective has been well funded under the current R&D Plan. The scale of RIRDC Program investment has been wound back somewhat as Poultry CRC investment in this area has been expanded. Joint work has included combined CRC/RIRDC Chicken Meat Environmental Workshops in 2005 and 2006. Research focus has been on evaluating dust, odour and pathogen emissions from poultry facilities, and on litter management, reuse and disposal. Objective 3 is driven by eleven strategies: • Assist industry to develop and implement a national ‘whole of industry’ biosecurity

program. A biosecurity plan has been in place for the contract-growing sector for some time, and RIRDC has supported its implementation by funding national biosecurity workshops for growers. While, there is no equivalent generic plan for the rest of the industry, progress towards such a ‘whole of industry’ plan has recently been made, although not as a result of RIRDC funding. ACMF has taken responsibility for progressing this issue.

• Quantify resource use across the industry and identify opportunities for more efficient resource and waste product management (including water, land, energy and litter). Several projects were funded under this strategy in 2007-08, which are the first investments made in this area during the Program. Projects included research towards quantification of the industry’s environmental footprint. Additional investment in managing, using and reusing old litter is planned.

• Develop strategies and methods for rapid recognition and control of emergency animal diseases. Well addressed by the Program. Improved tests developed for differentiating highly pathogenic strains of infectious bursal disease virus, avian influenza and Newcastle disease. Partnerships developed with the Australian Biosecurity CRC for the transfer of some of these tests across the Australian animal health laboratory network. The RIRDC Program funded a pilot avian influenza survey across the industry and a field trial conducted to demonstrate the feasibility and protocols for gassing whole sheds of birds with CO2 in an emergency disease response scenario.

• Evaluate welfare issues and address particular problem areas in production and processing – including transport, environmental stress and physiological or metabolic disorders. The Program has not tackled this issue in a significant way to date (RIRDC 2006).

• Establish and facilitate adoption of performance-based environmental criteria based on acceptable farming practices. A national EMS for chicken farms with supporting training materials has been developed with funding from the Program. The Australian Chicken Meat Growers Council has DAFF funding to roll out implementation and a number of chicken farmers are accredited.

• Develop information packages for OH&S in chicken meat production systems where they are needed. None developed to date, but a project in this area will commence in 2009, and the Committee has shaped OH&S recommendations with the Department of Health and Aging to manage risk from exposure to avian influenza.

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• Identify and quantify the environmental impacts of industry. Considerable work in this area, particularly in relation to odour, dust, and pathogen emissions from chicken sheds. Offsite impacts of litter use as fertiliser are also under evaluation. The Poultry CRC is also addressing this strategy.

• Investigate and develop practical technologies and management practices to minimise the impact of environmental emissions and to optimise the housing conditions of the birds. Considerable work in this area including research to evaluate products that reduce odour emissions from sheds and engineering solutions to reduce odour emissions.

• Facilitate technology transfer and provide opportunities for networking within industry and its supporting R, D & E community. As for Objective 1.

• Investigate international developments in relevant fields, evaluate their applicability to the Australian production environment and facilitate their adoption where appropriate. As for Objective 1.

• Support training and skills development for industry personnel and the supporting research community. The Poultry CRC is delivering this strategy.

Objective 4: Improve Industry’s competitiveness, both domestically and

internationally This objective received no funding during the current R&D program. However, many of the strategies adopted in other objectives specifically target the broader industry issue of enhancing the industry’s competitiveness (RIRDC 2006 and 2007). Objective 4 includes three strategies: • Commission benchmarking studies, both domestic and international, and investigate

differentials in total costs of production of Australian chicken meat compared to its potential overseas competitors. While at the time the current R&D Plan was developed industry had an interest in this area, industry participants have subsequently re-evaluated their need for RIRDC to have a role in this area, and indicated a lack of interest in participation in such benchmarking activities. The large chicken companies feel that they have a good understanding of their position with respect to their comparative productivity and cost-competiveness with their domestic and major potential international competitors.

• Address national policy and regulatory impacts on feed supply and costs. Not addressed, as it was reassessed as an ACMF role, with research support to be provided by RIRDC if needed (and requested) by ACMF to address these issues.

• Investigate the impact on the competitiveness of the industry of a range of other government policy issues, including trade deregulation, natural resource management and industrial relations. Not directly addressed. However, local government planning and other regulatory impediments to farm operation and expansion is a major issue and this has been tackled with projects under Objective 3 (sustainable production environment).

Other (including Australian Poultry CRC) The RIRDC Chicken Meat R&D Program invests $300,000 pa, approximately 15% of its total annual budget, in the Australian Poultry CRC. The CRC’s research priorities align closely with those of RIRDC, and broadly span all of the Program’s four key objectives. However, the CRC’s interest and relative investment in the area of product microbiological safety is much less than RIRDC’s and more research is required in this area by the RIRDC

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Program. The CRC also has a more significant focus on education than the Chicken Meat R&D Program and has active investments in the development of scientific expertise available to the industry in the area of training and educational development of industry participants and in public education regarding the activities of the industry. The CRC has a number of projects underway that have the potential to lead to significant developments for the chicken meat industry eg improved or more cost effective Eimeria vaccines, coryza vaccines and fowl cholera vaccines and possibility of a ‘vaccine’ for necrotic enteritis. Resource Allocation under the Current Plan R&D resource allocation by current R&D plan objective is summarised in Table 5.1 below. Table 5.1 Expenditure by Chicken Meat Program Area (2004/05 to 2008/09)

2004-05

2005-06

2006-07

2007-08

2008-09

Total

% Of Total Efficiency of production 1,206,566 1,119,039 967,407 747,816 801,108 4,841,936 41% Product quality and safety 344,689 326,703 624,237 802,344 400,810 2,498,783 21% Sustainable environment 424,609 354,468 252,490 703,222 1,003,157 2,737,946 23% Industry competitiveness 0 0 0 0 0 0 0% Other (eg CRC) 304,184 334,139 400,000 462,760 341,680 1,842,763 15%

Total 2,280,048 2,134,349 2,244,134 2,716,142 2,546,755 11,921,428 100% Source: RIRDC 2006 and 2007 During the period 2004/05 to 2007/08, 96 projects – including travel awards, conferences, workshops and funding for the Australian Poultry CRC – were funded, an average of 24 projects per annum. A list of projects funded 2004/05 to 2007/08 is included as Table 5.2. Table 5.2 Projects Receiving Funding – Chicken Meat R&D 2004/05 to 2007/08

Project No Title

ANU-72A Postgraduate scholarship David Stephenson- Delivery therapeutic proteins using lactobacillus

CSA-26J Use of cytokines to enhance vaccine efficacy in poultry CSA-32A Using antimicrobial proteins to control necrotic enteritis in meat chickens CSA-33J Improved control measures for infectious bursal disease virus (IBDV) PRJ-000698 Characterisation and modulation of virulence of endemic IBDV strains PRJ-000266 Subunit vaccine against Infectious bursal disease virus UQ-100J Typing of Pasteurella multocida DAQ-316A New diagnostic assays to improve control of coccidiosis in poultry DAQ-319A Preliminary investigations of novel treatments for darkling beetle DAQ-330A Novel biological management strategies for darkling beetle PRJ-000097 Trialling natural agents for control of darkling beetles PRJ-000849 51st Livestock Insect Workers' Conference – Kentucky USA DAQ-337A Broiler performance on pearl millet based diets DAQ-326A Nutritional characterisation of sorghums from QLD, NSW for chicken meat PRJ-002967 Methods to improve the nutritional value of sorghum for broilers MS045-27 Analysis of sorghum to allow connectivity between the PGLP dataset MS045-28 Commercialisation of the ALFI database GRD-3J Premium grains for livestock program (stage 2)

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Project No Title

UNE-75A Effects of organic acids, prebiotics, and enzymes on control of necrotic enteritis and performance o

DAV-226J Investigation of the cause of miliary hepatitis in laying chickens DAV-232A Further investigations into miliary hepatitis of laying hens RMI-12J Molecular evaluation of responses to vaccination by Marek's disease viruses UNE-83J Systematic pathotyping of Australian Marek's disease (MDV) isolates PRJ-000686 Molecular techniques for monitoring Marek's viraemias in broilers and layer MS023-28 Steering committee meetings with Marek's disease researchers UQ-107A Digestible amino acids and improved broiler performance PRJ-002827 Update amino acid digestibility booklet PRJ-002973 Accurate, real-time description of available energy in cereal grains PRJ-003232 APSS 2009 Invited Speaker Travel Grant CSA-25J Postgraduate scholarship - Kristie Jenkins - Improved therapeutics for Marek's disease

virus CSA-21J Postgraduate scholarship - Manija Asif: Cytokines and innate molecules for enhanced

mucosal immunisation UNE-86A Postgraduate scholarship - Mr Nicholas Rodgers: Relationships between grain quality,

intestinal health UTS-4J Efficacy trials of a maternally-delivered recombinant vaccine against coccidiosis UTS-6A Postgraduate scholarship - Ms Kelly Mai: The molecular basis for oocyst wall formation in

the apicom CSA-20A Postgraduate scholarship - Scott Sheedy: Live vectoring of therapeutic and prophylactic

proteins UM-68A Avian leukosis subgroup-J: epidemiological studies for control of ALV-J in Australian

broilers UM-73A Investigation of IBH outbreaks in Australian meat breeder/broiler flocks and establishment

of an avian adenovirus typing facility and service UNE-93A Early feeding of prebiotics on development of the digestive system and gut microflora of

broilers US-127A Establishment of a Chair in Poultry Sciences at The University of Sydney US-133A Assessment of the anti-nutritive effects of phytate by dephytinisation US-134A Early dietary and management intervention on broiler breast meat yield US-137A Variability in performance and physiology of broilers fed wheat- and sorghum-based diets US-142A Potassium diformate evaluation in Necrotic Enteritis challenge model US-152A Physiological & nutritional approaches to alleviate heat stress in broiler chickens UWA-76J Mechanical and enzymatic improvements of dehulled lupins for broiler and layer diets

(AECL-managed p UWA-102J Improvement of lupins and lathyrus for broilers and egg layers by enzyme treatment

(managed by AECL) MS034-02 Campylobacter research groups coordination UG-7A Campylobacter bio-replacement program DAQ-282A On-farm reduction strategies for Campylobacter spp. DAQ-334A Differential typing of Campylobacter DAV-234A Quality aspects of antimicrobial interventions used in chicken processing DAW-113A Advanced clinical diagnostics: use of real-time immuno-PCR and LightUp probes FSA-3A Baseline survey of Campylobacter and Salmonella during chicken processing FSA-9A Effect of new intervention strategies in Salmonella and Campylobacter during chicken

processing IMV-5A Development of a sequence-based bacteriophage typing system for Salmonella IMV-6A Molecular epidemiology of antibiotic resistance in Salmonella from chickens IMV-7A Expansion and refinement of a molecular typing system for Salmonella KDI-30J The Workboot Series - The story of chicken in Australia PRJ-000764 Development and validation of Campylobacter micro assays for virulence detection

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Project No Title

PRJ-000907 14th International Workshop on CHRO - Rotterdam, Sept 07 PRJ-001481 14th International Workshop on CHRO - Rotterdam Sept 07 PRJ-001502 Nutritional Value of Australian Chicken Meat PRJ-002966 QA Workshops – Pre-Workshop Micro-organism Surveys PRJ-002974 Nutrient Composition of Chicken PRJ-002977 Chicken Meat Usage and Attitude Survey PRJ-003220 Pathogen Reduction Workshops UG-9J Smart State Fellowships Program - Development of probiotic control measures to combat

campylobacter related food borne disease using glyco array technology UM-74A Investigation of the prevalence of chlamydiosis in the Aust chicken meat industry USA-16A Use of bacteriophage and phage products to control campylobacter in chickens CSA-24J Rapid identification and pathotyping of virulent IBDV, NDV and AI isolates CAB-1J Implementation and validation of avian influenza virus TaqMan assays on various

instrument platforms in different state veterinary diagnostic laboratories PRJ-000251 Avian influenza: improved diagnostics for detecting antibodies to H5N1 PRJ-002325 The biosecurity of mass poultry mortality composting AHA-2A Field exercise - use of carbon dioxide for euthanasia of poultry PRJ-002997 Epidemiological understanding of prevalence of H6 & AI virus subtypes-waterfowl MS045-01 Environmental management steering committee activities and workshops RDP-3A Piloting chicken litter usage in broadacre cropping: setting research directions PRJ-002747 Verification of separation distance methods for meat chicken farms DAQ-340A Monitoring mechanical ventilation rates in poultry buildings for application of odour/dust

control technologies DAQ-341A Evaluation of "add-on" technologies for control of odour and dust from sheds PRJ-000078 High Value Products from Hatchery Waste PRJ-002752 NTL Poultry Litter PROJ - Literature Review, Market Study, Project Management PRJ-002963 Life Cycle Analysis Case Studies – Chicken Meat DAQ-318A Evaluating risks posed by pathogen emissions from meat chicken sheds DAQ-321A Efficacy of windbreak walls for odour reduction FSE-3A Risk assessment on the use of chicken litter and guidelines for its safe use DAQ-323A Managing litter re-use for minimal nutrient runoff to surface water DAV-213A Trials of odour control technologies for broiler farms PRJ-000882 National Poultry Litter Project - Plan for Stage 1: Initiation Phase PRJ-002031 Nuffield Scholarship Award 2007 – Rob Kestel PRJ-002618 XXIII World's Poultry Congress - 29 June to 4 July 2008, Brisbane TA034-38 World Poultry Congress 2004, Turkey - Rider Perez-Maldonado TA045-06 2005 Aust Poultry Science Symposium, February 2005 - funding invited speakers TA045-09 South Australia Pig & Poultry Fair, August 2004 - Mr Gerry Bolla MS045-12 Costs of post-graduate scholarship holders' participation in CRC Post-graduate Program CPO-1A CRC for the Australian Poultry Industries funding

Source: AgEconPlus analysis of RIRDC data

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The following observations are offered after review of the Chicken Meat R&D Plan 2004-2009: • The Program is focussed on efficiency of production with a strong and ongoing

emphasis on flock health control and management of bird nutrition; • The program has underspent relative to resources available; • Lack of researchers in certain areas and a conservative approach to investment are key

reasons given for underspending and not fully addressing Five Year Plan strategies; • Investment in animal welfare has been less than expected – no specific welfare

projects were funded during the last six years, although many (possibly the majority) of the projects funded across the Program will have significant and favourable impacts on animal welfare; and

• Improving industry’s competitiveness received no program funds, although investment in a range of projects in other Program goal areas will have a direct impact on industry competitiveness.

Performance Assessment (RIRDC Evaluation Framework Part 1) This Performance Assessment is completed in accordance with the RIRDC Evaluation Framework (May 2008) Part 1, Performance Assessment. This part of the ‘year four’ program review addresses Chicken Meat R&D Program: • Relevance; • Effectiveness; • Management effectiveness; • Efficiency; and • Lessons. The Performance Assessment was completed through a series of interviews with the RIRDC Program Manager, interrogation of RIRDC Program Manager records and a Program Review Survey that included the R&D Advisory Committee. A separate project will address Evaluation Framework Part 2, Program Review: Impact Assessment i.e. cost benefit analysis of ‘hero’ and ‘random’ projects. Relevance Quality of analysis and priority setting at Plan development and throughout the Program period Were the priorities set and revised in response to chicken meat industry needs? Industry consultation completed as part of this Performance Assessment found agreement with the statement that ‘R&D Plan priorities were set and revised in response to chicken meat industry needs’. Comprehensive analysis and consultation was completed with the industry in 2004 to develop priorities for the Five Year Plan (FYP). An independent consultant and the RIRDC Project Manager prepared an industry R&D issues paper, the paper was circulated

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for comment, individual interviews were completed and a workshop held to set FYP priorities. Throughout the life of the FYP the Program Manager and the R&D Advisory Committee have received advice from industry and other sources to ensure research priorities remain relevant. Advice was received informally via the exchange of emails (‘is this relevant to industry R&D’), from the ACMF via its membership of relevant government committees (eg Avian Influenza Intergovernmental Committee, Animal Health Australia meetings, etc), via project identification workshops with researchers (eg Environmental Management Workshops in 2005 and 2006) and the deliberations of a series of advisory subcommittees and project steering committees. The Chicken Meat R&D Advisory Committee has subcommittees that focus on Nutrition, Environment, Marketing and Microbiology. Through the subcommittee process and other sources of advice, the Program is moving away from a general call for research proposals to a more structured and industry driven approach to Program execution, ensuring priorities address industry needs. Priorities were not formally revised during the life of the current FYP. However, the R&D Advisory Committee, and through them industry, shaped the terms of reference of all Program projects. Where a need was identified that did not fit within FYP objectives and strategies it was considered, and if found appropriate by the R&D Advisory Committee, it was funded. For example, the Program was able to respond to requests from dieticians to update research on the human nutritional properties of Australian chicken meat even though this was not identified as a priority in the Five Year Plan. Annual Chicken Meat Program Reviews completed in 2006 and 2007 also helped to ensure ongoing Program relevance and responsiveness to emerging industry needs. Have current Five Year Plan strategies and priorities proved to be relevant? FYP strategies have proved to be relevant. In total, the 2004 to 2009 Plan identified twenty-eight strategies only three of which proved to be less relevant or problematic to deliver. More problematic strategies were the investigation of animal welfare issues, international competitiveness and GM technology acceptance by the Australian public, whereas research in several other areas became less relevant, as the ACMF or other agencies took the lead in progressing industry objectives, for example in taking responsibility for progressing the development and uptake of enhanced biosecurity practices, and for public awareness of safe handling of chicken meat products. Animal welfare research has proved difficult to fund under the RIRDC program, particularly because work in this field often requires the involvement of industry collaborators who often have concerns that research results may be misinterpreted and fuel the animal welfare debate. The industry also points out that there is a shortage of researchers with expertise and interest in working in this field. In effect, international competitiveness required benchmarking and, while smaller chicken meat companies saw benefit in this activity, larger operations perceive no advantage for their business in disclosing this information or being compared to international organisations with which they already know they are at a significant cost disadvantage. Capacity to increase the public’s acceptance of GM technology proved to be beyond the scope of a relatively modest R&D program and is now thought to be more consistent with industry association (ACMF) activity.

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The R&D Advisory Committee maintains Program relevance by being vigilant about the research that it does and doesn’t fund. Proving to the Committee ‘novelty’ of project aims or approach is often a major hurdle for the funding of new projects and only the most relevant projects are supported. A downside of the Committee’s vigilance is that the Program has underspent and the Committee struggles for ideas for new relevant projects. Chicken meat is a sophisticated and mature industry; many simple relevant R&D projects have already been completed.

A further measure of the Program’s relevance is adoption of project outcomes. When the Program does fund a project and results are available, they are usually rapidly implemented. The R&D Advisory Committee is strongly linked to, and representative of, industry.

Industry consultation completed as part of this Performance Assessment found agreement with the statement that ‘objectives set in the Five Year Plan R&D Plan have proved to be relevant’.

Quality of strategies developed Were strategies based on realistic expectations, given the funding available and the available R&D capacity?

Strategies were based on realistic expectations. In the future strategies that seek to influence regulatory impediments should be referred to ACMF rather than the R&D Advisory Committee. The availability of funding for the strategies developed was not an issue and the Program was underspent due to a combination of Committee vigilance in funding potentially duplicative projects and a shortage of suitable researchers. R&D capacity is an issue this Program must address in its next FYP. Industry consultation completed as part of this Performance Assessment found agreement with the statement that ‘strategies set in the Five Year Plan R&D Plan were based on realistic expectations given the funding available and the available R&D capacity’. Quality of project proposals submitted and funded What proportion of those proposals submitted directly addressed the strategies?

Table 5.3 was completed following analysis of RIRDC Program records and data supplied by the Program Manager on rejected proposals. Table 5.3 Quality of Project Proposals

Objective Proposals Received

Proposals Directly Addressing FYP

Strategies

Proposals Funded

Efficiency of production 90 86 46 Product quality and safety 38 38 23 Sustainable environment 51 44 26 Industry competitiveness 0 0 0 Other (eg CRC) 1 1 1 Miscellaneous 2 0 0

Total 181 168 96 Source: AgEconPlus analysis of RIRDC Program data

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The Program Manager and the Advisory Committee have performed well in communicating the FYP to researchers – 93% of proposals directly addressed FYP strategies. Proposals rejected were due to poor application quality or the Committee’s assessment that the approach taken would not significantly progress Program objectives and priorities, rather than failure to address FYP strategies. What proportion of those funded did not relate directly to any of the strategies in the FYP? Only one project funded did not relate directly to any of the strategies in the FYP. This was the nutritional qualities of chicken meat study requested by dieticians and subsequently funded by the program. The project was however broadly consistent with Objective 2 ‘Product Quality and Safety’. Allocation of Program resources Did the shares of expenditure over the five years (four years actual and one year programmed) align with the intended allocations across the different objectives/strategies? The FYP did not define the percentage of funding to be allocated to each objective/strategy. However, the breakdown of expenditure across the Program in 2005-06 and 2006-07 shows a high level of resource allocation to Objective 1 ‘Efficiency of Production’ with 52% and 43% respectively. In 2007-08 this was paired back to 28%. Three of the four Program strategies have received substantial funding. Objective 4, ‘Industry Competitiveness’ received no funding due to the reasons already described. See Table 5.1 above. Effectiveness of the R&D Program Goal The program goal was to:

‘To stimulate and promote R&D that will delivery a globally competitive, environmentally sustainable and profitable chicken meat industry with good industry and product images’

The stakeholder survey completed as part of this evaluation revealed agreement with the statement that investment in R&D through the current five-year plan had improved the sustainability and profitability of the chicken meat industry. Key Performance Indicators What share of R&D Program KPIs have been realised? Given the full five years of R&D investment, what proportion of Program KPIs are expected to be realised within the next five years?

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Table 5.4 was completed in consultation with the Program Manager. Table 5.4 Realisation of Chicken Meat R&D Program KPIs

R&D Program KPIs Achievement Objective 1: Efficiency of chicken meat production Improved diagnostic tools and control strategies available for important endemic and emerging diseases

• KPI realised • Tools and strategies developed and available by 2014 • Examples include improved tests and control strategies for both

Infectious Bursal Disease Virus and Eimeria species Improved liveability and other production outcomes

• Improved liveability/lower mortality rate has been achieved since 2004 but not directly attributable to Program outcomes

• Many factors cause mortality and the introduction of a new and more productive line of chicks can have a major detrimental impact on liveability

• Therefore this KPI should not be included in the new FYP Improved performance criteria such as growth, feed conversion efficiency and breast meat yield

• Bird performance has improved since 2004 • Attribution to the RIRDC program is difficult • Most gain in chick performance due to genetics and this is outside

RIRDC Program scope • Improved feed conversion efficiency is a prospective area for

further Australian research but researcher capacity building required to capitalise

Safe and more efficient use of additives

• KPI realised • Industry has worked to increase the safety and efficiency of

antibiotic use. In particular, the development of vaccines and diagnostics for key pathogens has improved disease control generally and helped to reduce antibiotic reliance. Specific projects to research alternatives to antibiotics have not been successful to this point, although learnings from funded research in this may lead to significant breakthroughs in the future.

Objective measures of broiler welfare identified and documented

• KPI realised • Project delivered by the CRC and final report due September

2008, project targets layer welfare but general principles are applicable to meat chickens

Improved adoption of and compliance with appropriate welfare standards, as verified by audit documentation

• KPI partially realised, largely through CRC investments • Project completed by the Program • Audit programs expected to be in place by 2014

Objective 2: Product quality and safety The degree of uptake of on-farm and processing plant food safety programs and intervention strategies

• KPI realised • By 2009 food safety programs will be in operation in all

processing plants • By 2014 food safety plans will be implemented on all broiler

growout farms Where such food safety programs have been implemented, their effectiveness as confirmed by pathogen monitoring programs

• KPI realised • KPI linked to above performance indicator • Food safety programs will be both qualitative (degree of industry

uptake) and quantitative (pathogen monitoring) • Initial results from pathogen monitoring are encouraging with

lower than expected levels of pathogens recorded

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R&D Program KPIs Achievement Objective 1: Efficiency of chicken meat production Increased awareness of safe food handling practices for chicken meat by the public and food service providers

• The R&D program has worked in partnership with the ACMF to prepare and disseminate material

• With the resources available it is not possible to gauge the success of activities undertaken in increasing the safe handling of chicken meat

• In the future this KPI will be delivered by ACMF rather than R&D. Improved public perceptions of chicken meat as a wholesome and safe food product, as measured by consumer surveys

• U&A survey underway August 2009 which compared public perceptions with 1998 results; showed that consumers hold generally very favourable perceptions of chicken meat compared to other meal choices, but also identified other perceptions that can be addressed in future research

Increased public acceptance of the use of safe and appropriate genetic technologies in poultry production

• No progress on this KPI • This is more of a ACMF issue ie requires an across industry

lobbying effort • Should not be included as a KPI in the next plan

Objective 3: Sustainable production environment Uptake of the biosecurity program by production facilities representing 50% of chickens produced, as verified by an audit process

• KPI realised • Biosecurity program for contract growers has been prepared,

implemented and its application across industry partially audited. Program is now included in standard industry contracts.

• Biosecurity program implemented in production facilities representing more than 50% of production

Control strategy and diagnostic tests to be available for each major emergency animal disease identified by industry

• KPI realised • Diagnostic tests and control strategies in place

Improved procedures implemented in at least two key areas of animal welfare as compared to current practice

• KPI realised • Addressed through animal welfare standards project • Standards incorporated in QA systems of several major industry

participants National environmental guidelines developed by 2006

• KPI realised • Industry has developed an EMS

Level of uptake of EMS by the industry

• EMS training has been delivered • Anecdotal evidence of substantial industry uptake

Level of compliance with key environmental criteria

• Unknown

A range of emission control technologies / strategies assessed at least one validated at a demonstration farm level

• KPI realised • Desk-top evaluation of technologies for odour and dust control

completed • Emission control strategies tested at demonstration farm level • None of the odour control technologies tested shown to be reliably

effective, but possible solutions for specific situations identified

Objective 4: Industry competitiveness Australian industry shown by successive benchmark analysis to have become more competitive (either technically or on a cost basis) compared to nations exporting, or seeking to export, product into Australia

• Benchmarking not complete. International benchmarking lacked necessary support from large chicken companies

Source: Program Manager Survey and Analysis of Program Records

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In summary, twenty-eight strategies with nineteen KPIs resulted in: • The delivery or expected delivery of thirteen KPIs by 2014; • A conclusion that six KPIs were either no longer relevant or would not be achieved,

these were: • Improved liveability - gains made but cannot be attributed to Program investments; • Improved production performance – again, gains made cannot be directly attributable

to R&D Program investments; • Public awareness of food safety - this KPI now finds a more appropriate ‘fit’ with

ACMF activities; • Public acceptance of GM - much too ambitious a KPI for a relatively modest R&D

program; and • Benchmarks to show the Australian industry has achieved greater international

technical or cost competitiveness - research not undertaken. • Key achievements relate to: • Disease tests/control strategies developed; • Reduced antibiotic reliance; • Animal welfare standards developed and audits in train; • Food safety programs for processing are in place; • Biosecurity programs implemented by industry, and now covering more than fifty per

cent of production; and • EMS developed and being implemented. • Projects Of the completed projects, what proportion delivered substantially on the expected outputs? Projects completed since 2004 and their delivery of expected outputs is summarised in Table 5.5. Table 5.5 Delivery of Expected Outputs

Delivery of Expected Outputs? Result Yes outputs delivered 29

Mostly delivered 5 Some outputs delivered 6 No, outputs were not delivered 5

Total 45 Source: Program Manager Survey Completed projects have delivered expected outputs in 64% of investments. This does not include projects that have ‘mostly delivered’ or provided ‘some’ project outputs. Risk/return mix What share of projects (by level of investment) were assessed at proposal stage to be high risk? Ex-post, what share of these projects delivered the expected outputs?

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Table 5.6 High Risk Projects

High Risk Project Total Project Cost Delivery of Expected Outputs

Delivery of therapeutic proteins using lactobacillus

$37,500 Too soon

Use of cytokines to enhance vaccine efficacy in poultry

$246,047 No

Using antimicrobial proteins to control necrotic enteritis in meat chickens

$401,653 No

Subunit vaccine against Infectious bursal disease virus

$791,920 Too soon

Advanced clinical diagnostics: use of real-time immuno-PCR and Light Up probes

$73,986 Some outputs delivered

Development and validation of Campylobacter micro arrays for virulence detection

$561,484 No

Development of probiotic control measures to combat Campylobacter related food borne disease using glyco array technology

$75,000 Too soon

Investigation of the prevalence of chlamydiosis in the Australian chicken meat industry

$295,780 Too soon

Use of bacteriophage and phage products to control Campylobacter in chickens

$290,326 Too soon

Total $2,699,710 Source: Program Manager Survey Nine projects were assessed as being high risk, a total investment of $2.7 million in a five-year investment Program of $22.5 million, around 12% of projects. Five of nine high-risk investments will not deliver expected outputs. This is the total of all non-output delivering projects (see Table 5.5 above). What share of these projects is expected to deliver medium to high returns for the industry or community? Five of nine high-risk projects retain the potential to deliver returns for either the chicken meat industry or the Australian community. The magnitude of these returns is not known at this stage.

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Effectiveness of Management Participatory approaches Were the approaches to developing and delivering the FYP sufficiently inclusive to capture all relevant views, and gain ownership of the R&D outputs by a large share of the industry (and other relevant stakeholders)? Industry consultation completed as part of this Performance Assessment found agreement with the statement that ‘industry involvement in developing and delivering the Five Year Plan was representative of the full range of industry participants’. Non-stakeholder observers of the Program have questioned the degree to which growers (contract growers) and secondary processors are represented in Program decision-making and the number of projects targeting these sectors. These concerns are rejected by industry, however. The membership of the R&D Advisory Committee currently (and for a number of prior terms) includes a contract grower, who also represents the growers nationally in a range of fora, and the majority of research undertaken in Goal 3 of the current Plan directly addresses grower issues and responsibilities. Secondary processors are, by in large, owned by the major chicken meat companies whose views are well represented on the Advisory Committee. The membership of the Advisory Committee which administered the current R&D Plan comprised: • Technical services manager from a large chicken company; • Senior nutritionist from a large chicken company; • Veterinarian/geneticist from a large chicken company; • Veterinarian from a medium sized chicken company; • Independent consultant with skills in flock health; • Researcher, with specialist skills in microbiology and avian health • Contract grower; • Independent consultant (Chairperson) with skills in food safety • Program Manager; and • Representative from RIRDC A new Committee was appointed in September 2008. This new Committee will be responsible for implementing the FYP 2009 to 2014 and a similar Committee composition has been retained. Financial support What share of the total project funding and resources was provided by industry? Total project funding is relatively evenly split between the chicken meat industry, resources provided through Australian Government matching funding, research organisations and others including project specific grants from industry and other stakeholders (see Figure 5.1 below). In the period 2004 to 2008, 25% of project funding was provided by industry.

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Figure 5.1 Share of Total Project Funding by Stakeholder 2004 to 2008

Source: AgEconPlus analysis of RIRDC Program data R&D capacity Has the program enabled the maintenance of, or enhanced the capacity for, undertaking R&D for the industry and related industries (researchers, skills, and research infrastructure)? Industry consultation completed as part of this Performance Assessment found agreement with the statement that ‘the Program has enabled the maintenance of, or enhanced the capacity for, undertaking R&D for the chicken meat industry and related industries - researchers, skills and research infrastructure’. Nevertheless, availability and quality of R&D providers varies across the Program. Australia has some world leading research groups in the area of food safety and avian health for example, but choice and standard of research providers is more limited in other key areas eg nutrition, husbandry and animal welfare. Over the life of the Program, and in the last few years in particular, research capacity has contracted as some research providers have withdrawn from some areas of poultry research. The Program has attempted to address deficiencies in research capacity through its participation in the creation and funding of a Chair in Poultry Science at the University of Sydney and the investment in young researchers through the Poultry CRC. To date the University has been unable to refill the Chair of Poultry Science position and a re-scoping of the role may be required. On a positive note, a number of young researchers coming through the Poultry CRC have decided to stay in the industry or in positions with research providers where they are making a continuing contribution to research for the industry. In the short term the Poultry CRC has ‘soaked up’ research capacity that might otherwise be available to the Program. However, this is not necessarily a problem as the Program is a co-investor in the CRC and some of the research strategies that the Program identified in its R&D Plan have effectively been divested to the CRC (RIRDC 2006). The CRC is an

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excellent way of providing career continuity for researchers who would otherwise drift to other industries in the absence of commitment to an ongoing program of research. The Chicken Meat Committee attempts to identify and cultivate promising new research groups through a program of research provider visitations. New research teams with expertise of relevance to the Program are continually being identified through this Committee activity (RIRDC 2006). Research capacity has been enhanced by the operation of the Program but more work is required to ensure Australia is in a sustainable position with regard to poultry research capacity. The proposed National Poultry R, D & E Strategy offers promise in this regard. Communications Has the program provided good communications channels between researchers and industry members and potential members? Industry consultation completed as part of this Performance Assessment found agreement with the statement that ‘the Program has provided good communication channels between researchers and industry members and potential members’. The Chicken Meat Program (and Committee) would possibly be considered to be relatively ‘close’ to its research community, and the Committee has an extremely active role in project development, oversight and review (RIRDC 2006). Communication between the Program and the research community is facilitated by annual Committee field and laboratory visits. These visits include calls on researchers with current projects and those that the Committee believes could contribute to the program in the future. The R&D Program does not have a newsletter, but the ACMF has a regular ‘executive update’ which is circulated to industry by email, and has recently initiated a weekly-based electronic newsletter. Research results are communicated informally through the Committee, RIRDC online and printed publications and industry workshops and forums. Representation on the Committee by the large and medium sized chicken companies along with contract growers ensures, in most cases, rapid uptake of research results. The Program could do a better job of getting research results to smaller industry players but this is being addressed at the current time. Smaller industry players, and therefore the industry as a whole, have much to gain from improved information flows that would lift overall bird welfare and pathogen control in particular. A communication plan for the Program is articulated in Chapter 11 of this document. Industry consultation completed as part of this Performance Assessment found agreement with the statement that ‘the Program has provided good communication channels between researchers and industry members and potential members’.

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Efficiency Timeliness What proportion of projects was completed on time? For current projects, what proportion has met their milestones on time? Results for completed and current projects, for which data is available on timeliness is summarised in Table 5.7. Table 5.7 Projects Completed and Milestones Met On Time

Projects completed on time or milestone met for current project Projects Yes 64

With qualifications 12 No 20

Total 96 Source: Program Manager Survey Including projects completed/milestones completed ‘with qualifications’ a total of 79% of projects met timeliness requirements. A ‘snapshot’ of management actions required as a result of lack of timeliness and other non performance issues is provided in the RIRDC Annual Program Review: ‘In 2007 one project was terminated ‘as it become clear that the intended outcomes of the project were unachievable, another research group was threatened with project termination due to the inadequacy of the originally submitted final report and failure to meet deadlines for resubmission, and the submission of final reports on several projects was delayed’ (RIRDC 2007). Another project was terminated in 2007/08, with the agreement of the research organisation, when it became apparent that the originally envisaged research plan would not deliver on project objectives. Program timeliness and management is closely monitored. Reducing duplication Is the Advisory Committee aware of R&D being undertaken outside of the RIRDC Chicken Meat program in making decisions about Program investments? Table 5.8 provides a list of other chicken meat R&D initiatives and Advisory Committee awareness with regards to research status and avoiding duplication.

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Table 5.8 Advisory Committee Efforts to Avoid R&D Duplication

Research Sector Advisory Committee Linkages Chicken meat and stock feed companies • Advisory Committee informed by members that include

representatives of chicken meat companies and major customers of stock feed producers.

Breeding companies • Several members of the Advisory Committee are from chicken meat companies which also own hatcheries with links to international breeding companies

Pharmaceutical, vaccine and feed additive companies

• Some trial and efficacy work completed in Australia in consultation with the Advisory Committee. Most of this is undertaken by companies who have members on the Advisory Committee

Higher education institutions, CSIRO and State DPIs

• Coordination through conferences, workshops, etc and use of researchers from these organisations on RIRDC Chicken Meat projects.

Overseas research • Committee well aligned to overseas research. Individual committee members with strong linkages and review capacity. FYP strategy regarding ‘clearing house for international research’ delivered by the Advisory Committee

Australian Egg Corporation Limited • Projects jointly reviewed with representatives of the Advisory Committee through formal CRC linkages and informally through direct contact at Research Manager level.

Australian Poultry CRC • RIRDC Chicken Meat Program is a co-investor in the Poultry CRC and some research strategies have been effectively divested to the CRC. The Advisory Committee has members who are also CRC Board members, members who are on the R&D Committee of the CRC, and the Program Research Manager is the CRC’s Deputy CEO. The current FYP spells out research responsibilities between the two organisations.

Source: AgEconPlus analysis The Advisory Committee is well informed of other research in the industry and is all too aware of the need to avoid replication and duplication. Industry consultation completed as part of this Performance Assessment found agreement with the statement that ‘the Advisory Committee is aware of R&D being undertaken outside of the RIRDC Chicken Meat program in making decisions about Program investments’. How many projects have been amended to reflect other known research? Data is not available on the number of projects that were amended to reflect other known research. However, the Program Manager advises that the majority of research proposals are amended prior to finalisation following feedback from the Advisory Committee. The Advisory Committee is routinely aware of additional work relevant to the project proposal in related areas. The Advisory Committee is active in tailoring projects to meet industry needs.

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Promoting partnerships How many new partnerships have been formed as a result of the program bringing together researchers and industry members? Review of RIRDC Program records with the Program Manager revealed that for 17 key projects new researcher and industry partnerships were formed. Details of a sample of these projects and resultant partnerships are provided in Table 5.9.

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Table 5.9 New Partnerships Formed by the Program

Project Nature of the Partnership Improved control measures for infectious bursal disease virus (IBDV)

• Good collaborative arrangements with industry established for submission of suspect samples.

Characterisation and modulation of virulence of endemic IBDV strains

• Submission of samples from many sectors of industry for assessment and for validation of the new tests.

Trialling natural agents for control of darkling beetles

• Working with chemical supply companies to trial the effectiveness of novel strategies against new chemical treatments; working with industry collaborators to trial products.

Premium grains for livestock program (stage 2) and Digestible amino acids and improved broiler performance

• New collaborations between funding bodies and research organisations established during both projects.

Accurate, real-time description of available energy in cereal grains

• Industry nutritionists have been engaged to supply samples for analysis; results to be fed back to submitters to enable them to assess the value of the new tests in their own operations. Project being run with a steering committee of industry nutritionists.

Investigation of IBH outbreaks in Australian meat breeder/broiler flocks and establishment of an avian adenovirus typing facility and service

• Industry contributing samples for test validation, and to have cases of suspected IBH tested. These tests have also become one of the tests offered by the Avian Health Diagnostic Lab, which was set up with the support of the Poultry CRC.

Establishment of a Chair in Poultry Sciences at the University of Sydney

• Industry partners have agreed to provide the funding to attempt to refill this position.

Improvement of lupins and lathyrus for broilers and egg layers by enzyme treatment

• Funded jointly with AECL.

Differential typing of Campylobacter • Industry has been providing isolates to the researcher for typing. Good collaborative arrangements between research organisations established to bring this project to fruition.

Baseline survey of Campylobacter and Salmonella during chicken processing and Effect of new intervention strategies in Salmonella and Campylobacter during chicken processing

• Industry fully participated in this project by allowing access to their processing plants for the purposes of sample collection and, subsequently, participating companies shared the results with each other and with the industry more broadly.

Molecular epidemiology of antibiotic resistance in Salmonella from chickens and Expansion and refinement of a molecular typing system for Salmonella

• All of industry provides the samples for this work to be undertaken.

The Workboot Series - The story of chicken in Australia

• Many industry participants assisted by reviewing parts of the document and in helping to compile an image library to support it.

QA Workshops – Pre-Workshop Micro-organism Surveys

• All major producers collaborated in a microbiological survey of product from each of their plants and participated in a workshop to share results and discuss what they can do to improve pathogen control in processing plants.

Nutrient composition of chicken • The two largest companies are collaborating to provide samples from three states for analysis.

Pathogen reduction workshops • All major producers collaborated in a workshop to share results and discuss what they can do to improve pathogen control in processing plants

Source: AgEconPlus analysis of Program Manager records

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The program has been successful in establishing industry and researcher partnerships. Management resources In Full Time Equivalents (FTE) what is the estimated time spent by RIRDC program management staff on the program (annual average over the program life)? Estimated average annual FTE commitment to the Program by RIRDC is summarised in Table 5.10. Table 5.10 Program Management Resources

Role FTE 2008 FTE 2004-07 General Manager Established Rural Industries (Canberra) 0.1 0.1 Program Coordinator RIRDC (Canberra) 0.1 0.1 Program Manager (Sydney) 0.5 0.5 Program Development and Communication Coordinator (Sydney)

1.0# 0

Total 1.7 0.7 Source: AgEconPlus analysis. # It is noted that the Program Development and Communication Coordinator role is newly created and was not part of the Program for four of the five years being reviewed. Program management resources currently total 1.7 FTE but were 0.7 FTE for most of the current FYP period. Aggregation of Performance Assessment Results In order to reduce the biases inherent in subjective analysis the aim was to elicit responses from stakeholders representing at least three different perspectives to the questions (triangulation). AgEconPlus has triangulated subjective data wherever possible. For example the Program Review (PR) Survey targeted chicken companies, contract growers, researchers, policy makers and others. PR Survey questions were answered using a five-point scale. Survey questions were framed in terms of strength of agreement with the statement: strongly disagree (-2), disagree (-1), neutral (0), agree (1), strongly agree (2).

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Table 5.5 Chicken Meat Performance Assessment Results

Indicator Measurement Score Relevance Priorities set and revised based on industry needs PR Survey 1 – agree Plan objectives proved relevant PR Survey 1 – agree Strategies were realistic given funding and research capabilities PR Survey 1 – agree Share of project proposals directly addressing strategies PM records 93% Alignment of expenditure with Program indicative allocations PM records# N/A Effectiveness of the R&D Share of KPIs at objective level realised or expected to be realised within 5 years

AC PR Survey* N/A

Share of KPIs at strategy level realised or expected to be realised within 5 years

AC PR Survey 68%

Share of completed and current projects delivering expected outputs (NB: excludes projects with only some outputs delivered)

AC PR Survey 64%

Share of projects assessed ex-ante as high risk AC PR Survey 12% Share of these projects delivering expected outputs (potentially) AC PR Survey 44% Effectiveness of management Industry involvement in Program is representative of full range of industry participants

PR Survey 1 – agree

Share of total project funding provided by industry (cash and in-kind) PM records 25% The R&D investments helped to maintain R&D capacity in critical areas of industry/stakeholder need

PR Survey 1 – agree

The Chicken Meat Program has direct communication channels to industry members through newsletters, web sites, other media

PR Survey 1 – agree

Efficiency Proportion of projects completed on time (including those completed ‘with qualifications’)

PM records 79%

R&D undertaken outside the Chicken Meat Program is known and taken into consideration in selecting and advising on proposals

PR Survey 1 – agree

Number of partnerships formed as a result of the Program – researcher, industry and other (measured in project numbers)

AC PR Survey 17

FTEs required for RIRDC program management (annual) PM records~ 0.7 Source: RIRDC Evaluation Framework (2008) page 13. # Not stated for this program in 2004. * KPIs not developed at the objective level in 2004 ~ Relevant for the period 2004 to 2007, in 2008 FTE increased to 1.7 PR= Program Review, PM = Program Manager, AC = Advisory Committee, FTE = Full Time equivalent

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Lessons Relevance • A relevant FYP was developed by the Chicken Meat Program for the period 2004 to

2009. • Strategies were appropriate and well articulated to the research community. • Resources were appropriately allocated across objectives and strategies with the

exception of Objective 4 ‘International Competitiveness’. Animal welfare research was under funded.

Effectiveness of the R&D • Thirteen of nineteen FYP KPIs have either been delivered or will be delivered by

2014. • Completed projects have delivered expected outputs for around 64% of investments. • High-risk projects total about 12% of the Program by value. Around half of these have

the potential to deliver an industry or community return. Effectiveness of management • Participatory processes used by the Program are sound. Ongoing consultation with and

projects for contract growers and secondary processors is an ongoing priority. • The industry (25%), the Australian government (25%), researchers (33%) and others

(17%) each contribute broadly similar amounts to Program funding. • The Program has endeavoured to enhance R&D capacity. Further work is required in

this area and will be addressed through the proposed National Poultry R, D & E Strategy.

• Communication with researchers, large and medium chicken companies and contract growers is effective. Further work is required to deliver outputs to small chicken companies (who have much to gain from lifting their bird welfare and pathogen control standards).

Efficiency • Approximately 79% of completed and current projects met timeliness requirements. • The Advisory Committee is well informed of other research in the industry and is all

too aware of the need to avoid replication and duplication. • The program has been successful in establishing industry and researcher partnerships. • The program has been modest in its requirements for human resources – requiring 0.7

FTE in the years 2004 to 2007 and 1.7 FTE thereafter. Performance assessment results inform the RIRDC Chicken Meat R&D Plan 2009 to 2014.

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6. External Priorities and R&D Priorities in Other Industries

Priorities for the RIRDC Chicken Meat R&D Plan 2009-2014 need to be set against knowledge of: • The broader national R&D agenda, including Australian Government National

Research Priorities, Australian Government Rural Research Priorities and RIRDC Corporate Goals;

• International chicken meat research trends – including similar programs in the United Kingdom, Canada and the United States; and

• Investments in linked, competing and similar industries – including priorities in the grains, red meat, pork and egg industries.

A review of research priorities in each of these areas along with a summary of lessons learned is presented in this chapter. National Priorities and Rural Research Priorities The nation’s research agenda is currently under review (October 2008). Early indicators from this review process are: • Agricultural industries must work to dramatically increase their productivity to deal

with the threat of climate change (The Cutler Review – Venturous Australia September 2008);

• Australia generates 2% of global R&D outcomes, it must build effective linkages to tap the other 98% of new knowledge (The Cutler Review – Venturous Australia September 2008);

• Human capital and research capacity is critical (The Cutler Review – Venturous Australia September 2008). PISC and others are concerned by loss of research capacity (researchers) in industries such as chicken meat;

• Collaboration is a key priority for Government and research programs such as this must work in with similar endeavours (eg egg industry research) and leverage research potential. A national R, D & E strategy for poultry research is to be prepared (PIMC and PISC 2007); and

• Rural R&D must be able to demonstrate ‘spillover’ benefits to the broader Australian community if it is to retain Australian taxpayer support (Council of Rural R&D Chairs 2007).

Formally, Australian Government National Research Priorities are: • An environmentally sustainable Australia; • Promoting and maintaining good health; • Frontier technologies for building and transforming Australian industries; and • Safeguarding Australia. Government priorities for Rural Research updated in May 2007 and current October 2008 are (http://www.daff.gov.au/agriculture-food/innovation/priorities):

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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 the Rural Research and Development Priorities: • Innovation skills - improve the skills to undertake research and apply its findings. • Technology - promote the development of new and existing technologies. The Government Priorities for Rural Research have been incorporated into RIRDC Corporate Goals and the objectives of the Chicken Meat R&D Plan 2009-2014. RIRDC Corporate Goals RIRDC’s Corporate Goals, expressed through RIRDC Corporate Plan 2007-2012 are: • Develop new opportunities – to achieve a more diverse rural sector through

development of new agricultural and related industries; • Adopt new technologies and systems for established industries – to enhance and foster

innovative rural industries through targeted investment in research and development; • Improve the competitiveness and sustainability of Australian agriculture - to enhance

the efficiency and sustainability of agriculture by research into trade and environmental options to improve profitability while safeguarding future agricultural production potential; and

• Underpin innovation and change in Australian agriculture – to build a broader comprehension of farm and regional community opportunities and human capacity for change, learning and innovation in Australian agriculture.

RIRDC’s Corporate Goals are driven by the principle that it will invest in projects that address the triple bottom line – projects that are environmentally, socially as well as economically attractive.

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United Kingdom, Canada and United States Research Poultry research priorities in the UK (www.defra.gov.uk), Canada (Canadian Poultry Research Council www.cp-rc.ca) and the US (US Department of Agriculture www.usda.gov) include: • Food safety: antibiotic resistance, and alternatives in production systems; prevalence

of human pathogens in poultry populations; biosecurity; bird health. • Production: feed conversion, medicated feed, use of GM crops in feed; water quality;

building design and specifications; feed withdrawal. • Animal welfare: housing; stocking density, catching and transportation. • Environmental: nutrient management; dead bird disposal and climate change

adaptation. • Consumer: nutritional values and enhancement; value-added products (e.g., dark

poultry meat, skin quality). • Economics: system performance and competitiveness; benchmarking; sustainability. These priorities are consistent with the current RIRDC Chicken Meat R&D Program. Grains R&D Corporation Program The grains industry provides feed to the chicken meat sector. Feed represents 65% of the cost of producing a live chicken and the importation of feed grains is difficult and not an option for most industry participants. It is pertinent to understand R&D priorities in the Australian grain industry. The Grains R&D Corporation (GRDC) is responsible for planning, investing and overseeing R&D, delivering improvements in production, sustainability and profitability across the Australian grains industry. GRDC invests approximately $130 million pa. Its priorities, as expressed through its Annual Operating Plan 2007-08, are new variety development (50% of funding), cropping practices research including sustainability and crop protection (34%), new product development including value chain and business development investments (10%) and communications and capacity building (6%). Allocations to new product development and communication and capacity building are in strong contrast to the current RIRDC Chicken Meat R&D Program. Meat and Livestock Australia R&D Program Meat & Livestock Australia (MLA) provides R&D and marketing services to the red meat industry. MLA has an annual R&D budget of approximately $70 million. Research priorities include: • Animal health and welfare; • Meat quality; • Animal genetics; • Environmental management; • Product and bi-product development; • OH&S; • Food safety; • Education and training; and • Technology development and commercialisation.

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Scale of R&D investment ($70 million pa in red meat research or around 0.4% of GVP compared to $3 million in chicken meat R&D or around 0.2% of GVP) is the single biggest ‘take home’ message from review of this competitor’s R&D program. However, it needs to be noted that the Australian red meat industry consists of a large number of disparate farmers, whereas the vertically integrated nature of the chicken meat industry (and large size of the major players) means that a significant proportion of the research in this industry is undertaken in-house.

Australian Pork Limited

Australian Pork Limited (APL) invests in research and innovation across (www.australianpork.com.au): • Marketing, supply chain and product development; • Genetics, genetic modification and genetic transfer; • Production and product quality; • Industry capability and technology transfer; • Environment and welfare; and • Quality assurance, biosecurity and food safety.

Pork invests around $7.1 million pa in research and innovation or around 0.8% of GVP. It is noted that pork has a standalone environment and welfare program as well as investments in marketing, supply chains and product development.

Australian Egg Corporation Limited

AECL egg industry research priorities address: • Flock health and disease management; • Environmental sustainability; • Building egg demand; • Food safety; • Animal welfare; • Profitability; • Feed availability and nutrition; • Supply chain and egg distribution; and • Training, information and technology transfer.

There is ample scope for ongoing cooperation between the Chicken Meat R&D Program and AECL.

Lessons Learned Review of national research priorities along with R&D priorities in other industries reveals the following lessons: • Productivity, international linkages, researcher capacity development, collaboration

and benefits for the Australian community are key messages for the research Program from the Australian Government.

• Research priorities in overseas chicken meat industries and linked, competing and similar industries in Australia share common goals with the RIRDC Chicken Meat Program.

National research priorities, along with priorities in other agricultural and international programs, were used to set directions for the Chicken Meat R&D Program 2009-2014.

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7. Consultation Findings Consultation to secure broad ownership of future research directions was completed with chicken breeders, broiler grow out farms, processors, market analysts, researchers and policy makers using the following process: • Review of the Chicken Meat R&D Program including current plan objectives, history,

performance (relevance, effectiveness, efficiency) and outlook for the R&D Program, national research priorities, research priorities in other industries and key questions for consideration;

• Distribution of a returnable Chicken Meat R&D Program survey informed by the Program Review. Twelve survey sets were returned across all stakeholder groups except contract growers;

• Presentation of the review of the Chicken Meat R&D Program to the 15 September 2008 Sydney workshop and workshopping of potential research priorities with stakeholders;

• Targeted follow-up with key stakeholders with additional requests for comment on specific objectives and strategies; and

• Circulation of a draft five-year R&D Plan to the Chicken Meat R&D Advisory Committee for comment.

Results from the consultation process have been aggregated and reported in the section below. Overall there was support for the Program as detailed in the current Five Year Plan and the need to build on directions already set. Future R&D Priorities

Survey respondents were asked whether the RIRDC Chicken Meat Program should spend more or less of its total budget on its four current research objectives and whether they could nominate any new areas requiring research that the Program was not addressing. Priorities, relative to expenditure for the period 2004-2008, are shown in Figure 7.1. Figure 7.1 Future R&D Priorities – Relative to Expenditure 2004-08

0

5

10

15

20

25

30

35

Efficiency ofproduction

Product qualityand safety

Sustainableproduction

environment

Industrycompetitiveness

Rel

ativ

e Im

port

ance

Source: Chicken Meat industry survey results

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From Figure 7.1 it can be seen that relative to the high levels of expenditure on efficiency of production (41% of total R&D budget) during the period 2005-08, more research was requested on: • Product quality and safety; and • A sustainable production environment. Survey respondents identified the most pressing R&D needs for the chicken meat industry 2009 to 2014 as being: • Research to secure a cost effective and reliable supply of feed; • Bird health and nutrition; • Animal welfare; • Chicken meat microbiological safety (most frequently mentioned); • Environmental management; and • Research capacity building. When asked what they considered to be the biggest research breakthrough the R&D Program could deliver for the chicken meat industry, survey respondents identified: • Improved feed conversion – feed is the industry’s single greatest cost; • Chicken meat free of pathogens to humans; • Effective, practical on-farm and in-plant interventions to reduce Campylobacter

numbers on chicken meat; • Microbiologically safer chicken meat. Decrease Salmonella and Campylobacter

numbers on chicken meat to harmless levels (through application of existing research and industry knowledge);

• Sustainable environmental management; and • Improved management of farm and processor odour. Areas survey respondents felt the Program was not addressing were: Animal welfare and biosecurity; Environmental management and resource management issues in the processing plant; Climate change and carbon footprint; Alternative energies; Management of environmental problems and resource issues in the processing plant segment; and Adequate provision for the next generation of researchers. Other key messages to emerge from survey respondents included: • Some project applications do not have a plan for the adoption of the research by

industry. They focus more on scientific output than what will be the industry outcome; • Need to be forward thinking eg climate change- strategies for collection and recycling

of water; and • RIRDC has been slow to publish chicken meat R&D research reports, improvement in

this area would be good. The results from the survey inform Five Year Plan development.

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Specific Research Suggestions Specific suggestions for new areas of research to ‘flesh out’ the above priorities were developed after considering survey results and the outcomes of the 15 September 2008 R&D planning workshop. Suggestions included: Production Efficiency and Improved Productivity • To keep on improving industry production efficiency • Production efficiency, feed, nutrition, flock health, biosecurity and husbandry R&D

needed • Genetics (via selective breeding and no GM) to continue to be sourced from overseas • Ongoing R&D to improve feed conversion efficiency • Identify new and potentially novel feed sources • Feed research - Australian feed ingredients have their own set of characteristics, and

importation of feed grains is not generally an option • R&D to address input costs especially as a result of climate change (feed, energy, etc) • Reducing feed conversion rate is good for climate change outcomes • Address husbandry issues that constrain production or result in adverse animal welfare

outcomes • Develop additional and more efficient disease control techniques • R&D requiring product registration unlikely to be worthwhile • Drive efficiency, productivity and industry expansion to ensure Australian food

security • R&D to further lower/remove the use of antibiotics in production • Monitor outcomes from the IRA process to identify and respond to biosecurity risk

implications • Support research to increase the efficiency of the fast growing free range and organic

sectors Animal Welfare • Invest here for public spillover community benefits • Address key animal welfare measures – skeletal integrity, ascites, stocking densities • Nutritional research to improve animal welfare outcomes • Develop objective methodologies for measurement • Include an animal welfare dimension in all R&D projects • To address lack of animal welfare research capacity, tender out a three year sub

program and work up research projects with institutions • Chicken meat buyers are asking for this so need to address and be on the front foot • Understand changes in animal welfare requirements internationally, and the

implications of these • During the life of this plan the new animal welfare standard will be developed; we

need research to inform this standard • Objective standards for animal welfare in the chicken meat industry are a good place

to start. Most of this is already known, just needs review, packaging and application to the chicken meat industry with support training and workshops

• At the very least we should be monitoring overseas developments

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Food Safety and Security • (Invest here for public spillover community benefits) • Leverage off other organisations (eg Biosecurity CRC) to deliver food safety

outcomes • Biosecurity – risk from free range industry to conventional production • Develop additional strategies for Campylobacter management • Invest in the development of a Salmonella vaccine • Extension of current knowledge (eg Campylobacter and Salmonella) into wider

industry • Consumer education on food safety Sustainable Production in a Changing Environment • (Invest here for public spillover community benefits) • To adapt to and capitalise on opportunities in a climate change environment • Understand the world of the future and how industry can adapt to take advantage (of

climate change) • Climate change research to minimise costs and realise opportunities (0.3% of

emissions emanate from chicken meat sector, 16% from beef, lift FCR and you lower methane production)

• Make use of the cross-RDC funded lifecycle analysis methodologies under development

• Further investment to measure and understand the industry’s carbon footprint • Reduce the industry’s carbon footprint – energy efficiency, energy generation from

waste (cost) • Participate in DAFF’s climate change program and leverage R&D resources • Dust, odour and waste disposal minimisation strategies • Investigate waste value-adding opportunities • EMS follow up to reduce pollution of land, air and water • Projects that specifically target neighbour impact issues • Tools to support local government planning outcomes that favour industry

existence/expansion • It is important that climate change research includes pathways to adoption Markets and Intelligence Gathering • Understanding markets at retail (‘what does the trade want’) and consumer (‘what

does the consumer want’) levels • Don’t sell chicken as a cheap food, reposition in the market as a quality product • R&D which provides the data to helps correct incorrect perceptions of the industry and

its products • Understand what consumer requirements are • Inform and educate school kids • We lag in promoting the health benefits of chicken because we haven’t got solid data,

this is a research job – this is market research • Intelligence gathering – understanding developments in welfare, OH&S, food security,

etc

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Human Capital Formation and Extension • Implement the agreed recommendations of the new National Poultry R, D&E Plan • Develop a long term plan for capacity planning – five years is not long enough • To ensure ongoing Australian chicken meat research and extension capacity • Optimise people’s participation and develop their potential to contribute to the

industry • To proactively develop linkages with other researchers and leverage a small R&D

program into a worldwide pool of knowledge generation (travel awards useful here) • Build capacity and industry outcomes by tapping into international collaborative

opportunities, i.e. projects and travel grants. Joint projects with DAFF and chicken companies also possible

• To develop joint venture projects with other research and government agencies, including AECL, CRCs, etc

• Additional scholarships for researchers and technical training for people in companies • Whole of industry capacity building ie researchers, farming, processing • Strategies to address both skills and labour shortages • Support young researchers by providing international linkages (and meet government

priorities) • Australia is 2% of global R&D outcomes, so must build linkages to tap into the other

98% • Provide travel awards to promising (young) researchers • Collaborate with AECL, the CRC and other researchers in joint ventures to produce

better R&D outcomes • Where researcher capacity constraints exist, import skills – eg scholarships, retired

people • Explore opportunities for Chicken Meat R&D Program research to be completed

overseas • Allocation of funds to explain the public benefit story resulting from Program research • Continue program of visiting researchers with active and potential projects; maybe

expand to include program beneficiaries and local government • Work with other industries to attract young people/researchers into agriculture • Additional and stronger links to research suppliers – what do you need, how do we

train you, what is the succession program, etc Consultation findings drive the development of the new R&D plan.

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8. Industry Commitment to Research

The Australian Chicken Meat industry is committed to R&D. Questions posed during R&D plan consultation revealed: • Agreement with the statement ‘Investment in R&D through the current five-year plan

improved the sustainability and profitability of the chicken meat industry’; and • Strong agreement with the statement ‘the government should continue to match each

dollar industry provides to the RIRDC R&D Program’. Support for the program has also shaped the proposed new R&D plan.

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9. The R&D Program 2009 - 2014 Key Themes Shaping Future Research Directions Key themes emerging from Program review, external priorities, consultation and the direction-setting workshop are: • Understanding, adapting to and profiting from climate change; • Collaboration and working toward the National Poultry R, D and E strategy; • Rebuilding the industry’s human and institutional research capacity; • Recognition that food safety is imperative to ensure ongoing consumer confidence; • Acknowledgement that bird welfare is a legitimate community concern that warrants

research; • Understanding that appropriate market research is a valid use of industry R&D

resources. Goal To stimulate and promote R&D that will deliver a profitable, productive, sustainable Australian chicken meat industry that provides quality wholesome food to the nation Objectives Six objectives drive the 2009-2014 R&D program:

1. Production efficiency for profit, climate change response and food security outcomes

2. Animal welfare – a proactive response that includes objective standards and training

3. Food safety – for enhanced consumer confidence and industry returns

4. Addressing climate change, delivering resource use efficiency and environmental outcomes

5. Market research and intelligence gathering to inform industry decision making

6. Collaboration to deliver human capital formation and extension outcomes Objectives should be regarded as complementary, with flexible boundaries to enable key issues to be addressed either simultaneously or sequentially through several components of the Program. Strategies Strategies indicate specific research areas that will contribute to achieving the six objectives. Strategies have been defined at a level that gives research providers guidance on where RIRDC is intending to target its investments over the period 2009-2014 and are intended to contribute to the longer term planning requirements of those providers. Strategies will be complemented with more specific research priorities published annually that provide more detailed guidance about the project areas that RIRDC is seeking to fund in the coming year.

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Key Performance Indicators Key performance indicators (KPIs) are provided to assess whether the research strategies have contributed to the R&D objectives. Where possible, performance indicators have been linked to benchmarks for previous chicken meat industry performance. KPIs are SMART - that is they are Specific, Measurable, Achievable, Realistic and Time based. Resource Allocation Budget allocation has been prepared following analysis of historical allocations and consultation findings see Table 9.1 below. Allocations acknowledge a $360,000 pa (15%) funding allocation for a new poultry CRC for the period 2009 to 2016. The funding providing to the Poultry CRC is allocated on a pro-rata basis across all of the identified objective areas. Table 9.1 Suggested Resource Allocation by Plan Objective (%)

Objective

Table 1 R&D

W’shop

Table 2 R&D

W’shop

Table 3 R&D

W’shop

Table 4 R&D

W’shop

Table 5 R&D

W’shop

Proposed Allocation (2009-14)

Production efficiency 20 30 45 20 40 30 Animal welfare 13 0 5 20 15 7 Food safety 20 20 25 30 25 30 Environment and resources 13 25 20 20 15 20 Markets and intelligence 14 15 0 0 0 3 Human capital formation and extension 20 10 5 10 5 10

Total 100 100 100 100 100 100 Source: AgEconPlus analysis of 15 September 2008 workshop outcomes It is noted that the 57% of projects under the proposed target public spillover benefits. Chapter 10 of this document provides a consolidated plan budget based on a ‘normal case’ scenario.

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Objective 1: Production Efficiency for Profit, Climate Change Response and Food Security Outcomes Objectives To improve the efficiency and productivity of chicken meat production and address climate change and food security challenges through improved feed management, nutrition, flock health, biosecurity and husbandry. Overseas selective breeding programs to continue to supply the Australian industry with genetic material and the RIRDC Program to add value to this resource through adaptation of chicks to Australian feed supply, animal health and production conditions. Addressing this objective has proved to be a fertile and successful area for the RIRDC Chicken Meat R&D Program. Additional research capacity is needed to deliver strategies that address bird nutrition, physiology and husbandry. Strategies • Ongoing R&D to improve feed conversion rates in meat chickens. • Research to identify new and cost effective feed sources for the Australian chicken

meat industry. • Ongoing development of nutritional strategies to improve nutrient utilisation through

the optimisation of gut health and manipulation of nutrient constituents, including water.

• The development of additional, more efficient and lower cost disease prevention and control techniques for endemic, emerging infectious and non-infectious poultry diseases.

• R&D to further reduce the industry’s use and reliance on antibiotics for production. • Monitoring of outcomes from the Import Risk Assessment process to identify and

respond to biosecurity risk implications from any change in current quarantine conditions.

• Address husbandry and physiology issues that constrain production and or result in adverse animal welfare outcomes.

• Embrace the need for production efficiency and productivity improvement in the fast growing free range chicken meat sectors.

Performance Indicators and Related Measures • Investment is made to address lack of nutrition, physiology and husbandry research

capacity by 2011. • A 5% lift in production efficiency, attributable to nutrition, flock health and husbandry

research outcomes, by 2014. • Two new diagnostic tools and control strategies available for important endemic and

emerging diseases by 2014. • Further reduction in the use of antibiotics in production by 2014. • At least one significant project that tackles production efficiencies in the free range

sectors by 2013. Indicative Share of R&D Budget • 30% of the program budget to be allocated to Objective 1. • Historically this area has received 40% of the R&D budget.

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Objective 2: Animal Welfare – A Proactive Response that includes Objective Standards and Training

Objectives To proactively respond to emerging consumer and retailer concerns about the treatment of chickens during production, transportation and processing with objective scientific data, welfare standards, industry training and audited compliance. Delivery of this objective will generate community benefits and assist with the ongoing sustainability and positioning of the Australian chicken meat industry.

Additional research capacity needed to deliver animal welfare strategies.

Strategies • Develop objective measures and standards for animal welfare in the chicken meat

industry • Facilitate the adoption of objective standards for animal welfare in the chicken meat

industry through support for training and workshops and the linking of standards to QA and other programs.

• Promote attendance at training and workshops by smaller underperforming industry operations with the greatest scope for improving industry welfare outcomes.

• Research nutrition issues linked to improved animal welfare outcomes. • Ensure that all projects funded by the Program enhance, or at least do not result in the

deterioration, of welfare outcomes for chicken meat birds. • Monitor overseas and other species (eg eggs, pigs, etc) animal welfare policy trends

and research outcomes for applicability to the Australian situation. • Understand the potential implications for the Australian industry of overseas policies

and regulatory changes. • Use research findings on animal welfare to make informed, positive and beneficial to

industry contributions to Australian Government animal welfare guidelines that will be revised and updated during the life of this plan.

• Address the current lack of animal welfare research capacity by tendering out a three-year program of work and develop projects in this program in partnership with research institutions.

Performance Indicators and Related Measures • Investment is made to address lack of animal welfare research capacity by 2011. • A sub-program of animal welfare research established with an appropriate institution

by 2011. • Several science based measures for key chicken animal welfare attributes by 2013. • Use objectives measures to assess welfare outcomes associated with several key

management / husbandry practices by 2014. • Chicken meat industry contributes to new Australian Government welfare standards

by 2014.

Indicative Share of R&D Budget • 7% of the program budget to be allocated to Objective 2. • Historically this area has not been a ‘stand alone’ research objective – multiple

projects have had a welfare component. No animal welfare specific projects were funded under the 2004-09 Plan.

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Objective 3: Food Safety – for Enhanced Consumer Confidence and Industry Returns Objectives To enhance the quality and safety of chicken meat products and in so doing improve the product and the industry’s image. Food safety research and extension to focus on all parts of the supply chain including: farm, processing, transport, retail (eg food service providers) and consumer activity. Delivery of this objective will generate both industry and community benefits.

Industry has access to appropriate research capacity for the delivery of food safety strategies. Food safety has not been an area targeted for research by the Poultry CRC to date and is an important area of operation for the RIRDC Chicken Meat R&D Program.

Strategies • Monitor and evaluate the success of food safety programs and plans in place in

Australian chicken meat production and processing plants, and ensure they are relevant to FSANZ Primary Production and Processing Standards.

• Develop additional through-chain strategies for control of Campylobacter and other food safety pathogens.

• Investigate the feasibility of developing a live Salmonella vaccine in Australia suitable for use in the chicken meat industry.

• Research the biosecurity threat associated with the transfer of micro-organisms from the free-range industry to conventional production.

• Provide opportunities (eg training and workshops) to extend current research knowledge on micro-organisms such as Campylobacter and Salmonella into the wider industry, including the industry’s supply chain.

• Collaborate with other research organisations (eg the Biosecurity CRC) to deliver efficient and effective food safety outcomes.

• Ensure that industry and relevant research groups remain up to date with international developments in Campylobacter research and intervention strategies for Campylobacter, through participation in international Campylobacter meetings and industry/researcher study tours

• Work in partnership with the ACMF to improve public awareness of safe handling of chicken meat products.

Performance Indicators and Related Measures • Design and deliver a program of training workshops to extend current research

knowledge on pathogen control to the wider industry, including all parts of the supply chain, by 2012.

• Processing plant microbiological test results demonstrate 10% reductions from current very low levels by 2014.

• Investigation of the feasibility and return on investment of a live Salmonella vaccine and additional Campylobacter research by 2014.

• Improved public perceptions of chicken meat as a wholesome and safe food product in response to both R&D Program investments and ACMF activities, as measured by an updated Usage and Attitudes Survey in 2018.

Indicative Share of R&D Budget • 30% of the program budget to be allocated to Objective 3.

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• Historically this area has received 20% of the R&D budget and the stakeholder survey identified food microbiological safety as a key threat to the industry and the highest priority for the 2009-2014 R&D Plan (see Figure 7.1).

Objective 4: Addressing Climate Change, Delivering Resource Use Efficiency and Environmental Outcomes Objectives To adapt to and capitalise on opportunities presented in a climate change environment. To deliver resource use efficiency and environmentally sustainable outcomes to the Australian chicken meat industry. Delivery of this objective will yield both industry and community benefits.

Strategies • Understand and capitalise on opportunities presented by factoring climate change into

Australian political and economic decision making. • Initiate further research to measure and understand the chicken meat industry’s

environmental footprint using the life cycle analysis methodologies currently being developed in collaborative RDC projects

• Initiate research to minimise the costs of climate change adaptation and realise opportunities associated with chicken meat’s modest carbon footprint relative to alternative protein sources.

• Further enhance the industry’s modest carbon footprint by investing in energy use efficiency, energy generation from waste, water recycling, and litter management/reuse initiatives.

• Initiate research to identify opportunities and strategies for industry to minimise its use of water through recycling and other means, without compromising product safety and quality

• Research the full suite of litter management options – reuse, sale as fertiliser, ammonia capture, burn as biofuel, etc, - to provide tailored solutions for individual growers.

• Participate in DAFF’s Climate Change Program, where appropriate, to leverage R&D funds and achieve additional climate change, resource sustainability and environmental outcomes.

• Develop R&D projects that specifically address the negative impact of chicken meat production on neighbours – including dust, odour and noise.

• Develop tools to assist industry to achieve favourable local government planning outcomes – tools might include ways of objectively analysing neighbour impacts and consequent mitigation strategies.

• Follow up the industry’s initiatives with EMS to ensure implementation and effective outcomes in relation to land, air and water pollution. Where shortfalls are identified design research projects to facilitate delivery of EMS goals.

Performance Indicators and Related Measures • Sound Australian data and learnings on which to base industry’s claim to having a

modest carbon footprint by 2011. • Climate adaptation strategies prepared by 2012. • Consideration, if the opportunity arises of a joint project with DAFF’s Climate Change

Program completed by 2013.

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• A litter management manual with options for a range of industry situations by 2014. • Local government planning support tools by 2015. • EMS uptake and compliance at the 80% level by 2015. Indicative Share of R&D Budget • 20% of the program budget to be allocated to Objective 4. • Historically this area has received 23% of the R&D plan budget. Objective 5: Market Research and Intelligence Gathering to Inform Industry Decision Making Objectives To inform the Australian chicken meat industry through the preparation and dissemination of accurate, timely and detailed market research and industry intelligence. Market research is an R&D activity; marketing and promotion of chicken meat is not. Strategies • Understand customer market requirements and trends. • Understand consumer requirements (eg growth in organics and free range demand). • Commission research to understand the nutritional benefits of chicken, where sound

data is found to be lacking • Research strategies to help reposition chicken as a quality product in addition to being

a low cost protein. Build on strengths such as Australian produced and low environmental impact and neutralise myths such as use of hormones and steroids in production.

• Test market and trial generic strategies before handing them over to ACMF and the chicken companies for implementation as marketing activities.

• Gather and disseminate intelligence to inform industry decision making – this will include understanding developments in relation to animal welfare, OH&S, food security, Import Risk Assessment, etc. Dissemination to be via R&D and ACMF networks.

Performance Indicators and Related Measures • Usage and Attitudes (U&A) research replicated again in 2018 and industry to respond

to opportunities identified in 2008 U&A research by 2010. • Research to understand the health benefits of Australian produced chicken completed

and delivered to industry by 2010. • Informal intelligence gathering and distribution networks established through the

R&D program and ACMF by 2011. Indicative Share of R&D Budget • 3% of the program budget to be allocated to Objective 5. • Historically this area has not been a stand-alone research objective.

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Objective 6: Collaboration to Deliver Human Capital Formation and Extension Outcomes Objectives • To ensure ongoing Australian chicken meat research and extension capacity. • To proactively develop linkages with other chicken meat and poultry researchers and

leverage a small R&D program into a worldwide pool of knowledge generation. Australia generates 2% of global R&D outcomes; we must build bridges to tap into the other 98%.

• To develop joint venture projects and collaborate with other research and government agencies, including AECL, the Poultry CRC, the Biosecurity CRC and others.

• To ensure the adequacy of research infrastructure now and in the future. • To ensure that the RIRDC Chicken Meat R&D Plan is consistent with the findings of

the National R, D & E Review.

Development of human capital is a long-term proposition (greater than five years) and this Plan must start on this process now for the chicken meat industry’s long term benefit.

Strategies • Collaborate through joint venture projects and sub-programs to leverage Program

resources and achieve superior research outcomes. • Seek to establish ongoing commitment to poultry research by the key current providers

– SARDI, DEEDI, University of Qld, University of Melbourne, University of Sydney, CSIRO Livestock Industries, etc.

• Work with committed research providers to ensure that research infrastructure is ‘fit for purpose’. The R&D Advisory Committee to consider infrastructure investment if current facilities and capital equipment are found inadequate.

• Work with committed research provider institutions to communicate an understanding of industry long-term research needs and develop a joint succession plan for critical human capital and a co-investment business case.

• Encourage capacity building to address succession planning for all parts of the industry. Offer scholarships, travel grants, research chairs etc to build capacity. Priority areas include nutrition, physiology, husbandry and animal welfare.

• In the interim, and to ensure the best researchers are always engaged, consider contracting international research institutions to deliver projects where Australian capacity is not available. Alternatively import skills by offering post-doctoral scholarships to work in Australia.

• Develop training programs that meet the ongoing needs of industry (eg OH&S support).

• Encourage training and development by all stakeholders to address both skills and labour shortages in all sectors – growers, R&D Advisory Committee, research community, etc.

• Encourage active participation in industry leadership and development programs and ensure that the industry has a strong field of candidates from which to select.

• Work with other industries on a joint project to encourage young people into agriculture.

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• Develop formal structures to access global R&D outcomes – in 2008 this is reliant on informal structures and the goodwill of current Advisory Committee members (eg Program funded position to compile and distil international research publications and create a ‘clearing house’ for international R&D).

• Ensure annually that at least one significant research/industry officer is invited to Australia and one Australian officer views, first hand, an overseas facility with appropriate learning opportunities.

• Expand current communication channels and build on industry’s strong performance in communicating with its core researchers by expanding field trips and other initiatives to include potential researchers and parts of the supply chain historically underrepresented in the Program.

• Consider a joint electronic newsletter with ACMF to communicate research outcomes and intelligence gathered (see Objective 4 above).

Performance Indicators and Related Measures • New capacity added to Australian poultry and chicken meat research and extension –

established by survey • Number of training program – established by survey • Scholarships are offered every year and are taken up every year they are offered –

established by survey • Number of visiting scientists and overseas study tours completed – RIRDC data to

measure performance • Number of project joint ventures with AECL, the CRCs, etc – RIRDC data to measure

performance Indicative Share of R&D Budget • 10% of the program budget to be allocated to Objective 6. • Historically this area has not been addressed as a stand-alone objective.

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10. Proposed Budget A five-year R&D plan budget has been prepared for a five-year ‘normal case’. The budget is presented in Table 10.1. Table 10.1 2009 – 2014 Five Year Plan

2009/2010

2010/2011

2011/2012

2012/2013 2013/2014

OPENING RESERVES 3,259,709 2,771,709

2,466,929

2,310,969 2,184,839

REVENUES Industry Levies 1,062,500 1,127,220 1,161,040 1,195,870 1,231,750 Commonwealth Contributions 1,726,500 1,615,000 1,500,000 1,505,000 1,500,000 Interest 115,000 115,000 110,000 110,000 110,000 External contributions (joint funding income) 35,000 35,000 35,000 35,000 35,000 Industry levy penalties 0 2,000 2,000 2,000 2,000 Project Refunds/Other revenue 0 0 0 0 0 Royalties 25,000 30,000 35,000 35,000 40,000 Publication Sales, etc 1,000 1,000 1,000 1,000 1,000

Net Gains from sales of assets 0 0

TOTAL REVENUE 2,965,000 2,925,220

2,844,040

2,883,870 2,919,750

EXPENDITURE R&D Program Total 3,145,000 2,990,000 2,750,000 2,760,000 2,750,000 Collect and Admin Costs 308,000 240,000 250,000 250,000 250,000 TOTAL EXPENDITURE 3,453,000 3,230,000 3,000,000 3,010,000 3,000,000 Revenue minus Expenditure -488,000 -304,780 -155,960 -126,130 -80,250 CLOSING RESERVES 2,771,709 2,466,929 2,310,969 2,184,839 2,104,589

RIRDC and the Chicken Meat R&D Advisory Committee will determine annual funding priorities. This will be driven by: • Annual chicken meat production; • Other emerging unforeseen priorities; and • Any further changes to RIRDC/Chicken Meat Committee’s reserves policy, and other

relevant matters.

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11. Communication Plan Purpose and Communication Objective This communication plan was prepared in accordance with the RIRDC Communications Strategy (Cox Inall Communications, September 2008). Its aim, consistent with RIRDC’s corporate mission, is to maximise the knowledge outcomes from Chicken Meat R&D investments. Approach – Application of the Decision Tree The communication plan was prepared after working through the Cox Inall developed RIRDC Communications Decision Tree. The Decision Tree provides for a review of audiences and the best way to communicate with them, stakeholders who need to be informed of Chicken Meat Program research, industry and other networks that could be used to help disseminate information, and the best methods of extension and adoption. Target Audience for Chicken Meat R&D Outcomes The target audience for R&D outcomes, in priority order, is:

1. Chicken meat companies – large, medium and small. Additional effort is proposed to target small chicken meat companies through the life of this plan. Contact to be made with both technical service and nutrition personnel.

2. Broiler growout farms – company and contract operations. Particular emphasis will be given to contract growers.

3. Industry consultants – especially those involved in feed ration formulation and flock health.

4. Veterinarians – including independents that provide advice to the industry as well as those employed by the chicken meat companies.

5. Marketers and the ACMF – to provide messages for relay to the Australian community in relation to ‘myth busting’, product protein content, product safety and country of origin.

6. Dieticians, GPs and other health care professionals– in relation to the nutrient content of Australian chicken meat.

7. Contract boners/secondary processors – to communicate messages in relation to food safety.

8. Minor players – such as small chicken companies, minor boning operations, independent transporters, etc who have a role in maintaining animal welfare and food safety standards.

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Early, Late or Mainstream Adopters Communication activities differ on the basis of whether the target audience is dominated by early, late or mainstream adopters. • Early adopters – large chicken meat companies, industry consultants, veterinarians,

marketers, the ACMF and dieticians. • Mainstream adopters – broiler growout farms. • Late adopters – minor players including small chicken companies, minor boning

operations, independent transporters, etc. All three groups make up the target audience but given limited resources and the status of the industry (market dominance by large chicken companies), most effort should be placed on early adopters. Therefore, according to Cox Inall (2008), communication activities should focus on ‘work with individuals’ and the most effective communication tools for early adopters will be: • Local trials, demonstrations, field days, workshops and presentations. • Practical ‘how to’ publications. Expected Key Messages from the Outcomes of the R&D Program Key messages from the Chicken Meat R&D 2009-2014 are expected to include:

1. Industry profitability is driven by feed conversion efficiency; be aware of the most current research outcomes and incorporate these into your feed formulations.

2. Poultry disease status and biosecurity threats are ever changing; make use of the new diagnostic tools produced by the R&D Program.

3. Embrace the mainstream Australian communities requirements for animal welfare to ensure the chicken meat industry is long-term sustainable.

4. A food safety failure by a minor industry player has the potential to cruel the whole industry. Work with small chicken companies and others to ensure adoption of best practice.

5. Understand climate change, minimise your carbon footprint and profit from chicken meat’s comparative advantage relative to other sources of dietary protein.

6. Quality market research will position the industry for ongoing growth by ensuring it is able to meet contemporary consumer requirements.

7. Investments made now in revitalising researcher numbers, research institute infrastructure and creating national and international research linkages is for the long term and will yield benefits for the industry after this long Plan is delivered.

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Communication Materials in Languages Other than English None envisaged, industry players including contract growers are long established in the Australian community. Targets for Adoption The target adoption rate for successful research outcomes is a minimum of 80% given the industry’s concentration in the hands of three large players, each of which is likely to be have a key technical member of their staff also on the R&D Advisory Committee. Known Industry Networks Known industry networks – associations, grower groups etc in the Australian chicken meat industry that would be effective in communicating R&D Program results include: • Australian Chicken Meat Federation Inc - the peak coordinating body for participants

in the chicken meat industries in Australia; • Australian Chicken Growers Council – representing broiler grow out farmers,

especially contract growers; • Australian Poultry Industries Association – representing the major chicken meat

companies; • The state based chicken meat councils (CMC) – including Qld CMC, NSW CMC, Vic

CMC, SA CMC and WA CMC • The poultry hub – which can be found at www.poultryhub.org • Australasian Veterinary Poultry Association Limited • Free Range Egg and Poultry Association of Australia Major Events Where the Chicken Meat Industry is Represented Major events, conferences, field days, etc where the chicken meat industry is represented and where R&D Program outcomes could be effectively profiled include: • Poultry Information Exchange (PIX) • Australian Poultry Science Symposium; • AVPA technical meetings; • World Poultry Congress. Key Influencers in the Chicken Meat Industry Key influencers in the chicken meat industry that could be targeted by the R&D Program as champions for research findings include: • Technical Manager(s) or equivalent in the major processing companies • Australian Chicken Growers Council – grower representative

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Key Publications, Websites and Media Key publications, websites and media appropriate for communicating R&D outcomes include: • Poultry Digest • The poultry hub – which can be found at www.poultryhub.org • E Chook News – the newsletter of the Poultry CRC

www.poultryhub.org/index.php/EChook_News • The ACMF’s website – which can be found at www.chicken.org.au • The Chicken Wrap – an E-newsletter of the ACMF Conclusions Further refinement of the communication plan will be appropriate when the R&D Plan has been adopted.

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References Australian Bureau of Agricultural and Resource Economics (2009) ‘Australian

Commodities’ March quarter 09.1) Cox Inall Communications (September 2008) RIRDC Communications Strategy Cutler & Company (September 2008) Venturous Australia: Building Strength in

Innovation RIRDC (2004) R&D Plan for the Chicken Meat Program 2009-2009 RIRDC (November 2005) Template for RIRDC Five Year R&D Plans RIRDC (November 2006) Chicken Meat Program Review RIRDC (November 2007) Chicken Meat Program Review RIRDC (2007) RIRDC Corporate Plan 2007-2012 RIRDC (2008) RIRDC Evaluation Framework, Version 1.0, 7 May 2008

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Appendix 1: Contacts for the R&D Program Research and Development Manager Dr Vivien Kite Level 7 Walker Street North Sydney 2059 Phone : (02) 9929 4077 Fax : (02) 9925 0627 Email : vivien.kite@chicken.org.au Web : www.rirdc.gov.au Chairperson Gary Sansom AO 82 Hawkins Road JIMBOOMBA QLD 4280 Phone (07) 5546 9235 Email: gary@qff.org.au

Chicken Meat Research and Development Plan 2009–14Pub. No. 09/084

RIRDCShaping the future

Rural Industries Research & Development Corporation

PO Box 4776KINGSTON ACT 2600

Level 2, 15 National CircuitBARTON ACT 2600

Phone: 02 6271 4100Fax: 02 6271 4199Email: rirdc@rirdc.gov.auWeb: www.rirdc.gov.auBookshop: 1300 634 313

This new Chicken Meat Industry R&D Plan is more comprehensive than previous editions. It incorporates outputs from RIRDC’s new Performance Evaluation Framework (RIRDC 2008) and RIRDC’s new Communication Strategy (Cox Inall Communications 2008).

RIRDC views industry five-year plans as critical. They provide a guide for a strategic program of investment rather than an unstructured ‘grab bag’ of projects. Five-year plans permit constant evaluation and re-planning. This Plan is consistent with RIRDC’s ongoing support for the Australian Poultry Cooperative Research Centre.

A lot of work has been undertaken in drawing up this plan. It was the subject of a workshop in Sydney in September 2008 and extensive consultation with industry.

Chicken meat was one of the first industries in Australia to recognise the value of research and development and establish a levy to support this activity. Research and development has served this industry well. For example, in 1965 it took chickens 65 days and 5.7 kg of feed to reach a bird live weight of 2 kg. In 2008 this is achieved in only 36 days with 3.6 kg of feed. This growth in productivity has been delivered through R&D but without use of genetically modified organisms, hormones or steroids. The industry is strongly supportive of research and development.

The Rural Industries Research and Development Corpo-ration (RIRDC) has managed the Chicken Meat R&D Program on behalf of industry since 1995 and this is the industry’s third Five Year Plan with RIRDC.