Professional Documents
Culture Documents
Contents
Horticulture at a Glance
Operating Landscape
13
Governance Statement
15
17
19
HAL Members
20
Horticulture at a Glance
Horticulture is Australias fastest growing agricultural industry with a farmgate gross value of product increasing
by 50% between 2006 and 2012 to a current value of almost $9.9 billion.
Australias horticulture industries employ around one-third of those employed in Australian agriculture.
It represents 30,000 businesses nationally, and nearly $1 billion in exported products.
Horticulture includes fruit, grapes (dried and table), nuts, mushrooms, nursery, cut flowers, extractive crops,
turf and vegetables.
The major growing regions in Australia include the Goulburn Valley of Victoria, the Murrumbidgee Irrigation Area
of New South Wales, the Sunraysia district of Victoria/New South Wales, the Riverland of South Australia, northern
Tasmania, southwest Western Australia, the coastal strip of northern New South Wales, and Queensland. In broad
terms, approximately one-third of Australian horticulture is located in Queensland, with another third along the
southern Murray Darling Basin (MDB). Amenity horticulture (nursery and turf production, landscaping and urban
green spaces) generally occurs in, and close to, metropolitan centres.
Horticulture provides significant social and health benefits to the Australian community. Eating plenty of fruit and
vegetables is considered beneficial to good health and maintaining a healthy weight. Horticulture also contributes to
environmental, physical and psychological benefits through urban greenlife.
For all the benefits the horticulture industry provides, it also strives to ensure it has a relatively small environmental
impact. Australias horticulture producers are already leading the way in environmental management. The
horticulture industry is reliant on natural resources, especially water for irrigation, and as such is focused on
implementing best management practices to reduce its impact on these resources.
Horticulture Australia Limited (HAL) was formed in 2001 and is the declared Industry Services Body under Section
9 of the Horticulture Marketing and Research and Development Act 2000. It is a not-for-profit, industry owned
company operating under the Corporations Law and its company constitution.
HAL is funded by a combination of statutory levies, voluntary contributions, and commonwealth government
matching funds for eligible R&D and other sources such as royalties and investments.
At the time of its establishment, HAL had 29 members. Over the past 11 years this has grown considerably and as at
the beginning of 2012, HAL had 40 members (covering 43 industries). Of these, 21 have a statutory marketing levy
and a statutory R&D levy, and eight have a statutory R&D levy only. The remaining 11 members invest via voluntary
contribution programs.
The 40 members of HAL are the peak industry bodies (PIBs) of Australias major horticultural industries (Growcom
has both A Class (Pineapples) and B Class Membership).
Selwyn Snell
Chairman
HALs Vision
HAL is accountable for the efficient and effective investment of industry and public funds in R&D and marketing.
HALs vision is for horticulture to provide a valued contribution to Australias national well-being, through the profitable
production of Australian grown, high quality and sustainable horticultural produce.
HALs Purpose
HALs purpose is to make R&D and marketing investment decisions, in partnership with industry, which build the value
of Australian horticulture and maximise benefits to levy payers, our Members industries, Government and the Australian
Public.
HAL achieves this purpose through:
Investing and administering funds in a consultative manner while advancing the best interests of Members and levy
payers; and
Ensuring appropriate R&D and marketing plans are prepared and implemented for the benefit of Members and levy
payers.
HALs Stakeholders
Unlike other RDCs, HAL does not have formal contact mechanisms with horticulture levy payers. HALs Constitution
requires that it works through horticulture Peak Industry Bodies, as representatives of levy payers, to achieve outcomes for
its Member industries.
HALs Peak Industry Body Members have ownership of the company and this is recognised through Member voting rights.
Given this unique situation, HAL has three primary stakeholder groups it must satisfy, being:
Members who are HALs primary stakeholder and owner;
Levy payers who are the ultimate beneficiary of industry and Government funds invested by HAL; and
The Australian Government which has reporting and governance requirements that HAL must satisfy for the funds it
invests.
Operating Landscape
Australias horticulture industries are operating in an
environment where competition for scarce resources is
becoming, and will continue to become, more of an issue.
Access to water, land and labour remain important to
productivity and are likely to become increasingly important.
Additionally, horticulture industries need to adapt to
operating in an environment that is being impacted by
climate change. Horticulture is inherently vulnerable
to climate change and climate variability because
of its dependence on natural resources, especially
water. Furthermore, all horticultural crops are sensitive
to temperature and most have specific temperature
requirements for the development of optimum yield and
quality.
Moderate temperature increases of approximately 1C are
predicted over the next 20 years or so. This is expected to
be accompanied by an overall decrease in rainfall across
Australia, with rainfall events becoming polarised based on
geography with the north becoming wetter and the south
increasingly dry.
Horticulture industries are already addressing these changes
by taking measures such as planting more adaptable
cultivars, changing the time of year for planting and
improving both irrigation and integrated pest management
practices. However, investment in R&D that enables
industries to continue to adapt to changes will be required
for the future sustainability of the industry.
While Australian horticulture is a minor emitter of greenhouse
gases (0.2% of Australias total emissions), investment in
mitigation strategies will increasingly form part of HALs
investment portfolio. Two of the desired mitigation outcomes
for Australian horticulture are reduced greenhouse gas
emissions from horticultural production systems, and
profitable horticultural production systems which contribute
to greenhouse gas abatement.
Aside from the physical impacts of climate change on
horticultural products and businesses, the industry is
operating in an environment where there is an increasing
global demand for food. The issue of food security and
Australia being able to play its role in feeding the world,
demands a greater level of productivity growth from
horticulture industries. Investment in productivity gains
remains the core of HALs program. Although this has been
highly successful up to the present, these gains are becoming
increasingly harder to achieve.
Not surprisingly, water and carbon emissions are a primary
concern for the Government and during the year HAL, along
with all other RDCs, received notification from the Minister for
Agriculture, Forestry and Fisheries to ensure that water and
carbon issues are adequately reflected in the long term R&D
planning for individual industries and collaboratively through
cross-sectoral and cross-RDC research opportunities.
4
20052010
Consistently meet the
requirements of consumers and
key customers.
Break down trade barriers for
horticultural produce in export
markets.
Ensure consumers appreciate
the health-giving properties of
consuming fruit and vegetables.
Enhance efficiency,
responsiveness and product
integrity in the supply chain.
Improve industrys access to
water and efficient utilisation of
this resource.
Improve industrys access to
skilled resources.
20102015
Deliver new information and
knowledge.
Build consumer demand
(domestically and internationally).
Enhance industry skills and
capability.
Deliver operational excellence.
Industry
Strategic
Plans
Industry
Strategic Investment
Plans
HAL
Strategic
Plan
Annual
Investment
Plans
Horticulture
Transformational
Investment Fund
Annual
Operating
Plan
HALs investment
priorities
programs
Increase demand
Best practice
on-farm
management
Deliver new
information
and
knowledge
Natural resource
management
Value chain
efficiency
New product
development
Increase knowledge
Domestic
marketing
program
International
market access
Build
consumer
demand
Promote health
and wellbeing
New product
and market
development
Outcomes
Measures
Increased productivity
Sustainable improvements
in resource use efficiency
and profitable businesses
Increased opportunities
to improve on-farm and
offfarm profitability
Identification and
creation of new product
opportunities
Increased access to
overseas markets of choice
Community understanding
of wellbeing issues
Increased understanding
and adaptability to
changing demand
$/%*
$172m
54%
$105m
33%
Three strategic
Three strategic
HALs investment
priorities
programs
Enhance
industry
skills and
capability
Outcomes
Measures
On-farm R&D
extension
program
Increased confidence
to make planning and
investment decisions
Investing in
people
Adoption of new
technology made easier,
faster
Targeted
communications
Enhancing
industry
capability
$/%*
$40m
13%
Enhanced capability in
industry organisations
Robust business
approach
Industry and
community
engagement
Leverage cross
industry and
RDC synergies
Deliver
operational
excellence
See
Note 1
Organisational
performance
Notes
1. HALs corporate costs have been allocated proportionately against each of the three strategic priorities above: that is, in the proportion of
54%: 33%: 13%.
2. Communication projects across the HAL investment portfolio have been reviewed and expenditure allocated across HALs Investment
Programs according to the expected project outcomes.Previously, communication project expenditure had been allocated 100% to the
strategic priority of Enhance Industry Skills and Capability. The new communication project allocation methodology more appropriately
reflects the expected outcomes of the projects.
3. This methodology effectively distributes approx $2.5m pa from targeted communications and on farm R&D extension to other
Investment Program areas primarily best practice on farm management.
Program 2
Program 3
Program 4
Increase opportunity to
improve on-farm and
offfarm profitability.
Challenge
Investments
Outcomes
10
Program 2
Program 3
Program 4
Challenge
Investments
Outcomes
Program 2
Program 3
Program 4
Improve adoption of
new information and
technology.
Ensure targeted
communication programs
that enhance access to new
knowledge and increase
adoption.
Promote leadership,
capability and pathways that
create increased capacity
and opportunities.
Challenge
Investments
Outcomes
12
HALs investment in R&D is derived from levies, industry contributions and Australian Government matching contributions
for eligible R&D expenditure. The support provided by the Government enables HAL to leverage grower levies and the
investment into future research.
HALs investments are based on the Australian National Research Priorities as well as the Rural R&D Priorities. The National
Priorities highlight areas of social, economic or environmental importance to Australia. These priorities address areas of
strength, opportunity or need in Australian research.
The Rural R&D Priorities aim to foster innovation and guide R&D effort in the face of ongoing change. Horticulture Australias
investments reflect these priorities, the dynamic nature of the global market and the needs of Australian industries.
Relationship of National and Rural R&D Priorities with HAL Investment Program
National Research Priorities
An environmentally sustainable
Australia
Biosecurity
Protect Australias community, primary
industries and environment from
biosecurity threats
Innovation Skills
Improve the skills to undertake research
and apply its findings
Technology
Promote the development of new and
existing technologies
13
13%
13%
33%
54%
33%
54%
Alignment of Horticulture
Australias investment to the Rural R&D Priorities 20122015
9%
32%
12%
9%
11%
32%
12%
5%
11%
8%
23%
5%
8%
14
23%
Technology
Governance Statement
The HAL Board
Executive Team
Evaluation methodology
HAL has been a long standing participant in the CRRDC
evaluation process where ex-post evaluations are completed
externally. These ex-post evaluation findings have provided
a good understanding to both industries and HAL of return
on investment in key areas of R&D. This complements the
internal ex-ante evaluations done internally.
More recently, a triple bottom line internal ex-post evaluation
has been initiated on 5%, of projects completed in the last
five years (70 projects). The evaluations will also help to
assess the gap between the ex-ante and ex-post evaluations
and provide the HAL Board with an increased understanding
of the returns on investment. Asimilar approach will be used
for the Marketing projects. It is estimated that $56.18 million,
or 13.22% of the total investment over the last five years will
15
Governance Statement
be evaluated in this manner. The above sample selection
method will be consistent with the CRRDC guidelines.
16
Budget
2012/13
Estimate
2013/14
Estimate
2014/15
Levy income
35,853,936
39,676,476
40,866,770
42,092,773
VC income R&D
17,893,099
14,592,946
14,884,805
15,197,386
42,000,000
43,000,000
44,290,000
45,618,700
2,013,598
1,489,400
1,534,082
1,580,104
97,760,633
98,758,822
101,575,657
104,488,964
6,434,320
6,543,242
5,561,756
5,672,991
104,194,953
105,302,064
107,137,413
110,161,954
56,396,612
67,103,134
68,445,197
70,840,779
Program expenditure VC
34,108,640
24,481,588
24,726,404
24,973,668
90,505,252
91,584,722
93,171,601
95,814,446
1,524,099
1,563,225
1,610,122
1,658,425
11,818,365
11,954,835
12,253,456
12,577,455
103,847,716
105,102,782
107,035,178
110,050,326
347,237
199,282
102,235
111,628
INCOME
Other income
Total income before reserves transfers
Transfer from/(to) industry reserves
Total income
EXPENDITURE
17
Budget
2012/13
Estimate
2013/14
Estimate
2014/15
7,510,160
7,746,174
7,939,828
8,138,324
Occupancy expenses
716,181
762,086
781,138
800,667
Operating costs
635,747
739,658
761,848
784,703
Depreciation
337,894
277,278
285,596
294,164
659,844
681,337
701,777
722,830
Program management
340,562
305,894
312,012
321,372
Communication
137,620
135,985
138,705
142,866
Professional fees
574,829
461,370
470,597
484,715
Board costs
684,323
705,016
719,116
740,690
Governance costs
221,205
140,037
142,838
147,123
11,818,365
11,954,835
12,253,456
12,577,455
Human resources
18
Explanation
ABARE
AIP
ALPM
AOP
BCA
BSC
Board Subcommittee
Cap
CCR
CRRDC
CCRSPI
DAFF
DFAT
DPI
DSC
GVP
HAL
HALO
HMAC
IAC
IDO
IMC
IRB
LRS
NHRN
NPSI
OHMA
PIB
PISC
R&D
RD&E
RDC
RIRDC
VC
Voluntary Contribution
19
Strategic
HAL
Members
Objectives and Priorities 2012/13
Australias horticulture growers
are represented by various
industry representative bodies.
Each of these bodies represents
the interests of their growers
and the development of their
respective industries.
A CLASS MEMBERS
Almond Board of Australia
Apple and Pear Australia Ltd (APAL)
Australian Banana Growers Council Inc (ABGC)
Australian Lychee Growers Association
Australian Macadamia Society Ltd
Australian Mango Industry Association Ltd (AMIA)
Australian Mushroom Growers Association Ltd (AMGA)
AUSVEG
B CLASS MEMBERS
Australian Asparagus Council
Australian Blueberry Growers Association Inc
Australian Garlic Industry Association Inc
Australian Melon Association Inc
Australian Nut Industry Council Inc
Australian Processing Tomato Research Council Inc
Australian Sugar Plum Industry Association
Australian Walnut Industry Association
Canned Fruits Industry Council of Australia
Growcom
Hazelnut Growers of Australia Inc
Pistachio Growers Association Inc
PMA Australia-New Zealand Limited (PMA)
Tasmanian Farmers and Graziers Association Pyrethrum Growers Group (TGFA)
20