R&D News

  Volume 14, Edition 4

69 projects approved

FRDC in 2005-06 approved 69 new projects worth $12.6m - a 50 per cent strike rate and a slight increase on the previous year. The number of projects under management also rose marginally, although their median value was down on 2004-05.

2005-06 2004–05 2003–04 2002–03
R&D applications evaluated 136 135 171 142
New projects approved 69 64 81 82
Active projects under management 433 426 494 485
Final reports completed by researchers 88 106 122 82
Median value of active R&D projects $233,684 $246,261 $224,406 $206,557

MORE: FRDC Business Development Manager John Wilson, email john.wilson@frdc.com.au.

Kailis’ babies make three

FRDC’S determination to lay the foundation for aquaculture of Australia’s three major rocklobster species has been achieved.

In the latest addition to the foundation, the MG Kailis Group has produced juveniles of the tropical rocklobster Panulirus ornatus in its hatchery at Exmouth, Western Australia.

Southern rocklobster have been laboratory-cultured by the Tasmanian Aquaculture and Fisheries Institute in Hobart and production of the western rocklobster has concentrated successfully on growing puerulus sourced from sustainable wild stocks.

All three achievements have been made within the Rocklobster Enhancement and Aquaculture Subprogram initiated by FRDC in 1998.

Managing Director Alex Kailis described the tropical breakthrough as a fantastic achievement that would enable the MG Kailis Group to explore a commercialisation strategy that had the potential to spawn a new industry.

He said with lobster the highest value crustacean, his company began exploring tropical rocklobster aquaculture eight years ago to exploit a growing demand that the world’s wild fisheries soon would be unable to meet.

The group’s Aquaculture Development Manager, Roger Barnard, said the breakthrough came “through dedication, hard work and expert assistance from our FRDC project partners - the Queensland DPIF and the Australian Institute of Marine Science”.

“We have several hundred additional final stage larvae ready to metamorphose, so not only is this a world first, it has been achieved on a basis of being able to move to commercialisation rather than just on a laboratory scale,”  he said.

“It’s another example of Australia leading the world in R&D,” said FRDC Executive Director Patrick Hone.

“FRDC has invested significantly and we are starting to see some great results,” he said.

The annual world supply of all lobster species is a little more than  220,000t. Australia supplies less than 20,000t, at an average price of $25/kg.

MORE: Alex Kailis,
phone 08 9239 9239.

R&D  dollars - industry digs deep

THE Australian fishing industry’s contribution to FRDC rose in the past financial year to a record $6.94m - 128 per cent of the maximum the Australian Government will match.

Executive Director Patrick Hone said this reflected industry’s growing understanding of the benefits flowing from R&D funded and managed by FRDC.

“In what have been difficult economic times for many fisheries, exceeding the matchable amount by 28 per cent represents a considered decision by industry operators in most jurisdictions that an investment in priority R&D is an investment in their future,”
he said.

Managing and maintaining the cost of operating the FRDC was a key focus in 2005-06. To operate at just 8% requires all staff to be diligent.

 During the year the staff carefully looked at all costs. In addition special attention was given to travel, with staff monitoring requests from stakeholders to attend meetings. This approach did not restrict staff attending necessary meetings, however, it did allow staff to reduce travel costs for the year.

 FRDC has also tried very hard to integrate reports against the National Research Priorities into this years report. Being able to show where FRDC invests, provides all stakeholders a clear picture of our portfolio.

2005-06 contributions, C’wealth matching and ultimate returns to industry

 

Maximum

matchable

contribution

(0.25%

of AGVP)

$

 

 

Actual

industry

contrib­ution

2005-06

$

 

Industry

contrib­ution as percentage of the maximum matchable

 

Distribution of FRDC R&D investments

2005-06

$

 

Industry return on contribution, achieved through FRDC R&D investment

 

2005–06

 

5 yrs

 

Commonwealth Northern Prawn Fishery

184,603

281,883

153%

1,386,291

4.9:1

2.3:1

Commonwealth fisheries other

711,821

765,130

107%

1,632,343

2.1:1

Commonwealth fisheries total

896,424

1,047,013

117%

3,018,634

2.9:1

2.8:1

New South Wales fisheries total

358,783

381,999

106%

1,835,671

4.8:1

5.9:1

Northern Territory fisheries total

144,623

152,000

105%

803,835

5.3:1

6.6:1

Queensland prawn aquaculture

123,850

144,884

117%

703,719

4.9:1

2.8:1

Queensland other

574,475

545,000

95%

Queensland fisheries total

698,325

689,884

99%

2,910,672

4.2:1

4.2:1

South Australia southern bluefin tuna

542,095

605,739

112%

3,207,605

5.3:1

5.6:1

South Australia other

706,150

999,441

142%

South Australia fisheries total

974,389

1,605,180

165%

6,000,137

3.7:1

4.4:1

Tasmania salmonid aquaculture

278,428

285,000

102%

1,427,517

5.0:1

4.9:1

Tasmania Pacific oysters

38,127

5,000

13%

127,049

25.4:1

9.6:1

Tasmania other

407,373

689,869

169%

Tasmania fisheries total

723,928

979,869

135%

3,457,557

3.5:1

4.8:1

Victoria fisheries total

255,425

246,185

96%

1,220,493

5.0:1

5.9:1

Western Australia fisheries total

1,356,952

1,838,878

136%

4,554,352

2.5:1

3.2:1

Totals

5,408,849

6,941,003

128%

Profit is the R&D priority

WITH tough trading conditions and higher costs, the 2005-06 financial year saw an increasing demand from the seafood industry for R&D to underpin profitability.

In its annual review the FRDC Board pointed out that by 2004-05 the annual value of seafood production had fallen to $2048m, from a peak of $2427m four years earlier.

Directors said entering 2006-07 there were indications that the decline may have plateaued, with industry reporting better prices for southern bluefin tuna, pearls, rocklobster, abalone and prawns, but they predicted that higher diesel prices and a strong currency exchange rate would continue to restrict profitability.

All sectors had  experienced difficulties with resource security because of the development of commonwealth and state marine protected areas, an issue they said would continue to be significant, along with the broader issue of resource allocation.

Directors said FRDC, in collaboration with industry, had shown in the South East Bio-region that independent scientific and socio-economic analysis could improve environmental outcomes from MPAs and minimise the socio-economic effects on industry.

In Commonwealth fisheries, they said it would be some time before results could be assessed from a 2006-07 buyout and restructure aimed at improving stock sustainability and profitability.

Through its Business Development Committee the Board in 2005-06 explored further opportunities for new investment opportunities for industry by:

  • Joining industry and research providers in a Seafood CRC bid to the Australian Government Department of Education, Science and Training
  • Working with Recfish Australia to improve  recreational R&D outcomes
  • Working with the Abalone Council of Australia, Australian Council of Prawn Fisheries, Western Rocklobster Council and Southern Rocklobster Limited to improve the process for ensuring R&D investment matches industry needs
  • Partnering with the Australian Government Department of Agriculture, Fisheries and Forestry and securing access to its industry support programs
  • Commercialising FRDC’s investments in genetic breeding programs, rocklobster aquaculture and the conversion of fish waste to fertiliser

MORE: Executive Director
Patrick Hone,
email patrick.hone@frdc.com.au.

Upgrade of funding method

FRDC is to invest directly in areas of R&D need, rather than allocating all available funds through the existing competitive process.

The aim is to help industry make essential changes more effectively.

Directors say they will move from the current annual funding round to a flexible mix of mechanisms better tailored to deliver planned outcomes and meet the needs of beneficiaries.

In line with this policy the Board has invested to establish:

  • A resource allocation working group to identify R&D needs
  • A dedicated people development program
  • An indigenous representative organisation for FRDC
  • An economic and social working group with the first task of implementing the recommendations of a review of Australian fisheries statistics
  • A spatial management and marine protected area (MPA) working group.
  • A fisheries co-management working group

This year

In their 2005-06 annual report, Directors say the Board’s priority this year will be to consolidate the developments they have initiated and, in collaboration with FRABs, subprograms and strategic partners, deliver their promise of significant benefits to industry.

To avoid under-achievement, they say they must make sure that FRDC’s capacity is not spread too thin.

Directors have also confirmed that the Corporation’s Australian Government Director will leave the Board once enabling legislation flowing from a review of the government’s statutory authorities is enacted.

As previously reported in R&D News the outcome of the review will see FRDC retain its current governance structure and continue to operate with its own board - but without a government director - under the Commonwealth Authorities and Companies Act 1997.

In future the Fisheries Minister will issue an annual statement of expectation and FRDC will reply with a statement of intent.

Peak body

FRDC Directors have also pledged to help industry establish a new national peak body, but say the Corporation will not take a lead role.

Directors of the previous peak body, the Australian Seafood Industry Council (ASIC) placed it in voluntary administration last June.

The FRDC Board says there is a growing need for industry to provide effective and efficient input into national developments and the Corporation remains a strong supporter of effective peak representation.

ASIC’s demise also has direct implications for FRDC. It was one of the Corporation’s two representative bodies, as well as a co-member of Seafood Services
Australia Ltd.

FOR MORE INFORMATION CONTACT: Executive Director
Patrick Hone, email patrick.hone@frdc.com.au; corporate governance review, http://www.finance.gov.au/governancestructures/.

 


Last Updated: March 28 2007 13:43:41