Apple & Pear Annual Investment Plan
July 2014 – June 2015
Industry Summary
Farmgate GVP Estimate for 2014/15 (from Industry)
$570M
Estimated R&D Levy Income
$1,800,000
Estimated Marketing Levy Income
$2,979,998
Proposed R&D Levy Project Expenditure
$4,079,913
Proposed R&D VC Project Expenditure
$1,497,254
Proposed Marketing Levy Project Expenditure
$2,485,802
% of R&D & Marketing Project Expenditure with PIB
$1,125,742
14%
R&D and Marketing Project Expenditure against Industry Objectives
Objective 1: Productivity & Supply
Chain
Objective 2: Climate Change
4%
23%
Objective 3: Germplasm Improvement
51%
2%
5%
Objective 4: Market Access &
Biosecurity
Objective 5: Market Research
Objective 6: Industry Development
12%
Objective 7: Portfolio Management
3%
R&D Project Expenditure against Government Rural R&D Priorities
5%
5%
Productivity and Adding Value
8%
Supply Chain and Markets
Natural Resource Management
7%
49%
4%
Biosecurity
Climate Variability and Climate Change
Innovation Skills
22%
Technology
R&D and Marketing Program Expenditure against HAL Strategic Priorities
11%
Deliver New Information & Knowledge
47%
28%
Build Consumer Demand
Enhance Industry skills & Capability
Deliver Operational Excellence
14%
Industry Outlook for 2014/15
•
The latest data available from the Australian Bureau of Statistics (ABS) (May 2013) shows that
apple production fell by 4% from 299,700MT in 2010/11 to 289,000MT in 2011/12. The World
Apple and Pear Association (WAPA) estimated the Australian 2013 production at 289,200MT and
forecast that 2014 production will reach 292,000MT.
•
The major apple production areas in Australia, based on 2011/12 data are: Victoria 46%, New
South Wales 15%, Western Australia 11%, Queensland 10%, Tasmania 9% and South Australia
8%. Increased production in Victoria (+3% compared to 2010/11) and Western Australia
(+1.2%) was offset by decreases in New South Wales (3%), where hailstorms devastated the
crop, and Queensland (2%).
•
According to ABS data the Australian average apple yield increased by 3% from 34kg/tree in
2010/11 to 35kg/tree in 2011/12, this increase was mainly driven by the Victoria average yield
increasing by 14% from 36kg/tree in 2010/11 to 42kg/tree in 2011/12.
•
ABS data also shows a 3% reduction of pear production from 123,300MT in 2010/11 to 119,000
tonnes in 2011/12, this is still 20% higher than 2010 production levels (95,000 MT). Cold, wet
weather during flowering caused a reduction in production in Victoria, the major contributor with
84% of the Australia’s pear production.
•
Other pear production areas in Australia, based on 2011/12 data are: Western Australia 10% (a
5% increase from 2010/11), South Australia with 5%, Tasmania 1%, New South Wales and
Queensland production was reduced from 1% in 2010/11 to 0.4% and 0.1% respectively. The
long term pear production trend shows a consistent decline over the past twelve years.
•
The Australian average pear yield decreased from 76kg/tree to 72kg/tree (or 5.2%). Victoria’s
average yield was 7% lower (76kg/tree) than the previous year’s 82kg/tree.
•
WAPA estimated a small increase for the Australian 2013 pear production to 128,600MT and
forecast the 2014 production at similar levels or 128,000MT.
•
Improving apple and pear productivity to enable Australian growers to compete more effectively
against import competitors has been a major investment focus for the industry over recent years
with both key research (PIPS) and industry development (Future Orchards) programs.
•
Apple imports into Australia reached 347MT in 2013; 93% from China (an 11.3% increase from
2012) and 7% from New Zealand (56% decrease from 2012) compared to 325 MT in 2012.
Although apple imports are overall +6.3% higher than 2012, 2013 imports are still 66% below
2011 imported levels (945 MT). Australia imported 1,316MT of pears in 2013, a 17% decrease
from the 2012 season (1,582 MT). 96% of pear imports came from China (18.3% decrease from
2012) and 4% from South Korea (+35% increase from 2012). Note that pear data includes Nashi.
•
Total apple exports for the 12 months to December 2013 reached 3,079MT, a 17.5% decrease
from 2012 levels (3,734 MT). The return per kilo was $1.89, 8c lower than 2012 returns; the
total export value was $5.81M which is 21% lower than the 2012 season ($7.35M). The decline
came from lower volumes exported to Indonesia, Thailand and Pink Lady™ exports to the United
Kingdom (440 tonnes). Promising increases included Malaysia with a +68% growth (409 tonnes)
and India with +40% growth (144 tonnes).
•
Total pear exports for the 12 months to December 2013 reached 6,390MT, a 16.2% decrease
from to 2012 (7,629 MT). Although exports were lower, the return per kilo was $1.58, 18c higher
than 2012 returns ($1.40). The total export value was $10.12M ($10.7m) a 5% decrease from
last season. The largest export destinations were New Zealand, Indonesia and Canada
accounting for 65% of Australian pear exports. Reductions in exports to Singapore and Malaysia
(over 50%) were mainly driven by market share gains from competitors such as South Africa and
Argentina.
•
According to WAPA production data, Australian apple and pear exports currently represent 1.06%
and 5% of their production respectively. Objective 2 of the Apple and Pear Strategic Investment
Plan looks to Expand apple and pear export markets to 10% of marketable product exported by
2015. While industries are focused predominantly on the domestic market, continuous efforts to
develop export markets through current project initiatives such as the exporter group Team
Australia and the finalisation of the industries’ Export Strategic Plans will continue to contribute to
the achievement of this objective.
Strategic Priorities
Objective 1
Strategies:
1.1
1.2
1.3
1.4
1.5
1.6
Objective 2
Strategies:
2.1
2.2
Objective 3
Strategies:
3.1
3.2
3.3
3.4
3.5
3.6
Improve Sales Volume by 5% for apples and maintain pear volume
(Volume sold) by:
A. Stimulate Domestic Demand by 5% through product quality & innovation
B. Expand apple and pear exports to 10% of marketable product exported by
2015
Improve consistency of product quality to match consumer expectations
Coordinate industry product promotion and marketing programs
Define and understand overseas markets that offer profitable export opportunities
Develop collaborative approaches to enter and expand selected export markets
Resolve technical market access issues in target markets
Monitor export market competitor activities
Produce High Quality Apples and Pears at Internationally Competitive
Prices (Costs & Risks)
Enhance orchard productivity and management
Facilitate variety transition to match changing markets
Provide a supportive operating environment (Skills & Communication)
Enhance industry value within the community
Adapt industry services to meet changing needs of growers
Improve quality and flows of information for decision-making across the supply chain
Invest in leadership and people development
Invest in intra-industry and inter-industry relationships
Invest in Pro-active Portfolio Management initiatives to deliver an integrated,
strategic investment plan
Advertised Annual Priorities
HAL on behalf of the apple and pear industry did not seek levy funded proposals for the HAL Call
2013. Although the apple and pear industry established its priorities for 2014/15 in the areas of:
production of industry data, orchard productivity, strategic planning and market access; appropriate
projects that will satisfy these priorities will be sought through a separate commissioning and/or
competitive tender process. The potential continuation of capacity building projects also contributed
to the industry decision.
Strategic Investment Plan – Gap Analysis
Strategy
Actions / Investment
Commentary
Objective 1: Improve Sales Volume by 5% for apples and maintain pear volume
(Volume sold) by:
A. Stimulate Domestic Demand by 5% through product quality & innovation
1.1 Improve consistency
of product quality to
match consumer
expectations.
1.1.1 Work collaboratively
with retailers and the supply
chain to identify and
prioritise quality issues and
implement improvement
programs.
1.1.2 Establish a baseline
of consumer perceptions of
the eating quality of
Australian apples and pears
and monitor changes.
To be completed within
2013/14:
MT12010 - Understanding the
Purchase Behavior of Fresh
Produce Consumers
MT12048 - Fruit and Nut
Tracking Study
New:
AP14013 - Understanding the
Purchase Behavior of Fresh
Produce Consumers
MT14014 - Multi Industry Fruit
Tracking Study 2014 – 2015
AP14010 - Aussie Apples
Industry Benchmark Research
Projects MT12048 and MT12010
contribute to the industry’s
Domestic Marketing Plans by
defining requirements for
consumer research.
AP14013 is the continuation of
project MT12010; they were both
designed to investigate current
consumer perceptions about
Australian apples and pears.
MT14014 is the continuation of
project MT12048 both projects
collect quantitative data through a
survey to robustly track consumer
behavior.
AP14010 will conduct a benchmark
study to identify, understand and
profile consumer attitudes and
behavior changes toward Apple
consumption over time, and the
impact they may have in
communication messages.
Fruit quality is a major component
of Future Orchards extension
project and PIPS program (see
Strategy 2.1).
Across Industry initiatives such as
the Partnering Fresh Produce with
retail: Quality Assurance
Harmonisation (AH12016)
contributes towards addressing
sub strategy 1.1.2 by focusing on
food safety and the regulatory
requirements for growers. Sub
strategy 1.1.1 is also addressed by
various across industry initiatives
including project AH13020
Horticulture Information Unit
(HIU) which acts as a conduit
between members, levy payers,
HAL and other stakeholders to
equip and enable industries with
the necessary knowledge to
manage the supply chain.
Value chain ‘tree to table’ project,
identified in the RD&E
Implementation Plan, is yet to be
implemented.
1.2 Coordinate industry
product promotion and
marketing programs
1.2.1 Establish and
manage productive working
relationships at the strategic
level between major
retailers and the apple and
pear industry.
1.2.2 Invest in marketing
and promotional programs
that re-position Australian
apples and pears with
consumers and stimulate
demand through the
development of an ‘Aussie
Apples’ brand.
To be completed within
2013/14:
AP13500 - Apples Marketing
Parent 2013/14
PA13500 - Pears Marketing
Parent 2013/14
New:
AP14500 - Apples Marketing
Parent 2014/15
PA14502 - Pears Marketing
Parent 2014/15
Current (2013/14) and new
(2014/15) Annual Apple and Pear
Domestic Programs address
Strategy 1.2 and incorporate the
activities under its sub strategies.
Projects under Strategy 1.1
partially address this strategy by
researching and monitoring
consumer attitudes towards
Australian apples and pears.
1.2.3 Research and
monitor changes in
consumer attitudes towards
Australian apples and pears.
B. Expand apple and pear exports to 10% of marketable product exported by 2015
1.3 Define and
understand overseas
markets that offer
profitable export
opportunities
In progress:
AP11023 - Apple and Pear
Industry Asian Export Market
Development
To be completed within
2013/14:
1.3.1 Engage with
Australian apple and pear
exporters to prioritize target
markets, design and
conduct in-market research.
MT12009 - Export-Import
Market Intelligence 2012 –
2014
1.3.2 Provide information
and tools to enable growers
to understand potential
MT14006 - Export Import
Strategic Analysis
New:
Current project AP11023 involves
collaboration between the
Department of Environment and
Primary Industries and APAL to
help address this strategy
specifically in Asian Markets.
Team Australia is an initiative
within project AP11023 which
engages Australian apple and Pear
exporters.
Project MT12009 and its
continuation MT14006 aim to
analyse and report Australian
export opportunities and
identify pathways to
participate.
export and import trends.
1.4 Develop
collaborative approaches
to enter and expand
selected export markets
In progress:
1.4.1 Engage with
exporters to prepare
marketing plans for apples
and for pears for each
target market.
To be completed within
2013/14:
1.4.2 Work with major
Australian fruit exporters to
develop and implement
collaborative market
initiatives for each of pears
and apples.
AP11016 - Market
Development for the Apple
Industry
MT12504 - China Fruit and
Vegetable Trade Fair 2013
AP12703 - Apple and Pear
Industry International
Networking
AP13501 - 2014 Apple Export
Promotion Parent
PA13502 - 2014 Pears Export
Marketing Parent
MT13011 - Australia Fresh
Core Program for Export
Development 2013 - 2014
MT13030 - Australia Fresh Asia Fruit Logistica 2013
MT13032 - 2013 Australia
Fresh - China FVF Trade Show
New:
1.5 Resolve technical
market access issues in
target markets
1.5.1 Define technical and
commercial market access
issues in key export markets
1.5.2 Support and
participate in negotiations
and invest in research as
required to improve market
access for Australian apples
Project AP11016 partially
addresses Strategy 1.4 by
developing collaborative
approaches between exporters
and exploring new markets. There
is also cross over with project
AP11023 under Strategy 1.3
Current (2013/14) and new
(2014/15) Apple and Pear Export
Programs address Strategy 1.4
and incorporate activities under its
sub strategies.
The Australia Fresh program
(MT13011) and its continuation
(MT14013) are multi-industry
programs focused mainly on
export development for
Australian horticulture industries.
Initiatives such as projects
MT12504, MT13030 and MT13032
relate to the Australia Fresh
program specifically for the
development of Asian markets.
AP14501 - 2015 Aussie Apples
Export Activity
PA14500 - 2015 Australian
Pears Export Activity
MT14013 - Australia Fresh Core Export Market
Development Program 2014 2017
The apple and pear Export
Strategic Plan is currently being
developed by the DAFF, the
engaged service provider is closely
working with industry. The
objective for the plan is for it to
become the overall guide for the
industries’ strategic export
investment and assist the DoA on
industry market access requests.
In progress:
The Market Access and Biosecurity
Program objective is to support
strategy 1.5 via investments in
research to help deliver improved
market access in target markets.
The Export Strategic Plan
(Strategy 1.4) will help prioritise
these markets resulting in more
effective market access
investment.
AP11008 - Market Access and
Biosecurity Program
MT12028 - OHMA Operational
Support 2012 to 2015
MT12029 - Horticultural Market
Access Manager 2012 - 2015
MT12045 - Submission to
authorities in Japan and
Taiwan addressing provisional
MRLs
MT12049 - A model for
industry planning and
Project MT12028 specifically
supports OHMA’s activities to
and pears to target markets
preparedness for an incursion
of Varroa mite
To be completed within
2013/14:
MT13045 - Fourth AustraliaChina Cooperation Forum
New:
AP14002 - MRL Risk analyses
for major export markets of
the pome fruit industry
provide industry advice to
government agencies for the
negotiation of quarantine and nonquarantine market access.
MT12029 Horticultural Market
Access Manager proactively seeks
recommends and pursues market
access opportunities and outcomes
on behalf of investing industries
while working in close
collaboration with HAL and
government agencies.
The Fourth Australia- China
Cooperation Forum (MT13045)
multi-industry project objective is
to further develop industrygovernment relations with China
and thereby strengthen current
market access and support
attainment of further new market
access for horticulture industries.
Project AP14002 precedes project
AP10009 which identifies official
government standards in key
export markets to inform exporters
and help them manage fruit
pesticides and residue limits,
assisting compliance with importer
standards and thereby minimising
potential losses through breaches
in those markets.
1.6 Monitor export
market competitor
activities
No existing projects specifically
to address this area.
1.6.1 Conduct in-market
research and establish
systems to understand and
monitor key existing and
potential overseas
competitors for the domestic
or targeted export markets
for apple and pears
This strategy is partly addressed
by projects AP11023 and AP11016
(see Strategies 1.3 and 1.4).
It is expected that the Apple and
Pear Export Strategic Plan/s will
outline international competitors
for potential export markets for
Australian apples and pears.
Further establishment of
monitoring systems will be
required once key markets are
defined.
Objective 2: Produce High Quality Apples and Pears at Internationally Competitive
Prices (Costs & Risks) (Incorporates APFIP Program
2.1 Enhance orchard
productivity and
In progress:
AP09031 - Productivity,
One of the major projects
addressing strategy 2.1 (sub
management
2.1.1 Evaluate next steps
for Future Orchards 2012
and re-focus the program to
accelerate adoption of highdensity orchard systems and
broaden its scope to link
information from the supply
chain including consumers.
2.1.2 Invest in national
research and development
that is regionally relevant
and aimed at improving the
productivity of orchard
production and the
consistent supply of quality
fruit to the supply chain
2.1.3 Maintain research in
biosecurity issues to
minimise the impact of pest
and disease incursions
2.1.4 Ensure the early
adoption of new technology.
Irrigation, Pests and Soils
(PIPS) Orchard Productivity
Program
AP11014 - Apple and Pear
Technical Manager
AP11017 - Future Orchards 3
AP12006 - Precision fertigation
for improved apple orchard
productivity
AP12002 - Profitable Pears:
Maximising productivity and
quality of new pear varieties
MT12000 - Development of
mass-trapping methods for
codling moth females in
disrupted orchards
AP13011 - Understanding to
revitalise fresh pear industry
development
AP13027 - Orchard Action Transfer of latest technology
to Victorian pome fruit
orchardist
MT13002 - Protecting
pollination for the Australian
horticultural industry Stage 3.
To be completed within
2013/14:
AP06007 - Extension
AP05002: Alternaria Fruit Spot:
New Directions
AP08004 - Managing the risk
of flesh browning for 'Cripps
Pink' apples using a climate
model
AP10019 - Technology transfer
of modern production
techniques
AP11035 - Minor Use Permits
for the Apple and Pear
Industry
AP12032 - An independent
review of the PIPS program
AP13020 - An Independent
Review of the Future Orchards
program
MT13027 - Understanding
practice in key pollination
industries
AP13028 - PIPS Phase II
strategy 2.1.2) is project AP09031.
The PIPS program was
independently reviewed in 2013
(AP12032) as part of its risk
management strategy to ensure
that this investment remains
focused and on target, to assess
progress against objectives and
the program success overall, to
make recommendations regarding
its ongoing role as well as to help
with planning for future RD&E
investment within the Apple and
Pear Production Program.
The PIPS program is due to end
within 2014/15. A workshop
including key industry stakeholders
and researchers (AP13028) was
conducted in 2013 to identify the
research priorities for the next
phase of the apple and pear
productivity program. Project
AP14014 will look to conduct the
second phase of productivity
invesment, this project will go
though a competitive tender
process within 2014/15.
Project AP13011 - Understanding
to revitalise fresh pear industry
development, aligns with sub
strategy 2.1.2 through, initially, a
segmentation analysis for the pear
industry.
Future Orchards is a national
extension program that has the
objective of supporting Australian
apple and pear orchards to
become internationally
competitive. Project AP11017
Future Orchards 3 went through
an independent review (AP13020)
in 2013.
The Future Orchards program and
its potential continuation through
project AP14017, specifically
addresses sub strategy 2.1.1.
Other initiatives that partially
address sub strategy 2.1.1 and
2.1.4 include projects AP10019,
AP12704 and AP13027. Further
Workshop
AP12704 - North American
Apple and Pear Study Tour
New:
AP14017 - Capacity Building,
Program
AP14014 – Apple and Pear
Productivity Program Phase II
In progress:
2.2 Facilitate variety
transition to match
changing markets
2.2.1 Maintain investment
in a variety development
programs
2.2.2 Establish an industry
knowledge base on annual
production and the sales
and pricing trends of each
apple variety and provide
access to growers.
AP10016 - Pear Rootstocks
Trial
AP11033 - Data and Analysis InfoPome
AP09026 - Commercialisation
of Pear varieties
AP12036 - Bridging the
knowledge-gap to breed highvalue, flavonoid-rich apples
AP13025 - Field, postharvest
and consumer evaluation of
new apple cultivars
AF11002 - Australian Pome
Fruit Improvement Program
Limited 2011-2016 (APFIP)
To be completed within
2013/14:
AP09035 - Development of
New Pome Fruit Products
AP08002 - Pear Variety
Evaluation & Certification
AP13702 - New Zealand Study
Tour 2014
AP12035 - Consultancy to
develop a Business Plan for a
National Pome Fruit Breeding
Company
Started or starting within
2013/14:
AP13031 - Industry Data
Project
work on mechanisation within
orchards and education regarding
benefits of adopting new
technology to fully achieve sub
strategy 2.1.4 is yet to be
implemented.
Several projects involving research
and biosecurity issues addressing
sub Strategy 2.1.3 are in progress
or will be completed during the
2013/14.
Project AP12035 is due for
completion in 2013/14. The main
objective of this Voluntary
Contribution (VC) project was to
fund a consultancy to develop a
business case and concept plan for
a new pome fruit breeding
company, investigate its feasibility
and whether or not it provides a
better option (compared to
existing pathways) for providing
the Australian apple and pear
industry with a reliable supply of
internationally competitive apple
and pear varieties.
Other VC and levy projects
addressing sub strategy 2.2.1
include Prevar (AP09035) and
AP08002 which are soon to be
completed. In progress projects
such as AP10016, AP09026,
AP12036 and AP13025 also aim to
facilitate variety transition to
match changing markets within
this strategy.
Projects addressing sub strategy
2.2.2 include InfoPome (AP11033)
which provides volumes of apple
and pears data in cool storage
throughout the year. Over 2013
improved accuracy of the stock
figures by an increased number of
cool stores regularly participating
had improved the outputs and
industry value of the project.
Project AP13702 also addresses
sub strategy 2.2.2 by increasing
grower awareness of key trends in
varieties.
New initiative AP13031 aims to
further complement sub strategy
2.2.2 by providing
orchard/production data and crop
forecasting to assist growers with
on-farm decisions, both at a
strategic and an operational level.
Objective 3: Provide a supportive operating environment (Skills & Communication)
In progress:
3.1 Enhance industry
value within the
community
AP12029 - Understanding
apple and pear production
systems in a changing climate
AP13023 - Student
Scholarship: ‘Orcharding the
Future: the influence of
temperature on pome fruit
flowering across Australia’
3.1.1 Advance
environmental sustainability
and promote what the
industry is doing and
achieving.
Project AP12029 is part of the
Apple and Pear Climate Change
Program. Its objective is to
reduce the vulnerability of the
Australian apple and pear
industries to climate change by
identifying and understanding the
potential impacts climate change
has on these industries throughout
Australia, and developing and
extending appropriate adaptive
responses to industry.
Project AP13023 started in 2013
with the aim to conduct more
detailed assessments of the
flowering-temperature relationship
of additional phenology data
collected within project AP12029
building further research capacity
while aligning with industry
directions and strengthening crossinstitutional collaborative efforts.
3.1.2 Influence
Government policy and
regulation that impacts on
industry competitiveness.
Irrigation is part of the PIPS
Program (Strategy 2.1) where
water efficiencies may be
identified.
Current Across Industry initiative
(AH10003) also contributes to
address Strategy 3.1
3.2 Adapt industry
services to meet
changing needs of
growers
3.2.1 Conduct annual
independent research to
monitor grower needs and
satisfaction with industry
No existing projects specifically
to address this area.
Sub strategy 3.2.2 refers mostly to
APAL related activity regarding
national industry association
structure.
Ongoing review provides feedback
to both APAL and IAC on growers
needs/ views.
Project AP12013 (see Strategy
services.
3.3) will conduct an IPSOS survey
every three years with the
objective to mainly evaluate the
effectiveness of communications
and other industry development
programs.
3.2.2 Review industry
organisational structures
and ensure alignment to
achieve effective
implementation of the
strategic plan to the
satisfaction of investors.
In progress:
3.3 Improve quality and
flows of information for
decision-making across
the supply chain
3.3.1 Conduct an
independent national survey
of orchard businesses to
establish a reliable baseline
data on physical
characteristics and farm
financial performance to
assist investment decisions
in R&D, marketing and
policy.
3.3.2 Produce an
implementation plan to
deliver the outcomes of the
Industry Development
Needs Analysis
AP12013 - Apple and Pear
Industry Communications
AP12037 - Apple and Pear
Industry Development
Initiative
AP12038 - Developing
sustainability through
extension of best practice in
the South Australian apple and
pear industry
To be completed within
2013/14:
AP13800 - 2012/13 Apple &
Pear Industry Annual Report
MT12703 - Deciduous Tree
Fruit Industry Conference 2013
– Apples, Pears, Summerfruit,
Nashi
New:
AP14800 - Apple & Pear
Industry Annual Report
2013/14
The Industry Development Needs
Assessment implementation plan
outcomes are incorporated into
the Industry Development
Program within the apple and pear
RD&E Implementation Plan.
Further work, on developing
improved ways of engaging with
growers and supply chain
participants, and better utilisation
of private advisors (input
suppliers, agronomists and agribusiness consultants), as identified
in the Industry Development
Program, was conducted during
2013 (AP12033) and will continue
in 2015 through project AP14003
(see Strategy 3.5), AP12037,
AP12038 and though the potential
project AP14017 (see Strategy
2.1).
Project AP13031 - Industry Data
Project (see Strategy 2.2) aims to
produce crop forecasting data
partially addressing strategy 3.3.1.
Some baseline data on physical
characteristics and farm financial
performance is included in Future
Orchards.
Project AP12013 Apple and Pear
Industry Communications, will go
through an independent midterm
review to assess progress against
the project plan, level of industry
satisfaction, potential
enhancement of engagement,
impact of the project on the
capacity of the industry, among
others.
3.4 Invest in leadership
and people development
In progress:
AP12034 - Apple and Pear
Industry Leadership Initiative
The Industry Development
Program proposed to enhance
people skills and leadership
3.4.1 Prepare development
plans to deliver:
(i) greater leadership
capacity
(ii) improved skill
development across the
supply chain
New:
AP14004 - Industry
Roundtable Forum
capacity by formulating a high
profile project to encourage and
support the participation of keen
individuals.
Project AP12034, led by APAL,
partly addresses Strategy 3.4 by
providing leadership opportunities
via a capability enhancement
program developed together with
Marcus Oldham College. The
program includes a short term
intensive course aimed at
equipping budding industry leaders
with practical skills in leadership
and management as well as the
opportunity of three scholarships.
3.4.2 Implement the
leadership and skill
development plans and
promote participation across
the supply chain.
Further work such as: studying the
possibility to lever partnerships
and funds with universities to
engage students to undertake
specified components of individual
projects. E.g. embedding of a PhD
within the PIPS program; and
exploring other skill development
activities e.g. negotiation skills,
business skills, succession
planning, etc in the form of
workshops are yet to be planned
and implemented.
Across Industry initiative AH13023
Industry Development Forum with
International Horticulture Congress
also contributes to address
Strategy 3.4.
3.5 Invest in intraindustry and interindustry relationships
To be completed within
2013/14:
AP12033 - Research Speed
Updating – pilot
3.5.1 Review intra-industry
and inter-industry
relationships and develop a
plan to maximise value from
collaborative effort in
research, extension, policy
development, market
intelligence and
communications.
New:
3.6 Invest in Pro-active
Portfolio Management
In progress:
AP14003 - Research Speed
Updating program
AP11038 - Costs to develop
See Strategy 3.3 for background.
Project AP14003 follows the
success of pilot project AP13004
which had the objective to develop
a network to enable research
practitioners, program managers
and information wholesalers to
better understand the apple and
pear R&D portfolio. The project
aimed to improve management,
identify R&D gaps, and foster
industry participants’
communication and collaboration.
The new project will also invite the
participation of growers.
The current apple and pear
Strategic Investment Plan (2010-
initiatives to deliver an
integrated, strategic
investment plan
3.6.1 Explore and
strategically analyse partner
capabilities and potential
opportunities in conjunction
with the National
Horticulture Research
Network (NHRN).
3.6.2 Develop and review
a 5 year Strategic
Investment Plan and Annual
investment plans that
provide the greatest return
on investment for the apple
and pear industry
projects within the apple and
pear RD&E Programmes
2015) will conclude at the end of
2015/16. Project AP14019 aims to
develop the next five year industry
Strategic Investment Plan. The
development process is envisaged
to commence within 2014/15 to be
completed before 2015 priorities
are set.
To be completed within
2013/14:
AP13910 - Apple & Pear
Consultation Funding
Agreement 2013-14
A major component of Strategy
3.6 is the Consultation Funding
Agreement with APAL.
New:
AP14910 - Apple & Pear
Consultation Funding
Agreement 2014-15
AP14019 - Strategic
Investment Plan
2014/15 Apple & Pear P&L Summary
Apple & Pear Budget
Opening Industry
Reserve 1 July 2014
Income
Levy/VC Receipts
Commonwealth
Matching Grants
Interest, Royalties
& Other Income
Total Income
Expenditure
Total Project
Expenditure
Levy Collection
Costs
Corporate Cost
Recovery
Across Industry
Contribution
Total Expenditure
Operating Surplus /
(Deficit) for year
ending 30 June 2015
Estimated
Closing Reserves
R&D
Levy
R&D
VC
Marketing
Levy
Total
$1,281,903
$0
$518,963
$1,800,866
$1,800,000
$878,537
$2,979,998
$5,658,535
$2,294,346
$852,899
-
$3,147,244
$28,779
-
$39,509
$68,288
$4,123,125
$1,731,435
$3,019,507
$8,874,067
$4,079,913
$1,497,254
$2,485,802
$8,062,969
$54,582
-
$66,468
$121,050
$508,778
$208,544
$301,468
$1,018,790
$96,261
$25,638
-
$121,899
$4,739,535
$1,731,436
$2,853,738
$9,324,708
($616,410)
($0)
$165,769
($450,641)
$665,493
($0)
$684,732
$1,350,225
Estimate Four Year P&L Summary – 2014/15 – 2017/18 – R&D Levy Only
Apple & Pear
Opening Industry
Reserve
Income
14/15
$1,281,903
15/16
16/17
17/18
$665,493
$470,363
$809,363
Levy Income
$1,800,000
$1,800,000
Matching Income
$2,294,346
$1,872,713
Other Income
$28,779
$16,786
Total Income
$4,123,125
$3,689,499
Expenses
Committed Expenses*
$2,304,775
$1,285,586
Proposed Expenses*
$1,775,137
$2,051,645
CCR*
$508,778
$408,196
AIC
$96,261
$82,983
Levy Collection Costs
$54,582
$56,219
Total Expenses
$4,739,535
$3,884,629
Operating Surplus /
(Deficit) for year
ending 30 June 2015
($616,410)
($195,129)
Estimated
Closing Reserves
$665,493
$470,363
Minimum Levy
Reserve Required
$467,780
$455,380
Available Levy
Reserves
$197,713
$14,984
*Matched Levy and Commonwealth Funds
$1,800,000
$1,361,040
$18,912
$1,800,000
$1,116,469
$12,140
$3,179,952
$2,928,609
$406,124
$2,019,305
$296,651
$60,967
$57,906
$205,618
$1,783,985
$243,335
$50,243
$59,643
$2,840,953
$2,342,824
$339,000
$585,785
$809,363
$1,395,148
$450,000
$450,000
$359,363
$945,148
2014/15 Apple & Pear Program
R&D Program
Objective 1: Productivity & Supply Chain
AP09031
PIPS Orchard Productivity Program
AP11023
Apple and Pear Industry Asian Export Market
Development
AP12006
Precision fertigation for improved apple orchard
productivity
AP12036
Bridging the knowledge-gap to breed high-value,
flavonoid-rich apples
AP12038
Developing sustainability through extension of best
practice in the South Australian apple and pear industry
AP13011
Understanding to revitalise fresh pear industry
development
AP13025*
Field, postharvest and consumer evaluation of new apple
cultivars
AP14009*
Crop Load Management for the Australian Apple Industry
- CHO model
AP14014*
Apple and Pear Productivity Program
AP14015*
Farm of the Future
MT12000
Development of mass-trapping methods for codling moth
R&D/VC
MK/R&D
$1,175,986
$85,000
R&D
$78,002
VC
$135,000
VC
$43,200
R&D
$10,000
VC
-
VC
-
R&D
R&D
R&D
$100,000
females in disrupted orchards
Objective 2: Climate Change
AP11006*
Climate Change Program
AP12029
Understanding apple and pear production systems in a
changing climate
Objective 3: Germplasm Improvement
AP09026
Commercialisation of Pear Varieties
AP10016
Pear Rootstocks Trial
AP11007*
Germplasm Improvement Program
AP12002
Profitable Pears: Maximising productivity and quality of
new pear varieties
AP12013
Apple and Pear Industry Communications
Objective 4: Market Access & Biosecurity
AP11008
Market Access and Biosecurity Program
AP14002*
MRL Risk analyses for major export markets of the pome
fruit industry
MT12028
OHMA Operational Support 2012 to 2015
MT12029
Horticultural Market Access Manager 2012 - 2015
MT12045
Submission to authorities in Japan and Taiwan addressing
provisional MRLs
MT12049
A model for industry planning and preparedness for an
incursion of Varroa mite
MT13002
Protecting pollination for the Australian horticultural
industry Stage 3
Objective 5: Market Research
AP14013*
Understanding the Purchase Behaviour of Fresh Produce
Consumers
Objective 6: Industry Development
AP11014
Apple and Pear Technical Manager
AP11016
Market Development for the Apple Industry
AP11017
Future Orchards 3
AP11033
Data and Analysis - InfoPome
AP12034
Apple and Pear Industry Leadership Initiative
AP12037
Australian Apple and Pear Industry Development Initiative
AP13023
Student Scholarship: ‘Orcharding the Future: the influence
of temperature on pome fruit flowering across Australia’
AP13027*
Orchard Action - Co-production of knowledge to Victorian
pome fruit orchardist
AP13031*
Apple and Pear Industry Data Collection
AP14004*
Industry Roundtable Forum
AP14017*
Capacity Building, Industry Development and Extension
Program - Project Definition
Objective 7: Portfolio Management
AP11038
Costs to develop projects within the apple and pear RD&E
Programmes
AP14019*
Strategic Investment Plan
AP14800*
Apple & Pear Industry Annual Report 2014/15
AP14910*
Apple & Pear Consultation Funding Agreement 2014-15
Total R&D
2014/15
R&D
R&D
$144,632
VC
R&D
R&D
R&D
$53,280
$12,800
$215,000
R&D
$417,803
R&D
R&D
$229,880
-
R&D
R&D
R&D
$2,627
$17,623
$1,150
R&D
$6,167
R&D
$21,375
R&D
-
R&D
R&D
R&D
R&D
R&D/VC
R&D
VC
$50,734
$44,777
$43,200
$20,660
$90,000
$118,691
$5,006
VC
-
R&D
R&D
R&D
-
R&D
$30,000
R&D
$5,577,167
MK/R&D
Apple Marketing Program
Objective 1: Productivity & Supply Chain
AP11023
Apple and Pear Industry Asian Export Market
Development
AP14500*
2015 Aussie Apples Domestic Marketing Parent
Objective 4: Market Access & Biosecurity
AP14501*
2015 Aussie Apples Export Marketing Parent
Objective 5: Market Research
MT14014*
Multi Industry Fruit Tracking Study 2014 - 2015
Objective 7: Portfolio Management
AP14910*
Apple & Pear Consultation Funding Agreement 2014-15
Total Marketing 2014/15
Pear Marketing Program
Objective 1: Productivity & Supply Chain
AP14502*
2015 Australian Pears Domestic Marketing Parent
Objective 4: Market Access & Biosecurity
PA14500*
2015 Australian Pears Export Marketing
Objective 5: Market Research
MT14014*
Multi Industry Fruit Tracking Study 2014 - 2015
Objective 7: Portfolio Management
AP14910*
Apple & Pear Consultation Funding Agreement 2014-15
Total Marketing 2014/15
*Projects yet to be contracted
MK/R&D
$30,000
MK
-
MK
-
MK
-
MK/R&D
$1,744,616
MK
-
MK
-
MK
-
MK/R&D
$741,186
APFIP Annual Investment Plan
July 2014 – June 2015
Industry Summary
Farmgate GVP Estimate for 2014/15 (from Industry)
$570M
Estimated R&D Levy Income
$165,000
Estimated Marketing Levy Income
$0
Proposed R&D Levy Project Expenditure
$209,713
Proposed R&D VC Project Expenditure
$0
Proposed Marketing Levy Project Expenditure
$0
% of R&D & Marketing Project Expenditure with PIB
$0
0%
R&D and Marketing Project Expenditure against Industry Objectives
Objective 1: Productivity & Supply
Chain
Objective 2: Climate Change
0%
Objective 3: Germplasm Improvement
Objective 4: Market Access &
Biosecurity
Objective 5: Market Research
Objective 6: Industry Development
Objective 7: Portfolio Management
Objective 8: Not Allocated
100%
R&D Project Expenditure against Government Rural R&D Priorities
10%
Productivity and Adding Value
Supply Chain and Markets
40%
20%
Natural Resource Management
Biosecurity
Climate Variability and Climate Change
0%
Innovation Skills
20%
0%
10%
Technology
R&D and Marketing Program Expenditure against HAL Strategic Priorities
11%
0%
Deliver New Information & Knowledge
Build Consumer Demand
Enhance Industry skills & Capability
Deliver Operational Excellence
89%
2014/15 APFIP P&L Summary
APFIP Budget
Opening Industry
Reserve 1 July 2014
Income
Levy/VC Receipts
Commonwealth
Matching Grants
Interest, Royalties
& Other Income
Total Income
Expenditure
Total Project
Expenditure
Levy Collection
Costs
Corporate Cost
Recovery
Across Industry
Contribution
Total Expenditure
Operating Surplus /
(Deficit) for year
ending 30 June 2015
Estimated
Closing Reserves
R&D
Levy
R&D
VC
Marketing
Levy
Total
$338,157
$0
$0
$338,157
$165,000
$0
$0
$165,000
$117,684
$0
-
$117,684
$7,123
-
$0
$7,123
$289,807
$0
$0
$289,807
$209,713
$0
$0
$209,713
$6,647
-
$0
$6,647
$25,655
$0
$0
$25,655
$4,707
$0
-
$4,707
$246,723
$0
$0
$246,723
$43,084
$0
$0
$43,084
$381,241
$0
$0
$381,241
Estimate Four Year P&L Summary – 2014/15 – 2017/18 – R&D Levy Only
APFIP
Opening Industry
Reserve
Income
Levy Income
Matching Income
Other Income
Total Income
Expenses
Committed Expenses*
Proposed Expenses*
CCR*
AIC
Levy Collection Costs
Total Expenses
Operating Surplus /
(Deficit) for year
ending 30 June 2015
Estimated
Closing Reserves
Minimum Levy
Reserve Required
Available Levy
Reserves
14/15
15/16
16/17
17/18
$338,157
$381,241
$366,041
$532,889
$165,000
$117,684
$7,123
$165,000
$173,801
$7,399
$165,000
$0
$8,900
$165,000
$0
$5,329
$289,807
$346,200
$173,900
$170,329
$209,713
$0
$25,655
$4,707
$6,647
$309,713
$0
$37,888
$6,952
$6,846
$0
$0
$0
$0
$7,052
$0
$0
$0
$0
$7,263
$246,723
$361,400
$7,052
$7,263
$43,084
($15,201)
$166,848
$163,066
$381,241
$366,041
$532,889
$695,955
$44,022
$42,298
$41,250
$41,250
$337,219
$323,743
$491,639
$654,705
*Matched Levy and Commonwealth Funds
2014/15 APFIP Program
R&D Program
Objective 3: Germplasm Improvement
AF11002
Australian Pome Fruit Improvement Program Limited
2011-2016
Total R&D
2014/15
R&D
$209,713
$209,713