Welcome to Plant & Food Research: Plant & Food …This report presents Plant & Food Research’s operating results for the financial year ending 30 June 2017. It meets our reporting

INCREASE VALUEPROTECT & ENHANCESUSTAIN GROWTH

G.42

ANNUAL REPORT 2017

For more highlights visit growingfutures.co.nz

25 years ago the Crown Research Institutes were created. Plant & Food Research is one of seven that exist today. Since we were founded we’ve accomplished a lot including ...

ASSISTING IN 12 BIOSECURITY INCURSION RESPONSES

MAINTAINING ACCESS FOR

NEW ZEALAND EXPORTS

TO 124 COUNTRIES

RELEASING 273 NEW CULTIVARS TO

NEW ZEALAND GROWERS

We’re excited about the next 25 years

ASSISTING IN 12 BIOSECURITY INCURSION RESPONSES

PUBLISHING 7,930 SCIENTIFIC PAPERS(THAT'S ALMOST 1 A DAY)

FILING 336 PATENTS TO PROTECT

191 TECHNOLOGIES

HELPING QUADRUPLE

NEW ZEALAND FOOD EXPORTS

TO $28 BILLION

This report presents Plant & Food Research’s operating results for the financial year ending 30 June 2017. It meets our reporting requirements for the Acts of Parliament under which we are governed. Unless otherwise stated, all figures are in New Zealand dollars ($).

This report also demonstrates how we are supporting our Core Purpose industries in meeting their targets for economic and environmental sustainability. It provides easy-to-read information outlining our performance and strategy, as well as case studies that demonstrate a cross-section of our research and outreach activities. This information is presented for the interest of our key stakeholders, including shareholders, staff, commercial partners, clients and research collaborators.

Presented to the House of Representatives pursuant to Section 39 of the Public Finance Act 1989

CONTENTS

4 About us6 Our locations7 Our performance8 Our highlights10 Celebrating our people

SECTION 1 OUR STRATEGY 12

14 Report from the Chair16 CEO’s review18 Our strategy roadmap

SECTION 2 OUR SCIENCE 20

22 Better cultivars faster™

26 Premium foods and beverages30 Sustainable, premium seafood and

marine products34 Residue-free pest and disease control38 Sustainable and profitable production systems

SECTION 3 A HEALTHY BUSINESS 42

44 Sectors and customers52 Engagement54 Science for impact60 Organisational excellence 64 Ways of Working

More information can be found on our company website and via our social media channels.

plantandfood.co.nz/growingfutures

SECTION 4 OUR GOVERNANCE 66

68 Corporate governance70 Board of Directors71 Science Advisory Panel72 Senior Management Team73 Organisational chart74 Strategic funding

SECTION 5 FINANCIAL STATEMENTS 80

82 Financial performance83 Directors’ report84 Independent auditors’ report86 Statement of comprehensive income87 Statement of changes in equity88 Balance sheet89 Cash flow statement90 Notes to the financial statements110 Performance indicators111 Statement of responsibility

112 Directory114 Index

OUR CORE PURPOSETO ENHANCE THE VALUE AND PRODUCTIVITY OF NEW ZEALAND’S HORTICULTURAL, ARABLE, SEAFOOD AND FOOD AND BEVERAGE INDUSTRIES TO CONTRIBUTE TO ECONOMIC GROWTH AND THE ENVIRONMENTAL AND SOCIAL PROSPERITY OF NEW ZEALAND

4 PLANT & FOOD RESEARCH ANNUAL REPORT 2017

We have more than 900 staff based at 14 sites across New Zealand, as well as offices in Australia and the USA.

ABOUT US

PLANT & FOOD RESEARCH IS A NEW ZEALAND SCIENCE COMPANY DELIVERING RESEARCH AND DEVELOPMENT DESIGNED TO GROW COMPETITIVE ADVANTAGE FOR CUSTOMERS IN HORTICULTURE, SEAFOOD, FOOD AND BEVERAGE, WINE AND CROPPING.

COMMERCIAL

$53.9M

OTHER

$1.8M

STRATEGIC FUNDING

$43.1M

ROYALTIES

$31.1M

CONTESTABLE

$15.9M

Our activities are funded through direct commercial research for our customers, the reinvestment of royalties and the New Zealand Government’s investment in science.

49% 51%

The Institute brings together more than 90 years of research supporting the primary industries.

→ 1926 The Department of Scientific and Industrial Research (DSIR) formed

→ 1928 DSIR joined with the Department of Agriculture in establishing a Plant Research Station

→ 1936 Plant Research Station transferred entirely to the DSIR. The DSIR began doing its own research rather than coordinating those of other institutions

→ 1980 The Fish Research Unit established at DSIR

→ 1992 Ten Crown Research Institutes (CRIs) established out of former government departments

→ 2008 Plant & Food Research formed following the merger of former CRIs HortResearch and Crop & Food Research.

OUR MISSION

A sustainable business delivering science that maximises opportunities to enhance New Zealand’s economic, environmental and social prosperity.

OUR VISION

Valued by our stakeholders and admired by our peers for the quality and impact of our science.

RESEARCH SUPPORT

99

GENERAL

150SENIOR LEADERSHIP

12RESEARCH

667

NZ HEAD COUNT

Strategic funding — Government investment allocated directly to each CRI Contestable — Government investment allocated through competitive bidding Royalties — Commercial return from plant varieties and IP Commercial — Direct investment by customers Other — All other income sources

5PLANT & FOOD RESEARCH ANNUAL REPORT 2017

HORTICULTURE

WINE

SEAFOOD

HORTICULTURE WINE SEAFOOD FOOD AND BEVERAGE

CROPPING

DOMESTIC MARKET VALUE ($NZB) 2016 2.2 0.8 0.3 17.6 1.5

EXPORT MARKET VALUE ($NZB) 2016 3.4 1.6 1.8 27.2 0.2

SECTOR TARGET $10BBY 2020

$2BEXPORTS BY 2020

$3BEXPORTS BY 2025

$60BEXPORTS BY 2025

$1.95BBY 2025

OUR SCIENCE PLAYS A VITAL ROLE IN THE SUCCESS OF OUR SECTORS.

$94million

$402million

$12million

$615million

$126million

$207 million

$451million

$353million

$251 million

$1841million

$252million

$91million

$567million

$925 million

$247 million

$10million

$22 million

$13million

$55million

AFRICA

AUSTRALIA

ASIA

UNITED KINGDOM AND IRELAND

CONTINENTAL EUROPE NORTH

AMERICA

CENTRAL AND SOUTH AMERICA

NEW ZEALAND EXPORTS

Horticulture and wine — year to 30 June 2016 Seafood — year to 31 December 2016


1819

15

16

17

1

23

4 5

67

910 11

12

1314

NEW ZEALAND

AUSTRALIA

USA

8

OUR LOCATIONS

KIWIFRUIT

CITRUS

AVOCADO

POTATO

ONION

BRASSICA

PIPFRUIT

BERRYFRUIT

HOP

WINE GRAPE

CEREAL

PEA

SUMMERFRUIT

SEAFOOD

KEY

3/ PUKEKOHE

SITE AREA Total Research farm (ha) 5 4RESEARCH PLANTINGS

STAFF Research General Total

6 - 6

4/ RUAKURA

SITE AREA Total Research farm (ha) 8 -


59 9 68

5/ TE PUKE



39 10 49

13/ CLYDE



6 3 9

14/ DUNEDIN

Co-located at University of Otago


5 - 5

15/ 16/ 17 AUSTRALIA

15. SOUTH AUSTRALIA 16. QUEENSLAND 17. VICTORIA


4 2 6

18/ 19 USA

18. CALIFORNIA 19. WASHINGTON


1 1 2

11/ BLENHEIM

Co-located at Marlborough Research Centre. Includes 10ha of research farm

RESEARCH PLANTINGS


15 1 16

12/ LINCOLN



140 43 183

6/ HAWKE'S BAY



45 22 67

7/ PALMERSTON NORTH



110 19 129

8/ WELLINGTON

Working space, co-located at Science New Zealand

10/ NELSON

SITE AREA Total Research farm (ha) 1 -FINFISH FACILITY 324,700L


38 7 45

9/ MOTUEKA



22 10 32

1/ KERIKERI



12 5 17

2/ AUCKLAND



170 128 298


OUR PERFORMANCE

REVENUE ($000) Budgeted figure in brackets

MILESTONES COMPLETED TO AGREED TIMELINES

ANNUAL REVENUE / SCIENCE FTE ($000)

96%of our 48 critical steps for achieving impact targets

complete*(TARGET = 85%)

PEER-REVIEWED PUBLICATIONS

315 312307 286 303350

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

86% 90% 86% 86%88% 89%85%

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17

STRATEGIC FUNDING

CONTESTABLE

COMMERCIAL

ROYALTIES

OTHER

121,375 (113,240)

119,051 (117,792)

119,588 (119,659)

128,879 (125,950)

139,748 (136,175)

145,840 (141,915)

* Critical steps provide a detailed evaluation of our progress toward achieving sector impact targets as listed in our Statement of Corporate Intent http://www.plantandfood.co.nz/file/SCI-2016-17.pdf

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

250

200

150


AUT EXCELLENCE IN BUSINESS SUPPORT SUPREME AWARD WINNER

OUR HIGHLIGHTS

→ Recognised for excellence in supporting New Zealand business at the 2016 AUT Business Support Awards. Plant & Food Research was the Supreme Award winner and category winner of the Drake New Zealand Government category, recognising the Institute’s contribution to building competitive advantage for New Zealand’s food sector.

→ Partnered with Orangewood Ltd and Primary ITO to support horticultural education in Northland. The Kerikeri Business & School Connections Programme will support horticultural studies in secondary schools by providing practical experience towards NZQA-approved qualifications. FOR MORE GO TO PAGE 53

→ Achieved funding from MBIE’s Catalyst Strategic Fund to support research into myrtle rust. The project will support surveillance and understanding the biology of this invasive plant disease.

→ Signed a collaboration agreement for kiwifruit research with Zespri International and the Shaanxi Rural Science and Technology Research Centre. Research will focus on growing Chinese-grown kiwifruit to support Zespri’s 12-month global supply strategy. FOR MORE GO TO PAGE 45

→ Partnered with Te Tira Whakamātaki (Māori Biosecurity Network) to build understanding of myrtle rust in affected regions. Ensuring better understanding of how the disease can affect taonga Māori will support efforts to control the myrtle rust incursion.

→ Launched a five-year programme with Australia’s Hort Innovation to strengthen honey bee and hive research capability. Leveraging capability and knowledge of pollination and honey bee health in both organisations will deliver value to the industries on both sides of the Tasman.

→ Delivered a new forage brassica, ‘Pallaton’, to industry. The new interspecific hybrid crop, released by Forage Innovations, offers farmers an alternative crop, with improved resistance to pests and diseases, for grazing livestock in times of low pasture.

KIWIFRUIT RESEARCH

COLLABORATION IN CHINA

DELIVERED A NEW FORAGE

BRASSICA, ’PALLATON’

→ Identified a new method for controlling the bee-killing parasite Nosema ceranae. Research has demonstrated that heat-treating hives is effective for killing this parasite, which has caused severe honey bee colony losses since its discovery in 2010 and significantly affected New Zealand’s honey and pollination sectors.

→ Established an International Development & Aid business unit. The new unit will identify, manage and instigate projects to which Plant & Food Research can contribute expertise that will support the long-term sustainability of farmers in developing countries. FOR MORE GO TO PAGE 48


→ Bred blue cod in captivity for the first time, opening the way for a new aquaculture industry. Understanding how to breed and grow blue cod in captivity provides potential options for aquaculture or supplementing local populations under pressure.

→ Launched the Innovation Cell with Anagenix, a new co-investment business model designed to support the development of new products for health and wellness. The first product from the partnership is BerriQi™, a Boysenberry-based ingredient blend aimed at Chinese consumers concerned about the effects of pollution. FOR MORE GO TO PAGE 53

→ Achieved $30 million from MBIE’s Endeavour Fund, focused on delivering new options for horticulture and seafood. Four new research programmes will support improvements to sorting and grading fruit, investigating new breeding technologies for both tree crops and fish, and using nanotechnology to improve filtration technologies.

→ Signed a Memorandum of Understanding with Tuaropaki, an Ahu Whenua Trust based in Taupo. This agreement will support development of an inventory of heritage and taonga species as well as methods for their conservation and preservation.

→ Opened the new Nelson Research Centre to support high-quality research throughout the seafood value chain. The new facility will support existing seafood research activities as well as future integration of new and emerging technologies. FOR MORE GO TO PAGE 64

→ Appointed a new General Manager Science for Seafood Technologies. Helen Mussely, who previously held positions at the Cawthron Institute and Sealord, will oversee the Institute’s seafood research portfolio.

→ Supported the development of the Kiwi Leaders Programme with Te Awanui Huka Pak. This programme will identify and encourage rangatahi Māori with an aptitude and willingness to participate in the horticultural sector.

LAUNCHED PRODUCT DEVELOPMENT INNOVATION CELL

UNLOCKED POTENTIAL

FOR A NEW AQUACULTURE

INDUSTRY

OPENED THE NEW NELSON

SEAFOOD RESEARCH CENTRE


EXTERNAL AWARDS

CELEBRATING OUR PEOPLE

OUTSTANDING CONTRIBUTION TO THE STUDY OF PLANT BIOLOGY

RECOGNITION OF LEADERSHIP IN

AGRICULTURAL AND HORTICULTURAL

SCIENCE OVER 35 YEARS

→ Dr Bruce Campbell was awarded the prestigious Thomson Medal by the Royal Society of New Zealand for his outstanding leadership in the agricultural and horticultural sciences over 35 years.

→ Dr Kimberley Snowden was awarded the Roger Slack Award in Plant Biology for her research into branching in plants.

→ Lisa Jamieson was awarded the Collaboration Award by the Plant Biosecurity Collaborative Research Centre, for her research into improved postharvest market access treatments for horticultural commodities.

→ Dr Nigel Perry was appointed Professor at Otago University. His research focuses on the chemistry of natural compounds.

→ Professor Jo Putterill was appointed Director of the Joint Graduate School in Plant and Food Science, a partnership between the University of Auckland and Plant & Food Research.

→ Dr Vaughn Bell received the New Zealand Winegrowers’ Award for Innovation for his work on mealybug transmission of grapevine leafroll virus, leading to better vine management.


EXTERNAL AWARDS INTERNAL AWARDS

→ Chairman’s Awards recognising outstanding contributions to Plant & Food Research were presented to:

→ Paula Rippon, in recognition of her innovative and engaging approach to health and safety promotion

→ Dr Roger Harker, in recognition of his innovation and leadership in implementing new methodologies to guide industry quality standards

→ Di Brewster, in recognition of outstanding contribution to the success of the Mt Albert Research Centre redevelopment.

→ Work Area Manager Awards were presented to Lidia Motoi, Judith Rees, Karin Müller, Paul Blatchford, Halina Stoklosinski, Shane Maley and Dwayne Jensen for ensuring good health and safety practices within their areas of responsibility.

→ Erin Bell was named Health and Safety Champion for 2016, recognising her advocacy for health and safety and her innovative ideas in achieving good health and safety practice. Mark Andersen, Martin Hunt and Heather McBrydie were Highly Commended.

→ Margaret Hogg-Stec Memorial Scholarships, which provide women in the Institute with support for development initiatives, were awarded to Xiuyin Chen, Sarah Eady, Roberta Gentile and Darja Pavlovic.

RECIPIENT OF THE

TIAN FU FRIENDSHIP AWARD

Di Brewster receives her award from Plant & Food Research Chairman Michael Ahie.

→ Dr Marc Greven received the American Society of Entomology and Viticulture’s 2017 Best Paper Award for “Effect of Postharvest Defoliation on Carbon and Nitrogen Resources of High-Yielding Sauvignon Blanc Grapevines”, chosen from all the research papers published in the 2016 American Journal of Enology and Viticulture.

→ Mike Manning was honoured with a Tian Fu Friendship Award by the Sichuan Provincial People’s Government for “enthusiastic support to economic construction and social progress in Sichuan province” and “prominent contributions to international exchange and friendly cooperation”.

→ Dr Robert Beresford was awarded the New Zealand Plant Protection Medal in recognition of his advocacy for the use of weather-based disease prediction in developing practical disease control strategies.


OUR SCIENCE

Our seafood research is developing new production systems to enhance wild fisheries and support the growth of the aquaculture industry. (see page 30)


OUR SCIENCE

OURSTRATEGY


OUR STRATEGY

REPORT

FROM THE CHAIR


OUR STRATEGY

THE WORLD IS AN EVER-EVOLVING PLACE, AND THIS PAST YEAR HAS BEEN A REMINDER OF HOW QUICKLY THINGS CAN CHANGE. POLITICAL CHANGE IN THE USA AND UK HAVE CAUSED RIPPLES THAT ECHO THROUGHOUT THE GLOBE, AND MANY OF OUR MAJOR MARKETS ARE POISED TO REACT TO POTENTIAL CONSEQUENCES FROM THIS UNSTABLE GEOPOLITICAL ENVIRONMENT.

It is a stark reminder that New Zealand must continue to evolve and innovate to be a supplier of choice for the global market. Our products are enjoyed by consumers in more than 140 countries. We must continue to be a reliable source of high-quality, safe foods to maintain our premium position. On a recent trip to the USA I was reminded of how much our overseas consumers see our food and beverage products as a ”safe haven” in a world of volatility, uncertainly, complexity and ambiguity — the so-called VUCA world. Safe, nutritious foods from a clean and beautiful environment provide much comfort to millions of consumers around the world. This is an important part of our global proposition both as a food producer and as a nation. We must continue to protect and enhance this proposition.

At Plant & Food Research, we continue to rise to the challenges faced by our industries, whether off-shore or at home. Through the close relationships we have with our sectors we serve, we can anticipate and respond to changing market requirements and consumer demands supporting the growth of our plant and marine-based food industries into the future. The 900+ talented scientists, technicians and staff at the Institute are as energised to be part of this as I’ve seen in many years. It is exciting to be part not only of a fast-growing place of work, but also of a fast-growing sector — the growth we have seen and the future potential of plant and marine-based foods is quite extraordinary.

Celebrating 25 years of science for New Zealand

Twenty five years ago, the Crown Research Institutes were created from the disbanded Department of Scientific and Industrial Research and other Government research units. Whilst Plant & Food Research was formed only in 2008, our legacy organisations — HortResearch and Crop & Food Research — were two of the original CRIs formed on 1 July 1992. This part of our heritage is something that we celebrate, and many of the research activities being undertaken today are progressions of work that has been undertaken over the past 25 years and more.

We have a strong track record of delivering impact for our sectors, and the anniversary of the CRIs provides the opportunity to reflect on this. Over the past 25 years, we have contributed to a quadrupling of New Zealand’s food and beverage exports, including an increase in horticultural exports from $1 billion to more than $5 billion. It is on this legacy that we will continue to deliver for our sectors, and for New Zealand.

Strong financial performance

The Institute has delivered a strong financial performance again this year, and I wish to commend the team for their efforts. Total revenue for the year was $146 million, $3.9 million better than budget and $6.1 million better than last year’s. This strong financial position allows us to invest actively in our people, our facilities and our research, ensuring we remain relevant for our sectors in the future.

Thanks to all

I’d like to thank the Board for their support in ensuring the success of the Institute, and in particular to Stana Pezic who has resigned after six years as a Director. Stana has most notably been Chair of the Audit and Risk Committee since 2012, and her expertise will be missed by that group. I wish to acknowledge Greg Gent who will be stepping into the Chair role on that committee.

On behalf of the Board I also wish to acknowledge CEO Peter Landon-Lane, the Senior Management Team and the wider Plant & Food Research team. We have had several very strong years and I have every confidence that their ongoing commitment to the Institute will see us continue to deliver on our mission — to enhance New Zealand’s economic, environmental and social prosperity.

MICHAEL AHIEChairman

“


OUR STRATEGY

CEO’S

REVIEW


OUR STRATEGY

PLANT & FOOD RESEARCH DELIVERS RESEARCH AND INNOVATION THAT SUPPORTS THE GROWTH OF THE PLANT AND MARINE-BASED FOOD INDUSTRIES. OUR SUCCESS IS INTRINSICALLY LINKED WITH THE SUCCESS OF OUR CUSTOMERS AND THE INDUSTRY SECTORS WE SUPPORT.

We have seen partnerships with our current customers strengthen over the past few years as a result of strong export growth, as well as recognition of our reputation as a research partner that understands the markets in which they operate. This was reflected in our Institute being named Supreme Winner of the AUT Excellence in Business Support Awards.

Celebrating success and addressing challenges

This year has seen a number of milestones, for our Institute and our sectors. It has been 25 years since the creation of the Crown Research Institutes, a time for us to reflect on the impact we have had for our sectors. Notably it is also the 20th anniversary of the Zespri brand, one of our major partners, and that company’s total sales revenue grew to a record high of $1.9 billion. The horticulture sector exceeded $5 billion in exports for the first time, with total produce calculated to exceed $8.7 billion, meaning the sector is on track for meeting its target of $10 billion by 2020. This included wine exports exceeding $1.5 billion; the wine industry is well on its way to its target of $2 billion of exports by 2020.

Success does not come without its challenges. This year also saw the arrival in New Zealand of the plant fungal disease myrtle rust. The finding of this disease has particular significance for many of our Māori partners, as it affects taonga plants such as pohutakāwa, and, also important for our honey industry, mānuka. Our scientists have been undertaking research on myrtle rust since 2013, and their experience has been invaluable in supporting the Ministry for Primary Industries’ biosecurity response to the disease.

Investing in the future

Our purpose is to enhance the value and productivity of the horticultural, arable, seafood and food and beverage industries. To deliver on this promise, we must continue to innovate as an organisation, ensuring we are mindful of the rapid pace of change of technology and science. Technological advances are an opportunity for both our Institute and our sectors, and if we are not mindful of these we risk losing access and relevance to our markets and to the consumers of our products.

Owing to our strong financial performance over the past few years, we have been able to invest proactively across the Institute, ensuring our research and our facilities enable us to continue to deliver high impact science and innovation. Our Ways of Working initiative is providing the right technology and equipment for our current research activities, as well as the flexibility to incorporate future new technologies. We have also been investing in our people, our most important asset. With the “Baby Boom” generation approaching retirement age, we are proactively investing in succession planning, training and development to ensure our future workforce remains relevant.

Delivering impact for New Zealand

I am proud of the impact our team is delivering for our sectors, and would like to thank all our staff for their ongoing contribution to the success of our organisation, our sectors and New Zealand. I am confident we will continue to maximise the opportunities presented to deliver value for New Zealand.

PETER LANDON-LANEChief Executive Officer

“


OUR STRATEGY

STATEMENT OF CORE PURPOSE:

OUR MISSION:

OUR VISION:

Sustainable, premium seafood

and marine products

Better cultivars faster™

Residue-free pest and disease

control

Sustainable and profitable

production systems

Premiumfoods and beverages

INCREASE VALUE

PROTECT & ENHANCE

SUSTAIN GROWTH

Growth in export value and volume from production of

Plant & Food Research-bred

cultivars

New cultivars Consumer insights

Seafood production

Biological control agents

Production technologies

Genomic selection tools

Food technologies

Premium seafood products

Disinfestation technologies

Systems modelling

Wellness foods and ingredients

Novel marine products Biosecurity Ecoverification

tools

Enhanced international

competitiveness and environmental

quality through pest and disease

management solutions

Enhanced international

competitiveness and environmental

quality through optimal use of

inputs

Growth in export value and volume

of whole foods and ingredients based on fruits,

vegetables and grains

Growth in export value and volume

of premium seafood and

marine products

STRATEGIC PRIORITIES

OUTCOME AREAS

STRATEGIC FOCUS

PERFORMANCE TARGETS

OUR STRATEGY

ROADMAPFROM OUR STATEMENT OF CORPORATE INTENT 2016/17 - 2020/21

WE DELIVER IMPACT TO OUR INDUSTRY SECTORS AND CUSTOMERS BY ALIGNING OUR SCIENCE AGAINST THREE OUTCOME AREAS

p 26 p 30 p 34 p 38p 22Find out more …


OUR STRATEGY

STATEMENT OF CORE PURPOSE:

OUR MISSION:

OUR VISION:

A HEALTHY BUSINESS

Growth in value and volume of customer base

Sectors and customers

Te Rāranga Ahumāra

Internationalisation

Building our brand

Science reviews and Science

Advisory Panel

Intellectual assets, databases and

collectionsProductivity and

efficiency Our workplace

New business development

Client relationship management

Hubs, National Science

Challenges and other

collaborations

Managing risk Our technology Sustaining profitability

Existing business growth

Technology transfer and digital

engagement

Investing in science and

capabilityHealth and safety Our people Growing revenue

Enhanced engagement with our stakeholders

Engagement

Enhanced performance

through establishment of best teams from across company

and beyond

Science for impact

Enhanced performance through best

practice approaches to

people and assets

Organisational excellence

Enhanced performance through best practice use

of technology, workplace and

workstyles

Ways of Working

Enhanced profitability

and financial performance

Financial performance

Valued by our stakeholders and admired by our peers for the quality and impact of our science

To enhance the value and productivity of New Zealand’s horticultural, arable, seafood and food and beverage industries to contribute to economic growth and the environmental and social prosperity of New Zealand

WE ENSURE THE HEALTH OF OUR BUSINESS BY FOCUSING NOT JUST

ON WHAT WE DELIVER TO INDUSTRY BUT ON HOW WE DELIVER IT AND

PERFORM AS A COMPANY

p 44 p 52 p 54 p 60 p 64 p 82

A sustainable business delivering science that maximises opportunities to enhance New Zealand’s economic, environmental and social prosperity


OUR SCIENCE

Our research to develop new pest control methods involves understanding how to rear insects, including the development of artificial habitats. (see page 37)


OUR SCIENCE

OURSCIENCE


OUR SCIENCE

Standing out in a crowded marketplace takes novelty, visual appeal and a reputation for high quality. New products that look and taste different, as well as capitalise on the natural “health halo” associated with plant crops and can be grown with minimal environmental impact, attract a premium in the global marketplace.

We develop new fruits, vegetables, arable and ornamental crops with the characteristics growers demand — such as improved resistance to pests and diseases, and high yields; and the taste, flavour and novelty attributes that consumers desire.

PERFORMANCE TARGET

→ Growth in export value and volume from production of Plant & Food Research-bred cultivars.

RESEARCH FOCUS

→ Breeding tools that deliver premium cultivars

→ Genomic selection technologies to support breeding of New Zealand plant-based food crops.

INCREASE VALUE

BETTER CULTIVARS

FASTER™

PhD student Angel Peng hand pollinates apple flowers.


OUR SCIENCE

In 1991, breeders tasted the first fruit from a new kiwifruit cultivar known as ‘Hort16A’. Launched in 2000, within its first decade on the market, ‘Hort16A’, marketed as Zespri® Gold Kiwifruit, was generating sales in excess of $600 million a year. In 2010, the disease Psa was discovered in New Zealand and ‘Hort16A’ was found to be particularly vulnerable. A new gold cultivar, ‘Zesy002’, was fast-tracked through commercial trials and released to growers in 2011. Now generating $735 million of sales annually, new economic analysis suggests ‘Zesy002’, marketed as Zespri® SunGold Kiwifruit, will be a major contributor to the growth of the kiwifruit industry, which will contribute $6.1 billion to New Zealand’s GDP by 2030.

BREEDING BETTER BLUEBERRIES

The reported health benefits of blueberries have contributed to their status internationally as a “superfood” and led to increased demand for the fruit around the world. In the United States alone, per capita demand for blueberries grew by almost 50% between 2011 and 2015, and the product has been gaining in popularity in many Asian markets, particularly China.

Although the industry in New Zealand is still small, 2016 estimates put domestic sales at $18 million and exports at $41.4 million, accounting for 90% of berryfruit exports by value.

Since 1989, Plant & Food Research and its predecessors have operated a blueberry breeding programme, supporting the expansion of the industry in New Zealand by creating new varieties for growers and consumers.

Thus far 25 new cultivars have been released, with successful commercialisation both in New Zealand and overseas.

‘Velluto Blue’ is a recent cultivar showing great promise. Released in 2011 and licensed in New Zealand to Blueberries New Zealand, the variety has a high yield, large fruit size and

maintains very good quality when left on the bush for long periods of time.

This cultivar also has the added advantage of ripening later than most others, providing growers with the option to plant a range of varieties, minimising risk and presenting an opportunity for an extended season of fresh berry exports.

The value and versatility of ‘Velluto Blue’ is reflected in plant sales to commercial growers, which increased from 1,811 plants in 2012/13 to 17,558 plants in 2016/17, meaning ‘Velluto Blue’ now accounts for 18% of the commercial sales of Plant & Food Research’s cultivars.

IMPACT CASE STUDY

BIG FUTURE FOR BRIGHT SPUD

A new cultivar, White Beauty, is set to make a big difference to the global potato market.

‘Crop 39’ will be marketed as White Beauty for commercial growers and Summer Beauty for the garden market. It is a bright, versatile and very high-yielding potato that has less sugar and more dry matter content than popular rivals. It will be an attractive option in the washed and brushed category and it is also versatile, suitable for mashing, roasting and boiling whole.

White Beauty’s appeal to both growers and consumers leads distributor and licensee Morgan Laurenson Ltd to believe this cultivar could be a big hit. It was bred for New Zealand conditions but is also being evaluated in Australia and the USA.

WHITE BEAUTY IS SET TO

MAKE A BIG DIFFERENCE

TO THE GLOBAL POTATO MARKET


OUR SCIENCE

Our scientists are testing fast gas chromatography mass spectrometry as a way of sniffing out fruit with commercial potential. Analysing the gases released by fruits may mean we could predict which fruit will have an appealing flavour profile. That would speed up screening of new varieties, by removing the need for consumers to taste all of them. Most tasters can test only a few samples at a time.

SNOWBERRY — A NEW COMMERCIAL CROP?

Our scientists are working with Te Rūnganga o Ngāi Tahu to determine whether the snowberry could be cultivated as a new, high-value crop for New Zealand.

The New Zealand snowberry is an indigenous plant that grows in harsh environments, such as alpine areas, which are not suitable for traditional horticultural crops. A new research programme, informed by Matauranga Māori, is building a collection of genetic variants from the Gaultheria species that grow in New Zealand. The team are analysing the plants and berries for important commercial traits, such as growth habits and fruit quality, and to understand the chemical composition of the fruit and leaves. This analysis will be used to determine whether snowberry has potential as a new commercial crop for New Zealand, either as a whole fruit or a functional ingredient, and to structure a research programme for developing cultivation methods and a breeding programme.

GENERATING FASTER BREEDING TECHNOLOGIES

A new MBIE-funded research programme, led by Plant & Food Research, is generating and assessing several new genomic techniques that will reduce breeding cycles significantly and provide gene editing capability for use in the horticulture industry.

New gene editing technologies are being used, under containment, to investigate the genetic mechanisms controlling two key traits in tree crops — flowering time and fruit shelf-life. Many tree crops take over five years to first flower, creating a bottleneck in the breeding process. Generating new genetic variants that speed up flowering can significantly reduce the time taken to identify a new cultivar with commercial potential. The shelf-life of a product is an essential

trait for commercial success, so enhancing the storage potential of a fruit by understanding the genetics that confer long storage is another focus of the programme.

The new research also includes a programme of engagement with identified groups that have an interest in how genetic technologies may be applied to create competitive advantage for New Zealand. This includes on-going dialogue with Māori growers, landowners and businesses to build awareness of the technology, to better understand how the technology fits with Māori values of kaitiakitanga and manaakitanga (guardianship and preservation), as well as explore potential options for use in both research and commercial contexts.

Ploidy — the number of chromosome sets an organism acquires from its parents — is a critical issue in many plant research programmes. Plant species often occur in forms with different multiples of their chromosome sets. In kiwifruit, for example, offspring from the breeding programme must have an even number of chromosomes — diploid (two copies), tetraploid (four) and

hexaploid (six) — to ensure fruit are produced. In contrast, hop breeding is focused on producing sterile female plants through generating odd number ploidy states — typically triploid (three) — as hop seed can impart undesirable flavours in beer.

Our scientists use flow cytometry to screen parents in the breeding programme to ensure the required ploidy of their offspring. Traditionally,

chromosomes were counted through a microscope, and a maximum of about ten cells from each of ten samples could be screened each day. Flow cytometry dramatically increases the speed and quality of ploidy analysis with up to 10,000 samples each of 2,000 cells processed by our team every year, and ploidy analysis is usually provided to the breeding team within a week of samples being received.


OUR SCIENCE

Allan White, one of the breeding team involved in ‘Scilate’, marketed as Envy™ apples and grown worldwide.

THE LOVE OF ENVY™

The apple cultivar ‘Scilate’, commercialised and marketed by T&G Global as Envy™, has gone on to become an important variety for producers and a favourite with consumers around the world for its capacity to appeal to a wide range of palates.

The cultivar is the result of a cross between ‘Royal Gala’ and ‘Braeburn’. In 1985 more than 8,000 seeds were produced, from which approximately 7,000 were planted. Just 211 trees were then selected to go on to a special advanced selection block, from which ‘Scilate’ was chosen. Texture and flavour were important traits in selecting the cultivar to ensure both marketability and consumer appeal.

‘Scilate’ captures the positive attributes of ‘Royal Gala’, ‘Braeburn’ and the sweetness of ‘Fuji’ in one apple. The fruit has an eye-catching radiant red colouration, with high flavour, high juice content and an aromatic profile thanks to its balanced acidity. Its slow flesh-browning time contributes to a pleasant eating experience.

The popularity of ‘Scilate’ is reflected in its production and sales figures. In 2016 there were more than 5 million trees planted worldwide, with another 5 million planned. In the same year, T&G Global marketed 1.6 million 18kg cartons of Envy™ globally, and its growers have enough trees in the ground to supply 10 million cartons by 2023.

IMPACT CASE STUDY

In early 2017, Envy™ took the top spot over 32 other varieties to be crowned the favourite apple by American consumers in a competition instigated by the US Apple Association, further validation of the cultivar’s global popularity.

Controlled pollination of manuka flowers supports research to identify genes that confer resistance to myrtle rust.

CRACKING MĀNUKA’S GENETIC CODE HELPS TO FIGHT MYRTLE RUST

Sequencing the mānuka genome and exploring its genetic diversity may be the key to protecting this taonga species from the fungal disease myrtle rust.

Plant & Food Research scientists mapped the mānuka genetic blueprint in 2015 and have since been using bioinformatic techniques to understand the genetic diversity of New Zealand’s mānuka populations. This study, based on 1000 samples collected nationwide in collaboration with Landcare Research, the University of Waikato and key Māori partners, will determine which parts of the genome are associated with tolerance to myrtle rust, a disease recently found in New Zealand. It will also help to predict the potential damage from myrtle rust and how fast the various mānuka populations will respond to the disease.


OUR SCIENCE

The global consumer demands a great deal from their food. The ideal food not only meets their need for taste, texture, novelty and safety, but also matches their lifestyle choices by providing natural, convenient nutrition that offers additional benefits in terms of health and wellness.

Our research helps the food and beverage industry to understand what consumers in different markets want from their food, then uses this knowledge to develop new whole foods and ingredients that meet the requirements of the most discerning consumer.

INCREASE VALUE

PREMIUM FOODS

AND BEVERAGES

PERFORMANCE TARGET

→ Growth in export value and volume of whole foods and ingredients based on fruits, vegetables and grains.

RESEARCH FOCUS

→ In-market consumer insights and in-depth knowledge of product attributes to guide development and placement of premium New Zealand foods for export markets

→ New tools and technologies to deliver premium food products effectively to export markets

→ New functional foods, ingredients and biomaterials, utilising knowledge of raw materials, nutrition, health and wellness.

Health-conscious consumers put a premium on high quality food and beverages. Plant & Food Research’s science helps develop foods that meet the most discerning customers’ needs.


OUR SCIENCE

THE RIGHT BALANCE IN THE BLEND

Convenient functional foods and beverages that benefit human health and wellbeing can be highly sought after by consumers and earn a premium in international markets.

Scientists from Plant & Food Research’s Food Solutions Team have been working with Māori-owned dairy company Miraka to create Whai Ora® — smoothie blends made with fruits, vegetables, grains, milk and honey.

Using the concept-to-production open innovation model operated by Miraka, the team set out to create smoothie products that are great tasting, easy to mix, and made from real food.

The R&D relationship involved the evaluation of ingredients from various companies, concept refinement, formulation development and the testing of prototypes using consumer research. Three Whai Ora® products are now due to be officially launched in November 2017, with more in the pipeline.

A significant challenge in developing the products was to find plant ingredients and formulations to meet the all-natural,

whole food requirement without using the stabilisers traditionally employed to prevent milk protein destabilisation stemming from the polyphenol-protein reaction when plant ingredients are added.

Optimising the formulation also meant meeting strict packaging requirements and ensuring storage stability and food safety.

The team also needed to balance and enhance the mix of ingredients to appeal to both New Zealand and overseas consumers. This required ongoing reformulations to find the preferred flavours and textures without using food additives such as artificial colours, flavours or refined sugar.

All this needed to happen within the marketing, functionality, cost and brand objectives set by Miraka.

Three products were introduced at festivals and events around the country, with sales online, in specialty retailers and via food service expected soon. So far, Miraka has exceeded its targets and expectations from both product sales and brand initiation.

In 2006, our scientists worked with Old Fashioned Foods, now Hansells, to develop the world’s first spread made from rice bran oil. Known as Alfa™ One Rice Bran Oil Spread, it is a good example of how a by-product like rice bran can be converted into a high value consumer food. The research included formulation, sourcing ingredients, production recommendations, shelf life, food safety and factory trials, and a clinical trial to demonstrate the product

was able to reduce markers of health disease, enabling cardiovascular-based health claims to be use in product marketing. Alfa™ One Rice Bran Oil Spread is now sold in New Zealand and Australia, and the range has extended to include two lower fat variants.

UNDERSTANDING CHINESE CONSUMERS

China is a major target for New Zealand exports, both currently and into the future. Funded by the High-Value Nutrition (HVN) National Science Challenge, Dr Roger Harker is leading a multidisciplinary consortium of research partners to understand better the attitudes, perceptions and behaviours of Chinese consumers with regards to healthy foods and how it affects their food purchase and consumption decisions.

The first project to be undertaken is studying infant nutrition and consumers’ purchases and uses of complementary foods — those fed to infants as they transition from breast milk alone to other foods and liquids that offer additional nutrition. Analysis has been conducted through interviews, focus groups and online surveys, as well as Chinese social media scanning, with HVN partners.

This information is being made available to New Zealand food and beverage companies to inform the development of new products that meet the needs of Chinese consumers and ensure appropriate marketing.

IMPACT CASE STUDY


OUR SCIENCE

NATIONAL FOCUS ON FOOD SAFETY

Ensuring our food is safe is vital to maintain access for New Zealand products to overseas markets. A collective investment in food safety science has led to the launch of the New Zealand Food Safety Science & Research Centre.

The Centre combines expertise in food safety science from three Crown Research Institutes, including Plant & Food Research, three universities and the Cawthron Institute, with funding and support from the New Zealand Government and industry.

The Centre will allow scientists from across disciplines and organisations to come together and deliver high quality science to enable the provision of safe food. Areas of particular focus are advanced diagnostics, risk analysis and mitigation, and market perception, providing New Zealand with the means to identify potential risks related to food safety, identification of these risks, and how these are communicated to consumers.

Plant & Food Research is leading the centre’s Advanced Diagnostics theme as well as contributing expertise in microbiological food safety, natural plant toxins, safe production systems, safe novel foods, and novel sensing elements. Graham Fletcher, Team Leader for Food Safety & Preservation, also sits on the Centre’s Science Leadership Team.

Understanding what happens to our food once we eat it can make the difference between developing a product with health benefits or one with potential off-target effects. Our scientists are using metabolomic analyses of blood and urine to track how and where food is used by the body, what metabolic pathways are being activated, and whether by-products of this metabolism are potentially harmful. Metabolomics also provides a way to measure whether foods are having the health benefits they claim, by tracking changes in compounds known to be measures for specific health issues or diseases.

Amarasate™ is a new natural product that activates the “bitter brake” in the duodenum, generating a short-term satiety response.

Ministers Steven Joyce and Jo Goodhew at the launch of the New Zealand Food Safety Science & Research Centre.

SUPPORTING WEIGHT MANAGEMENT

Amarasate™ has been developed from the Government-funded project Foods for Appetite Control. As part of the six-year project, which began in 2010, more than 900 New Zealand-origin plant extracts were screened for their ability to control appetite. Amarasate™

was identified as stimulating the “bitter brake”, a pathway in the duodenum that, when triggered, signals the brain to stop eating, thereby generating a short term satiety response.

Early clinical trials have shown that a 500mg dose of Amarasate™ significantly reduces energy intake over a four-hour period. A second clinical trial is currently underway to determine the optimal dosage of Amarasate™ required to produce the satiety effect.

Plant & Food Research is currently in discussion with global partners to take Amarasate™ through to commercialisation as either a nutraceutical or a food ingredient. This would be the first product based on a New Zealand-grown crop competing in the US$200 billion global weight management market.

EXPERT ADVICE TO ENSURE FAIR TRADING

Dr Pramod Gopal, Science Group Leader Food & Nutrition, gave expert testimony to determine the legal status of a brand of frozen yoghurt.

Based on scientific analysis presented by Dr Gopal and others, the Commerce Commission found that Yoghurt Story, a company with stores throughout New Zealand, was promoting yoghurt

products with specific health benefits but that these claims did not meet the requirements necessary under FSANZ regulations. The company was subsequently fined under the Fair Trading Act, a ruling deemed important by the Commission for ensuring customers are not misled by product marketing.

AMARASATE™ IS A NATURAL

NEW ZEALAND PLANT EXTRACT THAT HAS

THE POTENTIAL TO SUPPORT WEIGHT

MANAGEMENT.


OUR SCIENCE

KAMOKAMO AND VITAMIN C

Nutritional analysis of kamokamo, a food of importance to Māori, has shown it to have vitamin C concentrations that are relevant in a dietary context. The amount of vitamin C in kamokamo allows it to be marketed with immunity claims, for instance “Kamokamo is a source of vitamin C and consumption contributes to normal immune system function”.

Plant & Food Research’s He Kakano Whakatipu funds were used to support food composition analysis of kamokamo. The analysis showed that kamokamo has vitamin C concentrations similar to those of other vegetables, such as runner bean and globe artichoke. With more than 10% of the Recommended Daily Intake (RDI) of vitamin C, the vegetable is eligible to use the general level health claims for vitamin C under the Food Standards of Australia and New Zealand (FSANZ) regulations.

The vegetable was analysed raw and cooked in the traditional manner — cut into sections, with skin and seeds intact, and boiled until soft. Both the raw and cooked kamokamo had more than 10% RDI for vitamin C. The data have been added to the New Zealand Food Composition Database.

NEW SCIENCE FOR A VALUED SCENT

Te Rūnanga o Ngāi Tahu has a history of making perfume going back more than 200 years, in which the taonga speargrass species taramea has played a central role.

Taramea leaves were traditionally gathered, plaited and heated to extract resin, and then mixed with animal fat to create a highly valued and traded perfumed oil.

Since the culturally historic means for making the perfume cannot be reasonably employed today, Te Rūnanga o Ngāi Tahu approached Plant & Food Research to ascertain the feasibility of producing modern, commercially viable perfume products using taramea.

With the runanga Kati Huirapa Rūnaka ki Puketeraki taking the development lead, this Sustainable Farming Fund research has progressed to a commercial scale wild plant trial in the Southern Alps, where the post-harvest quality and yield of taramea oil have been explored.

The science team have researched seasonal and geographical variations in the chemical and subsequent fragrance profiles, distillation techniques and fragrance formulation methods for extracting the oil, as well as protocols and procedures for sustainable management.

This research has been essential for establishing the cost of production and the overall commercial viability of the project, and has allowed the project to progress to a product development phase.

Discussions concerning the marketability of a product range of perfumes based on taramea suggest the project is set to reinvigorate Te Rūnanga o Ngāi Tahu’s cultural practice of perfume-making while capitalising on a niche commercial opportunity.

IMPACT CASE STUDY

Scientist Dr Bruce Smallfield gathers taramea leaves, helping runanga Kati Huirapa Rūnaka ki Puketeraki develop a new perfume and reinvent a 200-year-old tradition.

Analysis shows the kamokamo can provide more than 10% of the recommended daily intake of vitamin C.


OUR SCIENCE

New Zealand has one of the largest exclusive economic zones in the world, providing vast opportunities for our seafood and aquaculture sector. Ensuring the economic and environmental sustainability of the sector relies on ensuring the catch is treated with care and applying novel processing technologies to maximise the value from every fish.

Working with the seafood industry, we develop new technologies that increase production of seafood resources while ensuring quality is retained from capture to consumer. We are also using our understanding of marine molecules to develop novel extraction and processing technologies to produce high-value marine products from marine raw materials and seafood by-products.

PERFORMANCE TARGET

→ Growth in export value and volume of premium seafood and marine products.

RESEARCH FOCUS

→ New harvest and postharvest technologies to support higher-value seafood products

→ New production systems, including wild fisheries enhancement and aquaculture

→ New technologies to support extended shelf-life and food safety

→ New extraction technologies with maximum value capture and minimised wastage to produce novel high-value products.

Dr Maren Wellenreuther and team are investigating the genetics of native fish species, including snapper, to support the growth of the aquaculture sector.

INCREASE VALUE

SUSTAINABLE, PREMIUM

SEAFOOD AND MARINE PRODUCTS


OUR SCIENCE

RAISING A FAMILY OF FISH

Raising fish in captivity requires a deep understanding of fish biology and behaviour. Through its life stages, a fish has varying requirements for light, water temperature and nutrition, as well as health requirements that may be influenced by population density or water movement in the tank. Fish behaviour is also an important factor, as fish species may be highly territorial

or require places to hide. There is also a need to provide food in the preferred way, depending on whether the fish are bottom feeders or like their food from the surface.

Our scientists have developed protocols for raising several species of native fish in captivity, including snapper, trevally, flounder and blue cod.

HELPING FLOUNDER FLOURISH

Enhancing wild stocks of yellow-belly flounder in the Marlborough Sounds can bring ecological benefits and open up new commercial, recreational and tourism-based fishing opportunities, which are especially relevant for Māori, for whom the species holds cultural and economic significance.

Through funding from MBIE’s Vision Mātauranga, a pilot project was established between Plant & Food Research and Shark Nett Ltd to evaluate the feasibility of breeding yellow-belly flounder in a hatchery environment which would then be released into the wild.

Although scientists from the Seafood Technologies portfolio have successfully bred blue cod, snapper and trevally, the requirements differ among fish species. Establishing an effective breeding

programme requires high standards of handling and husbandry to capture brood-stock, and collect the relevant scientific data to support the growth and pre-release acclimatisation of juvenile fish, as well as post-release monitoring.

Around 1,500 juveniles have been reared from milt and eggs so far, with scientific information gathered and analysed on the conditions under which yellow-belly flounder can be tank-acclimated and conditioned to produce viable offspring.

The team is working on collecting more brood-stock to accumulate additional scientific data to further refine culture techniques and address any issues currently affecting spawning condition.

Overall, the project will assist Shark Nett, Rangitāni and other iwi to fully participate in bringing scientific innovation to fish stock management in the Marlborough Sounds, and allow them to scale up future fishery enhancement programmes.

IMPACT CASE STUDY

Scientists, such as Dr Denham Cook, are learning how to raise fish, including yellow-belly flounder, to enhance natural stocks.

BREEDING NATIVE FISH FOR AQUACULTURE

A new MBIE research programme is using Plant & Food Research’s experience in breeding plants and applying those concepts to fish.

Aquaculture is one of the world’s fastest growing primary industries, and New Zealand’s aquaculture sector has ambitions to more than double revenue by 2025. The new research programme will use genomics to inform selective breeding of two exemplar species, snapper and trevally, previously not grown in an aquaculture environment, and significantly shorten the time to harvest.

Key traits of interest for aquaculture are enhanced growth rates, improved disease resistance, and temperature tolerance. The research will use populations of domesticated indigenous finfish species to identify genes controlling traits of interest, which will be used to select parents for the breeding programme. Offspring from the breeding programme will then be provided to commercial partners to assess performance in an aquaculture setting.

It is anticipated that breeding these two new species in aquaculture would increase exports by up to $100 million by 2030. The programme will also generate knowledge applicable to other fish species, and support future stock enhancement for recreational and commercial fishing.


OUR SCIENCE

Digital imagery allows us to automate the measurement of key traits in fish.

IMPACT CASE STUDY

TAKING A LASER TO QUALITY CONTROL

The deficiency of omega-3 polyunsaturated fatty acids in the Western diet has created high global demand for health-enhancing dietary supplements made from marine organisms.

Unfortunately, the analytical methods required to confirm the quality of fish oils are time-consuming and can cause damage to the oil during testing, giving erroneous results.

Scientists at Plant & Food Research and the University of Otago have investigated Raman spectroscopy as a quality assurance method for establishing the omega-3 concentration and freshness of fish oils in soft gel capsules.

Raman spectroscopy involves directing a laser at the target material, in this

case the capsule containing the oil, and measuring the small fraction of light that is subsequently scattered. The scattered light provides a fingerprint of the chemical composition of the oil.

From analysing the spectral variance, the research team has successfully measured the concentration of a range of saturated, monounsaturated and polyunsaturated fatty acids, including omega-3. This has established Raman spectroscopy as a highly sensitive method for distinguishing fresh oils from those that have been oxidised.

The preliminary results strongly favour Raman spectroscopy as a faster and more direct tool than other approaches for rapid quality assurance of soft gel capsules, without the need to compromise the structure of the capsule itself.

Raman spectroscopy analysis provides a new method for quality control of fish oil capsules.

INCREASING THE EFFICIENCY OF FISH MEASUREMENT

Our scientists have developed new image-based processes to measure a range of traits in finfish automatically, supporting the breeding of high quality populations for aquaculture.

Image-based libraries allow the rapid capture and storage of information relating to a wide range of fish traits, and provide accurate historical records for future research. Our scientists are using automated digital photography systems to measure traits, such as length, height, shape and colour, with precision in up to 600 fish per hour. These measurements are being used to track how the fish change over time and build a better understanding of fish biology.

Another process is using the visual patterning, akin to a fingerprint, of snapper to identify individual fish in a tank population. Traditionally, fish were manually tagged to identify individuals then manually weighed and measured on a regular basis. The pattern fingerprinting has removed costs of manual tagging and provides

a permanent, visual record of each individual over time.

A high-throughput process has also been developed to improve the efficiency and speed of measuring large fish populations. Video technology is used to capture the image of each fish as it passes through a chute. Images are subsequently used to generate a population count and individual length

estimates. This information can be used for determining the average growth pattern of fish and estimating the total biomass of populations.

New developments are underway to allow the individual identification of fish species other than snapper, and to allow analysis of live video capture of fish in situ, for example in tanks or cages used for aquaculture.


OUR SCIENCE

Our pilot plant allows scientists, such as Dr Susan Marshall, to develop new methods for extracting and processing natural compounds for use as ingredients or nutraceuticals.

MARINE PRODUCTS PILOT PLANT IN NELSON

Taking new extraction and processing methods out of the laboratory and turning them into reliable and efficient factory processes requires a great deal more than a bigger beaker.

Our pilot plant in Nelson allows us to take our science and test it in a close to commercial setting, supporting the development of new products for the growing marine products sector. The pilot plant is a mini factory, filled with all the stainless steel equipment that you would expect to find in a commercial nutraceutical or ingredients factory, but at a smaller, more manageable scale. Process development activities

are underpinned by state-of-the-art analytical chemistry capabilities to help us understand what is happening at every stage.

Our scientists use the pilot plant to investigate a range of processes from simple extractions through to the use of immobilised enzymes for engineering molecules. The pilot plant bridges the gap between laboratory science and large-scale factory processing, providing essential information on process design, equipment requirements, product stability and cost, supporting our clients in transferring science into production.

GENERATING HIGH-VALUE PRODUCTS FROM MARINE SOURCES

The MBIE-funded Export Marine Products (EMP) programme aims to help the seafood industry use 100% of their harvest while maximising the value of every kilogram of product.

The EMP programme is focused on extracting molecules from New Zealand’s vast array of marine organisms, including fish, shellfish and seaweed. By understanding the chemistry, biochemistry and bioactivity

of compounds found in marine organisms, and how these are affected by processing, our scientists are working with industry partners to develop efficient and economic technologies to manufacture new products. These include ingredients for the food, nutraceutical and cosmetic industries, enzyme catalysts for organic synthesis, and marine polymers for biomaterials.

In early 2006, our scientists produced the first prototype of a new fishing system that they believed could replace traditional trawl nets. They used knowledge of the physical, physiological and behavioural aspects of fish to create a system that targeted specific species and fish sizes, as well as enabling fish to be landed in a live, semi-rested state, maintaining a higher quality.

The Precision Seafood Harvesting system — developed further through a Primary Growth Partnership programme between the Ministry for Primary Industries, Sealord, Moana New Zealand and Sanford — is now being trialled on commercial fishing vessels. Products will be sold under the Tiaki brand, with fish caught “the Tiaki way” marketed as seafood fished with care. It is anticipated that use of the system will increase GDP by $43 million by 2025.


OUR SCIENCE

Protecting our productive environments from biological threats is vital. This not only ensures the safety of our native flora and fauna but also maintains access for our products to our key export markets.

Our research supports the production of plant crops with minimal use of chemical pest controls that continue to meet the world’s strictest phytosanitary legislations. We also support work across country borders to minimise incursions of new pests and diseases, and to develop new control methods and protocols when such incursions occur. Our genomics research is identifying genes that confer resistance to pests and diseases in key crops, supporting the development of new cultivars with improved natural resistance.

Isolating Zymoseptoria tritici fungus from the leaves of Canterbury wheat.

PERFORMANCE TARGET

→ Enhanced international competitiveness and environmental quality through pest and disease management solutions.

RESEARCH FOCUS

→ New tools and systems for biologically based pest and disease control

→ New cultivars with targeted pest and disease resistance

→ New “safe” disinfestation technologies

→ Improved biosecurity risk assessments, detection technologies, optimised surveillance approaches and new tools for readiness, response and eradication.

PROTECT & ENHANCE

RESIDUE-FREE

PEST AND DISEASE CONTROL


OUR SCIENCE

In May 1999, the Painted Apple Moth, Teia anartoides, a major plant pest found in Australia, was discovered in Auckland. Initial assessments predicted that damage to plantation forestry, horticulture, urban trees, human health and international trade would be significant if the pest became established.

Our scientists were involved in the eradication campaign, including assisting in the initial response with surveillance and minimising spread of the moth, understanding how the moth behaved in the New Zealand environment, including which plants acted as hosts,

and evaluating existing and developing new control methods, such as sterile insect release. This programme of research was continued until the moth was formally declared eradicated from New Zealand on 20 March 2006.

Aspects of the research continue today as preparation for potential future incursions of other unwanted insects such as Brown Marmorated Stink Bug and Spotted Wing Drosophila.

35

HARNESSING THE POWER OF THE SAMURAI

The Samurai wasp, Trissolcus japonicus, is a natural enemy of one of the biggest threats to New Zealand biosecurity, the Brown Marmorated Stink Bug, Halyomorpha halys, and may prove an effective weapon should the pest establish in New Zealand.

Plant & Food Research, as part of the Better Border Biosecurity (B3) programme, has been leading the scientific assessment to ensure the Samurai wasp would do minimal harm to New Zealand’s flora and fauna if it were released into our environment. Key to the research has been finding samples of New Zealand’s rare native stink bugs to examine the impact of the Samurai wasp on them, as well as other indigenous insects, in quarantine.

A full report, including cost/benefit analysis and risk assessment, has been submitted to the Environmental Protection Agency as part of the application to be able to release the wasp as a biological control agent should Brown Marmorated Stink Bug become established in New Zealand.

Photo: Elijah Talamas

ENSURING EFFICACY OF THE ARSENAL

Speckled leaf blotch is caused by the fungus Zymoseptoria tritici and is one of the most economically serious wheat diseases in New Zealand. Severe epidemics overseas have seen yield losses of up to 50%.

Wheat production has been calculated as contributing $160 million to New Zealand’s gross domestic product. Research shows that if just 10% of the total area used for feed wheat production in New Zealand lost 20% of yield due to fungicide-resistant Z. tritici, the estimated loss of value would be around $2.5 million.

Although there are differing degrees of susceptibility to Z. tritici among wheat cultivars, the only effective way of managing the disease currently is with fungicides.

Increasingly, however, Z. tritici is showing resistance to most of the fungicide groups available and exhibiting a malleability that suggests it may develop resistance to new chemical groups with relative ease.

The need to breed wheat lines with genetic resistance to Z. tritici was acknowledged early on as an important part of Plant & Food Research’s cereal breeding programme and a crucial component to integrated disease management strategies designed to protect the efficacy of fungicides.

To support an integrated disease management strategy for speckled leaf blotch, Plant & Food Research has implemented a programme in conjunction with industry partner the Foundation for Arable Research (FAR) and agrichemical companies to monitor the possibility of Z. tritici developing resistance to a group of fungicides known as SDHIs.

With no new modes of protection against Z. tritici expected in the short term, the integrated disease management strategy work is considered important to protect the efficacy of fungicides currently available, and to support sustainability in the wheat sector, as well as the arable industry’s ambitious growth targets.

Research Associate Rachael Warren uses a stereo microscope to collect isolates of Zymoseptoria tritici from wheat leaves showing symptoms of speckled leaf blotch.

IMPACT CASE STUDY

Painted Apple Moth larva.


OUR SCIENCE

NEW WAYS TO DETECT DISEASE

Grapevine leafroll disease is one of the most economically important and widespread viral diseases of grapevines. The disease is transmitted through infected rootstocks, scion wood or insect vectors, of which mealybugs are the most significant.

In the absence of a management programme the disease can spread rapidly, affecting both grape quality and yield through depressed sugar content and delayed ripening.

New Zealand Winegrowers initiated research into grapevine leafroll disease some years ago by developing and funding a national control strategy, with the objective of reducing or maintaining the incidence of the disease to a level deemed acceptable for long-term economic sustainability.

Within this strategy, scientists at Plant & Food Research have been studying the relationship between grapevine leafroll disease and mealybugs, as well as the effectiveness of removing infected vines (roguing) to limit the influence and spread of the disease.

Additionally, investment by Plant & Food Research has helped scientists to identify two previously undetected strains of the virus responsible for the disease. This has led to the development of more robust testing protocols, which in turn have improved outcomes for the certification of grapevine material through New Zealand Winegrowers’ Grafted Grapevine Standard (GGS).

Although grapevine leafroll disease can be visually identified in red varieties, the condition is often difficult to detect in white varieties.

To improve diagnosis in white varieties, Plant & Food Research scientists developed a cost-effective statistical method for estimating the degree of infection. The method relies on a 200-leaf sample from a uniform block, and employs analytic protocols to give a meaningful estimate of the virus across the tested area.

The new protocols have contributed to the overall development of an integrated, multi-tactic, management programme for reducing grapevine leafroll infection, helping to protect New Zealand’s position as a premium wine producer.

IMPACT CASE STUDY

ENGAGING STUDENTS WITH BIOSECURITY

Building awareness of topics of importance to Māori, such as biosecurity, often starts at the marae, but many recently urbanised Māori have no link to their now local marae so may not receive the information. School students are often an effective way to share knowledge in these populations.

In association with the Futureintech programme, Research Associate Hone Ropata is teaching school-aged students about biosecurity, with a particular focus on schools and after-school programmes in areas of Auckland with high Māori and Pasifika populations. Over the past year, Hone has built a relationship with teachers at eight schools, including primary and secondary, visiting each school on multiple occasions to talk to students across the age range. He has also been a regular visitor to the Māori Science Academy, a project mentor for the Manukau Beautification Charitable Trust’s Tiaki initiative, and a scientist guide at the Auckland BioBlitz.

During his visits, Hone talks about the importance of biosecurity and how everyone can contribute to protecting New Zealand’s flora and fauna, reflecting the Government’s Biosecurity 2025 strategy. He also supports teachers with ideas for class experiments as well as touring the school grounds with the students to identify key plants that might be affected by new pest incursions or have special significance to Māori and should be monitored for health. Some of the novel insights and feedback from the students have been used to inform aspects of our research programme.

Scientist Dr Karmun Chooi and Research Associate Arnaud Blouin take samples of grapevine for ELISA testing. Results are analysed using a new statistical model that calculates infection rates for grapevine leafroll virus in the vineyard.

Research Associate Hone Ropata takes biosecurity into the classroom.


OUR SCIENCE

MEETING THE MYRTLE RUST THREAT

The Plant & Food Research Myrtle Rust Response Group was established in April 2017 in response to the discovery of the fungal disease on Raoul Island.

Although scientists at Plant & Food Research have been researching plant pathogens such as myrtle rust for many years, the group was formed to increase the emphasis on and coordination of myrtle rust research and to contribute to industry preparedness. The subsequent arrival of myrtle rust on the New Zealand mainland has increased the relevance and timeliness of the group’s work.

Since its establishment, the group has organised workshops to identify immediate and long-term research requirements for controlling the disease, contributed to the planning of an inter-disciplinary nationwide science programme on research opportunities and priorities, and liaised with government, industry and iwi to share scientific data.

Research projects involving group members include establishing the susceptibility of key plant species — such as mānuka and pōhutukawa — to myrtle rust, building scientific knowledge for successfully storing germplasm of Myrtaceae species, and the development of “in the field” detection and surveillance systems. The group has also worked on establishing in-house protocols for responsibly researching, testing, moving and treating myrtle rust-susceptible plants.

REARING INSECTS FOR RESEARCH

Plant & Food Research has the largest insect rearing facility in New Zealand, providing a centralised resource to supply insects for research across the Institute.

The insect rearing facility at Mt Albert has 12 temperature- and light-controlled rooms, allowing the team to breed insects or hold them in hibernation states as required, as well as access to facilities under quarantine. Rearing insects requires a deep knowledge of insect biology to develop artificial diets and habitats suitable for breeding and maintaining colonies, as well as identification of species and accurate determination of insect age.

Since it was established in the 1970s, the team has built experience in breeding more than 40 species, providing insects at different life stages as required to support the development and assessment of new control agents and disinfestation techniques.

Currently, the team is breeding 17 species, including large numbers of bark beetles for research to develop new timber disinfestation techniques, and native Pentitomidae species to understand the potential effects of the Samurai wasp if it were to be deployed as a biocontrol agent for Brown Marmorated Stink Bug.

PREPARING FOR AN UNWANTED PEST

Spotted Wing Drosophila (SWD), Drosophila suzukii, is a major horticultural pest and one of the top ten most unwanted pests of viticulture, as it infests grapes on the vine and significantly reduces wine quality. Originating from South East Asia, the pest is estimated to have caused US$500 million of loss in Californian horticultural crops in 2008, the first year it was observed in the USA, and has since spread across North America and into South America and Europe.

Climatological data, comparing New Zealand wine regions with areas in the USA and Europe known to have SWD, indicate that our climate and the presence of known host plants would support an exponential growth in population size should SWD establish in New Zealand. Working with the Better Border Biosecurity (B3) programme, our scientists have reviewed published data to build understanding of the biology of SWD, its host range and known natural enemies of the pest, as well as control

methods that have been successfully or unsuccessfully deployed in other territories. This information has been used to assess potential methods that could form part of a control programme specific to New Zealand, if required.

Tiny bark beetle eggs, laid in bark shavings in thousands of specially made “bark sandwiches”, are collected for research into new pest disinfestation techniques

ONE OF THE TOP BIOSECURITY

THREATS TO VITICULTURE


OUR SCIENCE

PERFORMANCE TARGET

→ Enhanced international competitiveness and environmental quality through optimal use of inputs.

RESEARCH FOCUS

→ New practices, tools and technologies to optimise production and supply of arable, vegetable, forage and fruit crops

→ New tools to support product marketing using scientifically-verified environmental footprints.

Economic and environmental sustainability now go hand in hand for the horticultural and cropping sectors, with consumers expecting products to have demonstrable sustainability credentials as well as offering value for money.

Our research develops sustainable production methods that minimise the impact of production systems on the natural environment while optimising yield, quality and economic performance. We use knowledge of plant biology and the productive ecosystem to optimise water, nitrogen and other inputs, reducing the financial cost to the grower and allow marketers to provide scientifically validated eco-credentials to global markets.

SUSTAIN GROWTH

SUSTAINABLE AND PROFITABLE

PRODUCTION SYSTEMS

Our Future Orchard Production System increases the light exposure of apple trees, increasing yield by up to 50%.


OUR SCIENCE


BALANCING THE COSTS OF BURNING

The management of residues and stubble post-harvest is important for arable farmers when preparing to establish a new crop.

Burning stubble is one particularly valuable management method for small seed crop production where market demand is volatile and planting decisions may need to be rapidly implemented.

Although widely practised, few data have historically been collected on the benefits of burning stubble versus the long-term concerns regarding risks to property and smoke nuisance in general.

To address this knowledge gap, Environment Canterbury commissioned an expert review led by the Foundation for Arable Research (FAR), which included Plant & Food Research scientists, to

evaluate the options for managing the residues of different crops balanced against important agronomic and environmental objectives.

Stubble-burning proved the most highly ranked residue management strategy overall and the highest for retaining small seeds in rotation, reducing production costs, enhancing productivity, and reducing pest and disease pressure.

The review found that banning stubble-burning would increase the need for molluscides and herbicides (and thus hastening herbicide resistance) and increase production costs through increased tillage, particularly ploughing, which in turn could negatively affect soil structure.

The analysis estimated the “typical cost” of the “typical production system”

and concluded the net annual value of stubble-burning in New Zealand to be $4.8 million annually.

The analysis served as an important piece of evidence behind Environment Canterbury’s decision to retain stubble burning under the proposed Canterbury Air Regional Plan.

IMPACT CASE STUDY

TRACKING INSECTS

Our scientists have developed a new Automated Insect Telemetry System (AITS) to track bees and insects to better understand how they contribute to pollination of crops.

Traditional radio telemetry for animals relies on human observers who physically find and follow animals tagged with radio transmitters. Fast-moving animals or those that relocate frequently are difficult to track, and only one or two animals can be tracked at any one time.

Our scientists have developed the AITS, a system that allows up to 50 animals to be tracked simultaneously within an orchard-scale area, using solar powered antenna mast arrays. Through the use of small, very high frequency (VHF) transmitters, which weigh only 200mg, the system can track fast-moving small animals, such as bumble bees. As the antennae are solar powered, the array will track animals within a defined area as long as the transmitters remain active. AITS can allow tracking even in very remote and difficult terrain and areas with lots of vegetation cover, with data logged locally or via the internet, and the system controlled remotely.

The AITS was designed to track bumble bees to identify their nest sites, as part of a project to assess using alternative pollinators to support managed pollination activities in orchards. Our scientists are also investigating methods for developing smaller transmitters that could be used to study the behaviour of smaller insect pollinators, such as honey bees, and methods for tracking within a larger area. The system is currently being used, in partnership with Auckland Council, to track kiwi that have been reintroduced to the wild, a project which is helping to further refine the tracking algorithms and demonstrate the broad applicability of the system.

ENCOURAGING POLLINATORS TO GO NUTS

Plant & Food Research’s expertise in pollination is helping to increase yields from macadamia trees.

Trials have shown that hand pollinating flowers along rows of different varieties more than doubled the number of nuts produced. Increasing the number of local pollinators — including honey bees, stingless bees, lycid beetles, soldier beetles and flies — could be similarly beneficial in transferring pollen between different macadamia varieties.

The research, in association with Hort Innovation and the Australian Macadamia Society, will allow growers to develop strategies to ensure high yields, including choosing varieties that flower at the same time, as well as monitoring insect numbers and introducing bee hives to boost pollinator populations at critical times.


OUR SCIENCE

Caption to come

GAIN FROM GOLD

The gold-fleshed kiwifruit cultivar ‘Zesy002’, marketed as Zespri® SunGold Kiwifruit, has played a central role in the recovery of the New Zealand kiwifruit industry since the discovery in 2010 of Psa, the bacterial disease that significantly affected the production of Hort16A’, the strategically important gold cultivar at the time.

A key component of SunGold’s success is its tolerance to Psa. However, orchard management techniques have also played a crucial role in ensuring growers can maintain high quality and yield without the use of biostimulants, and have contributed notably to the kiwifruit industry’s rapid recovery.

One such technique is the use of stringing systems. Fixing fruiting canes to strings early in the season and at an angle of approximately 45 degrees above horizontal allows vines to maximise light interception; canopy vegetation can then grow more rapidly and evenly.

Crucially, stringing results in a high photosynthetic yield of sugars in the canopy, reducing the competition for

the sugars that are produced later in the season.

Trunk girdling has also been shown to deliver major improvements to fruit quality and yield, and reduce orchard management costs.

As with stringing, girdling after flowering captures a higher proportion of sugars in the canopy. These accumulate in the fruit, ensuring higher dry matter content, resulting in sweeter fruit that are strongly preferred by consumers.

More than 50 million trays of gold cultivars were sold in 2016. Zespri expect this to rise to more than 60 million by 2020, thanks to the positive reception SunGold has received in markets around the world.

IMPACT CASE STUDYUSING 3D IMAGERY TO SEE THE UNSEEN

Our scientists are investigating computer vision and 3D imaging technologies as tools to support the development of automated horticultural practices that allow growers to assess and manage their crops more efficiently.

The high quality laser scanning technology LIDAR allows the creation of high resolution maps, and is used in a number of fields, including autonomous vehicle guidance and crime scene recording. Our scientists are combining LIDAR with hyperspectral imaging to view aspects of vineyards not visible to the naked eye, such as pathogen-infected vine trunks that have yet to show symptoms of disease. This will support the development of new models and decision-making tools for vineyard management.

The technology is also being investigated as a permanent visual record of orchards that scientists could revisit should breeding targets change. As the ancestry of all plants in the breeding programme are recorded, the high-resolution orchard map would allow breeders to measure new traits of interest, even if plants in the population had been removed, to support identification of new genes of interest.

3D PRINTING IN RESEARCH

3D printing is a relatively new technology, and there are a number of ways it can be incorporated into research projects as a tool, as well as being a potentially useful method for delivering added value for our sectors.

Making parts for prototyping equipment or products using traditional machinery techniques can be time-consuming and expensive. 3D printing provides a versatile, rapid and accurate method for developing prototypes, unique research tools and test components, and for developing and demonstrating concepts to customers. Examples of

projects include developing 3D printed models for calibrating optical equipment in fruit graders to sort fruit accurately and developing prototype lures for pest monitoring.

A new project is also investigating the potential for developing bio-ink from food and food by-products for use in 3D printers. This would support the development of new added-value products with novel taste or texture experiences, as well as alternative high-value applications for plant- and food-derived materials.

Summer student Kyle Robertson tests the firmness of an apricot using a meter developed using 3D printing.


OUR SCIENCE

The Soil Plant Atmosphere System Model (SPASMO) has been in continual development since the late 1980s. The computer model uses knowledge of the mechanisms of the flow and transport of water and nutrients in the soil of the rootzone to predict the irrigation requirements of plants growing in certain soil types under different weather conditions. The model provides predictions that have been used for developing decision-support tools for horticultural crops which allow New Zealand growers to make real time decisions on crop water management, as well as tools for calculating water footprints for New Zealand plant-based products. Six Regional Councils currently use the SPASMO model to support consenting decisions on the allocation of water for irrigation, and the model has also been used in expert testimony for court cases related to water allocation and environmental regulations.

WATER VERSUS STONY SOIL

Efficient irrigation is a cornerstone of good farming practice: optimising plant performance, reducing leaching losses and making best use of our water resources. It requires knowledge of the plant’s water requirements as well as an understanding of how water moves through the soil. The presence of stones affects both the distribution of a plant’s root system in the soil and how much water the soil can hold. Optimising irrigation for stony soils requires highly specialised research facilities.

The stony soil lysimeter at our Lincoln Research Centre was established in 2014

to support the accurate prediction of irrigation and nutrient requirements in Canterbury’s intensively farmed but stony soils. The facility allows crops to be grown in a range of different soil treatments — carefully constructed from defined blends of stones of different sizes, packed to reflect the common, naturally occurring stony soil types — which can be compared for water uptake, drainage and leaching. This information is used to develop recommendations for improved water and nutrient management of crops grown in stony soils and to improve models used for developing and implementing regional nutrient management policies.

MAKING THE MOST OF HUMPS AND HOLLOWS

The dissemination of recent research findings is helping West Coast farmers to improve productivity and reduce adverse environmental impacts in their region’s rainy climate.

New guidelines to support optimised use of fertiliser on humped and hollowed land — large artificial mounds and ditches that improve the drainage of what would otherwise be unproductive, saturated soils — have been supplied to all West Coast farm businesses. These publications, including easy reference “ute” guides, will help farmers to make well-informed land development decisions regarding fertiliser applications and improved drainage methods in the interest of increasing pasture production for livestock grazing.

Also contributing to the two guides were the Ministry for Primary Industries, Westland Milk Products, Ballance Agri-Nutrients, DairyNZ, Landcorp Farming Limited, Nutrient Solutions Limited, AgCal New Zealand Limited and West Coast farmers.

Scientist Dr Hamish Brown wires up input signals from a lysimeter column measuring leachate and water flow through samples of Canterbury’s stony soil.

Pasture on “humps and hollows”, created on West Coast farms to aid drainage, responds differently to the same quantity of fertiliser. Different application rates are tested on slopes, humps and hollows to help farmers optimise their fertiliser use.


OUR SCIENCE

We work with customers worldwide, such as US berry company Enfield Farms, to deliver products that meet the demands of growers, marketers and consumers.

A HEALTHYBUSINESS


A HEALTHY BUSINESS

PERFORMANCE TARGET

→ Growth in value and volume of customer base.


→ Growing existing business partnerships

→ New business development

→ Engaging with Māori

→ Internationalisation.

SECTORS AND CUSTOMERSGROWING THE VALUE AND VOLUME OF OUR CUSTOMER BASE

Our role is to deliver research and development that supports the growth of our key industries, increasing profitability by reducing costs or adding value. Along with our industry partners, we are part of a constantly evolving world, both economically and environmentally.

To ensure we can deliver the research outcomes and impact required to support our customers, we need strong partnerships both nationally and internationally. This allows us to understand the global marketplace, supporting our customers in delivering products that allow them to compete globally.

Close partnerships between our staff and our customers allow us to deliver science that supports their needs, such as scientist Dr Bruce Smallfield and Matapura Ellison from Ngāi Tahu discussing the potential uses for taramea. (see page 29)


A HEALTHY BUSINESS

NEW BUSINESS MODELS

In a rapidly changing world, it’s unclear if today’s business model will continue to be successful in the future. That’s why we continue to experiment with changes to our business model, especially changes to our revenue types and customer mix.While “fee for service” or project based fees are still our predominant forms of revenue, our “value share” or royalty based revenues have continued to grow strongly. Royalties now make up 21% of our revenue mix, the majority of this from licensing of plant varieties.

However, the last few years have seen steady growth in other parts of our portfolio, and our business development team are actively commercialising our technologies using a range of different value sharing mechanisms.

We are also looking to work with different customers — most of Plant & Food Research’s customers are large organisations, as the expense and long cycle times associated with research create a significant barrier for small to medium size enterprises (SMEs). Over the last few years we have been experimenting with approaches that allow SMEs to invest alongside Plant & Food Research in science. The Innovation Cell, featured on page 53 of this report, is a good example of this type of innovation.

These changes in revenue arrangements and customer types are driving changes in the types of science and technology our customers are interested in. We continue to look for emerging areas both through discussions with our commercial partners and through our own market insights. Ideal areas allow us to combine an existing strength with a new and rapidly developing technology. Our Smart and Connected Food strategy (see page 59) is one example of this.

DAVID HUGHES Group General Manager Commercial

“

SUPPORTING ZESPRI’S CHINA STRATEGY

Plant & Food Research is working with Zespri on a multi-year project in China to determine whether Chinese-grown fruit can be used in Zespri’s global supply programme. This could potentially support their established global supply strategy using Northern Hemisphere fruit to supply the market in the NZ offseason, keeping Zespri Kiwifruit on shop shelves year-round in key markets.

Zespri, Plant & Food Research and Shaanxi Rural Science & Technology Research Centre signed a Memorandum of Understanding which allows for collaborative research projects, some of which are already underway. This work will help Zespri understand and overcome constraints to producing and supplying fruit to Zespri standards and also provide an opportunity to develop programmes to benefit both NZ and Chinese industries. As part of the agreement, Plant & Food Research will supply scientific expertise to evaluate fruit in this trial programme against the Zespri quality standards.

Zespri is establishing several sites in Shaanxi and Sichuan and is looking to work with Plant & Food Research to evaluate Chinese cultivars for their potential for the Chinese market, as well as understanding the differences in performance between regional cultivars.

A research agreement between the SRSTDC in China (represented by Yushan Lei), Plant & Food Research (Andrew von Dadelszen) and Zespri International (Paul Jones) will support Zespri’s global supply strategy.


A HEALTHY BUSINESS

UNDERSTANDING THE MĀORI HORTICULTURE WORKFORCE

Plant & Food Research has been working with Whenua Kura, an organisation dedicated to improving Māori leadership in land-based industries, to better understand the workforce demographics of New Zealand horticulture and identify key opportunities for Māori.

A survey of horticulture-based organisations shows a shortage of skilled workers, particularly with technical, management or supervisory experience, and that attraction and retention of these workers is difficult because of limited higher income opportunities. A lack of staff, particularly during peak harvest, can affect income and productivity for some organisations. These organisations are keen to hire new staff with a positive work ethic and willingness to learn, with those offering specialist training having better staff retention.

Whenua Kura has used the study to advocate for more NZQA-approved qualifications in horticulture at tertiary levels. These qualifications would support the development of increased skills and technology capability to address the changing nature of the sector. Whenua Kura is also developing a national engagement programme to foster sustainable businesses through long-term investment that encourages rangatahi Māori into horticultural training.

TE RARANGA AHUMĀRA

The Māori economy is now estimated to be valued in excess of $50 billion, with expected investment of around $1.5 billion to $2.0 billion per annum over the next 10 years. Plant & Food Research as an organisation has been engaging with many Māori entities new to science, especially those exploring improved land productivity or utilisation opportunities. The ability to respond to this diverse and rapidly evolving sector, who are seeking land-based horticultural solutions or innovative food solutions catering to the demands of a progressive and ever-changing global consumer, will be the challenge.

Māori are transitioning beyond the traditional primary production sectors of fishing, farming and forestry into new and exciting opportunities in horticulture and innovative foods. What will emerge is a strong industry group able to influence industry strategies and direction. It is for that reason Plant & Food Research has partnered with Māori horticultural entities like Te Awanui Huka Pak, Tuhono Whenua Horticulture and Kono Hort, as well as new and novel food initiatives in native plant flavours, kamokamo, and edible native insects and fungi.

Right now is an exciting time for Māori businesses as they continue to build the momentum for shared wealth and prosperity. The Māori economy is on the cusp of significant growth.

ALBY MARSHMāori Relationship Advisor

KAI RAWA — INSPIRING THE MĀORI FOOD SECTOR

Plant & Food Research partnered with Callaghan Innovation to lead a delegation of representatives from Māori food and beverage companies to the USA to expose them to the latest innovative thinking and technologies.

The Kai Rawa group — which included eleven organisations from the New Zealand food and beverage sector — visited technology companies, research centres and universities in California,

before attending the IFT (Institute of Food Technologists) Expo in Las Vegas. The IFT Expo showcases the latest research and innovation in the global food industry, with 20,000 attendees and 1,200 exhibitors.

Based on the Nuku ki te Puku Māori model, the experience provided an opportunity for the delegates to discuss how innovation could support growth of New Zealand’s food and beverage exports.

“Understanding more about the needs of the Māori horticulture workforce has led to Whenua Kura advocating for additional training opportunities.

The Kai Rawa delegation, including representatives from 11 New Zealand organisations, visited the USA to learn more about global food innovations.


A HEALTHY BUSINESS

CATALYST FUNDING SUCCESS

Plant & Food Research will be embarking on four new international collaborative projects funded through the MBIE Catalyst Fund.

Dr Jia-Long Yao received Catalyst Leader funding to develop a collaborative research programme with Huazhong Agricultural University and Northwest Agricultural and Forestry University in China to understand the molecular mechanisms involved key traits resulting from bud mutations. This will focus initially on analysing the genome sequences of 100 Navel orange cultivars that have been selected from a single founder plant, and will later be applied to the breeding of other tree crops.

Dr David Chagné and Dr Susan Thomson will co-lead one of two Catalyst Seeding projects, looking at computational methods to record and analyse traits that result from complex polyploid genomes. The international consortium will include Plant & Food Research, the University of Otago and Massey University in New Zealand, with US researchers from the University of California Davis, the US Department of Agriculture, the University of North Carolina Charlotte and North Carolina State University, as well as Wageningen University in The Netherlands.

Dr Karin Müller, recipient of a second Catalyst Seeding grant, will lead research into developing policy and engaging communities to ensure better groundwater management in New Zealand and California. The multi-disciplinary team includes scientists from Plant & Food Research, Landcare Research and University of California Davis (USA).

Plant & Food Research is also collaborating, as part of a Catalyst Fund project, with Scion, the Wellington Botanic Gardens, the Royal Botanic Gardens Kew (UK), the Department of Agriculture and Fisheries Queensland and the New South Wales Department of Primary Industries (both Australia) in a project to understand the effects of myrtle rust on New Zealand plant species, and to develop new detection, surveillance and seed storage systems.

DISRUPT OR BE DISRUPTED

Change is all around us, increasing in speed and intensity to the extent it is now regularly referred to as “disruption”. This is creating opportunities for our customers and ourselves.There are many disruption opportunities for us, where we can use science to create better outcomes for the world, people and communities. Science, working in partnership with business and our wider communities, has a key role to play in developing the New Zealand food story. We must put the consumer and communities of interest at the centre of this and ask what people will value, today and tomorrow.

There are a number of questions we should ask and answer in the future.

These include how New Zealand could benefit from consumer movement to plant-sourced proteins over animal-sourced proteins, how we maximise waste streams from food production in high-value new foods and materials, how new digital sensor technologies and connected devices can offer consumers greater security, safety and trust in their food, and how rapidly evolving genomic technologies can challenge existing limits to breeding and the ethical and trust issues these generate with consumers.

There is a very strong future for authentic New Zealand food that understands and responds to all the disruptions that will come as consumers and communities become increasingly demanding about food. Let’s grab that opportunity, with great science supporting a great New Zealand food provenance story.

BRUCE CAMPBELL Chief Operating Officer

“

ACCESSING GLOBAL FOOD PARTNERS

Plant & Food Research has joined the Food Valley Society, an international network of more than 140 organisations focused on innovation in the food sector, and EuroFIR, an international association aimed at ensuring cooperation and harmonisation of food standards.

Food Valley, based in the Netherlands, is recognised as one of the leading clusters of food innovation. The Food Valley Society provides an environment for sharing knowledge and building partnerships so that food-based organisations can gain access to

potential knowledge and business partners globally, encouraging new ideas and developing new ideas in the food sector.

EuroFIR, a non-profit association based in Belgium, provides members with access to food composition data, such as the New Zealand Food Composition Database managed by Plant & Food Research with the Ministry of Health, as well as complementary tools. Membership of the association also provides networking and support for developing research and development projects in the food and health field.


A HEALTHY BUSINESS

MAKING A DIFFERENCE TO DEVELOPING COUNTRIES

In 2017, we established a new business unit to lead our work in the international development and aid space. Over the last five years, we have seen considerable growth in our portfolio of aid projects — currently $3.7 million per annum — primarily through our partnership with the New Zealand Aid Programme. The creation of this

unit enables Plant & Food Research to provide a greater focus and more tailored approach to this area of our business — building our reputation in partnering, developing and implementing projects across the value chain that deliver sustainable impact, reduce poverty and improve lives.

Our current portfolio of projects focuses on the horticultural sector, concentrated in South East Asia but our footprint extends to Africa

and the Pacific. The benefits from these projects extend well beyond our developing country partners and enable us to contribute to and support the priorities of the New Zealand Government, our shareholder; expand the experience-base and worldliness of our scientific capability; create opportunities for New Zealand industry in the rapidly developing economies of South East Asia; and expand our brand profile in the Asia-Pacific region.

DR SUZIE NEWMANTeam Leader — International Development & Aid

“Plant & Food Research has a strong history of supporting the Ministry of Foreign Affairs and Trade (MFAT) through the provision of scientific expertise for international development projects that support the sustainable development of plant or marine-based industries to reduce poverty in developing countries.

IMPROVING CROP PRODUCTION IN CAMBODIA

Through an MFAT-funded project led by International Development Enterprises (iDE), Plant & Food Research scientists are training Cambodian farmers in the commercial production of high value crops such as melon and eggplant, including production methods, health and safety protocols, and environmental considerations of agrichemical usage.

The five-year project in northwest Cambodia has already seen more than 600 farmers trained in the commercial production of new high value crops, generating an increase in average annual income of $5,000. In addition, 1,500 farmers have been trained in improved crop management techniques for their existing crops, with an average annual increase of $789.

IMPACT CASE STUDY

Our scientists, such as Graham Walker, are helping to develop new production methods for Cambodian crops.


A HEALTHY BUSINESS

AVOCADO FARMING IN KENYA

We’re working alongside New Zealand industry partner Olivado and the New Zealand Aid Programme to support sustainable economic development of small-holder avocado orchards in Kenya. Under the programme, avocado varieties with improved quality and yield are selected, production systems enhanced, and a training and extension programme established to facilitate the uptake of the new developments.

HIGH QUALITY HORTICULTURE FOR CAMBODIAN VEGETABLES

The Cambodia Quality Horticulture project, funded through the New Zealand Aid Programme, aims to grow income and opportunities throughout the Cambodian horticultural value chain by training farmers and postharvest operators on best practice aligned with GAP (Good Agriculture Practice).

SUSTAINABILITY OF VIETNAMESE VEGETABLE FARMS

A five-year development project in Binh Dinh Province funded through MFAT’s New Zealand Aid Programme is drawing on our expertise in sustainable horticulture to improve the environmental and economic sustainability of vegetable farms, and safety outcomes for both farmers and consumers.

MARKET ACCESS FOR SAMOAN TARO

A new project funded by the Australian Centre for International Agricultural Research (ACIAR) is working with the Samoan taro industry to overcome current biosecurity constraints to gain access to the Australian market.

We are currently supporting six international development

projects related to horticulture.

Through these projects we are working with MFAT and other international agencies to support development of environmentally

and economically sustainable horticultural sectors in Cambodia, Viet Nam,

Kenya and Samoa.

EXPANDING THE VIET NAM DRAGON FRUIT SECTOR

MFAT’s New Zealand Aid Programme is supporting a five-year project to breed and commercialise new dragon fruit varieties and to develop and implement improved production and postharvest systems to support sustainable economic development for the Vietnamese dragon fruit industry.

The project, a collaboration between Plant & Food Research, the Southern Horticultural Research Institute (SOFRI) and the Sub-Institute of Agricultural Engineering and Post-Harvest Technology (SIAEP), has made significant progress since its start in 2013. A range of novel dragon fruit varieties with new flavour and colour combinations are now in the advanced stages of testing. Also, a new production system to enhance productivity, a protocol for the control of canker (a significant disease threatening the industry), and improved postharvest high pressure washing and cool-chain management systems are all currently being transferred to Vietnamese dragon fruit farmers and postharvest operators.

IMPACT CASE STUDY

Working with Olivado and the New Zealand Aid Programme, our scientists are supporting the long-term sustainability of avocado orchards in Kenya.

A project to improve production and postharvest protocols will support growth of the Vietnamese dragonfruit sector.


A HEALTHY BUSINESS

Monaco 2

Brazil

Argentina 2 3

Chile 2

1

2

12

4

3Peru

Mexico 2 20

Uruguay 1

France 6 5

Spain 4 3

UK 10 2

Switzerland

1Belgium 1

USA 29 22 52

6Canada 8 48

Italy 13 6

1 61

RESEARCH COLLABORATORS

COMMERCIAL COLLABORATORS

AID PROJECTS

CULTIVARS LICENSED

2

51

1

24

MULTI-COUNTRY LICENCES

Worldwide

South America

European Union

OUR GLOBAL REACH

Our worldwide engagement delivers

scientific and commercial returns

to New Zealand


A HEALTHY BUSINESS

Kenya 2 1 1

Denmark 1 1

Sweden 1

The Netherlands 144

Finland 1 1

Norway 3 1

Japan 4 3 25

Korea

China 23 2 4

Viet Nam 3 2Cambodia 2

Ukraine 5

Moldova 1

Albania 2

Australia 26 22 76New Caledonia 1

South Africa 3 13

Germany 5 4

Poland 1

Austria 3

India 233

Brunei 1

Iran 1Pakistan 1

Singapore 4

Hong Kong 1

Morocco 2

Algeria 25

Russia 7

Samoa 1

2 1

1

Israel 2

Jordan 1

Lebanon 3

Saudi Arabia 23

UAE 1

Egypt 272

Turkey 1 1 27


A HEALTHY BUSINESS

ENGAGEMENTPARTNERING FOR SUCCESS

Effective partnerships with our customers, partners and other stakeholders, are key to identifying high impact research opportunities based on industry and market opportunities. Engaging with end-users is also vital, ensuring our science is relevant and addresses their needs, and encouraging uptake and use of our technologies.

We are also committed to communicating the importance of science, as well as its role in delivering innovation and building our economy. This not only supports the Government’s strategies to encourage better engagement with science and technology for all New Zealanders, but also ensures the science literacy of the future workforce for both our Institute and our industries.

PERFORMANCE TARGET

→ Enhanced engagement with our stakeholders.


→ Effective client relationship management

→ Building our brand

→ Technology transfer and digital engagement.

Science Team Leader Dr David Logan working with Onehunga High School teacher Michelle Simpson, one of seven science teachers hosted at Plant & Food Research as part of the Royal Society’s Science Teaching Leadership Programme. Teachers spend two terms at science organisations and attend the Society’s leadership and curriculum development programmes before returning to their schools to champion science teaching and learning.


A HEALTHY BUSINESS

PAVING THE WAY FOR NEW EXPORT PRODUCTS

Anagenix and Plant & Food Research have developed a new business model that will support the early launch of new health and wellness products for the international market.

The Innovation Cell provides Anagenix, a New Zealand-based small business, with concept products — based on fundamental science — that can be introduced to export markets and adapted based on consumer feedback and additional research findings. Over time, new research will be co-funded to build a portfolio of scientific evidence to support marketing of the product with scientifically-validated health claims.

The first product to be launched is BerriQi™, a Boysenberry-based ingredient blend aimed at Chinese consumers concerned about the effects of pollution. The product, based on science that suggests Boysenberry consumption can manage lung inflammation, is expected to garner sales of $3.6 million in the first year.

Key to the success of the Innovation Cell is the entrepreneurial environment created by on-going collaboration with Anagenix, which encourages a free exchange of ideas between the organisations to identify potential new products.

ENGAGING NORTHLAND STUDENTS IN HORTICULTURE

Plant & Food Research is partnering with the Primary ITO and Northland-based Orangewood Ltd to give local students a taste of horticulture, with the aim of increasing local talent in the horticultural workforce.

The Kerikeri Business & School Connections Programme supports the learning of students at local secondary schools by offering work experience one day each week at the Kerikeri Research Centre and Orangewood’s postharvest and orchard facilities. Over the course of the school year, the students will gain 30 credits towards their New Zealand Certificate in Horticulture Level 2 (Fruit Production).

Thirteen students from five secondary schools are currently enrolled in the programme, funded through the Tertiary Education Commission’s Gateway fund. Several team members are trained NZQA assessors and manage the students’ learning programme at the Research Centre. The 1.5 hectare demonstration garden — which includes a berry cage, hop garden and Māori garden with crops of importance to Māori — provides the students with practical experience in managing a range of crops.

Plant & Food Research Chief Executive Peter Landon-Lane and Anagenix Managing Director Chris Johnson partnering in the Innovation Cell, a business model that helps new businesses enter the market earlier.

SCHOLARS LEARN ABOUT THE HORTICULTURAL INDUSTRY

Plant & Food Research sponsored two students to attend the 2016 Horticulture New Zealand conference, providing them with insight into the sector’s activities and aspirations.

The two students — one Masters student and one PhD student, both working in the bioprotection field — joined the HortNZ scholarship programme at the conference, providing them with an industry mentor and additional sessions designed specifically for the scholars.

HUMAN CENTRED DESIGN AND DELIVERING SCIENCE

A new project is understanding how research can best be delivered to our customers to achieve greater outcomes, impact and value from the scientific knowledge.

The project team is using Human Centred Design (HCD) methodology to engage with external stakeholders across Plant & Food Research’s industry sectors to better understand how they are currently using our research. The team is using these insights to generate, prototype and test new ideas for delivering science with the stakeholder group. This HCD process allows the team to quickly fail or iteratively improve their ideas.


A HEALTHY BUSINESS

SCIENCE FOR IMPACTOPTIMISING SCIENCE QUALITY AND BUILDING THE BEST TEAMS

Ensuring excellent science supports the pursuit of robust, innovative and creative science to sustain scientific discoveries that will deliver impact to our sectors. Through an annual programme of science reviews and a robust investment strategy, and under the guidance of our Science Advisory Panel, we are constantly working to ensure our teams have the best resources, skills and scientific partnerships to deliver high quality and relevant science now and into the future.

PERFORMANCE TARGET

→ Enhanced performance through establishment of best teams from across the company and beyond.


→ Investing in future science and capability

→ Maintaining science quality through science reviews and our Science Advisory Panel

→ Managing intellectual assets, databases and collections

→ Engaging with Hubs, National Science Challenges and other collaborations.


A HEALTHY BUSINESS

SCIENCE ADVISORY PANEL

Our Science Advisory Panel (see page 71 for more) provides objective, strategic advice to our Board of Directors and Senior Management Team, to inform decisions on research strategy and future science direction. The Panel includes four leading international scientists, who cover the breadth of our scientific focus.

The Science Advisory Panel attended our Science Leadership Forum in October 2016. This allowed the Panel members to interact with key science leaders and emerging researchers from across the organisation. Over the two days they were able to emphasise the importance

of international connectivity and science quality for an organisation like ours, and led a discussion on what science excellence looks like for Plant & Food Research.

Following on from this meeting the Panel members attended the Board meeting, and were able to report directly to the Board on their impressions from the forum and to contribute to a discussion on the major potential disruptions to our space both technologically and socially. These topics included gene editing, Artificial Intelligence, plant-based foods and Citizen Science.

ENSURING SCIENCE RELEVANCE AND QUALITY

We regularly review science areas to improve our science quality, enhance focus in science programmes to achieve impact, and identify new opportunities. Each year, we undertake reviews of up to four science areas, using a panel of three or four national and international experts, including, where relevant, a member of our Science Advisory Panel.

Each review panel benchmarks Plant & Food Research against international standards for science capability and the quality of science outputs, then makes recommendations on alignment and focus over the next five to ten years, appropriate resources required to support science achievement, and collaborations and relationships that would be beneficial. These recommendations and an action plan are presented to the Senior Management Team and the Board, who commit resources to address key issues and opportunities.

In the last year, science reviews have been undertaken on mathematical modelling and food safety.

INTELLECTUAL ASSETS

14PATENTS GRANTED

TARGET 10-12

10NEW LICENCESTARGET 10-12

5 16 NZ OVERSEAS

PLANT VARIETY RIGHTS TARGET 10-14

4TRADEMARKS REGISTERED

TARGET 0-2

SCIENCE QUALITY

8INTERNATIONAL AWARDS

TARGET 10-15

32INTERNATIONAL COMMITTEE

INVITATIONS TARGET 7-12

5EDITORIAL BOARD INVITATIONS (4 International, 1 New Zealand)

TARGET 5-10


A HEALTHY BUSINESS

ENSURING PUBLICATION QUALITY

Our Science Publications Office is a team of nine, based at various sites around New Zealand, and includes editors, administrators and report finishing specialists. The team are responsible for ensuring that all scientific publications authored by Plant & Food Research staff — including peer-reviewed papers, posters for science conferences, presentations and popular articles, as well as commercial reports and those to Government funders — are well written, well presented, on time, and meet stringent requirements for scientific rigour, accuracy and relevance, as well as safeguarding our and our partners’ intellectual property.

The team’s editors also contribute to the preparation of funding applications and a variety of strategic and other documents. They manage requests through a purpose-built software system, which identifies and records all levels of approval required prior to information being published externally to the organisation. In the last year, 1,595 requests were actioned. The input needed varies from minor “polishing” and proofreading, through to writing from scratch, and to personal assistance, for example, for the many Plant & Food Research staff for whom English is a second language.

57% REGISTER AS ORCIDS

ORCID — Open Researcher and Contributor Identification — is a new global system that provides individual researchers with a unique identifier that allows for easy identification and tracking of research publications, collaborations and other research activities.

Plant & Food Research became an organisational member of ORCID in October 2016, providing an efficient way for tracking research publications that include one or more of our staff as authors. More than 50% of our science staff now have ORCID identifiers.

TOTAL SUBMISSIONS THROUGH THE SCIENCE PUBLICATION TRACKING SYSTEM IN THE 2016/17 FINANCIAL YEAR

Abstracts 219

Popular articles, newsletters 119

Book chapters 9

External web content 5

MBIE and other funding applications to various sources 77

Overseas international travel reports 9

Posters 124

Conference and other presentations 76

Commercial and other reports 560

Scientific peer-reviewed papers 219

Other requests for writing assistance from SPO Editors 178

Total 1595

Dr Anne Gunson, Science Publications Office Manager, heads a team of nine editors and publishing specialists to ensure all publications meet our requirements for scientific rigour, accuracy and relevance.

SCIENCE PUBLICATIONS

WITH AUTHORS AT OTHER NEW ZEALAND INSTITUTES

23.7%

WITH INTERNATIONAL AUTHORS

32.7%

PLANT & FOOD RESEARCH ONLY

25.6%

BOTH NEW ZEALAND AND INTERNATIONAL AUTHORS

18.0%

2.86SCIMAGO CITATION AVERAGE

per published paper TARGET 2.8-2.9

312PEER REVIEWED PUBLICATIONS

CONTRIBUTORS


A HEALTHY BUSINESS

HOSTING INTERNATIONAL SYMPOSIA

Plant & Food Research hosted two international symposia this year, providing scientists from across the globe with the opportunity to share their knowledge and learn from one another.

The Ninth International Workshop on Anthocyanins (IWA 2017) was held in Auckland in February 2017, and attended by 90 researchers from 17 countries. This three-day event focused on the diversity of plant anthocyanins and their applications in plant defence, health and reproduction. In March, more than 110 researchers from 24 countries attended the Fourth International Symposium on Molecular Markers in Horticulture, held in Napier. The four-day conference focused on how genetic markers and genomic selection are being used in the breeding of new crops globally.

Plant & Food Research also hosted the first New Zealand Big Data Conference and Workshop, bringing together 50 scientists from seven organisations — including Crown Research Institutes, universities and district health boards — to discuss activities in data science, machine learning and data mining.

NATIONAL COLLECTIONS OF SIGNIFICANCE

Plant & Food Research hosts two Nationally Significant Databases for New Zealand — the Crop Germplasm Resources Unit (CGRU) and the National Collection of Fruit Crop Germplasm (NCFCG). These collections contribute to our breeding programmes, as well as acting as depositories for plant genetics that may have importance in ensuring the resilience of the horticulture industry in the future.

The CGRU comprises a comprehensive collection of arable and vegetable crop species, including wheat, barley, oats, maize, peas, onions, oilseeds, Brassica species, potatoes and kumara. The NCFCG contains long-lived perennial

horticultural species, including kiwifruit, pipfruit, summerfruit, berryfruit, hops, citrus and avocado. Perennial and field-grown plants are maintained by our Field Research Network, with collections replicated across multiple sites to reduce impact by disease or environmental factors. In addition, new technologies, such as tissue culture and cryopreservation, are assessed and developed as alternative storage methods where appropriate.

Maintaining diverse collections of plant genetics are critical for the breeding programmes that contribute to the New Zealand land-based industries. Ensuring a broad base from which to breed

provides a mechanism to identify genes that control resistance to pests and diseases, including those not currently in New Zealand, or to select for different characteristics as consumer trends change. New economically-important species are added to the collection as deemed appropriate.

These collections would be almost impossible to recreate if lost because of biosecurity regulations, which would limit importation of new collections, loss of natural environments at the plants’ centres of origin, or national ownership restrictions.

Ninety researchers from across the world attended the Ninth International Workshop on Anthocyanins, hosted by Plant & Food Research in Auckland.


A HEALTHY BUSINESS

INVESTING IN THE RIGHT SCIENCE

This year we saw Core Funding become part of the Strategic Science Investment Fund (SSIF) within the Ministry of Business, Innovation and Employment (MBIE).

Core Funding has been the major co-investment tool allowing us to work more closely with industry to produce impact for our sectors and New Zealand. This has been highly successful, with Plant & Food Research forging more relationships based on collaborative R&D within our sectors over the last five years.

This will not change over the coming seven-year contract for SSIF; however, we will see a number of further targets for research carried out using Strategic Funding.

These include leveraging more Māori-relevant research, undertaking more transformational research, expanded international collaboration, and moving towards a view where these funds support a suite of research skills and capabilities for our sectors and New Zealand. Plant & Food Research will also continue to reserve approximately one quarter of its Strategic Funding for Future Science, to support research that tests new ideas and develops new capabilities.

INVESTING IN FUTURE-FOCUSED RESEARCH

Plant & Food Research manages a large internal investment fund, made up of contributions by the New Zealand Government’s Strategic Science Investment Fund (SSIF) and royalties from licensing the Institute’s technologies and cultivars. Our investment portfolio aims to optimise the allocation of resources to maximise impact for our sectors and New Zealand, and to undertake science that will be critical for the future.

Investments are allocated through an internal process overseen by our

Investment Committee. Sector-aligned or pan-sector research is required to deliver advantage for our sectors, and our Sector Champions work with our key sectors to understand the areas where investment may best deliver competitive advantage and returns for New Zealand.

Our Future Science Fund invests in Blue Skies and Discovery Science projects. Short-term Blue Skies projects are aimed at trying super-innovative ideas, and longer-term Discovery Science projects develop new ideas and foster new skills, capabilities and

collaborations for a specific scientific theme — in the 2016/17 year, themes were digital tools for primary production, improving data management, and great ideas. He Kākano Whakatipu offers seed funding for projects to develop new relationships or projects that benefit Māori, and can run for up to a year. The Growth Fund is targeted at projects that will generate future economic returns for Plant & Food Research, such as new methods or markets for commercialising intellectual property.

RICHARD NEWCOMBChief Scientist

“

HE KĀKANO WHAKATIPUBenefits to Māori

PAN-SECTORConsumer & HealthSustainable Agro-EcosystemsBiosecurityBreeding Technologies

GROWTH FUNDFuture economic returns for Plant & Food Research

SECTOR-ALIGNEDAvocado, Berryfruit, Cropping, Honey & Hive, Kiwifruit, Onion, Pipfruit, Potato, Seafood, Summerfruit, Vegetables, Wine

DISCOVERY SCIENCELonger-term projects around a theme

→ Digital tools for primary production → Improving data management → Great ideas

BLUE SKIESSuper-innovative, short-term projects

DEVELOPING emerging ideas LEVERAGING proven ideasGENERATING new ideas

OUR INVESTMENT

MODEL


A HEALTHY BUSINESS

SMART AND CONNECTED FOODS

Plant & Food Research has been investigating new ways we and our sectors can fully exploit the ever-growing potential of the digital revolution.

Smart and connected businesses collect and collate data generated across the value chain. They react in real-time to changes anywhere in their ecosystem — from managing pests or weather events in the orchard to redirecting shipments in response to market demand. Some of our industries have begun the move to becoming smart and connected. We

will co-innovate with them to maximise their operational efficiency and value generation through improved and novel uses of digital technology fused with biological knowledge. At the same time, we will be adapting the way we do research to allow our industries to capitalise on the data we are generating.

Plant & Food Research’s science provides underpinning and relevant biological knowledge — with digital integration, this will become predictive and result in decision-support tools for today’s and tomorrow’s sectors. Plant-

and marine-based industries will evolve beyond precision agriculture, moving from optimising individual points along the value chain towards wholly integrated and technologically-enabled supply networks. Optimised smart and connected businesses will generate value with novel ways of connecting producers with consumers to deliver highly desired personalised offerings. Plant & Food Research will support its sectors in their drive to become nimble, connected and collaborative, from research through production to consumers.

IaaS: Provision of virtual machines and other resources to users on a subscription basis.

PaaS: Online provision of a platform allowing customers to develop, run and manage applications.

SaaS: Provision of customised mobile applications, software and databases providing hindsight, insights and foresight to agri-food business.

FOOD INFORMATICS

Integration of analytics, machine learning and neural networks to build predictive models from the large data

sets collected from the agri-food ecosystem.

CLOUD COMPUTING SERVICE MODELS

Infrastructure as a Service (IaaS):Platform as a Services (PaaS):Software as a Service (SaaS):

CYBER-PHYSICAL SYSTEMS

Autonomous physical elements in a production system

embedded with sensors and computational capability

such as control algorithms to implement variability

management.

VARIABILITY MANAGEMENT

Management practices applied along the production, supply

and distribution chain to tailor interventions at appropriate spatial and temporal scales

(akin to conventional concepts of precision farming).

SENSOR NETWORKS &

CONNECTIVITYGeo-spatially distributed

autonomous sensors that monitor agri-food metrics, environmental

conditions & behaviour of customers that pass these data

(often wirelessly) to a central repository.

SMART & CONNECTED

FOOD

SOCIAL LICENCEAcceptance by

stakeholders that by sharing their data,

sufficient value will be returned to them and

that the data will be used as agreed.


A HEALTHY BUSINESS

ORGANISATIONAL

EXCELLENCEENHANCING OUR PERFORMANCE

Plant & Food Research has a strong and enduring commitment to continual improvement in all our business systems which goes beyond legislative requirements. We are also committed to ensuring our culture promotes health and safety, professional development and compliance, as well as demands respect and consideration for others.

PERFORMANCE TARGET

→ Enhanced performance through best practice approaches to people and assets.


→ Optimising health and safety culture and systems

→ Managing risks effectively

→ Maximising productivity and efficiency.

OUR VALUESOur performance and reputation as a good

employer is underpinned by our commitment to fostering a positive workplace culture that is

characterised by three shared values.

→ The creative application of our knowledge

→ Achievement through leadership

→ Relationships based on mutual respect and trust.

Emmarena Ruakere-Norris spent the 2016/17 summer working with Reginald Wibisono and the Food Safety & Preservation Team as part of our Summer Studentship Programme.


A HEALTHY BUSINESS

IMPROVING CONTAINMENT FACILITIES

Plant & Food Research has an on-going programme for improving and replacing aging containment infrastructure and equipment, as well as ensuring facilities are relevant and sufficient for our research activities.

In the past year, we have commissioned four new laboratories designated PC2 (Physical Containment Level 2) and a new state-of-the-art PC3 containment laboratory at the Mt Albert Research Centre. We have also built a new PC2 containment glasshouse at our Te Puke Research Centre.

IN THE PAST YEAR:

33RISK ASSESSMENTS

for trial agricultural compounds, human or plant pathogens, and

invertebrates

19RISK ASSESSMENTS

for food safety and clinical trials

710staff, students and visitors

TRAINED ON CONTAINMENT REQUIREMENTS

7INTERNAL AUDITS

BEST PRACTICE RECRUITMENT, SELECTION AND INDUCTION

We use best practice selection procedures for all appointments, with line managers being supported throughout the selection process by our HR Advisory team. All vacancies are advertised internally to provide opportunities for career development and advancement. When advertising externally we use web-based technologies to access a diverse range of communities and candidates. A comprehensive induction and orientation programme ensures all new recruits are supported to become effective contributors as early as possible.

In 2016/17 we appointed 109 people from 20 different nationalities (59 female, 50 male), including 24 from within the organisation.

PROMOTING EQUAL EMPLOYMENT OPPORTUNITIES

Our EEO initiatives are directed at increasing the percentage of women at senior levels, both in science and in other areas of the Institute and increasing the opportunities for groups who are historically under-represented in our workforce including Māori, Pacifica and people with disabilities. Progress is reviewed annually through a set of workplace demographic metrics and data covering gender, ethnicity, nationality and disability collected from new recruits.

The proportion of senior women scientists including those in group leadership roles continues to increase, largely through internal promotions, and we expect that further progress will continue to be made over the next decade as significant numbers of our senior scientists retire.

Our Māori business unit Te Raranga Ahumara is focused on leading the implementation of Māori research and innovation objectives. This is supported by performance indicators for developing capability and increasing understanding within Plant & Food Research and among Māori regarding the opportunities to work more closely.

Our annual Summer Studentship Programme provides promising science students from across New Zealand with their first experience of working in science. In 2016 four of the 28 studentships were awarded to Māori and Pacifica people as part of a broader initiative for increasing participation from groups that are under-represented in the science workforce.

GOOD EMPLOYER RESPONSIBILITIES

Our values capture what is important for us and provide a framework for our people-related initiatives and decision-making.

We are committed to the practice of equality of opportunity, which provides for equal access, consideration and encouragement in recruitment, selection, promotion, conditions of employment and career development for both current and prospective employees.

We view our diverse workforce, comprising people from many different cultures and nationalities, as a strength that aligns well with the increasingly international nature of our research and development programmes.

Helen Mussely, the new General Manager Science Seafood Technologies, is one of 109 people appointed this year.


A HEALTHY BUSINESS

PROGRESSIVE CONDITIONS OF EMPLOYMENT

The Plant & Food Research General Terms & Conditions of Employment include provisions promoting equal employment opportunities, career development and employee participation in the development of the workplace. They provide a wide range of benefits including superannuation, medical insurance and generous leave provisions.

Our partnership agreement with the PSA serves as an effective mechanism for involving staff in the ongoing development of a high quality work environment in line with the principles of partnership and EEO.

Additional paid parental leave, on-site child care facilities at our larger sites and flexible and part-time hours of work enable people to balance their work and family responsibilities and minimise disruption to their careers. Eighteen percent of our salaried staff work part-time, including a significant number who have reduced their hours while they care for dependents.

Career and associated remuneration structures are based on standard job evaluation methodologies and peer review to ensure equity and transparency in both pay and progression opportunities. The historic pay gap between male and female science staff is reducing, with median female pay levels now at 98.5% of the median pay rates for males across our eight science salary ranges. This ratio is repeated across our six salary ranges for general staff.

Staff working towards retirement have the option of progressively reducing their hours and responsibilities. Retraining and outplacement support is available to staff affected by change in the workplace.

DEVELOPING POTENTIAL

Our Performance, Planning and Review process ensures that all staff have work and development plans that are reviewed annually with their manager. All staff have the opportunity to be supported in studying toward qualifications that align with the Institute’s requirements. Women across the organisation have the opportunity to apply for financial support through the Margaret Hogg-Stec scholarship, with up to three being awarded annually.

Our strengths-based Leadership Programme provides development opportunities for current and future leaders at all levels of the organisation.

Over the past year, 73 people participated in the Programme, including 24 for the first time through the Cornerstones of Leadership option, which is targeted at people who have yet to have line management responsibilities, and 13 in the Team Leader option, designed for people with multiple direct reports. A further 36 people participated in follow-up development sessions, which use 360º surveys to measure programme impact, with resurveys consistently delivering positive results.

Twenty-five people participated in a new career development programme featuring career insight coaching.

A new mentoring programme has been successfully piloted with a view to providing a programme for up to 50 people annually.

A SAFE AND HEALTHY CULTURE

The National Health & Safety Committee, comprising staff and management representatives, is responsible for setting and reviewing the Institute’s health and safety programme, in line with continual improvement principles. The programme includes objectives developed by local health and safety committees drawn from staff at each of the Institute’s sites.

The Institute’s ongoing efforts in this regard have seen it achieve tertiary level requirements for ACC’s Workplace Safety Management Practices programme in successive biennial audits.

They are also reflected in continuing low injury rates, including those requiring medical treatment or time off and a continuing improvement in the Institute’s position relative to industry benchmarks.

Our Code of Conduct & Ethics and Policy on Unacceptable Behaviour define those actions including harassment, bullying and unlawful discrimination that will not be tolerated and provide processes for responding to situations where unacceptable behaviour may have occurred. A network of trained contact people provides confidential support and advice on the Policy.

ENGAGING OUR PEOPLE

Our biennial workplace survey is our primary vehicle for assessing how people view their jobs and the organisation. The 2016 survey, which was completed by 84% of staff, showed a significant increase in both the performance index (the average of all survey question scores) and the engagement index, in terms of both the 2014 results and the survey benchmark. Areas of particular strength include common purpose, commitment, pride in the organisation, and the degree to which staff would recommend Plant & Food Research as a great place to work.

2016 2014 2012Performance Index: 70 (64) 65 (62) 63 (64)

Engagement Index: 72 (65) 67 (63) 65 (65)

(sector benchmark)


A HEALTHY BUSINESS

NEW ZEALAND WORKFORCE PROFILE as at 30 June 2017

2011 2012 2013 2014 2015 2016 2017

Māori 2 1 4 1 2 4 2

NZ European/Pakeha/NZ 29 22 19 31 18 48 73

Pacific Island 1 1

Australia 3 3 3 2 1 3

China 2 3 2 4 5 4 4

India/Pakistan/Bangladesh/Sri Lanka 7 4 4 2 5 5 6

Other Asia 3 7 3 4 6 6 3

United Kingdom/Ireland 5 1 1 5 5 4 7

Other Western Europe 1 4 3 5 4 6

Eastern Europe 1 2 1 2

USA/Canada 3 4 2 2 1 2

Latin America/Caribbean 1 1 1 4 1

South Africa 2 2

Other Africa 1 1 1 1 2

Total 56 49 41 60 53 83 109

NATIONAL/ETHNIC ORIGIN OF NEW RECRUITS at 30 June

<30 30-39 40-49 50-59 60-69 70+

%50

40

30

20

10

0

RESEARCH TEAMS

OTHER

AGE

RESEARCH TEAMS

RESEARCH SUPPORT

GENERAL

SENIOR LEADERSHIP

GENDER

51%49%

0 20 40 60 80 100%

TECHNICAL 10

SCIENTISTS

12

GENERAL

15

VOLUNTARY STAFF TURNOVERRESEARCH SUPPORT

99

GENERAL

150

SENIOR LEADERSHIP

12

RESEARCH

667

928 37

HEAD COUNT

37


A HEALTHY BUSINESS

PERFORMANCE TARGET

→ Enhanced performance through best practice use of technology, workplace and workstyles.


→ Supporting and enabling our people

→ Adopting and adapting technology to support innovation

→ Building inspiring workplaces.

WAYS OF WORKINGCREATING INSPIRING WORKPLACES AND WORKSTYLES

The redevelopment and modernisation of our work environments is being guided by a set of principles and objectives that capture the way we aspire to work. Collectively known as Ways of Working, they are being applied in a major rebuild of our large research centre in Auckland and new facilities for seafood technologies research in Nelson.

Our Ways of Working initiative will ensure our spaces and our technology will support science and business innovations throughout the Institute. Significant investment in new and existing buildings and facilities is providing an opportunity to ensure the way we work is conducive to innovative and creative thinking, both now and for the future.

In May 2017, Plant & Food Research opened its new Nelson Research Centre.Developed as part of Port Nelson Limited’s plan to create a seafood precinct on the Akersten Street peninsula, the new purpose-built facility houses laboratory and office space for 50 staff. The new building sits alongside the Maitai finfish facility, bringing the majority of Plant & Food Research’s seafood research together at one site.

The Nelson Research Centre now has extensive laboratory facilities, 325,000 litres of saltwater fish-rearing tanks, as well as workshops, offices, collaboration and meeting spaces over a total building area of approximately 3,500m2. The facilities have been designed to provide options for incorporating new or emerging technologies into the research programme, such as fish genomics and analytical chemistry techniques.


A HEALTHY BUSINESS

The Mānuka room on our Mt Albert site is one of eight meeting spaces recently optimised for the average meeting size of three or four people, with large touch screens and quick access to users’ personal files. In line with user feedback, the focus of the technology is the ability to access, share and work collaboratively on electronic files, rather than, as in other meeting rooms, the visibility of online members of video conversations.

Two mobile wifi hot-spots have been deployed for use in our orchards, enabling more efficient data capture in the field. The new wifi hot-spots allow scientists to access and collect data with a direct link to databases held on the Plant & Food Research server, improving efficiency of data capture and supporting real-time analysis.

REDEVELOPING THE MT ALBERT RESEARCH CENTRE

MOBILE WIFI SUPPORTS REAL-TIME ANALYSIS OF ORCHARD DATA

The Ways of Working change programme is designed to ensure that people participate in the development and operation of their new work environments, with effective communication promoted through a network of representatives and through regular staff forums and workshops.

So far, 110 relocating people have participated in workshops to help them to transition into new ways of working and shape the culture in their new work areas.

We are now about 75% of the way through the redevelopment of the seven-storey Hamilton Building at the Mt Albert Research Centre.

Approximately 95 of our Auckland-based staff are now housed in new, purpose-built facilities on the top three floors of the building. Each 840m2 floor houses up to 36 staff in shared office space, with adjoining meeting spaces and focus rooms. Around two thirds of each floor is dedicated to laboratory space, with specific areas allocated to specialised science activities and relevant equipment.

The second stage of the project is on-track for completion in February 2018, at which time around 75% of Auckland-based staff will be situated in the redeveloped Hamilton building.

In addition to the Hamilton building redevelopment, new sensory facilities have been built to support our consumer research activities, with additional shared office spaces across the site. By mid-2018, around 95% of Mt Albert staff will be housed in new spaces within the redeveloped Hamilton and Padfield Buildings, with all staff benefitting from access to new collaboration spaces created across the site.


OUR SCIENCE

We develop new potato cultivars which are then micro-propagated by our partners to provide seed tubers for growers.

OUR GOVERNANCE


CORPORATE GOVERNANCE

STATEMENT OF CORE PURPOSE

The Statement of Core Purpose (SCP) outlines the clear, explicit and enduring strategic role for Plant & Food Research as determined by the New Zealand Government. The SCP outlines the Institute’s roles and responsibilities and how these will benefit New Zealand, and is used by the Crown to evaluate performance on a four-year rolling basis.

Plant & Food Research’s SCP can be found online at plantandfood.co.nz/file/pfr-scp.

STATEMENT OF CORPORATE INTENT

The Statement of Corporate Intent (SCI) outlines the Institute’s five-year strategy, including the nature and scope of activities and performance targets. The SCI includes plans to contribute to the outcomes described in the SCP and outlines key performance indicators to support their delivery.

Plant & Food Research’s SCI 2016/17 to 2020/21 can be found online at plantandfood.co.nz/file/sci-2016-17.pdf.

LEGAL OBLIGATIONS

Plant & Food Research is subject to (amongst others):

→ Crown Research Institutes Act 1992

→ Commerce Act 1986

→ Crown Entities Act 2003

→ Crown Entities Amendment Act 2013

→ Health & Safety in Employment Act 1992

→ Official Information Act 1982

→ Public Audit Act 2001

→ State Sector and Public Finance Reform Act 2012.

The Plant & Food Research Board, appointed by the Minister of Science & Innovation, sets the Institute’s strategic direction and delegates responsibility for the management of the Institute to the Chief Executive.

OUR GOVERNANCE

BOARD OF DIRECTORS

The Board of Directors, appointed by the Minister of Science & Innovation according to the Crown Research Institutes Act, sets the Institute’s strategic direction and delegates responsibility for the management of the Institute to the Chief Executive.

The Board acts under a Charter which formalises and sets out the manner in which the Board’s powers and responsibilities will be exercised and discharged, adopting principles of good corporate governance and practices that accord with best practice and the application of laws in the jurisdictions in which the company operates. In line with best practice, the Board completes an annual Board performance evaluation.

The Board regularly reviews key policies across the Institute. “Deep-dive” reviews are also periodically undertaken; in the past year, these have included:

→ Health & safety

→ Risk management

→ Treasury policy

→ Delegation of authority.

For the 2016/17 year

Number of meetings held: 8 Meetings held at: Mt Albert, Hawke’s Bay and Te Puke.

Michael Ahie, Chairman (8) Appointed: 1 July 2010

Greg Gent, Deputy Chair (8) Appointed: 1 July 2013

Andrew von Dadelzsen (8) Appointed: 1 July 2014

Colin Dawson (8) Appointed 1 July 2015

Professor Juliet Gerrard (8) Appointed: 1 July 2013

Stana Pezic (8) Appointed: 1 July 2011 Resigned: 30 June 2017

Mark Stuart (8) Appointed: 1 July 2010

(number in brackets indicates number of meetings attended during the 2016/17 year)

Profiles of the current Board of Directors can be found on page 70 or on the plantandfood.co.nz website. Remuneration details for the Directors can be found on page 83.

Schedule of major annual activities

→ August — Annual Report

→ October — Insurance Renewal

→ November — Science Advisory Panel

→ December — Annual General Meeting

→ December — Health & Safety Review

→ February — Investment Portfolio Review

→ March/October — Strategy Review

→ April — SCI and Business Plan

→ June — Annual review of risk and company risk management framework.

Committees

There are currently three standing Committees operating under the direction of the Board Chair:

Audit & Risk Management CommitteeStana Pezic (Chair), Greg Gent, Mark Stuart Number of meetings/ teleconferences in 2016/17: 4

The primary objective of the Audit & Risk Management Committee is to act as the main conduit with the company’s auditors, to serve as an independent and objective party in reviewing financial


information, auditing, accounting, compliance and financial reporting strategies and processes.

In the 2016/17 year, the Committee reviewed and approved the Institute’s:

→ Internal Audit Programme

→ External Audit Programme

→ Treasury policy

→ Insurance policy

→ Fraud policy

→ Health and Safety Culture Audit.

Appointments & Remuneration CommitteeMark Stuart (Chair), Michael Ahie, Juliet Gerrard Number of meetings in 2016/17: 2

The purpose of the Appointments & Remuneration Committee is to oversee the appointment, performance review and remuneration of the Chief Executive Officer and senior executives who report directly to the CEO.

Mt Albert Redevelopment Project CommitteeJuliet Gerrard (Chair), Greg Gent, Stana Pezic, Ross Brown (Advisor) Number of meetings/teleconferences in 2016/17: 4

The Mt Albert Redevelopment Project Committee was established in 2014 to ensure effective Board visibility and oversight of the three-year redevelopment project for the Mt Albert Research Centre.


The Board also receives advice from the Institute’s external Science Advisory Panel.

The purpose of the Panel is to provide objective strategic advice to the Board to promote its decisions on research

strategies, future science activities and development associated with achieving Plant & Food Research’s Core Purpose.

Members of the Science Advisory Panel are:

→ Professor Marston Conder (Chair, University of Auckland)

→ Dr Ernst van den Ende (Wageningen University & Research Centre, The Netherlands).

→ Professor Cathie Martin (John Innes Centre, UK)

→ Professor Alastair Robertson (Australia).

Profiles of the Science Advisory Panel members can be found on page 71 or on the plantandfood.co.nz website.

MANAGING RISK EFFECTIVELY

Plant & Food Research has an established framework for managing risk in an effective, efficient and consistent manner, to inform strategic and business planning processes, optimise allocation of resources and allow Plant & Food Research to effectively recognise, prioritise and respond to risks. The Risk Management Framework adopts processes consistent with those established in the ISO 31000:2009 Standard: Risk Management — Principles & Guidelines.

Plant & Food Research has a Business Continuity Plan (BCP) which acts as a framework for organisational preparedness, emergency response and recovery after disruption by a significant natural or man-made incident. The BCP focuses on the response and recovery of critical assets and operations to mitigate the potential impact of an incident to the Institute’s ability to deliver on its business and strategic plan and to

OUR GOVERNANCE

protect Institute staff and the wider community. The BCP also includes a framework for site-specific Emergency Response Plans (ERPs).

CODE OF CONDUCT & ETHICS

Plant & Food Research’s reputation is determined to a large degree by perceptions of the conduct and performance of its staff. The Code of Conduct & Ethics is intended to inform and guide the Institute’s staff on the standards of conduct, decision-making and ethical behaviour that are important at Plant & Food Research.

The Code of Conduct & Ethics includes guidelines on:

→ Acting with honesty and integrity

→ Consistently demonstrating professionalism

→ Respecting and acting within the law

→ Maintaining confidentiality

→ Avoiding conflicts of interest

→ Being socially responsible.

Plant & Food Research operates its scientific research activities in accordance with national legislation, including ethics approvals for all human and animal studies (coordinated by the Institute’s Biosafety Advisory Committee).


BOARD OF DIRECTORS

FOR THE 2016/17 YEAR

Number of meetings: 8

Meetings held at: Mt Albert, Hawke’s Bay, Te Puke

Michael Ahie (Chairman)

Taranaki Nga Ruahine Ngati Ruanui

Michael Ahie is a business owner and company director based in Wellington. He is Chancellor of Massey University, a director of FMG and Chair of the board of ComplyWith, Spring Sheep Milk Co., the Plant Market Access Council and the Food Safety Assurance and Advisory Council. He is a member of Inland Revenue’s Risk & Assurance Advisory Council and a founding partner of leadership and business coaching group, AltusQ. Mr Ahie completed the Executive Development Programme at The Wharton School, University of Pennsylvania and received his Honours degree from Massey University. His past roles include senior roles with Toyota New Zealand Ltd, the New Zealand Dairy Board and Wrightson Ltd.

Andrew von Dadelszen

Andrew von Dadelszen has held diverse governance and leadership roles, including central and local government and corporate governance, finance and investment advice, large-scale farming, service industries and the not-for-profit sector. Andrew is qualified with an MBA from Henley Management College and Brunel University, London, and brings to Plant & Food Research a clear understanding of the role of governance and the complexities of grappling with strategic and public policy issues. Andrew is a Bay of Plenty Regional Councillor, and an Independent Hearings Commissioner with a Chairs Endorsement. He has previously been a member of the Board of the Environmental Protection Authority — a Crown Agency.

Colin Dawson

Colin Dawson was formerly Chief Executive of Otago Innovation Ltd, the commercialisation arm of Otago University. He has held directorships of a number of biotechnology and medical companies including BLIS Technologies and Pacific Edge Ltd, and is the owner/director of Dawson Cherries. He is director of MARS Bio Imaging Ltd and executive Chair of TIRO Life Sciences Ltd. (Appointed 1 July 2015)

Greg Gent (Deputy Chair)

Greg Gent, of Ruawai, is a senior commercial director with dairy farming interests in Northland. He has strong governance expertise having spent a decade on the Fonterra Board, and holding other directorships in the dairy, insurance and financial services.

Professor Juliet Gerrard

Professor Juliet Gerrard is Professor in the School of Biological Sciences and School of Chemical Sciences at The University of Auckland. Juliet has more than 125 publications, as well as three books. She is an active member of three of New Zealand’s Centres of Research Excellence, as a Principal Investigator in both the MacDiarmid and Riddet Institutes and an Associate Investigator in the Maurice Wilkins Centre. Juliet was made a Fellow of the Royal Society of New Zealand in 2012; she is also Chair of the RSNZ Marsden Fund Council.

Stana Pezic

Stana Pezic has held roles as Chief Financial Officer of Stevensons Group and Metrowater, the Auckland City Council’s water retailer and infrastructure manager. Ms Pezic was previously General Manager at Whitcoulls Group Ltd, and has extensive experience in financial management, general management, strategy development and process change. Her background spans infrastructure, manufacturing and retail, following various roles with Carter Holt Harvey, Whitcoulls Group, The Warehouse and Esso Australia. (Resigned 30 June 2017)

Mark Stuart

Mark Stuart has broad general management and governance expertise combining entrepreneurial and public sector experience and a strong focus on innovation. Mr Stuart is a Partner in Movac, a leading Venture Capital firm, and has a background in building technology-based businesses. Mr Stuart has extensive governance experience and is currently also a director of Author-it Holdings, Industrial Tube Manufacturing Company and Vend. He has previously served as a Council member on the New Zealand Angel Association and as a member of the NZBio Advisory Council and is currently on the Council of the New Zealand Venture Capital Association.

OUR GOVERNANCE



Our Science Advisory Panel is an important part of ensuring our science continues to have a focus on high quality, and is open to new international developments and ideas. The panel provides our Board with their insights on Plant & Food Research’s science quality, strategy, and involvement in and uptake of new international developments.

Professor Marston Conder (Chairman)

MSocSc (Waikato) MSc DPhil DSc (Oxford) FNZMS FRSNZ FTICA Department of Mathematics, University of Auckland, New Zealand

Professor Marston Conder is currently a Professor of Mathematics at the University of Auckland. He is one of New Zealand’s most eminent mathematicians and scientists, recognised, for example, through Fellowship of the Royal Society of New Zealand, Marsden awards, a James Cook Fellowship, and a DSc from Oxford University. He has played a significant role in University and Government science policy, serving, among many other positions, as Deputy Vice Chancellor Research for the University of Auckland, on the Marsden Council, as President of the New Zealand Royal Society Academy, and chairing the New Zealand Committee to establish the Performance Based Research Fund (PBRF) for University funding.Professor Conder brings to the panel particular expertise in governance, in evaluation and assessing science and science quality, and a wide understanding of the New Zealand science scene, Government policy, and funding and policy systems and processes.

Dr Ernst van den Ende

PhD Managing Director, Plant Sciences Group (PSG), Wageningen University, The Netherlands

Dr Ernst van den Ende has an extensive international background in agricultural science, particularly in management of urban green areas, plant diseases, plant pathogenic fungi and plant and crop protection. He has responsibility for the Plant Sciences Group at Wageningen, which conducts plant-related research and teaching programmes from the molecular through to the population level. Professor van den Ende has particular experience in the Wageningen University/PRI structure, which provides a relevant model for University/Research Institute collaboration and interaction. This is seen in the cluster of the Plant Sciences Group (PSG) which embodies applied research (Applied Plant Research), strategic research (Plant Research International), fundamental research and education (Wageningen University).Dr van den Ende brings to the panel particular understanding of research collaboration and development of interacting research structures. He also provides an important link with European organisations of interest to Plant & Food Research and an international perspective on sustainable plant production.

Professor Cathie Martin

PhD Group Leader, Department of Cell and Developmental Biology, John Innes Centre, UK

Professor Cathie Martin is an international leader in plant science, focusing on cellular specialisation and differentiation, particularly in relation to gene function. She has an extensive background in University and Research Institute research processes and programmes. Professor Martin, in addition to her position at the John Innes Centre, has a background in University visiting professorships and University relations. As former Editor-in-Chief of the world’s leading plant science journal, Plant Cell, she has particular experience in identifying current and future international trends in plant science, and in evaluating science quality. Currently she is an Associate Editor for Plant Physiology. Her own research interests in cellular and metabolic regulation and functionality, particularly in the areas of nutritional properties of plants, which are of particular importance to Plant & Food Research's research interests.Professor Martin brings to the panel particular experience in leading international plant science, science evaluation, and an in-depth understanding of current and future trends and developments in both research technologies and science disciplines. She also strengthens Plant & Food Research's links with UK and European research organisations of interest.

Professor Alastair Robertson

PhD FFSC CChem FIFST Group Executive Food, Health & Life Science Industries, CSIRO, Australia

Professor Alastair Robertson is a leading international expert in food science. His career has involved research positions in both industry (in the UK) and in research institutes. These positions have included Director of the UK’s Institute of Food Research (IFR), CEO of Food Science Australia, a joint venture between CSIRO and the Victorian Government, and CSIRO Executive Director (and subsequently Deputy Chief Executive), Science Strategy and Investment. He led the consolidation of the Australian National Research Flagships and oversaw the integration of the CSIRO Science Investment Process and Performance Management Framework as strong governance mechanisms to underpin CSIRO’s delivery of impact from mission directed research. Professor Robertson currently holds an Honorary Professorship at the University of East Anglia (UK) and is a Research Professor at the University of Tasmania.Professor Robertson brings to the panel wide international expertise in food science, and in developing and managing research structures based on science excellence and delivery. He also helps to consolidate Plant & Food Research's developing interaction with key Australian research centres and science initiatives.

OUR GOVERNANCE


SENIOR MANAGEMENT TEAM

OUR GOVERNANCE

Our Senior Management Team oversees all aspects of Plant & Food Research and is accountable to the Board of Directors via CEO, Peter Landon-Lane. Collectively the team ensure the delivery of all research activities, finance and legal requirements, assets and services, human resources, commercial functions and science quality.

Peter Landon-Lane

Chief Executive Officer (CEO)

Peter Landon-Lane took up the role of CEO at Plant & Food Research in September 2008. Prior to that he held a number of senior positions within Fonterra and the New Zealand Dairy Board, including heading businesses in Taiwan, Japan and Europe. Peter started his career at the former Department of Trade and Industry, which included serving as a trade commissioner in China and the Philippines. He is a board member of Science New Zealand, the NZ Committee of the Pacific Economic Cooperation Council, Seafood Innovations Ltd, Prevar Limited, a member of the New Zealand China Council’s advisory board, Callaghan Innovation’s Stakeholder Advisory Group, and several Plant & Food Research joint ventures and research partnerships. Peter has degrees in science and economics and is a member of the New Zealand Institute of Directors.

Dr Bruce Campbell

Chief Operating Officer (COO)

As Chief Operating Officer, Dr Bruce Campbell is responsible for science and business operations within Plant & Food Research and for leading company strategy, operational excellence and productivity, business growth, capital investments, regulatory compliance and enhancing relationships with Māori. Bruce is a member of The Royal Society of New Zealand, the Institute of Directors, and is a director on several boards, including Forage Innovations Limited, Vegetable Research & Innovation Board, and the BioProtection Centre of Research Excellence. Bruce is a Fellow of the New Zealand Institute of Agricultural and Horticultural Science. He was awarded the Royal Society of New Zealand Thomson Medal in 2016 for outstanding leadership of agricultural and horticultural science, and the Horticulture New Zealand Industry Service Award in 2017 for ensuring research promotes industry growth and supports New Zealand’s premium position in international markets.

Michael James

Chief Financial Officer (CFO)

Michael James, our Chief Financial Officer, provides leadership in strategy development, organisational performance, risk management and investment. He has extensive senior management experience in innovative companies with scale and global reach and is a Chartered Accountant of Australia and New Zealand and a Chartered Member of the Institute of Directors. Michael's past positions include CFO at Navman, a global provider of GPS-based navigation products.

Craig Jensen

General Manager Human Resources

Craig Jensen, as General Manager Human Resources, is responsible for Plant & Food Research’s people-related activities including organisational and workforce development, recruitment, employment relations, remuneration and health & safety. Craig has a strong interest in the relationship between employee engagement, leadership and organisational culture and performance. He has extensive experience in human resource management within the New Zealand science sector, and holds a Bachelor of Arts and Postgraduate Diploma in Personnel and Employment Relations from the University of Auckland.

David Hughes

Group General Manager Commercial

David Hughes, as Group General Manager Commercial, oversees the commercial groups within Plant & Food Research, including business development — both domestic and international, marketing and the commercialisation of intellectual property including plant varieties and cultivars. David joined Plant & Food Research in July 2009 and has a successful track record of business development and innovation within the food sector, including several high-profile roles within the dairy industry in New Zealand, Australia, the USA, Japan and Bahrain. He is a member of the New Zealand Institute of Directors, a Director of KiwiNet and BioLumic Ltd, and Chair of the Biopolymer Network Limited.

Professor Richard Newcomb

Chief Scientist

Professor Richard Newcomb is the Chief Scientist overseeing all aspects of science quality, science strategy and science capability development across the institute. Richard is Professor of Evolutionary Biology at the University of Auckland and undertakes research on taste and smell and its evolution. He completed his BSc and MSc in Zoology at the University of Auckland, followed by a PhD in Biochemistry and Molecular Biology from The Australian National University based at the CSIRO in Canberra. He is an associate editor for the Journal of Chemical Ecology and PLoS ONE and on the editorial boards of the journals Insect Biochemistry and Molecular Biology, and Chemical Senses.


ORGANISATIONAL CHART

Chief Scientist

PROFESSOR RICHARD NEWCOMB

Impact Evaluation

Business Development

Intellectual Property

Design & Photography

Group General Manager Commercial

DAVID HUGHES

Plant Varieties

Strategic Marketing

Communications

Organisational Development

General Manager Human Resources

CRAIG JENSEN

Human Resources

Health & Safety

Payroll

SCIENCE DELIVERY→ New Cultivar

Innovation→ BioProtection→ Sustainable

Production→ Food Innovation→ Seafood Technologies

Chief Operating Officer

DR BRUCE CAMPBELL

Māori Engagement

Biosafety & Compliance

Customers & Business

Science Publishing

Financial Planning & Analysis

Information & Knowledge Services

Chief Financial OfficerMICHAEL JAMES

Finance

Legal

Assets & Services

Investment

Chief Executive OfficerPETER LANDON-LANE

BOARD OF DIRECTORS

OUR GOVERNANCE


STRATEGIC

FUNDING

OUR GOVERNANCE

Strategic Funding is provided by Government to Plant & Food Research to support its activities towards achieving its Core Purpose. The following pages provide a breakdown of how this investment is spread across our five strategic focus areas in science, each with targets and evidence for how we are achieving them.

Our strategy for allocating our $43.1 million of Strategic Funding involves a portfolio approach that gives consideration to the collective outputs and impacts that result from a suite of investment mechanisms, including Strategic, Contestable and Commercial revenue.

Projects that introduce and develop new science, establish new science capabilities, and develop or maintain essential science capability for New Zealand.

$10.1 million

$43.1 million

FUTURE SCIENCE +

OUTCOME AREA STRATEGIC FOCUS AREA STRATEGIC FUNDING

INCREASE VALUE $16.1 millionIncrease the value of the horticultural, arable, seafood, and food and beverage sectors to the New Zealand economy through the development of high-value products and processes that meet current and future global market needs.

→ Better cultivars faster™

→ Premium foods and beverages

→ Sustainable premium seafood and marine products

PROTECT & ENHANCE $8.5 millionProtect and enhance market access in New Zealand’s horticultural and arable sectors.

→ Residue-free pest and disease control

SUSTAIN GROWTH $8.4 millionSustain growth in these industry sectors, driving ongoing efficiency gains with the development of environmentally resilient production systems.

→ Sustainable and profitable production systems


→ Following an accurate assembly of the kiwifruit genome’s entire DNA sequence, analysis has been completed to find, identify, and name the 10,000s of genes that determine how kiwifruit grows, behaves, produces, and reproduces, setting a new standard for how this formidable task is carried out for plant genomes. The work was undertaken with the University of Auckland, Wuhan Botanical Gardens (China), and the University of Udine (Italy).

Target: a growing portfolio of evidence for genomic selection technologies being used to support breeding in New Zealand plant-based food crops

→ To inform scab resistance work in the pipfruit breeding programme, the effector complements of different strains of Venturia have been compared. This research has recently been published in BMC Genomics. Genes encoding over 600 candidate effectors were identified, most of which are novel to Venturia. Candidates for effectors are currently being functionally characterised so that their mutability and hence contribution to durable resistance can be estimated to inform the apple breeding strategy.

→ Results of whole genome selection research on pea demonstrated that phenotype can be predicted from genetic data with an accuracy of up to 55% for aschochyta resistance (an intractable trait) and 62% for simpler traits, such as days to flowering and thousand seed weight. The breeding value of parental lines for ascochyta resistance has been estimated by combining genotypic and phenotypic trait data, and these will inform the pea crossing strategy this coming season.

→ Sequence data for 40 diploid Actinidia chinensis var. chinensis (gold and red) kiwifruit genomes have been obtained, considerably expanding genomic resources at Plant & Food Research. Amongst these are 15 genomes from the germplasm collection, including important ancestors that contributed to the elite gold and red breeding programmes.

BETTER CULTIVARS

FASTER™

$8.3 millionSubcontractors: Lincoln University, Datix, Mindful, Agri Information Partners and other database software developers and providers, Macrogen and other gene sequencing providersSector & industry alignment: Berryfruit, Cropping systems, Kiwifruit, Onion, Wine, Vegetable, Ornamental, Pipfruit, Potato

Target: an evolving platform of breeding tools delivering cultivars, against industry-agreed development targets and concepts

→ Cryotherapy techniques have been used to remove Rubus bushy dwarf virus (RBDV) from raspberries — a particularly difficult virus to remove. A highly sensitive Taqman® qPCR method was developed to detect the virus at dilutions as low as 210. Chemotherapy combined with thermotherapy and cryotherapy gave 100% regenerated virus-free plants, creating a technique to support the raspberry breeding programme, cultivar release and conservation of high-health germplasm.

→ This year several advanced awnless barley lines yielded almost as well as ‘Tavern’ (conventional, high-yielding) and performed significantly better than ‘Monty’, the first commercially released awnless barley, particularly for disease resistance. This is a significant step forward in positioning awnless barley cultivars as a mainstay in the New Zealand forage industry.

→ Combining the desirable fruit quality traits of early-ripening highbush blueberries (Vaccinium corymbosum — 4x) with the vigour and yield associated with rabbiteye (V. virgatum — 6x) types has been a target of the blueberry breeding programme. The hybrids generated are vigorous, often have blackish fruit that lack bloom, and segregate for gritty texture and good flavour. Backcrosses to 4x and 6x types tend to have less vigour, but have resulted in non-gritty types and blue colour (bloom) has been restored. This new genetic diversity will feed directly into the breeding programme.

→ Juice made from the New Zealand blackcurrant cultivar ‘Blackadder’ won the supreme award for the best juice/juice-based beverage (small manufacturer) for Barkers of Geraldine. This is the first time the industry has marketed a “cultivar-specific product”, recognising consumer interest in no-refined-sugar products and functional fruit juices that deliver health and wellness benefits plus fit a general trend towards clean labels, less sugar, and more natural ingredients.

→ Data management systems for new kiwifruit cultivar development have been a major focus in the last three years. The pursuit of a world-class data management system includes the development of a centralised, Stage 2, field data collection system and direct data capture from the kiwifruit grader into the database to provide stakeholders with timely, high quality information.

→ A systematic DNA fingerprinting approach was applied to potato breeding material and the germplasm collection to provide baseline information on the unique characteristics of the material. In combination with pedigree information, these data have potential to identify misnamed lines, an important quality control step, particularly when cultivar maintenance and propagation involve high volumes of relatively featureless tissue-cultured plantlets.

OUR GOVERNANCE

INCREASE VALUE


OUR GOVERNANCE

SUSTAINABLE, PREMIUM

SEAFOOD AND MARINE

PRODUCTS

$2.4 millionSubcontractor: University of Otago Sector & industry alignment: Seafood

Target: progress towards new harvest and postharvest technologies to support higher-value seafood products

→ The need for a low-cost, robust method to identify snapper individually has led to the development of a non-invasive, image-based method that relies on biometric identification of the snapper “fingerprint”: its spot pattern. Refinement of the method is underway for both health and growth monitoring in hatchery and aquaculture environments as well as in wild capture fisheries.

Target: progress towards the development of extraction technologies with maximum value capture and minimised wastage to produce novel high-value products

→ Process complexity and cost have so far prevented widespread use of immobilised enzymes in New Zealand, yet the technology can increase and manipulate omega 3 content in fish oils, significantly increasing their value. A lipase resin is under development for production by a New Zealand manufacturer. It is highly efficient in reactions and can be re-used more times than the competing immobilised lipases. Further studies are in progress to provide new product opportunities for omega 3 supplement manufacturers.

Research suggests that emoji should not be regarded as direct substitutes for existing word-based emotion surveys, but as an alternative method for emotion measurement.

→ Food neophobia is the term used to describe consumers’ fear of new foods. Knowledge of this phobia has been expanded using data collected from 1167 adults from New Zealand over a 45-month period. Results suggest that food neophobia is an important barrier to dietary change and addressing diet-related health problems.

→ Potato cultivars are yet to be marketed on the basis of flavour. However, a 120-person consumer trial has shown that potato cultivars can be differentiated based on flavour. The trial has enabled a map of desirable potato flavours to be produced.

Target: progress towards the development of new tools and technologies developed to deliver premium food products effectively to export markets

→ The finding that a common cell wall motif may be responsible for lowered in vitro Glycaemic Index (GI) measurements in three Plant & Food Research potato cultivars when the whole potato is cooked implies a potentially novel route for the production of a low GI potato. A human intervention study is underway to confirm that the slow starch digestibility trait translates into low GI.

→ Capsicums are a growing export opportunity for New Zealand. To support industry ambitions, precooling regimes for capsicums and logged shipping container conditions were investigated in an export consignment sent to Japan.

SCIENCE COLLECTIONS

AND INFRASTRUCTURE

$0.4 million Target: national collections of fruit, arable and vegetable crop germplasm maintained and made accessible to collaborators

→ Fruit, arable and vegetable collections have been maintained, made accessible and germplasm incorporated into breeding programmes to meet industry impact targets and generate new knowledge.

PREMIUM FOODS AND

BEVERAGES

$5.0 millionSubcontractors: Lincoln University and the University of AucklandSector & industry alignment: Cropping systems, Consumer & Health, Onion, Potato, Vegetable, Wine

Target: steps towards the development of functional foods/ingredients and biomaterials, utilising knowledge of raw materials, nutrition, health and wellness, developed with local and multinational companies

→ Weaning foods for babies and infants offer a strong opportunity for New Zealand nutraceutical companies. Plant & Food Research has established a new weaning foods research platform. Methodology has been established and the impacts of various foods on the diversity and complexity of the microbiome have been studied.

→ The New Zealand Food Composition Database (FCdB) is a valuable resource for public health and food industry professionals, but can be difficult to interrogate. The first web-based tool for accessing food composition data from the FCdB has been designed using human-centred design principles. It will make raw compositional data more useful to New Zealanders by illustrating permissible nutrient content claims for different classes of foods and ingredients.

Target: in-market consumer insights, alongside in-depth knowledge of product attributes to guide development/placement of premium New Zealand foods for export markets

→ Emoji are small digital images or icons used to express an idea or emotion in electronic communication. Plant & Food Research is assessing how they are being used by consumers in food-related communications.


RESIDUE-FREE PEST AND

DISEASE CONTROL

$8.5 millionSubcontractors: Lincoln University and Landcare ResearchSector & industry alignment: Avocado, Biosecurity, Cropping systems, Kiwifruit, Onion, Vegetable, Pipfruit, Summerfruit, Potato, Wine

Target: progress towards the development of new tools and systems for biologically based pest and disease control

→ Methods to quantify seed-borne Ramularia collo-cygni (ramularia leaf spot of barley) using real-time or qPCR have been optimised. The qPCR and observed severity of the disease in the field did not correlate, suggesting that both seed-borne and airborne spores contribute to disease severity. Quantifying R. collo-cygni on seed before sowing can be an important disease management tool.

→ The effects of different soil types, cultivation histories and disease inoculation on onion growth, development and quality have been evaluated. Information on emergence, growth, storability, skin quality and the biochemistry of the bulbs has also been assembled to develop a comprehensive understanding of how the plant reacts to soil, disease and environmental factors.

→ Fifteen processed pea breeding lines were evaluated in a field disease nursery for their resistance against Fusarium avenaceum and F. solani. The severity of root rot symptoms and

OUR GOVERNANCE

their impacts on yield components were measured. The potential F. avenaceum and F. solani-resistant lines will be incorporated into Plant & Food Research’s processed pea breeding programme for root rot disease-resistant cultivars.

→ The efficacy and survival of a generalist predator (Amblydromalus limonicus) of key covered crop pests were evaluated and preliminary results were conveyed at an industry stakeholders’ workshop, providing them with insights into the potential of this predator for pest control.

→ A sex pheromone-based “lure and kill” system for apple leafcurling midge (ALCM) was tested in large scale, replicated field trials in Hawke’s Bay orchards. Surveys for Mastrus ridens, a newly released natural enemy for biological control of codling moth, confirmed its establishment and spread within some Hawke’s Bay and Nelson orchards.

→ Research on European canker in apples has re-assessed and developed new strategies for disease management. New understanding of the disease cycle, pathogen biology and infection processes has improved grower knowledge of the pathogen, allowing them to implement more effective control strategies and reduce disease incidence by up to 75% over the last four years.

→ The identity and prevalence of Pseudomonas syringae strains associated with symptomatic cherry tissue in commercial orchards in Central Otago were determined. Multilocus sequence typing established the identity and relatedness of bacterial strains.

→ A Next Generation Sequencing (NGS) tool has been developed and used to determine viruses in New Zealand grapevines. The tool has been trialled, resulting in new-to-science viruses being identified and demonstrating the tool's potential for detecting a new incursion. An article describing a tool to enrich samples for virus sequences prior to NGS has been published.

PROTECT & ENHANCE

→ The efficacy of two Emix formulations developed by Plant & Food Research and a commercial elicitor Actigard™ against powdery mildew was confirmed on potted Sauvignon blanc grapes (vines in situ and on detached leaves in a controlled environment to favour disease development). Principal component analysis of the 234 metabolites profiled in leaf material indicated differences in about 32 compounds across the treatments, confirming the ability of the elicitors to trigger plant biochemical pathways involved in disease defence mechanisms.

→ New Zealand’s first studies into the seasonal release of grapevine powdery mildew Erysiphe necator ascospores in Hawke’s Bay were conducted using a novel microscope slide trapping and monitoring method. The ascospore monitoring technique has enabled further research on the contribution of E. necator ascospores to early-season infections and the development of an ascospore release model. Results have been presented at industry forums.

→ A detached grape leaf assay was used to test E. necator isolates collected from Hawke’s Bay and Marlborough vineyards for sensitivity to three groups of fungicides. This confirmed that some members of the demethylation inhibitor (DMI) group have lost effectiveness for controlling powdery mildew.

Target: steps towards new cultivars with targeted pest and disease resistance

→ Using molecular markers, the resistance gene Yr5 was identified in the stripe rust-resistant wheat cultivar ‘Monad’. A second quantitative trait locus (QTL) was identified in ‘Monad’ on chromosome 7AL, which seems to improve the efficacy of Yr5. This additional QTL (and others) may be crucial to the efficacy and durability of stripe rust resistance in ‘Monad’ and may be absent from more susceptible cultivars. This knowledge will help wheat breeders track both Yr5 and the QTL on 7AL and maintain good resistance to stripe rust.


→ A novel quantitative resistance gene, Rph26, introgressed from the wild species Hordeum bulbosum into cultivated barley (H. vulgare) has been genetically mapped to chromosome 1HL. This gene provides increased resistance against barley leaf rust (Puccinia hordei) during plant development. The closely linked markers identified will enable Rph26 to be combined with other resistance genes to provide high, potentially durable resistance to barley leaf rust.

Target: progress towards the development of new “safe” disinfestation technologies

→ Projects targeting in-line, high speed detection technology for codling moth in apple packhouse grading systems have assessed first and third instar codling moth entry holes. New methodologies to rear and infest fruit with ALCM are under development to enable large-scale disinfestation research to commence.

Target: improved biosecurity risk assessments, detection technologies, optimised surveillance approaches and new tools for response and eradication

→ In collaboration with Plant Health Australia and Australian researchers and industries, Australian distribution

data were used to estimate the potential for Diuraphis noxia (Russian wheat aphid) to establish in New Zealand, and where it would probably establish using CLIMEX modelling. The modelling suggests that the aphid could establish in the main New Zealand wheat-growing regions (i.e. Canterbury). This information has been shared with industry.

→ Experiments to evaluate the efficacy of sterile insect technique for controlling codling moth in Central Hawke’s Bay orchards expanded in 2016/17 following the development of a UAV aircraft with a GPS-controlled, sterile moth delivery system. After two seasons of sterile insect releases, moth populations decreased by ~90%. Use of “marked” sterile insects has provided important insights into codling moth behaviour and approaches to its risk management in export crops.

→ Spotted wing drosophila (SWD) is one of the top 10 most unwanted pests of viticulture, classified by MPI as an unwanted organism. To understand the establishment risk, we reviewed a published global potential spread model based on CLIMEX and global SWD presence/absence data. A population growth model, based solely on temperature and natural

OUR GOVERNANCE

mortality, indicated that if SWD were to become established in New Zealand, populations could increase exponentially, highlighting the need to prevent or rapidly eradicate any new incursions in order to prevent establishment and widespread movement.

→ As part of our trans-Tasman collaboration with biosecurity agencies in Australia, a Plant & Food Research response team provided advice and support when tomato potato psyllid (TPP, Bactericera cockerelli) was first detected in Perth, WA. Experts at Plant & Food Research provided answers to TPP and Candidatus Liberibacter solanacearum-related questions from Australian researchers, Government and industry. Practical information based on the New Zealand experience with TPP was made available to the incursion response team at the Department of Agriculture and Fisheries.

→ A high-pressure washing machine for taro was tested along with hot water treatments for its ability to remove or kill microscopic organisms. Further testing will extend to semi-commercial runs in packhouses to better determine taro shelf life and quality post-treatment.


been identified, enabling advice to growers about unsuitable cultivars for marketing through these channels, saving considerable waste and potential loss of market reputation for New Zealand apples.

→ Artificial spur extinction (ASE) is an efficient and readily applied means of managing apple fruit number and, therefore, size and harvest quality parameters. ASE can be quickly taught to orchard staff, is far quicker and more effective than thinning following fruit set, and conserves tree resources in early spring that are therefore diverted to fruit yield.

Target: translation of these insights into practical tools such as decision support systems and sensor technologies to underpin profitable production systems, enhance supply chain performance, improve customer experience, and minimise environmental impact

→ A new model of plant biomass partitioning that links environment and management factors has been developed and is being documented for addition to the new APSIMx release. Phenological modelling using full-season growing temperatures for Sauvignon blanc has been further refined as well as submitted for inclusion in APSIM. Validation of model outputs has proven satisfactory at most Marlborough sites.

→ A new laboratory method for estimating potentially mineralisable nitrogen in soils has been published. Commercial testing laboratories have expressed interest in this method because it is cheaper, quicker and more accurate than the current standard. Downstream farming practices, especially pre-season fertiliser applications, are under discussion with commercial partners to integrate this new information into recommendations for farmers, with anticipated economic and environmental impacts.

→ The Electrical Penetration Graph (EPG) technique has been developed to analyse, quantify and compare

the feeding behaviours of phloem and xylem sap-sucking insects. Assessment of biosecurity decision points and case studies has shown the potential to use EPG to differentiate between hosts, suspect hosts and non-hosts of hemipteran incursions in order to assist in biosecurity response decision making.

→ Scientific expertise in Plant & Food Research and partners in the Better Border Biosecurity research collaboration has helped drive a world-first eradication of the invasive great white butterfly (GWB). The pest, first seen in Nelson in 2010, posed a significant threat to New Zealand’s native and cultivated brassica plant species. It prompted a major eradication effort led by the Department of Conservation, and both AgResearch and Plant & Food Research provided expertise to guide the effort.

FUTURE SCIENCE

$10.1 million Target: innovative, over-the-horizon and high risk research projects and associated capability managed to create value for New Zealand’s sectors to support science quality

→ A portfolio of projects that are consistent with our Statement of Core Purpose has been initiated to deliver value to New Zealand’s sectors through excellent science over time.

OUR GOVERNANCE

SUSTAINABLE

AND PROFITABLE

PRODUCTION SYSTEMS

$8.4 millionSubcontractors: Landcare Research, Lincoln UniversitySector & industry alignment: Avocado, Biosecurity, Cropping systems, Honey & Hive, Kiwifruit, Ornamental, Pipfruit, Potato, Summerfruit, Sustainable Agro-Ecosystems, Vegetable, Wine

Target: progress towards improved understanding of a wide range of arable, vegetable, forage and fruit crop production systems, and the optimisation of fresh product supply

→ Avocado production in temperate climates can be problematic, and can be compounded by extreme variation in fruit set (erratic bearing). Research has demonstrated that the expected male/female opening phases of flowers in tropical regions is severely disrupted in temperate climates. Further, reasonably significant insect pollination activity has been recorded at night, a time not normally associated with insect pollinator activity. This provides an opportunity to develop orchard management techniques to mitigate crop loss in temperate climates through poor flower fertilisation.

→ Some newer international markets for New Zealand apples do not maintain a cold chain through the retail environment. A physiological trait associated with internal browning that occurs in these markets has

SUSTAIN GROWTH

PROTECT & ENHANCE +

ADD VALUE +

SUSTAIN GROWTH


OUR SCIENCE

New orchard production systems allow growers to optimise production and supply of high quality produce. (see page 38)

PLANT & FOOD RESEARCH ANNUAL REPORT 2017 81

FINANCIAL STATEMENTS


Total revenue for the year was $3.9 million better-than-budget and $6.1 million better than last year’s, driven by higher commercial research and royalty revenues. Total operating costs were on budget despite a significant unbudgeted and deliberate investment this year in key science roles. This will support planned future growth and a proactive approach to managing replacement of pending retirements.

We have been able to grow our revenue and profitability above budget expectations over the last three years.

This positive performance track record gives us confidence in our ability to achieve or exceed our five-year business plan targets and to execute our investment plan.

We have made good progress in our current investment programme to replace end-of-life buildings and equipment. The most significant capital spend this year has been at our Auckland campus, which will be nearing completion in the 2018 calendar year, and our Nelson facility which was opened earlier in 2017.

PERFORMANCE TARGET

→ Enhanced profitability and financial performance.


→ Sustaining profitability and investment.

FINANCIAL

PERFORMANCEGROWING REVENUE AND SUSTAINING PROFITABILITY

Plant & Food Research has achieved a better-than-budget financial performance this year. Our Net Profit after Tax (NPAT) of $5.2 million was $2.2 million better-than-budgeted.


DIRECTORS’ REMUNERATIONDuring the year the following remuneration was paid or payable to Directors in accordance with the schedule approved by the Shareholding Ministers:

Group $M Ahie 70,404G Gent 44,748S Pezic 39,564 (ceased 30 June 2017)M Stuart 36,564J Gerrard 36,564A von Dadelszen 34,560C Dawson 34,560

REMUNERATION OF EMPLOYEESThe number of employees and ex-employees whose total remuneration, including benefits and severance payments, on an annualised basis, was in excess of $100,000 in $10,000 bands, is:

Remuneration Number of Remuneration Number ofbands in $000 employees bands in $000 employees100 - 109 46 200 - 209 2110 - 119 38 210 - 219 2120 - 129 36 230 - 239 1130 - 139 22 240 - 249 1140 - 149 16 250 - 259 1150 - 159 8 260 - 269 1160 - 169 8 270 - 279 2170 - 179 2 390 - 399 2180 - 189 4 480 - 489 1190 - 199 3 620 - 629* 1

* Includes the Chief Executive’s remuneration

For and on behalf of the Board of Directors:

Michael Ahie, Chairman24 August 2017

2017 2017 2016Actual Budget Actual$000 $000 $000

Revenue 145,840 141,915 139,748

Profit-before taxation 7,221 4,204 13,415

Less taxation expense 2,039 1,177 2,810

Profit attributable to Owners 5,182 3,027 10,605

PRINCIPAL ACTIVITY OF THE GROUPThe Group’s principal activity is to provide scientific research that benefits New Zealand, within the horticulture, arable, seafood and processed food industries; in accordance with the purpose and principles for the operation of Crown Research Institutes as set out in sections 4 and 5 of the Crown Research Institutes Act 1992.The Company is a private company limited by shares and incorporated in accordance with the Companies Act 1993.

REVIEW OF OPERATIONSA review of the operations accompany this report on page 15.

SHARE DEALINGSThe Directors have not, and are unable to, trade in shares of the Company as all shares of the Company are held by the Shareholding Ministers on behalf of the Crown. Accordingly the Board has received no notices of dealings in relevant interests in shares of the Company.

DIRECTORS’ INSURANCEDirectors’ and Officers’ liability insurance was effected for the Directors and certain employees of the Company. The insurance is in respect of certain specified liabilities, not including criminal liability, incurred by a Director or employee in respect of any act or omission in his or her capacity as a Director or employee of the Company.The Company has indemnified Directors and certain employees of the Company for costs and proceedings and for liabilities incurred by the employee in respect of any act or omission in his or her capacity as an employee of the Company. The indemnity for liabilities incurred does not extend to criminal liability or liability for breach of a fiduciary duty owed to the Company.

AUDITORSKaren Shires, with the assistance of PricewaterhouseCoopers, is the appointed auditor on behalf of the Auditor-General. The Auditor-General is the statutory auditor pursuant to section 14 of the Public Audit Act 2001 and section 21 of the Crown Research Institutes Act 1992.

SIGNIFICANT CHANGESThere were no significant changes to the business of the Company during the year.

RESULTS OF GROUP OPERATIONS

DIRECTORS’ REPORT

THE DIRECTORS ARE PLEASED TO PRESENT THE FINANCIAL STATEMENTS OF THE NEW ZEALAND INSTITUTE FOR PLANT & FOOD RESEARCH LIMITED FOR THE YEAR ENDED 30 JUNE 2017.


The Auditor-General is the auditor of The New Zealand Institute for Plant and Food Research Limited. The Auditor-General has appointed me, Karen Shires, using the staff and resources of PricewaterhouseCoopers, to carry out the audit of the financial statements of the Group consisting of The New Zealand Institute for Plant and Food Research Limited and its subsidiaries, on his behalf.

OPINIONWe have audited the financial statements of the Group on pages 86 to 109, that comprise the balance sheet as at 30 June 2017, the statement of comprehensive income, statement of changes in equity and cash flow statement for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information.

In our opinion, the financial statements of the Group:• present fairly, in all material respects:

- its financial position as at 30 June 2017; and - its financial performance and cash flows for the year then

ended; and• comply with generally accepted accounting practice in New

Zealand in accordance with New Zealand Equivalents to International Financial Reporting Standards.

Our audit was completed on 25 August 2017. This is the date at which our opinion is expressed.

The basis for our opinion is explained below. In addition, we outline the responsibilities of the Board of Directors and our responsibilities relating to the financial statements, we comment on other information, and we explain our independence.

BASIS FOR OUR OPINIONWe carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report.

We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

RESPONSIBILITIES OF THE BOARD OF DIRECTORS FOR THE FINANCIAL STATEMENTSThe Board of Directors is responsible on behalf of the Group for preparing financial statements that are fairly presented and that comply with generally accepted accounting practice in New Zealand.

The Board of Directors is responsible for such internal control as it determines is necessary to enable it to prepare financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible on behalf of the Group for assessing the Group’s ability to continue as a going concern. The Board of Directors is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Board of Directors has to cease operations, or has no realistic alternative but to do so.

The Board of Directors’ responsibilities arise from the Crown Research Institutes Act 1992.

RESPONSIBILITIES OF THE AUDITOR FOR THE AUDIT OF THE FINANCIAL STATEMENTSOur objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit carried out in accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers taken on the basis of these financial statements.

For the budget information reported in the financial statements, our procedures were limited to checking that the information agreed to the Group’s Statement of Corporate Intent.

We did not evaluate the security and controls over the electronic publication of the financial statements.

INDEPENDENT AUDITORS’ REPORT

TO THE READERS OF THE NEW ZEALAND INSTITUTE FOR PLANT AND FOOD RESEARCH LIMITED’S FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017


As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also:• We identify and assess the risks of material misstatement

of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

• We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

• We conclude on the appropriateness of the use of the going concern basis of accounting by the Board of Directors and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• We evaluate the overall presentation, structure and content of the financial statements, including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• We obtain sufficient appropriate audit evidence regarding the financial statements of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Our responsibilities arise from the Public Audit Act 2001.

OTHER INFORMATIONThe Board of Directors is responsible for the other information. The other information comprises the information included on pages 1 to 83 and page 110, but does not include the financial statements, and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

INDEPENDENCEWe are independent of the Group in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1 (Revised): Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board.

In addition to the audit, we have carried out a research assignment to the High Value Nutrition National Science Challenge which is compatible with those independence requirements. Other than the audit and this assignment, we have no relationship with or interests in the Group.

Karen Shires PricewaterhouseCoopers On behalf of the Auditor-General Auckland, New Zealand


STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 30 June 2017

GROUP2017 2017 2016

Actual Budget ActualUnaudited

Note $000 $000 $000PROFIT AND LOSSRevenueStrategic funding 43,103 43,103 43,103Crown-funded research contracts 15,937 16,496 16,638Commercial science research contracts (4) 85,035 80,669 78,027Other income 1,765 1,647 1,980

145,840 141,915 139,748

Less operating costs (4a)Personnel costs 84,423 80,917 77,667Depreciation expense (5) 10,009 9,996 8,708Amortisation expense (5) 925 600 596(Gain) on sale of assets (95) - (3,607)Other operating expenses (6) 43,462 46,168 43,423

138,724 137,681 126,787

Profit before interest & taxation 7,116 4,234 12,961Finance income 196 85 450Finance costs (130) (115) (105)Share of profit of associates and joint ventures (15) 39 - 109

Profit before taxation 7,221 4,204 13,415Taxation expense (7) 2,039 1,177 2,810Profit after taxation attributable to owners 5,182 3,027 10,605

OTHER COMPREHENSIVE INCOMEItems that may be reclassified subsequently to profit or loss:Currency translation differences (10) - (44)Cash flow hedges (18) (34) - 110Other comprehensive income (44) - 66Total comprehensive income attributable to owners 5,138 3,027 10,671

The accompanying notes form part of these financial statements.


STATEMENT OF CHANGES IN EQUITYfor the year ended 30 June 2017

ATTRIBUTABLE TO OWNERS OF THE GROUP

Note Share capitalRetained earnings

Foreign currency translation

Cash flow hedge Total Equity

$000 $000 $000 $000 $000

Balance as at 01 July 2015 17,436 67,770 (22) (51) 85,133

Changes in equity forProfit for the year 10,605 10,605

Other comprehensive income, net of taxes Currency translation (44) (44)Revaluation of cash flow hedges (18) 110 110

Balance as at 30 June 2016 17,436 78,375 (66) 59 95,804

Changes in equity forProfit for the year 5,182 5,182

Other comprehensive income, net of taxesCurrency translation (10) (10)Revaluation of cash flow hedges (18) (34) (34)

Balance as at 30 June 2017 17,436 83,557 (76) 25 100,942



BALANCE SHEETas at 30 June 2017

GROUP2017 2017 2016


Note $000 $000 $000

Current assetsCash and short-term deposits (8) 1,637 (552) 11,885Receivables and prepayments (9) 27,915 25,503 25,456Inventories 289 187 249Total current assets 29,841 25,138 37,590

Current liabilitiesAccounts payable and accruals (10) 20,704 14,219 18,376Employee entitlements (11) 10,316 9,047 9,063Current borrowings (8) 1,900 - -Current portion mortgage 20 19 19Taxation payable 372 260 1,364Total current liabilities 33,312 23,545 28,822

Working capital (3,471) 1,593 8,768

Non-current assetsProperty, plant and equipment (12) 104,198 100,661 87,175Intangible assets (13) 1,326 2,492 1,686Investments - associates (15) 599 558 599Investments - other 146 100 128Total non-current assets 106,269 103,811 89,588

Non-current liabilitiesBorrowings - 7,000 -Employee entitlements (11) 1,357 1,486 1,668Mortgage 168 173 187Deferred tax liability (16) 331 1,217 697Total non-current liabilities 1,856 9,876 2,552

NET ASSETS 100,942 95,528 95,804

Represented by:EquityShare capital (17) 17,436 17,436 17,436

Retained earnings 83,557 78,127 78,375Foreign currency translation reserve (76) (35) (66)Cash flow hedge reserve (18) 25 - 59

TOTAL SHAREHOLDERS EQUITY 100,942 95,528 95,804

For and on behalf of the Board of Directors:

Michael Ahie, Chairman Greg Gent, Deputy Chair24 August 2017 24 August 2017



CASH FLOW STATEMENTfor the year ended 30 June 2017

GROUP2017 2017 2016


Note $000 $000 $000

Cash flows from/(applied to) operating activitiesReceipts from customers 149,347 143,023 144,138Interest and dividends received 217 85 533

Payments to employees and suppliers (130,787) (130,132) (123,352)Interest paid (46) (115) (105)Tax paid (3,020) (1,198) (3,004)

Net cash flows from operating activities (20) 15,711 11,663 18,210

Cash flows from/(applied to) investing activitiesSale of property, plant and equipment 94 - 4,594Proceeds from short-term investments - - 7,500

Purchase of property, plant and equipment (27,467) (26,500) (29,478)Purchase of intangible assets (13) (458) - (881)

Net cash flows (applied to) investing activities (27,831) (26,500) (18,265)

Cash flows from/(applied to) financing activitiesProceeds from long-term borrowings 1,900 7,000 -Repayment of mortgage (19) (16) (18)

Net cash flows (applied to) financing activities 1,881 6,984 (18)

Net cash flow (10,239) (7,853) (73)

Effect of foreign currency translation adjustment (9) - (46)Opening cash and cash equivalents 11,885 7,301 12,004

Closing cash and cash equivalents (8) 1,637 (552) 11,885



NOTES TO THE FINANCIAL STATEMENTSfor the year ended 30 June 2017

1. REPORTING ENTITIESThe New Zealand Institute for Plant & Food Research Limited (the “Company” or “Plant & Food Research”) and its subsidiaries (the “Group”) is a Crown Research Institute governed by the Crown Research Institute Act 1992 and is a limited liability company incorporated and domiciled in New Zealand. The whole of the share capital is held by Ministers of the Crown on behalf of the New Zealand Government. The Company’s registered office is 120 Mt Albert Road, Sandringham, Auckland 1025.

The Group is primarily involved in research services on a fee-for-service basis.

The Group is designated as a profit-oriented entity for financial reporting purposes.

These financial statements have been approved for issue by the Board of Directors on 24 August 2017.

2. BASIS OF PREPARATIONThe financial statements are presented in New Zealand dollars (NZD), which is the Company’s functional and presentation currency. All financial information presented in New Zealand dollars has been rounded to the nearest thousand dollars ($000).

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets, and financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

(A) Statement of ComplianceThese financial statements have been prepared in accordance with the requirements of the Crown Research Institutes Act 1992, the Public Finance Act 1989, the Companies Act 1993 and the Financial Reporting Act 2013.

The financial statements have also been prepared in accordance with New Zealand generally accepted accounting practice (NZ GAAP). They comply with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS), and other Financial Reporting Standards, as appropriate for profit-oriented entities. They comply with International Financial Reporting Standards (IFRS).

The Group is a Tier 1 entity.

(B) Use of EstimatesThe preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Although these estimates are based on management’s knowledge of current events and actions that may be undertaken in the future, actual results may ultimately differ from estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the period in which the estimate is revised and in any future periods affected. Use of estimates and assumptions is disclosed further in note 3(W).

(C) New and Amended Standards and Interpretations Adopted by the GroupThere were no new standards or amendments to standards that had an impact on the current period financial statements.

(D) Standards and Interpretations Issued and not yet AdoptedThe following new standards and amendments to standards that have been issued but are not yet effective and have not been early adopted by the Group are:

NZ IFRS 9 Financial InstrumentsEffective from 1 January 2018 NZ IFRS 9 will replace the classification and measurement models in NZ IAS 39 Financial Instruments: Recognition and Measurement. NZ IFRS 9 retains but simplifies the mixed measurement model and establishes three primary measurement categories for financial assets: amortised cost, fair value through other comprehensive income and fair value through profit or loss. The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset. The Group intends to adopt NZIFRS 9 from 1 July 2018. The Group has a small number of foreign exchange contracts held in cash flow hedges, borrowings at amortised cost and loans and receivables. Given the nature of the financial instruments held the impact on the Group of NZ IFRS 9 will be minimal.

NZ IFRS 15 Revenue from Contracts with CustomersEffective from 1 January 2018 NZ IFRS 15 replaces the current guidance in IAS 18 Revenue and IAS 11 Construction Contracts. It deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognised when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. The Group intends to adopt NZ IFRS 15 from 1 July 2018. The Group provides predominately research services in which the recognition of revenue is unlikely to be significantly changed with NZ IFRS 15. The Group will review current contracts to consider whether there are multiple performance obligations within contracts and whether the Group is acting as an agent or the principal.

NZ IFRS 16 LeasesEffective from 1 January 2019 NZ IFRS 16 replaces the current guidance in NZ IAS 17. Under NZ IFRS 16, a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchance for consideraton. Under NZ IAS 17, a lessee was required to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet). NZ IFRS 16 requires a lessee to recognise a lease liability reflecting future lease payments and a ‘right-of-use asset’ for virtually all lease contracts. Included is an optional exemption for certain short-term leases and leases of low-value assets; however, this exemption can only be applied by lessees The Group intends to adopt NZ IFRS 16 from 1 July 2019. The Group’s balance sheet will include a right of use asset for the leases currently classifed as operating leases and a corresponding liability. Note 19 of the financial statements includes current operating lease commitments. The impact will be significant to the balance sheet but will have only a minor impact on Net Profit.


NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)for the year ended 30 June 2017

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accounting policies set out below have been applied consistently to all periods presented in these financial statements.

(A) Basis of Consolidation(i) SubsidiariesThe consolidated financial statements of the Group include the parent entity, Plant & Food Research, and its controlled entities. The Group controls an entity when the Group is exposed to, or has right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. This power exists where the Group controls the majority voting power on the governing body or where such policies have been irreversibly predetermined by the Group or where the determination of such policies is unable to materially impact upon the level of potential ownership benefits that arise from the activities of the subsidiary. The financial statements of subsidiaries are included in the consolidated financial statements from the date which the Group obtains control and until such time as the Group ceases to control the entity.

The Group measures the cost of a business combination as the aggregate of fair values, at the date of exchange, of assets given, liabilities incurred or assumed, in exchange for control of the subsidiary plus any costs directly attributable to the business combination.

Any excess of the cost of the business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities is recognised as goodwill. If the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised exceeds the cost of the business combination, the difference will be recognised immediately in the Statement of Comprehensive Income.

The purchase method of accounting is used to prepare the consolidated financial statements of the Group. In preparing the consolidated financial statements, the effects of all transactions, balances and unrealised gains and losses on transactions between entities in the Group have been eliminated. The Group’s investment in its subsidiaries are initially carried at cost in the Parent’s financial statements subject to any write down arising from an annual impairment review.

(ii) AssociatesAssociates are those entities over which the Group has significant influence, but not control, of the financial and operating policies.Investments in associate companies have been accounted for using the equity method of accounting and are initially recognised at cost and the carrying amount is increased or decreased to recognise the Group’s share of the surplus or deficit of the associate after the date of acquisition. The Group’s share of the surplus or deficit of the associate is recognised in the Group’s Statement of Comprehensive Income. Distributions received from an associate reduce the carrying amount of the investment.

If the Group’s share of deficits of an associate equals or exceeds its interest in the associate, the Group discontinues recognising it’s share of further deficits. After the Group’s interest is reduced to zero, additional deficits are provided for, and a liability is recognised, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports surpluses, the Group will resume recognising its share of those surpluses only after its share of the surpluses equals the share of the deficits not recognised.

The Group’s share in the associate’s surplus or deficits resulting from unrealised gains on transactions between the Group and its associates is eliminated.

(B) RevenueRevenue is recognised at the fair value of consideration received or receivable to the extent that it is probable, that economic benefits will flow to the Group. Revenue is shown net of GST, returns and discounts and after eliminating sales within the Group. The following specific recognition criteria must be met before revenue is recognised:

(i) Strategic fundingStrategic funding from the Crown, was established 1 July 2011 and is recognised in the Statement of Comprehensive Income in the year it is received. Strategic funding was previously known as Core funding.

(ii) Crown-funded research contractsRevenue from the Crown is recognised in the Statement of Comprehensive Income when the requirements under the funding agreement have been met.

(iii) Commercial science research contractsSale of goodsRevenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and the amount of revenue can be reliably measured. Risks and rewards are considered passed to the buyer at the time of delivery of the goods to the customer.

Sale of servicesResearch services are provided on a fixed-price contract, with contract terms generally ranging from less than a year to five years.

Revenue from a contract to provide services is recognised by reference to the stage of completion of the transaction, assessed on the basis of the actual service provided as a proportion of the total services to be provided. If circumstances arise that may change the extent of the progress toward completion, the estimates are revised. These revisions may result in increases or decreases in estimated revenues or costs and are reflected in income in the period in which the circumstances that give rise to the revision become known by management.

RoyaltiesRoyalty revenue is recognised on an accrual basis in accordance with the substance of the relevant agreement.

(iv) Other incomeRental incomeLease receipts under an operating lease are recognised as revenue on a straight-line basis over the lease term.

(v) Interest revenueInterest revenue is recognised on a time-proportion basis using the effective interest method.



(C) Foreign Currency TranslationForeign currency transactions are translated into New Zealand dollars using the exchange rates prevailing at the dates of the transactions, except when forward currency contracts have been taken out to cover short-term forward currency commitments. Where short-term forward currency contracts have been taken out, the transaction is translated at the rate contained in the contract. Foreign currency denominated monetary assets and liabilities are translated at the exchange rate prevailing at the period end. Foreign exchange gains or losses resulting from the settlement of such transactions and from the translation at balance date of foreign denominated monetary assets and liabilities are recognised in the Statement of Comprehensive Income, except when deferred in equity as qualifying cash flow hedges.

The results and balance sheets of all foreign operations that have a functional currency different from New Zealand dollars are translatedinto the presentation currency as follows:

The assets and liabilities of foreign controlled entities are translated by applying the rate ruling at balance date and revenue and expense items are translated at the average rate calculated for the period. The exchange differences arising on the re translation are taken directly to equity in the foreign currency translation reserve.

On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of borrowing and other currency instruments designated as hedges of such investments, are taken to shareholder’s equity.

(D) Borrowing CostsBorrowing costs are recognised as an expense in the period in which they are incurred.

(E) Cash Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with maturities of three months or less from date of acquisition, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.

(F) Trade and Other ReceivablesTrade receivables are recognised initially at fair value, plus any transaction costs, and subsequently measured at amortised cost using the effective interest method, less any provision for doubtful receivables.

Collectibility of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off when identified. A provision for doubtful receivables is established when there is objective evidence, for example notice of liquidation or receivership, that the Group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of the estimated future cash flows, discounted at the effective interest rate, if applicable. The amount of the provision is recognised in the Statement of Comprehensive Income.

When a trade receivable is uncollectible, it is written off against the provision if it has been provided for or immediately recognised in the Statement of Comprehensive Income, within other operating expenses, if not. Any recoveries of trade receivables written off are credited against bad debts in the Statement of Comprehensive Income.

(G) Property, Plant and EquipmentThe Group has four classes of property, plant and equipment: - Land - Buildings - Plant and equipment - Motor vehicles

Land is recorded at cost. All other property, plant and equipment is shown at cost less accumulated depreciation and any accumulated impairment losses, except for assets transferred from the Crown. Property, plant and equipment transferred from the Crown has been included in the accounts at values established by independent valuers which is the deemed cost. All subsequent expenditure has been initially recorded at cost.

Cost includes expenditures that is directly attributable to the acquisition of the asset. Subsequent costs are included in the asset’s carrying amount only when it is probable that future economic benefits or service potential associated with the asset will flow to the Group and the cost of the item can be measured reliably. All other costs are recognised in the Statement of Comprehensive Income when the expense is incurred. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition. The Group constructs some items of plant for use in research. These have been brought into the accounts at the cost of direct labour and materials plus an appropriate proportion of direct overheads.

Land transferred to the Group cannot be freely traded. Section 30 of the Crown Research Institutes Act 1992 requires that prior to sale sections 40-42 of the Public Works Act 1981 be complied with. These sections require that land offered for sale must be offered to the original owner of that land or their successors. An arbitration clause is included to establish fair values for such offers.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposal are included in the Statement of Comprehensive Income.

(i) Non-current Assets Held for SaleNon-current assets are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable.



(H) DepreciationDepreciation on assets, except land, is calculated using the straight-line method, at rates calculated to allocate the asset’s cost, less estimated residual value, over its estimated useful life. Leasehold improvements are depreciated over the shorter of the unexpired period of the lease and the estimated useful life of improvements.

The useful lives of major asset classes of property, plant and equipment have been estimated as follows: Buildings 10 - 100 years Plant and equipment 3 - 10 years Motor vehicles 3 - 10 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each financial year-end.

The assets’ carrying value is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

(I) Intangible Assets(i) SoftwareThe cost of software, databases and related items, either acquired or internally generated, is recognised as an expense when incurred, except for:

The cost of software, databases and related items, either acquired or internally generated, which are unique and controlled by the Group, and that will probably generate measurable economic benefits exceeding costs beyond one year is capitalised as intangible assets.

Costs associated with maintaining computer software are recognised as an expense when incurred.

The carrying value of software is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the Statement of Comprehensive Income.

The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows: Software 3 - 5 years

(ii) Trademarks and licensesThe cost of acquired trademarks and licenses are capitalised as intangible assets where they will probably generate measurable economic benefits exceeding costs beyond one year. Trademarks and licenses have a finite useful life and are carried at cost less accumulated amortisation.

Amortisation is calculated using the straight-line method to allocate the cost over their estimated useful lives, which is between 10 and 15 years.

(iii) Research and developmentResearch and development is the business of the Company. Most work is performed under contract for others, and in most cases intellectual property rights are retained. All research and development costs are expensed in the period they are incurred.

When a project reaches the stage where it will probably generate future measurable economic benefits exceeding development cost, development cost is recognised as an intangible asset. The asset is amortised from the commencement of commercial production of the product to which it relates, on a straight-line basis, over the period of expected benefit.

(J) Investments and Other Financial AssetsThe Group classifies its investments by the following categories: financial assets at fair value through profit or loss, and loans and receivables. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at each reporting date.

Financial assets and liabilities are initially measured at fair value plus transaction costs unless they are carried at fair value through profit or loss, in which case the transaction costs are recognised in the Statement of Comprehensive Income.

Purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price used is the current bid price.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques.The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.

(i) Financial assets at fair value through profit or lossThis category has two sub-categories: financial assets held for trading, and those designated at fair value through profit or loss at inception. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management.Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if they are either held for trading or are expected to be realised within 12 months of the balance sheet date. After initial recognition they are measured at their fair values. Gains or losses on remeasurement are recognised in the Statement of Comprehensive Income.

Financial assets in this category include derivatives, see note 3 (S).



(ii) Loans and receivablesThese are non derivative financial assets with fixed or determinable payments that are not quoted in an active market.

After initial recognition they are measured at amortised cost using the effective interest method. Gains and losses when the asset is impaired or derecognised are recognised in the Statement of Comprehensive Income. Loans and receivables are classified as “trade and other receivables” and “cash and short term deposits” in the Balance Sheet.

(K) Impairment of Financial AssetsAt each balance sheet date the Group assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired. Any impairment losses are recognised in the Statement of Comprehensive Income.

(L) Impairment of Non-Financial AssetsThe carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is an indication that an asset may be impaired. Where an indicator of impairment exists, or where annual impairment testing for an asset is required, the Group makes a formal estimate of the recoverable amount. Assets that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash flows and where the entity would, if deprived of the asset, replace its remaining future economic benefits or service potential.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). The value in use for cash-generating assets is the present value of expected future cash flows. An impairment loss is recognised in the Statement of Comprehensive Income. Non-financial assets that suffered impairment are reviewed for possible reversal of the impairment at each reporting date, this is recognised in the Statement of Comprehensive Income.

(M) Trade PayablesTrade payables are initially measured at fair value and subsequently measured at amortized cost using the effective interest method.

(N) ProvisionsProvisions are recognised when the Company has a present obligation (either legal or constructive), as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the balance sheet date, the discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as an interest expense.

(O) Employee Benefits(i) Wages and salaries, annual leave, sick leave and other benefitsProvision is made for employee benefits accumulated as a result of employees rendering services up to balance date including related oncosts.

The benefits include wages and salaries, annual leave, sick leave, incentives and other benefits. The provision for employee benefits is measured at the remuneration rates expected to be paid when the liability is settled.

The Group recognises a liability for sick leave to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that the Group anticipates it will be used by staff to cover those future absences.

The Group recognises a liability and an expense for bonuses where contractually obliged or where there is a past practice that has created a constructive obligation.

(ii) Long service leave and retirement leaveService leave and retirement leave entitlements are calculated based on the employee’s entitlement and their current pay rate. The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

Long term benefits expected to be settled within 12 months are classified as employee entitlements under current liabilities.

(iii) Pension and post retirement benefitsThe Group operates a defined contribution superannuation plan. A defined contribution plan is a pension plan under which the Group pays fixed contributions to a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

The Group’s contributions made to defined contribution superannuation plans are recognised as an expense in the Statement of Comprehensive Income when they are due.



(P) LeasesThe Company leases certain plant and equipment, land and buildings.

Operating lease payments, where the lessors effectively retains substantially all the risks and benefits incidental to ownership of the leased item, are recognised as an expense in the Statement of Comprehensive Income on a straight line basis over the lease term.

(Q) Income Tax(i) Current taxIncome tax expense comprises both current tax and deferred tax, and is calculated using tax rates that have been enacted or substantially enacted by balance date. Current tax and deferred tax are charged or credited to the Statement of Comprehensive Income, except when they relate to items charged or credited directly to equity, in which case the tax is dealt with in equity. Current tax is the amount of income tax payable based on the taxable profit for the current year, plus any adjustments to income tax payable in respect of prior years.

(ii) Deferred taxDeferred tax is the amount of income tax payable or recoverable in future periods in respect of temporary differences calculated using the liability method and unused tax losses. Deferred tax is not accounted for if it arises from initial recognition of goodwill or from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting nor taxable profit or loss.

Deferred tax is recognised if it arises from investments in subsidiaries and associates, and interests in joint ventures, except where the company can control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax is measured using the tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

(R) Goods & Services Tax (GST)The Statement of Comprehensive Income has been prepared so that all components are stated exclusive of GST. All items in the Balance Sheet are stated net of GST, with the exception of receivables and payables which include GST invoiced. Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to, the Inland Revenue Department is included as part of receivables or payables in the Balance Sheet.

The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the Cash Flow Statement.

Commitments and contingencies are disclosed exclusive of GST.

(S) Derivative Financial InstrumentsThe Group enters into derivative transactions, principally forward currency contracts. The purpose of these transactions is to manage the currency risk arising from the Group’s operations. All derivative financial instruments are recognised in the Balance Sheet at their fair value. Changes in the fair value of derivative financial instruments are recognised either in the Statement of Comprehensive Income in equity depending on whether the derivative financial instrument qualifies for hedge accounting, and if so, whether it qualifies as a fair value hedge or cash flow hedge.In accordance with its treasury policy, the Group does not hold or issue derivative financial instruments for trading purposes.

Changes in the fair values of forward currency contracts that are designated and qualify as cash flow hedges, to the extent that they are effective hedges, are recorded in equity. The gains and losses that are recognised in equity are transferred to the Statement of Comprehensive Income in the same period in which the hedged item affects earnings. On sale, expiry, or de-designation of a forward currency contract, the cumulative gains or losses are maintained in equity until such time as the forecast transaction impacts earnings. If the forecast transaction is no longer expected to occur the cumulative gain or loss is transferred to the Statement of Comprehensive Income. The Group documents at inception of the transaction the relationship between hedging instruments and hedging items, as well as its risk management objective and strategy for undertaking various hedge transactions. The process includes linking all forward currency contract derivative financial instruments to specific firm commitments or forecast transactions. The Group also documents its assessment, both at the hedge inception and on an ongoing basis, of whether the forward currency derivative financial instruments used are highly effective.

(T) BorrowingsBorrowings are initially recognised at their fair value net of transaction costs. After initial recognition all borrowings are measured at amortised cost using the effective interest method.

(U) Budget FiguresThe budget figures are derived from the Statement of Corporate Intent as approved by the Board, and the Shareholder, at the beginning of the financial year. The budget figures have been prepared in accordance with NZ IFRS, using accounting policies that are consistent with those adopted by the Group for the preparation of these financial statements. The budget figures are unaudited.



(V) Critical Accounting Estimates and AssumptionsIn preparing these financial statements the Group has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

(i) Retirement and long service leaveThe present value of the retirement and long service leave obligations depend on a number of factors that are determined on an actuarial basis using a number of assumptions. Two key assumptions used in calculating this liability include the discount rate and the salary inflation factor. Any changes in these assumptions will impact on the carrying amount of the liability.

In determining the appropriate discount rate the Company considered the interest rates on NZ government bonds which have terms to maturity that match, as closely as possible, the estimated future cash outflows. The salary inflation factor has been determined after considering historical salary inflation patterns. A weighted average discount rate of 2.75% and a salary inflation factor of 3.50% were used.

If the discount rate were to differ by 1% from the Company’s estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $46,000 higher / lower.

If the salary inflation factor were to differ by 1% from the Company’s estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $9,000 higher / lower.

The carrying amount of employee entitlements are disclosed in the Balance Sheet.

(W) Critical Judgements in Applying the Company’s Accounting PoliciesManagement has exercised the following critical judgement in applying the Company’s accounting policies for the period ended 30 June 2017:

(i) Revenue recognitionIn determining the revenue to be recognised from a contract to provide services judgement is required in respect of assessing the percentage of completion of the project. In making this judgement the actual service provided as a proportion of the total services to be provided is reviewed. If circumstances arise that may change the extent of the progress the estimates are revised.



GROUP2017 2016

Note $000 $000

4. COMMERCIAL SCIENCE RESEARCH CONTRACTSRoyalties 31,123 27,871Other commercial science research contracts 53,912 50,156Total commercial science research contracts 85,035 78,027

4A. PROFIT BEFORE TAXATIONAfter chargingAuditors’ remuneration

Audit fees for financial statement audit 127 129Other services 70 30

Directors fees 297 297Employer contributions to defined contribution plans 1,437 1,218Unrealised foreign exchange losses/(gains) 66 92

5. DEPRECIATION AND AMORTISATIONDepreciation

Buildings 3,304 2,806Plant and equipment 6,260 5,398Motor vehicles 445 504

Total depreciation on property, plant and equipment (12) 10,009 8,708

Amortisation Software and databases 925 596Patents, trademarks and licences - -

Total amortisation of intangible assets (13) 925 596

6. OTHER OPERATING EXPENSESOther operating expenses

Materials 6,004 5,683Research & services contracts 9,617 12,065Rental and operating lease costs 7,814 7,221Travel 5,278 5,035Other general operating costs 14,749 13,419

Total general operating expenses 43,462 43,423



GROUP2017 2016

Note $000 $0007. TAXATIONProfit before taxation 7,221 13,415Prima facie taxation @ 28% 2,022 3,756

Plus/(less) taxation effect:Non-assessable income 33 (956)Non-deductible expenditure 35 45Prior period adjustment (5) 11Imputation credits on dividends received (10) (3)

Utilisation of tax losses (36) (43)

2,039 2,810

The taxation charge is represented by:Current taxation 2,405 3,330Deferred tax benefit (16) (366) (520)

2,039 2,810

The Company is not required to maintain an Imputation Credit Account pursuant to section OB1(2)(d) of the Income Tax Act 2007.

8. CASH AND BORROWINGSCash on hand and at bank 1,637 6,885Short-term deposits - 5,000

Cash and short-term deposits 1,637 11,885

The carrying value of short-term deposits with maturity dates of three months or less approximates their fair value. The weighted averageeffective interest rate for term deposits was 2.84% for 2016.

Current portion of borrowings 1,900 -

Borrowings 1,900 -

The Group has the following undrawn borrowing facilities at 30 June 2017:

The borrowings are secured by a first ranking general security agreement over the Group’s assets and subject to two financial covenants. The general security agreement means that the Group may not grant a security interest greater than 5% of total tangible assets to another party or dispose of assets greater than $1,000,000 without the consent of the bank.

The Group is required to ensure that the following financial ratios are met:(i) Shareholder funds of not less than 50% of adjusted tangible assets; and(ii) Earnings for the year not less than 3.00 times its consolidated funding costs.

The Group complied with these ratios during the year ended 30 June 2017.

The interest rate for borrowings was 2.65% for 2017.

Expiry Facility Drawdown

Multi option credit facility No. 1 17 September 2018 6,000 1,900Multi option credit facility No. 2 17 March 2021 14,000 -



GROUP2017 2016$000 $000

9. RECEIVABLES AND PREPAYMENTSTrade receivables 19,819 18,105Provision for impairment (286) (279)

19,533 17,826

Accrued income 5,617 5,475Prepayments and other receivables 2,765 2,155

27,915 25,456

The carrying value of receivables approximates their fair value. The carrying amount of receivables that would otherwise be past due, butnot impaired, whose terms have been renegotiated is $1,042,000 (2016: $528,000). As at 30 June 2017 and 30 June 2016, all overduereceivables have been assessed for impairment and appropriate provisions applied, as detailed below:

The provision for impairment has been calculated based on expected losses for the Group’s pool of debtors. Expected losseshave been determined based on an analysis of the Group’s losses in previous periods, and review of specific debtors.

Movements in the provision for impairment of receivables are as follows: GROUP2017 2016$000 $000

Balance at 01 July (279) (204)Additional provisions made during the year (11) (100)Receivables written-off during the year 4 25

Balance at end of year (286) (279)

GROUP 30 June 2017 30 June 2016

Gross Impairment Net Gross Impairment Net

Not past due 18,491 - 18,491 17,404 (106) 17,298Past due 1 - 30 days 854 - 854 374 (100) 274Past due 31 - 60 days 57 - 57 139 - 139Past due 61 - 90 days 389 (258) 131 120 (5) 115Past due > 91 days 28 (28) - 68 (68) -Total 19,819 (286) 19,533 18,105 (279) 17,826



GROUP2017 2016$000 $000

10. ACCOUNTS PAYABLE AND ACCRUALSTrade payables 10,498 9,318Other payables and accruals 2,925 3,108Revenue in advance 7,281 5,950

20,704 18,376

Accounts payable and accruals are non-interest bearing and are normally settled on 30-day terms, therefore the carrying value ofaccounts payable and accruals approximates their fair value.

11. EMPLOYEE ENTITLEMENTSAnnual leave 5,197 4,911Service leave 1,323 1,194Retirement leave 3,044 2,939Other leave and accruals 2,109 1,687

Total employee entitlements 11,673 10,731

Comprising: Current 10,316 9,063Non-current 1,357 1,668

11,673 10,731



12. PROPERTY, PLANT AND EQUIPMENTGROUP

Land BuildingsPlant

and Equipment Motor Vehicles Total $000 $000 $000 $000 $000

CostOpening balance 01 July 15 7,878 67,979 102,504 5,455 183,816Additions - 18,954 8,976 462 28,392Disposals - (3,609) (1,166) (286) (5,061)Transfers (36) (251) (178) - (465)Foreign exchange movement - - - - -

Closing balance 30 June 16 7,842 83,073 110,136 5,631 206,682

Accumulated depreciationOpening balance 01 July 15 - 30,525 80,982 3,886 115,393Additions - 2,806 5,398 504 8,708Disposals - (3,219) (1,121) (254) (4,594)Transfers - - - - -

Closing balance 30 June 16 - 30,112 85,259 4,136 119,507

Net book value 7,842 52,961 24,877 1,495 87,175

GROUP

Land BuildingsPlant

and Equipment Motor Vehicles Total $000 $000 $000 $000 $000

Cost Opening balance 01 July 16 7,842 83,073 110,136 5,631 206,682Additions 722 16,838 9,195 517 27,272Disposals - (3,521) (5,247) (232) (9,000)Transfers - 294 (420) - (126)Foreign exchange movement - - 1 - 1

Closing balance 30 June 17 8,564 96,684 113,665 5,916 224,829

Accumulated depreciationOpening balance 01 July 16 - 30,112 85,259 4,136 119,507Additions - 3,304 6,260 445 10,009Disposals - (3,428) (5,226) (212) (8,866)Transfers - 13 (32) - (19)

Closing balance 30 June 17 - 30,001 86,261 4,369 120,631

Net book value 8,564 66,683 27,404 1,547 104,198

Some land holdings are restricted assets to the extent that they are potentially subject to Maori land claims. The book value of land potentially subject to Maori claims is $7,069,000.

The Company holds numerous germplasm collections of horticultural material for research purposes. Due to the nature of the collections their value can not be measured reliably for financial purposes, however they have a fundamental importance to the Company’s research.

Included within total additions for the year is $13.2M (2016: $18.1M) associated with the redevelopment of our Mt Albert site.



13. INTANGIBLE ASSETSGROUP

Software, Databases

Patents, Trademarks Goodwill Total

$000 $000 $000 $000CostOpening balance 01 July 15 7,838 467 19 8,324Additions 881 - - 881Disposals - - - -Transfers 465 - - 465

Closing balance 30 June 16 9,184 467 19 9,670

Accumulated amortisationOpening balance 01 July 15 6,902 467 19 7,388Additions 596 - - 596Disposals - - - -Transfers - - - -


Net book value 1,686 - - 1,686

GROUPSoftware, Databases

Patents, Trademarks Goodwill Total

$000 $000 $000 $000CostOpening balance 01 July 16 9,184 467 19 9,670Additions 458 - - 458Disposals (101) - - (101)Transfers 126 - - 126


Accumulated amortisationOpening balance 01 July 16 7,498 467 19 7,984Additions 925 - - 925Disposals (101) - - (101)Transfers 19 - - 19


Net book value 1,326 - - 1,326



14. INVESTMENTS - SUBSIDIARIES Principal Activity Balance Interest

Date Held %

CropSeed Limited Seed growing services 30 June 100Plant & Food Research (USA) Corporation Marketing and consultancy services in the USA 30 June 100Plant & Food Research Australia Pty Limited Science, marketing and consultancy services in Australia 30 June 100Truffle Investment New Zealand Limited Non trading 30 June 100

Plant & Food Research Australia Pty Limited is incorporated in Australia. Plant & Food Research (USA) Corporation is incorporated in the USA.All other subsidiaries are incorporated in New Zealand.

15. INVESTMENTS - ASSOCIATESThe Group’s share of profit/(loss) in its associated companies and joint ventures for the year was $39,000 (2016: $109,000).

Principal Activity Interest Total Total Revenue Profit/(Loss)30 June 2017 Held Assets Liabilities

Pacific Berries LLC Developing & commercialising IP 50.0% 473 - 211 190Forage Innovations Limited Developing & commercialising IP 49.0% 1,166 837 1,504 (72)Biopolymer Network Limited Developing & commercialising IP 33.3% 1,028 326 3,399 (75)Rhindo International Limited Developing & commercialising IP 25.0% 10 - - -Lincoln Hub Limited Developing Lincoln hub complex 20.0% 329 286 1,173 44

30 June 2016

Pacific Berries LLC Developing & commercialising IP 50.0% 290 - 225 219Jukebox NZ Limited Developing & commercialising IP 50.0% 78 7 - (1)Forage Innovations Limited Developing & commercialising IP 49.0% 1,183 783 1,417 (147)Biopolymer Network Limited Developing & commercialising IP 33.3% 1,188 411 3,542 83Rhindo International Limited Developing & commercialising IP 25.0% 10 - - -

GROUP2017 2016$000 $000

Jukebox NZ Limited - 39Forage Innovations Limited 143 183Biopolymer Network Limited 205 230Pacific Berries LLC 240 145Rhindo International Limited 2 2Lincoln Hub Limited 9 -

Total associate and joint venture investments 599 599



16. DEFERRED TAX ASSET/(LIABILITY)

Property, plant Investments- Derivative financial Employee Other Tax Totalequipment associates instruments entitlements provisions losses

$000 $000 $000 $000 $000 $000 $000GROUPBalance at 01 July 2015 (3,801) (123) (14) 2,445 276 - (1,217)Charged to statement of comprehensive income 331 9 31 157 (8) - 520Balance at 30 June 2016 (3,470) (114) 17 2,602 268 - (697)

Charged to statement of comprehensive income 301 16 (10) 143 (84) - 366

Balance at 30 June 2017 (3,169) (98) 7 2,745 184 - (331)

GROUP2017 2016$000 $000

17. SHARE CAPITAL & RESERVESOrdinary shares (000’s)On issue opening balance 17,436 17,436Issued for cash - -

On issue at closing balance 30 June 17,436 17,436

All issued shares are fully paid and have no par value.The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.All shares rank equally with regard to the Company’s residual assets.

18. CASH FLOW HEDGE RESERVEOpening balance at 01 July 59 (51)Transferred to cost of sales - -Revaluations (34) 110

Closing balance at 30 June 25 59

The hedge reserve is used to record fair value gains or losses on foreign exchange forward contracts that qualify as cash flow hedges.



GROUP2017 2016$000 $000

19. COMMITMENTSThe following amounts have been committed to by the Group or Parent, but are not recognised in the financial statements:

a) Capital commitmentsProperty, plant and equipment 9,383 20,601

b) Operating commitments (excluding leases) 620 706

c) Operating lease commitmentsLease commitments under non-cancellable operating leases are as follows:

Not later than one year 1,904 996Later than one year and not later than five years 4,165 4,785Later than five years 13,654 16,891

19,723 22,672

d) Operating lease incomeLease income under non-cancellable operating leases are as follows:

Not later than one year 726 603Later than one year and not later than five years 263 645Later than five years 136 -

1,125 1,248

Included within capital commitments is $6.2M for the development of our Mt Albert site (2016: $17.1M).

The Group received rental income of $796,000 during the year (2016: $905,000). Rental income is included within Other income in the Statement ofComprehensive Income.

The Group leases premises and plant and equipment. Operating leases held over properties give the Group the right to renew the lease subject to a redetermination of the lease rental by the lessor. There are no renewal options or options to purchase in respect of plant and equipment held under operating leases.

The Group rents premises. Operating leasees have the rights to renew the lease subject to a redetermination of the lease rental.

20. RECONCILIATION OF PROFIT AFTER TAX WITH CASH FLOW FROM OPERATING ACTIVITIESProfit after tax 5,182 10,605

Add/(less) non-cash items:Share of retained profit of associates and joint ventures (39) (109)Depreciation and amortisation 10,934 9,304Movement in foreign exchange 4 -Non-cash movements in investments (2) 34Decrease in future tax liability (366) (520)Increase in employee entitlements 942 847

11,473 9,556Add/(less) items classified as investing activities:

Loss/(Gain) on sale of property, plant and equipment 62 (3,458)

Movements in working capital:Increase in receivables and prepayments (2,167) (717)(Increase)/decrease in inventory (40) 9Increase in trade payables and accruals 2,193 2,304Decrease in taxation payable (992) (89)

(1,006) 1,507

Net cash flow from operating activities 15,711 18,210



21. RELATED PARTY TRANSACTIONSThe Company is a wholly owned entity of the Crown. The government significantly influences the role of the Company in addition to being a major source of revenue.

The Group enters into transactions with government departments, state-owned enterprises and other Crown entities. These transactions occur within a normal customer / supplier relationship on terms and conditions no more or less favourable than those which it is reasonable to expect the Group would have adopted if dealing with that entity at arm’s length in the same circumstances. Such transactions have not been disclosed as related party transactions.

Strategic funding amounting to $43,103,000 was received from MBIE (a government department) during the year to 30 June 2017. Strategic funding is disclosed on the face of the Statement of Comprehensive Income.

Sale of services Due from2017 2016 2017 2016

Transactions with: $000 $000 $000 $000

Associates 1,445 1,504 475 457

For the year ended 30 June 2017, the Group has not impaired or written off any related party receivables (2016: $0).

The Group contracted with parties associated with certain directors during the year. These are as detailed below.These transactions were all at normal commercial rates.

GROUP2017 2016$000 $000

Parties associated with Directors Nature of the transaction

Kiwi Innovation Network Limited Services 243 235The Bio Commerce Centre Limited Rent - 1

b) Key management personnel compensation:Salaries and other short term employee benefits 2,657 2,556

Key management personnel include the Board of Directors, the Chief Executiveand the other members of the senior executive team.



22. FINANCIAL INSTRUMENTSThe Group’s activities expose it to a variety of financial instrument risks, including market risk, credit risk and liquidity risk. The Group has a series of policies to manage the risks associated with financial instruments and seeks to minimise exposure from financial instruments. These policies do not allow any transactions that are speculative in nature.

Market riskCurrency riskCurrency risk is the risk that the fair value or future cash flows will fluctuate due to changes in foreign exchange rates. The Group purchases goods and services overseas which require it to enter into transactions denominated in foreign currencies. The Group also holds small balances of AUD, EUR and USD at call in order to settle transactions denominated in foreign currencies. As a result of these activities, some limited exposure to currency risk arises.It is the Group’s policy to manage foreign currency risks arising from contractual commitments and liabilities by entering into foreign exchange forward contracts to hedge the foreign currency risk exposure. All of the forward exchange contracts have maturities of less than one year at the balance sheet date.

Sensitivity analysisThe Group’s results are not sensitive to changes in foreign exchange rates.

Credit risk Credit risk is the risk that a third party will default on its obligations to the Group, causing the Group to incur a loss.Due to the timing of its cash inflows and outflows, the Group invests surplus cash with registered banks with a Standard & Poor’s credit rating of A- or above. The Group’s investment policy limits the amount of credit exposure to $10M with any one institution.The largest credit exposure with any one institution at balance date is $0.7M.

The Group’s maximum credit exposure for each class of financial instrument is represented by the total carrying amount of cash and short-term deposits (note 8), short-term investments, net receivables (note 9) and derivative financial assets. There is no collateral held as security against these financial instruments.

Management has a credit policy in place under which each new customer is individually analysed for credit worthiness and assigned a credit limit before the standard payment and delivery terms and conditions are offered. Where available the Group reviews external ratings and references are obtained. Credit limits are reviewed on a regular basis.

Net receivables includes two customers who represent 40% of the total trade receivables at balance date. The Group is not exposed to any other concentrations of credit risk.



22. FINANCIAL INSTRUMENTS (CONTINUED)

Liquidity riskLiquidity risk is the risk that the Group will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Group aims to maintain flexibility in funding by keeping committed credit lines available. It is the Group’s policy to provide credit and liquidity enhancement only to wholly owned subsidiaries.

The table below analyses the Group’s derivative financial instruments and other financial liabilities that will be settled on a gross basis into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed are the contractual undiscounted cash flows.

GROUP 2017Carrying Contractual Up toamount cash flow 12 months 1-2 years 3 years +

Trade and other payables 11,886 11,886 11,886 - -Borrowings 1,900 1,900 1,900 - -Mortgage 188 188 20 42 126

13,974 13,974 13,806 42 126

Forward exchange contractsInflow 25 1,763 1,763 - -Outflow - - - - -

GROUP 2016

Trade and other payables 10,980 10,980 10,980 - -Mortgage 206 206 19 38 149

11,186 11,186 10,999 38 149

Forward exchange contractsInflow 59 1,364 1,364 - -Outflow - - - - -

Fair value estimationThe group uses various methods in estimating the fair value of a financial instrument.

- The fair value is calculated using quoted prices in active markets (Level 1)- The fair value is estimated using inputs other than quoted prices included in Level 1 that observable for the asset or liability either directly (as prices)

or indirectly (derived from prices) (Level 2); and- The fair value is estimated using inputs for the asset or liability that are not based on observable market data (Level 3).

The Groupʻs derivative financial instruments are all level 2 forward foreign exchange contracts with a fair value of $25,000 (2016: $59,000).

These have been fair valued using forward exchange rates that are quoted in an active market.

In the period to 30 June 2017 there were no significant changes in the business or economic circumstances that affect the fair value of the Group’sfinancial assets and financial liabilities.



23. CATEGORIES OF FINANCIAL ASSETS AND LIABILITIESThe carrying amounts of financial assets and liabilities by classification are as follows:

GROUP2017 2016

Note $000 $000

Loans and receivablesCash and short-term deposits (8) 1,637 11,885Trade and other receivables (9) 25,150 23,301Derivatives used for hedging (18) 25 59Total financial assets 26,812 35,245

Financial liabilities measured at amortised costAccounts payable and accruals (10) 11,886 10,980Employee entitlements (11) 10,316 9,063Borrowings (8) 1,900 -Mortgage liability 188 206

Total financial liabilities 24,290 20,249

The fair value of the financial assets and liabilities approximate their carrying value.

24. CAPITAL MANAGEMENTThe Company’s capital is its equity, which comprises share capital and accumulated funds. Equity is represented by net assets.

The Company is subject to the financial management and accountability provisions of the Crown Research Institutes Act 1992, which imposes restrictions in relation to borrowings, acquisition of securities, issuing guarantees and indemnities and the use of derivatives.

The Company manages its equity as a by-product of prudently managing revenues, expenses, assets, liabilities and general financial dealings to ensure the Company effectively achieves its objectives and purpose, whilst remaining a going concern.

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Group recognises the need to maintain a balance between the higher returns that might be possible with greater gearing and the advantages and security afforded by a sound capital position.

25. CONTINGENCIESContingent LiabilitiesThere were no contingent liabilities known to exist at balance date (June 2016 $0).

Contingent AssetsThere were no contingent assets known to exist at balance date (June 2016 $0).


PERFORMANCE INDICATORSfor the year ended 30 June 2017

2017 2016Actual Actual

RESEARCH COLLABORATIONPeer reviewed publications 312 350

Book chapters 11 24

TECHNOLOGY & KNOWLEDGE TRANSFERLicences - new 10 7Client reports 479 445Plant variety rights

Granted in NZ 5 15Granted overseas 16 10

Patents 14 8Trademarks

Registered 4 2

Requests for information from databases and collections 12 13

SCIENCE QUALITYScience reviews 2 1

International awards 8 9Invitations for international committees 32 41Invitations for editorial boards 5 12


STATEMENT OF RESPONSIBILITYfor the year ended 30 June 2017

In the financial year ended 30 June 2017, the Board and management of The New Zealand Institute for Plant & Food Research Limited were responsible for:

→ the preparation of the financial statements and the judgements used therein.→ establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial and

non-financial performance reporting.

In the opinion of the Board and management of The New Zealand Institute for Plant & Food Research Limited, these financial statements fairly reflect the financial position and operations of The New Zealand Institute for Plant & Food Research Limited for the year ended 30 June 2017.

Michael Ahie, Chairman Greg Gent, Deputy Chair24 August 2017 24 August 2017


DIRECTORS

Michael Ahie Chairman

Greg Gent Deputy Chair

Andrew von Dadelszen

Colin Dawson

Professor Juliet Gerrard

Mark Stuart

CHIEF EXECUTIVE OFFICER

Peter Landon-Lane

SENIOR MANAGEMENT TEAM

Dr Bruce Campbell Chief Operating Officer

David Hughes Group General Manager Commercial

Michael James Chief Financial Officer

Craig Jensen General Manager Human Resources

Professor Richard Newcomb Chief Scientist

REGISTERED OFFICE

120 Mt Albert Road Sandringham Auckland 1025New Zealand

AUDITORS

PricewaterhouseCoopers on behalf of the Auditor General

BANKERS

ANZ Bank New Zealand Ltd

Westpac New Zealand Ltd

DIRECTORY

NEW ZEALAND

AUCKLAND120 Mt Albert RoadSandringhamAuckland 1025Private Bag 92169Auckland 1142Tel 09 925 7000Fax 09 925 7001

CLYDE990 Earnscleugh RoadRD 1, Alexandra 9391

DUNEDINDept of ChemistryUniversity of OtagoBox 56Dunedin 9054

HAWKE’S BAY30 Crosses RoadHavelock North 4130Private Bag 1401Havelock North 4157

KERIKERI121 Keri Downs RoadRD 1, Kerikeri 0294

LINCOLN74 Gerald StreetLincoln 7608Private Bag 4704Christchurch 8140

MARLBOROUGH85 Budge StreetBlenheim 7201PO Box 845Blenheim 7240

MOTUEKA55 Old Mill RoadRD 3, Motueka 7198

NELSON297 Akersten StreetPort NelsonNelson 7010Box 5114Port NelsonNelson 7043

PALMERSTON NORTHBatchelar RoadPalmerston North 4474Private Bag 11600Palmerston North 4442

PUKEKOHECronin RoadRD 1, Pukekohe 2676

RUAKURABisley RoadHamilton 3214Private Bag 3230Hamilton 3240

TE PUKE412 No 1 RoadRd 2, Te Puke 3182 WELLINGTONLevel 14Prime Property Tower86 Lambton QuayWellington 6111

AUSTRALIA

School of Agriculture and WineUniversity of AdelaideWaite CampusUrrbraeSA 5064, Australia

USA

430 F Street, Suite FDavis CA 95616, USA



AAid 8, 41, 48, 49Apple 22, 25, 35, 38, 42, 75, 77, 78, 79Aquaculture 9, 12, 30, 31, 32, 76Australia 4, 5, 6, 8, 23, 27, 29, 35, 47, 51, 69, 78, 112Avocado 6, 49, 57, 58, 77, 79

BBerry 23, 53Bioprotection 53, 73Blackcurrant 75Blueberry 23, 75Breeding 9, 22, 23, 24, 25, 31, 32, 35, 37, 40, 47, 57, 58, 73, 75, 76, 77

CCereal 6, 35China 8, 23, 27, 45, 47, 51, 75Cropping 4, 38, 58, 75, 76, 77, 79Cultivar 23, 24, 25, 40, 45, 75, 77

DDairy 27Disease 3, 8, 11, 17, 18, 23, 25, 27, 31, 34, 35, 36, 37, 39, 40, 49, 57, 75, 77

EEnvironment 15, 31, 35, 38, 39, 47, 53, 62, 77, 79Ethics 62, 69

FFinancial Statements 3, 81Food 1, 2, 3, 4, 8, 10, 11, 15, 17, 18, 19, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 35, 36, 37, 39, 40, 45, 46, 47, 48, 49, 52, 53, 55, 56, 57, 58, 59, 60, 61, 62, 64, 65, 68, 69, 71, 72, 73, 74, 75, 76, 77, 78, 79, 82, 117, 119Food Innovation 47, 73

GGenomics 31, 34, 64, 73, 75Governance 3, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79Government 4, 8, 11, 15, 28, 36, 37, 48, 52, 56, 58, 68, 74, 78

HHealth 8, 9, 11, 19, 22, 23, 26, 27, 28, 29, 31, 35, 36, 47, 48, 53, 57, 58, 60, 62, 68, 69, 73, 75, 76, 78Honey 8, 17, 27, 39, 58, 79

IInsect 35, 36, 37, 39, 78, 79

KKiwifruit 6, 8, 23, 24, 40, 45, 57, 58, 75, 77, 79

MMānuka 17, 25, 37, 65Māori 8, 9, 17, 24, 25, 29, 31, 36, 44, 46, 53, 58, 61, 73

NNational Science Challenge 27

PPea 6, 75, 77Pest 3, 18, 20, 34, 35, 36, 37, 39, 40, 77, 79Pipfruit 6, 57, 58, 75, 77, 79Potato 6, 23, 58, 66, 75, 76, 77, 78, 79

RRelationship 19, 27, 36, 46, 52Risk 15, 17, 19, 23, 28, 34, 35, 61, 68, 69, 78, 79

SScience 3, 4, 5, 7, 8, 9, 10, 15, 17, 18, 19, 21, 26, 27, 28, 29, 33, 36, 37, 44, 45, 46, 47, 52, 53, 54, 55, 56, 57, 58, 61, 62, 64, 65, 68, 69, 71, 72, 73, 74, 76, 79, 82, 116, 117Science Advisory Panel 3, 19, 54, 55, 68, 69, 71Seafood 3, 4, 5, 6, 9, 12, 17, 18, 19, 30, 31, 33, 58, 61, 64, 73, 76Seafood Technologies 9, 31, 61, 64, 73Senior Management Team 3, 15, 55, 72, 113Snapper 30, 31, 32, 76Staff 2, 4, 15, 17, 44, 46, 56, 61, 62, 63, 64, 65, 69, 79Strategy 2, 3, 8, 13, 18, 35, 36, 39, 45, 54, 55, 68, 71, 74, 75Summerfruit 6, 57, 58, 77, 79Sustainability 2, 8, 30, 35, 36, 38, 49Sustainable Production 38, 73

UUSA 4, 6, 15, 23, 37, 46, 47, 50, 112

VVegetables 18, 22, 26, 27, 29, 49, 58

WWellness 9, 18, 26, 53, 75, 76Wine 4, 5, 6, 17, 36, 37, 58, 75, 76, 77, 79, 112

INDEX


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Welcome to Plant & Food Research: Plant & Food …This report presents Plant & Food Research’s operating results for the financial year ending 30 June 2017. It meets our reporting