Horticulture Australia Limited

Strategic Plan 20122015

Contents
Horticulture at a Glance

Message from the Chairman

HALs Vision, HALs Purpose, HALs Stakeholders

Operating Landscape

HALs Strategic Goals 20002015

20122015 Strategic Objectives and Priorities

The Australian Government R&D Priorities

13

Governance Statement

15

Income and Expenditure (Forecast 20122015)

17

Glossary of Terms and Acronyms

19

HAL Members

20

Horticulture at a Glance

STRATEGIC PLAN 20122015

Horticulture is Australias fastest growing agricultural industry with a farmgate gross value of product increasing
by 50% between 2006 and 2012 to a current value of almost $9.9 billion.
Australias horticulture industries employ around one-third of those employed in Australian agriculture.
It represents 30,000 businesses nationally, and nearly $1 billion in exported products.
Horticulture includes fruit, grapes (dried and table), nuts, mushrooms, nursery, cut flowers, extractive crops,
turf and vegetables.
The major growing regions in Australia include the Goulburn Valley of Victoria, the Murrumbidgee Irrigation Area
of New South Wales, the Sunraysia district of Victoria/New South Wales, the Riverland of South Australia, northern
Tasmania, southwest Western Australia, the coastal strip of northern New South Wales, and Queensland. In broad
terms, approximately one-third of Australian horticulture is located in Queensland, with another third along the
southern Murray Darling Basin (MDB). Amenity horticulture (nursery and turf production, landscaping and urban
green spaces) generally occurs in, and close to, metropolitan centres.
Horticulture provides significant social and health benefits to the Australian community. Eating plenty of fruit and
vegetables is considered beneficial to good health and maintaining a healthy weight. Horticulture also contributes to
environmental, physical and psychological benefits through urban greenlife.
For all the benefits the horticulture industry provides, it also strives to ensure it has a relatively small environmental
impact. Australias horticulture producers are already leading the way in environmental management. The
horticulture industry is reliant on natural resources, especially water for irrigation, and as such is focused on
implementing best management practices to reduce its impact on these resources.
Horticulture Australia Limited (HAL) was formed in 2001 and is the declared Industry Services Body under Section
9 of the Horticulture Marketing and Research and Development Act 2000. It is a not-for-profit, industry owned
company operating under the Corporations Law and its company constitution.
HAL is funded by a combination of statutory levies, voluntary contributions, and commonwealth government
matching funds for eligible R&D and other sources such as royalties and investments.
At the time of its establishment, HAL had 29 members. Over the past 11 years this has grown considerably and as at
the beginning of 2012, HAL had 40 members (covering 43 industries). Of these, 21 have a statutory marketing levy
and a statutory R&D levy, and eight have a statutory R&D levy only. The remaining 11 members invest via voluntary
contribution programs.
The 40 members of HAL are the peak industry bodies (PIBs) of Australias major horticultural industries (Growcom
has both A Class (Pineapples) and B Class Membership).

Message from the Chairman

HAL has prepared this strategic plan as an integral part
of its governance oversight. Over the period of this plan,
HAL will invest some $300m in industry and Government
funds and it is appropriate that it has a robust and
transparent plan that indicates where those funds will be
invested and the basis for that investment. In addition,
HAL is required by its Statutory Funding Agreement with
the Government to have such a document.
HAL invests R&D and marketing levies, government
matching funds and other leveraged funds in activities
across the horticulture value chain from farmgate
to store shelf to get the best possible outcomes for
growers, the horticulture sector as a whole, and the
community.
HALs primary stakeholders are its Member industries and
levy payers, on whose behalf we invest, and the Australian
Government. HAL also considers its co-investors in
research and other cross sectoral investors to be important
stakeholders. To meet the needs of all its stakeholders,
HAL has liaised widely during the development of this
plan, which is the third strategic plan HAL has produced.
HAL recognises the importance the pathway to market
has on its industries viability and so has also sought
feedback from its supply chain stakeholders.
There is no overall strategic plan for the combined
horticulture sector in Australia. This is because of the
diverse nature of horticultures 43 industries. The
challenges facing each are varied and not all 43 industries
put the same priority on an issue at the same time. That
said, there are key underlying issues which are common
to all, or most, sectors and it is in these areas that the
majority of R&D and Marketing investments are made.
HAL is a banding together of like industries, some big and
some small, with the goal of achieving better outcomes
collectively than they could achieve as individual
industries. By aligning investment resources and sharing
information, HALs role is to assist horticulture industries
achieve productivity gains, grow and adapt to inevitable
change. One of HALs primary roles is to identify and
capture synergies that exist across different industry
sectors and build industry expertise while also delivering
R&D and marketing services that meet the individual
requirements of each of its member industries.
The key to meeting industry requirements is targeted
investment in R&D and marketing and the timely adoption
of the outcomes. The challenge in achieving this is to
ensure that each industry has relevant R&D and marketing
(where appropriate) Strategic and Annual Investment Plans
that reflect the needs and aspirations of growers and that
these plans are underpinned by a strong and transparent
governance framework and demonstrated performance
outcomes.
2

HALs major current across industry co-investments in the key

research areas of water use and carbon initiatives are coming
to the end of their funding cycle and will be reassessed and
prioritised for the 2012/13 financial year as part of the new
HAL Strategic and Transformational R&D program.
In this Strategic Plan, HAL has sought to streamline and
to some extent aggregate, the investment strategies and
outputs of the individual Strategic and Annual Investment
Plans for its Member industries. However, reference should
be made to each of the individual industry plans for the
detailed investments being undertaken by each industry.
Each year in its Annual Operating plan, commencing
2012/13, HAL will detail the investments planned by each
industry sector for the coming year.
Readers are encouraged to visit the HAL website
(www.horticulture.com.au) where details of each Industry
Strategic Plan and Annual Investment plan are available.

Selwyn Snell
Chairman

HALs Vision

STRATEGIC PLAN 20122015

HAL is accountable for the efficient and effective investment of industry and public funds in R&D and marketing.
HALs vision is for horticulture to provide a valued contribution to Australias national well-being, through the profitable
production of Australian grown, high quality and sustainable horticultural produce.

HALs Purpose
HALs purpose is to make R&D and marketing investment decisions, in partnership with industry, which build the value
of Australian horticulture and maximise benefits to levy payers, our Members industries, Government and the Australian
Public.
HAL achieves this purpose through:
Investing and administering funds in a consultative manner while advancing the best interests of Members and levy
payers; and
Ensuring appropriate R&D and marketing plans are prepared and implemented for the benefit of Members and levy
payers.

HALs Stakeholders
Unlike other RDCs, HAL does not have formal contact mechanisms with horticulture levy payers. HALs Constitution
requires that it works through horticulture Peak Industry Bodies, as representatives of levy payers, to achieve outcomes for
its Member industries.
HALs Peak Industry Body Members have ownership of the company and this is recognised through Member voting rights.
Given this unique situation, HAL has three primary stakeholder groups it must satisfy, being:
Members who are HALs primary stakeholder and owner;
Levy payers who are the ultimate beneficiary of industry and Government funds invested by HAL; and
The Australian Government which has reporting and governance requirements that HAL must satisfy for the funds it
invests.

Operating Landscape
Australias horticulture industries are operating in an
environment where competition for scarce resources is
becoming, and will continue to become, more of an issue.
Access to water, land and labour remain important to
productivity and are likely to become increasingly important.
Additionally, horticulture industries need to adapt to
operating in an environment that is being impacted by
climate change. Horticulture is inherently vulnerable
to climate change and climate variability because
of its dependence on natural resources, especially
water. Furthermore, all horticultural crops are sensitive
to temperature and most have specific temperature
requirements for the development of optimum yield and
quality.
Moderate temperature increases of approximately 1C are
predicted over the next 20 years or so. This is expected to
be accompanied by an overall decrease in rainfall across
Australia, with rainfall events becoming polarised based on
geography with the north becoming wetter and the south
increasingly dry.
Horticulture industries are already addressing these changes
by taking measures such as planting more adaptable
cultivars, changing the time of year for planting and
improving both irrigation and integrated pest management
practices. However, investment in R&D that enables
industries to continue to adapt to changes will be required
for the future sustainability of the industry.
While Australian horticulture is a minor emitter of greenhouse
gases (0.2% of Australias total emissions), investment in
mitigation strategies will increasingly form part of HALs
investment portfolio. Two of the desired mitigation outcomes
for Australian horticulture are reduced greenhouse gas
emissions from horticultural production systems, and
profitable horticultural production systems which contribute
to greenhouse gas abatement.
Aside from the physical impacts of climate change on
horticultural products and businesses, the industry is
operating in an environment where there is an increasing
global demand for food. The issue of food security and
Australia being able to play its role in feeding the world,
demands a greater level of productivity growth from
horticulture industries. Investment in productivity gains
remains the core of HALs program. Although this has been
highly successful up to the present, these gains are becoming
increasingly harder to achieve.
Not surprisingly, water and carbon emissions are a primary
concern for the Government and during the year HAL, along
with all other RDCs, received notification from the Minister for
Agriculture, Forestry and Fisheries to ensure that water and
carbon issues are adequately reflected in the long term R&D
planning for individual industries and collaboratively through
cross-sectoral and cross-RDC research opportunities.
4

Export remains a key priority for many horticulture industries

and looking out for the next three to five years, the 10-year
review of HALs export efficiency powers will be a substantial
influence for Member industry export programs.
Growing populations and increasing incomes in developing
countries, and particularly for those within our immediate
Region, are expected to strengthen the global demand
for horticultural produce. Australias track record as a
reliable supplier of quality produce means it is well placed
to benefit from these markets. The issues associated with
successful market access are integral to these industries and
underpinning R&D remains an investment imperative.
In addition to issues affecting production, Australias
horticulture industries are also operating in an environment
where the needs and preferences of the end consumer are
changing. For edible industries, consumer demographics are
contributing to a changing palate and to the way consumers
wish to interact with food. Improved understanding of food
storage and preparation present opportunities for developing
new products to meet those changing needs. For amenity
industries these opportunities are equally applicable in
understanding the requirements of consumers as they
interact with green space and amenity products in their
environment.
Against the backdrop of this operating environment, HAL
also has challenges to consider. As one of the 15 rural
research and development corporations, HAL is under
pressure from its key stakeholders, industry and government
to continuously become more efficient and effective in its
operations and in the benefits derived from its investments.
In response to this HAL is working to achieve greater
collaboration between horticulture industries, other RDCs
and other co-investors in the research and development
community to minimise duplication and to build on best
practice approaches wherever they exist.
Taking all these factors into account there remain two
constant priorities which have not diminished in their
importance in contributing to a productive, sustainable, and
profitable horticulture industry. These are the continued
importance of improving on-farm productivity, and
the creation of demand for horticultural produce, both
domestically and internationally. HAL believes these two vital
outcomes will continue to drive the investment focus for the
next three years.
While these core outcomes remain the priority, recent
changes in the Australian operating environment have
required a shift in the allocation of investment funds. Over
the next three years HAL, in collaboration with its Members,
will place increased emphasis on:
extending growers understanding of the value chain
beyond the farmgate to ensure they are positioned to
capture efficiencies. These programs fall particularly into

STRATEGIC PLAN 20122015

HALs Investment Progams associated with Value Chain

Efficiency and Enhanced Industry Capability (p11);
collaborating with other industries, as well as regional
and Australian governments, in developing effective
adaptation and mitigation strategies for climate change.
The increased emphasis here is under HAL Investment
Programs of Natural Resource Management, Best
Practice On-Farm Management and On-Farm R&D
Extension (p11);
supporting the demand for horticulture produce by
promoting the health and nutritional benefits of Australian
grown fruit and vegetables. Major HAL Investment
Programs that cover this increased emphasis are Promote
Health and Wellbeing and New Product Development
(p11); and
ensuring that the opportunities for uptake of R&D
are maximized by investing in tailored extension and
information sharing platforms and investigating new
pathways for information dissemination. Specifically
Members have increased their emphasis within the HAL
Investment Programs of On-Farm R&D Extension,
Targeted Communications and Enhancing Industry
Capability (p11).
In addition, increasing globalisation of commodities and
reducing trade (including phytosanitary) barriers are expected
to have a significant influence on the operating landscape for
Australian horticulture producers over the next three to five
years. As trade barriers fall, growers will be exposed to the
full impact of the pressures of globalization and competition
from imports. As with so many other Australian economic
sectors, some reshaping of industry sectors is inevitable.
However, globalisation brings with it enormous opportunity
to increase the export focus of Australian horticulture. The
next three years will see HAL and its Member industries
collaborate to prepare and implement a long-term, strategic
and transformational R&D program to deliver the information,
processes and programs to improve productivity,
sustainability and ensure Australian horticulture remains
profitable in the face of this change.
This will be the first strategic and transformational R&D
strategy for Australian horticulture industries and will
leverage technologies and information to provide horticulture
industries with a dramatically different value proposition to
address their long-term, critical R&D needs.
The need to address Australias high labour costs (and
potentially the impact of the ongoing high dollar) will be an
integral component of the transformational R&D strategy.
While the trend towards increasing corporatisation of
many high-volume industries is bringing with it increased
productivity and reduced reliance on labour that will see
them remain highly competitive, other industries that do not

have a sustainable biosecurity barrier or produce products

with a high value proposition, can be expected to struggle
and potentially be outcompeted by imports over the 10
years.
Biosecurity has been and will continue to be a significant
concern for horticulture. A major across horticulture project
that will deliver significant benefits to industry during the
reporting period is HALs investment in the Plant Biosecurity
CRC. HAL became a core partner in this venture during 2011.
The Plant Biosecurity CRC is a six year partnership of 23
participants across grains, horticulture and viticulture focusing
on:
driving better biosecurity innovation;
strengthening biosecurity preparedness;
new approaches for diagnosing bacterial pathovars; and
securing market access.
HAL and its Members are also addressing capacity and
capability within horticulture through investing in the Primary
Industry Centre for Science Education (PICSE), an initiative
to promote careers in agricultural and horticultural science in
schools. This investment is seen as important to halting the
decline in agricultural scientists in Australia.
There are a number of major Government policy initiatives
that will form part of the operating environment for Australian
horticulture industries over the coming three to five years,
and that HAL and its Member industries will need to address
as part of their R&D and Marketing investment strategies over
the life of this plan. They are:
the impending release of the Governments R&D
statement, responding to the Productivity Commission
Review and the Rural R&D Councils investment plan;
the impending release of the National Food Plan being
prepared by DAFF;
the National Primary Industries RD&E Framework and the
Horticulture RD&E Sector Strategy, both of which have a
strong focus on cross-RDC collaboration;
the National and Rural R&D priorities that are currently
incorporated into the R&D priorities addressed by every
HAL Member industry; and
the current roll out of the National Broadband Network
which can be expected to provide business opportunities
and facilitate information dissemination and onfarm
management initiatives.

HALs Strategic Goals 20002015

20002005
Meeting needs of consumers and
key customers.
Break down trade barriers and
develop new markets.
Enhance efficiency,
responsiveness and product
integrity in the supply chain.
Improve production efficiency
and sustainability in response to
market needs.
Provide quality, value for
services.

20052010
Consistently meet the
requirements of consumers and
key customers.
Break down trade barriers for
horticultural produce in export
markets.
Ensure consumers appreciate
the health-giving properties of
consuming fruit and vegetables.
Enhance efficiency,
responsiveness and product
integrity in the supply chain.
Improve industrys access to
water and efficient utilisation of
this resource.
Improve industrys access to
skilled resources.

20102015
Deliver new information and
knowledge.
Build consumer demand
(domestically and internationally).
Enhance industry skills and
capability.
Deliver operational excellence.

STRATEGIC PLAN 20122015

Strategic alignment between HAL and its member industries

While HAL is accountable for the investment of the levy,
industry and government funds, its annual investment plans
reflect considerable consultation and collaboration with
industries, both via peak industry bodies and with industry
directly through its industry advisory committee structure.

The focus of its Marketing and RD&E efforts originates from

the strategic and annual R&D and marketing plans for each
member industry. Program details in these plans are aligned
to industry priorities as well as to the National Rural Research
& Development Priorities. The HAL Strategic Plan should be
read in conjunction with the individual industry Strategic and
Annual Investment Plans upon which it is based.

Industry
Strategic
Plans

Industry
Strategic Investment
Plans

HAL
Strategic
Plan

Annual
Investment
Plans

Horticulture
Transformational
Investment Fund
Annual
Operating
Plan

20122015 Strategic Objectives and Priorities

Horticulture Australias investments will benefit industry and the community by:
1. Increasing knowledge that enhances the production, productivity, competitiveness and sustainability of Australian
horticulture; and
2. Increasing demand for Australian horticultural produce in domestic and international markets.
These strategic outcomes will be delivered via three programs in which HAL will invest approximately $300m on behalf of
its 43 industries. Individual projects associated with HALs investment programs can be found in the R&D and Marketing
investment plans for HALs 43 industries.
The strategic priority of Deliver Operational Excellence underpins HALs internal operations. The planned outcomes and
measures are outlined as part of the table below. The costs associated with this program have been allocated as per Note 1.
However, details can be found in the HAL Annual Operating Plan 2012/13.

HALs investment

priorities

programs

Increase demand

Best practice
on-farm
management

Deliver new
information
and
knowledge

Natural resource
management
Value chain
efficiency
New product
development

Increase knowledge

Domestic
marketing
program
International
market access

Build
consumer
demand

Promote health
and wellbeing
New product
and market
development

Outcomes

Measures

Increased productivity

Demonstrated tonnage increases per

unit of input

Sustainable improvements
in resource use efficiency
and profitable businesses

Ongoing farming activities with few

resource management issues

Increased opportunities
to improve on-farm and
offfarm profitability

Greater use of key advances in

knowledge and technology that allow
increased structural change

Identification and
creation of new product
opportunities

Commercialisation of more novel

horticultural ventures

Increased food security

Supporting the domestic production

base with adoption of risk mitigation
farm practices

Demand for Australian

grown produce

Fruit and vegetables taking a larger

share of the household spend

Increased access to
overseas markets of choice

Greater market access success through

greater collaboration with government,
and developing an exporting culture in
horticulture

Community understanding
of wellbeing issues
Increased understanding
and adaptability to
changing demand

Communication programs directed at

informing how horticulture products
can assist in reducing the incidence of
obesity and related diseases such as
cardiovascular disease, diabetes mellitus,
and hypertension
Demonstrated responsiveness using
contemporary data that informs of
consumer trends and purchasing
patterns

$/%*

$172m
54%

$105m
33%

See individual industry strategic inevstment plans

Three strategic

STRATEGIC PLAN 20122015

Three strategic

HALs investment

priorities

programs

Enhance
industry
skills and
capability

Outcomes

Measures

On-farm R&D
extension
program

Increased confidence
to make planning and
investment decisions

Greater engagement of training

and leadership initiatives, and the
interpretation of key data sets

Investing in
people

Adoption of new
technology made easier,
faster

Facilitation of more emerging

technology diffusion initiatives

Targeted
communications
Enhancing
industry
capability

Keep, grow and attract

talent in horticulture and
horticulture science
Access to decision making
tools

$/%*

More students and graduates selecting

agriculture and horticulture as a career
choice

$40m
13%

Emergence of more horticultural leaders

from industry leadership and finance
training

Enhanced capability in
industry organisations

Robust business
approach
Industry and
community
engagement
Leverage cross
industry and
RDC synergies

Deliver
operational
excellence

An effective and efficient

structure that satisfied
the requirements of
government and Members
An evaluation framework
that guides good decision
making processes based on
robust strategic R&D and
marketing plans
Industry and key
stakeholder advisory
networks that work
effectively with HAL to
deliver to industry and
community expectations
Established investment
plans and mechanisms
that create and leverage
investment synergies
An organisational
culture the drives
operational performance
and considered to be
positive, constructive and
professional

All Member industries achieving their

R&D and marketing objectives as set out
in their respective strategic plans
All A class Member industries have in
place five-year strategic R&D investment
plans by June 2013
All B class Member industries will have
completed five-year strategic R&D
investment plans by June 2013
An annual evaluation of eligible projects
and industry portfolios demonstrates a
positive ROI
Multi-industry, cross-industry, crosssectoral investment of 10% of HALs total
R&D investment
Identification and investment in
transformation R&D that will address
strategic issues facing the majority of
horticulture industries in the next 10 years

See
Note 1

HALs governance framework complies

with government and statutory
requirements

See AOP 2012/13 for further details

Organisational
performance

HALs R&D and marketing services

processes and operational outcomes
exceed stakeholder expectations
Increased co-investment in horticulture
by major research agencies including
NHRN
Member industries increased support for
National RD&E strategy
* 20122015 $ and % of total investment

Notes
1. HALs corporate costs have been allocated proportionately against each of the three strategic priorities above: that is, in the proportion of
54%: 33%: 13%.
2. Communication projects across the HAL investment portfolio have been reviewed and expenditure allocated across HALs Investment
Programs according to the expected project outcomes.Previously, communication project expenditure had been allocated 100% to the
strategic priority of Enhance Industry Skills and Capability. The new communication project allocation methodology more appropriately
reflects the expected outcomes of the projects.
3. This methodology effectively distributes approx $2.5m pa from targeted communications and on farm R&D extension to other
Investment Program areas primarily best practice on farm management.

Strategic Objectives and Priorities 2012/13

Strategic Priority 1 Deliver new information and knowledge
Program 1

Program 2

Program 3

Program 4

Invest in best practice

on-farm management.

Promote awareness and

improve natural resource
management.

Increase opportunity to
improve on-farm and
offfarm profitability.

Identify opportunities for

the development of new
products.

Challenge

Investments

Outcomes

Access to natural resources is

fundamental to the success of industry
now and into the future. Natural
resource management continues to
increase in priority and importance
particularly in relation to water
availability and the impacts of climate
change variability on sustainability.

Programs that deliver pertinent

information that allows better
informed decisions.

Industries have an understanding

of climate change issues and
impacts and natural resource
challenges are addressed at an
industry and at a cross sectoral
level.

Horticulture industries must be

consumer-focused and this can only
occur where there is transparency of
information along the supply chain.
A key priority will be developing the
tools to allow growers to move beyond
a focus on supply/demand flows and
to better understand the relationships
along the supply chain so they can
maximise value and volume.
Consumers are maturing in their
sophistication and expectations.
Industry is improving its product
development efforts in response to this
change in domestic consumption and
to meet the new demands of export
markets. HAL will continue to invest in
research and marketing that enables
new product from inception to delivery.

10

Industry leadership programs

that build a pool of horticultural
thought leaders.
Programs that build on the
awareness of the environmental
footprint of horticulturalists.
Greater networking opportunities
through conference attendance
and study tours.
Best practice farm management
manuals that enhance
dissemination of program
outcomes.

Knowledge and tools that help

inform growers and industries to
increase confidence and promote
adaptability, as well as improve
farm productivity.
Provide growers with knowledge
and tools to quickly recover
from natural disasters/unplanned
events.
Industry support for cross-sectoral
coordination of NRM and climate
change initiatives.
Adaptable and profitable
production systems.

STRATEGIC PLAN 20122015

Strategic Objectives and Priorities 20122015

Strategic Priority 2 Build consumer demand
Program 1

Program 2

Program 3

Program 4

Increase demand for

domestic consumption.

Increase access to overseas

markets of choice.

Promote health benefits of

increased consumption of
horticulture produce.

Increase knowledge of and

adaptability to industry
to meet new consumer
demands.

Challenge

Investments

Outcomes

Consumption of domestic grown

produce is increasing year on year and
so is the value of imported product.
The challenge remains to understand
and address consumer behaviour and
perceptions, as well as increase the
frequency of consumption. HAL will
continue to gather information and
refine its understanding and use this to
support industry to drive consumption
of Australian produce.

Funding the Office of Horticultural

Market Access to facilitate and
provide advice to government
on new and potential overseas
markets.

Market demand driven R&D

investment.

The reputation of Australian horticulture

products around the globe is of quality,
however many markets remain closed
due to trade barriers or for biosecurity
reasons. A coordinated approach is
required to ensure Australian horticultural
exporting industries are successful in
accessing international markets of choice,
and building consumer demand for
Australian produce in those markets.

Programs that highlight and

reinforce the nutritional benefits
of fruit, nuts and vegetable
produce through credible health
professional training.

Programs that work closely with

major retailers in showcasing
the benefits of fruit, nuts and
vegetable in advocating a more
healthy lifestyle and overall
wellness.

The provision of up-to-date

purchasing trends that can be
used by the supply chain to
improve production and/or better
coordinate supply.

Greater investment by value-chain

organisations that improve time
and quality of produce to market.
Increased consumption of
horticulture fresh produce based
on health and nutrition benefits.
Co-investment addressing
biosecurity/phytosanitary barriers
to expanding Australian exports.
Key partnerships developed with
health professionals to provide
credible and relevant data which
promotes the health and wellbeing
attributable to consumption of
fresh horticulture produce.
Value-chain risks are understood
and mitigation strategies adopted.

Individual industries have significantly

increased their awareness raising
activities over the last five years.
There has been a growth in marketing
campaigns as well as research to
understand and quantify the health
benefits of eating fruit and vegetables.
Promoting health and wellbeing will
continue to be a major strategic lever
to increase consumption and return
health benefits to the community.
Australian growers are confident,
adaptable and successful at predicting
and responding to consumer
expectations, however there are still
untapped opportunities to be realised.
HAL will continue to put effort into
research and marketing that ensures
the success of new products including
new and non-traditional by-products,
and new markets.
11

Strategic Objectives and Priorities 2012/13

Strategic Priority 3 Enhance industry skills and capability
Program 1

Program 2

Program 3

Program 4

Improve adoption of
new information and
technology.

Invest in programs that

attract and retain talent in
horticulture.

Ensure targeted
communication programs
that enhance access to new
knowledge and increase
adoption.

Promote leadership,
capability and pathways that
create increased capacity
and opportunities.

Challenge

Investments

Outcomes

Continued innovation and the adoption

of R&D outcomes by growers depends
on grower access to and application
of user-friendly information. To
complement the traditional industry
development officer framework, this
strategy explores new pathways to
extending technology and ideas so that
the latest information is transferred and
is easily understood.

Industry case studies of successful

dissemination and adoption.

Industry leadership and

collaboration is enhanced.

More efficient industry

communication programs utilising
a number of delivery tools.

Increased career and leadership

opportunities for people in the
horticulture sector.

These programs have focussed on

the development of tools and access
to experience that enhances growers
understanding of best practice on-farm
management and the broader business
landscape. As many industries become
more technologically complex, it is
important to maintain and retain skilled
farmers and managers, as well as attract
newcomers to the horticulture industry.
It is also vital that industry attract
science graduates.
The speed at which outcomes are
communicated impacts industry
ability to respond effectively and
efficiently. Topic and industry specific
communication activities, as well
as face-to-face engagement and
information sharing, will encourage not
only uptake but also an appreciation of
the overall investment in ongoing R&D.

12

Programs that promote and

demonstrate the greater
use of more contemporary
communication and data
management tools in daily
horticultural decision making.
Ongoing investments in PICSE
and the Nuffield programs to build
the pool of graduates and provide
career personal development.
Programs that assist IDOs and
Industry personnel to develop
their extension and delivery skills.

Investment framework aligns to

and enhances the RD&E capacity
of co-investors in horticulture R&D.
Enhanced services available to
Industry.
Effective risk management and
business planning delivered to
growers in targeted, technically
appropriate way.
Implement review of
communication pathways to ensure
effectiveness to growers/adopters
of R&D.
The adoption of online
technologies to deliver information
transfer and extension activities.

The Australian Government R&D Priorities

STRATEGIC PLAN 20122015

HALs investment in R&D is derived from levies, industry contributions and Australian Government matching contributions
for eligible R&D expenditure. The support provided by the Government enables HAL to leverage grower levies and the
investment into future research.
HALs investments are based on the Australian National Research Priorities as well as the Rural R&D Priorities. The National
Priorities highlight areas of social, economic or environmental importance to Australia. These priorities address areas of
strength, opportunity or need in Australian research.
The Rural R&D Priorities aim to foster innovation and guide R&D effort in the face of ongoing change. Horticulture Australias
investments reflect these priorities, the dynamic nature of the global market and the needs of Australian industries.

Relationship of National and Rural R&D Priorities with HAL Investment Program
National Research Priorities

Rural R&D Priorities

HALs Investment Program

Promoting and maintaining good

health through strengthening
Australias social and economic fabric
and preventive healthcare (healthy
food production)

Productivity and Adding Value

Improve the productivity and profitability
of existing industries and support the
development of viable new industries

Best practice on-farm management

An environmentally sustainable
Australia

Supply Chain and Markets

Better understand and respond to
domestic and international markets and
consumer requirements and improve
the flow of such information through
the whole supply chain, including to
consumers
Natural Resource Management
Support effective management of
Australias natural resources to ensure
primary industries are both economically
and environmentally stable
Climate Change and Climate Variability
Build resilience to climate variability
and adapt to and mitigate the effects of
climate change

Natural resource management

Value chain efficiency
New product development
Domestic marketing program
International market access
Promoting health and well-being
New product and market development
On-farm extension of R&D
Investing in people
Targeted communications
Enhancing industry capability

Biosecurity
Protect Australias community, primary
industries and environment from
biosecurity threats

Horticulture Industry Priorities

Supporting Rural R&D Priorities

Safeguarding Australia
Frontier technologies for building and
transforming Australian industries

Innovation Skills
Improve the skills to undertake research
and apply its findings

Priorities determined from 31 IACs

Technology
Promote the development of new and
existing technologies

13

Alignment to the Australian Government R&D Priorities

Horticulture Australias investment against its Strategic Priorities 20122015

13%

Deliver new information and knowledge

13%

Build consumer demand

Enhance industry skills and capabilities

33%

54%

Deliver new information and knowledge

Build consumer demand
Enhance industry skills and capabilities

33%

54%

Alignment of Horticulture
Australias investment to the Rural R&D Priorities 20122015
9%
32%
12%

Supply chain and markets

Natural resource management

9%
11%

32%

12%
5%
11%

Productivity and adding value

8%

23%

Climate variability and climate change

Productivity and adding value
Biosecurity
Supply chain and markets
Innovation skills
Natural resource management
Technology
Climate variability and climate change
Biosecurity
Innovation skills

5%
8%

14

23%

Technology

STRATEGIC PLAN 20122015

Governance Statement
The HAL Board

Executive Team

The HAL Board sets strategic direction within

the requirement of the companys constitution,
theCommonwealth Funding Agreement and the
Corporations Act 2001.

The HAL Executive Team comprises the CEO, the General

Manager Finance & Corporate Services and Company
Secretary, the General Manager of Corporate Affairs, the
General Manager of Marketing Services, the Manager of
Human Resources, the General Manager of Industry Services,
the General Manager of Research and Development and the
Chief Financial Officer.

The Board is responsible for all matter relating to

corporategovernance, the policies of the company and has
oversight of its management and operational performance.
It strives to create member value by constructively engaging
with management to ensure the appropriate development,
execution and monitoring of the companys agreed
strategies.
The Boards functions include:
setting company policy;
appointing the CEO and providing direction on the
appointment, remuneration and evaluation of executive
management;
approving major strategies, plans and budgets;
assessing and reviewing company performance;
responding to management initiatives and
recommendations;
ensuring the company acts legally and responsibly on all
matters and to the highest ethical standards;
ensuring business risks are appropriately identified and
managed.
It is comprised of eight non-executive directors, one of
whom is appointed by the other directors as the Chair.
Each non-executive director holds office for three years
after which time their position becomes vacant. A retiring
director is eligible for re-appointment.
A Director Selection Committee (DSC) comprised of
representatives of HAL Member organisations, is charged
with providing a recommendation to the Board on
candidates for appointment to the Board. Members vote in
the annual general meeting to elect directors to the Board.
Normal meetings of the Board are held at approximately
six-weekly intervals but additional special meetings may be
held, when necessary, to discuss matters of an urgent or
significant nature. At these meetings the Board considers
major issues which, in accordance with board policy, require
board endorsement.
The Board has established sub-committees, each with its
own documented charter, to assist in the good governance
of the Company, to facilitate detailed consideration of major
issues, and to provide advice on sensitive matters. The
role and composition of the sub-committees are reviewed
regularly as part of the annual review of board performance.

The Executive Team work under the direction of the Board

to develop and implement strategy, manage the day to day
operations of the company and to ensure ongoing productive
Member and stakeholder relationships.

Industry Advisory Committees

IACs are established for each industry with levy receipts of
greater than $150k. IACs, along with PIB Members, represent
HALs major conduit to industry growers and are HALs
key advisory mechanisms for the investment of R&D and
marketing funds for each industry.
Each IAC has an independent Chair that is appointed by HAL.
Over the period of this Strategic Plan, the composition and
operation of IACs will be reviewed to ensure its membership
complies with the requirements of good governance as set
out in the Statutory Funding Agreement with the Department
of Agriculture, Forestry and Fisheries and in correspondence
on this matter between HAL and the Department during
2012.
Each industry is required to have a satisfactory Strategic
and Annual Investment Plan for its R&D and marketing
investments. These plans are approved by the HAL Board
and published on the HAL web site.
IACs are required to work within the parameters set out in the
approved R&D and marketing programs in the Strategic and
Annual Investment Plans.

Evaluation methodology
HAL has been a long standing participant in the CRRDC
evaluation process where ex-post evaluations are completed
externally. These ex-post evaluation findings have provided
a good understanding to both industries and HAL of return
on investment in key areas of R&D. This complements the
internal ex-ante evaluations done internally.
More recently, a triple bottom line internal ex-post evaluation
has been initiated on 5%, of projects completed in the last
five years (70 projects). The evaluations will also help to
assess the gap between the ex-ante and ex-post evaluations
and provide the HAL Board with an increased understanding
of the returns on investment. Asimilar approach will be used
for the Marketing projects. It is estimated that $56.18 million,
or 13.22% of the total investment over the last five years will
15

Governance Statement
be evaluated in this manner. The above sample selection
method will be consistent with the CRRDC guidelines.

Cross RDC investment

The key areas of cross RDC interaction are through the
Plant Biosecurity CRC, where horticulture industries are
collaborating with both grains and viticulture industries.
HAL has been involved in the development of the PISC
Water Use in Agriculture Strategy and in winding down
the NPSI program. Other ongoing cross RDC collaborative
programs are the CRSPI program, the RIRDC-managed Life
Cycle Analysis program, and HAL taking the lead role for
horticulture (with wine grapes, olives, coffee) for the Carbon
Farming Futures program.
At this early stage, HAL has little cross RDC input into carbon
related programs, largely because of the very different
practices across horticulture industries, making it difficult to
find a common thread for the role of carbon in production.
Given the Australianj Governments focus on reduction
of carbon emissions, HAL will be actively seeking cross
sectoral opportunities amongst its Member industries. In
addition, HAL will also seek benefits from working with other
agricultural sectors whose intensive practices closely reflect
those in horticulture, such as cotton, dairy.

16

Export Efficiency Powers

HAL administers the Export Efficiency Powers for horticulture
under the Horticultural Marketing and Research and
Development Services Act 2000, in consultation with the
Department of Agriculture, Forestry and Fisheries.
These Powers are exercised through the issuing of a Licence
Conditions Document that sets out the compliance criteria for
licensees exporting to destinations covered by the Powers.
The Licence Conditions Document may be amended as
necessary to ensure that the Powers are effective and meet
the desired outcomes for the industry.
Consistent with the Deed of Agreement between the
Commonwealth of Australia and HAL, there is an obligation
on HAL to undertake:
an Annual Review, conducted by HAL in consultation with
the industry sectors subject to the Power;
a Three Year Review conducted with DAFF; and
a Ten Year Review which is conducted by the
Government.

Income and Expenditure (Forecast 20122015)

Horticulture Australias funding comes from grower levies,
voluntary contributions and government matching funds
on eligible research and development expenditure. Other
minor sources of income include interest and royalty income.
Horticulture Australia funds its corporate operating costs by
charging a % margin across all projects it administers and
seeks to frame its annual operating budget against expected
income while maintaining appropriate corporate reserves.
Maintaining corporate reserves enhances the companys
ability to respond to changes as they occur.
In forecasting the companys income and expenditure the
following assumptions have been made:
The farm-gate gross value of production (GVP) will grow
by 3% per year on average.

STRATEGIC PLAN 20122015

There is always the risk that circumstances could lead to

a significant fall in levy income coming from one industry
or a region however this risk have been factored into the
forecast.
The Board will continue to maintain corporate reserves of
no less than $3 million with a targeted level of $5 million.
Any operating surplus in the R&D program will be used
to offset the CCR charged to the Across Industry Program
to allow for further investment in cross sectoral and cross
industry R&D.
Eligible Voluntary Contributions can be collected and
matched with government funds.

Horticulture Australia Limited Financial Summary

Forecast
2011/12

Budget
2012/13

Estimate
2013/14

Estimate
2014/15

Levy income

35,853,936

39,676,476

40,866,770

42,092,773

VC income R&D

17,893,099

14,592,946

14,884,805

15,197,386

Matching funds R&D

42,000,000

43,000,000

44,290,000

45,618,700

2,013,598

1,489,400

1,534,082

1,580,104

97,760,633

98,758,822

101,575,657

104,488,964

6,434,320

6,543,242

5,561,756

5,672,991

104,194,953

105,302,064

107,137,413

110,161,954

Program expenditure Levy

56,396,612

67,103,134

68,445,197

70,840,779

Program expenditure VC

34,108,640

24,481,588

24,726,404

24,973,668

90,505,252

91,584,722

93,171,601

95,814,446

1,524,099

1,563,225

1,610,122

1,658,425

11,818,365

11,954,835

12,253,456

12,577,455

103,847,716

105,102,782

107,035,178

110,050,326

347,237

199,282

102,235

111,628

INCOME

Other income
Total income before reserves transfers
Transfer from/(to) industry reserves
Total income
EXPENDITURE

Total program expenditure

Levy collection costs
Corporate expenditure
Total expenditure
Net income for the year

17

Income and Expenditure (Forecast 20122015)

Corporate Expenditure
Forecast
2011/12

Budget
2012/13

Estimate
2013/14

Estimate
2014/15

7,510,160

7,746,174

7,939,828

8,138,324

Occupancy expenses

716,181

762,086

781,138

800,667

Operating costs

635,747

739,658

761,848

784,703

Depreciation

337,894

277,278

285,596

294,164

Travel and accommodation

659,844

681,337

701,777

722,830

Program management

340,562

305,894

312,012

321,372

Communication

137,620

135,985

138,705

142,866

Professional fees

574,829

461,370

470,597

484,715

Board costs

684,323

705,016

719,116

740,690

Governance costs

221,205

140,037

142,838

147,123

11,818,365

11,954,835

12,253,456

12,577,455

Human resources

Total corporate expenditure

18

Glossary of Terms and Acronyms

Acronym

Explanation

ABARE

Australian Bureau of Agricultural and Research Economics

AIP

Annual Investment Plan

ALPM

Annual Levy Payer Meeting

AOP

Annual Operating Plan

BCA

Benefit Cost Analysis

BSC

Board Subcommittee

Cap

Maximum Commonwealth matching funds in any one year 0.5% of GVP

CCR

Corporate Cost Recovery

CRRDC

Council of Rural Research & Development Corporations

CCRSPI

Climate Change Research Strategy for Primary Industry

DAFF

Department of Agriculture, Fisheries & Forestry

DFAT

Department of Foreign Affairs & Trade

DPI

Department of Primary Industry (State Government Departments)

DSC

Director Selection Committee

GVP

Gross Value of Production

HAL

Horticulture Australia Limited

HALO

HALs project database and online application system

HMAC

Horticulture Market Access Committee

IAC

Industry Advisory Committee

IDO

Industry Development Officer

IMC

Industry Management Committee

IRB

Industry Representative Body

LRS

Levies Revenue Service

NHRN

National Horticultural Research Network

NPSI

National Program for Sustainable Irrigation

OHMA

Office of Horticulture Market Access (replaces HMAC)

PIB

Peak Industry Body

PISC

Primary Industries Standing Committee

R&D

Research & Development

RD&E

Research, Development & Extension

RDC

Research and Development Corporation

RIRDC

Rural Industries Research and Development Corporation

VC

Voluntary Contribution

STRATEGIC PLAN 20122015

19

Strategic
HAL
Members
Objectives and Priorities 2012/13
Australias horticulture growers
are represented by various
industry representative bodies.
Each of these bodies represents
the interests of their growers
and the development of their
respective industries.

A CLASS MEMBERS
Almond Board of Australia
Apple and Pear Australia Ltd (APAL)
Australian Banana Growers Council Inc (ABGC)
Australian Lychee Growers Association
Australian Macadamia Society Ltd
Australian Mango Industry Association Ltd (AMIA)
Australian Mushroom Growers Association Ltd (AMGA)

As at 30 June 2012 the

following organisations are
members of HAL.

Australian Nashi Growers Association Ltd

A Class members are industry

representative bodies who
contribute statutory levy funds
to HAL.

AUSVEG

B Class members are industry

representative bodies who
collect or arrange for their
members to contribute
voluntary levies or contributions
which are paid to HAL.

Custard Apples Australia Inc

Australian Onion Industry Association Inc

Australian Papaya Industry Association Ltd
Australian Table Grape Association Inc
Avocados Australia Ltd (AAL)
Cherry Growers of Australia Inc (CGA)
Chestnuts Australia Inc
Citrus Australia Ltd (CAL)
Dried Fruits Australia Inc
Growcom (as representative of Pineapple Growers Association)
Nursery & Garden Industry Australia (NGIA)
Passionfruit Australia Inc
Persimmons Australia Inc.
Potato Processing Association of Australia (PPAA)
Raspberries and Blackberries Australia Inc
Strawberries Australia Inc
Summerfruit Australia Ltd
Turf Producers Association Ltd

B CLASS MEMBERS
Australian Asparagus Council
Australian Blueberry Growers Association Inc
Australian Garlic Industry Association Inc
Australian Melon Association Inc
Australian Nut Industry Council Inc
Australian Processing Tomato Research Council Inc
Australian Sugar Plum Industry Association
Australian Walnut Industry Association
Canned Fruits Industry Council of Australia
Growcom
Hazelnut Growers of Australia Inc
Pistachio Growers Association Inc
PMA Australia-New Zealand Limited (PMA)
Tasmanian Farmers and Graziers Association Pyrethrum Growers Group (TGFA)

20

Horticulture Australia Limited

Level 7, 179 Elizabeth Street Sydney NSW 2000
T 02 8295 2300 F 02 8295 2399
www.horticulture.com.au