INTRODUCTION 1 ANNUAL REPORT

20142015

2015
Australian Export Grains Innovation Centre

ANNUAL REPORT

Australian Export Grains Innovation Centre

Pusat Inovasi Biji-Bijian Ekspor Australia
Meningkatkan daya saing biji-bijian Australia di tingkat internasional
melalui ilmu pengetahuan, teknologi dan inovasi.

Trung tm Ci cch Xut cng Ng cc ca c

Gia tng tnh cnh tranh trn trng quc t cc loi ht ng cc
ca c nh khoa hc, k thut v canh tn

Australian Export Grains Innovation Centre

Enhancing the international competitiveness of Australian grain through
science, technology and innovation.

Australian Export Grains Innovation Centre

All contents copyright AEGIC. All rights reserved.
The related bodies corporate, directors and employees of AEGIC accept no liability whatsoever
for any injury, loss, claim, damage, incidental or consequential damage, arising out of, or in
Enhancing
any way connectedthe with, international competitiveness
the use of any information, or any, error, omission orof Australian
defect in the
information contained in this publication. Whilst every care has been taken in the preparation
grain through science, technology and innovation.
of this publication AEGIC accepts no liability for the accuracy of the information supplied. Australian Export Grains Innovation Centre
 INTRODUCTION 3 ANNUAL REPORT
20142015

CONTENTS

Our values and story 4

Chairmans report 6

20142015 highlights 12

Market and competitor intelligence 14

Innovation 16

Extension 18

Collaboration 20

AEGIC Board 22

Organisational chart 24

Financials at a glance 26

Financial statements 27

AEGIC resource projects for 20152016 40

Australian Export Grains Innovation Centre

OUR VALUES AND STORY

ANNUAL REPORT
20142015 4

AEGIC VISION
To enhance the international competitiveness of Australian
grain through science, technology and innovation.

AEGIC MISSION
Enhance the value capture by export grain producers
through national leadership and coordination in research
directed at export grain quality, functionality, processing
innovation and market and supply chain analysis.

AEGIC VALUES
Integrity and respect

Leadership

Innovation

Collaboration

Excellence

Australian Export Grains Innovation Centre


OUR STORY
The Australian Export Grains Innovation Centre
(AEGIC) was formed in 2012 to provide national
research leadership and strong international linkages
to export markets. AEGIC is a vibrant hub of science,
technology and innovation focussed on increasing
the competitiveness of the Australian grains industry
through improved productivity and product value in
export markets.
AEGIC supports the trade and use of Australian grains
around the world through cutting-edge grain quality
and processing technology and market research
innovation. AEGIC works with key stakeholders
across the supply chain ranging from Australian grain
producers, plant breeders, marketers and traders to
millers, processors and consumers in export markets.
Grain is one of Australias most valuable exports,
delivering more than $5 billion in export income to
the Australian economy each year. Wheat is Australias
largest export grain followed by barley, canola and
pulses. These crops are the focus of AEGICs work in
the grains sector.
OUR VALUES AND STORY 5 ANNUAL REPORT
20142015
Australia is the fourth largest wheat exporter in
the world, contributing 15 per cent of total world
trade and sending grain to more than 40 countries
each year, particularly Asia and the Middle East.
AEGICs headquarters are based in Perth, Western
Australia, the largest grain exporting state. AEGIC
is a national body with confirmed partnerships
including the Queensland Alliance for Agriculture and
Food Innovation, and the Department of Economic
Development, Jobs, Transport and Resources, Victoria.
AEGIC provides value to the industry by:
Providing global market intelligence to the
Australian grain industry on emerging market
trends; functionality requirements and
opportunities.
Using accumulated market intelligence to carry out
targeted grain quality and processing research,
development and extension to continue to meet
our international customers requirements.
AEGICs members are the Grains Research and
Development Corporation (GRDC) and the WA State
Government, through the Department of Agriculture
and Food, Western Australia (DAFWA).
Rob Delane, Keith Perritt, Terry Redman
and Robert Sewell at the Launch of
AEGIC during 2012
Department of
Agriculture and Food
AEGIC is an initiative of the Western Australian
State Government and Australias Grains
Research and Development Corporation
Australian Export Grains Innovation Centre
CHAIRMANS REPORT
ANNUAL REPORT
20142015 6
CHAIRMANS REPORT
Terry Enright
During the first half of 2015, AEGICs
Members the Grains Research and
Development Corporation (GRDC) and the
Department of Agriculture and Food, Western
Australia (DAFWA) reaffirmed their support
for AEGIC extending funding arrangements
until 2020.
This extended commitment to AEGIC by
our Members until 2020 has provided the
opportunity to plan further ahead and focus
AEGICs efforts.
The decision came after a review process
carried out by a panel of three independent
In my view our individuals with knowledge and experience
across the grains supply chain. The
industry cannot review included carefully examining
AEGICs activities and operating plans; and
function to its interviewing industry stakeholders, ranging
from traders and marketers to researchers
potential unless all and breeders. This process also involved
measuring AEGICs value with international
members of the customers of grain.
value chain work It is immensely pleasing that following
this thorough assessment of AEGICs value
together proposition, AEGICs role was endorsed by
our Members and the greater grains sector.
Specifically this affirmed role is to carry out:
Independent technical support and a
point-of-contact for international grain
customers and processors;
Grain quality and functionality research,
development and extension and capacity
building initiatives;
Independent reporting of medium and
long-term global demands for Australian
grain.
Industry consensus
An important part of the industry
consultation was for representatives of
the sector to come together and agree on
what industry players are best placed to
provide what services to support our export
grains industry. This was facilitated by the
Australian Grains Industry Discussion Group
(AGIDG).
Australian
Australian
Export
Export
Grains
Grains
Innovation
Innovation
Centre
Centre
The main objective of the discussion
was to ensure Australia is providing the
customer support services expected by
our international markets.
AEGICs role in this was identified in the
points above. These endeavours will
complement the trade in the marketing
and selling of Australian grain, and the
other parts of the puzzle, including
market access, trade negotiations,
classification and biosecurity.
In my view our industry cannot function
to its potential unless all members of
the value chain work together to share
knowledge and findings, discuss strategy
and most importantly further the mutual
objective of enhancing the value of
Australias export grain.
In having these discussions I feel the
sector is well on track to making such
collaboration happen.
Communicating with industry
A significant focus of AEGICs operation
this year has been increasing our
engagement with stakeholders. AEGICs
stakeholders are many and diverse.
Domestic stakeholders span the research
sector, trade and marketers, agribusiness,
government and policy developers and of
course Australian grain growers.
Internationally AEGIC works with
government agencies, grain procurers,
processors such as millers and brewers,
as well as research bodies.
To ensure we are communicating regularly
with the industry and in an effective
manner AEGIC developed a comprehensive
stakeholder management plan. The plan
outlines AEGICs value proposition for each
group and the mechanisms for connecting
in regards to this.
Importantly the approach expresses a
commitment to monitor the success of
engagement with industry and to swiftly
act to improve it when we are found
lacking.
 CHAIRMANS REPORT 7 ANNUAL REPORT
20142015

As the global grain market place increases in its

dynamism, customer service will become a point
of differentiation

Our Members review into AEGICs
operations provided a fantastic opportunity
to work with our stakeholders to determine
consensus on where AEGIC should focus its
efforts.
Technical support is also highly valued AEGIC is working on better understanding
by our customers, i.e. demonstrating the offerings of our competitors with the
the capability of Australian grain in aim of increasing our competitive position
laboratories, bakeries and breweries. (see Figure 2).

Collaborations
From its establishment a priority has Figure 1 AEGIC formal collaborations 2014-2015
been forming partnerships across AEGICs
key priority areas grain quality and 35
processing research and development
30
and market intelligence gathering and
reporting.
collaborations finalised

25
Number of strategic

During 20142015 AEGIC made more

20
progress on this front (see Figure 1).
AEGIC and GrainGrowers are now preparing 15
the 2015 Wheat Quality and Variety Report
10
which will be the second joint report.
AEGIC has also confirmed partnerships with 5
the Queensland Alliance for Agriculture 0
and Food Innovation; Department of 14 14 4 4 4 4 4 5 5 5 5 5 5
Jun Jul g 1 ep 1 Oct 1 ov 1 ec 1 Jan 1 eb 1 ar 1 pr 1 ay 1 Jun 1
Economic Development, Jobs, Transport Au S N D F M A M
and Resources, Victoria; CSIRO, Curtin Month
University; Murdoch University and the
Birchip Cropping Group.
Figure 2 Strategy development to maximise Australias competitiveness
Internationally AEGIC is working with
in grain exports
baking technology development company,
BakeTran, laboratory analysis equipment
manufacturer Perten, flour millers and
flour mill representatives in Japan, Competitor
Indonesia, the Philippines as well as a analysis Understanding
Market analysis
number of global breweries. grain use and
and trends
A focus on customer service
functionality
As the global grain market place increases
in its dynamism, customer service will
become a point of differentiation.
Strategy
development
Identifying which customer services can
increase the value proposition of our grain
is vital, and significant guidance on this
can be gleaned from looking at services
provided by the United States and Canada.
Both countries invest considerably in Grower
equipping customers with the information value
they need to make smart buying decisions,
such as crop quality and production data.

Australian Export Grains Innovation Centre

ANNUAL REPORT
20142015 8

Australian Export Grains Innovation Centre


Capacity building
Scientific
Increasing Australias scientific capacity
in grain quality was identified as part
of AEGICs role in the National Grains
Research, Development and Extension
strategy.
It is also essential to foster innovation at
a scientific level to ensure our grains meet
international end-use purposes.
Trade-focussed
AEGIC also invests in building an
understanding of Australian grain
production and grain quality across the
industry. During 2015 AEGIC collaborated
with Austrade to provide webinars to
Business Development Managers (BDM)
posted in Australias established and
emerging international markets. These
webinars focussed on up-skilling BDMs
in their knowledge of Australian grain
production and its end uses.
New challenges
Australian grain is renowned across
the world for its superior quality and
functionality, and for the clean, green,
safe environment in which it is grown.
However countries in the Black Sea
region have again started to export large
quantities of grains and are challenging
our share in established markets.
Currently the Black Sea and Europe
combined account for 45% of world wheat
trade, with considerable emphasis in the
Ukraine and Russia on expanding grains
exports. Black Sea production is increasing
and is competitive with Australian wheat
in some markets.
Supply chain pressure is also becoming
more pronounced. Reports indicate it is, at
times, cheaper to move grain from Odessa
in the Ukraine to Indonesia than from
Geelong to Indonesia.
Australian Export Grains Innovation Centre
CHAIRMANS REPORT 9 ANNUAL REPORT
20142015
Australian grain is renowned across the world for its
superior quality and functionality however competitors
are challenging our share in established markets
AEGICs in-progress study looking at AEGIC recognises this trend. During 2014-
Black Sea grain production, and specifically 2015 a highlight for AEGIC was a week-long
the regions supply chain, will provide workshop held in Perth for representatives
a valuable insight into this emerging from two of Indonesias largest flour mills.
competitive source of grain.
The objective was to demonstrate the
New opportunities performance of Australian wheat in
Indonesian baking processes and to
However with challenges there are also connect the millers with AEGIC wheat
opportunities. Wheat consumption across quality technical experts.
Asia is rising at a level that Australian
production cannot possibly meet. The week included visits to Kwinana port
and also to a family grain growing operation
Rather than viewing this as a barrier, in the Western Australian wheatbelt.
we should seize this demand as an
opportunity to capitalise on Australias I am pleased industry has given us a
reputation as a provider of food-grade, mandate to continue to conduct more of
safe grain which is perfect for high-end, these initiatives with our international
high-value products. customers.
At the Australian Grains Industry
Conference in Melbourne during August,
United States market analyst Emily French
declared India as the next big frontier for
Australian wheat, with wheat consumption
1
in the sub-continent increasing.
Another potential new market to explore
is Myanmar. As democracy takes shape in TECHNICAL EXTENSION
WORKSHOP IN AEGIC
this country, trade will naturally evolve, LABORATORIES
and Australia is well placed to be at
the centre of this evolution. During July,
AEGICs markets team visited Myanmar to
better understand the emerging nations
demand for grain and its end-use. 3
IN-MARKET TECHNICAL
Making the connection EXTENSION
WORKSHOPS AND
There is no doubt that improving SEMINARS
connections between international
customers and our sector including
grain growers is part of good customer
3
service.
Consumers are becoming increasingly
GRAIN QUALITY
close to production points as a result of COURSES FOR
the digital age. There is also increased AUSTRALIAN RECEIVAL
emphasis on food safety. Having this POINT OPERATORS
connection can increase a consumers
comfort in a product and therefore
increase its value.
Australian Export Grains Innovation Centre
ANNUAL REPORT
20142015 10

Australian Export Grains Innovation Centre

 CHAIRMANS REPORT 11 ANNUAL REPORT
20142015

Our team
AEGICs team of nationally renowned
experts has continued to grow during
20142015 (see Figure 3) to meet the
demands of our projects (see Figure 4).
During 20142015 AEGIC bolstered its
internal scientific capacity with the direct
employment of six grain quality technical
officers and three specific technical
appointments with expertise spanning
wheat and oats.
AEGIC continues to work on formalising
Human Resources (HR) protocols, staff
development, flexible work practices and
wellbeing as key factors to productivity
Similarly, I acknowledge David Fienberg, Clark, GRDC Managing Director John Harvey,
AEGICs Chief Executive Officer until his DAFWA Director General Rob Delane and
resignation in November 2015, for steering DAFWA Grain Industries Executive Director
AEGIC through the review period while Mark Sweetingham.
maintaining a focus on productivity.
Terry Enright
Our Members CHAIRMAN, AEGIC
Lastly I acknowledge the continued
support of GRDC and DAFWA, through their
respective leaders GRDC Chair Richard
Figure 3 AEGIC staff Figure 4 AEGIC projects
50 50

Number of projects
and retention. 40 40
Number of staff

The Board 30 30
Id like to take this opportunity to thank 20 20
my fellow Directors Matt Macfarlane,
10 10
Stephen Marshall and Bruce Lee for their
commitment to AEGIC. Their contribution is 0 0
certainly significantly responsible for the 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
good stead AEGIC finds itself in today. Year Year

AEGICs overarching key performance indicators (KPIs) for 20122017

Progress at June 2015

Establishment of a portfolio of innovative export grain quality-focussed

research programs with outputs and key performance indicators 100%
Partnerships established with national and international R&D organisations
on programs relating to grain quality, functionality and processing technology 75%
National leadership in the provision of independent, efficient
export grains quality testing and analytical services 80%
The development of a team of grain quality, functionality and market experts delivering technical
information to and ascertaining requirements from Australian grains international customers 85%
Establishment of at least four grain quality and functionality technical transfer
workshops and seminars p.a. for Australian export grain customers 75%
Ongoing national leadership of Australian export grain
industry good functions in a deregulated environment 60%
Export grains strategic plans established for Australias
existing and emerging export grain markets 75%
Export grains quality and functionality related research
priorities identified for wheat and barley 100%

Australian Export Grains Innovation Centre

 ANNUAL REPORT
20142015 12
HIGHLIGHTS
HIGHLIGHTS
July 2014
July 2014
In July AEGIC developed a four
week program and hosted a
visiting noodle expert from
Japan. Mr Kazuhisa Kirizawa
was from Nippon Flour Milling
Company, representing
the Japanese Flour Milling
Association (JFMA). Through
the management of the JFMA
program AEGIC supports
classification of new noodle
varieties.
July 2014
AEGIC released a report on the
Saudi Arabian market which
outlined the impact of recent
changes for Australias grain
exports and the future of
Australia and Saudi Arabias
grain trade relationship.
Australian Export Grains Innovation Centre
August 2014 September 2014 November 2014
Canola to EU workshop AEGIC commenced a technical In collaboration with BakeTran,
industry stakeholders planned interaction with the Chinese AEGIC ran a workshop with
how to tackle the European Academy for the State two of Indonesias largest flour
Unions greenhouse gas Administration of Grain (ASAG) mills, Bogasari and Eastern
emissions barriers for Canola. on Chinese wheat gluten Pearl to demonstrate versatility
requirements and end-use of Australian wheat for South-
research. East Asian baking purposes.
August 2014
AEGICs August yield forecast October 2014
predicted the seasonal forecast November 2014
finish was 1.71 t/ha, which AEGIC commenced a For the second year in a
matched the preliminary partnership with Curtin row AEGIC hosted a series of
ABARES final estimates. University and the Seamild three-day capacity building
Food Group, one of Chinas workshops for receival point
Australian wheat yield 10th percentile
leading oat food producers, operators. The workshops
forecast trajectories 2014
2.8
50th percentile
90th percentile under the Australia China outlined the quality parameters
Agriculture Cooperation
Seasonal outlook finish
pertaining to wheat, barley,
2.6
Final estimation
2.4 ABARES estimate
Agreement (ACACA) for a one-
2.2
oats and canola and how
ABARES final estimate
Yield (t/ha)
2.0
1.8
1.6
1.4
year project to understand they impact the end-product
1.2
1.0 functionality requirements whether it be noodles, bread,
of oats for Asian-style food
0.8
beer or oil.
1 Jan
1 Feb
1 Mar
1 Apr
1 May
1 Jun
1 Jul
1 Aug
1 Sep
1 Oct
1 Nov
1 Dec
products such as noodles.

20142015
December 2014
Rie Sadohara from Sanwa
Shurui visited AEGIC on a
technical exchange program to
investigate whether existing
malt quality testing equipment
could be utilised in small
scale assessment of Shochu
production, a niche market for
Australian barley.
December 2014
AEGIC Chief Economist Professor
Ross Kingwell presented at the
International Grains Forum in
Jeddah, Saudi Arabia where
local officials shared their
interest in knowing what
volumes of wheat might be
available from Australia in 2015
and beyond.
January 2015
AEGIC research revealed that
between 1982 and 2012 more
than half Australias wheat
growing regions had improved
their Water Use Efficiency
(WUE) by at least 50 per cent
despite declining growing
season rainfall.
February 2015
AEGIC conducted a series
of video conferences in
partnership with Austrade
targeting business development
managers in all the key
grain importing countries.
The presentations included
profiles of the Australian
grains industry as well as the
functionality of Australian
wheat. AEGIC subsequently
have received requests
from DFAT and the Victorian
government to undertake
similar presentations.
HIGHLIGHTS
March 2015
AEGIC hosted the Australia
Precinct at the 2015 Global
Grain Asia conference held in
Singapore. Global Grain Asia is
the leading grains and oilseeds
event in the worlds largest
destination market, South
East Asia.
March 2015
At AEGICs invitation, Mr Ricardo
Pinca, Executive Director of the
Philippine Association of Flour
Millers (PAFMIL), highlighted
opportunities and pathways for
Australian wheat sales to the
Philippines which included
public presentations in Perth
and Melbourne.
Australian Export Grains Innovation Centre
13 ANNUAL REPORT
20142015
June 2015
April 2015
AEGIC published the 2014
Australian Wheat Quality
Report in partnership with
GrainGrowers which provided a
guide to the quality of the 2014
wheat harvest for buyers and
users of Australian wheat.
May 2015
AEGIC released the report
The puck stops here! Canada
challenges Australias grain
supply chains.
MARKET AND COMPETITOR

ANNUAL REPORT
20142015 14
INTELLIGENCE

MARKET AND COMPETITOR

INTELLIGENCE
EUROPE
During August 2014 AEGIC hosted a GRDC-sponsored national workshop on meeting
European Union (EU) emission reporting requirements for export of canola. As a result,
a national research collaboration was formed involving CSIRO, AEGIC, the Australian
Oilseed Federation, Curtin University, Meo Solutions and LCA Solutions Pty Ltd. This
collaboration will generate emission data required by the EU that will allow Australian
exports of canola to the EU to continue after 2016.

$1,003 million*
CANOLA
BLACK SEA REGION
AEGIC is examining the competitiveness of
the Black Sea Region during 20152016.

27 mmt** 3 mmt
WHEAT BARLEY

$1,510 million $505 million $124 million

WHEAT BARLEY CANOLA

MIDDLE EAST
During August 2014, AEGIC produced a Global Grain Report: Saudi Arabia
A changing landscape for Australian Grain Exports. The report looked at
the current and likely future trends in Saudi Arabia which will influence
Australias grain trade to the Kingdom. In addition AEGIC produced a set
of Global Grain factsheets looking at other Middle Eastern markets for
Australian grain.
AEGIC published a series of Global Grain factsheets on the status and
opportunities of key Middle East and North Africa (MENA) markets. These
markets included Iran, Iraq, Nigeria, Sudan, Kuwait and Egypt and are
published on AEGICs website aegic.org.au

KEY
Target markets
* Value of Australian exports 4-year average 20112014. Source: Australian Bureau of Statistics
**Competitor export volumes AEGIC calculations based on ITC/Trademap data Target competitors

Australian Export Grains Innovation Centre

 MARKET AND COMPETITOR INTELLIGENCE
NORTH ASIA (JAPAN, KOREA, TAIWAN)
The Japanese and Korean soft noodle markets import about 1.6mmt of
Australian noodle wheat per annum. These have been long term, stable
markets for Australian growers. However, the longer term future of this
industry is clouded by the decreasing financial incentives for growers
of noodle wheat varieties, relative to recently-bred hard wheats. AEGIC,
in association with the Grains Industry Association of WA (GIWA), has
produced a comprehensive report on the challenges facing the Australian
noodle wheat industry, including all facets such as the agronomic
challenges, buying structure, value chain and economic analysis. The
report was released during August 2015.
AEGIC undertook its first technical seminar in Taiwan in partnership with
AGT and Austrade.
AEGIC, in association with the Grains Industry of WA, began a
comprehensive report on the challenges facing the Australian noodle
wheat industry, including all facets such as the agronomic challenges,
buying structure, value chain and economic analysis.
$916 million $262 million $2 million
WHEAT BARLEY OATS
$2,621 million $1.3 million
WHEAT OATS
SOUTH EAST ASIA
AEGIC used multiple consumer research tools
and associated analytical capacity which continues
to be applied to collection and analysis of grain
functionality data in Singapore, Malaysia, Indonesia
and Philippines.
AEGIC continued to develop relationships with
major flour mills and food manufacturers in South
East Asia allowing pathways for a GRDC project
on collecting objective market intelligence on the
Indonesian and South-East Asian wheat markets.
Cemented relationship with Filipino Chinese Bakery
Association (FCBA) allowing access to in market
training and education facilities.
Work has commenced on the prospects for
Australian wheat into the emerging market of
Myanmar.
15 ANNUAL REPORT
20142015
CANADA
During May 2015 AEGIC released a report
The puck stops here! Canada challenges
Australias grain supply chains which
compared and contrasted Australias grain
supply chain with that of Canadas and
outlined the opportunities for increasing the
efficiency of Australias grain freight system.
Canada is Australias main competitor in the
export of wheat and malting barley.
21.5 mmt 138 mmt
WHEAT BARLEY
9 mmt 1.8 mmt
CANOLA OATS
CHINA
Exports of Australian oats to China have increased
approximately fivefold in the past few years. In November
2014, AEGIC began a collaboration with Curtin University
and Chinese food manufacturer Seamild Food Group
(Seamild) to:
Understand Chinas requirements for oat quality and
functionality and;
Conduct technical research to establish Australia as
Chinas preferred supplier of quality milling oats.
The collaboration began with a week-long technical
exchange in Perth during November 2014 and was
completed in 2015.
As part of a research collaboration with the Academy
State Administration of Grain (ASAG), AEGIC commenced a
technical interaction with ASAG staff visiting Australia to
present information on Chinese wheat gluten requirements
and to conduct joint end use research with AEGIC staff.
AEGIC initiated a visit of a major noodle manufacturing
company to Australia and demonstrated the functionality
and value of Australian wheat for noodles.
AEGIC developed strategic in market relationships with
Australian and Chinese government agencies.
$365 million $680 million
WHEAT BARLEY
$227 million $1.5 million
CANOLA OATS
Australian Export Grains Innovation Centre
 ANNUAL REPORT
20142015 16
INNOVATION

LEFT: Gas chromatography is used in the AEGIC Grain Laboratory to analyse levels
of dimethyl sulphide, an undesirable flavour component in malted barley and beer.
ABOVE: Geoffroy DHumieres, Arnaud Dubat and Jenny Ng demonstrate equipment
from Chopin Technologies (France) which is being commissioned and trialled in
AEGIC laboratory.

INNOVATION
AEGIC uses intelligence gathered on
market requirements to guide research
and development efforts toward the
greatest benefit to the Australian grains
industry.
Wheat research and innovation
As part of the research and innovation
projects, a partnership with French
company Chopin Technologies resulted
in specialist equipment being made
available. The MixoLab and Solvent
Retention Capacity (SRC) tests are
now being used in noodle, baking
and oat-related research to study the
mixing behaviour of proteins, pasting
characteristics and retrogradation of
starch as well as indicative end product
performance.
Australian wheat for Asian baking During 20142015, AEGIC:
Began to establish a resource database
As part of the Australian Wheat for Asian
for the key malting quality traits,
Baking (AWAB) project AEGIC hosted a
particularly malting quality, grain yield,
week long workshop on baking principles
disease resistance and other QTL,
using Australian wheat and quality
control points from mixing to moulding molecular markers, genomic sequences
and transcriptomes.
to baking with the two largest flour mills
from Indonesia. Technical extension and Identified new beta-amylase genes
innovation in bread processing will lead in order to develop and deliver new
to greater understanding by customers on molecular markers for breeding
how to use Australian wheat in premium programs.
baking grists. Established the metabolic pathway of
S-methyl-methionine and identified
Barley malting quality research key genes for dimethyl sulphide (DMS)
formation, which creates undesirable
AEGIC is determined to improve
odour.
malting barley qualities and to
minimise processing quality issues
for improvements of the processing
performance, value and competitiveness
of Australian malting barley varieties.
As part of AEGICs Malting Barley
Quality Australia program, research was
conducted to increase malt extract and
improve malting barley variety attributes.

Australian
Australian
Export
Export
Grains
Grains
Innovation
Innovation
Centre
Centre
 INNOVATION 17 ANNUAL REPORT
20142015

Innovative baking processes being

developed at AEGIC will create demand for
Australian wheat in Asia into the future
STANLEY CAUVAIN, BAKETRAN (UK)

Freshly malted barley being removed from the unimalter at Pilot Malting Dr Qisen Zhang loads polymerase chain reaction (PCR) products to
Australia. Photo: Jon Luff Agarose gel for genotyping work.

Pilot Malting Australia
Pilot Malting Australia (PMA) is a joint
initiative of the AEGIC and Edith Cowan
University (ECU). It has been established
to help improve market access and value/
supply chain outcomes for the Australian
malting barley industry.
During 20142015 PMA, with support from
AEGIC, made substantial progress in the
GRDC-funded Commercial Validation Project
(WCA00003). The aim of this project is to
evaluate the relationship between the
100kg pilot malting plant and commercial
malting plants operating within Australia.
Noteworthy achievements during the
year were:
Evidence presented to the project
participants that PMA can closely mimic
the commercial process and could
potentially be used as an adjunct to
the barley variety accreditation process.
This work will continue through 2015.
PMA assisted the CSIRO ultra-low gluten
project by malting batches of ULG barley
to provide CSIRO with an understanding
of its malting characteristics using a
commercial malting program.
The PMA facility was introduced to
Chinese malting and brewing companies
through the GRDC funded AEGIC Market
Intelligence Project (AEG00006).
PMA
Increasing the value and
competitiveness of Australian export
oats
During 2015 AEGICs Grain Quality and
Processing Technology Innovation program
expanded to include oat grain quality
research.
The Asian-style oat foods are a new and
growing end-use for Australian oats.
This project will investigate these new
products and identify the preferred oat
quality and functionality for their use. A
secondary objective of this project is to
build technical capacity for the Australian
oat industry in oat chemistry and end-
product functionality, to help ensure that
our industry remains in the key export
markets.

Australian Export Grains Innovation Centre

 ANNUAL REPORT
20142015 18
EXTENSION

EXTENSION
AEGIC is committed to providing
maximum value for the Australian grains
industry through the effective extension
of research outputs. Throughout
20142015, AEGIC worked tirelessly to
disseminate the results of its research to
the appropriate audience.
At various points of each research project,
AEGIC engaged with growers, industry,
export customers and government
to communicate research outcomes
and provide concrete benefits to the
Australian grains industry.
32
REPORTS, PUBLICATIONS
AND MAPS
Reports
During 20142015 AEGIC disseminated
information through the following reports:
Saudi Arabia: A changing landscape
for Australian Wheat
The puck stop here: Canada challenges
Australias grain supply chains
National Wheat Quality Report
(In collaboration with GGL)
Global Grain Series factsheets
including for Iraq, Egypt, Iran, Kuwait
and Nigeria
Australian Grain Notes barley,
canola, oats, pulses
Crop Prospects Reports
ENSO Summary
Predicted shire wheat yield maps
Soil moisture maps
Water use (production) efficiency maps.
Events
AEGIC experts were asked to present
at many industry events to share the
findings of AEGIC research. AEGIC also
sponsored several events to support
industry collaboration and the generic
promotion of Australian grain. During
20142015 AEGIC was involved in:
Global Grains Asia
Australasian Grain Science Association
(AGSA) Conference
Australian Barley Technical Symposium
International Gluten Workshop
American Association of Cereal
Chemists International
2015 GRDC Crop Updates
GRDC National R&D Forum
Australian Agricultural and Resource
Economics Societys annual conference
2015 Australian Agribusiness Outlook
Conference.

35
PRESENTATIONS AT
INDUSTRY EVENTS AND
WEBINARS

Dr David Stephens shares AEGICs crop yield ranking maps, seasonal Professor Ross Kingwell discusses agricultural economics with
forecasts and latest research findings on climate change with researcher Dr Morteza Chalak from the University of Western Australia
farmers in Cleve at the 2014 Eyre Peninsula Field Days.

Australian Export Grains Innovation Centre


Technical extension
International customers
During 20142015 AEGIC provided
technical extension to international
customers through in-market visits to
China, Indonesia, Japan, Korea, Malaysia,
Myanmar, the Philippines and Singapore.
In China, Japan and Korea these visits
included the hosting of technical workshops
for millers and processors of Australian
wheat. Feedback from the workshops
demonstrated customers view technical
information communicated by AEGIC as
high-value to their buying decisions.
Flour millers in target markets
Technical extension and innovation in
bread processing is developing a greater
understanding by customers on how to use
Australian wheat in premium baking grists.
Further technical extension was provided
to Indonesias two major flour millers,
A jointly organised Austrade/AEGIC wheat quality seminar with
Dr Steve Jeffries, CEO of AGT (Australias largest wheat breeding
company) attended by 90% of the Taiwanese flour milling industry.
INTRODUCTION
EXTENSION 19 ANNUAL REPORT
20142015
7
IN-MARKET TECHNICAL
Bogasari and Eastern Pearl, with a EXCHANGE VISITS
week-long workshop held at AEGICs
Perth headquarters to demonstrate the
performance of Australian wheat in
Indonesian baking processes. Feedback
from the workshop revealed participants
gained a better understanding of the baking 5
HOSTED TECHNICAL
potential of Australian milling wheat. EXCHANGE VISITS
Australian trade representatives
During early 2015 AEGIC hosted a series
of webinars for Austrade Business
Development Managers based in Australia
on established and emerging grain
markets. These webinars were focussed Governments in target markets
on upskilling Austrade BDMs in their
AEGIC began implementation of an MOU
knowledge of Australias grain production
signed with Academy State Administration
and exports; end-users and the factors
of Grain (ASAG) on research collaboration,
determining functionality and demand
commenced technical interaction with
for Australian grain. The webinars were
ASAG staff visiting Australia in September
subsequently also provided to State
2015 to present information on Chinese
Government representatives for the same
wheat gluten requirements and to conduct
purpose.
joint end use research with AEGIC staff.
Roslyn Jettner during a technical exchange with Chinese oat breeders.
Australian Export Grains Innovation Centre
 20
COLLABORATION

ANNUAL REPORT
20142015

COLLABORATION
During 20142015, AEGIC made significant progress on its objective to bolster national grain
quality technical capacity and to reduce overlap and market gaps in lab and technical services.
AEGIC also engaged with international partners in several world-class research projects.

INTERNATIONAL STATE
EUROPE WESTERN AUSTRALIA
BakeTran, UK
Perth
Chopin Technologies, France Curtin University
Perten Technologies, Sweden Supported students completing their
studies in Food Science and Technology.
Meo Solutions, Germany
An emission reporting study that will allow Supervision of PhD and Masters
Australian exports of canola to the EU to students in the Food Science and
continue after 2016. Nutrition stream.
CBH Group ogin
AMERICAS Grain quality training.
Climate Prediction Centre, USA Grains Industry Association of WA
Collaboration with climate scientists in the
(GIWA)
monitoring of El Nio Southern Oscillation
(ENSO). Noodle wheat report.
Agriculture and Agri-food Canada Technical support through wheat,
Crop modelling and ENSO forecasting. barley and oats councils.
Murdoch University
American Society of Brewing Chemists Intergrain Grain chemistry capacity
(ASBC) DAFWA building program.
The AEGIC barley laboratory is a participant AEGIC is continuing to collaborate with University of Western Australia
of the ASBC methods subcommittee. During DAFWA, the Canadian Grains Commission (UWA)
the second half of 2015 the laboratories will Agriculture and Agrifood Canada in the
be participating in a ring-test to evaluate a Barley genomics.
AustraliaCanada Collaborative Barley
standardised methodology for lipoxygenase Research Project. Narrogin
(LOX) testing in malted barley.
Edith Cowan University (ECU) Narrogin Agricultural College
ASIA Pilot Malting Australia. Capacity building.
Philippines Flour Millers Association
(PFMA)
Seamild, China
Filipino-Chinese Bakery Association
Academy State Administration of NATIONAL
Grain (ASAG), China Grain Growers Ltd. (GGL) Federal Department of Agriculture
Bogasari Flour Mill, Indonesia Wheat quality report, GRDC project on Pilot Voluntary Wheat Stocks
Australian Wheat for Asian baking project. market intelligence, consumer research Reporting Scheme.
Eastern Pearl Flour Mill, Indonesia tools, GRDC project Benchmarking Grain Research and Development
Australian Wheat for Asian baking project. Australian Wheat Quality. Corporation (GRDC)
Japanese Flour Millers Association Wheat Quality Australia (WQA) Four direct projects for research
Classification of new noodle varieties. Wheat Classification Council outcomes and providing investment
membership. guidance.

Australian Export Grains Innovation Centre


Grain-producing areas
Australian Oilseed Federation (AOF)
GRDC project on market intelligence, and
an emission reporting study that will allow
Australian exports of canola to the EU to
continue after 2016.
Australian Trade Commission
Capacity building for business
development officers.
COLLABORATION
QUEENSLAND
Brisbane
Queensland Alliance for Agriculture
and Food Innovation (QAAFI)
(University of Queensland)
During 2014 AEGIC established
a research partnership with the
Queensland Alliance for Agriculture
and Food Innovation (QAAFI) to
collaborate on a variety of different
issues impacting on export grains,
including the future role of Australian
Prime Hard (APH) wheat.
Increasing competitiveness of
Australian export oats project.
SOUTH AUSTRALIA
Primary Industries Research
South Australia (PIRSA)
Collaboration with PIRSA
improved AEGICs model for
developing crop forecasting maps
by increasing the accuracy of
sowing date data.
University of South Australia
to develop consumer research
tools and capacity.
National Oat Breeding Program (NOB)
Collaborator on oat project.
Commonwealth Scientific and Industrial
Research Organisation (CSIRO)
Emission reporting study that will allow
Australian exports of canola to the EU to
continue after 2016.
Australian Export Grains Innovation Centre
21 ANNUAL REPORT
20142015
NEW SOUTH WALES
Sydney
Department of Primary Industries,
New South Wales
AEGIC provides information related
to extreme event forecasts.
Australian Oilseed Federation (AOF)
GRDC project Theme 1 intel, and
an emission reporting study that will
allow Australian exports of canola to
the EU to continue after 2016.
Australian Trade Commission
Capacity building for business
development officers.
University of Sydney
Capacity building
Wagga Wagga
Charles Sturt University
GRDC project on market intelligence
VICTORIA
Melbourne
Department of Economic
Development, Jobs, Transport and
Resources Victoria (DEDJTR)
During 2014 AEGIC renewed a
collaboration with the Department
of Economic Development, Jobs,
Transport and Resources Victoria
(formerly the Department of
Environment and Primary Industries)
to collaborate in the areas of
international pulse markets (i.e.
North Africa and Middle East), farm
profit driving economic analysis,
and monitoring droughts and crop
prospects.
Birchip
Birchip Cropping Group (BCG)
Recently, AEGIC analysed the
national Birchip Cropping Group
(BCG) Yield Prophet data set from
paddocks across Australia and was
able to update district sowing date
calculations in the STIN model.
Preliminary analysis suggests that
mid-season nitrogen data may be
able to assist regional and national
yield forecasts.
 ANNUAL REPORT
20142015 22
AEGIC BOARD
AEGIC BOARD
Terence Enright
HON DR.SC(AGRIC); GAICD
Chair, Appointed 1 April 2014
Terry is a Western Australian grains
and livestock producer. As a former
Chairman of the Grains Research and
Development Corporation (GRDC) he has
overseen a reorganisation of Australias
wheat-breeding efforts, strengthening
its national and commercial focus.
He is an Independent Director of the
Australian Livestock Export Corporation
(Livecorp), immediate former Director
of Grain Producers Australia, Chair of
the Western Australian Crawford Fund
Committee and a Member of the Board
of Directors. Terry has served in a
number of Agriculture-related positions
including as a Commissioner of the
Export Wheat Commission, a Member
of the standing committee on national
research priorities and Member of
the panel to conduct an independent
review of the Australian Centre for
International Agricultural Research.
Australian Export Grains Innovation Centre
Matthew Macfarlane Stephen Marshall
B.COM; GAICD B.SC (HONS); M.APP.SC; GAICD
Director, Appointed 24 October Director, Appointed 24 October
2012 WAAA nominated Director 2012 GRDC nominated Director
Matt is a Co-founder and Investment Steve has an extensive background
Director at Yuuwa Capital, a Perth in food science and technology
based $40m early stage venture capital management. He has held chief
fund launched in 2009. Matt has been managerial positions in a number
both an investor and an entrepreneur of food manufacturing businesses
in early stage tech startups and has and served on the board of a variety
actively participated in the startup of Australian agriculture-related
ecosystem in Perth for over 10 years. Government and non-government
Matt works hands-on with startup research bodies.
companies to assist in building
teams, accelerating growth, achieving
milestones and securing additional
financing. He has been invited to judge
at a number of prestigious awards
including the WA Innovator of the Year
Awards; multiple Startup Weekends;
the inaugural Unearthed Hackathon;
Curtins Commercial Innovation Awards;
OzApps and the AIMWA WestBusiness
Pinnacle Awards. He has also acted
as a mentor for the Founders Institute
(Perth Chapter) since inception; the
RAC SeedSpark corporate accelerator
and the Amcom Upstart accelerator.
Matt currently is also a director at
Kanopy Pty Ltd and with investee
companies: iCetana, Agworld and
Dealised.
 AEGIC BOARD 23 ANNUAL REPORT
20142015

Bruce Lee Emma Walczak

BAGSC; M.SCAG; DR.SC.AGR LLB, BCOMS(ICT)

Director, Appointed 24 October Company Secretary and General

2012 Counsel, Appointed January 2015

Bruce, an agricultural chemist has a Emma is a commercial lawyer and

track record of success in research and company secretary with more than
commercialisation in both the public eight years experience in providing
and private sectors for periods of 12 advice with respect to Corporations
and 17 years respectively. Act/ASX Listing Rule compliance, capital
raisings, acquisitions, takeovers and
He has extensive management
disposals, and general commercial and
experience in large, multidisciplinary,
contractual matters. Emma worked
multicultural teams that are
in commercial law firms during her
geographically spread, including
early career before starting Trinitas
Syngenta, Novartis and Ciba-Geigy.
Legal, her own commercial law and
He also spent 10 years at the CSIRO
company secretary practice where she
leading the development and
advises clients in the resources and
commercialisation of programs directed
grain industries. Emma has been the
to high value grains (quality attributes)
company secretary of AEGIC since 15
and novel oilseeds. He has led
January 2015.
mergers and acquisitions, public and
private partnerships and served on
numerous boards.
Bruce is currently the CEO of Genective,
a joint venture aimed at the
development and commercialisation of
genetically modified corn traits.
His leadership in food and agribusiness
was recognised with the Rabobank
Leadership Award in 2010.

Australian Export Grains Innovation Centre

 24
ORGANISATIONAL

ANNUAL REPORT
20142015
CHART

Chief Executive
Officer

ORGANISATIONAL CHART

Strategic Market
Grain Quality
Intelligence
and Processing
Requirements
Technologies
and Opportunities
Manager/General
Manager

Wheat Quality National Oats

Malting Barley
Technical Markets Quality Research
Quality Australia
Manager and Innovation

Program Leader
Middle East, China

Grain Research National Barley

Grain Classification Oat Quality
Scientist
Services Pilot Chemist
Program Leader Malting Australia
South East Asia,
China
Grain Quality
Barley Malting
Research Officer
Quality Industry Oat Quality
Engagement Research Officer
Program Leader Biochemist
Japan, Korea and
China Grain Quality
Research Officer
Barley Malting
Quality Innovation
Strategic Market Biochemist
Intelligence Grain Quality
Analyst Research Officer

Grain Protein
Barley Technical Chemistry Capacity
Markets Manager Building Program

Australian Export Grains Innovation Centre

 ORGANISATIONAL CHART 25 ANNUAL REPORT
20142015

Executive Assistant Accounts Administrator

to the CEO

Executive Assistant
HR Manager

Administration Assistant
Chief Financial
Officer
IT Database Programmer

Communications Economics and National Grain

Supply Dynamics
and Information Business Analysis Quality
Manager
Services Manager Manager Laboratory

Wheat Quality Barley Quality

Laboratory Laboratory
Manager Manager

Crop Forecasting Grain Quality

Communications Economic
Analyst Technical Officers
Officer Analyst
Programmer x 11

Stakeholder Economic Analyst

Liaison Officer Supply Chain

Strategy and
Planning Advisor

KEY
Executive Management Team
Staff

Australian Export Grains Innovation Centre

FINANCIAL STATEMENT

ANNUAL REPORT
20142015 26
AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD
(LIMITED BY GUARANTEE)
ABN 37 160 912 032

FINANCIALS AT A GLANCE
Figure 6 AEGIC Non-member Annual Income ($000)

2500

2000 Interest and other

Project and laboratory income
1500
$ (000)

1000

500

0
20122013 20132014 20142015

Figure 7 AEGIC Net assets ($000)

18,000
16,000
14,000
12,000
10,000
$ (000)

8000
6000
4000
2000
0
20122013 20132014 20142015

Figure 5 AEGIC Annual expenses ($000)

7000

6000
Employee benefits
5000 Project expenses
Consultancy
4000
$ (000)

Travel
3000 Premises
Directors fees
2000
Other expenses
1000

0
20122013 20132014 20142015

Australian Export Grains Innovation Centre

 FINANCIAL STATEMENTS 27 ANNUAL REPORT
20142015

AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD

(LIMITED BY GUARANTEE)
ABN 37 160 912 032

FINANCIAL
STATEMENTS
Statement of profit or loss
and other comprehensive income 28

Statement of financial position 29

Statement of changes in equity 30

Cash flow statement 31

Notes to the financial statements 32

Directors declaration 38

Auditors declaration of independence 39

Australian Export Grains Innovation Centre

FINANCIAL STATEMENT

ANNUAL REPORT
20142015 28
AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD
(LIMITED BY GUARANTEE)
ABN 37 160 912 032

Statement of profit or loss and other

comprehensive income
For year ended 30 June 2015

2015 2014
Note $ $
Revenue
Member contributions 2 10,710,000 9,890,000
Other revenue 3 2,256,605 1,321,177
Total revenue 12,966,605 11,211,177

Expenses
Accountancy expenses 1,279 5,471
Audit fees 5 15,000 24,067
Legal fees 10,600 15,030
Consultancy 410,272 471,885
Directors fees 191,998 224,500
Other Director expenses 72,591 39,951
Premises 117,920 94,104
Employee benefits expenses 4,182,762 4,002,570
Depreciation 52,721 23,305
Project expenses 597,910 843,901
Travel 379,525 221,987
Other expenses 944,928 377,032
Total expenses for the period 4 6,977,506 6,343,803

Current year surplus before income tax 5,989,099 4,867,374

Income tax expense 1(c)
Net current year surplus 5,989,099 4,867,374
Other comprehensive income for the year
Surplus member contributions transferred to equity 12 5,989,099 4,867,374

Australian Export Grains Innovation Centre

 FINANCIAL STATEMENTS 29 ANNUAL REPORT
20142015

AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD

(LIMITED BY GUARANTEE)
ABN 37 160 912 032

Statement of financial position

As at 30 June 2015

2015 2014
Note $ $
Assets
Current assets
Cash and cash equivalents 6 15,041,299 11,255,682
Trade and other receivables 7 2,953,587 207,838
Total current assets 17,994,886 11,463,520

Non-current assets
Property, plant and equipment 8 168,129 106,535
Total non-current assets 168,129 106,535

Total assets 18,163,015 11,570,055

Liabilities
Current assets
Trade and other payables 9 968,252 413,856
Financial facility 10 15,788 35,540
Provisions 11 138,519 69,302
Total current liabilities 1,122,559 518,698

Total liabilities 1,122,559 518,698

Net assets 17,040,456 11,051,357

Equity
Retained member surplus contributions 12 17,040,456 11,051,357
Total equity 17,040,456 11,051,357

Australian Export Grains Innovation Centre

FINANCIAL STATEMENT

ANNUAL REPORT
20142015 30
AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD
(LIMITED BY GUARANTEE)
ABN 37 160 912 032

Statement of changes in equity

For year ended 30 June 2015

$
Comprehensive income
Balance at 1 July 2013 6,183,983
Surplus for the year attributable to members of the entity 4,867,374
Total comprehensive income attributable to members of the entity 4,867,374

Balance at 30 June 2014 11,051,357

Surplus for the year attributable to members of the entity 5,989,099

Total comprehensive income attributable to members of the entity 5,989,099

Balance at 30 June 2015 17,040,456

Australian Export Grains Innovation Centre

 FINANCIAL STATEMENTS 31 ANNUAL REPORT
20142015

AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD

(LIMITED BY GUARANTEE)
ABN 37 160 912 032

Cash flow statement

For year ended 30 June 2015

2015 2014
Note $ $
Cash flows from operating activities
Member contributions (in cash) 8,151,000 8,349,000
Payments to suppliers and employees (5,577,875) (5,344,508)
Proceeds from operations 943,017 1,050,275
Net cash provided by operating activities 3,516,142 4,054,767

Cash flows from investing activities

Interest received 396,623 313,774
Payments for property, plant and equipment (127,148) (129,840)
Net cash provided by investing activities 269,475 183,934

Net increase in cash held

Cash at beginning of financial period 11,255,682 7,016,981
Cash at end of financial period 6 15,041,299 11,255,682
Net increase in cash held 3,785,617 4,238,701

Australian Export Grains Innovation Centre

FINANCIAL STATEMENT
ANNUAL REPORT
20142015 32
AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD
(LIMITED BY GUARANTEE)
ABN 37 160 912 032
Notes to the financial statements
For year ended 30 June 2015
1 Statement of Significant Accounting Policies
This financial report is a special purpose financial report
prepared in order to meet the needs of Members and which
has been prepared specifically for distribution to Members in
accordance with the Companys Constitution.
The Directors have determined that the Company is not a
reporting entity.
The financial report has been prepared in accordance with
the Corporations Act 2001 and the disclosure requirements of
Australian Accounting Standards:
AASB 101: Presentation of Financial Statements;
AASB 107: Statement of Cash Flows;
AASB 108: Accounting Policies, Changes in Accounting
Estimates and Errors;
AASB 1031: Materiality;
AASB 1048: Interpretation of Standards; and
AASB 1054: Australian Additional Disclosures.
The financial report is prepared on an accruals basis and
is based on historical costs and does not take into account
changing money values except where specifically stated.
The following material accounting policies have been adopted
and it is intended, in the absence of fundamental change,
that the policies be applied consistently in subsequent
reporting periods.
(a) Reporting Period
The financial statements are for the reporting period
1 July 2014 to 30 June 2015.
(b) Comparative figures
When required by Accounting Standards, comparative
figures have been adjusted to conform to changes in
presentation for the current financial year.
(c) Income Tax and Payroll Tax
No provision for income tax has been raised as the
Company has received a private ruling from the
Australian Taxation Office, valid until 30 June 2016,
confirming that AEGIC is exempt from income tax under
section Item 1.3 of section 50-5 of the Income Tax
Assessment Act 1997.
The Company has also received a ruling from WA State
Revenue that AEGIC is exempt from state payroll tax.
Australian Export Grains Innovation Centre
(d) Going Concern
This report has been prepared on a going concern basis.
Unless there is an earlier significant material adverse
event, the Board does not expect there to be a need to
change this policy prior to the 20152016 financial year.
(e) Revenue Recognition
Revenue for services rendered is recognised and
accrued during the period it is derived and shown in the
accounts net of Goods and Services Tax (GST). Interest
income is accrued and recognised during the period it
is derived using the effective interest method. Revenue
from contractual arrangements is recognised and
accrued in accordance with the terms of the contract.
Member contributions received as per the Members
Agreement are accounted for as revenue in the financial
year in which they are received. Surplus contributions
can be utilised for future undertakings and new
research, development and extension (R,D&E) programs
commenced by AEGIC. This does not operate to prevent
agreed contributions being deferred or continued from
year to year within new programs.
(f) Plant and Equipment
Each class of property, plant and equipment is carried
at cost or fair value as indicated, less, where applicable,
accumulated depreciation and any impairment losses.
(g) Depreciation
The depreciation rates applied to each class of
depreciable assets are the rates of depreciation allowed
by the Australian Taxation Office as a deductible expense
for a taxable company. These rates have been adopted
on a straight line basis (computers three years, plant and
equipment 10 years, software two years).
(h) Premises
The Company has access to office and other premises
under a non-assignable License to Occupy granted to
AEGIC in accordance with the Members Agreement
for the term of the Agreement. The license fee is fully
expensed as incurred. The license can be terminated by
AEGIC on six months notice. As such no liability has been
raised for the unexpired term of the license.
 FINANCIAL STATEMENTS 33 ANNUAL REPORT
20142015

AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD

(LIMITED BY GUARANTEE)
ABN 37 160 912 032

(i) Employee Entitlements (l) Directors Remuneration

Statutory superannuation contributions are made by The number of Directors whose remuneration as
the Company to a complying fund of the employees Directors fell within the following bands for
choice. If no choice is made the Company contributes 20142015 are:
the statutory superannuation contribution amount
2015 2014
into a superannuation investment account in
the employees name with a complying industry Nil$40,000 3 5
superannuation fund. $40,001$80,000 1 1
Provision is made for the Companys liability to the
As required by the Members Agreement the
reporting date for employee entitlements arising from
Company, through Deeds of Indemnity, Insurance
services rendered by employees.
and Access has indemnified all Directors for any
The Company complies with the Long Service Leave liabilities incurred as a Director, other than liabilities
Act 1958 (WA) for its long service leave policy to the Company or a related body corporate, or
and expense will be brought to account when the liabilities arising out of conduct involving lack of
employee reaches ten years of continuous service good faith. A Directors and Officers insurance policy
or a proportionate entitlement on termination after is maintained.
seven years.
(j) Accounts Payable and Other Payables
Accounts payables and other payables are recognised
when the Company becomes obliged to make future
payments resulting from the purchase of goods and
services.
(k) Economic Dependency
AEGIC is dependent on its Members for the majority
of its revenue used to operate the business. At the
date of this report the Board of Directors has no
reason to believe the Members will not continue to
support AEGIC.

Australian Export Grains Innovation Centre

FINANCIAL STATEMENT

ANNUAL REPORT
20142015 34
AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD
(LIMITED BY GUARANTEE)
ABN 37 160 912 032

2 Member Contributions
(a) Summary of member contributions

2015 2014
$ $
GRDC (cash) 5,150,000 5,000,000
DAFWA (cash) 3,260,000 2,590,000
DAFWA (in kind) 2,300,000 2,300,000
Total members contributions 10,710,000 9,890,000

(b) Statement of member contributions including DAFWA actual in-kind contributions

2012 2013 2014 2015 Total

$ $ $ $ $
GRDC (cash) 470,000 5,180,000 5,000,000 5,150,000 15,800,000
DAFWA (cash) 700,000 1,250,000 2,590,000 3,260,000 7,800,000
DAFWA (in kind) 711,960 2,048,333 2,453,895 1,796,426 7,010,614
Total 1,881,960 8,478,333 10,043,895 10,206,426 30,610,614
DAFWA contribution variance to carry forward 158,040 51,667 (153,895) 503,574 559,386
Cumulative total 158,040 209,707 55,812 559,386 559,386

3 Other Revenue

2015 2014
$ $
Project income 1,144,914
Laboratory services 690,235 789,757
Rental income 11,335 16,360
Interest 393,479 326,727
Other sundry income 11,175 188,333
Recoupments 3,213
Employee contributions 2,254
Total other income 2,256,605 1,321,177

Australian Export Grains Innovation Centre

 FINANCIAL STATEMENTS 35 ANNUAL REPORT
20142015

AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD

(LIMITED BY GUARANTEE)
ABN 37 160 912 032

4 Expenses
There has been a considerable increase in expenses in 20142015 due to the ramping up of projects as defined in the
Five-Year Business Plan.

5 Auditors Remuneration
Auditors remuneration for auditing the 20142015 financial statements was $15,000 which has been accrued in respect of
20142015. The auditors fee for the year ended 30 June 2014 was not brought to account in that period and was paid in
the year ended 30 June 2015. The auditors did not receive any other benefits or provide any other services.

6 Cash and Cash Equivalents

Reconciliation of cash
Cash at the end of the financial period as shown in the cash flow statement is reconciled to the related items in the
Statement of Financial Position as follows:

2015 2014
$ $
Petty cash 214 500
ANZ business account 11,139 553,277
ANZ interest bearing account 11,043,607 10,698,687
CBA cheque account 1,010,000
CBA online saver account 2,974,000
Foreign cash 2,339 313
ANZ debit card 1,956
Load & go card 949
Total cash and cash equivalents 15,041,299 11,255,682

7 Trade and Other Receivables

2015 2014
$ $
Current
Trade and other receivables 2,826,427 173,039
Prepayments 113,534 34,799
Other assets (i) 13,626
Total trade and other receivables 2,953,587 207,838

(i) Other assets include work in progress not yet invoiced

Australian Export Grains Innovation Centre

FINANCIAL STATEMENT

ANNUAL REPORT
20142015 36
AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD
(LIMITED BY GUARANTEE)
ABN 37 160 912 032

8 Property, Plant and Equipment

2015 2014
$ $
Plant and equipment at cost 244,156 129,840
Less provision for depreciation (76,027) (23,305)
Total property, plant and equipment 168,129 106,535

9 Trade and Other Payables

2015 2014
$ $
Current
Trade creditors 104,430 33,065
Goods and services tax payable 580,361 7,241
PAYG payable 92,999 43,952
Accrued expenses 29,603 329,598
Unearned income 160,859
Total trade and other payables 968,252 413,856

10 Financial Facility

2015 2014
$ $
Current Liabilities
Credit card facility 15,788 35,540
Total financial facility liabilities 15,788 35,540

11 Provisions

2015 2014
$ $
Current
Provision for annual leave 138,519 69,302
Total provisions 138,519 69,302

Australian Export Grains Innovation Centre

 FINANCIAL STATEMENTS 37 ANNUAL REPORT
20142015

AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD

(LIMITED BY GUARANTEE)
ABN 37 160 912 032

12 Equity
Clause 2.2 of the Companys Constitution states If the Company is wound up each Member of the Company undertakes
to contribute to the assets of the Company up to an amount not exceeding $10.00 per Member for payment of the debts
and liabilities of the Company including the costs of the winding up. This undertaking continues for 1 year after a Member
ceases to be a Member of the Company. The Company is holding a signed Guarantee of payment from each member as
evidence of their obligation in the event of the Company being wound up amounting to $20.
The surplus in relation to unspent contributions received from members in a given year can be utilised from year to year
within new programs and is not distributable among members.

13 Events after the Balance Sheet Date

There are no other significant events which the Board of Directors are aware of that have occurred subsequent to the
period ended 30 June 2015 until the date of signing this financial report.
14 Contingent Liabilities and Commitments
As at 30 June 2015, the Company does not have any contingent liabilities or commitments.

15 Company Details
Australian Export Grains Innovation Centre Limited
3 Baron-Hay Court
South Perth 6151
Western Australia.

Australian Export Grains Innovation Centre

FINANCIAL STATEMENT

ANNUAL REPORT
20142015 38
AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD
(LIMITED BY GUARANTEE)
ABN 37 160 912 032

Directors declaration

The Australian Export Grains Innovation Centre Ltd (AEGIC) is a Company limited by guarantee, incorporated and domiciled
in Australia with the ABN 37 160 912 032.
The Directors have determined that the Company is not a reporting entity and that this special purpose financial report
should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements.
The Directors of the Company declare that:
The financial statements and notes, as set out on pages 11 to 21 present fairly the Companys financial position as at
30 June 2015 and its performance for the year ended on that date in accordance with the accounting policies described in
Note 1 to the financial statements; and
In the Directors opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.

Terence Enright Matthew Macfarlane

CHAIRMAN DIRECTOR

Signed on this day 24 of August 2015

Australian Export Grains Innovation Centre

 FINANCIAL STATEMENTS 39 ANNUAL REPORT
20142015

AUSTRALIAN EXPORT GRAINS INNOVATION CENTRE LTD

(LIMITED BY GUARANTEE)
ABN 37 160 912 032

Australian Export Grains Innovation Centre

RESEARCH PROJECTS
ANNUAL REPORT
20142015 40
2015-2016
AEGIC research projects
2015-2016
AEGIC has 37 projects in the 20152016 year. Most of AEGICs projects are multi-year research projects which are
continuing, however seven are new this year and four are directly funded by the the Grains Research and Development
Corporation (GRDC).
STRATEGIC MARKET INTELLIGENCE,
REQUIREMENTS AND OPPORTUNITIES (SMIRO)
Independent market information and analysis
Appropriate and effective competitive
response requires credible and timely
information from both destination markets
and competing origins. These activities
will ensure that AEGICs efforts are well
directed and can be fed back to both
industry bodies and growers themselves.
Market intelligence for Theme 1 (GRDC Project)
In order to deliver highest value to
growers and the industry, GRDC (and
AEGIC) must understand the requirements
and dynamics of current domestic and
export grain markets for feed and food
grains.
Opportunities for Australian wheat in China
AEGIC is increasing its knowledge of the
quality and functionality of the end use
of Chinese wheats. Chinese research and
wheat buyers understand the available
classes of Australian wheat and suitability
for different applications increasing export
opportunities for higher quality Australian wheat to China.
Value of barley characteristics for the China market
Value capture by producers is enhanced
through improving market signals;
rapid market adoption of new varieties,
identifying the most important
characteristics sought by the market for
the differentiation of Australian barley and
to support the varietal accreditation program and direction for
GRDC national research priorities in export barley quality to meet
market requirements.
Australian Export Grains Innovation Centre
Creating export opportunities and value for Australian
milling oats in the China market
Value capture by oat growers will be
enhanced through increased demand
(and hence price competition) in China and
Asia for Australian oats through improved
understanding of market and their quality
requirements and technical extension to
market on use and value of Australian food grade oats.
Market requirements and opportunities South East
Asia (wheat and baking)
Value capture by Australian wheat growers will
be enhanced by improved access to premium-
paying wheat market segments and increased
competitiveness against high priced wheats
from North America and cheaper, filler wheats,
from the Black Sea region and India.
Market requirements and opportunities Philippines
Philippines flour mills and end users
will be better informed of the value of
Australian wheat resulting in increased
demand for the grains industry.
Market requirements and opportunities for export
grains in MENA
Investigate requirements and opportunities
for Australian export grains in MENA to
provide recommendations to the Australian
export grains industry and prioritise AEGIC
research, through the use of a competitor
analysis of the Black Sea, and a MENA
action plan by June 2016. Education and technical research will
then be targeted to deliver highest value to growers and other
stakeholders.

Strengthening Australias export grain relationship
with Japan and Korea
This project will work to maintain two highly
valued markets with consistent import
requirements and a willingness to pay a
premium for Australian wheat. This project
will open up new hard wheat opportunities,
supporting growers of AH, APW and Durum.
NATIONAL WHEAT QUALITY RESEARCH
AND INNOVATION (NWQRI)
Baking and noodle making quality MixoLab and the
Auto Solvent Retention Capacity SRC tests
Benefits to the grains sector include national
coordination; improved collaboration; greater
effectiveness and efficiency for the testing
of new wheat varieties and predicted end
product quality.
Ramen Noodles Australian Hard (APH and AH) varieties
Benefits to the grains sector include national
coordination, improved collaboration and
greater effectiveness and efficiency by the
Australian wheat industry in delivery of
market outcomes from research on the use of
Australian wheat for Ramen noodles in Japan.
Cracker wheat possibilities of using downgraded
noodle wheat or new noodle lines/varieties to produce
high quality cracker biscuits for export markets
New market opportunities could exist for
up to 50,000 tonnes of noodle wheat which
is typically downgraded and often price
discounted by as much as $20 per tonne.
May provide increased opportunity to review
and refine existing wheat classes improving
market stability or increased demand. This will reduce the risk to
growers of noodle wheat.
Grain Protein Professor (Murdoch University)
The initiative will increase Australias grain-
protein scientific capacity and capability and
provide the vital link between research and
industry to ensure Australias export grains
remain the product of choice for our existing
and emerging export markets.
RESEARCH PROJECTS
INTRODUCTION
20152016 41 ANNUAL REPORT
20142015
Australian Wheat for Asian baking
PROJECT 1
Identifying new bread making models by measuring
dough rheology and defining dough development
Positive growth forecasts for higher value
baked goods consumption in many SEA
countries provides an opportunity for
Australian wheat growers to capture greater
market share in the SEA baking sector,
increasing the demand for Australian wheat
for baking.
PROJECT 2
Balanced vs unbalanced dough properties In market
assessment of acceptability of Australian wheat with
unbalanced dough properties
Providing quantitative information for
Australian wheat classification to understand
our markets acceptance of unbalanced
dough properties.
PROJECT 3
Understanding the interactions and impact of different
ingredients on dough mixing and end product quality
for bread
Benefits to the grains sector include national
coordination, improved collaboration and
greater effectiveness and efficiency in the
Australian wheat industry. This project will
focus on the delivery of market outcomes
from research on the use of Australian wheat
for the baked bread segment in South East Asia.
Evaluating the quality of competitor varieties in
Australian wheat export markets (GRDC project)
Potential to increase market value of
Australian wheat through the following:
identification of high value markets where
it has an advantage; gathering information
and data to support Australian wheat when
competing with other sources; and providing
evidence based advice for the shaping of Australian wheat classes
and for the improvement of Australian wheat varieties.
Australian Export Grains Innovation Centre
RESEARCH PROJECTS

ANNUAL REPORT
20142015 42
2015-2016

MALTING AND BARLEY QUALITY SUPPLY DYNAMICS

AUSTRALIA (MBQA) Historical analysis of crop performance
Malting/brewing technology
Governments now require more rigorous Australia Water use efficiency for
Australia 19802014
assessments of the value of research,
Eastern Australia
Western Australia

Ensure that Australian malt and malting

70 E El Nio drought
W Wet
NE Non-El Nio drought

Water use efficiency (%)

60

barley continues to attract a premium development and extension. The AEGIC 50

W
NEE

STIN model measures crop water use

40 E
W E
NE

and remains the preferred option in 30

E W
E

efficiency, yield variability and crop yield

20

international markets.

2014*
1980
1982

1986
1988
1990
1992

1996
1998
2000
2002

2006
2008
2010
2012
1984

1994

2004
* 2014 uses preliminary data

trends temporally and spatially across the

Australian grainbelt and are unique measures of where productivity
is increasing and pressures on the supply chain will occur in
Pilot Malting Australia Innovative Technology Package coming years.

Shorter time to market for new varieties
and better export market opportunities for
those varieties delivering returns directly
to growers.
Malting quality innovation (new breeding traits)
Reduced risk of malting barley variety
downgrades or discounts, and improved
grower return through premium malting
quality varieties.
NATIONAL OAT QUALITY
RESEARCH
AND INNOVATION
Increasing value and competitiveness of
Australian Export Oats
The Asian style oat foods are a new and
growing end-use for Australian oats. This
project will investigate these new products
and identify the preferred oat quality and
functionality for their use. A secondary
objective of this project is to build
technical capacity for the Australian oat industry in oat chemistry
and end-product functionality, to help ensure that our industry
remains in the key export markets.
ECONOMICS AND BUSINESS ANALYSIS
Supply chain and value capture opportunities
and mechanisms
Operational crop surveillance and yield forecasting for
the Australian Supply Chain
Grower profitability and supply chain
efficiencies depend on the ability to
accurately respond to developing seasonal
conditions. For farmers, colour maps of
soil moisture and yield rankings assist in
their management and marketing decisions,
while accurate crop production estimates within the supply chain
using advanced models integrating satellite imagery, water balance,
extreme temperatures and management variables will directly
lower supply chain costs for growers. Ultimately, the optimal
allocation of resources would translate directly into enhanced
grower profitability, pre- and post-gate.
Accurate integration of new climate forecasting
technologies into yield forecasting for Australian grains
and the supply chain
The integration of new seasonal forecasting
technologies into regional crop yield
potentials translates moisture and climate
signals directly into relevant information
that growers and the supply chain can
respond to. A parallel AEGIC opportunistic
drought warning system and long-lead ENSO prediction scheme
(of El Nio and La Nia events) will forewarn growers of periods
where there is a high likelihood of extreme climate events and
enable better risk mitigation strategies on a long-lead basis. Longer
term assessments of the impact of climate change on regional
production will also be invaluable for future planning of storage
and transport needs.

Annually provided economic assessments

of the supply chains of Australias grain
export competitors led to greater (or less
loss of) market share due to organisational
change and industry supply chain
investments in Australia, influenced by
AEGICs reports and actions.

Australian Export Grains Innovation Centre

Australian Export Grains Innovation Centre

3 Baron-Hay Court, South Perth, Western Australia 6151

T +61 (0)8 6168 9900
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