Agency overview and resources
The Sugar Research and Development Corporation (SRDC) is a statutory authority established under the Primary industries and Energy Research and Development Act 1989 (PIERD Act). It is also subject to the regulatory framework contained in the Commonwealth Authorities and Companies Act 1997 (CAC Act).
SRDC’s mission is to foster an innovative and sustainable Australian sugar industry through targeted investment in research and development (R&D).
1.1 Strategic direction
The Corporation develops a strategic view of the needs and opportunities for R&D in the sugar industry, in consultation with government, industry, research and community stakeholders. The Corporation’s current view is outlined in the SRDC R&D Plan 2007–12 (the R&D Plan).
The Corporation receives funding primarily from industry levies and government matching funding. The Corporation annually assesses sugar industry and government priorities and determines target issues for the annual call for new projects. The Corporation invests in research and development projects consistent with the target Outcomes, Key Deliverables and Strategies of the R&D Plan. The Corporation monitors the progress of those projects and the implementation of innovative practices based on project outputs.
The R&D Plan provides that the Corporation’s activities will be focussed in three investment arenas:
- The Regional Futures Arena focuses on the implementation and/or integration of existing technologies or close-to-market emerging technologies to enhance the economic, environmental and social sustainability of regional sugarcane industries. Some R&D in this arena will be applicable to all or several regions, while in other cases R&D approaches may need to differ to fit the outcome that each region or mill area is seeking.
- The Emerging Technologies Arena recognises that the industry is reliant on strategic research to sustain it into the future. R&D conducted in this arena will mainly involve research on frontier technologies or implementation of more-distant-from-market emerging technologies in the fields of breeding systems, farming, harvesting, milling and marketing systems, biotechnology and diversification.
- The People Development Arenarecognises the need for a continued focus on improving the skills and capabilities of members of the sugarcane industry and improving the functioning of partnerships between industry, researchers, and the general community. This ensures that there is the capacity for opportunities provided by more technical R&D to be realised.
In 2008–09, SRDC invested in all three arenas of the R&D Plan. The Board took a conservative approach to investment in recognition of reduced production levels and the impact of climate variability. However, in doing so, SRDC has supported a range of initiatives designed to improve industry sustainability and flexibility. These include research into improved drought tolerance, use of new technologies for harvesting, production and processing, and investigation of new options for value adding and alternate uses for sugarcane.
External negative impacts on the sugar industry are likely to reduce in 2009–10 improving industry outlook and stabilising levy returns to the research program. Although Australia’s total production is expected to drop marginally, the export value is expected to increase due to the favourable foreign exchange rate and the ability to lock in forward prices. Demand from developing countries including China and India, combined with the European Union reducing production in the medium term, are likely to maintain some upward pressure on price. Brazil’s continuing emphasis on using sugar for the production of ethanol as an alternative fuel is also reducing competitive pressures on world sugar prices. The SRDC research program for 2009–10 will assist the industry’s strategic preparation for change in the energy economy, improve industry resilience to climate variability and increase the cost effectiveness of current farming, harvesting, processing and value adding activities.
In the Regional Futures Arena, development of information tools will be a focus for 2009–10. SRDC will support development of an accessible web-based harvest planning tool, a web based variety selection model and a real time supply and harvest information system to improve decisions of growers, harvesters and millers. A Soil Capability and Management Package (SCAMP) for on-farm management decision making will be developed and research undertaken to define best-management nutrient practices at block scale using site/soil specific nutrient recommendations and a new irrigation scheduling system developed that will allow interactive planning by irrigators. In addition, a model will be created that integrates Area Wide Natural Resource Management projects and improves understanding of the factors contributing to rising water tables in the Burdekin. A framework for analysing the general environmental risks of genetically modified (GM) sugarcane and strategies to minimise the exposure of potential hazards from GM sugarcane will be supported to facilitate evidence-based regulatory decisions on the release of GM sugarcane. Additional activities will facilitate in-field mapping of cane constituents in the field, introduce new biosecurity monitoring systems, demonstrate cost savings and profitability improvements and benefits of a range of farming systems, review design and performance of sugarcane harvesters, and test milling new equipment and address environmental concerns by developing new composting and waste management system.
In the Emerging Technologies Arena, the focus will remain on enhancing breeding and genetic systems to expand the potential for the sugarcane plant to produce traditional and new products and to develop specific varieties for energy generation. This will include an improved genetic map of three sugarcane varieties, development of a significant set of bioinformatics databases organising data relevant to more efficient marker discovery, and development of knowledge and tools to create new sugarcane varieties with efficient nitrogen use. SRDC will also support improved on farm mechanisation and technical assessment of milling equipment. A techno-economic evaluation of a new furfural process and development of high value products that can be recovered from hydrolysed bagasse to improve returns from processing waste. The Corporation will provide its final contributions to the Cooperative Research Centre for Sugarcane Innovation Through Biotechnology.
In the People Development Arena the Corporation will continue support for travel and learning opportunities and scholarships to improve industry and research capacity. In addition, SRDC will provide a framework for enhanced effectiveness of partnerships and networks contributing to the sugarcane industry through support for projects undertaken by Grower Group Networks, a research and development symposium and scholarships forums.
The SRDC is currently working with other key industry stakeholders to develop a National R&D Plan for the Sugar Industry. It is anticipated that this Plan will be adopted in 2009–10.
1.2 Agency resource statement
Table 1.1 shows the total resources from all origins. The table summarises how resources will be applied by outcome and by administered and departmental classification.
Table 1.1: CAC Act Body Sugar Research and Development Corporation Resource Statement—Budget estimates for 2009–10 as at Budget May 2009
1.3 Budget measures
The SRDC is not affected by any 2009–10 budget measures.
1.4 Transition from outcomes and outputs to outcomes and programs
From the 2009–10 Budget, all General Government Sector (GGS) entities will be reporting on a program basis. The table below outlines the transition from the 2008–09 Budget year (as at Additional Estimates) which was presented in administered items, outputs and output groups to the program reporting framework used for the 2009–10 Budget. The table also captures revisions made to GGS outcome statements under the Operation Sunlight Outcome Statements Review.
Figure 2: Transition table
15 Sep 2009