Highlights 2010/2011

AgResearch Chair Sam Robinson

Chair's report

The last 12 months have been characterised by immense change for AgResearch, partly self-imposed, partly the result of Government-led reform, and partly visited upon us by nature.

I am impressed by and deeply appreciative of the way the people in this organisation have risen to
the challenges posed by these changes.

The CRI reforms have been well reported. Their impact on AgResearch and the sector is overwhelmingly positive, providing clarity of purpose and emphasising the need for AgResearch to move closer to the sector. This shift will inform our ongoing strategy and the science we undertake. Interested readers will find full details in the AgResearch Statement of Corporate Intent, available for download from the AgResearch website.

It should also be recorded that during the year FRST and MoRST merged to form a new entity, MSI. This consolidates ownership, funding and monitoring functions, creating further clarity for AgResearch in our dealings with the Crown. We appreciate all that the team at MSI provide to AgResearch and, indeed, to the whole pastoral sector.

CRI reforms notwithstanding, AgResearch faces an ongoing challenge to secure funds for the research that our sector needs. While it is widely known that New Zealand under-invests in R&D compared with other OECD nations (approximately 1.2% of GDP vs an OECD average of around 2.2-2.4%), less well known is that direct government investment in New Zealand is about on a par with other countries. The significant difference is in investment by the private sector, including industry-good bodies. Despite valid arguments concerning varying tax regimes, one fact remains: if the New Zealand private sector wishes to be globally competitive and relevant, it must invest realistically in R&D – and it is our responsibility to make that investment worthwhile.

Neither can the Crown afford to become complacent. While I applaud the Government’s emphasis on science as one of the keys to this country’s future wealth, I trust that the contribution of the pastoral sector – and the potential for the sector to contribute even more through innovation and scientific discovery – will not be overlooked. The biological economy is the basis of New Zealand’s competitive advantage, and R&D, along with human capital, is a critical driver.

This year’s annual report is the first since the appointment of former Scion CEO Dr Tom Richardson as AgResearch CEO in late 2010. It is extremely pleasing to have someone of Tom’s calibre in the role. He has hit the ground running, bringing fresh energy and an innovative approach to many areas in which AgResearch operates. His early period with AgResearch coincided with a thorough review of our strategy and our first Statement of Corporate Intent in response to the
new, post-CRI Taskforce environment. This is covered in more depth in the Chief Executive’s report.

During the year a number of long-serving senior executives and Directors left the company and it is my privilege to acknowledge the significant contribution they have made to this organisation over the years – a contribution that can never be fully measured. In particular, my thanks go to Dr Jimmy Suttie who assumed the demanding role of COO at various times over the last two years and was also acting CEO for a period. Directors Danny Chan and Andrew MacPherson who were very strong contributors to the Board, also left in 2011 and I thank
them for their valuable input during their time with AgResearch.

This year has seen a pleasing turnaround in AgResearch’s financial results, which were above budget. Nonetheless, the Board also recognises this result is not yet adequate, and is working assiduously with management to place the business on a more sustainable footing. This has been a demanding year for the Board and my thanks go to my fellow Directors for their work and dedication.

This report would not be complete without mention of the events in Christchurch over the last twelve months. While our AgResearch campus suffered relatively minor direct damage as a result of the September and February earthquakes, and we were thankful that no staff were injured or worse, some of our staff lost people close to them, or experienced damage to their homes and massive disruption
to their lives. I acknowledge the resilience and tenacity that they have
shown. Our thoughts continue to be with all our AgResearch staff in
Christchurch and, indeed, with the whole city.

It is appropriate, too, to acknowledge all our staff, who have performed admirably during this time of change. As an organisation, we are only as good as the science we conduct, and the degree to which that science connects with stakeholders. Thank you all for the wonderful contribution you make.

Sam Robinson
Chair