Home › Our Outputs › Commercial objectives
Commercial objectives
On this page:
In the GRDC strategic business plan, The Way Forward, the commercialisation objective is stated as:
to leverage capital and expertise from co-investors who maximise the opportunity to bring the technology to the marketplace giving graingrowers access to the technology while at the same time providing a satisfactory return on GRDC's investment.
Commercialisation is one way of securing technology adoption. In some cases, the benefits of GRDC research investments can be most efficiently delivered to our growers through the commercial production of the research outputs. The GRDC's primary aim is to make new technology available to graingrowers as quickly and as cost-effectively as possible.
Commercialisation strategy
The strategic imperatives of the GRDC's commercialisation strategy are:
- alignment with the corporation's four core strategies, including leveraging of funds, know-how and expertise, and having marketdriven R&D
- relevancy to the existing and new strategies of the four lines of business (Varieties, Practices, New Products and Communication and Customer Services)
- identification of investment opportunities and having a complete business plan for delivering benefits to the GRDC's customers.
Usually the GRDC is only one of a number of organisations investing in the development of new technologies by public and/or private organisations. Investment partnerships are desirable and necessary, because they reduce the risk to the GRDC in the funding of new technologies, and because partner organisations can bring benefits, apart from financial resources and research capability, such as market knowledge and access to complementary technologies.
Where the GRDC is a member of a consortium using public and private sector funds, it has influence over the terms of commercialisation, and determines these in collaboration with the other investors to ensure that a proper balance is struck among the needs of all members of the research consortium.
The GRDC continues to seek new business opportunities that arise from its research portfolio, and to seek to provide benefit to growers, to the businesses undertaking the commercial development of new products, and to the GRDC and its research partners. For each commercial business opportunity, the GRDC seeks investment of resources from partners that will profit from the development and widespread uptake of the new technology. This is an important part of using GRDC investment funds to leverage funds from other sources-including, in this area, commercial investment funds-for the benefit of growers.
Commercialisation outcomes
Every commercialisation task is unique, and the process of bringing products and technology to market must be undertaken on a project-by-project basis. A cross-section of commercialisation work undertaken in 2005-06 is described below.
End Point Royalty review
During the year, the GRDC undertook a review of the End Point Royalty (EPR) system in Australia. The review identified a rapid increase in the adoption of wheat and barley varieties attracting EPRs. It also identified a need for system improvements which potentially could be achieved by using standardised contracts.
In addition, the review highlighted a need for industry to consider better royalty collection mechanisms. Currently, EPR collection appears to work well in Western Australia but is more challenging in northern Australia, particularly where grain is delivered directly to grain users, such as feedlots, rather than passing through bulk-handlers.
The GRDC, in concert with industry, will use the information from the EPR review as a basis to engage industry in discussions on ways to improve the system.
Soil inoculant technology
Bacteria of the genus Rhizobium play a very important role in agriculture by inducing nitrogenfixing nodules on the roots of legumes such as peas, beans, lucerne and lentils. This symbiotic relationship between soil bacteria and legumes can reduce the requirement for added nitrogenous fertiliser, not only during the growth of leguminous crops but also in cereal crops that follow a legume rotation.
The New Products output group is seeking to build on existing expertise in this area to harness naturally occurring soil biological inoculants to reduce fertiliser costs and improve productivity across the Australian grains industry. GRDCsupported research being carried out by a diverse group of Australian institutions, including CSIRO, the South Australian Research and Development Institute, the New South Wales Department of Primary Industries, the Australian National University, Flinders University and Murdoch University, aims to develop commercial formulations of Rhizobium species for legumes.
These research partners are also working on a suite of other new inoculants for disease suppression, growth promotion and nutrient solubilisation purposes in non-legume crops, including cereals and canola. Several commercial players from Australia and overseas are already active in this market. In 2005-06, the GRDC formed an international partnership with Canadian firm Philom Bios Inc. to test and develop a range of soil inoculant products. The venture was so successful that the partners established a commercial company, Philom Bios (Australia) Pty Ltd, to deliver a range of leading-edge technologies to Australian growers.
New crop varieties
In 2005-06, the GRDC was actively involved in the release decisions and tender evaluations for six wheat varieties and five barley varieties. This involved making sure that the interests of the owners of the varieties (usually the GRDC and a research partner) were protected after effectively-for the GRDC, this means achieving commercial terms that encourage rapid adoption of superior varieties by growers.
In selecting commercial partners for wheat and barley varieties, the GRDC takes into consideration capabilities such as the ability to produce quality seed, the ability to market seed successfully, and the targets for seed production and variety uptake. The management and collection of EPRs, including the terms and conditions imposed on growers, are also taken into consideration in assessing tender applications.
In 2005-06, the GRDC, with its research partners, played an active role in selecting the most appropriate licences to commercialise these new releases. For the state-based wheat and barley breeding programs, this involved advertising nationally for a commercial partner to take up an exclusive licence. For example, a GRDC-funded project with CSIRO Plant Industry produced the dual-purpose winter wheat variety RuddA. AWB Seeds Pty Ltd won the tender to commercialise this high-yielding, disease-resistant feed wheat variety.
In addition, companies in which the GRDC holds an interest also released several new varieties. For example, Australian Grain Technologies Pty Ltd released wheat varieties CarinyaA, CorrellA, SUN404BA, VN0870R and VO2697R.
New pasture varieties
The National Annual Pasture Legume Improvement Program (NAPLIP) is supported by the GRDC, Australian Wool Innovation Ltd, six state government agriculture agencies and CSIRO. The program comprises scientists and technicians involved in cultivar development, evaluation and demonstration activities, and many more individuals involved across the seed industry in activities from production to cleaning, distribution and sales.
Peter East, Grain Protection Genes program. Photo: Brad Collis
As described in more detail in the report of operations for the Practices output group, the program released four new cultivars in 2005-06: MintaroA, a new subclover; SARDI Persian, the first NAPLIP-bred Persian clover; and MoonbiA and WilpenaA, the first cultivars of sulla bred in Australia.
The new releases add to the 26 other cultivars produced by the program over a 20-year period. Total releases from NAPLIP now include 11 subclovers, eight annual medics, four serradellas, two balansa clovers and two sullas, as well as cultivars of biserrula, gland clover, burgundy bean, butterfly pea and others.
These cultivars cover the broad spectrum of environments and farming systems across Australia in which pasture legumes play a vital role as both livestock feed and rotation crops. Because 85 percent of crop nitrogen is derived from nitrogen-fixing legumes, the development of new species and the continued improvement of existing cultivars is particularly important for the long-term viability of Australia's cropping industry. NAPLIP pasture cultivars are also highly renowned overseas, in Africa, Europe and South America.
Through commercial arrangements with all of Australia's major seed companies, NAPLIP cultivars have been made widely available on domestic and export markets and are selling in volumes around 500 tonnes per annum. Each year, from Western Australia to Queensland, NAPLIP cultivars are sown from certified seed across half a million to a million hectares of mixed farming lands, and an even larger area is sown from farmer-saved seed.
Grain Protection Genes projects
GRDC-supported work conducted through Grain Protection Genes continued to bring new technologies closer to market. Two candidate antifungal genes and a candidate gene for controlling heliothis were transferred to a new gene validation project and progressed through plant proof-of-concept stage during 2005-06. All three genes show sufficient promise to warrant transfer for testing in appropriate crop models.
Also in 2005-06, the first candidate herbicide resistance gene was isolated, and a provisional patent application for the gene was filed. The gene has been transferred to the gene validation project for plant evaluation.
Case Study
Philom Bios (Australia) Pty Ltd leads soil inoculant development
The development of soil inoculant technology is an area of rapid growth around the world. The GRDC has secured a leading role on behalf of the Australian grains industry, through a commercial collaboration with a Canadian partner.
In November 2003 the GRDC sought expressions of interest from potential partners to commercialise the results of GRDC-supported soil inoculant research. Thirteen expressions of interest, four from Australia and nine from overseas, were assessed against essential selection criteria for technology, capacity and experience in the delivery of soil biology products to graingrowers. In 2004, Philom Bios Inc., based in Saskatoon, Canada, was identified as GRDC's preferred commercial partner.
Philom Bios Inc. has a 25-year history of developing and marketing soil inoculants for legumes, cereals and canola in western Canada. More recently, the company has entered the United States corn and soybean markets. In addition to having technical product development and manufacturing capability, Philom Bios Inc. has a range of unique phosphorus solubilisation and mixed inoculant products with potential to be used under Australian conditions.
In 2005, the GRDC and Philom Bios Inc. entered into an unincorporated joint venture to test and develop a range of inoculants, and to consider establishing a commercial joint venture to which both organisations would contribute capital and intellectual property. This led to the formation of a new commercial company, Philom Bios (Australia) Pty Ltd, on 31 March 2006.
The new company will initially focus on developing and testing a range of new soil inoculant products and delivering them to Australian growers. The first range of products derived from the Canadian parent company will be joined at a later stage by a suite of new products developed by the GRDC's Australian research partners. Products to solubilise phosphorus locked in soils, reduce losses caused by soil disease and promote growth will be introduced over coming years, with an emphasis on the sectors that have previously been unserviced in Australia: cereals and canola.
The GRDC's investment in Philom Bios (Australia) Pty Ltd will both bring forward and increase the benefits from soil inoculant products available to growers in Australia. It will also provide Australian growers direct access to research recognised as the leading edge in agricultural technology.
Business relationships
Most of the GRDC's business relationships are governed by contracts, such as research agreements and the licences of the resulting intellectual property. However, in several cases the most effective way to encourage adoption of innovation in the grains industry is to enter into a company or unincorporated joint venture. Key reasons for deciding to enter into a company or joint venture include more effective management of intellectual property; more focused governance; ease of interaction with the private sector; and, in the case of CRCs, government policy.
Table 5 describes the companies in which the GRDC had shares or membership in 2005-06. In most cases the GRDC also nominated one or more directors to the company's board.
| Name | Activity | GRDCrole |
|---|---|---|
| Companies limited by guarantee | ||
| ACAS Ltd | Provides cereal variety details online forfarmers, manages the National VarietyTrials | Is a member of the company and provides a research contract Nominates a director |
| Agrifood Awareness Ltd | Provides information about genetechnology to enable informed debate | Is a member of the company and provides research funding Nominates a director |
| CRC NPB Ltd | Serves as the management company forthe CRC for National Plant Biosecurity | Is a member of the company and provides a research contract |
| Export Grains Centre Ltd | Invests in plant breeding | Is a member of the company and provides a research contractNominates two directors |
| Grain Foods CRC Ltd | Develops innovative grain products | Is a member of the company and provides a research contract Nominates a director |
| Go Grains Health and Nutrition Ltd | Identifies and communicates thehealth benefits of grain food products | Is a member of the company and provides research fundingNominates a director |
| Pulse Australia Ltd | Provides leadership for the developmentof the pulse industry in Australia | Is a member of the company Nominates a director |
| Value Added Wheat CRC Ltd | Serves as the management companyfor the Value Added Wheat CRC | Is a member of the company Nominates a director |
| Companies limited by shares | ||
| Australian Centre for PlantFunctional Genomics Pty Ltd | Conducts functional genomics researchinto abiotic stress | Is a 22% shareholder in the company, in return for providing funding of $10 million over five years |
| Australian Grain TechnologiesPty Ltd | Undertakes commercial wheat breeding | Is a 45% shareholder and provides research contractsNominates three of the seven directors |
| Australian Weed Management Pty Ltd | Serves as the management company for the CRC for Australian WeedManagement | Has a beneficial interest in one share of the company |
| Philom Bios (Australia) Pty Ltd | Develops and markets inoculantproducts to benefit growers | Is a 50% shareholder and provides research contractsNominates two of the four directors |
Intellectual property management
The corporation usually owns a share of all intellectual property generated by research projects it funds. This consists of registrable intellectual property (plant breeder's rights, patents and trademarks) and non-registrable intellectual property (copyright and trade secrets).
The corporation actively manages its intellectual property, to:
- ensure that research outcomes are adopted as quickly and effectively as possible, by either dissemination or commercialisation
- provide access to GRDC intellectual property and gain access to third-party intellectual property where it will facilitate the delivery of research outcomes to our stakeholders.
The corporation (together with research partners) registers intellectual property where to do so will achieve the above objectives, and maintains a register of its registered intellectual property.
Patents
Ventura wheat seed protected by plant breeder's rights and carrying an end point royalty. Photo: Kellie Penfold
The corporation continued to file and prosecute a number of patent applications and to maintain a number of patents, each time in conjunction with research partners.
Plant breeder's rights
In 2005-06 the GRDC and its research partners:
- lodged 17 new plant breeder's rights applications
- withdrew two new plant breeder's rights applications for plant varieties that will not be commercialised
- surrendered three certificates of plant breeder's rights for plant varieties that have reached the end of their useful commercial lives.
Trademarks
The corporation lodged no trademark applications in 2005-06, and maintained all of its existing trademarks.
Subsidiaries
During the year the GRDC had no subsidiaries.