W H E R E W E I N V E S T E D
Table 2: Expenditure 2006/07 Business group Objective 1 ($’000) Objective 2 ($’000) Objective 3 ($’000) TOTAL ($’000) Farm Productivity & Delivery 18,863 0 776 19,639 Value Chain Innovation 0 5,793 3,229 9,022 R&D Administration 170 113 70 353 Technical Issues 858 1,161 808 2,827 National Marketing 0 1,908 7,423 9,331 Trade & Strategy 564 3,976 1,138 5,679 Corporate Affairs 1,028 1,028 1,031 3,086 Corporate Services (including Human Resources) 1,521 1,825 1,545 4,890 TOTAL 23,004 15,803 16,020 54,827 R&D PROJECTS Table 3: R&D contracts and on-going activities 2006/07 Number of contracts funded 290 Number of new contracts 108 Number of completed contracts 128 Number of final reports 50 Number of PhD students 26 Table 4: Qualifying R&D and industry services expenditure 2006/07 $’000 Qualifying R&D 36,300 Industry services 18,527 Total expenditure 54,827 Total ‘qualifying R&D’ expenditure for 2006/07 was $36.3 million. This consists of eligible R&D and capital expenditure, less depreciation. Government matching payments of $16 million were received. The amount of matching payments is the lesser of the following: • 0.5 per cent of the amount determined by the Minister in accordance with Dairy Produce Regulations 1986 (Cth) to be the gross value of whole milk produced in Australia in that year. This calculation is based on a three year average to smooth the effects of year-on-year fluctuations in price and volume; and • 50 per cent of the amount that is spent by the Company on qualifying R&D activities in that year. As the gross value of production for dairy for 2006/07 for the determination of matching payments was $3.2 billion, matching payments were calculated to be 0.5 per cent of this amount. Total accumulated unmatched qualifying R&D expenditure at 30 June 2007 was $18.7 million. This has been carried over into the new financial year in accordance with Clause 3.2 of the SFA and sections 6(6) and 6(7) of the Dairy Produce Act 1986.