UPDATES ON THE REFORM PROCESS 

• 17 February 2012: Sugarcane growers urged to attend important research reform meetings
  (Australian Sugar Industry Alliance Media Release)
  Sugarcane growers and everyone interested in a strong future for the sugar industry are being urged to attend meetings in their local district in March to learn more about reforms underway for research in the Australian sugar industry including local approaches to extension and services. More >

• 24 January 2012: 2012 marks year of sugar research reform
  (Australian Sugar Industry Alliance Media Release)
  2012 will be a watershed year for Australia’s sugar industry as reforms to its research and development (R&D) model create a single and sustainable sugar research organisation with a larger research funding pool. More >

• 05 January 2012: BSES moves on sugar RD&E reforms: necessary for strong future
  (BSES Limited Media Release)
  BSES Limited today announced its plans for transitioning into the proposed new RD&E structure for Australia’s sugarcane industry. The changes, developed through the Australian Sugar Industry Alliance (ASA) and to be implemented over 2012-13, aim to revitalise, strengthen and streamline research, development and extension to ensure the industry’s continued viability. More >

• 21 December 2011: Research reforms start delivering for sugar industry  
  (Australian Sugar Industry Alliance Media Release)
  This week, sugar cane growers will receive a letter from BSES Limited on the changed service fee arrangements for 2012. The service fee is collected by BSES from growers and millers to fund a range of activities including plant breeding and variety development. More >

• 15 December 2011: ASA leaders outline vision for sugar research reform
  (Australian Sugar Industry Alliance Media Release)
  A single, streamlined sugar research organisation will modernise Australia’s sugar industry by funding more research to keep the industry competitive and sustainable, Australian Sugar Alliance Chair Alf Cristaudo said this week after key industry meetings. More >

• 12 December 2011: Reforms to modernise sugar industry R&D underway: progress report
  (Australian Sugar Industry Alliance Media Release)
  Reforms to the Australian sugar industry’s research and development model have begun, paving the way for a single, sustainable and streamlined industry research organisation with a larger funding pool. More >

• 28 October 2011: A new era for sugar industry R&D announced today
  (Australian Sugar Industry Alliance Media Release)
  The Australian sugarcane industry today has revealed a comprehensive plan to strengthen and streamline the research, development and extension (RD&E) function. The changes more than double the industry’s contribution to funding R&D from $10 million in 2005/06 to $21 million in 2013/14, creating certainty in the delivery and funding of core RD&E activities. More >

ARCHIVED INFORMATION ON THE RD&E RESEARCH REVIEW

Continuation of an Industry owned and controlled RD&E Operation is critical to our Industry

BSES is currently heavily investing in GM sugarcane and SmartSett technologies which have the potential to yield significant benefits to the industry in the medium to long term.

1. BSES is experiencing severe funding shortfalls in maintaining the bulk of its existing RD&E operations for a range of reasons – from funding these new ventures to seasonal and other issues, which have seen crop size and resulting revenues drop off over time.
2. Severe funding issues to be addressed
3.  
4. Late last year the BSES Board decided to progress Plant Breeding Rights (PBR) as a replacement for its Service Fee to address its increasingly poor financial position.
5. CANEGROWERS and the Australian Sugar Milling Council worked with the BSES Board to delay this move and subsequently agreement was reached for:
   - A full scale review of BSES and industry research structures to be undertaken as a matter of urgency.
   - Interim additional funding arrangements to be put in place to support the continuation of BSES and the GM sugarcane joint venture with DuPont whilst the review was completed (expected February 2011) and the restructured business model implemented (expected January 2012).
7. Funding:
   GROWERS: CANEGROWERS recognised the gravity and importance of this issue and conditionally agreed to an extraordinary 10¢ per tonne additional contribution over and above the service fee for two seasons 2010 & 2011. The best approach to sourcing this interim funding requirement was refined over many months. The proposal seen to be the most effective and efficient way to address this issue is to have an increase in the service fee, for 2011 season only, from 20¢ to 40¢.
   MILLERS: Mill owners, via ASMC, have committed an extra 5 ¢/t for each of the 2010 and 2011 seasons, and have already commenced arrangements for this to occur (5¢ in 2010 and 5¢ in 2011).
   
8. CANEGROWERS recognises that this is an impost on growers and firmly believes that this extraordinary action is required because the situation is so dire. CANEGROWERS and ASMC believe the continuation of BSES is so critical, that it is necessary to ask the growers and millers who benefit from the work of BSES to provide surety that it will continue its work.
9. This additional funding equates to approximately 15¢ per tonne additional revenue for each of the 2010 and 2011 seasons by growers and millers - the absolute minimum required to keep BSES going in the interim. Budgeting for BSES already takes account of reductions in expenditure where possible and no change in crop size. This will mean BSES will maintain a slightly reduced program in the interim period but with a significant deficit budget; before a full restructure can be rolled out.
10. These funds are therefore the minimum that BSES will require for 2010 and 2011. The money put in will sustain BSES until the total reforms following the review can be implemented.
12. Comprehensive review of the sugarcane industry’s RD&E:
    CANEGROWERS and ASMC are jointly contributing a significant investment into the review of RD&E of the sugarcane industry. This review will include BSES, SRDC and other research and extension providers to the industry.
13. Within six to nine months we expect delivery of a new sustainable model for RD&E for the industry, including the maintenance and enhancement of the plant variety breeding program.
14. 
    More details about the review will be posted here as they come to hand.