annual report 09/10 - Apri.com.au

annualreport09/10

mission statementThe Pork Cooperative Research Centre (CRC) aims to enhance the efficiency and costcompetitiveness of the Australian pork industry, while maintaining environmentally sustainableagricultural practice, allowing the efficient production of innovative pork products from enhancedgrain resources and with improved feed conversion efficiency.objectivesThe Pork CRC’s research and development programs will result in the following outcomes:1. Reduced production costs for high-quality pork through more reliable and consistent protein andenergy supplies via innovative grain production, co-product utilisation and quality assessment;2. Reduced production costs for high quality pork through improved herd feed conversionefficiency; and3. Increased demand for high-quality, niche Australian pork products as a result of enhancedcapacity to deliver nutrients promoting the health and well-being of consumers via consumptionof pork and pork products.These research outcomes will contribute to Australia’s industrial, commercial and economic growththrough two further commercial outcomes:4. Stabilised and sustained domestic and export pork markets; and5. Improved confidence in the pork industry leading to increased investment and industry growth.

contentsChairman’s report.................................................................................................................................................................................................2Chief Executive Officer’s report...............................................................................................................................................................4Structure........................................................................................................................................................................................................................8Governance................................................................................................................................................................................................................9Directors.....................................................................................................................................................................................................................10Management...........................................................................................................................................................................................................13Operations................................................................................................................................................................................................................18Research programs.........................................................................................................................................................................................19Education...................................................................................................................................................................................................................72Intellectual property management.....................................................................................................................................................77Pork CRC communications report.....................................................................................................................................................80Financial statements.......................................................................................................................................................................................82Directors’ report.............................................................................................................................................................................................83Statement of comprehensive income..........................................................................................................................................87Statement of changes in equity........................................................................................................................................................88Statement of financial position..........................................................................................................................................................89Statements of cash flows......................................................................................................................................................................90Significant accounting policies..........................................................................................................................................................91Notes to the financial statements....................................................................................................................................................95Directors’ declaration............................................................................................................................................................................ 101Independent audit report to the members........................................................................................................................... 1021

Pork CRC LimitedChairman’sreportWelcome to the fifth annual report of the PorkCooperative Research Centre (Pork CRC).Fiscal 2010 started on a somewhat buoyantnote, with the pork supply/demand situationin reasonable balance. However, by late fiscal2010, domestic prices came under pressureas a result of increasing supply flowing fromsow numbers which had risen in response tobuoyant prices earlier in the year.Domestic supply issues aside, there is no roomfor complacency. Our processed pigmeatmarket is still under attack from imports and westill have some way to go to make our industryinternationally cost competitive. There remainsa real need and urgency to continue to reducecosts and improve product attributes attractiveto consumers, both core objectives of thePork CRC. Further, pig welfare is an issue ofincreasing concern to consumers, with at leastone supermarket chain now requiring Australianpigs grown to supply the fresh pork market beraised without gestation stalls by 2014.Results flowing from all three of our researchprograms in the past year have been verysatisfying and are reported elsewhere in thisreport. Pleasingly, there has been a continuedappetite among producers to adopt CRCdevelopedtechnology into their commercialoperations. The high level of producer interest inCRC research is evidenced by high attendancesfrom producers and industry advisers at CRCinformation days.In education and training, the CRC is generallywell ahead of its agreed Commonwealthmilestones, thereby increasing the skill levelacross the industry, as well as its interest in andcapacity to adopt future innovations.Another important outcome in 2009 was thenegotiation, jointly with Australian Pork Limited,of agreements with six providers of researchfacilities under which, in return for an annualcash contribution by the CRC towards runningcosts, the CRC will have assured access towell maintained facilities into which researchpersonnel from other organisations which maynot have adequate pig research facilities, canbe placed. These arrangements worked verywell in 2010.2

Chairman's reportThroughout the year, a team led by Dr Rob vanBarneveld put together a proposal for furtherfunding for the CRC so that it can extendbeyond its scheduled end date in 2012. There-bid for the CRC for High Integrity AustralianPork was submitted in June 2010 and itsfate should be known by January 2011. Theresearch proposed to be conducted in there-bid CRC is very important and exciting, aswell as being very topical. The key objectivewill be to produce pork in more welfarefriendly facilities, using less pharmaceuticalinterventions, with a reduced carbon footprint,but at no greater cost.Finally, to our people. Our board ischaracterised by a great depth of knowledgeof and commitment to the pork industry. Oneof our founding directors, Enzo Allara resignedas a director during the year, and was replacedby Paul Pattison. I thank Enzo and all continuingdirectors for their valued inputs throughoutthe year. Dr Roger Campbell, our CEO, is anoutstanding research manager and a greatenthusiast and advocate for the CRC and itsrole in developing our pork industry. Rogerdeserves special thanks and recognition forhis tireless efforts. And, last but not least, ourresearchers who create our successes. I thankthem all.Dr John Keniry, AMChairman3

Pork CRC LimitedCEO’s reportWith prices remaining at sustainable levels andfeed costs at or just above longer term trendlevels for the first three quarters, producersachieved reasonable margins in 2009-10.However, marked increases in the levels ofimported pork and increased domestic supplycombined to reduce prices and producermargins in the last three to four months of theyear. Margins will remain vulnerable to furtherincreases in imported pork, increasing domesticsupply and volatility in global grains markets.Globally, the situation was not as positive,with the majority of pork producing countriesexperiencing continued losses and, in the caseof Canada and the USA, large losses, duemainly to oversupply of pig meat. Prices in bothcountries, but especially in the USA, exhibitedstrong improvement late in 2009-2010 and arepredicted to reach near record levels throughthe first and second quarters of 2010-2011.Domestic demand for pork in the USA (andAustralia) remains flat and improvements inprice experienced in Australia in the last 18months and in the USA more recently, havebeen largely due to a decline in the supply ofpork. However, the USA situation has beenassisted by their impressive export effortswhich, in the last two years, have exceeded 2billion kg annually, or 16-18% of production.In the longer term, the profitability of theAustralian pork industry will depend on betterunderstanding the sensitivity of price toseemingly small changes in supply, increasingdemand and continuing to produce porkefficiently and sustainably. The Pork CRCprograms are designed to reduce the cost ofproduction and enhance productive efficiency.Program 3 also aims to increase demand bydefining and promoting the natural humanhealth attributes of Australian pork.Grain supply and costs are likely to remainunstable and developing alternative feedstuffs,specific feed grains and improving feedefficiency will continue to be central to thelonger term viability of the Australian porkindustry.The Pork CRC programs and projects in thefeed grain and feed efficiency areas have hadsome important commercial and researchoutcomes during the reporting period.From Program 1 (grains) the new triticale,Berkshire, which was released last year,performed well in producer-grower systemsin NSW, Victoria and WA and will be grownin closed loop systems this season. The fieldpea, Maki continues to yield well and a numberof new pea varieties with even higher yieldpotential will be released this year.4

CEO reportThe Pork CRC enhanced Near InfraredSpectrometry (NIRS) calibrations for rapidlydetermining the DE and other nutrient contentsof grains were commercialised last year underthe Trade Mark AusScan. The calibrations,now licensed to 17 organisations, are widelyused by nutritionists, feed mills, producers,plant breeders and researchers. Producers andgrowers are encouraged to use the service tobetter understand the value of their grains andto maximise the cost effectiveness of the dietsused in pork production. NIRS calibrationshave also been developed and released forthe available lysine content of canola seedmeal and researchers at the Department ofAgriculture and Food WA (DAFWA) are currentlydeveloping NIRS calibrations for the availablelysine content of soybean meal. Initial resultsfrom these studies suggest available lysinecontent of imported soybean meal varies by30%. Surprisingly, the greatest variation foundhas been in meals imported from the USA.Subprogram 1B has demonstrated thatremoving and regrinding larger particles(>1.0mm) from ground sorghum and barleypassed initially through a 4 mm hammermillscreen improved the feed efficiency ofweaner pigs offered barley and sorghum basedmash diets by 22% and 15% respectively.For grower pigs offered the same diets, feedefficiency on the sorghum and barley baseddiets improved 10.5% and 8.3%, respectively.Pelleting the diets also improved feed efficiency,but to a lesser extent than regrinding, with theeffect being more pronounced for barley thansorghum. These are extremely large effects withwide ranging commercial implications. Researchis now determining if the effect is related to thedistribution of different size particles, or simplyaverage particle size. We will also investigatedifferent grain process technologies and surveymills and producers to better understand theextent particle size varies across the industryand the impact it might have on grain utilisation.Grain processing is an area where Australialags the rest of the world, or tends to pay lessattention to, what is an important area forfurther enhancing the efficiency of grain use andone which may constrain the overall efficiencyof the Australian industry.The Pork CRC supported Feedlogic automatedfeeding systems in Western Australia andQueensland and a base funded facility in SouthAustralia continue to provide new commercialinformation on the performance of pigs ingroups and enable new technologies to becommercially tested.During the reporting period, Karen Moore andDr Bruce Mullan from DAFWA provided moreinformation on the performance capabilitiesof Australian genetics. Using pigs between 50and 100 kg, they reported differences betweenfemales and entire males in all aspects ofgrowth performance and in response to dietaryamino acids. They also reported average feed:gain values of only 2.1 for entire males and 2.4for females. These are in line with the very lowvalues reported last year for pigs of the samegenotype growing between 20 and 50 kg.In an associated study, Pork CRC honoursstudent Amy Lealiifano reported world classperformance levels for entire males andimmunocastrates growing between 50 and105 kg. Amy also showed, for the first time,that giving pigs a second Improvac vaccinationtwo weeks before sale completely eliminatedboar taint and essentially removed the potentialadverse effects of the technology on feedefficiency and carcass fatness. Both feedefficiency and carcass fatness increased as theperiod between the second vaccination andsale increased.5

Pork CRC LimitedA study in South Australia by Tony Edwardsin more commercial facilities confirmed theexcellent performance capabilities of Australiangenetics under what might be termed real worldconditions. Together, these and results fromother commercial participants leave little doubtthat in terms of growth performance, geneticsalone are not a constraint to the efficiency ofpork production in Australia and this representsa major advance in our understanding of thecapabilities of locally available genetics.In animal health, researchers from Industry& Investment NSW and Murdoch Universitydeveloped new diagnostic tools for Ileitis andswine dysentery respectively, while Dr ToniChapman continues to develop high technologyprobiotics against pathogenic E coli. Outcomesfrom these projects are exciting and should beavailable to industry in 2010-2011.There have also been some fascinating researchoutcomes from Pork CRC PhD student, MeganEdwards, whose PhD is on the effects ofnutrition at and around weaning on the longerterm performance and health of pigs. Shehas found that even limited experience of dryfeed before weaning can improve piglet gutdevelopment and health and survival afterweaning. Megan also showed that includingspray dried porcine plasma at 5% in the dietoffered pigs one week before and one weekafter weaning, markedly enhanced gut anddigestive capacity and improved survival,especially in gilt progeny, before and afterweaning. The findings have important scientificand commercial implications and demonstratethe effects of creep feeding extend beyondsimply the performance of pigs before and afterweaning.Program 3 again delivered several excitingoutcomes in the last year. University of SouthAustralia researchers reported that includingpork in the diets of overweight subjects had noadverse effects on cardio vascular health, butresulted in significant weight and body fat loss,compared to subjects on their normal diets.University of Sydney researchers reported thatpork increased the feeling of well being in youngwomen and tended to enhance concentrationsof serum vitamins B6 and B12. The researchersalso found that including pork in the dietof young women maintained haemoglobinlevels to the same extent as a low-dose ironsupplementation.The outcomes have, so far, all been verypositive and will help address the perception ofpork as a less healthy meat. More importantly,the results suggest there is something aboutpork and that it may have health advantagesover other meats for humans. New researchprojects aimed at increasing the iron contentof pork and better understanding the effectsof pork on weight loss and maintenance havebeen commissioned by the Pork CRC.My highlight of the last 12 months was theperformance of our students and researchers atthe Australasian Pig Science Association (APSA).The Pork CRC held its annual conference anda student workshop at Cairns, in conjunctionwith APSA, in November 2009. Of 104 paperspublished in the APSA proceedings, 70 werefrom Pork CRC projects. One of our honoursstudents, Amy Lealiifano, also won the APSAmedal for the best first-time presentation atAPSA and the Pork CRC APSA award for thebest presentation on a Pork CRC supportedresearch project. The competition was tight andeveryone was very impressed by the quality ofthe research and how the students presentedit. They were very professional and all involvedwith the Pork CRC were very proud. A numberof Pork CRC students have subsequently joinedthe pork industry in various roles and the future,as far as having smart people who will make adifference, looks good.6

CEO reportIt is a pleasure to report that the Pork CRCprograms continue to deliver outcomeswith important scientific and commercialimplications. There is an excellent pipeline ofprojects that will continue to deliver outcomesto reduce costs and enhance the efficiency ofpork production in the longer term.I am grateful to our Program and Subprogrammanagers and all our staff for ensuring thecommercial implications of the research areidentified and discussed and the informationextended as soon as possible to porkproducers. I can’t thank our researchers andstudents enough, because without their ideas,research efforts and enthusiasm, advances todate would not have been possible.I expect the Pork CRC to continue to deliverresearch and education programs that will allowAustralia to be a world leader in pig researchand, more importantly, deliver outcomes thatfurther enhance the global competitiveness ofAustralian pork producers.I thank our Chairman, Dr John Keniry andthe Board for their support and assistanceduring what has been another busy, but veryproductive year for the Pork CRC.Roger CampbellCEO7

Pork CRC LimitedstructurestructureThe Pork CRC Limited was established in April 2005 as a company limited by guarantee. The governance andThemanagementPork CRCstructureLimited wasensuresestablishedeffectiveincollaborationChiefbetweenExecutivethe participantsOfficer (CEO).through:This AnnualApril 2005 A high as level a company of involvement limited by of guarantee. commercial participants Report on is the Dr CRC Campbell’s Board, fifth various reporting committeesThe governance and in specific and management research and development structure projects period. His success in the position has beenwill ensure A relatively effective flat collaboration management between structure the with a high through level of involvement his broad knowledge from Program and familiarity and Subprogrparticipants am managers through:with many of the research organisations, World-renowned pig research scientist, Dr Roger Campbell,• A high level of involvement of commercialresearchers and industry participants. Hiswas appointed CRC Chief Executive Officer (CEO).participants on the CRC Board, variousprofessionalism and expertise is well placedThis Annual Report is Dr Campbell’s fifth reporting period. His success in the position has been thrcommittees and in specific research andto ensure the strategic objectives of the CRCough his broad knowledgedevelopment projectsare met through effective collaborationand familiarity with many of the research organisations, researchers and industry participants. His• Many of the participants in the Pork CRC are• A relativelyprofessionalismflat managementand expertisestructureis wellwithplaced to ensure the strategic objectives of the CRC are metthrough effective collaborationalso end users of the technology that will bea high level of involvement from Program Many of the participants in the Pork CRC are also developed, end users of thereby technology facilitating that rapid is being uptake develoand Subprogram managersped, thereby facilitating rapidand collaborative working relationships to• World-renowned uptake and collaborative pig research working scientist, relationships to ensure outputs remain commercially focused.Dr Roger Campbell, was appointed CRCMembersPork CRC Pty Ltd BoardCommitteesResearch & DevelopmentAdoption & CommercialisationEducationAuditChief Executive OfficerProgram Managers Project ManagerBusiness & FinanceManager8Office AdministratorOffice Manager

governanceThe Board is responsible for decisionsrelating to the spending of Pork CRC Limitedfunds, the research program, protection andcommercialisation of intellectual property, aswell as management of the Pork CRC. TheBoard met six times during the 2009-2010reporting period.Individual Directors have a right to obtaininformation necessary for them to dischargetheir duties from executives employed by thePork CRC. The Pork CRC Board has approvedthe Governance Charter that provides theprocedures for Directors to seek independentprofessional advice, at the expense of thecompany if any Director wishes to do so,subject to prior agreement of the Chairmanwhich is not to be unreasonably withheld.Board membership consists of an independentchair, four Directors nominated by privateproducer companies, three nominated bypublic sector research providers and threeindependent Directors.The Pork CRC Board with Western Australian Agriculture and Food Minister the HonourableTerry Redmond MLA, BSc(Agric) Dip Ed.9

directorsProfessor Simon MaddocksPhD, BAgSci (Hons),MAIAST, FAICDProfessor Maddockscurrently holds the position ofChief Scientist of the SouthAustralian Research & Development Institute(SARDI). He is Chairman of the Governing Boardof the Menzies School of Health Research,based in Darwin and Director of the MenziesFoundation in Melbourne. He has held previousBoard positions with the Salinity CRC and PestAnimal Control CRC.Mr Sam McIvor B.Ag, Dip.Ag.Sc, Dip.Bus.Admin, MBA.Mr Sam McIvor is the currentCEO of New Zealand Porkbased in Wellington NewZealand. He is director ofNew Zealand Feed Manufacturers Associationand Retail Meat New Zealand. He has heldprevious positions with Meat and Wool NewZealand in Research and Development andInformation Transfer as well as with Heinz Wattiein Supply Management.Associate ProfessorWayne PitchfordBAgSc (Hons), PhD (UNSW),GAICDA/Prof Wayne Pitchford isa quantitative geneticistwho primarily works on meat quality, feedefficiency and maternal productivity in beefcattle. He is a Program Leader in the CRC forBeef Genetic Technologies and a member ofSA’s Beef Development Team and has had anumber of consultancies to other industries andcountries. He has supervised 55 postgraduateresearch students. His undergraduate teachingis in livestock production, animal breeding andgenetics. He has been involved in restructuringteaching programs at The University of Adelaideand regularly gives talks to farmers.Mr Nigel Smith Dip Ag Sci(Dookie), FAICDMr Smith was formerlyManaging Director of QAFMeat Industries. QAF MeatIndustries (now Rivalea(Australia)) is the largest fully integrated porkproduction company in Australia and is listedin the top 30 pork production companiesworldwide. He was employed with QAF(formerly Bunge Meat Industries) for 33years and retired at the end of 2006. He wasChairman of Diamond Valley Pork (2001–2006)a joint venture company specialising in theslaughter and boning of sows. He was aninaugural Director and Deputy Chairman ofAustralian Pork Limited (APL) from 2001–2007.He was acting Chairman for 6 months in 2005.He also served on other Pork Industry bodiesfor 15 years prior to APL being formed.Dr Robert van BarneveldPhD, B.AgrSc (Hons),RAnNutr, FAICDDr Robert van Barneveldholds a range of positionswithin the pork industryand other primary production sectors. Dr vanBarneveld is a Non-Executive Director of theRidley Corporation, a Specialist Director ofAustralian Pork Limited, Chairman of PorkscanPty Ltd, AQCOM Pty Ltd and Autism AustraliaPty Ltd, a Director of Barneveld Nutrition PtyLtd, the BECAN Consulting Group Pty Ltd,and is President of the Board of Managementof Autism Queensland Inc. In addition toworking as a consultant research scientist andnutritionist, Dr van Barneveld acts as GeneralManager of the CHM Alliance Pty Ltd.11

Pork CRC LimitedMr Paul Pattison Dip Ag SciMr Pattison is the ManagingDirector of Rivalea (AustraliaPty Ltd), the largest verticallyintegrated pork productionbusiness in Australia,Chairman of Diamond Valley Pork and a Directorof Australian Pork Ltd.Company SecretaryMr Patrick Derham FCIS,FAICD, FPNA, CFTPMr Patrick Derham is theBusiness and FinanceManager and the CompanySecretary of the Pork CRC.Board resignations during thereporting period:Mr Enzo Allara ASA, FAIMMr Allara has been involvedin the local and internationalfood and grocery industryfor more than forty years.He is currently Chairmanof Australian Pork Limited, Chairman of theCouncil of Chairs of the Rural Research andDevelopment Corporations, and Chairman ofFoodbank Australia. Mr Allara’s previous roleshave included: Chairman of CPC/AJI Asia inHong Kong, Chairman of Unilever Australasia,Chairman of the Australian Food and GroceryCouncil, as well as a member of the AdvisoryBoard of the Australian Graduate School ofManagement at the University of NSW.12

managementResearch andDevelopment CommitteeThe primary function of the Committee is toprovide leadership for the research conductedby the Pork CRC and make recommendationsto the Board in relation to the funding ofresearch programs and projects.The Research and Development Committeeconducts annual reviews of all projects andmonitors research project performance.The Research and Development Committeeconsists of the Chief Executive Officer, twoDirectors of the Pork CRC and five industrymembers:• Dr Roger Campbell, CEO, Pork CRC (Chair).• Dr Robert van Barneveld, Director, Pork CRC.• Mr Rod Hamann, Director, Pork CRC.• Dr Ray King, Leader – Program 1.• Professor Frank Dunshea, Leader –Program 2.• Ms Heather Channon, Leader – Program 3.• Dr William van Wettere, Leader – Program 4.• Mr Dave Henman, Rivalea Australia Pty Ltd.• Dr Brian Luxford, Rivalea Australia Pty Ltd.Adoption andCommercialisationCommitteeThe role of the Adoption and CommercialisationCommittee is to make recommendations tothe Board on the most appropriate pathwaysto commercialise outcomes from the PorkCRC programs. This Committee will also makerecommendations to the Board in relation toprotection of intellectual property.The Adoption and CommercialisationCommittee comprises an independent Boardmember, the CEO, Company Secretary andindependent advisors as required:• Mr Andrew Maughan, Independent Director,Pork CRC (Chair).• Professor Simon Maddocks, Director,Pork CRC.• Mr Nigel Smith, Independent Director,Pork CRC.• Mr Sam McIvor, Director, Pork CRC.• Dr Roger Campbell, CEO, Pork CRC.• Dr Robert Wilson, CommercialisationManager, Pork CRC.• Mr Patrick Derham, Committee Secretary.• Dr Darryl D’Souza , APL General Manager-Research and Innovation.• Mr Patrick Derham, Committee Secretary.13

Pork CRC LimitedEducation CommitteeThe Education Committee advises andassists the Pork CRC Board in discharging itsresponsibilities in relation to the education andtraining activities of the Pork CRC.The primary functions of the EducationCommittee are to make recommendations tothe Board on:a) Priority post-graduate training areas relativeto industry wide capacity;b) Recruitment and selection of suitablepostgraduate students; andc) Adequacy assessments of the training andeducation subprogram during the life of thePork CRC.The Education Committee consists of the CEO,Pork CRC Company Secretary and two Directorsof the Pork CRC:• A/Professor Wayne Pitchford, Director, PorkCRC (Chair).• Dr Darryl D’Souza, APL General Manager-Research and Innovation.• Professor Paul Hughes, SARDI.• Professor John Pluske, Director Pork CRC.• Dr William van Wettere, University ofAdelaide.• Dr Roger Campbell, CEO, Pork CRC.Audit CommitteeThe Audit Committee serves as therepresentative of the Board for the generaloversight of the Pork CRC affairs in the areas offinancial accounting and reporting, governmentreporting, risk management and the underlyinginternal control environment.The Audit Committee consists of three PorkCRC Directors, including an independentrepresentative:• Mr Brian Halstead, Independent Director,Pork CRC (Chair).• Mr Samuel McIvor, Director, Pork CRC.• Mr Nigel Smith, Independent Director,Pork CRC.• Mr Patrick Derham, Committee Secretary.Directors’ MeetingsThe following tables set out the number ofDirectors’ meetings and committee meetingsheld during the financial year.During the financial year, six Board meetings,six Audit Committee meetings, four Researchand Development Committee meetings, fourEducation Committee meetings and six Adoptionand Commercialisation Committee meetingswere held.• Mr Patrick Derham, Committee Secretary.14

managementBoard Committee meeting attendanceJuly 1, 2009 to June 30, 2010: The total number of meetings represents the number attended duringthe time the Director held office during the year. Attendance includes the use of teleconferences andwritten resolutions.Board of DirectorsMeeting dates: Meetings are held bi-monthly, or as required.Meetings held: August 21, September 24 and November 19, 2009; February 24, April 19 andJune 18, 2010Board of DirectorsTerm of OfficeAppointments2009–10Resignations2009–10Total meetingsduring yearDr John Keniry (Chair) April 7, 2005 6Mr Enzo Allara April 7, 2005 November 19 1Mr Rod Hamann April 7, 2005 6Dr Robert van Barneveld April 7, 2005 6Mr Andrew Maughan January 1, 2006 5Mr Sam McIvor June 20, 2006 6Prof. Simon Maddocks October 12, 2006 5Prof. John Pluske November 21, 2008 5Ass. Prof. Wayne Pitchford November 20, 2007 6Mr Nigel Smith January 1, 2008 5Mr Brian Halstead November 20, 2007 4Mr Paul Pattison November 19, 2009 November 19 3Mr Patrick Derham(Company Secretary)August 19, 2008 6Board Member Professor John Pluske, with Sub-Program Manager Dr Bruce Mullan and HonoursStudent Amy Lealiifano15

Pork CRC LimitedResearch and Development CommitteeMeeting dates: Meetings are held quarterly, or as required.Meetings held: August 11 and October 21, 2009; February 10, and May 13, 2010.R&D CommitteeAppointments2009–10Resignations2009–10Total meetingsduring yearDr Roger Campbell (Chair) 4Mr Rod Hamann 4Dr Robert van Barneveld 4Dr Brian Luxford 4Prof. Frank Dunshea 3Mr Dave Henman 2Ms Heather Channon 4Dr Ray King 1Dr Darryl D’Souza 4Dr William van Wettere May 13, 2010 2Mr Patrick Derham (Committee Secretary) 4Adoption and Commercialisation CommitteeMeeting dates: Meetings are held quarterly, or as required.Meetings held: August 7, September 17 and November 15, 2009; February 15, April 19 and May 11, 2010.A&C CommitteeAppointments2009–10Resignations2009–10Total meetingsduring yearMr Andrew Maughan (Chair) 6Dr Roger Campbell 5Prof Simon Maddocks 6Mr Nigel Smith 5Mr Sam McIvor 3Dr Robert Wilson August 7, 2009 5Mr Patrick Derham (Committee Secretary) 616

managementEducation CommitteeMeeting dates: Meetings are held quarterly, or as required.Meetings held: October 8 and November 22, 2009; February 4 and March 30 2010.Education CommitteeAppointments2009–10Resignations2009–10Total meetingsduring yearA/Prof. Wayne Pitchford (Chair) 4Dr Roger Campbell 4Professor Paul Hughes 4Dr William van Wettere 4Professor John Pluske 4Dr Darryl D’Souza 3Mr Patrick Derham (Committee Secretary) 4Audit CommitteeMeeting dates: Meetings are held quarterly, or as required.Meetings held: August 11, September 22, November 3, 2009; February 8, March 31 and June 4 2010.Audit CommitteeAppointments2009–10Resignations2009–10Total meetingsduring yearMr Brian Halstead (Chair) 6Mr Sam McIvor 6Mr Nigel Smith 6Mr Patrick Derham (Committee Secretary) 617

Pork CRC LimitedoperationsThroughout the reporting period, the Pork CRCwas administered by the Chief Executive Officer(Dr Roger Campbell), Business and FinanceManager/Company Secretary (Patrick Derham),Office Manager (Suzanne Merry) and ProjectManager and AusPig Expert (Graeme Crook).The Pork CRC Management providedfocus for all activities and coordinated theresearch and education programs. ThePork CRC also provided the administrationand finance support for these programs.All projects are managed by ProjectLeaders who are responsible forday-to-day operations, key deliverablesand achievement of milestones.Projects are monitored by the Pork CRCManagement via quarterly reportingrequirements, designed to ensure projectresources are being utilised efficiently.The programs and projects are reviewedon an annual basis by the Research andDevelopment Committee.Dr. Roger CampbellChief Executive OfficerTelephone: 08 8303 7683Mobile: 0407 774 714Facsimile: 08 8303 7686E-mail: roger.campbell@porkcrc.com.auPatrick DerhamBusiness and FinanceManager/Company SecretaryTelephone: 08 8303 7684Mobile: 0412 713 829Facsimile: 08 8303 7686E-mail: patrick.derham@porkcrc.com.auSuzanne MerryOffice ManagerTelephone: 08 8303 7685Mobile: 0400 588 865Facsimile: 08 8303 7686E-mail: suzanne.merry@porkcrc.com.auGraeme CrookProject Manager andAusPig ExpertTelephone: 08 8303 7973Mobile: 0417 805 422Facsimile: 08 8303 7686Email: graeme.crook@porkcrc.com.au18

Research ProgramReportsProjects funded within each Subprogram are summarised in the following tables and, where relevant,a brief description of Research Highlights relating to the 2009 - 2010 reporting period are included.Other outcomes have to be treated with “commercial in confidence” in the short term until thepotential intellectual property (IP) they contain is fully explored and protected. Program managersand scientists involved in the Pork CRC Projects continue to deliver exciting and commerciallyapplicable outcomes.Program 1: Securing more reliable and consistentsupplies of protein and energy for pig dietsPork CRC Target: 1) Reduce diet costs by 10 per cent by 20122) Improve the Digestible Energy (DE) content of grains by1.0MJ/ Kg by 2012Key deliverables:Securing more reliable and more consistent protein and energy supplies for pig diets via innovativegrain and pulse production, supply chain arrangements, quality assessment and co-productionutilisation will result in:• Reduced variation in the annual costs of pig feed;• Reduced total cost of pig feed;• A wider range of feed ingredients available to more producers; and• A closer match of diet specifications and pig requirements.Program milestones in the reporting period revolve around the development and release of newgrain varieties, enhancement of NIRS calibrations for the energy value of grains and the amino acidscontents and availability of protein sources. All milestones have been achieved.Subprogram Research areas Subprogram leader1A Innovative grain production for the pig industry Dr Ray King1B Quality assessment of feed ingredients Dr John Black1C Alternative grains and feed ingredients Dr Ray King19

Pork CRC LimitedSubprogram 1A: Innovative grain production for thepig industrySubprogram leader: Dr Ray King (consultant to industry).Key deliverables:• Commercial quantities of cereals (triticale and barley) and pulses (peas and lupins) that grow closeto pork producing regions and have a high yield; and• Cost effective agronomy and enhanced nutritional characteristics for pigs.The Subprogram is intended to identify and develop new feed grains and pulses for pigs thatoffer the potential for increasing grower returns whilst reducing pork producer feed costs. Theseobjectives can be achieved through greater nutrient availability and reduced cost on a nutrient basisand through supply chain arrangements that reduce procurement costs.Milestones: All Department of Industry, Innovation, Science and Research (DIISR) milestonesrelating to Subprogram 1A in the reporting period have been achieved. The research milestonesfor the reporting period related to the establishment of agronomic studies for current and new peavarieties and other legumes in northern Australia. The latter was achieved in a cooperative projectinvolving the University of Sydney, Plant Breeders NZ, Queensland Department of Primary Industriesand Fisheries, Pulse Australia and a number of agronomists and large pork producer and graingrower commercial organisations. Plant breeding and selection programs were also establishedunder the same management model for barley, wheat and triticale.The plant breeders, agronomists and commercial seed companies involved in the projects have donea credible job in managing the projects and project outcomes. The first commercialisation milestonefor peas was achieved with the release of the high yielding variety, Maki, in 2008-09 followed closelyby the release of one new triticale, Berkshire, and one barley, Shepherd, for commercial planting In2009. Another variety of field peas is expected to be released in 2010 for subsequent commercialplanting in the 2011 season.Funded projectsProject Project Title Collaborative Partners Duration Total Cost1A-101 Enhancing supplies of highquality barley to meet porkindustry demands inQueensland and northern NSW.1A-102 Improved triticale productionthrough breeding and agronomy.1A-103 Practical guidelines for theproduction and supply chainarrangements to deliver newand existing cereal and cultivarsfor the pig industry.Qld Dept of Primary Industriesand Fisheries and CHM AlliancePty LtdUniversity of Sydney, Universityof New England and GDRCGrainsearch Pty Ltd andparticipating farmers2006–2009 463,712*949,040**2006–2009 958,588*840,864**2005–2007 244,000*388,748**20

Research Program Reports1A-104 Peas for a more reliable proteinsupply to the pork industry inthe north.1A-105 Advanced development of peavarieties for Australian porkproduction.University of Sydney, PulseAustralia, NSW DPI, QueenslandDPIF and CHMUniversity of Sydney and PlantResearch (NZ)2005–2009 187,296*635,915**2008–2010 183,753*246,750**1A-106 Enhancing supplies of highquality barley to meet porkindustry demands in EasternAustralia.1A-107 Improved Triticale Productionthrough Breeding.Qld DPIF, CHM 2009-2011 159,580*$498,059**University of Sydney 2009-2012 401,425*953,602**1A-108 Development of adapted fieldpea varieties for pork producingregions in northern and southernAustralia.1A-109 Selection of feed wheat and (or)barley varieties for the Australianpig industry.University of Sydney and PlantResearch (NZ)Murdoch University, WesternAustralian Agriculture Authority,Intergrain2009-2012 372,582*555,277**2009-2012 528,000*152250**1A-110 Sorghum Breeding Program GRDC, Dairy Aust, APL, Meat &Livestock, Aust Egg Corp2009-2011 60,000** Cash ** In-kind: from industry or supporting participantsResearch Highlights for Subprogram 1AProject 1A-107: Improved triticale through breedingProject 1A-108: Development of adapted field pea varieties for pork producingregions in northern and southern AustraliaProject 1A-109: Selection of feed wheat and (or) barley varieties for the Australianpig industryThe plant breeding projects within Subprogram 1A - Innovative grain production, are designed todeliver new feed grain varieties developed and selected specifically for pigs These new varieties willresult in the development of commercial quantities of cereals and pulses that grow close to pigproducingregions, and that have a high yield, cost-effective agronomy and acceptable nutritionalcharacteristics for pigs. New grain varieties arising from these plant breeding projects have beenreleased for commercial sowing during the 2010 season.21

Pork CRC Limited1A-107: TriticaleThe new triticale variety, Berkshire, was grown by grain growers who had close relationships withpork producers in southern NSW, and in the pork producing regions in Western Australia and SouthAustralia. Berkshire performed well in most locations, particularly in different regions of SA and WAas well as southern NSW. The average DE content of samples of Berkshire grown commercially in2009 was between 13.7 and 13.9 MJ DE/kg with the higher energy levels found in WA.These values were within 0.5 MJ DE/kg of wheat varieties grown at the same sites. In addition, theDE results for Berkshire were consistently higher than other triticale varieties.As with all triticale varieties during the 2009 season, Berkshire proved highly susceptible to thelatest Striped Rust pathogenic virus strain. During 2010, the project will concentrate on the passivepromotion of Berkshire in traditional growing areas that are close to pork production and feed millsdue to the rust susceptibility. However as this new pathotype is not yet present in SA and WA,this should not affect performance in those states, and will enable a more positive approach to befollowed, especially in WA, where there is considerable interest in a controlled loop supply chainmodel, to encourage the growing of significant amounts of triticale for a local feed mill that suppliesthe pork industry.This project has also collaborated with the commercial seed company, Waratah Seeds who marketBerkshire, to produce a series of fact sheets which includes guides to varieties, planting, grainproduction, grazing and use of triticale as a stockfeed. Copies of these are available through thePork CRC website and the Waratah Seeds website http://www.waratahseeds.com.au/.The R&D program has continued and has focussed on the development of hybrids. Approximately150 hybrid lines have been sown in 2010 for subsequent evaluation with most of these hybrids beingbased upon Berkshire as the major component of the male and female lines. As there needs to be atleast a 15% improvement in yield for hybrid production to be commercially viable, the results of the2010 hybrid trials will determine whether this component of the project will continue.1A-108: Field PeasThe field pea breeding projects have produced a new variety, Maki which was released by AGTSeeds in 2009. Maki has received greater interest in 2010 and should be planted over a wider areathis season. Maki will continue to be promoted across regions of Qld and northern NSW. Commercial‘strip trials’ over a large number of sites under controlled agronomic conditions have beenestablished in 2010 and these will provide greater information on Maki and grower penetration. BeanGrowers Australia in the Kingaroy area has encouraged their grower clients to grow small quantitiesof Maki for subsequent accumulation by BGA for on-sale to a feed mill.The next commercial release of the field pea breeding program will be in 2011. The selected variety,PRL131, has a higher and more consistent yield than its contemporaries and the commercial partnerwill be selected later in 2010. This project has also collaborated with Pulse Australia to produce aVariety Management Package for the Maki variety and “The Northern Region Field Pea ManagementGuide” to assist growers to consider field peas in their rotations. Copies of these are availablethrough the Pork CRC website and the Pulse Australia website, http://www.pulseaus.com.au/.22

1A-108: Field peasThe field pea breeding projects have produced a new variety, Maki which was released by AGTSeeds in 2009. Maki has received greater interest in 2010 and should be planted over a wider areathis season. Maki will continue to be promoted across regions of Qld and northern NSW.Commercial ‘strip trials’ over a large number of sites under controlled agronomic conditions havebeen established in 2010 and these will provide greater information on Maki and growerpenetration. Bean Growers Australia in the Kingaroy area has encouraged Research their grower Program clients Reports togrow small quantities of Maki for subsequent accumulation by BGA for on-sale to a feed mill.The next commercial release of the field pea breeding program will be in 2011. The selectedvariety, PRL131, has a higher and more consistent yield than its contemporaries and thecommercial partner will be selected later in 2010. This project has also collaborated with PulseAustralia to produce a Variety Management Package for the Maki variety and “The Northern RegionField Pea Management Guide” to assist growers to consider field peas in their rotations. Copies ofthese are available through the Pork CRC website and the Pulse Australia website,http://www.pulseaus.com.au/.Formatted: Font: (Default)New Roman, 12 ptComparative yield of new varieties and lines of field peasMaki Figure growing XXX - at Comparative Tony Chapman’s yield of property new varieties in southern and lines Queensland of field peas in 20101A-109: Wheat and Barley LinesThis project utilises high yielding wheat and barley lines that had been developed by Intergrain PtyLtd, but may not have been suitable as food grains. However, because of their high yield and highenergy content these cereal grains may have potential as feed grains for the pork industry. More than100 wheat and barley lines had been selected to assess their merit as a quality pig feed. The cerealvarieties were planted on 20 sites across Western Australia, South Australia, Victoria and New SouthWales in 2009. Following harvest, the nutritional merit of the varieties was analysed using the NIRScalibrations and their agronomic potential assessed.Overall, the varieties selected for the 2010/11 season out-yielded Grout barley and Magenta andWyalkatchem wheats which were included in the trials as benchmarks. In terms of faecal DE, allselected barley lines had a value between 12.5 and 13.3 MJ DE/kg and the values for selectedwheat lines were between 13.5 and 14.3 MJ DE/kg. The faecal DE values for all new varieties weregenerally greater than for Grout barley. Conversely, the DE values for Magenta and Wyalkatchemwheats were greater, or at least comparable to the new varieties.Based upon these results from the 2009/10 harvest, 5 new barley lines and 10 wheat lines wereselected for bulking-up in 2010, and for additional trials across over 20 sites in southern Australiaduring the 2010/11 season.23

Pork CRC LimitedSubprogram 1B: Quality assessment of feed ingredientsSubprogram leader: Dr John Black (Consultant to industry).Key deliverables:• Adoption, implementation, enhancement and maintenance of NIRS calibrations for the rapidmeasurement of the nutritional quality of cereals for pigs;• Rapid and objective analytical methods for the measurement of nutritional quality in pig feedingredients (other than cereals); and• Processing methods to increase the nutrient yield from target grains (eg; enzyme applications).The objectives of Subprogram 1B are to establish the reasons for differences in nutrient availability,to rapidly be able to identify such differences and to develop processing and other strategies toincrease the availability of energy and other nutrients from grains.Milestones: For the reporting period, the research milestones related to the development of nearinfrared spectroscopy (NIR) calibrations for grains, milk powders and protein sources. Becauseof the limited use of milk proteins in the Australian pork industry, the Research and DevelopmentCommittee decided to concentrate on the development of NIRS calibrations for grains and proteinsmore widely used or with potential for wider use in the pork industry, with particular emphasis oncanola seed meal. The research milestones for both materials were achieved in the reporting period.The commercialisation milestones for the reporting period related to the release of the NIRcalibrations to industry. The NIRS calibrations for grains were released in 2008, while thosefor canola seed meal were released in 2009. The latter will better enable canola seed crushers(suppliers) and producers to more accurately determine the available lysine levels of canola seedmeal, for crushers to alter processing conditions to manipulate the available lysine content of theproduct and for producers to access “higher” quality product and to rapidly measure the latter.Adrian Russell, Plant Research New Zealand, Steve Moore,University of Sydney, Gordon Cumming, Pulse Australia andRay King, Manager Pork CRC Program 1Maki Field Peas24

Research Program ReportsFunded projectsProject Project Title Collaborative Partners Duration Total Cost1B-101 NIRS calibrations for predictingthe nutritional quality of feedingredients for pigs.Qld DPIF, Rivalea andFeedworks2005–2009 700,600*488,000**1B-102 Processing methods forimproving the utilisation ofcereal grains by pigs.1B-103 Canola meal value chain qualityimprovement.1B-104 Enhancement of NIRScalibrations for predictingthe energy value of weatherdamaged grains.University of Queensland 2005–2009 555,000*435,000**Australian Oilseed Federation 2005–2007 30,000*Qld DPIF 2006–2009 300,000*390,000**1B-105 Identification of the keyattributes affecting starchcontent and availability insorghum grain.University of Queensland andQld DPIF2006–2009 299,462*372,600**1B-106 Canola meal value chain qualityimprovement – Stage 2a.Australian Oilseeds Federation 2007–2008 76,000*28,000**1B-107 Improving the efficiency ofpig feed manufacturing andapplication of additives.Qld DPIF, Rivalea, BetterblendStockfeeds, Ridley AgriProductsand Feedworks2008-2011 502,500*606,000**1B-108 Enhancing NIRS calibrations forpredicting the nutritional value ofgrains for livestock.1B-109 Enhancing NIRS calibrations ofgrains for livestock – Statisticalanalysis and advice.1B-110 Commercial real-timeapplication of NIR calibrations.1B-112 Quantification of variability inamino acid and reactive lysinecontent of soybean meal anddevelopment of NIR calibrationfor rapid prediction of reactivelysine content.1B-113 Effect of grain type, particlesize and processing conditionon growth performancecharacteristics in pigs.1B-114 The influence of sorghum typeand increasing proteasesupplementation on young malepig performanceUniversity of Sydney & GRDC 2008-2011 353,619*NSW DPI & GRDC 2008-2011 238,050*Ridley AgriProducts Pty Ltd 2009-2011 150,023*252,000**DAFWA 2009-2013 213,949*241,900**Qld DEEDI 2009-2011 19,992*53,000**Rivalea and Feedworks 2009-2010 14,084*11,039*** Cash ** In-kind: from industry or supporting participants25

Pork CRC LimitedResearch Highlights for Subprogram 1BProject 1B-101: NIRS calibrations for predicting the nutritional quality of feedingredients for pigsProject 1B-104: Enhancement of NIRS calibrations for predicting the energyvalue of weather damaged grainsProject 1B-108: Enhancing NIRS calibrations for predicting the nutritional valueof grains for livestockProject 1B-110: Commercial real-time application of NIRS calibrationsFour experiments have now been conducted within the Pork CRC to enhance the NIR calibrationsestablished in the Premium Grains for Livestock Program (PGLP) for predicting the digestible energy(DE) content of cereal grains for pigs. Values for 98 new grains have been obtained and this morethan doubles the initial number of grains studied in PGLP. The new grains studied include morethan 40 weather damaged grains (water-stressed, frosted and sprouted), two pearl millet samples,eight maize samples and a range of newly or near to be released plant breeders lines for wheat,barley, triticale and sorghum. The digestible energy content of the grains at the end of the ileum(ileal DE) and the end of the digestive tract (faecal DE) are being measured with results from the finalexperiment soon to be available. The NIR calibrations are based on scans of whole grain.For each of the first three experiments, the latest existing NIR calibration was first used to predictthe values for new grains. These predicted values were compared with the measured values todetermine the accuracy with which the calibrations could predict values for unknown grains.The new experimental results were then included into an updated NIR calibration. Thus, theimprovement of the calibrations over time as a result of each new experiment could be evaluated.The addition of new grain samples from each experiment to the NIR calibrations has substantiallyimproved the robustness of the calibrations or their ability to predict values for unknown samples.The proportion of variance between observed and predicted values accounted for by the calibrations(R2) for faecal DE of unknown samples increased from 0.79 for the PGLP calibration to 0.91 forthe calibration including results from the first three Pork CRC experiments. Similarly, the precisionwith which the faecal DE values of unknown samples can be predicted with a confidence of 95%probability has improved from ± 0.38 MJ/kg for the PGLP calibration to ± 0.27 MJ/kg for thecalibration including the first three Pork CRC experiments. The relationship between observed faecalDE values and those predicted with the third generation calibration is shown in the figure below.Both the robustness and precision of the calibrations can be further improved with the addition ofmore grains with widely varying characteristics. Careful selection of grains with varying NIR scanswill continue. An accurate and rapid method for measuring the energy value of grains is essential forimproving the formulation of rations for pigs of all ages. A difference of 1 MJ/kg has been estimatedto be worth from approximately $5-18 per tonne (if the price of wheat is $250 per tonne) dependingon the relative prices of alternative grains, fibre sources and high energy ingredients.26

Research Program ReportsBoth the robustness and precision of the calibrations can be further improved with the addition ofmore grains with widely varying characteristics. Careful selection of grains with varying NIR scanswill continue. An accurate and rapid method for measuring the energy value of grains is essentialfor improving the formulation of rations for pigs of all ages. A difference of 1 MJ/kg has beenestimated to be worth from approximately $5-18 per tonne (if the price of wheat is $250 per tonne)depending on the relative prices of alternative grains, fibre sources and high energy ingredients.Figure XXX - Faecal DE (MJ/kg as fed) content of all grains predicted using the latest NIRcalibration in relation to the measured values.Faecal DE (MJ/kg as fed) content of all grains predicted using the latest NIR calibration in relation toThe solid line represents the linear regression equation (Y = 0.97X + 0.36; R 2 = 0.89) and the dottedthe measured line is values. the line of equivalence.1B-105: Identification of the key attributes affecting starch content and availability in sorghumProject 1B-105: grain Identification of key attributes affecting starch content andUnderstanding why pigs offered sorghum based diets perform poorlyavailability in grainIn project 1B-105, a total of 237 sorghum germ lines with extremely diverse genetic backgroundswere collected from around the world. All grains were scanned with NIR technology and 40 grainsselected for detailed study of chemical and physical characteristics and the nature of kafirin andUnderstanding why pigs offered sorghum based diets perform poorlystarch synthesis genes. The in vitro (laboratory) rate of starch digestion was measured on morethan 100 samples, with the amount of starch disappearing after 4 hours ranging from 8% to 80%.In project 1B-105, a total of 237 sorghum germ lines with extremely diverse genetic backgroundswere collected from around the world. All grains were scanned with NIR technology and 40 grainsselected for detailed study of chemical and physical characteristics and the nature of kafirin andstarch synthesis genes. The in vitro (laboratory) rate of starch digestion was measured on more than100 samples, with the amount of starch disappearing after 4 hours ranging from 8% to 80%.Results from this project and other research have confirmed that sorghum starch is poorly digestedbecause of the kafirin-protein matrix surrounding starch granules, the slow rate of enzyme diffusionResults from this project and other research have confirmed that sorghum starch is poorly digestedand the relatively because of high the kafirin-protein phytate and matrix tannin surrounding content of starch sorghum granules, grain. the slow In rate a completely of enzyme diffusion new finding,and the relatively high phytate and tannin content of sorghum grain. In a completely new finding,the project the has project shown has shown that the that rate the rate of sorghum of sorghum starch digestion is significantly is significantly influenced influenced by the bythe presence presence of a of a particular allele in in one of the starch synthesis synthesis genes. genes. In addition, In addition, the project the showed projectthat several sorghum germ lines do not possess genes to synthesise the β-kafirin proteins. Theshowed that influence several of this sorghum gene deletion germ on lines vitro do starch not possess digestion is genes currently to synthesise being assessed. the NIR β-kafirin proteins.The influence of this gene deletion on in vitro starch digestion is currently being assessed. NIRcalibrations are currently being developed to predict the rate of in vitro starch digestion and othergrain characteristics that influence starch digestion. Thirty selected sorghum lines, including severalhybrids commercially available in Australia, have been sown in three different locations to helpunderstand the relative influence of genotype and environment on characteristics known to influencethe nutritional value of sorghum for animals.27

Pork CRC LimitedEffect of water-stress and sprouting on the energy value of sorghumA crop of sorghum was irrigated during the growth period and harvested at normal maturity. Sectionsof the crop were desiccated with herbicides at two times after flowering to simulate water stress(Stress 1 & Stress 2). Half of each sample was artificially sprouted for 2 days and then sun dried tosimulate a field sprouting event. The digestibility of the six grain samples was measured. Effects ofearly water stress and sprouting on the faecal DE content of the grains are shown in the table below.Effect of water stress and sprouting on faecal DE content of sorghum grainGrain ID Treatment Faecal DE(MJ/kg as fed)7714 Normal irrigated 14.10 a7714 Normal sprouted 14.43 b7714 Stress 1 14.95 d7714 Stress 1 sprouted 14.74 cd7714 Stress 2 14.78 cd7714 Stress 2 sprouted 14.57 bcWater stress in the crop as simulated through the application of herbicide significantly increasedthe DE content of sorghum grain. The most immature grain which was first desiccated followingflowering had a pig faecal DE value of 14.95 MJ/kg as fed compared with 14.10 MJ/kg as fed forthe grain allowed to mature naturally. The effect of sprouting appeared to vary with the maturity ofthe grain. Sprouting significantly increased the faecal DE content of the normally grown grain (14.43compared with 14.10 MJ/kg as fed), but had no significant effect for the desiccated grain samples.However, there was a trend for sprouting to decrease the DE values for the desiccated grain samples28

Research Program ReportsProject 1B-114: Effect of protease enzymes added to sorghum based dietsAn experiment conducted at Rivalea in collaboration with Feedworks confirmed that the growthrate and efficiency of feed use by young male pigs offered wheat based diets is significantly better(480 g/day; 1.30 feed: gain) than for pigs offered either white sorghum (401 g/day; 1.56 feed: gain)or red sorghum (380 g/day; 1.43 feed: gain) based diets. Earlier laboratory experiments within thePork CRC had shown that the most indigestible γ-kafirin proteins were degraded by a proteaseenzyme with the commercial name, Subtilisin. When 500 ppm of this enzyme was added to thesorghum based diets offered to the young male pigs, growth rate and feed efficiency were improvedsubstantially. Pigs offered the white sorghum diets with Subtilisin grew at 435 g/day with a feed: gainof 1.31, while those offered the red sorghum diets with Subtilisin grew at 410 g/day with a feed: gainof 1.33. Although the growth rates for the pigs offered the sorghum based diets with the enzymewere still numerically less than for pigs offered wheat based diets, differences were not significant.Examples of red and whiteforghum varietiesProject 1B-107: Improving the efficiency of pig feed manufacturing andapplication of additivesProject 1B-113: Effect of grain type, particle size and processing condition ongrowth performance characteristics in pigsProcessing methods for improving the utilisation of cereal grains by pigsAs reported last year, the size of grain particles incorporated into pig feeds has a marked effecton the rate of in vitro starch digestion. The research showed that the rate of enzyme diffusion intohydrated grain particles and hence rate of starch digestion declined with the inverse square ofparticle size. This means that a doubling of particle size results in a quarter of the rate of enzymedigestion. The rate of enzyme diffusion was also shown to be approximately twice as fast for barleyas it was for sorghum particles of the same size. Further research showed grain particles arrivingat the end of the small intestines were approximately 1 mm for barley based diets and 0.75 mm forsorghum based diets. This information suggested that if grain particles in the feed did not exceed1.0 mm for barley and 0.75 for sorghum, all starch should be digested in the small intestines and theefficiency of feed use should be improved.29

Pork CRC LimitedIn collaboration with the stockfeed manufacturer, Better Blend, samples were obtained for an animalperformance trial by (a) grinding sorghum and barley through a 4 mm hammer mill screen, (b) sievingthe resultant material through a 1.8 mm (barley) or 0.9 mm (sorghum) sieve using a seed cleanermachine, (c) regrinding the captured particles through a 3.2 mm hammer mill screen, and adding theseback to the particles that passed through the sieve after a first grind. This material is referred to asre-ground. A smaller sieve was selected for fractionating milled sorghum based on the slower rates ofenzyme digestion compared with barley at the same particle size. The Figure below shows thatre-grinding removed nearly all particles larger than 1.7 mm without generating many additionalparticles smaller than 0.125 mm.Name barley & sorghum belowName barley & sorghum below30Figure XXX - Particle size distribution after a first hammer milling through a 4 mm screen andafter re-grinding those particles captured on 1.8 mm (barley) and 0.9 mm (sorghum) screensRe-ground Figure XXX and - single Particle grind size samples distribution of sorghum after and a first barley hammer were incorporated milling through into a a 4 standard mm screen andgrower after diet re-grinding with grain those representing particles 72% captured of the on feed. 1.8 Diets mm (barley) were fed and either 0.9 as mm a mash (sorghum) after screensParticlesteam Re-ground sizepelletingdistribution and under single typical grind aftercommercial samples a first hammer of sorghum conditions.milling and The barley throughdiets were were incorporated a 4offeredmm screento young into and a standard maleafter regrindingconversion those particles captured on 1.8 mm (barley) and 0.9 mm (sorghum) screensweaner grower pigs diet at Rivalea with grain or grower representing pigs at 72% Wacol, of the Queensland. feed. Diets As were shown fed in either Figure as a mash below, or after feedsteam pelleting ratio (FCR) under values typical were commercial lower (efficiency conditions. of feed The use diets higher) were for offered all comparisons to young male of regrindingweaner with pigs single at Rivalea grinds or for grower all feeds pigs except at Wacol, reground Queensland. sorghum As pellets shown fed in to the weaner Figure pigs. below, feedEffects conversion were particularly ratio (FCR) marked values were for mash lower feeds (efficiency with re-grinding of feed use resulting higher) in for 22% all and comparisons 10.5% of regrindingwith in the single efficiency grinds for of all feed feeds use except for sorghum reground offered, sorghum respectively, pellets fed to to weaner weaner and pigs. growerimprovementpigs. Effects Similarly were re-grinding particularly of marked barley fed for mash a mash feeds resulted with re-grinding 15% and resulting 8.3% improvement in 22% and 10.5% inefficiency improvement of feed in use the for efficiency weaner and of feed grower use pigs, for sorghum respectively. offered, Re-grinding respectively, of either to weaner sorghum and or growerbarley pigs. offered Similarly as a re-grinding mash resulted of barley in a lower fed as FCR a mash than resulted pelleting in after 15% a and single 8.3% grind. improvement inThese efficiency results of are feed particularly use for weaner important and for grower pig enterprises pigs, respectively. offering mash Re-grinding feeds. of Further either research sorghum is orcontinuing barley offered to identify as a the mash best resulted method in for a lower milling FCR grains than to pelleting reduce after the maximum a single grind. size of particlesThese results are particularly important for pig enterprises offering mash feeds. Further research iscontinuing to identify the best method for milling grains to reduce the maximum size of particles

Research Program ReportsRe-ground and single grind samples of sorghum and barley were incorporated into a standard growerdiet with grain representing 72% of the feed. Diets were fed either as a mash or after steam pelletingunder typical commercial conditions. The diets were offered to young male weaner pigs at Rivaleaor grower pigs at Wacol, Queensland. As shown in the Figure below, feed conversion ratio (FCR)values were lower (efficiency of feed use higher) for all comparisons of re-grinding with single grindsfor all feeds except reground sorghum pellets fed to weaner pigs. Effects were particularly marked formash feeds with re-grinding resulting in 22% and 10.5% improvement in the efficiency of feed usefor sorghum offered, respectively, to weaner and grower pigs Similarly re-grinding of barley fed as amash resulted in 15% and 8.3% improvement in efficiency of feed use for weaner and grower pigs,respectively. Re-grinding of either sorghum or barley offered as a mash resulted in a lower FCR thanpelleting after a single grind.These results are particularly important for pig enterprises offering mash feeds. Further research iscontinuing to identify the best method for milling grains to reduce the maximum size of particles whilenot increasing while not increasing the proportion the proportion of very of very fine fine particles. The research will also also determine the the likely optimumlikely while not optimum increasing maximum the proportion particle size of very for each fine grain particles. type. The research will also determine themaximum likely optimum particle maximum size for particle each grain size for type. each grain type.Figure XXX- Effect of re-grinding large particles fed either as mash or conventional pellets onfeed Figure conversion XXX- Effect ratio of re-grinding for weaner large and grower particles pigs fed either as mash or conventional pellets onEffect feed of conversion re-grinding ratio large for weaner particles and grower fed either pigs as mash or conventional pellets on feedconversion ratio for weaner and grower pigs31

Pork CRC LimitedSubprogram 1C: Identification & characterisation of a widerrange of available feed ingredients for the pig industry.Subprogram leader: Dr Ray King.Key deliverables:• Identified potential for production of non-traditional or alternative protein and energy sources forpigs within existing grain production systems across Australia; and• Assessment of the nutritional potential of novel protein and energy sources.Milestones: Evaluation and availability of a number of alternative ingredients for the pork industry.Two alternative ingredients have already been identified and evaluated. The Pork CRC has alsoidentified Dried Distillers Grains (DDG) from ethanol production as another alternative ingredient.However, because of the wealth of information available on DDG from the US where the material iswidely used in pig diets, the Pork CRC decided to defer any evaluation or review of the ingredient forthe Australian pork industry until more of the material becomes available locally or through importsfrom the US or elsewhere.Funded ProjectsProject Project Title Collaborative Partners Duration Total Cost1C-101 Evaluation of glycerine (glycerol)from biodiesel productionin pigs.1C-102 The establishment of a viablepearl millet industry to supportthe Australian pork industry.Murdoch University, WandalupFarms and DAFWARivalea, CHM, Michael Castorand HSR Group2006-2009 36,870*91,500**2007-2010 238,875*193,000*** Cash ** In-kind: from industry or supporting participantsResearch Highlights for Subprogram 1CAn increasing number of potential nutrient sources for Australian livestock production are nowbecoming available as co-products of the biofuel industries. The major co-product of the ethanolindustry, distiller’s dried grains and solubles (DDGS) is a valuable ingredient of livestock diets in theUS and can be used successfully in pig diets at levels of up to 20 – 30 per cent. In addition, coproductsfrom the biodiesel industry are also potential nutrient sources. These potential co-productsof the biodiesel industry include glycerine, oilseed meals and algae.The Glycerine project (1C-101) has demonstrated that crude glycerine could be an alternative energysource for pig diets, but the recent downturn in the economic production of biodiesel in Australia haslimited the availability of glycerol for livestock diets. The results of the Pearl Millet project (1C-102)demonstrated that pearl millet is an excellent feed ingredient for pigs. However, field results suggestthat the current pearl millet varieties available for growers in Australia have low yield capabilities andwould not compete with sorghum as a cash crop.32

Research Program ReportsThe Pork CRC will continue to actively monitor developments in this area to identify opportunitiesfor alternative ingredients in pig diets that may be available for the pork industry in Australia. Twopotential ingredients for pig diets have been identified recently, algae and mustard meal, and theseingredients may be further evaluated for pigs within the Pork CRC.Brassica juncea (Mustard) has been bred as a crop for low rainfall regions in Australia, producinga seed with similar properties to that of traditional canola. Increasing areas of the crop have beenplanted in the last 12 months, with approximately 13,000 hectares planted across 3 states in 2010.There is currently interest in the use of B. juncea oil for bio-diesel production in southern Australia,and as such the remaining meal may be available for use in animal diets. Given the similarity of B.juncea meal to traditional canola meal, there is the potential to utilize this product as an alternativeprotein meal in pig diets.Algae are also a potential nutrient source for livestock diets. There has been increased interest inAustralia for the potential use of algae to assist in capturing CO 2gas emissions and improving wastewater treatment. Ideally a closed production system that produces algae grown in piggery effluentsystems that can then be processed and fed to pigs would be an efficient and sustainable system toproduce a novel feed source for pork production. Algae species have relatively high protein levels,and depending upon their amino acid content and digestibility, may be a potential nutrient sourcefor pig diets. From previous studies, algae have been included in pig diets at levels up to about 10 -20%. As algae samples become available from developing pilot plants in Australia, the suitability ofalgae for pigs may be examined within this subprogram of the Pork CRC.Example of an Algae BioReactor33

Pork CRC LimitedProgram 2: Improving Whole Herd Feed EfficiencyPork CRC Target: Reduce Herd Feed Conversion (HFC) from 4.3 to 3.6 over thelife of the Pork CRCImproving HFC reduces feed/grain usage and has the same effect on cost of production as reducingdiet costs. Improvements in HFC will be achieved by optimising efficiency through improved health,metabolic efficiency and reproductive capacity.Key deliverables:• The capacity to routinely and accurately measure feed intake in individual animals and groups;• Products & management strategies to allow manipulation of feed intake/feeding efficiency in pigs;• Reduced reliance on antibiotics in production systems;• Cost effective nutritional and/ or prophylactic treatments for the prevention of disease;• Products and/or strategies to improve production efficiency;• Reduction in sow culling rates; and• Lower overall costs of production through more efficient reproductive performance.Milestones: The research and commercialisation milestones for the reporting period relate tothe development and availability of equipment/technologies for measuring group feed intake andthe feed intake of individual pigs in groups (Subprogram 2A), enhancing and manipulating thefeed intake of weaner and grower-finisher pigs (Subprogram 2B) and enhancing reproduction(Subprogram 2D) and animal health (Subprogram 2C).Progress in the majority of Subprograms has exceeded expectations with outcomes in the areas ofdisease control, reproduction, increasing sow longevity and improving feed efficiency in grower andfinisher pigs being achieved.The Subprograms within Program 2 are:Subprogram Research areas Subprogram leader2A Measuring feed intake and pig weights in commercial situations. Dr Bruce Mullan2BImproving the feed intake and performance of pigs immediatelyafter weaning.Professor John Pluske2C Improving animal health and reducing antibiotic use. Dr Ross Cutler2D Improving sow reproduction and longevity. Mr Rob Smits2E Advanced reproductive technologies. Assoc Prof Mark Nottle2F Physiology and manipulation of growth. Prof Frank Dunshea2G Nutritional strategies for sows and grower/finisher pigs. Mr David Henman2H Grower/Finisher Cost Reduction. Dr Roger Campbell34

Research Program ReportsSubprogram 2A: Measuring feed intake and pig weightsin commercial situationsSubprogram Leader: Dr Bruce Mullan, Department of Agricultural and Fisheries Authority (DAFWA).Key deliverables:• A method for the practical and continuous measurement of feed disappearance to pigs in groups;• A method for the practical and continuous measurement of feed wastage in groups;• Novel methods for the measurement of actual feed consumed by individuals within a group; and• Prediction of disease onset through the application of feed intake measurements.The research strategy addresses measurements in order of complexity. Feed disappearance isthe gross use of feed excluding waste or individual variation. Feed wastage coupled with feeddisappearance does not account for individual variation and actual feed intake is difficult to measurewithout individual animal intervention. In commercial production, feed disappearance is rarelymeasured in real time (except in liquid feeding systems) and is too intensive a measure to predictdisease onset.Funded projectsProject Project Title Collaborative Partners Duration Total Cost2A-101 Prediction of feed intake by individualpigs housed in groups using lithiumchloride.CHM and Rivalea 2006–2008 102,997*158,000**2A-102 Novel and improved methods tomeasure individual feed intake ofindividual pigs in groups.Victoria DPI, University ofAdelaide, Rivalea2006–2009 270,000*618,256**2A-103 Practical and continuousmeasurement of feed intakeand pig weight.2A-104 Evaluation of feeding strategies& measurement of feed consumptionusing the Feedlogic system.2A-105 Development and evaluation offeeding strategies to improve feedconversion efficiency in growing pigs.2A-107 Determine the optimal Av Lys/MJ DEratio for a modern genotype usingFeedlogic WA2A-108 Effects of Cysteamine & Paylean ongrower-finisher pigs at CHM2A-109 Determining the lysine requirements ofimmunocastrated male pigsSARDI and Rivalea 2006–2009 430,000*690,000**DAFWA 2006–2007 283,921*204,364**CHM 2006–2007 195,763*172,500**DAFWA 2009–2010 198,122*305,846**CHM 2009–2011 37,100*70,000**DAFWA 2009–2011 65,908*63,226*** Cash ** In-kind: from industry or supporting participants35

Pork CRC LimitedResearch Highlights for Subprogram 2A2A-104: Modern Genetics -Responses of finisher pigs to Dietary LysineIn an experiment conducted in the DAFWA facility at Medina Dr Bruce Mullan and Ms Karen Mooreinvestigated the responses of male and female pigs between 50 and 105 kg to six levels of dietarylysine. The results are shown in the figure below.Trend lines through graphsTrend lines through graphs36Figure xx: The effects of dietary available lysine (g/MJ DE) on the daily gain (g) and feed: gainof Figure male The and xx: effects The female of effects dietary pigs of between available dietary 50 lysine available and (g/MJ 103 lysine DE) kg live on (g/MJ the weight daily DE) gain on the (g) and daily feed: gain gain (g) of and male feed: and gainTable of male x: female the and pigs suggested female between pigs available 50 between and 103 lysine 50 kg live and per weight 103 MJ DE kg requirements live weight for entire male and female pigs atdifferent Table x: bodyweights.the suggested available lysine per MJ DE requirements for entire male and female pigs atdifferent Body bodyweights.(kg) Entire male FemaleBody weight (kg) Entire 0.80 male Female 0.783520 0.77 0.80 0.76 0.785035 0.65 0.77 0.60 0.766550 0.60 0.65 0.55 0.608065 0.53 0.60 0.50 0.5580 0.53 0.50

Research Program ReportsThe results showed that males grow faster and are more efficient than females. The sexes responddifferently to dietary lysine with males responding to higher levels to achieve maximum feedefficiency than females. For growth rate however the level of dietary lysine needed to support nearmaximal performance was similar for both sexes. Similar to the results reported for younger pigsin last year’s annual report the results again demonstrate the excellent performance capabilities ofAustralian genetics. The feed: gain approached a minimal value of only 2.1 for males and for females2.4. Our results consistently show that the performance capabilities of Australian genetics are equalto those available anywhere in the world. We need to make sure that their nutrition is matchedto their capabilities and the research being conducted in WA and elsewhere allows Australiannutritionists to ensure diets and nutritional strategies can be designed/modified to extract maximumperformance and profits from the pigs we have available.The suggested available lysine levels for male and female pigs between 20 and 100 kg are given inthe table and are higher than those currently used in many commercial diets.The suggested available lysine per MJ DE requirements for entire male and female pigs atdifferent bodyweights.Body weight (kg) Entire male Female20 0.80 0.7835 0.77 0.7650 0.65 0.6065 0.60 0.5580 0.53 0.5037

Pork CRC LimitedProject 2A 107: Determine the optimal Av Lys/MJ DE ratio for a modern genotypeusing Feedlogic WAThe vaccination against boar taint (Improvac-Pfizer) is being adopted globally as an alternative tosurgical castration and has the potential to enhance the efficiency of our competitors. In Australiathe use of the vaccine has also increased more recently as producers decide to improve the eatingquality of pork offered Australian consumers.One of the hurdles to the adoption of Improvac in Australia has been the tendency for the technologyto increase carcass P2 fat thickness and to adversely affect feed efficiency when the second oractive vaccination is given four to six weeks before sale and in accordance with the manufacturer’srecommendation.To investigate the effects of timing of the second vaccination on both boar taint and performanceone of our Honours students (Amy Lealiifano) conducted a study in which intact male pigs weregiven the second vaccination at zero (control intact males), 2,3,4 and 6 weeks before sale. Thestudy which was conducted at Medina in WA showed that giving the second vaccination at twoweeks before sale reduced testosterone and androsternone levels to those of pigs given the secondvaccine 3,4 or 6 weeks before sale (completely eliminated boar taint) but negated the tendencyfor the extended treatments to increase carcass P2 fat thickness and feed:gain. The results aresummarised in the table below.The results show that the effects of the second vaccination with Improvac on testosterone andthe two major components of boar taint (androsternone and skatole) are quite rapid and that bothcompounds are reduced to below detectable levels within two weeks.Effects of the time between the second Improvac vaccination and sale on the performanceand boar taint levels in pigs.Time between secondvaccination and sale (weeks)0 2 3 4 6Testosterone (ug/ml) 5.24 a 1.11 b 1.31 bc 1.57 bc 1.77 cAndrosternone (ng/g) .91 a .11 b .11 b .10 b .13 bSkatole .05 .04 .03 .04 .04Carcass weight (kg) 69.2 ab 68.3 a 67.9 a 71.0 b 71.2 bP2 (mm) 11.7 a 11.4 a 12.8 ab 12.5 ab 13.7 bFeed: gain 2.32 2.30 2.50 2.54 2.45a, b, c - Means in a row not having the same superscript differ significantly (P

Research Program ReportsSubprogram 2B: Improving the feed intake andperformance of pigs immediately after weaningSubprogram Leader: Professor John Pluske, Murdoch University.Key deliverables:• Novel molecules and feed ingredients (eg; grains, plant extracts, and inherent plant compounds)that can be used to stimulate or suppress feed intake in pigs;• Elimination of post-weaning growth checks and the promotion of gut development throughstimulation of feed intake;• Improved carcass quality through manipulation of feed intake in growing pigs; and• Identified gene markers, quantitative trait loci and genetic receptors for feed intake.Funded projectsProject Project Title Collaborative Partners Duration Total Cost2B-101 Strategic use of fat and fibreto improve the efficiency offinisher pigs.Rivalea 2005–2008 180,516*302,580**2B-102 The manipulation of growth andphysiology in the young pig.2B-103 Strategies to enhance theperformance of pigs immediatelyafter weaning.Murdoch University, Universityof Sydney, Victoria DPI,DAFWA and RivaleaRivalea, DAFWA and MurdochUniversity2005–2009 429,614*1,175,043**2005–2009 600,000*1,196,641**2B-104 Protein restriction andsubsequent growth.2B-106 Development of semi-moistextruded creep feeds topromote gastro-intestinal tractdevelopment, feed intake andsubsequent weaning weights.2B-107 Arginine supplementation forpigs weaned at 21 days of age.2B-108 Performance, gut developmentand immunity of pigs undercommercial conditions.Victoria DPI and Rivalea 2005–2008 185,000*1,045,645**CHM, Rivalea 2006–2008 233,200*397,500**Rivalea 2009–2010 21,420*36,240**Rivalea 2009–2010 17,955*37,944*** Cash ** In-kind: from industry or supporting participants39

Pork CRC LimitedResearch Highlights for Subprogram 2BThe year 2009-10 saw two projects, 2B-102 and 2B-103 draw to a close.Project 2B-103: Strategies to enhance pig performance immediately after weaningA key outcome was the publication and distribution for producers of a Best Practice Guide, entitledStrategies to enhance the performance of ‘at risk’ pigs, prepared by Dr Rebecca Morrison and DrCherie Collins of Rivalea Australia Pty Ltd, Professor John Pluske of Murdoch University and DrBruce Mullan, of DAFWA. The booklet highlights the major research findings from this project in away that is simple and easy to understand, and will have significant impacts on the management andnutrition of young pigs before and after weaning.Project 2B-102: The manipulation of growth and physiology in the young pigA major findings of this project undertaken by the research team at Murdoch University and DAFWAwas with work trialling the use of spray-dried plasma protein (SDPP) in diets for weanling pigs. Lightfor-agepigs are generally regarded as the most disadvantaged group at weaning for subsequentpost-weaning performance and survival. The main objective of this study was to demonstrate thatweaner diets containing SDPP could assist light-for-age pigs to perform better than their heaviercounterparts after weaning. A total of 96 pigs weaned at 21 days were used in an experiment withthe factors being live weight (light: 4.9 kg or heavy: 6.9 kg) and SDPP supplementation (0 vs. 50 g/kgand 25 g/kg, for the Phase I and II diets respectively). Data from this experiment confirmed previousobservations from studies conducted around the world that SDPP supplementation markedlyenhanced daily gain, daily feed intake and feed conversion efficiency in both light- and heavy-foragepigs immediately after weaning, although these effects disappeared in the following 2 weeks,and over the 3-week study, pigs supplemented with SDPP gained 20 grams more per day than thecontrol pigs. There was no difference in performance between heavy and light-for-age pigs in theirresponses to SDPP. These data demonstrate the potential usefulness of a new feed ingredient for theAustralian pig industry, and have provided first-time data for SDPP under Australian conditions.Project 2B-107: Arginine supplementation for pigs weaned at 21 days of ageWork undertaken at Rivalea Australia Pty Ltd examined the use of supplemental L-arginine, a crystallineamino acid thought to be involved in early gut growth and development, in diets for pigs after weaning.Earlier Murdoch University work as part of 2B-102 showed that addition of 0.6% L-arginine to the dietsof 21-day-old newly-weaned pigs, weighing less than 5 kg, for 10 days after weaning, improved dailyfeed intake and daily gain in the dietary transition period in days 11 to 14 after weaning. This studyfurther tested the hypothesis that supplementing L-arginine at different rates ranging from 0-1.0%increased the growth performance and survival of newly-weaned, 21-day-old pigs. 1,200 entire malepigs were individually weighed and selected at weaning and allocated to pens of 10 pigs. The eighttreatments were 0%, 0.25%, 0.5%, 0.75%, 1.0% of L-arginine supplemented to a commercial weanerdiet for 12 days after weaning for light (< 5.5 kg at weaning) and heavy (> 6 kg at weaning).In contrast to the previous experiment, there were no significant improvements in rate of gain, daily feedintake and feed conversion ratio of light and heavy pigs fed L-arginine, nor any differences in mortalityor removals (unthrifty pigs) between the treatments for the period between 0 and 40 days after weaning.40

Research Program ReportsIt was concluded that the pigs in the current experiment were receiving sufficient L-arginine intaketo fulfil metabolic demands for growth and gastrointestinal development, resulting in no significantdifferences in growth performance or survivability between treatments. Moreover, these data highlightthe importance of conducting commercial-based trials to confirm/refute experimental work conductedunder different conditions.Project 2B-108: Influence of non-medicated creep feed diets on the pre- andpost-weaning growth performance, immune competence and gastro-intestinaldevelopment of pigsUniversity of New England PhD candidate, Ms Megan Edwards, proposed that non-medicated creepfeeds containing SDPP or a yeast protein meal could:(i) promote at least equivalent growth performance and feed efficiencies to pigs offered medicatedtraditional creep feeds in the post weaning nursery phase (days 29-69); and(ii) assist in reducing the duration and severity of the post-weaning growth check, by aiding thegastrointestinal development and immune competence of the pig.In a 2 x 4 factorial design, 480 sow progeny (parities 3, 4 and 5) and 480 gilt progeny were allocatedto one of four creep feeding regimes from day 19 to day 35. Pigs were weaned at day 28 and followedthrough to 68 days of age. The creep regimes were:1) No Pre weaning creep feed (d 19-28), Medicated Traditional Creep (d29-35)2) Medicated Traditional Creep (d 19-35)3) Non-medicated Creep containing 5% SDPP (d 19-35)4) Non-medicated Creep containing 3.5% yeast protein meal (d 19-35).Growth performance and feed efficiency were monitored, blood taken, and gastrointestinal tractsamples collected at various time points after weaning.While the complete data set is still being analysed, preliminary key findings are(i) that SDPP promoted superior daily gain and better feed conversion after weaning, consistent withthe findings of the Murdoch University/DAFWA study described earlier;(ii) Inclusion of SDPP reduced mortality and morbidity to a level comparable to medicated feed withthe effects being most evident in gilt progeny; and(iii) Yeast protein in the diet tended to promote superior daily gain in the second and third weeks afterweaning, but was unable to reduce morbidity and mortality. Inclusion of the yeast protein in thediets offered pigs in the week before and after weaning did enhance piglet immunity measured at68 days especially in gilt progeny.(iv) Gilt progeny were more susceptible to respiratory disease than progeny from multiparous sows.(v) Overall the results suggest that SDPP markedly enhances gut development and digestive functionand better prepares the piglet for weaning and E coli challenge after weaning. Combining SDPPand yeast protein in the piglets diet may have longer term effects on health and survival.41

Pork CRC LimitedSubprogram 2C: Improving animal health and reducingantibiotic useSubprogram Leader: Dr Ross Cutler, (Ross Cutler & Associates).Key deliverables:• Nutritional, genetic, immunological and management solutions for the control and/ or reductionof disease and mortality in pigs as an adjunct to existing medication programs in all growthphases; and• Development of nutritional strategies and further improvement of metabolic modifiers and theirmode of application (eg; Ractopamine, porcine somatotropin) to improve lean tissue.Funded projectsProject Project Title Collaborative Partners Duration Total Cost2C-101 Management strategies to aidin the control of proliferativeenteropathy.NSW DPI 2005–2008 97,615*277,526**2C-102 Detection and strain typing ofBrachyspira hyodysenteriaeto support swine dysenteryeradication and control.Murdoch University, APFG andRivalea2005–2008 159,995*416,114**2C-103 Evaluation of grower pig andsucker pig APP vaccinationprograms.2C-104 Controlled exposure as amanagement tool for Glasser’sdisease.2C-105 Probiosis – a novel strategy forimproved gut health and feedconversion efficiency in pigswithout over-reliance on antibioticgrowth promotants.2C-106 Development of a serological ELISAtest for detection of herds withswine dysentery.APFG and Victoria DPI 2005–2007 193,380*554,000**Qld DPFI and APFG 2005–2009 300,000*683,000**NSW DPI 2006–2010 358,500*962,087**Murdoch University and APFG 2007–2009 260,638*213,464**2C-107 Manipulating the environment inthe porcine large intestine to helpcontrol swine dysentery.2C-108 The use of nucleotides, functionalamino acids and vitamins tostimulate feed intake, enhanceGIT development and immunity inthe pre- and post-wean piglet forlifetime growth performance.Murdoch University, DAFWAand CHMMurdoch University andDAFWA2008-2010 198,122*305,846**2008-2009 42,720*54,000**42

Research Program ReportsProject Project Title Collaborative Partners Duration Total Cost2C-109 Development of a semi-quantitativereal-time diagnostic assay for ileitis.NSW DPI 2008-2010 182,399*334,934**2C-110 Improving health of neonatalpiglets and weaners by injectingimmunoglobulins2C-111 Bacteriophage to controlEnterotoxigenic E coli2C-114 Evaluating replacement of zincoxide with an encapsulated zincoxide product as a means ofcontrolling post-weaning diarrhoeain piglets.Rivalea, APFG, Universityof SA and Charles SturtUniversityRivalea, APFG, University ofSA and APLZamira Life Sciences(formerly OzBio Pharms PtyLtd)2009-2012 264,483*595,628**2008-2012 170,470*559,950**2008-2010 23,756*29,400*** Cash ** In-kind: from industry or supporting participantsResearch Highlights for Subprogram 2CBreakthrough in swine dysentery diagnosticsProject 2C-106: Development of a serological ELISA test for detection of herdswith swine dysenteryProfessor David Hampson, School of Veterinary and Biomedical Sciences, Murdoch UniversitySwine dysentery is a serious and debilitating disease of pigs worldwide. Producers grappling withan outbreak find pig farming a frustrating experience with wasted efficiency, reduced growth rates,increased mortalities and high medication costs. The disease occurs in Australia and is present onsome well managed pig production units and, while some farms have depopulated as a disease controlmeasure, the risk of reintroduction is ever present. As a result of research supported by the CRC theworld now has a validated serological Enzyme-linked immunosorbent assay (ELISA) test for detectionof herds with swine dysentery.Prof David Hampson is arguably the world leader in Brachyspires, the bacterial family associated withthe disease and his laboratory has been at the forefront of Brachyspira research. Step by step, he andhis group have been unravelling the complex detection and categorisation of the world of Brachyspires.With funding from multiple sources over the last decades, and more recently from the Pork CRC, ProfHampson has been looking at the possibility of developing a serological test for swine dysentery. Someencouraging results were achieved and work is ongoing.43

Pork CRC LimitedReducing the use of antibiotics in animal production: Bacteriophages to controlE coliProject 2C-111: Using bacteriophage to control E coliProf Mary Barton and Kate Hodgson, University of South AustraliaBacteriophages are viruses which multiply inside and then kill bacteria. They were first discovered inthe early 1900s and, until the discovery of antibiotics, were used by some groups to treat infectionsin man and animals. Once antibiotics became available Western countries abandoned bacteriophagetherapy. However, active research and application of this therapy continues to the present in EasternEurope and phages are still provided to hospitals and clinics to treat infections.With the inexorable increase in antibiotic resistance, bacteriophage therapy has had somethingof a renaissance. In 2006 the USDA approved the use of bacteriophage product to control Listeriamonocytogenes contamination of ready-to-eat sliced meat and poultry products. More recently aproduct has been registered to control E coli O157:H7 contamination of beef carcasses.With funding from the Pork CRC, Professor Mary Barton and Kate Hodgson at the University ofSouth Australia are researching the application of bacteriophages to control E coli in pigs.Enterotoxigenic E coli (ETEC) cause significant morbidity and mortality in Australian pigs. Use ofbacteriophages to kill E coli will reduce the use of antibiotics and impact on the control of antibioticresistant strains as effectively as they kill sensitive strains. A further innovation in this project is thegoal of using bacteriophage panels to treat the piggery environment to reduce exposure of pigs toETECs rather than having to treat individual pigs or pens of pigs.In work so far a number of bacteriophage specific for high risk ETEC strains have been isolated &purified. The results are incomplete but there appears to be several different lytic phages, which maybe used combined in a phage cocktail for prevention and treatment of E coli associated diarrhoea.Pen trials are planned soon to assess safety and obtain preliminary efficacy data.A “lawn” of E coli covering an agar plateThe plaques or “holes” in the “lawn” are due to the lytic activity of the phages. Photo: Kate Hodgson44

Research Program ReportsAvoiding the risk of heavy metal accumulation in soils treated with pig effluentProject 2C-114: Evaluating the replacement of zinc oxide with an encapsulatedzinc oxide productDr Jae Cheol Kim, School of Veterinary and Biomedical Sciences, Murdoch UniversityZinc is an element that contributes to the fabric of life, however it is also a heavy metal and too muchhas an adverse effect on the environment. In pig production zinc oxide is used for the prevention ofpost weaning E coli diarrhoea. Unfortunately the high concentrations at which it is fed to pigs (3kg/tonne) pose an unsustainable environmental risk because of the toxic effect of faeces containinghigh concentrations of zinc.Zinc’s beneficial effects on the gut include the increased gene expression of antimicrobial peptidesin the small intestine, positive effects on the stability and diversity of the microflora, and bactericidalfunctions and reductions in electrolyte secretion in vitro from enterocytes. High levels of Zinc inweaner diets increases tight junction protein expression, and hence decrease intestinal permeability,which may prevent translocation of pathogenic bacteria through the intestinal barrier.In this project, the value of a microencapsulated zinc oxide product (Shield Zn) was evaluated as asolution for the environmental issue as well as controlling post weaning E coli diarrhoea.The results show that inclusion of 100 ppm microencapsulated ZnO in diets for two weeks afterweaning suppressed the expression of post-weaning diarrhoea in both enterotoxigenic E colichallenged and non-challenged pigs. Plasma and faecal zinc levels were the same as those found inthe pigs fed a control diet without additional ZnO supplementation. This means that post-weaning Ecoli diarrhoea can be controlled without adverse environmental impact.There is a better quality control system in place with the manufacture of microencapsulated ZnOproducts than with ZnO, avoiding the risks of other heavy metal contaminants such as lead.Figure XXX – Effect of ZnO and Shield zinc supplementation in ETEC-challenged or nonchallengedof ZnO pigs and on Shield the incidence zinc supplementation of PWD in ETEC-challenged or non-challenged pigs onEffectthe Expressed incidence as of a percentage PWD. Expressed of days with as a diarrhoea percentage during of the days 14 with days diarrhoea after weaning. during Diet the effect 14 days was aftersignificant (P

Pork CRC LimitedProject 2C-105: Probiosis-A novel strategy for improved gut healthProject 2C-116: E coli probiotic trial and challenge modelDr Toni Chapman, Elizabeth Macarthur Agricultural Institute (EMAI), Industry and Investment, NSWUnderstanding the genetic diversity of E coli in the gut of the newborn pig will lead to novel ways ofcolonising the intestine with bacteria that provide natural protection against opportunistic pathogens.In the first few days of life the establishment of the gut flora plays a critical role in shaping andmaturing the mucosal immunity in the newborn piglet. This process involves intense competitionbetween microorganisms attempting to colonize not only different compartments of the gut, but alsospecific niches in the interface between intestinal epithelial cells, the mucin overlay and the lumen.Research carried out at EMAI has confirmed that there is considerable diversity between the E colicommunity recovered from the duodenum, ileum, colon and faeces. In an attempt to elaborate thebasis for this diversity, it was found that while more than a third of the commensal E coli isolatedcarried a range of bacteriocin (colicin & microcin) genes in their aggressive arsenal, while less than5% of neonatal and post-weaning porcine disease strains had these genes, and even when theydid, the genes were different from that found in commensal strains. This finding has profoundsignificance in testing the concept of probiosis as a strategy for promoting intestinal health. Itaddresses an environmentally sustainable approach to colonize the gut of new- born piglets with aconsortium of commensal E coli that are highly antagonistic to pathogenic strains.If these commensal E coli can successfully establish in the neonatal gut, then this enteric bacterialcommunity will serve as a barrier to transgressing pathogens, prime the immune system and reducereliance on the use of in-feed antibiotics.Recently, Dr Toni Chapman and co-workers at EMAI have developed a novel technique fordistinguishing between pigs infected subclinically, and clinically, with pathogenic E coli. Thistechnique deploys a virulence gene assay charting the changing population dynamics over timeon-farm. It allows an evaluation of enteric health in relation to the E coli community present in eachanimal. Although strategically directed at pre- and post-weaning pigs, it is important to evaluatewhether a combination of neonatal probiosis, used in conjunction with post-weaning probiotics,could provide a complete process for generating the highest level of enteric health for pigs on farms.Done successfully it could also reduce the reliance on antibiotics.In studies by the EMAI group supported by the Pork CRC it has been found that two day old pigletshave the greatest diversity between E coli isolates; the E coli population begins to stabilise in thepiglet around 6 days of age; piglets from gilt litters had a more diverse E coli population than sowlitters and piglets from sow litters had a more stable E coli population.Of the commensal E coli strains tested, a shortlist of 102 candidates had been selected for testingon the basis of their probiotic potential. A shortlist of three strains was selected based on theircombined antagonistic properties and gene profiles (virulence, antimicrobial resistance, bacteriocinand plasmid profiles). These strains where then used in an E coli challenge trial at EMAI forevaluation of the probiotic formulation in vivo. Preliminary analysis of the data has revealed reducedpig numbers with, and reduced severity of, diarrhoea in probiotic supplemented weaners comparedto their control counterparts.46

Research Program ReportsSubprogram 2D: Improving sow reproduction and longevitySubprogram Leader: Mr Rob Smits, Rivalea Australia Pty Ltd.Sub-program 2D continues to be well represented with many new ideas submitted during 2009/10.Nine new projects are underway and these continue the research focus into three broad objectives:• Improvement of lactation performance and weaning weight; and• Improving sow longevity and lifetime sow performance• Investigating the potential for a new approach to breeding management through inducinglactation oestrus.Funded projectsProject Project Title Collaborative Partners Duration Total Cost2D-101 Management strategies to improvethe growth performance of giltprogeny.University of Sydney, NSWDPI and Rivalea2005–2007 218,840*578,602**2D-102 Supplementation of sow feed withomega 3 fatty acids to improveperformance and health of piglets.2D-104 Management strategies tomaximise sow longevity and lifetimeperformance.2D-105 Development of ovulationsynchronisation protocols tofacilitate natural mating and AIBreeding Systems.Rivalea 2005–2007 49,720*156,177**CHM, Rivalea and SARDI 2005–2009 704,501*4,029,920**University of Adelaide 2005–2007 185,887*209,251**2D-107 Do changes in steroid sensitivityand melatonin underpin seasonalinfertility.2D-108 Improving reproductive performanceduring seasonal infertility.Identification of “at-risk” sows andthe role of oocyte quality.2D-109 Using GnRH analogues to addressseasonal infertility in pigs.2D-110 Determining the effects of seasonon ovarian development and earlypregnancy returns.University of Adelaide, SARDIand RivaleaUniversity of Sydney, PICAustralia, Rivalea and CHMUniversity of Adelaide andCHMUniversity of Adelaide, SARDIand Feedworks2006–2009 155,472*482,586**2006–2009 104,412*532,484**2006–2008 180,066*240,068**2006–2009 171,114*372,432**2D-111 Measurement & comparison offeed intake and growth performanceduring lactation and wean-finishof gilt progeny pigs cross-fosteredonto multiparous sows.Rivalea 2007–2009 73,400*324,386**47

Pork CRC LimitedProject Project Title Collaborative Partners Duration Total Cost2D-112 Nutritional manipulation of corpusluteum development during earlypregnancy to increase embryosurvival and litter size.Rivalea and SARDI 2007–2010 473,984*330,074**2D-113 Induction of oestrus inlactating sows.2D-114 Using dietary betaine supplementationto alleviate summer infertilityand improve litter size.University of Sydney andRivaleaUniversity of Adelaide, APFG,Rivalea and SARDI2007–2008 62,500*24,005**2008-2010 188,970*123,472*2D-116 Lactogenesis: late gestation dietsand hormonal intervention.2D-117 The epidemiological andphysiological investigation of milkingdisorders.2D-118 Improving lactation performanceand sow longevity with pST andcombinations of CLA and betaine.Rivalea and SARDI 2009-2011 71,990*107,550**Rivalea and CSU 2008-2010 130,200*283,400**Rivalea 2009–2010 28,040*13,680**2D-119 Pregnancy & lactation interventionsto increase progeny birth weight,growth & survivability.2D-120 Strategies to enhance oestrusinduction in lactating sows.University of Adelaide, Rivaleaand APFGUniversity of Sydney andRivalea2009–2010 150,038*296,512**2009–2012 109,676*101,880**2D-121 Improving sow reproductive outputthrough dietary manipulation in latelactation.SARDI and APFG 2009–2012 136,550*138,990**2D-122 Reducing stillbirth & pre-weaningmortality rates through bettergestation feeding.SARDI, University of Adelaideand APFG2009–2012 70,190*199,045**2D-123 Dietary strategies to alleviate theimpact of seasonal infertility withingilt pools.University of Adelaide andSARDI2009–2012 91,448*101,000**2D-124 Improving piglet performancethrough increased polyamine levelsin sow milk.University of Adelaide 2008–2012 18,220*27,000**2D-125 Determining the effects of seasonon timing of ovulation and lutealfunction.University of Adelaide andAPFG2009–2012 201,532*256,300**2D-126 Investigation of the galactagoguepotential of Fenugreek in sows.SARDI 2009–2011 21,000*12,000*** Cash ** In-kind: from industry or supporting participants48

Research Program ReportsResearch Highlights for Subprogram 2DProject 2D-104: Management strategies to maximise sow longevity and lifetimeperformance:This collaborative project between CHM, SARDI and Rivalea has now completed the data collectionphase and the final report will be available in June 2012. To date, the project has establishedequations that allow a prediction of body composition based on weight and backfat measures,which is important as genotypes have changed considerably towards leaner and larger framed sows.Through this project we have also demonstrated that reducing the drain of sow body reserves duringlactation can have significant upsides in lifetime performance. These findings highlighted the needto manage the nutrition and lactation demands particularly in young sows. We have also concludedthat increasing protein feed intake in gestation to young sows is unwarranted. The final datasetstudying the effects of adjusting feeding levels to maintain adequate protein and fat reserves in sowsover successive parities is currently being analysed.Project 2D-105: Development of ovulation synchronisation protocols to facilitatenatural mating and AI Breeding SystemsThis project has been completed by Dr Sean O’Leary and Assoc. Prof. Mark Nottle at The Universityof Adelaide. During the course of the project, they were able to demonstrate the potential in usingexogenous hormones to synchronise oestrus in weaned sows, so that a fixed-time AI breedingprogram could be adopted without the need for subjective oestrus detection. The researchersidentified a commercial product and further studies through the Pork CRC are aimed at refining theprotocol to facilitate the commercial product registration through the Australian Pests and VeterinaryMedicines Association (APVMA).This project highlighted the potential for a mating protocol that could overcome variation in breedingsuccess due to inaccurate oestrus detection.Projects 2D-107 to 2D-110: Seasonal InfertilityThese projects addressed the complex issues associated with variable reproductive performancedue to seasonal changes. These projects are now completed and some of the causes of seasonalvariation are now better understood.Results from PhD student Michael Bertoldo and Drs Chris Grupen and Trish Holyoake of TheUniversity of Sydney, identified that risk factors of high parity, increased weaned to oestrus interval,younger weaning age and small litter size weaned, were associated with increased risk of seasonalinfertility. In further studies, they also reported seasonal differences in the follicular progesteroneconcentrations and quality of the oocyte through in-vitro maturation assessment techniques.49

Pork CRC LimitedProgesterone concentration (nmol lProgesterone concentration (nmol -1 -1 )3000 3000250020001500 15001000100050050000b baaSummerSummerc cb bWinterWinterSmall SmallLargeLargeBlastocyst formation (%)6050403020100Blastocyst formation (%)6050403020100a aaaSummerSummerb baaWinterWinterSmallLargeSmallLargeFollicular fluid progesterone concentration insmall (3-4 mm) and large (5-8 mm) pre-ovulatoryfollicles collected in summer and winterIn-vitro blastocyst formation from fertilized oocytesderived from small (3-4 mm) and large (5-8 mm)pre-ovulatory follicles collected in summer and winterDr Will van Wettere of the University of Adelaide concluded there is a potential nutritional approachto reduce the impact of seasonal reductions in litter size by feeding sows diets containing betaineduring gestation. In follow-up research, they are investigating the role of dietary betaine and othervitamins to improve reproductive performance.The seasonal infertility projects also provided new information as to the role of progesterone inmaintaining pregnancy and how progesterone secretion differs in summer/autumn to winter/spring.There is still much to be understood about how heat stress and changing day-length causesseasonal infertility, however the Pork CRC projects have provided significant advances in ourknowledge of seasonal impacts on reproductive physiology.PhD student Michael Bertoldo in the laboratory.50

Research Program ReportsProjects 2D-116 to 2D-119These projects cover research into increasing lactation and piglet weight at weaning. Some of theseare in progress whilst others are completed. In project 2D-119, the use of pST in late gestationfollows up earlier research in sub-program 2F where pST was administered to sows and increasedpiglet birth weight. This current study will identify if short-term treatment with pST can increase birthweight, and improve weaning weight of first-litter sows. Project 2D-117 is investigating the causeand prevalence of premature milking failure.These projects, and other lactation projects in sub-program 2G, have identified that health &husbandry are major factors determining the potential for a sow to produce sufficient milk to supportthe litter.Projects 2D-120: Strategies to enhance oestrus induction in lactating sowsThis collaborative project by Dr Jeff Downing of The University of Sydney, and Rivalea, continueson from a smaller pilot study whereby lactating sows were managed to come into oestrus in thefarrowing room and be successfully bred, thereby reducing non-productive days. It also providesa more flexible approach to sow breeding management which has the potential to changeconvention in the way we wean and manage early gestating sows. Research in this potentiallysystem changing project continues.51

Pork CRC LimitedSubprogram 2E: Advanced reproductive technologiesSubprogram Leader: Associate Professor Mark Nottle, University of Adelaide.Key deliverables:• Novel genetic and reproductive tools and technologies enhancing production efficiency, includingenhancing placental efficiency• Embryo freezingFunded projectsProject Project Title Collaborative Partners Duration Total Cost2E-101 Genetic Associations betweenvoluntary feed intake of females,finisher performance, and sowlongevity.Rivalea 2005–2009 294,500*1,430,800**2E-102 The effects of dietary Arginineduring gestation on thesubsequent litter size of giltsand sows.2E-103 Development of a selectionmarker for placental efficiency.University of Adelaide, Rivaleaand NutrecoUniversity of Adelaide andRivalea2006–2009 322,498*541,128**2005–2009 387,897*1,283,321**2E-105 Development of commercial.embryo freezing protocol forconservation, transportation andimportation of pig genetics.University of Adelaide 2008–2010 260,360*255,219**2E-107 Male factors and earlypregnancy loss.Charles Sturt University andCHM Alliance Pty Ltd2007–2010 265,913*266,678**2E-108 In vitro embryo productionsystems as a breeding toolfor the pig.University of Adelaide 2009–2010 229,356*184,888*** Cash ** In-kind: from industry or supporting participants52

Research Program ReportsResearch Highlights for Subprogram 2EProject 2E-101: Genetic associations between voluntary feed intakes of females,finisher performance and sow longevityThis is a large scale project involving researchers from the Australian Genetics and Breeding Unit(AGBU) and Rivalea. The project aims to determine the importance of lactation feed intake on sowlongevity and reproductive performance.Project statusThis project is now completed. Results from this study demonstrated that lactation feed intakewas a moderately heritable (h2: ~0.15-0.25) and variable trait under ad-libitum feed delivery, andtherefore could be considered as a selection criterion. However, the genetic correlation (ra) betweenfeed intake of the growing pig (finisher) and lactating sow was relatively low (ra: ~0.30), implyingthat any correlated response in sow lactation feed intake resulting from selection for finisher intakeattributes would likely be relatively small. Further, other traits typically in the breeding goal (eg growthtraits) are positively correlated with sow lactation feed intake, providing a mechanism to counteractcorrelated reductions in feed intake typically associated with strong selection emphasis on efficiencyor leanness. The genetic correlation between lactation intake and sow size is moderately positive,indicating that genetically larger sows also have greater intake capacity during lactation. Overall, theimpact of selection for finisher characteristics on sow lactation feed intake depends on the relativeemphasis placed on individual traits. It is important to note that low lactation intake also results frommany non-genetic factors such as season, low parity, poor sow health pre- or post-farrowing, andfeed delivery regimes which can potentially be ameliorated through management changes, therebycontributing to improved longevity through to the following parities. Therefore, recording lactationfeed intake data may be more useful from a management than a breeding program perspective.As a result of correlated responses in sow body composition, it is clear that breeding programsfocussing on selection for efficient lean growth in finishers generally places sows at more risk duringlactation because on average they have higher requirements, for sow maintenance and duringgestation and lactation, along with lower fat reserves. This makes adequate provision of nutrition forindividual sows increasingly difficult when selection occurs under breeding goals containing bothmaternal and slaughter pig attributes, as occurs in Australia due to strong market pressures andthe lack of more extreme genotypes for developing sire lines. This is particularly evident in the firstparity when there is strong competition between maternal growth and litter requirements, whereprimiparous sows carrying large litters show evidence of reduced maternal weight and fat gainsduring gestation, which are risk factors for failed lactation and reduced retention to the secondparity. In the face of several antagonistic genetic associations between sow and piglet outcomes,and evidence also for environmental constraints on sow performance, there is a clear need for moredetailed models to evaluate outcomes from selection at both the genetic and phenotypic levels;thereby facilitating appropriate breeding program design and selection emphasis. Maternal breedinggoals may benefit from using additional selection criteria on breeding sow attributes, althoughparameters obtained in this study need validation from other populations to identify the most robustand reliable selection criteria. In addition, development of strategies to better meet requirements ofindividual sows and their litters during both gestation and lactation is required.53

Pork CRC LimitedProject 2E-102: The effects of dietary Arginine during gestation on thesubsequent litter size of gilts and sowsThis project is a collaborative effort between researchers at the University of Adelaide, Rivalea andNutreco. The project aims to determine whether the amino acid arginine can improve reproductiveperformance in gilts and sows.Project StatusPrevious work has shown that supplementing the maternal diet with arginine, in early gestationincreases total born and number born alive by 1.5 in gilts and increases litter weight. The presentstudy examined the effect of maternal dietary arginine supplementation (1%) further in LargeWhite and Landrace gilts and sows. Overall supplementation of gilts and sows for 16 days in earlygestation, starting between days 15 to 20, increased total born (+0.9 pigs, p=0.011) and numberborn alive (+0.75, p=0.019), without reducing birth weight.In gilts, arginine supplementation increases litter birth weight by +1.0 kg (p=0.039), whereas in sows,arginine supplementation reduced litter birth weight by 0.5kg (p=0.039).In Large White gilts, arginine supplementation tended to increase total born (+2.3, p=0.057), butdecreased average birth weight by 0.1kg (p=0.039).In Landrace females, arginine supplementation increased total born (+1.1 pigs, p=0.034) andnumber born alive (+1.2, p=0.020). In Landrace gilts, arginine increased litter birth weight by+2.3 kg (p=0.030) and average birth weight by +0.11 kg (p=0.049). In Landrace sows, argininesupplementation increased total born (+1.8 pigs, p=0.020) and number born alive (+2.1, p=0.012).Together these results suggest that arginine supplementation in early gestation can improvereproductive performance in gilts and sows.Project 2E-103: Development of a selection marker for placental efficiencyThis project is collaboration between researchers at the University of Adelaide and Rivalea. Theplacenta and its delivery of nutrients and oxygen to the foetus have a major influence on growth andsurvival to birth. Selection for placental efficiency (PE) (the ratio of birth weight to placenta weight) inpigs can increase litter size and/or birth weight and sow longevity, but is not commercially feasiblewith current methods. The project is aimed at identifying genetic markers for PE that could be usedcommercially to improve reproductive efficiency.Project statusMale and female Large White (LW) and Landrace (LR) pigs were selected on the basis of having ahigh or low PE at birth. High PE were mated with high PE, and low PE were mated with low PE. Theoutcomes for their offspring now determined (see table on next page).Overall, selecting for high placental efficiency (HPE) compared to low placental efficiency (LPE) doesnot alter the total number of piglets born, the number born alive, the number still born or mummifiedor birth weight. In Large White gilts, selecting for HPE increased the total number born (+3.34 piglets,P=0.018) and number born alive (+2.75 piglets, P=0.015) compared to LPE.54

Research Program ReportsHPE tended to increase birth weight of piglets born alive (LPE = 1.26 kg, HPE = 1.32 kg, +0.06 kg,P=0.062), and reduce placental weight (low PE = 0.248 kg, high PE = 0.233 kg, -0.015 kg, P=0.046)hence reducing uterine crowding.Placental efficiency of individual litters was higher in the HPE gilts compared to the LPE gilts (LPE= 4.958, HPE = 5.767, +0.809, P=0.001) (Table 1). When analysed by breed, placental efficiencywas higher in HPE LR gilts compared with LPE LR gilts (LR HPE = 6.139, LR LPE = 4.958, +1.181,p

Pork CRC LimitedTo date, this is by far the largest selection trial yet undertaken for placental efficiency in a commercialherd. Selecting for high placental efficiency in gilts improves pregnancy outcomes in terms of pigletsurvival, birth weight and day 10 weights, with reductions in uterine capacity, in LW and LR giltsand sows. The outcomes of these selection lines offer a major opportunity to investigate geneticmarkers for placental efficiency, but also to evaluate the impact of such markers on other traits. Theproject has also identified a genetic marker, single nucleotide polymorphism (SNP) that may be usedto identify /select animals with high placental efficiency and improved reproduction. The incidenceof the variants in this candidate genetic marker has been defined in a large commercial herd andthe findings suggest that within female lines there is a variation of the SNP which is associated withimproved PE and reproduction.Project 2E-105: Development of commercial embryo freezing protocol forconservation, transportationThe project builds on the pioneering work undertaken by researchers at the University of Adelaideand aims to develop a method which can be used to conserve, as well as transport, geneticsbetween pork production units, both nationally and internationally.Project statusThis project is now completed and has successfully developed a porcine embryo cryopreservationprotocol that complies with International Embryo Transfer Society requirements and producesacceptable results. It is reasonably simple to perform and does not require expensive equipment orcomplex laboratory facilities and could be used for the importing or exporting of pig embryos withno further modification. However appropriate quarantine measures for handling embryo donors andembryo recipients still need to be developed as well as approval by AQIS (or similar) regardingthese and the method developed before it can be used commercially.Initial experiments investigated various embryo handling media and showed that the best mediumwas one developed in our laboratory specifically for pig embryos. A commercially available mediumwas found to be suitable for the short term storage, handling and cryopreservation of the embryos,but not for medium to long term storage.Two cryopreservation protocols using the Cryologic Vitrification Method (CVM) were then compared.While both produced similar in vitro survival rates post warming (97 to 100% survival), the selectedprotocol was faster to perform and technically simpler, both important considerations if the protocolis to be used commercially. This method was then modified to conform to protocols developedby the International Society of Embryo Transfer for the international transfer of embryos. Theseprotocols are designed to minimize disease transmission and are used by countries and regulatoryauthorities around the world.Specifically to overcome possible contamination via the liquid nitrogen embryos are stored in, wedeveloped a suitable container for the long term storage of embryos. Several containers were testedand the one selected demonstrated a low chance of leaking when submerged in liquid nitrogen,is inexpensive, readily available and simple to use. Also its use did not affect the success of thevitrification process. Then we incorporated an embryo washing protocol using a non-animal trypsinto minimize disease transmission and showed that this did not affect embryo survival post warming.56

Research Program ReportsThe vitrification protocol including all the modifications was then used to cryopreserve and thenrecover porcine blastocysts which were then transferred into six pseudopregnant recipients (average26 cryopreserved embryos transferred per recipient). Of these six, five maintained pregnancy andfarrowed a total of 26 piglets (average litter size 5.2), both of which are in the acceptable ranges forthe transfer of cryopreserved embryos with regard to pregnancy rate and litter sizes.Project 2E-107: Male factors and early pregnancy lossThis project is a collaboration between researchers at Charles Sturt University and the PigImprovement Company. The project aims to determine methods for evaluating the fertility of semenand in particular factors which may be responsible for the early loss of embryos. The latter isbeing examined using single sire breeding records, associations with biomarkers in boar semen,IVF trials using gilt oocytes and embryo transfers. The last two utilising boar semen containingsuspect biomarkers in combination with appropriately modified extenders. In turn, semen andsperm biomarkers are being pursued using cutting-edge andrological techniques including DIC andFluorescent microscopy, flow cytometry and proteomics.Project statusLarge datasets have been analysed representing 12,336 single-sire A.I. breedings (utilising 7sire-lines and 19 dam-lines) over a 3 year period. Here the effects of sire and dam lines, parity,year and month of mating and inseminator were compared with outcomes, eg total pigs born,born alive, stillborn and mummified. As expected, sire line, dam line, parity and season affectedmost outcomes. In particular, sire and sire genetics affected not only fertility traits but also severalassociated with pregnancy attrition (e.g. still births and mummified pigs). The challenge then is toidentify and assess those male factors responsible.This question was pursued by subjecting pig semen used for single sire mating to a large battery oftests and then relating findings to the reproductive outcomes obtained using those same ejaculates.Preliminary data is available on 238 semen samples used for 5422 inseminations of sows and giltsand representing 8 sire lines. At present the databank is sufficient to include total pigs born and bornalive only. However, useful indicators have already emerged, as below.57

Pork CRC LimitedThe most significant semen traits affecting total pigs born were arrival temperature, % distaldroplets, % detached sperm heads and % intact sperm membranes (i.e. “live/dead”). These samefactors (excluding % distal droplets) also significantly influenced piglets born alive. Relationshipswere as followsTrait Total Pigs Born Total Born AliveIncreased Arrival Temp 1 0 C Decrease 0.14 Decrease 0.24Increase Distal Droplets by 1% Decrease 0.04 n.s.Increase Membrane Intact Sperm 1% Increase 0.03 Increase 0.04Increase Normal Sperm 1% Increase 0.01 Increase 0.02This dataset is in the process of being augmented with increased breeding numbers as well asadditional tests including proteomics (initially ubiquitin) and IVF assessments (fertilization rate,embryo quality). However, these preliminary results indicate that considerable progress can be madein pig reproduction by increased attention to quality control measures in semen processing andhandling which confirms an initial objective of this project.Project 2E 108: Development of in vitro embryo production systems as abreeding tool for the pigThis is a collaborative project between researchers at the University of Adelaide and SARDI LivestockSystems. The aim of the project is to develop a new approach to genetic improvement by repeatedlycollecting oocytes from the surface of ovaries of live animals non surgically, fertilising these in vitrousing, for example, sexed semen and then transfer these non surgically to surrogate animals. Thismethod is already used commercially in the cattle industry. Ultimately it should be possible to harvestall 300,000 eggs in the ovary from valuable animals and grow these in the laboratory.Project statusMethods for the production of viable embryo continue to be developed using oocytes derived fromabattoir ovaries. Researchers at SARDI have developed an embryo transfer catheter prototype whichhas been used to successfully transfer embryos to recipient animals resulting in pregnancies andlive births. The final step in demonstrating “proof of concept” is to develop a method for aspiratingfollicles on the surface of the ovaries in order to collect oocytes repeatedly from live animals.58

Research Program ReportsSubprogram 2F: Physiology and growth manipulationSubprogram Leader: Professor Frank Dunshea, University of Melbourne.Key deliverables:• Commercial means of manipulating the performance and carcass characteristics of growing pigs;• Nutrition strategies to enhance endogenous growth hormone levels in growing pigs; and• Strategies to manipulate the pre-natal development of pigs.Funded projectsProject Project Title Collaborative Partners Duration Total Cost2F-101 The effects of fatty acids onthe feed efficiency and carcasscharacteristics of growing pigs.University of Sydney 2006–2009 560,147*282,169**2F-102 Evaluation of omega fattyacids supplementation as anutritional approach to increaseproductivity.2F-103 The effects of exogenous pSTadministration and feedingRactopamine in early pregnancyon the birth weight and growthperformance of gilt and sowprogeny.2F-104 Improving feed conversionefficiency and carcasscomposition in barrows.Rivalea and University ofAdelaideUniversity of Adelaide, Rivaleaand Elanco Animal HealthCharles Sturt University, Rivaleaand Elanco Animal Health2005–2008 225,000*816,033**2006–2008 308,248*917,108**2007–2010 366,536*177,000**2F-106 Nutritional manipulation of thesomatotophic axis in grower andfinisher pigs.Murdoch University and DAFWA 2007–2010 116,983*306,000**2F-108 Effect of Nano-chromium ongrowth performance, carcasscharacteristics, and glucosemetabolism of finishing pigs.University of Melbourne andDAFWA2009–2010 59,600*72,820**2F-109 Field evaluation of benefitsof fish oil supplementationin multiparous sows duringlactation and early pregnancyon fertility.Rivalea 2009–2010 55,110*131,600*** Cash ** In-kind: from industry or supporting participants59

2F-109: Field evaluation of benefits of fish oil supplementation in multiparous sows duringlactation and early pregnancy on fertilityPork CRC LimitedThe aim of this study was to assess the effect on reproductive performance of supplementing thediet with omega 3 fatty acids from fish oil when fed to sows either before post-weaning oestrus,during early pregnancy or continuously from lactation through to four weeks gestation. Mixed paritysows (parity 1-7) were fed one of two lactation diets: either unsupplemented (Control lactation)and formulated using wheat, cereals and soybean and canola meals and using tallow as the main2F-109: source Field of fat evaluation (68 g/kg) of or benefits the same of base fish diet oil supplementation supplemented with in 3 multiparousg/kg of fish oil substituting v/vwith tallow sows (Omega during 3 lactation). and Following early pregnancy weaning, on sows fertility continued on their treatment diet untiloestrus. Of the sows weaned and displaying oestrus, sows were then fed either one of two gestationThe aim of this study was to assess the effect on reproductive performance of supplementing thediets: either unsupplemented and formulated using wheat and cereals and tallow as the main fatdietsourcewith omega(10 g/kg)3 fatty acids(Controlfromgestation),fish oil whenorfedtheto sowssameeitherbasebeforedietpost-weaningsupplementedoestrus,with 6 g/kg of fish oilduring substituted early pregnancy for tallow. or continuously Subsequent from reproductive lactation throuwgh performance to four weeks for gestation. weaning Mixed to oestrus, parity proportion ofsows sows (parity re-mated, 1-7) were farrowing fed one of two rate lactation and subsequent diets: either unsupplemented litter size born (Control live and lactation) total and born were analysedformulated with average using wheat, lifetime cereals litter and size soybean born and canola lactation meals length. and using tallow as the main sourceof fat (68 g/kg) or the same base diet supplemented with 3 g/kg of fish oil substituting v/v with tallowThere was no significant treatment effect on the number of sows weaned, number re-mated or(Omega weaning 3 lactation). to oestrus Following interval. weaning, Subsequent sows continued litter on size their was treatment significantly diet until oestrus. higher Of (P

Pork CRC LimitedResearch Highlights for Subprogram 2GProject 2G-101: Investigate the mechanisms and effects of Ractopamine on fattissue deposition in finisher pigsA Pork CRC postgraduate Mr Charles Rikard-Bell is investigating means of enhancing the biologicalefficiency and cost effectiveness of Ractopamine (Paylean).This project has now completed all the experiments and the final report is being prepared. Therehave been a number of publications from this project that have significantly changed the way inwhich Ractopamine is used in Australia. The titration studies on individual pigs defined the lysinerequirements for male and female pigs when given 5 or 10 ppm of Ractopamine in their diet.The uptake of these recommendations has been immediate, and given that the current use ofRactopamine in the Australian industry is 70%, the impact on the return to producers is large.The development of specific assays to determine the β-adrenergic receptors in fat and muscleis highlighting the mechanisms where we can maximise the response to Ractopamine in thecommercial setting.Further projects have now developed from this project to look at the influences of different proteinsources and interactions with other metabolic modifiers, and optimal dose rates to maximisecommercial responses.Project 2G-104: Net energy defines lean and fat deposition better thandigestible energyProject StatusThis project has been completed and the outcome indicated that formulating diets to a net energyspecification rather than a digestible energy specification pays off in respect to the final carcasscomposition rather than the live performance. The savings associated with formulating to netenergy rather than digestible energy can be as high as $0.85 per pig over just the finisher phase ofproduction. While the complete change to a net energy system is not justified commercially the useof the system in conjunction with the current digestible energy system is a major step forward for theAustralian industry.Project 2G-105: Cost effective formulations of vegetable-protein based dietsthrough quantification of nutrient lift in high and low phytatediets with added phytase.Project StatusAnalytical work is in the final stages of evaluation and the research report and outcomes will bedistributed through Pork CRC communications channels.62

Research Program ReportsProject 2G-106: Establishing the protein requirements for maximum lactationperformance and the subsequent reproductive performanceof sowsProject StatusThe recommendation from this project is that parity 1 sows should be fed a diet in lactationformulated to high energy and 11g lysine/kg (0.62 g available Lysine/MJ DE) to allow adequateprotein intake for sow longevity. During summer, feeding sows a higher protein diet can reduceoverall feed intake, and won’t improve milk production and litter gains when other factors, such ashealth, are limiting performance. It is important to recognise that the nutrition of the sow is a balancebetween her genetic capacity and the environment she is maintained in, as well as what she eats.Project 2G-107: The use of high fibre diets to manipulate fat distribution ingrowing pigsProject StatusThe research so far suggests that the use of high fibre diets does not significantly affect fat depthas measured at the P2 site although the fat distribution effects are still to be analysed. There was aninteresting finding in that a significant effect on the fatty acid profile of belly fat in pigs fed the controldiet, with a significantly higher percentage of saturated fatty acids and lower levels of unsaturatedfatty acids than pigs fed the diets containing fibrous ingredients, particularly in comparison to thestraw diet (P

Pork CRC Limited14011h Insulin Profile Phasic Vs Ad Libitum Fed Pigs120micro units/ml100806040ad libphasic200700 800 900 1000 1100 1200 1300 1400 1500 1600 1700Time (hours)0900-1000 feed 1400-1500 feed11h Insulin Profile Phasic Vs Ad Libitum Fed Pigs2G­109: Single Diet v Phase Feeding ­ Commercial validationThis project has just been completed and early data suggests that the feeding of a single dietProject 2G-109: Single Diet v Phase Feeding - Commercial validationthroughout the growing-finishing phase is as efficient as a phase feeding nutritional program. Itappears Project very Status likely that our recommendations for the nutritional requirements of the growing pigmay be significantly less than those required for the efficient production of the modern-day pig.This project has just been completed and early data suggests that the feeding of a single dietthroughout the growing-finishing phase is as efficient as a phase feeding nutritional program. Itappears very likely that our recommendations for the nutritional requirements of the growing pigmay be significantly less than those required for the efficient production of the modern-day pig.64

Research Program ReportsSubprogram 2H: Grower/Finisher cost reductionSubprogram Leader: Dr Roger Campbell, Pork CRC Ltd.Funded projectsProject Project Title Collaborative Partners Duration Total Cost2H-101 Strategies to reduce sortingvariability.2H-102 Influence of dietary protein sourceon the effects of the metabolicmodifiers ractopamine (Paylean®)and pST (Reporcin) during thefinisher period.Rivalea 2009–2010 41,178*111,476**Rivalea 2009–2010 44,802*44,034*** Cash ** In-kind: from industry or supporting participantsResearch HighlightsThis is a new subprogram established in 2009 to co-ordinate projects which have the aim ofreducing the cost to producers in the grower/finisher phase. No results have been reported at thistime due to the early stage of each project.65

Pork CRC LimitedProgram 3: Enhancing capacity to deliver nutrientspromoting health and well-being through porkPork CRC Target: 1) Increase export and domestic sales volumes by 10% by 20122) To achieve a $1.00/kg increase in returns for 10% of theproduct sold into the higher value markets by 2012Program Leader: Ms Heather Channon, Australian Pork Ltd (APL).Assessment of these fortified pork and conventional pork products for health claims usingaccepted models.Enhancing the capacity to deliver nutrients promoting health and well-being through pork willincrease the value and versatility of pork products resulting in:a) An increase in range of viable pork products and market opportunities for the Australian industry;andb) Demonstrated benefits from consumption of pork products for consumers.Subprogram 3A: Enhancing capacity to deliver nutrientspromoting health and well-being through porkKey deliverables:• Fresh pork products, desired by consumers, based on the natural human health benefits of pork; and• Fresh pork products, ready for retail, with specific nutritional attributes relative to the dailyrequirements of consumers (e.g.: selenium, iron, and bioactives).Funded projectsProject Project Title Collaborative Partners Duration Total Cost3A-102 Nutritional strategies to increasethe selenium and iron content inpork and promote human health.Victoria DPI and Feedworks 2005–2008 228,014*531,300**3A-104 Fresh pork and cardiometabolichealth.University of South Australiaand APL2008-2011 318,025*469,930**3A-105 The effects of satiety of pork. University of Wollongongand APL2008-2009 234,851258,002**3A-106 Pork meat as a dietary strategyfor the treatment of irondeficiency in young women.University of Sydney and APL 2008-2009 172,907*185,477**66

Research Program ReportsProject Project Title Collaborative Partners Duration Total Cost3A-107 The role of Australian pork inimproving thiamine status, heartdisease risk factors and glucosecontrol in people with Type 2diabetes.3A-108 Nutritional manipulation of ironlevel in finisher pigs & fresh pork.CSIRO Food & NutritionalSciences and APLVictoria DPI, MurdochUniversity and University ofMelbourne2008-2010 215,000*150,000**2008-2009 50,566*3A-109 Soya bean Lecithin to improvetenderness and health activeproperties of pork.University of Melbourne andRivalea2009-2011 55,552*102,221**3A-111 How does regular consumptionof fresh lean pork impact onbody composition in comparisonwith lean chicken or lean beef?University of South Australia 2010-2012 246,458*56,667*** Cash ** In-kind: from industry or supporting participantsSubprogram 3B - Enhancing Iron content of Pork forhuman healthSubprogram Leader: Dr Ross Cutler, (Ross Cutler & Associates).Key deliverables:• Improve the level and bioavailability of iron in pork through dietary iron supplementation;• Strategies to enhance the uptake & deposition of iron in pigs to increase the Iron content of pork;• Investigate pig production systems that enhance the iron content of pork; and• Use of nutrigenomics to increase the levels of iron in pork through cellular modulation.Project Project Title Collaborative Partners Duration Total Cost3B-101 Do hypoxia and/or erythropoietin(EPO) treatment increase the levelof iron in pork?3B-102 Genetic parameters and breeddifferences for iron content in pork.CSIRO Livestock Industriesand APLAnimal Genetics and BreedingUnit, APL and Rivalea2009-2011 103,137*283,819**2009-2012 209,846*363,300**67

Pork CRC LimitedProject Project Title Collaborative Partners Duration Total Cost3B-103 Enhancing the iron content of porkto promote human health benefits.Murdoch University and APL 2010-2012 180,887*280,395**68Research Highlights for Program 3Project 3A-104: Fresh pork and cardiometabolic healthHigh protein, low carbohydrate meat-based diets are commonly promoted for weight loss, withstudies indicating that it may be due to both increased satiety and energy expenditure. Despite porkResearch Highlights for Program 3being the most widely consumed meat in the world, little evidence of weight loss or other potential3A­104: Fresh cardiometabolic pork and cardiometabolic health benefits associated health with eating pork is available. This study investigated theeffect of regular consumption of lean fresh pork on cardiometabolic health including body compositionHigh protein, low carbohydrate meat-based diets are commonly promoted for weight loss, with studiesindicating that it mayandbe duerisktofactorsboth increasedfor diabetessatietyandand energycardiovascularexpenditure.disease.DespiteAporkdietarybeinginterventionthetrial was conductedmost widely consumed involving meat the 144 world, overweight/obese little evidence of men weight and loss women or other who potential were low pork consumers (ate less than onecardiometabolic health pork benefits meal per associated week) with and were eating randomised pork available. to eat This up study to 7 investigated serves per the week or, alternatively, remain oneffect of regular consumption of lean fresh pork on cardiometabolic health including body compositionand risk factors for diabetestheir customaryand cardiovasculardiet for 6disease.months.A dietaryMen andinterventionwomen ontrialthewasporkconducteddiet were provided with 1050g/wk andinvolving 144 overweight/obese 750g/wk, respectively, men and women of lean who fresh were low cuts pork of steak, consumers sausages, (ate less diced, than one mince and stir fry to incorporatepork meal per week) into and their were diet. randomised Cardiometabolic to eat up to outcomes 7 serves per were week measured or, alternatively, at baseline remain and then at 3 and 6 months,on their customary diet for 6 months. Men and women on the pork diet were provided with1050g/wk and 750g/wk,andrespectively,included weight,of leanbodyfreshmasscuts ofindex,steak,waist/hipsausages, diced,circumferencemince andandstirbody composition (% body fat,fry to incorporate into abdominal their diet. fat, Cardiometabolic lean mass), risk outcomes factors were for measured diabetes at (blood baseline glucose and then and at insulin) and cardiovascular3 and 6 months, and disease included (blood weight, lipids, body mass blood index, pressure, waist/hip heart circumference rate, large/small and body artery elasticity index).composition (% body fat, abdominal fat, lean mass), risk factors for diabetes (blood glucose andinsulin) and cardiovascular On average disease male (blood volunteers lipids, blood in the pressure, pork group heart rate, consumed large/small 946g artery per week (135g/d), while femaleelasticity index).volunteers in the pork group consumed 682g (97g/d) per week, without significant changes in intakesOn average male volunteers in the pork group consumed 946g per week (135g/d), while femaleof total meat, total energy or macronutrients (fat, protein, carbohydrate). Importantly, improvementsvolunteers in the pork group consumed 682g (97g/d) per week, without significant changes inintakes of total meat, in weight total energy (P≤0.01), or macronutrients body mass (fat, index protein, (P

Research Program ReportsProject 3A-105: The effects of satiety of porkLimited scientific evidence suggests that pork may have an important role in obesity prevention andweight loss through satiating effects, when replacing other protein foods in a mixed diet. The shorttermregulation of food intake is mediated via neural and humoral signals from the gastrointestinal tractto different regions in the brain Some studies have demonstrated that consumption of a high-proteindiet increases satiety through a decrease in circulating ghrelin (associated with feelings of hunger),and increased concentrations of cholecystokinin (CCK) and Peptide Y-Y (PYY) (both associated withsatiety). In the longer term, regulation of food intake by hormones such as leptin from adipose tissueand insulin from the pancreas may be significant. The objective of this study was to demonstrate thatthe consumption of a pork meal has a greater effect on acute satiety than comparative meals usinganimal protein sources, namely beef and chicken.No differences were found between meat groups for either energy intake, or for macronutrient profile(% energy from protein, fat or carbohydrate) of food consumed at the buffet lunch, following test mealbreakfast consumption. With the exception of a difference in PYY between chicken and pork meals(P = 0.027), no significant differences were found for any of the appetite hormone levels investigated(CCK, ghrelin, insulin) after consumption of pork, beef or chicken (see table below).Gut hormone measurements following consumption of three meat-containing breakfast mealsVariable (Area BeefChickenPorkP-Valueunder curve)(n=26)(n=26)(n=29)PYY (n=17) 46250±18268 39040±11639 46949±13269 0.027*CCK (n=17) 1935±961 1917±1068 2110±1231 0.587Ghrelin (n=17) 6082±4926 5173±4373 7787±8004 0.148Glucose (n = 17) 832.68±137.84 827.48±102.24 819.47±147.28 0.495Insulin (n = 17) 5381.83±2392.13 5510.80±1882.21 6088.38±2661.46 0.354As high protein diets are increasingly regarded to provide opportunities for improved satiety and weightloss, these findings enable pork to be positioned equally to beef and chicken, as part of a healthy diet,in terms of its effect on satiety and release of appetite-related intestinal hormones and insulin. Wherepreviously consumers may have only thought of red meat and chicken in terms of these benefits, porkcan now be regarded as being equally effective.69

Pork CRC LimitedProject 3A-106: Pork meat as a dietary strategy for the treatment of irondeficiency in young womenThe role of pork in influencing iron status of humans has not been widely researched. The objectiveof this study was to determine whether consuming pork over a 3 month period would impact thenutritional status of iron, zinc, vitamin B6, vitamin B12, and the feeling of wellbeing in young women.Young women were randomly assigned to a control diet, pork containing diet or a control diet with ironsupplementation for 12 weeks. Sixty-five women aged 24.6 ± 4.4 years completed the trial. Overall, itwas concluded that the consumption of pork meat by young women maintains haemoglobin levels tothe same extent as low-dose iron supplementation and enhances the feeling of wellbeing.Serum ferritin concentrations increased (P=0.001) in subjects that were on the control diet with iron supplementationcompared to the other groups. At week 12, haemoglobin concentrations were higher insubjects on the pork diet and on the control diet with iron supplementation as compared to individualsin the control group. Plasma zinc concentrations at the end of the intervention were similar to baselineconcentrations for individuals in the control and pork groups but were decreased significantly (P

Research Program ReportsProject 3B-101: Do hypoxia and/orerythropoietin treatment increased thelevel of iron in pork?This project is one of three focussing onenhancing the iron status of pigs to increasemuscle iron content of pork. The objectiveof project 3B-101 is to develop strategiesto increase the iron content of pork throughmodifications to pig production systems and ifsuccessful, the cost and feasibility of alternativemethods to increasing myoglobin content of pigmeat will be evaluated. The first study testedthe hypothesis that exposure of pigs to hypoxiaimmediately prior to slaughter provides a targetedmeans of up-regulating muscle myoglobin in pigswithout significantly impacting upon meat qualityand feed efficiency parameters and withoutrequiring new genetic backgrounds.Anti-clockwise from Top Left:Program 3 Researchers, Karen Murphy,Thomas Wycherley, Heather Channon (ManagerProgram 3), Peter Howe and Karen CharltonPigs exposed to intermittent hypoxia hadsignificantly (P

Pork CRC LimitededucationProgram 4: Education and communicationsPork CRC Target: 1) Recruitment of students and completion of 12 post graduatedegrees in pork related projects by 20122) Recruitment of three postdoctoral researchers into Pork CRCprojects by 20123) Development of a course work masters degree and lifelonglearning courses for piggery staff and school students4) Development of an effective communication strategy and planfor the Pork CRCProgram Leader: Dr William van Wettere, University of Adelaide, South AustraliaKey deliverables:• New scientists and skilled technical staff for the pork industry ; and• An effective communications channel with Australian pork producers.The Education and Training program is designed to encourage undergraduate and postgraduatestudents to view the pork industry as a career path and to ensure the industry has the long termhuman resources required to make Australia a leader in pig research and development, andcommercial production technologies.To achieve this outcome the Pork CRC has to date awarded:• 5 post-doctoral;• 23 post-graduate; and• 36 under-graduate honours awards.The Pork CRC will be further refining the scholarship program based on the results of a surveyrecently undertaken to determine the Australian pork industry’s graduate and post-graduate needs.The Education and Training program is also closely linked with APL and the two organisations arefunding the development of pork-related teaching materials for secondary schools and universities.In addition, the Pork CRC also funds a number of refresher courses for industry consultants,technical seminars for producers and their staff and has established a two week course forproducers, under graduates, postgraduates and technical staff at the University of Adelaide.The course (Pig Science into Practice) commenced in January 2010 and was very well attendedand will be made available on line in 2011.72

Research Program ReportsPork CRC Awards1. Post-doctorateDr Ronald Newman: The effects of fattyacids on the feed efficiency and carcasscharacteristics of growing pigs.The University of Sydney (NSW)Dr Peter Sopade: Processing methods forimproving the utilisation of cereal grains by pigs.The University of Queensland (Qld)Dr William van Wettere: Improving thereproductive efficiency of gilts and sows.The University of Adelaide and SARDI (SA)Dr Barbara Williams: Processing methods forimproving the utilisation of cereal grains by pigs.The University of Queensland (Qld)Dr Craig Lewis: Genetic associations betweenvoluntary feed intake of females, finisherperformance and sow longevity.University of New England (NSW)2. Post-graduateMr Ghaid Al Rabadi: Effects of feed processingon gestation and intake in pigs.The University of Queensland (Qld)Ms Rebecca Athorn: Post-mating nutritionalstrategies to improve establishment ofpregnancy and litter size.The University of Adelaide (SA)Ms Larissa Beale: Role of fitness and virulencegenes in Escherichia coli adaption incommensalism versus pathogenicity in thegastrointestinal tract.The University of Queensland (Qld)Mr Mitchell Groves: Technological developmentand epidemiological assessment of zoonoticmicrobial agents in pig production systems .The University of Queensland (Qld)Ms Kate Hodgson: An investigation into the useof Bacteriophage to control EnterotoxigenicEscherichia coli associated with post weaningdiarrhoea in piglets.University of South Australia (SA)Ms Edwina Leslie: Livestock movement andmanaging disease in Indonesia and EasternAustralia.The University of Sydney (NSW)Ms Robyn Terry: Managing the lactating sowto stimulate lactational ovulation and improvereproductive performanceUniversity of Adelaide (SA)Mr Matthew Tscharke: An intelligent feedingsystem capable of taking decisions accordingto real time information.University of Southern Queensland (Qld)Ms Siew Yin Woon: Improving health ofneonatal piglets and weaners by injectingImmunoglobulins.Charles Sturt University (NSW)Mr Alex Hung: Effect of Nano chromium ongrowth performance carcass characteristics,and glucose metabolism of finishing pigsThe University of Melbourne (Vic)Mr Michael Bertoldo: Improving reproductiveperformance during seasonal infertility:Identification of ‘at risk’ sows and the role ofoocyte quality.The University of Sydney (NSW)Ms Gabbrielle Brooke: The effects ofdigestive physiology caused by dietary fat.The University of Adelaide (SA)Ms Megan Edwards: Development of SemiMoist Extruded Creep Feeds to promotegastrointestinal tract development, feed Intakeand weaning weights.University of New England (NSW)73

Pork CRC LimitedMs Jane Fauser: Effects of nutritionalsupplements on intestinal health anddisease states.The University of Adelaide (SA)Ms Josie Ferrari: Effects of neonatal oxytocintreatment and liquid feeding pigs on intake,growth and gastrointestinal hormone levels.Murdoch University (WA)Ms Avril Finn: Improving utilisation of sorghumthrough the use of feed additives in pigs.The University of Queensland and DPI & F (Qld)Ms Pauline Geale: Manipulation of growth andphysiology in the young pig.The University of Sydney (NSW)Ms Belinda Harland: Improving understandingof the epidemiology and means to control swinedysentery in Australia.Murdoch University (WA)Ms Sriyani Jayasooriya: Bioavailability ofselenium in enriched pork and pork productsand health implications.Murdoch University (WA)Mr Scott Johnson: Improving feed conversionefficiency and carcass composition in barrows.Charles Sturt University (NSW)Ms Yvette Miller: (completed 30 June 2008):Improving the performance of gilt progeny:the role of immunity.The University of Sydney (NSW)Mr Charles Rikard-Bell: Improving thebiological efficiency and cost effectivenessof Ractopamine.Murdoch University (WA)Mr Stuart Wilkinson: The effects of fattyacids on the feed efficiency and carcasscharacteristics of growing pigs.The University of Sydney (NSW)3. Under-graduate honoursMs Leah Frazer: Dietary manipulation In latelactation to improve ovarian function and oocytedevelopmental competence at weaning.The University of Adelaide (SA)Ms Jillian Groat: Demonstrating optimal pigwelfare is vital for the future of commercialintensive pig farming.Charles Sturt University (NSW)Mr Paul Herde: Dietary strategies to alleviateinsulin resistance in multiparous sows.The University of Adelaide (SA)Ms Ellen Heycox: The epidemiological andphysiological investigation of milking disordersin sows and the relation to pre-weaning moralityand growth rates.Charles Sturt University (NSW)Mr Malcolm Hill: Identify boar spermatozoa byelevated ambient temperature (28°C).University of Queensland (Qld)Ms Emily Kearns: Strategies to enhance oestrusinduction in lactating sowsThe University of Sydney (NSW)Ms Sarah Knapp: Pregnancy and lactationInterventions to increase progeny birth weight,growth and survivability.The University of Adelaide (SA)Mr Anton Pluschke: Improving the efficiency ofpig feed and application of additivesThe University of Queensland (Qld)Ms Jessica Rickard: Evaluation of boar spermhypotonic resistance as a useful predictor offertilityThe University of Sydney (NSW)74

Research Program ReportsMs Tahlia Sobko: Improving piglet performancethrough polyamine supplementation duringlactationThe University of Adelaide (SA)Ms Alice Weaver: Extend and enhance theproductive life of the breeding female throughnovel management and system design.The University of Adelaide (SA)Mr Thomas Woods: Strategies to enhanceoestrus induction in lactating sows.The University of Sydney (NSW)Ms Amy Bellhouse: (completed 30 November2009) Soya bean lecithin to improve tendernessand health active properties of pork.The University of Melbourne (Vic)Ms Meeka Capozzalo: (completed 30 November2009) Maintaining iron mineral status of breedingsows.The University of Western Australia (WA)Ms Teresa Harris: (completed 30 November 2009)Assessment of embryo handling conditions usedfor pig embryo transfer.The University of Sydney (NSW)Ms Chrystal Heffernan: (completed 31 December2009) Manipulation of dietary fatty acid profiles toreduce the post-weaning growth lag and improvelifetime growth performance.The University of Sydney (NSW)Ms Zoe Johnston: (completed 30 September2009) Commercial evaluation of growth andcarcass attributes following MCFA dietaryincorporation for grower and finisher pigs.Murdoch University (WA)Ms Amy Lealiifano: (completed 30 September2009) Altering the timing of an immunocastrationvaccine (Improvac) to reduce its impact onattributes of pig performance.Murdoch University (WA)Ms Jeannie Reichow: (completed 31December 2009) Sourcing, Identification andCharacterization of Coliphayes Lytic for PorcineEnterotoxigenic E coli.The University of Queensland (Qld)Ms Rhiannon Sellen: (completed 30 November2009) Supplementing sow lactation diets withRactopamine and betaine: effects on sow tissuemobilisation, milk production and piglet growthperformance.The University of Adelaide (SA)Ms Kate Taylor: (completed 30 November2009) Changes in circulating GH profiles duringpregnancy in the pig.The University of Adelaide (SA)Ms Robyn Terry: (completed 30 November 2009)The effects of three peri and post weaning dietaryregimes on piglet performance, immune statusand intestinal sucrase activity.The University of Adelaide (SA)Ms Kristen Yeung: (completed 31 December2009) The effects of fatty acids on the feedefficiency and carcass characteristics of growingpigs.The University of Sydney (NSW)Mr Simon Tilocca: (completed 31 December2008) Management strategies to aid in thecontrol of proliferative enteropathy.University of Western Sydney (NSW)75

Pork CRC LimitedMs Edwina Leslie: (completed 31 December2008) To assess the short-term physiological andbehavioural responses of piglets that have beenear notched or injected intraperitoneally with aRFID transponder as an indirect measurement ofacute pain.The University of Sydney (NSW)Ms Megan Rees: (completed 31 October 2008)To develop alternate models for improveddisease surveillance in Australia.The University of Sydney (NSW)Ms Rachael-Kate Llewellyn: (completed 7 March2008) Summer Scholarship — Assessment ofovarian properties and oocyte quality duringseasonal infertility in pigs.The University of Sydney (NSW)Ms Rebecca Athorn: (completed 30 November2007): To investigate the difference in pigs whenfed a control diet, high spec and a high spec dietwith added Paylean.The University of Queensland (QLD)Ms Amelia Bartlett: (completed 31 December2007): Effect of boar exposure on the efficacy ofexogenous hormone treatment.The University of Adelaide (SA)Ms Larissa Beale: (completed 31 December2007) Gastrointestinal health of newborn piglets— the acquisition of enterobacteriaceae diversity.The University of Queensland (QLD)Ms Tamara Butler: (completed 15 November2007) In-vitro production of pre-sexed porcineembryos.The University of Sydney (NSW)Ms Joanne Elliot: (completed 30 December 2007)Development of outdoor farrowing pens as analternative to the conventional farrowing crates.The University of Western Australia (WA)Mr Mitchell Groves: (completed 31 December2007) Rapid culture-independent identificationand quantification of food borne pathogens andantibiotic resistance gene carriage in pig faeces.The University of Queensland and NSW DPIMs Belinda Harland: (completed 31 December2007) Detection and strain typing of Brachyspirahyodysenteriae to support swine dysenteryeradication and control.Murdoch University (WA)Ms Rebecca Hunter: (completed 30 November2007) Investigate the effects of different dietaryfatty acids on the behaviour of piglets duringearly development.The University of Sydney (NSW)Mr Luke Wills: (completed 31 October 2007)Identification of key attributes affecting starchcontent and availability in sorghum grain.The University of Queensland (QLD)Pork CRC and APL Students at The Pan Pacific Pork Exposition on The Gold Coast76

Research Program Reportsintellectual propertymanagementThe Pork CRC worked closely with programmanagers and researchers within theframework of its Intellectual Property Policy(IP Policy) which sets out the mechanisms tobe followed in relation to the ownership,protection and utilisation of IP arising fromthe Pork CRC’s activities, including researchprojects. The Pork CRC continued to progressthe Commercialisation and Utilisation Planapproved by DIISR.The IP Register which catalogues and tracksIP and IP rights from creation through tocommercialisation has been maintainedthroughout the year. New entries to the registerduring the year were patents for the protectionof domestic and international innovations, andmore licenses for the use of NIRS calibrations inmeasuring digestible energy content of grains.The CRC now holds 2 Innovation Patents, aProvisional Patent, 3 International Patents,1 US Patent, 18 NIRS calibration licences,2 APP-Alive manufacturing licences, 3 PlantBreeders Rights, 2 Trademarks and 1 RegisteredDesign.Commercialisation ofIntellectual Property Policy forthe Pork CRC LimitedThe Commonwealth Funding Agreementrequires that the Pork CRC use its bestendeavours to ensure its Intellectual Property(IP) is commercialised or otherwise utilised.Any such commercialisation or utilisation mustmaximise the national benefits accruing toAustralia, including Australian industry, theAustralian environment and the Australianeconomy generally. It must be consistent withthe objectives of the CRC Program.The Pork CRC has the exclusive right tocommercialise IP at its discretion, provided it:• Complies with obligations under theCommonwealth Funding Agreement (namely,those referred to above) and any otheragreement; and• Endeavours to achieve the objectives of thePork CRC.The Adoption and CommercialisationCommittee is primarily responsible forcommercialising IP and reporting to the Board.This year the Pork CRC also established anAdoption and Commercialisation AdvisoryPanel comprising key industry consultants, APLdelegates (end users) and business people. Therole of the panel is to advise the Pork CRC onthe relevance of projects and on how projectoutcomes and IP might be best commercialisedfor the Australian pork industry.The Pork CRC developed commercialisationplans for all current projects and requiresall new project submissions to contain acommercialisation strategy. This will enablethe Pork CRC to monitor the development ofeach project’s outcomes to ensure promptdisbursement of benefits to the industry.Commercialisation StrategyThe Pork CRC will commercialise project IPthrough licensing or assigning it to third parties.Assignment transactions are expected to be77

Pork CRC Limitedrare and the majority of commercialisationis expected to occur through licensees andutilisation of the technology.Commercialisation ActivityBerkshire Triticale:Two varieties have been identified as superiorvarieties for digestible energy (DE) content andyield; Berkshire (JRCT 74) and JRCT400.Berkshire was grown commercially over thepast season by pork producers, either directlyor under contract, in NSW, Victoria, SA andWA. Measurement of yield in WA demonstratedthat Berkshire performed better than wheatand other triticale varieties grown at the sameproperties. The DE of the grain at all WA sitesmeasured 13.9 MJ/kg, similar to wheat.Waratah Seeds bulked-up Berkshire for the2010 planting season and the JRCT400 varietywill be available for commercial release in 2011.A further 150 hybrid lines based on Berkshire,were planted with the expectation of a 15%improvement in yields to be commerciallyviable. These lines will be screened for striperust resistance.Four information guides have been preparedcovering planting, grain production, grazing andstock feeding information.Maki Peas:This pea breeding program is now developingvarieties more adapted to the southern areas ofAustralia, as well as maintaining the focus ondeveloping field peas for northern Australia.Maki has now been extensively grown underdemonstration and commercial trials and thereis now 25 ‘site years’ of yield results for Maki.A further ten demonstrations trial sites havebeen established on grower’s properties toevaluate Yarrum, Maki and new lines of peas.An ‘expression of interest’ was advertised forthe marketing rights for a new field pea variety,PRL131. There will be around 60 tonne ofbreeder seed available at the end of the 2010harvest for PRL131 to be grown extensively innorthern Australia in particular. The release ofPRL131 will be held at a field day in Narrabrithis September.AusScan and NIRS:Interest in using the CRC’s grain calibrationsacross sectors of industry continues togrow. There are now 15 licence holders; fourcommercial milling groups, six laboratories andfive plant breeding companies.The first ring test has been completed with theresults and feedback provided to all licensees.Overall the results were positive and in goodagreement with the Master calibrations.An ‘expression of interest’ has been sent toeight international groups to determine anyinterest from large integrated livestock andmilling companies for the use of the calibrationsunder licence. There have been a number ofpositive responses to date. International interestwill entail the development of grain calibrationfor northern hemisphere grains and particularlyfor corn.Other Activities:A commercialisation licence has been signedwith PLF Agritech for the further developmentand sale of two products from Project 2A-103; the measurement and delivery of specificquantities of feed using the ‘feed measurementsupply system’ and an imaging product forestimating animal size developed using the‘image analysis for size estimation’.A commercialisation deed is nearing completionfor the international use of the ELISA swinedysentery diagnostic kit developed from Project2C-106.78

Research Program ReportsPigIP Pty LtdA wholly owned subsidiary of the Pork CRC,PigIP Pty Ltd, was registered on 21st July2010 . IP that meets the Board’s criteria will belicensed to PigIP which will then sub-licencethe IP to commercialisation partners and collectroyalties generated on behalf of the Pork CRCand other beneficial owners of the IP.79

Pork CRC LimitedcommunicationsPork CRC Specials, the quarterly newsletter,distributed in printed and electronic formsto an extensive database of producers,researchers, governments, NGOs and otherindustry stakeholders, continued to be highlyregarded in 09/10.Leading each issue with a column, ‘From the TopShelf’ by CEO, Dr Roger Campbell, Pork CRCSpecials communicates key activities, extendsimportant research and highlights R&D supportedby the Pork CRC.Updating the progress and developmentof Pork CRC’s programs and profiling theprojects and people behind each of theprograms was an important regular feature ofa newsletter increasingly well regarded andread by an expanding readership nationally andinternationally.Pork CRC Specials is sent to all Pork CRCparticipants and researchers and via AustralianPork Limited (APL) to about 650 Australianproducers and also distributed by the NewZealand Pork Board to all pork producers in NZ.Pork CRC Specials is also available on the PorkCRC website www.porkcrc.com.auA regular, strategic flow of media releasesreceived good uptake and publicity through09/10. Headlines included:PORK CRC BOARD ON THE ROADFAIR RANGE OF PORK CRC RESEARCHHIGHLIGHTEDPORK CRC RESEARCH PROPOSALS ONTARGETAWARD WINNING PIG EGG CELLSPORK CRC MAKES PIG’S BREAKFAST OFAWARDINDUSTRY PROFITS FROM PORK CRCRESEARCHSWEET SMELL OF SUCCESS FOR BOARSHEALTHY OUTCOME FOR PORK INDUSTRYBERKSHIRE A TRITICALE TREAT FOR PIGSPIGEON PAIR FOR PORK CRC AT PPETHERE’S SOMETHING ABOUT PORKDr Roger Campbell again contributed hiscomprehensive monthly Pork CRC Initiativescolumn to the national pork tabloid, AustralianPork Newspaper (APN), reflecting on CEOactivities and highlighting and detailing Pork CRCresearch outcomes likely to benefit producers,in particular. Typically published in the paper’sfirst five pages, the column is illustrated withgraphs and tables, plus images, to add value andattract reader attention.APN also covered extensively Pork CRC mediareleases and other Pork CRC related news, asdid the Pork Journal, the industry nationallydistributed bi-monthly magazine. The PorkJournal, along with the APN, is the major sourceof industry news for Australian pork producers.Internationally circulated e-newslettersincreasingly covered Pork CRC communicationsmaterials, thereby helping raise the internationalprofile of the Pork CRC. This continues toheighten recognition among the internationalpork R&D and academic community, translating80

Research Program Reportsto a superior quality and quantum of internationalcollaborative projects and involvement byinternationally acclaimed researchers, which willbe an important part of the 2nd Pork CRC, if ourrebid is successful.Dr Campbell was regularly interviewed onelectronic media regarding emerging issuesand events he addressed and/or attended. Heincreasingly became a preferred media ‘go to’spokesperson on all pork R&D related matters.CRC brochure_Layout 1 1/02/10 9:42 AM Page 1Media monitoring by APL and ‘in-house’monitoring by Pork CRC CommunicationsManager, Managing Brendon post weaning Cant, diarrhoea indicated through dietary a very manipulation.Post-weaning diarrhoea can be reduced and performance maintained by feeding lowersatisfactory spread of positive coverage in printprotein diets (170-180g of crude protein/kg of diet) for 7 to 14 days immediately afterweaning. The diets in these experiments did not contain any antimicrobial compounds.To maintain an optimum balance of amino acids, the low protein diets required theaddition of expensive crystalline amino acids (isoleucine, valine, lysine, methionine,threonine and tryptophan). These added considerable cost to the diet. Now the challengeand electronic media.Pork CRC is to devise activities a nutritional strategy with communicationslower protein diets that is more cost effective.Arginine supplementation may improve growth performance?potential are identified, packaged and strategicPigs have a high dietary requirement for arginine, predominantly due to its role as anitrogen carrier in tissue proteins and in gastrointestinal growth and development.associations and links made with media andOur experiment showed that the addition of 0.6% arginine to the diets of newly weaned21 day old pigs (approximately 5kg live weight) for 10 days after weaning, improvedindustry, daily to feed give intake and the daily gain Pork in the dietary CRC transition valuable period between ‘traction’days 11 and14 post weaning.and exposure to audiences which influence itsA further experiment investigated supplementing diets with arginine at 0.3%, 0.6% orprofile and future.0.9% for the first 12 days post-weaning for pigs weaned at 27 days of age (approximately8kg live weight). The dietary requirement (NRC Standards, 1998) for total dietary argininefor pigs weighing 5 to 10kg is 2.7g/day. In this second study, the pigs in the controltreatment were receiving sufficient arginine (2.9g/day), from naturally occurring arginineExamples in the diet, include resulting no raising differences between the Pork treatments. CRC’s profileWe are conducting further research investigating supplemental arginine in light weightwithin appropriate Federal and State Governmentweaner pigs, who have lower feed intakes (i.e. reduced arginine intake).Departments and at various levels within PorkFurther information and reports of all theCRC participants supporting participants.experiments conducted are available on thePork CRC website: http://www.porkcrc.com.auRecognising that the Pork CRC operates,ultimately, in the food industry, increasing focusis on communicating news of Pork CRC researchwith food and human health ‘angles’ to targetedfood and health professionals and specialistwriters and publications.In conjunction with APL the Pork CRC continuedwith its Producer Road Shows across all statesand NZ in 2009- 2010 and sponsored anextremely successful two day Refresher courseon reproduction for producer, industry advisorsand consultants in August 2009.outcomes and to increase student profiles andfindings to industry.The Pork CRC also introduced Tech Alertin 2009-2010. Tech Alert is an email basedmechanism for alerting producers of researchoutcomes that could have an immediate impacton their business. Tech Alert was introduced inresponse to producer feedback from industrysurveys on enhancing the communication of newproducer related findings.STRATEGIES TO ENHANCE THEPERFORMANCE OF ‘AT RISK’ PIGS.Outcomes from the CRC Project 2B-103-0506By Dr Rebecca Morrison 1 , Dr Cherie Collins 1 , Professor John Pluske 2 & Dr Bruce Mullan 31 Rivalea Australia Pty Ltd, Corowa NSW; 2 Animal Research Institute, Murdoch University, WA;3 Department of Agriculture and Food WA, South Perth.n Strategies to enhance the performance of ‘at risk’ pigs. p2n Identifying those piglets ‘at risk’. p3n Providing additional labour post birth. p4n Birth and weaning weight are critical. p5n Creep feeding. p6Established and supportedunder the AustralianGovernment’s CooperativeResearch Centres Programn High cost weaner diets. p7n Managing post weaning diarrhoea. p8Pork CRC Brochure sent to producersPig Link, a series of six electronic interactiveseminars remained well supported by industryand was enhanced in 2009 - 2010 by theintroduction of Fast Track to bring more recent81

Pork CRC LimitedFinancial StatementsPork CRC Limited Annual Report – 30 June 2010ContentsDirectors’ report.............................................................................................................................................................................................83Statement of comprehensive income..........................................................................................................................................87Statement of changes in equity........................................................................................................................................................88Statement of financial position..........................................................................................................................................................89Statements of cash flows......................................................................................................................................................................90Significant accounting policies..........................................................................................................................................................91Notes to the financial statements....................................................................................................................................................95Directors’ declaration............................................................................................................................................................................ 101Independent audit report to the members........................................................................................................................... 10282

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010Directors’ ReportYour Directors present their report, together with the financial report of Pork CRC Limited (“the Company”), forthe year ended 30 June 2010 and the auditor’s report thereon.DirectorsThe following persons were Directors of the Company during the financial year and are at the date of this report:Dr John Keniry – Independent ChairmanDr Robert van BarneveldMr Enzo Allara resigned on 19th November 2009Mr Rod HamannProfessor Simon MaddocksMr Sam McIvorMr Andrew Maughan - Independent directorMr. Brian Halstead - Independent directorAssoc. Prof. Wayne PitchfordMr Nigel Smith – Independent directorProfessor John PluskeMr Paul Pattison appointed on 19th November 2009The Directors’ report should be read in conjunction with the Directors’ information set out in theAnnual Report.Principal ActivitiesThe Company’s principal activities during the year consisted of funding and overseeing researchinto enhancing the competitiveness of the Australian Pork Industry by providing and adopting new and noveltechnologies that reduces feed costs, improves herd feed conversion efficiency and increases the range andfunctionality of pork products.Review of operationsThe profit for the year ended 30 June 2010 amounted to $96,281 (2009: $135,466) For further information onthe results for the year, refer to pages of the Annual Report.On 28 June 2007, the Company received notification from the Australian Taxation Office (ATO) that theCompany had been successful in its application for tax exempt status. In providing this exemption, theATO deemed the Company as a not-for profit organisation and that the Company’s constitution prohibitsthe distribution of income and assets to members. Accordingly, the Company results are no longer subjectto income tax. A review of the status of the exemption was carried out on 12th July 2010 confirming thecontinuing tax exempt status.83

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010DividendsSince the end of the previous financial year, no dividend has been paid or declared and the Directorsdo not recommend payment of a dividend in respect to the current year. Under the Company’sconstitution, the Company is unable to distribute income and assets in the form of a dividend.Likely developments and expected results of operationsFurther information on likely developments in the operations of the Company and the expectedresults of operations have not been included in this report as the Directors believe it would be likelyto result in unreasonable prejudice to the Company.Environmental regulationThe Company’s principal activities are not regulated by any significant environmental regulationunder a law of the Commonwealth or of a State or Territory. The Board believes that the Companyhas adequate systems in place for the management of its environmental requirements and is notaware of any breach of those requirements as they apply to the Company.Significant changes in the state of affairsNo matters or circumstances have arisen during the financial year which significantly affect theCompany’s state of affairs in future years, current operations of the Company, or the results ofthose operations.Matters subsequent to the end of the financial yearA wholly owned subsidiary of the company, PigIP Pty Ltd ACN 145 327 144, was registered on 21stJuly 2010.The Company has made a submission to the Commonwealth for an 8 year extension of the CRC andthis has passed through the first stage of the vetting process. A decision on the outcome of the bidis expected in December 2010.Directors’ benefitsNo Director of the Company has received, or has become entitled to receive, a benefit, other thana remuneration benefit included below, because of a contract that the Director, a firm for which theDirector is a member, or an entity in which the Director has a substantial financial interest, has madeduring the year ended 30 June 2010 or at any other time with the Company or a body corporate thatwas related to the Company, when the contract was made or when the Director received, or becameentitled to receive, the benefit.2010 2009$ $Director’s fees – cash 98,150 104,92998,150 104,929The directors fees shown are the cash benefits paid to the independent directors in their capacity asdirectors. The directors nominated by the participants do not receive any remuneration or benefit84

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010directly from the Pork CRC in their capacity as directors, as the respective participants can claim anin kind contribution for the time spent as a director. These contributions are included in the relatedparty in kind contributions disclosed in Note 17.One director, Professor John Pluske, is also a sub program manager and does not receive directlyany remuneration or benefit for these services and the payments made to the participant for theseservices are included in the related party cash payments shown in note 17.The company of one Director Dr Robert van Barneveld, was paid a benefit for the services of theDirector in managing the submission of the rebid as detailed in note 17 ‘transactions with thecompany and director related entities’.Since the end of the previous financial year, the Company has paid insurance premiums of $4,540in respect of Directors and Officers liability and legal expenses insurance contracts for current andformer Directors and Officers, including senior executives of the Company.Lead auditor’s independence declarationThe lead auditor’s independence declaration is set out on page 86 and forms part of the Directors’Report for the financial year 2010.This report is made with a resolution of the Directors:Dr John KeniryChairmanMr Brian HalsteadDirectorAdelaide22nd September 201085

86Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010Statement of Comprehensive IncomeFor the year ended 30 June 2010Note 2010 2009$ $Revenue 2 14,143,254 15,049,416ExpensesResearch programme costs (11,635,912) (12,694,732)Employee expenses 3 (734,785) (797,019)Other 4 (1,771,036) (1,555,745)Profit from operating activities 1,521 1,920Financial income 96,281 135,446Financial expenses (1,521)(1,920)Net financing income 6 94,760 133,526Profit for the period 96,281 135,446Other Comprehensive Income - -Total Comprehensive Income for the period 96,281 135,446The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes set out on pages 9 to 21.The above Statement of Comprehensive Income should be read in conjunction with theaccompanying notes set out on pages 91 to 100.87

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010Statement of Changes in EquityFor the year ended 30 June 2010RetainedprofitsTotal equity$ $Balance 1 July 2008 512,569 512,569Profit for the period 135,446 135,446Balance at 30 June 2009 648,015 648,015Balance at 1 July 2009 648,015 648,015Profit for the period 96,281 96,281Balance at 30 June 2010 744,296 744,296The above Statement of Changes in Equity should be read in conjunction with the accompanying notesset out on pages 9 to 21.The above Statement of Comprehensive Income should be read in conjunction with theaccompanying notes set out on pages 91 to 100.88

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010Statement of Financial PositionAs at 30 June 2010Note 2010 2009$ $Current AssetsCash and cash equivalents 7 4,429,082 2,999,758Trade and other receivables 8 1,748,534 3,189,819Total current assets 6,177,616 6,189,577Non Current AssetsPlant and equipment 9 45,267 49,660Total non-current assets 45,267 49,660Total assets 6,222,883 6,239,237Current LiabilitiesTrade and other payables 10 2,031,792 2,028,126Employee benefits 11Unearned income 12253,317 253,5803,211,479 3,309,516Total current liabilities 5,478,588 5,591,222Total liabilities 5,478,588 5,591,222Net assets 744,296 648,015EquityRetained profit 744,296 648,015Total equity 744,296 648,015The above Statement of Financial Position should be read in conjunction with the accompanying notes set out on pages 9 to 21.The above Statement of Comprehensive Income should be read in conjunction with theaccompanying notes set out on pages 91 to 100.89

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010Statement of Cash FlowsFor the year ended 30 June 2010Cash flows from operating activitiesNote 2010 2009$ $Cash receipts from Government and Participants 8,678,875 5,009,712Cash paid to suppliers, researchers and employees (7,339,983) (5,944,711)Cash generated from operations 1,338,891 (934,999)Interest received 96,281 135,446Net cash (used in)/provided by operating activities 16 1,435,172 (799,553)Cash flows from investing activitiesAcquisition of plant and equipment 9 (3,919) (2,123)Net cash used in investing activities (3,919) (2,123)Cash flows from financing activitiesInterest paid (1,521) (1,920)Net cash used in financing activities (1,521) (1,920)Net (decrease)/increase in cash and cash equivalents 1,429,324 (804,104)Cash and cash equivalents at 1 July 2,999,758 3,803,862Cash and cash equivalents at 30 June 7 4,429,082 2,999,758The above Statement of Cash Flows should be read in conjunction with the accompanying notes set out on pages 9 to 21.The above Statement of Cash Flows should be read in conjunction with theaccompanying notes set out on pages 9 to 21.90

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010Pork CRC Limited (“the Company”) is a company domiciled in Australia. The financial report was authorisedfor issue by the Directors on 22nd September 2010Note 1(a)Significant Accounting PoliciesStatement of complianceThe financial report is a general purpose financial report which has been prepared in accordance withAustralian Accounting Standards, (including Australian Interpretations) adopted by the Australian AccountingStandards Board (AASB) and the Corporations Act 2001. The financial report complies with InternationalFinancial Reporting Standards (IFRS’s) and Interpretations adopted by the International AccountingStandards Board (IASB).(b)Basis of preparationThe financial report is presented in Australian dollars, being the Company’s functional currency. The financialreport is prepared on the historical cost basis.The preparation of a financial report in conformity with Australian Accounting Standards as discussed inthe Notes below, requires management to make judgements, estimates and assumptions that affect theapplication of policies and reported amounts of assets and liabilities, income and expenses. The estimatesand associated assumptions are based on historical experience and various other factors that are believed tobe reasonable under the circumstances, the results for which form the basis of making the judgements aboutcarrying values of assets and liabilities not readily apparent from other sources. Actual results may differ fromthese estimates.The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only that period,or in the period of the revision and future periods if the revision affects both current and future periods.Judgements made by management in the application of Australian Accounting Standards as discussed in theNotes below. The accounting policies set out below have been consistently applied to all periods.(c)Plant and equipment(i) Owned assetsItems of plant and equipment are stated at cost less accumulated depreciation (see below) and impairmentlosses (see accounting policy f). Where parts of an item of plant and equipment have different useful lives,they are accounted for as separate items of plant and equipment.(ii) Subsequent costsThe Company recognises in the carrying amount of an item of plant and equipment the cost of replacingpart of such an item when that cost is incurred if it is probable that the future economic benefits embodiedwith the item will flow to the Company and the cost of the item can be measured reliably. All other costs arerecognised in the Statement of Comprehensive Income as an expense as incurred.iii) DepreciationDepreciation is charged to the Statement of Comprehensive Income on a straight-line basis over theestimated useful lives of each part of an item of plant and equipment. The estimated useful lives in the currentand comparative periods are as follows:Office and research equipment7 yearsThe residual value, useful life and depreciation method applied to an asset, is reassessed annually.91

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010(d)ReceivablesReceivables are stated initially at their fair value and subsequently at their amortised cost less impairmentlosses (see accounting policy f).(e)Cash and cash equivalentsCash and cash equivalents comprises cash balances and call deposits. Bank overdrafts that are repayable ondemand and form an integral part of the Company’s cash management are included as a component of cashand cash equivalents for the purpose of the Statement of Cash Flows.(f)ImpairmentThe carrying amounts of the Company’s assets are reviewed at each reporting date to determine whetherthere is any indication of impairment. If any such indication exists, the asset’s recoverable amount isestimated (see accounting policy f (i)).An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unitexceeds its recoverable amount. Impairment losses are recognised in the Statement of ComprehensiveIncome.Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carryingamount of any goodwill allocated to cash-generating units (group of units) and then, to reduce the carryingamount of the other assets in the unit (group of units) on a pro rata basis.(i) Calculation of recoverable amountThe recoverable amount of the Company’s receivables carried at amortised cost is calculated as the presentvalue of estimated future cash flows, discounted at the original effective interest rate (i.e., the effective interestrate computed at initial recognition of these financial assets). Receivables with a short duration are notdiscounted.Impairment of receivables is not recognised until objective evidence is available that a loss event hasoccurred. Significant receivables are individually assessed for impairment.The recoverable amount of other assets is the greater of their net selling price and value in use. In assessingvalue in use, the estimated future cash flows are discounted to their present value using a pre-tax discountrate that reflects current market assessments of the time value of money and the risks specific to the asset.For an asset that does not generate largely independent cash inflows, the recoverable amount is determinedfor the cash-generating unit to which the asset belongs.(ii) Reversals of impairmentAn impairment loss in respect of receivable carried at amortised cost is reversed if the subsequent increasein recoverable amount can be related objectively to an event occurring after the impairment loss wasrecognised.In respect of other assets, an impairment loss is reversed if there is an indication that the impairment lossmay no longer exist and there has been a change in the estimate used to determine the recoverable amount.An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed thecarrying amount that would have been determined, net of depreciation or amortisation, if no impairment losshad been recognised.(g)Employee benefits92(i) Defined contribution plansA defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributionsinto a separate entity and will have no legal or constructive obligation to pay further amounts. Obligationsfor contributions to defined contribution plans are recognised as an employee expense in the profit and losswhen they are due.

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010Obligations for contributions to defined contribution pension plans are recognised as an expense in theStatement of Comprehensive Income as incurred.(ii) Long-term service benefitsAs the Commonwealth funding agreement ceases in seven years the Company does not believe it is probablethat it will be liable to pay long service leave.(iii) Wages, salaries and annual leaveLiabilities for wages, salaries and annual leave that are expected to be settled within 12 months of reportingdate, represent present obligations resulting from employee’s services provided to reporting date, aremeasured as the undiscounted amounts based on remuneration wage and salary rates that the Companyexpects to pay as at reporting date including related on-costs.Non-accumulating non-monetary benefits are expensed based on the net marginal cost to the Company asthe benefits are taken by the employees.(h)ProvisionsA provision is recognised in the Statement of Financial Position when the Company has a present legal orconstructive obligation as a result of a past event, and it is probable that an outflow of economic benefits willbe required to settle the obligation. Provisions are determined by discounting expected future cash flows at apre-tax rate that reflects current market assessments of the time value of money, where appropriate, the risksspecific to the liability.(i) Trade and other payablesTrade and other payables are stated at their amortised cost. Trade payables are non-interest bearing and arenormally settled on 60 day terms.(j)Revenue(i) Government grants and cash contributions from ParticipantsGovernment grants and cash contributions from Participants are recognised in the Statement of FinancialPosition initially as unearned income when there is reasonable assurance that it will be received and theCompany will comply with the conditions attaching to it. Grants and contributions that compensate theCompany for expenses incurred are recognised as revenue in the Statement of Comprehensive Income ona systematic basis in the same periods in which the expenses are incurred. Grants that compensate theCompany for the cost of an asset are recognised in the Statement of Comprehensive Income as other incomeon a systematic basis over the useful life of the asset.(ii) In-kind contributions from ParticipantsContributions by Participants are recognised in the Statement of Comprehensive Income when the significantrisks and rewards of ownership have been transferred in the case of contributed assets or in proportion tothe stage of completion of the transaction at the reporting date for cash and services provided. The stageof completion is assessed by reference to surveys of work performed. No revenue is recognised if there aresignificant uncertainties regarding recovery of the consideration due, the costs incurred or to be incurredcannot be measured reliably, there is a risk of return of goods or there is continuing management involvementwith the goods.(k)Net financing incomeInterest income is recognised in the Statement of Comprehensive Income as it accrues, using the effectiveinterest method. The interest expense component of finance lease payments is recognised in the Statementof Comprehensive Income using the effective interest rate method.93

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010(l)Income taxOn 28 June 2007, the Company received notification from the Australian Taxation Office (ATO) that theCompany had been successful in its application for tax exempt status. In providing this exemption, theATO deemed the Company as a not-for profit organisation and that the Company’s constitution prohibitsthe distribution of income and assets to members. Accordingly, the Company results are no longer subjectto income tax. A review of the status of the exemption was carried out on 12th July 2010 confirming thecontinuing tax exempt status.The Pork CRC commissioned an assessment by accountants Inglis Rowe of the status of Pork CRC as anot for profit scientific institution and they confirmed that in their opinion the Pork CRC remains exempt forincome tax.(m)Goods and services taxRevenues, expenses and assets are recognised net of the amount of goods and services tax (GST), exceptwhere the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In thesecircumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item ofthe expense.Receivables and payables are stated with the amount of GST included. The net amount of GST recoverablefrom, or payable to, the ATO is included as a current asset or liability in the Statement of Financial Position.Cash flows are included in the Statement of Cash Flows on a gross basis. The GST component of cashflows arising from investing and financing activities which are recoverable from, or payable to, the ATO areclassified as operating cash flow.(n)Segment reportingA segment is a distinguishable component of the Company that is engaged either in providing products orservices (business segment), or in providing products or services within a particular economic environment(geographical segment), which is subject to risks and rewards that are different from those of other segments.The Company does not have multiple business or geographical segments.(o)Research and developmentExpenditure on research activities, undertaken with the prospect of gaining new scientific or technicalknowledge and understanding, is recognised in the Statement of Comprehensive Income as an expense asincurred.Expenditure on development activities, whereby research findings are applied to a plan or design for theproduction of new or substantially improved products and processes, is capitalised if the product hassufficient resources to complete development. The expenditure capitalised includes the cost of materials,direct labour and an appropriate proportion of overheads. Other development expenditure is recognised inthe statement of comprehensive income as an expense as incurred. Capitalised development expenditure isstated at cost less accumulated amortisation and impairment losses (see accounting policy f).(p)Capital managementThe Company is limited by guarantee and accordingly there is no issued capital. There were no changesto the Company’s approach to capital management during the year. The Company is not subject to anyexternally imposed capital requirements.94

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010Note 2Note 2Note 3Note 3Note 4Note 4Note 5Note 5Note 6Note 6Note 7Note 7Note 8Note 8Note 2010 2009$ $RevenueNote 2010 2009Government grant 4,512,913 $ 4,564,880 $Participants Revenue in-kind contributions 6,861,521 7,550,164Government Participants cash grant contributions * 4,512,913 2,292,967 4,564,880 1,956,377Participants Research project in-kind co-funding contributions 6,861,521 353,694 7,550,164 921,356Participants Commercialisation cash contributions income * 2,292,967 122,160 1,956,377 56,639Research project co-funding 14,143,254 353,694 15,049,416 921,356Commercialisation income 122,160 56,639* Includes $583,606 of funding for base research facilties in 2010. (Nil in 2009).14,143,254 15,049,416* Includes $583,606 of funding for base research facilties in 2010. (Nil in 2009).Employee expensesWages and salaries 684,507 678,826Contributions Employee expenses to defined contribution plans 40,628 50,836Wages Other associated and salaries personnel costs 684,507 14,397 678,826 17,265Contributions Increase (decrease) to defined liability contribution for employee plans (4,746) 40,628 50,836 50,092benefits Other associated personnel costs 14,397 17,265Increase (decrease) in liability for employee734,785 (4,746) 797,019 50,092benefitsOther expenses734,785 797,019Piggery facilities- PIRSA 222,000 222,000Accounting Other expenses fees 5,122 27,018Piggery Directors facilities- fees PIRSA 17 222,000 98,150 222,000 104,928Accounting Travel fees 133,689 5,122 148,711 27,018Directors Commercialisation fees costs 17 281,128 98,150 104,928 230,410Travel Consultants fees 133,689 157,682 248,080 148,711Commercialisation Office cost costs 281,128 33,000 230,410 33,000Consultants University of fees Adelaide in-kind administration157,682 264,250 248,080 360,275Office costs cost 33,000 33,000University Depreciation of Adelaide in-kind administration 9 264,250 8,720 360,275 11,441Conferences costs - APSA and PPPE 177,938 -Depreciation Media and Communications 9 104,411 8,720 97,569 11,441Conferences Adoption expenses - APSA and PPPE 177,938 84,422 20,282-Media Other and Communications 200,524 104,411 52,131 97,569Adoption expenses 1,771,036 84,422 1,555,845 20,282Other 200,524 52,131Auditors’ remuneration1,771,036 1,555,845Audit servicesAuditing Auditors’ the remunerationfinancial report 12,500 11,000Audit Non-audit services services - -Auditing the financial report 12,500 11,000Non-audit services - -Net financing costs12,500 11,000Interest income 96,281 135,446Interest Net financing expense costs(1,521) (1,920)Interest Net Financial income income 96,281 94,760 135,446 133,526Interest expense (1,521) (1,920)Net Cash Financial and cash income equivalents94,760 133,526Bank balances 4,429,082 2,999,758Balance Cash and as per cash statement equivalents of cash flows 4,429,082 2,999,758Bank balances 4,429,082 2,999,758Balance as per statement of cash flows 2010 4,429,082 20092,999,758$ $Trade and other receivables2010 2009Other receivables $ 569,656 $ 1,749,071Prepayments Trade and other receivables1,178,878 1,440,748Other receivables 1,748,534 569,656 3,189,819 1,749,071Prepayments 1,178,878 1,440,7481,748,534 3,189,81995

12,500 11,000Note 6Net financing costsInterest income 96,281 135,446Interest expense (1,521) (1,920)Pork CRC LimitedAnnual Report 30 June 2010Net Financial income 94,760 133,526Financial statementsNotefor7the year ended 30 JuneCash2010and cash equivalentsBank balances 4,429,082 2,999,758Balance as per statement of cash flows 4,429,082 2,999,758Note 9Note 8Plant and equipmentCost2010$2009$Trade Balance and other at 1 July receivables89,160 87,037Other receivables 569,656 1,749,071Acquisitions 3,919 2,123Prepayments 1,178,878 1,440,748Balance at 30 June 93,079 89,1601,748,534 3,189,819Depreciation lossesBalance at 1 July (39,500) (28,059)Depreciation charge for the year (8,720) (11,441)Balance at 30 June (47,812) (39,500)Carrying amountsAt 1 July 49,660 58,978At 30 June 45,267 49,660Note 10Note 11Note 12Trade and otherpayablesTrade payables and accruals 1,977,910 1,918,953GST payable 53,882 109,1732,031,792 2,028,126Employee benefitsSalary and wages accrued 101,022 114,539Liability for employee leave 134,295 139,041Unearned incomeCurrent235,317 183,785Government grants 1,813,013 1,910,708Participants contributions 1,189,116 1,230,985Co-funding 209,350 167,8233,211,479 3,309,516Unearned income consists of government grant income and contributions received and not spent. This method of recognitionaligns the grant income to the period the relevant expenditure is incurred.Note 13Segment reportingBusiness SegmentsThe Company’s principal business activities consist of funding and over seeing research into enhancing the competiveness ofthe Australian Pork industry.Geographical segmentsThe Company operates in Australia.Note 14Financial instrumentsThe Company’s activities expose it to a low level of financial risks, liquidity risk and cash flow interest rate risk. TheCompany’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimisepotential adverse effects on the financial performance of the Company. The Company does not enter into or trade financialinstruments, including derivative financial instruments.96The Company’s financial assets consist mainly of cash, trade and other receivables. The Company’s financial liabilitiescomprise trade and other payables. The main purpose of these financial instruments is to invest surplus funds in order tomaximise returns while not exposing the Company to a high level of risk. The Board has established policy’s and proceduresdesigned to establish controls and monitor these risks.

$ $Gross GrossNot Past Due 1,586,145 1,197,839Past Due 0-30 days 35,593 46,183Past Due 31-60 days 56,750 200,559More than 61daysPork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 201070,046 304,4901,748,534 1,749,071There are no bad debts and no allowance for impairment in respect of trade and other receivables.The Company’s financial assets consist mainly of cash, trade and other receivables. The Company’sfinancial Note 14 liabilities comprise trade and other Financial payables. instruments The main purpose (continued) of these financialinstruments is to invest surplus funds in order to maximise returns while not exposing the CompanytoThe (b)aLiquidityhigh levelCompany’s riskof risk. The Board has established policy’s and procedures designed to establishfinancial assets consist mainly of cash, trade and other receivables. The Company’scontrols and monitor these risks.financial Liquidity Risk liabilities is thecomprise risk that the trade Company and other does payables. not have sufficient The mainresources purposetoof meet these its obligations financial when they become dueinstruments and payable, isor towill invest have surplus to dofunds so atin excessive order to maximise cost. Thereturns Company’s whilepolicy not exposing is designed the Company to ensure that there are sufficientto funds (a) aCredit high to meet level risk itsof exposures obligations risk. The when Boarddue, has under established both normal policy’sand andstressed procedures conditions, designed without to establish incurring unacceptable losses orcontrols Credit risking Risk damage and is monitor the potential the these Company’s risks.ofreputation.financial loss resulting from the failure of a debtor or participants to meet their obligationsto the Company on time and in full as contracted.Prudent (a) Credit liquidity risk exposures risk management implies sufficient cash resources and the availability of funding through an adequateCredit The amount Company Risk of committed is the derives potential credit the majority risk facilities. of financial of its Due revenue, toloss theresulting dynamic receivedfrom nature in cash theof(excluding failure business, ain-kind debtor management or contributions), participants aims at to from maintaining meet government their obligations flexibility grantswhich in to funding the Company are paid by keeping on advance time sufficient and in in accordance full committed as contracted. with credit thelines.contract. Project expenditure reports are submitted by project participantson a quarterly basis.The following Company are derives the contractual the majoritymaturities of its revenue, of financial received liabilities, cash including (excludingestimated in-kind contributions), interest payments fromand government excluding grants theThe Ageing of the Trade and Other Receivables at the reporting date waswhich impact are of netting paid inagreements:advance accordance with the contract. Project expenditure2010reports are submitted2009by project participantson a quarterly basis.$ $Non derivative financial liabilities Carrying amount 12 months or less 1-2 years 2-5 years More thanThe Ageing of the Trade and Other Receivables at the reporting date was Gross Gross5 yearsNot 2010Past Due 1,586,145 2010 1,197,839 2009$ $Trade Past Due and 0-30 other days payables 1,977,910 1,977,910 35,593 46,183- - -Past Gross Gross2009Due 31-60 days 56,750 200,559Not Past Due 1,586,145 1,197,839Trade More than and other 61days70,046 304,490payables 1,918,953 1,918,953 - - -Past Due 0-30 days 1,748,534 35,593 1,749,071 46,183Past Due 31-60 days 56,750 200,559More There than 61days70,046 304,490(c) Cash are no flow bad and debts interest and no rate allowance risk exposures for impairment in respect of trade and other receivables.1,748,534 1,749,071Interest rate risk is the risk of loss arising from increased interest rates that affect the borrowing costs of the Company. As theCompany’s only significant interest-bearing assets are cash deposits, the Company’s income and operating cash flow areThere substantially are no bad independent debts and of no changes allowance in market for impairment interest rates.Note 14Financial instruments respect of trade (continued) and other receivables.The Company does not hold any interest bearing financial liabilities.(b) Liquidity riskLiquidity Note 14 Risk is the risk that the Company does Financial not have instruments sufficient resources (continued) to meet its obligations when they become dueand payable, or will have to do so at excessive cost. 2010 The Company’s policy 2009 is designed to ensure that there are sufficientfunds (b) Liquidity to meet its riskobligations when due, under both normal $ and stressed conditions, $ without incurring unacceptable losses orLiquidityFixed risking rate damageRiskinstruments to the Company’s reputation.is the risk that the Company does not have sufficient resources to meet its obligations when they become dueFinancial and payable, assets or will have to do so at excessive cost. The Company’s - policy is designed - to ensure that there are sufficientFinancial Prudent funds to liquidity meet liabilities its obligations risk management when due, implies under sufficient both normal cashand resources stressed - and conditions, the availability without - of incurring fundingunacceptable through an adequate losses oramount risking damage of committed to the Company’s credit facilities. reputation. Due to the dynamic nature of the business, management aims at maintaining flexibilityin funding by keeping sufficient committed credit lines.Variable rate instrumentsPrudent liquidity risk management implies sufficient cash resources and the availability of funding through an adequateFinancialTheassets 4,429,082 2,999,758amount following of committed are the contractual credit facilities. maturities Due toof the financial dynamic liabilities, nature of including the business, estimated management interest payments aims at maintaining and excluding flexibility theFinancial impact funding of liabilities netting by keeping agreements: sufficient committed credit lines. - -The Non following derivative are financial the contractual liabilities maturities of Carrying financial amount liabilities, including 12 months estimated or less 1-2 interest years payments 2-5 years and excluding More than theimpact of netting agreements:5 years2010Non Trade derivative and other payables financial liabilities2009Carrying amount 1,977,910 12 months 1,977,910 or less 1-2 years - 2-5 years - More than -5 yearsTrade 2010 and other payablesTrade and other payables1,918,9531,977,9101,918,9531,977,910------2009Trade (c) Cash and flow other and payables interest rate risk exposures 1,918,953 1,918,953 - - -Interest rate risk is the risk of loss arising from increased interest rates that affect the borrowing costs of the Company. As theCompany’s only significant interest-bearing assets are cash deposits, the Company’s income and operating cash flow aresubstantially(c) Cash flowindependentand interestof changesrate riskinexposuresmarket interest rates.Interest The Company rate risk does is the not risk hold of any loss interest arising bearing from increased financial interest liabilities. rates that affect the borrowing costs of the Company. As theCompany’s only significant interest-bearing assets are cash deposits, the Company’s income and operating cash flow aresubstantially independent of changes in market interest rates.2010 2009The Company does not hold any interest bearing financial liabilities.$ $Fixed rate instrumentsFinancial assets 2010 - 2009 -Financial liabilities $ - $ -Fixed rate instrumentsFinancial Variable rate assets instruments- -Financial liabilities assets 4,429,082- 2,999,758-97

$ $Non derivative financial liabilities Carrying amount 12 months Gross or less 1-2 Gross years 2-5 years More thanNot Past Due 1,586,145 1,197,8395 yearsPast 2010Due 0-30 days 35,593 46,183Trade Past Due and 31-60 other days payables 1,977,910 56,750 1,977,910 200,559 - - -200970,046 304,490Trade and other payables 1,918,953 1,748,534 1,918,9531,749,071- - -Pork More than CRC 61days LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010There are no bad debts and no allowance for impairment in respect of trade and other receivables.(c) Cash flow and interest rate risk exposuresInterest rate risk is the risk of loss arising from increased interest rates that affect the borrowing costs of the Company. As theCompany’s Note 14 only significant interest-bearing Financial assets are cash instruments deposits, the (continued) Company’s income and operating cash flow aresubstantially independent of changes in market interest rates.(b) The Liquidity Company risk does not hold any interest bearing financial liabilities.Liquidity Risk is the risk that the Company does not have sufficient resources to meet its obligations when they become dueand payable, or will have to do so at excessive cost. The Company’s policy is designed to ensure that there are sufficientfunds to meet its obligations when due, under both normal 2010and stressed conditions, 2009 without incurring unacceptable losses orrisking damage to the Company’s reputation. $ $Fixed rate instrumentsPrudent liquidity risk management implies sufficient cash resources and the availability of funding through an adequateFinancial assets - -amount of committed credit facilities. Due to the dynamic nature of the business, management aims at maintaining flexibilityFinancial funding liabilities by keeping sufficient committed credit lines.- -Variable The following rate are instruments the contractual maturities of financial liabilities, including estimated interest payments and excluding theimpact of netting agreements:Financial assets 4,429,082 2,999,758Financial liabilities - -Non derivative financial liabilities Carrying amount 12 months or less 1-2 years 2-5 years More thanNote 14Financial instruments (continued)5 years2010(d) Sensitivity analysisTrade and other payables 1,977,910 1,977,910 - - -2009The following tables summarise the sensitivity of Pork CRC’s profit to interest rate risk. The analysis is based onTrade and other payables 1,918,953 1,918,953 - - -the assumption of a 1% increase or decrease in market value at year end, with all other variables being heldconstant.(c)2010Cash flow and interest rate risk exposuresCarrying amount -1% 1%Interest rate risk is the risk of loss arising from increased interest rates that affect the borrowing costs of the Company. As theCompany’s only significant interest-bearing assets are cash4,429,082deposits, the Company’s(44,291)income44,291and operating cash flow areFinancial substantially assets independent of changes in market interest rates.Total increase/(decrease) in profit (44,291) 44,291The Company does not hold any interest bearing financial liabilities.2009 Carrying amount -1% 1%2010 2009$ $Financial Fixed rate assets instruments2,999,758 (29,998) 29,998Financial assets - -Total Financial increase/(decrease) liabilities in profit- (29,998)-29,998(e) Variable Net fair rate value instruments of financial assets and liabilitiesThe Financial net fair assets value of cash and cash equivalents and monetary 4,429,082 financial assets 2,999,758 and financial liabilities approximatestheir Financial carrying liabilities amounts.- -No financial assets and financial liabilities are readily traded on organised markets in standardised form.Note 15Operating leasesLeases as lesseeNon-cancelable operating lease rentalsare payable as follows:Within one yearOne year or later but no more than fiveyears Later than five years2010 2009$ $37,082 19,24650,305 30,710- -87,387 49,956The Company leases office equipment and vehicles under operating leases of 3 to 5 years in duration. Lease payments arefixed throughout the term of the lease.Note 16Reconciliation of cash flows from operating activities98Cash flows from operating activitiesProfit for the periodAdjustments for:Interest expense classified as financingactivityDepreciationOperating profit before changes in2010 2009$ $96,281 135,4461,521 1,9208,720 11,949106,522 149,315

Note 15Pork CRC LimitedAnnual Report 30 June 2009Operating leasesLeases as lesseeNon-cancelable operating lease rentalsare payable as follows:Within one yearOne year or later but no more than fiveyears Later than five years$ $37,082 19,24650,305 30,710- -87,387 49,956Financial statements for the year ended 30 June 2009The Company leases office equipment and vehicles under operating leases of 3 to 5 years in duration. Lease payments arefixed throughout the term of the lease.Note 16Reconciliation of cash flows from operating activitiesCash flows from operating activitiesProfit for the periodAdjustments for:Interest expense classified as financingactivityDepreciationOperating profit before changes inworking capital and provisions(Increase)/decrease in receivables(Decrease)/increase in trade and otheroperating liabilities(Decrease)/increase in employee benefitsCash generated from operations2010 2009$ $96,281 135,4461,521 1,9208,720 11,949106,522 149,3151,441,285 (2,715,916)(94,371) 1,697,253(18,263) 69,7951,435,172 (799,553)Included in the operating profit and loss is non-cash in-kind contribution income and expenses totalling $6,861,521(2009: $7,550,164).Note 17Key management personnel disclosuresThe following were key management of the Company at any time during thereporting period, unless otherwise indicated were directors for the entire period:DirectorsDr John Keniry - Independent ChairmanDr Robert van BarneveldMr Enzo Allara resigned on 19/11/09Mr Rod HamannProfessor Simon MaddocksMr Sam McIvorMr Paul Pattison appointed on 19/11/09Mr Andrew Maughan - Independent directorMr Brian Halstead - Independent directorAssociate Professor Wayne PitchfordMr Nigel Smith - Independent directorProfessor John PluskeExecutivesDr Roger Campbell, Chief Executive OfficerMr Patrick Derham, Company Secretary and Business and Finance ManagerTransactions with key management personnelThe key management personnel compensations included in “employee relatedexpenses” are as follows:2010 2009$ $Director’s fees - cash 98,150 104,928Short-term employeebenefitsPost employmentbenefits496,355 462,32135,100 117,044629,605 684,293Other key management personnel transactions with the CompanyDuring the year the Company transacted with entities for which key management persons hold positions that result in themhaving control or significant influence over the financial or operating policies of these entities. The terms and conditions ofthe transactions with key management personnel and their related parties were no more favourable than those available, orwhich might reasonably be expected to be available, on similar transactions to non-key management personnel related entities99

Mr benefitsMr Andrew Paul Pattison Maughan appointed - Independent on 19/11/09 directorMr Mr Brian Andrew Halstead Maughan - Independent - Independent 629,605 director director 684,293Associate Mr Brian Professor Halstead Wayne - Independent PitchforddirectorMr Other Associate Nigel key Smith management Professor - Independent Wayne personnel director Pitchfordtransactions with the CompanyProfessor Mr Nigel John Smith Pluske - Independent directorProfessor John PluskeDuring the year the Company transacted with entities for which key management persons hold positions that result in themhaving control or significant influence over the financial or operating policies of these entities. The terms and conditions ofthe transactions with key management personnelDr RogerandCampbell,their relatedChiefpartiesExecutivewere noOfficermore favourable than those available, orwhich might reasonably be expected to be available, MrDrPatrickRoger on Derham, similar Campbell, transactions CompanyChief ExecutiveSecretary to non-key andOfficer management Business and personnel Finance related Manager entitieson an arms length basis.Mr Patrick Derham, Company Secretary and Business and Finance ManagerTransactions with key management personnelPork CRC LimitedExecutivesAnnual Report 30 June 2010ExecutivesFinancial statements for the year ended 30 June 2010Note 17 Key management personnel Transactions with key management personnelThe disclosures key management (continued) personnel compensations included in “employee relatedexpenses” are as follows:Transactions Net transactions with between key the management Company by director personnel The related key management participants personnel were as follows: compensations included in “employee relatedexpenses” are as follows: 2010 2009The key management personnel compensations included in “employee 2010 related $ expenses” $2010 2010 are2009 2010 as follows: 2009Director’s fees - cash$98,150 104,928$ $ $ $ $In-kind Cash Total TotalShort-term Director’s employee fees - cash 496,355 98,150 462,321 2010 2009104,928contributions receipts /benefits$ $(payments)Director’s fees - cash Post Short-term employment employee35,100 496,355 117,044 462,321 98,150 104,928South Australian Research andbenefits402,000 (212,971) 189,029 (183,472)Short-term benefitsDevelopment employee Institute benefits 496,355 462,321Post employment629,605 35,100 684,293 117,044Post Barneveld employment Nutrition benefits- (20,000)benefits35,100 (20,000) 117,044-CHM Alliance Pty Ltd 361,108 11,584 372,692 502,569Other key management personnel 629,605 transactions 684,293 with 629,605 the Company 684,293University of Adelaide 831,590 (265,811) 565,779 264,782Murdoch University 435,414 (516,599) (81,185) 64,414Other During Australian the key Pork year management Ltd the Company transacted personnel with Other entities transactions key for which management with key management the personnel Company233,500 persons transactions 1,335,000 hold positions 1,568,500 with thatthe result Company 1,110,625 in themhaving New Zealand controlPork significant Industry Board influence over the financial or operating policies 53,535 of these entities. The - terms 53,535 and conditions 48,342 ofthe transactions with key management personnel and their related parties were no more favourable than those available, orDuring Australian thePork yearFarms the Company Group transacted with entities for which key management 209,583 persons (122,980) hold positions 86,603that result 750,297which might reasonably be expected to be available, on similar transactions to non-key management personnel related entitiesin themon having an arms control length orbasis.significant influence over Total the financial or operating policies 2,526,730 of these 208,223 entities. The 2,734,953 terms and2,557,557conditions oftheNotetransactions18with key management personnel and their related parties were no more favourable than those available, orwhich might reasonably be expected to be available, on similar transactions to non-key management personnel related entitiesSubsequentNote on an arms 17 Key length management basis. personnel disclosures (continued)A events wholly owned subsidiary of the company, PigIP Pty Ltd ACN 145 327 144,was registered on 21st July 2010.Net transactions between the Company by director related participants were as follows:Note 17 Key management personnel disclosures (continued)Net transactions between the Company by director related participants were 2010 as follows: 2010 2010 2009$ $ $ $In-kind Cash Total Totalcontributions 2010 receipts 2010 / 2010 2009$ (payments) $ $ $South Australian Research and402,000 In-kind (212,971) Cash 189,029 Total (183,472) TotalDevelopment Institutecontributions receipts /Barneveld Nutrition - (20,000) (payments) (20,000) -CHM South Alliance Australian Pty Research Ltd and361,108 402,000 11,584 (212,971) 372,692 189,029502,569(183,472)University Development of Adelaide Institute831,590 (265,811) 565,779 264,782Murdoch Barneveld University Nutrition 435,414 - (516,599) (20,000)(81,185) (20,000) 64,414 -Australian CHM Alliance Pork Pty Ltd Ltd 233,500 361,1081,335,000 11,584 1,568,500 372,692 1,110,625 502,569New University Zealand of Pork Adelaide Industry Board 53,535 831,590 (265,811) - 53,535 565,779 48,342 264,782Australian Murdoch University Pork Farms Group 209,583 435,414 (122,980) (516,599) 86,603 (81,185) 750,29764,414Australian Pork Ltd Total 2,526,730 233,500 208,223 1,335,000 2,734,953 1,568,500 2,557,557 1,110,625Note New Zealand 18 Pork Industry Board 53,535 - 53,535 48,342Australian Pork Farms Group Subsequent209,583 (122,980) 86,603 750,297Note 18A events Total wholly owned subsidiary of the company, 2,526,730PigIP Pty 208,223 Ltd ACN 2,734,953 145 327 144, 2,557,557Subsequent eventswas registered on 21st July 2010.A Note wholly 18owned subsidiary of the company, PigIP Pty Ltd ACN 145 327 144, was registered on 21st July2010.SubsequentA events wholly owned subsidiary of the company, PigIP Pty Ltd ACN 145 327 144,The Company has made a submission to the Commonwealth was registered for on an 21st 8 year July extension 2010. of the CRC and thishas passed through the first stage of the vetting process. A decision on the outcome of the bid is expectedin December 2010.100

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010Directors’ Declaration1. In the opinion of the Directors of Pork CRC Limited (“the Company”):(a) the financial statements and notes, set out on pages 87 to 100,are in accordance with theCorporations Act 2001, including:(i) giving a true and fair view of the Company’s financial position as at 30 June 2010and of its performance for the financial year ended on that date; and(ii) complying with Australian Accounting Standards and the CorporationsRegulations 2001; and(b) the financial report also complies with International Financial Reporting Standards asdisclosed in note 1(a).(c) there are reasonable grounds to believe that the Company will be able to pay its debts asand when they become due and payable._____________________________Dr John KeniryDirector_____________________________Mr Brian HalsteadChairmanAdelaide,nd22 September 2010101

102Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010

Pork CRC LimitedAnnual Report 30 June 2010Financial statements for the year ended 30 June 2010103

NOTES

core partnersAustralian PorkL I M I T E Dsupporting participantsWA Agricultural Produce Commission PorkProducers’ CommitteeAlltech Biotechnology Pty LtdAustralian Barley BoardAustralian Pig Science Association IncNutreco Nederland BVQAF Meat Industries Pty LtdRidley AgriProduct Pty LtdState of Western Australia represented by theDirector General of AgricultureBetterblend Stockfeeds Pty LtdCharles Sturt UniversityDepartment of Primary Industries (Victoria)The Department of Primary Industries for & onbehalf of The State of New South WalesThe State Of Queensland through theDepartment Of Primary Industries and FisheriesElanco Animal HealthThe University of QueenslandFeedworks Pty LtdThe University of SydneyMassey UniversityZamira Life Sciences Pty Ltd