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Advanced Food Manufacturing grants program

Information current as of September 2017

© Government of South Australia 2017

Primary Industries and Regions SA – ABN 53 763 159 658

Food Innovation Australia Ltd - ACN 164 124 609

Disclaimer

PIRSA, FIAL and its employees do not warrant or make any representation regarding the use, or results of the use, of the information contained herein as regards to its correctness, accuracy, reliability and currency or otherwise. PIRSA, FIAL and its employees expressly disclaim all liability or responsibility to any person using the information or advice.

All enquiries

South Australia Food Innovation Centre

GPO Box 1671

Adelaide SA 5001

Telephone: (08) 8226 0109

Email: PIRSA.FoodInnovationCentre@.au

Advance Food Manufacturing grant program – Major Project process flowchart

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Guidelines and Assessment Criteria

Introduction

Primary Industries and Regions South Australia (PIRSA) administers the Advanced Food Manufacturing (AFM) Grants Program as part of its Food Programs, which support high-value food manufacturing and food innovation.

In the fourth round of the AFM grants program, PIRSA and Food Innovation Australia Limited (FIAL) have partnered to increase the uptake of innovation in the South Australian food and beverage manufacturing sector.

The AFM grant – Major Project program supports South Australian food and beverage processors and manufacturers (excluding wine) and research organisations to collaborate to develop novel or innovative products or processing technology which align with the theme; Food and Aging Well.

The Program connects companies to expertise and technical advice to develop new solutions to challenges which businesses are unable to solve themselves in order to take advantage of a market opportunity. The new solution, when supported with training that builds business capability, is designed to address the development of Functional Foods to enhance nutrition for the aging population.

About the AFM grants program – Major Project

AFM grants program is designed to increase the technical collaboration between South Australian-based food and beverage (excluding wine) manufacturers and high quality research and technology providers.

The Round 4 AFM Grant Program offers a Major Project Grant Stream to support a major innovative project which adds value to the Food Manufacturing Industry and the Australian economy. The objective is to support a Major Project(s), which requires collaboration between two or more industry partners, food manufacturer(s) operating in South Australia and two or more high quality research and technology provider(s) with expertise relevant to advanced manufacturing in the food industry, and for these parties to seek funding as a co-investment with the State Government, as specified in these Guidelines. Only projects which involve the development of Functional Food products/ beverage(s) that are designed to meet the nutritional requirements of an aging population, such that the products enhance health and wellness, will be considered.

Applications will be sought through Expressions of Interest (EoI’s) from industry but may be initiated by either a food manufacturing company(ies), an agency or a research and technology provider(s), and must be based on an agreed partnership in the project.

Projects must be completed within 24 months of commencement, achieving their milestones and objectives in a timely manner.

Funding

Funding is available for grants up to a maximum of $200,000 per year for 2 years.

Funding at a ratio of 1:2 (i.e. $1 business contribution to $2 grant funding) for food manufacturing businesses with an annual turnover of up to $5 million.

Funding at a ratio of 1:1 (i.e. $1 business contribution to $2 grant funding) for food manufacturing businesses with an annual turnover of greater than $5 million and up to $20 million.

In-kind contributions cannot be used as matching funding.

Eligibility

Eligible organisations include:

• Food (and beverage) processors or manufacturers based in, or with the majority of its business conducted in South Australia (50% and above).

• A nominated South Australian food manufacturer as lead and on behalf of a group of food manufacturing companies.

• A South Australian based public or private research and technology provider with well-developed applied research and technology (market ready) seeking to partner with a South Australian-based food manufacturer. Private organisations not registered as research providers must first be authorised by PIRSA to ensure quality of outcomes for the submission companies.

Please note that this program is not aimed at start up enterprises, the project must demonstrate the ability to have a high positive impact on the South Australian economy and involve at least two or more research partners and two or more industry partners; with at least 1 of these being a food manufacturer.

Roles and responsibilities of participating organisations:

The Food Manufacturer (where the primary applicant)

If the application is successful, the food manufacturer will enter into a Grant Agreement with the Minister for Agriculture, Food & Fisheries on terms and conditions acceptable to the Minister. Food manufacturer applicants must:

• Be a food manufacturer based in, or with the majority of their operations (more than 50%) based in South Australia, with a current ABN.

• Partner with at least 2 research and technology providers and 1 other industry partner for the project by entering into a legally binding agreement with the all providers and partners.

• Be accountable for the conduct of the project and selection and management of the partnership.

• Comply with these guidelines, including those relating to issues such as Intellectual Property.

The Research and Technology Provider (where the primary applicant)

Must be a South Australian based business or institution. If the application is successful, the lead research and technology providers will enter into a Grant Agreement with the Minister for Agriculture, Food & Fisheries on terms and conditions acceptable to the Minister.

• The provider must have the qualifications, facilities and/or equipment to deliver on the project.

• Must partner with at least one financially viable South Australian food (or beverage) manufacturer, one other research or technology provider and 1 other industry partner for the project by entering into a legally binding agreement with the manufacturer, provider and any other partners.

• They will be accountable for the conduct of the project and selection and management of the partnership.

• They will comply with these guidelines, including those relating to issues such as Intellectual Property.

It is possible the research and technology provider(s) may be a separate food manufacturing business who can demonstrate the capacity and willingness to collaborate with another food manufacturing business to conduct a project and other required partners to achieve a beneficial outcome.

Applicant must:

• Be legal entities, i.e. with which the Commonwealth Government and the South Australian Government can enter into a legally binding Grant Agreement.

• Have an Australian Business Number

• Demonstrate the balance of project funding required to complete the project, exclusive of in-kind contributions.

• Demonstrate a clear technical challenge to develop a functional food(s) product or beverage(s) that are designed to meet the nutritional requirements of an aging population, such that the products enhance health and wellness, that they are unable to resolve with their internal capabilities and show a link between the technical challenge and their proposed business &/or market opportunities.

• Indicate a definite path to market and demonstrate a market need or demand for project commercial outcome and provide a business and/or commercialisation plan in the application.

• Agree that project outcomes will be shared publically via a one page Case Study as part of the project final reporting requirements. Companies will agree in writing with their research and project partners the information to be provided through the one page Case Study. The content of the disclosure is not the developed IP from the research but rather a generic overview of the challenge, the solution, the outcomes and next steps. Any organisation not able to support submission of a one page case study are not eligible to gain funding.

• Agree that part of the project funding will be applied to internal training to up skill staff, develop business plans or change business practices, in order to best leverage the technical solutions provided and deliver desired commercial results. Applications without any training program commitments will not be eligible for funding.

• Accept that any agreements on IP will be arranged between the research organisation(s) and food manufacturer(s), although the preference is that the IP will reside with the co-funding manufacturer.

• Understand their legal rights to IP and that they will have the option, as part of the application to provide IP rights to FIAL. This decision will not affect the applicant’s eligibility for funding and should be agreed by the applicant and their partnering organisation.

Project activity that may be supported include:

• Innovative and market-leading food products that feature novel food sources, higher value food performance such as health or nutritional benefits.

• High value food products designed for specialist domestic, or international markets, or specific performance or regulatory requirements.

• Novel or innovative food processing technologies including engineering design, production engineering, inline process controls.

• Sustainable food production including optimisation of raw materials, utilisation of waste streams as by-products.

• In relation to the applicant’s co-contribution, the assessment will give preference to projects where cash contributions exceed-in kind.

Training requirements as part of the project: As part of the AFM grants program’s eligibility criteria, applicants must include a training component as part of their application. Training elements that may be included as part of a project could include:

• Operator and/or operations training on machine scale-up requirements to deliver consistent product quality, functionality and food safety.

• Quality and/or technical training on manufacturing impacts and requirements on product quality, functionality or food safety.

• Training on management of quality or operation systems to accommodate modified HACCP, SOPs or operation standards.

• Technical training on food science.

• Business development training for sales and/or marketing team for presentation of new products to new customers or within new sales channels.

• Marketing team training to ensure Point of Sale, promotions or communications correctly capture the features and benefits.

Exclusions – funding does not cover:

• Duplication of existing processes, or direct replacement of existing plant or equipment, or new “off the shelf” plant or equipment.

• Equipment design for development of equipment prototypes.

• Basic or applied research or activities not sufficiently developed to have a clear ‘path to market’.

• Wages of food manufacturing staff, project planning or downtime (lost production) costs incurred by the company.

• Requests for retrospective funding, where projects have been completed or have commenced prior to the application being received.

• Costs in protection of Intellectual Property (IP).

• Projects where the funds would displace funding which is or would have been more appropriately provided by other State, Commonwealth and/or Local Government sources.

• Funding from other State or Federal Government sources will not be considered as part of the co-contributed funds.

• Projects that require ongoing recurrent State Government funding.

• Initial scoping investigation, feasibility studies, business cases, market research and reports where they do not form part of an established and broader project that meets the AFM grant programs objectives.

• Projects being undertaken to directly or indirectly meet a legal or contractual requirement

• Costs associated with the preparation of the application and project management fees and costs.

• Software development.

Assessment criteria

Applications to the AFM grant program- Major Project stream are assessed and prioritised based on how well the project meets the following criteria:

• Clearly targets an existing productivity or processing issue in the manufacturing of a functional food product(s)/ beverage(s) that are designed to meet the nutritional requirements of an aging population, such that the products enhance health and wellness..

• Commercialise existing research with clear market potential and is innovative for the business.

• Facilitates demonstrated collaboration and partnering of an industry partner, a research and technology provider and market ‘end users’ (if needed) in the project.

• Is viable and sustainable in the medium to longer term.

• Does not adversely impact upon existing businesses, industries or communities.

• Clearly identifies key milestones that demonstrate:

o Development and growth of food manufacturers, researchers or technology providers, and partnerships through effective and highly visible collaboration.

o Clearly identifies opportunities to lift technical and business capabilities, through collaboration, training, and education.

Assessment will give greatest weight to those projects that:

• Clearly define and pursue novel outcomes that will have measurable impact that benefit South Australia.

• Are conducted under sound project management.

• Provide value for money (including cash contribution).

• Provide evidence the proponents have genuine intent and an effective partnership in project execution, with appropriate agreements to sharing/rights to knowledge including created intellectual property.

How to Apply

The AFM grants program has a two stage application process:

Stage 1

Stage 1 involves a call for Expressions of Interest (EOI). EOIs must be completed on the correct application form, addressing all requirements in this form. EOI applications received will be assessed by the AFM Selection Panel and a shortlist will be developed based on those projects that meet the AFM objectives and criteria. The Selection Panel will consist of 1 representative each from PIRSA, FIAL and the Dept. State Development as well as an Industry Expert and an Industry Participant.

EOIs will be subject to a due diligence process.

Shortlisted applicants will be invited to lodge a Full Application on a no commitment basis.

***A self-assessment eligibility checklist is provided as part of the program materials, and should be completed to assess eligibility before completing an EOI form***

• The closing date for submitting EOIs for Round 4 of the AFM Grants Program is

5.00 pm (ACST) on 26 October 2017.

Stage 2

Stage 2 involves assessing Full Applications against the Program’s prescribed Assessment Criteria.

Applications will undergo comprehensive due diligence to determine the applicant’s financial capability and the project’s commercial feasibility.

The AFM Selection Panel will consider applications on merit against the assessment criteria, before making recommendations to the Minister for Agriculture, Food and Fisheries.

Applicants will be informed of the outcome of their application by PIRSA.

Grant recipients will be required to enter into a Grant Agreement with the Minister for Agriculture Food and Fisheries in order to receive the grant, which will be subject to the State Government’s Contract Disclosure policy. Grant recipients will be involved in the preparation of public announcements about AFM grant program and participate in a review of the AFM grant program.

Assistance and Conditions

Grant payments are made on an agreed payment schedule based on expected project milestones and expenditure.

The following conditions will be expected of any grant recipients:

• Complete the project as stated in the application.

• Meet all key milestones and obligations as defined in the Grant Agreement.

• Seek prior consideration and approval, through PIRSA before making any significant changes to the project.

• Acknowledge the contribution of the South Australian Government on any promotional material and provide opportunities for the Minister for Agriculture, Food and Fisheries or a representative to take part in any formal project milestone achievements or launches.

A final report will be required at the end of the project. This report must:

• In detail describe the project and its outcomes

• Describe any next steps between partners.

• Provide auditable evidence of project expenditure both cash and in-kind contributions.

• Provide a non-commercially sensitive Case Study report, which can be published by PIRSA and or FIAL including:

o Challenge (Project background, what was the challenge/need for the project)

o Approach (what was the method/process used to address the challenge)

o Outcomes (What was the result of the project/tangible outcomes)

o Next steps (what are the planned or expected next steps related to this project)

Note: Grants may be subject to GST and income tax. Applicants should seek advice on these and other tax implications from their tax advisers or the Australian Taxation Office before applying.

Applicants should understand their legal rights and obligations under this Program.

More Information

For more information please contact the food program team, on Telephone: (08) 8226 0109 or Email: PIRSA.FoodInnovationCentre@.au

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Advanced Food Manufacturing Grant Program – Major Project

Guidelines and Assessment Criteria

September 2017

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SEPTEMBER 2017 ADVANCED FOOD MANUFACTURING GRANT PROGRAM – Major Project

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