Plotting strong future growth for our vital agricultural sector
TWO significant initiatives designed to grow Australia’s food and agribusiness sector were released at a major industry conference in Sydney this week.
Craig Laundy, the Assistant Minister for Industry, Innovation and Science, unveiled CSIRO’s Food and Agribusiness Road Map at the Australian Institute of Food Science and Technology’s 50th Anniversary Convention.
Food Innovation Australia Limited, the food and agribusiness growth centre funded by the Federal Government, also used the convention to release the latest iteration of its Sector
Jan Davis
Competitiveness Plan.
The plan outlines a 10-year vision and strategy for the industry, revised annually to reflect market forces shaping the sector.
CSIRO’s Road Map charts a course for food products, technology and innovation to secure future success in the sector.
Developed with widespread industry consultation and analysis, the Road Map aims to assist Australian food and agribusinesses to grow and pursue new markets.
CSIRO said Australia was well positioned to act as a “delicatessen” of high-quality products to meet the needs of billions of informed and discerning customers both here and abroad.
The Road Map identifies climate change, geopolitical instability and technological advances as key challenges facing Australian agribusinesses in the coming decades, and warns that previous successes cannot be sustained through productivity improvements alone.
“To survive and grow, the challenge facing Australia’s 177,000 businesses in the food and agribusiness sector is to identify new products, services and business models that arise from the emerging needs of tomorrow’s global customers. This road map will set us on the path to sustainable growth in the sector,” deputy director of CSIRO Agriculture and Food, Martin Cole, said at the release of the report.
The food and agribusiness sector is a vital contributor to the Australian economy and presents a key source of growth for the nation over the coming decades. This growth cannot be sustained through productivity improvements alone.
Businesses of tomorrow must unlock greater value from Australia’s resources through harnessing science and technology and creating new offerings that meet the emerging needs of global customers.
Early signs of this shift have been identified by recent Austrade analysis of the three years to 2016, which showed that, for the first time in Australia’s history, value- added foods have accounted for the majority (60 per cent) of food export growth.
Researchers identified a number of key areas that the industry needs to focus on for future success.
A less predictable planet means supply of limited resources is being further constrained by more severe and unpredictable climate events and more potent microbes, pests and diseases.
This is causing food producers to more seriously consider the environmental life cycle impact of food production activities.
Health is a major concern for everyone. An ageing
population, rising levels of chronic disease and increasing social awareness around health and wellbeing are creating demand for foods that provide specific and holistic health outcomes.
Customers are becoming more demanding.
Rising wealth, increasing choice and greater market access are driving demand for a more diverse range of foods and food service options that are tailored to individual preferences and lifestyles.
The world is becoming a smaller place. As food and beverage value chains become increasingly global, new market opportunities are created, while at the same time introducing competition and supply resilience risks in a volatile world.
Smarter food chains are required to meet rapidly changing market places. Increasing demand for food, the use of big data and more sophisticated e-commerce platforms are driving the creation of leaner, faster, more agile and low-waste value chains.
According to FIAL chairman Peter Schutz: “Food and agribusinesses need to be more agile, take calculated risks and apply Australian ingenuity to make what we have go further, and capture the value currently wasted at a household and industrial level. Through creating a sense of urgency or burning platforms for change and growth, including improved co-ordination of government activities, a thriving Australian food and agribusiness sector will be the prize.”
These reports are just the latest in a series of expert assessments that have identified that Australia’s food and agribusiness sector has the potential to strengthen its position as a small but significant exporter of sustainable, authentic, healthy, high-quality and consistent products.
Responding to the disruption facing every single part of the Australian landscape requires nothing short of deep collaboration to drive breakthrough innovation.
To do this, the entire industry must work together to address cultural challenges and assist businesses to transition towards being more collaborative, globally connected and growthoriented. Jan Davis is an agribusiness consultant and a former chief executive of the Tasmanian Farmers and Graziers Association.