The future of ag relies on challenges

FIVE key challenges will be central to Australian agriculture’s continued success, according to ABARES Executive Director, Dr Steve Hatfield-Dodds.

Speaking at the Outlook 2018 Conference in Canberra this week, he listed the five key areas which will have a major impact of the sector’s future.

“While agriculture has been a consistently strong performer, there are five key areas we can’t ignore,” Dr Hatfield-Dodds said.

“They are the competitiveness race, Asia’s re-emergence, evolving consumer preferences, resource scarcity and climate variability and change.

“Each of the five bring both opportunities and threats, disrupting the status quo.

“Competitiveness is central. Australia has maintained our productivity relative to other advanced economies, but we are is losing ground to emerging major producers such as Brazil and China.

“We will need to innovate, do more with less, and unlock new sources of value to ensure our continued success.

“The rise of Asia is unstoppable. Over the next 35 years the number of people living in high income countries will triple, driven largely by Asia.

“Our agricultural, forestry and fishery exports to Asia have increased by $13 billion over recent years, and we need to continue to seek trade opportunities and get a premium price for premium produce.

“Understanding the consumer of the future will be vital, both to help target our export offerings and to protect Australia’s reputation. It will be important to lean in and engage, rather than letting others shape the agenda.

“Maintaining the status quo is not an option. How we respond to these challenges and opportunities will shape the future of Australian agriculture.”