Food’s a growth sector

Mogul sees short-term goal of $100bn annual exports

Australia should set a new short-term goal of reaching $100bn in annual food exports, according to billionaire paper, packaging and recycling magnate Anthony Pratt.

The call comes amid expectations of record volumes of wheat, barley, canola, cotton and sorghum exports in 2022-23.

In his address to the Global Food Forum in Melbourne on Thursday, Mr Pratt will laud the increase in Australia’s food exports from $29bn in 2013 to the current annual $70bn.

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARE) believes the value of agricultural exports is set to reach $75bn in the year ahead, above $70bn for the first time, due to large grain and oilseed harvests.

“Our agri-food production sector is now the nation’s highest employer, providing 600,000 jobs, many in country areas,” Mr Pratt will say. “Food production is not only our biggest industry but it’s our biggest manufacturing sector and I’m pleased to say that there are now 1500 more food and beverage factories in Australia than before we started this conversation. I am convinced that $100bn of food exports is a realistic short-term target.”

While China is sourcing bulk commodities such as soybeans, grains and cotton from Brazil and America, it continues to look to Australia for higher value, clean and green, and healthy food.

China remains Australia’s third-largest export market for beef, while the trade of dairy cattle to China and Japan is worth more than a quarter of a billion dollars annually.

Over the past year the Albanese government has stabilised Australia’s relationship with China, despite bans on lobster imports and the massive wine tariffs imposed by the Chinese in March 2021 that almost completely shut down a trade worth $1.2bn.

“China is still Australia’s biggest agricultural export market, worth $13bn last year – double what it was 10 years ago – and our government’s recent efforts are great so China is going to remain important for us,” Mr Pratt will say.

Australia has also secured 11 new free-trade agreements in recent years, including the landmark Australia-india Free Trade Agreement that came into effect in December.

India Prime Minister Narendra spent was in Sydney this week and held meetings with business leaders.