THERE are positives signs and “major priorities” for the agribusiness industry in Australia but it’s success in the future depends on a “cohesive industry voice”, according to Agribusiness Australia (AA) chairman Mark Allison.
Mr Allison gave his chairman’s state of the association and industry address at the Duxton Hotel in Perth last Thursday at the AA annual general meeting and dinner.
He said the key drivers that would benefit Australia were the rise of Asia, with its middle-class increasing, and more recently India’s growing food and fibre demands.
Mr Allison said over the past 18 years Australian agricultural exports had increased at 5.2 per cent per annum.
Over the same period, the nominal value of global agricultural trade had increased at 7pc per annum, and in Asian regions, the rate of growth had exceeded 14pc.
“This means Australia is losing market share where agricultural trade is growing most rapidly – the Asian region generally and particularly North Asia,” he said.
According to Mr Allison other nations experiencing rapid growth of trade to the Asian regions included Brazil, the United States, China, Indonesia, and other Latin American nations.
“The most intense competition is occurring in markets where products are largely undifferentiated and are sourced predominantly on cost,” Mr Allison said.
“These include feed grain and oilseeds grain, dairy commodities, grinding beef and horticulture products used for processing.
“Australia’s proximity to Asian markets provides some advantages over other agricultural exporters by way of lower freight rates and shorter shipping times, but these factors will not guarantee future export success.
“Understanding and arresting this productivity growth decline is critical as it is the precursor to our declining international competitiveness.
“And considering two thirds of the value of our production is exported, it is a priority.”
Mr Allison said domestically “the agribusiness sector has been changing with greater consumer involvement, interest, and attachment to food and its production”.
“Retailers, traders and processors have all seen changes in their markets,” he said.
“Investors who may not normally look towards our sector now see it as a viable industry to partner with.
“The growth potential of the agribusiness industry is creating community optimism, resulting in new markets, jobs and new technologies.
“This renewed interest verifies a new level of respect and opportunity that will enhance the agribusiness industry and its participants.
“However, the lack of a cohesive industry voice has allowed, in some cases, special interest groups to hijack the debate and influence the community.”
Mr Allison said these groups affected government and industry and may cause the sector to miss opportunities.
“Policy decisions are then often based on poorly researched and/or information of dubious credibility,” Mr Allison said.
“If we don’t counter these groups and their agendas, Australia will squander the emerging agribusiness opportunities.
“Our international competitors are preparing to dominate our current and potential market opportunities through developing efficient infrastructure, adopting the latest technologies, providing streamlined government approaches and through low cost labour.
“Australia’s current fragmented approach to agriculture and agribusiness opportunities will lead to massive financial, cultural and emotional loss, so action to prevent this must start now.”
Mr Allison said AA members needed to be advocates for agribusiness and discuss the moral imperative to feed the world using today’s innovations and technologies, “not last centuries”.
“We need to talk up the money side, the pillar of our affluence that agribusiness has been for a couple of hundred years and will continue to be,” he said.
“Talk about the political clout we currently enjoy and if we wish to maintain our international presence we need agribusinesses wealth to be at least maintained.”
Mr Allison said agribusiness around the world was facing many complex challenges – “and yet there are just as many sensible solutions”.
“Agribusiness in this country has and will always be one of this country’s industry pillars,” he said.
“When Australia has a unified agribusiness sector, the community and country gains the financial and cultural value this opportunity offers.
“The community will be more educated and therefore make logical fact-based decisions about its food and fibre.
“Our industry will have a greater opportunity to be proud of what we all do and have control of its own destiny.”
