Why Australia actually has a food security problem

Soaring farm input costs, dysfunctional agricultural supply chain issues and shrinking allocations for agricultural water use are among a lengthy list of genuine challenges identified after a year-long inquiry into the nation's food supply industries.

The federal parliamentary agricultural committee found despite Australia being seemingly one of the most food secure countries in the world, our situation was far more complex and risky.

In fact, Australia only ranked 22nd on the Global Food Security Index.

This was largely because of a lack of coherent national policy addressing food security or a national food plan to guide sustainable growth and better prepare for supply chain threats, such as extreme weather events, exotic disease and other biosecurity dangers, labour shortages, and more.

Over-stretched port capacity and delays in biosecurity inspections rated among a host of non-food sector impediments knocking on to frustrate productivity.

Typical of some of the inquiry's more sobering findings was its assessment of the dairy sector, which faced numerous challenges, "but probably none greater than raising the level of raw milk production".

With national milk output at its lowest point in almost 30 years and continuing to slide as input costs climb, evidence indicated the risk and reliance on imported dairy products could escalate.

Dairy imports were tipped to be equivalent to more than 25pc of Australian milk production by 2030.

Subsequently, number four on committee's list of 35 recommendations to the government was developing specific strategies for reinvigorating the local dairy industry as part of a national food plan, "to lift profitability and production while also addressing the economic and environmental sustainability of the industry".

"Australia needs a strong dairy industry for nutritional and food security," the committee reported.

The inquiry highlighted similar concerns for the seafood sector, now heavily dependent on imports.

Meanwhile, the chicken meat industry projected consumer demand "may be difficult to meet" unless urgent action was taken to bolster supply chain resilience, energy and grain supply security and to incentivise domestic production.

Recommendations for a national food plan and appointing a Minister for Food to oversee its targets and outcomes ranked as the top two priorities when the committee's report was released just before Christmas.

The national food plan would engage the whole food system, from paddock to plate, dealing with production, distribution, supply chain resilience, consumer nutrition and manageing food waste.

According to CSIRO about 28 million tonnes of Australian agricultural and fisheries sector waste are generated annually, about 22pc of which occurs during production and 17pc in processing.

The food plan would also address the national security implications of food insecurity, identifying vulnerabilities, particularly regarding vital inputs including fertiliser, fuel, farm chemicals and imported food ingredients.

National Farmers Federation president, David Jochinke, believed a national food plan could identify policies harming the food and agriculture sector, and encourage supportive initiatives.

Frustratingly, however, he said the industry faced "an avalanche of bad ideas which will see deep farm production cuts", including taking water, land and workers away from agriculture.

"There's a terrific opportunity here for governments to seize on this and properly prioritise the farm sector's needs," Mr Jochinke said.

"Done well, a national food plan will keep decision makers accountable for the impact their choices have on our farm sector and the cost of living."

Last year's inquiry hearings and submissions emphasised that without careful management, the cost and availability of farm inputs would undermine food security, or at very least make food less accessible and more costly, potentially undermining whole sectors within agriculture.

The parliamentary committee noted while exports were important to our economy, the government should ensure food was affordable for Australians, too.

Committee chair and Labor Member for Paterson in NSW's Hunter Valley, Meryl Swanson, said food security was already a challenge for many, particularly those on lower incomes and in remote communities.

"Food security is not something any of us can take for granted," she said.

"Recent developments - floods, the effects of war in Ukraine, COVID-19 and Indonesia's outbreaks of lumpy skin disease and foot and mouth disease - have highlighted the risks to our food system.

"Systematic change is required."

The committee agreed appointing an Australian Minister for Food and establishing a food council were ways the nation could improve food security.

A food minister would reside in the portfolio of the Prime Minister and Cabinet, supported by a National Food Council of industry and community experts.

The report noted new industries, such as alternative proteins, protected cropping and vertical farming, had capacity to enhance food security, promote economic development and boost employment.

Governments at all levels should encourage these and local farm input production industries, while also encouraging people to seek food and agriculture careers.

"The government must ensure biosecurity is adequately funded," the committee urged.

It also recommended mandatory port and food and grocery codes of conduct and regular Australian Competition and Consumer Commission reviews of perishable food supply chains.

Deputy chairman and West Australian Liberal MP, Rick Wilson, said despite the Labor Government having "quite a bit on its plate at the moment", he saw no reason why a national food council and food plan could not be established speedily.

"A Minister for Food may be harder to push through - that requires establishing a whole new bureaucracy and significant resources," he said.

Mr Wilson said the inquiry's 24 hearings and a record 188 written submissions had provided some eye-opening details about Australia's food production vulnerability, particularly to fuel and energy supplies and costs, and to overseas made chemical, fertiliser and equipment.

It was also a wakeup call to the government about the risks from populist policy themes which could cause serious flow-on impacts to food output and industry capability.

Big production challenges were now hurting Europe because of dramatic restrictions to fertiliser and other farm management options.