Australia’s agricultural and food industries are at risk of losing their competitive edge unless urgent action is taken to transform the food system. Leveraging its strong foundations, Australia’s food industry has the potential to become a second engine of economic growth that mirrors the resources sector.
The call to action comes from the Australian Food and Agriculture Industry Taskforce, a peak body of 14 CEOs and Board members from across Australia’s food value chain, who are committed to unlocking the industry’s full potential as an export-orientated growth driver that also helps Australia deliver on its net zero and nature-repair goals.
Launching its maiden report ‘Land of plenty: Transforming Australia into a food superpower’, Taskforce Chair Mark van Dyck says Australia’s food system is at a tipping point.
“Agriculture and food production are Australia’s oldest industries and a source of national pride. Together they are responsible for almost 1.4 million jobs, add $187 billion to the economy annually, and feed 75 million people every year,” Mr van Dyck said.
“However, there are forces at play that challenge this position: the increasing frequency and severity of climate events, trade tensions, a shifting geopolitical environment, and the evolution of global markets at different speeds fuelled by regulation and government subsidies, creating an unequal playing field. It’s no wonder that 44% of farmers believe we are losing our competitive edge.
“We need to see action on three fronts. First, the impact of climate change on soil quality and catastrophic weather events presents real threats and opportunities to agriculture. When it comes to implementing climate-smart practices, our farmers are world leaders, but they need more support to go further and really bolster the climate resilience of their farms.
“Second, amid growing geopolitical instability, it is unacceptable for Australia to be dependent on importing key inputs like fertilisers and machinery. Onshoring the supply chain will reduce the risk of geopolitical shocks disrupting food production while boosting the economy and creating Australian jobs, particularly in regional areas.
“Finally, we must renew our efforts to sell Australia to the world as a producer of clean and green foods with world leading agri, food and bio technologies, allowing us to open up new markets and strengthen our position in current ones.”
Taskforce founding member and Deloitte Australia National Consumer Industry Lead Vanessa Matthijssen added that achieving these actions and helping the Australian food system realise its potential requires the creation of a public-private Australian Food System Coordinating Body.
“Australian agriculture and food production is world-class, but the reality is that past performance is no indication of future success. With the speed at which global markets are evolving, inaction will see Australia go backwards,” Ms Matthijssen said.
“A thriving food system has the potential to provide Australia with a stronger economy, help deliver on our net-zero and world leading nature-repair aspirations, and offer food security and affordability, not just for the next 10 years but for generations to come.
“But this will require a unified, national, and bipartisan response. Currently, Australia has three levels of government, nine departments of agriculture, 250 industry bodies and dozens of additional government agencies that have oversight of agriculture and food production – yet there is no overarching body to unify these entities and pursue a common strategic ambition.”
Land of plenty: Transforming Australia into a food superpower calls for change on the following three fronts: Climate-smart farming, sovereign supply chains, global markets and competitive positioning.