Food supply and exports
Australian food and grocery processing sector is worth over $125 billion. Australia saw a 14% increase in its food and grocery exports in 2015-16. (source: The Australian Food and Grocery Council’s (AFGC) annual industry snapshot State of the Industry 2016)
The trend naturally throughout the growing middle class will be for more natural food and a strong focus on organics foods.
There are opportunities for investment to capitalise on improved market access through Australia’s 10 free trade agreements, and growing demand from consumers in Asia and the Middle East.
Craft beers, wines and distilleries.
China’s bottled wine imports jumped by more than a third in both value and volume last year. Australia is China’s 2nd largest exporter of wine after France. (source: Wine Australia, ‘Market in Focus 2016’)
The export market for craft beers and ciders is estimated to grow by 25% by 2021. (Source: Craft Beer Industry Association) Australia is looking for more efficient means of packaging and transporting bottled goods, and innovations in brewing techniques, equipment and supplies.
Australia produces the raw ingredients used to make beer and cider, such as wheat, barley and hops.
Which leads us to the horticulture.
Horticulture and live stock markets.
The gross value of farm production is forecast to increase by 5.3% to around $54.4 billion during 2015/16.
The value of Australian horticulture and livestock exports to ASEAN markets is over A$8 billion. (source: Food And Beverage Update From Key SE Asian Markets – ATC, Australia Unlimited)
Free Trade Agreements removing tariffs
Australian horticulture is benefiting the AANZFTA – ASEAN-Australian-New Zealand Free Trade Agreement. This FTA removes many of the tariffs and trade restrictions on agricultural goods between these countries.
By 2019 most trade restrictions will have been removed between Australia and China.
This presents opportunities for those with expertise in agricultural management, equipment and logistics
Aquaculture production is witnessing high demands from domestic and international markets.
Demand, particularly from Asia, is for safe, high quality products. Australia has a reputation for producing safe, quality food products and is well placed to service this demand.
The Tasmanian salmon industry, for example, is now worth $700 million pa to the fresh water crayfish Yabby (Cherax Destructor) and Marron (Cherax Tenunanus)
grown in farm dams. (Dept of Ag, Australia’s Seafood Trade)
Of course, to remain sustainable, these industries need expertise to sustain and protect them. We see opportunities in the areas of:
Hatchery supplies and management
Sustainable food supplies
Innovative logistics to move fresh or frozen goods