AUS: Cashing in on Asia's agribusiness bonanza

(BS) - There is no doubt many Australian businesses are experiencing a period of transition. In a multi-speed domestic economy, with a high Australian dollar and global volatility, feedback from our customers indicates that some industries are experiencing growth while others undeniably face significant challenges. The Australian agricultural industry is an example of how harnessing change can lead to success in this transitory environment. 

How businesses respond to change and evolve with the global environment plays a central role in not only their future success, but that of the Australian economy more broadly.

What we need is for businesses to have a strong mix of realism and confidence: realism to face into the challenges of the world’s changing conditions; and confidence to prepare and structure their business for future opportunities.

The agricultural industry in Australia has been embracing innovation and taking advantage of new opportunities, and reaping the rewards.

In 1900, almost one quarter of the Australian population worked in the agricultural industry. In 1960 it was 8 per cent, while today just 3 per cent of us work in agriculture. No one would argue the agricultural industry today isn’t more efficient, more innovative and more specialised than it was when one quarter of the population worked in it. The industry has gone through transition and innovation and is ultimately more productive for it.

Now, as the focus moves to rapid population growth in Asia, the Australian agricultural industry has to once again seize the opportunity to secure the quality food supply chains of the region.

The fundamentals are there: Australian farm exports are already forecast to reach $39.3 billion by 2018-19, up 11 per cent on the average over the last five years according to ABARES. Over the same period, gross farm production will reach $57.5 billion.

However even this immense growth will meet just a fraction of the demand coming from Asia, and in particular, China. By 2050, Asian agrifood demand is set to double to $US3.1 trillion.

While it is unrealistic to think Australia alone will be the sole supplier and beneficiary to this extraordinary growth, our farmers’ strong environmental credentials and reputation for providing high quality, safe produce means we are perfectly positioned to take advantage of the demands of the rapidly growing middle class in Asia.