A massive thrust from the Australian Food and Agribusiness sector could unlock over $200 billion in value and 300,000 jobs by 2030 but it needs a push to make it happen
Despite the extraordinary challenges and disruption 2020 has presented Australia’s food and agribusiness sector, the underlying setting is for an immensely positive future.
This combined $200 billion value revealed by the Food and Agribusiness Growth Centre is on the proviso that farm produce reaches a value of $100 billion at the farmgate. A figure already flagged by farming groups.
The Food and Agribusiness Growth Centre explains how we can exceed all previous estimates for the sector’s potential in its report, Capturing the Prize.
The report found that the food and agribusiness sector could be 2 to 3 times its current value, reaching over $200 billion on a value-add basis by 2030.
This latest estimate is more than double the one put forward by both the National Farmers Federation and CSIRO, but largely explained by the Growth Centre’s work covering both pre- and post-farm gate value-add, or the entire supply chain from farm to food.
The farm industry already has in place a Roadmap of Australian Agriculture’s Plan for a $100 billion Industry by 2030 and this is expected to be met.
The Food and Agribusiness Growth Centre explains how the roadmap can expand by unlocking value-adding growth opportunities from farmgate produce.
The Capturing the Prize report analyses the opportunities for growth and the enablers needed for Australia’s food and agribusiness sector to double the previous estimate.
Examples includes adding to market sizing with personalised nutrition and waste conversion for growth opportunities.
The report builds on findings from the roadmap by providing an outlook on the market size of the growth opportunities surrounding the $100 billion farmgate produce by 2030.
It re-examines the $100 billion target established, and introduces a baseline projection of $84 billion as it investigates opportunities and barriers that impact agriculture’s ability to exceed this projection.
This report analyses how accelerated adoption of emerging technologies, enabled by the National Broadband Network (nbn), could add close to $16 billion to the agriculture sector’s gross value of production by 2030.
Capturing the Prize outlines the path to unlock this $200 billion potential by identifying 19 Growth Opportunities.
If pursued, according to The Food and Agribusiness Growth Centre these Growth Opportunities will not only unlock $200 billion in value but will create an additional 300,000 new jobs by 2030.
Since releasing Capturing the Prize, the Food and Agribusiness Growth Centre has convened over 100 technical and commercial experts, leaders, and decision-makers across the agri-food value chain.
Including all parts of the value chain, commodities and industries – to develop draft Roadmaps for each of the 19 Growth Opportunities identified.
Dr Mirjana Prica, Managing Director of the Food and Agribusiness Growth Centre said, “We wanted to convene a small group of industry and research leaders to work collaboratively in developing draft Roadmaps that will unlock the whole of value chain potential.
“But this is just the first step of the ambitious journey required for the sector to realise its $200 billion potential.”
The Food and Agribusiness Growth Centre is now seeking feedback from a much larger cohort of stakeholders including any business, research organisation or individual involved in the food and agribusiness sector.
With over 90% of the 176,000 businesses within the agri-food sector being small to medium businesses, the sector needs to explore every opportunity to overcome the scale, capacity, innovation, infrastructure, and cultural challenges.
“We are seeking your involvement and feedback on the draft 19 Growth Opportunity Roadmaps. Unlocking the $200B potential is not a foregone conclusion. Dr Mirjana Prica added.
“Already 93% of participants involved in the initial consultation phase have indicated they are either already acting or going to act as a result of being involved in this initial process.
“It is extremely rewarding to see action has already started. This work really has the potential to not just be another report, but to transform the sector through focused and coordinated pursuit of the 19 Growth Opportunities.
“To thrive, the sector must rethink how it operates, harness the collective expertise, and avoid duplication of effort and investment.
“Success is contingent on the sector working as whole-of-value chain,’ said Dr Michele Allan, Chair of the Food and Agribusiness Growth Centre.
To register your interest in the current consultation process and access the draft Roadmaps to review and provide feedback, register at: foodmatrix.fial.com.au/project2030.
About the Food and Agribusiness Growth Centre
The Food and Agribusiness Growth Centre (trading as Food Innovation Australia Limited/FIAL) was established by the Australian Government as part of its Industry Innovation and Competitiveness Agenda.
The Centre’s purpose is to catalyse the growth of the agri-food value chain.
It works across the whole agri-food value chain from the farm right through to the food we eat, working collaboratively with all industries and commodities, researchers, commercial partners, service providers and support agencies. For more information go to, www.fial.com.au
Read the full report online or click on the overview of Project 2030 for a comprehensive summary.