With strong biosecurity regulations and protection, Australia is seeing steady and strong growth in its agribusiness and food sector. The sector is renowned globally for clean, green, and safe production and supply chain.
Wide variety of products in the agricultural sector
With its reputation of healthy, premium and convenient food products it offers to consumer markets, Australia provides investors with unparalleled opportunities to capitalize on its agribusiness and food sector. Potential investors can access high-quality raw inputs, as well as skills and capabilities needed to undertake world-class research and development.
Australia is currently in its 23rd consecutive year of annual economic growth. There are a number of opportunities that investors can find in Australia’s agribusiness and food industries.
The country has a large export-oriented agricultural sector, with strong growth in food, beverage, and commodity exports to Asia. It also offers a stable and long-term supply of fresh produce, offering counter-seasonal availability to the Northern Hemisphere.
The diverse climates and growing conditions in Australia allows a diverse production system: from small specialist farms for niche products to large scale grazing and cropping.
With its reliable regulation and transparent food chain, Australia offers safe, healthy, and sustainable and healthy foods.
Investors will also find the convenience of testing new food concepts, with the country’s culturally and ethnically diverse population. Australia also embraces new technologies and manufacturing processes to boost productivity.
Australia also works on its international partnerships, industry consolidation and supply chain optimization to achieve globally competitive economies of scale.
Australia’s Innovative and Premium Products
According to Masaaki Nagasawa, Director, Hakubaku Australia, “We researched the white wheat available in the major grain-growing areas of the world, visiting Canada, America, and Australia. After many trials, we found that certain varieties of Australian wheat stood out as the most suitable for us, as the finest and most consistent in quality.”
The advanced agricultural capacities of Australia allow it to produce high-quality products that can supply for a population three times its own population. Its produce is exported worldwide: from traceable raw commodities such as wheat and beef to sophisticated processed goods such as infant nutritional formula, wines, confectionery, and cheese.
Shanghai Zhongfu, a Chinese firm, is investing up to A$700 million over six years on a greenfield agricultural development near Kununurra, Western Australia (WA). This was made possible through the effort of Australian subsidiary Kimberley Agricultural Investments (KAI).
The investment will significantly expand the sugar industry in WA, and it includes a proposal for an A$425 million sugar mill that will process four millions tons of cane and produce 500,000 tons of export sugar crystal annually.
What Makes Investment in Australia Sustainable
Australian producers deliver premium and safe food globally, backed up by a diverse agricultural sector, supportive government policies and innovative R&D institutions.
Part of this success is the collaborative efforts of research institutions and agricultural science companies. Australia’s agricultural company employs cutting-edge farming techniques and technologies such as precision farming using laser leveling and satellite-driven machinery, sustainable production processes and sophisticated plant and animal genome research.
Its strategic geography plus cultural and investment links to countries in the Asia-Pacific region allows Australia to offer cost-effective services compared to competitors in Europe and North America.
Asia is increasingly demanding for safe, healthy, and high-quality foods, so Australia’s reputation as a clean and green food producer and stellar record as a regional supplier makes it an ideal investment destination.
“In future we will see more and more food businesses creating goods – and farmers planting crops – that are intended solely for Asia from the outset. This will require innovation that starts behind the farm gate and continues across every process in the supply chain, to new packaging, marketing, and business processes,” Peter Schutz, Chairman Food Innovation Australia Limited remarked.