Innovation in Australia’s food industry has stalled, and the only way to restart the engine is to work together, writes innovation advisor and host of the AIFST’s recent innovation masterclass, Russel Rankin.
Despite some truly exciting pockets of innovation occurring in Australia’s food industry, in recent years there has been a steady decline in innovative activity and new product development.
Slim margins, exacerbated by the cost of materials, labour and logistics, are making it extremely difficult for companies to invest in innovation. A fragmented and disjointed approach to innovation across the industry is not helping.
Australia’s agrifood sector has now reached a point where it must innovate or evaporate.
Innovation in the sector has virtually ground to a halt and as a result, we are faced with the real danger of being left behind the rest of the world.
So what is stopping our innovative minds from kicking into gear?
At a day-to-day level, businesses are faced with constant pressures along the value chain, including a highly concentrated retail market, a strong Australian dollar for exports, labour scarcity, escalating energy prices and high, but volatile commodity prices.
A number of future innovation opportunities for the Australian agrifood industry exist, including new science-based platforms for product and process innovation and the adoption of new technologies developed in other sectors.
But while Australia’s current innovation policy remains largely focused on a ‘technology push’ or ‘research driven’ innovation approach, it is imperative that the role of entrepreneurial firms and individuals moves from the peripheral to the centre.
So how do we get back on track? By working together.
Australian businesses are well supported by a comprehensive network of innovation providers, including CSIRO and universities, government agencies and financial providers.
This is further boosted by the recent establishment of the federal government’s new Food and Agribusiness Growth Centre, but there is still more to be done for innovation.
Currently, the innovation system in the Australian agrifood industry is fragmented and disjointed. Effective elements of the system exist, but they’re not well connected and not as effective or efficient as they could be.
These elements of support for the agrifood industry on their own will not be enough to reverse, or even slow, Australia’s declining food innovation scorecard.
All the current resources must be connected in a cohesive way if we as a nation are to develop and deliver innovation at a business level.
All players in the innovation system must act as facilitators, working together to develop and commercialise innovation that is driven by deep market and consumer insights.
Innovation in Australia’s food industry must focus on helping manufacturers provide food products for export markets that deliver on provenance, shelf life, traceability, integrity, and food safety, while also allowing them to capture a price premium.
Remember, innovation is only a success when a consumer purchases a product.
ABOUT RUSSEL RANKIN
Russel Rankin is the founding director of Food Innovation Partners and he is an innovation adviser for the food and beverage industry. He is also the chair of the organising committee for the Australian Institute of Food Science and Technology’s (AIFST) annual innovation masterclass, Innovate or Evaporate! which he recently hosted in Melbourne.
