For the last 12 months, 14 of Australia’s most experienced industry leaders and board members from across the food value chain volunteered to investigate the necessary food industry reforms and advocate priorities needed to transform the food system. It says Australia’s food industry has the potential to become a “second engine of economic growth”, mirroring that of the resources sector, but only if urgent action is taken to transform the system in the face of multiple challenges.
Australian Food and Agriculture Industry Taskforce (AFAIT) chair (and recently appointed CEO of Domino’s), Mark van Dyck, says taskforce members recognise the urgency for immediate action to transform the food system or otherwise risk losing our competitive edge entirely.
“The system is at a tipping point, agriculture and food production are our oldest industries and a source of national pride, but there are forces at play that challenge this position.
“The increasing frequency and severity of climate events, trade tensions, a shifting geopolitical environment, and the evolution of global markets at different speeds fuelled by regulation and government subsidies, are creating an unequal playing field. It’s no wonder that 44 per cent of farmers believe we are losing our competitive edge,” van Dyck said.
Australian Food and Agriculture Industry Taskforce (AFAIT)
Alasdair MacLeod
Executive Chair, Macdoch Group
Anthony Holme
Chair, Australia Food and Grocery Council,
Managing Director, Kellanova ANZ
Barry Irvin
Executive Chair, Bega Group,
Chair, Regional Circularity Cooperative, Giant Steps, Southern NSW Innovation Hub
Ben van Delden
Climate and AgriFood Partner, Deloitte Australia
David Foote
Non-Executive Director, Cattle Australia, Craig Mostyn Group, Angel Seafoods, 40 South Dairies, DF Agrifood Advisory
Holly Kramer
Chair, Woolworths Group Board Sustainability Committee
Non-Executive Director, Woolworths, Fonterra, ANZ Bank, Nbryo
Jonathon Quigley
Co-founder, SparkLabs Cultiv8 and Cultiv8 Funds Management
Mark van Dyck
Taskforce Chair
Group CEO and Managing Director, Domino’s Pizza Enterprises
Mark Wiessing
Regional Head, Rabobank Australia and New Zealand
Dr Michele Allan
Chancellor, Charles Sturt University,
Chair, Wine Australia and Smart Sat CRC
Robert Spurway
Managing Director and CEO of Grain Corp
Professor Roy Green
Special Innovation Advisor, University of Technology Sydney
Chair, Port of Newcastle, Advanced Robotics for Manufacturing (ARM) Hub
Non-Executive Director CSIRO, SmartSat CRC
Tony Mahar
Chief Executive, National Farmers Federation
Vanessa Matthijssen
National Exec and Consumer Industry Leader, Deloitte Australia
Future of Food Leader, Deloitte Asia Pacific
Phoebe Stenning
Taskforce Secretariat, Deloitte Australia
Taskforce founding member and Deloitte Australia National Consumer Industry Lead, Vanessa Matthijssen, said there is no question Australian agriculture and food production is “world class”.
“But the reality is that past performance is no indication of future success. With the speed at which global markets are evolving, inaction will see Australia go backwards.
“Without change, new investment, and a coordinated approach that propels the sector’s evolution, Australia’s food system faces the prospect of falling behind its international competitors. The sector is at risk of not just stagnation, but a loss of resilience, global relevance and economic strength,” Matthijssen said.
The taskforce said the ongoing trend in offshoring, coupled with the rising levels of imports of processed foods, means our local food system has become less resilient to global shocks and thereby less reliable.
And Australia’s high cost of food relative to income means it tops Deloitte’s Food Frugality Index out of the 20 nations surveyed. While we have a plentiful supply of food, there are many who cannot afford to buy what they need, it said.
“A thriving food system has the potential to provide Australia with a stronger economy, help deliver on our net-zero and world leading nature-repair aspirations, and offer food security and affordability, not just for the next 10 years but for generations to come,” Matthijssen said.
AFAIT: three key “fronts” of the food system than must undergo transformative change
Key 1: Climate-smart farming practices – lift the adoption rates of practices that improve on-farm resilience, yield, and biodiversity.
“When it comes to implementing climate-smart practices, our farmers are world leaders, but they need more support to go further and really bolster yield, biodiversity, and the climate resilience of their farms,” van Dyck said.
Key 2: Sovereign supply chains – strengthen supply chain sovereignty and foster innovation to increase resilience, grow value-add and stimulate circularity.
“Amid growing geopolitical instability, it is unacceptable for Australia to be dependent on importing key inputs like fertilisers and machinery. Onshoring the supply chain will reduce the risk of geopolitical shocks disrupting food production while boosting the economy and creating Australian jobs, particularly in regional areas.”
The taskforce made two recommendations here:
National food system strategy: Design deliberate strategies and investments to improve supply chain resilience and food security to enhance sovereign capability
Manufacturing and regional precincts: Invest in food and input manufacturing precincts and scale innovation centres with universities and CSIRO to accelerate circular economy business models.
Key 3: Export markets – diversify export markets and strengthen Australia’s competitive position by enhancing the value of ‘Brand Australia’.
“We must renew our efforts to sell Australia to the world as a producer of clean and green foods with world leading agri, food and bio technologies, allowing us to open up new markets and strengthen our position in current ones.”
Here, AFAIT recommended:
Export market diversification: Strengthen our competitive positioning in key export markets, and diversify beyond food products into intellectual property, bio- and agriculture technologies.
Communication tools: A digital platform that provides food exporters with a cohesive, fact-based brand narrative. This includes a repository of key artefacts and high-quality digital marketing assets that showcase Australia’s leading-edge practices and technologies.
But Matthijssen pointed out, “Transformative change in a complex, interconnected system will require a concerted and coordinated effort. Each actor – farmers, food processors, retailers, tech companies, financiers, and government – must play their part, however value chain collaboration will be critical to transform at scale and at pace.
As such, AFAIT is calling for the creation of a public-private Australian Food System Coordinating Body.
“Transforming a complex and interconnected food system at pace and at scale requires close coordination across the value chain, including effective public and private collaboration.
“The taskforce recommends the establishment of a food system coordinating body to facilitate this collaboration and enable action. Similarly to other successful markets, its remit could include the development of climate and sustainability standards, strategic direction and priority setting to guide funding, and the provision of communication tools for exporters,” AFAIT said.
It also acknowledged that trade-offs would need to be made.
“Sovereign capability of production and processing should only be built where Australia has an advantage, where it is cost competitive, and where value can be created. Examples include processing that is reliant on fresh inputs and where proximity to farm matters, or where provenance-based brand premiums can be created such as in categories like wine, dairy and meat,” the taskforce said.
Strengthening sovereign capabilities across the food value chain can improve food security and temper price shocks, but where and when Australia produces or processes food onshore must be carefully considered.
“Sovereignty of food supply chain in Australia deserves a rethink, given how inextricably linked food security is to national security. While food supply sovereignty is guaranteed to drive greater resilience, it does not mean Australia will unquestionably benefit from bringing critical inputs and value-add onshore. Australia’s ability to be cost competitive will have to be carefully considered, and investments in technological innovation and automation will be critical to ensuring potential economic benefits are realised,” Matthijssen said.
