Will ag meet the $1.7 trillion growth challenge
Story Added : 23rd October 2012
A new report by ANZ Banking Group has pegged agriculture as the next industry to benefit significantly from Asia-led growth, but only if it undergoes a facelift.
According to ANZ if Australian agriculture is to reach its full potential it must break down its major barriers: capital constraints, skill shortages, land-use conflicts and inefficient water markets, unfocused R&D and extension services, rising supply chain costs and market access limitations.
If it can overcome these challenges, the report Greener Pastures: the global soft commodity opportunity for Australia and New Zealand predicts Australia’s farming sector will be able to grow exports to more than $1.7 trillion over the next four decades.
While identifying growth opportunities, the report has further ignited the foreign investment debate dividing factions around the country.
Nationals Leader Barnaby Joyce slammed ANZ, accusing it of supporting a consolidation of family owned farms into foreign-owned conglomerates.
“The release today of Greener Pastures: the global soft commodity opportunity for Australia and New Zealand is another depressing and fallacious inference that development in our nation's agricultural sector can only be achieved by,” he said.
“The government is buying back water licenses because we have over-developed. So it is a bit rich stating that now the problem is that family farms don't have what it takes to further develop farming.”
The Australian Food and Grocery Council and National Farmers Federation have also raised concerns over the report.
AFGC chief executive officer Gary Dawson said the call for greater foreign investment is as relevant to the Australian food manufacturing industry as other sectors across the agri-food sector.
“If Australia is to take advantage of lucrative opportunities in feeding Asia’s rapidly growing middle-class, it will need to attract sizeable investment and re-investment from multinational food companies,” he said.
“These companies offer manufacturing scale; direct access to foreign capital; advanced manufacturing expertise; new technologies and research; global supply and distribution networks; regional marketing expertise and consumer insights; and expertise in international regulations.”
Dawson said there was insufficient domestic capital to meet Australia’s demands for equity investment and foreign direct investment was vital.
“To attract investment by multinational food companies policy reform is needed to reduce the cost of doing business through targeted tax incentives, removing government red tape and supporting innovation,” he said.
NFF president Jock Laurie said growth in agriculture will require long-term vision and government policies that support, not strangle, agriculture.
“A month ago the Australian Farm Institute released its analysis of the OECD review of national agricultural policies, which shows that Australian agriculture receives the lowest amount of government support for any developed nation on earth,” he said.
“In just eight years time, half of the world’s population will live on Australia’s northern doorstep and will be demanding food and fibre of the highest quality.
“Our farmers have a clear competitive advantage, thanks to our proximity to Asia and our clean and natural production systems. But, to make this a reality, we need to overcome the challenge of growing more food and fibre with fewer natural resources – and we need policy that enables us to do so.”
The NFF will today call on Parliament to deliver a long-term strategic focus for Australia’s agricultural sector.
Laurie said Australia needs long-term, strategic policies that recognise the important role and contribution of agriculture and he will be emphasising the need for change in at Congress.
“We need to ensure policies on land use changes, like urban developments, mining and coal seam gas, do not impact future agricultural production; and that policies are in place to encourage new entrants into our industry to fill future labour needs,” he said.
http://www.efarming.com.au/News/efarmingnews/5371/will-ag-meet-the-1-7-trillion-growth-challenge.html
Story Added : 23rd October 2012
A new report by ANZ Banking Group has pegged agriculture as the next industry to benefit significantly from Asia-led growth, but only if it undergoes a facelift.
According to ANZ if Australian agriculture is to reach its full potential it must break down its major barriers: capital constraints, skill shortages, land-use conflicts and inefficient water markets, unfocused R&D and extension services, rising supply chain costs and market access limitations.
If it can overcome these challenges, the report Greener Pastures: the global soft commodity opportunity for Australia and New Zealand predicts Australia’s farming sector will be able to grow exports to more than $1.7 trillion over the next four decades.
While identifying growth opportunities, the report has further ignited the foreign investment debate dividing factions around the country.
Nationals Leader Barnaby Joyce slammed ANZ, accusing it of supporting a consolidation of family owned farms into foreign-owned conglomerates.
“The release today of Greener Pastures: the global soft commodity opportunity for Australia and New Zealand is another depressing and fallacious inference that development in our nation's agricultural sector can only be achieved by,” he said.
“The government is buying back water licenses because we have over-developed. So it is a bit rich stating that now the problem is that family farms don't have what it takes to further develop farming.”
The Australian Food and Grocery Council and National Farmers Federation have also raised concerns over the report.
AFGC chief executive officer Gary Dawson said the call for greater foreign investment is as relevant to the Australian food manufacturing industry as other sectors across the agri-food sector.
“If Australia is to take advantage of lucrative opportunities in feeding Asia’s rapidly growing middle-class, it will need to attract sizeable investment and re-investment from multinational food companies,” he said.
“These companies offer manufacturing scale; direct access to foreign capital; advanced manufacturing expertise; new technologies and research; global supply and distribution networks; regional marketing expertise and consumer insights; and expertise in international regulations.”
Dawson said there was insufficient domestic capital to meet Australia’s demands for equity investment and foreign direct investment was vital.
“To attract investment by multinational food companies policy reform is needed to reduce the cost of doing business through targeted tax incentives, removing government red tape and supporting innovation,” he said.
NFF president Jock Laurie said growth in agriculture will require long-term vision and government policies that support, not strangle, agriculture.
“A month ago the Australian Farm Institute released its analysis of the OECD review of national agricultural policies, which shows that Australian agriculture receives the lowest amount of government support for any developed nation on earth,” he said.
“In just eight years time, half of the world’s population will live on Australia’s northern doorstep and will be demanding food and fibre of the highest quality.
“Our farmers have a clear competitive advantage, thanks to our proximity to Asia and our clean and natural production systems. But, to make this a reality, we need to overcome the challenge of growing more food and fibre with fewer natural resources – and we need policy that enables us to do so.”
The NFF will today call on Parliament to deliver a long-term strategic focus for Australia’s agricultural sector.
Laurie said Australia needs long-term, strategic policies that recognise the important role and contribution of agriculture and he will be emphasising the need for change in at Congress.
“We need to ensure policies on land use changes, like urban developments, mining and coal seam gas, do not impact future agricultural production; and that policies are in place to encourage new entrants into our industry to fill future labour needs,” he said.
http://www.efarming.com.au/News/efarmingnews/5371/will-ag-meet-the-1-7-trillion-growth-challenge.html
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