Académique Documents
Professionnel Documents
Culture Documents
opportunities
in Australian
agribusiness
and food
Contents
WHY AUSTRALIA
02
04
STATE BY STATE
12
A GATEWAY TO ASIA
15
INNOVATION CAPABILITIES
19
28
29
Disclaimer
This report has been prepared as a general overview. It is not intended to provide exhaustive
coverage of the topic. The information is made available on the understanding that the Australian
Trade Commission (Austrade) and The Australian Government are not providing professional advice.
While all care has been taken in the preparation of this report, the parties do not accept any
responsibility for any losses suffered by persons relying on information contained in this report or
arising from any error or omission in the report. Any reference to companies or investment activities
is for illustrative purposes only and does not constitute an endorsement of those companies or any
investment activity.
Copyright The Australian Trade Commission (Austrade) May 2014.
This report is subject to copyright. All or part of it can be reproduced for bona fida research or
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2001 or by email to info@austrade.gov.au
Australia.
Safe. Smart. Sustainable.
As an island continent with strong biosecurity regulations, Australias
agribusiness and food sector is renowned for clean, green and
safe production.
Leveraging established connections with Asia, Australia provides investors
with unparalleled opportunities to capitalise on the demand from fast-growing
consumer markets for healthy, premium and convenient food products.
As a major agricultural producer Australia offers potential investors access to
high quality raw inputs and the skills and capabilities needed to undertake
world-class research and development (R&D).
Why
Australia
Unparalleled opportunities
Australia is in its 23rd consecutive year of annual economic growth. Investors in
the agribusiness and food industries will find:
a large export-oriented agricultural
sector, with strong growth in food,
beverage and commodity exports
to Asia
a stable and reliable long-term
supplier of fresh produce offering
counter-seasonal availability to
the northern hemisphere
diverse climates and growing
conditions, ranging from
tropical to temperate and cool
environments, allowing varied
production systems from small
specialist farms for niche
products to large scale grazing
and cropping
an excellent reputation for safe,
sustainable and healthy foods,
supported by a transparent
food chain and highly
effective regulation
SHANGHAI ZHONGFU
Through Australian subsidiary Kimberley Agricultural Investments (KAI),
Chinese firm Shanghai Zhongfu is investing up to A$700 million over six
years on a greenfield agricultural development near Kununurra, Western
Australia (WA).
KAI will lease and develop 13,400 hectares of irrigated farmland cleared
through the Ord-East Kimberly Expansion Project, which has already
expanded the area of agricultural land in the Ord River catchment to at least
28,000 hectares with a further 14,000 under consideration for expansion.
Shanghai Zhongfus investment will substantially expand the sugar
industry in WA and includes a proposal for a A$425 million sugar mill that
will process four million tonnes of cane and produce 500,000 tonnes of
export sugar crystal annually.
The companys investment in the Ord catchment opens up the potential
of the region for cultivation of other crops including sorghum, sandalwood
and horticultural products.
Asia-Pacifics agrifood
innovation hub
Key to our flourishing industries are
world-leading research institutions
and agricultural science companies.
Our agricultural industry is
characterised by cuttingedge farming techniques and
technologies, such as precision
farming using laser levelling
and satellite driven machinery,
sustainable production processes
and sophisticated plant and animal
genomic research.
BY 2050
world food consumption
is expected to be
75%
more than
40%
Attribute
Australia
Malaysia
US
China
France
Brazil
Canada
Safe
39
17
34
13
31
19
36
Sustainable
31
15
19
13
20
21
25
Healthy
30
13
21
12
22
18
26
High quality
37
14
41
12
42
18
34
Expensive
21
10
39
41
18
24
Good taste
27
18
28
20
30
27
24
Q5004: Which of the following attributes do you associate with food products from each of the following seven countries?
Source: Reputation Institute, 3 September 2013.
Australia.
Vibrant.
Competitive.
Sector
at a glance
Australias growing agribusiness and food sector offers unique opportunities for investors looking to expand food
and fibre production as well as add value to downstream processing industries.
$162.3m
$548.3m
300,600
222,100
TOTAL : $710.6m
TOTAL : 522,700
EMPLOYMENT
(A$ million)
$21.8b
$17.2b
TOTAL : $38.5b
EXPORTS
(A$ billion)
$62.5b
unprocessed
processed
$92.0b
TOTAL : $154.5b
TURNOVER
(A$ billion)
3.93%
4.94%
in 12 months
in 12 months
GROWTH
GROWTH
Sources:
EMPLOYMENT - ABS Catalogue 6291.0.55.003 Labour Force, Australia, Dec 2013. TURNOVER - ABS Catalogue 8155 Australian Industry, May 2013.
R & D EXPENDITURE - ABS Catalogue 8104.0 Research and Experimental Development, Businesses, Australia 2011-12. EXPORTS - Based on DFAT,
Trade in Primary and Manufactured Products, Australia 2012-13
HAKUBAKU
Hakubaku, Japans largest dried noodle manufacturer, invested A$13 million to build a processing facility in Australia
after searching the world for the best wheat for making Japanese noodles.
Hakubaku Australia started producing noodles at its plant, the only one of its kind in Australia, in Ballarat, Victoria, in
1998. Producing noodles in Australia helps the company address strict Japanese import quotas on unprocessed grain
while still enjoying the advantage of the unique properties of the Australian wheat variety, Rosella.
Composition of Australias
agrifood exports (A$ billion)
Investors can leverage Australian expertise and experience in finding pathways to market for a diverse range of agrifood
exports, helping to secure new customers in one of the worlds most dynamic regions.
Unprocessed
Wheat
Cotton
Wool and other animal hair
Oil seeds and oil fruits
Barley
Vegetables
Live animals
Fish and crustaceans
Fruit and nuts
Rice
Processed
Meat
Source: Based on DFAT publication Trade in Primary and Manufactured Products, Australia 2012-13
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.
Masaaki Nagasawa, Director, Hakubaku Australia 3
1. CHINA
$7.3
11. UK
$0.6
4. KOREA
$2.4
$4.1
10. TAIWAN
$0.7
8. SINGAPORE
$1.0
5. US
$2.3
2. JAPAN
$0.9
9. HONG KONG
$2.6
3. INDONESIA
6. NEW ZEALAND
$1.4
$1.0
7. MALAYSIA
Source: Based on DFAT publication Trade in Primary and Manufactured Products, Australia 2012-13
Australia.
Clean.
Green.
State by state
From grains to dairy and meat to
seafood, Australias varied growing
environments provide investment
opportunities for a broad range of
produce and products.
Unique industries exist in each
Australian state and territory,
providing a broad range of
investment opportunities across the
agribusiness and food value chain.
New South Wales is the base for
highly diverse agrifood companies,
with capability in cereals, pulses,
oilseeds, food processing and fruit
and vegetables. The state is at the
forefront of research and application
in functional foods, nanotechnology,
new processing technologies
(irradiation, high pressure
processing, low-energy electron
beam processing, pulsed electric
field processing), smart logistics
control and e-commerce.
Victoria accounts for more than
two thirds of Australias total dairy
production and hosts companies
undertaking 40 per cent of the
countrys food processing R&D. Its
strong manufacturing base underpins
opportunities in areas such as
specialist dairy food as well as high
value-add food processing for meat,
cereals and horticulture produce.
8
SINGAPORE
$1.01b
$0.95b
HONG KONG
$2.62b
INDONESIA
6
NEW ZEALAND
$1.45b
$1.04b
MALAYSIA
7
Tasmanias
affordable
TOP EXPORT
DESTINATIONSland and
2012-13water
A$000 are some of the
abundant
features that underpin its reputation
11
for world class agriculture. Key UK
sectors for the state include wine,$0.59b
dairy, red meat, fruit, vegetables,
poppies, aquaculture and wild
fisheries. Tasmania is also acclaimed
for its superfine wool. The state
is attracting international interest
in its Sense-T project, which
integrates various data sources to
enable businesses, governments
and communities to make better
management decisions.
The Northern Territory is
geographically close to growing
Asian markets and has large pastoral
operations. It has a long history of
supplying live cattle for export and
domestic markets. Large mango
farms are situated in the north along
with other tropical horticulture crops
such as melons, Asian vegetables
and bananas. Table grapes and
dates are grown in central Australia.
Opportunities exist for investment in
aquaculture for prawns, barramundi
and sea cucumbers along the
northern coastline, as well as
in premium meat and skins for
international export markets.
4
KOREA
$2.36b
JAPAN
$4.18b
10
TAIWAN
Unprocessed
TOTAL
$0.70b
8
SINGAPORE
$1.01b
5
US
$2.62b
Processed
VICTORIA
SOUTH AUSTRALIA
$0.95b
2 972
HONG KONG
2 123
4 958
2 191
$2.62b
INDONESIA
3
TASMANIA
$1.45b
$1.04b
1 657
MALAYSIA
7
4 456
192
369
NORTHERN TERRITORY
2 897
187
WESTERN AUSTRALIA
4 371
683
Unprocessed
TOTAL
VICTORIA
Processed
SOUTH AUSTRALIA
QUEENSLAND
1 657
GM FOODS
4 456
2 191
TASMANIA
192
369
NORTHERN TERRITORY
TOTAL
MONSANTO
The Monsanto Company, headquartered in the
United States, began operations in Australia in
1928 with a focus on commodity chemicals before
expanding into agricultural products.
FERRERO
Ferrero established its manufacturing plant in
Lithgow, NSW in 1974 and today the company
is Australias fourth-largest confectionary
manufacturer. We came here when globalisation
was not even in the dictionary, on pure
entrepreneurial instinct, says Rocco Perna,
Ferrero Australia Managing Director.
Ferrero chose Lithgow as its manufacturing centre
because of the bracing climate at 1,000 metres
above sea level and the company tradition of
basing such facilities in smaller communities.
In 2013, the Ferrero Group announced an
investment of A$70 million to set up a hazelnut
plantation of one million trees on 2,000 hectares
in the Riverina region in New South Wales. This
long-term investment will enable the company to
source a supply of fresh, high-quality nuts locally.
Developments in biotechnology
have underpinned the (Australian)
cotton industrys well documented
productivity and sustainability
gains. This impressive performance
was driven by the industrys
commitment to innovation, rapid
adoption of new technology and
crop management practices.
Daniel Kruithoff, Managing Director, Monsanto Australia 4
A gateway to Asia
Connected to strong
growth markets
Australias food exports reached a
10-year high in 2012-13. While the
figure is an endorsement of the
strength of Australias food industry,
it is just a small taste of trade to
come if Australia can achieve its
goal of increasing its share of the
premium food and beverage market.
By 2030, Asia will be home to 66
per cent of the global middle class,
compared with 28 per cent today.
AGRIFOOD TO CHINA
China is Australias most valuable export destination for agrifood, with
the value of exports to China totalling more than A$7.3 billion in 2012-13.
Major products were wool, cotton, grain (mostly wheat), meat, wine
and dairy.
Australia and China are currently negotiating a Free Trade
Agreement. As an interim measure, Memoranda of Understanding
(MoUs) are becoming an increasingly popular vehicle for opening
commercial opportunities.
Examples include:
an MoU between South Australia and Fujian province in south-east
China signed in 2012 focused on trade and investment in premium
food and wine
a new agriculture agreement between Australia and China signed in
2013 to expand cooperation in science, investment and trade on a
range of agricultural products.
FREE TRADE
AGREEMENTS
Australia has seven Free Trade
Agreements (FTAs) currently in force,
with countries covered by these
FTAs accounting for 28 per cent of
Australias total trade. This coverage
will increase significantly as recently
concluded FTAs with South Korea
and Japan are brought into force.
A further eight FTA negotiations are
being undertaken - four bilateral
FTAs and four plurilateral FTAs.
These FTAs will continue to help
exporters from Australia access
new markets and expand trade
in existing markets. The countries
covered by these negotiations
account for a further 45 per cent of
Australias trade.
FTAs in force
ASEAN-Australia-New
Zealand FTA
Australia-China FTA
Australia-Chile FTA
Australia-New Zealand Closer
Economic Relations
Australia-United States FTA
Malaysia-Australia FTA
Singapore-Australia FTA
Thailand-Australia FTA
FTAs signed
(but not yet in force)
Korea-Australia FTA
FTAs concluded
(but not yet in force)
Japan-Australia Economic
Partnership Agreement
Australia-Gulf Cooperation
Council (GCC) FTA
Australia-India
Comprehensive Economic
Cooperation Agreement
Indonesia-Australia
Comprehensive Economic
Partnership Agreement
Pacific Agreement on Closer
Economic Relations (PACER) Plus
Regional Comprehensive
Economic Partnership (RCEP)
Trade in Services Agreement
(TiSA)
Trans-Pacific Partnership
Agreement (TPP)
KAGOME
Kagome Australia, a subsidiary of Japans Kagome Group, is investing
A$21 million to expand its tomato processing plant in Echuca, Victoria.
The investment will help the company to increase supply capability and
target export markets in Asia.
TEN of Australias
top 12 export markets
are in ASIA
ASIA
Darwin
Townsville
Mackay
> 1 billion
Gladstone
> 5 billion
Brisbane
Geraldton
> 10 billion
Major freight
Perth
Fremantle
Albany
Esperance
Wallaroo
Port Lincoln
Port Adelaide
Newcastle
Adelaide
Portland
Sydney
Port Kembla
Port Giles
Geelong
Sea freight
Melbourne
Land freight
LONGLEY FARM
British dairy company, Longley Farm, has invested more than A$100
million in a high-tech milk processing facility in the town of Casino,
New South Wales, developing an unique export business based on a
patented fast-freeze technology.
Under local subsidiary Fast Freeze International, the company is
exporting 10kg blocks of high-quality frozen cream for use by premium
ice cream manufacturers, patisseries and bakeries in the Middle East,
south-west Asia and Japan. The plant also produces yoghurt concentrate
and skim milk powder.
The plant is located in the NSW north coast dairying region and is
supplied with premium milk high in fat and cream from Jersey cows.
Australia.
Innovation.
Quality.
Innovation
capabilities
Australias strong agricultural R&D networks link universities, government and
specialist research centres in fields as diverse as plant and animal health,
sustainable agriculture and genetic resources. This opens up many collaboration
and technology investment opportunities for potential offshore partners.
Research excellence
The Commonwealth Scientific and
Industrial Research Organisation
(CSIRO), Australias national science
agency, is among the worlds most
esteemed scientific institutions.
CSIRO:
is in the top one per cent of global
research institutions in 15 of 22
research fields
is in the top 0.1 per cent in four
research fields agricultural
sciences, plant and animal
science, environment and
ecology, and geosciences
is actively involved in over 100
collaborative agreements each
year with over 80 countries
outperforms similar organisations
in Europe and is a regional
and national leader in terms of
research impact, as measured by
research paper citations7.
Australias
CSIRO ranks in
TOP 1%
of world scientific
institutions in 15
of 22 fields*
5 Australian
universities
are in the worlds
TOP 100.
Ranked 4th
globally
#
* Source: CSIRO Science Health and Excellence Report 2012-13. #Source: Times Higher Education ranking for 2013-14, Top 400
Multidisciplinary
1.44
Materials Science
1.42
1.42
Physics
1.39
Microbiology
1.35
Agricultural Sciences
1.34
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
The relative impact of Australian research publications by research field, as measured by citation rate
in the Thomson ISI Essential Science Indicators database, 2013.
BAYER
Bayer CropScience, a division of Germanys The Bayer Group, has been
operating in Australia for over 90 years.
Regular investment in Australian production and research infrastructure
underpins Bayers agricultural business operations, with the company
operating two factories near Brisbane and Perth that ensure year-round
supply of products exported around the Asia-Pacific.
Bayers research partnerships with CSIRO, the Grains Research &
Development Corporation and Horticulture Australia Limited form an
integrated part of the companys global research efforts.
Bayer recently opened a A$14 million state-of-the-art Wheat and
Oilseeds Breeding Centre at Longerenong College, near Horsham,
Victoria the first of its kind in Australia.
The centre will develop new wheat and oilseeds varieties with higher
yields and productivity improvements tailored for the Australian
environment.
COOPERATIVE
RESEARCH CENTRES
Rural RDC
Headquarters
Australian Capital
Territory
Queensland
Victoria
South Australia
AUSTRALIAN RESEARCH
COUNCIL
The Australian Research Councils
Industrial Transformation research
program funds research hubs and
training centres focusing on food
and manufacturing in the 2013-14
funding round.
The Industrial Transformation
Priorities focus on future food
storage; food processing;
manufacturing capabilities;
product opportunities and other
food- related research.
VICTORIAN ALLIANCE
WITH FONTERRAS DAIRY
FOR LIFE INNOVATION
CENTRE
PLANTIC TECHNOLOGIES
Plantic Technologies innovative
bioplastic technology is an outcome
of research undertaken by the CRC
for International Food Manufacture
and Packaging Science. The
company was incorporated in
Victoria in 2001 for the purposes
of acquiring, developing and
commercialising intellectual property
developed by the CRC.
Plantic produces corn-based
biodegradable and renewable
alternatives to conventional plastics,
winning support from leading food
producers like Cadbury, Mars
and Nestl to supply sustainable
packaging solutions.
WHO IS ELIGIBLE
The types of entities eligible for the
R&D Tax Incentive are:
Companies incorporated in
Australia (and are not tax-exempt
entities)
Agriculture R&D
Examples include:
New or adapted production
processes for crops and livestock
in alternative regions and climates
Novel fertiliser and agricultural
chemical developments
Alternative techniques in animal
and plant breeding to achieve
improved yields and efficiencies.
Examples include:
WHAT QUALIFIES
Two types of R&D activities are
eligible under the R&D Tax Incentive:
core and supporting R&D activities.
or
if tax payable
= 15% tax benefit
Non - Refundable
Tax Incentive
Aggregated Turnover
>$20m
Any tax position
= 10% tax benefit
A$150,000
credit to tax
A$100,000
credit to tax
Novozymes Biologicals
Australia
is a joint venture between
Novozymes Biologicals and
the GRDC. The company has
commercialised phosphate
solubilising technology in the
form of TagTeam inoculant for
legume crops and JumpStart for
use in wheat and canola crops.
These inoculant technologies
were developed with research
partners overseas and in Australia.
They include the Australian
National University, CSIRO,
Flinders University and the
South Australian Research and
Development Institute.
Top 25
Company
Name
Revenue
(A$b)
Ownership
Detail
Coca-Coca
Amatil
5.2
Australia
Lion
5.1
Japan
GrainCorp
4.5
Australia
Olam
Investments
Australia
4.1
Singapore
Cargill
3.7
United
States
Incitec Pivot
3.5
Australia
JBS Australia
3.2
Brazil
CBH Group
2.9
Australia
Murray
Goulburn
Co-Operative
Co. Limited
2.4
Australia
Glencore Grain
2.4
Switzerland
Nufarm
2.3
Australia
Nestl Australia
2.2
Switzerland
Company
Name
Revenue
(A$b)
Ownership
Detail
Teys Australia
2.2
Australia
Goodman
Fielder
2.2
Australia
Inghams
Enterprises
2.1
US
Food
Investments
2.1
UK
Mondelez
Australia
2.0
US
Agrium SP
2.0
Canada
Sucrogen
1.8
Singapore
Fosters Group
1.7
UK
Treasury Wine
Estates
1.7
Australia
Elders
1.7
Australia
Unilever
1.6
UK
Asahi
1.6
Japan
Emerald Grain
1.5
Australia
Source: IBISWorld 2013. Table is based on the most recent available data at the end of the 2013 financial year.
Key agencies
www.daff.gov.au
www.daff.gov.au/biosecurity
Australian Bureau of
Agricultural and Resource
Economics and Sciences
(ABARES)
www.daff.gov.au/abares
Department of Industry
www.industry.gov.au/industry
AusBiotech
www.ausbiotech.org
www.nff.org.au
www.afgc.org.au
REFERENCES
1. https://www.austrade.gov.au/Invest/Doing-business-in-Australia/Success-Stories/Australian-food-safety-record-attracts-Korean-food-giant
2. http://www.daff.gov.au/ABARES/Pages/outlook/conference-program/transcripts/jammie-penm.aspx
3. http://www.austrade.gov.au/Invest/Doing-business-in-Australia/Success-Stories/Hakubaku-goes-with-the-grain-in-Australia
4. http://www.monsanto.com/global/au/newsviews/pages/aussie-cotton-set-for-an-rd-boost.aspx
5. www.australiaunlimited.com/food/australian-flavours-asian-food-boom
6. http://www.premier.vic.gov.au/media-centre/media-releases/8847-coalition-assists-kagome-australia-to-replace-imports-with-local-produce.html
7. CSIRO 2012-13 Science Health Report, http://www.csiro.au/Portals/About-CSIRO/How-we-work/Budget--Performance/Performance-reviews/
ScienceHealthAndExcellenceReport-Summary-2012-13.aspx
8. http://www.nestlehealthscience.com.au/newsroom/press-releases/tongala
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