High-end produce the answer

LOCAL farmers must find a way to combine the benefits of scale, with the uniqueness of specialisation, to ensure future agriculture relevance, according to Syngenta’s Australasian head.
Speaking last week at the Ag in the Asian Century conference in Toowoomba, Paul Luxton said the key challenge for Australian growers is meeting consumer demand with the provision of differentiated produce in the growing Asian market.
“Agricultural export success will depend on deep insights into emerging needs and effective marketing to leverage the Australian brand and reputation,” Mr Luxton said.
“Targeting segments where Australia has a competitive advantage, particularly around seasonability, quality and production will help ensure Australia’s agriculture future.”
Australia plays a key role in addressing the global population growth challenge.
In 1950, the world’s population was just 2.5 billion; in October 2011, the global population reached seven billion, and by 2050, the Food and Agricultural Organisation of the United Nations predict a further increase of two billion people.
In 1960, one hectare of land supported two people, but by 2020 that same area will need to support up to five people.
“In short we need to produce more with less and technology and innovation will play an important part,” Mr Luxton said.
“Asian population growth and growing food demand present a major opportunity for Australian growers. However, mass production is not the answer; we must move away from bulk undifferentiated products to high-end, specialty produce.
“Australia is not going to feed the world; we need to see ourselves not as the supermarket into Asia, but rather as the delicatessen, providing quality over quantity.
“The biggest challenge in Australian agriculture at the moment is combining the benefits scale with the uniqueness of specialisation.”
According to Mr Luxton, this includes innovative vegetables, with specific traits, bred for the consumer to create value and sustain profitability.
Total agricultural imports into Asia are growing at an estimated 12 per cent per year according to the Australian Farming Institute analysis – Farm Institute Insights May 2014, and while Australia’s ‘growth’ is not at the same rate, its share is of a growing market.
“A lot has been made about the opportunities in the ‘Asian Century’, however, there is a sobering reality emerging that despite our geographic proximity, these opportunities will not simply fall into our lap,” Mr Luxton said.
“Australian growers who successfully combine the benefits of scale with the uniqueness of specialisation will increasingly prosper.
“With improved infrastructure and logistic opportunities such as that provided by the new Brisbane West airport, Australian agriculture has the chance to capitalise on our proximity to the emerging markets just to our north.”