3. Food production, consumption and export

Introduction

3.1This chapter addresses the question ‘are we food secure?’ It examines the production, consumption and export of food across the economy, then sector by sector, while noting some of the challenges to production faced by individual sectors. The chapter then addresses the role of exports in food security, issues around farm viability, and some of the innovations in food production that can buttress food security in Australia and globally, such as alternative proteins, protected cropping and vertical farming.

Are we food secure?

3.2The question of how food secure Australia is depends to some degree on individual perspective. In April 2020, in response to the COVID pandemic, ABARES produced an analysis of food security in Australia which described Australia as ‘one of the most food secure countries in the world’. It found that:

• Despite temporary shortages of some food items in supermarkets caused by an unexpected surge in demand, Australia does not have a food security problem.
• Australia is one of the most food secure nations in the world, with access to a wide variety of healthy and nutritious foods.
• Australia produces much more food than it consumes, exporting around 70% of agricultural production.
• We do not produce everything we eat, with imports accounting for around 11% of food consumption by value.
• The majority of food and beverage imports are processed products (including frozen vegetables, seafood products, and beverages), along with small amounts of out-of-season fresh produce. Disruptions to these imports would be unlikely to have any impact on Australian food security.[1]
  3. A different view on the question comes from the Global Food Security Index (GFSI), an analysis of food security on a global scale. The 11th edition of the GFSI in 2022[2] highlighted a deterioration in the global food environment, making it vulnerable to shocks.This followed big gains in global food security from 2012 to 2015, with overall GFSI scores jumping six per cent. However, structural issues in the global food system led growth to slow subsequently, and for the past three years the trend in the overall food security environment has reversed.
  4. In 2022, the GFSI was dragged down by falls in two of its strongest pillars—affordability and food quality and safety—and saw continued weakness in its other two pillars—availability, and sustainability and adaptation. In particular, affordability, the top-scoring pillar, was dragged down by sharp rises in food costs, declining trade freedom and decreased funding for food safety nets.
  5. Eight of the top ten performing countries in 2022 come from high-income Europe, led by Finland (with a score of 83.7), Ireland (scoring 81.7) and Norway (scoring 80.5). These nations score strongly on all four pillars of the GFSI. Japan (scoring 79.5) and Canada (scoring 79.1) round out the remainder of the top ten. The difference between the top performing country and the country at the bottom of the ranking has continued to widen since 2019, reflecting the inequity in the global food system.
  6. Nations where farmers had access to agricultural inputs and financial products, where governments invested in R&D and innovative technology and had a strong supply chain infrastructure, were more likely to have higher global food security scores. Indeed, access to these agricultural inputs were some of the biggest gainers in the index since 2019, especially commitments to empowering female farmers (jumping 18.4%) and access to agricultural technology, education and resources (up by 10.1%).
  7. Australia ranked 22nd, with an overall score of 75.4. Individual scores were:
• Affordability - 93.3
• Availability - 61.1
• Quality and Safety - 84.0
• Sustainability and Adaptation - 58.8
  8. The National Farmers’ Federation (NFF) emphasised Australia’s high levels of production and exports—enough food to feed 75 million people each year—as evidence of Australia’s food security.[3] In a similar vein, the University of Western Australia stated:

Despite being the driest human inhabited continent in the world, and with a limited proportion of land suitable for agriculture, Australia is blessed with a variety of different climates, meaning that our country can produce a range of agricultural products. Our agricultural sector makes good use of the available land, resulting in Australia not only being able to produce enough food for its own population, but also to be a major exporter of food and other agricultural products. Australian agriculture currently feeds 26 million people at home and about 50 million people overseas.[4]

3.9Despite this, a number of stakeholders identified a significant and growing problem with food insecurity. Dr Rachel Carey, of the University of Melbourne, highlighted the narrative in Australia ‘that we're a food secure country because we produce and export a lot of food’.[5] She noted, however, that ‘food security is also fundamentally about food access and particularly people's ability to afford access to sufficient healthy and culturally appropriate food’.[6] On that score, Australia was less food secure:

The latest State of food security and nutrition in the world report released by the Food and Agriculture Organisation of the United Nations recently estimates that, between 2020 and 2022, around 11 per cent of Australians were either severely or moderately food insecure. A report released by Foodbank Australia last year estimated that the rate of food insecurity was considerably higher.[7]

3.10Farmer and lawyer, Ms Caitlin McConnell, noted that the United Nations had recognised Australia as a food insecure country, both in terms of vulnerabilities in Australia’s food systems infrastructure and logistics supply chains, and ‘in respect of our response to and the effect of natural disasters associated with climate’. [8]

3.11Dr Steven Lapidge, Chief Executive Officer of Fight Food Waste Ltd, highlighted the measures of food security based on production, stating:

Australia produces enough food to feed 75 million people each year, three times our population, and according to the Global Food Security Index, we are one of the most food secure countries in the world. We're also currently ranked first for food affordability in the world, something that many consumers would disagree with.[9]

3.12Dr Lapidge observed, however, that ‘it is only when food rescue agencies are no longer required that Australia and Australians can truly call themselves food secure’.[10]

3.13The Committee is conscious of these different perspectives, and that raw production figures alone do not denote food security. The Committee will examine the issue of food insecurity more closely in Chapter 7, while dealing with the aggregate issues of production and consumption here.

Food production and consumption

3.14A key element of food security is the production and consumption of food, including imports and exports. ABARES has released reports analysing production and consumption patterns across the economy. ABARES research highlighted shifting patterns of demand related to population growth, income growth, changes in tastes and preferences, and changes in food prices. In its 2017 report on food demand in Australia,[11] ABARES noted that:

• The domestic market is important for Australia's food producers including farmers, food processors and food service providers.
• By value, around two-thirds of Australia’s food production is used in the domestic market.
• Food imports have become more important, particularly for processed food, but still account for a relatively low share of household food consumption (15 per cent in 2015–16).
• Food is a major expenditure category for households in Australia. The three top food expenditure categories are: meals out and fast foods; meat, fish and seafood; and fruit and vegetables.
• Food expenditure per person tends to be higher, on average, for households with higher incomes.
• The food industry supplies a broad range of food products and services in response to food demand in different segments of the domestic market.
  15. The report noted that imports have become a progressively more significant source of food for the household sector, although most food consumed in Australia is produced in Australia:
• Food imports increased from $4 billion in 1989–90 to $14 billion in 2015–16.
• Overall, the share of imports in household food consumption increased from 8 per cent in 1989–90 to 15 per cent in 2015–16.
• Food imports mainly comprise processed food products—processed food imports increased from $3 billion (90 per cent of total food imports) in 1989–90 to $13 billion (92 per cent) in 2015–16.
• In 2015–16, Australia was a significant net importer in six categories: seafood; processed fruit and vegetables; soft drink, cordials and syrups; confectionary; bakery products; and oils and fats.[12]
  16. A second report on trends in Australia’s food market from 2018[13] noted that between 1988–89 and 2016–17:
• indicative food production increased from $65 billion to $117 billion, an average increase of 2.1 per cent a year;
• household food consumption expenditure increased from $49 billion to $92 billion, an average increase of 2.3 per cent a year;
• net food exports increased from $16 billion to $25 billion, an average increase of 1.5 per cent a year (in 2015–16 prices);
• food exports increased from $20 billion to $39 billion (2.4 per cent a year), or from 30 to 33 per cent of indicative food production; and
• food imports increased from $4 billion to $14 billion (4.8 per cent a year), or from 8 to 15 per cent of food consumption.
  17. Estimated growth in the volume of household food consumption was found to have been relatively consistent in recent decades, averaging 2.4 per cent a year over the period 1988–89 to 2016–17, but key drivers have changed:
• Between 1988–89 and 2009–10, key drivers were population growth (55 per cent of food demand growth), income growth (42 per cent), and changes in tastes and preferences (9 per cent), partly offset by higher real food prices (-7 per cent).
• Between 2009–10 and 2016–17, key drivers were population growth (64 per cent of food demand growth), changes in tastes and preferences (20 per cent), lower real food prices (10 per cent) and income growth (6 per cent).
• Growth estimates for the volume of food consumption per person (1.0 per cent a year between 1988–89 and 2016–17) should be interpreted with caution and may indicate there has been some switching toward higher-priced food types.
• The share of meals out and fast foods in total food expenditure increased from 25 per cent in 1988–89 to 31 per cent in 2009–10 and 34 per cent in 2015–16, the latest year available.
  18. The report estimated that Australia’s household food consumption expenditure would increase from $92 billion in 2016–17 to $165 billion in 2049–50, an average increase of 1.8 per cent a year, comprising 1.3 per cent for population growth and 0.5 per cent for growth in household food expenditure per person. Reliable food quality was likely to increase the willingness of people to pay a price premium (all else constant).

Production and consumption by sector

3.19This section provides key Australian agricultural industry profiles, and a summary of the food and grocery manufacturing sector. It includes data on production, consumption, exports and imports, and a summary of the main challenges facing the various sectors.

Dairy

3.20In 2021–22, Australia’s dairy industry produced around 8.5 billion litres of milk from 1.34 million cows, worth $4.9 billion in farmgate value.[14] This was the industry’s lowest figure since at least 1996–97,[15] and according to Australian Dairy Farmers Ltd, this decline commenced following deregulation in 2000,[16] as well as a move away from exporting bulk commodity dairy products.[17] The decline is attributed to a range of factors, including ‘rising input costs consistently eroding profitability, lack of productivity growth, decline in export market share, social licence challenges, change in consumer preferences and production systems and climate change’.[18]

3.21The Australian Dairy Products Federation (ADPF) advised that in September 2020, the dairy industry launched the Australian Dairy Plan with a view to making the industry more profitable and confident into the future. The ambition was to increase milk production to at least 9.6 billion litres in 2024–25, creating around $500m in additional value at the farmgate. The ADPF reported that ‘unfortunately, the increase in raw milk production has not eventuated despite record high farmgate milk prices being paid to farmers’.[19]

3.22In contrast, global milk production has risen, with Asia being the biggest milk-producing region (42 per cent of the share total in 2018); Australia accounted for around 2 per cent.[20] Milk and dairy products are produced nationwide. Victoria dominates in the production of milk (60 per cent), followed by New South Wales (12 per cent) and Tasmania (10 per cent).[21]

3.23The dairy processing sector creates $16 billion in revenue annually, contributing $12.4 billion to gross domestic product.[22] This more than triples the value of raw milk between farmgate and the consumer.[23] There are about 200 processing companies,[24] although ten diary manufacturers process most of the milk.[25]

3.24Australians consume around 93 litres of milk per capita, which represents a recent slight decline. Domestic consumption trends differ between types of dairy products, reflecting changes in consumer tastes and food trends. For instance, plant-based alternatives are becoming popular, such as alternative milks.[26]

3.25Globally, Australia ranks fourth in the dairy trade and holds a five per cent share after New Zealand, the European Union and the United States.[27] In 2021–22, our dairy products exports totalled $3.8 billion, with 85 per cent directed to Asian markets.[28] Almost $1.4 billion or a third of our dairy exports went to Greater China (37 per cent), one of our fastest growing export markets by volume.[29] Japan (11 per cent), Indonesia (8 per cent), and Singapore and Malaysia (6 per cent each) are Australia’s other strongest export markets for dairy products.[30]

3.26Imports of dairy products represented the equivalent to 19% of Australian milk production in 2021–22. New Zealand accounted for approximately 50 per cent of Australia’s imports, followed by the EU (27 per cent) and US (17 per cent).[31] This is up from 9% in 2006–07. This trend is expected to continue, with dairy imports increasing to over 25 per cent of production by 2030.[32]

3.27The dairy sector faces a range of challenges, but probably none greater than raising the level of raw milk production. As the ADPF put it:

Australia currently produces enough milk to meet domestic demand for drinking milk, with excess and imported product enabling manufacturers the choice to divert milk into higher value dairy products.

But as raw milk production continues to decline and input costs continue to rise, the risk and reliance on imported dairy products could escalate and hence a need to balance and solve for both. This lends to the question ‘what is the ideal level of “self-sufficiency” to best manage dairy production costs and remain cost competitive, while assuring security of supply?’[33]

Red meat and live exports

3.28Australia’s red meat and livestock industry turnover was $67.7 billion in 2020–21, covering livestock production ($35 billion), processing ($19.2 billion) and wholesale and retail sales ($13.5 billion). The industry comprises 76,000 businesses. Australia’s cattle herd numbers totalled 24.4 million head; the sheep flock 68 million head (June 2021). The largest beef producers are located in Queensland (50 per cent), New South Wales (20 per cent) and Victoria (20 per cent). In comparison, Queensland is home to a small number of sheep (sitting at 3 per cent like Tasmania), with most located in New South Wales (36 per cent) and Victoria (23 per cent).[34] Australians are some of the largest consumers globally of beef and sheep meat, consuming 19.2 kilograms of beef and 5.9 kilograms of sheep meat annually per capita.[35]

3.29In 2021-2022, red meat and livestock exports equalled around $17 billion.[36] The live export sector specifically is estimated at over $1 billion per year.[37] Australia exports about 70 per cent of its red meat to over 100 export destinations.[38] Australia exports beef mainly to Japan, China, Korea and the United States; sheep meat to the United States and China in particular; and goatmeat, especially to the United States.[39] Live exports are a significant part of Australia’s red meat trade. Australia mainly exports cattle to Indonesia, Vietnam and China; sheep to Kuwait, Israel, the United Arab Emirates and Oman; and goats to Malaysia.[40]

3.30Australia has 1.5 per cent of the global cattle herd and 5 per cent of the global sheep flock. It is the fourth largest beef exporter after Brazil, India and the United States, and the largest global exporter of sheep meat and goat meat.[41] In 2021, half of Australia’s top-ten beef export markets relied on it for over 34 per cent of their yearly imports; for Japan and Indonesia this reliance exceeded 40 per cent of annual imports. Australia and New Zealand are the only major suppliers of sheepmeat globally, and many countries rely on Australia for their imports. For example, Australia supplied 78% of sheepmeat and 85% of goatmeat imported into the United States in 2021.[42]

3.31The main potential impediments to production for the red meat sector are labour shortages, production costs, biosecurity, natural disasters and the cessation of live exports.[43]

Chicken meat

3.32In 2021–22, the Australian chicken meat industry had an estimated gross value of production of $2.97 billion and retail value of $6.6 billion.[44] In the previous year, the industry in Australia produced around 1,366,000 tonnes of chicken meat from 700,600,000 birds.[45] Almost 70 per cent of Australia’s chicken is produced by Ingham’s and Baiada Poultry situated across Australia, with four medium-sized companies being the other main producers.[46] As urbanisation increases, the industry is becoming more regionally-based.[47]

3.33Of the 1.3 billion kilograms of chicken that Australian producers generate each, 97 per cent is for domestic consumption.[48] Chicken is the most popular meat consumed by Australians, with almost 70 per cent of Australians eating chicken at least twice a week.[49] Per capita, Australians eat around 50 kilograms of chicken annually, far exceeding pork as the next most popular meat nationally, with an annual per capita consumption of 28 kilograms.[50] Chicken accounts for about 45 per cent of all meat protein consumed by Australians.[51]

3.34As domestic consumption and demand are high and on the rise, Australia has a modest export profile.[52] It is estimated that by 2030, to feed our growing population, Australia’s chicken meat production will need to increase by 200 million kilograms (around 100 million birds) above current capacity, to 1.56 billion kilograms, to maintain self-sufficiency.[53]This will require substantial additional investment in infrastructure, machinery, transport, labour and birds.[54]

3.35The Australian Chicken Meat Federation stated that ‘the projected increases in consumer demands for chicken meat may be difficult to meet unless urgent action is undertaken to shore up Australia’s food security and supply chain resilience’.[55] It concluded that ‘to ensure that Australia’s food security goals continue to be met to 2030 and beyond, any food security and resilience strategy must focus on how to incentivise industry investment to grow domestic production capacity in chicken meat’.[56] The Ingham’s Group emphasised the importance of energy security and the security of the grain supply to the future of the industry.[57]

Eggs

3.36Australia produces around 6.3 billion eggs per year. On an average day, Australians collectively consume about 17.3 million eggs. Eggs are predominantly produced in Queensland, New South Wales and Victoria.[58] Australia does not import eggs due to risks of disease; and has limited egg exports, mainly to Singapore, the United Arab Emirates and the Philippines.[59] Egg Farmers of Australia identified the principal impediments to production being high input costs and the planned phase-out of caged egg production.[60] It observed that:

Earlier this year the cost of started pullets (young laying hens) had increased 20%, fuel prices jumped 25%, feed grain costs rose by 45%, and the cost of canola oil had climbed 141% per tonne.[61]

Pork

3.37The Australian pork industry comprises pig production, primary and secondary processing, and wholesale. It contributes around $5.3 billion in gross domestic product annually to our national economy. In 2021, around 443,000 metric tonnes of pork were produced in Australia. The industry is predominantly regionally based in Queensland, Victoria and South Australia. Around 279,000 sow herds are kept in approximately 4,300 registered sites across Australia.[62]

3.38Around 706 million pork meals are produced in our country annually, and Australians consume on average 10.8kg of fresh pork each.[63] Ninety per cent of pork production is for domestic consumption.[64] Pork is the most popular meat in the world, and the total value of our exports is approximately $173 million per year. Almost one third of these exports go to Singapore, making up over 12 per cent of its total pork supply. The pig industry in Western Australia is particularly invested in this export market.[65]

3.39Australian Pork Limited (APL) highlighted a number of potential impediments to production, stating that ‘consistency of regulation, investment in biosecurity mechanisms, support for labour force initiatives and key strategic infrastructure investments’, were crucial to the future of the industry.[66] APL also highlighted competition from imports, noting that:

Unlike many Australian livestock industries, the pork industry faces significant competition from imported pork products with approximately 80% of the ham and bacon consumed by Australians daily derived from imported pork.[67]

3.40In response, APL urged the implementation of the recommendations of the 2021 Evaluation of Country of Origin Labelling reforms report, produced by Deloitte for the Department of Industry, Science, Energy and Resources.[68]

Seafood

3.41The seafood industry includes wild catch, aquaculture and post-harvest sectors.[69] Australians consume seafood from wild catch (commercial, recreational, and Indigenous customary fishers), aquaculture production and imported seafood.[70] The Australian seafood industry has a gross value of production of over $3.15 billion annually, representing 10 per cent of national agricultural production.[71] Australia annually produces around 1.5 billion seafood meals.[72]

3.42While Australian production has grown 25 per cent since 2000,[73] and Australia exports a variety of premium products, such as rock lobster, premium tuna species and abalone,[74] domestic production is actually declining as a proportion of consumption and Australia imports significant quantities of seafood.[75] Total annual domestic production is 317,400 tonnes harvested (wet weight), while imports are 207,000 tonnes product weight (at sale) out of total domestic supply of 366,615 tonnes product weight. Around 42,000 tonnes per annum are exported.[76] Imports contribute 72% of Australia’s seafood meals.[77]

3.43Production from wild catch fisheries has plateaued ‘due to reduced access to productive fishing areas, marine spatial squeeze, climate change impacts and the rising cost of key inputs’.[78] The Fisheries Research and Development Corporation (FRDC) advised that around 50% of Australia’s local sustainable capture fishery resources are unharvested, and undervalued. It indicated that potential production could more than double the current national catch (an increase over current catches of about 124%), although potential increases varied among individual species and fisheries.[79] For example, it was estimated that additional gross value of production from fully harvesting a selection of 11 underutilised species in NSW waters was around $85 million per year.[80]

3.44The fastest growing food production sector in Australia and globally is aquaculture.[81] In Australia, the proportional value of seafood production attributed to aquaculture has grown from 29 per cent (2000–01) to 56 per cent (2020–21).[82] Aquaculture is the biggest contributor to the growth in value of Australia’s seafood industry, and is predicted to continue expanding, with salmonids, prawns and abalone contributing to this increase and presenting strong export opportunities.[83]

3.45Seafood Industry Australia (SIA) emphasised the need to boost local production to meet expected increases in global consumption in order to protect Australia’s food security. It stated:

With global consumption of seafood expected to increase by 20% by 2030 it is imperative that we increase local production of seafood to meet this demand and ensure that access to domestically produced seafood remains available and affordable to the Australian community. This will require support for both the wildcatch and aquaculture sectors of the Australian seafood industry.[84]

3.46To maintain seafood production, SIA highlighted the need for security of access to fisheries,[85] access to labour,[86] access to fuel and energy,[87] and strong biosecurity.[88] With regard to the workforce challenges, SIA noted that:

The current Australian workforce cannot fulfil the ongoing requirements of the wild-catch, aquaculture and post-harvest sectors. In addition, the expansion rates of the aquaculture and postharvest sectors forecast over the next 12 to 18 months will worsen the already tough labour situation.[89]

3.47SIA also emphasised the nutritional importance of seafood, citing research that Australians, on average, need to increase their seafood consumption by 40% to meet dietary recommendations. SIA observed that ‘increased seafood consumption requires increasing national seafood production volumes and improving the resilience supply and value chains to the community’.[90]

Grains

3.48Globally, we have the highest wheat production per capita.[91] In 2021–22, Australia produced a record crop of approximately 67.4 million tonnes.[92] The industry’s value for that period was estimated at $27.5 billion.[93] The winter crop production included a record return of 36.3 million tonnes for wheat, with barley at 13.7 million tonnes and canola at 6.4 million tonnes.[94] In the previous season, Australian grain production provided $13.8 billion in gross value of production to our economy.[95]

3.49Australia’s grain exports generally far surpass domestic consumption. In 2021–22, domestic demand for grain totalled 17 million tonnes; whereas Australia’s grain exports were around 45.4 million tonnes.[96] By 2030, however, annual grain exports are predicted to reduce from 60 per cent to 53 per cent of total production, while the domestic market for cereal grains will take up an additional 6 per cent of annual production.[97] Australia mainly exports grain within the Asia-Pacific region.[98]

3.50Australia does import some grain products—food and ingredients that Australia either does not produce or does not produce in sufficient quantities to meet demand. For example, Australia imports around 900,000 tonnes of soymeal as a protein source for animal stock feed, mainly for pig and poultry production. In times of severe drought the supply chain is able to reverse to allow for the import of grains.[99]

3.51In terms of domestic consumption of grains, about 35 per cent of national wheat production goes towards domestic flour production. A significant portion of the crop is use for animal food, both cattle and poultry, making a significant contribution to domestic meat production.[100]

3.52The main impediments to production are reliable and economical access to inputs such as fuel, chemicals and fertiliser; biosecurity; and climate change.[101] GrainGrowers advised that:

Crucially, climate change is already impacting growers, resulting in changed planting times and cropping regions, earlier and longer frost windows, greater pest and disease risk, and significant fluctuations in weather patterns such as the recent bushfires and drought.[102]

3.53GrainGrowers indicated that ‘maintaining the domestic and global competitiveness of Australian grains while reducing emissions and increasing carbon sequestration is a key ambition of the industry’.[103]

Horticulture

3.54Horticulture comprises fruit, vegetables, nuts, flowers, turf and nursery products.[104] Horticulture is Australia’s third largest agricultural sector and the fastest growing, with production value growing by 23 per cent over the five years leading up to 2020–21.[105] The total value of Australia’s horticulture industry was $15 billion in 2020–21, which accounted for 20 per cent of agricultural production.[106] During that period, Australia produced an estimated 6.6 million tonnes of horticultural produce.[107] The industry is forecast to produce at least $20 billion by 2030.[108]

3.55Our horticultural exports are worth $2.4 billion annually.On average, we export around 11 per cent of total horticulture production by tonnage, although the amount varies greatly between different products. If production continues on the current trajectory, Australia will have an excess supply of around 500,000 tonnes, worth $1.2 billion, by 2030. Imports of fresh produce were estimated at $1 billion in 2020–21, mostly fruit and nuts counter-seasonal to Australian production.[109]

3.56A major component of horticulture is vegetable production. The vegetable industry produces some 3.72 million tonnes of produce valued at $4.8 billion, with 210,000 tonnes worth $275 million going to export.[110] With an industry focus on the domestic market, Australia exports only around six per cent of vegetable production, to over fifty markets. Key markets include Singapore, the United Arab Emirates, Malaysia, Hong Kong, Thailand and Indonesia.[111]

3.57A key issue around vegetable production is low and declining consumer demand. Australians have about 2.4 serves of vegetables daily, instead of the recommended 5 serves. Since 2001, Australians are consuming half a serve less of vegetables per day, equalling 13 kilograms annually per capita. This equates to an annual loss of $1.2 billion at the farmgate and has serious implications for the health and nutrition of the average Australian.[112]

3.58The main potential impediments to production faced by the horticulture sector are market transparency;[113] input costs—particularly fertilisers;[114] labour shortages;[115] and biosecurity.[116] Finding ways to better avoid or use waste from horticultural production was also identified as a major issue facing the industry.[117]

Food and grocery manufacturing

3.59Australia’s food and grocery manufacturing sector is our biggest national manufacturing sector—32 per cent of total manufacturing turnover—accounting for an annual turnover of $133 billion in 2020–21. The sector comprises over 16,000 Australian and multinational businesses of all sizes. It employs 272,000 people, with almost 40 per cent of these being in regional and rural Australia.[118]

3.60The sector is engaged in both imports and exports. Exports of food and grocery products accounted for $36.7 billion in 2018–19.[119]The food and beverage sector recorded a net trade surplus of $9.3 billion (8 per cent of turnover) in 2021, a decline from the previous five-year average of $12 billion (11 per cent of turnover). The trade surplus is underpinned by the meat processing industry, which contributes $13 billion to the total. In contrast, seafood processing, other food product manufacturing and soft drinks, cordial and syrup manufacturing have the largest trade deficits of $1.2 billion, $1.3 billion, and $1.1 billion, respectively.[120]

3.61Food and beverage imports totalled $19.1 billion in 2020–21, growing at a 3-year compounded annual growth rate of 4.9 per cent. Fruit and vegetables processing ($3.0 billion), other food product manufacturing ($2.6 billion) and seafood processing are the largest importing industries contributing to 38 percent of food and beverage imports.[121] The top four sources for food and beverage were New Zealand ($2.7 billion), the United States ($1.8 billion), China ($1.2 billion) and Thailand ($1.2 billion).[122]

3.62In addition, the food manufacturing sector is critically reliant on imports for specialist ingredients and other components of food (food additives, colourings, flavourings and processing aids),[123] and packaging.[124] The Australian Food and Grocery Council noted that while there were opportunities to manufacture some of these key inputs in Australia, many popular foods and beverages would always be reliant on imports to meet domestic needs. The Council recommended that ‘the critical role imports of some foods, food ingredients and other inputs play in Australia’s food security at present and into the future’ be recognised, and that ‘a “whole of value chain” approach to policy assessments’ be adopted.[125]

3.63The Australian Food and Grocery Council also noted, however, that Australia was heavily reliant on China for ingredients and packaging inputs for food and beverage manufacturing, with China being ‘the top supplier of almost half of the critical inputs and is in the top four for inputs except for some agricultural and refined commodities’.[126] The Council recommended that the Australian Government ‘develop a comprehensive policy framework supporting food and beverage manufacturers to develop sourcing strategies which diversify the sources from which they obtain key inputs for their manufacturing’.[127]

Feeding the world?

3.64Despite Australia’s significant food surplus relative to population and our high level of exports, the evidence presented to the Committee highlighted the fact that in global terms Australia is a relatively small producer—we cannot feed the world. Tony Mahar, CEO of the NFF, stated:

I suppose the final point I would make is that, in the scheme of things, we're a reasonably small producer. You might think that we're a large exporter of wheat or beef or other products, but on the global scene we are still quite a small producer when you look at countries like Ukraine, Russia, China or India. Part of that comparison is their production capabilities. So that's worth bearing in mind as well.[128]

3.65Australia’s focus was producing premium products for export markets and leading new technology and innovation within agriculture.[129] Ms Victoria Taylor, of the Centre for Entrepreneurial Agri-Technology, stated that ‘we will always be a high-cost nation; we will always be in premium markets; we will probably not feed the world; but if we've got a highly nutritious, clean, green product, perhaps that's a point of difference, if we have the incentives to go that way’.[130] Professor Tony Bacic, of La Trobe University, noted that we should be the premium provider of high quality foods to the Asia-Pacific region. Professor Bacic observed that ‘we will never be the food bowl, but we will be the quality provider because we have a regulatory system, a well trusted, clean and green thing’.[131] The Australian Food Sovereignty Alliance suggested that:

The productivist and export focus is often framed within a moralising discourse that Australian agriculture is ‘feeding the world’. Yet, the reality is that exports are directed not to countries suffering widespread food insecurity, but rather the ‘highest value markets in developed economies and to the middle classes in developing countries’.[132]

The role of exports in Australian food security

3.66Nonetheless, exports were seen as vital to Australia’s food security. The Australian Fresh Produce Alliance (AFPA) noted that ‘while it might sound counterintuitive to the concept of the food security inquiry, better trade market access for our sector is so critical because it actually underpins this broader business productivity and sustainability at a farm level’.[133] Ms Claire McClelland, AFPA CEO, told the Committee ‘that increase in exports is absolutely critical not only for the growth of our industry but also because it enables businesses to then reinvest in the regional communities in which they operate, to become more efficient, to become more sustainable and resilient in what they're doing’.[134] From AFPA’s perspective, the critical issue was market access:[135]

Increasing Australia’s fresh produce exports through improved technical market access must be viewed as a positive for food security. Fresh produce exports play an important role in Australia’s food security because access to export markets provides premium pricing to growers, which enables scaling and investment in produce businesses, and the regional communities in which they operate. The result of improved exports is possible to see in the domestic market with improved capacity, capital and consistent supply of domestic product. Improved technical market access, and the subsequent trade that will flow from this, is critical in safeguarding Australia’s fresh produce industry.[136]

3.67Fruit and vegetable growers, Costa Group, also emphasised this point. It stated that:

Fresh produce exports (and exports from other agricultural sectors including meat and dairy) play an important role in Australia’s food security, because without the opportunity to export fresh produce and attract premium pricing, there would not be anywhere near the level of investment that occurs in domestic fresh produce production and therefore supply and food security.[137]

3.68Costa Group highlighted the importance of trade and market access in the citrus industry, explaining:

The logic of this can be seen in what the citrus industry has done over the last 20 years. The investment that has occurred in the industry has been of scale and essentially came about not because of opportunities in the domestic market, but because of opportunities to sell premium Australian grown product into export markets, including Japan, China and United States. The industry has also benefited greatly from free trade agreements with these particular countries. As a consequence of this, there has also been a resultant benefit for the domestic market, in that the industry has the capacity and capital to supply domestic consumption, and therefore contribute to our food security. Without this, more fresh produce would need to be imported, contributing to a decline in food security.[138]

3.69The NFF argued that ‘we must dispel the narrative that Australia’s export capacity in some way undermines domestic food security’.[139] Rather, it explained, ‘it is our export capacity that enables the long-term profitability of Australia’s agricultural sector, and hence our ability to continue to produce food for domestic consumption’.[140] The NFF asserted that ‘the ability of farmers to access export markets at prices competitive with international counterparts is key to the ongoing viability and profitability of our sector’.[141]

3.70The Department of Agriculture, Fisheries and Forestry (DAFF) agreed, noting that even in years of drought Australia’s strong position as a food producer had held. Domestic consumption had remained stable while exports varied ‘absorbing the ups and downs in annual production associated with Australia’s variable climate and seasonal conditions’.[142] DAFF observed that ‘despite food consumption remaining relatively stable through years of below average agricultural production, domestic prices for specific food products may increase slightly’.[143]

Keeping farms viable

Farm viability and profitability

3.71A key element of food security is the viability and profitability of farm businesses. The NFF argued that Australia’s farmers were ‘ultimately responsible for Australia’s continued and sustainable food security’ and that ‘without viable and profitable farm businesses, Australia’s food production capacity would collapse’.[144] NFF CEO Tony Mahar told the Committee:

…we must protect the viability of Australian farm businesses by addressing the increasing cost of critical inputs, the efficiency of Australia's freight and logistics systems and the significant competition issues in the agricultural supply chain.[145]

3.72The NSW Farmers’ Association indicated that ‘a minimum condition for Australia to continue to be a relatively food secure nation is a profitable agriculture industry’.[146] Profitability allows growers to attract private investment, have access to credit and confidence to invest in their own business. It also allows farmers to ‘attract a productive workforce and invest in sustainable land management practices’.[147] This, in turn, makes Australian agriculture ‘internationally competitive and more resilient to shocks, leading to more stable prices for consumers’.[148]

3.73The Victorian Farmers Federation (VFF) highlighted the impact of input costs on farm viability, including local government rates and necessary inputs such as energy and water. It urged priority for ‘coherent and cohesive plans to provide water and energy to the nation in a mutually beneficial relationship with farmers’.[149] VFF President, Ms Emma Germano, highlighted the difficulties associated with transitioning to renewable energy on-farm when she stated that:

There has to be that commercial incentive. What is the expression? It's good to go green, but you can't go green when you're in the red. Farmers have to be profitable enough.[150]

3.74The NSW Farmers’ Association identified a range of systemic issues which impact farm viability and profitability:

• Input costs which are increasing at a faster rate than prices, reducing the profitability of food producers and their ability to make productivity-enhancing investments.
• A decreasing number of agricultural professionals entering the workforce, lack of available and fit-for- purpose training services, and immediate labour shortages.
• Insufficient development and uptake of agtech due to poor rural and remote connectivity and stagnating research, development, and extension spending.
• Market power imbalances which lead to producers bearing an unfair amount of risk, information asymmetries, and inability to make productivity-enhancing investments.
• Inefficient ports and supply chains which decrease the international competitiveness of producers and lower farmgate prices.
• A biosecurity system which is reactive in the face of an increasingly high risk profile.
• A lack of long-term, strategic investment and assistance for agriculture to reach net zero emissions.
• High levels of food waste at the farmgate caused by issues further up the supply chain such as restrictive quality specifications by retailers.
• Impositions on landholders and regional communities from large scale renewable developments and transmission lines without any assistance for producers to adopt renewable energy solutions.
• Increasing frequency of natural disaster events such as droughts and floods.
• Producers bearing the costs of managing the environment while the benefits accrue to others in the supply chain.[151]
  75. Some of these issues are addressed below.

Consolidation—benefits and drawbacks

3.76Industry consolidation, in both the farm sector and downstream industries, has significant implications for food security. Ms Germano told the Committee that ‘where we see the consolidation of farms, which is happening, I think, at a rate of nine per cent attrition of farmers per annum in Victoria, that doesn't necessarily mean that production levels are dropping’.[152] Concentration also had the potential advantage of giving growers greater leverage in the marketplace. She stated:

As we see that consolidation of farms, the power in the supply chain will start to shift. Where you end up with a small concentration of producers of a particular product, they do end up having more leverage in the supply chain with their customers. That, of course, comes with risks that we don't fully understand. We do need to have strong competition laws in the country.[153]

3.77Consolidation also had its downsides, however, impacting the social fabric of rural communities. Ms Germano observed that:

If we are starting to change the fabric of our regional communities and the number of people who are working, living, going to school, using hospitals et cetera because of that consolidation, that has outcomes.[154]

3.78Mr Jordan Brooke-Barnett, CEO of AUSVEG SA, told the Committee that farm consolidation was ‘both a good and a bad thing’.[155] He explained:

The good thing is you're getting economies of scale, you're having 20 smaller potato produces going into a 40 million state-of-the-art pack house. I think we're down to four or five major packing sheds. The risk you have with the expectations at the moment, the challenges of increasing costs and an inability to pass them through the supply chain, is that, if you lose one of the big players in some of these commodities, you might deal with some really significant [supply] shortages.[156]

3.79Mr Brooke-Barnett observed that ‘every year or two you get a big grower who falls over, and that potentially causes issues’.[157] Then there were floods in Ballarat and Tasmania which caused processing potato shortages. Consolidation had made markets ‘fundamentally less secure than the old market where you'd have capacity in each state and a bunch of smaller growers’.[158] He cautioned:

So we have to be really careful about eroding our grower base, particularly in the non-commodity crops, the ones that are fresh produce to market. I assume dairy will be in a similar space with a perishable product that's going direct to market. It's a real challenge, and it's something that I worry about.[159]

3.80The NFF noted that ‘there has been consolidation in the farm sector, but there is still a long tail of small and medium-sized family farms, which we're big supporters of’.[160] The NFF’s main concern was concentration in the downstream supply chain.[161] Mr Kade Denton, from the NFF, explained:

What we've seen in the last decade or two decades is that you are getting a greater concentration of firms within industries, especially within the agriculture supply chain. That's a problem for inputs and outputs in the ag sector. Specifically in the context that you've touched on, it's the opportunities and the availability of firms that farms can sell to and distribute their product, whether that's domestically or internationally. That is becoming a problem.[162]

3.81The NSW Farmers’ Association also raised concerns about ‘the concentration of our downstream processes: abattoirs, food processors, wholesalers, supermarkets’.[163] Mr John Lowe, Chair, of the Association’s Business, Economics and Trade Committee, stated:

As you go down the system to retail, that system is getting narrower and narrower all the time. So we've got a problem that if you're not happy with one buyer, you've got very little option to go anywhere else.[164]

3.82He continued:

Regardless of what the demand is at the consumer level, and at the moment we believe they're hurting quite well as well, we've got inability to move product through the chain. There's just not the capacity. And if you're a meat processor and you're getting a good return on your works, why would you try to get it through faster if that's going to change the price dynamics?[165]

3.83The NFF believed there were implications for the resilience of the supply chain in the concentration of industries, highlighting the failure of Scott's Refrigerated Logistics as an example of the risks associated with industry consolidation. Mr Mahar stated:

There are efficiencies as you get more investment in the supply chain, and that can lead to consolidation. But what we've found is that with pre-farmgate, post-farmgate and up to the retail level logistics, there are issues when things go wrong because of the consolidation. So we do want to make sure that we've got the right settings in place from a competition and legislation point of view but also the framework and investment in infrastructure that goes with the supply chain.[166]

3.84The NFF concluded that:

Existing competition laws and regulations allow supermarkets, processors, input providers and other firms to leverage their market power to the detriment of farmers. Australian farmers have little influence on the price of produce in the market. This leaves many farm businesses economically vulnerable…

The implications for the availability of food are serious. To maintain our production capacity, farm businesses must remain profitable and operate in competitive environments.[167]

The duopoly

3.85The most problematic example of industry concentration from the point of view of other actors in the supply chain is the retail duopoly of Coles and Woolworths. Mr Richard Forbes, CEO of the Independent Food Distributors Australia, argued that the level of retail concentration in Australia was unprecedented, stating ‘we have a duopoly in place that has 80 per cent of the fresh food market. The nearest two supermarkets globally have 45 per cent of the market.’[168]

3.86The impacts of this were being felt across the sector. For example, Growcom argued that ‘the highly concentrated market share in the Australian system gives the duopoly a high degree of bargaining power in commercial negotiations with suppliers’.[169] It asserted ‘that this concentrated marketplace and lack of transparency has made it increasingly difficult for growers to receive a competitive and sustainable price for their goods’.[170] It concluded that ‘the size and power disparity between these supply chain actors and farm businesses creates significant bargaining power issues and empowers anti-competitive behaviour’.[171]

3.87The Menzies Centre for Health Governance noted that the duopoly had placed producers in the position of being 'price takers' rather than 'price makers' and that this system ‘masks the true cost of food’.[172] It also allowed retailers to dictate matters ‘such as cosmetic standards for fresh produce, which is contributing to unnecessary food losses before food has even left the farm gate’.[173]

3.88A similar point was made by the University of Adelaide, which noted that the duopoly was able ‘to force the adoption of standards well before government regulations stipulate’,[174] one example being the sale of caged eggs. Coles and Woolworths planned to stop selling caged eggs by 2025, despite the national plan stipulating 2036. This gave producers ‘little choice but to follow the shopping markets’ timeline’[175]. The University observed that ‘long-term planning and strategic trend analysis is essential to negate any widespread industry and production shocks’.[176]

3.89The NSW Farmers’ Association highlighted a lack of transparency in the supply chain—the inability to discern prices and costs within the supply chain. It urged greater transparency ‘in where those prices are and what the profit margins are along that supply chain’,[177] the ability to see the ‘price spread’—the ‘difference between the retail price and the farm gate price’.[178] They noted that:

One really interesting line from the dairy market inquiry, which was about 2016, was that there is simply no correlation between the retail price and the farm gate price. There just seems to be very little link there.[179]

3.90In contrast, retailer Woolworths argued that it was often responding to competitive pressure from other retailers, telling the Committee that ‘we are constantly in a situation where we're trying to get the balance right between being competitive in a marketplace and supporting our suppliers and obviously supporting our other stakeholders’.[180] With regard to its costs, Woolworths explained:

A primary driver of shelf price inflation has been the higher wholesale prices we are paying to suppliers for goods. About 70c of every dollar spent in our stores goes to the cost of goods and transport. A further 25c goes to team wages, electricity and other operational running costs – leaving less than 5c in every dollar as our operating profit before tax and interest.[181]

Codes of conduct

3.91The response of the farm sector to market concentration in the retail sector was to call for greater market transparency and for the Food and Grocery Code of Conduct to be made mandatory. The Food and Grocery Code of Conduct is a voluntary code prescribed under the Competition and Consumer Act 2010. It was introduced to improve standards of business behaviour in the food and grocery sector, including the conduct of retailers and wholesalers towards suppliers. The code does not override existing rules in the Australian Consumer Law.[182]

3.92AUSVEG, the peak body representing vegetable growers, argued that ‘there needs to be more control and visibility over the retailer and supplier relationships and dealings to ensure a fair negotiation system’.[183] It criticised the Food and Grocery Code of Conduct for lacking teeth. AUSVEG recommended developing an Unfair Practices Provision within the Competition and Consumer Act and making the Food and Grocery Code of Conduct mandatory, as well as investing in a marketplace transparency tool for the vegetable and potato industry.[184]

3.93Queensland Fruit and Vegetable Growers (formerly Growcom) and the National Retail Association also recommended mandating the Food and Grocery Code of Conduct.[185] The NFF recommended, as a way ‘to safeguard Australian farmers from unfair trading practices and enhance the competitiveness of perishable food markets’,[186] introducing a ‘Mandatory Code of Conduct for all commodities examined by the ACCC’.[187] It also recommended:

• An amendment of section 21 of the Australian Competition and Consumer Act 2010 to specify characteristics which determine whether a behaviour is unconscionable.
• Prohibitions on the use of unfair contract terms be strengthened.
• That the ACCC consider instituting a regular review of perishable food supply chains.[188]
  94. The NFF argued that the issue of market concentration went beyond the supermarkets—that mandatory codes should cover any situation where there are large corporations or large players that have significant market concentration.[189]
  95. For its part, Woolworths note that its dealings with suppliers are strictly governed by the Food and Grocery Code of Conduct under the Competition and Consumer Act 2010, and that ‘all supplier cost increase requests are assessed carefully on their merits – balancing the need to offer affordable groceries to households while maintaining mutually viable supplier relationships’.[190]

Food innovation

Opportunities for value adding

3.96In its report Sustaining Australia: Food and Grocery Manufacturing 2030, the Australian Food and Grocery Council highlighted Australia’s transition from being a net exporter of high value-added food in 2001, to a net importer of high value-added food today. It observed that ‘this is in part the result of a loss of competitiveness, as well as consumer preferences for certain imported products’.[191]

3.97The export of raw produce and the import of processed material made from Australian produce was seen as a distinct weakness in our food system. The University of Sydney noted, for example, ‘that alternate protein flours used in the alternative food sector are all imports from external countries, fetching up to $8,000 per tonne of product’,[192] while Australia’s raw grain used to make plant flours ‘often sells for less than $600 per tonne’. Australia produces around 2.5 million tonnes of pulse seeds but still relies solely on imported pulse flours to produce foods in Australia. The University suggested that ‘our ability to maximise value will rely on onshore value enhancement prior to export of finalised products that attract much more value’.[193] It argued that:

The melding of primary production with manufacturing and value-added opportunities is the key to a more productive, profitable and resilient agricultural sector. Processes need to be in place to allow for the transport of primary goods, their processing and manufacturing into foods, and the coordinated distribution and sale to consumers in Australia and overseas.[194]

3.98The evidence presented to the Committee suggested that there were significant opportunities for value-adding in food production in Australia. Through its Northern Australia Food Technology Innovation project (NAFTI), Charles Darwin University ‘is investigating innovations in food processing and value-adding of agricultural produce in northern Australia’.[195] The focus is on shelf-stable foods using novel food processing technologies, with a view to achieving ‘regional value capture from low-value or out-of-specification agri-food produce’.[196]

3.99In Tasmania, research is looking at how produce that does not meet industry specification for sale can be value-added, such as turning fruit into beverages. The fruit industry, in particular, is investing in this space.[197]

3.100The Alternative Proteins Council suggested that with support, the alternative proteins sector had ‘the potential to contribute to food security in Australia and globally and economic growth’,[198] by ‘offering farmers a complementary addition to Australia’s food system, diversification with value-add in Australia and increasing choice to consumers to balance their dietary protein intake’.[199] It noted that currently plant protein ingredients are extracted from crops already grown in Australia, such as legumes, pulses and grains. It observed that ‘a huge opportunity exists to invest in local infrastructure with processing capacity enabling the value-add onshore’.[200] These value-added ingredients would in turn ‘supply local plant-based alternative meat and non-dairy product manufacturing without the need to reimport ingredients processed offshore’.[201] The onshoring of ‘processing and production will support new business, create jobs while minimising supply chain risk and offer better environmental outcomes’.[202]

3.101Mr Michael Toby, of fruit and vegetable growers Costa Group, cautioned against getting too carried away with opportunities for value adding. He stated:

People often say, 'Why don't you turn waste or excess product into value-add goods, et cetera?' The harsh reality is that most fresh produce growers are growing their product to sell as a fresh product because that is the way they maximise their pricing and returns. So there is little in the way of economic incentive or benefit to then try to set up some sort of structure and operation to make value-add product.[203]

New industries

Alternative proteins

3.102Alternative proteins have been touted as a revolutionary innovation in food production. They consist of meat and dairy alternatives produced via plant-based proteins, cellular cultivation or precision fermentation.[204]

3.103Plant-based protein technology transforms plant protein into meat substitutes without going through the animal. For example, v2food converted soy protein ingredients into plant-based protein foods such as mince, burgers and sausages, distributing their products through existing meat supply chains.[205] v2food highlighted the sustainability of their production methods, observing that ‘the production of beef requires 20 times the land and water resources of plant protein crops such as soy and other legumes’.[206] For v2food, the next phase of industry development was the switching to Australian-made and grown soymeal, processed locally, in collaboration with Australian grain growers, who would continue to supply ‘our livestock sector with stockfeed products (like soymeal and molasses), while also supplying the domestic and global consumer market with plant protein foods’.[207]

3.104Cellular cultivation is the growing of animal cells outside of animal bodies—cultured meat. The process takes animal cells and grows them in tanks, ‘similar to beer tanks’,[208] where they are ‘fed the same things cells in a body crave, including sugars, salts, and amino acids’.[209] According to Vow, a Sydney-based company developing cultured meat products, cultured meat can be grown anywhere, in any season, using renewable energy, ‘greatly reducing the carbon footprint of new sources of food’.[210] Vow recommended:

• Supporting the development of domestic supply chains to enable biomanufacturing.
• Building up skills in biotechnology.
• Aligning policies with climate targets, prioritising sustainability and resilience goals and ‘specifically supporting the expansion of biomanufacturing facilities in Australia’.[211]
  105. Precision fermentation is a process that produces complex organic molecules using programmed micro-organisms.[212] Eden Brew is a company that uses precision fermentation to produce animal-free dairy. It noted that its production methods were capable of producing nutritionally superior milk products using less land and water and producing less emissions and waste. The key challenges for precision fermentation were:
• Research and development funding.
• Low fermentation capacity.
• Access to skilled labour/niche expertise.
• Access to feedstock.[213]
  106. Eden Brew sought support for research and development funding (including through tax incentives), development of fermentation and processing capacity, skills development, and policy support from governments.[214]
  107. According to the Alternative Proteins Council (APC), alternative proteins will improve food security for Australia ‘by diversifying the protein supply with a wider variety of alternative protein products that are complementary to traditional proteins’.[215] It would involve ‘building sovereign manufacturing capability, allowing value-add for Australian farmers and industry’,[216] and reduce reliance on imports of critical ingredients such as plant protein concentrates. Alternative proteins would be ‘sustainable, highly scalable and reliable’,[217] and offer consumers ‘new core foods’,[218] ensuring access to nutritious diets.[219]
  108. Plant protein products would also provide opportunities for Australian farmers ‘to supply their produce into a value-added domestic supply chain, rather than into the more volatile global commodity markets’.[220] The APC described this as ‘particularly beneficial given that more than half of the value of Australian agricultural production comes from cropping’.[221]
  109. Environmental benefits of alternative proteins included significant reductions in water use per kilo of protein, and vastly reduced emissions.[222] The APC argued that:

To meet climate and industrial output goals, we need additional sources of protein production on top of what today's industry can produce to secure our food systems for domestic consumption and international trade.[223]

3.110The APC urged governments to support the development of the alternative proteins industry, including through investment in research and development, workforce investment, support for the food safety regular FSANZ, and investment in industry infrastructure.[224] Food Frontier identified the domestic processing capacity as ‘a significant bottleneck’,[225] stating:

It is estimated by industry that Australia will need at least 10 of these processing facilities to meet the projected global demand for locally grown plant proteins, and could support as many as 20 facilities. Local industry sources estimate that $30 billion in processing infrastructure is required to be built globally in order to meet the current demand for processed plant proteins.[226]

3.111The APC also recommended ‘an over overarching plan to drive investment in alternative proteins’,[227] stating:

A coordinated alternative proteins plan should be part of an Australian food securityconsideration and policy framework that outlines the national strategic position toensure food security for the future.[228]

Protected cropping

3.112Protected cropping, the growing of crops in controlled environments such as greenhouses, has a significant role to play in Australia’s food security. Bayer Australia observed that ‘protected growing environments have a critical role in meeting increased food demand by providing year-round affordable access to fresh fruits and vegetables using less land and resources’.[229] It noted that protected cropping ‘can achieve optimal growing conditions through greater control over light, temperature, moisture, pest and disease management, as well as greater efficiency of natural resources such as water, fertilisers, and crop protection products’.[230] It suggested that as protected cropping would be a key component of future food security, ‘government could consider mechanisms to assist farmers in incorporating water- and energy-efficient on-farm infrastructure to protect crops under increased threat of adverse weather’.[231]

3.113La Trobe University also highlighted the benefits of protected cropping. It allowed farmers ‘to optimise harvest times, reduce nutrient and watering regimes and respond quickly to pathogens, viruses and insects’.[232] The result was ‘a healthier, more sustainable, and productive crop’.[233] La Trobe asserted that there are significant opportunities for protected cropping across Australia ‘and particularly in the Victorian food bowl incorporating Shepparton, Bendigo, Mildura and Swan Hill’.[234] It noted that ‘the protected cropping industry is the fastest growing food producing sector in Australia, with a “farm-gate” value of $1.3 billion and currently employs more than 10,000 people’.[235]

3.114The Australian Fresh Produce Alliance (AFPA) also promoted protected cropping, including opportunities ‘for more effective rain harvesting and recycling’, which ‘reduced water costs and improved drought resilience’.[236] AFPA noted that over time, many farmers of products including tomatoes, have moved production from field to protected cropping’.[237] However, that transition was now threated by ‘skyrocketing input costs of power and gas’.[238]

3.115The Committee visited the Northern Adelaide Plains Food Region, an area of intensive horticultural production. It was described by Mr Jordan Brooke-Barnett, CEO of AUSVEG SA, as the largest protected cropping district in the southern hemisphere, producing in excess of $700 million per annum retail value of tomatoes, capsicums and other vegetable crops.[239]

3.116The Committee also visited P’Petual Holdings, an industry pioneer in greenhouse farming and one of the largest greenhouse vegetable growers in Australia. It operates 12 hectares (120,000m2) of greenhouses utilising the latest specialised equipment, including a Climate Control Computer which controls the environmental factors during growing such as heating, fogging, irrigation, plant nutrition requirements and shading in the greenhouses. P’Petual also use an intensive Integrated Pest Management (IPM) program that uses beneficial bugs and organisms to control pests and stimulate healthy plant growth, minimising pesticide use. It uses water recycling, by capturing, sterilising and recirculating water not used by plants. P’Petual have invested in a CO2 capture facility which catches the CO2 produced from their heating system, thereby reducing carbon emissions. Once the CO2 is captured, it is piped back into the greenhouse for increased plant growth and production.[240]

3.117During the visit the Committee discussed some of the challenges for protected cropping, including the impact of flood and storms, labour shortages, retail competition and rising energy prices.

Vertical farming

3.118Greenspace ESG Pty Limited is a vertical farming operation based in Sydney but also operating elsewhere.[241] Mr Nicolas Fox, Greenspace’s Microfarm Operations Manager, explained their model:

Greenspace builds vertical hydroponic farms within underutilised spaces within cities or urban spaces, and then networked around those larger macro farms we have a smaller network of micro farms, which are small hydroponic cabinets that sustain plants that we place into there. The whole model is designed around growing produce sustainably and then distributing that produce within the local community, providing the local community with sustainable produce, living produce and highly nutritious produce.[242]

3.119Committee Members were given the opportunity to visit Greenspace’s operations at Darling Harbour in Sydney. The central facility was a basement space in an office building that produced a range of microgreens in a controlled environment (the macrofarm), which were then distributed to cabinets located in client buildings (microfarms) where they could be directly accessed by clients.

3.120The Greenspace system is able to guarantee the production and distribution of produce in an enclosed, climate-controlled environment, 365 days a year, with no impact from weather, and minimal impact from pests and diseases.[243] The system uses between 70 per cent and 95 per cent less water than traditional farming and uses less power than an office space. Mr Fox observed that:

What we do to address that is the building where our macro farm is built is a six-star rated energy building. It's using renewable energy or it's offsetting the energy costs, going into sustainable business and so on.[244]

3.121The key to the Greenspace model is it reduces food transport. Its goal ‘is to have a macro farm and then surrounding that macro farm, within around 500 metres, we have a number of smaller micro farms that are in restaurants, offices or retail spaces and that provides local produce to that local community’.[245] This both reduced emissions and maintained the freshness of the food. According to Greenspace, this model contributed to food security, by ‘making a system that is actually truly sustainable, and making something that we know is climate positive instead of being climate negative and something that's taking away from the local environment’.[246]

3.122Another example of Vertical farming visited by the Committee was the Epicurean Food Group exotic mushroom farm and processing facility at the former General Motors Holden site at Elizabeth, South Australia. The Epicurean operation is repurposing the former factory buildings as a high-tech mushroom farm and food production facility. It is designed to produce more than 20,000 tonnes of exotic mushrooms and mushroom products each year. A vertically integrated facility, it manages all operations in one location, from growing fungi in a lab to turning second-grade and surplus mushrooms into burgers using a high-tech commercial kitchen. The facility, when completed, will provide a consistent and valuable supply of locally grown premium mushrooms to supermarkets and restaurants which currently rely heavily on imported stock, with about 85 per cent of Australia’s exotic mushroom supply coming from overseas. The operation will eventually include the production of mycoprotein (used in alternative meats) and mycelium (used in leather goods).

3.123The benefits of vertical farming were noted by Professor Rachel Burton, of the University of Adelaide. Vertical farms allowed you to control the growing conditions of whatever you grew—for example, in the Netherlands, where ‘they grow all their strawberries indoors because they can control the conditions’.[247] But it was energy intensive, requiring research into efficient light sources and renewable energy to power it.[248]

3.124Mr Michael Claessens, Executive Director of the Canberra Region Food Collaborative, highlighted the potential issues ‘around planning, legislation et cetera that prevent a lot of these things happening’. He stated:

At the time that planning regulations and legislation were developed, they didn't account for—well, certainly it would like to prevent piggeries being set up in CBDs, so you zone things. But it couldn't take account of modern technology like vertical farms, among other things. Intense agriculture, for instance, is restricted in the ACT. Technically, a vertical farm would be difficult to set up in a basement near the CBD somewhere, whereas in other cities around the world they've started to make those changes.[249]

Committee Comment

3.125Australia is a food secure nation. It produces far more than it consumes across a wide variety of food commodities, and that is likely to remain the case for decades to come, climate change and population growth notwithstanding. Nonetheless, there are challenges facing the nation regarding food security. Perhaps the most significant challenge is that, even though Australia is undoubtedly food secure in aggregate, there are significant pockets of food insecurity within the Australian community. This is a challenge that governments and the community must address. This issue will be dealt with in more detail in Chapter 7.

3.126There are also significant challenges around the cost and availability of inputs to food production and distribution, such as fuel, energy, labour and fertiliser. Without careful management, these challenges around the cost and availability of inputs have the capacity to undermine food security, at the very least by driving up prices and making food less accessible, at worst by potentially undermining whole sectors of industry. These challenges will be addressed in more detail in Chapter 4.

3.127There are two production sectors that the Committee considers need particular attention from government. The first is dairy, where the continued stagnation or decline in the production of raw milk suggests an industry in crisis. Australia needs a strong dairy industry for nutritional and food security. As part of the comprehensive National Food Plan recommended in Chapter 2, a specific strategy for reinvigorating the Australian dairy industry should be developed, one which lifts profitability and production while addressing the economic and environmental sustainability of the industry, and which identifies the resources and pathways required to achieve this.

3.128The second sector of concern is the seafood sector. Australia is heavily dependent on imports to meet its demand for seafood, while having potentially rich sources of untapped seafood resources available to it. As part of the National Food Plan, a specific strategy for expanding the seafood sector should be developed, one which optimises the use of resources while ensuring the economic and environmental sustainability of the industry.

3.129The Committee highlights the importance of exports to Australia’s and the world’s food security. While Australia cannot feed the world, we play an important part in the food security of other nations, particularly in the Asia-Pacific region. Our exports quite literally feed millions of people. In addition, our exports play an important role in the domestic market. Exports provide economies of scale which promote efficiencies in production. They provide outlets for excess production. They allow for product diversification and innovation to meet the needs of different markets. They also provide supply chains which can be reversed in the case of crisis, such as severe drought.

3.130A critical factor in food security is the viability of the farm sectors. Farm businesses cannot provide food for the rest of Australia if they are not viable. There are a significant range of factors that can affect farm and sector viability, including input costs (see Chapter 4), supply chain disruptions and waste management (see Chapter 5), and issues around climate change and biosecurity (see Chapter 6). A key issue facing the farm sector is its relationship with other actors in the supply chain, particularly the supermarket duopoly. There are clear imbalances in market power between the farm sector and other sections of the supply chain, rendering our growers ‘price takers’ rather than ‘price makers’. Theoretically this imbalance could be corrected through consolidation within the farm sector, but this presents risks and challenges of its own, not least being the hollowing out of rural communities.

3.131While the Committee does not wish to demonise the conduct of any players within the food supply chain, and acknowledges the good work done by Woolworths and Coles to maintain the supply of food and groceries during the COVID-19 pandemic and recent weather-related crises, the Committee is satisfied that greater oversight of market relationships within the food chain is required. The Committee supports: making the Food and Grocery Code of Conduct mandatory; a review of the Competition and Consumer Act 2010 to ensure fair practices between different actors in the food supply chain and prevent unconscionable conduct; and the institution of regular reviews of perishable food supply chains by the ACCC.

3.132The Committee considers that government and industry should pursue opportunities for value adding within the food supply chain, both as a food security measure and an economic development imperative. The Committee proposes that, as part of the National Food Plan, a specific strategy for expanding innovation and value adding in food production be pursued, with a view to enhancing opportunities for Australian industry and enhancing food security.

3.133The Committee has been impressed with the potential of new industries—such as alternative proteins, protected cropping and vertical farming—to enhance food security while promoting economic development and increased employment. The Committee believes that all levels of government should be active in finding ways to support these new industries, including innovations in urban planning.

3.134The Committee recommends that the Australian Government, as part of the National Food Plan, and in conjunction with industry, develop a specific strategy for reinvigorating the Australian dairy industry, one which lifts profitability and production while addressing the economic and environmental sustainability of the industry, and identifies the resources and pathways required to achieve this.

3.135The Committee recommends that the Australian Government, as part of the National Food Plan, and in conjunction with industry, develop a specific strategy for expanding the seafood sector, one which optimises the use of resources while ensuring the economic and environmental sustainability of the industry.

3.136The Committee recommends that the Australian Government:

• make the Food and Grocery Code of Conduct mandatory;
• review the Competition and Consumer Act 2010 to ensure fair practices between different actors in the food supply chain and prevent unconscionable conduct; and
• institute regular Australian Competition and Consumer Commission reviews of perishable food supply chains.

3.137The Committee recommends that the Australian Government, as part of the National Food Plan, develop a specific strategy for expanding innovation and value adding in food production, with a view to enhancing commercial opportunities for Australian industry and enhancing food security.

3.138The Committee recommends that the Australian Government, as part of the National Food Plan, develop mechanisms to promote innovation in food production.

Footnotes

[1]ABARES 2020, Australian food security and the Covid-19 pandemic, Australian Bureau of Agricultural and Resource Economics and Sciences, Canberra.

[2]Global Food Security Index 2022, <Global Food Security Index (GFSI) (economist.com)>. Accessed 9 October 2023.

[3]National Farmers’ Federation, Submission 103, p. 6.

[4]University of Western Australia, Submission 4, p. 1.

[5]Dr Rachel Carey, Senior Lecturer in Food Systems, School of Agriculture, Food and Ecosystem Sciences, University of Melbourne, Committee Hansard, 4 August 2023, p. 8.

[6]Dr Rachel Carey, Senior Lecturer in Food Systems, School of Agriculture, Food and Ecosystem Sciences, University of Melbourne, Committee Hansard, 4 August 2023, p. 8.

[7]Dr Rachel Carey, Senior Lecturer in Food Systems, School of Agriculture, Food and Ecosystem Sciences, University of Melbourne, Committee Hansard, 4 August 2023, p. 8.

[8]Ms Caitlin McConnel, Committee Hansard, 10 July 2023, p. 12.

[9]Dr Steven Lapidge, Chief Executive Officer, Fight Food Waste Ltd, Committee Hansard, 20 April 2023, p. 21.

[10]Dr Steven Lapidge, Chief Executive Officer, Fight Food Waste Ltd, Committee Hansard, 20 April 2023, p. 22.

[11]Hogan, L 2017, Food demand in Australia: Trends and food security issues, ABARES Research Report 17.7, Canberra.

[12]Hogan, L 2017, Food demand in Australia: Trends and food security issues, ABARES Research Report 17.7, Canberra.

[13]Hogan, L 2018, Food demand in Australia: Trends and issues 2018, ABARES Research Report 18, Canberra, pp. 1–2.

[14]Australian Dairy Farmers Ltd, Submission 67, p. 10; Australian Dairy Products Federation, Submission 136, p. 21.

[15]Australian Dairy Farmers Ltd, Submission 67, p. 11.

[16]Australian Dairy Farmers Ltd, Submission 67, p. 5.

[17]Australian Dairy Farmers Ltd, Submission 67, p. 14.

[18]Australian Dairy Farmers Ltd, Submission 67, p. 5.

[19]Australian Dairy Products Federation, Submission 136, p. 13.

[20]Australian Dairy Farmers Ltd, Submission 67, p. 11.

[21]Australian Dairy Farmers Ltd, Submission 67, p. 10.

[22]Australian Dairy Products Federation, Submission 136, p. 8.

[23]Australian Dairy Products Federation, Submission 136, p. 7.

[24]Australian Dairy Farmers Ltd, Submission 67, p. 10.

[25]Australian Dairy Products Federation, Submission 136, p. 8.

[26]Australian Dairy Farmers Ltd, Submission 67, p. 13.

[27]Australian Dairy Farmers Ltd, Submission 67, p. 13.

[28]Australian Dairy Products Federation, Submission 136, p. 21.

[29]Australian Dairy Products Federation, Submission 136, pp. 10, 22.

[30]Australian Dairy Products Federation, Submission 136, p. 10; Australian Dairy Farmers Ltd, Submission 67, p. 13.

[31]Australian Dairy Products Federation, Submission 136, p. 10.

[32]Australian Dairy Products Federation, Submission 136, p. 13.

[33]Australian Dairy Products Federation, Submission 136, p. 21.

[34]Red Meat Advisory Council, Submission 117, p. 2.

[35]Red Meat Advisory Council, Submission 117, p. 3.

[36]Red Meat Advisory Council, Submission 117, p. 3.

[37]Australian Livestock Exporters’ Council, Submission 57, p. 1.

[38]Red Meat Advisory Council, Submission 117, p. 2.

[39]Red Meat Advisory Council, Submission 117, p. 3.

[40]Australian Livestock Exporters’ Council, Submission 57, p. 1.

[41]Meat & Livestock Australia, Submission 115, p. 2; Red Meat Advisory Council, Submission 117, p. 2.

[42]Red Meat Advisory Council, Submission 117, p. 6.

[43]Red Meat Advisory Council, Submission 117, pp. 3–5.

[44]Australian Chicken Meat Federation, Submission 51, p. 3.

[45]Ingham’s Group, Submission 137, p. 8.

[46]Ingham’s Group, Submission 137, p. 8.

[47]Ingham’s Group, Submission 137, p. 7.

[48]Australian Chicken Meat Federation, Submission 51, p. 4.

[49]Australian Chicken Meat Federation, Submission 51, p. 3.

[50]Australian Chicken Meat Federation, Submission 51, p. 3.

[51]Ingham’s Group, Submission 137, p. 8.

[52]Australian Chicken Meat Federation, Submission 51, p. 7.

[53]Australian Chicken Meat Federation, Submission 51, p. 6.

[54]Australian Chicken Meat Federation, Submission 51, p. 6.

[55]Australian Chicken Meat Federation, Submission 51, p. 6.

[56]Australian Chicken Meat Federation, Submission 51, p. 7.

[57]Ingham’s Group, Submission 137, pp. 5, 10–12.

[58]Egg Farmers of Australia, Submission 14, pp. 5–6.

[59]Egg Farmers of Australia, Submission 14, p. 6.

[60]Egg Farmers of Australia, Submission 14, p. 6.

[61]Egg Farmers of Australia, Submission 14, p. 6.

[62]Australian Pork Limited, Submission 138, p. 7.

[63]Australian Pork Limited, Submission 138, p. 7.

[64]Australian Pork Limited, Submission 138, p. 8.

[65]Australian Pork Limited, Submission 138, p. 11.

[66]Australian Pork Limited, Submission 138, p. 3.

[67]Australian Pork Limited, Submission 138, p. 8.

[68]Australian Pork Limited, Submission 138, p. 8. See also https://www.industry.gov.au/sites/default/files/2022-06/iga_evaluation_of_country_of_origin_labelling_reforms.pdf>. Accessed 13 October 2023.

[69]Seafood Industry Australia, Submission 125, p. 2.

[70]Fisheries Research and Development Corporation, Submission 75, p. 10.

[71]Seafood Industry Australia, Submission 125, p. 2.

[72]Seafood Industry Australia, Submission 125, p. 2.

[73]Seafood Industry Australia, Submission 125, p. 3.

[74]Fisheries Research and Development Corporation, Submission 75, p. 11.

[75]Seafood Industry Australia, Submission 125, p. 3.

[76]Seafood Industry Australia, Submission 125, p. 6.

[77]Fisheries Research and Development Corporation, Submission 75, p. 9.

[78]Seafood Industry Australia, Submission 125, p. 3.

[79]Fisheries Research and Development Corporation, Submission 75, p. 9.

[80]Fisheries Research and Development Corporation, Submission 75, p. 32.

[81]Seafood Industry Australia, Submission 125, p. 2.

[82]Seafood Industry Australia, Submission 125, p. 6.

[83]Seafood Industry Australia, Submission 125, p. 6; Fisheries Research and Development Corporation, Submission 75, p. 13.

[84]Seafood Industry Australia, Submission 125, p. 6.

[85]Seafood Industry Australia, Submission 125, p. 12.

[86]Seafood Industry Australia, Submission 125, p. 20.

[87]Seafood Industry Australia, Submission 125, p. 23.

[88]Seafood Industry Australia, Submission 125, p. 25.

[89]Seafood Industry Australia, Submission 125, p. 21.

[90]Seafood Industry Australia, Submission 125, p. 9.

[91]GrainGrowers, Submission 61, p. 6.

[92]Grain Trade Australia, Submission 96, p. 1.

[93]Grain Trade Australia, Submission 96, p. 1.

[94]Grain Producers Australia, Submission 129, p. 2.

[95]GrainGrowers, Submission 61, p. 5.

[96]Grain Trade Australia, Submission 96, p. 1.

[97]Grain Producers Australia, Submission 129, pp. 2–3.

[98]GrainGrowers, Submission 61, p. 6.

[99]Grain Trade Australia, Submission 96, p. 3.

[100]Grain Producers Australia, Submission 129, p. 2.

[101]GrainGrowers, Submission 61, pp. 7–11.

[102]GrainGrowers, Submission 61, p. 10.

[103]GrainGrowers, Submission 61, p. 10.

[104]Hort Innovation, Submission 105, p. 2.

[105]Hort Innovation, Submission 105, p. 2.

[106]Hort Innovation, Submission 105, p. 2.

[107]Hort Innovation, Submission 105, p. 3.

[108]Hort Innovation, Submission 105, p. 2.

[109]Hort Innovation, Submission 105, p. 3.

[110]AUSVEG, Submission 99, p. 3.

[111]AUSVEG, Submission 99, p. 18.

[112]AUSVEG, Submission 99, p. 8.

[113]AUSVEG, Submission 99, pp. 9–10; Growcom, Submission 130, p. 9.

[114]Hort Innovation, Submission 105, p. 5; Growcom, Submission 130, pp. 7, 11.

[115]AUSVEG, Submission 99, pp. 11–15; Growcom, Submission 130, p. 8.

[116]Hort Innovation, Submission 105, p. 7; AUSVEG, Submission 99, pp. 15–16; Growcom, Submission 130, p. 9.

[117]Hort Innovation, Submission 105, p. 7; AUSVEG, Submission 99, p. 17.

[118]Australian Food and Grocery Council, Submission 128, p. 2.

[119]Australian Food and Grocery Council, Submission 128, Attachment 1, Sustaining Australia: Food and Grocery Manufacturing 2030, p. 4.

[120]Australian Food and Grocery Council, Submission 128, p. 17.

[121]Australian Food and Grocery Council, Submission 128, p. 16.

[122]Australian Food and Grocery Council, Submission 128, p. 17.

[123]Australian Food and Grocery Council, Submission 128, p. 13.

[124]Australian Food and Grocery Council, Submission 128, p. 19.

[125]Australian Food and Grocery Council, Submission 128, p. 9.

[126]Australian Food and Grocery Council, Submission 128, p. 20.

[127]Australian Food and Grocery Council, Submission 128, p. 20.

[128]Mr Tony Mahar, Chief Executive Officer, National Farmers’ Federation, Committee Hansard, 15 February 2023, p. 5.

[129]Mr Kade Denton, General Manager, Trade and Economics, National Farmers’ Federation, Committee Hansard, 15 February 2023, p. 5.

[130]Ms Victoria Taylor, Chair, Governance Committee, Centre for Entrepreneurial Agri-Technology, Committee Hansard, 24 March 2023, p. 21.

[131]Professor Tony Bacic, Director, La Trobe Institute for Sustainable Agriculture and Food, La Trobe University, Committee Hansard, 4 August 2023, p. 2.

[132]Australian Food Sovereignty Alliance, Submission 147, p. 24.

[133]Ms Claire McClelland, Chief Executive Officer, Australian Fresh Produce Alliance, Committee Hansard, 26 May 2023, p. 20.

[134]Ms Claire McClelland, Chief Executive Officer, Australian Fresh Produce Alliance, Committee Hansard, 26 May 2023, p. 20.

[135]Ms Claire McClelland, Chief Executive Officer, Australian Fresh Produce Alliance, Committee Hansard, 26 May 2023, p. 20.

[136]Australian Fresh Produce Alliance, Submission 135, p. 2.

[137]Costa Group, Submission 47, pp. 6–7.

[138]Costa Group, Submission 47, pp. 6–7.

[139]National Farmers’ Federation, Submission 103, p. 10.

[140]National Farmers’ Federation, Submission 103, p. 10.

[141]National Farmers’ Federation, Submission 103, p. 18.

[142]Department of Agriculture, Fisheries and Forestry, Submission 116, p. 8.

[143]Department of Agriculture, Fisheries and Forestry, Submission 116, p. 8.

[144]National Farmers’ Federation, Submission 103, p. 24.

[145]Mr Tony Mahar, Chief Executive Officer, National Farmers’ Federation, Committee Hansard, 15 February 2023, p. 1.

[146]Mr John Lowe, Chair, Business, Economics and Trade Committee, NSW Farmers Association, Committee Hansard, 6 July 2023, p. 11.

[147]Mr John Lowe, Chair, Business, Economics and Trade Committee, NSW Farmers Association, Committee Hansard, 6 July 2023, p. 11.

[148]Mr John Lowe, Chair, Business, Economics and Trade Committee, NSW Farmers Association, Committee Hansard, 6 July 2023, p. 11.

[149]Victorian Farmers Federation, Submission 110, p. 2.

[150]Ms Emma Germano, President, Victorian Farmers Federation, Committee Hansard, 9 August 2023, p. 8.

[151]NSW Farmers’ Association, Submission 143, p. 2.

[152]Ms Emma Germano, President, Victorian Farmers Federation, Committee Hansard, 9 August 2023, p. 5

[153]Ms Emma Germano, President, Victorian Farmers Federation, Committee Hansard, 9 August 2023, p. 5

[154]Ms Emma Germano, President, Victorian Farmers Federation, Committee Hansard, 9 August 2023, p. 5

[155]Mr Jordan Brooke-Barnett, Chief Executive Officer, AUSVEG SA, Committee Hansard, 20 April 2023, p. 18.

[156]Mr Jordan Brooke-Barnett, Chief Executive Officer, AUSVEG SA, Committee Hansard, 20 April 2023, p. 18.

[157]Mr Jordan Brooke-Barnett, Chief Executive Officer, AUSVEG SA, Committee Hansard, 20 April 2023, p. 18.

[158]Mr Jordan Brooke-Barnett, Chief Executive Officer, AUSVEG SA, Committee Hansard, 20 April 2023, p. 18.

[159]Mr Jordan Brooke-Barnett, Chief Executive Officer, AUSVEG SA, Committee Hansard, 20 April 2023, p. 18.

[160]Mr Tony Mahar, Chief Executive Officer, National Farmers Federation, Committee Hansard, 15 February 2023, p. 3.

[161]Mr Tony Mahar, Chief Executive Officer, National Farmers Federation, Committee Hansard, 15 February 2023, p. 3.

[162]Mr Kade Denton, General Manager, Trade and Economics, National Farmers Federation, Committee Hansard, 15 February 2023, p. 3.

[163]Mr John Lowe, Chair, Business, Economics and Trade Committee, NSW Farmers Association, Committee Hansard, 6 July 2023, p. 13.

[164]Mr John Lowe, Chair, Business, Economics and Trade Committee, NSW Farmers Association, Committee Hansard, 6 July 2023, p. 13.

[165]Mr John Lowe, Chair, Business, Economics and Trade Committee, NSW Farmers Association, Committee Hansard, 6 July 2023, p. 13.

[166]Mr Tony Mahar, Chief Executive Officer, National Farmers’ Federation, Committee Hansard, 8 March 2023, p. 4.

[167]National Farmer’s Federation, Submission 103, p. 19.

[168]Mr Richard Forbes, Chief Executive Officer, Independent Food Distributors Australia, Committee Hansard, 8 March 2023, p. 6.

[169]Growcom, Submission 130, p. 9.

[170]Growcom, Submission 130, p. 9.

[171]Growcom, Submission 130, p. 9.

[172]Menzies Centre for Health Governance, Submission 41, p. 5.

[173]Menzies Centre for Health Governance, Submission 41, p. 5.

[174]University of Adelaide, Submission 38, p. 1

[175]University of Adelaide, Submission 38, p. 1

[176]University of Adelaide, Submission 38, p. 1.

[177]Ms Kathryn Rankin, Acting Head of Policy and Advocacy, NSW Farmers Association, Committee Hansard, 6 July 2023, p. 13.

[178]Mr Brendan O’Keeffe, Economist, NSW Farmers Association, Committee Hansard, 6 July 2023, p. 13.

[179]Mr Brendan O’Keeffe, Economist, NSW Farmers Association, Committee Hansard, 6 July 2023, p. 13.

[180]Mr Paul Harker, Chief Commercial Officer, Woolworths Supermarkets, Woolworths Group, Committee Hansard, 16 June 2023, p. 16.

[181]Woolworths Group, Submission 139, p. 9.

[182]ACCC, < https://www.accc.gov.au/business/industry-codes/food-and-grocery-code-of-conduct>. Accessed 10 October 2023.

[183]AUSVEG, Submission 99, p. 10.

[184]AUSVEG, Submission 99, p. 10.

[185]Growcom, Submission 130, p. 9; National Retail Association, Submission 141, p. 4.

[186]National Farmer’s Federation, NFF Competition Policy, November 2020, p. 2.

[187]National Farmer’s Federation, NFF Competition Policy, November 2020, p. 2.

[188]National Farmer’s Federation, NFF Competition Policy, November 2020, p. 2.

[189]Mr Kade Denton, General Manager, Trade and Economics, National Farmers Federation, Committee Hansard, 15 February 2023, p. 7.

[190]Woolworths Group, Submission 139, p. 9.

[191]Australian Food and Grocery Council, Submission 128, Attachment 1, Sustaining Australia: Food and Grocery Manufacturing 2030, p. 11.

[192]University of Sydney, Submission 152, p. 3.

[193]University of Sydney, Submission 152, p. 3.

[194]University of Sydney, Submission 152, p. 5.

[195]Charles Darwin University, Submission 168, p. 5

[196]Charles Darwin University, Submission 168, p. 5.

[197]Mrs Caroline Brown, Assistant Director, AgriGrowth Tasmania, Agriculture, Forestry and Water Strategic Business Unit, Department of Natural Resources and Environment, Tasmania, Committee Hansard, 12 April 2023, p. 5.

[198]Alternative Proteins Council, Submission 123, p. 8.

[199]Alternative Proteins Council, Submission 123, p. 8.

[200]Alternative Proteins Council, Submission 123, pp. 10–11.

[201]Alternative Proteins Council, Submission 123, pp. 10–11.

[202]Alternative Proteins Council, Submission 123, pp. 10–11.

[203]Mr Michael Toby, Corporate Affairs Manager, Costa Group Holdings Ltd, Committee Hansard, 4 August 2023, p. 18.

[204]Alternative Proteins Council, Submission 123, p. 1.

[205]v2food, Submission 119, p. 27.

[206]v2food, Submission 119, p. 4.

[207]v2food, Submission 119, p. 28.

[208]Vow, Submission 35, p. 2.

[209]Vow, Submission 35, p. 2.

[210]Vow, Submission 35, p. 2.

[211]Vow, Submission 35, p. 3.

[212]Eden Brew, Submission 79, p. 2.

[213]Eden Brew, Submission 79, p. 3.

[214]Eden Brew, Submission 79, p. 4.

[215]Mrs Kirsten Grinter, Chairperson, Alternative Proteins Council, Committee Hansard, 23 June 2023, p. 21.

[216]Mrs Kirsten Grinter, Chairperson, Alternative Proteins Council, Committee Hansard, 23 June 2023, p. 21.

[217]Mrs Kirsten Grinter, Chairperson, Alternative Proteins Council, Committee Hansard, 23 June 2023, p. 21.

[218]Mrs Kirsten Grinter, Chairperson, Alternative Proteins Council, Committee Hansard, 23 June 2023, p. 21.

[219]Mrs Kirsten Grinter, Chairperson, Alternative Proteins Council, Committee Hansard, 23 June 2023, p. 21.

[220]Alternative Proteins Council, Submission 123, p. 7.

[221]Alternative Proteins Council, Submission 123, p. 7.

[222]Alternative Proteins Council, Submission 123, p. 11.

[223]Alternative Proteins Council, Submission 123, p. 12.

[224]Alternative Proteins Council, Submission 123, p. 13.

[225]Food Frontier, Submission 71, p. 6.

[226]Food Frontier, Submission 71, p. 7.

[227]Alternative Proteins Council, Submission 123, p. 13.

[228]Alternative Proteins Council, Submission 123, p. 13.

[229]Bayer Australia, Submission 100, p. 9.

[230]Bayer Australia, Submission 100, p. 9.

[231]Bayer Australia, Submission 100, p. 9.

[232]La Trobe University, Submission 131, p. 3.

[233]La Trobe University, Submission 131, p. 3.

[234]La Trobe University, Submission 131, p. 3.

[235]La Trobe University, Submission 131, p. 3.

[236]Australian Fresh Produce Alliance, Submission 135, p. 16.

[237]Australian Fresh Produce Alliance, Submission 135, p. 14.

[238]Australian Fresh Produce Alliance, Submission 135, p. 14.

[239]Mr Jordan Brooke-Barnett, Chief Executive Officer, AUSVEG SA, Committee Hansard, 20 April 2023, p. 15.

[240]P’Petual Holdings <https://www.ppetual.com.au/about-us>. Accessed 12 October 2023.

[241]Greenspace ESG Pty Limited, Submission 134.

[242]Mr Nicolas Fox, Microfarm Operations Manager, Greenspace ESG Pty Ltd, Committee Hansard, 6 July 2023, p. 1.

[243]Mr Nicolas Fox, Microfarm Operations Manager, Greenspace ESG Pty Ltd, Committee Hansard, 6 July 2023, p. 3.

[244]Mr Nicolas Fox, Microfarm Operations Manager, Greenspace ESG Pty Ltd, Committee Hansard, 6 July 2023, p. 2.

[245]Mr Nicolas Fox, Microfarm Operations Manager, Greenspace ESG Pty Ltd, Committee Hansard, 6 July 2023, p. 3.

[246]Mr Nicolas Fox, Microfarm Operations Manager, Greenspace ESG Pty Ltd, Committee Hansard, 6 July 2023, p. 3.

[247]Professor Rachel Burton, Professor of Plant and Food Science, School of Agriculture, Food and Wine, University of Adelaide, Committee Hansard, 20 April 2023, p. 2.

[248]Professor Rachel Burton, Professor of Plant and Food Science, School of Agriculture, Food and Wine, University of Adelaide, Committee Hansard, 20 April 2023, p. 2.

[249]Mr Michael Claessens, Executive Director, Canberra Region Food Collaborative; and Chief Executive Officer, Regional Development Australia ACT, Committee Hansard, 14 June 2023, p. 2.