A further slowing in growth
China accounts for a staggering 43 per cent of the projected increase in global agrifood demand over the next 35 years, and Australian agribusinesses are positioning themselves now to seize the business opportunities.
China accounts for a staggering 43 per cent of the projected increase in global agrifood demand over the next 35 years and Australian agribusinesses are positioning themselves now to seize the business opportunities.
This was the message from the inaugural National Australia Bank (NAB) Australia-China Business Week Agribusiness Forum, held in Sydney on Friday 5 September as a part of Australia-China Business Week.
NAB’s Head of Asia Desk, Roger Gaudion set the scene, providing a run down on the bank’s insights on projected demand and export growth. “The largest beneficiaries of booming Chinese demand will be resource and knowledge intensive products where Australian companies are world leaders in intellectual property and technology. This includes the beef, wheat, dairy, sheep meat and sugar sectors, not to mention packaged foods and horticulture”, Gaudion said.
According to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), the real value of Australian food and agricultural products is forecast to be 77 per cent higher in 2050 compared to 2007. This will be driven by demand from China and other key Asian markets.
“The story for meat is extraordinary. China’s imports are forecast to leap from USD 2.9 billion (in 2007) to an incredible USD149 billion by 2050, and Australia is perfectly positioned to help fill this demand.
“Looking at long term projections, wheat is also expected to be a stand out commodity, with the value of Australian exports expected to roughly double by 2050. While it’s well known that China’s demand for Australian food is increasing, what we’re focused on is connecting Australian agribusinesses with customers and establishing solid supply chains and relationships.
“Our specialist Agribusiness Asia Desk was established to help initiate and strengthen trading ties for Australian agribusiness in Asia and works to help farmers make the most of the rapid growth in demand for high quality produce,” he said.
NAB Agribusiness will run a 15 day agribusiness tour to China, leaving on 11 October. The tour will include significant access to beef and dairy farming and processing facilities through to distribution and retail, as well as key importers and larger retail outlets and supermarket chains. Contact your NAB agribusiness banker for more information.
NAB Agribusiness has had a presence in Asia since 1969. It has six branches spanning Hong Kong, Singapore, Japan, China and India and over 500 employees across Asia.
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