Foreign investment, free trade and Australian agribusiness and food Chris Stamford, Assistant...

Foreign investment, free trade and Australian agribusiness and food

Chris Stamford, Assistant General Manager - Investment

2Australia Unlimited

Agribusiness and food at a glance (FY 2013)

3Australia Unlimited

Discretionary food demand is growing rapidlyGlobal middle-class consumers: 2009 vs 2030 forecast.

2009 2030

2009: 137 m2030: 341 m

North America

2009: 338 m2030: 322 m

Central and South America

2009: 181 m2030: 313 m

Europe

2009: 664 m2030: 680 m

Asia Pacific

2009: 525 m2030: 3228 m

Middle East and Africa

4Australia Unlimited

According to ANZ’s “Greener Pastures” report, by 2050 Australian agribusiness and food needs:

$600 billion need to maintain current share of global output

A further $400 billion to support generational transition on farms.

The sector needs investment (from both domestic and foreign sources) that:

boosts productivity;

advances research and development;

improves the efficiency of transport and processing infrastructure;

maximises the sustainable use of our resources;

facilitates access to global supply chains; and

builds our national brand.

Seizing the opportunity

5Australia Unlimited

Upcoming Agricultural Competitiveness White Paper

Network of Free Trade Agreements

Agribusiness and food policy

Recent release of Northern Australia White Paper

A national investment priority

Reforming FIRB

6Australia Unlimited

Australia’s advantages

Large export-orientated industries

Reputation for safe, high-quality produce

Diverse climates and growing conditions

World-class farm R&D and innovation

Sophisticated, multicultural test market

Stable, reliable and counterseasonal supply

7Australia Unlimited

Global interest

Dutch Mill (Thailand) building a dairy portfolio in TAS and VIC

Ferrero (Italy) establishing a $70 million hazelnut plantation in NSW

First Pacific (Hong Kong) and Wilmar International’s (Singapore) $1.3 billion acquisition of Goodman Fielder, to leverage brand and distribution channels

Recent examples:

Mitsubishi Corporation (Japan) opening an advanced multi-million dollar hydroponics facility in VIC, the first of its kind outside of Asia

PepsiCo (USA) entering new research partnerships with QLD institutions

Shanghai Zhongfu (China) investing $700 million in sugar and horticultural crops in the Ord River WA

8Australia Unlimited

FTAs improve our competitive position

Help Australian business penetrate more deeplyinto key export markets

Encourage the foreign investment needed to seize our advantages, create jobs and build prosperity

FTAs – What They Do

10

Leading markets for Australia

62%OF AUSTRALIA'S MERCHANDISE EXPORTS

19%OF AUSTRALIA'S SERVICE EXPORTS

40%OF AUSTRALIA'S

TOTAL TRADE

ABS 2013-14 trade data

$266.4bcombined

11

Significant sources of investment and services trade

Combined direct investment

into Australia $86 billionShort term visitor arrivals

More than 1.2 million*

International student enrolments

More than 180,000**China - $20.8b

Korea - $1.9b

Japan - $63.2b $629 billion

Investment data, ABS 2013*Department of Immigration and Border Protection data (2014)** Australian Education International data (2014)

12Australia Unlimited

ChAFTA – a landmark agreement

13

FTAs – What They Don’t Do

FX

DemandNon-TariffBarriers

Free Trade Agreements

Ease of doing business

Forex

Non-Tariff Barriers

Ease of doing business

Demand

14Australia Unlimited

How Austrade can help