Foreign investment, free trade and Australian agribusiness and food

Chris Stamford, Assistant General Manager - Investment

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Agribusiness and food at a glance (FY 2013)

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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

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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

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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

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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

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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

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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

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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

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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)

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ChAFTA – a landmark agreement

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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

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How Austrade can help