The Australian Food Industry

An Introduction

content:The Australian Food Industry has developed in response to changes in our physical, social, technological, economic and political environment. This is evident in the structure, operations and products of the Australian Food Industry. The industry contributes significantly to the gross domestic product (GDP) and is a major employer.

Outcomes to be Assessed ● H1.2: Examines that nature and extent of the Australian Food Industry.

● H1.4: Evaluates the impact of the operation of an organisation within the Australian Food Industry on the individual, society and environment.

● H3.1: Investigates operations of one organisation within the Australian Food Industry.

Where will this be assessed in the HSC Exam?In the HSC Examination students should expect to answer questions on the Australian Food Industry (AFI) to the value of approximately 25% of the paper. Questions may require students to integrate knowledge, understanding and skills developed through studying the entire course. The paper may include;

● Multiple Choice Questions● Short Answer Questions (which may include parts)● A Structured Extended Response Question, which include 2 or 3 parts with 1

part worth at least 8 marks OR● An Extended Response Question (approximately 600 words)

What is the Australian Food Industry?The Australian Food Industry includes the organised production, processing, storage and marketing of food products.

Changes in the industry develop over time, due to such factors as:

● New foods and technologies becoming available.● Consumers being influenced towards different tastes and food habits.● The population growing or declining.● Companies expanding and earning more revenue.● A response to global events, e.g: climate change, war, immigration.

SYLLABUS LINK

What is the Australian Food Industry?The production and supply of food for individuals and consumers is called the AGRI-FOOD CHAIN. The agri-food chain consists of FOUR main SECTORS:

● Agriculture and Fisheries

● Food Processing and Manufacturing

● Food Retail

● Food Service and Catering

2007 HSC Question

THE AGRI-FOOD CHAIN● The agri-food chain relies on

each sector so no sector is independent.

● This means that a problem in one sector of the agri-food chain can have a significant impact on the other sectors, affecting production, manufacturing and ultimately sales and income.

CASE STUDY: Cyclone Larry, 2006 (Pages 147-148)

CASE STUDY

QUESTIONS:Explain how each sector of the agri-food chain, while independent, can affect food items in other sectors.

Explain: Relate cause and effect; make the relationships between things evident; provide why and/or how.

P: Whilst each sector of the Australian Food Industry operates independently, the agri-food chain as a whole,

is interdependent.

E: This means that……..

E: For instance; in the 2006 case study titled ‘No Bananas for 9 Months’........... As a result, this affected the Food Retail sector because…..

L: Overall, it is evident….

QUESTION 1 - Band 6 Response Whilst each sector of the Australian Food Industry operates independently, the agri-food chain as a whole, is

interdependent. This means that each sector relies on one another for the success of the Australian Food

Industry. Each sector of the as as important as any of the others and if there is a problem in one sector, it can

have a significant impact on the other sectors, affecting production, manufacturing and ultimately sales and

income. For instance; in the 2006 case study titled ‘No Bananas for 9 Months’. Cyclone Larry affected the

Agriculture and Fisheries sector of the agri-food chain as 90% of the banana crops were destroyed. As a result,

this then affected the Food Retail sector as the price of bananas increased to $6.00 a kilo. This ultimately

reduced the sale of bananas as they were deemed a ‘luxury’ item and were mainly purchased by those

consumers with a higher income. Overall, it is evident that each sector of the agri-food chain relies on one

another when producing and supplying food items to consumers.

QUESTION 1 - Band 6 Response: Peel P: Whilst each sector of the Australian Food Industry operates independently, the agri-food chain as a whole,

is interdependent.

E: This means that each sector relies on one another for the success of the Australian Food Industry. Each

sector is as important as any of the others and if there is a problem in one sector, it can have a significant

impact on the other sectors, affecting production, manufacturing and ultimately sales and income.

E: For instance; in the 2006 case study titled ‘No Bananas for 9 Months’. Cyclone Larry affected the Agriculture

and Fisheries sector of the agri-food chain as 90% of the banana crops were destroyed. As a result, this

affected the Food Retail sector as the price of bananas increased to $6.00 a kilo. This ultimately reduced the

sale of bananas as they were mainly purchased by those consumers with a higher income.

L:Overall, it is evident that each sector of the agri-food chain relies on one another when producing and

supplying food items to consumers.

QUESTIONS:

Outline the impact of Cyclone Larry on the Food Processing/ Manufacturing and Food Service and Catering sectors of the agri-food chain.

Explain why it is necessary to protect Australia’s banana-growing industry from imported bananas.

Outline: Indicate the main features of.

Explain: Relate cause and effect; make the relationships between things evident; provide why and/or how.

Sectors of the Agri-Food Chain: Agriculture & Fisheries

PLANT PRODUCTION INVOLVES:

● Preparing soil for planting

● Selecting seeds

● Sowing (planting)

● Fertilising

● Irrigating (supply water to plants to help

them grow)

● Harvesting (gathering)

● Storage

● Transporting to several locations

ANIMAL PRODUCTION INVOLVES:

● Producing or supplying fodder/ feed and water

● Breeding

● Treating Illnesses and Diseases

● Transporting the animals to saleyards,

abattoirs and other food processing locations.

Agriculture is the cultivation (prepare and use) of land to produce food derived from plants and animals.

Case Study: Cage or Free Range Eggs?

Sectors of the Agri-Food Chain: Agriculture & Fisheries● Nearly 90% of the total value of Australian agricultural production comes from food.

● Cereals, dairy and meat are the most significant products in the agri-food chain.

● Our main cereal crops are wheat, oats, barley, rice, maize and sorghum.

Milk and related products exported to world markets total around 3 billion dollars a year.Asian countries buy the majority of our food exports in the form of cheese, milk powder, butter.

The Aust. meat industry is well established, contributing to around 7 billion dollars in export earnings. Beef, lamb, pork and poultry are our main exports. Mainly exported to Europe, Japan, Korea, Middle East, NZ.

Sectors of the Agri-Food Chain: Agriculture & FisheriesAustralia is the second largest exporter of beef . To promote the consumption of red meat, Meat and

Livestock Australia (MLA) has used a number of campaigns.

Sectors of the Agri-Food Chain: Agriculture & Fisheries● Fisheries are also part of the agri-food chain and include commercial catching of

fish or any other aquatic species.● Aquaculture is an area growing in popularity and involves cultivating and

harvesting aquatic plants (such as seaweed) or animals (such as clams, oysters and salmon).

Sectors of the Agri-Food Chain: Food Processing/ ManufacturingMost food produced in the agriculture and fisheries sector undergoes some form of processing before being

sold to the consumer. This includes ‘value adding’ steps such as; packaging apples in convenient 3kg bags for

the busy consumer and producing rice crackers in a variety of different flavours.

The value-adding sector is the largest sector of the agri-food chain, perhaps because most food items are not

suitable for consumption in their raw form.

Sectors of the Agri-Food Chain: Food Service and CateringThis sector prepares and serves food and is often referred to as the hospitality industry.

It involves all food items served to customers in, for example;

● School Canteens● Restaurants● Takeaway Food Stores● Catered Functions● Hospitals● Prisons● Airline Flights

Sectors of the Agri-Food Chain: Food Retail● This area of the agri-food chain provides places where consumers can purchase

processed food items. ● Food retailers vary in size and dominance and include large, national food

chains, such as; Woolworths and Coles, and smaller stores, such as the corner stores, petrol stations, butchers and bakeries.

2010 HSC Question

Development Sector Description

One-stop Shopping

Irrigation

Convenience Meals

Home Delivery Service

Genetic Engineering

Value-added foods rather than primary produce

Internet Shopping

Australia’s ‘clean green’ image

Production of low fat animal products

Development Sector Description

One-stop Shopping Food Retail

Irrigation Agriculture & Fisheries

Convenience Meals Food Processing & Manufacturing

Home Delivery Service Food RetailFood Service & Catering

Genetic Engineering Agriculture & Fisheries

Value-added foods rather than primary produce

Food Processing & Manufacturing

Internet Shopping Food Retail

Australia’s ‘clean green’ image Agriculture & Fisheries

Production of low fat animal products Food Processing & Manufacturing

Development Sector Description

One-stop Shopping Food Retail Supermarket shopping, loss of specialist retailers like butchers and greengrocers, and a reduction in small businesses.

Irrigation Agriculture & Fisheries The process in which water is brought to dry land through artificial means, such as pipes, hoses or ditches. Increases yield and reduces crop losses.

Convenience Meals Food Processing & Manufacturing Used for food service and catering. Meals which require little or no preparation.

Home Delivery Service Food RetailFood Service & Catering

Purchased items delivered to the purchaser’s door (usually for a free).

Genetic Engineering Agriculture & Fisheries Transfer of genes from living organisms to develop enhanced qualities in plants and animals.

Value-added foods rather than primary produce

Food Processing & Manufacturing Trend towards manufactured foods rather than primary produce, increased profit margins and increased employment.

Internet Shopping Food Retail Online shopping, home deliveries without physically visiting a retail outlet.

Australia’s ‘clean green’ image Agriculture & Fisheries Reduction of chemical residue in plants and animals for human consumption.

Production of low fat animal products Food Processing & Manufacturing Removal of fat or manufacturing procedures which reduce fat in animal products.

Recent Developments in the Australian Food Industry

Syllabus Link

What is Emerging Technology?● New technologies that are currently developing which will substantially alter the

business. ● New technologies in the areas of food production, manufacturing and packaging

are constantly evolving in the Australian Food Industry.● Recent trends in the food industry are driven by many factors. Example;

breakthroughs in science have led to the creation of new food products.

Sector Emerging Technologies

Agriculture & Fisheries

Agriculture:● Technology used to improve conditions, e.g: irrigation, genetic engineering.● Important contribution to export markets - reliable, safe and ‘green’ image.● Increasing variety of crops, e.g: nuts, vegetables.

Fisheries:● Increasing aquaculture products and market.● Increasing variety of seafood on the market, e.g: abalone, fish types.

Food Processing & Manufacturing

● Increasing number and range of manufactured food products available. ● Diversity in the sector - small household through to large-scale production.● Growth of multinationals.● Increased mechanisation and computer applications.● Greater health awareness has led to an increased range of ‘healthier’ alternatives, e.g: low-fat, salt-reduced, low-GI.

Food Service & Catering

● Busier lifestyles and greater disposable income has led to more foods and meals being eaten away from home.● Growth of multinational food outlets e.g: take away, hotels. ● Home delivery services in greater demand. ● Increased variety of places, food and styles, e.g: fine dining, kangaroo, ‘fusion’ cuisine.

Food Retail ● Large supermarkets and speciality shop chains gaining market share - independent small shops struggle to compete.● Food is being sold in more places, e.g: petrol stations, vending machines, theatres.● More convenience food solds. ● Internet shopping and home delivery.● Health awareness has led to ‘fresh’ food chains and choices.