1. Foreign investment, free trade and Australian agribusiness and food
Chris Stamford,
Assistant General Manager - Investment

2. Agribusiness and food at a glance (FY 2013)

3. Discretionary food demand is growing rapidly
Europe
2009: 664 m
2030: 680 m
Global middle-class consumers: 2009 vs 2030 forecast.
North America
2009: 338 m
2030: 322 m
Asia Pacific
2009: 525 m
2030: 3228 m
Central and South America
2009: 181 m
2030: 313 m
2009: 137 m
2030: 341 m
Middle East and Africa
2009
2030

4. Seizing the opportunity
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.

5. Agribusiness and food policy
A national investment priority
Recent release of Northern Australia White Paper
Upcoming Agricultural Competitiveness White Paper
Network of Free Trade Agreements
Reforming FIRB

6. Australia’s advantages
Large export-orientated industries
World-class farm R&D and
innovation
Reputation for safe, high-quality produce
Sophisticated, multicultural
test market
Diverse climates and growing conditions
Stable, reliable and
counterseasonal supply

7. Global interest Recent examples:
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
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

8. FTAs improve our competitive position
FTAs – What They Do
Help Australian business penetrate more deeply
into key export markets
FTAs improve our competitive position
Encourage the foreign investment needed to seize our advantages, create jobs and build prosperity

10. Leading markets for Australia
$266.4b
combined
62% OF AUSTRALIA'S
MERCHANDISE EXPORTS
40% OF AUSTRALIA'S
TOTAL TRADE
19% OF AUSTRALIA'S
SERVICE EXPORTS
ABS trade data
DRAFT

11. Significant sources of investment and services trade
Combined direct investment
Short term visitor arrivals
More than 1.2 million*
into Australia $86 billion
Korea - $1.9b
$629
billion
International student enrolments
More than 180,000**
Japan - $63.2b
China - $20.8b
*Department of Immigration and Border Protection data (2014)
** Australian Education International data (2014)
Investment data, ABS 2013
DRAFT

12. ChAFTA – a landmark agreement

13. FTAs – What They Don’t Do
Forex
Non-Tariff Barriers
Ease of doing business
Demand
Free Trade Agreements FX
Non-Tariff
Barriers
Demand
Ease of doing business

14. How Austrade can help