If Australia’s over-reliance on foreign supply chains continues, grocery consumers might be ‘in jeopardy’
Professor Antony Bacic from La Trobe University’s Institute for Agriculture and Food warned Australia’s continuing reliance on imported food might lead to price spikes and longer-lasting empty shop shelves.
Australians’ year-round appetite for fresh food and non-perishables renders us susceptible.
When I was a youngster, stone fruits were just during Christmas; today we demand them year-round. If we can’t grow fresh food year-round, we must import it,’ added Professor Bacic.
He stated most of Australia’s processed food is grown elsewhere.
Professor Bacic said governments must decide how important it is to have their own security and manufacturing capabilities.
In the 1960s, manufacturing employed 25% of Australia’s workers; today it’s 6%.
He stated that Australia’s non-perishable food industry can’t meet demand.
Australia imports close to 70% of its agricultural production, including wheat and beef, but Professor Bacic said our exports face severe competition as India and the Baltic states manufacture comparable items at a far lower price.
‘We’re competing with nations with lower cost bases, so we need to produce high-quality grains,’ he added.
Adding value to Australia’s raw resources is something we trail in but can achieve.
Professor Bacic advises Australia treat grains to boost nutritional value for local and Asian markets.
His organisation and the CSIRO propose an Australian Food Innovation Centre to assist food farmers develop high-yield, disease-resistant, water-efficient crops.
This approach might add $100 million to Australian food exports and 30 extra food producers within 10 years, according to Professor Bacic.
He said, “Without food, we’re doomed.”
Covid-19, conflict, and rising gas costs have disrupted supply lines, causing inflation and supermarket price hikes.
The nation is witnessing the greatest inflation rate in two decades, and rising energy costs and ‘exceptional’ natural gas prices are aggravating the supply chain issue.
Anthony Albanese promised to restore Australia’s ‘industrial foundation’ during the last election.
Labor offered $1 billion in manufacturing as part of a $15 billion national rebuilding budget.