Category: Agribusiness

Forgoing productivity gains for premium markets is absurd

Abstract: Chasing premium markets at the expense of pursuing productivity is a deplorable strategy that will ultimately lead to increased global food insecurity. It has been widely accepted that food production must double by 2050 to meet global demand. If Australian agriculture abandons its focus on production improvements where will the necessary yield gain innovation come from? Diverting resources to serve premium markets may reap higher returns for some but what about the many? There are significantly more opportunities to collect Schumpeterian rents on innovations in productivity gains comparative to the exploitation of premium markets. Premium markets require defensive manoeuvring to preserve and ultimately benefit only a select few. Australia should […] more

Drivers of change in Australian agribusiness and using value chain management as a strategic response

Sturt Desert Pea

‘Agriculture has undergone much change over the last few decades. Key drivers have been shifts in consumer demand, changes in government policies, technological advances and innovation, emerging environmental concerns and an unrelenting decline in the sector’s terms of trade’ (Productivity Commission 2005, Trends in Australian Agriculture, p. xvi).   The Australian agribusiness sector must effectively and efficiently respond to change and innovate across the entire value chain in order to remain competitive in a global market. A strategic view of value chain management must be cultivated and ‘management procedures and a changing managerial culture, such as a shift towards market orientation’ (Meulenberg & Jongen 2005, p.14) should become modus operandi; coupled […] more