Australia’s global competitiveness in Agribusiness is currently being held back by a lack of investment and capital according to Angus Taylor MP, Federal Member for Hume.
Angus has long been an advocate of improving access to long term capital in agriculture, stating that the shortfall in this area is one of the greatest challenges currently faced by the agriculture sector. He says we need to focus more on tracking capital on farms and in the supply chain, and how to use current innovations much more broadly.
“The supply chain and infrastructural processing on farms both need big discussion. I’ll be speaking at the conference about how much capital is required, how we’re going to get it and why it isn’t already happening.”
How can we attract more capital to the agriculture sector?
One of the key obstacles that Angus sees to investment in the Australian agriculture sector is a growing skills shortage.
“A lot of it is about skill development and pioneering new structures. We need a new set of skills to manage external capital in new forms. Young farmers will play an important role. You’re not going to get all farmers to develop all areas, and farm succession is critical. Most of the innovation will come from young and new farmers.”
Capital crucial to support new markets
Investment is particularly important to support new and emerging markets in Asia and the Middle East according to Angus. “We don’t have the skills or capital to maximise these markets at the moment. The sector has previously had financial success with owner-operated farms but that’s changing.”
Angus says that although Australia has established Free Trade Agreements and is already actively pursuing new ventures in China, Korea and Japan, these markets still present massive untapped opportunities.
“Asia is where the growth is. There are still opportunities in traditional markets like Europe and the U.S but they will be dwarfed by Asia. We should and will pursue new markets, but the markets we already work with are enormous and there is still a lot that we can do to fully leverage our FTAs. We need buyer security and we have to identify the gaps in the market. That takes time.”
Angus Taylor will be speaking about how to capitalise on financing and market development opportunities at the upcoming Maximising Agribusiness Competitiveness Conference in Sydney. Book before April 10th and receive a $500 discount on ticket prices!