Consumer Market Bites

Transcript

Samantha Jansen:

Hi, and welcome to PwC's Consumer Market Bites series. My name is Samantha Jansen, and I'm a director in PwC's Consumer Market team, and I'll be your host for this episode. PwC's Consumer Market Bites series was created to share bite-sized content on the latest insights from PwC and hear from some of our clients from across the consumer market industry. On today's episode, we'll be joined by Anthony Goldsworthy, a partner in our Consumer Markets team. Fast-forward to 2050 and ask yourself, how will we provide a global population of more than 9 billion people with healthy and nutritious food without using more land, and while also using water and energy more efficiently? Over to you, Anthony.

Anthony Goldstein:

Hello, and welcome to this discussion on the state of global food systems and the unique role Australia plays in this evolving landscape. As the world population is projected to rise from 8 billion to 10 billion by 2050, we're witnessing a shift in dietary patterns, particularly in developing countries with increasing demand for meat and dairy products. Currently, global food production needs to increase by approximately 60% by 2050 to meet this demand.

For Australia, a country with a diverse and thriving agricultural sector, this presents a significant opportunity. By fostering collaboration between industry players and regulators, Australia can help meet the growing global food demand. Our innovative and resilient food and agricultural sector has allowed us to compete robustly on the international stage. Australia is the fourth-largest exporter of agricultural products by volume, contributing about 76 billion in FY24 to the national economy.

However, we face challenges; high labour costs and our geographic isolation can be impediments, but these are balanced by our diverse climate, natural resources, and strong environmental and labour laws. Australia has half of its land dedicated to agriculture, and while the sector employs more than 300,000 people, it is also notable that Australia has one of the highest minimum wages in the world. If we get things right, this positions Australia as a potential leader in premium, clean, green, and ethical food supply. Regulation is crucial, but overregulation poses risks. Recent protests in European capitals highlight the tensions that arise from stringent environmental regulations and bureaucratic burdens. Australia must find a balance, using regulation as an enabler rather than as a cost driver.

Innovation is also key. One third of the food produced globally is wasted, indicating inefficiencies in traditional value chains. New technologies are revolutionising the food ecosystem, reducing waste, increasing transparency, and optimising processes. Our government has an opportunity to supercharge our food and agriculture industry through incentivizing investment in on-farm technologies, such as using satellites and drones to improve farming productivity and reducing the use of inputs, leveraging blockchain and the internet of things to track food provenance and improve trust, safety, and quality.

The role of next generation technologies, like vertical farming and precision agriculture, is only going to grow. Incentivizing food manufacturers to invest in Australia will also increase productivity and create jobs. Why shouldn't we be developing the leading food processing technologies right here in Australia and exporting them around the world? Our confined and local food supply chains offer industry and regulators an opportunity to work together to track the provenance of food, an increasing driver of consumer choice and requirement for tracking environmental impact.

The path forward involves collaboration amongst retailers, consumers, governments, and regulators. By working together with a common goal, we can position Australian products as clean, green, and ethical on the global stage. With 70% of Australia's agricultural products exported, maintaining and expanding our global brand is not just important for the economy, but something everyday Aussies should be proud of. Sustainability goals should not only benefit the environment and communities, but also enhance economic viability. Visit our website for more information.

Samantha Jansen:

Thank you, Anthony, for those valuable insights, and we look forward to seeing you for our next episode in our Consumer Market Bites series.