New industries have a vital role in ag future
New and emerging industries will play a vital role in the future of Australian agriculture as change continues in the sector, Rural Industries Research and Development Corporation managing director, Peter O’Brien, said.
Speaking at the Queensland Farmers’ Federation’s Future of Farming seminar in Brisbane, Dr O'Brien said climate change, a trend of declining terms of trade, emerging low-cost competitors and consumer preferences were all drivers of the ongoing changes affecting Australian agriculture.
"Each of these influences bring threats and opportunities to the sector and they help drive diversification into new industries," Dr O'Brien said.
"For instance, climate change will have a direct bearing on all agriculture but it could also have indirect impacts through emissions trading.
"That could provide opportunities in terms of agro-forestry and carbon sequestration for farmers around the country."
Dr O'Brien said the emergence of new industries was a constant and they would complement, rather than replace existing industries.
"The contribution of industries other than milk, meat, grains, sugar and wool to total agricultural production in this country has risen from 16pc in 1960 to 29pc in 2005.
"We have also seen the arrival of crops like cotton and canola as significant new industries in the last few decades, driven in part by research and development."
Dr O’Brien cited the emergence of the olive industry in Australia as one example of an industry that may continue to grow in the future.
"RIRDC has identified a number of key success factors for new industries including competitive advantage, product quality specifications, supply chain management, leadership and business skills at industry and enterprise level.
"The olive industry ticks the boxes on most of these and it is powering ahead.
"We can’t necessarily predict what the big industries of the future will be but we can identify the factors that will see them succeed or fail."
SOURCE: RIRDC / FARMONLINE
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