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Food in Brief #13 - Investment in food manufacturing needed (Part 2)

Shelley Inkster - Friday, October 07, 2016
Investment in food manufacturing needed (Part 2)

Seafood consumption is increasing world-wide. Almost all of the global growth in consumption is being met by aquaculture.

One of a number of large agribusiness projects planned to go ahead is the Sea Dragon Project, a $1.45-billion project proposed for Legune Station, on the border of the Northern Territory and Western Australia and sitting on the northern coastline.

WA Company ‘Seafarms Group’ is looking to develop a land-based prawn aquaculture project on the property which the Government says could employ 1,600 full-time staff.

Although there may be an increase in local employment, this will make little contribution to the manufacturing sector as like other large agribusinesses the greater percentage of raw food products are sent overseas.


Sea Dragon Project

Let’s hope that as these & other organisations develop, evolve and mature, investment is made in establishing diverse & vertically integrated operations.

An example follows:-

Vertical integration


Some content extracted from ‘Investment in Food Manufacturing Needed’
Food Australia Magazine (AIFST) December 2015 / January 2016
By John Hine

Food in Brief #12 - Investment in food manufacturing needed (Part 1)

Shelley Inkster - Monday, October 03, 2016
Investment in food manufacturing needed (Part 1)

The recent State of the Industry Report for the Australian Food & Grocery Council noted there has been a spectacular surge in processed food and beverage exports, up 28 per cent on last year and a near doubling of the trade surplus for food and beverages. Unfortunately, the increase is not bringing about a much needed increase in manufacturing.

‘The jump in food and beverage exports is the result of significant demand in Asia meeting the capacity in the Australian food and beverage manufacturing sector. But while exports have surged employment and investment have been falling. The surge in exports have largely utilised existing capacity in food and beverage manufacturing and a new phase of investment is required to avoid capacity constraints and position Australia for growth over the longer term.’

However, like the horticulture, mining & viticultural sectors are we going to witness a rapid increase in the production of raw materials compounded by minimal growth in secondary and tertiary value added processing?

What will happen with the next citrus fruit or wine grape glut?

Will we witness again the removal of valuable primary infrastructure such as fruit trees?

How much longer can we go on exporting the greater percentage of our fresh primary produce without adding value and working to halt the decline in manufacturing?

State of the Industry 2015 Report

Some content extracted from ‘Investment in Food Manufacturing Needed’
Food Australia Magazine (AIFST) December 2015 / January 2016
By John Hine

The Changing Landscape of Risk and Risk Managment

Kevin Stretton - Friday, March 04, 2016

The Changing Landscape of Risk and Risk Management

 

If we could go back more than 15 years we would have found a business environment where mentioning the word ‘risk’ would have elicited word association responses such as banking, finance and insurances.

 

Over the past decade the business and risk environment has been changing rapidly and a much broader interpretation is now entering the vocabulary of boards, CEO’s, executives, managers and risk practitioners.

 

There are two major changes occurring in the current risk landscape, an increase in the number of risk categories and the potential size of risk that has to be managed. These rapid developments are now bringing risk to the forefront of all businesses, large, medium, multi-national and small.

 

This means that boards and executives now have to develop a refined focus on risk as well as translating strategy into action at middle management and employee levels. The focus on risk and the risk management process is accompanied by an emphasis on how it contributes to protecting the business and enhances value.

 

Without doubt this is an exciting new way of thinking as there is a reversal from ‘reactionary strategy’ to ‘prevention’ to ‘risk anticipation’ and those companies embracing the concept will be better prepared.

 

However, it will require a change in the way organisations encourage innovative thinking and the reporting of risk at various levels, especially at shareholders' meetings. Shareholders will want evidence on how well the organisation can adapt and cope with rapidly changing risk categories, environments & severities.

 

We’ve included some references for you to review and consider.

 

Forum for the Future

 

Managing how to learn 

 

Economics & culture