‘Greener Pastures’ examines the significant global opportunity in agriculture to 2050 and its implications for the Australian and New Zealand agricultural sectors, driven by the growing and increasingly-wealthy populations in Asia. It also explores the actions Australia and New Zealand need to take and the challenges they must overcome if they are to seize the opportunity.
‘Greener Pastures’ was researched and completed for ANZ by Port Jackson Partners.
- Australia and New Zealand could become the food bowls for a developing Asia. Both countries have the land, the water, the skills and the geographic proximity to benefit from huge middle class populations emerging in Asia with sophisticated tastes and rising incomes.
- With targeted actions, both Australia and New Zealand could more than double the real value of annual agricultural exports by 2050. This would result in an additional A$710 billion and NZ$550 billion of revenues in 2011 for Australia and New Zealand respectively over the next four decades through to 2050.
- However, with farms facing significant constraints, particularly issues around funding succession plans and farm turnover, internal sources of capital will not be sufficient to fund the growth. Support will be required from foreign investors.
- There are other growth-limiting hurdles which need to be addressed including research and development, extension services, market access, capital requirements, human capital shortages, land and water markets and supply chain improvements.
- While the issues for agriculture are challenging, the global soft commodity opportunity presents a rare chance for Australia to reinvigorate its agriculture sector and for New Zealand to apply its dairy success to other agricultural industries.
- Getting this right will help lead Australia and New Zealand to greener pastures over the coming decades.