The Australian Food Industry - Essay Example

Running Head: THE AUSTRALIAN FOOD The Australian Food Industry This paper will talk about the Australian Food Industry and some of the factors and issues affecting it on a large scale. An overview of the Australian food industry shall be provided, along with a general description of the same industry at present times. A special section on the processed food industry shall also be discussed since it is one of the industry's more significant sections. Apart from this, the quality maintained by the industry shall be tackled, where countries to which Australia exports shall be identified. About the Food Industry The food industry in Australia produces a large quantity of a variety of products. Although the weather in the land down under is mostly dry, there is still a variety in the types of land and in the weather. There are areas that have tropical weather, coastal areas that experience much rain, and dry to medium dry areas. Each area uses the type of climate that they have to produce specific kinds of food products. With this variety of climate, combined with the recent development in food processing and technology, Australia has gained a reputation for being one of the steadiest food suppliers across the globe. (About Australia, 2008) The Australian Food Industry at Present As with most countries, Australia's food industry has been a massive contributor to its economic condition. Forty six percent of the retail profits across Australia for the years 2006 to 2007 have come from the food industry. There was a significant increase of 8% in the turn over from last year's production. In the year span of 1980s and 1990s, several varieties of industries were established due to new and pressing demands in the market. Some land-based fresh produce were brought to the market such as Asian vegetables, fruits and herbs. Atlantic salmon farming was also brought into the industry at that time, along with the catching of Bluefin Tuna that grew out of wild. Apart from these products, meats of kangaroos and crocodiles have gained popularity in recent times. The respective sub-industries of these foods have been trying to introduce more and more similar products into the Australian market, and the global market as a whole. (About Australia, 2008) Australian Processed Food There are several sub sectors in the processed food industry in Australia. These are bakery products, beverage and malt manufacturing, dairy products, flour mill and cereal food manufacturing, fruit and vegetable processing, meat and other meat products, oil and fat manufacturing, seafood processing, sugar and confectionery manufacturing, and other food manufacturing. The sheer number of sub-industries under the Australian food industry should be enough to tell us how flourishing this industry is. The industry with the largest revenue in 2005-2006 is the food and beverage industry. As earlier mentioned, the Australian food industry has been a large contributor to the country's economic standing. This is because the food industry provides businesses, jobs and regional development where it operates. Fifty of the country's biggest food and beverage companies are responsible for seventy-five percent of the income of the local industry. Supermarkets are responsible for the majority of sales of food products in the country, where sixty percent comes from the sale of food and liquor in 2006-2007. (About Australia, 2008) The Organic Industry in Australia In recent times, there has been a huge demand for organic products to be released in to the markets, not only in Australia, but across countries as well. Major food companies, such as Nestle and Unilever were some of the first large companies to venture in to production of organic food across different processed food products. Australia has followed the trend through a small and significant, but quickly growing group of farmers producing organic products. The essence of organic foods is such that consumers are aware that they will be paying a larger amount of money for barely processed food, even though economic reasoning dictates that the more food is processed, the higher the cost is. The appeal of organic products lies in the fact that unprocessed food is more beneficial to its consumers, healeth-wise. With the trend for health products growing as time passes, so does the market of consumers for organic products. However, since the market for this type of product is still developing, producers have expressed skepticism regarding the idea of entering a larger scale type of business to address market needs. The downside to this thinking is if the consumers are not provided with supplies to their needs, then they might turn to international suppliers who have already broadened their businesses to include organic products. This then reduces the opportunities for the smaller scale farmers and organic producers to expand their businesses in the country. The demand, as well as the supply of organic food stuffs has to be maintained for this sub industry to survive. Processors of this type of food are encouraged to invest in organic producers in order support and promote the growth of the industry through developments in the products and in the technology involved. (The Australian Organic Industry: A Profile, 2004) The Australian Business of Food Quality matters to Australia, and this shows in their production. Food that comes from Australia is sure to be choice, high grade, top quality products. Australia sees to it that the food that they produce and release to the markets comes from producers who adhere to international standards of quality and safety food management. Export products from Australia that comprise the biggest bulk are meat and grains, while wine and dairy product exports have become increasingly popular in the last two years. Japan, the United States, Indonesia, the Republic of Korea, New Zealand, the United Kingdom, Saudi Arabia, the United Arab Emirates and some countries part of the Pacific Rim are only a few of the countries that Australia exports products to. Majority of the export products of the country are sent to Japan and the United States. (About Australia, 2008) Market of the Food Industry In as much as the food industries around the world and across countries are controlled by multinational companies, Australia is not any different from this observation. Seventy five per cent of the profits earned by the food industry in Australia in 2003 came from fifty companies, most of which were owned by other nations (or foreign companies) or were publicly listed. However, the consistency in trend ends there. The fifty firms produce different varieties of food stuffs, such as dairy product processing and seafood. Fifty percent of the fifty companies earlier mentioned are foreign owned, while only nine were companies that were either publicly listed, privately owned or cooperatives. (Australian Food Industry: Performance and Competitiveness, 2007) Preference of Australian Consumers Due to the increasing incomes across countries characterized to have high incomes or low incomes, the ability for the food industry to increase their sales volumes is steadily decreasing. The strategy employed now by the companies in the food industry is to engage in product differentiation. Factors that affect the differentiation of products are aesthetic value, palatability, and nutritional value, benefits to health, food quality, product source and food processing management and/or convenience. (Australian Food Industry: Performance and Competitiveness, 2007) CSIRO The Commonwealth Scientific and Industrial Research Organization or CSIRO is the agency of Australia's national science and a research agency which has become one of the biggest and most diverse, across all continents. This organization strives, as a scientific institution, to conduct research on the sciences of flora and fauna, agriculture, environment and ecology. According to their website, CSIRO's research "helps to create innovative and competitive industries, ensure the growth of a technologically advanced society and maintain healthy environments and lifestyles." (CSIRO, 2005) Apart from science and research, CSIRO also has activities where they partner with several other industries to sustain progress on varied products and technological advances, share best and new practices across industries, and provide state-of-the-art facilities to further the objectives of research. CSIRO is also involved with other countries through commonly beneficial activities to continue developing solutions to other countries in dire need of the benefits of technological and scientific advances. CSIRO is also part of the Global Research Alliance (GRA), where efforts are being doubled by partner institutions and agencies so that the United Nations' Millenium Goals regarding transportation, water, health and communications may be achieved at the soonest time with the least resources possible. Apart from these, CSIRO is also a major advocate of education, and ultimately, employment. The organization has provided jobs to numerous science practitioners in Australia. Through this, CSIRO is indeed promoting better understanding and appreciation of the efforts of science in a smaller scale, such as in communities. Providing educational materials, school support and programs that promote scientific endeavors are just some of the ways by which CSIRO promotes their values and mission as a scientific organization. (What Does CSIRO Do, 2005) CSIRO and Australian Native Foods "Bush Tucker" is the general Australian terminology used that covers a spectacular amount of different kinds of edible plants, animals, insects, and other items under yet another general term, flora and fauna, that only exists in the country. (The Epicentre, 2003) CSIRO is involved in varying efforts and has partnered with Australian Aborigines to learn more about this very unique food fare to determine how marketable it is and to strategize how to position it in the national market, and eventually, the global market. An estimate of the yearly figure that is pinned to this industry is about $14 million. The only challenge with this very young and very new industry is that the scientific community is still in search of strategies on how to export these food products, given that there is still no guarantee of the stability of the growers to produce a certain specified amount for target markets out of the country, and if it will meet international quality standards for export. CSIRO's part in this endeavor is to find means to ensure that the quality of food meets international standards and to lower costs in producing these goods. (CSIRO Australia, 2008) Australian Diet Lacking in Iodine Food Standards Australia and New Zealand, or FSANZ, conducts a bi-annual study geared towards nutrition, called the Australian Total Diet Study. In the most recent study conducted by FSANZ, an important finding was discovered: that the Australian diet is lacking in iodine. Iodine is important for intellectual development, especially in women with child, babies and toddlers. What is being studied and confirmed at present is the inevitability of the inclusion of iodine in bread products in order to help increase the much needed amount of iodine in the diet of Australians. As stated in the article by Parliamentary Secretary for Health and Ageing, Senator Jan McLucas, said today. "Mild to moderate iodine deficiency can result in children having learning difficulties and can affect the development of motor skills and hearing. In extreme cases it can result in severe intellectual disability." According to the study, when iodine is included in bread products, the present lack of iodine consumption of Australians at 43 per cent shall be minimized to as little as 5 per cent. The above mentioned group most affected by this insufficiency is at the ages 19 to 49 years of age; these are the ages of women with the potential to bear children. Extreme cases of iodine deficiency have resulted in grave disability to the intellect. It is best to have this concern addressed in the soonest time possible to avoid further health deficiencies to the above mentioned affected groups of pregnant women and children residing in the country. The move to infuse bread products with iodine shall be implemented upon confirmation of the findings in the study. (Australian Food News, 2008) Gas Shortage Crisis Affects the Australia Food Industry In May of 2008, there was a gas explosion on Varanus Island, where one of Australia's gas processing plants, Apache Energy, is located. Due to this unfortunate event, the country experienced a crisis: gas shortage. This crisis will majorly, immediately and ultimately affect the country's food and beverage industry, not only in the short term, but also in the long term as well. How will this affect the industry Jobs may be lost, export opportunities may be missed, and the region's food supply may be depleted faster than usual. The chief executive officer of the Food Industry Association of Western Australia (FIA), Ms. Andrea Bertait confirmed communications with the advisor of the Premier regarding the alarming conditions faced by its members, all companies, organizations and institutions directly involved with the food industry. Each day that the issue is not addressed makes the situation worse not only for the food industry in general, but for the entire region as well, as consumers. Even though steps have been taken by the members of the FIA to deal with the crisis, they can only do so much to work around what they have to deal with. Most of the issue is out of their hands. Some of the work around that the FIA members have taken are to utilize premium fuels, reorganize schedules of their respective employees to non-peak energy times, minimized production times stating reasons such as facility maintenance and advised employees to consume leave credits. Some have taken extreme measures like shutting down temporarily, such as Vesco Foods, which, at the time of writing of the article, has lasted an entire week. As a result of this crisis, food products were imported from the United States, particularly from the Eastern region, to cover the shortage of supplies from the food and beverage companies brought about by the gas shortage. A proposal from FIA CEO Andrea Berteit to the government is to reallocate gas across all suppliers to maintain at least minimal operations of food and beverage companies. Salmonella in Australia Salmonella is a form of bacteria that is commonly bred in a human body by ingesting eggs that are undercooked or are mixed in food in its raw form. This dangerous bacteria cause gastroenteritis, with symptoms such as vomiting, nausea, fever, and pain in the abdomen usually manifesting as diarrhea. In 2007, almost fifty per cent of the reported sicknesses caused by food contamination were reported to have been caused by Salmonella. Reasons stated for this outbreak were improperly handled food using undercooked and raw eggs in uncooked bakery products such as cake, and food dressing aioli that uses raw eggs in the mixture. The Australian government has taken action to address this concern. FSANZ, or Food Standards Australia New Zealand developed national safety standards for food that applies to the production and processing of eggs and other dairy products. Collective brainstorming from different groups such as the government, the consumers and the dairy product producers have been held to address other issues that affect not only the safety of the said food product, but also "the use of cracked and dirty eggs, and unpasteurized pulp, traceability, packaging and labeling. The government of Queensland has established a set of rules regarding the stamping or marking of eggs to address the issue of traceability. This ensures the consumers that a stamped egg has passed the set quality standard, while also encouraging accountability of the producers in case their products are traced to be a cause of sickness of its consumers. References: About Australia. Australian Government Department of Foreign Affairs and Trade. Retrieved 18 October 2008 from What Does CSIRO Do. CSIRO. 31 May 2005. Retrieved 18 October 2008 from Australian Native Foods. CSIRO. 13 March 2008. Retrieved 18 October 2008 from Bush Tucker. The Epicentre. 2003. Retrieved 18 October 2008 from Short, Cristopher; Chester, Courtney, Berry, Peter; Elliston, Lisa. Australian Food Industry: Performance and Competitiveness. Abare.Gov.Au. Retrieved 18 October 2008 from Halpi, Darren. The Australian Organic Industry: A Profile. Australian Government, Department of Agriculture, Fisheries and Forestry. 2004. Retrieved 18 October 2008 from Salmonella in Food Containing Raw or Undercooked Eggs. Food Science Australia. August 2008. Retrieved 18 October 2008 from Read More