Towards a National Food Plan for Australia: a summary of the green paper

National Food Plan green paper summary

• Towards a National Food Plan for Australia: a summary of the green paper PDF [3.43 MB]

Australia has a strong, safe and stable food system with a high level of food security. We produce far more food than we consume and have the capacity to increase food production in response to our needs, and to take advantage of growing markets in Asia. To make the most of emerging opportunities and to plan for the future we need a more integrated approach to government food policy along the supply chain.

The development of a National Food Plan is the first time the Australian Government has put forward an overarching framework for its role in the food system. Our food system relies on collaboration between the food industry, the Australian Government, state and territory governments, and the community.

The green paper is the next step in developing our first National Food Plan. We are seeking your views on a range of options. The results of this discussion will help shape our final National Food Plan.

Why does Australia need a National Food Plan?

Australia‘s food system is shaped by global and local factors such as population growth, changing food preferences, economic conditions, climate change, competition for natural resources and diet-related health issues. In coming decades there will be both opportunities and challenges for those involved in growing, processing, moving and selling food—and for all of us as consumers. The National Food Plan aims to strengthen our food system so we can all respond to these opportunities and challenges.

The National Food Plan will provide an integrated approach to food-related policies and programs for the benefit of food businesses and consumers. This will ensure Australia has a sustainable, globally competitive, resilient food supply that supports access to nutritious and affordable food.

Everyone is encouraged to comment on the green paper, particularly the options and potential directions it discusses. The Australian Government wants to hear from you before making decisions on any changes or new initiatives. Your feedback will help define our future food system. For a copy of the green paper, including full details of the consultation process and information on the development of the National Food Plan, visit daff.gov.au/nationalfoodplan.

Seizing new market opportunities

A growing world population—and changing food choices in Asia—will provide new opportunities for Australia’s food industry. Global food demand in coming decades will shift to higher value and more protein-rich foods like meat.

World food demand is expected to rise by 77 per cent by 2050. Most of this growth will occur in Asia where demand will double. Our food sector has strong prospects over the long term, given our proximity to Asia, and our strengths in key growth commodities like beef, wheat, dairy products, sheep meat and sugar. Strong growth in the demand for processed food is also expected.

To take advantage of these opportunities we need to make sure that our food producers have access to the technology and skills to increase production, have the infrastructure that will efficiently connect them with consumers and have access to global markets.

What the government plans to keep doing:

• Work to reduce trade barriers faced by Australian food exporters
• Promote the liberalisation of trade in food, through the multilateral trading system and through regional and bilateral trade negotiations
• Pursue free trade agreements which benefit Australian food exporters and consumers
• Provide market development assistance, information and support to Australian companies expanding into emerging markets
• Work cooperatively with the food industry to capitalise on new opportunities
• Improve export and import services to make them more efficient and flexible for businesses

What the government does not plan to do:

• Introduce new trade barriers
• Restrict food imports - other than for food safety, plant or animal health reasons

The government would like your views on how best to seize new market opportunities, including whether to:

• Increase the government’s network of representatives in key export markets over the next five years to help Australian businesses take advantage of new market opportunities through improved market access
• Improve our understanding of the infrastructure needs of the food industry to better inform private and public sector decision making about infrastructure
• Review legislation to identify ways to improve Australia’s import and export systems including introducing flexible approaches in cooperation with stakeholders

Supporting a competitive and productive food industry

Growing international and domestic food markets will create substantial opportunities for competitive and productive food businesses in Australia. However, food businesses will face strong overseas competition. Changes in the domestic economy will also create extra challenges for our food industry. Continuing innovation and increased productivity growth will be needed to remain globally competitive.

The Australian Government will continue to support the sector’s competitiveness and productivity to help it reach its full potential in the coming decades. Importantly the government will continue investing in innovation to help the food industry find smarter ways to do business.

This includes public investments, providing incentives for private investment and encouraging the adoption of new technology. Overall, the government believes a market-based policy approach remains the best way to help Australian food businesses take advantage of future opportunities.

What the government plans to keep doing:

• Ensure a competitive economy and stable business environment, including a robust and effective competition law
• Support a national innovation system with public investment in science, research and development
• Promote study and careers in science, including agricultural and food science
• Work with industry and others to meet labour and skills needs
• Reduce red tape and pursue better regulation to reduce costs to business
• Maintain Australia’s largely pest-and-disease-free biosecurity status
• Progress policy initiatives to address climate change and reform drought policy
• Invest in public infrastructure and improve national infrastructure planning and regulation
• Develop a strategic policy for the regulation of agricultural and veterinary chemical use

What the government does not plan to do:

• Tell farmers what to grow or people what to eat—except when it is necessary to protect public safety
• Restrict competition between businesses—competition is a driver of business innovation

The government would like your views on how best to support a competitive and productive food industry including whether to:

• Increase funding of rural research and development over the next 10 years to help produce more food with less inputs
• Improve rural research and development to encourage innovation, improve productivity and boost international competitiveness
• Develop a national strategy on modern biotechnology in agriculture, including genetically modified crops
• Set up an industry-led working group to develop a strategy to help improve access to the labour and skills needed to support the sector
• Work with industry to examine options for better managing supplier/supermarket relationships
• Increase efforts to improve national consistency of food standards and safety regulations to reduce unnecessary costs to businesses
• Improve the regulation of minor use chemicals and develop a national approach to chemical residue monitoring in fresh produce
• Prioritise efforts to further reduce red tape for food businesses and consumers

Why do we need foreign investment?

Australian investment alone is not enough for our food industry to continue to grow, so foreign investment remains critical to the ongoing success of our agriculture and food sectors. Foreign investment in agriculture supports production, creates jobs and contributes to the prosperity of rural communities and the broader Australian economy.

The Australian Government has well-established arrangements under which foreign investments are examined and applies a rigorous national interest test to significant foreign investment applications. All owners of land and agribusinesses are subject to the same Australian laws and regulations dealing with competition, tax, governance and other issues.

To improve the data available on the level of foreign investment in Australian agriculture, the government funded the Australian Bureau of Statistics to undertake surveys over the next ten years on foreign ownership of agricultural land and water. The government is also consulting stakeholders on the development of a Commonwealth foreign ownership register for agricultural land to further boost transparency without imposing unnecessary burdens on investors or duplicating work already undertaken by state and territory governments.

Regional Australia—heart of the food system

Regional Australia plays a central role for the food industry in Australia and is responsible for producing the majority of food on the tables of Australian families. More than 90 per cent of jobs in food production and about half of all food processing and manufacturing jobs are located in non-urban areas.

A vibrant food industry will make a significant contribution to economic prosperity, employment and community wellbeing in regional Australia, as will actions that contribute to the competitiveness and productivity of food businesses.

The Australian Government will continue to work in partnership with communities, state and territory governments and the private sector to build on the self-reliance of communities and regions, and encourage regional communities to identify opportunities to diversify and strengthen their economic base.

The government is providing funding for regional development on a wide range of issues including infrastructure, water, energy, education, communications, health, skills and the environment. Based on regional needs, some of these investments will contribute to regional food industry.

The government continues to work collaboratively with stakeholders to identify comparative advantages and evaluate related opportunities for regional industries including the food sector.

Why is investment in innovation and knowledge so important?

Investment in innovation and knowledge helps businesses identify new and higher value market opportunities, create new products and improve efficiency.

Innovation will be crucial to sustaining and growing the Australian food industry especially given the anticipated growth in domestic and international consumer demand for food.

Investment in rural research and development (R&D) is one way the Australian Government encourages innovation in the food industry, leading to improved productivity and international competitiveness. The government encourages innovation in the rural sector and across the supply chain through its investments in rural R&D corporations, CSIRO, Cooperative Research Centres and other avenues.

The Australian Government’s total investment in science, research and innovation was estimated at $9.08 billion in 2010–11, up from $4.97 billion in 2002–03.

The government is seeking feedback on options to further improve innovation across the food supply chain, which could include:

• increasing public funding of rural R&D over the next 10 years
• improving the rural R&D model to enhance its effectiveness and efficiency
• increasing innovation in the food manufacturing sector through improved collaboration
• developing a national strategy on modern biotechnology in agriculture (including genetically modified crops).

Maintaining Australia’s food security

Australia has a high level of food security and most Australians have access to a diverse range of safe, affordable and nutritious food. However, some Australians, such as people living in remote Indigenous communities, those on low incomes or people with limited mobility, may face difficulties accessing and affording nutritious food.

The Australian Government remains committed to improving food security for vulnerable communities and individuals by providing income support safety nets and related services. The government will continue to work with state and territory governments and non-government organisations to implement initiatives and examine possible new approaches to these complex issues.

There are some long-term environmental challenges to food production in Australia which some suggest could pose a risk to food security. The government is committed to supporting ongoing competitiveness and productivity, while maintaining and improving our natural resource base, and assisting food producers to adapt to climate change and drought.

Even though Australia’s food supply is secure overall, we must prepare for natural disasters, adverse weather conditions and other sudden and unexpected events, such as food contamination incidents. Australian governments and the food industry are working to develop further strategies to mitigate risks and maintain continuity of the food supply in a major emergency.

What the government plans to keep doing:

• Work to ensure that we have a strong food production industry that can meet the food needs of Australians
• Support research, development and innovation that improves our ability to produce food
• Work to manage risks that threaten our natural resources
• Manage the potential impact of coal seam gas and large coal mining developments on water resources, including supporting an independent expert scientific committee
• Develop a national framework with state and territory governments on coal seam gas that will address key community concerns on water management, multiple land use, best practice and co-existence
• Help food producers adapt to the impacts of climate change and drought
• Support disaster response preparedness and industry resilience
• Maintain social security safety nets and provide support for individuals and families in difficulty
• Work with state and territory governments and non-government organisations to improve access to safe and nutritious food for vulnerable communities and individuals

What the government does not plan to do:

• Interfere with trade, or people’s choices, by seeking to make Australia solely reliant on its own food supply

The government would like your views on how best to maintain Australia’s food security including whether to:

• Publish a State of the Food System report on issues affecting Australia’s future food production capacity and food security which could also include enhanced land-use and foreign ownership data
• Develop strategies to reduce risks and maintain continuity of the food supply in a significant national emergency
• Expand support to remote communities outside of the Northern Territory where a store is commercially non-viable but essential for food security

Improving our natural resource base

A strong natural resource base is essential for maintaining Australia’s capacity to sustainably produce food and will ensure our farming and fishing industries have a bright future.

Australian farmers and fishers are working to improve productivity, profitability and environmental outcomes through more sustainable farming and fishing practices.

The Australian Government will continue to support improved environmental performance of Australia’s food industry, especially agricultural and fisheries production. At the same time, the government will invest in rural research and development to encourage innovation in sustainable farming and fishing practices.

What the government plans to keep doing:

• Work to ensure Australia’s natural resource base has the capacity for ongoing production of food and delivery of other ecosystem services
• Collaborate with industry, communities and governments to help coordinate public and private investments in natural resource management
• Use rural R&D partnerships with industry to encourage ongoing innovation in sustainable farming and fishing practices
• Support provision of better soil and land information to help land manager decision making
• Progress water reforms to restore the health of river systems, support the sustainable water use and help irrigators and communities adjust to a future with less water
• Ensure Australian fisheries and aquaculture industries are environmentally responsible, profitable and competitive, by reviewing key policies on harvest strategies and bycatch
• Implement the National Waste Policy, and work with community and industry to benchmark performance and identify ways to reduce, and making use of existing, food waste
• Help land managers to reduce carbon pollution and increase the amount of carbon stored on the land

The government would like your views on how best to improve Australia’s natural resource base including whether to:

• Enhance the effectiveness of current work aimed at improving soil and water quality taking into account the recommendations of the Parliamentary Working Group on Water, Soil and Food
• Develop a cross sectoral soils research strategy, to set priorities and improve outcomes

How will food producers do more with fewer natural resources and a changing environment?

Australian food businesses are working to improve productivity, profitability and environmental outcomes and produce more food to meet global demand—with increasing constraints on land and water, and increasing energy costs. They are doing this through more sustainable farming and fishing practices, pursuing new markets and innovation in business practices. Overall, the way we manage native vegetation, soils, water and fisheries is improving and this trend needs to continue over the long term to ensure a sustainable food supply.

The Australian Government supports improved environmental performance of Australia’s food industry, focussing on agricultural and fisheries production, through a suite of targeted policy and program measures. This includes Landcare, investment in R&D, incentives for private management of natural resources, and national frameworks/guidelines such as Australia’s Biodiversity Conservation Strategy 2010–2030, Fisheries Harvest Strategy Policy 2007 and Native Vegetation Framework 1999.

The Australian Government is continually improving its approach to ensure Australia can maintain an internationally competitive food industry as well as a healthy natural resource base. Through the green paper, the government is seeking feedback on options to increase productivity growth in a changing climate, which could include:

• increasing public funding of rural R&D over the next ten years
• developing a cross sectoral soils research strategy, to set priorities and improve outcomes

Supplying safe and nutritious food

The health of Australians depends on access to safe and nutritious food. The Australian Government is committed to making sure our food supply remains one of the safest in the world. We will build on existing safety systems to provide a more proactive approach to control both known and emerging food-borne hazards and keep pace with the pressures of increased global food transport and trade.

Despite the availability of a high quality food supply, many Australians have poor diets. The government will continue tackling poor health and nutrition through its initiatives to encourage healthy eating and its work with industry to enhance the nutritional quality of food.

Is imported food safe?

All food sold, whether imported or produced domestically, must meet Australia’s food standards. Imported food is monitored at the border through a risk based inspection system. Last year 16 827 shipments were inspected and only two per cent didn’t meet the standard—most non-compliance was due to problems with labelling.

Imports make an important contribution to Australia’s food supply. Imports of out-of-season foods help meet consumer demand for year-round supply and are also important for Australia’s food processing sector. Most imported food is processed, such as beverages, confectionery and some frozen vegetables.

You can find all the facts and figures about the Australian Government’s imported food inspection program at daff.gov.au/aqis/import/food/inspection-data.

What the government plans to keep doing:

• Ensure that our food system protects consumers without being unduly burdensome on industry
• Continue to require all food sold in Australia, whether imported or produced domestically, meets Australia’s food safety requirements
• Require food produced or processed using new technologies to be assessed as safe before being allowed to enter the food supply
• Monitor and investigate foodborne illness
• Develop a National Nutrition Policy to identify, prioritise, drive and monitor nutrition initiatives
• Promote healthy eating and good nutrition to all Australians
• Work with industry to reformulate foods to improve their nutritional quality and implement appropriate food labelling
• Improve food labelling to help consumers make more informed food choices
• Monitor industry’s efforts to limit the marketing of unhealthy food, including advertising to children
• Fund the Stephanie Alexander Kitchen Garden Program until 2016

What the government does not plan to do:

• Require imported food to meet different standards than domestically produced food
• Ban new technologies for use in food production when proven safe

Contributing to global food security

During the past 50 years, global food production has generally increased, even on a per-person basis. Between 1961 and 2008, world population grew by 117 per cent while food production grew by 179 per cent. Nevertheless, the number of chronically undernourished people has increased, not decreased. This is a clear reminder that ensuring an adequate food supply—globally or nationally—does not guarantee that all people have enough to eat or that hunger will be eradicated.

Many people suffer chronic hunger because of inefficiencies and waste in distribution systems and inequality in food purchasing power due to poverty. In some regions, food distribution systems are compromised by political instability, corruption and war.

As a consequence, approximately 1 billion people around the world suffer chronic hunger, with the Asia-Pacific region home to the largest number: 578 million.

It is in Australia’s national interest to help improve global food security which in turn contributes to social and political stability, and global economic growth.

Australia’s food industry makes an important contribution to global food supplies. Australia also provides technical assistance to developing countries to help them improve their capacity to sustainably produce and buy food. The Australian Government’s ongoing advocacy of reforms to global agriculture and food markets also helps create opportunities and incentives for developing countries to increase their food production and income.

What the government plans to keep doing:

• Work to achieve economic and trade policies at global, regional and national levels that improve outcomes for developing countries
• Advocate reforms to global agriculture and food markets
• Help developing countries take full advantage of the benefits of trade liberalisation including building developing countries’ capacity to negotiate effectively when entering into trade agreements, and investing in trade-related infrastructure, such as roads, ports, wharfs and airports
• Provide development assistance to help developing countries improve their capacity to produce and buy food
• Provide short-term emergency food aid

What is the government’s position on biotechnology?

Foods produced by new and alternative technologies can bring benefits such as improved human and animal health, nutrition and food safety, as well as greater affordability and better tasting food. Technological advances also have the potential to create other benefits such as a more sustainable food supply, reduced chemical use and increased productivity.

The Australian Government supports Australian farmers’ rights to choose which crops they plant. Ultimately, their decisions will be determined by factors such as market acceptance and the costs of production. The government also supports Australian consumers’ rights to choose the food they eat.

The government is seeking to balance improving information on food labels to meet consumers’ needs, maintaining marketing flexibility and minimising the regulatory burden on industry. The government believes existing provisions for labelling of genetically modified foods are appropriate and supports the continuation of the current labelling requirements.

The government will continue to work with stakeholders in this challenging area to make the most of new technologies, but will not ban new technologies for use in food production when they are proven safe.

To address the specific trade and marketing concerns about agricultural biotechnology, and to capitalise on the opportunities these technologies present for food production, the government is proposing to work with the state and territory governments to develop a national strategy on the consistent application of modern biotechnology in agriculture, including genetically modified crops.

Improving the way that we work together

Australia has one of the best food systems in the world. Our current policies, programs and regulations affecting the food system broadly deliver a good mix of economic, environmental and social benefits for the Australian community. However, there is room for improvement in the way that the Australian Government supports food businesses and consumers. Strengthening these arrangements through the development of the National Food Plan will help Australia’s food system respond to new opportunities and challenges.

The Australian Government is just one of many participants in the food system in Australia. The decisions of individual food businesses and consumers largely guide the direction of the food system. The state and territory governments also have a major responsibility for food policy and regulatory issues.

The National Food Plan will provide an overarching framework to integrate the Australian Government’s overall approach to food issues and the food system.

What the government plans to keep doing:

• Develop and implement policies, programs and regulations that benefit the food supply chain and consumers—by reducing overlaps, duplication and gaps where possible
• Manage competing policy objectives and trade-offs as effectively and transparently as possible
• Work with state and territory governments on food-related policy and regulations to harmonise approaches
• Maintain a sound economic policy that fosters a flexible economy and stable business environment
• Reduce red tape to improve regulation along the food supply chain

What the government does not plan to do:

• Intervene in ways that create distortions in the food system

The government would like your views on how best to work together including whether to:

• Increase engagement with the states and territories on food-related policy using the National Food Plan as the basis for seeking to improve coordination
• Follow up on implementing the National Food Plan by reviewing and revisiting the plan after its release as a white paper, possibly after five years
• Create a ‘Food Council’ of relevant Australian Government ministers and key stakeholders from industry, the wider community that discusses cross-cutting and strategic food policy issues, overall implementation of food policy, and emerging risks and opportunities

Do supermarkets need more regulation?

Some stakeholders are concerned that major supermarkets are misusing their market power or engaging in anti-competitive behaviour when dealing with suppliers. Like other businesses in Australia, supermarkets can largely determine what is sold within their stores. However, consumers—through their purchasing decisions—play a key role in driving the products found on shelves.

The Australian Government is committed to providing robust competition, consumer and fair trading laws that the Australian Competition and Consumer Commission (ACCC), as the independent regulator, can effectively enforce with appropriate sanctions. The ACCC will continue to actively monitor issues in this sector and the government encourages any individual or business that has concerns about potential anti-competitive or unconscionable conduct to refer them to the ACCC for investigation.

A further measure for consideration may be an industry code of conduct under the Competition and Consumer Act, as this may provide a mechanism to change culture in an industry sector. Any additional regulation would need to be considered in light of the benefits or costs that it may bring.

The Australian Government will continue to engage with the food industry about relationships in the supply chain and plans to convene a forum to examine options for better managing supplier/supermarket relationships, taking into account available outcomes of any ACCC investigations.

Developing the National Food Plan

Over the coming months the Australian Government will continue its active conversation with everyone involved in Australia’s food system - farmers, fishers, processors, retailers, other food industry stakeholders, health professionals, researchers, other governments and consumers.

Formal consultation to discuss the green paper will last for 10 weeks and end on 30 September 2012, providing an opportunity for everyone to have their say.

Feedback from stakeholders on the green paper will inform the development of the National Food Plan white paper. The white paper will explain the Australian Government’s food policy vision for the future.

For a copy of the green paper, including full details of the consultation process and information on the development of the National Food Plan, visit daff.gov.au/nationalfoodplan.

Issues paper

• Public consultation
• Roundtable discussions
• Webcast

Green paper

• Written submissions
• Public meetings
• Roundtable discussions
• National Food Plan blog

The National Food Plan

A sustainable, globally competitive resilient food supply, supporting access to nutritious and affordable food

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• daff.gov.au/nationalfoodplan