Despite a very positive outlook for the agribusiness sector, David Lock, chief executive at Craig Mostyn Group, doesn't believe Australia will be Asia's food bowl of the future.
Craig Mostyn Group (CMT) is one of Australia's leading diversified food and agribusiness companies, and while Lock admits that the Asian market is a growing opportunity for Australia, he's not getting too carried away.
"I don't share the optimism of those who say Australia will be the food bowl of Asia," Lock said, according to thewest.com.au
"I think Australia is a small producer of food and it will be a producer of niche products that are typically expensive and high quality.
"I do think that more Australian production will end up in Asian markets than it currently does. So if we grow the agribusiness sector, we will also grow the proportion of products that are being sold into Asia and that will be very positive for Australian agribusinesses."
Talk of Australia as Asia's 'food bowl' has continued since May last year, when Prime Minister Julia Gillard said we must be ready to take on such a role. Earlier this month, Visy Industries Australia's executive chairman, Anthony Pratt, agreed that Australia can be the 'clean food bowl of Asia' and shared Visy's intentions to expand north.
A recent study by global business adviser Boston Consulting Group found that while food production costs in Australia are much higher than in Asia, its quality management and traceablity to source make it an attractive option for the Asian market, which is keen to steer away from GM-foods and chemical residues.