A recent report commissioned by The National Australian Bank has found that demand for safe, clean and nutritious food will be a major driver for Asian activity in Australia’s agribusiness/ food sectors over the next five years.
The report which was created by the Economist Intelligence Unit states that as purchasing power increases, so too will the demand for safe and nutritious food.
Key findings suggests that the discussion on food security is shifting from an emphasis on quantity, to an emphasis on quality as growing concerns over food related diseases such as obesity and under-nutrition continue to rise.
“Research indicates that the need to address the quality, or safety and nutritional value, of food is not simply a public health priority, but one that is increasingly being driven by the market,” the reports states.
The report has a major focus on the response by the food industry and governments towards growing consumer concerns relating to tainted food, and the changing dynamics that underpin malnutrition in Asia.
Key findings in the report include:
- Rapidly growing cross-border trade in food and livestock is making monitoring of food quality difficult
- Food companies will need to make investments to maintain the integrity of their supply chains, notably in China
- Obesity is a rising concern in the region, and companies are likely to come under pressure to join governments in the battle against it
- Global food companies have a large role to play in improving food safety, yet in some markets they are discouraged from investing.
- Demand for products perceived to be healthier is growing and market demand for safe food will be a major driver of corporate activity in the near future
- The scourge of “hidden hunger”—or micronutrient malnutrition (MNM)—in Asia is focusing minds on the challenge of improving the nutritional value of staple foods
- China’s larger food companies are increasingly looking abroad to meet future demand for safe, high-quality food at home.