Can this plan save our food producers?

Victoria’s state government has a plan to help its food and agricultural companies

a woman

Victoria’s state government has outlined a strategy to position its food and agricultural industries as Asia’s food bowl.

According to The Australian, Victorian Agriculture Minister Peter Walsh has setup a task force to help improve market access for agricultural producers in a wide range of industries. The newspaper reports that the task force will comprise leaders from food processing, logistics, branding, investment, exporting and primary production.

They include Bega Cheese (ASX:BGA) chairman Barry Irvin, Visy Industries Anthony Pratt, Costa Group Australia chairman Frank Costa, Kraft Foods Australia and New Zealand president Rebecca Dee-Bradbury as well as Grant Dooley, co-head, Asia, Hastings Fund Management – a former Australian consul-general in Guangzhou, China.

Last week the government hosted its first Super Trade Mission to Malaysia, Indonesia and Singapore, with 85 small-to-medium companies attending, and the largest mission to ever leave Australia. Visy Industries Mr Pratt already has a plan to drive a fourfold increase in food exports to Asia by working more closely with Visy’s customers to reduce their shipping costs. Visy produces packaging including paper, cardboard, glass, plastic, steel and aluminium cans with 70% of the company’s customers in the food and beverage sector.

The news couldn’t come at a better time for Goodman Fielder (ASX:GFF), the largest food company in Australia and New Zealand, which faces intense pressure on its margins from it supermarket customers, as they expand their private label products. Likewise, Warnambool Cheese and Butter Factory (ASX:WBC), which exports milk powder into Asia, including China, but also faces supplying milk into a market where retailers sell a litre of milk to consumers at just $1.

As Coca-Cola Amatil (ASX:CCL) boss Terry Davis recently pointed out, “If a supplier is number one in its industry they are ok, Number 2 might also be Ok, but if you are number 3 in the industry and can’t see a way of getting out, find an investment bank to sell your business.”

Working groups are being set up to report to the taskforce, to find ways of gaining market access to Asian countries for the food and agricultural industry.

Foolish takeaway

With the local automotive sector apparently giving up the ghost and taking manufacturing out of Australia, our food and agriculture industry could be one of Australia’s best shots at ensuring longer-term economic growth.

In the market for high yielding ASX shares? Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading


Motley Fool writer/analyst Mike King owns shares in Coca-Cola Amatil.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »