Project Title

Proposal to manage student research projects in the agribusiness and food industry in 1995

Objectives

• Interest more students of business, in agribusiness and food industry issues.
• Develop linkages between research agencies and particularly teaching agencies and small to medium sized agri-food businesses who have unfilled research need.
• Enhance our Australian agri-food research capacity and knowledge.

In order to promote the food and agribusiness sector to tertiary students and to improve ties between the tertiary institutions in Western Australia and industry, the Centre for Agribusiness Marketing developed a series of agri-food scholarships.

Research

Seven scholarships were awarded over the 1995-97 period to students that wee undertaking Honours, Masters or MBA projects in food and agribusiness related topics and who had the support of an industry partner.

Outcomes

The projects that were awarded scholarships indicated that there is a healthy interest amongst students studying at tertiary institutions towards the food and agribusiness sector. More importantly, was that industry was prepared to support and encourage these projects.

Implications

The type of projects received indicated that there has been a shift away from the traditional scientific based food and agricultural study towards business and marketing oriented projects.

Project No: CUT-1A

Researcher: Ms Antonia Hodby

Organisation: Centre for Agribusiness Marketing, c/- Muresk Institute of Agriculture,  NORTHAM WA 6401
 

Contacts: Phone: (08) 9690 1516    Fax: (08) 9690 1582     E-mail: ahodby@cam.com.au

An economic analysis of the demand for food in China: Implications for Australia

Objectives

This study seeks to analyse the existing nature and structure of a number of important wholesale markets, to investigate the Chinese wholesale food demand structure and to assess its implications for the Australian food industry. It is most likely the first to use wholesale market data.

Background

China’s policy toward more market-oriented food system opens various opportunities for existing as well as potential exporters. It appears that a major component of implementing this policy is the development of the wholesale food markets. However, there is a dearth of information on how these markets operate and studies on food demand in these markets are extremely limited.

Research

The study employs a case study method to develop the profiles of these markets. The Linear Approximation of the Almost Ideal Demand System (LA/AIDS) model is applied to the data of six important wholesale markets covering the cities of Beijing (Dazhongsi), Nanjing (Zijinshan and Beiyunting), Shenzhen (Buji) and Shanghai (Caoan and Xinchang).

Outcomes

Results of the study indicate that there are substantial opportunities in vegetable oils, vegetables, fruits, meat and poultry, processed meat and seafood. These findings are found to be consistent with export and import trends. In addition, analysis on the price responsiveness of demand indicates that lowering prices could be beneficial for dried vegetables, sweet and green capsicum, leek, lettuce, root and cucumber, but may have limited benefits in grains, potato, spinach, meat and poultry and carrot. There are also indications that government intervention affects food consumption patterns and that over time, consumers are becoming more price responsive.

Implications

As a whole, China appears to be a promising market for Australia particularly for the products identified with growth potential. However, the scope of these potentials for any participant in any of the markets surveyed will continue to depend on government policies with respect to the particular industry and pertinent import regulations.

Implications

Ahamdi-Esfahani, F.Z. and Locke, C.G. (1998) ‘Wholesale Food Markets with ‘Chinese characteristics", Food Policy 23, forthcoming.

Ahamdi-Esfahani, F.Z. and Locke, C.G. (1998) ‘The Industrial organisation of the Chinese Food Economy: Socialistic of Capitalistic?’ Contemporary Economic Policy 16, 34-46.

Ahamdi-Esfahani, F.Z. and Stanmore, R.G. (1997) ‘Demand for Vegetables in a Chinese Wholesale Market" Agribusiness: An International Journal 13, 549-559.

RIRDC Project No: US-27A

Researcher: Assoc Professor Fredoun Ahmadi-Esfahani

Organisation: Dept of Agricultural Economics, AO4, UNIVERSITY OF SYDNEY NSW 2006

Contacts: Phone: (02) 9351 3559   Fax: (02) 9351 4953     E-mail: f.ahmadi@agec.usyd.edu.au

Market channel development for north Asian food and agribusiness

Objectives

• To analyse and understand structural change in food market channels in Japan and Korea.

Japan and Korea are major food export markets for Australia. Change is taking place in those markets arising from international economic forces and de-regulation. It is essential that Australian food exporters keep abreast of these changes.

Research

Analysis and discussions were undertaken in Australia and in Japan and Korea.

Outcomes

Market channels for food in Japan and Korea are changing, but they remain complex and difficult to penetrate. Australian exporters need to improve their understanding of future developments.

Implications

Australia’s research effort in understanding North Asian market channels needs to be improved.

Publications

Relevant publications are A New Japan? (DFAT 1997); Corporate Strategies and Structures: Penetrating Asian Markets (RIRDC 1995).

RIRDC Project No: SGH-3A

Researcher: Dr. Selwyn Heilbron

Organisation: S.G. Heilbron Pty Ltd,  832 High Street,  EAST KEW VIC 3102
 

Contacts: Phone: (03) 9810 9542    Fax: (03) 9249 9600
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Project Title

The Indian processed food market: Challenges and opportunities

Objectives

• To identify the opportunities for the Australian processed food industry in India, to suggest appropriate market entry strategies and to highlight areas in which India might begin to challenge Australian companies exporting processed food to third countries.

India is a major agricultural producer but its share of world trade in all but a few commodities is minuscule. The food processing sector is small – smaller than Australia’s – and like Indian agriculture, is plagued by inefficiencies. Small companies and labour intensive enterprises dominate. There are serious bottlenecks in distribution and retailing.

India’s growing consumer class is driving the expansion of food processing, for which the government has ambitious plans. The government protects the domestic industry, but some tariff and non-tariff barriers are being reduced. Foreign investment and exports are being encouraged.

Australia’s share of India’s markets for imported processed food is small.

Research

The study examined the dynamics of the processed food market in India, including factors such as the strengths and weaknesses of the domestic industry, patterns of consumption, the government’s trade and industry policies, distribution and retailing systems and patterns of foreign investment. Analysis of this information provided the basis for judgements about opportunities and challenges for Australian companies and the elements of appropriate market entry strategies.

Outcomes

The research identified a number of opportunities for Australian companies, in cereals and grain-based products, dairy products, edible oils, seafood and wine. Larger foreign competitors will invest in food processing in India; medium and large Australian companies should consider doing likewise. In the medium term, food processed in India will challenge some Australian product in regional markets such as the Middle East.

Implications

Australian companies have paid scant attention to consumer trends in India and the emergence of a significant new market there for processed food. Export marketing strategies need to take into account the diversity of this new market.

Publication

"The Indian Processed Food Market: Tradition and Change", by L. Smith and P. Ahuja, Instate Pty. Ltd., RIRDC Publication.

RIRDC Project No: INS-5A

Researcher: Mr. Dennis Gastin

Organisation: Instate Pty Ltd, 7th Floor, 5-9 Harbour View Crescent,  MILSONS POINT NSW 2061
 

Contacts: Phone: (02) 9955 2711   Fax: (02) 9955 2275

       Last updated: 28 August 1998 Copyright © RIRDC http://www.rirdc.gov.au/comp98/glc1.htm