China relations, calls for a national infrastructure strategy, news of an impending CSIRO blueprint Reshaping Australian Food Systems, and insights shared by industry experts at the forefront of Australia’s AgriFood and food and beverage sectors are just some standouts from The Australian’s Global Food Forum, held in Melbourne yesterday (25 May).
China relations, calls for a national infrastructure strategy, news of an impending CSIRO blueprint Reshaping Australian Food Systems, and insights shared by industry experts at the forefront of Australia’s AgriFood and food and beverage sectors are just some standouts from The Australian’s Global Food Forum, held in Melbourne yesterday (25 May).
With this year’s theme Beyond Borders: How to profit in a changing world, and the forum’s focus being agribusiness sector, the day was always going to focus heavily on China, but there was almost no discussion about potential growth markets including India, our new free trade agreement with it, other South-East Asian markets, or the US and UK (again, another recent FTA).
The panel discussion with Wattle Hill Capital founder Albert Tse, Minter Ellison ED International Markets Paris Zhang, and Rathbone Wine Group chair Doug Rathbone provided insights into the current mood of Chinese consumers at the moment.
Tse pointed out it is only six months since Covid lockdowns were lifted and three months since the new premier Li Qiang took office.
“There is a more cautious approach, a lack of consumer confidence. Chinese consumer confidence is linked directly, like Australian consumers, to the real estate market. When prices are high, you feel wealthier, and you spend more. At the moment prices are more subdued so that has impacted consumer confidence,” Tse said.
Zhang echoed his comments, saying there have been significant changes in people’s mindset and behaviour.
“With consumers gradually regaining confidence, higher spending is starting in some categories - tourism, restaurants, and healthcare - which we call revenge consumption. But the majority are lacking confidence in the future and focussing on more rational consumption, focussing on essential and necessary goods rather than luxury items, so brands must work harder to get back to normal,” she said.
Alibaba Group GM Australia and New Zealand, Pier Smulders, said despite restrictions put on various Australian commodities, food and beverage sectors, the platform hasn’t seen a lack of demand or interest in Australian brands and products and has continued to see growth.
“We can't control what governments do, whether it’s a local council, whether it’s a state government or a national government. We just have to be, you know, adaptable and, and, and adept and move quickly. The demand in China for Australian products is very, very strong and continues to be so. It’s of course very encouraging to see the relationship improve and the dialogue that is happening now.
“There will be opportunities that come out of that reopening. That may mean that companies that weren’t in certain markets before may be able to get some market share that wasn't there before. And there are new ways to reach customers through digital needs. Adversity, as we know in business, almost always leads to opportunity,” Smulders said.
Three highlights were the panel discussion with Bundaberg Brewed Drinks CEO John McLean, Little Oak founder and CEO Elke Pascoe, and Darrell Lea general manager Commercial Richard Glenn on diversifying exports into fast-growing markets (one of the few panels to look beyond China), Mars Wrigley GM Andrew Leakey’s discussion with The Australian senior reporter Eli Greenblat, Team Global Express CEO Christine Holgate calling for a national logistics strategy, and Bega Group chair Barry Irvin’s advice and insights from his panel looking at Stage 3 emissions.
More to come.
