FOOD SECURITY JUNE GEOFFREY ANNISON, PhD. DEPUTY CHIEF EXECUTIVE

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1 FOOD SECURITY JUNE 2016 GEOFFREY ANNISON, PhD. DEPUTY CHIEF EXECUTIVE

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3 Food Security Food security exists when all people, at all times, have the physical and economic access to sufficient safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life Food and Agricultural Organisation Note: can be individual, local, national, global 3

4 Food Security- Threats Population 9 billion by 2050 Nutrition transition diversion of biomass to meat Renewable energy diversion of biomass to biofuel Land degradation and constraints Water scarcity impact on food production Climate change impact on food production Labour shortages Human/animal/plant pandemics Australia has plans Input shortages fertilisers, energy Geo-political disruption war, trade war Market distortion speculation and volatile markets from fine balance between supply and demand. Food futures: Rethinking UK Strategy RIIA,

5 The Challenges to Food Security Popula4on Calories Water Fossil Fuels Phosphate The magnitude of the challenges are substan4al 5

6 Global Food Security Australia Government Policies Overarching Goal Food supply > Food demand 1. Increase Australian production every increment is critical 2. Capacity building overseas farming/production know-how 3. Free market trade policy advocacy a) efficient allocation of resources b) Limits speculative dealing removing volatile prices and discourages stockpiling

7 Australian Food Security- My Assumptions Food security for Australians 2050 Similar food supply as now and sufficient meat, diary, cereals, fruits/veg, fish culturally diverse i.e. still be able to get a Thai curry fresh and processed off season availability extensive choice premium, value, organic etc health focus mainstream plus special products convenience, tasty affordable Delivered by balance of government policies provide strategic priorities market mechanisms - efficient allocation of resources 7

8 Food security and Government policy Why should Australian Governments address food security? Because food is fundamental to the health and wellbeing of all Australians duty of Government Because food security can no longer be taken for granted Because civil chaos results very quickly from food insecurity 8

9 Australia s food system depends on imports Australia is self-sufficient in macronutrients (protein, fat, cho) Australia may not be self-sufficient in all micronutrients (P?) Australia is a net exporter of protein and calories Food Security Food Self-sufficiency Australian food manufacturing relies heavily on specialised ingredients, addi4ves and processing aids Food security in Australia relies heavily on imports 9

10 Australian food Supply chain Information Chemicals/ energy / water energy energy Agriculture - Produc/on Consolida/on Distribu/on Manufacture Ingredients/Addi/ves/Process Aids Manufacture Retail Ready products Distribu/on Export/ Import Food Service Retail Restaurant Consumer 10

11 Food security and market mechanisms Why should we use market mechanisms to address food security? Because markets allow the efficient alloca4on of resources (if allowed to operate) Food security requires efficient alloca4on of resources. we need to learn to do more with less Free flow of Capital for investment Goods along the supply chain (no tariffs/subsidies) Informa4on e.g. market signals, stock availability (to limit specula4on) Externality costs CO2, water etc. 11

12 The Role of the Domestic Food Processing Industry Food security assured by maintaining global trade and a compe44ve food manufacturing in sector in Australia Compe44veness is maintained by con4nuous improvements in produc4vity 12

13 Exports v.s. imports 25,000 20,000 $ millions 15,000 10,000 Exports Imports 5, Trade surplus in elaborately transformed food products as halved $6b. p.a. 13

14 Exports vs Imports

15 Innova4on Food Security Compe44ve Industry Skilled Workforce Business Investment Government Policy and Regula4on R&D Educa4on [un] Certainty Market Failures (Risk sharing and cos4ng of externali4es, posi4ve and nega4ve) 15

16 How Safe is our Food? Evaluation of 17 countries four distinct categories comprising 11 criteria: 1. Consumer Affairs: a. Incidence of reported illness by food-borne pathogens; b. Rate of inspections and audits; c. Food safety education programs; d. Labelling and indications of allergens; and e. Ease of access to public health information. 2. Biosecurity: a. Rate of use of agricultural chemicals; and b. Bioterrorism strategy. 3. Governance and Recalls: a. Existence of risk-management plans; b. Level of clarity and stability of food recall regulations; c. Number of protectionist measures against trading partners; and d. Number of recalls. 4. Traceability and Management: a. Depth of traceability system in food chain. WORLD RANKING 2010 Food Safety PerformanceMay, 2010 JOHNSON-SHOYAMA GRADUATE SCHOOL OF PUBLIC POLICY

17 Food Safety - Ranking by Country 2010 Rankings 2008 Rankings Rank Country Grade Rank Grade 1 Denmark Superior Superior 3 2 Australia Superior Superior 4 3 UK Superior Superior 1 4 Canada Superior Superior 5 5 US Superior Average 7 6 Japan Superior Superior 2 7 Finland Average Average 6 8 Holland Average Average 12 17

18 Food Manufacture creates health and wealth for the community Create Health Meet the needs of consumers by putting 2.2 billion meals a year onto the tables of consumers in Australia Ensure food is wholesome, affordable, sustainable Australian s are living longer than at any period in history Create Wealth 240,000 employees directly; 800,000 indirectly Support regional communities through manufacturing Contribute to GDP 20% of GDP is linked to our sector Earn export income so Australia can buy the things we don t manufacture $~100b turnover; $25b exports

19 Food Security- Definitions Food security exists when all people, at all times, have the physical and economic access to sufficient safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life FAO, 1996 Food Security Food self-sufficiency 19

20 Three Phases Food Industry and Preventive Health Phase 1 - Making Food Safe New technologies e.g. refrigeration, pasteurisation Quality control systems HACCP e.g. dairy Phase 2 Manipulating Nutrient Levels Low fat, Low salt, Low energy High fibre, High protein, Vit & Min fortification Phase 3 - nutrient bundling and bioactives omega-3 s, anti-oxidants, plant sterols

21 Food & health nexus is well known

22 Functional Foods

23 Functional Foods 1935 product introduced Essentially milk powder fortified with vitamins and minerals Promoted as tonic Reflected the rapid advances in nutrition with the identification of essential micronutrients Vitamins Minerals

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25 Modern Example Introduced in 1996 lowers cholesterol absorption Recommended by medical practitioners as first step to cholesterol control.

26 Conceptualising Food Policy Food Security Food Manufacturing Preven4ve Health Economy 26

27 Biosecurity Biosecurity: Closely linked to food security (globally) Protecting production systems (agriculture, aquaculture, the environment) Key threats: climate change, invasive species etc. Policy challenges: Resources Appropriate Risk assessments

28 CONCLUSIONS Securing Food (as we know it) requires a domestic food manufacturing industry and global trade A strategic framework is a sensible policy objective to optimise Secure food long term Economic benefits long term Social outcomes long term Competitiveness and productivity of agriculture and food manufacture in Australia is a policy priority More fundamentally it s a control issue Protect agricultural production systems Support a robust and resilient supply chain Keep domestic manufacturing capability for nutritious foods Government must establish a comprehensive policy framework 28