Overview: Growth through Innovation - drivers and barriers to Agrifood industry growth in South Australia. Rohan Yargop

Transcription

1 Overview: Growth through Innovation - drivers and barriers to Agrifood industry growth in South Australia Rohan Yargop

2 Motivation for the project Decline of Industrial manufacturing. Economic priority. Initiatives by SA Government and industry associations to support agrifood industry. Recent studies to explore opportunities. University of Adelaide 2

3 Project Goals and Objectives Overall Goal: To develop a Growth through Innovation strategy framework for the South Australian Agrifood industry. Apply the SSI (Sectoral Systems of Innovation) principle to understand the South Australian food and agriculture sector. Identify drivers and barriers to industry growth. Identify growth opportunities for businesses through innovation. Explore opportunities for future collaboration and identify facilitators. University of Adelaide 3

4 Methodology Quantitative analysis - State of the industry survey - Online through Qualtrics - 81 respondents Qualitative analysis - In-depth interviews with food award winners - Nvivo 11; framework matrix approach - 22 interviews University of Adelaide 4

5 Food and Agriculture South Australia Gross revenue of $16.2 billion in Growth in food retail and food service sales; Decline in commodity exports. Growth in livestock, seafood; decline in field crops, dairy, horticulture. 18% of state s workforce employed by industry. Food and Wine ScoreCard , PIRSA University of Adelaide 5

6 Sectoral Systems of Innovation (SSI) Supporting research, education & technology Social, cultural & public policies Market based value chains Solution-seeking process in response to perceived opportunities or constraints Actors Knowledge base Institutions Underpinned by collaboration & co-innovation Malerba, F. (1999, May) Sectoral Systems of Innovation and Production. Paper presented at DRUID Conference on: National Innovation Systems, Industrial Dynamics and Innovation Policy, Rebild, Denmark. University of Adelaide 6

7 SSI Question for South Australia In South Australia, are the patterns of interaction between the actors, the knowledge base and the institutions coordinated and cohesive? University of Adelaide 7

8 Insights to Industry Development through Innovation Assess consumer & market trends Develop collaborative strategies Assess current industry capacity Identify potential opportunity spaces University of Adelaide 8

9 State of the industry survey

10 Percentage of businesses Please indicate the food products you currently manufacture or produce 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Specialty Convenience Seafood Meat Fruits and Vegetables Dairy and Eggs Confectionery Beverages Bakery and Cereal 0% Product categories

11 Percentage of businesses What value adding opportunities have you developed in the last 2 years? 50% Important value adding opportunities 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% New markets New Products New Processing technology New packaging technology New branding Existing product extension Move or build new premises All Value adding opportunities University of Adelaide 11

12 Percentage of businesses What do you think was the most significant innovation you have made to your business in the past 5 years? 50% Most significant innovation in the past five years 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% New products New processes Value addition Expansion of premises Brand Strategy Collaboration Innovations University of Adelaide 12

13 Percentage of businesses What was the most significant challenge you had to overcome to achieve this innovation? 50% Significant external obstacles 45% 40% 35% 30% 25% 20% 15% Unpredictability of markets Consumer behaviour Lack of resources like time Balancing work and personal life 10% 5% 0% Funding and capital access issues Lack of government support Price and cost issues Lack of skills Lack of infrastructure Others Significant external obstacles University of Adelaide 13

14 Inputs from Food Award Winners ( ) University of Adelaide 14

15 Past challenges for businesses Finding the right people Compliance Location Product Demand Logistics Finding partners to collaborate University of Adelaide 15

16 Current challenges for businesses Finding the right people Compliance Entry of chains like Aldi, Costco Dealing with supermarkets on price Cost of utilities Machinery, equipment & technology Not knowing who to go to for advice University of Adelaide 16

17 Industry challenges Pricing strategies of supermarkets Finding people with the right skills and attitude Lack of support from the Government Lack of support services in South Australia Compliance and red tape Labour and utility costs University of Adelaide 17

18 Industry opportunities Work with the tourism industry to market premium food and wine regions. Value adding to produce. Explore opportunities in fresh fruit&veg, organics, gluten free, GMO free. Expand focus to emerging Asian markets. Take advantage of new airlines flying into Adelaide. Develop technological expertise. University of Adelaide 18

19 Collaboration Co-branding Marketing campaigns and promotions Chefs for specialty products Organisations like Food SA and Brand SA E-commerce platforms Collective sourcing of packaging supplies Consolidated freight management University of Adelaide 19

20 Potential Collaborative Spaces Package & promote SA s clean, green image in targeted markets Design and develop new inter-industry collaborative strategies Promote regional food and wine areas with specialised campaigns Opportunities for collaborative action in packaging and technology services Stimulate and develop innovation forums to share ideas and expand networks Capacity building: through mentoring circles University of Adelaide 20

21 Key takeaway messages Need to encourage and facilitate inter-industry collaboration. Loopholes with respect to skills gap. Streamlining and consolidating regulatory and compliance requirements. Encouraging and supporting small businesses through growth programs and networking platforms. University of Adelaide 21

22 Thank you!