The Australian Food Industry. An Introduction

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1 The Australian Food Industry An Introduction

2 content: The Australian Food Industry has developed in response to changes in our physical, social, technological, economic and political environment. This is evident in the structure, operations and products of the Australian Food Industry. The industry contributes significantly to the gross domestic product (GDP) and is a major employer.

3 Outcomes to be Assessed H1.2: Examines that nature and extent of the Australian Food Industry. H1.4: Evaluates the impact of the operation of an organisation within the Australian Food Industry on the individual, society and environment. H3.1: Investigates operations of one organisation within the Australian Food Industry.

4 Where will this be assessed in the HSC Exam? In the HSC Examination students should expect to answer questions on the Australian Food Industry (AFI) to the value of approximately 25% of the paper. Questions may require students to integrate knowledge, understanding and skills developed through studying the entire course. The paper may include; Multiple Choice Questions Short Answer Questions (which may include parts) A Structured Extended Response Question, which include 2 or 3 parts with 1 part worth at least 8 marks OR An Extended Response Question (approximately 600 words)

5 What is the Australian Food Industry? The Australian Food Industry includes the organised production, processing, storage and marketing of food products. Changes in the industry develop over time, due to such factors as: New foods and technologies becoming available. Consumers being influenced towards different tastes and food habits. The population growing or declining. Companies expanding and earning more revenue. A response to global events, e.g: climate change, war, immigration.

6 SYLLABUS LINK

7 What is the Australian Food Industry? The production and supply of food for individuals and consumers is called the AGRIFOOD CHAIN. The agri-food chain consists of FOUR main SECTORS: Agriculture and Fisheries Food Processing and Manufacturing Food Retail Food Service and Catering

8

9 2007 HSC Question

10 THE AGRI-FOOD CHAIN The agri-food chain relies on each sector so no sector is independent. This means that a problem in one sector of the agri-food chain can have a significant impact on the other sectors, affecting production, manufacturing and ultimately sales and income. CASE STUDY: Cyclone Larry, 2006 (Pages )

11 CASE STUDY

12

13 QUESTIONS: Explain: Relate cause and effect; make the relationships between things evident; provide why and/or how. Explain how each sector of the agri-food chain, while independent, can affect food items in other sectors. P: Whilst each sector of the Australian Food Industry operates independently, the agri-food chain as a whole, is interdependent. E: This means that.. E: For instance; in the 2006 case study titled No Bananas for 9 Months... As a result, this affected the Food Retail sector because.. L: Overall, it is evident.

14 QUESTION 1 - Band 6 Response Whilst each sector of the Australian Food Industry operates independently, the agri-food chain as a whole, is interdependent. This means that each sector relies on one another for the success of the Australian Food Industry. Each sector of the as as important as any of the others and if there is a problem in one sector, it can have a significant impact on the other sectors, affecting production, manufacturing and ultimately sales and income. For instance; in the 2006 case study titled No Bananas for 9 Months. Cyclone Larry affected the Agriculture and Fisheries sector of the agri-food chain as 90% of the banana crops were destroyed. As a result, this then affected the Food Retail sector as the price of bananas increased to $6.00 a kilo. This ultimately reduced the sale of bananas as they were deemed a luxury item and were mainly purchased by those consumers with a higher income. Overall, it is evident that each sector of the agri-food chain relies on one another when producing and supplying food items to consumers.

15 QUESTION 1 - Band 6 Response: Peel P: Whilst each sector of the Australian Food Industry operates independently, the agri-food chain as a whole, is interdependent. E: This means that each sector relies on one another for the success of the Australian Food Industry. Each sector is as important as any of the others and if there is a problem in one sector, it can have a significant impact on the other sectors, affecting production, manufacturing and ultimately sales and income. E: For instance; in the 2006 case study titled No Bananas for 9 Months. Cyclone Larry affected the Agriculture and Fisheries sector of the agri-food chain as 90% of the banana crops were destroyed. As a result, this affected the Food Retail sector as the price of bananas increased to $6.00 a kilo. This ultimately reduced the sale of bananas as they were mainly purchased by those consumers with a higher income. L:Overall, it is evident that each sector of the agri-food chain relies on one another when producing and supplying food items to consumers.

16 QUESTIONS: Outline: Indicate the main features of. Explain: Relate cause and effect; make the relationships between things evident; provide why and/or how. Outline the impact of Cyclone Larry on the Food Processing/ Manufacturing and Food Service and Catering sectors of the agri-food chain. Explain why it is necessary to protect Australia s banana-growing industry from imported bananas.

17 Sectors of the Agri-Food Chain: Agriculture & Fisheries Agriculture is the cultivation (prepare and use) of land to produce food derived from plants and animals. PLANT PRODUCTION INVOLVES: Preparing soil for planting Selecting seeds Sowing (planting) Fertilising Irrigating (supply water to plants to help them grow) Harvesting (gathering) Storage Transporting to several locations ANIMAL PRODUCTION INVOLVES: Producing or supplying fodder/ feed and water Breeding Treating Illnesses and Diseases Transporting the animals to saleyards, abattoirs and other food processing locations.

18 Case Study: Cage or Free Range Eggs?

19 Sectors of the Agri-Food Chain: Agriculture & Fisheries Nearly 90% of the total value of Australian agricultural production comes from food. Cereals, dairy and meat are the most significant products in the agri-food chain. Our main cereal crops are wheat, oats, barley, rice, maize and sorghum. Milk and related products exported to world markets total around 3 billion dollars a year. Asian countries buy the majority of our food exports in the form of cheese, milk powder, butter. The Aust. meat industry is well established, contributing to around 7 billion dollars in export earnings. Beef, lamb, pork and poultry are our main exports. Mainly exported to Europe, Japan, Korea, Middle East, NZ.

20 Sectors of the Agri-Food Chain: Agriculture & Fisheries Australia is the second largest exporter of beef. To promote the consumption of red meat, Meat and Livestock Australia (MLA) has used a number of campaigns.

21 Sectors of the Agri-Food Chain: Agriculture & Fisheries Fisheries are also part of the agri-food chain and include commercial catching of fish or any other aquatic species. Aquaculture is an area growing in popularity and involves cultivating and harvesting aquatic plants (such as seaweed) or animals (such as clams, oysters and salmon).

22 Sectors of the Agri-Food Chain: Food Processing/ Manufacturing Most food produced in the agriculture and fisheries sector undergoes some form of processing before being sold to the consumer. This includes value adding steps such as; packaging apples in convenient 3kg bags for the busy consumer and producing rice crackers in a variety of different flavours. The value-adding sector is the largest sector of the agri-food chain, perhaps because most food items are not suitable for consumption in their raw form.

23 Sectors of the Agri-Food Chain: Food Service and Catering This sector prepares and serves food and is often referred to as the hospitality industry. It involves all food items served to customers in, for example; School Canteens Restaurants Takeaway Food Stores Catered Functions Hospitals Prisons Airline Flights

24 Sectors of the Agri-Food Chain: Food Retail This area of the agri-food chain provides places where consumers can purchase processed food items. Food retailers vary in size and dominance and include large, national food chains, such as; Woolworths and Coles, and smaller stores, such as the corner stores, petrol stations, butchers and bakeries.

25 2010 HSC Question

26

27 Development One-stop Shopping Irrigation Convenience Meals Home Delivery Service Genetic Engineering Value-added foods rather than primary produce Internet Shopping Australia s clean green image Production of low fat animal products Sector Description

28 Development Sector One-stop Shopping Food Retail Irrigation Agriculture & Fisheries Convenience Meals Food Processing & Manufacturing Home Delivery Service Food Retail Food Service & Catering Genetic Engineering Agriculture & Fisheries Value-added foods rather than primary produce Food Processing & Manufacturing Internet Shopping Food Retail Australia s clean green image Agriculture & Fisheries Production of low fat animal products Food Processing & Manufacturing Description

29 Development Sector Description One-stop Shopping Food Retail Supermarket shopping, loss of specialist retailers like butchers and greengrocers, and a reduction in small businesses. Irrigation Agriculture & Fisheries The process in which water is brought to dry land through artificial means, such as pipes, hoses or ditches. Increases yield and reduces crop losses. Convenience Meals Food Processing & Manufacturing Used for food service and catering. Meals which require little or no preparation. Home Delivery Service Food Retail Food Service & Catering Purchased items delivered to the purchaser s door (usually for a free). Genetic Engineering Agriculture & Fisheries Transfer of genes from living organisms to develop enhanced qualities in plants and animals. Value-added foods rather than primary produce Food Processing & Manufacturing Trend towards manufactured foods rather than primary produce, increased profit margins and increased employment. Internet Shopping Food Retail Online shopping, home deliveries without physically visiting a retail outlet. Australia s clean green image Agriculture & Fisheries Reduction of chemical residue in plants and animals for human consumption. Production of low fat animal products Food Processing & Manufacturing Removal of fat or manufacturing procedures which reduce fat

30 Recent Developments in the Australian Food Industry

31 Syllabus Link

32 What is Emerging Technology? New technologies that are currently developing which will substantially alter the business. New technologies in the areas of food production, manufacturing and packaging are constantly evolving in the Australian Food Industry. Recent trends in the food industry are driven by many factors. Example; breakthroughs in science have led to the creation of new food products.

33 Sector Agriculture & Fisheries Emerging Technologies Agriculture: Technology used to improve conditions, e.g: irrigation, genetic engineering. Important contribution to export markets - reliable, safe and green image. Increasing variety of crops, e.g: nuts, vegetables. Fisheries: Increasing aquaculture products and market. Increasing variety of seafood on the market, e.g: abalone, fish types. Food Processing & Manufacturing Increasing number and range of manufactured food products available. Diversity in the sector - small household through to large-scale production. Growth of multinationals. Increased mechanisation and computer applications. Greater health awareness has led to an increased range of healthier alternatives, e.g: low-fat, salt-reduced, low-gi. Food Service & Catering Busier lifestyles and greater disposable income has led to more foods and meals being eaten away from home. Growth of multinational food outlets e.g: take away, hotels. Home delivery services in greater demand. Increased variety of places, food and styles, e.g: fine dining, kangaroo, fusion cuisine. Food Retail Large supermarkets and speciality shop chains gaining market share - independent small shops struggle to compete. Food is being sold in more places, e.g: petrol stations, vending machines, theatres. More convenience food solds. Internet shopping and home delivery. Health awareness has led to fresh food chains and choices.

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