The most basic human need is food and water, and all over the world many producers in different countries are addressing ways to meet global food demands. Australia, a large exporter of agricultural products has an important role to play. There are many challenges ahead.

The single greatest asset in agriculture is people, and globally the farmer is getting older. This is consistent with our ageing population, as the baby boomers reach the retirement years. It is however, most important that the acquired knowledge and skill involved in food production is passed onto the next generation of farmers. There is a growing awareness of this, with some good examples being the New Zealand dairy industry through Dairy InSight and the Manitoba Agriculture, Food and Rural Initiatives Canada. Developing pathways into farming in Australia will need to be addressed if we are to remain globally competitive.

Where is the wool?

Fashion week in Paris, and there are many fine sights, but very little wool. In the world of organics, healthy living, and environmental conscientiousness, there should be a place for wool. Yet walking Avenue des Champs Elysees, it is evident that somehow the merits of Australian merino have failed to be promoted.

Even in Canada at minus 23 degrees Celsius, when a light warm natural fibre should be the premium choice of every shivering consumer, there appeared to be little use or knowledge of the benefits of wool. Australia is the world’s largest producer of merino wool; this is a product that is still ideal for much of our clothing needs.

Global wheat trade is not a fair trading environment. There is a difficulty in gaining a competitive advantage in a commodity based product. But wheat isn’t wheat the world over, and Australia has a reputation for producing a quality product; clean and low moisture. The Australian grower has certainly been advantaged by the efforts of AWB Ltd. ‘AWB’ has become a label, a brand name of quality and certainty. This long standing reputation of providing a quality product at the specifications that the miller requires has added a great deal of value to the Australian economy and wheat industry, and should not be discarded.

“Be good and tell and sell it.” Australian farmers are good environmental managers, and we need to continue to be proactive in enhancing our environmental management skills. But we must also promote ourselves to Australia’s urban population.

The legislation currently being imposed upon the European Union and Californian agriculture is not only enormous, but also built upon voter perception instead of science. Regulation, just to be seen to be ‘doing something’ doesn’t necessarily help the planet. This is now having stifling effects upon the viability of industry. If we want sound environmental management, this is best achieved by a responsible viable agricultural industry.

“The most profitable day on my farm is the day I sit down and fill in my subsidy forms” (UK Farmer). Although it be may sound attractive to be subsidized, the subsidy programs tend to develop inefficiencies and stifle innovation. Of the farmers in Europe receiving subsidies, only the top 25 to 50% of producers will remain viable - the remainder will eventually exit the industry. There is continued movement toward a reduction in farm subsidy programs; although it should be stated that global food and trade production will never be completely liberalized. The expansion of the European Union from fifteen to twenty-six countries will put huge pressure upon the Common Agriculture Policy, and the Europeans are beginning to look at the implications of this. The United States Farm Bill however, tends to restrict long term continuity of agricultural policy by its complete rewriting every five years. Agricultural industries need clear long-term policy framework to set direction, and a gradual removal of US subsidies would both assist US and Australian agriculture. But don’t hold your breath!

If you think land prices are expensive here, go farm in the Netherlands. One square meter of agricultural land costs up to $170 Australian. And the race to acquire more farming land across the world is on. The urban sprawl is influencing land prices, yet it is mainly the ability of farmers to manage larger holdings, long term stable interest rates, and the benefits of scale that are making land prices skyrocket. Global farm debt is increasing, with perhaps a correction in the market still to come.

The Australian and New Zealand lamb industries are more complimentary than competitive. The production of prime lamb coming out of New Zealand appears to target the European market very successfully, aiming for a 17 kilogram carcass, with excellent product branding. The heavier export lambs produced in Australia are suited to the American consumer. But general lamb consumption in the US is small, and is priced at a higher level than US beef. There needs to be continued promotion of both the quality characteristics of lamb and the many ways to prepare this food within the United States.

There are large benefits to be gained through biotechnology. Genetically modified crops aren’t the ‘silver bullet’ for agriculture. Some of the dollar savings in chemicals offered through GM crops will be swallowed up in plant breeder royalties. However, the benefits are very good and if Australia is to remain competitive, the grains industry must have access to this technology. The reduction in both chemicals and nitrogen fertilizer will have positive outcomes for the environment, as well as the rotational options that this technology affords. The huge move toward bio-diesel, with Europe aiming for 15% by 2015 will increase the need for energy crops; genomics and GM should play an important role in this.

As I traveled, I met farmers quietly going about their business; growing crops, raising livestock, feeding the world. Next time you eat give a thought to those whose task it is to meet your basic human need… food.