Read the full 2001/02 Food South Australia ScoreCard report (pdf file, 110 kb)
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The Food South Australia ScoreCard measures and evaluates the contribution to the South Australian economy of food (and beverages) at each stage of production, processing, trade and consumption. In this way the ScoreCard measures the value of the industry as food goes from the "paddock (or ocean) to the plate."
During 2001/02 South Australia's food industry grew in most of the key performance indicators. A surge in exports supported by above average growth in the value of domestic consumption lifted gross state food revenue by $1.49 b (18%) to reach $9.82 billion1. However, strong rises in imports led to a smaller than otherwise increase in the net state food revenue measure, up 16% to $8.62 billion.
Over the last year substantial growth and record levels were achieved in all areas, with:
The exceptional growth in South Australian food revenue over the past few years has propelled the food industry above the required growth level to reach the food target of $15 billion by 2010. When the State Food Plan was developed in 1996, the South Australian food industry needed to grow at an average annual rate of 7.9 percent or around $650 million per year to reach this target. In 2001/02 the actual growth of $1.49 billion (or 17.9%) was more than double the required rate. The South Australian food industry is currently more than a year ahead of the required schedule to meet the 2010 target.
Caution in interpreting these latest trends is required. An analysis of the factors driving the growth in food revenue over the past two years suggests that these levels of growth may not be sustainable. With an average harvest during the current 2002/03 season, a decline in the headline food revenue for next year is anticipated.
Figure 1 (below) shows the extent of the Food South Australia's challenge as the difference between the underlying or historical trend growth in gross food revenue and the target growth line. To illustrate the exceptional growth achieved over the last two financial years, actual performance, as shown below, has leap frogged the required rate to meet the Food Plan target. Since the development of the Plan and target in 1996/97, the State’s food revenue growth has lifted to an average of 11.8 percent per annum2. The underlying trend growth of the food industry in the decade prior to the development of the food target was 4.9 percent per annum.
The impact of the exceptional 2001/02 seasonal growing conditions is estimated to have lifted gross food revenue by almost $550 million. In addition, higher than average export prices, combined with continuing strong domestic demand, has influenced food performance. These factors may be short-term in nature, and do not necessarily represent a permanent or structural change to the State's food prospects. While the record levels of export earnings, continued growth in value-added processing, and stronger industry wide demand chain focus are evident, a sober assessment of the underlying shifts in South Australia's food sector suggest that the industry still has much work to do before it can claim to have breached the target trend line in a structural and sustainable way.