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The value of food

Gross Food Revenue for South Australia in 2008/2009 reached $12.4 billion and since 2000 has been growing at an average rate of 5% per annum.

South Australian food captures the whole value chain. It entails not only the businesses in the value chain, but also the relationships, collaboration and the flow of information, value and materials (Figure 1) between these businesses.

Figure 1 – A schematic representation of the food value chain

Figure 1 – A schematic representation of the food value chain

Domestic demand (national consumption) remains the dominant market for South Australian food based on value (72% of market share in 2008/09) with performance growth over the long term remaining comparatively stable. Nevertheless, over the longer term, the growth of overseas exports, particularly in processed foods, has been a significant growth driver for the State’s food industry.

South Australia’s major overseas food markets are Japan, United States and Hong Kong. In 2008/09 both commodity and processed exports to overseas markets were approximately $2.4 billion and growing at 5% per annum since 2000.

Over the longer term, seasonally dependent commodity exports have experienced significant volatility whilst finished food exports are more stable, indicating the importance of value adding.

Food production (farm gate) average annual growth has been at 2% per annum since the year 2000.

Production was $3.2 billion in 2008/09. Major contributors are field crops, livestock, horticulture and seafood.

Finished food value reached $4.4 billion in 2008/09 and has been growing at an average rate of 3.8% per annum since 1996/97. The primary category drivers have been meat, fruit and vegetables.

Total employment across the South Australian food value chain reached a record 146 000 jobs in 2008/09 approaching 20% of South Australia’s workforce.