Strategy Implementation in Australian Food Agribusiness Sector

The report discusses the Australian food agribusiness sector, including food products and agribusiness, and its contribution to the economy. It focuses on Wesfarmers, a dominant player in the domestic food system, and explores international opportunities, strategies, and mode of entry to the international market. The report concludes with recommendations for the industry and government.

REPORT

Executive Summary
The discussion here is about understanding the strategy implementation in Australian food
focused agribusiness sector. This sector is an important part of Australian economy of the
regional areas through employment, business and different opportunities. The Australian
Government Industry Innovation and Competitiveness identified Food and Agribusiness as an
area of the competitive strength which is mainly for Australia and that its priorities in the growth
sector.
Statement of Purpose: The discussion of the report is mainly on how the Australia Food and
Agribusiness sector includes the different agricultural productions and food processing activities.
It is divided into food products and agribusiness which includes the food processing and
beverage manufacturing with proper inputs for the sub-sector. This includes the agriculture that
is related directly to the production of food and the key inputs are for the sub sector.
The discussion is based on a company Wesfarmers which is an Australian based supermarket
company that mainly dominates on the domestic food system. It has a greater diversity which is
for Australian food system that allows the co-existence between the smaller and the local
farming suppliers or the retailers. Although Australia accounts for less than 3% of the global
food trading market, there have been advancements in the agricultural sector which produces a
healthy surplus which is enough to feed three times of the population in a country. The
production is supported with the exporting of the products worldwide, which is traceable from
the raw commodities like the wheat and beef to the sophisticated premium goods like the
nutritional formula, cheese etc. The key drivers are for safe, smart and sustainable investment
where the flourishing industry is about the research institutions and agricultural science
companies. The focus is on improving the international opportunities for the Agri-business sector
with understanding the increased collaboration and commercialization. The improvement of
access to global supply chains and international opportunities highlight on Regulatory Reform
Agendas. The connections are set through the proximity and trading, investment and cultural
links that are important for the fast-growing Asia Pacific region which offers a cost-effective
service when compared to the competitors in Europe and North America.

Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Discussion of Australian food Agri-Business Sector......................................................................3
International Opportunities..............................................................................................................4
International Strategies....................................................................................................................5
Mode of entry to International Market............................................................................................6
Recommendations............................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................7

Introduction
Australia is recognized to be improving the productivity in the world where the focus is on
agriculture sector and high quality and integrity of good food for its exports. The countries in the
world are looking for the modernizing of the food production and then building a sustainability
on land, water and resources that turns to Australia research and skill development. The industry
overviews about the food production capabilities, where Australia has been able to earn a global
reputation for the quality of international delivery of education and research. Australia focus on
internally recognizing the integrated approach with links of learning and teaching, research and
development. The strengths are combined with innovative solving of problems in agriculture and
food production where Australia has become the major regional leader in the field of education,
research and learning (Sullivan & Gouldson, 2017).
The focus of the report is to discuss about the food agri-business sector where the discussion is
on the international opportunities in Singapore market. The sector finances and develop the
scientific approach with technology-based improvements for farming techniques. The
consistency is on the year gain which is set with diversified range of production systems and
environment. Australia has a long record of competency and improvement of the skills in the
pool of labor force, where the company like Wesfarmers have been able to adopt the different
aspects of agricultural and food security at different levels.
Discussion of Australian food Agri-Business Sector
The Australian Food and Agri-Business sector includes the processing of different activities
which includes the food products and its production. The significant is based on the economies
of regional areas through the employment, business and different service opportunities. The food
and agribusiness industry includes the 3.3% of the GDP that includes handling of the products of
agriculture business products. There have been analysis that in 2013-14, Australian Food and
industries have been spending $924 million on the research and development, with the beverage
and agricultural machinery manufacturing (Stuart, 2015). The initiatives are to determine about
smart and high value with export focusing on industries and then working over the industry
sectors to build a stronger future. The issues and the challenges are related to the market
volatility and a seasonal crisis which are under the pressure of doing something. The problems
are also about the changing needs of the customer and the desire for food assurance with placing

and taking advantage of the strong food safety and quality records. The global disruptors drive
down the margin and agriculture where the food is directly impacted by the disruptors. The
corporatization of farming is structured and serviced (Klettner et al., 2014). The automation on
farm and processing the cyber security which is an emerging concern for all companies that
includes the food and agri-business. The Australian agribusiness works on the aspects of sectors
with the practices and technology to their farms and business through services that includes the
farm management. The precision agriculture with assistance in feasibility with whole farm
management approach. The food production, safety and the tracing with focus is on important
and exports to 200 international markets. Australia has a regulatory environment with support by
the extensive government and industry framework with safety and consistency of Australia
products. The food and beverage production sector is based on the multicultural population with
multicultural population that has been able to drive the capacity across of food and beverages
(Lewis, Downes, Verghese & Young, 2017). The facilities assists in innovation and extension
process by facilitating development of new and differentiated products and new food processing.
The separation and technology packaging includes the innovation and reliability supply of higher
quality raw materials.
International Opportunities
The opportunities in the country for agribusiness to Singapore for the company Wesfarmers is
very effective as they are able to import over 90% of the food which is consumed mainly due to
the limited land availability for agriculture. Here, the reliability is on 5.5 million people who are
depending upon the international products and brands for exporting to Singapore. Australia is
one of the main suppliers, where total exports of are valued at A$1.2 billion. The food
manufacturing sector is small and efficient which is contributing to approximately 1% of
Singapore GDP. The technology gains importance in manufacturing the value chain with
enhancement of the processes and packaging for a better quality of products (Benos et al., 2016).
The share market of country local and political opportunities where Singapore has limited
agricultural land and domestic food production. The contribution is based on 0.119% of labor
force in 2017. Singapore helps in producing leafy vegetables that are consumed domestically.
The local farmers tend to produce 20% of these vegetables from cultivation and remaining soil
cultivation. The growth in consumer spending for consumer goods and food which is expected in

2014-18, with increase of 5% in local currency terms. According to Singapore Department of
Statistics and Research in April 2018, with retail sales of supermarkets and hypermarkets that
tends to go down by 2.5% month by month and 2.3% year on year. Singapore is about the cross
roads with handling the regional trading that is re-exporting comprising of 45% of total exports
(Ortega et al., 2018). The positioning has been on the regional food showcase and headquarters
with handling the major food and agriculture. Singapore has been able to sign in different factors
which includes the ratified agreements. The political standards of domestic political support for
agriculture, where the share of Australian population is residing in rural areas. There are
agricultural politics which has been able to reflect on the anxiety of the urban consumers with no
longer to understand about value agriculture. The short-term economic benefits are for handling
the greater economic benefits in Singapore with high quality and strategic agriculture lands.
International Strategies
The strategies for handling the Singapore market by Wesfarmers agribusiness includes the
entities in different countries. Here, the major focus is on the profit standards. The companies
need to deal with the international partner for supply chain management with methods of
understanding cultural and linguistic barriers, political and legal systems (Caceres, 2015). The
strategy could be resource and industry based where the firm specific differences are able to help
in determining the strategy. The resources of Wesfarmers are effective for handling agribusiness
in Singapore.
Multi-domestic: The strategy where the companies are able to achieve the maximum local
responsiveness through customizing the product offerings and the marketing strategies. It is
based on production, marketing and R&D activities.
Global strategy: It is about the connected world with allowing the business revenue to not be
confined by the borders. It can help in employing the strategy for reaping rewards of trading
market.
Transnational strategy is about handling business activities which are coordinated through
cooperation and interdependence between the operational divisions. It offers the centralization of
benefits with local responsiveness (Shiva, 2016).

The global strategic marketing is important for the agri-business in Singapore where Wesfarmers
need to focus on handling the theories related to the approaches like the firm-based approaches.
The focus is on managing the development of theories where the firms-based approaches are able
to carry a major contribution with classical or country based international trade theories (Van
Fleet et al., 2017).
Mode of entry to International Market
The joint venture is a business entity with characterization with the shared returns and risks, with
shared governance. The access a new market with emerging markets with combining of assets
and operations with the ideal process is set through emerging from perspectives partners (Walton
& Grishin, 2018). The land pricing with the input costs and machinery prices increasing with the
resulting pressures for farming where the profit allocation and the terms of existence is based on
the specific terms of existence. There is a need to handle the financial standards where the joint
ventures are not able to borrow the money, with the ownership of assets, with the members who
are retaining the ownership of assets with contribution to joint operations. The joint ventures are
depending upon the structures with providing the stability on the members with creating an
environment for agribusiness. In Singapore, the farmers need to make use of the entities and the
operations where the company works owning the equipment with contracts. The structure is easy
with trading equipment and negotiating contracts (Leguizamón, 2015). The suggestions are based
on the opportunities where the producers are able to work in agricultural industry that are under
increasing pressure for finding opportunities in a business. The company has been working on
handling the resources and business with proper completion of the sales as well. The compelling
opportunities to generate returns with existing business with formal investors working on
ownership interests in Coles and substantial ownership stake. Coles have been lagging
competitor Wesfarmers in sales growth. The joint venture is about connecting issues like
compensation for the land ownership with relation to the farm and current landlords (Geldes,
Felzensztein, Turkina, and Durand, 2015)
The challenges and the risks are related to business whose abilities or the resources does not
match. The risks are related to the objectives of the venture where the agribusiness is not clear
and then the communication is for everyone who are involved. The partners help in bringing a

different level of expertise, with investments and the assets into the venture. The different culture
and management styles generally results in a poor integration and cooperation.
Recommendations
The recommendations are related to the clarifications where the international marketing
strategies are based on handling the local market needs and developing a collaborative approach.
The understanding is of a local culture with customer needs and behaviors that leads to handling
the less successful marketing approaches. The international standards are set with comfortability
with new cultural approaches and handling the flexibility with focus on exporting products and
services to foreign markets (Cavicchi, Rinaldi & Santini, 2015). The companies employ
strategies with allowing them to circumvent to invest in staff and facilities overseas. The
business strategies are based on handling the utilization of expansion strategy where the global
companies need to attempt to homogenize and handle the adjustment of the language use in the
products.
Conclusion
The market powered in the food system of agribusiness is a major concern in Australia, where
the powerful monopoly of Wesfarmers clearly present the challenges to the smaller business and
local farmers who are struggling for co-existing the supermarket giants. The market situations
benefit consumers and then continue to do so in a short term (Banson et al,. 2015). The financial
pressures on the small and the medium food suppliers with deflationary pricing pressures and
demands are for increased production which are unsustainable and have a potential to threaten
the food security standards. Australia’s long-term food security depends on maintaining the
diversification of the producers and the products. The government mechanisms need to adapt and
ensure that the retailer behavior does not impinge on the balances of power between buyer and
sellers of Australian agribusiness.
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