Portfolio 2: CSIRO and Value Addition in the Australian Food Market

This report, titled "Portfolio 2," delves into the strategies for value addition and sophistication within the Australian food market, with a specific focus on the beef industry. The study examines the current state of Australian food production, highlighting its significant contribution to the nation's GDP and ...Read More

Running Head: PORTFOLIO 2
PORTFOLIO 2
NAME OF THE STUDENT
NAME OF THE UNIVERSITY
AUTHOR NOTE

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Executive Summary
This study is about the various ways that can be used in the value addition to the food market.
There will be talk related to the different challenges that are getting faced by the food sector and
how this adoption of marketing will lead to the value-addition will be discussed.

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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Value Adding...................................................................................................................................3
Overview of food production in Australia.......................................................................................4
Challenges........................................................................................................................................5
Application of marketing system to add value................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
CSIRO has a strong interest in the debate in placing the value addition in the economy of
Australia (Cordell, Jackson and White 2013). Value addition has an important place in achieving
the portfolio and achieving more sustainable, competitive industries which will continue with the
creation of jobs especially in the Australian region.
Value Adding
There is not just one definition to define the term value-adding. However, it has been
defined several times and also has been misunderstood often. The variedly common
misconception related to the value-adding is processing. It has to be noted that value-adding is
much more than processing. Value-adding can be of several types which can be classified as the
result that will lead to the change in the form of the product, changes result in the distribution of
food products among the markets and the advance towards meeting the consumer demand in a
better way. Different stages of value-adding can be classified as following:-
 Partial or the early-stage processing of the raw material that will lead to the basic
transformation (Pollard et al. 2014).
 Transformation into the intermediate level this will end into the food being processed to
the level that it will be available for the utilization by the consumers.
 Recovery through the by-product which could have been discarded.
 Introduction of the quality assurance standards

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Overview of food production in Australia
Australia’s food production contributes for 2% of Australia’s total (GDP), Gross
Domestic product. The total gross value of agricultural food production in 2013-2014 was 53
Billion with 41 billion contributed towards exported agricultural produce.
Australia is the major exporter of unprocessed food such as beef, wheat, cotton, sugar,
lamb, wool, wine, oil seeds, barley and dairy products and the demand for exports is consistently
growing because of comparative advantage in these commodities and by the trust in the quality
and safety of the products. The expected overall growth for export food demand is increasing
which also brings various opportunities and challenges to Australian food production industry.
It has been noted that CSIRO has not only made the processing of food more sustainable,
but also, it made massive improvements in the food processing industry (CSIRO 2017). They
have been able to achieve these goals with the help of the following activities:-
 CSIRO has developed the detection technology that helps in easy detection of the food
processing industries and also plays an important role in the analysis of data.
 The no-contact sensor technology has made a breakthrough changes and has taken giant
steps in the selection of the ore management and furthermore it has also made the food
processing more productive and safe (Tonkin et al. 2016).
 Energy and water management has made the food processing more sustainable and it
reduces cost.
 CSIRO has made and developed methods that are green and release lesser omission and
which is at the same time is cost-effective.

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 Real-time data collection and analysis all around the value chain anywhere. They have
developed technology to bring forth these changes.
Challenges
There are different and various challenges that the future of food supply could face in
Australia which are as follows:-
 Climate change and scarcity of water can be identified as the primary challenge that the
future of food supply can face in Australia. With every passing day, the global
temperature is on the rise where it is assumed that such static rise in global temperature
will affect the food production not only in Australia but all around the globe (Reynolds,
Piantadosi and Boland 2015).
 A rapid increase in the population affects the supply of food in Australia. Such rapid
increase also affects the economy of the country as a whole.
 The food producing industry is affected considerably by the disruption in the production
of food.
 The food producing and processing industry is also affected by degradation in the
ecosystem. The future food market will be massively affected by shortage of resources.
For instance, roughly 36% of the crop produced around the globe is pollinated through
animals (Devin and Richards 2018).
 The last but the most important challenge that the future of food supply in Australia could
face is the ever increasing competition in the global market. Such ever increasing
population will certainly cause influence the food market of Australia.

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Application of marketing system to add value
It is a fact that CSIRO has been teamed up with Australian Government and Geoscience
Australia in order to bring in new developments and methods for the sustainable food production
activities in Australia. They have been able to build up a network of the researchers and the
developers in order to get new ideas and invention related to making the process of the
production of food safer and greener. This people come up with the ideas and invention to bring
forth the advancements in the sector (Robinson and Getz 2014). However, they have been
successful in bringing on such methods that make the utilization of the resources lesser during
the food production activities (Friel, Barosh and Lawrence 2014). The experts and developers
have also came forward with the implementation of the idea of sustainable use of water so as to
avoid its wastage and at the same time yield a considerable amount of food production.
There are numerous marketing system theories, however the two most advanced theories are as
follows:
Network system theory: It is one such theory where the business development responsibility is
conferred solely on the distributor, however it may occur at multilevel as well. So, it mainly
deals with building relationship among different individuals. CSIRO uses this system to gather
data for accomplishment of its research on different areas like Agriculture.
AG CATALYST
AQUACULTURE
CROPS
FOOD
MANUFA
DIGITAL
AGRICULTURE
CSIRO
HORTICULTURE
FOOD SECURITY
LIVESTOCK
SUSTAINABLE
FARMING
BARS

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Value added theory: This theory stresses on delivering more values to the customers. CSIRO
uses the same principle of delivering more value to the users of its research information and
results. Apart from the CSIRO, the Joint Food Regulation System also uses the same principle
portrayed by this theory in delivering better value to the customers.
Conclusion
CSIRO is being trying to expand its network even further the eco-friendly practices
related to food producing activities. Therefore, they are seeking suggestions from different
environmentalists across the globe to improve the production of food in Australia. They are
intended in developing certain practices that will be eco-friendly and for this they are even
consulting the other countries where they might be following their suggestions and help in order
to develop such eco-friendly practices in the food producing industry and also trained their
employee to do the same. Apart from the food market, the first and the foremost thing is to avoid
hybrid as far as possible. There are extreme level of disease outbreak happening in different parts
of the world and therefore it is extremely useful in maintaining the quality of the food and also
its hygiene. Food is necessary for life and such practice of hybrid also takes life and therefore it
is extremely recommended to take proper care of the soils and to avoid use of hybrids and
concentrate on sustainable development in food production.

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References
Cordell, D., Jackson, M. and White, S., 2013. Phosphorus flows through the Australian food
system: identifying intervention points as a roadmap to phosphorus security. Environmental
science & policy, 29, pp.87-102.
CSIRO Futures, 2017. Food and agribusiness: a roadmap for unlocking value-adding growth
opportunities for Australia.
Devin, B. and Richards, C., 2018. Food waste, power, and corporate social responsibility in the
Australian food supply chain. Journal of Business Ethics, 150(1), pp.199-210.
Friel, S., Barosh, L.J. and Lawrence, M., 2014. Towards healthy and sustainable food
consumption: an Australian case study. Public health nutrition, 17(5), pp.1156-1166.
Pollard, C.M., Landrigan, T.J., Ellies, P.L., Kerr, D.A., Underwood Lester, M.L. and Goodchild,
S.E., 2014. Geographic factors as determinants of food security: a Western Australian food
pricing and quality study. Asia Pacific journal of clinical nutrition, 23(4), p.703.
Reynolds, C.J., Piantadosi, J. and Boland, J., 2015. Rescuing food from the organics waste
stream to feed the food insecure: an economic and environmental assessment of Australian food
rescue operations using environmentally extended waste input-output
analysis. Sustainability, 7(4), pp.4707-4726.
Robinson, R.N. and Getz, D., 2014. Profiling potential food tourists: An Australian
study. British Food Journal.

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Tonkin, E., Webb, T., Coveney, J., Meyer, S.B. and Wilson, A.M., 2016. Consumer trust in the
Australian food system–the everyday erosive impact of food labelling. Appetite, 103, pp.118-
127.