Australian innovation in a global food industry

Globalisation is the key issue facing the Australian food processing industry, presenting both important market opportunities and the danger of irrelevance. Global consolidation is not limited to the major food manufacturers; the process includes retailers, who have considerable market power. International trade growth is now more rapid for processed foods than for unprocessed commodities. This set of changes is having important implications for innovation. A focus on international competitiveness in innovation has the potential to make a large contribution to the development of a thriving Australian food industry over the coming decades. Important factors in globally relevant innovation in Australia include a focus on world-class quality, successful partnerships and a favourable business environment. A range of successful partnership models has been developed in Australia, but more progress is needed. The National Food Industry Strategy and CSIRO's National Research Flagship Programs are sizeable recent responses to these challenges and opportunities.