Is Australia moving to become a ‘breadbasket’ in Asia?

It seems that Australia is poised to become a breadbasket in its own right in the Pacific region, just in time to meet the growing food demands of Asia's rising economies.

In the United States, the Midwest is known as the "breadbasket" of America for its focus on large-scale food production.

It seems that Australia is poised to become a breadbasket in the Pacific region, just in time to meet the growing food demands of Asia's rising economies.

For example, an article on the Motley Fool explains how many foreign entities are buying up Australian food producers in preparation for of increased worldwide demand. 

There's Graincorp, a $2.8 billion company that may soon be taken over by the U.S. company Archer Daniels Midland. Then there's Warrnambool Cheese, now being eyed by Canadian dairy producer Saputo.

"Asian markets are growing, and their tastes and foods are becoming more westernized, so the simple staples of meat, grain and milk have becoming prized commodities," the article reads. "You can see how these will be even more valuable in the future, so while you are out grocery shopping, think about how your stock picks can give you an enduring income in this industry."

There's more going on than a few simple mergers and takeovers. According to a recent article in Air Cargo World, Melbourne Airport is planning to under go a AU$1 billion (US$949 million) transformation that will lead to the construction of a new cargo facility. This will allow the airport to greatly expand its capacity to handle the transportation of freight around the world.

"By keeping Victoria connected, we're also providing invaluable opportunities for our exporters, particularly for time-sensitive, high-value products such as fresh seafood and meat, which are key export products to our growth markets including the Middle East and Asia," Chris Woodruff, the airport's CEO, told the news source. "To support the state government's vision of becoming Asia's food bowl, we're also investing in our freight and logistics facilities, including increasing freight apron capacity and facilities in our business park, where we are proud to have five of the top 10 global freight companies as tenants." 

Such an advancement will allow the airport to support both the local economy and also Middle Eastern and Asian countries that are experiencing a growing demand for food.

Increased exports can come at a cost, however. As demand on shippers increases, some find that they encounter more mistakes during the process. The best way to ensure that freight makes it to its intended destination consistently is to invest in proof of condition services like Cargo Snapshot, which allow users to carefully document the condition of cargo during a journey.

Posted in Informative

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