1. Agricultural Inputs, Food and Beverage Industry
Gerry McGookin
30 May 2014

2. 2

3. 3
Overview
1. The Food and Beverage Industry and FIAL
2. Industry engagement with FIAL
3. Live examples
4. Lessons learnt and next steps

4. 4
Australian Food & Beverage Facts
1. Australia’s largest manufacturing sector at 23.5% of
manufacturing and contributing $24B (2013) to the economy
2. Employs > 200 000 in manufacturing with significantly more
when agriculture is included
3. 13000 manufacturing companies, mostly small – medium
companies (SME)
4. High business churn (2011-2012 Food)
• 1794 entries
• 1554 exits
5. Government objective to double manufacturing by 2050

5. 5
Agricultural Inputs, Food and Beverage Industry
National market
Retailers & others
Industry associations
Retailers & others
T&L
Industry
associations
T&L
T&L
International markets
Retailers & others
T&L
Industry internal
capability to deliver
Suppliers to manufacturers/producers/retailers
T&L Transport and logistics
SMEs
MNEs
Networks
Research &
Development
(Academia,
research institutes)

6. 6
Some Dynamics Shaping the Industry
• Wealth of intellectual capital and resources which are not being
fully utilised to deliver maximum return for the industry
• Collaboration is key to bridging the geographical dispersion of the
industry
• Consumer desires/needs/wants are evolving rapidly and
products/services need to keep up
• Focus on incremental innovation (safer and less costly) and not
new-to-the world innovations
• Disconnect and lack of cooperation between researchers,
education institutes, industry and other support services which
restricts their innovative capacity / market opportunities

7. 7
What do we do - What business are we in?
A
Facilitating business and cultural change across the whole of Australia’s
agriculture, food and beverage industry to become more competitive by
releasing its capacity for transformative change.

8. 8
Behaviours to Achieve a Different Outcome
• Communicative and sharing – of information and knowledge
• Optimistic, energetic and passionate - about the future of the
industry
• Consultative – to enhance and support the skills in the industry
• Outcome focused – for industry success
• Accountability – to each other and the industry
• Integrative and transparent – to establish an environment of
trust and collaboration
• Encouragement – of active participation and contribution

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Does the food and beverage industry have an
appetite for such an approach to business?

10. 10
Networks Across Australia and the world

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Framing a new approach
Entrepreneurs and inventors are no smarter, no more
courageous, tenacious, or rebellious than the rest of us – they
are simply better connected
(Andres Hardadon – How breakthroughs happen – the surprising truth about how companies
innovate. Harvard Business School Press 2003)
Key business leaders can increase profitability through
increasing connections but increased productivity maximises
and then declines with increasing numbers of connections.
(Hargraves Institute)
The same is true for businesses
Presentation title | Presenter name

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Goals for a New Business Approach
1. Systems and an approach for innovation for success today and tomorrow
– The Australian F&B industry has dynamic and widely adopted processes
that supports and delivers innovation
– Businesses in the F&B sector are willing to experience, know how to
experiment and take up emerging innovations and information appropriate
for their planned needs to shape their business for success
2. The capacity and capability for performance today and tomorrow
– Stakeholders in the Australian F&B industry have the self-confidence, the
right skills and capabilities to apply to both technical challenges and new
opportunities
3. F&B industry operates at a new dimension, setting new global
benchmarks
– The industry sees the world through different lenses and there is a
fundamental shift in the way they approach challenges, markets and
investment
– Value is no longer linear and fragmented by competitive perceptions but a
network of connections and value
Presentation title | Presenter name

13. 13
Progress to date – some examples

14. 14
Project- SME Solution Centre
Technical services and technology access and capability, coupled
with technical or business training to address a technical challenge
or innovation to provide commercialise outcomes for SMEs
• One size doesn’t fit all but combined options and capabilities give wider
opportunity for engagement and support
• Geographic location has enhanced reach and influence to engagement
• Currently 10 projects in consideration or progress from Tasmania to
Cairns covering new horticultural crops to development of new
processing technology

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Finger Lime – Caviar of Citrus Fruits
www.wildfingerlime.com

16. 16
Project – Collaborative Ring Workshop®
Using a peer learning format where a group of companies share
challenges and solutions
• Pilot workshops have been run in several Australian cities where
companies were asked to share 2 challenges each with peers
from industry, with at least one challenge being export related
• For every challenge, there were
2.5 - 4 solutions generated by peers
>$20m in potential savings and/or new revenues
• Next steps are ongoing connectivity to continue business
support and develop local clusters

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Innovation Catalyst Program®
FIAL Food Futures – A Catalyst Approach
Tested with 15 Food companies – delivered >$15M in value
Increases the success by empowering businesses through sharing information
and building capability over a 6 month duration
• Understanding current performance and identify where to focus to:
• Develop people
• Build new capabilities for the future
• Access new information and contacts
FIAL is supporting:
12 Clusters
Cluster – 20+ companies
15 scholarships in each state for SMEs
5 companies recruited from large companies
Open to all companies in the Australian Food & Beverage sector

18. 18
Vital – Allergen Calculator
http://allergenbureau.net/

19. 19
Lessons Learnt
• Multiple solutions are needed to support the range of
opportunities
• New ventures can create strange bedfellows that need time to
learn and work smoothly together
• Start working together assuming positive intent and mutual
benefit
• Key leaders are always needed but can’t be the only drivers
• While its not always equal in capacity, everyone brings benefits
and capabilities that are needed by the group

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Next Steps
• Form broader, more virtual clusters of practitioners that share
learnings and benefits
• Continue to foster the connections from the Collaborative Rings
and catalyst clusters
• Complete a base line survey on industry reward for thought
change in collaborations and clusters
• Develop additional options for connection and champion
cluster initiators where practical

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FIAL’s Vision
Working in 2023: Australia’s food and beverage
industry collaborating to drive growth and
profitability across the entire value chain.

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w www.fial.com.au
Thank you