Rural
23 July, 2024
‘One-size-fits-all will no longer suffice’
A recent study by AgriFutures Australia has revealed what drives new revenue opportunities for Australian rural industries, offering a roadmap for resilience and growth.
This landmark piece of research highlights the importance of tailored support and investments, ensuring that every unique sector can thrive amid a rapidly changing agricultural landscape.
‘New revenue opportunities for AgriFutures Australia’s rural industries’ project was commissioned to align with one of the 16 strategic priorities laid out in AgriFutures Australia’s Research and Innovation Strategic Plan 2022-2027, namely ‘identifying new revenue streams’.
This project, the first major piece of work under the priority, was commissioned as a scoping study to help understand where new revenue streams could exist and be developed across 28 of AgriFutures Australia’s levied and emerging industries, and other rural industries.
New revenue streams are important for these industries in many ways - they provide income diversification, promote sustainable practices and innovation, foster economic growth and job creation in rural areas and strengthen Australia’s competitive position in the global market.
Mike Pepperell, Associate Director of Consulting and Implementation Services, who delivered the report, set out to determine the key drivers and enablers of reveue opportunities that reflect where industries within agriculture think these opportunities are going to come from.
In a comprehensive study involving over 130 interviews across all Australian states and territories, opportunities which aligned to six common themes as drivers or enablers emerged: (1) consumer expectations; (2) value-add, export and niche markets; (3) collaborating along and across value chains; (4) carbon, biodiversity and natural capital markets; (5) genetics; and (6) agtech.
“What we rapidly realised was that each of these sectors were at diff erent stages of maturity, and our interviewees had different levels of propensity to embrace change and new opportunities. After lots of testing, nearly every opportunity we saw fell into one of those six categories, but they weren’t mutually exclusive,” Mr Pepperell explained.
The report also indicated that having a clear roadmap for investment is crucial for encouraging innovation and technological advancements that align with the identified revenue drivers.
“It was quite clear governments and researchers need to have a greater appreciation of the individual circumstances of each industry sector, and tailor their investment plans in the knowledge that there’s not one size that fits all,” he said.
Addressing the specific needs and circumstances of each industry at each life-cycle stage can support more effective growth and diversification.
Researchers also investigated producers’ approaches and barriers to adopting new revenue opportunities.
“At the end of the day, to take on a new revenue opportunity that is different to what you’ve been doing in the past, having skills, experiences, capabilities and resources is one of the leading factors that can hold the individual business back. We’ve identified these amazing opportunities, but the people who stand to benefit the most from them may not be able to, even if they have the willingness and desire to,” Mr Pepperell said.
“The insights from this extensive study demonstrate that business as usual and ‘one-size-fits all’ strategies will no longer suffice.
By prioritising relevant opportunities with adequate support, Australia’s rural industries can unlock these new revenue streams uncovered in the report, delivering our farmers and producers real returns, as well as prepare them to thrive into the future.
For more detailed information, click to download report here:
https://agrifutures.com.au/product/newrevenue-opportunities-foragrifutures-australias-ruralindustries/
To find out more about AgriFutures Australia’s research and publications, click to visit the Knowledge Hub:
https://agrifutures. com.au/knowledge-hub/
