"Australia Needs to Establish a National Plan for Enhancing Plant Protein Production to Fulfill Future Food Demands"
A new report by Food Frontier has highlighted the potential for Australia to strengthen its position in the global plant protein market, but also emphasised the challenges that need to be addressed to achieve this goal.
The report underscores the importance of localising production to enhance supply chain resilience and reduce exposure to trade volatility. Currently, Australia exports 41 million tonnes of protein-rich source crops annually, but imports 118,000 tonnes of plant protein ingredients. Domestic production can add significant value to these crops, providing greater economic certainty for farmers.
Australia's plant protein manufacturing sector includes six firms, with Manildra Group being the largest and oldest. However, strategic investment in regional hubs, shared infrastructure, and capital co-investment frameworks is proposed to scale up manufacturing. This investment in shared R&D platforms for crop breeding, processing optimization, ingredient functionality, product application, and byproduct valorization is recommended to drive innovation and competitiveness.
The report identifies high costs and supply chain gaps as key challenges for ingredient producers. These gaps, along with inconsistent logistics and utility services, and fluctuating raw commodity markets, need to be addressed to compete with cheaper imports. Global buyers, especially in Asia, are looking for sustainable and traceable ingredients aligned with Australia's production strengths.
Uptake of plant proteins is hindered by limited awareness or understanding among food manufacturers and a lack of technical support. Building the workforce and regional supply chains through targeted training, farmer engagement, and regional ecosystem development is recommended. Financing is also a challenge, as investors are cautious without catalytic public co-funding.
The demand for plant proteins is high among domestic manufacturers, with 12% of nearly 3,000 audited products including such ingredients. Consumers want options high in protein and rich in fibre, with clean-label and allergen-free formulations. The report highlights the opportunity for Australia to secure a leading role in the next wave of global plant protein diversification.
However, the report also points out that Australia is at risk of losing market share to countries with better policies and a national plan. The Australian government should establish a national taskforce to set a country-wide strategy for plant protein manufacturing. Targeted marketing, reformulation incentives, traceability systems, and data on ingredient usage and trade flows are suggested to drive demand generation and reduce adoption barriers.
The report also identifies challenges faced by manufacturers working with industrial hemp due to outdated and inconsistent regulations. Shifting dietary patterns are fuelling the adoption of plant-based foods, and the report suggests that with national leadership and coordinated implementation, Australia can position Australian-made ingredients as premium, provenance-led products.
Despite the challenges, Australia's position as a global leader in lupin production and a major producer of wheat, barley, and canola offers a strong foundation for growth in the plant protein sector. The report concludes that with the right strategies and investments, Australia can capitalise on this opportunity and secure a leading role in the global plant protein market.
Unfortunately, the report does not provide information about the specific national authority in Australia responsible for supporting plant protein production as recommended. This is an area that requires further attention and clarification to ensure the successful implementation of the strategies outlined in the report.
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