Issues impacting businesses in Agribusiness, Food & Beverage
An attractive sector for investors
The Agribusiness, Food & Beverage sector is evolving with resilience, as transaction multiples rose to 11.4x in the 18 months to June 2024, despite a decline in global multiples. This is driven by strong investor interest in ESG, innovation, and sustainability. Packaged foods continue to lead the market, while distillers and vintners are emerging as growth areas. Australia maintained its position as a key player, ranking sixth globally by deal volume. While no domestic IPOs were recorded due to inflationary pressures, the Asia-Pacific region showed strength, accounting for 94% of global IPO activity. Investors are showing greater focus on high-potential, future-ready businesses, setting the stage for sustainable growth. Discover more opportunities and insights in our Agribusiness, Food & Beverage Dealtracker 2024.
We cut through the complexity of compliance
Why is the Australian agribusiness, food & beverage sector so well respected? It’s because we have stringent requirements around quality and safety – that bar continues to rise as your business grows. Director duties are becoming more complex to cover issues like ESG, sustainability and cyber security. Export provides an additional level of compliance based on the unique requirements for each jurisdiction you operate in. Whether it’s tax, audit or risk, we cut through the compliance and complexity.
Technology as an enabler of change
It’s no surprise that tech advancements and innovation now dominate most sectors. Processes have been enhanced by the introduction of new technologies, enabling a positive change to business and operational efficiencies. These range across streamlining farming practices, using automation and artificial intelligence to drive production and improve harvest results, through to reducing reliance on manual labour and increasing the sustainability of agriculture. This era of digital transformation also means disruption for organisations unable to keep up with the fast pace of change, which can quickly be left behind.
Process optimisation and supply chain resilience supported by funding
With the recent floods, the continuing war in Ukraine and ongoing COVID-19 impacts, disruption is putting pressure on manufacturing and agricultural supplies. With disturbance to production in some countries, global demand for Australian produce has risen due to its perception as a reliable and quality product supplier. Based on Australia’s scale and capabilities, we can leverage current market conditions as an opportunity to improve processes, build strong trade relationships and develop resilient supply chains. The $15b National Reconstruction Fund will be instrumental to support these aspirations and build sustainable economic growth, with $500m allocated towards value-adding across agriculture, forestry, fisheries, food and fibre.
Targeting existing and new export markets
There’s rising demand for premium ‘Australian Made’ products around the world. With growing populations, rising incomes and urbanisation changing consumer preferences, this is a prime opportunity for the Australian agriculture, fisheries and forestry sectors – particularly to export into the Asian market. Beyond producing high value, high quality products, to support your growth trajectory, you’ll need to consider both State and Federal support grant opportunities such as EMDG, customs and trade efficacies, tax planning and transfer pricing.
R&D and commercialising the next great idea
Australia has a long history of innovation in the agribusiness, food & beverage space, ranging from investing in 'better for you' foods and alternatives, to the market using technology across agricultural processes, disease outbreaks or managing waste. However, we know going from concept to commercialisation can be a tricky process. The support and incentives are there, and our experts in innovation incentives understand the nuances to make the system work for you.
