Australia is recognized to be improving the productivity in the world where the focus is on agriculture sector and high quality and integrity of good food for its exports. The countries in the world are looking for the modernizing of the food production and then building a sustainability on land, water and resources that turns to Australia research and skill development. The industry overviews about the food production capabilities, where Australia has been able to earn a global reputation for the quality of international delivery of education and research. Australia focus on internally recognizing the integrated approach with links of learning and teaching, research and development. The strengths are combined with innovative solving of problems in agriculture and food production where Australia has become the major regional leader in the field of education, research and learning (Sullivan & Gouldson, 2017).
The focus of the report is to discuss about the food agri-business sector where the discussion is on the international opportunities in Singapore market. The sector finances and develop the scientific approach with technology-based improvements for farming techniques. The consistency is on the year gain which is set with diversified range of production systems and environment. Australia has a long record of competency and improvement of the skills in the pool of labor force, where the company like Wesfarmers have been able to adopt the different aspects of agricultural and food security at different levels.
The Australian Food and Agri-Business sector includes the processing of different activities which includes the food products and its production. The significant is based on the economies of regional areas through the employment, business and different service opportunities. The food and agribusiness industry includes the 3.3% of the GDP that includes handling of the products of agriculture business products. There have been analysis that in 2013-14, Australian Food and industries have been spending $924 million on the research and development, with the beverage and agricultural machinery manufacturing (Stuart, 2015). The initiatives are to determine about smart and high value with export focusing on industries and then working over the industry sectors to build a stronger future. The issues and the challenges are related to the market volatility and a seasonal crisis which are under the pressure of doing something. The problems are also about the changing needs of the customer and the desire for food assurance with placing and taking advantage of the strong food safety and quality records. The global disruptors drive down the margin and agriculture where the food is directly impacted by the disruptors. The corporatization of farming is structured and serviced (Klettner et al., 2014). The automation on farm and processing the cyber security which is an emerging concern for all companies that includes the food and agri-business. The Australian agribusiness works on the aspects of sectors with the practices and technology to their farms and business through services that includes the farm management. The precision agriculture with assistance in feasibility with whole farm management approach. The food production, safety and the tracing with focus is on important and exports to 200 international markets. Australia has a regulatory environment with support by the extensive government and industry framework with safety and consistency of Australia products. The food and beverage production sector is based on the multicultural population with multicultural population that has been able to drive the capacity across of food and beverages (Lewis, Downes, Verghese & Young, 2017). The facilities assists in innovation and extension process by facilitating development of new and differentiated products and new food processing. The separation and technology packaging includes the innovation and reliability supply of higher quality raw materials.
The opportunities in the country for agribusiness to Singapore for the company Wesfarmers is very effective as they are able to import over 90% of the food which is consumed mainly due to the limited land availability for agriculture. Here, the reliability is on 5.5 million people who are depending upon the international products and brands for exporting to Singapore. Australia is one of the main suppliers, where total exports of are valued at A$1.2 billion. The food manufacturing sector is small and efficient which is contributing to approximately 1% of Singapore GDP. The technology gains importance in manufacturing the value chain with enhancement of the processes and packaging for a better quality of products (Benos et al., 2016).
The share market of country local and political opportunities where Singapore has limited agricultural land and domestic food production. The contribution is based on 0.119% of labor force in 2017. Singapore helps in producing leafy vegetables that are consumed domestically. The local farmers tend to produce 20% of these vegetables from cultivation and remaining soil cultivation. The growth in consumer spending for consumer goods and food which is expected in 2014-18, with increase of 5% in local currency terms. According to Singapore Department of Statistics and Research in April 2018, with retail sales of supermarkets and hypermarkets that tends to go down by 2.5% month by month and 2.3% year on year. Singapore is about the cross roads with handling the regional trading that is re-exporting comprising of 45% of total exports (Ortega et al., 2018). The positioning has been on the regional food showcase and headquarters with handling the major food and agriculture. Singapore has been able to sign in different factors which includes the ratified agreements. The political standards of domestic political support for agriculture, where the share of Australian population is residing in rural areas. There are agricultural politics which has been able to reflect on the anxiety of the urban consumers with no longer to understand about value agriculture. The short-term economic benefits are for handling the greater economic benefits in Singapore with high quality and strategic agriculture lands.
The strategies for handling the Singapore market by Wesfarmers agribusiness includes the entities in different countries. Here, the major focus is on the profit standards. The companies need to deal with the international partner for supply chain management with methods of understanding cultural and linguistic barriers, political and legal systems (Caceres, 2015). The strategy could be resource and industry based where the firm specific differences are able to help in determining the strategy. The resources of Wesfarmers are effective for handling agribusiness in Singapore.
Multi-domestic: The strategy where the companies are able to achieve the maximum local responsiveness through customizing the product offerings and the marketing strategies. It is based on production, marketing and R&D activities.
Global strategy: It is about the connected world with allowing the business revenue to not be confined by the borders. It can help in employing the strategy for reaping rewards of trading market.
Transnational strategy is about handling business activities which are coordinated through cooperation and interdependence between the operational divisions. It offers the centralization of benefits with local responsiveness (Shiva, 2016).
The global strategic marketing is important for the agri-business in Singapore where Wesfarmers need to focus on handling the theories related to the approaches like the firm-based approaches. The focus is on managing the development of theories where the firms-based approaches are able to carry a major contribution with classical or country based international trade theories (Van Fleet et al., 2017).
The joint venture is a business entity with characterization with the shared returns and risks, with shared governance. The access a new market with emerging markets with combining of assets and operations with the ideal process is set through emerging from perspectives partners (Walton & Grishin, 2018). The land pricing with the input costs and machinery prices increasing with the resulting pressures for farming where the profit allocation and the terms of existence is based on the specific terms of existence. There is a need to handle the financial standards where the joint ventures are not able to borrow the money, with the ownership of assets, with the members who are retaining the ownership of assets with contribution to joint operations. The joint ventures are depending upon the structures with providing the stability on the members with creating an environment for agribusiness. In Singapore, the farmers need to make use of the entities and the operations where the company works owning the equipment with contracts. The structure is easy with trading equipment and negotiating contracts (Leguizamón, 2015). The suggestions are based on the opportunities where the producers are able to work in agricultural industry that are under increasing pressure for finding opportunities in a business. The company has been working on handling the resources and business with proper completion of the sales as well. The compelling opportunities to generate returns with existing business with formal investors working on ownership interests in Coles and substantial ownership stake. Coles have been lagging competitor Wesfarmers in sales growth. The joint venture is about connecting issues like compensation for the land ownership with relation to the farm and current landlords (Geldes, Felzensztein, Turkina, and Durand, 2015)
The challenges and the risks are related to business whose abilities or the resources does not match. The risks are related to the objectives of the venture where the agribusiness is not clear and then the communication is for everyone who are involved. The partners help in bringing a different level of expertise, with investments and the assets into the venture. The different culture and management styles generally results in a poor integration and cooperation.
The recommendations are related to the clarifications where the international marketing strategies are based on handling the local market needs and developing a collaborative approach. The understanding is of a local culture with customer needs and behaviors that leads to handling the less successful marketing approaches. The international standards are set with comfortability with new cultural approaches and handling the flexibility with focus on exporting products and services to foreign markets (Cavicchi, Rinaldi & Santini, 2015). The companies employ strategies with allowing them to circumvent to invest in staff and facilities overseas. The business strategies are based on handling the utilization of expansion strategy where the global companies need to attempt to homogenize and handle the adjustment of the language use in the products.
Conclusion
The market powered in the food system of agribusiness is a major concern in Australia, where the powerful monopoly of Wesfarmers clearly present the challenges to the smaller business and local farmers who are struggling for co-existing the supermarket giants. The market situations benefit consumers and then continue to do so in a short term (Banson et al,. 2015). The financial pressures on the small and the medium food suppliers with deflationary pricing pressures and demands are for increased production which are unsustainable and have a potential to threaten the food security standards. Australia’s long-term food security depends on maintaining the diversification of the producers and the products. The government mechanisms need to adapt and ensure that the retailer behavior does not impinge on the balances of power between buyer and sellers of Australian agribusiness.
References
Banson, K.E., Nguyen, N.C., Bosch, O.J. and Nguyen, T.V., 2015. A systems thinking approach to address the complexity of agribusiness for sustainable development in Africa: a case study in Ghana. Systems Research and Behavioral Science, 32(6), pp.672-688.
Benos, T., Kalogeras, N., Verhees, F.J., Sergaki, P. and Pennings, J.M., 2016. Cooperatives’ organizational restructuring, strategic attributes, and performance: the case of agribusiness cooperatives in Greece. Agribusiness, 32(1), pp.127-150.
Cáceres, D.M., 2015. Accumulation by Dispossession and Socio?Environmental Conflicts Caused by the Expansion of Agribusiness in A rgentina. Journal of Agrarian Change, 15(1), pp.116-147.
Cavicchi, A., Rinaldi, C. and Santini, C., 2015. Fostering entrepreneurial education in Agribusiness through experiential learning. Proceedings in Food System Dynamics, pp.470-476.
Geldes, C., Felzensztein, C., Turkina, E. and Durand, A., 2015. How does proximity affect interfirm marketing cooperation? A study of an agribusiness cluster. Journal of Business Research, 68(2), pp.263-272.
Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy. Journal of Business Ethics, 122(1), pp.145-165.
Leguizamón, A., 2016. Disappearing nature? Agribusiness, biotechnology and distance in Argentine soybean production. The Journal of Peasant Studies, 43(2), pp.313-330.
Lewis, H., Downes, J., Verghese, K. and Young, G., 2017. Food waste opportunities within the food wholesale and retail sectors.
Ortega, D.L., Shupp, R.S., Nayga Jr, R.M. and Lusk, J.L., 2018. Mitigating overbidding behavior in agribusiness and food marketing research: Results from induced value hybrid auction experiments. Agribusiness.
Shiva, V., 2016. Who really feeds the world?: The failures of agribusiness and the promise of agroecology. North Atlantic Books.
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Sullivan, R. and Gouldson, A., 2017. The governance of corporate responses to climate change: An international comparison. Business Strategy and the Environment, 26(4), pp.413-425.
Van Fleet, D.D., Woolverton, M.W., Beierlein, J.G. and Cotterill, R.W., 2017. Agribusiness: An International Journal’s First 30 Volumes. Agribusiness, 33(1), pp.3-15.
Vergara?Camus, L. and Kay, C., 2017. Agribusiness, peasants, left?wing governments, and the state in Latin America: An overview and theoretical reflections. Journal of Agrarian Change, 17(2), pp.239-257.
Walton, T. and Grishin, V., 2018. Key Steps to Improve Agribusiness Competitiveness, Part I.
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