THE HEAD of ANZ's international food, beverage and agribusiness division is forecasting a strong period of growth over the next decade for Asia and the countries that supply the world's most populous continent.
Patrick Vizzone said even in light of the COVID-19 pandemic Asian demand would continue to grow.
"The 2020s will be a golden decade for Asia," Mr Vizzone told the Australian Grains Industry Conference.
Hong Kong-based Mr Vizzone, with a lengthy resume in agribusiness in Asia, said feed grain demand, in particular, would rise.
"Feed grain will increase percentage wise as a proportion of total grain demand, we will see nations such as China feeding more animals."
When justifying his claims regarding Asia Mr Vizzone pointed to the demographic changes.
"By 2030 two thirds of the world's middle class will be in Asia, there will be half a billion high and middle income earners."
He said the story was far more than just China, which has dominated conversations in agriculture for the best part of 20 years.
"We look at what is happening on Australia's doorstep, we are witnessing very fast growth in Indonesia.
"They are on track to be the fifth largest economy in the world by 2030 and there are obvious opportunities for Australia there with the freight advantage and free trade agreements."
Mr Vizzone said Indonesia would have a middle class of 50-60 million by 2030 but importantly it would have a young base.
"There are different consumer segments and there will be a lot of younger consumers and millennials and these people will have different purchasing patterns."
Throughout Asia, younger people have been more willing to incorporate Western-style foods, such as breads and dairy products, into their diet.
Mr Vizzone said to tap into these lucrative markets the Aussie grains sector would have to embrace varieties with definable advantages in terms of their usage and concepts like traceable supply chains.
"That is what the consumers say they want."
At the other end of the affluence scale, Mr Vizzone said food security would remain an important priority for governments of developing nations.
"High costs of food are a cause of unrest and the governments are acutely aware of it.
"Self-sufficiency is a goal, but a step change is required.
"Places like Central Asia will move towards full self sufficiency but it is not going to be easy task."
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
