In a time of great change and technological progress for the food processing industry, the return of events to meet and explore challenges and opportunities is welcome.
As the founder of an Australian Agtech start-up focused on the meat sector, attending IFFA 2022 in Frankfurt, one of the world’s leading expos on meat processing and packaging, I was eager to see some of the incredible advancements on the horizon for our industry.
Similarly, while the Global Food Forum held on home soil in Melbourne discussed the current challenges in the global food supply chain, it also looked at the immense opportunities for serious problem solving.
These are my top five observations from both global events.
1. Robotics is in its infancy, but the outlook is promising
The IFFA 2022 exhibition in Germany was vast, with several football fields’ worth of equipment on display and in motion.
Many machines were designed to handle a specific part of the food processing workflow. For example, robotic arms moved items from one conveyor belt to another or were used for the fine-motor task of sharpening knives.
In my experience of working with primary producers and in Agtech, I’ve witnessed the frustration and controversy long associated with attempts to incorporate robotics into the sector.
In speaking with Australian processors, common complaints are the intensive and expensive process of commissioning the technology, only to have it fall short of expectations. Invariably they end up being shelved or used in a limited capacity.
Those on display in Frankfurt managed their specific tasks impressively, however it was hard to ignore that these were basic and simple procedures.
What is needed, especially amid the current labour shortage and high cost of labour in Australia, is using robotics to operate machines and tools.
2. The need for more data sharing
A meat processing plant is a series of links in a chain, with different machines handling different parts of a carcass. While machines perform specific tasks well, data collecting and sharing between machines are needed to elevate these processes and optimise them for full efficiency.
This is true for small and large operators alike, and it is a missed opportunity. Software interfaces are still somewhat archaic, with no modern UX incorporated to drive a better user experience.
Without data sharing, the industry misses out on the benefits of advanced analytics and feedback loops, which equates to lost revenue in a market where product demand is particularly high.
3. Predictive maintenance must be prioritised
If the biggest enemy of a food processing plant is downtime, then a broken-down machine is the main culprit. A machine breakdown can bring a plant to a standstill, but one way to circumvent this issue is through the utilisation of predictive maintenance.
Machine manufacturers need to think beyond the operational role of a machine and how they fit into the larger workflow of a plant. Putting themselves in their customer’s shoes will allow manufacturers to understand how they can add value to a plantby designing their machinesto share information and automatically adjust function, preferably without human intervention.
Remote diagnostic tools and predictive maintenance would be an ideal starting point for this, with a view to move towards ‘smart plants’ that allow for predictive workflows with minimal disruption.
Greater collaboration between machine manufacturers and processing plants will go a long way to further unlocking the potential of this sector.
4. Critically short labour supply
The labour crisis within the Australian food processing industry was a major focus of the Global Food Forum.
Historically, much of the unskilled labour in the wider agriculture industry was filled by immigrants, but the pandemic brought this to a standstill and migration patterns have not recovered to pre-Covid volumes.
Most Australian processors are currently 30-40 per cent short of labour needs and the industry consensus is that the government needs to step up and allow expedited visa processing.
Automation and robotics may help, but these solutions are still several years away fromfull integration. Food processors need labour now, alongside strong investment into the automation of the food system, while the agricultural industry deals with enough variables being at the mercy of the environment and weather.
If we can mitigate one variable – labour – it would make for a more stable, sustainable food supply chain.
5. Value-added commodities to combat costs
The soaring costs involved in food production are continuing to drive food price inflation. High fuel and spiking fertiliser prices are squeezing margins for farmers. Labour costs are rising. So how can food producers remain profitable?
As a nation, Australia creates enough food for 75 million people according to the Australian Food and Grocery Council. We’re also the highest-cost processor for most foods. The more value we can add to commodities, the more sustainable it will be for producers. This is a key opportunity for the industry, as Austrade has also observed. Research shows that consumers are becoming much more particular about safety, sustainability and quality while the National Farmers Federation is advocating for disruptive technologies to unlock productivity across the sector, including automation.
Australia already has a stellar food exporter reputation with many countries turning to us for premium beef, lamb, seafood and wine and cheeses.
But to further unlock the commercial potential of innovation, we need public and private R&D efforts working seamlessly together.
By developing world-class tools and technologies, we can enhance the value of Australian exports, and give the sector a greater competitive edge in global markets.
Overall, IFFA and the forum were great working examples of why the global agricultural and food processing industries need to come together to share progress, identify gaps in the system, and where possible, lean on government assistance where possible.
This is a difficult time for agriculture and many industries, but Australia does have the tools, expertise, and motivation to weather the storm and emerge as the leading global food supplier.
By Remo Carbone, MEQ Probe CEO
This article first appeared in the July edition of Food & Drink Business magazine