‘One-size-fits-all will no longer suffice’: AgriFutures Australia reveals new revenue opportunities for rural industries

A recent study by AgriFutures Australia has revealed what drives new revenue opportunities for Australian rural industries, offering a roadmap for resilience and growth. This landmark piece of research highlights the importance of tailored support and investments, ensuring that every unique sector can thrive amid a rapidly changing agricultural landscape.

‘New revenue opportunities for AgriFutures Australia’s rural industries’ project was commissioned to align with one of the 16 strategic priorities laid out in AgriFutures Australia’s Research and Innovation Strategic Plan 2022-2027, namely ‘identifying new revenue streams’.

This project, the first major piece of work under the priority, was commissioned as a scoping study to help understand where new revenue streams could exist and be developed across 28 of AgriFutures Australia’s levied and emerging industries, and other rural industries.

New revenue streams are important for these industries in many ways – they provide income diversification, promote sustainable practices and innovation, foster economic growth and job creation in rural areas and strengthen Australia’s competitive position in the global market.

Mike Pepperell, Associate Director of Consulting and Implementation Services, who delivered the report, set out to determine the key drivers and enablers of revenue opportunities that reflect where industries within agriculture think these opportunities are going to come from.

In a comprehensive study involving over 130 interviews across all Australian states and territories, opportunities which aligned to six common themes as drivers or enablers emerged: (1) consumer expectations; (2) value-add, export and niche markets; (3) collaborating along and across value chains; (4) carbon, biodiversity and natural capital markets; (5) genetics; and (6) agtech.

“What we rapidly realised was that each of these sectors were at different stages of maturity, and our interviewees had different levels of propensity to embrace change and new opportunities. After lots of testing, nearly every opportunity we saw fell into one of those six categories, but they weren’t mutually exclusive,” Mike explained.

The report also indicated that having a clear roadmap for R&D investment is crucial for encouraging innovation and technological advancements that align with the identified revenue drivers.

“It was quite clear from the tremendous variability in the conversations we were having that RDCs, governments and researchers need to have a greater appreciation of the individual circumstances of each industry sector, and tailor their investment plans in the knowledge that there’s not one size that fits all,” Mike said.

Addressing the specific needs and circumstances of each industry at each life-cycle stage, the report found, can support more effective growth and diversification.

Peter Vaughan, Senior Manager, Rural Futures at AgriFutures Australia, emphasised that as a key government player in the sector, “AgriFutures must continue to be flexible, adaptive and approachable to be able to support industries at various life-cycle stages, especially when opportunities for growth, sustainability and renewal exist at each juncture.”

Researchers also investigated producers’ approaches and barriers to adopting new revenue opportunities.

“The key here is to understand where different industry participants fall on the innovation adoption curve so we can communicate the best opportunities for our producers in the most effective way,” Peter explained.

“The power of changing consumer behaviours is also having a significant influence on product choice, and consumers are seeking different things than five or ten years ago. The ability for growers and farmers to be able to respond quickly enough is a challenge that falls upon RDCs – to be able to stay across those changing trends and communicate them to relevant sectors,” Mike said.

After the above findings, it became clear to researchers that nurturing a skilled and capable workforce is one of the critical enabling powers to assess, adopt and implement the opportunities.

“At the end of the day, to take on a new revenue opportunity that is different to what you’ve been doing in the past, having skills, experiences, capabilities and resources is one of the leading factors that can hold the individual business back. We’ve identified these amazing opportunities, but the people who stand to benefit the most from them may not be able to, even if they have the willingness and desire to,” Mike said.

“The insights from this extensive study demonstrate that business as usual and ‘one-size-fits-all’ strategies will no longer suffice,” Mike highlighted.

“Regardless of their maturity, needs and circumstances, each industry contributes to the breadth, diversity, resilience and vibrancy of Australia’s rural landscape in a unique way, and it’s vital that we develop strategies with this in mind,” Peter emphasised.

By prioritising relevant opportunities with adequate support, Australia’s rural industries can unlock these new revenue streams uncovered in the report, delivering our farmers and producers real returns, as well as prepare them to thrive into the future.

For more detailed information, click to download report here
To find out more about AgriFutures Australia’s research and publications, click to visit the Knowledge Hub

Media enquiries:
Ellie Reid
Manager, Communications
AgriFutures Australia
| 0457 084 715