GrainCorp warns Australia risks falling behind without urgent supply chain reform
GrainCorp urged policymakers to recognize food security as the product of a fully integrated supply chain.
AUSTRALIA – GrainCorp, one of Australia’s leading agribusinesses, has warned that the country risks losing competitiveness in the global food market unless urgent reforms are made to strengthen the national supply chain.
The call was made in a submission to the federal government’s Feeding Australia: National Food Security Strategy, which is currently under development.
The company stressed that food security cannot be viewed in isolation, but must be understood as the product of a fully integrated system that links energy, transportation, processing, and trade.
Australia exports about 70% of its agricultural production, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), a reality that makes the country highly exposed to both global and domestic pressures.
“Australia’s food system is resilient, but it’s under pressure. Climate variability, freight bottlenecks, biosecurity threats and global trade disruptions are converging. We need a strategy that’s bold, future-focused and grounded in practical reform,” GrainCorp said in its submission.
Reform across three horizons
GrainCorp proposed a three-horizon framework to guide the government’s food security strategy.
In the short term (one to two years), it called for fast-tracked infrastructure upgrades, harmonised freight and harvest rules, streamlined approval processes, and stronger biosecurity protections.
Over the medium term (five to 10 years), the company recommended investing in intermodal and port infrastructure, scaling up digital traceability across food chains, and expanding domestic renewable fuel processing.
In the long term (beyond 10 years), GrainCorp urged the government to embed climate-resilient energy systems, move toward a circular economy, and position Australia as a global leader in low-emissions food, feed, and fuel production.
The company underscored that food, feed, and fuel must be treated as interconnected pillars of national resilience. It warned of the risk of competition between food and fuel objectives, particularly in the oilseeds sector, where co-products from renewable fuel production play a vital role in livestock nutrition.
Industry investment already underway
GrainCorp said it has already committed to initiatives aligned with its proposals. These include co-investments in renewable fuel production using Australian-grown feedstocks, which generate essential livestock feed co-products, as well as expanding secure feed supply for livestock and dairy industries.
It has also invested in infrastructure upgrades across its East Coast network to improve supply chain efficiency and committed A$30 million (US$ 19 million) to agri-tech innovation through its GrainCorp Ventures platform.
The call comes at a time of heightened concern about the resilience of Australia’s food system.
ABARES has forecast that climate change will reduce yields for key crops, such as wheat, barley, and canola, over the coming decades. Meanwhile, the Productivity Commission has identified freight bottlenecks and infrastructure shortfalls as ongoing challenges for exporters.
At the same time, rising energy costs and geopolitical instability have disrupted global trade flows, underscoring the need for Australia to secure its domestic food supply while meeting export commitments.
“Australia’s future food security depends on bold action today,” GrainCorp said.
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