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seeks to provide a point of reference for customers, both domestic and<br />

overseas, looking to purchase Australian food and beverage products over<br />

the Internet.<br />

Box 12.3<br />

FoodConnect Australia 31<br />

The Federal Government’s ‘Supermarket to Asia’ Council in collaboration with Telstra<br />

and the food industry have recently piloted an e-commerce initiative called<br />

‘FoodConnect Australia’. FoodConnect aims to be Australia’s prime online channel<br />

through which food and beverage products are to be exported.<br />

The potential benefits to participating businesses include:<br />

• access to customers in Australia and overseas;<br />

• communication with customers in Australia and overseas;<br />

• at a later stage, a facility for clearing bureaucratic clearances, as well as<br />

arranging transport and payment;<br />

• fast and secure information transfer; and<br />

• a comprehensive online catalogue.<br />

Source:<br />

See the FoodConnect Australia website at www.foodconnect.com.au<br />

State Government’s are also assisting the agricultural industry by<br />

providing websites showcasing each State’s industry with the objective to<br />

improve each industry’s international competitiveness. South Australia’s<br />

Food Online, Victoria’s Food Victoria, and Queensland’s Food<br />

Manufacturing websites provide directories of food producers as well<br />

advice and information for food producers. Even some regional<br />

municipalities have shown an interest in establishing websites to help<br />

promote local businesses.<br />

Other organisations such as Farmwide are providing online services, such as<br />

chat rooms, discussion groups and facilities to create home pages, as well as<br />

regular provision of information such as stock prices and weather reports.<br />

Cost savings are likely to arise from the more efficient operation of<br />

markets, for example, the provision of online customs clearance and other<br />

bureaucratic requirements, electronic payment o<strong>pt</strong>ions, online ordering,<br />

and the provision of other information. Also, greater access to markets<br />

through e-commerce increases the potential for competitive producers to<br />

sell to a wider audience.<br />

It remains to be seen to what extent this will apply for the selling of high<br />

volume commodities. In the case of the sale of the wheat, currently<br />

marketed and sold by the Australian Wheat Board, it is difficult to see the<br />

Internet opening access to new markets. The main benefits may be in<br />

services to growers (e.g. providing quick and accurate price information),<br />

and in facilitating cooperation between growers through transfer of<br />

information and communication. Once again the main issue appears to be<br />

giving growers access to telecommunications networks and IT hardware.<br />

In the case of wool, the Australian Wool Exchange recently commissioned<br />

an electronic selling trial of wool, to determine the most appropriate sale<br />

method. Several different auction arrangements are being trialed,<br />

including a sequential auction process, Tender (Private and Public)<br />

auction, Offer Board, semi sequential and simultaneous auctions. The<br />

current trial is based on a Local Area Network, with an expansion to a<br />

Wide Area Network further down the track.<br />

31 See the FoodConnect Australia website at www.foodconnect.com.au<br />

178

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