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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