Fruit and vegetable consumption and waste in Australia - VicHealth

system currently inhibits data aggregation and that, because of the highly perishable
nature of fruit and vegetables, the pressure to quickly clear product in markets with many
suppliers and/or buyers challenges the adequacy of information transfer between sectors.
As a result, the report suggests that certain participants in the system preserve ‘gate
keeping’ roles and hold information, preventing demand signals from reaching suppliers
and hindering innovation. For fresh fruit and vegetables in Australia, this role is primarily
held by category managers to the major supermarkets (Spencer & Kneebone, 2007).
Major Forces on the Food System
The future of the Australian food supply system is likely to be strongly influenced by a
number of major forces. The primary drivers, as outlined by DAFF in the Australian Food
Statistics 2007 report are noted below (DAFF, 2008):
� Changing global economics: There is a strong and increasing demand for basic
food commodities from developing countries paired with supply constraints resulting
from resource competition. Increasing prosperity in developing countries is leading to
rising demand for food, especially resource-intensive animal products. At the same
time, subsidized production of biofuels in the US, Europe and Brazil is causing food
production to compete with fuel production for land.
� Advancing technologies: New technologies in the food system usually lead to both
better productivity and increased product functionality. The impact of new
technologies is dependent on their uptake by food system participants and their
acceptance by consumers.
� Climate variability: Changing climate patterns as a result of anthropogenic global
warming are likely to create relative advantages and disadvantages for various
agricultural regions. This leads to increased costs for most production systems and
market volatility. Producers are faced with a risk of loss of markets as a result of
unreliability of supply.
� Shifting trade and social policies: Softening barriers to international trade, such as
gradual reductions in tariffs, is leading to increased globalization of food production
and retail markets. In addition, closer scrutiny of food producer’s budget outlays may
lead to reductions in government assistance.
� Increasing consumer and community demands: Demand for nutritious foods is
growing worldwide and consumers are increasingly interested in food products that
promote healthy lifestyles. At the same time, consumers are demanding more
assurances on food safety and accountability of environmental impact of food
production systems.
� Peak oil and a carbon-constrained economy: Not mentioned by DAFF, but also a
critical issue to the food supply is that of ‘peak oil’. Increases in oil prices create
shocks and ripples through the whole economy. As the price of oil rises and
fluctuates, food prices will also oscillate and it may become increasingly difficult for
participants at the early stages in the supply system (e.g. producers) to make a living
(Campbell, 2008).
� Rising control of retailers: Also not mentioned in the in the Australian Food
Statistics 2007 report, but highlighted in the FoodMap report are the impacts of the
application of supply system management strategies by the major Australian retail
groups. This vertical control of the market affects the whole food system. Suppliers
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