Diversification: More Than a Tick in the Box

Whenever markets tighten, we hear the call: “Australia needs to diversify.” It’s true, but it’s also incomplete. Diversification is not as simple as finding a new buyer and ticking the box. It requires a deeper understanding of where value truly lies, and the reality that not all markets are equal.

I’ve said many times: you can diversify for volume, but you cannot diversify for value. Take lobster. Before China closed its doors in 2020, Australia was sending about 95% of its Western rock lobster exports there, worth around A$700 million annually. When that market closed, we heard “find new ones.” However, no other market has paid the same price point. That’s not a failure of exporters — it’s the reality of global trade (ABC News, October 2024).

The same dynamic runs through beef, lamb, seafood and all Agribusiness. In some markets, offal is a delicacy; in others it’s waste. One market may pay top dollar for secondary cuts; another may value hides or rendered products. That is real diversification — not just spreading risk, but maximising value from every part of the animal or harvest.

This is where government plays a critical role. Diversification cannot end with a media release. It needs sustained effort in trade access, investment in logistics, and support for the businesses who build those relationships day in and day out. Without this, the word “diversify” risks becoming a slogan rather than a strategy.

Through my work with industry and government — from red meat and seafood through to AgTech and sustainability — I see the opportunities every day. Australian agribusiness has the products, the people, and the global demand. However, to capture the value, we need a coordinated approach that looks beyond the headline and into the detail of markets.

Diversification is not about avoiding reliance; it’s about building resilience. That means recognising that some markets will always carry disproportionate value and planning accordingly. If government and industry work together on this, Australia can ensure our farmers and processors are not just surviving shocks but thriving in the long term.