Author: Paul Wallbank

  • Australia in the Asian Century – Building the agriculture industry

    Australia in the Asian Century – Building the agriculture industry

    Before going into Chapter 8, the Australia in the Asian Century report has a detailed look at the agriculture industry. Which kicks off with National Objective number 19;

    National objective 19. Australia’s agriculture and food production system will be globally competitive, with productive and sustainable agriculture and food businesses.

    While this objective seems to have already been achieved, the bulk of the chapter does a good job of identifying the opportunity and challenges for the industry.

    The examination of trade treaties, biosecurity and food security is a good overview of the industry however it does suffer from a rose coloured view of prospects and government programs.

    Issues such as protectionism, genetically modified foods and the running sore of live cattle exports don’t get a mention.

    Another aspect of this section is how the aspirations don’t match the actions of governments, for instance the industry capture of regulators – the case of defining free range eggs being a good example – is a real barrier to Australia selling quality produce internationally.

    While the section does discuss ‘value adding’, the tenor of the section seems to be focused on bulk exports and really doesn’t identify industries such organics and free range which are an opportunity for the agricultural industry.

    Overall though, this section at least does give a reasonably detailed snapshot of an industry and its a shame the paper doesn’t attempt to profile other sectors in the Australian economy.

    Similar posts:

  • What business are newspapers in?

    What business are newspapers in?

    The problems of The Guardian and other newspaper groups around the world raises the question of what business they are actually in – news or advertising?

    “Going digital only is not an option” was an agenda item for a meeting of Guardian executives claims the Financial Times.

    Digital only however is the option most of the readers are taking with the Guardian’s online channels attracting 9.5 million UK readers a month compared to a print circulation of 6.5 million. The Guardian’s total global online audience is 65 million, ten times the size of the print edition.

    Making matters worse is the trend, according to the UK Audit Bureau of Circulations (ABC), newspaper sales are declining at 16% per year while online readership is growing 14%.

    As the Guardian readership figures show, the number of readers isn’t the problem and the same is true for the New York Times or the Sydney Morning Herald. More people are reading these publications than ever before, but the advertising has gone elsewhere.

    Essentially a newspaper was an advertising platform, the cover price barely covered the costs of printing and distribution while the classified and display advertising provided the “rivers of gold” that made the business so lucrative through most of the Twentieth Century.

    Most of those rivers have been diverted as dedicated employment, real estate, travel and motoring websites have stolen much of the advertising revenue that sustained newspapers.

    As classified advertising platforms, newspapers have reached their use by date and now they have to build a model that is more focused on online display advertising and getting readers to pay for content.

    Getting readers to pay is difficult when the market has been trained to expect news for free or pennies a day, a problem not helped by some newspapers chasing online eyeballs with low quality content.

    Equally difficult is training sales teams to sell digital advertising, too many sales teams have grown fat and complacent over decades of flogging lucrative and easy real estate print ads.

    The challenge for newspaper managements around the world is figuring out how to get the advertisers onto their online platforms and providing a product which readers value and are prepared to pay for.

    It may well be that The Guardian’s management are right, that print does have a role in the newspaper’s future but first they are going to have to define what their company is and what it does.

    Similar posts:

  • Australia in the Asian Century – Chapter Seven: Connecting to Asian Markets

    Australia in the Asian Century – Chapter Seven: Connecting to Asian Markets

    This post is one of the series of articles on the Australia in the Asian Century report.

    The seventh chapter of Australia in the Asian Century looks at how the country’s businesses and governments can engage with markets in Asia. In some ways this is the most effective chapter of the report.

    At the beginning of the chapter introduction points out that Asia offers bigger markets than Australia and says “Australian businesses need to build on their existing advantages by developing new capabilities and approaches as they become fully part of the region.”

    This is true, but the Chapter never really identifies what Australia business’ existing advantages really are and again this is a weakness in the report.

    National objective 17. Australia’s businesses will be recognised globally for their excellence and ability to operate successfully in Asian markets.

    How this comes about is difficult to say, and what governments can actually do to help businesses be recognised globally isn’t really identified.

    The CPA case study is notable for illustrating the number of Australian expats working in Asia. In many ways these people are the wasted talents that should have been cultivated by domestic businesses through the 1990s and 2000s.

    Saying that businesses need to be part of the global supply chain is a statement of the obvious and Chapter 7.3 does discuss the importance of efficient ports, fast customs procedures and reduced barriers to trade. This ties into National Objective 18a.

    National objective 18a.The Australian economy will be more open and integrated with Asia, through efforts to improve our domestic arrangements. The flow of goods, services, capital, ideas and people will be easier.

    • Australia’s trade links with Asia will be at least one-third of GDP by 2025, up from one-quarter in 2011.

    It’s difficult to argue with this objective, although one wonders what Canberra has been doing for the last twenty years on smoothing the flow of goods, services, capital and ideas. Hopefully this is one of the relatively easy areas where a Gillard, or Abbott, government can deliver.

    National objective 18b. The Australian economy will be more open and integrated with Asia, through comprehensive regional agreements, better aligned economic regulations, greater infrastructure connectivity and enhanced understanding of each country’s arrangements. The flow of goods, services, capital, ideas and people will be easier and Australian businesses and investors will have greater access to opportunities in Asia.

    This objective focuses around formal trade links and really only describes the current policy – continued from the Howard government – of signing bilateral trade agreements rather than waiting for the cumbersome and possibly never ending global negotiations to actually deliver something.

    Most of Chapter Seven is focused on describing the various trade initiatives the Australian government is engaged in through APEC, ASEAN and various other forums.

    All of these are good initiatives and these are the brightest spot in the entire report, this is where the Australian political system has delivered bipartisan support for a long term plan and it’s a shame we can’t see more actions similar to this in areas like education, taxes and sustainability.

    Similar posts:

  • Running out of luck

    Running out of luck

    Last week I was lucky to get along to Digital Australia and Emergent Asia panel held at PwC’s Sydney office where the panel looked at how Australia’s industries are adapting to the digital economy and evolving Australian markets.

    The outlook from the panel was generally downbeat about the ability of Australia’s business leaders and politicians to adapt to the changes in the global economy although there were some optimistic points about the resilience and flexibility of the nation.

    I did a write up for it on Technology Spectator which is online at It’s Not Good Enough To Be Clever

    The challenge is on for Australia’s business leaders – let’s see if they are up to it.

    Similar posts:

  • 702 Sydney mornings – watching TV on the net

    702 Sydney mornings – watching TV on the net

    On 702Sydney Mornings this month with Linda Mottram, we’re looking at at how the Internet is changing the way we watch TV.

    How much do you use ABC’s iView? Okay it’s not every program for forever  but it’s a godsend when you’re time poor – and who isn’t these days.  So you can catch up with the programs on ABC TV you’ve missed or you knew you couldn’t watch it live.
    We’d love to hear from you if you’re now watching TV programs – ANY TV programs – primarily on the Net, through your internet browser rather than sitting in front of a telly.
    Aside from catch-up services like iView, ABC is already providing programs LIVE. If you log on to ABC News 24 website, you’ll be watching a live TV news straight away. And then of course there’re a number of avenues for pay–per-view services.”
    Some of the things we’ll be discussing are;
    • Differences between different services and how they work and how much they cost.
    • Free-to-air or Pay-per-view. Just how much is available for free and how much isn’t?
    • Limitations of catch-up services. How long are programs kept, how comprehensive is their collection?
    • Limitations caused by copyright laws. Some overseas programs are either very difficult to view or impossible to view online. Will the technology advance mean these limitations will be irrelevant soon if not already?
    • Nobody wants to squint at smartphones to watch nature documentaries do they? Is the quality really up to scratch? Alternatively, what do YOU as a computer/smartphone/tablet user need to know that your viewing experience is as enjoyable as possible?
    • While catchup services are becoming more popular than ever, take up of internet based TV (IPTV) remains very low. Will this ever change? What will cause the change?
    • If the catchup services’ popularity continues to grow – and there’s nothing to suggest it’ll slow down – wouldn’t commercial television need to re-examine their advertising based business models seriously?
    • Main takeups of TV-watching on the net will be younger audiences, but it is quite often more mature and older audience who complain about the permeating advertising. What will it take older audience to flee further and significantly to Net-TV?

    Some of the material we’ll be referring to in the program is the ACMA report on Online Video Content Services in Australia and Screen Australia’s What to Watch in an Online World.

    Join us on 702 Sydney from shortly after 9.30am. We’ll probably take some calls on 1300 222 702 and we’d like to hear your views, comments or questions.

    Similar posts: