2023, Volume 26, Paper 1
ISSN: 2209-6612

The Australian Canola Value Chain  

Genfeng Liu, School of Agriculture and Food, University of Melbourne
Garry Griffith, School of Agriculture and Food, University of Melbourne

Abstract

Canola provides significant economic value to the Australian economy, as canola is the fourth largest crop grown in Australia and Australia is the second largest canola exporter. In this study the major functions, major operators and major supporters of the Australian canola value chain are identified and analysed via value chain mapping. The performance of the chain is assessed to draw comparisons with the chain’s major competitor, Canada. The results of the analysis suggest that transportation is the most important driver of performance in the Australian canola value chain, and the chain has better performance than Canada in terms of efficiency due to lower costs, higher prices, and profits. The Australian chain and Canadian chain have similar performance in terms of responsiveness, flexibility and food quality. The major challenges faced by the Australian canola value chain are the high concentration of exports to the European Union, recovering international competition, falling prices, and increased costs for inputs. Three suggestions are made for improvement – government policy alignment, adoption of remote sensing technology and development of seeds with strong abiotic resistance. It is argued that these interventions would help improve the Australian canola value chain’s efficiency and competitiveness.

Keywords: canola, value chain, performance analysis, bio-fuel

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