2020 CEO Survey: Mark Allison, Elders

The agricultural production outlook remains positive with favourable growing conditions, says Elders chief Mark Allison.

What are the three enduring lessons or changes to flow from COVID-19?

The first lesson was how spontaneously the safety and health of family and community overrode all economic considerations. This occurred around the world and demonstrated our basic humanity. Second, COVID-19 shutdowns quickly exposed vulnerable strategies and business models, with a number of companies experiencing very difficult operating conditions in the early stages of COVID-19. Final, the fast tracking of the adoption of digital channels, platforms and innovations.

How would you rate the shape of the Australian economy as we head into the new year?

As a rating, four out of 10, but in much better shape than we may have been if a number of critical financial maintenance and stimulation mechanisms (JobSeeker/JobKeeper) hadn’t been put in place. In many ways the economy has been remarkably resilient all things considered. Given that monetary policy is at its limit, the fiscal initiatives are critical both at a tax and investment level. The recovery will be hamstrung should our export markets be limited through geopolitical imperatives.

What three reforms are needed to sustainably grow the economy?

Physical and digital infrastructure investment is very important. From an agribusiness perspective, we have fallen behind many of our global competitors from a domestic supply chain cost and efficiency benchmark.

The targeted stimulation and encouragement of regional and rural development and population expansion would offer an excellent platform for light industry development, particularly in the area of value adding to our agricultural commodities, to target premium export markets globally. A reform in thinking on the negative consequences of deficits would open innovative thinking on further nation building projects that will service the Australian economy and communities for many years into the future.

What are the three best growth opportunities for your company in 2021?

Agricultural production outlook remains positive with favourable growing conditions, diverse trade options and industry and government working together to support our ambitious 2030 growth target of $100bn farmgate returns, up from some $55bn today.

Elders growth opportunities are largely within our own control through our geographical expansion into “blue chip” agricultural areas where we are under-represented.

Our other growth area is in our own brand products with local formulation where appropriate.

What impact will digital transformation have on your company?

Digital transformation will provide a multitude of productivity, profitability and sustainability opportunities to Elders and Australian agriculture across the supply chain. This will range from produce traceability, to automated harvesting and processing, and to farm management technologies and innovations.

How would you rate business, state and federal government performance this year?

Under crisis, history shows that central decision making will always be most effective. This has been shown in more recent times with the GFC and now with COVID-19. Given that Australia operates under the benefits of a federated system, and the limitations of this system, I think that we have largely made the best of a bad situation.