THE Australian plant-based protein sector is rapidly growing.
Farmers wanting a piece of the action should act now to ensure their legal house is in order. The recent news that SA will quadruple its plant-based protein manufacturing capability is seen as a game-changer for the industry.
Australian Plant Proteins is teaming up with Australian Milling Group and red meat processing giant Thomas Foods International to deliver an Australian first, presenting exciting opportunities for the local food industry.
A report commissioned by Food Innovation Australia predicts that plant-based and alternative proteins value added potential could be worth $3 billion by 2030, with 6000 new jobs for the industry.
Driven by increasing consumer demand, more restaurants and cafes are offering entire plant-based menus alongside their main menu. It is estimated that more than 200 plant-based meat products adorn Australian supermarket shelves with a large percentage coming from local manufacturers and suppliers.
APP, TFI and AMG plan to invest $378 million in three new production facilities.
The federal and state governments will contribute $178m, with the initiative to supply domestic and international markets.
SA farmers are already growing the crops needed to feed this industry of the future.
It is estimated that SA produces over a quarter of all Australian pulses.
When it comes to supplying the plant-based industry, it's a case of reaping what you sow. SA is renowned for its premium food and wine. This initiative creates an opportunity for the local sector to further capitalise on its strengths.
When businesses are considering who to team up with, they'll be interested in corporate structures.
An entity's corporate legal structure determines how the entity operates as a trading business, outlining reporting, management, and taxation requirements.
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Potential partners may want clarity on the hierarchy of the entity; certainty on management decision making; an understanding of potential liability implications; and the ability for the organisation to attract further capital.
Businesses looking to join the rise in plant-based manufacturing may promote their strong corporate governance credentials to the industry including employer arrangements; contractor agreements; insurance arrangements; and risk management plans.
Potential plant-based suppliers should develop a capability statement outlining what they can offer partners, providing evidence to support their: history, key achievements, critical skills; details about the workforce and/or key competencies of contractor arrangements; ability to supply product and/or services (quality, volume); ability to adapt to changing demand and capacity to diversify if required; technological improvements or adoption of innovation; business and investment strategy; and desire to be in this exciting sector.
Now is the chance for existing agriculture businesses to meet the demands of a burgeoning global market with exciting opportunities for generations to come.
It is vital businesses ensure they're on solid ground from a legal and financial viewpoint to take advantage of SA's bold vision to be a leader in the plant-based food sector, expected to generate up to $4b in exports by 2032.
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