The recent Federal budget and extended election campaign have made us all familiar with the term transition to a new economy. To coin a phrase used by RBA deputy Governor Philip Lowe “…the Australian economy is in a period of transition: a transition from the biggest resources boom in over a century to something a bit more normal”.
Further to this the RBA are of the view that as a nation we can make a successful transition provided our economy remains flexible, monetary policy settings are right and that there is a strong focus on innovation, productivity, human capital and entrepreneurship.
While commentators vary in their enthusiasm, agriculture and the broader agribusiness sector are seen as part of the solution to a successful transition. I think some commentators have overdone expectations within the sector (we will never be a food bowl for Asia but should focus on value added products to discerning customers) while others have overblown fears of a foreign takeover at a time when some estimate a capital gap of $9 billion a year.
For Australian agriculture to seize opportunities and play its part in an economy in transition attention must be given to all the levers mentioned above. The one of most interest to me is that of human capital.
From the RBA-down, human capital is most often viewed through the lens of the labour market and skills. While these elements are vital, the third and perhaps more influential element is leadership.
The Australian Rural Leadership Foundation (ARLF) has been developing leaders for regional, rural and remote Australia for 24 years. It is with the challenges and opportunities facing Australian agriculture in mind that we recently developed the Australian Agribusiness Leadership Program (AALP).
The AALP is designed to explore shared leadership challenges and opportunities faced by Australia’s agribusiness sector – from inputs and the service sector to the farm gate, processing, food, finance and beyond. Like all of our programs, developing leadership starts with people – a deeper understanding of self and others for long term behavioural change. Leadership goes beyond being competent, to being aware of context. It involves recognising and responding to complexity, facilitating change and acting in the interest of the greater good.
This year, 15 leaders across 10 organisations had the opportunity to be part of this inaugural program, which commenced with an immersive experience in Gippsland and Melbourne at the end of April. While each participant will be assisted to fine-tune individual qualities like influence, negotiation and communication skills, the program will also contribute towards leadership capability across Australian agribusiness and regional Australia more broadly.
It is the cross pollination of ideas and development of deep networks that sets this program apart. To be in healthy competition one day, yet possess the poise to look over the parapet and recognise the necessity of leadership that contributes to the greater good of the sector is the right approach. These sorts of behaviours and networks and indeed this type of leader will be increasingly important for Australian agribusiness to realise its potential as we transition to a ‘new normal’.
- Note: The AALP was created by the ARLF in partnership with Elders Ltd; Consolidated Pastoral Company; GrainGrowers Ltd; Syngenta; Bega Cheese; Hassad Australia; PGG Wrightson Seeds Australia; NSW Department of Primary Industries; NT Department of Primary Industry and Fisheries and Westpac.
