Emerging technology in A+F sector
Grain cast:
- Digtal tool developed by CSIRO
- Predicts grain yield and soil moisture at paddock and farm scale across australian through AI led innovation, satellite imagery, climate data and soil information
- 75-90% accuracy
- Now apart of the Digital Agriculture Services (DAS)
Emerging tech: reasons behind development
- Aus grain farming is climate sensitive making yield planning and supply chain management very challenging = grain market is very volatile
- Cost of handling, planting, harvest, transport and storage can cost billions annually improving forecasting can reduce financial risk and inefficiencies
- No national system existed to accurately quantify yields or map crop areas at a locally relevant scale
- Farmers and industry lacked simple, timely, and actionable information to support decision-making.
Emerging tech: possible impacts on other sectors of AFI
- OVERALL: reduces volatility because accurate yield forecasts let the food industry plan supply and prevent sudden shortages or price spikes.
FP+M: predictable grain supple allows bulk handlers, millers and manufacturers to plan production and transport efficiently, reducing downtime, waste and costly last-minute sourcing while supporting investment in equipment and workforce planning.
FS+C: stable supply limits sudden price spikes or ingredient shortages enabling businesses to manage costs and plan menus reliably, improving overall operational efficiency.
FR: reduces stockouts + extreme price fluctuations for staples e.g. bread, pasta and cereals = reliable access for consumers + buffering agaisnt global market swings
- Farmer scepticism about data ownership and benefits may slow uptake, limiting overall impact.
Emerging tech: possible impacts on aus consumers
- 2020 evaluation estimated could provide between $33 million and $420 million in economic impact across the Australian agricultural supply chain between 2021 and 2030.
- Increased precision via management of ag risks improves food security, reduces stress on household budgets and ensures people can consistently access basic nutrition
- Ensures more consistent crop quality = satisfy expectations
- More sustainable farming supports ethical, safe food that meets consumer demand (input efficieny + water management)
- Benefits are mainly felt by farmers, transporters, and grain traders; consumers may not see immediate changes in price or product quality.
Name of organisation and level of operation + mechanisation
- Bega Group
- Large company: operates at 21 locations where food is processed and sold at a large and multinational scale
- Mechanisation: highly automates utilising advanced tech e.g. automated cheese processing, packing and in some areas end-to-end automation from raw materials to transport
Detailed outline of 1 technological innovation
- r+d in dairy powder manufacturing w monash uni –> first ever smart drying technology
- Developed to enhance standard spray drying, which turns liquid dairy into stable powders using rapid hot-air drying.
- Spray drying is energy-intensive and traditionally relied on trial-and-error to find optimal conditions.
- The small-scale, single-droplet testing system uses advanced imaging, X-ray diffraction, and infrared analysis to track powder formation and predict properties like solubility and moisture stability before full-scale production.
- Used by Bega to improve efficiency quality and competitiveness of their dairy powder production
Fors of tech on production/distribution
- save time and money: reduces trial and error testing as small-scale testing allows for optimization before full-scale commercial roll-out
- Optimizing drying conditions saves energy in one of the most energy-intensive processes in dairy manufacturing.
- X-ray diffraction and infrared tech monitor structural and moisture changes during storage, allowing optimisation of drying and storage conditions to minimise caking, browning and reduced solubility (hazard for formulas), extending shelf life and maintaining quality for export products
- Product Diversification: Enables the manufacturing of new, complex powdered ingredients, expanding Bega’s product range.
Against for tech in production
- High Implementation Costs: Adopting new, innovative technology required significant capital investment.
- high risk: Being the first of its kind, the system carries uncertainty and potential challenges.
- Operational Transition: Moving from established spray-drying to a new, complex system required staff retraining and adjustment periods.
Ethical practices
Consumer influences
Ethical practices:
- Health risk concerns with GMOs: products they supply are 100% tracable as non-gmo
- Animal welfare: aligned with the “Code of Practice for Welfare of Animals”: reviews activities on the farms participating in the BEMS program to this standard
Sustainability:
- Demand for recyclable and compostable packaing –> ~90% of packaging is recyclable, reusable or compostable. 57% of consumers citing environment as a key concern
changing trends
Consumer influences
- Conduct research and development in aus market to diversify and cater their offerings
- Health and wellness: >75% products display Health Star Ratings
- Functional foods rich in calcium and protein e.g. aus cite protein = top factor (30%) in food consideration and 58% of consumers likely to buy dairy for protein therefore inveseted $30m (2025) into functional dairy expansion e.g. masters milk: choc + iced coffee protein –> 36g of protein per 600ml carton, no added sugar, and a 5-star health rating. e.g. dairy farmers protein smoothie –> 30g 330ml prebiotics + electrolytes
- Diverse dietary needs: ¼ Australians lactose intolerant or have gut health concerns –> Lactose-free + plant-based innovation.
- Diverse dietary preferences e.g. lactose free + plant based ¼ Australians are lactose intolerant or have gut health concerns; still source necessary nutrients
- Kids snacking R&D: Farmers Union yoghurt prioritised from 1kg tubs → portable pouches.
- Kids snacking industry = area of R+D e.g. Farmers union yogurt 1kg tub to pouches convient for lunchboxes
Cost-of-living / “flight to value”:
→ Larger, more affordable pack sizes introduced.
Quality assurance procedures
- DEF: actions they take to meet consumers expectations
- HACCP: core quality management system implemented company wide and embedded via the Bega Excellence system
- WHAt? Internally recognised, gov approved food safety system that identifies bio, chem and physical hazards, controls risk at critical points in production + ensures food safety and consistent product quality
- Operates from farm to factory to create safe high quality, traceable products
relationship between QMS and impact on organisation
- recent expansion from 9 to 21 sites it increases risk of inconsisitent quality – BEX standardises HACCP procedures ensuring CCPs are monitored, deviations recorded and corrective actions take
SAFETY: consumers expect safe consumable food - All milk suppliers must be HACCP accredited and meet standards through on farm quality assurance
E.G. HAZARD: chemical contamination from antibiotic or veterinary chemical residues in milk
CCP: Responsible administration of veterinary chemicals + strict observation of milk
MONITORING CCP: Treated animals identified and recorded within 48 hours + Antibiotic and inhibitory substance screening on all milk tankers at receival
IMPACT: milk remains free from harmful residues protecting consumer health
HACCP example 2
HAZARD: microbiological growth of pathogenic bacteria due to inadequate temp control during milk handling and pasteurisation
CCP: immediate cooling after milking to less than 6.5°C (out of danger zone slowing bacterial multiplication before processing maintaining raw milk quality
Pasteurisation at greater than 70.5°C to destroys pathogenic microorganisms to ensure the milk is safe for consumption and further processing.
MONITORING: computerised continuous temp monitoring, automatic diversion system if temp drops below critical limit preventing unsafe product entering production. Hot water sanitation exit temperature maintained at ≥ 65°C
Impact: eliminates pathogenic bacteria that could result in foodbourne illnesses e.g. e-coli or salmonella, prevent spoilage, extends shelf life, protects flavour and texture (too high could be burnt flavour.
OVERALL IMPACT OF HACCP
o Prevent contamination before it occurs rather than reacting after failure
o Ensures consistent quality across 21 sites
o Reduces recalls, waste and financial loss
o Allows safe scaling of operations
o Bega has a high quality assurance level
o Protects brand reputation and consumer trust
- Impact: In 2025, all Bega sites maintained Global Food Safety Initiative-recognised certification, and no product recalls. This shows HACCP prevents quality failures, ensures consistent food safety, and allows Bega to scale operations safely across multiple sites.
Relevant challenges faced by BEGA
1) Cost inflation putting pressure on profit margins
- Rising input costs, particularly raw milk, increased overall production expenses.
* Weak domestic dairy product prices limited Bega’s ability to pass higher costs onto consumers.
* Intense competition within the dairy industry created pressure to maintain competitive farmgate milk prices to retain suppliers.
* Risk of farmers shifting supply to competitors such as Fonterra, threatening continuity of raw milk supply.
* Resulting profit margin squeeze, as milk is Bega’s core raw material and price increases at farm level do not automatically translate into higher retail prices.
Response:
* Increased the 2024/25 farmgate milk price by 10 cents per kgMS to $8.15–$8.45/kgMS across Victoria, NSW and South Australia to remain competitive and secure supply however raising farmgate prices without corresponding retail price increases created a direct squeeze on profit margins.
* Strategic shift toward higher-margin branded products such as Vegemite, Farmers Union Iced Coffee and Dare to offset lower-margin commodity exposure.
* Eliminated approximately $20 million in annualised costs by streamlining marketing, logistics and R&D operations to protect profitability.
Impact:
Negative:
Increased raw milk costs intensified margin pressure, necessitating internal cost-cutting and operational restructuring.
Positive:
Improved farmer confidence and strengthened long-term milk supply security, protecting input continuity and industry relationships.
challenge 2
- Challenge: Older manufacturing sites were costly to operate and less efficient, particularly in a high-inflation environment. These sites increased duplication across the network and reduced Bega’s ability to remain competitive.
- Response: Bega decided to close the Strathmerton site by mid‑2026, consolidate its operations at the Ridge Street facility in Bega, NSW, and invest in upgrading that site to enhance capacity and modernisation.
Impact: - eliminates duplication across sites, reduces fixed costs and supports long‑term competitive infrastructure.
- expected to deliver approximately $30 million in annual cost savings, strengthening profitability and operational efficiency once fully integrated. It also supports a more consistent quality and production standard across the consolidated site.
- The closure directly affects about 300 jobs and has significant social and economic impacts on the Strathmerton community. Local businesses and suppliers may also experience knock‑on effects from reduced economic activity
BEGA influence on individual
- Lactose-free milk production tripled (2020); protein-fortified + gut-health products → supports ≈25% Australians with lactose intolerance or digestive concerns to access calcium + protein.
- Launched 100% dairy free cheese made with fava bean protein: vegan or vegetarian individuals a way to eat cheese and obtain protein
- Health Star Ratings (75%+ products): enables informed decision-making and comparison → promotes healthier consumer behaviour.
- Risk factors: Some products high in saturated fat + sodium → excess intake linked to ↑ cholesterol + hypertension → requires moderation.
- Reduced-fat range (25–50% less saturated fat): lowers CVD and obesity risk → supports long-term positive health outcomes.
- Convenience products (e.g. Stringers): grab-and-go dairy → time-efficient, supports children’s calcium intake; however more processed → potentially lower nutritional quality.
economy and workplace equity
Bega impact on society
- Major employer of 4,000+ people and purchaser of milk from hundreds of farmers → sustains regional economies.
- Largest employer in Bega (750+ employees) → provides economic stability in rural NSW.
- Contributes $100m+ in annual exports → strengthens Australian economy; publicly listed company supports investor confidence.
- Negative impact: Strathmerton plant closure (300 jobs) + Kingaroy & Tolga peanut processing closures (150 jobs) → regional unemployment and economic decline.
- Inflationary pressures and supermarket supply influence cost of living for consumers e.g. $10.50 vs $7.70 at coles)
- both rural and urban employment
- establishment of factories in rural towns = training opportunities for staff
Median gender pay gap: 10.9% (2024) – lower than agribusiness competitors (a2 Milk 40.5%) and below national median (16.4%) = Contributes to reducing systemic gender inequality in agriculture, where women are underrepresented in leadership.
Community contribution + public health
Bega impact on society
- Bega Better Farms Program: $1.1m+ annually for training and capital projects → promotes sustainable farming and rural development.
- Donated equivalent of 2.35 million meals to Foodbank Australia → supports lower socio-economic communities and food security.
- Products reach 97% of Australian households → broad societal dietary impact. Award-winning nutritious products e.g. Simply Nuts No Added Salt – Best Spread = Reduced-sodium options address national concerns around hypertension and cardiovascular disease = less stress on hospitals
Bega impact on the environment
- Emissions reduction: Target net-zero by 2050; 40% Scope 1 & 2 reduction by 2030 → lowers GHG emissions, mitigates climate change, protects ecosystems.
- Methane produced from dairy cattle = contributor to climate change: Better Farms Program funds sustainable practices → reduces upstream agricultural emissions and improves land management.
- Waste management: 93% diverted from landfill (biogas, whey/marine compost) → lowers methane, generates renewable energy, reduces pollution.
- Sustainable packaging: ~90% recyclable/reusable/compostable → decreases plastic waste, conserves resources, lowers landfill and marine pollution.
- Bega Group and the Bega Valley region are pursuing a transition to become Australia’s most circular economy by 2030, aiming to keep materials in use and reduce waste and pollution through reuse and recycling models.
Kimchi as a value added product
DEF: traditional korean staple dish made from nappa cabbage
- lacto-fermentation converts raw napa cabbage → nutrient-dense, shelf-stable product with enhanced flavor, health benefits, and functionality.
- Nutritional value → LAB (Lactobacillus) produces probiotics → aids digestion and supports immune system → increases bioavailability of nutrients → boosts antioxidants
Flavor & texture → fermentation creates sharp, sour taste naturally → addition of spices, ginger, garlic, fish sauce → distinct umami flavor → microbial enzymes tenderize fibrous cabbage → easier to digest
Shelf life & preservation → raw cabbage highly perishable → lasts weeks to months
princples of preservation
pH control: LAB produces lactic acid lowering the pH to create an acidic environment that inhibits harmful microbes. Lactic acid bacteria convert carbohydrates into lactic acid → lowers pH (4.2–4.6) inhibiting pathogenic bacteria
exclusion of air: alt is massaged into the cabbage, drawing out water through osmosis and forming a natural brine that lowers water activity. The cabbage is packed tightly and kept fully submerged, removing oxygen and creating anaerobic conditions. This applies the preservation principle of exclusion of air by inhibiting aerobic spoilage organisms such as mould while allowing lactic acid bacteria to dominate and safely ferment the product.
Fermentation occurs at a controlled room temperature of 18–22°C to activate and accelerate the growth of beneficial lactic acid bacteria. Although this range falls within the temperature danger zone, the process remains safe because the salt concentration, reduced water activity, and anaerobic environment selectively favour lactic acid bacteria while suppressing pathogenic and spoilage microorganisms. Once sufficient acidification has occurred, the product is transferred to refrigeration at 0–4°C, which slows microbial and enzymatic activity, controls the fermentation rate, and extends shelf life by moving the product out of the danger zone.
