Updated May 04, 2012 09:29:15

Video: Gillard promotes nation's food credentials (ABC News)

Related Story: White paper to seek stronger ties with Asia

Prime Minister Julia Gillard says Australia has the potential to become a global food superpower.

Julia Gillard addresses the Global Foundation summit at the National Gallery of Victoria. Photo: Justin McManus

Ms Gillard told an international summit in Melbourne last night that Australia needed to capitalise on the soaring regional need for food in the same way it currently did with resources.

"Just as we have become a minerals and energy giant, Australia can be a great provider of reliable, high-quality food to meet Asia's growing needs," she said.

"In doing this, we are not just an exporter of commodities but a partner in growing international markets and a provider of higher value products and services for the global food industry."

She says Australia needs to become a leader in the area of food production.

"It's not just about more exports. It is about developing the systems and services that add extra value to them and participating in the development of a market-based solution to food security across the region," she said.

"Building our food processing industry so that it can supply Asia's growing consumer markets and developing the research, technologies and logistics that strengthen irrigation, grow higher-yield crops and improve safety."

In September the Prime Minister commissioned former treasury secretary Ken Henry to author a White Paper to map out Australia's economic and strategic engagement with Asia over the coming decades.

'Hang on to your hats'

Ms Gillard says Australia is in the unique position of being close to the economic engine room of the 21st century.

"If you think the change we have lived through already in our region and in our nation is amazing, then hang on to your hats because so much more change is still to come," she said.

"Today, for example, 30 per cent of global output is created within 10,000 kilometres of Australia's shores. That may double by 2050."

"By 2030, China and India alone are forecast to account for 35 per cent of global energy demand."

But she has called on the country to become more "Asia literate" to take advantage of the boom.

"White Paper consultation has demonstrated that cultural literacy and understanding, or what Ken Henry describes as 'Asia-relevant capabilities' are vital to Australia's prospects in this century," she said.

"We need to encourage even more Australians to study and work in the region and maintain their connections over their lifetimes."

And she says Australian business must learn to adapt to the changing regional environment.

"Australian businesses must find opportunities in conditions where the dollar and terms of trade will remain high for the foreseeable future," she said.

"They will not do that by simply doing more of the same or by slashing costs and quality. They will need to offer products and services with distinctive value, based on real areas of comparative advantage.

"Indeed, the 21st century business model is likely to be very different from the successful business models of the last quarter of the 20th century."

Gillard sees Australia as future food superpower - ABC News (Australian Broadcasting Corporation)