1.1 The report consists of seven chapters divided into three parts. Part 1 consists of Chapters 1 and 2, Part 2 contains Chapters 3, 4 and 5 with Part 3 composed of Chapters 6 and 7. Chapter 1 of Part 1 is largely an introduction to the issue of value-adding in agricultural production with Chapter 2 providing an examination of several significant industries involved in value-adding activities in Australia.
1.2 This chapter defines the concept of value-adding in relation to agricultural production and sets out the importance of value-adding to the national economy. By providing information on the structure of Australia's agricultural industry and its performance in comparison with the manufacturing sector it is intended to provide the reader with an appreciation of the context in which value-adding takes place.
1.3 A number of issues are introduced in this chapter that are dealt with in greater detail in later chapters in relation to specific sectors of Australia's agricultural industry. These issues include: research and development, Australia's competitiveness in adding value to its agricultural production and Australia's exports of value-added products.
1.4 The content of the chapter has been set out under the following major headings:
Definitions of value-adding;
Importance of agricultural production in Australia;
Structure of agricultural production;
The importance to Australia of value-adding activities;
Australia's value-adding enterprises;
Australia's advantages in value-adding;
Australia's competitiveness in value-adding;
The performance of food processing and other manufacturing sectors compared;
Australia's agricultural based exports;
Import of value-added products;
The myth of value-adding;
Costs vs benefits in relation to value-adding; and