A new report has found that northern Australia's agricultural supply chains need an urgent shake-up to fully capitalise on the region's economic development opportunities.
Undertaken for the Cooperative Research Centre for Developing Northern Australia, the Reframing Smart Supply Chains in Northern Australia report highlighted a number of areas for improvement if the significant potential for economic growth it identified is to be capitalised on.
These included strengthening supply chains, intensifying trade volumes, adopting digitally smart technologies, and having a more targeted market approach.
As well as backing its call for urgent action, the Australian Logistics Council's CEO Kirk Coningham said the north's vast potential was being choked by a lack of clarity and vision.
"The enormous global opportunity in the COVID-19 'new normal' will only be realised if we get supply chains right," he said.
"And the timing is perfect to leapfrog into a new future embracing a sophisticated, collaborative, connected approach powered by technology and a sense of urgency.
"If we get this right now, northern Australia will earn a reputation as a reliable supplier of the quality produce the world craves.
"That will serve the north, and Australia, for decades to come as we trade our way out of the COVID-19 recession."
Asian markets remain critical to northern Australia despite the uncertainty caused by the global pandemic, according to report co-author James Cook University Professor Hurriyet Babacan.
"We identified synergies in supply chains between northern Australia and our neighbouring countries that could be further strengthened by establishing sub-regional trading strategies or blocs for northern Australian producers," she said.
"COVID-19 has caused significant disruptions to domestic and international supply chains and shown the critical role they play in our lives.
"The challenges have highlighted the need to shift our supply chain thinking to look at ways more sectors and supply chain participants can work together - to create scale, resilience and persistence in the market."
That rethink should address the cost of freight, according to CRCNA CEO Jed Matz.
He said such large issues couldn't be resolved in isolation and would require a whole new approach, which was why the CRCNA strongly supported calls for the establishment of a Northern Australian supply chain fund.
Saying it made sense for the federal government to consider it as part of a recovery plan, he said such a fund would identify, prioritise and develop freight and non-freight business case options or models.
"The fund would focus on building stronger supply chain collaborations at the right scale and test the feasibility of these investments," he said.
Given the success of the Commonwealth investment model applied in the Northern Australian National Water Infrastructure Development Fund, the CRCNA suggested a similar approach for northern supply chain investment and development.