Global demand for food will explode by 2050 and competition will be fierce to feed all the extra hungry mouths, farmers have been told.
At an agricultural conference in Canberra on Tuesday, they were told global food demand will increase 75 per cent by the second half of this century, and hungry markets in Asia demanding high quality products would be the ones to watch.
The Australian Bureau of Agricultural Research Economics and Sciences (ABARES) said this presented serious opportunities for Australian farmers, but they would have to be ready to fight for a share of the pie.
"Competition will come from all around the world, but also from increased production in the Asian region itself," ABARES economist Jammie Penm said.
Price rises were expected to soften as Asia starts boosting its food production, so Australian farmers would need to increase productivity to compete.
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In its latest quarterly statement, ABARES offered a less than rosy outlook for Australia's agricultural sector, warning productivity needed to lift above current levels for the industry to remain competitive.
David Hallam, a director with the United Nations Food and Agriculture Organisation, told conference delegates Asia wasn't alone when it came to being wary of foreign investment in farming.
"It's a very controversial area, especially in developing countries, but I know ... it's a very controversial issue here in Australia as well," he said.
Direct investment by foreign companies could have a real impact on improving Asia's agricultural productivity, but the region would face challenges in attracting foreign cash and delivering on investments, Mr Hallam said.
