No organisation could have foreseen the extent of the effect of COVID-19 on our lives, let alone the economy. No one has been untouched, but those that were slow to respond, or that had no planning or preparation in place, will have suffered worst. The virus and its impacts have certainly highlighted the cost of inaction.

For those that did act, many implemented short-term measures in response to the rapid escalation of COVID-19 – aimed at keeping their businesses open and afloat, and their employees in jobs. Key measures here have included, for example, collaborating with up or downstream partners and maintaining customer engagement and loyalty.

These short-term, reactive actions have been broadly effective in supporting businesses and employees through this challenging time. However, it is important to recognise that short-term results alone will not be enough, and that businesses need to build a foundation for longer term resilience.

Approaches to building resilience will, in some ways, be unique to a business and its operating environment, but there are some broad actions they can take to mould to their own individual context to identify, prepare and respond to disruptions.

• Deploy cutting-edge technology to drive efficiency and enable a more informed future focused risk management process. Agribusinesses are increasingly leverage “Internet of Things” enabled guidance systems, variable rate technologies or drones to measure real time or nowcast key on-farm attributes such as fertiliser or chemical applications, water flow and soil-moisture. This strategic data and information promotes operational improvements giving organisations room to breathe in the event of a disruption event.
• Embracing digital transformation also supports organisations in planning identifying, and responding to disruptions. Blockchain technologies for example have been used to rapidly respond to product contamination issues while supporting consumer traceability and quality assurance. Similar integrating of digital technology into agri-food operations has also enabled greater oversight of production systems and supply chain performance, enabling more sophisticated response planning. 

While COVID-19 has disrupted much of the economy with unprecedented speed, it is unlikely to dissipate in a hurry, and Australian agribusiness in particular, will need to adapt to this new normal.

The pandemic does teach us the benefits of urgent action to limit worse outcomes. These learnings can be applied to agribusiness as a proxy to build resilience against potential future disruptive events.

There is a significant opportunity to double down on broader long-term resilience as a driver of future agribusiness success, ultimately bringing lasting competitive advantage.

Improving holistic risk management and strategic planning for climate change is one important way agribusiness can succeed into the future.