Food for thought: Biodiversity management on farms - links to demand-driven value chains

Traditionally agricultural production in western countries has been driven by commodity markets, where farmers are price-takers, dependent on market demands. Agricultural intensification combined with the globalisation of markets and declining terms of trade for many farmers have all impacted on farm land management decisions, which in turn had impacts on biodiversity. Globally the production of food and fibre has had detrimental impacts on the environment. Native vegetation clearance and the intensification of agricultural land management in Australia have adversely affected native biodiversity. The pressure on farmers to produce low-cost commodities has a biodiversity cost, one that is driven ultimately by internal and external factors, including consumer demands. This paper discusses the known and potential impacts of food and fibre production on biodiversity, and the consequences of consumer demand for quality, low cost produce.