The key note speaker to the inaugural National Farmers Federation congress, Professor David Hughes, yesterday told more than 300 farmers in Brisbane that as Australian farmers are not the lowest cost producers of food in the world, they need to invest more time and effort pitching their produce to higher-income consumers.

He believes Australian farmers can do well in a growing income market, offsetting the loss of market share to low-cost countries like Brazil and Chile.

His message on the opportunities for Australian agriculture in an increasingly hungry world was a simple one: "It's fine to have poor friends, but it's better to have rich customers," he said.

"Looking across the major commodity sectors, I would bet you're not the lowest cost producers anymore.

"And if you're not the lowest-cost producer what's plan B because when it comes to a bear-knuckle fight on the commodity markets, it's the low-cost guys that are going to win."

Professor Hughes – a British-based expert on global food issues - said from the Australian agricultural perspective in a hungry world, farmers need customers with income.

"Those with income not only want an astonishingly good feed, they want low cost too, but they value things other than just low price.

"And that gives you an opportunity to do well in a growing income market."

He said Australia should be targeting those consumer nations that want a little more than just the lower cost of food in what they're buying.

"Australians can give them a good deal on price, but you can also give them more."

Professor Hughes believes the growth in meat consumption was driven by parallel growths in income and population.

But he warned farmers that they risked losing international competitiveness to those lower cost countries if they could not find ways to grow market share and make a profit in the process.