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The smartest thing in your fridge: AI in the FBA supply chain

ANZ Executive Director, Food, Beverage and Agribusiness

2025-07-02 00:00

“AI isn’t just changing how food is produced and delivered - it’s rewiring the entire system, from data point to dinner plate.”

Your AI-enhanced morning coffee: the future is already brewing

It’s 6 AM. You groggily prepare your coffee, making a mental note to buy more beans. Then you remember - your new AI-enabled coffee machine already knew you were low and ordered more before you even realised. 

Months earlier, thousands of kilometres away, AI ensured your favourite blend was harvested at peak ripeness, transported efficiently and delivered without delays. 

Back in your kitchen, your smart fridge suggests a breakfast recipe based on ingredients about to expire, helping you cut food waste. (It even understands not to be too chatty this early in the morning.) Sounds futuristic? Not anymore. 

AI isn’t just changing how food is produced and delivered - it’s rewiring the entire system, from data point to dinner plate. And for some of the world’s biggest food, beverage and agribusiness (FBA) companies - including meat processors, grain handlers and retailers - AI is quickly becoming an essential competitive advantage. 

The new AI: why this time is different

For years, agtech has focused on automated irrigation, GPS-guided tractors and drone monitored crops. While this brought major benefits to food supply chains, today’s AI is something entirely different. AI doesn’t just follow instructions - it learns, predicts and optimises in ways humans never considered. 

AI in meat processing: the rise of the digital butcher

The art of butchery is centuries old, but AI is bringing a high-tech upgrade to the meat industry - one that’s faster, safer and more precise than ever before. 

AI-powered vision systems assess carcass quality in milliseconds, grading meat for tenderness, fat marbling and value with pinpoint accuracy. Where humans require years of experience and training, AI scans thousands of data points instantly, ensuring every cut meets exacting standards. 

AI isn’t just grading meat - it’s revolutionising how it’s processed and sold. Smart robotics are taking over dangerous cutting tasks - reducing injuries and precision-slicing steaks to restaurant-grade specifications. AI-driven sorting systems ensure high-end Wagyu is sent to Japan’s luxury steakhouses, while value cuts head to domestic retailers. 

AI is even predicting demand trends so that processors can adjust production before supply chain issues arise. Looking ahead for consumers, the next step may be AI-powered butchery on demand. 

Imagine a future where customers can personalise their meat orders - selecting fat content, thickness and cut style - while AI-controlled machines process their order instantly. And once it’s delivered, your AI-powered oven will cook it to perfection - and without judging you if you order your steak well-done. 

Grain handling: smarter storage, faster exports

For major grain handlers, AI is taking quality control to the next level. AI-powered sorting systems scan each grain with microscopic precision, detecting contaminants, optimising blending strategies and ensuring every shipment meets the highest standards - whether it’s wheat for Indonesian mills or barley for China’s breweries. Meanwhile, grain storage is getting a high-tech upgrade. 

Smart sensors inside silos act like mini weather stations, tracking temperature, humidity and pest activity in real time. If a hotspot threatens to spoil a batch, AI detects the issue early and triggers adjustments, preventing expensive losses. 

On the export front, AI is turning bulk shipping into a logistics masterpiece. Imagine an AI-powered transport control system for grain, constantly monitoring vessel arrivals, port congestion and geopolitical risks. 

If a heatwave in India spikes wheat demand or a Red Sea shipping crisis threatens delays, AI reroutes shipments, times exports perfectly and locks in the best price. For traders, it’s like having a Wall Street algorithm fine-tuning every deal in real time. 

Smarter supermarkets: how AI prevents empty shelves and overstocked warehouses 

Ever wondered why some supermarket shelves are mysteriously empty, while others are overflowing with food no one seems to want? That’s a supply chain inefficiency hiccup. 

AI is seeking to iron out these occurrences, ensuring the right products arrive at the right place at the right time. Traditional forecasting relied on a mix of historical data and educated guesses. AI does something smarter - it monitors real-time demand, weather patterns, transportation delays and social media trends. 

If a cyclone is about to hit Queensland, AI triggers early shipments of bottled water and non-perishables. If a TikTok trend suddenly makes a niche snack go viral, AI reroutes shipments before stock shortages happen. 

Meanwhile, AI-powered predictive maintenance keeps factories running at peak efficiency. If a key machine is about to fail, AI spots early warning signs and schedules repairs before breakdowns happen - resulting in fewer shutdowns, fewer shortages and lower costs. 

The use of AI in food processing is expanding rapidly as companies look for smarter, faster and more sustainable ways to produce food. Across areas like fruits and vegetables, dairy, meat and poultry and convenience foods, AI is being used to improve quality control, increase efficiency and reduce waste. 

One forecast predicts that investment in AI food processing technologies will more than double from USD 12.7 billion in 2024 to USD 26.8 billion by 2033, with the strongest growth expected in sectors where precision and consistency are critical to meeting both consumer expectations and regulatory standards. 

Spoiler alert: AI is coming for food waste 

Food waste is one of the biggest inefficiencies in food systems – it costs billions, creates massive emissions and can leave people hungry while perfectly good food gets tossed. Some estimates suggest that one-third of all food globally is wasted - left to spoil in warehouses, discarded by supermarkets or rotting at the back of home fridges (or school bags, if we’re being honest). 

AI is stepping in to stop the madness. Supermarkets are using AI-powered demand forecasting to order just enough, preventing overstocked dumpsters and panic markdowns. In food factories, AI-powered cameras inspect freshness faster than human eyes ever could. 

At home, smart fridges could track expiration dates, suggest recipes and remind you to eat your leftovers before they become fermentation experiments. If AI cuts waste by even five percent, that’s billions saved, fewer emissions and more food available for those in need. 

AI vs food fraud: how technology is exposing fakes before they hit the shelf 

That bottle of Grange Hermitage you paid a fortune for - real Barossa Valley wine or a Shanghai counterfeit? That premium Wagyu steak – hand-fed, or just rebranded supermarket beef? AI is increasingly stopping food fraud before fake products hit the market. 

AI-powered chemical fingerprinting can verify wine composition in seconds, ensuring premium bottles aren’t cheap imitations. AI image recognition scans meat texture and fat marbling, detecting if “Wagyu” is the real thing. Deep-learning fraud detection systems expose fake organic labels - if an “organic” farm is producing enough kale to cover half of Australia, AI knows something’s not right. 

For food companies this isn’t just about ethics - it’s about survival. Counterfeit food costs the industry billions, and if one scandal can ruin a brand’s reputation overnight, then stopping fraud before it happens becomes essential - and that’s where AI comes in. 

The takeaway: AI is already changing the way we eat 

For FBA companies, AI isn’t a trend - it’s an inevitability. Businesses that embrace AI-powered analytics, automation and sustainability will lead the industry. 

And if AI finally figures out how to tell you when the avocados, pears or bananas in your kitchen are perfectly ripe before turning to mush overnight, then maybe that’s the greatest food innovation of all. 

Michael Whitehead is Executive Director, Food, Beverage and Agribusiness at ANZ

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The smartest thing in your fridge: AI in the FBA supply chain
Michael Whitehead
ANZ Executive Director, Food, Beverage and Agribusiness
2025-07-02
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The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

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