Page 41 - Food & Drink Business Jan-Feb 2020

demand and pork prices sky high. For the domestic pork
industry, where stock has remained unaffected, the opportunity to harness export opportunities for top prices makes sense. But for Australian consumers the cost of pork products will inevitably increase substantially due to low supply.
And this will have a knock on effect, with international demand for other proteins like beef and chicken also increasing. Again, reduced domestic supply will drive prices in the local market up.
This is not just bad news for consumers but also manufacturers reliant on pork, beef and chicken to make their products.
We know Australian companies can absorb mounting manufacturing costs for only so long before viability is impacted. That is why the
Australian Food and Grocery Council (AFGC) will continue working hard to ensure policy settings are right for the ongoing viability of our industry.
We must ensure economic and policy conditions are right so medium and larger manufacturers can prosper in Australia. Cutting red tape and incentivising innovation and investment must be a focal point for the federal government to ensure the sector remains competitive on the international stage amid global and domestic growth slowdown.
So far we have been lucky. The sector’s global footprint continues to expand, with free trade agreements opening up more and more export opportunities. China remains a vital market, with total two-way trade of $9.63 billion, and the United States and New Zealand are also key.
Domestically, strengthening the Food and Grocery Code of Conduct to create a fair playing field between suppliers and supermarket retailers will be in the spotlight in 2020 and is a top priority for the AFGC.
To this end, we will continue to work closely and collaboratively with the government to ensure changes to the code work for our members, establishing strengthened provisions in regard to commercial retailer- supplier relationships.
Our sector never stops evolving and at a time when consumer demands are changing, we have to ensure the industry stays up to pace and relevant, balancing public interest in reducing litter and plastic while reducing food waste and maintaining our high food safety standards.
This is why we are striving to keep improving environmental sustainability in the sector, with a focus on packaging and recycling.
Likewise, with health
in the spotlight, the AFGC continues to work with regulators to ensure consumers are well-informed through promoting initiatives like the Health Star Rating.
Though there is no doubt these factors present challenges, they are also opportunities for innovation and diversification. I believe the word ‘opportunity’ aptly sums up the future of our sector. And when opportunity arises it must be harnessed.
There is opportunity to innovate but this must be supported by investment.
The AFGC will continue to call on all levels of government to consider investment allowances or incentives to support and boost growth.
There is opportunity drive competitiveness in domestic and international markets and the AFGC will continue to advocate for a regulatory framework and reforms to help reduce costs and drive growth for manufacturers.
And there is opportunity for sector reform, which will play a key role in recalibrating social and sustainability policies that better align with changing consumer demands. ✷
✷ ABOUTTHEAUTHOR
BY ASSOCIATION
Tanya Barden is the CEO
of the Australian Food
and Grocery Council. Her
career has focused on
policy and regulatory
issues that impact the industry (such as energy, environment and industry economics) while working in government, the private sector and her own online organic grocery business. She was chair of the National Packaging Covenant Industry Association from 2015-2017.
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