Page 16 - Food & Drink magazine June 2021

BY ASSOCIATION
Planning for a bright future
The food and grocery manufacturing sector’s success at keeping supermarket shelves stocked during the early months of the 2020 COVID-19 pandemic demonstrated the importance of a vibrant domestic industry and robust supply chains.
Food and grocery manufacturing is also an important contributor to Australia’s international
trade: exports accounted for $36.7 billion in 2018/19 and
are quickly growing to be
the biggest opportunity for
this sector. As a provider of high-quality, trusted food and grocery products, this sector is positioned to capitalise on the market opportunities – rising populations, rising incomes and growing numbers of middle- class consumers – occurring around the world, many of them on our doorstep.
Australia’s well-deserved ‘clean and green’ reputation will not be enough to ensure our sector remains competitive in either the domestic or export markets into the future. In
a fast-moving environment shaped by digital technology and social media, consumers are opting for innovative and premium products that are convenient and in harmony with a growing focus on healthy and sustainable living. Meeting these market trends requires investment – in new products, innovative packaging and digital technologies that provide consumers with rich experiences and assure them of authenticity and provenance.
Australia’s food and grocery sector has been under pressure as profitability has declined and capital investment stagnated over the past decade. The result has been being a stifling of innovation, with spending on research and development in the sector falling in recent years to 2009/10 levels.
If a strategic approach is taken to the sector’s future, building on the positive direction taken by the federal government through the Modern Manufacturing Strategy, the rewards can be immense.
Further investment via the Modern Manufacturing Strategy program is needed
Food and grocery manufacturing is a critically important part of the Australian economy. Australian Food and Grocery Council CEO Tanya Barden explains the steps needed for the sector to realise its full potential.
FOOD and grocery manufacturing is the largest component of Australia’s manufacturing sector and is a significant employer, providing almost 276,000 jobs around the nation, including more than 108,000 in regional areas.
The sector plays a vital role in supplying high-quality food and grocery products to Australians, taking fresh produce from Australian farmers and turning it into the iconic products we know and trust.
Australia’s food and grocery manufacturing sector is facing a defining moment:
the strengths that made
it a resilient and reliable
force during the COVID-19 lockdowns of 2020 and over the decades before then, cannot
on their own guarantee a robust and growing sector well into the 21st century. There
are steps that can be taken, however, that can realise the sector’s full potential and deliver a vibrant future.
The Australian Food and Grocery Council (AFGC)
has released a new report examining the future of food and grocery manufacturing in Australia. The report, Sustaining Australia: Food and Grocery Manufacturing 2030, produced by the AFGC and economics advisory and research firm
EQ Economics, has identified major opportunities and vulnerabilities for the sector. While our report identifies risks, it also lays out a potential growth path. It sets out a vision, based on practical policy
and investment measures,
for doubling the size of Australia’s food and grocery manufacturing sector to $250 billion by 2030.
16 | Food&Drink business | June 2021 | www.foodanddrinkbusiness.com.au