Food processing inquiry puts reform on the menu

Australia’s $108 billion food and grocery manufacturing sector has welcomed the report of the inquiry into Australia’s food processing sector, tabled in the Senate today.

The committee, established in early 2011, was tasked with investigating possible policy responses to the challenges and pressures within the broader economy that threaten the ongoing viability and competitiveness of food processing in Australia.

AFGC Chief Executive Mr Gary Dawson welcomed the report highlighting the need for measures to enhance the competitiveness of the nation’s largest manufacturing sector – employing around 200,000 Australians.

“This report is a comprehensive look at the factors that are affecting this vital industry, including high dollar resulting in greater imports; rising input costs and skills shortages; competition in the retail sector and regulatory compliance costs,” Mr Dawson said.

“The report really highlights practical recommendations which can reduce some of the costs of doing business in Australia and drive productivity growth.

“Concerted action to enhance the competiveness of companies across the sector is vital. To that end, AFGC welcomes the committee’s recommendations in relation to:

• Reinvigorating the regulatory reform agenda to streamline regulatory arrangements across the states and territories including in taxation arrangements, and infrastructure and food regulatory requirements.
• Targeted programs within migration and education policies to meet specific needs of the workforce skill needs of the food manufacturing sector
• Review current regulatory oversight to ensure fair trading along the supply chain
• Drive food exports through further pursuit of appropriate bilateral trade agreements
• Improving labelling for country of origin to ensure consumers have relevant information about where foods are sourced and processed

Mr Dawson said it is critical to increase investment in innovation as a foundation to improving competitiveness.

“The AFGC looks forward to working with the Parliament in considering how the Inquiry recommendations might be implemented in practical policy and program initiatives in support of the food industry, particularly in the context of the development the National Food Plan,” Mr Dawson said.

“There is a real urgency, for getting on with the job. There’s no doubt that global demand for food is accelerating, the question is whether we have the right programs in place to ensure Australian food manufacturing shares in, and profits from, that growth.”

Source: Australian Food & Grocery Council, 16 August 2012