Greater Shepparton shines as a regional hub for food and grocery manufacturing

A joint event held by Community for Greater Shepparton and AFGC on 3 September 2024 highlighted the strength of food and grocery manufacturing in Greater Shepparton, dubbed the ‘Food Bowl of Australia’. The government was also called on to support the region with tax incentives to help it through challenging times.

Food and grocery manufacturing is crucial to regional Australia, employing nearly 40% of the sector’s 280,000-strong workforce. Greater Shepparton stands out as a key player, transforming locally sourced agricultural products into trusted Australian brands. From dairy products and canned fruits to instant soups and liquid fabric softeners, the region's diverse output reflects its strong manufacturing base.

Data released at the event included:

• Largest manufacturing sector: Food and grocery is the largest manufacturing sector of the Greater Shepparton region, which includes Moira, Shepparton and Campaspe.
• Economic contribution: The sector generates over $3 billion annually.
• Employment impact: The sector accounts for 66.5% of total manufacturing jobs in the region.
• Product dominance: Dairy manufacturing represents 52% of the sector while fruit and vegetable processing accounts for 22%.

Greater Shepparton, producing about 25% of Victoria’s agricultural output, excels in transforming local produce into a wide range of products, bolstering both employment and the broader economy. The percentage of the region’s food and grocery manufacturing turnover is as follows:

• 53% — dairy product
• 22% —fruit and vegetables product
• 8% — meat and meat product
• 7%— other food products

The sector, however, faces national challenges, including the need for a skilled workforce, energy security and resilient supply chains. As the world moves to a lower carbon economy, substantial investment will be needed to drive the clean energy and circular economy transitions and to adopt digital technologies to maintain global competitiveness.

At the event, the government was called on to back regions like Greater Shepparton through an investment tax incentive to enhance the future capability of this vital industry, ensuring it continues to sustain Australian jobs and the economy. The Future Made in Australia policy is one way government can unlock the manufacturing power of its regions.

AFGC CEO Tanya Barden said: “Manufacturing is important, but we can't take it for granted. Today’s data highlights the significant size and importance of the food and beverage industry, but it also underscores the need for future investment to keep this sector competitive and robust. The government has a golden opportunity to leverage Australia’s natural agricultural endowments by supporting regions that process them into products.”

CEO of the Committee for Greater Shepparton Linda Nieuwenhuizen said: “Greater Shepparton’s impact goes beyond producing fresh local produce. It’s about transforming products from farm to supermarket shelf through manufacturing. This is now the lifeblood of the region’s economy and employment. We’re excited about our partnership with AFGC to showcase how essential food and grocery manufacturing is to our region, Victoria, and the nation.”

Image credit: iStock.com/carlosgaw