Coalition's manufacturing policy good news for food sector, says AFGC

The Coalition’s manufacturing policy is a step towards enhancing Australia’s food and grocery manufacturing sector, the Australian Food and Grocery Council (AFGC) says.

AFGC CEO Gary Dawson said the $110 billion food, beverage and manufacturing sector will benefit from a serious government effort to boost productivity, reinvigorate regulatory reform and encourage investment in innovation and R&D.

“The Coalition’s focus on attracting investment, removing unnecessary regulation and listening to industry views on building a competitive sector is very welcome. The best thing a future government can do is rebuild confidence to invest by providing a more stable and certain environment,” said Dawson.

“To that end, the commitments from the Coalition on improving incentives for investment and R&D, seeking industry leadership to develop Strategic Growth Action Agendas and pushing back on costly and unnecessary regulation are all positive steps.

“The food and grocery manufacturing sector is vital for Australia’s food security and for the economic viability of many regional communities. It is also fundamental to a strong diversified economy, employing almost 300,000 Australians directly and representing more than a quarter of the manufacturing sector.

“Currently, food and grocery manufacturing in Australia is under extreme pressure from rising costs, retail price deflation and a high Australian dollar, all of which are squeezing profitability and raising the real risk of jobs and production shifting offshore.

“Our goal must be to build an export-competitive advanced manufacturing sector that can benefit from the growing export markets in Asia.

“Foreign investment is critical to realising this aim, as is a greater focus on value-adding in Australia and on the inclusion of processed foods in trade negotiations. The Coalition’s emphasis on these elements in the manufacturing policy are also welcome.

“Should the Coalition be elected, we will be vigilant in holding it accountable for delivering on its commitment, particularly in regards to regulatory reform, investment incentives and trade and investment promotion.”