Competitiveness the biggest hurdle for Aust food sector

The food and grocery sector’s biggest challenge is competitiveness, Gary Dawson, CEO of the Australian Food and Grocery Council (AFGC), has said.

Dawson made the comments in response to the federal government’s Industry Innovation and Competitiveness Agenda, which was released today. The AFGC welcomes the report’s strong focus on boosting industry competitiveness.

“The Industry Innovation and Competitiveness Agenda released today unashamedly backs Australia’s strengths in nominating five growth sectors for the future,” said Dawson.

“Food and agribusiness is one of those growth sectors, with great potential to drive jobs, growth and investment as the mining boom tapers off.

“This comprehensive package encourages a business-friendly environment which fosters commercial innovation while also attacking additional costs caused by unnecessary regulatory duplication and complexity.

“To maximise Australia’s comparative advantage in agribusiness we need to be value-adding here in Australia, turning our high-quality agricultural production into high-value, premium-priced food for the growing middle-class markets in Asia and beyond.

“The creation of the Food Industry Growth Centre announced today will help drive greater innovation and assist particularly small businesses in accessing and commercialising research breakthroughs. It is a key building block for the future growth of the food sector.”

The AFGC says it welcomes the agenda’s priority areas for action, including:

• Streamlining of regulatory approvals to avoid Australia ‘reinventing the wheel’ when it comes to internationally accepted regulatory standards.
• Greater commercial focus in the awarding of research grants.
• Increased emphasis on science, mathematics and vocational training that is tailored to business needs.

“The strong emphasis on regulatory reform is also welcome. Ongoing regulatory reform that helps reduce the high costs of doing business in Australia is vital for the future competitiveness of trade-exposed sectors like food and grocery and essential to boost our trade performance,” said Dawson.