Victorian energy grants to food and drink businesses welcomed

26 June 2025

The Australian Food and Grocery Council welcomes $10 million in funding by the Victorian government that will support companies to transition away from gas towards renewable energy, helping to secure business and the thousands of jobs they support.

The food and grocery sector is the third largest user of energy of all manufacturing industries in Australia, about 40% of which is sourced from gas. But price volatility and supply issues in the gas market are threatening the ability of manufacturers to power their operations, putting domestic food production at risk.

That’s why partnering with government through support such as grants and incentives for energy transitioning is key to the sector’s success.

AFGC CEO Colm Maguire said: “This funding is a step in the right direction for manufacturers already dealing with high energy prices and uncertainty around future supply. We welcome the Victorian government’s commitment and look forward to working together on more comprehensive solutions that keep food production strong and sustainable.”

The AFGC says further work is needed to ensure renewable alternatives to gas are viable and commercially available at scale, particularly for high-heat industrial processes which are not easily electrified.

The Victorian government grants recognise the importance of the food and beverage sector, which contributes more than $47 billion to the economy and supports over 76,000 jobs statewide.

Media Contact

Zandi Shabalala
media@afgc.org.au
0430 051 575