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Briefs

Member update: Middle East impacts and our focus on the issues that matter

Member update: Middle East impacts and our focus on the issues that matter

21 April 2026

You may have seen a recent article reflecting on our public audit released last year as part of our regular annual report process. The article refers to opportunities for improvements called out in last year’s  management report which were in the process of remedy at that time or have been subsequently actioned.  

We were approached to comment on a range of different issues reported last week to which we did not formally engage.

Our view was squarely on the challenging environment being faced by the entire industry and the fact we are engaged in finding solutions in such a complicated environment.

With respect to the article directly, we are in a strong financial position with a focus on good governance practices that have continued to evolve over the last 2 years.  This has been presented to the members at our CEO Dialogue sessions and directly to the Annual General Meetings of the AFGC. 

Some specific key points on our enhanced governance include: 

  • the Board has taken responsibility for any bonus allocations,  
  • we have strong governance backed up by our auditors,  
  • there is no lack of integrity in reporting,  
  • we have installed strong tax compliance and protocols to ensure activity statements for BAS and other tax obligations are met by bringing our financial management back in-house.  All our accounts are within payment terms.  
  • our investments are rewarding, debtors managed and cash flow more than adequate to cover our liabilities, and  
  • we have a strong and experienced finance and risk committee. 

Beyond the specifics, the AFGC is a member-led organisation with clear Board oversight and established processes for accountability, risk management and continuous improvement. We have always welcomed accountability and the opportunity to identify improvements through the independent audit.  

The AFGC is fortunate to have as our independent Chair someone with an incredible amount of experience in running major organisations. When discussing the governance with AFGC Chair Bernie Brookes, he shared: 

“I Chair six boards and by far the governance and professionalism of the AFGC is a standout – the quality of the board and the focus on compliance is of the highest standard.” 

I do think it serves as an opportunity to let you know despite these types of articles, our focus remains sharply on the Middle East disruption as well as some of the structural challenges faced by Australia’s food and grocery suppliers.   

Here’s what we’re doing for members right now: 

  • Middle East disruption: We’re actively tracking impacts and coordinating a whole-of-industry response. This includes engagement through government roundtables (including the Office of Supply Chain Resilience and National Coordination Mechanism), regular Member outreach to capture at-risk inputs, and regular briefings. We are also assessing flow-on impacts across fuel, freight, shipping and packaging/resins, and escalating advocacy and communications as trigger points are met. 
  • Cost of manufacturing in Australia: We’re continuing advocacy on the big drivers of cost. Our Energy and investment work highlights the scale of the challenge (including gas reliance for high-heat processes) and the need for targeted government support and investment to keep Australian manufacturing competitive. With the Federal budget weeks away, we are hopeful of some productivity measures or some incentives to invest here in Australia.  
  • Workforce pressure: We’re leaning into workforce projects, including a soon to be released short report on workforce challenges and a deeper dive on vocational pipelines, geographic pressures and the role of automation. 

It is on these matters that we spend days talking to governments, including Ministers and their offices, our retail partners, media outlets and the broader industry. Stay tuned for much more on the Middle East as we outline our sector’s unique place in the middle of the supply chain and what this means for our sector, the economy and consumers alike.  

Our focus remains firmly on delivering for members by providing credible advocacy, practical support and chasing the issues that shape your ability to invest, innovate and grow.  

Regards, 

Colm Maguire 
Chief Executive Officer