Member Matters

Food for Thought: Member Matters | August 2024

12 August 2024

Australia depends on a flourishing food and grocery manufacturing industry. As the largest manufacturing sector, it quite literally Sustains Australia.  

Our impact on jobs, the economy, and the overall well-being of Australia is clear in our annual economic snapshot, the State of the Industry. The latest instalment of the report, for the year 2022/23, presents a mixed picture. On the bright side, turnover and investment are up, but profits aren’t keeping pace. 

The key takeaway from these numbers is that while we are clearly a resilient sector, we need a lot more investment to stay ahead of the curve. This is so we have the agility to respond to fast-changing consumer diets, regulatory packaging changes, and a shift towards greener energy.  

The industry needs to significantly lift investment in coming years to enable the clean energy transition, circular economy and digital technologies to maintain global competitiveness. This aligns with the investment goals driving the Future Made in Australia Bill, which are to build globally competitive industries that boost economic prosperity and resilience, while supporting Australia’s net zero transformation.

The stakes are high. The food and manufacturing sector supports over 280,000 jobs in Australia and is worth more than $160 billion. Without strategic intervention, it will be difficult for consumers to find Australian-made, high-value products.  

That’s why we are urging the government to adopt an investment allowance that provides a tax deduction. This would encourage the kind of advancements that our industry needs to thrive. Ultimately, it’s about securing the future of an industry that’s vital to both our food security and the livelihoods of thousands of Australian, particularly in regional areas. 

This month I appeared at the hearings into the Future Made in Australia Bill to talk about AFGC’s call for a 30% investment tax incentive.

Elsewhere, our CEO Tanya Barden fronted the Senate’s Waste and Recycling Inquiry to encourage a whole of life cycle, whole of system and whole of nation approach to creating packaging circularity. While Deputy CEO Samantha Blake advocated for the industry at the Food and Beverage Manufacturing inquiry. 

Furthering member engagement, AFGC hosted two well-attended summits in supply chain and sales. In September we will be hosting a summit on sustainability, and we look forward to seeing many of you there. 

Scott McGrath
Director – Government and Media Relations