Food the trailblazer on road to recovery: Anthony Pratt

Anthony Pratt has urged the food and beverage ­industry to support the government’s recovery roadmap, while warning ­climate change is the sector’s greatest threat.

Anthony Pratt says the government is ‘preparing a food-and-beverage industry road map and we ­encourage everyone to support this initiative’. Picture: Aaron Francis

Packaging magnate Anthony Pratt has issued a fresh rallying call to the food and beverage ­industry to support the federal government’s COVID-19 recovery roadmap, while warning ­climate change represents the sector’s greatest threat.

In a speech to The Australian and Visy’s eighth annual Global Food Forum on Wednesday, Mr Pratt will laud the government for focusing the federal budget on a manufacturing-led recovery.

The government chose food and beverage as one of the manufacturing sectors to benefit from $1.5bn in funding in the budget, alongside resources and critical minerals processing; medical products; recycling and clean ­energy; defence; and space.

In response to strong calls from big and small business, the budget included accelerated ­depreciation schedules for big capital investments.

The plan mirrored policies introduced by US President ­Donald Trump three years ago which have helped underpin the growth of Mr Pratt’s American business, Pratt Industries. The budget also included initiatives to unlock gas reserves in Queensland and the Northern Territory to fire a gas-led recovery.

“Reducing the cost of capital will spur capital formation and thereby create more jobs,” Mr Pratt will tell the forum.

“And congratulations on the Prime Minister’s great focus on energy, including gas.

“And in the recent budget there were excellent initiatives to help farmers, as well, like getting young Australians into our ­orchards, and for vital new water infrastructure, and cutting red tape on exports.

“The PM and government are preparing a food-and-beverage industry road map and we ­encourage everyone to support this initiative.”

Mr Pratt, who is the executive chairman of Australasian cardboard-box maker Visy, also entered the climate change debate last week, telling The Wall Street Journal’s annual Global Food Forum that it was the greatest challenge for the food industry in a post-COVID world.

“Climate change could cause food shortages that lead to a world ­crisis far surpassing the effects of COVID-19,” he said, but added that the solutions were “at our ­fingertips”.

“We should view this challenge as an opportunity to shield the industry with impactful, practical measures,’’ he said, identifying key investments in water infrastructure and irrigation, using — where possible — greenhouses to protect crops, ensuring no food goes to waste and promoting low-carbon products.

“Let’s make the food sector more resilient for the future, while growing the industry, boosting jobs, and doing right by feeding everyone,” he said.

Since The Australian and Visy launched the Global Food Forum in Australia in 2013, the nation’s value-added manufactured food exports have grown from $18bn to $28bn despite drought and bushfires, according to Mr Pratt.

There have also been 1400 food factories built in Australia over that period, he says.

“In 2013 we set ourselves a goal of doubling the value of Australia’s food exports by 2025,” he will say on Wednesday. “Well, it’s grown by two thirds in eight years and outclassed other traditionally big exports like coal.

“In fact, in 10 years Australia has signed nine FTAs, with four more under negotiation.

“Food and beverage manufacturing is having a renaissance and will be a big driver of Australia’s future growth. And as Alison Watkins presciently said, because we can only produce enough food to feed 100 million people we may as well focus on value-added foods which can command a high price on export markets.”

Ms Watkins, the chief executive of soft-drink bottler Coca-Cola Amatil — who will also appear at the Global Food Forum on Wednesday — said on Monday that the National Farmers Federation’s goal of making Australia’s agriculture sector a $100bn industry by 2030 was achievable, aided by further investment from the superannuation sector, and strengthening trade with China and nations such as India and Indonesia.

In July Mr Pratt declared “manufacturing has never been more important to Australia’s ­future’’ after Visy agreed to pay $733m to acquire the Australasian glass bottle manufacturing assets of United States group Owens-­Illinois.