‘Break-glass ­moment’ facing food and beverage industry

The Morrison government is pursuing new export markets and supply chains to drive growth across one of Australia’s biggest employing sectors.

Industry Minister Karen Andrews will release the Morrison government’s food and beverage roadmap on Monday.

Food and beverage manufacturers are facing a “break-glass ­moment” amid rising global competition for investment and skills, as the Morrison government pursues new export markets and supply chains to drive growth across one of Australia’s biggest employing sectors.

Industry Minister Karen Andrews will release the Morrison government’s food and beverage roadmap under its $1.3bn Modern Manufacturing Initiative on Monday, as the sector warns of “stagnating investment” across the country.

The food and beverage roadmap, which says that by 2030 “we will double the value” of the sector, focuses on removing technological barriers, increasing domestic and foreign investment, enhancing supply chains and promoting innovation.

Mars Wrigley general manager Andrew Leakey, who sat on the government’s manufacturing taskforce, said the food and beverage industry’s “heavy lifting” in boosting the national economy had for too long been underplayed.

“This is a break-glass moment for food and beverage manufacturing in Australia. The fundamentals for a thriving industry are strong but we have put up our own barriers and made it increasingly difficult to do business with ourselves,” he said. “Today we’re competing for investment, capability and skills globally.”

Mr Leakey said the manufacturing roadmap could help unlock “future capability, build scale, create jobs and grow the economy … We are at risk of trapping almost one-third of Australia’s manufacturing turnover in the past.”

Australian Food and Grocery Council chief executive Tanya Barden said lifting “our manufacturing capability by using more advanced manufacturing processes” would boost capacity across the sector.

“Australia’s food and beverage manufacturing industry already contributes $113bn and 229,000 jobs to the economy and has the potential to grow significantly. However, the industry is hamstrung by several factors which have resulted in stagnating investment levels,” she said.

“It’s crucial the industry takes a leap ahead in advanced technology to remain competitive, responsive to rapidly changing consumer demands and to be resilient and adaptive in the face of global uncertainties.”

Ms Andrews said there was significant global demand for Australian food and beverage products, and the government was focused on strengthening “our natural advantages in agriculture” and adding “as much value as we can to raw materials through manufacturing”.

“There are opportunities to further build on our international reputation for producing premium, safe and high-quality products. Investing in our food and beverage manufacturers will ensure they remain on the front foot and maximise every opportunity to tap into global markets and create jobs here at home.

“The other great thing about food and beverage manufacturing is its imprint on regional Australia, both in where many of the factories are located and the support for businesses right along the supply chain.”

Taskforce member Kathy Karabatsas, a former Lion Dairy and Drinks managing director, said the industry had an opportunity to “adapt to the changing landscape, encompass the whole supply chain and be ready to identify new opportunities”.

Thomas Foods International chief executive Darren Thomas said Australia’s “world-class food and beverage manufacturing capabilities (were) operating in an increasingly globally competitive arena where the bar continues to be raised”.

Agriculture Minister David Littleproud said providing extra funding support for the food and beverage manufacturing sector would have “significant flow-on effects for Australian farmers”.