Investment in Local Food Manufacturing Welcome
The Australian Food and Grocery Council (AFCG) today welcomed the announcement of GrainCorp’s $60 million investment in 13 grain sites across eastern Australia.
AFGC CEO Mr Gary Dawson said the investment was good for farmers and the entire supply chain.
“Studies have repeatedly shown that Australia’s agri-food transport infrastructure is not internationally competitive – reducing returns to all of the participants in the supply chain. Investments such as these have the opportunity to share efficiencies across growers and processors, and make Australia’s agri-food exports more globally competitive” said Mr Dawson.
“The investment will be a significant boost to locally produced food and food ingredients which is vital if Australia is to take advantage of the opportunities in feeding Asia’s rapidly growing middle-class.”
Mr Dawson also welcomed the Prime Minister’s announcement of $100 million to improve roads critical to the Australian beef industry. The new $100 million Northern Australia Beef Roads Fund will make targeted upgrades to key roads necessary for transporting cattle.
“‘With up to 35 per cent of the market price of livestock comprised of transport costs, these government investments have the potential to significantly improve cattle producer’s returns.”
“These types of investments move Australia toward globally competitive supply chains. Most importantly, it moves us away from destructive arguments about ‘stealing’ profits through the supply chain and allows us to focus on meeting consumer demands.”
“In a tight budgetary environment, the Government’s announcement on beef roads highlights the opportunity for small, evidence-based investments to unlock the potential of the Australian agri-food sector. The Australian Food and Grocery Council strongly supports work by CSIRO and others to map agri-food supply chains and develop robust analyses of proposed investments,” said Mr Dawson.
Food and grocery is the largest manufacturing sector in Australia, directly employing almost 300,000 people and recording annual turnover of $114 billion.
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More information: James Mathews – 0407 416 002.