Australia’s food and grocery sector is under intense pressure from a range of forces including the competitive nature of the supermarket retail sector, subdued confidence in the broader economic environment, Australian currency fluctuations; and a comparatively higher cost of doing business in Australia than other countries.
The AFGC aims to understand and communicate the drivers behind the FMCG industry’s financial challenges, trends and business issues in an ever-changing economic landscape. Through partnerships with AFGC Associate Members and other key stakeholders, the AFGC will produce research and provide expertise aimed support members in their efforts to ensure continued fiscal success.
State of the Industry Report
The AFGC State of the Industry report, which is the tenth in series, consists of extensive set of historical and updated data that collectively describe the food and beverage, grocery manufacturing and fresh produce sector. The report highlights the important contribution the sector makes to the Australian economy.
Food and grocery manufacturing in the regions
Northern Victoria and Western Sydney are regions with a strong food and grocery manufacturing base. In 2018 the AFGC released reports on the performance of the food and grocery industry in these two areas, highlighting the important contribution the sector makes to these communities in which they operate.
Western Sydney highlights:
- Wages – Wages and salaries pump $1.9 billion into the Western Sydney economy annually, worth an average $80,000 for every full-time and part-time worker.
- Jobs – Western Sydney food and grocery manufacturing businesses employ 24,391 workers, making the sector the 11th largest jobs provider in Western Sydney.
- Economics – The sector contributes $17.2 billion in annual output and more than $2.5 billion in international exports.
Read the report here – Food and Grocery Manufacturing Report 2018 - Western Sydney (pdf - 2 MB)
Northern Victoria highlights:
- Wages – Wages and salaries pump $1.4 billion into the Northern Victorian economy annually, worth an average $63,200 for every full-time and part-time worker.
- Jobs – Northern Victorian food and grocery manufacturing businesses employ 21,500 workers. It is the fourth largest jobs provider in northern Victoria, after Health Care and Social Assistance, Retail Trade, and Education and Training.
- Exports – Food and grocery manufacturing is the number one export industry in Bendigo, Indi, Mallee and Murray, outpacing other sectors such as Mining, Forestry, Financial Services, Construction and the Public Service.
- Economics – The sector contributes $12 billion in annual output and $2.1 billion in exports.
AFGC Competitiveness and Sustainable Growth
AFGC partnered with KPMG to deliver a fact based analysis of the financial performance of the Australian food and grocery industry. Using a combination of financial modelling, interviews, and surveys with industry leaders, the 2013 and 2014 reports clearly indicate that the food and grocery manufacturing industry is facing continued pressure to remain competitive and grow.
Samantha Blake, Director, Industry Affairs