Food Industry Report

According to “State of the Industry 2009″, a report by the Australian Food and Grocery Council (AFGC) and KPMG, the food and grocery industry employs approximately 315 000 people and has a turnover of more than $100 billion a year.

The report is the first ever snapshot of the food and grocery industry and shows the importance of the industry to the Australian economy with it being the second largest manufacturing sector. The report shows that there are 38 000 businesses in the industry and accounts for around $49 billion of the country’s international trade. It also shows that the industry is continuing to grow and employ people - it is one of the few manufacturing industry types to be doing so.

“On a turnover basis, the report found Australia’s food and grocery sector is comparable in size to the Australian mining industry - and the sector is more than four times larger than Australia’s automotive industry,” said Ms Kate Carnell, AFGC Chief Executive. “The industry employs more than 3 per cent of all employed people in Australia, paying salaries and wages of about $14 billion a year.”

There are predictions that Australia’s population is expected to reach 35 million by around 2050. This will mean that the food industry will need to grow to meet this increasing demand in Australia, as well as world wide. Considering the environmental pressures that are now a key part of business, and competition at both local and global levels, this will be a challenge.

“There are also some real challenges facing the industry including the increasing cost of energy, availability of water, rising imports and exports becoming more expensive with the strengthening Australian dollar,” Ms Carnell noted. “Having a robust and prosperous food industry provides many opportunities for Australia into the future including increasing job opportunities in rural and regional areas. Australia can play an important role in addressing future world food needs.”

“To protect Australia’s food supply and overcome these challenges, we must ensure the $100 billion food and grocery industry’s long-term growth, increase export earnings and boost competitiveness.”The full report is available to download at www.afgc.org.au.