AFGC: annual figures show resilience in tough era, though “strategic intervention” needed

The Australian Food and Grocery Council has released its latest State of the Industry report, which it says highlights the industry’s resilience in the face of rising costs, growing 11.6 per cent by value in 2022/23 though seeing a 7 per cent decrease in operating profit.

Among highlights in the report: 

– The sector’s total turnover reached $163 billion over the period;

– Employment rose 4.1 per cent to 281,269; 

– Capital investment rose 24.5 per cent to $4.2 billion (“largely directed towards plant and equipment upgrades, particularly in automation to counter labour shortages and enhance efficiency”); and 

– Persistent cost pressures “from commodities, energy, and shipping rising faster than wholesale prices” saw operating profits down by $7.2 billion.

AFGC CEO Tanya Barden said in a statement on Tuesday: “Our industry is a cornerstone of the Australian economy, providing essential goods and employment for over 280,000 Australians. 

“Recent and ongoing global supply chain disruptions have made our industry even more critical from a national resilience perspective.”

The AFGC also used the annual report’s release to push the federal government to include the sector in its Future Made in Australia policies, urging unspecified  tax incentives to make it “globally competitive, contributing to Australia’s economic prosperity, as well as net zero transition.”

In dollar terms, the $22.7 billion FMIA package announced in the May federal budget is focussed on clean energy and value-adding to critical minerals.

According to the AFGC’s release: “The State of the Industry results highlight that without strategic intervention, there is a risk of Australian-made products being produced elsewhere in markets that are increasingly offering significant investment attraction incentives.”

The report can be accessed at this link.

Picture: credit AFGC

Further reading

Future Made in Australia will boost sustainable growth and create jobs as far as it goes, but it doesn’t go far enough

Budget has $22.7 billion for a Future Made in Australia over 10 years

Towards 3% R&D – A future made feeding Australia