The Australian Food and Grocery Council (AFGC) is asking for the Federal Government to upsurge investment tax breaks for Australian food manufacturers.
Australian Food News reported that the request was done in spite of international trade, employment and productivity growth within the food industry. As a matter of fact, CEO Gary Dawson said in the newly-released 2015 State of the Industry Report of the AFGC capital that investment was an area of concern.
"One area of weakness exposed in the State of the Industry 2015 report is capital investment, which is falling at a time when a lift in investment is vital for the Australian food and grocery sector to scale up and meet the opportunities of the future," Gary said.
"Future growth to fully capitalise on improved market access and growing demand from middle class consumers in the emerging economies of Asia and the Middle East will require a step change in investment in the food and grocery sector," he added.
The shrinkage in capital investment contrasts in contrast to the surge in industry employment, international trade and productivity. In point of fact, direct employment for 2014-2015 sits at 322, 900 which is up one percent on the last period. Total export trade for 2014-2015, on the other hand, was $61.7 billion, up 12 percent, while labor productivity for 2013/2014 grew 2.4 percent.
"Food and grocery processing makes up almost one-third of Australia's manufacturing sector and it is encouraging to see growth in both industry turnover and jobs," Gary said. "An extra 3,183 jobs were created last year to bring direct employment in the industry to 322,000, with 41% of those in rural and regional Australia."
"Growth prospects for the future are strong, reflected in surging food exports in recent years. In 2014-15 processed food and beverage exports were up 28% or almost $6 billion to $26 billion and the trade surplus almost doubled to $10 billion," he continued. "The falling Australian dollar and improved market access flowing from trade agreements are improving the competitiveness of Australian food and beverage exports in key markets, and along with Australia's reputation for safe, high quality food this is driving export growth."
