Food and beverage industry set for boost in Budget

The food and beverage industry is set to receive a boost as part of the government’s Budget plan to secure a “sovereign capability” in Australian manufacturing across six priority areas:

• Resources technology and critical minerals processing
• Food and beverage
• Medical products
• Recycling and clean energy
• Defence
• Space 

Prime Minister Scott Morrison unveiled the $1.5 billion plan five days out from the Federal Budget, which sets out to lure big investors.

“We make things in Australia. We do it well. We need to keep making things in Australia. And with this strategy, we will,” the Prime Minister said.

Industry Minister Karen Andrews identified food and beverage as a critical industry for job growth as Australia grapples with the pandemic-induced recession.

“About 25% of our manufacturing here in Australia is food-related, so we have some clear strengths there,” Andrews said in a radio interview with Sky News.

The plan includes a $1.3 billion co-investment fund for large projects in the priority sectors. An additional $107 million will go towards supply chain management, which has been severely affected during the pandemic.

The government will also top up a pre-existing manufacturing modernisation fund by $52.8 million, allowing small to medium-sized businesses to take out grants.

The Australian Food and Grocery Council (AFGC) has welcomed the news stating the announcement confirmed the importance of growing a strong, resilient and competitive food and beverage manufacturing sector in Australia.

AFGC Chief Executive Tanya Barden said that it will be a huge boost to the sector’s confidence, which directly employs 247,000 Aussies and has room to grow.

“We are keen to create a roadmap for the future of the sector, working with the government to ensure that investment hits where it is needed and roadblocks are removed,” Barden said.

The AFGC said the move not only ensures that the supermarket shelves are stocked but creates jobs and significantly contributes to local and national economies.

However, Labor denounced the plan shortly after the announcement with Shadow Industry Minister Brendan O’Connor commenting: “They’ve spent seven years attacking and undermining Australian manufacturing, and now they want Australians to believe they support manufacturing — what a waste of years of economic growth and taxpayers’ money.”

O’Connor also Tweeted that while $1.5 billion will be spent on manufacturing, the government will cut $1.8 billion from research and development.

The Budget, which has been delayed due to the coronavirus pandemic, will be handed down to parliament on 6 October.

Image credit: ©stock.adobe.com/au/Laurentiu Iordache