AFGC and Federal Government align: Inventory management improvements to weather the storm

Recent announcements from key regulators in the Australian food processing sector reinforce a growing consensus that long-term competitiveness will depend on operational efficiency, not just production expansion.

The importance of automation, digital capability and productivity improvement has been echoed in two major 2026 reports.

The Federal Government’s response to the Food for Thought report confirms AI and automation are now central to the future of food manufacturing. Through the National AI Plan, the National Reconstruction Fund and support from CSIRO, SMEs are being encouraged to adopt smarter systems that reduce waste and lift productivity.

At the same time, the Australian Food and Grocery Council (AFGC) Towards 2030 report warns the sector must significantly lift productivity investment to remain globally competitive, as it faces ongoing pressures from labour shortages, energy transition costs, regulatory change and inflation.

Together, the two reports point to a shared conclusion that Australian food manufacturers must modernise operations to protect margins and enable growth.

“Growth will come from productivity, not price increases”

Simon Jupe, APAC Managing Director of inventory software firm Fishbowl, says the policy direction aligns closely with what is happening on the ground across the food manufacturing sector.

“I was pleased to see the AFGC’s encouragement for investment in modernising production facilities and adopting advanced technologies. This is essential if businesses want to innovate, meet changing consumer demand and expand capacity,” Simon said.

“Across the sector, we’re seeing the same message repeated, that growth will come from productivity, not price increases. The businesses that invest in operational capability now will be the ones that remain competitive through this cycle.”

“Immediate improvements”: Where to begin

Simon, however, says many manufacturers are unclear on where to begin.

“It can be difficult to know how to apply this practically,” he said. “The biggest gains are often not found in large-scale machinery upgrades first, but in fixing what is happening inside the warehouse.”

He says common inefficiencies include over-ordering, stock discrepancies, poor visibility and reactive purchasing decisions.

“In our work with Australian food processors, we consistently see margin leakage caused by poor inventory control. Before investing in expansion, businesses need better control of what they already have. When those issues are addressed, many unlock immediate improvements in cash flow and efficiency without increasing production.”

Inventory management becoming frontline infrastructure

Simon says many food processors still rely on systems that were never designed for manufacturing complexity.

“As businesses grow, spreadsheets and basic accounting tools become blind spots,” he said. “They can’t provide real-time visibility across raw materials, batch tracking, production scheduling or purchasing. That creates waste, delays and unnecessary cost.”

Fishbowl’s inventory management platform is designed to address these gaps through real-time stock visibility, barcode scanning, automated reordering, traceability and forecasting tools that connect purchasing directly to production.

“The government is rightly talking about AI, robotics and automation, but these technologies only deliver value when the operational data underneath them is accurate,” Simon said.

“Inventory management is often the first and fastest return on investment because it immediately improves cash flow, compliance and production efficiency.”

Adelia Fine Foods shows how better inventory control drives scalable growth

The experience of Adelia Fine Foods & Bellarine Brownie Company, a regional Victorian food manufacturer, illustrates how operational systems underpin growth.

The business has expanded from a small handmade producer into a 20+ staff operation supplying major retailers including IGA, independent grocers and cafés nationwide.

Founder Amelia Trethowan says scaling required more than demand, it required structure. After implementing Fishbowl, the business gained full traceability from ingredient ordering through to dispatch, supporting HACCP compliance and strengthening recall capability.

“It’s real data and not subjective, and we can see exactly what we’ve produced and what we need,” Amelia said. “The system also helps us predict ingredient needs, manage resources, and plan labour. The staff no longer have to rely on one person to tell them what to make. It gives them a lot of independence. They can discover when stock levels are low. They’re more in control of what their day-to-day looks like.”

The result has been clearer decision-making, improved efficiency and a scalable foundation for continued growth in a competitive sector.

Smarter systems before bigger factories

For Australian food processors in 2026, the direction from both policymakers and industry leaders is increasingly insisting that resilience will come from operational discipline.

“We know that businesses which strengthen inventory systems now will be better positioned to adopt automation later, scale more efficiently and protect profitability,” said Simon. “In short, before building bigger factories, manufacturers may first need to build smarter ones.”

Book a Demo today and find out how Fishbowl can streamline operational efficiencies and scale operations for growth in your business.