Last Australian-owned cannery enters voluntary administration

The last wholly Australian-owned cannery has reportedly entered voluntary administration. According to AUSVEG, Windsor Farm in Cowra has struggled with the high dollar, increasing costs of AQIS export licences and “the supermarket duopoly”.

“The loss of Windsor Farm is another crushing blow to the already struggling food processing sector that is trying to stand up under the enormous pressure placed on it from imported foods and the retail sector,” said AUSVEG CEO Richard Mulcahy.

“This is the second agribusiness to close in as many weeks, after the liquidation of Basacar Produce in Bundaberg last week, and a string of others over the past 12 months. The Labor government needs to stop its rhetoric about Food Plans, Asian Centuries and voluntary retail codes and implement programs that ensure the continuity of Australian jobs and the food manufacturing sector.”

According to AUSVEG, “Unsupportive retail environments with no long-term goals and short-term contracts on generic home brand goods haven’t allowed the company to reinvest in itself and innovate.” The company was reportedly  pressured to lower prices to compete with international companies that could manufacture more cheaply.

“There is a litany of circumstances that prevent our food manufacturing sector from reaching its potential and keeping Australian jobs here; and unless government policies are able to address a lack of retail competition domestically, we will continue to see this scenario unfold in regional Australia,” said Mulcahy.

“Not every finger can be pointed at the supermarket duopoly but there needs to be proper competition in the retail space if food manufacturers and producers are expected to survive. These can be achieved through programs like a supermarket ombudsman such as that found in the United Kingdom, and government should listen to these calls from industry.”