Reform is required to realise Asian Century aspirations, says AFGC

Australia’s food processing sector will need urgent and significant policy reform if it is to achieve the aspirations identified in the ‘Australia in the Asian Century’ white paper, according to the Australian Food and Grocery Council (AFGC).

According to Gary Dawson, CEO of the AFGC, the white paper correctly identifies growth opportunities for Australia’s $110 billion food and grocery manufacturing industry. Dawson said policy reform that encourages innovation, bolsters Australia’s competitiveness and boosts productivity is required to realise the white paper’s aspirations.

“We need the government to act urgently because without a competitive domestic industry these export opportunities will never be realised,” Dawson said. “Excessive regulation is a handbrake on industry’s competitiveness and only the government can release that handbrake.

“Over recent years, the AFGC has stressed that regulatory reform to ease the compliance costs faced by Australia’s food and grocery sector is becoming increasingly urgent as the financial squeeze tightens on many food and grocery processing and manufacturing companies.

“It is very difficult for companies to think of long-term export opportunities when they are struggling to deal with the immediate issue of rising input costs that range from commodities to labour to energy to regulatory compliance.”

Dawson said the government has a role to play in developing policy that enhances industry competitiveness. He also said additional regulations that increase costs could drive production and jobs offshore.

“Innovation is at the heart of the industry’s vision for a competitive future and it maintains a huge potential for growth into Asia. The support for greater food industry innovation in the white paper needs to be progressed to detailed, costed, practical proposals,” Dawson said.

“At the same time, regulation that impedes innovation places Australian industry at an added disadvantage. The AFGC would hope that the aspirations outlined in the white paper translate to urgent action to kickstart the stalled regulatory reform agenda in areas including harmonisation of food standards, removal of duplication, adoption of best regulatory practice and greater alignment with international practice to avoid handing competitor countries an advantage,” Dawson concluded.