The Australian Food and Grocery Council’s (AFGC) annual industry snapshot State of the Industry 2015 shows Australia’s food and beverage exports have surged 28 per cent in 2014-15.
The State of the Industry 2015 report, compiled by EY, reveals strong export growth and a lift in overall industry turnover and employment in the food and beverage manufacturing sector.
An extra 3183 jobs were created last year to bring direct employment in the industry to 322,000, with 41 per cent of those in rural and regional Australia.
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, according to the AFGC.
Along with Australia’s reputation for safe, high quality food this is driving export growth, it says.
AFGC CEO Mr Gary Dawson said: “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 per cent or almost $6 billion to $26 billion and the trade surplus almost doubled to $10 billion.
“As the national economy transitions away from mining-led growth, the food and grocery sector is one of the key growth sectors for the future. Value-adding to Australia’s high quality farm produce generates jobs and growth in Australia.”
A major driver of the strong export growth was meat exports, particularly to the USA, according to Dawson, although strong growth was recorded across a wide range of food and beverage categories including beef, dairy, biscuits and confectionery.
He said 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.
“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,” Dawson said.
The State of the Industry 2015 report also shows:
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Industry turnover $118.8 bn, up 0.9% in real terms; 2013-14 data
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Direct employment 322,900, up 3,183 or 1%; 2014-15 data
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Industry made up of 26,551 businesses; 2014-15 data
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Capital Investment of $3 bn, down 9%; 2013-14 data
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Total international trade $61.7 bn (up 12%); 2014-15 data
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Labour productivity growth of 2.4%; 2013-14 data
