Victorian Premier Denis Napthine has launched a new multi-million dollar Food to Asia Action Plan to enable the state to capitalise on export opportunities in Asia.
The premier, who announced the plan at the opening of the International Food and Beverage Trade Week, said the Victorian Coalition Government had committed $35.4 million to drive Victoria's long term growth as demand from Asia grows.
"This is about entrenching Victoria's position as Australia's premier food and agriculture state," the premier said.
The Action Plan funding builds on the $61.4 million Growing Food and Fibre program to double food and fibre production by 2030, and the $62.6 million International Engagement Strategy.
"The food sector directly employs about 145,000 Victorians, accounting for one in six jobs in regional and rural Victoria," Napthine said.
"By 2030, the number of consumers in Asia with discretionary spending will increase sixfold to around 3.5 billion people as demand for food increases exponentially.
"We need to capitalise on Victoria's strong track-record in international agricultural production with food and fibre exports increasing to more than $9.4 billion in 2012-13, up five per cent on the previous year."
The Australian Food and Grocery Council (AFGC) welcomed the release of the Action Plan, which it said focused on improved market access, efficient supply chains, support for R&D and innovation, reducing regulatory costs and increased capital investment.
“Food production and processing is one of the great strengths of the Victorian economy. Processed food and grocery products generate over $6 billion in exports from Victoria and the industry directly employs almost 100,000 Victorians, with around half in regional and rural parts of the state,” said AFGC CEO, Gary Dawson.
“Improved market access into high value Asian markets is vital for the future of Australia's food and grocery sector,” he said. “The Action Plan’s focus on reducing tariff and technical barriers to trade, in concert with concluding Free Trade Agreements, will provide benefits that will flow to a broad range of Australian food and grocery manufacturing companies, large and small.”
Dawson also said the Action Plan's commitment to reduce regulatory burdens was particularly welcome.
“Excessive regulation acts as a hand brake on the competitiveness of Australian food and beverage producers and processors. The Victorian Government commitment to regulatory reform is an acknowledgment that the regulation burden directly discourages innovation in food products, increases costs and ultimately impacts on exporters’ ability to compete on a global stage.”
The Victorian Coalition Government had committed $35.4 million to drive food exports to Asia.
