Australia is globally recognised for its agriculture and has built a reputation as a trusted exporter of commodities to global markets. There is now a significant opportunity to build on those strengths. Australia’s Food & Beverage Accelerator (FaBA) director, Dr Chris Downs, explains how.
Between agricultural production and the consumer, sits what is often called the “missing middle”: the space where Australia’s sovereign manufacturing capabilities transform raw ingredients into high value, differentiated products.
Strengthening this middle layer of manufacturing and innovation is the key to the next phase of resilience and value for the food and beverage sector.
Reducing risk, capturing value
This is not about fixing a weakness. It is about reducing risk and capturing more value onshore, creating new ingredients, products, processes and export pathways, and ensuring Australia remains competitive.
Australia’s universities are central to this. They provide expertise, research and advanced infrastructure to industry.
FABA’s role is to connect that capability more directly and effectively to grow food and beverage manufacturing.
FaBA brings together a network of universities, infrastructure and expertise as a unified platform for engagement with industry nationally. It gives companies a clear pathway to access modern facilities and the right research partners, and to take ideas from concept to commercialisation.
Companies are not navigating institutions individually, they are engaging with a coordinated system that is aligned to industry needs and focused on outcomes.
Hub of the future
Backed by $180 million in investment, FaBA is building the capability needed to strengthen Australia's food manufacturing future.
The UQ Biosustainability Hub, opened recently at the University of Queensland with FaBA support.
Complementing this is the FaBA MakerSpace, where companies can access food-grade equipment and replicate all stages of manufacturing to de-risk their investment in new products. It allows for rapid prototyping, refinement and validation before commercial development. From there, businesses can move into pilot and scale-up.
Through FaBA’s bioreactor capabilities and access to larger facilities such as QUT’s Pioneer BioPilot in Mackay, there is a continuous pathway from lab scale to pilot production.
This is how we strengthen the missing middle: by connecting capability, infrastructure and expertise into a coherent, national system.
How companies engage with that system matters too. FaBA acts as a front door, making it simple for businesses to connect with researchers and facilities, removing barriers and accelerating progress.
Our co-investment model matches industry investment one to one, so businesses of all sizes, from start-up to multinational, can participate.
Companies also retain ownership of their intellectual property, which gives them the certainty and confidence required to invest in new ideas and bring them to market.
We are already seeing results. AACo is exploring new value-added meat opportunities within Australia. Bundaberg Brewed Drinks is partnering to refine flavour profiles and respond to changing consumer preferences.
Eclipse Ingredients is progressing breakthrough technologies, including the commercialisation of human lactoferrin protein. These efforts are strengthened through collaborations with industry clusters such as the Food and Agribusiness Network and FermenTas, ensuring knowledge and opportunity are shared across regions.
Global goals
The opportunity is clear. Global demand is shifting toward premium, functional and sustainable food products, and nations that can innovate and scale manufacturing will be best positioned to capture that value.
The priority is gaining momentum internationally. Canada's Food Security Strategy, released in June 2026, highlights the importance of strengthening domestic manufacturing, noting that improved access to targeted programs and financing will help businesses innovate, scale and reduce reliance on external processing while increasing exports and jobs.
For Australia, already a trusted producer of high-quality raw materials, this presents a clear opportunity to further strengthen our manufacturing credentials.
Australia has the foundations in place to lead. The task now is to align our research excellence with industry ambition and build a food and beverage ecosystem that translates innovation into resilience and economic impact. By strengthening the missing middle, industry, governments and universities can together unlock greater value from what we already do so well.
This article first appeared in the Q2 2026 edition of Food & Drink Business magazine.
