The federal government has agreed or agreed in principle to 15 of the 23 recommendations from the Food for Thought inquiry into food and beverage manufacturing, with its long-awaited response leaning heavily on existing programs including the National Reconstruction Fund, Industry Growth Program, and Feeding Australia strategy rather than committing new funding.
The response to the House of Representatives Standing Committee on Industry, Innovation and Science report, Food for Thought: The opportunities and challenges for Australia’s food and beverage manufacturing industry, was released in March, 13 months after the committee tabled its report in February 2025.
The government noted the remaining eight recommendations, saying it was “already pursuing initiatives that align with their intent”. Among them were some of the report’s more concrete asks: activation of the North Melbourne food innovation precinct, continued funding for End Food Waste Australia, a domestic organic certification scheme, and the establishment of an industry-funded Spirits Australia body.
Feeding Australia to carry National Food Plan
The committee’s first recommendation, that the government develop a National Food Plan with clear objectives, defined outcomes, and measurable targets, was agreed to, but will be delivered through Feeding Australia, the national food security strategy already in development.
The government has committed $3.5 million over two years from 1 July 2025 to develop the strategy, citing pressures from climate change, biosecurity threats, geopolitical instability, and supply chain vulnerabilities. It is being developed through a co-design process led by the Department of Agriculture, Fisheries and Forestry, supported by a National Food Council of industry and community experts.
The response said Feeding Australia would build on the recommendations of the Standing Committee on Agriculture’s Australian Food Story: Feeding the Nation and Beyond report, which made the original call for a comprehensive national food plan. The Food for Thought inquiry was designed to complement that report, covering the post-farm gate manufacturing side of the food system.
Value-adding and technology
On value-adding, the government pointed to the $15 billion National Reconstruction Fund, which counts value-add in agriculture, forestry and fisheries among its seven priority areas. The National Reconstruction Fund Corporation has a target funding level of $500 million for the area, alongside up to $1 billion for critical technologies including artificial intelligence and autonomous systems.
The government agreed to the recommendation on supporting AI and automation uptake, anchoring its response in the National AI Plan released in December 2025. It cited the AI Safety Institute, the National AI Centre, four AI Adopt Centres providing training and roadmaps for SMEs, a new Cooperative Research Centres AI Accelerator funding round, and the National Robotics Strategy.
CSIRO’s Food Innovation Centre in Werribee and the joint Queensland government food pilot plant in Brisbane were cited as giving industry direct access to research facilities and technologies including AI and advanced automation.
Novel foods a bright spot
The response to the novel foods recommendation contained some of the most substantive detail. In June 2025, Australia became one of the first jurisdictions after the US and Singapore to approve cell-cultured food for sale and consumption, with Food Standards Australia New Zealand (FSANZ) developing a new risk-based regulatory framework including labelling requirements.
FSANZ is investigating shortening assessment and approval pathways for novel foods by incorporating safety assessments already undertaken by international agencies, as currently occurs for genetically modified foods. The response said this “could provide a competitive edge for Australian businesses seeking to invest in the novel food sector”.
The government also confirmed the $17.14 million pilot food manufacturing innovation hub on the NSW Central Coast, developed with Central Coast Industry Connect, is expected to be operational by early 2026, with construction having commenced in April 2025. It officially opened in July 2026.
For Indigenous food businesses, FSANZ’s Advisory Committee on Novel Foods will accept elder statements in lieu of detailed scientific or published evidence when determining whether a native food has a significant history of traditional use.
North Melbourne precinct not funded
The committee’s recommendation to fund activation of the North Melbourne food innovation precinct was noted rather than agreed, with the government instead listing its existing support for hubs and precincts: the Central Coast hub, $3 million through the Food and Agribusiness Growth Centre’s Cluster Program across eight clusters, and the $50 million Food and Beverage Accelerator (FaBA) at the University of Queensland.
Decisions on future innovation hubs and precincts will be considered in line with the Strategic Examination of Research and Development, with the government currently considering the expert panel’s final report delivered in December 2025.
Alcohol sector left waiting
The alcohol industry, which accounted for around 40 per cent of submissions to the inquiry, largely centred on excise reform, received little. The recommendation for a House Select Committee inquiry into the alcohol sector was noted, with the government saying the establishment of select committees “is a matter for the Parliament”.
The recommendation to establish Spirits Australia, an industry-funded statutory body modelled on Wine Australia, was also noted, with the government saying the issue could be considered as part of any broader inquiry into the alcohol sector.
Food waste funding cliff
The government noted the recommendation to continue funding End Food Waste Australia, confirming the Cooperative Research Centre program guidelines do not allow funding beyond the initial $30 million grant term ending in 2028, and that all CRCs are required to undertake transition planning.
The response detailed the organisation’s funding history, including the $4 million grant to Stop Food Waste Australia from 2020-24, which was expected to transition to a self-funded model, and the $10 million grant in 2023 for The Great Unwaste consumer campaign.
The recommendation on circular economy incentives for manufacturers was agreed in principle, citing the 2024 National Circular Economy Framework, the Australian Food Pact, and sector action plans covering bread and bakery, dairy, and the food cold chain.
Packaging, labelling and freight
On packaging, the government noted the recommendation, saying it is working with jurisdictions on options to reform packaging regulation, which may include mandatory design requirements, minimum recycled content, and removing harmful chemicals. It highlighted the $8.5 million National Circular Economy Centre in Bega. Harmonisation of container deposit schemes was agreed in principle, with state and territory governments already working together through the Environment Ministers’ Meeting.
FSANZ is exploring a common commencement date for future labelling changes, responding to the recommendation on coordinated changeover timelines. The government agreed in principle to supporting digital labelling innovation such as QR codes, noting more than $127 million committed to agricultural traceability since 2018.
The government committed to a review of the Tasmanian Freight Equalisation Scheme in 2025-26, and said work to define and model the national freight and supply chain network, including capacity, bottlenecks and modal share on key routes, is slated for delivery in 2026.
Decarbonisation funding cited
On the Net Zero Plan recommendation, agreed in principle, the government pointed to existing project funding: $7.38 million from ARENA for McCain to reduce gas consumption through electrification, $3.68 million for EnelX for a commercial refrigeration flexible demand project, and up to $44.46 million from the Powering the Regions Fund Safeguard Transformation Stream for Shoalhaven Starches energy efficiency upgrades.
The Industry Sector Plan, one of six sectoral decarbonisation plans under the Net Zero Plan, will guide the decarbonisation trajectory for food and beverage manufacturers.
