Many food suppliers are seriously considering their export options while others are investing in value-added 'fresh' products in reponse to trading pressures.
A UBS/ Australian Food & Grocery Council (AFGC) survey has revealed difficult domestic trading conditions are forcing suppliers to rely less on price increases and trade spend, and more on investment in product development.
“Investment in new product development is the highest priority to drive growth,” AFGC CEO Gary Dawson said.
“In addition, suppliers see export opportunities as a growth driver, with 77 per cent of those surveyed already exporting, and an additional 10 per cent considering export options.
“The UBS detailed analysis also demonstrates a greater profitability for suppliers who provide more value-added 'fresh' products, responding to consumer demand for healthy products.”
