Managing director of supermarket giant Coles, Ian Mcleod told the Global Food Forum in Sydney yesterday that excessive red tape coupled with high labour costs and declining productivity is hindering Australia’s ability to capitalise on the ever increasing global demand for food.
Mcleod said that Australia is well positioned to capitalise on Asia’s rising middle class and the growing trend towards processed foods, however Australia’s labour costs being the sixth-highest in the world, (twice of that of New Zealand according to Mcleod) represents a significant barrier.
“The global food opportunity is huge,'' said Mcleod.
''The resources boom is potentially going to switch into a food boom but are we ready?''
According to Mcleod, the food manufacturing sector’s costs have been continuously increasing over the past decade, and have subsequently seen Australia’s global competitiveness deteriorate.
Mcleod said that Australian manufacturers are struggling to compete with countries like New Zealand who are far more efficient in terms of costs and production.