The Australian Food and Grocery Council (AFGC) is calling for more compensation for food manufacturers, after the carbon tax was passed in the Lower House earlier this week.
Speaking to the ABC’s AM program this morning, AFGC chief executive Kate Carnell said the council has conducted modeling based on the carbon tax that shows profit for its members will fall by over 4 per cent from mid 2012.
“What this modelling shows is that the average effect on food and grocery manufacturers in Australia is a 4.4 per cent reduction in operating profits before tax for the sector,” Carnell told the ABC
“But there are a couple of sectors that do particularly badly in this space and they’re areas like the dairy product manufacturing which will see an 11.5 per cent reduction in operating profit before tax and the meat sector – meat manufacturing – which is 11.6 per cent.
“So what we’ll see here is quite a significant reduction in operating profits for a lot of companies.”
Carnell said it is too soon to tell if the fall in profits will lead to higher prices at the checkout for shoppers.
Full transcript and audio is available here.
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