The food manufacturing industry is pleading with the Abbott government to remove burdens and free up investment in new production, following some disheartening figures released by the Australian Food and Grocery Council.
The AFGC will soon released a detailed report showing that despite making up lost ground against imports, growth in the industry has struggled compared to last year.
The Australian obtained the findings, which including that the industry lost around 170 employers in 2012-13 and 1,000 workers. Export growth outpaced imports, narrowing trade deficit to $2.2 billion.
AFGC chief executive, Gary Dawson, said the industry was "running fast to stand still" but if the government removed some of the burdens on business, it could prosper and take advantage of growing export opportunities in Asia.
Dawson said the industry needs better access to trade markets, regulatory reform and targeted investment incentives to help drive capital upgrades.
After receiving a government grant of $500,000 last week for capital upgrades, vegetable processor Simplot announced its Tasmanian Devonport plant, the viability of which has been in question recently, will remain in operation for at least another three years, to fulfil contracts with Coles and Woolworths.
The company did however state that the plant will need to make significant savings or it will potentially face closure by 2019, and that the processor’s casual workforce will experience significant job cuts.
SPC Ardmona, the nation’s last remaining fruit processor has voiced similar concerns, announcing it may be forced to close if the Abbott government refuses to come through with a $25 million grant promised by the former Labor government.
"The situation is urgent. We had a productive meeting with minister Macfarlane (the new industry minister) but we need an answer fast. We understand this is a new government and we need to show some patience, but the board has been holding off on a decision for some time," Kelly told The Guardian.
The funding was meant to be sourced from a clean technology program, which the Liberal government has since pledged to scrap as it was funded by the carbon tax.
Dawson will also address the National Press Club on Wednesday, and has cautioned against limits on foreign investment in agricultural businesses. "A lack of foreign investment could see more domestic production capability move offshore, reducing Australia's long term food security," he said.
The AFGC's report also found that the industry experienced a 0.3 percent fall in turnover to $111.2 billion in 2011-12 compared to a 4.5 percent decline the previous year.
While the sector posted a trade deficit across all its products – including some non-food grocery items – the results countered fears about the nation's food security. In the food and beverage categories, Australia exported $18.8 billion in produce and imported only $11.4 billion before including the vast bulk exports of wheat and other commodities, the Australian reports.