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Govt needs to focus on food sector: AFGC

The Australian Food and Grocery Council is calling on the federal government to focus on safeguarding more than 312 000 jobs in Australia’s food and grocery sector- the largest in the country.

The $108 billion food and grocery manufacturing sector is suffering, the AFGC warns, and regional and metropolitan workers alike could be out of work unless something is done.

Latest figures show industry employment declined 10 per cent from 2005 to 2010 and AFGC chief executive Kate Carnell said the Future Jobs Forum needs to explore new ways to safeguard industry jobs to ensure the long-term sustainability and future growth of the food and grocery manufacturing and agrifoods sector.

“Australians want a local, value-adding food and grocery manufacturing sector – they also want to be able to buy brands they ‘know and trust’ – these issues must be discussed,” Carnell said.

“Consumers need to be confident about the quality and safety of food and grocery products, underpinned by Australia’s world-class regulatory system – rather than be increasingly reliant on cheaper imports and private label products for our food supply.”

She said some food and grocery manufacturing operations are already moving offshore because of the challenges faced by industry across the supply chain.

In recent months, hundreds of job cuts have been announced due to the pressures on the sector, including 150 jobs at SPC Ardmona by the middle of next year and 146 jobs at Heinz following closure of its Girgarre factory in north-east Victoria.

“Industry’s competitiveness is being heavily impacted by a surge of cheaper imports due to the high Australian dollar.

"The weak retail sector is causing more discounting, affecting company margins – this spells danger for manufacturing, jobs and regional communities,” Carnell said.

“Options the Government must consider include: fast-tracking the National Food Plan, reducing regulation and red-tape, providing a better environment for capital expenditure and innovation and creating a Supermarket Ombudsman to ensure a level playing field in the retail and supermarket industry.”

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