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Exports, jobs fuel growth in food manufacturing, says AFGC

woman reading her shopping list in the supermarket with copy space
The US overtook China as Australia’s top export market. (Source: Bigstock)

Australia’s food and grocery manufacturing industry has posted strong growth, cementing its position as the nation’s largest manufacturing sector and a key source of regional jobs.

According to the Australian Food and Grocery Council’s (AFGC) State of the Industry 2023-24 report, turnover in the sector increased by 5.3 per cent to $173 billion. 

Employment rose by 4.4 per cent, with nearly 300,000 people now working in the industry, more than a third of them in regional Australia. 

Exports were also up 5.2 per cent, with imports down 3.3 per cent. The US overtook China as Australia’s top export market.

AFGC CEO Colm Maguire said the sector holds “enormous potential” and called for strong policy and strategic support.

“With the right policy settings and strategic support, food and grocery manufacturing will continue to boost Australia’s economy – driving regional jobs, underpinning Australia as a proud manufacturing nation, and securing our food and grocery supply in an increasingly complex global environment.” 

Despite the growth, the report highlights key challenges, including an 11 per cent fall in capital investment to $3.8 billion and persistent cost pressures.

As the Albanese Government advances its “Future Made in Australia” agenda, the AFGC says the industry is well placed to lead, outlining seven productivity pillars focused on cutting red tape, building resilient supply chains, and ensuring access to affordable, reliable energy.

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