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Rising inflation prompts calls to back food manufacturers

supermarket cart
The sector employs more than 301,000 people

Australia’s rising inflation rate has prompted calls for support from representatives of the country’s food manufacturing sector.

The Australian Food and Grocery Council (AFGC) said data showing September’s inflation rate at 4.3 per cent will directly affect households across the country.

“Cost-of-living pressure remains a major concern for Australian households, and manufacturers understand how important affordability is to families,” said AFGC CEO Colm Maguire.

“Consumers are part of the same supply chain as retailers, farmers, transporters and manufacturers. We cannot separate the price Australians pay at the checkout from the cost of making and moving those products.”

The AFGC said that the country’s food and grocery manufacturing sector recorded $182.6 billion in turnover from 2024 to 2025, while employing more than 301,000 and investing $4.5 billion.

“Food and grocery manufacturers continue to face significant pressure from energy, freight, packaging, ingredients and regulatory costs,” Maguire added. “When costs rise across the supply chain, those pressures cannot simply be absorbed indefinitely by one party alone.”

He argued that reducing manufacturers’ costs would help lower inflation.

“Reducing the cost of doing business is part of reducing the cost of living. We need policies that make Australia an attractive place to invest, improve productivity and keep making food and grocery products,” he said.

“A strong domestic manufacturing sector matters for jobs, investment and Australia’s long-term food and grocery security.”

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