Manufacturing in Australia is recognised as struggling. Food businesses make up the largest part of this sector and are having a very hard time.
Imported product is well known as being cheaper than Australian made goods due to reduced labour and material costs. The Australian Food and Grocery Council (AFGC) believes that this difference may be as much as 25 percent less.
With the economic situation that we have all been through, and most likely will continue to over the next 12 months, price is definitely a determining factor in the purchase decision. Although environmental issues are starting to have an impact, it is still price that is king.
The sales of Australian made goods are suffering as a result. A strong Australian dollar is also having a poor effect.
The competitiveness and profitability of food businesses across the country are being strongly affected. With higher process for water, electricity and raw materials, as well as increased labour costs, food businesses are having major trouble. There is only so much in terms of costs that can be reduced while maintaining quality, food safety and people safety.
The two large supermarket chains are now selling more of their own branded products, and due to costs savings, many of these are being made overseas. This is reduces shelf space available for the Australian made brands. This is also reducing the sales of Australian made food products.
In December, the AFGC launched a campaign to encourage Australians to buy product made here. Australians are well known as being strong supporters of Australian made product and now is definitely the time to step up.
AFGC Chief Executive Kate Carnell said “To encourage investment in Australia, government needs to provide tax incentives to enable busine