Tony Zappia (Makin, Australian Labor Party) Share this | Hansard source

The Australian food industry is very important to the Australia economy and to securing Australia's future food needs. The food sector employs around 1.65 million Australians, or one in six jobs in this country. In 2011-12, primary production contributed $42.6 billion to the Australian economy, and food and beverage manufacturing earned about $91.2 billion. The sector generates $30.5 billion in exports, and the fact remains that Australia exports half the food it produces. By 2050, world food consumption is expected to be 75 per cent higher, so the potential for Australia's food production is obvious and presents Australia with significant trade opportunities. Those figures, however, are very much reliant on the production and export of grains and livestock.

A closer analysis of what is happening in Australia's fruit and vegetable production depicts a different scenario. Ninety per cent of Australia's fresh food consumption is locally produced, with fresh food imports still predominantly arising from seasonal factors, natural disasters affecting local production or fresh food which is not produced in Australia.

The situation with processed food is considerably different. According to a 2013 IBISWorld report on fruit and vegetable processing in Australia, Australian food processing is a $6 billion industry. It directly employs about 10,000 people. In 2012-13, processed fruit and vegetable product exports were valued at around $1.4 billion, or 23 per cent of industry revenue. Interestingly, imports for the same year were $1.96 billion. Imports accounted for almost 30 per cent of local consumption and imports have been rising by 1½ per cent per annum over the past five years.

It would appear food processing is cheaper overseas and that Australian major food retailers have been sourcing more processed food from overseas, resulting in some 3,000 jobs having been lost in the last decade. The problem with that is that Australian consumers are becoming increasingly concerned about the production methods and quality of food processed overseas. Not surprisingly, more and more Australians are demanding clear food labelling on packaged food, particular with respect to country of origin information. Australians, however, do want to support Australian food processors and Australian jobs. That was clearly evident recently in my home state of South Australia when iconic Adelaide food processor Spring Gully Pickles hit financial difficulties. When it became clear to the public that the future of Spring Gully Pickles was at risk, public support for the business's products skyrocketed and, rather than downsize or close, the business in fact grew and more people were employed so that production could keep up with the public demand for their products. Just a good example of how public support can make a difference to the future of companies in this country.

What we have also seen in recent years is the emergence of multinational takeovers and the ownership of Australian food industries by global food processors. The problems and risks with that is that multinationals will ultimately consolidate their food-processing operations to the lowest cost countries, as all other manufacturers are doing and that again results in the loss of jobs. That is one risk associated with foreign ownership. Another risk is that multinationals use clever accounting and transfer-pricing schemes to ensure lower profits are made in Australia and most profits are generated in low-tax countries, denying Australia of legitimate tax revenue.

With Australia's clean green image, the food production and processing sector presents Australia with a competitive advantage and immense potential. We can make the most of that potential or we can sit back and watch the opportunity lost. The government's National Food Plan, I believe, sets out a strategy for maximising food production opportunities within Australia. I also believe that the government's response to date with respect to the antidumping legislation that has been brought into the parliament has been very important in trying to stop the dumping of overseas products in this country. Whilst we may need to go further, and that is a matter for the parliament, this government understands the risks that dumping has presented to the food-processing manufacturers in this country and has been responding accordingly. The government's National Food Plan sets out an appropriate strategy which this parliament should support.

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