Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

On behalf of the Standing Committee on Industry, Science and Resources, I present the committee's report entitled Food for thought: the opportunities and challenges for Australia's food and beverage manufacturing industry, together with the minutes of proceedings.

Report made a parliamentary paper in accordance with standing order 39(e).

by leave—Australian food and beverages are amongst the best in the world. The food and beverage manufacturers use top quality raw products from Australian farms to make world-class goods that are prized both domestically and abroad.

The inquiry complements the House of Representatives Standing Committee on Agriculture's Australian food story: feeding the nation and beyond report.

That report examined how Australia's food security could be strengthened and safeguarded, with a focus on the agricultural pre-farmgate side of food production.

This inquiry looked at the next step, examining the post-farmgate manufacturing side of food production and the opportunities for expanding innovation and adding value.

In response to the evidence we received throughout the inquiry, the committee developed 23 recommendations to support the Australian food and beverage manufacturing sector.

Stakeholders told the committee that the lack of national and consistent direction on food policy was a problem for the industry.

The policies, regulations and plans that support Australia's food system across the country can conflict or contradict each other.

The committee's first recommendation reiterates the Standing Committee on Agriculture's Australian food story: feeding the nation and beyond report's key recommendation—that is, the Australian government develop a comprehensive national food plan.

A national food plan will provide cohesion for food policies and plans across the federal, state and local governments. Increased connections for the Australian food system will strengthen our ability to make progress together on food related issues.

The inquiry found many opportunities for expanding the Australian food and beverage manufacturing sector. These include export opportunities, integrating new technologies, building on Australia's reputation and competitive advantages, and adding value to the raw products to produce high-value goods.

The committee made several recommendations to take advantage of these opportunities, including a food innovation precinct, protection for native flora, the identification of skill shortages in the industry and support for automation technologies.

I'd like to thank all those who contributed to the inquiry, particularly the many businesses and organisations that hosted the committee at various sites across the country.

These experiences provided valuable evidence of the realities facing the sector.

For instance, the committee visited the Health and Food Sciences Precinct at Coopers Plains in Queensland. The precinct hosts 150 scientists from Queensland's Department of Primary Industries, the CSIRO and the University of Queensland through the Queensland Alliance for Agriculture and Food Innovation.

Here, Queensland businesses that design and manufacture food and beverages can use the food pilot plant to develop and test new products that are Safe Food Queensland accredited.

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

It's in Moreton.

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

It's in Moreton, which has been very ably represented by the member for Moreton behind me, a champion bloke.

The food pilot plant is a scaled-down factory built to simulate food and beverage manufacturing practices and allow manufacturing business to experiment and produce trial products under industrial conditions in batches of up to 1,000 litres. It was absolutely fantastic to see scientists and staff at the Health and Food Sciences Precinct working with small- and medium-sized manufacturing businesses, industry associations and other research organisations to develop product prototypes, reformulate products, understand and test the market for food and beverage products and optimise processing protocols, including post-harvest handling, storage conditions, packaging and production of value added products.

The committee also visited Fonterra Oceania's manufacturing facility at Campbellfield in Victoria. Fonterra is a dairy cooperative that collects milk from Australian farmers. The milk is then distributed across eight manufacturing sites across Victoria and Tasmania, where it is turned into great dairy products that generations of Australians have grown up with, including Perfect Italiano, Mainland, Western Star and Bega. Fonterra also sells dairy ingredients to many of the world's leading food companies and operates a dedicated sales channel for the food service industry, providing a full range of dairy products specifically designed for commercial kitchens. During the factory tour, our committee was shown many of the behind-the-scenes activities used to produce these great products, along with the multiple automation technologies incorporated through the production line. Of note was the extremely high level of the food safety and quality standards adhered to by all staff to ensure consumers receive safe and high-quality food. I reflect on how lucky we are here in Australia with our robust food safety and quality systems.

We were also invited to attend a soft opening of the Suntory Oceania facility in late August last year. Suntory Oceania's $400 million carbon-neutral multibeverage manufacturing and distribution facility is the largest single fast moving consumer goods investment in Australia in over a decade. Once fully operational mid this year, the 17-hectare carbon-neutral site will be the manufacturing distribution hub for the company's multibeverage portfolio of over 40 brands. The facility boasts strong sustainability credentials, with a combination of renewable energy sources, including 7,000 solar panels, state-of-the-art heating/cooling technology and on-site waste-management and water-recycling facilities. The site has the capacity to hold over 50,000 pallets of product. With the production floor boasting leading-edge fill speeds, the two canning lines combine to achieve a rate of 180,000 cans per hour, while the glass line's speed is 35,000 bottles per hour. It was pleasing to hear that the construction of the site delivered over 450 construction jobs. Likewise, the opening of the facility created 160 new operational jobs.

I also thank those that attended the committee's public hearings for their critical insight and expert knowledge which helped guide us to form the committee's recommendations for this inquiry. I want to extend my thanks to my committee colleagues, particularly the deputy chair, the Hon. Michelle Landry MP, and her staff, who have been absolutely wonderful right throughout this. We worked extremely closely, and I think it shows in the way that we put a report together that everyone had input in and the way everyone had the ability to do it. We actually had a pretty great time doing this. The rumour mill was that the committee secretariats were pretty jealous of what we were doing, but that was because we had a great crew together and we did work extremely hard.

I also want to thank the member for Cunningham, the member for Hunter, the member for Swan, the member for Calwell, the member for Bowman and the member for O'Connor. We have been a very strong bipartisan committee, producing two important reports during the body of this 47th parliament. I think the work that was done, as I said, was good and friendly spirited, and, again, I thank them for that.

It is always important to acknowledge the people that keep us in line. There were times when I think our secretariat might have felt like they were herding cats trying to keep us on time, and, when we were going to do some of the exciting things—

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

Was that Michelle?

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

Yes, it was mainly Michelle; it wasn't me, of course! I was always on time! I want to thank Committee Secretary Lynley Ducker, Inquiry Secretary Miona Ikeda and researcher Ben Russell, who are sitting up there in the gallery. These guys are an absolute asset to this parliament. The work they did, the professionalism with which they carry themselves and their ability to help us bring everything together in a fantastic, united front were sensational, and it has been very much an honour to have you guys as our secretariat.

I also want to again acknowledge the retirement of Lynley Ducker and thank her for her parliamentary service over many, many years. Whether it was working with the committee or having to sit up the front there during our messy days of question time and the like, she handled herself with absolute brilliance. So, with that, I just want to commend this report to the House and again say this was a wonderful report—we had lots of fun—and the recommendations give opportunity for the next parliament to be able to work closer and look closer into the spirits industry and the alcohol industry, which we know are growing well. Particularly in times of change, we see with some of our friends overseas, it's a great opportunity for us to continue to support, to buy, consume and manufacturer Australian foods and beverages because we have everything we need here to make great product that should be on world shelves everywhere.

Michelle Landry (Capricornia, National Party, Shadow Assistant Minister for Manufacturing) Share this | Link to this | Hansard source

I seek leave to make a statement.

Leave granted.

I rise today to speak on the Industry, Science and Resources Committee's report into food and beverage manufacturing, titled Food For Thought. This report delves into the vital role that food and beverage manufacturing plays in Australia's economy, its connection to our world-class agriculture sector and the opportunities that lie ahead to strengthen and grow the industry. Australia is known for producing some of the highest-quality food and beverages in the world. Our farmers supply top-tier raw materials and our manufacturers turn them into world-class products that are enjoyed both domestically and internationally.

Food and beverage manufacturing is a significant part of the Australian economy. It is the largest manufacturing sector in the country, contributing billions of dollars annually and supporting hundreds of thousands of jobs. This industry adds immense value to our agriculture products, ensuring that Australia is not just a supplier of raw materials but a global leader in high-quality, innovative food production. Strengthening this sector means strengthening our entire economy. The report makes 23 recommendations to take advantage of these opportunities.

One of the major areas of concern raised during the inquiry was the taxation system for alcohol manufacturers, with 40 per cent of submissions coming from this sector. In response, the committee recommends the establishment of Spirits Australia, a dedicated industry body similar to Wine Australia to support the growth and international success of Australian distillers. The spirits sector contributes $15.5 billion to the economy and supports over 100,000 jobs yet it lacks the same level of government support as other beverage industries. Addressing this imbalance will help Australian spirit manufacturers thrive both domestically and internationally.

However, the committee also heard that Australia's excise tax system is placing an unsustainable burden on small distillers. The high rate of excise duty on spirits makes it incredibly difficult for small and emerging businesses to compete, stifling innovation and restricting their ability to grow. Unlike their counterparts in the wine industry, who benefit from a more favourable taxation structure, Australian distillers face some of the highest spirit taxes in the world. The report highlights that reforming this taxation system is crucial to ensure the survival and success of small distilleries, which creates jobs, supports regional economies and showcases Australians' craftsmanship on the global stage.

Another key focus of the report is ensuring regional communities benefit from food and beverage manufacturing. This sector is a significant employer in regional Australia, with nearly half of all jobs in meat, sugar, confectionary and beverage manufacturing located outside of capital cities. Developing strategically placed manufacturing facilities, particularly in northern Australia, could strengthen regional economies, reduce food transport costs and increase food security in remote communities. Such investments would not only create jobs but also support sustainable regional development and improve resilience in our food supply chains.

Labelling is another issue addressed in the report. Submitters raised concerns about inconsistent regulations and frequent changes to labelling requirements, which create unnecessary costs for businesses. The committee recommends supporting digitisation and innovation in labelling, such as the use of QR codes to provide detailed product information while reducing compliance burdens on manufacturers. This approach would ensure that consumers have access to the information they need while allowing businesses to remain agile and competitive in an evolving marketplace.

Finally, the inquiry examined workforce challenges in food and beverage manufacturing. The sector struggles with an ageing workforce, skills shortages and a lack of awareness among young people about career opportunities in the industry. To address this, the committee recommends targeted training programs, better alignment between education and industry needs, and reforms to skilled migration programs to support businesses facing labour shortages. A strong talent pipeline is essential to fostering innovation, ensuring product quality and safety, and driving sustainable growth.

The food and beverage manufacturing industry is an essential part of Australia's identity. It supports farmers, creates jobs, strengthens regional communities and ensures that Australian products remain at the forefront of the global market. This report provides a road map for strengthening Australia's food and beverage manufacturing sector. By implementing these recommendations, we can unlock the industry's full potential, create more high-value products, support regional development and enhance the health and wellbeing of Australians.

Finally, I'd like to thank our committee's chair, the member for McEwen. As he previously said, it was a really great committee. We enjoyed it as well as doing the work. I'd like to thank our fellow committee members from both sides of politics. We had a really great team, I must say. I'd also like to thank our wonderful secretariat for their professionalism and keeping the team on track during our inquiry.