Foods Industry

One business sector often overlooked for jobs and new business opportunities is the foods industry. The food industry ranks high in the nation in terms of employment and works quietly behind the scenes creating new foods and processes to feed the domestic as well as the world population.

As technology advances some segments of the industry are very advanced in applying new technologies – high-speed can and bottle lines, frozen foods, etc. Yet other segments still embrace the old ways and it is in these segments that will offer opportunities for technology businesses to find new customers.

Quality, convenience and good taste still drive the ultimate consumers' buying decisions and the ability of the food companies to be flexible in design and manufacturing of food, in an efficient, low-cost manner, will determine who gains the most consumer dollars.

Consumer expectations are high, but they also want value for money spent and at no sacrifice in quality. However, they continue to drive the boundaries for more and more convenience at the same time – quality, homemade style, pre-prepared, quick-to-serve, fresh-like, and with a long shelf-life requirement.

The following article is courtesy of Department of Foreign Affairs and Trade

Australia's food industry

Australia's food industry encompasses a wide range of products. Although predominantly arid, Australia has a range of climates and land types. These range from northern tropical areas, through high rainfall coastal regions to arid and semi-arid climates, most of which are used for food production. This variety, combined with high quality ingredients and cutting edge technology, makes Australia a reliable long-term supplier to global markets.

The beginnings

Australia's Indigenous people, while primarily hunter-gatherers, had long been modifying their environment to improve access to ready sources of food. Examples include 'firestick farming' to attract grazing animals and the use of fish traps.

The first food processing industries to appear were the farmhouse and village technologies of milling and baking, brewing, salting, and butter and cheese making. These were brought to Australia in 1788 with the first European settlement. By the 1790s, small quantities of beer, butter and cheese were on offer in the Sydney and Parramatta markets.

Development

As the colony grew so did its demand for food.  By 1819 around 1000 settlers were cultivating small plots of land while owning some sheep and cattle.   They soon realised that greater profits could be made from grazing than cultivation.
For decades, the acceptance of the product in English markets and the plentiful supply of raw material led to the canning of meat. But in the mid nineteenth century, Australia's processed food industry was to build on its commercial advantages by extending canning to jams and other products.
The gold rushes of the 1850s brought around 600 000 migrants to Australia. The increased population immediately stimulated agriculture with farm employment in Victoria tripling in the three years to 1857. The late 1800s saw a period of rapid technological innovation with the arrival of refrigeration, which paved the way for a successful export meat industry, and automation, which revolutionised many processes.

The Second World War galvanised the Australian food industry. Suddenly, faced with new and urgent demand for unfamiliar service rations to precise specifications, there was rapid advancement. Technologies were modernised and new ones developed. Better scientific understanding of old technologies gave rise to new and improved processes, products and product applications.
The food industry today

Today the food industry is a vital component of the Australian economy. Food accounts for 46 per cent of total retailing turnover in Australia. The industry makes a significant contribution to the economies of regional areas through employment, business and service opportunities. The sector employs almost half a million people throughout Australia in over 111 000 commercial farms and firms engaged in agricultural food production.

Nearly 90 per cent of the total value of Australian agricultural production comes from food. In 2003-04 the value of Australian farm and fisheries production rose by 16 per cent to A$32.1 billion.
Many new industries were established in the late 1980s and 1990s. For example, new crops in the fruit and vegetables industry such as Asian vegetables, nashi pears, lychees, olives and herbs were introduced to take advantage of emerging market opportunities. A range of new aquaculture activities, such as the farming of Atlantic salmon and growing out of wild caught southern bluefin tuna, has been established.

Recently there has been recognition of the food value of Australia's indigenous flora and fauna. Kangaroo and crocodile, for example, are now accepted meat products. The 'bush foods' industry has worked to integrate a wide range of native products into the Australian food industry.

The food processing industry in Australia covers a number of sectors:

Processed food industry

The processed food and beverage industry is Australia's largest manufacturing industry with a turnover of over A$65.9 billion in 2002-03. The industry comprises around 3 400 firms and employs over 187 000 people. It is estimated that around half of Australia's processed food and beverage firms and 40 per cent of employees are located in rural and regional areas.

Australia’s 20 largest food and softdrink manufacturers account for almost 50 per cent of total industry turnover. For individual product categories, it is common for the one or two largest suppliers to own or share over 50 per cent of the market. The retail end of the market is even more highly concentrated, with over 70 per cent of sales of some major product lines realised through the two largest food retailers.

Food trade

Australia has a worldwide reputation for producing high quality, premium food. Australian food producers are committed to providing the highest international standards of quality management and food safety. This international reputation has supported total food exports averaging six per cent growth per year over the past decade to reach A$22.3 billion in 2003-04. This represented around 20 per cent of Australia's total merchandise exports.

Australian food trade is focused mainly on north Asian Pacific Rim countries. APEC countries account for around 70 per cent of Australia's food exports.

Further information

Department of Agriculture, Fisheries and Forestry (DAFF) - www.daff.gov.au
Foodinfo, DAFF - www.daff.gov.au/foodinfo
National Food Industry Strategy - www.nfis.com.au
Australian Food and Grocery Council - www.afgc.org.au
Food Standards Australia New Zealand - www.foodstandards.gov.au
Australian Quarantine and Inspection Service, DAFF - www.aqis.gov.au