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.

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.

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.