About 135 delegates at a Shepparton forum on Tuesday, September 3, heard from Australian Food and Grocery Council chief executive officer Tanya Barden who said generational change was resulting in increased demand for sustainability and more transparency of information.
“You’ve got more Millennials and Gen-Z that are more likely to be vegan and they’re more concerned about climate change,” Ms Barden said.
“(This) means an increased demand for more sustainable products.
“Consumers are wanting cleaner labels with simple ingredients; they want to know more about where their products come from, how it’s sourced, whether it’s ethical, whether it’s sustainable and whether they’re healthy.”
Ms Barden also cautioned that recent industry growth figures were offset by smaller business margins, initiated by supply chain disruptions during the COVID-19 pandemic.
“In food, beverage and grocery manufacturing in the 22-23 (financial) year, turnover increased by 11 per cent, and you think on that headline, that's great it's an industry in growth,” she said.
“But the reality is that industry profits fell by seven per cent in that same year.”
Ms Barden said both consumers and manufacturers were “feeling the pinch”, which was affecting profit margins.
She also highlighted the large amount of investment into capital equipment needed with such things as new packaging to meet consumer sustainability demands, and called on governments to adopt policies that support that investment.
“Particularly using the tax system to drive accelerated depreciation to expedite these investments which are really crucial to the future of food and groceries in this country.
“So as an industry I guess to sum up: we have enormous opportunity but the reality is, beyond that strength there is fragility.”
The ‘Future for our food and grocery industry’ forum and dinner was hosted by the Committee for Greater Shepparton.
