Large overseas investors recognise Australia as an important food source for Asia with a reputation for high quality, safe and healthy food. This increasing foreign capital investment is allowing players to increase their scale of operations.
Vertical integration across agricultural segments is causing improved operational efficiency and profitability but is making it difficult for smaller players to compete. There are opportunities to grow through acquisition and to enter new markets with expanded services and capabilities.
Consumers are becoming more health conscious and demand for lean protein products, fresh fruit and vegetable and organic produce is increasing, while soft drinks and confectionaries are decreasing.
In 2015 a major South African food company looked to Australia, and Grant Thornton, to continue to expand its business internationally. Specialising in ready-to eat meals and meal components, packaged fruit and vegetables, bakery items, juices and drinks, and a range of different snack products, the highly competitive Australian market came with a number of challenges for this food and beverage manufacturer.
