Australia has a reputation for quality produce and products, so much so that that our neighbours in Asia will pay a premium for the “Made in Australia” label.
And rather than seeing the homogenisation of products or the dominance of big brands in Australia, we’re seeing a resurgence in artisan, ethically sourced, and innovative products.
There is always activity in this sector – M&A, inter-state and international expansion, as well as innovative funding models to take businesses to the next level. A great example is Endeavour Brewing Co. Launched in 2010, Endeavour Brewing achieved a major milestone in 2018 – becoming the first Australian brewery to offer shares direct to the public rather than through an ASX listing.
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Here is a short introduction to our three recommendations to help boost the Food & Beverage sector:
Improved road, rail and port infrastructure
To ship bananas from Innisfail in Queensland to Melbourne by road, expect to be behind the wheel for approximately 32 hours non-stop. Better access to transport will open up new opportunities for mid-sized business in terms of where they can ship their produce, and the premium they can command for quality and freshness.
More affordable energy
Machinery, production, climate control for livestock, water management and refrigeration all require energy. Turning the power off to avoid peak loads simply isn’t an option.
Incentives for R&D
Recently we’ve seen innovations in the dairy sector, extending the shelf life of milk by up to 300% or nearly two months. This kind of innovation is typically driven by industry in collaboration with government and research bodies. We need to encourage more.