The recognition and support for food processing in the Federal Government’s Carbon Pollution Reduction Scheme (CPRS) amendments has been welcomed by Australia’s largest manufacturing sector, the Australian Food and Grocery Council (AFGC) said today.

The Government’s proposed $150 million allocation under the Climate Change Action Fund (CCAF) would provide much-needed support for Australia’s $100 billion food and grocery manufacturing sector, according to the industry body.

AFGC Deputy Chief Executive Dr Geoffrey Annison believes the proposed funding will help industry to reduce emissions, explore energy efficiencies and become more sustainable.

“We welcome this funding commitment from the Government but the proposed measures don’t go far enough to safeguard the global competitiveness of Australia’s food and grocery manufacturing sector, which is a major exporter and employs 315,000 Australians,” Dr Annison said.

While Australia’s food processing industry is expected to benefit from the Government’s proposed Transitional Electricity Cost Assistance Program, the AFGC is concerned about costs increases across the supply chain.

“Industry is doing its best to become more energy efficient. However the CPRS does not remove the global competitiveness issue for trade-exposed Australian-made goods which would still be more expensive on supermarket shelves compared with imported goods that don’t have a carbon charge,” Dr Annison suggested.

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