The Australian government recently announced that they will allocate $33 million to encourage the food and beverage manufacturers under the modern manufacturing initiative (MMI). The grants are further broken up across seven different companies. The funding ranges from $1.4 million to $9 million. However, such amounts will be used to help fuel manufacturing capabilities, establish research & development capacities, build new facilities, and enhance the existing ones.
The modern manufacturing initiative is effectively working to position Australia as a world-leading manufacturer of goods. It is a government strategy to scale up the manufacturing in Australia and make them more resilient and competitive. It is aimed at creating jobs for present and future generations. It also helps in achieving the vision of the government to help Australia recognize a sustainable and high-quality manufacturing nation globally. Around $1.5 billion is allocated for the project that is likely to help manufacturers from a diverse range of sectors to commercialize, collaborate, and scale up their manufacturing capacities and associated activities.
The Australian Food and Grocery Council (AFGC) has happily welcomed the news stating that the grants will definitely bring innovation, enthusiasm, export opportunities, and employment for the businesses dealing in the food manufacturing sector. The council represents the grocery, drink, and food manufacturing industry in Australia.
Furthermore, the council also highlighted that the food and beverage sector has emerged as Australia’s largest manufacturing sector. This sector is held responsible for the annual turnover of around $132 billion and offers around 2,70,000 employment.
Tanya Barden, the CEO of SFGC, said that they congratulate the government on successfully identifying the food and beverage sector as an important sector, one of the six in the modern manufacturing strategy. However, it is also vital to understand the critical role of grocery manufacturing. The sector is currently not covered under the modern manufacturing strategy as an essential capability for sovereign, secure, and safe food. In addition, she said they would be welcoming the lucrative opportunities to work with the government for the growth of the sector in the future.
Under the modern manufacturing strategy, the food and beverage sector is identified as the fourth field to allocate funding after different sectors like medical products, critical mineral processing, space, resource, and technology. The other two streams – defense and recycling will be revealed soon.