Food Industry Australia
Australia's food industry is renowned for its quality products and advanced technology, which together make the nation a reliable long-term supplier to domestic and international markets.
Although predominantly arid, the country has a range of climates and land types which enable a wide variety of food types.
The first food processing industries to appear were the farmhouse and village technologies of milling and baking, brewing, salting, and butter and cheese making. These were brought to Australia in 1788 with the first European settlement. By the 1790s, small quantities of beer, butter and cheese were on offer in the Sydney and Parramatta markets.
As the colony grew so did its demand for food. By 1819 around 1000 settlers were cultivating small plots of land and running small herds of cattle and sheep.
The gold rushes of the 1850s brought around 600 000 migrants to Australia. The increased population immediately stimulated agriculture with farm employment in Victoria tripling in the three years to 1857. The late 1800s saw a period of rapid technological innovation with the arrival of refrigeration, which paved the way for a successful export meat industry, and automation, which revolutionised many processes.
World War II was a big wake-up call for the Australian food industry. Suddenly, faced with new and urgent demand for unfamiliar service rations to precise specifications, there was rapid advancement. Technologies were modernised and new ones developed. Better scientific understanding of old technologies gave rise to new and improved processes, products and product applications.
Today the food industry is a vital component of the Australian economy. Food accounts for 46% of total retailing turnover in Australia. The sector employs almost half a million people throughout Australia in more than 111,000 commercial farms and firms engaged in agricultural food production.
Nearly 90% of the total value of Australian agricultural production comes from food. In 2003-04 the value of Australian farm and fisheries production rose by 16% to A$32.1 billion.
Many new industries were established in the late 1980s and 1990s. These included new crops in the fruit and vegetables industry such as Asian vegetables, nashi pears, lychees, olives and herbs, which were introduced to take advantage of emerging market opportunities.
A range of new aquaculture activities, such as the farming of Atlantic salmon and growing out of wild caught southern bluefin tuna, has been established.
Recently there has been recognition of the food value of Australia's indigenous flora and fauna. Kangaroo and crocodile, for example, are now accepted meat products. The bush foods industry has worked to integrate a wide range of native products into the Australian food industry.
The food processing industry in Australia covers a number of sectors, as detailed in this list from the Department of Foreign Affairs and Trade:
| Sector |
Turnover 2002-03 |
A$millions |
| Bakery products |
3 |
887 |
| Beverage and malt manufacturing |
11 |
479 |
| Dairy products |
8 |
809 |
| Flour mill and cereal food manufacturing |
4 |
094 |
| Fruit and vegetable processing |
4 |
439 |
| Meat and meat products |
11 |
479 |
| Oil and fat manufacturing |
1 |
833 |
| Seafood processing |
1 |
515 |
| Sugar and confectionary manufacturing |
4 |
261 |
| Other food manufacturing |
10 |
275 |
| Total |
65 |
860 |
The processed food and beverage industry is Australia's largest manufacturing industry with a turnover of over A$65.9 billion in 2002-03. The industry comprises around 3,400 firms and employs more than 187,000 people. It is estimated that around half of Australia's processed food and beverage firms and 40% of employees are located in rural and regional areas.
Australia’s 20 largest food and soft drink manufacturers account for almost 50% of total industry turnover. For individual product categories, it is common for the one or two largest suppliers to own or share more than 50% of the market.
The retail end of the market is even more highly concentrated, with more than 70% of sales of some major product lines realised through the two largest food retailers.
Australia has a well-earned reputation for producing high quality, premium export food. This international reputation has supported total food exports averaging 6% growth per year over the past decade to reach A$22.3 billion in 2003-04. This represented around 20% of Australia's total merchandise exports.
Australian food trade is focused mainly on north Asian Pacific Rim countries. APEC countries account for around 70% food exports.
Further information:
Import & export
Australian Quarantine & Inspection Service index page giving access to information on Australian quarantine and inspection issues relating to the import and export of food and biological products. www.daff.gov.au
Food issues
This section of the Department of Health and Ageing website contains information on food. Topics include food policy, food regulation, food safety and surveillance and foodborne diseases. www.health.gov.au
Food Science Australia
Food Science Australia is Australia's leading food and nutrition research organisation. It is a joint venture of CSIRO and the Victorian Government. Its innovative scientific research strengthens the Australian food industry and supports the health and well-being of consumers. www.foodscience.afisc.csiro.au
Food Standards Australia New Zealand (FSANZ)
Food Standards Australia New Zealand is responsible for developing, varying and reviewing standards for food available in Australia and New Zealand and for a range of other functions including co-ordinating national food surveillance and recall systems, conducting research, assessing policies about imported food and developing codes of practice with industry. Formerly Australia New Zealand Food Authority (ANZFA). www.foodstandards.gov.au