The Australian Food and Grocery Council (AFGC) gave food brand Kraft and the Victorian government a big pat on the back last week following the official opening of Stage One of Kraft Foods’ Asia Pacific Centre of Excellence in Ringwood, Melbourne.
AFGC CEO, Gary Dawson, said the centre provides a model for food manufacturing innovation that will enhance industry competitiveness and bolster manufacturers’ capacity to take advantage of export opportunities, particularly in Asia.
“Innovation is of critical importance to Australia’s $110 billion food and grocery manufacturing industry. This important investment by one of the most significant global food manufacturing companies underlines Australia’s potential to become a major manufacturing hub for the Asian Century,” said Dawson.
He said Kraft wants to use the centre to help in the development of new, innovative products and processes for both Australian and Asian markets.
“It’s ambition is to enhance collaboration between the food industry, research agencies and both large and small companies in the food manufacturing sector, unlocking the innovative capacity of Australia’s advanced food manufacturing sector.
Dawson said the centre is a perfect example of the type of food industry innovation hub recommended by the Prime Minister’s Manufacturing Taskforce, but said more innovation is required.
“In 2009-10 industry spent $466.7 million which was consistent with a three year trend of R&D growth. Governments have key roles to play in setting policies that enhance industry competitiveness by encouraging innovation, R&D and business operations.
“Innovation is at the heart of the industry's vision for a competitive future and it maintains a huge potential for growth into Asia. Governments can back the innovative capacity of Australian food and grocery manufacturers by easing the regulatory burden and through R&D tax incentives and accelerated capital depreciation to maintain and enhance the industry’s competitiveness,” he said.