Federal trade minister Craig Emerson has said that Australian food manufacturers have noticeable comparative advantages that should be harnessed, and foreign investment in the segment should be welcomed.
Emerson, citing “natural and acquired attributes” identified in the Asian Century white paper, states that Australia should play to its strengths, which are never going to be in examples like the mass production if electronics goods or producing anything cheaply.
Arable land and Australia’s reputation for cleanness and greenness in food production are, however, places where it displays advantages over other nations. The production of premium food is a strength.
“That's why the innovation statement identifies food processing as one of the first industries to benefit from the creation of innovation precincts,” wrote Emerson in The Australian today, referring to last week’s industry and innovation statement from the federal government, which included proposed local content laws and innovation precincts.
“The precinct will involve scientists, farmers, manufacturers and service companies working together to custom-make processed food for the massive Asian market, competing on quality and reliability of delivery, not on price,” wrote Emerson.
“Premium Australian wines, cheeses and infant formula are but a few of the candidates for successful manufacturing in the Asian Century.”
Emerson also criticised the federal opposition for what he claims is “a message to Asia that its investment funds are not welcome in Australia.”