In Vol.21 No.4 of What’s New in Food Technology & Manufacturing magazine (www.foodprocessing.com.au), Chief Editor Janette Woodhouse bemoans the lack of government assistance received by the food manufacturing industry, whilst the automotive manufacturing sector ‘score(s) billions of dollars’.
The State of Play
Employing over 200,000 Australians and exporting $17 billion per annum, food processing remains the largest sub-sector of Australia’s manufacturing base. For this reason, targeted investment decisions remain vital to continuing food production development, yet overall manufacturing capability requires that the most important sectors remain viable.
Automotive Manufacturing = Technology
I think that an important point is made by senior research fellow in the Department of Political Economy at the Sydney University, Phillip Toner…
What we’re potentially looking at is the loss of an important part of Australia’s technological base because of the sheer breadth of technologies that are involved in the production of a motor vehicle: metallurgy such as complex casting of alloys; sophisticated machining centres; electronics and software into engine management and safety systems; robotics used in assembly and painting; chemicals and paints; sophisticated work organisation and logistic systems and of course the trade, technician and engineering skills supported by the car making industry.
Many of the technologies that Toner mentions are also utilised by the food manufacturing industry, with the critical mass provided by auto manufacturing allowing parts and components suppliers to diversify their production to meet the demands of other industries.
Local vehicle producers are obviously not without fault, making medium and large cars that Australia’s motorists no longer seem to want. Ironically, they could be considered ‘victims’ of protection, hiding behind tariffs for decades and getting complacent in the process, although the vast scope of technologies employed cannot be overlooked.
Janette Woodhouse is correct in saying that Australia’s food producers provide fantastic value to this country, offering high levels of employment in various geographic areas. This employment cannot be considered highly technical, and doesn’t match the $100,000 productivity-per-worker that is achieved by the auto manufacturing industry. The one thing that automotive manufacturers do bring to the table is continued investment in R&D ($600 million per annum), which is something that has been lacking in food production.
SPC Ardmona is one of many food manufacturers who are at risk of failing. With successive state and federal governments stating that a big portion of Australia’s future lies with being Asia’s food bowl, how much co-investment will be enough to keep them viable? McCain Foods is another that is finding the going tough.
The car industry is made up of a few major players, who do well from the benefits of ‘co-investment’. There are no comparable players in the food industry, so diverting money from cars to food is not something that is easily achievable. It probably never will be.
Damian Harris
