Making our food production industries more globally competitive

The 2008-09 Budget provides a major boost to the Rudd Government's plans for modern, competitive food production industries in Australia, in the face of a growing global food crisis.

Major initiatives to receive funding include a new $35.0 million Regional Food Producers' Innovation and Productivity Program ¨C delivering on a key election commitment.

Minister for Agriculture, Fisheries and Forestry Tony Burke said the program was part of the Government's commitment to encourage the growth of regional food industries and expand the use of new technology.

"Labor promised to assist Australia's regional food producers in becoming more competitive through productivity and innovation improvements," Mr Burke said.

"This is about looking right along the production chain - not just in the paddock - to see where we can achieve the greatest productivity gains through innovation.

"With the growing global food crisis and a shrinking world, we must plan ahead to meet the challenges of the future and make our food industries more competitive.

"In partnership with industry, we will help to develop new technologies, processing or production methods and boost export market development.

"The assistance will include dollar-for-dollar grants to regionally-based food processors and $10.0 million for innovation and productivity in the seafood industry."

Mr Burke said rural and regional businesses were a key topic of discussion at the Australia 2020 summit in Canberra.

"Delegates at the rural discussions spoke passionately about the fact that the bush is not just about agriculture - it's about agri-business," Mr Burke said.

"Vibrant agri-businesses will underpin rural communities and provide attractive career options for the next generation of young people."

Another 2008-09 Federal Budget initiative is the three-year, $5.0 million Promoting Australian Produce program, to help rural and seafood industries promote their produce.

"This program will help to increase demand for local produce and boost the competitiveness of our rural industries in local and international markets," Mr Burke said.

In coming months, the Government will invite proposals from rural and seafood industries for projects that will:

enhance industry marketing and promotional capabilities;
develop new strategies for industry marketing; and
gain consumer insights and strengthen links with domestic and international markets.

The Promoting Australian Produce program will complement existing industry marketing and promotional activities.

The Budget also includes a $7.6 million extension to the Live Animal Trade Program to further improve animal welfare outcomes in countries importing Australian livestock and enhance Australian exports to the Middle East region.

"The Rudd Government is committed to ensuring that Australia maintains world's best-practice in animal welfare in the live export industry," Mr Burke said.

"The livestock trade is a major contributor to the Australian economy, generating about
$1 billion a year in rural economies and supporting around 10,000 jobs.

"At the same time, we recognise that there are unique challenges in this industry which we can best address by working closely with export partners in Asia and the Middle East.

"This includes funding upgrades of livestock facilities to meet international welfare guidelines and education and training in areas such as feedlot management and nutrition."