The local boss of one of the world’s largest supermarket suppliers, Cadbury owner Mondelez, has warned of a ‘cost of manufacturing crisis’ that is equally as painful and dangerous to the Australian economy as the ‘cost of living crisis’.
Mondelez Australia chief executive Darren O’Brien said it had become “undeniably expensive” to manufacture in Australia, and the crisis could see food manufacturers shut down and shift overseas.
Speaking at the Australian Food and Grocery Council conference, Mr O’Brien said manufacturing food in Australia has been hit with soaring input costs from energy to transport, and the cost pain was worsened by overly-complex reporting requirements, especially around climate issues.
Mr O’Brien, who is also chairman of the AFGC which represents the $140bn food manufacturing industry, delivered a chilling warning that once thriving industries like automotive and textiles were now largely or entirely imported and that the food and grocery industry could go the same way, making Australians heavily reliant on imports for food.
“History serves as a stark reminder of what happens when industries fail to adapt. Once-thriving sectors like the automotive and textiles industries are now largely or entirely imported,” he said.
“We cannot afford to let the same fate befall our food and grocery manufacturing sector. It’s imperative that we embrace change, support innovation, and invest in the future of our industry.
To ensure our industry’s future, we must embrace and support it, rather than attack it.”
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