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NEWS HUGE GROWTH FOR AUSSIE PLANT-BASED MEAT Consumer demand for plant-based meat products in Australia grew “exponentially” in FY20, according to a new report by Food Frontier, Australia and New Zealand's independent think tank and expert adviser on alternative proteins (plant- based meat and cellular agriculture). The report reveals that retail sales of plant-based products “surged” 46 per cent in the year to June 2020. The number of new jobs increased by 106 per cent in the sector and manufacturing revenues increased from $35 million to nearly $70 million. Furthermore, the report reveals that national retailers doubled the number of plant-based meat products on Australian grocery shelves in FY20 to more than 200. This expansion of plant-based meat product ranges, says Food Frontier, caters to growing consumer interest, as evidenced by the one-third of surveyed Australians who are limiting their meat consumption. Growing demand for meat alternatives is driven foremost by health concerns, which the report notes are expected to rise further post- pandemic. At the same time, global investment in plant-based meat in 2020 reflected this rising demand. According to Food Frontier, US$1.5 billion “poured” in from international meat and FMCG giants, governments and venture capitalists. $3bn annual sales forecast Deloitte Access Economics’ 2019 modelling for Food Frontier forecast that consumer sales in Australia’s plant- based meat sector could hit $3 billion annually by 2030, from its FY20 level of $185 million, and create more than 6000 new jobs. Food Frontier CEO Thomas King, however, says governments at all levels need to support investment in R&D and infrastructure for the burgeoning industry, as well as evidenced-based regulation to ensure a level playing field for new players in the market. “With the right political will, Australia can build a multibillion-dollar plant- based meat industry, enabling our food businesses and farmers to capitalise on fast-growing global demand for alternative proteins,” he said. “Australia’s plant-based meat companies are eyeing export opportunities and will be watching demand trends overseas closely, while some, including Fable Food Co, Fenn Foods and v2food, have already launched into Singapore, Japan, Korea and other Asian markets. “Australia has the agricultural capacity, commercial appetite and research know-how to become an international leader in new protein industries, including plant-based meat. To not make the early investments necessary to leverage these unique strengths would be a missed opportunity.” MANUFACTURING A NEW FUTURE FOR LOCAL GOODS Improved availability and safety of consumer goods in Australia is anticipated following the federal government’s $1.5 billion investment into its ‘modern manufacturing strategy’, with an expected increase in components and machinery made locally. The government made its investment available to two of the six priority manufacturing sectors, as of April. Manufacturers can apply for a grant to help them strengthen their local supply chain, handle mass production, upskill employees, scale up and improve competitiveness. “Restrictions enforced across the world have resulted in a lack of availability, or delivery delays of goods, due to parts and components held up in international supply chains,” quality management expert at SAI Global Saeid Nikdel said. “The slowing of production lines has led a flow-on effect to Australians wanting to access goods. The problem has highlighted our manufacturing sector’s deepest vulnerability: its dependence on overseas markets for the supply of machinery, tools, parts and product components. “Most of the machinery that we bring into Australia comes from the US and Europe, while product components and parts mostly come from China.” Mr Nikdel says several manufacturing clients have told SAI Global that they are now looking to produce their own product components in Australia. This coincides with what most Australians want, he adds, with nearly nine in 10 surveyed consumers believing a higher proportion of essential products should be made locally. Mr Nikdel is optimistic about the benefits the government investment will help achieve. “As demand for Australian suppliers increases, our local manufacturers will also need to boost their workforce and facilities to scale-up operations,” he said. “Right now, the manufacturing sector has a shortage of skilled machinery operators. The government’s direct funding of the sector will not only result in new manufacturing areas, but also an increase in skilled workers and manufacturing facilities.” 8 CONVENIENCE WORLD MAR/APR, 2021