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Brisbane - Australia's new world cityBrisbane - Australia's new world city

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Food & beverage processing

The food and beverage sector, worth $100 billion (AUD), is Australia’s largest manufacturing industry and employs more than 200,000 people. It continued to experience strong results during the global downturn, boasting 5.4 per cent growth from June 2008 to June 2009.

Greater Brisbane’s growing consumer market, skilled workforce, lower operational costs and excellent infrastructure have drawn companies such as Arnotts (Campbell Soup Company), Coca-Cola Amatil, Kerry Ingredients, Schweppes, Smiths Snackfoods (PepsiCo), Swift Australia and Tate & Lyle.

Companies can gain advantage right through the supply chain, with access to high-quality raw materials, advanced research and development and production technology, and excellent logistics. Key sectors in Brisbane include ingredients, meat processing, beverages, seafood and ready-to-eat.

2010 saw the opening of the health and food sciences precinct at Coopers Plains – 20 minutes from the Brisbane central business district. The first of its kind in Australia, the health and food sciences precinct covers both human and animal health and food sciences in one physical location.

Sub-sectors

Ingredients
The ingredients sector in Brisbane is at the forefront of global best practice. Its success is epitomised by the visionary development of functional ingredients, designed to add value to existing staples.

Companies in the Brisbane market include:

• Food Spectrum – a $38 million (AUD) annual turnover global manufacturer of functional food ingredients, aseptic fruit and syrup preparations and formulated pre-mixes, as well as stabilisers and fortified blends.
• Kerry Ingredients – one of the leading and most technologically-advanced manufacturers and innovators of application specific food ingredients in the world.
• Tate & Lyle – world-leading manufacturer of renewable food and industrial ingredients that’s invested $7 million (AUD) in a brand new Australian head office and manufacturing facility in Brisbane’s west. Also included in the investment is a Research and Development Centre of Excellence, where staff will develop new and improved products for customers in Australia, New Zealand and throughout Asia.

Meat processing
Home to 50 per cent of the domestic industry, Queensland is the undisputed capital of beef production in Australia, exporting $3.3 billion (AUD) in high-quality beef products. Meat processors in Brisbane enjoy some of the world’s best grazing land and access to leading technology in breeding, feedlotting and processing. The industry is well supported by specialist food transport operations and distribution costs from Brisbane can be as much as half compared with Sydney.

Companies in the Brisbane market include:

• Australian Country Choice (ACC) – a vertically-integrated supply chain organisation who in 2004 invested heavily in a world’s best-practice meat processing facility in Brisbane’s Australia TradeCoast precinct. This facility, capable of processing 200,000 carcasses a year, allows it to conduct all its operations from slaughter to value-added packaging for the export market within a single cold chain. The success of this Brisbane facility led to the January 2007 announcement by ACC to expand this facility and further integrate with logistics service provider Swire Cold Storage.
• Inghams – one of the largest producers of chickens and turkey products in Australia who increased production at their East Brisbane plant in 2008 with a $13 million expansion that created 210 new jobs.
• Primo Smallgoods – the largest producer of ham, bacon and smallgoods in Australia who has completed construction of a state-of-the-art $130 million (AUD) factory in Wacol, Brisbane's west.
• Swift Australia – a division of JBS, the world’s largest meat company, announced in 2008 a $30 million (AUD) expansion of their Ipswich plant.

Beverages
Brisbane is fast-becoming a hub for alcoholic and non-alcoholic beverage manufacturing in Australia. Each year, interstate and international companies move to Brisbane for its logistical efficiencies, convenient location and subtropical climate.
Recent AC Nielsen reports reveal that six of the top 20 fastest-growing 2005/06 summer categories in Queensland were beverages.

Companies in the Brisbane market include:

• Asahi (Schweppes) 
• Coca-Cola Amatil 
• Fosters (Carlton United Breweries) 
• Kirin (Lion Nathan, National Foods and Berri) 
• Paramat (Pauls)

Ready-to-eat
Brisbane’s proximity to Asia (the world’s biggest market for ready-to-eat (RTE) meals) and low cost base have consistently drawn RTE food manufacturers and distributors. The domestic market is well serviced from the Brisbane region as distribution costs are much lower than from other major capitals.

Companies in the Brisbane market include:

• Golden Circle
• Mitchell’s Quality Foods (makers of Lite ‘n Easy)
• OneHarvest
• Salad Fresh
• Snapfresh (part of Qantas)

Seafood
Brisbane’s seafood industry is a significant contributor to the local economy. The quality catch taken daily from the waters of pristine Moreton Bay – combined with innovative processing technologies and facilities – means Brisbane is an ideal location for progressive seafood companies. Queensland’s seafood industry employs more than 20,000 people and generates a retail value of $800 million (AUD) per year.

Companies in the Brisbane market include:

• Brisbane Wholesale Foods
• Raptis Seafood – one of the largest privately owned fishing and seafood trading companies in Australia.
• Watermark Seafoods

Competitive advantages

Talent, innovation and education
Brisbane’s excellent education system ensures manufacturers have access to a high quality labour pool of qualified food technologists, nutritionists, managers and manufacturing staff.
Population and employment
Manufacturing in Brisbane provides access to Australia’s fastest-growing consumer market – South-East Queensland. Brisbane’s population growth has consistently been a high performer of all the capital cities, recording average annual growth of 2.3 per cent between 2001 and 2008. Much of this is being driven by overseas and interstate migration, which has been the case for many decades.
Cost-competitive land
Brisbane boasts high-quality and cost-competitive industrial land, unmatched in proximity to the central business district, ports and national arterial routes. Purchasing and leasing of industrial sites in Brisbane is on average significantly cheaper than comparative costs in Sydney, by an estimated 20 per cent.
Expanding infrastructure
Brisbane businesses enjoy excellent logistics. An effective, integrated network of roads, railways, ports and airports support the competitiveness of industry and business.
Globally connected
Brisbane’s close proximity to Asia means businesses are able to service the Asian market faster and more efficiently. State-of-the art facilities at the Port of Brisbane and Brisbane Airport mean product can reach Asian markets up to five days sooner than from Sydney or Melbourne.
Construction
The cost of commercial construction in Brisbane remains amongst the lowest in the country. Current construction cost statistics place Brisbane eight points below that of Sydney.
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Derek Ephrem Manager - Investment Attraction