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Publication date: October 2013

2 PROCESSEDPROCESSED FOOD Leaders in quality, safe and sustainable food

PROCESSED FOOD 3 Introduction Australia is a world-leading source of high-quality, safe and INDUSTRY OVERVIEW innovative processed food, with demonstrable expertise in the supply of quality products to domestic and export markets. INDUSTRY STRENGTHS ›› BAKERY, CEREALS As a major global producer of key Australia is well positioned to meet These categories represent many commodities such as wheat, barley, Asia’s rapidly growing demand of Australia’s elaborately and AND CONFECTIONERY sugar, dairy products, beef and sheep for protein-based processed substantially transformed products ›› DAIRY meat, Australia provides its food and food products and the capacity within Australia’s food and beverage beverage processors with exceptional to increase production to meet manufacturing industry. ›› SPECIALTY PRODUCTS security of supply and access to market demand. Australian products This document does not include raw materials. have high safety and quality Australia’s minimally transformed standards, driven by the country’s COMPANIES AND Internationally recognised for agri-food items, such as grain crops, robust regulatory, governance and producing high-quality processed livestock and fresh seafood. CAPABILITIES compliance frameworks. foods, the Australian industry is Talk to your local Austrade ›› BAKERY, CEREALS export-focused and has considerable This industry capability statement representative for more tailored AND CONFECTIONERY experience tailoring products to meet provides an overview of Australian advice and information about consumer preferences. capability in processed food ›› DAIRY connecting and partnering with manufacturing, including examples Food processors can source quality the Australian processed food of some of the many Australian ›› SPECIALTY PRODUCTS produce at competitive prices from manufacturing industry. companies with specialist expertise. a large and diverse local agricultural FURTHER sector and transform it into innovative This document focuses on three INFORMATION retail, food service and ingredient segments within Australia’s processed items for sale in Australia and across food manufacturing industry: the world. 1. Bakery, cereals and confectionery 2. Dairy 3. Specialty products

4 PROCESSED FOOD PROCESSED FOOD 5 Introduction Australia has a significant global Australia’s processed food and Most food manufacturing occurs in the presence in the meat, dairy, beverage industry is located primarily urban centres of Sydney (New South beverages and cereal markets. along the eastern seaboard, where Wales), Melbourne (Victoria), and INDUSTRY OVERVIEW producers and investors can take Brisbane (Queensland).1,3 advantage of a range of soil and Food is a core business for Food manufacturers and processors climate types. INDUSTRY STRENGTHS Australia. It is a major global also maintain a strong presence in ›› BAKERY, CEREALS exporter of food products such Over 80 per cent of production and Australia’s many regional centres. AND CONFECTIONERY as wheat, sugar, barley, beef and exports come out of the eastern states These are often located close to sheep meat, dairy and wine.1,2 of Victoria, New South Wales and agricultural food inputs. Queensland.1,3 ›› DAIRY Farm and food production is sustained ›› SPECIALTY PRODUCTS by over 100 000 growers, capable of ensuring a constant and reliable COMPANIES AND supply of raw materials.4 Australian food producers and CAPABILITIES processors are recognised globally for ›› BAKERY, CEREALS the innovative and reliable production AND CONFECTIONERY of high-quality ‘clean and green’ processed food and agricultural ›› DAIRY products, services and technology. ›› SPECIALTY PRODUCTS

FURTHER Dairy INFORMATION Wine Poultry Grains Beef

6 PROCESSED FOOD Governments and suppliers in Australia Logistics Global brands include Devondale dairy Introduction understand the importance of food products, Penfolds wines, Sunrice rice, security to the social and political stability Integrated air and sea freight services Capilano honey, Gloria Jeans coffee, INDUSTRY OVERVIEW of the region. All sections of the Australian operate regularly out of several major Safcol canned tuna and Foster’s beer. food and agriculture industry play a role in Australian ports. These incorporate the Speciality products include gourmet and INDUSTRY STRENGTHS safeguarding the food supply: government latest technology, such as radio-frequency organic foods. agencies, farmers, transporters, data loggers and automated materials ›› BAKERY, CEREALS processors and manufacturers, storage handling equipment, ensuring timely Food ingredient items AND CONFECTIONERY personnel and retailers. shipments and cold-chain integrity. ›› DAIRY Australian food processors excel in Food ingredients make up a large applying the latest food technologies Retail items portion of Australia’s processed food and ›› SPECIALTY PRODUCTS and manufacturing processes to create beverage exports. innovative products tailored to regional From nutritional infant formulas to organic Australian ingredients are used in many markets, functional requirements and COMPANIES AND breakfast cereals and fresh extended food and beverage manufacturing emerging consumer preferences. CAPABILITIES shelf-life milk, Australian processed food industries around the world. As well and beverages are in demand all around as offering private label manufacturing ›› BAKERY, CEREALS the world. services, Australia is also a major provider AND CONFECTIONERY Packaging Japan continues to be Australia’s biggest of portion-controlled meals, desserts and ›› DAIRY The Australian processed food and export market, followed by the United other tailored catering solutions for the beverage industry is supported States, New Zealand, the Republic of international hotel, restaurant and catering ›› SPECIALTY PRODUCTS by a world-class packaging and Korea, China and the United Kingdom.1,2 (HORECA) industry. logistics network. Australian food and beverage Global competition ensures Australian FURTHER From two-gram sachets to shelf-stable manufacturers produce global branded processed food manufacturers focus on INFORMATION sterilised retort pouch packaging, products, including many organic, customer needs and consumer solutions the local packaging industry is well- gluten-free, functional and other niche when tailoring their product offerings. This developed and highly innovative. product items. focus extends to exported products.

PROCESSED FOOD 7 Examples of food ingredient items KEY FACTS - FOOD AND BEVERAGE MANUFACTURING Introduction created specifically for export markets include: INDUSTRY OVERVIEW • frozen doughs and speciality bakery mixes for ‘window 5 INDUSTRY STRENGTHS bakeries’ and coffee houses Industry turnover - A$92b (approx.) * ›› BAKERY, CEREALS in Taiwan Second only to the mining industry in size AND CONFECTIONERY • high ‘free fat’ content blended milk powders for Japanese ›› DAIRY chocolate manufacturers Exports - A$18b (approx.)2** ›› SPECIALTY PRODUCTS • milk proteins for US nutritional A$30.5bn incl. agricultural food exports snack foods and supplements COMPANIES AND • extra-stretchy cheese toppings for CAPABILITIES use in Korean pizza franchises. Employees - 240,000 (approx.)5* ›› BAKERY, CEREALS Australia’s largest manufacturing employer AND CONFECTIONERY ›› DAIRY Manufacturers - 5,111 registered facilities ›› SPECIALTY PRODUCTS 26% of total manufacturing1** FURTHER INFORMATION Top five export markets1­**

Japan USA New Zealand Korea China 18% 12% 9% 8% 7%

* 2011-12 ** 2010-11

8 PROCESSED FOOD KEY FACTS - FOOD AND BEVERAGE MANUFACTURING Introduction Australian processed food segments - turnover and export 2010 - 20111 Industry sub-sector Revenue Exports Exports - INDUSTRY OVERVIEW A$bn A$bn % of revenue Meat processing 13.0 6.83 53 Other processed foods (tea, coffee, soup, sauces, prepared meals etc.) 8.4 0.51 6 (approx.)5* INDUSTRY STRENGTHS Industry turnover -A$92b Wine manufacturing 7.0 1.92 28 Second only to the mining industry in size ›› BAKERY, CEREALS Poultry processing 6.6 0.11 2 AND CONFECTIONERY Fruit and vegetable processing 5.2 0.63 12 ›› DAIRY Beer and malt manufacturing 5.1 0.46 9 Exports - A$18b (approx.)2** ›› SPECIALTY PRODUCTS Cheese manufacturing 4.2 1.34 32 A$30.5bn incl. agricultural food exports Prepared animal and bird feed manufacturing 3.8 0.80 21 COMPANIES AND Soft drink manufacturing 3.4 0.03 1 Bacon, ham and smallgoods manufacturing 3.4 0.02 1 (approx.)5* Employees - 240,000 CAPABILITIES Cereal food and bakery mix manufacturing 3.1 0.42 14 Australia’s largest manufacturing employer ›› BAKERY, CEREALS Chocolate and confectionery manufacturing 3.1 0.36 12 AND CONFECTIONERY Milk powder manufacturing 3.0 0.96 31 ›› DAIRY Snack food manufacturing 2.9 0.22 8 Manufacturers - 5,111 registered facilities Bread manufacturing 2.8 0.01 1 1 ›› SPECIALTY PRODUCTS 26% of total manufacturing ** Butter, whey, condensed milk, yoghurt processing 2.7 0.66 24 Flour and starch manufacturing 2.6 0.37 14 FURTHER Cooking oil and margarine manufacturing 2.4 0.32 13 1­** Top five export markets INFORMATION Fruit juice manufacturing 1.9 0.03 1 Sugar manufacturing 1.7 1.53 92 Milk and cream processing 7.4 0.13 8 Cake and pastry manufacturing 1.6 0 0 Seafood processing 1.4 0.34 25 Biscuit manufacturing 1.34 0.14 10 Ice cream manufacturing 0.50 0.05 9 TOTAL 92.8 18.19

PROCESSED FOOD 9 Bakery, cereals and Australian food processing facilities • cream powders Introduction provide a range of private-label • cereal mixes (for snackbars, confectionery manufacturing services for companies breakfast cereals, mueslis and wishing to create their own brands INDUSTRY OVERVIEW trailmix) Australia is a major producer and specifications. INDUSTRY STRENGTHS and exporter of high-quality, • cookie dough safe and cost-effective products, Hotel, restaurant and • laminated frozen pastry ›› BAKERY, CEREALS including bakery, cereals, flours and catering food (HORECA) • frozen dough AND CONFECTIONERY confectionery items. ingredients • bakery improvers and yeasts. ›› DAIRY Goods in this segment represent • Australian manufacturers supply ›› SPECIALTY PRODUCTS approximately 20 per cent of bakery, cereal, confectionery These items can be supplied chilled, Australia’s total processed food manufacturers, restaurant chains frozen and in dry shelf-stable format. 2 and in-store bakery franchises with production by value. Australian manufacturers use a range COMPANIES AND the following products: Manufacturing occurs around Australia of innovative packaging methods to CAPABILITIES and is conducted by foreign-owned • specialty flours and bread mixes ensure product quality, food safety ›› BAKERY, CEREALS subsidiaries, small to medium (such as organic, high protein, low and convenience. AND CONFECTIONERY sized enterprises (SMEs), contract GI, gluten-free, spelt) blenders, franchise operations and • cereal and rice flour blends ›› DAIRY niche operators. • cake mixes (including cheesecake Manufacturers produce high- ›› SPECIALTY PRODUCTS mix for in-store and franchise quality products for use in the bakeries) hotel, restaurant and catering FURTHER (HORECA), food manufacturing and • bakery mixes (such as doughnut INFORMATION retail industries. blends, sweet and savoury bun mix, tempura batters, mooncake mix, The Australian bakery, cereals and pizza blends, focaccia mix, waffle confectionary industry is responsive mix) to trends such as gluten-free, organic, salt-reduced and fat-reduced • bulk chocolate (for panned, functional and convenience foods polished, deposited chocolate items, and has considerable expertise chocolate toppings) in the production and export of • yoghurt powders these products.

10 PROCESSED FOOD Retail items As well as the more traditional Introduction supermarket range of packaged Australia has a mature retail market cereals, frozen cakes and pastry, cake INDUSTRY OVERVIEW for branded cakes, pastries, bread, mixes, sweet and savoury biscuits, bakery mixes, cereals, biscuits chocolate and sugar confectionery, INDUSTRY STRENGTHS and confectionery. Australian manufacturers offer a range Two to three major multinational of new and innovative items such as: ›› BAKERY, CEREALS manufacturers dominate retail sales • gluten-free cakes, pastas AND CONFECTIONERY across most categories, with smaller and cereals players gaining market share in niche ›› DAIRY segments that cater to growing • baked savoury rice snacks ›› SPECIALTY PRODUCTS consumer demand for nutritious, • organic bakery mixes and cereals organic, convenient, functional and locally produced items. • nutritional portion-controlled baked COMPANIES AND and cereal snacks for children The global growth in private-label CAPABILITIES store branding continues to drive • sugar and dairy-free confectionery ›› BAKERY, CEREALS exports and manufacturing in this • new confectionery lines for in-store AND CONFECTIONERY sector. Most manufacturers offer pick ‘n’ mix bars contract private-label manufacturing ›› DAIRY services in addition to producing their • nutritional meal-replacement bars ›› SPECIALTY PRODUCTS own branded items. • designer cupcake-baking mixes Retail store and generic-branded • sports nutrition bars. FURTHER bakery, cereal and confectionery items in Asia and the Middle East INFORMATION are increasingly being produced in Australian food processing facilities.

PROCESSED FOOD 11 Laucke continues its rise Case study: bakery on certified organic and artisan flours Certified for organic production by The and the unique properties of individual National Association for Sustainable In an industry now dominated by grain varieties. Agriculture, Australia (NASAA) and corporate giants, Laucke Flour Mills is the International Federation of Organic the last of the original family-owned flour In response to the re-emergence of home Agriculture Movements (IFOAM), millers of Australia. The third and fourth cooking, Laucke has introduced a range Laucke products meets Australian and generations of the Laucke family continue of bake-at-home mixes including ciabatta, EU standards. to work in the business. scone, flatbread, pizza and focaccia. Increasing gluten intolerance is also Laucke artisan products are available Laucke Flour Mills provides specialty flours catered for by Laucke’s market leading in markets including Great Britain, New and mixes for the food industry and home gluten-free mixes. Zealand, Korea, China, Hong Kong bakers through the milling of wheat, rye, and Singapore. spelt and triticale. It has a special focus

Go Natural finds its sweet spot Case study: confectionery and The Go Natural range includes natural Go Natural now exports to various snack foods indulgence, savoury and shared countries throughout Asia, the Middle East consumption products. The recently as well as the United States. Go Natural is an Australian-owned family released Hi Protein performance snack business, with a manufacturing base in range is designed for use by participants Melbourne, Victoria. in endurance sports. The company sells into the healthy Go Natural is the leading grocery and snack food and confectionery sector, convenience brand by market share for both in Australia and in countries around healthy snack bars in Australia. Their the world. products are distributed through major Products contain whole natural and independent supermarkets, as well ingredients that are minimally processed as convenience stores, health food so that taste and nutritional value is stores, pharmacies, airlines and vending maintained. Ingredients such as almonds, machines. macadamias, peanuts and honey are sourced from Australian producers.

12 PROCESSED FOOD Borgcraft moves from family business to household name Case study: pastry In recent years Borgcraft has diversified Bonavita product range as well as house- and launched a new range of Borg’s branded products for major Australian Australian company Borgcraft was Country Style Pastry Sheets, plus a supermarket chains and specialised established in 1960 as a family business manufacturing specialised, gourmet, savoury finger foods range. The range contract-manufactured products. Mediterranean-style, filled pasties known focuses on home-made appearance Continued expansion now sees Borgcraft as ‘pastizzis.’ and appeal, healthy eating and value products sold throughout Asia and the for money. Middle East, in sites including retail Today the company operates from a chains, bakery franchises and airline Borgcraft products have been developed custom-built factory with state-of-the-art catering kitchens facilities and skilled master bakers and for retail supermarkets and food service craftspeople producing 200 million high- divisions of catering companies. Borgcraft end appetisers, desserts and pastries is the brand owner of the Borg’s and each year.

Carman’s products earn a place on the top shelf Case study: cereals and snackfoods In addition to 20 people at the head office that 7 per cent of Carman’s customers buy and warehouse in Melbourne’s south-east, the products because they’ve tried them The 20-year ‘overnight success’ story of Carman’s indirectly employs 110 people on airlines. Carman’s Fine Foods began in 1992 when through six contract manufacturers to 18-year-old university student Carolyn In the supermarket setting, ‘private label produce its 30 product lines. All products is one of the best things that’s ever Creswell and workmate Manya van Aken, and packaging are designed in-house happened to our business,’ says Creswell. both working part-time in a tiny Melbourne and Carman’s specifies the raw ingredient By positioning Carman’s as a premium muesli-making business, bought the suppliers, monitors the quality of the product, the brand has obtained top-shelf company from its owners for $2000. They ingredients as they arrive and oversees space as supermarket chains reduce renamed it Carman’s – an amalgam of production processes. product variety to make way for their their first names. Creswell bought out van own private labels. With Australia’s two Aken in 1994 and has built Carman’s Fine Airlines have been a key part of Carman’s supermarket giants Coles and Woolworths Foods into a nationally known brand, with marketing strategy – both Qantas and accounting for 75 per cent of Carman’s revenue of A$50 million and exports to 32 Virgin provide Carman’s products as on- sales, Carman’s success as a preferred countries in 2012. board snacks. Company research shows premium brand looks set to continue.

PROCESSED FOOD 13 Dairy Australian dairy cows currently produce In recent years Australia’s raw milk Introduction just under 10 billion litres of fresh production at the farm level has Australia has a diverse dairy milk each year, of which 75 per cent plateaued. As a result, investment INDUSTRY OVERVIEW manufacturing sector and is the is processed into approximately one has shifted from production capacity world’s fourth largest exporter of million tonnes of manufactured dairy to research and development and INDUSTRY STRENGTHS processed dairy products. products. Over 60 per cent of these product development. products are exported.6 ›› BAKERY, CEREALS The dairy industry is Australia’s third Twenty years of investment in larger AND CONFECTIONERY largest agricultural food industry, with Dairying is well-established across state-of-the-art spray driers, cheese farmgate value of production valued a number of regions in Australia. making facilities, protein-extraction ›› DAIRY at A$4 billion, and exports valued at Manufacturing of value-added longer equipment and blending plants has A$2.76 billion in 2012.6 shelf-life products, such as cheese placed Australia at the forefront of ›› SPECIALTY PRODUCTS and specialised milk powders, is tailor-made manufactured dairy concentrated in the south-east region products. ­ COMPANIES AND of the country. CAPABILITIES ›› BAKERY, CEREALS AND CONFECTIONERY Exports by region Whey (tonnes) Liquid Whole milk Skim powder/ Butter/ Other ›› DAIRY 2011-2012 milk powder milk WPC AMF Cheese dairy Total ›› SPECIALTY PRODUCTS Asia 75,212 68,067 111,486 33,897 25,258 140,276 22,349 476,545 Middle East 31,619 23,529 7,259 10,442 72,849 FURTHER Africa 732 4,629 2,083 2,860 3,422 13,726 INFORMATION Pacific 10,732 1,617 2,612 892 2,590 18,443 Americas 9,782 889 3,172 2,072 7,152 23,067 Europe 429 810 1,793 6,510 2,221 1,132 12,895 Not specified 1,238 6,181 6,908 14,327 Total exports 87,914 116,143 141,409 41,871 45,951 161,023 37,541 631,852

14 PROCESSED FOOD Introduction The Australian dairy manufacturing Hotel, restaurant and catering also provide optimal texture, mouth-feel, sector is diverse and includes farmer- (HORECA) food ingredients flavour, consistency, shelf-stability and owned cooperatives, public, private and production machinability. INDUSTRY OVERVIEW multinational companies. Australia is an established supplier of milk powder and cheese to markets such as Australian dairy technology expertise and Farmer-owned cooperatives account for Japan and Korea. investment in state-of-the-art processing INDUSTRY STRENGTHS 33 per cent of Australia’s milk production. equipment helps drive innovation in ›› BAKERY, CEREALS The largest cooperative is Murray To remain competitive in the global Australian dairy ingredients. Some Goulburn, which accounts for over 30 per dairy trade, Australia has spent 20 years examples of Australian innovation are: AND CONFECTIONERY cent of national milk output.5 investing in the development of a wide • milk powders designed to provide a ›› DAIRY range of ‘functional’ dairy ingredients and Publicly listed companies include innovative new products. ‘caramelised’ flavour for chocolate Warrnambool Cheese and Butter and Bega ›› SPECIALTY PRODUCTS • ‘high-temperature’ milk powders for Cheese Limited, while Regal Cream (Bulla From the early days of blending sugar stable application in heated products Dairy Foods), Burra Foods and Longwarry with skim milk powder to reduce such as Japanese canned coffee COMPANIES AND Food Park are privately owned. skim milk powder tariffs, to blending whey powder with skim milk powder • ‘plasticised’ butter for consistent CAPABILITIES Large multinational dairy companies have to reduce production costs for machinability and handling in the operated in the Australia for many years ›› BAKERY, CEREALS confectionery manufacturers, Australian production of cakes and pastries AND CONFECTIONERY and include Fonterra (New Zealand), Kirin dairy processors have become world • low-oil and extra-stretch pizza cheese (Japan) and Lactalis (France). leaders in the manufacture of dairy with a whiter colour for American-style ›› DAIRY protein isolates for nutraceutical and pizza applications ›› SPECIALTY PRODUCTS pharmaceutical applications. • non-hygroscopic skim/whey powder Australian dairy proteins are providing blends for consistent application in benefits to consumers around the FURTHER drinking yoghurts. globe. Users of Australian products and INFORMATION services range from bodybuilders seeking specialised protein products, to aged care patients requiring assistance with ensuring adequate protein intake. Food manufacturers look to their dairy suppliers to assist with ingredients that not only lower manufacturing costs, but

PROCESSED FOOD 15 Retail items yoghurts and children’s dairy-based New products include: Most processors offer manufacturing snacks), premium ice cream, and services for private-label brands. • infant formulas fortified with whey Twenty years ago, Australian processed increasingly, fresh and long-life liquid milk. dairy exports were confined to a small proteins that replicate breast-milk Australia’s distribution chain is enhanced Australian dairy exports at the retail by its efficient seaports and airports, range of butter, instant skim and whole • calcium-enriched dairy snacks milk powders, canned condensed milk, level have been relatively consistent world-class capability in refrigerated and some camembert and brie cheeses. in recent years. However, there has • shelf-stable yoghurt drinks for transport, and ready supply of a range been considerable change in the type children’s snacks of blast frozen, chilled, UHT and other Today, the Australian product range of products exported. These reflect shelf-stable packaging. • flavoured milks extends to cream cheese, pizza changes in consumption trends, including cheese and cheddar cheese for home increasing demand for convenient, • organic milk consumption, nutritional infant formulas nutritious snacks. and a wide range of Australian yoghurts • butter blends (including drinking yoghurt, probiotic • wide range of soft/cream cheeses available in ion-controlled packaging.

Tatura Milk Industries Case study: dairy cream cheese, life-stage dairy nutritional TMI has the scale and ability to deliver products, bioactive milk isolates and fresh to unique and diverse customer Tatura Milk Industries (TMI) has been dairy ingredients. requirements, and products can also be producing quality dairy products for the certified organic, halal, or kosher. global market for more than 100 years. TMI Life Stage Nutritional Powder formulations are one of the company’s Approximately 80 000 tonnes is produced successful innovative retail products. TMI per annum, of which 70 per cent is is now the largest Australian-owned infant exported to Asian and European markets. formula manufacturer and offers private TMI has invested in technology, expertise label manufacturing services to premium and partnerships to transition from brand owners in Australia and across Asia. dairy commodities into value-added dairy products. New products include

16 PROCESSED FOOD PROCESSED FOOD 17 Specialty Products With an industry value of over A$8 Manufacturing facilities can be found Introduction billion and exports of A$500 million, in most Australian states including Australia has expertise in the products in this category represent organisations that produce some INDUSTRY OVERVIEW the majority of Australia’s truly of Australia’s best known branded production of specialty food ‘processed’ food products with a high food items. products for the retail, bulk value-add. This is also reflected in INDUSTRY STRENGTHS Food items are manufactured on catering and ingredient channels. the fact that it is second only to the world-class equipment to meet strict ›› BAKERY, CEREALS huge meat processing segment in international quality standards. AND CONFECTIONERY This segment falls outside the providing manufacturing employment broader commodity classifications to 20 000 Australians. Australian food manufacturers can ›› DAIRY of meat, dairy, seafood, grains, provide a range of cost-competitive, The majority of products within this high-quality processed specialty food ›› SPECIALTY PRODUCTS sugar, horticulture and wine. segment include prepared (ready) items to meet customer requirements It includes processed food meals, frozen/chilled meals and from around the globe. COMPANIES AND items referred to as the ‘Other desserts, corn/grain/potato based CAPABILITIES Not Elsewhere Classified (NEC)’ snack foods, powdered and liquid combined segment in food soups, seasonings, sauces (including coatings, batters, spices and yeast), ›› BAKERY, CEREALS industry manufacturing and AND CONFECTIONERY non-dairy based protein supplements export (HS) classification codes. (largely soy protein), coffee and tea. ›› DAIRY Speciality foods are produced in ›› SPECIALTY PRODUCTS Australia by a range of manufacturers, from large multinationals through to FURTHER family-owned niche operators. INFORMATION

18 PROCESSED FOOD Australia has particular expertise • nutritional benefits (salt/fat/sugar • functionality (including processing Introduction in specialty processed foods that reduced, fortified foods, organic, functionality and probiotics/ meet the following requirements: gluten-free, natural ingredients) prebiotics). INDUSTRY OVERVIEW • flavour (foods designed to meet European, Mediterranean and INDUSTRY STRENGTHS Asian tastes) ›› BAKERY, CEREALS • convenience (heat/thaw portion designs, ready-to-eat serves, AND CONFECTIONERY safe/innovative packaging ee fr s n- od ›› DAIRY designs) e o ed t f uc lu ed d nic g fi re rga ›› SPECIALTY PRODUCTS ti lt /o r a ts o s n f t/ ie a d s fa re m i g e a e u n in n d r COMPANIES AND l io a i o a t te p r v r e u i r CAPABILITIES t r o a a a t n n n u e ›› BAKERY, CEREALS u r a n n AND CONFECTIONERY ›› DAIRY

›› SPECIALTY PRODUCTS p f r

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c e e n p FURTHER s c r s o c i b n n INFORMATION g t i g o s i e n t fu o i i n ic n g g n n a i s c k s /p ti a e c e s r o v a d e e n li v b a t n p n r i li y co e io e o ty tiv rt s ti va o t cs no p a safe/in aw -e /th to at y- he d rea

PROCESSED FOOD 19 Introduction Hotel, restaurant, catering Examples include Australian ready Packaging (HORECA) and food meals and desserts with boosted calcium recipes for bone health, high Portion-controlled packaging caters ingredient items to HORECA organisations from INDUSTRY OVERVIEW protein soups, meals and desserts Australian ready meals provide to cater for health issues in the nursing homes to hotel kitchens. INDUSTRY STRENGTHS convenience, variety and outstanding elderly such as dysphagia (difficulty in Australian manufacturers have flavour to HORECA customers. swallowing). expertise in the latest ‘cook/chill’ ›› BAKERY, CEREALS With strong ethnic European and Soy protein isolate, an extract of soya and ’sous-vide’ food preparation AND CONFECTIONERY Asian influences in Australian recipes, beans is often used in many of the technology, which preserves flavours, ›› DAIRY our ready meals range from Asian functional meals mentioned above. It textures and functionality. yum cha style delicacies to English is also available as a bulk ingredient, Snap-frozen meals and microwave- ›› SPECIALTY PRODUCTS style pub fare and Italian desserts. used largely as a low-cost alternative ready pouches are two of the many to egg, milk and whey proteins These influences are also reflected packaging options available to when used in nutritional and sports COMPANIES AND in the range of sauces, seasonings, the HORECA customer. Australian performance food and beverages. CAPABILITIES spices and coatings available. manufacturers can also provide Speciality processed food ingredients Australia uses the latest extraction portion sizes to match end-user ›› BAKERY, CEREALS include Japanese tempura batters technology to provide quality soy dietary requirements or cost-per- AND CONFECTIONERY for restaurants and teriyaki and protein powders to many global end serve calculations. ›› DAIRY Moroccan meat seasonings for in- users including manufacturers of Innovative shelf-stable retort pouch store butchers. body building supplements, protein packaging also provides the added bars and weight loss meal replacers. ›› SPECIALTY PRODUCTS Nutritional and functional benefits convenience of shelf-stability for can be found in a range of Australian Ingredients such as soy protein ready-to-serve meals such as lamb FURTHER processed foods for HORECA isolate, flavoured seasonings, shanks and other meat-based customers. coatings and other powders meals for use in hotels, clubs INFORMATION manufactured in Australian food and restaurants. Consumers are increasingly health processing facilities offer further and weight conscious and looking processing benefits. for food products to support their choices. Australia’s processed These ingredients have been spray food industry provides a range of dried using the latest technology products and ingredients suitable for and are non-hygroscopic, hi-mesh cardiovascular health, oral care or powders, therefore providing easy weight management. ‘wettability’ and no clumping when reconstituted.

20 PROCESSED FOOD PROCESSED FOOD 21 Retail items However, many new innovative Australian Halal certified, Kosher certified, gluten The growing demand for nutritious snack offerings, particularly in the range of free, vegetarian, certified organic, protein foods for children is supported by a range Most international customers would ready-to-eat soups, snack foods, meals enriched and dairy free items have been of healthy corn, rice, wheat and potato- recognise the many big name brands and desserts, are changing the product on the menu of Australian processed foods based snacks that are low in salt and high manufactured and exported from offerings in supermarket and convenience for many years and therefore are offered on flavour. Organic chips and innovative Australian facilities. stores in Australia and overseas. across a number of product categories flavours such as beetroot and sweet potato as standard. complement traditional lines such as Neighbouring markets in Asia and the From the traditional frozen Italian-style cheese-flavoured extruded snacks. Middle East enjoy Lipton teas, Nestle pasta meals to new ‘add-meat’ sauces in coffees, McCain’s frozen pizzas, Heinz shelf-stable retort pouches, options now soups and sauces, Cerebos’ gravies and include pad thai curries and Vietnamese Smith’s snack foods. lemongrass chicken varieties.

Beerenberg Case study: sweet condiments Fruit for products is selected from All Beerenberg hand-crafted products are Beerenberg’s family-owned Australian cooked on the farm in open steam kettles, Beerenberg is a jam, sauce and strawberry farm to ensure the best with no artificial ingredients. Nothing condiment manufacturer from Hahndorf, freshness, flavour and colour. artificial is added to Beerenberg products. South Australia. Over 60 different recipes are The brand is respected internationally. Beerenberg jams, sauces, chutneys, manufactured into seven packaging The family have been farming the property pickles, jellies, mustards and dressings formats, ranging from 14g to 1 000kg. since 1839 and continue to produce an have been manufactured on the farm Products are sold to national supermarkets artisan product while adhering to the since 1970 and have been exported to chains, independent supermarket internationally recognised HACCP food 24 different countries. chains, hotels, airlines, industrial safety system to control processes, Popular markets are Singapore, Malaysia, customers internationally. materials, staff and training Indonesia, China, Japan, Fiji and Thailand. Beerenberg also exports to India, the Philippines, Papua New Guinea, Vietnam and Cambodia.

22 PROCESSED FOOD Cerebos Case study: sauces, gravies, desserts Tandaco is a leading cooking aids brand, disposal of used packaging, conservation whilst Foster Clarke custards are very well of resources through improved production Cerebos is a successful and innovative represented across Australian households. processes and the re-use and recycling of sauce, spice and coffee manufacturing packaging materials. organisation supplying the retail and food Cerebos is also a leading supplier across service and hospitality market segments. the food service and hospitality sectors. High-quality ingredients and an innovative Its Mocopan and Bruno Rossi fresh coffee approach to bringing new products to The company produces brands that have brands are well-known and Cerebos is market are keeping the company strong. been part of people’s lives in Australia for the exclusive supplier to Australia’s and more than 50 years. Cerebos Australia is actively engaged New Zealand’s largest QSR (quick service in export, with long term supply In Australia, Cerebos’ market-leading retail) chain. arrangements to many of the Pacific retail brands include Saxa salt and Gravox Cerebos Australia has been a signatory to Islands, Papua New Guinea, Singapore, gravies and finishing sauces. Fountain is the National Packaging Covenant since Malaysia, Brunei, Japan, South Korea, also a dominant retail brand with table 2000 and has minimised its environmental China and Middle East. sauces, variety sauces and marinades. impact arising through a range of initiatives such as the reduction in the

Flavour Makers Case study: ready meals Flavour Makers set its sights on providing Having made inroads into Asia, the US consumers with authentic, home-made, and the UK in recent years, flavours and Flavour Makers is a young and innovative natural flavours and recipes, delivered with recipes produced by Flavour Makers’ processed food manufacturer. a high level of convenience to both retail Melbourne and Brisbane facilities are now With humble beginnings providing and industrial customers alike. enjoyed in homes and restaurants across authentic Italian seasonings to in-store the globe. The company is now Australia’s leading butchers, this company has grown Indian simmer sauce manufacturer rapidly to be a market leader in simmer and was recently crowned Woolworth’s sauces, spices, gravies, coatings, supplier of the year 2008 in the Private glazes, pre-mixes and a range of Label category. blends for retail, foodservice and food processing applications.

PROCESSED FOOD 23 Introduction Bakery, cereals and confectionery – Breads, flours and bread mixes Cereal mixes and rice flours Bread crumbs Cake mixes Bakery mixes The following tables provide some Company name examples of companies and R I/FS R I/FS R I/FS R I/FS R I/FS INDUSTRY OVERVIEW their capabilities. AB Mauri (Cereform) (formerly George Weston Ingredients) • • • • Contact your local Austrade Allied Mills INDUSTRY STRENGTHS representative for assistance with • • • • Australian Bakels ›› BAKERY, CEREALS connecting with the Australian • • • • businesses that best suit Ballantyne Foods AND CONFECTIONERY your requirements. Bellis Fruit Bars Borgcraft Bakeries ›› DAIRY austrade.gov.au ›› SPECIALTY PRODUCTS Carman's Kitchen Chocolate Grove COMPANIES AND Custom Choc Freedom Foods CAPABILITIES Go Natural ›› BAKERY, CEREALS Goodman Fielder (Bunge/Defiance) • • • • • • AND CONFECTIONERY Greens Foods • • • ›› DAIRY Kerry Pinnacle Aust. • • • • Laucke Flour Mills • • • • • • • ›› SPECIALTY PRODUCTS Lewis Confectionery FURTHER Mid-West Milling • • • • • • • • Naturally Good Products • • INFORMATION Nestle Australia Popina Foods • • • • Sanitarium Health Food Co. San Remo Macaroni Sun Health Foods

R = Retail I/FS = Ingredient/Food Service

24 PROCESSED FOOD Bakery, cereals and confectionery – Bulk chocolate couveture Cream powder Frozen dough Frozen laminated pastry Bakery improvers/yeasts Sweet biscuits Savoury biscuitsand baked incl. snackscrackers Chocolate items Sugar confectionery Breakfast cereals Frozen cakes incl. cheesecake Pasta Contract manufacturing Company name R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS AB Mauri (Cereform) (formerly George Weston Ingredients) • • • Allied Mills • Australian Bakels • • • • • • Ballantyne Foods • • • Bellis Fruit Bars • • • Borgcraft Bakeries • • • • • • • • Carman's Kitchen • • • • • Chocolate Grove • • • • • • • • Custom Choc • • • • Freedom Foods • • Go Natural • • Goodman Fielder (Bunge/Defiance) • • • • • • • • • • • • Greens Foods • • • Kerry Pinnacle Aust. • • • • • • • • • • Laucke Flour Mills • • • • Lewis Confectionery • • • • • Mid-West Milling • • • • Naturally Good Products • • • Nestle Australia • • • • • Popina Foods • • • • Sanitarium Health Food Co. • • San Remo Macaroni • • Sun Health Foods • • •

R = Retail I/FS = Ingredient/Food Service

PROCESSED FOOD 25 (WPC 80%) Full cream milk powder Skim milk powder Buttermilk powder Whey powder Whey protein concentrate Skim/whey powder blends Yoghurt powder Tailored milkand powders blends Milk proteincaseinates concentrates and Butter incl. canned Dairy – Whey protein isolate (WPI 90%)

Introduction Company name R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS Alba Cheese INDUSTRY OVERVIEW Ballantynes • • • • Burra Foods • • INDUSTRY STRENGTHS Chobani Dairy Foods ›› BAKERY, CEREALS Fonterra Australia • • • • • • • • • • • • • • AND CONFECTIONERY Harvey Fresh ›› DAIRY Intermix • • Lemnos Foods ›› OTHER PROCESSED Lion Dairy & Drinks • FOOD Not elsewhere Longwarry Food park classified (NEC) • Marsh's Dairy • Moondarra COMPANIES AND Murray Goulburn Co-Op • • • • • • • • • • • • • • CAPABILITIES Nestle Australia • • • • • ›› BAKERY, CEREALS Norco Dairy AND CONFECTIONERY Organic Dairy Farmers • Parmalat Australia • ›› DAIRY Regal Cream ›› SPECIALTY PRODUCTS Tamar Valley Dairy Tatura Milk/Bega • • • • • • • • • • FURTHER Warrnambool Cheese & Butter Co. • • • • • • • • •

INFORMATION R = Retail I/FS = Ingredient/Food Service

26 PROCESSED FOOD Dairy – Butter blends Lactose Cheddar cheese incl. slices Mozzarella cheese incl. slices Pizza cheese blends Camembert,Blue Brie cheeses and Cream cheese Other cheese Cheese powder Cream incl. frozen cream Cream powder Condensed milk UHT milk/ESL Fresh milk incl. flavoured Yoghurt Icecream Dairy dessertsfromage incl. frais Infant formula Contract manufacturing

Company name R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS Alba Cheese • • • • • • Ballantynes • • • • Burra Foods • • • • • Chobani Dairy Foods • • Fonterra Australia • • • • • • • • • • • • • • • • • • • Harvey Fresh • • • Intermix • • Lemnos Foods • • • • • • • • • • • • Lion Dairy & Drinks • • • • • • • • • • • • Longwarry Food park • • • • • • • Marsh's Dairy • • Moondarra • • • • • • • Murray Goulburn Co-Op • • • • • • • • • • • • • • • • Nestle Australia • • • Norco Dairy • • • • • • • • • • Organic Dairy Farmers • • • Parmalat Australia • • • • • • • • • • Regal Cream • • • • • • • Tamar Valley Dairy • • Tatura Milk/Bega • • • • • • • • • • • • • • • • Warrnambool Cheese & Butter Co. • • • • • • •

R = Retail I/FS = Ingredient/Food Service

PROCESSED FOOD 27 Introduction Specialty products – Company name Soups Savoury snack foods Ready mealscanned, incl. frozen, retort Prepared desserts Sauces, seasonings Functional food ingredients Extruded snackfoods Tea and coffee Nutritional supplements Milk replacers Contract manufacturing INDUSTRY OVERVIEW R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS R I/FS Beak & Johnston • • • • • • • • INDUSTRY STRENGTHS Cerebos Foods • • • • Chef's Pantry • • • • • • ›› BAKERY, CEREALS Colonial Farm AND CONFECTIONERY • • • • Exquisine • • • • ›› DAIRY Flavour Makers • • • • • • • ›› SPECIALTY PRODUCTS Kerry Ingredients • • • • • • • • • • • • HJ Heinz Australia • • • • • • • • COMPANIES AND Kooka Bros • • • • CAPABILITIES Musashi (Nestle) • Nestle Australia • • • • • • • • • • • • ›› BAKERY, CEREALS Passage Foods • • AND CONFECTIONERY Prepared Foods Australia • • • • • • ›› DAIRY Steric • • • • • Snack Brands Australia ›› SPECIALTY PRODUCTS • • • • Vesco • • Ward McKenzie • • • • • • FURTHER Yarra Valley Snackfoods • • INFORMATION R = Retail I/FS = Ingredient/Food Service

28 PROCESSED FOOD PROCESSED FOOD 29 Introduction The following organisations Online resources include detailed References are some of the government annual production and export and industry bodies involved in statistics for all manufactured dairy 1. Department of Industry, Innovation, product categories including milk INDUSTRY OVERVIEW the Australian processed food Science, Research and Tertiary powders, butter, cheese and UHT milk. Education 2012. Food Processing manufacturing industry. INDUSTRY STRENGTHS dairyaustralia.com.au Industry Strategy Group Final Report. ›› BAKERY, CEREALS Contact your local Austrade Australian Food and Grocery Council 2. DAFF 2013. Australian food statistics AND CONFECTIONERY representative about connecting is the leading national organisation 2011–12, Department of Agriculture, and partnering with the representing Australia’s food, drink and Fisheries and Forestry, Canberra. grocery manufacturing industry. AFGC ›› DAIRY Australian processed food daff.gov.au policies span areas including health and ›› SPECIALTY PRODUCTS manufacturing industry. nutrition, industry affairs, sustainability 3. australian Food and Grocery Council and regulation and government. Online State of the Industry 2012. afgc.org.au COMPANIES AND Government and resources include information on CAPABILITIES Australian definitions and food issues 4. australian Bureau of Statistics. 7106.0 industry associations such as functional foods, organic - Australian Farming in Brief, 2013. ›› BAKERY, CEREALS foods, Australian food standards and abs.gov.au Department of Agriculture develops classification codes, labelling and food AND CONFECTIONERY 5. Australian Bureau of Statistics. and implements policies and programs safety. afgc.org.au ›› DAIRY that ensure Australia’s agricultural, 8155.0 Australian Industry, 2011-12 fisheries, food and forestry industries Australian Industry delivers abs.gov.au ›› OTHER PROCESSED remain competitive, profitable and confectionery advocacy, news and 6. Dairy Australia. Australian Dairy FOOD Not elsewhere sustainable. Online resources include information and help with technical Industry in Focus 2012. detailed publications and statistics matters, in addition to core services classified (NEC) dairyaustralia.com.au on Australia’s major food segments. in training, legal services, workplace daff.gov.au relations, sustainability, trade FURTHER and export, OHS, and business INFORMATION Dairy Australia is the national development. The AI Group maintains services body for the dairy industry. the Australian Confectionery Industry Dairy Australia helps farmers adapt Directory, available free on request and to a changing operating environment, a good resource for information on new and works to achieve a profitable, products and detailed manufacturer sustainable dairy industry. information. aigroup.com.au/ industrysectors/confectionery

30 PROCESSED FOOD The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency. Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally. Austrade helps companies around the world to source Australian goods and services. We can help you reduce the time, risk and cost involved in sourcing suppliers by: • helping you identify and contact Australian suppliers • providing insight on Australian capabilities • alerting you to the latest products and services out of Australia to help you grow your business. Austrade partners the strengths of Australian businesses with the needs of international markets. We can open the door to a world of opportunities for your business. austrade.gov.au

PROCESSED FOOD 31 austrade.gov.au