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Reforming regulation of the Australian food and grocery sector

Deloitte Access Economics

The $A111 billion food, beverage, grocery and fresh produce manufacturing industry is the largest manufacturing sector in Australia and employs nearly 300,000 people.

Yet it is also an industry is under pressure from rising costs and retail price deflation compounded by subdued consumer confidence, weak economic growth and a strong Australian dollar.

This pressure is further exacerbated by excessive regulation, the impacts of which include reduced choice for consumers, excessive costs are imposed on businesses and threats to local investment, employment, production and growth opportunities.

Commissioned by the Australian Food and Grocery Council, this Deloitte Access Economics report examines the regulation of sector and proposes a range of risk-based changes that could boost aggregate and industry-wide productivity and deliver an ongoing reduction in regulatory burden of A$200 million per year.

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