House of Assembly Fifty-Second Parliament, Second Session (52-2) 52 2 Parliament of South Australia House of Assembly published Question Time Competitive Foods Initiative COMPETITIVE FOODS INITIATIVE Mr SIBBONS House of Assembly Mitchell COMPETITIVE FOODS INITIATIVE Mr SIBBONS (Mitchell) (14:25): My question is to the Minister for Manufacturing, Innovation and Trade: will the minister inform the house about state government initiatives to support our premium food and wine sectors? The Hon. T.R. KENYON House of Assembly Newland Minister for Manufacturing Minister for Small Business COMPETITIVE FOODS INITIATIVE The Hon. T.R. KENYON (Newland—Minister for Manufacturing, Innovation and Trade, Minister for Small Business) (14:26): I am pleased to advise the house that the Weatherill Labor government has committed $500,000 to kick off our Competitive Foods Initiative, which helps capitalise on our state's acknowledged reputation for quality food and wine. We know that small and medium enterprises are a significant component of the state economy, and our growing food sector is no different: it comprises a large number of small to medium enterprises which often face a range of challenges in commercialising and marketing their new products. The Competitive Foods Initiative will assist the establishment of specialised food clusters, which was a major goal of the state government's manufacturing work strategy. We know that there are a range of potential benefits that manufacturing clusters can bring to industry, including innovation and technological development. Food manufacturing, like other forms of manufacturing, can also benefit from specialist clusters that bring together companies with a similar focus so that they can share knowledge and skills and help to drive innovation. We know that clusters can also promote collaboration and capability building that are vital to increase competitiveness and profitability. Food clusters also encourage companies to work collaboratively to experiment and innovate with food technology relating to textures, flavours and aromas; implement effective production technologies around processing, packaging and storage; capture value through consumer intelligence and market trends; and enhance the sector's branding. The Competitive Foods Initiative, which will be managed by Food SA, combines two of the state government's key priorities: a commitment to premium food and wine and also to growing advanced manufacturing. The initiative is also consistent with the state government's Food Strategy 2010-2015 which emphasises the need for food manufacturers to develop their competitive advantage by differentiating their products from their competitors. We know the importance of our food and wine industry to the state's economy. In 2011-12 the food and wine industry was worth around $16 billion to South Australia's economy, and we also know that in 2011-12 the food and wine industry accounted for 42 per cent of South Australia's total merchandise exports. The Competitive Foods Initiative will help support South Australia's food industry and build on our capacity to develop and sell luxury food products into niche markets here and overseas.