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Innovative shot in the arm for food manufacturing

In a groundbreaking initiative, the City of Whittlesea has formed a Food Industry Cluster to help build up this important industry sector. The Food Industry Cluster aims to create networking opportunities for local food related businesses, and most importantly to save them money through collective purchasing of common services and stimulate growth through collaboration and a common purpose.

Encompassing both farming and urban areas, food manufacturing is one of the larger industries in the Whittlesea region. About 180 small and large companies from the Cities of Whittlesea and Hume were identified as being potential members of the cluster by the Economic Development Department.

The results have certainly been impressive with two export contracts worth $5 million being won by local firms in recent months.

“With such as large number of food manufacturing companies, we saw an enormous opportunity in the area,” said Council’s Director Economic Development, John Francis.

It is about joining forces to explore further business opportunities in the region. It does not matter, if a food manufacturing business is established in the area, or planning to relocate, they can benefit from joining the cluster.

“Great networking opportunities are available, and with the economy of scale, we can start to assist firms with savings by jointly bargaining for common services and products such as cleaning contracts,” he said. The Cluster’s focus on cost reduction has benefited the entire group, according to Golden Circle’s Supply Chains and Operations Manager in Mill Park, Gavin Clifford.

“By acting together when choosing a food chemical supplier, for example, we’ve been able to realise savings of ten to 40 per cent,” he said.“The Cluster has opened a lot of doors for companies that may not have the experience with export or marketing.”

John Francis said it is a straight out win for the business.

“There is no cost for the business, aside from a regular commitment of their time, and the benefits are tangible,” he said. “A small company of eight to ten people may have little chance to negotiate a range of contracts, but with all these companies joining forces, they can negotiate better deals for all members of the cluster.”

He said opportunities also exist for the development of many boutique or niche market food businesses. The Food Manufacturing Cluster Project was highly commended in the 2003 National Awards for Local Government run by the Department of Transport and Regional Services. The cluster is a joint initiative between the Cities of Whittlesea and Hume.

The achievements of the program to date are:

• Key export contracts to the Middle East signed for two members of the group. One for around $5 million and the other for around $1 million.
• Skill development for the food companies to deal with the major food buyers in the Australian domestic market.
• One company has fast tracked its entry into the China market with two firm orders. Prior to joining the Cluster, it had tried unsuccessfully for three years to enter the market.
• Trust has been built between companies where previously there was no contact.
• Development of Cluster marketing strategy and logo.
• Reduced water usage achieved by one company following a cluster workshop on waste reduction.
• Student visits to food companies to promote working in the food sector.

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