The Australian Food and Grocery Council says a proposed national gas reservation policy could be a critical step in supporting Australia’s food and grocery manufacturing sector, citing the importance of affordable and reliable gas supply for manufacturers.
In a media release, the council said access to competitively priced domestic gas remains essential for manufacturing operations, where gas is widely used for processing, heating and as a feedstock in the production of everyday food and grocery items.
The AFGC said it welcomed the Federal Government’s announcement of a national gas reservation policy, describing it as a measure intended to shore up domestic supply and place downward pressure on gas prices for Australian users.
It acknowledged the involvement of Ministers Tim Ayres, Chris Bowen and Madeleine King in the policy announcement.
“For many food and grocery manufacturers, gas remains an essential input,” AFGC chief executive Colm Maguire said.
“A well-designed domestic gas reservation scheme that increases supply, supports long-term contracts and puts downward pressure on prices is critical to sustaining investment, protecting jobs and maintaining food security.”
Mr Maguire said the announcement follows ongoing discussions between industry and government about energy affordability and transition challenges facing manufacturers.
He also pointed to the recently announced $5 billion Net Zero Fund as part of broader policy settings affecting the sector.
“Combining [the] announcement with the recently announced $5bn Net Zero Fund to support energy transition for food and grocery manufacturers, it is clear there is strong momentum for the sector as we head into 2026,” he said.
The council said it had consistently raised concerns with government about energy costs and transition pressures on manufacturing businesses, and welcomed continued engagement on these issues.
The AFGC said it looks forward to participating in consultation during 2026 on the final design of the gas reservation scheme, with the aim of ensuring it supports a competitive, sustainable and resilient food and grocery manufacturing sector.
