FONTERRA Australia and New Zealand Managing Director John Doumani has been appointed chairman of the Australian Food and Grocery Council (AFGC).
The AFGC is considered the leading voice for Australia’s $102 billion food and grocery manufacturing sector but is facing some major challenges that will need to be addressed in the immediate future by Mr Doumani and his Board.
The lobby group recently announced the nation had become a net food and grocery importer for the first time in its recorded history when its 2010 State of the Industry report detailed an alarming $1.8 billion deficit.
The trade blowout was attributed to several “inter-related factors” including a strengthening Australian dollar, changes in domestic supply, competitive pressure form foreign producers and broader globalisation trends.
The AFGC wants to improve the trade scenario by pushing the Federal Government to develop an overarching strategy with several aims, including identification of growing market opportunities for Australian export products in India and Asia where safer, higher quality, nutritional food and grocery supplies are needed.
Mr Doumani takes up the position following the recent retirement of former chairman Geoff Starr.
Mr Starr served on the AFGC board for nearly five years, including three as chairman.
Mr Doumani said he was looking forward to leading the AFGC as the industry continued to navigate the volatile business environment, build a sustainable industry and manage currency fluctuations.
“Australia’s food and grocery sector is the country’s largest manufacturing sector,” he said.
“Maintaining our competitiveness and our ongoing commitment to being a good, active corporate citizen will be pivotal to ensuring ongoing profitable growth.”
AFGC chief executive Kate Carnell said with the serious challenges facing the food and grocery manufacturing industry including rising imports, flat exports, increasing costs and pressure on margins, it was “vital to have a leader of John’s calibre”.
“It’s great to have someone with so much knowledge and vitality who will help industry take up these important challenges and to work with government to develop a National Food and Grocery Agenda,” Ms Carnell said.
“For the past four years, John has been an active AFGC Board member.
“With more than 30 years experience in international business and consumer brands with leading companies, including Campbell Soup Company, Johnson & Johnson, Meadow Lea and most recently Fonterra, he will be a great leader for AFGC.”
Ms Carnell said the industry suffered from the lack of a truly co-ordinated national branding strategy for export products that identified, “what the Australian brand means”.
Mr Starr said the AFGC had been an important part of his life over recent years and thanked his fellow Board members and “everybody involved the industry”.
“It’s been a hugely rewarding and enjoyable experience being involved with AFGC,” he said.
“I hope my successor John Doumani – a well-known leader in our industry – enjoys his time just as much.”
