Gas shock busts 'dining boom'

The Australian is reporting today that gas price spikes are hurting food manufacturing:

Major food manufacturers face an energy price shock with new gas contracts up to 70 per cent higher than last year as jobs growth and capital investment stalls in a sector that makes up one-third of the nation’s manufacturing base.

The Australian Food and Grocery Council has warned that the spike in gas prices could affect jobs in the sector, which is facing financial pressure caused by a supermarket price war and rising input costs.

Council chief executive Gary Dawson, who will release the organisation’s State of the Industry report today, said while exports had grown 14 per cent in 2015-16, the industry was facing challenging economic times.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

Gas shock busts ‘dining boom’