11.07.2019 in Economics

Food and Beverage Industry


Queensland Australia has a diverse food and beverage industry. The industry produces enough drinks and different kinds of food to cater for the growing population in the state. The multi-ethnic state has diverse cultures necessitating for diversification of the industry to meet individual cultures requirements. The combination of local people and foreigners enhance the industry to produce quality food and beverages to satisfy all possible demands. According to Collins, Watson, and Clare (2014), the food and beverage industry offers high quality and nutritious foods safe for human consumption. The growing demand for the food and drinks by th workers, students, and other people enhance competition within the industry thereby leading to the provision of high-quality foods and beverages. The increase in the number of market providers of products and the increase in competition force the industry players to offer diverse foods and beverages at affordable prices. Therefore, many people can afford to purchase different types of foods and beverages the industry offers. The agricultural industry provides a solid foundation for the food and beverages industry. This paper discusses the food and drink industry, entry requirements, and the set of regulations that govern the industry.

Food and Beverage Market

The safety of drinks and food arise from the strict food safety and biosecurity measures imposed by the Australian authorities (Huvaere & Skibsted, 2015). All single entities need to have the compliance certificates to operate in every sector of the state. However, the state bodies subject an individual business to intense scrutiny to ensure that only industries with the ability to meet the health and safety standards operate and render their products and services to consumers. In addition, health authorities subject businesses into rigorous inspection from time-to-time to ensure that companies meet the health standards all the time. The advance is significant because it ensures that out of date or expired substances do not reach consumers.
Agriculture forms the backbone of the state economy through the production of different farm produce that ends up in the food and beverage industry. For instance, there is intensive cultivation of grains such as maize, wheat, and sorghum that provides an adequate supply of products necessary to support the industry. Sorghum is an essential component in the manufacture of some soft drinks in the state. The high performance of the food and beverage industry is partly because of the diverse agricultural industry.
The industry’s supply chain has small, medium, and large industries that operate at various levels of the supply chain. According to Alagiyawanna, Townsend, Mytton, Scarborough, Roberts, and Rayner (2015), the industry is capable of serving almost everybody in the society regardless of the levels of incomes. In addition, the existence of various types of the business ensures the creation of extensive customer base and opens up beverages and food to consumption by different people. Consequently, many people have access to the industry’s products. The existence of various businesses and different levels of the supply chain allows for the creation of both skilled and unskilled labor thereby enhancing the industry.
Most of the Queensland State universities offer courses in the food and beverage industry. The advance allows for the churning of specialized skills into the market hence ensuring safety and health standards in the market. In addition, skilled labor permits specialized services to people of different ethnicity and cultures in a respectable manner. Tourists can afford tailor made products and drinks to quench individual tourist requirements.
Additionally, skilled labor enhances innovation in the industry to promote incorporation of technological advancements in the market such as the utilization of online services to search and order their preferences with a click of a button.  Therefore, the utilization of skilled labor is crucial in the provision of better services and enhancement of the industry to cater to the diverse culture in Queensland State (Ferguson, O’Dea, Chatfield, Moodie, Altman, & Brimblecombe, 2015). The competent workforce is essential in dealing with many problems and emerging issues in the industry and ensures the market is at par with others state industries.

Composition of the Food and Drink Market

The Queensland’s food and beverage industry comprise of the producers of the raw organic, natural and fresh food substances and the manufacturers of foods such as additives, confectionery, and nutritional supplements (Rampedi & Olivier, 2013). The producers of the food substances engage in the farming activities to supply the required raw materials. Farmers engage in both subsistence and commercial agriculture to produce the required raw materials for use in the market. The raw materials are critical elements in the market because they form the basis through which the processors can achieve their procedures.
The producers render their natural products to the processors and manufacturers who convert the materials to a form that is readily marketable. Meanwhile, manufacturers in the food and beverage industry engage in converting the raw materials to a form acceptable to the final consumer. Therefore, manufacturers specialize in converting the raw materials to conventional foods and beverages for consumption. The State has efficient infrastructures such as the road that allow for the transportation of the food and beverages from the point of production to the point of consumption.
The Queensland environment allows hospitality and friendly interaction between the industry players and consumers. The communication aids users to gather information on most foods and beverages. The information on the products is essential in that consumers can choose the usability of the product and weigh the suitability of the product. The proximity of the state to the Asia and Pacific markets is essential to the industry. Beverages and foods do not meet the local demand but also the foreign markets (Harris, 2015). The efficient transport and communication infrastructure, the hospitable Queensland’s environment, and the proximity to the Asian and Pacific markets attract businesses of all sizes to ensure growth and development of the industry.
There are different leading companies in the food and beverages industry. Food processing firms engage in the handling of raw materials to finished goods ready for consumption. The primary players in the food processing are flour millers, bakers, canners and packers (Rayner, Scarborough, Townsend, Alagiyawanna, Roberts, & Mytton, 2015). The individuals oversee the treatment and food and beverage packaging. The beverage manufacturing entails the services of brewers, wine producers, and non-alcoholic manufacturers. The businesses ensure the brewing of alcoholic drinks, wine production and the production of non-alcoholic beverages. The retail and hospitality businesses include supermarkets, restaurants, hotels, stores, markets, and retail bakeries. Firms enhance the food and drinks delivery to the customer.
In addition, firms aim at taking foods and beverages as close as possible to consumers. The advance allows the business to thrive because consumers have unlimited access to foods and beverages. Retailers such as supermarkets allow consumers to purchase many of foods in one store thereby saving customers time. In addition, consumers have the ability to sample different foods and drinks in shops. Restaurants aim at preparing foods and drinks and offer them to customers when ready for utilization.
The community and health service providers engage in developing hospitals, health centers, hotels, and catering services (Bell et al., 2013). The services support the food and beverages industry through accommodation and ensuring people are in good health conditions to work effectively in various departments thereby facilitating continuous production of raw materials, processing, manufacturing and sale of different foods and beverages. The transport and distribution businesses maintain warehouses, distribution centers, and logistics centers to ensure timely transportation of raw and finished materials to their destination points. The agriculture industry is the primary producer of grains, beef, vegetables and fruits that are the products for use in the industry. In addition, the biotechnology industry in Queensland supports the industry through research, growing and manufacturing foods with health and nutritional benefits.

Joining the Foods and Drinks Industry

The diversity of the food and drink industry presents many opportunities for like-minded business people to explore and discover the markets within the industry. Consequently, there are many opportunities for all types of institutions and business sizes. Starting a food and beverage business requires one to go through a rigorous process. A potential entrepreneur needs to consult the local councils to identify the kind of documentation and permits needed for legitimate business operation. The local government directory available on the internet allows businesses starters to identify the local councils for smooth processing of the permits.
Market research is critical for the enterprise entrepreneurs in the food and drink industry. Research allows potential investors to identify the principal competitors in the desired field. In addition, research allows investors to design the market campaigns that will directly target the potential consumers and assist in enhancing the sales volume of the desired investment. Market research in the industry will help an entrepreneur to identify valuable information regarding the specific market segments during particular times and for particular groups of people. Furthermore, market research will assist an investor to make a good comparison in the growth process of competitors and allow keeping an eye on the competitors enterprise to ensure healthy competition.
From research, an investor can design market strategies to keep the new investment always ahead of rivals and exploit new markets; the existing competitors are yet to take advantage (Jensen & Ronit, 2015). A new investor can utilize the tool to identify major problems in the markets and try to find solutions to the problems. The criterion is important because it can minimize chances of losses occurring in the future. In addition, the market research in the food and beverages industry can be essential in identifying new business opportunities and recognize new customer bases. Furthermore, the research can be appropriate to make a well-informed decision on the suitability of venturing into different business opportunities within the industry.
To boost the expansive growth of the industry and attract more investors, the government authorities in Queensland offer different assistance packages. The primary producers of the animal, fisheries and plants receive subsidies to enable them kick-start their business and increase the productivity of the animal, fish, and plant products for use by the manufacturing companies. Many of the products in the food and beverage industry are from animal and plants products. Beef, grains, fruits, and vegetable are critical constituents of the industry (Fukushima et al., 2014). Therefore, the subsidies allow a new investor to engage in commercial production of the food substances to enhance production of raw materials to boost the industry.
The Queensland authorities offer assistance packages for producers and distributors of wines. Wines set significant element of the beverages. Many consumers utilize wines for different reasons. Some consumers of wines believe that wine use lowers the mortality rate. The death rate among wine consumers is lower than it is among beer and spirits consumers. Besides, wine use reduces the risk of heart attack because the ingredients help to lower the blood pressure of users. Therefore, the criterion reduces the likelihood of heart attack.
Some of wine users believe that wine reduces the risk of contracting the type 2 diabetes. Some research studies identify that non-wine users are more likely to develop the kind of diabetes compared to the users of wine. In addition, wine reduces the risk of developing colon cancer among wine drinkers (Bell et al., 2013). However, ordinary consumers realize the benefits of wine. For the above reason, wine commands substantial market for the food and beverage industry. In addition, the product is a source of significant revenue to the state authorities and business enterprises. Therefore, the authorities offer subsidies to wine producers and distributors to enhance income generation within the industry.

Foods and Beverage Compliance Rules and Regulations

Starting a food and beverage business requires compliance with the industry rules and regulations. Food safety standards and regulations apply to all enterprises at different levels of production, processing and distribution (Queensland Government, n.d.). There is a need for business starters within the industry to seek information on the rules and regulations that all the enterprises must comply with to avoid unnecessary fines or prosecutions and arrange on how to meet each of the outlined specification. Businesses must comply with the Food Standards Australia New Zealand regulations that describe the food and beverages handling practices to ensure safety in the industry.
The food safety practices are broad, and authorities ensure that businesses comply with each of the practice. Business owners need to provide accessible hand washing apparatus and facilities to ensure that consumers wash their hands before handling food. The aim is to reduce diseases and infections in case of hands contamination (Dodds et al., 2014). Entrepreneurs must provide warm and cold running water, soaps and single use towels to dry hands. The advance should be a standard practice for all businesses whether small or big and for different markets within the industry.
Entrepreneurs have the responsibility of reporting the emergence of diseases to the relevant bodies to ensure expedited action to contain the spread of illnesses. Owners need to report people and employees who display signs and symptoms of vomiting, diarrhea, foodborne illnesses and discharges from eyes or noses (Queensland Government, n.d.). The advance is to ensure that the industry is free from health hazards that may render the industry unproductive. In addition, investors need to exclude employees from handling contaminated food to avoid passing illnesses from one person to another. It is a legal requirement that all food and beverages handlers have the relevant skills and expertise to handle food and beverages safely.
Therefore, employees must relate well to the business they engage in and have necessary skills on the food safety and hygiene in food handling. For example, cooks need to have a range of competencies to prepare meals with a high level of knowledge and expertise. Conversely, a sandwich maker needs to have experience of making sandwiches that score the maximum points on hygiene and safety for human consumption. That is to say that food handlers need to have formal training and depict special expertise in food and security information.
Food enterprises whether new or existing need to comply with facilities and equipment regulations. The premises should be easy to clean and have adequate sanitary facilities. In addition, the structures need to be appropriate for each category of the business, have sufficient space and necessary tools to produce safe food and beverages. The structures must have sewage, wastes disposal, and have facilities to maintain the health and hygiene of staff. The structures must be impenetrable to pests. The structures and materials used for building the structures should not contaminate the food and beverages (Food Standards, n.d). Wine and alcoholic handlers need to comply with the liquor licensing to ensure safe handling and sale of drinks to consumers.
Investors need to comply with liquor laws that require the sale of wines to people with the set minimum age. In addition, investors need to comply with regulations that call for the sale of wines within the specified times of the day. Besides, the licenses require that business owners provide adequate sanitation facilities within their premises such as washrooms to allow customers meet that nature calls.
The wine laws for producers and distributors necessitate that producers uphold highest levels of hygiene and safety while brewing the wines. The regulations ensure that the wines mature within the required timelines to provide right content of beers and wines. Incomplete fermentation of ingredients within the alcohol manufacturing can lead to health complications and can lead to death or blindness in users. Therefore, business operators need to comply with the industry rules and regulations to ensure continuous production and transportation of the products.

Support Services within the Industry

The Queensland Government supports the food and beverages market through assistance programs, commercialization of opportunities and intensive research. The marketing of opportunities is important because it opens the market to international investment opportunities and creates employment for many within and outside the state. Revenues from the industry add up the economy of Australia hence allowing for growth of the economy. The industry has the greatest number of employees in the economy. Due to many businesses in the industry, people are actively involved in developing and creating innovative ideas on the ways to improve the economy.
There are numerous business support services offered by the government. According to Queensland Government (n.d), Australian Institute for Commercialization is crucial in assisting company investors and research companies to develop commercialization skills to open up their organizations to the domestic and foreign investment. The institute instills necessary information and expertise to investors to improve their productivity and hence improve the customers’ base. Therefore, the Institute plays a significant role in offering business support services to ensure that more people develop the will to start new businesses especially those not fully exploited and guide entrepreneurs in developing and expanding their bases and to open their markets to competition by other enterprises.
Ideas2Market organization plays a crucial role in the commercialization and diversification of the food and beverages industry. The group organizes workshops to train and guide investors on the appropriate methods of commercializing their activities. The group aims at educating innovators to develop new ideas to improve the industry and training them on developing comprehensive business plans to foster development and exploitation of small sectors within the state. The body underscores the need to property ownership to set up business by offering advice on the intellectual ownership and management (Setiawan, Emvalomatis, & Oude, 2015).
On the other hand, Queensland Wide Innovative Network is a body of dedicated personnel to oversee the provision of the government sponsor services across the industry (Queensland Governmen , n.d). The body ensures that needy businesses get government sponsor services to alleviate them from collapsing or leaving the market. The government understands the importance of providing a healthy environment for all companies either infant or existing to realize the potential and offer quality goods and services to consumers. In addition, a wide range of other business assistance programs renders support to the activities of the food and beverages industry.
Queensland research is imperative to the improvement of the food and drinks industry. Research is critical in developing foods that are more resistant to pest attacks and those that can withstand unfavorable weather conditions (Queensland Government, n.d). In addition, the research organizations can develop crops with a high capacity for yields using limited land spaces. The advance is critical to increasing productivity in the food and beverages industry to foster production, processing, manufacturing and transportation of the foods and drinks to the market segments. The research is crucial in finding ways of developing foods with better nutritive constituents hence increased health benefits that enhance the manufacturing process. Quality products in most times lead to increased sales thereby improving the income generation for entrepreneurs.
Many industry associations in the state strengthen the productivity of the industry. The organizations offer various assistance programs to the starters and help find the markets for foods on behalf of the individual entrepreneurs. The association exists in the diverse areas of the industry and assist members willing to start up new business and those that are in operation. The unions look into the interests of the members to ensure that they receive meaningful income from their business. The associations takes on the government in case of misunderstanding and endeavor to find rational solutions to the problems the members face in the course of their day-to-day business operations.
Furthermore, the associations assist in determining inputs at low prices for the members thereby increasing their revenues. The associations are hardy in searching and identifying new markets both within Australia and New Zealand and in the international markets. Organizations also aim at luring foreign investors and tourists to visit their enterprises. The advance increases the incomes of the businesses and allows improvement within the food and beverages industry to ensure full productivity and high returns.


Queensland Australia has a diverse food and beverage industry. The industry offers safe, quality, and nutritious foods and beverages at affordable prices. The state has a collection of strict bio-security rules and regulations that ensure food safety. The industry encompasses small, medium, and large businesses that operate at each stage of the supply chain. Numerous universities offer programs in foods and beverages hence enhancing the industry with skilled labor force.
Queensland foods and beverages market scopes from producers of fresh farm produce to producers of manufactured foods and drinks for consumption. The industry attracts the business of all types and kinds. The developed transport infrastructure allows for the food-processing, beverage manufacturing hospitality, retail, health, and distribution industries to thrive under the competitive food and beverage industry. Animal and plant products render the solid foundation of the industry.
Getting involved in the food and drinks industry requires intensive research and planning. The industry offers attractive opportunities for all sizes of the businesses. Research is critical in exploiting new market segments, identifying possible market gaps, identifying existing problems and identifying strategies for use in competing within the food and beverage industry. The food and beverage industry offers various assistance programs to starters.
Strict rules and regulations apply at each stage of the production, processing, manufacturing and transportation of the foods and beverages. Business starters need to familiarize with the stringent regulations to ensure compliance. Food safety regulations state the responsibilities of entrepreneurs in providing safe foods and drinks.  Compliance with the food safety regulations, obtaining the liquor licenses and complying with wine laws is essential to avoid fines and possible prosecutions.
The Queensland Government supports the food and beverage industry through offering commercialization opportunities, research opportunities and business support services. Commercialization opportunities allow for diversification, creation of new jobs and attracting new investments. Research is critical in identifying crops that can withstand adverse weather conditions and with high nutritional content. Business assistance services assist companies in commercializing activities and sell products in the food and beverage industry.

Related essays