Successful food cluster

With logistical advantages, such as close proximity to the Hume Highway, curfew free Tullamarine Airport, and the Ring Road link to major ports, when surveyed recently most businesses in the food sector in the Cities of Hume and Whittlesea said they would never move.

These two Councils on Melbourne’s northern fringe have ignored their borders by joining forces to look at ways to grow existing businesses and attract new enterprises. They found that the preference for growth in the region is for more skilled jobs, clean industries and new export enterprises. Food processing, already strong in the area, came up number one under each of these areas.

As a result, the Economic Development Departments from the two Councils appointed Cluster Navigators Australia Pty Ltd to facilitate a closer working relationship with food industries in the region.

“The aim was to establish a food cluster where these industries would trust each other and start working together on common issues,” said Michael Burke, Managing Director, Cluster Navigators Australia.

The food industries were asked a series of questions such as, where they would like to see the food sector going; what are the key issues and challenges facing them; why they located in this region; and what they would like changed in the region.

Cluster Navigators Australia worked with the Councils to pull this information together, releasing a report in February 2003.

Going from strength to strength, the food cluster now has 17 regular members and meets monthly. Industries in the cluster range from Golden Circle and Inghams to small operations. The cluster comprises not only food producers but their support industries, such as transport operators, trainers and food research companies.

Key issues that have been identified by those in the cluster include the following.

  • Export growth
  • Domestic growth
  • Dealing with major supermarket chains
  • Skills and training
  • Attracting young people into food manufacturing
  • Cost reduction
  • Transport costs
  • Technologies to grow their business.

“Now we have got the trust of the companies and they are seeing the benefits of working together, we are moving into phase two where we will identify areas for more detailed work to be undertaken,” Michael Burke said.

For further information contact John Francis, Economic Development Manager at Whittlesea City Council, on (03) 9217 2123 or Ron Gheggino at Hume City Council on (03) 9205 2355.