Food and Beverage Manufacturing | Modern Manufacturing Initiative Stream

What is the Food and Beverage Manufacturing?

The Food and Beverage Manufacturing is a Modern Manufacturing Initiative stream to assist manufacturers to transform the nutritional value and shelf life of local produce, helping Australia to capitalise on growing global demand for premium food offerings.



Australia has an international reputation for producing premium, safe and high-quality food and beverage products. Close proximity to Asian markets and a reputation as a trusted supplier of premium goods has led to the food and beverage sector becoming a major manufacturing sector for the Australian economy. There are opportunities to bring food and beverage manufacturers together to:

  • manage the development of new products for emerging markets
  • translate research into commercial applications
  • manufacture locally and export more high value products to overseas markets.

The Australian Government, with the support of industry, is manufacturing a new future for our nation. The objectives and outcomes are consistent across each priority area in the Manufacturing Integration Stream.



The objectives of the Manufacturing Integration Stream are to:

  • support Australian manufacturing businesses and entrepreneurs to participate in local and global value chains
  • encourage manufacturers to adopt new technologies to support entry into new markets with innovative solutions to build scale and capability
  • support Australian manufacturers to overcome barriers that are preventing them from identifying and accessing new value chains (as outlined in the relevant National Manufacturing Priority road map)
  • create new jobs in the manufacturing sector, by integrating into new local and global value chains.
  • identify opportunities for Australian manufacturing businesses, particularly in the National Manufacturing Priorities, to connect and network with local and global customers
  • increase investment in Australian manufacturing, targeting the National Manufacturing Priorities
  • increase Australian exports through greater participation in global value chains, contributing to Gross Domestic Product
  • increase manufacturing capability, particularly in relation to identifying and participating in, new local and global value chains
  • grow and support manufacturing networks and ecosystems and increase collaboration.



For the Modern Manufacturing Initiative’s Translation and Integration Stream grant opportunities, an initial combined total of approximately $140 million is available from 2020-21 to 2023-24 across all the National Manufacturing Priorities. For the 2020-21 financial year, $40 million is available to support grant opportunities across all the National Manufacturing Priorities. We anticipate there will be $40 million in 2021-22, $40 million in 2022-23 and $20 million in 2023-24.

Funding under this grant opportunity will support projects in the Food and Beverage National Manufacturing Priority.

There will also be future funding rounds under the Translation and Integration streams.

The grant amount will be up to 50 per cent of eligible project expenditure. The minimum grant is $1 million and the maximum is $20 million.


Eligible Projects

The Modern Manufacturing Initiative – Food and Beverage Manufacturing Initiative is all about government backing manufacturing businesses to:

  • invest in strategic projects that will increase participation in new local and global value chains, embrace technology, innovation and automation
  • grow production and manufacturing activities
  • bring commercial outcomes to new and existing markets, value chains and customers.

To achieve this, the government has identified activities as part of the Integration Stream that are designed to integrate Australian manufacturing firms into local and global value chains.

Eligible activities that will help to achieve the Integration Stream’s objectives and outcomes include:

  • Business development and market integration opportunities
    • collaborating and networking with business and researchers to build capacity and deliver products, processes or services with domestic and international market potential into domestic or global value chains
    • building organisational capacity and capability to support engagement in domestic and global value chains
    • identifying domestic and international market opportunities for your existing or new products, processes, or services, and developing an export strategy
    • implementing domestic and international distribution strategies, such as market entry pathways, for your existing or new products, processes, or services.
  • Using high value manufacturing processes and techniques or related high value-added activities to integrate into new value chains
    • developing a product, process or service for market that is competitive, meets export standards and is ready for distribution into domestic and global value chains
    • undertaking high value-add activities such as design, branding, distribution and after sales services that are part of domestic and global value chains and markets
    • engineering and other related activities associated with improving or qualifying a product to reach the standard of a supplier for a domestic and/or international company or value chain
    • acquiring, constructing, installing and commissioning of new machinery and specialist equipment to facilitate the manufacturing project to access new markets, customers and value chains
    • acquiring technology and/or purchasing intellectual property required to undertake the manufacturing project
    • fitting out of new premises and altering or extending existing premises to facilitate the manufacturing project to access new markets, customers and value chains
    • workforce training and accreditation required to undertake the manufacturing project.


Eligible Applicants

To be eligible you must:

  • have an Australian Business Number (ABN)
  • be non-tax-exempt
  • be registered for the Goods and Services Tax (GST)

and be:

  • an entity incorporated in Australia, including start-ups and a trading corporation, where your trading activities:
    • form a sufficiently significant proportion of the corporation’s overall activities as to merit it being described as a trading corporation; or
    • are a substantial and not merely peripheral activity of the corporation.

Joint applications are acceptable, provided you have a lead organisation who is the main driver of the project and is eligible to apply.

For clarity, there is no minimum threshold for an entity’s annual turnover or operating expenditure.

The Modern Manufacturing Initiative – Food and Beverage Manufacturing initiative can only accept applications:

  • where your project aligns with the Food and Beverage National Manufacturing Priority area (see Section 2 of the guidelines)
  • with a minimum of $2 million in eligible project expenditure
  • where you can provide evidence from your board (or Chief Executive Officer or equivalent if there is no board) that the project is supported, and that you can complete the project and meet



Applicatios close 27 April 2021.


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