Australia’s food and grocery manufacturing sector is facing continued cost pressures from energy, transport, packaging and ingredients, with the Australian Food and Grocery Council (AFGC) calling for measures to support local production.

In a media statement, AFGC Chief Executive Officer Colm Maguire said recent global disruptions had highlighted the importance of maintaining domestic manufacturing capability.

“Australians are feeling the pressure when they pay the mortgage, fill up the car or do the weekly shop,” Maguire said.

“There is a good lesson to learn here. Every time there is a global disruption, whether it’s COVID, conflict in the Middle East or rising energy prices, Australia is reminded why it matters that we can make things here at home.”

Maguire said food and drink inflation had eased from previous highs, but manufacturers continued to face elevated operating costs.

“When oil prices rise, it’s not just petrol that is affected. It increases the cost of transport, packaging and production right across the economy and this takes time to flow through to prices at checkout for consumers,” he said.

“Nobody wants higher prices, but there is no switch we can flick to bring costs down overnight.”

The AFGC also said higher interest rates were making investment in equipment, technology and production capacity more expensive for manufacturers.

The industry body is calling on the government to support manufacturing productivity and reduce the cost of doing business, including through tax incentives and reduced red tape.

“The more food and grocery products we can make here in Australia, the stronger and more resilient we will be when the next disruption comes,” Maguire said.

According to the AFGC, food and grocery manufacturing employs more than 301,000 Australians, supports one in three manufacturing jobs and contributes $183 billion to the Australian economy.

“Australia has the people, the capability and the businesses to do more manufacturing locally,” Maguire said. “The long-term answer is making it easier and more affordable to make food and groceries in Australia.”

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Queensland’s manufacturing industry is set to receive $750,000 in government funding to support the adoption of artificial intelligence (AI) and help businesses implement technology projects.

In a news release, the Crisafulli Government said the Queensland Manufacturing AI Uplift trial program, delivered through the ARM Hub, will support eligible manufacturers in identifying and implementing AI solutions aimed at improving productivity, competitiveness, growth and workforce capability.

Expressions of interest are open to manufacturers across Queensland, including those in regional areas.

Queensland Minister for Manufacturing Dale Last said the investment would support manufacturers looking to apply AI to their operations.

“Queensland manufacturers are already leading in innovation, and this investment will help more businesses put AI to work on the factory floor,” Last said.

“We’re backing manufacturers that are ready to adopt AI to improve productivity, boost competitiveness and grow their businesses.”

The government said the program builds on the activities of Queensland Manufacturing Month, which highlights developments across the state’s manufacturing sector.

ARM Hub CEO Professor Cori Stewart said the program would provide practical support for manufacturers seeking to apply AI to their businesses.

“Artificial Intelligence is already transforming advanced manufacturing globally, and this program is about making sure Queensland manufacturers have the capability and confidence to take advantage of that transformation,” Stewart said.

Stewart said the program would focus on helping manufacturers identify practical applications for AI rather than simply understanding its potential.

“Through the AI uplift program, ARM Hub will work directly with manufacturers to identify practical applications for AI that can improve productivity, strengthen competitiveness and build workforce capability,” she said.

The Queensland Government said the initiative forms part of its broader focus on supporting manufacturing and economic growth across the state.

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Australia’s manufacturing capability will receive continued support from Bell Bay Aluminium, with a $200 million joint investment and a new power agreement securing the Tasmanian smelter’s operations through to the end of 2031, according to the Australian Aluminium Council and government statements.

The investment will be split between the Federal and Tasmanian governments over five years and is expected to support the facility’s 550 workers, as well as around 1,000 workers indirectly employed across Northern Tasmania.

Australian Aluminium Council CEO Marghanita Johnson said the agreements provide certainty for the facility, which contributes more than $250 million annually to the Tasmanian economy.

“A new era is dawning for Tasmania, with today’s announcement providing certainty for Bell Bay Aluminium for the next five years,” Johnson said.

Bell Bay Aluminium was established more than 70 years ago and was the first aluminium smelter in the Southern Hemisphere. The Council said the facility has played a significant role in Australia’s industrial development and will continue supplying domestic customers and international trading partners.

“While Bell Bay has played a significant role in the history of Australia’s sovereign industrial capability, today it has secured its place in Australia’s industrial future through to the end of 2031,” Johnson said.

Federal Industry and Innovation Minister Tim Ayres said the investment would support Australian manufacturing while work continues on a longer-term plan for the Bell Bay region.

“The Albanese Government is backing Australian industry, Australian workers and Australian manufacturing by securing Bell Bay Aluminium smelter while a future plan for the Bell Bay region is worked through,” Ayres said.

Tasmanian Premier Jeremy Rockliff said the investment would also provide greater certainty for businesses connected to the facility.

“This investment also provides certainty for the supply chain, with many Tasmanian businesses having the confidence to invest, grow and do business,” Rockliff said.

The government statement said Bell Bay is positioned to support further investment in manufacturing, resources and export-focused industries, with the precinct identified in Tasmania’s Northern Economic Plan as part of the region’s future economic development.

Johnson said the announcement also highlights the broader importance of aluminium to Australia’s economy and manufacturing base. The industry directly employs more than 20,000 people and indirectly supports a further 55,000 families, predominantly in regional Australia, according to the Council.

“Australia’s aluminium industry competes not only with global companies, but with governments actively backing their own industries,” Johnson said.

Reliable and competitive energy remains critical to the industry, with the Council calling for coordinated policy settings to support value-added manufacturing and Australia’s position in global supply chains.

“Aluminium is essential to Australia’s transport, infrastructure, construction, manufacturing, defence capability and emerging technologies,” Johnson said.

The government statement said the support package is in addition to a five-year power agreement for Bell Bay Aluminium. Tasmanian Energy and Renewables Minister Nick Duigan said the combined arrangements would support 550 direct jobs and $5 billion in economic activity over the next five years.

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Australia’s manufacturing capability is set to gain further research and industry support as Edith Cowan University (ECU) joins the Additive Manufacturing Cooperative Research Centre (AMCRC) as its newest research partner.

According to the AMCRC, ECU’s addition expands its Australia-wide research network to 12 universities and CSIRO, bringing further research expertise and industry connections to support the adoption of additive manufacturing across key economic sectors.

AMCRC Chair Susan Jeanes said the partnership would strengthen the organisation’s ability to support manufacturers while building capability in Western Australia.

“AMCRC is creating a national ecosystem that connects manufacturers with the expertise, skills and infrastructure needed to adopt and apply additive manufacturing,” Jeanes said.

She said ECU’s research capability and industry links would be particularly relevant as Western Australia develops opportunities across defence, mining and resources.

“Additive manufacturing has the potential to transform how these sectors design, produce and maintain critical components,” Jeanes said. “Building the workforce, knowledge and industry capability required to realise that opportunity will be essential.”

ECU Associate Dean (Research), School of Engineering, Professor Wei Ni said joining the AMCRC would strengthen connections between research and industry and create opportunities for innovation.

“Joining AMCRC will enable ECU to work directly with manufacturers to develop and commercialise solutions that improve productivity, resilience and global competitiveness,” Ni said.

Under the partnership, ECU will contribute to collaborative research programs, project development and workforce initiatives focused on practical outcomes for Australian industry.

Ni said the collaboration would also support technology adoption among start-ups, small and medium-sized enterprises, government, community organisations and major companies, including those operating in Western Australia’s resources sector.

“By combining ECU’s research expertise with the AMCRC’s national industry network, we can help businesses solve complex challenges, build a future-ready workforce and unlock new opportunities for Western Australia and the world,” he said.

The partnership forms part of AMCRC’s Australia Makes vision and its focus on industry-led research, workforce development and technology adoption in additive manufacturing.

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Manufacturing the next generation of solar technology will require testing beyond the laboratory, with UNSW Sydney researchers exposing commercial-sized perovskite and tandem solar modules to Australia’s challenging outdoor conditions.

The five-year, $18 million project will field-test up to 160 modules at UNSW’s Water Research Laboratory in Manly Vale, where they will be exposed to changing temperatures, humidity, ultraviolet light, rain, salty air and storms. The project is supported by $5.6 million from the Australian Renewable Energy Agency (ARENA).

UNSW Sydney Dr Jessica Yajie Jiang, who is leading the project, said outdoor testing was necessary to understand how the emerging technologies perform under real conditions.

“You have to test them in the outdoor environment and see how they really perform,” Dr Jiang said. “Each module has its own personality. You need to dive in and understand the failure mechanism for each one.”

The research focuses on perovskite and perovskite-silicon tandem technologies, which are being developed as alternatives to conventional silicon solar panels.

According to UNSW, silicon has driven the growth of photovoltaic technology but is approaching its theoretical efficiency limit. Perovskite materials can absorb different parts of the solar spectrum, allowing the two materials to be combined in tandem cells to potentially increase efficiency.

“The perovskite absorbs one part of the sunlight and the silicon absorbs another,” Dr Jiang said. “Together, they maximise the use of the entire solar spectrum.”

However, UNSW said the durability of perovskite technology remains an area requiring further investigation. Unlike silicon, perovskite materials can degrade under sunlight, humidity and other environmental conditions.

“The question is whether these perovskite modules will give us the lifetime we expect,” Dr Jiang said.

The project will test both single-junction perovskite modules and different tandem configurations, including modules that integrate perovskite directly onto silicon and those that stack separate devices.

Researchers will continuously monitor module performance, using 80 per cent of a module’s initial output as a key degradation benchmark. The results will then be compared with controlled indoor testing and microscopic and nanoscale analysis to identify the causes of degradation.

“We are not just trying to see that a module has failed,” Dr Jiang said. “We want to understand why – what is really going on and identify the degradation mechanism at the nanoscale.”

The findings will be shared with manufacturers to support changes to materials, designs or manufacturing processes before updated modules are returned for further testing.

The project brings together UNSW, Trina Solar, MicroQuanta, the University of Surrey and CSIRO, along with other manufacturers whose involvement remains confidential. UNSW said confidentiality agreements will be used to protect commercially sensitive information, with comparative results able to be anonymised where required.

“We want to provide confident, independent evidence of how these modules perform outdoors,” Dr Jiang said. “Then, investors, governments and industry can have a much better understanding of whether the technology is ready.”

The field-testing project began this year and is scheduled to run until 2031.

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Global shipments of professional service robots increased 24% to almost 250,000 units in 2025, according to the International Federation of Robotics (IFR), as commercial applications continued to expand.

The figures are contained in the IFR’s World Robotics 2026 Service Robots report, which found growth across professional, medical and consumer service robot segments.

“Service robots are expanding into everyday operations,” said Jane Heffner, President of the IFR. “Sales went up across all three segments with double-digit growth rates: professional service robots gained 24%, medical robots grew 19%, and consumer service robots surged by an impressive 37%.”

Transportation and logistics remained the largest application for professional service robots, with 117,500 units sold in 2025, up 21% and accounting for 47% of the market. The robots are used for transportation, material-flow automation and delivery processes.

While traditional sales remained the main commercial model, the IFR said robot-as-a-service (RaaS) models continued to gain popularity, with the model already dominant in the US.

Hospitality robots ranked as the second-largest application, covering uses such as mobile guidance, information points and telepresence. Professional cleaning robots followed, with floor cleaning representing the main application.

The report also identified humanoid robots as an emerging market. Around 7,000 full-size humanoids, defined as robots above 140 centimetres, were sold globally in 2025 for commercial and professional applications outside research and entertainment.

The IFR said current humanoid applications remain largely specialised, with some requiring human teleoperation. It also identified safety standards, training and maintenance costs, and the development of viable business cases as challenges to wider adoption.

“For humanoid robots to become practical everyday tools, further progress in intuitive programming, robust manipulation, economic scaling, and standardized safety is essential,” the organisation said.

“In a special chapter of the World Robotics 2026 report, we provide a comprehensive overview about humanoids as the robotics newest market,” said Dr Werner Kraus, Chair of the IFR Service Robot Committee.

The IFR also reported 34.2 million consumer service robots sold in 2025, representing 37% growth, while medical robot sales included 8,400 surgical robots, which grew 57% and accounted for the main driver of growth in medical robotics.

The organisation cautioned that the service robot figures are based on a sample of 238 suppliers and are not projected to represent the entire industry. It also said changes in sample composition mean comparisons between different World Robotics reports are discouraged.

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Peacock Group is expanding its Victorian operations with an 8,000-square-metre purpose-built facility in Dandenong South that will bring Peacock Bros. and insignia together and increase the Group’s combined warehouse and production footprint by about 66 per cent.

In a news release, the company said the new site will provide approximately 56 per cent more production space, with around 150 employees from the two businesses progressively relocating from their current locations in Knoxfield and Oakleigh.

Peacock Group CEO Ryan McGrath said the facility followed a search for a site that could support the company’s current operations and future plans.

“Bringing our Oakleigh and Knoxfield teams together is a significant step forward for Peacock Group and for how we work together as one team,” McGrath said.

“We’ve taken the time to find a site that works for our people and our current operations, while giving us the space and flexibility to support where we want to take the business in the future.”

Peacock Bros. and insignia will continue to operate as established businesses within Peacock Group, with the shared location intended to bring their teams and capabilities closer together.

The Group, which also includes AMR Hewitts PrintPackaging, provides solutions covering industrial coding and marking, printing and labelling, mobile computing, identification and tracking, colour labels and packaging, and software.

McGrath said the new facility would provide additional space and facilities for the businesses.

“Peacock Bros. and insignia have established teams and expertise, and the new facility gives us an opportunity to bring those strengths closer together in a way we haven’t been able to before,” he said.

A key component of the Dandenong South site will be the Peacock Group Solutions Centre, which will showcase technologies and solutions across the Group. AMR Hewitts will remain at its Tullamarine location, with its packaging capabilities also represented at the centre.

According to Peacock Group, the centre will allow customers to see technologies including mobile computing, barcode scanning, printing and labelling, coding and marking, RFID, software and data capture in operation.

“Customer conversations have increasingly shifted from individual products towards complete solutions,” McGrath said.

The Solutions Centre is expected to support customers across manufacturing, warehousing, transport and logistics, retail, food and beverage, pharmaceutical, beauty and healthcare, while also providing space for collaboration with technology partners.

The relocation will take place progressively, with Knoxfield employees moving first, followed by the Peacock Bros. Oakleigh team in early 2027. Peacock Group plans to officially open the new facility and Solutions Centre in the first half of 2027.

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Australia’s shift towards electric vehicles (EVs), rooftop solar and other renewable energy technologies is expected to create growing volumes of end-of-life waste, according to researchers at RMIT University.

RMIT researchers said the country will need stronger systems for managing materials from clean energy technologies as more products reach the end of their useful lives.

Dr Akvan Gajanayake, a lecturer at RMIT’s School of Property, Construction and Project Management, said Australia could face significant challenges in managing EV batteries.

“By 2035, Australia could have millions of end-of-life lithium-ion batteries with nowhere to go,” Gajanayake said.

He said EV batteries contain materials including lithium, cobalt and nickel that require specialist processing, while Australia currently lacks what he described as sufficient infrastructure, policy frameworks and coordination to manage the waste at scale.

“Technical solutions for how to recycle this waste exist, however for such technical solutions to operationalise, the softer systems need to be in place,” Gajanayake said.

He said households, manufacturers, recyclers, policymakers and community groups would need to work together to develop systems for managing battery waste.

RMIT also highlighted the growing waste challenge associated with rooftop solar. Associate Professor Muhammad Dan-Asabe Abdulrahman, from RMIT’s Supply Chain and Logistics Management discipline, said Australia’s high uptake of rooftop solar was contributing to increasing volumes of panels and related equipment approaching the end of their useful lives.

“By 2035, Australia is projected to generate one million tonnes (around 50 million panels) of solar panel waste,” Abdulrahman said.

He said a key gap was the absence of a nationally coordinated Digital Product Passport (DPP) framework to track products throughout their life cycles and support collection and recycling.

“A nationally coordinated approach to product transparency through DPPs will advance Australia toward a circular and regenerative economy,” Abdulrahman said.

RMIT said its researchers are examining how policy, industry and community stakeholders can contribute to managing clean energy waste and developing more circular approaches to materials.

Gajanayake will present the “2035 EV Battery Negotiations” on 3 October, while Abdulrahman will participate in an industry round table on material transparency on 15 October. Both events form part of RMIT’s Energy Futures events season, presented by the .

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Sydney pharmacists and sisters Sally Tadros and Cyndi Khawaja have won the Manufacturing category at the 2026 Australian Women’s Small Business Champion Awards, with their company Vitaceuticals recognised for its Australian-made health product range.

According to Vitaceuticals, the business developed from the founders’ work at Sydney compounding pharmacies, where they identified concerns among women using standard iron supplements, including nausea and stomach discomfort. The sisters subsequently developed a gentler iron formula before making it commercially available following demand from customers.

“We never set out to build a supplement company,” Vitaceuticals co-founder Sally Tadros said. “We set out to fix one problem for the women standing in front of us because nobody else was fixing it.”

Vitaceuticals said its product range has since expanded beyond iron supplements to include products targeting sleep, energy, heart, weight, joint and women’s health.

Co-founder Cyndi Khawaja said the founders’ pharmacy background continues to influence how the products are developed.

“Being pharmacists changes how you build a product,” Khawaja said. “We aren’t chasing the ingredient of the month. We ask what the evidence says, because we still think of the person taking it as our patient.”

The company said its products continue to be developed and manufactured in Australia, with production carried out to pharmaceutical Good Manufacturing Practice (GMP) standards.

Vitaceuticals reported that more than 100,000 bottles of its original iron formula are produced annually, while more than one million products across its range are sold each year. The company said its products are 100 per cent Australian manufactured.

Tadros said the award recognised the broader group involved in developing and growing the business.

“This award belongs to our team, families, pharmacy community and every customer who trusted us,” she said. “We are proud a product made for a handful of Sydney women is now made here for the whole country.”

Vitaceuticals is operated by Pharmacy Healthcare Pty Ltd and is based in Sydney. The company develops pharmacist-led health products, including MagZorb, with its products manufactured in Australia to GMP standards.

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