"The Australian food industry is evolving in response to consumer demand and increasing foreign competition and is an important component of the Australian economy, generating export income of $24 billion in 2004-05," ABARE's Executive Director Phillip Glyde noted when releasing the report.

"In an increasingly globalised trading environment, competitive pressures on food producers have sharpened significantly, driven by large multinational food manufacturers and supermarket chains," Mr Glyde said.

"However, globalisation has also created new opportunities for Australia's food trade, opening markets not only in the Asia Pacific region, but also in more distant countries and regions, and expansion in existing markets," Mr Glyde added.

The Australian food industry – performance and competitiveness report examines the structure and ownership of the food industry, patterns of food consumption, and factors affecting the competitiveness of this important Australian industry in a global context.

The report also provides insights into Australia's comparative advantage in food production and production trends within the food industry.

"One of the key findings of the report is that, despite its distance from major markets, the Australian food industry is performing above comparable industries in other countries," Mr Glyde said.