News : New Zealand-based food processor systems company Milmeq has secured a contract from the Australian Agricultural Company , according to Food Business Review. The contr act is worth a reported US$21mn and will see the company provide processing equipment for the Australian firm ' s facility in Livingstone Valley in the Northern Territory. Work on the project is expected to commence by the end of October, for completion sometime after mid-2014.
BMI View: Recently released economic data suggest that the slowdown in economic activity in Australia is becoming increasingly evident. We maintain our outlook for real GDP growth to come in at 2.1% in 2013. We believe the job market will remain in a dire shape, while households will continue to struggle. This will weigh on private consumption, in turn negatively affecting food and drink consumption growth. Retail sales also will very likely remain subdued. Even if economic conditions take a turn for the better, the shift of consumption habits towards private labels in Australia is likely to remain firmly entrenched over the coming years as a growing number of consumers acknowledge private labels as a very compelling alternative to proprietary branded goods.