Reg Clairs, a former boss of Australian retailer Woolworths, has warned that the survival of the country’s food manufacturing industry could be in danger due to retailers’ command of the supply chain.
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In a television interview, Clairs, who headed Woolworths between 1993 and 1998, said that retailers have taken more control of the supply chain in recent years. The result, Clairs told ABC-TV’s Four Corners program, was that global manufacturers are squeezing smaller suppliers out of business.
Clairs predicted that in Australia local manufacturing could disappear in 10-15 years, if the situation goes unaddressed.
“Globally, we are seeing the growth of the majors and unless we are able to build a food manufacturing business in Australia that is sustainable, then ultimately the global manufacturers will take the power base,” he said during the interview.
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