A new report is urging Australian governments to rethink how billions of taxpayer dollars are being spent on food, arguing that smarter procurement policies could deliver better health outcomes, greater sustainability, shorter supply chains and more prosperous farming communities.
Commissioned by the Macdoch Foundation and produced by Good Food Purchasing Australia (GFPA), the Transforming the Public Plate report – the first comprehensive national review of public food procurement – found that Australia’s public sector spends more than $2.13 billion annually (or around $6 million a day) on food for hospitals, aged care facilities, long day care centres and other public settings.
Despite this significant investment, the study suggests that the system is failing to deliver broader economic, social and environmental benefits, with the authors concluding that existing spending could achieve far more if guided by coordinated policy reform, clear standards and measurable targets.
The report identified a procurement model heavily focused on cost and scale, often favouring large multinational suppliers, which is limiting access for small and medium-sized producers, including local and First Nations businesses.
This is also contributing to the widespread use of lower-quality, often imported ingredients, prompting the authors to argue for a shift toward a more balanced, value-based procurement approach, one that considers not only price, but also nutrition, sustainability and local economic impact.
Core recommendations include the introduction of mandatory nutrition and sustainability standards across all publicly-funded food services, the establishment of legislated targets for local and sustainable sourcing, investment in regional infrastructure to support shorter supply chains, and improved transparency and accountability in procurement processes.
“Australia is spending billions of dollars every year feeding people in public institutions, but we’re not asking nearly enough of that investment. Too many public meals rely on low-quality, imported ingredients,” said Leah Galvin, Co-Lead of GFPA and report co-author.
“Too much of that taxpayer money is heading overseas to offshore and foreign-owned suppliers, and we have no national framework to drive improvement or ensure accountability.
“A different approach can increase the use of fresh, local produce, redirect spending to Australian farmers and producers, support the people working in public food service kitchens and generate real benefits for Australia.”
The report positions public food purchasing as a powerful but underutilised policy lever that could enable governments to drive systemic change without increasing overall spending by embedding broader criteria into sourcing decisions.
It points to a number of potential benefits, including improved health outcomes and reducing preventable chronic disease through greater use of fresh and minimally processed foods, economic stimulus via increased demand for Australian producers, stronger supply chain resilience through diversification and localisation, and reduced environmental impact by supporting more sustainable agricultural practices.
The report argues this could put downward pressure on the estimated $274 billion in annual hidden health, environmental and economic costs associated with Australia’s food system, while cutting food system emissions, which account for a third of Australia’s emissions.
The timing of the study is particularly significant as Australia’s food system and supply chains are at risk of breakdown due to the fuel crisis triggered by the ongoing war in the Middle East.
The report argues that shorter, more localised supply networks could play a critical role in improving national food security.
Public sentiment appears to support this direction, with polling cited in the report showing strong backing for healthier food in public institutions (83 percent), greater use of locally sourced produce (82 percent) and lower environmental impact in food purchasing decisions (71 percent).
At the same time, the report notes that Australia is lagging behind comparable international jurisdictions – such as Scotland, the UK, the EU and parts of the United States and Canada – where standards-based procurement frameworks have already been implemented to deliver better outcomes across health, sustainability and economic development.
“Better public food procurement is not about spending more, it’s about spending smarter. The evidence is clear, public support is strong and the solutions exist,” said Dheepa Jeyapalan, Co-Lead of GFPA and co-author of the report.
“Given the threat to our food system caused by the global fuel and fertiliser crisis, now is the moment for leadership.”
Galvin agreed, saying better outcomes are possible through smarter policy and standards.
“By supporting our public institutions and those that work in them to source and serve better food, we can deliver healthier people, stronger communities and a more resilient food system that is capable of withstanding shocks like the fuel and fertiliser crisis we are experiencing.”
The findings come as the Federal Government continues consultation on its national food security strategy, Feeding Australia, which is led by the recently appointed National Food Council and is expected in 2027.
“The development of a new national food security strategy is a once-in-a-generation opportunity to reset how this country thinks about our food system,” concluded Galvin.
“Public food procurement reform must be a central pillar of this strategy. The benefits are too compelling to ignore and it’s clear Australia is falling behind the rest of the world.”
