News & Insights

Gallagher launches new Food Production practice

Published 12 October 2018

Gallagher has launched a specialist Food Production practice as the risks associated with the sector become increasingly complex.

With Australia cementing its position as a top 10 global foodie destination and growing demand for high quality produce to fuel the dining boom, Australian food production is big business. In 2017 consumer spending on food and wine by overseas visitors surged by almost 40%, creating an additional $6 billion of income for government coffers.

National Head of Food Production Stephen Elms explains further: “In the midst of growing demand for Australian produce, the risk associated with production and manufacturing is increasing and becoming more complex. From extreme weather impact, through to food sabotage, product recalls and environmental risks, there are a broad spectrum of risks associated with this sector.

“Gallagher has more than 20 years’ experience in the food, beverage and agribusiness space and our client portfolio spans SME and corporate organisations looking to build the appropriate risk mitigation framework inside their business."

Stephen Elms, National Head of Food Production 

Field to fork protection

“Put simply, our Food Production practice looks at the ‘field to fork’ concept from an end-to-end insurance and risk perspective – developing a comprehensive insurance program to manage the supply side consideration, through to reviewing the bolt-on manufacturing and production capability such as irrigators, and ensuring waste water treatment and engineering works are appropriately managed.

“More stringent labeling requirements and quality standards have led to a number of product recalls in 2018. Food contamination and the hazard of chemicals leaching into the soil and water supply are also a concern.

“The recent strawberry needle contamination scandal hit suppliers hard with good quality produce being dumped by the truck load. Aside from the material cost of lost revenue and the challenges of a mass product recall, one often overlooked aspect is the reputational disaster this creates for the supplier despite the issue not being of their making. Reputational risk is a growing concern amongst Australian food producers and is something we are regularly discussing with clients.”


Supply chain and warehousing

On the production and storage side, certain risks are being viewed with increased caution by underwriters, with some insurers backing out of the market altogether. For clients this can create an additional headache when coming to review their insurance program.

“In the transitioning market, harder to place risks such as expanded polystyrene (EPS) require an effective placement strategy and deep insurer relationships," Elms continued. "Where Gallagher differs from other brokerages is in that we deal directly with the underwriters to ensure the cover meets the specific needs of a business, rather than generic ‘wrap-around’ style coverage. I think this is important if you’re committed to getting the best outcome for clients.”

Talk to our experienced food production insurance experts

Specialised industry knowledge means a food production insurance expert can identify the potential risks presented by the processes involved as well as the roll-on effects, such as the need for product recall, and collateral damage, to reputation, for example, and formulate a risk management and insurance cover program accordingly.


Our team of food production specialists calls on the Gallagher legacy of 75+ years in servicing food production enterprises, which means that whether you are a primary producer, in processing, transit or grocery wholesaling, we have deep understanding of the risks associated with each step of the supply chain and how to manage and mitigate them. 


Connect with an expert


Further reading

Food production insurance and risk management expertise

Insurance market update: food production challenges from farm to table

Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective, and offer broad information about risk mitigation, loss control strategy and potential claim exposures. We have prepared this commentary and other news alerts for general information purposes only and the material is not intended to be, nor should it be interpreted as, legal or client-specific risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. The information may not include current governmental or insurance developments, is provided without knowledge of the individual recipient’s industry or specific business or coverage circumstances, and in no way reflects or promises to provide insurance coverage outcomes that only insurance carriers’ control.

Gallagher publications may contain links to non-Gallagher websites that are created and controlled by other organisations. We claim no responsibility for the content of any linked website, or any link contained therein. The inclusion of any link does not imply endorsement by Gallagher, as we have no responsibility for information referenced in material owned and controlled by other parties. Gallagher strongly encourages you to review any separate terms of use and privacy policies governing use of these third party websites and resources.

Insurance brokerage and related services to be provided by Arthur J. Gallagher & Co (Aus) Limited (ABN 34 005 543 920). Australian Financial Services License (AFSL) No. 238312



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