The funding, part of a wider AUS$1.4bn (€849m) industry programme, was welcomed by representatives from the country's food industry as a vital measure in maintaining competitiveness within the sector.

Just last month, a government report found that the industry needed to adapt to the challenges of exporting to growing markets in Asia to maintain its competitiveness in the region.

Dick Wells, chief executive of the Australian Food and Grocery Council, welcomed the investment from government's Food Innovation Grants (FIG) programme as a significant step in meeting demand for specialised products in both domestic and foreign markets.

"By announcing ongoing funding of the FIG programme, the government is continuing its commitment to a vibrant and innovative food manufacturing sector remaining within Australia," he stated. "Companies will continue to respond to the challenge of innovation thrown up by consumer expectations,"

FIG has already funded 79 projects in the country designed to improve innovative food production techniques. The total funding so far amounts to AUS$45m (€27m), not including the new sums.

According to Wells, these investments have also been matched by the industry, which has invested AUS$60m (€36m) into research and development projects.

The investment could be timely according to recent findings by the country's Ministry for Agriculture, Fisheries and Forestry.

In a report the ministry stressed that Australia's food and beverage companies will have to adapt to challenges in the region's lucrative emerging markets.

Rapid developments in Asia's retail markets and an influx of overseas companies and outlets are expected to make the market for exporters increasingly competitive in terms of price and quality.

Growing competitiveness within the region is likely to step up pressure on companies to create more innovative products and cut costs.