A new report by the Australian Food and Grocery Council has found a Australia's food and grocery manufacturing sector shed over 4,500 jobs in the 2016-17 financial year.
AFGC says the cost of energy, transport, labour and drought are putting pressure on food manufacturers in the domestic market.
AFGC chief executive officer Tanya Barden says there is a 10% reduction in capital investment, a sign the industry could face an even tougher result this year.