Australia's $126 billion food and grocery sector, under pressure from rising energy costs and keen to reduce its reliance on supermarket giants Woolworths and Coles, is exporting more to the US and China.

And with Woolies and Coles spending billions of dollars in recent years cutting grocery prices, food producers are keen for foreign retailers to invest heavily in Australia. The world's biggest online marketplace, Amazon, and German discount department store Kaufland are the most likely candidates.

New Australian Food and Grocery Council Chief Executive Tanya Barden Credit:Ryan Stuart

Tanya Barden is the new boss of the Australian Food and Grocery Council, which represents packaged food, drink and grocery manufacturers.

She said the domestic market for food producers was "very competitive", with years of price falls at the checkout and skyrocketing energy costs creating skinny profit margins.