A FORMER Chief Minister of the ACT and food industry lobbyist has been named the new head of one of Australia's biggest business groups.

The Australian Chamber of Commerce and Industry on Wednesday named Kate Carnell as its new chief executive, due to start this May.

Ms Carnell, a former pharmacist and chief executive of the Australian Food and Grocery Council, was also awarded an Order of Australia medal in 2006.

ACCI executive chairman Peter Hood said in a statement her experience in the small business sector, politics and industry association skills would be "instrumental" in her new role.

Ms Carnell will take over from the chamber's former CEO Peter Anderson, who held the reins for more than a decade before announcing his departure last year.