Food and fibre: capitalising on the market opportunities in Asia

Anthony PlummerTrade and Investment

Department of Economic Development

Food and fibre

Manufactures - ETM

Education

Tourism

Business services

Fuels

Manufactures - STM excl Nickel

Other merchandise

Transport services

Business travel services

Minerals

Government goods and services

0% 5% 10% 15% 20% 25% 30% 35%

31%

18%

13%

9%

9%

5%

5%

4%

3%

2%

1%

0%

Share of Victorian exports, 2013-14

Combined export value = $11.6 billion

Source: Australian Bureau of Statistics (ABS) catalogue numbers: 5368.0 and 5368.0.55.003

Victorian food and fibre exports

Impressive growthFive-year growth for key Victorian export commodities (A$ million)

4

Diversity is a strength

2.34

2.3

1.96

1.43

0.91

0.89

Meat

Dairy

Grain

Animal fibre

Prepared foods

Horticulture

2013-14 exports in AUD$ billion

South East Asia 22% -- $2.3 billion

• Meat 45% -- $379 million

• Dairy 36% -- $761 million

North Asia 8% -- $4.4 billion

• Meat 57% -- $772 million

• Dairy 16% -- $919 million

South Asia 10% -- $598 million

• Horticulture 118% -- $135 million• Dairy 82% -- $90 million

MENA(Middle East and North Africa)

14% -- $1.5 billion• Horticulture

148% -- $96 million• Grain

13% -- $511 million

Total exports 12% -- $11.4 billion• Meat

36% -- $2.3 billion• Horticulture

48% -- $894 million

Consistent growth in 2013-14

6

Competitiveness underpinned by productivity

Dairy productivity growth of at 1.2% per year over the last 30 years

Volume, and increasingly value…

A populous, diverse and growing market

... Growth in key markets is still relatively strong

11

... a big and growing ‘consumer’ class

0.5bn

1.3bn 1.7bn

3.2bnAsia

Rest of the world

Projected middle class populations2009 and 2030

2009 2030

Source: ANZ Greener Pastures; Kharas 2010

- Higher value, premium products (food service ingredients, baby formula)- Long-life/UHT and fresh milk- Leveraging world-class food safety systems

- Premium chilled cuts, especially in food service- Specific consumer requirements (e.g. Halal) and ‘co-products’- Leveraging world-class food safety and traceability systems

- Developing containerised (as well as bulk) supply- Tailoring products for specific markets (e.g. noodles in Asia, flat breads in the

Middle East)

- Fresh fruit e.g. citrus, table grapes, summerfruit and pome fruits- Nuts, especially almonds- Exploiting counter seasonal products - fresh and clean

- Retail-ready consumer products, convenience foods and health products- Luxury goods, including wine and specialty cheese

PREPARED FOODS, BEVERAGES AND WINE

HORTICULTURE

GRAINS

BEEF AND SHEEP

DAIRY

Key opportunities

Particular demand for protein…

1980 20100

5

10

0.5

5

0.5

3.5

SheepBeef

Consumption per capita

Kilo

gram

s

Relationships matter

…your consumers are connected

… and consumers want to know more

• About where their food comes from

• How its produced

• Who has produced it

• Shorter supply chains

• Connection with producers (agri-tourism?)

... Provenance matters to many consumers

Differentiation key

• Premium quality

• Reliability

• Product innovation

• Production/product attributes

• Brand

• Strategic partnerships

• Customer service

Bottom line: consumers expect food safety and quality Robust food safety regulation

• PrimeSafe• Dairy Food Safety Victoria• Federal Government

Well regarded biosecurity systems• Mandatory tracking of livestock through the

National Livestock Identification System

Industry quality assurance systems• Contemporary industry-led QA systems

20

Free Trade Agreements

Wine- 15% tariff on wine eliminated

immediately

Horticulture- Tariffs of between 8 – 24% on

cherries, almonds and dried grapes eliminated immediately

- 45% tariff on potatoes, oranges, mandarins, table grapes halved immediately, then phased out over 5yrs

Dairy- 36% tariff on cheese and

89% on butter eliminated between 13-20 years

- Growing duty free quota for cheese, butter, infant formula

Korea-Australia Free Trade Agreement

Grain- Growing duty free quota for

malt and malting barley

Red meat- 40% tariff on beef eliminated

over 15 years - 22.5% tariff on sheep and

goat meat eliminated over 10 yrs

Dairy- Duty free quota for cheese - Duty free access for protein

concentrates, lactose, casein

- New opportunities for dairy desserts

Japan-Australia Economic Part. AgreementBeef- 38.5% tariff reducing to

19.5% over 18yrs- Reducing to 23.5% over

15yrs for chilled beef

Wine- Elimination of 15% tariff on

bottled wine over 7 years- Tariff on bulk wine eliminated

immediately

Horticulture- Fast tariff elimination on most

fruits, vegetables and nuts

Grain- Duty free access for feed grains

Seafood- Duty free access for lobster,

shellfish, crustaceans

Sheepmeat- 12-23% – 8 yrs- 10% live sheep – 4 yrs

Skins and hides - 5-14% - 2-7 yrs

Horticulture and wine- Tariffs as high as 30%

eliminated over 4yrs

Grains- 3% tariff on barley and 2%

tariff on sorghum eliminated immediately

- 10% tariff on wheat gluten and malt eliminated over 4yrs

Dairy- Tariffs as high as 20%

phased out over 4-11yrs - 15% tariff on milk formula

phased out over 4 yrs

China-Australia Free Trade Agreement

Beef- 12-25% on beef – 9 yrs- 5% on live cattle – 4 yrs

24

Victorian Government

25

26

Avalon International Airshow 国际航展

Jean Paul Gaultier 让 保罗 · 高缇耶展White Night白夜节

AFC Asian Cup 亚洲杯足球赛

Australian Open 澳网公开赛Cadel Evans Road Race 卡德尔 · 埃文斯公路自行车赛

ICC Cricket World Cup板球世界杯Superbikes 世界超摩赛

Formula One Grand Prix一级方程式赛车

Festival of Racing 赛马节

Flower & Garden Show墨尔本国际花卉园林展

Fashion Festival 时装节

Food & Wine Festival 美食美酒节

Comedy Festival喜剧节

Chinese New Year中国春节15 Major International

Events15 个重大国际节庆活动

Sport运动

Culture文化

Arts艺术

Trade贸易

9 January – 29 March 2015

2015 年 1 月 9 日 -3 月 29 日

墨尔本的 80 天2015 年 1 月 9 日 -3 月 29 日

29