DO not underestimate the Middle Eastern and Asian appetite for Australian vegetables.
This has become an increasingly prominent message from industry experts as the vegetable sector continues to analyse the export opportunities created thanks to the signing of Free Trade Agreements with Japan, South Korea and China.
Also helping to buoy the potential for vegetable export increases are indicators from the United Arab Emirates (UAE) and Malaysia.
Industry body Ausveg has released a discussion paper entitled Exporting Australia’s vegetables to the Middle East & Asia: Market analysis and overview.
Ausveg economist Steve Razdan said the domestic vegetable oversupply could be re-directed overseas to growing markets in the Middle East and Asia, where there is an increasing demand for premium vegetables.
“The implementation of the Japan-Australia Economic Partnership Agreement (JAEPA) has instantly eliminated tariffs for carrots, broccoli and cauliflower, with many other vegetables having their tariffs reduced over time,” Mr Razdan said.
“There are opportunities to access international markets such as Japan by trading on the basis of Australia’s clean and green reputation and delivering high quality products.”
Japan is a leading export destination for Australian vegetables, accounting for almost 40 per cent of vegetable exports to Asia in 2013-14.
According to the discussion paper, Australia’s higher quality vegetables are prime for exporting, with a rapidly growing middle class in Asia and projected growth in the food sector in the United Arab Emirates (UAE) stimulating demand for a greater variety of vegetables.
“Growth in the food and hospitality sector in the UAE is forecast to increase by 20pc per annum through to 2018, so there are definitely opportunities to export more Australian produce to countries like Qatar, Saudi Arabia and the UAE,” Mr Razdan said.
Australian vegetable growers export about $18 million worth of produce to the UAE and $13 million to Malaysia per annum.
More than 60 vegetable growers met in Adelaide recently for a two-day symposium aimed at helping the industry capitalise on UAE and Malaysian export markets, currently worth a combined $31 million each year.
Ausveg is driving much of the excitement over the trade potential with the organisation’s national manager - export development Michael Coote saying both Malaysia and the UAE are currently in the top 10 destinations for Australian vegetable exports.
“However, there is a huge opportunity for Australian vegetable growers to increase their market share,” he said.
Mr Coote said the vegetable industry has invested significantly in research to understand these markets.
“As the Australian vegetable industry maintains its focus on significantly boosting exports, those growers who attended are now a step closer to capitalising on opportunities which are continuing to emerge in both of these markets,” he said.
“The forum was a great opportunity for growers to gain insight from current exporters, Austrade, the Malaysian Government and key members of the Malaysian and UAE supply chain.”
Seminar speakers delved into topics such as consumer preference, cultural considerations and networking opportunities for vegetable growers interested in starting to export or expand their existing base.
“There has been substantial growth in Australian vegetable exports to the UAE and Malaysia since the 2007-08 financial year, with exports to the UAE increasing by 41 percent and exports to Malaysia jumping by 38 percent,” Mr Coote said.
“Ausveg believes that developing vegetable export markets is critical to the future success and long term viability of the Australian vegetable industry.”
Ausveg is expected to hold further events throughout the year to encourage growers to consider exporting to international markets.
