CHINA'S economy might be slowing but its hunger for Australian citrus is not.
Citrus Australia hosted its 2016 Citrus Market Outlook Forum in Sydney last month where expert speakers delivered mostly points of hope for growers and exporters.
Australian citrus exports have enjoyed buoyant times in recent years with the industry exporting 205,000 tonnes of citrus in 2015, worth an estimated $280 million dollars.
Within that, China has become one of Australia's largest export markets.
International trade expert Laurie Smith told attendees slower growth of a larger economy is a positive sign for Australian exporters.
Mr Smith headed Austrade's international network for four years having also worked in Asia for 18 years.
“We’ve all seen or heard that growth in China is slowing and the economy faces challenging adjustments,” Mr Smith said.
“In fact growth is now only half of what it averaged during China’s boom years in the 2000s, but after 35 years of reform and fast growth, China is a now a very big economy.
“Even slower growth is a bigger deal today in terms of added size and increased consumer demand than faster growth - off a smaller base - was just 5 or 10 years ago.”
He said the take-off in recent years of premium consumption by a growing Chinese middle class was a major milestone in China’s economic development.
It was quality, not price, where Australia held the advantage, according to Mr Smith.
“Attitudes towards quality are also changing as consumers become more affluent. A 2014 survey found that product quality equalled product price as one of the two most important purchasing factors for 2/3 of online buyers," he said.
Recent Austrade research showed almost 2/3 of Chinese consumers say they are more likely to buy a product produced by an Australian company.
The Australian Bureau of Agricultural and Resource Economics and Sciences' (ABARES) agricultural commodities outlook for the March quarter this year forecast citrus exports to reach 200,000 tonnes in 2015–16, 20 per cent higher than in 2014–15, because of increased production of export quality fruit.
However it said in 2016–17 exports are expected to decline as production returns to average.
"Over the period to 2020–21, exports are forecast to increase in response to growing demand from Asian countries and the assumed level of the Australian dollar," the report said.
Other Asian economies were also shown within the Citrus Market Outlook Forum presentations as areas of potential growth markets.
Austrade business development manager, Vanessa Perez spoke on the Philippines' appetite for premium imported products, including Australian citrus.
In 2014, Australia exported 3533 tonnes of citrus to the Philippines, worth US$3.27 million.
She said the economic development has been driven by the expanding Filipino middle class, putting a growing number of people into the income bracket that can pay for premium, quality products.
Ms Perez said the Philippine market remains a net importer of key agricultural commodities, including citrus.
By 2030, 80pc of the Filipino population will belong to the middle class, while income per capita will rise from US$2800 to US$8500 in 2024.
Ms Perez said there is also a growing segment of those under 30 demanding quality healthy and convenient products. They are tertiary educated, aspirational and receptive.
“China and the US combined make up 80pc of the Philippines imported fruit trade, although Australian share is growing,” Ms Perez said.
Citrus Australia market access manager, David Daniels, said exporting to the Philippines was an Australian citrus success story.
It granted access in 2013 and trade has increased since then to more than 5000 tonnes in 2015, a rise of 37pc compared to 2014.
Mr Daniels also highlighted export growth of 60pc to Thailand and said it was a prime example of the benefits of a Free Trade Agreement.
