Growing demand for agricultural produce in South-East Asia.
One of our fastest growing markets is ASEAN (Association of Southeast Asian Nations), a group of 10 nations that includes Brunei, Cambodia, Indonesia, Lao, Malaysia, Myanmar, The Philippines, Singapore, Thailand, and Vietnam.
ASEAN’s food and fibre processing industries are growing and are an important part of the global processing supply chain. This has increased demand for inputs, such as cotton. In 2021-22, Australia exported a record $1.57b of cotton to ASEAN. The 2021-22 record will be easily surpassed in 2023, as stored bales from previous seasons continue to be exported.
In the ASEAN region, Australian barley is being used for a variety of ways, including in food processing, beer production, and as specialty animal feed. Demand for alcohol and meat will continue to rise in the region, creating more opportunities for malting barley and animal feed.
Australian seafood and wine exports to ASEAN have increased by $490 million since 2018-19. That represents an increase of 80%. Seafood exports have been driven by increased salmon production in Australia and the diversification of rock lobster exports.
Exports of Australian wine to most ASEAN markets has increased. Prices for Australian wine in the ASEAN markets are 3 to 4 times higher than in the USA or EU.
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China Signals Thaw in Wine Tariff Stand-off
A meeting last week between Penfolds managing director Tom King and the Chinese peak industry body, the China Alcoholic Drinks Association (CADA) showed evidence of a thawing of the trade relations that caught Australia’s wine industry in the crossfire, with Beijing imposing tariffs on our wine ranging from 116% to 218% in 2021.
As we reported recently, Australia’s trade relationship with China has been undergoing a reset. Mr King and his delegation were warmly greeted by officials at CADA, including its executive director, Wang Qi. Mr King’s trip will be followed by Treasury’s CEO Tim Ford. Mr Wang said during the meetings that CADA would act to protect Penfolds and other Australian winemakers from counterfeit wines that are prolific in China.
Exports to Singapore get a digital boost
Australian exporters will see faster export documentation and easier access into Singapore’s markets, as certification between Australia and Singapore moves towards paperless trading.
A/g Deputy Secretary Nicola Hinder PSM said Australia and Singapore committed to the Digital Economy Agreement in 2020, collaborating on digital trade to benefit our agricultural and food industries.
“Using electronic export certification (eCert) means the relevant information is sent directly to overseas government agencies almost instantly, allowing for quicker clearance times so producers can get their goods to market faster,” Ms Hinder said.
“This results in less time waiting on a rubber-stamp for paperwork, a reduction in fraudulent behaviour and easier record keeping. Singapore is our largest trading and investment partner in the ASEAN region, and this step is confirmation of the openness, collaboration and trust between our two countries. Australia is at the forefront of digital trade. We have already moved to a paperless eCert exchange with the EU and we’ve worked with our key trading partner, Singapore, to do the same.”
Read the full article HERE.
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