Exports grow as agribusiness strategy ripens

Business Asia, August 30, 1999 by Peter Hansford

PETER HANSFORD(*) explains efforts to promote Victoria's thriving agribusiness exports

In 1998-99, at least A$25 million of new agribusiness exports from Victoria was generated as a direct result of the market-driven focus provided by the Agribusiness Initiative.

Established in 1995, the Agribusiness Initiative supports further growth of the State's agrifood industries, with particular emphasis on new industry development and exports.

Activities include assessing markets and trade opportunities, and providing advice to producers, agribusiness and overseas buyers.

The benefits of the initiative's efforts in developing relationships and promoting Victoria's agribusiness capability went to a broad range of industries and regions across the State.

The Victorian pork industry, for example, now accounts for half of Australia's new chilled exports to Singapore. This new trade is worth A$65 million a year to Australia, with the potential to grow more than A$200 million a year.

The Agribusiness Initiative helped by identifying key buyers, arranging visits and fostering company-to-company linkages.

For the dairy industry, the initiative's efforts in matching overseas buyers with Victorian food suppliers resulted in additional direct export trade to Singapore, Korea and Taiwan in 1998-99.

Current negotiations are expected to see new export opportunities worth at least A$3.2 million next year. The dairy industry has also benefited from A$1 million of frozen cream exports to Korea.

Visits to Victoria by Singapore buyers have resulted in gourmet tomato exports worth A$1.5 million and a similar amount in direct fresh food exports to the Shop n' Save supermarket chain.

Between 1991-92 and 1997-98, food exports from Victoria rose dramatically from A$2.1 billion to A$3.8 billion. The State Government has now set a target of A$12 billion in food exports by 2010.

The Agribusiness Initiative team consists of trade development officers who focus on overseas market development and a network of regional marketing officers who consider marketing initiatives within regions.

Eight of the top 12 export markets for Victorian food are in Asia and the initiative drives activities in key markets to generate maximum impact.

Under the newly established Growing Horizons initiative, market development is likely to be increased in key areas such as Japan and expanded beyond Asia to the United States, the United Kingdom and Europe.

Market information obtained through meetings with Asian retailers, buyers and industrial users is communicated through the agribusiness chain.

The Agribusiness Initiative also supports the establishment of cooperative research and development agreements with other countries to increase product development capability and relevance to key export destinations, and the development and operation of agribusiness forums throughout Victoria.

(*) Peter Hansford is manager of the Agribusiness Initiative in the primary industries division of Natural Resources and Environment in Victoria.