NOTICE: Hard copies of the Australian New Crops Newsletter are available from the publisher, Dr Rob Fletcher. Details of availability are included in the
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Contributed to the Bushfood News, Issue 17, April/May 1999
By Winifred Bower
Published by the Australian Rainforest Bushfood Industry Association Inc
PO Box 6407
South Lismore NSW 2480
Telephone: 017 924 196
Facsimile: 02 6679 3019
Email: bushfood@bigfoot.com
Fiona Buffington, Senior Trade Commissioner, Austrade, United Kingdom asked 'What can I sell and who to?'
Trade opportunities for export to Western Europe and America have improved. There are European Union barriers to large exporters which are not necessarily obstructing small exporters. Those who ask: 'What do I have to do to get in?', and then get on and do it, succeed.
There are 15 EU countries plus Switzerland and Norway involved in western Europe. The common currency is the Euro. They are sophisticated, discerning customers.
They have a common agricultural policy and therefore access to EU directives is necessary. Austrade exists throughout Europe and can advise on regional and national characteristics. If you believe your product is world class they'll find an opportunity for you.
There is room for supply of fresh food in the counter season, though there is competition from South Africa and South American countries.
Unique niche products need world class packaging. Our best options are in the food service sector, eg. pre-packed, prepared mixes, fresh, functional, portion control or bulk for restaurants, etc.
Organics are in great demand in western Europe; they're paranoid about contaminants and genetic engineering, especially on top of nuclear and other pollution.
Supply Chain Management
Consumer/supermarket drive the chain. Suppliers must be aware of the whole chain and the part they play, and accept responsibility for that part. Quality, consistency and volumes are needed. Consolidators are needed from Australia to achieve the necessary volumes, which depend on what the product is and what market it's aimed at.
The UK are formal in meeting business reps for trade proposals. They require 2-3 weeks advance notice for interview to discuss proposals. Product that needs introduction or demonstration needs someone on the ground who knows the product and can do that. Air freight can be used for quick delivery (reassure contacts that distance isn't a problem).
To succeed your product requires a unique characteristic or to fill a gap, and must be visually appealing.
Convenience foods, ready prepared fresh meals for microwaving are very acceptable to today's consumers.
There are opportunities for vertical integration with EU investment into regional post-harvest infrastructure, for example cold room facilities, flexibility in packaging, varietal developments.
AQIS' Role in Export: What QA and inspections and certificates does the importing country require?
AQIS quarantines both imports and exports.Development and implementation of cost effective inspection programs that ensure that product is safe and wholesome. What, truthfully described, meets the importing country's requirements? There are various manuals available on request.
QA programs for Australian producers will become the norm. There are particular controls that other countries require to protect their primary productions from alien disease or pests.
Certificates after inspection must be arranged before export. There are particular packaging requirements, labelling, etc.
Web site: http://www.dpie.gov.au/aqis/homepage/aqishome.html
Email: qais.contact@dpie.gov.au
Telephone: 02 9364 7222
International Cargo Express
An international freight forwarder who works to get your product from the farm gate or processor to the retailer/ distributor in the importing country. Their broker will co-ordinate all the transport needed: sea or air, container or smaller. Will include distribution from arrival at importing country to wholesale/retail outlets contracted. Export freight is no harder than local, just slightly more cost. You need to have AQIS clearance and appropriate certificates in place and contracts for payment of your goods.
Web site: http://www.icecargo.com.au
Telephone: 02 9669 5733
Financial Risk Management to Overseas Trade
Choosing the appropriate payment method. The Commonwealth Bank has a very good Trade Guide for importers and exporters to answer questions you want answered before you consider exporting, and also questions you didn't know you needed answers to. It covers risks in international trade, foreign monetary exchange, documentation of shipments, methods of payment, and finance needed to cover the gap between production and final sale to consumer.
Complementary trade information: services for importers and exporters, government regulations, checklist for exporters and some sample documents.
To reduce risks, choose:
Make sure you build your export costs into the price of your goods.
EFIC (Export Finance and Insurance Corporation)
Their role: Negotiation with the customer and the bank regarding payments for you the exporter. EFIC works on guaranteeing you get the payments promised. Protection against not being paid due to overseas buyer or bank defaults, the overseas buyer or bank becoming insolvent, and the buyer refusing to accept exports. There may be problems with currency exchange or a blockage of currency transfer, imposition of import bans, war, riot or civil commotion.
Web site: http://www.efic.gov.au
Telephone: 1800 685 109
Legal Considerations for Exporting
Commercial consideration: Vienna Sales Convention applies when an international contract is made for things such as wool, coal etc. Negotiated by government rather than industry or producer.
The contract: the convention provides a default document.
Incoterms, sponsored by the International Chamber of Commerce, produces a body of standard shipping terms and conditions, used worldwide by the international trading community for incorporation in sales contracts. You can get the documents from the Internet.
Consider market entry options: Is it an advantage to manufacture or value-add onshore or offshore? Does the market provide fiscal or other incentives, eg tax breaks?
Any claims made by authors in the Australian New Crops Newsletter are presented by the Editors in good faith. Readers would be wise to critically examine the circumstances associated with any claims to determine the applicability of such claims to their specific set of circumstances. This material can be reproduced, with the provision that the source and the author (or editors, if applicable) are acknowledged and the use is for information or educational purposes. Contact with the original author is probably wise since the material may require updating or amendment if used in other publications. Material sourced from the Australian New Crops Newsletter cannot be used out of context or for commercial purposes not related to its original purpose in the newsletter
Contact: Dr Rob Fletcher, School of Land and Food, The University of Queensland Gatton College, 4345; Telephone: 07 5460 1311 or 07 5460 1301; Facsimile: 07 5460 1112; International facsimile: 61 7 5460 1112; Email:
r.fletcher@mailbox.uq.edu.au[
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