Australia wants to be a supermarket to the world.
As an export-dependent country shipping out 60 percent of its agricultural products, Australians are making a determined effort to make inroads into Asian markets, the Middle East and Europe.
That means not shipping out raw commodities.
“We have a real focus on adding value to that and getting out of the commodity business,” said Ian Longson, director general of the department of agriculture for Western Australia. He spoke at an international food symposium in Calgary March 15.
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Last year meat and grains dominated exports. Beef and lamb exports were $5.2 billion Cdn and grain sales totalled $4 billion.
Until now, Australia has been a low cost manufacturer promoting strong biosecurity regulations. There are no major animal diseases or plant pests. There has been no foot-and-mouth, BSE or Johnes disease.
However, Australia knows it cannot continue as a low cost producer because others are nipping at its heels.
Australia used to ship fresh produce to Asia but that business dropped 30 percent in the last two years when South America and China stepped in.
“The strategy to sit there in the commodity market will not pay off in the future,” Longson said.
That means giving customers what they want. An example is producing specialty wheat for noodles in Japan.
Pink Lady apples were developed in Western Australia and recently,
McDonald’s Corp. adopted this variety for its fresh apple snacks.
Hog producers are growing selenium-enriched pork for South Korea where it is believed to help reduce the risk of prostate cancer.
Australia has also started selling bulk milk to Singapore in specially designed Thermos tanks where the milk has been chilled to 4 C and travels for 10 days by sea.
Lupins commonly used for livestock feed are moving into the human food realm as a replacement for genetically altered soybeans. Researchers have developed a lupin milk to replace soymilk and found it works well in baked goods.
Much of this would not have happened without the national food industry strategy that formed in 2002 as an umbrella group for food companies and the government to approach markets and sell Australian-grown goods to the world.
“The experiment is to see if we can identify where we have shared objectives and if it can be done with government support and industry led,” said director Susan Nelle.
Individual companies have difficulty approaching buyers but this public-private partnership can help open doors to push Australian products.
“It is very difficult for individual companies to actually get any headway at all, but collectively, you are offering a portfolio of products and you are offering service that cannot be matched by any one company,” she said.
Through this strategy Australia approached buyers and chefs from hotels in Dubai to consider their products.
“First you have to find a partner who really needs you, that is willing to invest and make a commitment,” she said.
A pooled marketing strategy was delivered in Singapore and work is ongoing in the United Kingdom. India may be the next stepping stone.
The strategy is funded with public dollars and once in the market, the commercial partners take over.
