Top 3 Reasons for Australia’s Surging Food and Beverage Exports

Posted on 11 November 2015

Top 3 Reasons for Australia’s Surging Food and Beverage Exports

In this post, we will take a look at three of the most compelling reasons why Australia’s food and beverage manufacturers and producers are cashing in on exports surge.

In the State of the Industry 2015 Report, Gary Dawson, the Australian Food and Grocery Council’s (AFGC) CEO said that food, beverage and grocery processing make up about a third of the country’s manufacturing sector. Hence, it is encouraging to see that food and beverage exports are booming.

To recap the key facts included in the report,  the total international trade is up by 12 per cent in 2015, which translates to $61.7 billion in figures. This year, we also saw an addition of 3,183 new jobs or one per cent increase in direct employment both in rural and regional parts of Australia. 

All is well in the country’s export business. But why?

Upon investigation and careful consideration, here are the top three reasons for this year’s noteworthy export growth:

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  • US was plagued by drought this year which caused water supply problems and food shortages. Consequently, meat and other pre-packaged food exports to the USA grew higher in 2014-15. Since US suffered from dry spell, Australia increased its export market share in emerging Middle East and Asian countries.
  • Changing consumer needs and standards (partly because of the rise of the middle class in Asian regions) contributed to the increase in demand for safe, high-quality produce from Australia. Aussie-manufactured meat and dairy products appealed to Asian consumers who are are moving away from a carbohydrate-heavy diet to protein-based meals.
  • Free trade agreements with China, South Korea and Japan along with a dropping currency made Australian food and drink exports more attractive and affordable to our Asian neighbours.

If we keep this up, Australia can start shifting from a mining-dependent economy to an export-oriented economy. Dawson of AFGC said we needed to scale up and prioritise capital investment to maximise current and future opportunities in the exports industry. The earlier we use this information will to guide or direct the country’s investment decisions, the sooner we can expect fast economic progress.

Over to you: How important are food exports for our economic growth? Any thoughts on how we can take advantage of these opportunities?

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Sources: AFGC | SMH.com.au | Strait Times