The NSW Business Chamber is helping Australian SMEs break into the Chinese export market with its Export Growth China program.
A number of food manufacturers have already signed up to the program, from the Byron Bay Cookie Company and Rinoldi Pasta, to less known but still very successful businesses like AusChamp which manufactures high end tea, and Antonniou Fillo which manufactures filo pastry.
The Chamber has established a custom-designed warehouse in the heart of Shanghai’s international trading district. For a fee, the Chamber displays products and services from Australian SMEs and actively matches them with Chinese wholesale buyers, including helping them negotiate a trade agreement.
As part of the Export Growth China program, the Chamber offers a diagnostic tool – the Export Readiness Report – which helps uncover areas for improvement and identifies potential roadblocks which may hamper export success in China.
“NSW Business Chamber launched the Export Growth China program to reduce the risks and costs associated with exporting goods to China, and provide expert assistance to business owners who are ready to back the strength of their product internationally, but don’t know where to start,” said NSW Business Chamber General Manager, Paula Martin.
“We provide businesses with a low-cost entry point and essentially ‘hold their hand’ through the entire process; from determining whether they’re ready to export right through to facilitating trade agreements with Chinese wholesale buyers.
“We have already had a fantastic response from businesses across NSW and are currently filling our custom designed showroom in Shanghai’s international trading district with Australian products ready to be sold to Chinese wholesale buyers.
“Our staff on the ground in China will be proactively matching businesses with wholesale buyers and providing real-time feedback on how their products can be tailored to the Chinese market to ensure these hard-working Australian business owners have the best possible chance of success.
China has emerged as the world’s largest market for food and beverage and NSW Business Chamber’s market research suggests the following food products are most in demand in China:
- Seafood (particularly saltwater shell fish such as oysters, crabs and
- Live/frozen lobster and abalone)
- Baby formula and baby food
- Honey e.g. Manuka 500ml
- Olive Oil & Macadamia Oil
- Beef & Sheep meat from 72 Australian abattoirs approved by China
- Cheese, spreads, butter
- Milk powders, UHT and pasteurised milk
- Confectionery and snack products e.g. Chocolates
According to a trade report recently released by The Australian China Business Council, Export of agricultural and food products from Australia to China have risen dramatically since 2009.
Chinese demand for premium and high quality Australian food products, such as beef and other meat, has increased dramatically in the last two years. In 2013, Australian exports in beef to China increased nearly four times, oil seeds five times, and meat exports doubled year-on-year. Plans drawn up by China’s National Development and Reform Commission up to 2020 envisage strong growth in beef and lamb imports to cope with rising demand.
The export market for Australian dairy products is also set for strong growth. China is Australia’s top dairy export market with exports to Greater China (China, Hong Kong, Taiwan) increasing 40 percent in 2013 to 2.1 million tonnes.
Demand for Australian processed food is likely to increase as Chinese disposable income levels approach those in Japan and Korea.
Western Sydney company, Nova Spring Water, has already been through the export readiness assessment and their bottled spring water is currently being shipped to the Business Chamber’s Shanghai showroom.
Nova Spring Water founder Nitin Lotliker said the business is excited to be part of the Export Growth China program.
“Nova Spring Water really is unique; we make and fill environmentally safe bottles with clean, healthy, natural spring water and we are really excited about displaying our bottled water in China and the opportunity to grow our business overseas.
“Export Growth China has taken the stress out of the export process, and we’re really looking forward to working with the NSW Business Chamber team on the ground in Shanghai to find out what Chinese wholesale buyers think of our product,” Lotliker said.