Developing a sustainable export platform for

Australian seafood to China

Jayne Gallagher Manager Product and Market

Development

Agenda • Some facts and figures about the Australian seafood

industry • Detail some of the opportunities and challenges for

Australian seafood in China • Showcase Australian Wild Abalone program • Describe how this is building a sustainable export

platform to China – and touch on what else we need to do

• Key take home messages

Fun facts about seafood trade

Seafood is BIG Business

• Most commonly traded food commodity globally

• Globally trade is worth over US$100billion.

Fastest consumption growth • East Asia (from 11 kg to >30

kg) • South East Asia (from 13kg

to 30 kg). • Fish is at the heart of

contemporary and traditional Asian diets

• Fish provides 22% of meat protein

(Source: FAO, 2008 and 2010)

The quiet achievers

• In 2011-12, Australian seafood exports to China and Hong Kong were $465 million.

• Lobster ($303million) and Abalone ($130 Million) accounted for 93% of this

• Other products include oysters, prawns, tuna, crabs

Well established trade • China and Hong Kong have been

in the top 5 markets for Australian seafood for over 20 years

• Currently the biggest export destination.

• In 2010-11 China and Hong Kong was the destination for 61 % of total Australian exports for fishery products (ABARES, 2011, p22),

• a position expected to continue for the short and medium term.

Leading Australia’s Premium Positioning Australian Abalone and Rocklobster are the leading Australian premium food exports to China

Comparative Advantages • Australia produces more than 50% and

30% of the world’s wild abalone and spiny rock lobster respectively.

• Both industries are sustainably managed quota based fisheries (2012 Stock Status Report www.fish.gov.au),

• Harvested from a pristine environment, • Represent two of the Chinese, highly

prized, “treasures of the sea”.

Growth through brand value

• Australia has an excellent reputation in China for supplying quality seafood products.

• Want to preserve and protect this quality image and overall “Australian” brand.

• Need highly efficient and effective supply chains

Dover

St Helens

Strahan

Stanley

Launceston Int’l Airport

Hobart Int’l Airport

Airfreight is critical • In 2011–12, the value of

Australia’s airfreight food exports was $1.6 billion,

• $649m (40.1%) was fish and shellfish

• 89 % of total fish and shellfish exports were by airfreight

Australian Wild Abalone ™

AWA Opportunity

Exporter Importer Consumer

AWA ™ Program

Collaboration through supply chain

Establish Australia’s credentials

Educate and Differentiate

AWA™ Exporters

Be unified, be engaged and be patient

150 Attendees Importers, chefs, F&B Managers, Government &

Industry

Representatives and the media from Hong Kong,

Macau and Southern China

First screening of the Discover AWA™ Video! Now available on www.australianwildabalone.com.au and our YouTube

Channel

The credentials managed in collaboration between the government and industry was summarised in a video of interviews with Australian scientists Dr Patrick Hone and Prof. Colin Buxton. This video is also available to watch on the AWA™ YouTube channel

Giving credibility to our claims

Building a sustainable export platform

A legacy for others to use

Exporter Importer Consumer

Political Influence

Industry Influence

Market Intel Market Intel Market Intel

Developing partnerships

• Exporter driven • Trade Agenda established • Communications plan developed • Build understanding and create dialogue with Australian

government

Developing partnerships • Collaborative networks

between Australia and China

• Government and industry

• Benefit all value chain partners (exporters, importers, distributors, restaurants)

Building capacity

New Product Development

Processing improvements Added dewatering

step

Two take off conveyor belts

Building capacity

• Technical input to trade negotiations

• Rapid response to trade disruptions

• Emerging issues research

Building a sustainable export platform

What else do we need to do?

Waste reduction and utilisation

Underutilised species

Overcome the barriers to profitably utilise 25,000t of fin fish not caught (even though they could be)

Cold Chain optimisation

Chill chain/freezers

Overcoming tyranny of distance from catch to market

Port facilities

Transport links

DATA

Airfreight capacity Skilled staff

Communications

Technology

Key Messages

Leading the way in China

The Australian Seafood industry is a quiet achiever - leading the premium positioning of Australian food in China

Transferable lessons • Understanding the Chinese

palate and culinary arts

• How to engage technically and collaboratively introduce new technologies

• How to communicate and collaborate with culturally diverse partners on market development

Supply chain needs modernisation

It is a long and complex supply chain handling delicate products with many opportunities for things to go wrong.

Targeted investment is critical

Data gaps make it very difficult to target investment

We have made a start but much more needs to be done

Potential for partnership

Potential for partnership with other Australian seafood and food sectors that can benefit from the lessons learned and capitalise on the opportunities created.

Thanks!

Jayne Gallagher

Manager Product and Market Development