Last week at the 7th China International Import Expo, Avocados Australia signed AUD $300 million purchase agreement with Shanghai Huizhan. The organisation also signed a number of Memorandums of Understanding (MOUs) with key organisations to pave the way for future trade. It is now up to the Australian and Chinese Governments to determine the negotiation process and timeframe.
The Shanghai Huizhan International Trading Co. Ltd. is a multi-qualification import and export trade service platform enterprise invested and managed by Shanghai Huizhan Fruit & Vegetable Wholesale Market. The markets have committed to pre orders of AUD $300 million worth of avocados from Australian growers and exporters as soon as access is granted by the General Administration of Customs China. This unprecedented purchase agreement shows that Australian avocados are a valuable commodity and conducting negotiations for market access makes sense and would be in the best interests of both the Australian and Chinese Governments.
Avocados Australia also signed MOUs with JD Super, Joy Wing Mau and the China Chamber of Commerce of Import & Export of Foodstuffs, Native Produce and Animal By-Products (CFNA), China's fruit import and export association.
John Tyas, Avocados Australia's CEO, was delighted with the interest in Australian avocados and said, "It is clear that China is very keen to have access to Australian avocados and Australian growers and exporters are very keen to do business, we just need the technical market access," he said. "Given the tremendous support and demand for our avocados in China, reflected by the AUD $300 million purchase agreement and three strategic MoUs, we would be excited for the Chinese Government to have the option to assess our Australian avocado application."
Avocado exports to India
Meanwhile, avocado exports to India continue after access was granted earlier this year.
"Exports to India have started slowly, as expected. It is a market that will take time and patience to develop but we are confident it will grow to be a substantial market in time. We supplied 523t in the first few months of access," said Tyas.
Looking forward to the potential volumes for export next year, Tyas comments: "It is difficult to say, currently our Western Australia region is supplying and they have a much lighter crop this year. Queensland volumes are looking to be down next year as well.
He said that it is too early to comment on potential market growth as they still in the very early stages.
"Our tariffs are being lowered from 30% over five years to 0% by 2028. This is a significant advantage, although some countries have 0% tariffs now, coupled will much lower production costs."
With new export markets opening up and the planting of new trees virtually stopped he expects the pressure on the domestic market to lighten.
"Last year we produced 150,000t and we are likely to plateau at about 170,000t in a couple of years. As we continue to grow our export volumes, pressure on the domestic market should ease, although there is still room for further domestic growth as well."
For more information:
Anna Petrou
Avocados Australia Limited
Tel: +61 07 3846 6566
[email protected]
www.avocado.org.au