With the stabilization of China-Australia relations, the Australian avocado industry, led by Avocados Australia, is keen to explore the Chinese market, recognizing its significant potential for their produce. In late August and early September, a delegation including John Tyas, CEO of Avocados Australia, undertook market research in China, focusing on Yunnan and Guangdong provinces. Their mission aimed at advancing discussions on quarantine and access for Australian avocados, with Tyas highlighting the exciting prospect of avocados' incorporation into Chinese cuisine, notably the Peking Duck dish.
Efforts to gain market access have been ongoing since 2013, with Avocados Australia engaging at the China Fruit and Vegetable Fair in Beijing and collaborating with Chinese importers to gauge market opportunities. This initiative comes at a time when China's avocado import volume has surged by 310.47 percent since 2015, reaching 65,600 tons in 2023, with a trade value increase of 234.99 percent to $106 million. With current imports at almost 70,000 tons annually and expectations to rise to 100,000 tons, the Chinese market represents a substantial opportunity for Australian avocados, potentially capturing 50 percent of the market, estimated to be worth A$300 million.
Amid improved China-Australia political relations, Australian exports of various products have begun to recover. Notably, in March, China announced the end of anti-dumping duties on Australian wine imports, followed by the cancellation of the import ban on five major Australian beef producers in May. These developments, alongside the recent strategic economic dialogue held by Australian Treasurer Jim Chalmers in China, underscore the warming bilateral ties and the promising outlook for Australian agricultural exports, including avocados.
Queensland, the home of Avocados Australia, accounted for 65 percent of the country's total avocado production in the fiscal year ending September of the previous year, underscoring the state's pivotal role in the industry. The re-engagement with the Chinese market is driven not only by economic interests but also by a strong belief in China's economic prospects and business environment. However, the industry faces challenges in re-cultivating the Chinese market and customer base, given the competition from other countries during the period of strained political relations.
The current thaw in China-Australia relations offers a conducive environment for the Australian avocado industry to make significant inroads into the Chinese market, leveraging the comprehensive strategic partnership between the two countries. With both nations viewing each other's development as mutually beneficial opportunities, the Australian avocado sector is poised to tap into the vast potential of the Chinese market, aiming for a win-win outcome for both Chinese and Australian stakeholders.
Source: Global Times