A new report has highlighted the potential for future growth of Australian horticulture in Southeast Asia.
The Federal Government held an inquiry into 'Trading North' which looked at the role of Australian agriculture in the region's markets, and two prominent industry bodies, AUSVEG and National Farmers Federation made significant contributions to the report.
According to the Australian Department of Foreign Affairs and Trade, the exports of fruit and nuts to Southeast Asia in 2023 was $635,093,000 up from $589,628,000 the previous year, and it was a similar story of growth across the entire agriculture sector.
"Over recent decades, the relationship between the agriculture industry and our Southeast Asian partners has grown strongly," NFF President David Jochinke said. "Over the past five years, Australian agricultural exports to Southeast Asia have almost doubled, reaching $17.2 billion in 2023. Currently, around 23 per cent of all Australian agricultural exports are sent to the region. However, the relationship is much broader than just trade flows, encompassing interpersonal relationships and capacity building, cooperation on addressing shared challenges such as biosecurity, and working together to address food security."
In the report, AUSVEG added that 38 per cent of Australia's fresh vegetable exports go to Southeast Asian countries, with Singapore and Malaysia accounting for 27 per cent of trade. Carrots, potatoes, brassicas, onions, cucurbits, and leafy greens account for the majority of vegetable exports. The peak body also noted that it was not surprising that those two are the biggest markets given they are both non-protocol and and relatively open to Australian fresh produce.
AUSVEG saw scope for collaboration and strategic partnerships to enhance the agricultural value chain, such as investments in cold chain infrastructure, logistics, and biotechnology could improve the quality and safety of food products across as well as collaborative agricultural research and policy-making could address shared challenges.
In its submission to the House of Representatives Standing Committee on Agriculture, AUSVEG also called for "increased regulatory cooperation, including harmonising standards, making it easier for Australian products to enter and compete in these markets... harmonising Sanitary and Phytosanitary (SPS) measures would increase the export potential of key markets such as Indonesia, Vietnam and the Philippines, but additional work needs to be done to facilitate greater trade opportunities and reduce non-technical barriers".
The peak body added: "Australia serves as a reliable supplier of a wide array of vegetables that fill crucial gaps in local production, especially during periods of shortage due to seasonal variations or agricultural constraints in the region, thereby strengthening Southeast Asian food security".
The Trading North report also acknowledged that Australian food exports diversified sources and enhanced Southeast Asian food security, especially given the region's susceptibility to food security challenges.
One of the inquiry's objectives was building on the Moore report titled "Invested: Australia's Southeast Asia Economic Strategy to 2040", looking at the nation's relationship with the region at an economic level. It highlighted a range of opportunities for the agriculture and food sector, including, demographic change and market growth stimulating demand for premium agricultural products, opportunities for two-way investment in agrifood supply chains to supply global food markets, technological advancements that offer partnership opportunities to develop the region's agriculture sector, and an emerging opportunity to supply premium-quality Australian Indigenous agricultural products.
The committee also recommended that agriculture be promoted globally under a unified national brand that emphasizes quality, safety, and sustainability, by strengthening the 'Brand Australia' initiative to associate Australian products with quality and reliability, enhancing their appeal in Southeast Asian markets.
"The 'Team Australia' approach is one the NFF has championed to our international partners many times, and we welcome the confirmation that when commodities work together, it pays dividends, including in the area of sustainability," Mr Jochinke said. "The report highlights just how important it is for Government and industry to invest in long-term relationships. The NFF looks forward to continuing to grow our industry's relationship with Southeast Asia."
Meanwhile, the report also addressed the organic agriculture sector which faces a number of unique challenges in achieving market access including stringent and often market-specific entry requirements, a lack of market-specific information and a lack of organic-specific expertise among government agents in-market. In its submission, peak body, Australian Organic Limited noted that the current domestic framework for organic agriculture was 'out of step with OECD standards' and that Australia needs to implement a system that includes a consistent definition of organic domestically, to avoid potential market exclusion.
In total there were 28 submissions made to the inquiry, with the committee making 13 recommendations in addition to supporting the previous recommendations of the Moore report.
"The Moore report emphasised the significance of Australia's relationship with Southeast Asia at an economic level, but urged us to look beyond trade to a broader and more closely integrated relationship with the region, Committee Chair, Meryl Swanson said. "Australia has an important role to play in the food security of Southeast Asia through food exports and by building agriculture and food production capability in the region. Australian technology and production systems also have much to offer the region. Long-term investment in regional relationships will be vital to progressing both trade and regional collaboration."
To read the full report, click here.
Meryl Swanson
Standing Committee on Agriculture Chair
Phone: +61 2 6277 4500
[email protected]
Website: click here
National Farmers Federation
Tel: +61 (02) 6269 5666
[email protected]
www.nff.org.au