Exporters eye Japan for growth
JAPAN is emerging as a country showing real interest in Tasmanian produce, says a report on opportunities in Asia.
ANZ regional business banking executive for Tasmania, Chris Sparks, said the bank’s Opportunity Asia report showed rural and regional businesses could be the key to unlocking forecast revenue growth of $138 billion for Australia’s economy through expansion and export into Asia.
“Japan is an interesting market, for example Tasmanian oysters are being supplied into Japan. Hazelnuts and honey are other products in their infancy exporting into Asia,” Mr Sparks said.
“Dairy, followed by cherries, apples and beef are four sectors moving quite quickly.”
He said local milk prices were slowly bouncing back.
“There is no doubt recent step-ups in farmgate milk prices have made a significant difference to help farmers break even and international demand will slowly increase.
Mr Sparks said the ANZ’s view was that the market would stabilise quickly.
China remains the No.1 priority for 76 per cent of regional enterprises across Australia.
“It’s not hard to see why when we consider the average annual growth rate of food and beverage imports into China is forecast to increase by 20 per cent per year until the end of the decade,” Mr Sparks said.
“To ensure market share in China and other Asian markets, regional businesses must remain agile, thereby increasing their capacity to cater for growing offshore demand.
“Key to their considerations will also be their future investment needs and potentially different or alternative funding options.”
The report surveyed more than 1000 Australian businesses on sentiment around international growth. The results highlighted that trade into Asia from regional businesses has increased 85 per cent in the past eight years, outpacing metropolitan enterprises.
The report forecasts the majority of Australia’s export growth over the next 10 years will come from regional Australia, with agriculture set to be a significant player.
ANZ general manager for regional business banking Christine Linden said the agricultural sector was important for Australia’s growth.
She said the report showed a majority of agribusinesses considered doing business in Asia an attractive option and planned to expand their business into Asia.