Dynamic Export

Australia’s horticulture export industry is a well-established and long-running enterprise featuring a diversity of products second to none. Everything from cherries to cut flowers is sent offshore to fill demand in an increasingly consumer driven world. Horticulture is the fastest growing sector of agriculture in Australia—larger than dairy and wool combined—with a farm gate value of $9 billion.

Horticulture Australia Council CEO Kris Newton says although 180 horticulture commodities are exported, the sector is still a relatively small export market by Australian standards.

Maxwell Summers, CEO of the Australian Horticultural Exporters Association, says the industry exports to all major global markets but primarily Asia, which takes 65 percent of our horticultural exports. This is based on a long-standing relationship and proximity to our northern neighbours.

With world population growth continuing to escalate, there’s a growing demand for food but it doesn’t automatically equate to a growing demand for our horticulture products.

There are many hurdles for those in this diverse industry, and making inroads into international markets can be time consuming, costly and complicated.

New exporters

Tim Reid, chair of the newly formed Office of Horticulture Market Access, says simply having a product is not enough to qualify you for entry into the ranks of exporter. “Horticulture market access to a foreign country has to be negotiated on a national government to national government basis,” he says. “Our organisations cannot just go overseas and negotiate with international governments for market access to be granted for our products. We have to work through the Australian government and mainly through Biosecurity Australia.”

And even then it’s not easy. The red tape and negotiation can take years or even decades.

But Reid says there are fundamental criteria and risk assessments that potential exporters need to consider. Is there an international market for your product? Are you able to supply it? Do you have the ability to increase production to meet an increase in demand? Do you have quarantine issues? Are you in a fruit fly free zone?

Horticultural exports are often developed on a regional basis, rather than looking at individual cases, so it is a good idea to know what local producers are doing.

Summers says it is a difficult time for those wanting to get into the export side of the industry. “All of the markets are still in recession, prices are still depressed,” he explains.

However, if you are particularly keen to give it a try he recommends finding high quality products and advises you find importers you can do business with, as it is essential to have a partner you can trust.

Existing exporters

While government negotiations are crucial to the industry’s exporting success, Reid recommends developing commercial relationships to help support this. Negotiating on an industry-to-industry level can mean you have someone “pulling for you on the other end”. They can then help lobby their governments to give your products priority and hopefully speed up the process.

While fruit, vegetables and plants are the most prominent aspect of horticultural exports there are an increasing number of plant breeders who are successfully exporting their intellectual property.

Doug Waterhouse, chief of Plant Breeders Rights at IP Australia cites the example of the Western Australian grower who bred the Pink Lady apple. The breeder registered the apple under the Plant Breeders Rights in countries around the world, so any growers who want to grow the variety need to buy a license. “Pink Lady is, or is about to become, the most popular apple in the world,” Waterhouse says. “Every market that you see overseas has Pink Lady in it.”

Waterhouse believes there are a growing number of opportunities to sell intellectual property in markets around the world, but particularly in developing nations where they are still using varieties dating back decades instead of more cost effective modern varieties.

Mark Lunghusen, managing director of Outback Plants and World Select Plants, says it is essential to know your market and be known in your market. Regularly visiting your business partners and the regions you want to sell into is essential to continued success and developing new international markets. It’s about building and maintaining relationships and ensuring you have a regular presence in the market, he says. If you become complacent, someone will quickly take advantage of you.

Being unique is also an advantage, according to Summers. “You need to promote some kind of brand that your importers and other importers will recognise.”

Reliability, credibility and after sales support will go a long way to developing your reputation and help cement relationships.

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