Page 18 - Food&Drink Magazine August 2019
P. 18
FOOD EXPORT
The right way, the right people
Choosing the right strategies to enter a market and the partners to do it with are important for exporting success. Export Connect’s Najib Lawand explains the different options and what could work for you. .
1EXPORT MERCHANT AT HOME
If you are a small enterprise, or operating in a small market, this may be a good choice. It is often simpler and less costly, as the consolidator sends many small quantities of mixed supplier’s products overseas together in shipment.
An Australian-based consolidator buys goods on behalf of overseas customers. They typically pay for the products in the local currency and arrange the shipping, documentation and clearance of goods to the overseas client.
2EXPORT AGENT AT HOME This is a good idea if you are new to export or negotiating contracts because an experienced agent may be more likely to negotiate a reasonable price.
An agent or agency based in the country of production seeks out and negotiates pricing and contracts with overseas customers on behalf of manufacturers. The contract is between the manufacturer and customer, and the agent often works on commission.
3AGENCY IN
FOREIGN COUNTRY
If you want to export in culturally diverse or distinct markets, this may be the right method. Overseas agents are invaluable where cultural and linguistic barriers might be very difficult. They can be a great support to begin the trade and relationship building.
The agent identifies a buyer and negotiates with both exporter and importer on prices and delivery details. Then the exporter ships the goods to the importer, receives payment
and pays an agreed rate of commission to the overseas agent.
4DIRECT EXPORT Direct export to an importer, wholesaler, retailer or distributor is typically used by medium to large sized companies. It requires a deeper knowledge of the foreign marketplace and normally follows a trade- discovery market visit or existing agency relationship.
18 | Food&Drink business | August 2019 | www.foodanddrinkbusiness.com.au
