Page 16 - Food & Drink Magazine March 2021

EXPORT REPORT
✷ CHECKLIST FIRST STEP TO
THE US MARKET
SECURE YOUR IP:
Brand name, logos, domain names, social media handles.
COMPLETE MARKET RESEARCH: Who are your US customers? Where are they located?
UNDERSTAND INDUSTRY REGULATIONS: Importing requirements to the US and labelling requirements are good first steps.
DETERMINE YOUR DISTRIBUTION MODEL
ASSESS YOUR SUPPLY CHAIN: Ensure you can supply and deliver quality products on- time, every time.
REVIEW YOUR BUDGET:
Identify setup costs and ongoing operational costs and review regularly.
ENGAGE AN EXPERT:
Launching into the US is a major exercise so bring in experts to ultimately save time, effort, and money.
The next frontier for exporters
History and recent events have created great opportunities for Australian manufacturers to export the US. CEO of FD Global Connections Trena Blair writes.
AMERICANS are fascinated by Australia, our landscape, the people and our industry. In particular, they appreciate our naturally grown, premium food and beverage industry is regulated to ensure consumer wellbeing and food safety.
It is no surprise then, that when it comes to trade, the relationship between our countries is a benchmark for global trade relations. The US is our most important strategic ally and Foreign Direct Investor, established 15 years ago with the Australia-United States Free Trade Agreement (AUSFTA).
In 2020, United States Research Centre non-resident fellow David Uren said: “Since the agreement came into effect on 1 January 2005, the size of the investment relationship has nearly tripled, while two-way trade has also almost doubled. Total two-way investment amounted to $1.8trillion in
2019 – equal in scale to around 90 per cent of the value of the entire Australian share market.”
Australia’s food and beverage industry is in a unique position to capitalise on two pressing geopolitical factors: the COVID-19 crisis and trade tensions with China.
SAFE, CLEAN, HEALTHY
Australia has been applauded for its competent handling of the COVID-19 pandemic. Research by the Lowy Group found Australia ranked eighth globally as the most effective in the world. This has caught the
attention of our US partners, which was 94th.
Australian producers and exporters have a unique opportunity to capitalise on increasing demand from the US and leverage Australia’s brand – safe, clean, healthy.
At FD Global Connections, we have noted a spike in demand for health-conscious foods – drinks, meals, and snacks – especially those with immunity- boosting ingredients.
STRAINED RELATIONS
China is Australia’s largest trading partner with two-way trade reaching a record
$252 billion in 2019 and accounting for 27.4 per cent of Australia’s trade with the world. The trade relationship is underpinned by the China Australia Free Trade Agreement (FTA), which was established in December 2015.
While the FTA includes many industries such as miningand higher education, recent tensions between the respective governments have harmed exporters in the agricultural, and food and beverage industries.
For many exporters in these industries, China has been not only their largest customer but their only international market. Wine producers, lobster farmers, barley growers are all well documented in experiencing profit slumps due to current trade tensions.
While few believe adverse relations between China and
Australia will continue in the long-term given the inherent benefits for both countries, Australian exporters are experiencing significant financial challenges and need viable sustainable alternative international growth strategies.
EMBRACE DIVERSITY
Diversifying revenue streams is critical to business success and many exporters are now having to identify, rebrand and launch into new markets.
With the strong and stable trade partnership between Australia and the USA, exporters are encouraged to investigate new opportunities with our transpacific partner. See left/right for the checklist for your first steps.
Exporters in food and beverage, and agricultural are at the front line of the two crises, but the opportunity is plentiful as American consumers seek healthy and safe, food and wine products. The US is a viable, welcoming, compatible market for exporters, and where “Brand Australia” is opening more doorsthaneverbefore. ✷
✷ ABOUT THE AUTHOR
Trena Blair is the CEO of
FD Global Connections.
She works with
Australian businesses on
market entry strategies,
budgets, sales/business
development pathways and distributor introductions.
16 | Food&Drink business | March 2021 | www.foodanddrinkbusiness.com.au