The Keys to Finding the Right Export Markets

Despite the economic impacts of COVID-19 on countries across the world, the demand for Australian organic products is growing rapidly. Australian Federal Government estimates show that export earnings are looking to reach record levels by the end of the 2020-2021 financial year, with figures showing close to AUD $300 billion. The organic industry has undoubtedly benefited from the growing trend towards the healthier attributes of organic food and a market that is increasingly concerned about the impact on the environment that their choices in food have.

COVID-19 Impacts on Exports

The pandemic was, and still is, a major consideration for exporters within the food and agribusiness sectors. One major change was the type of goods being demanded, with a focus on all-natural, betterfor-you and functional foods that boost general health and immunity. The other was a shift away from the products usually sold within hospitality (wine, seafood etc.) to foods that can be easily consumed at home.

Opportunities for Australian Organic Exporters

According to the Australian Bureau of Statistics, Australian exporters are more likely to be small businesses. These businesses tend to have a turnover of $700,000 with exports valued at $30,000. However, many of these businesses only have one export market and limited channels and customers within Australia, leaving them with nowhere to turn if conditions around trading suddenly change or cease.

Najib Lawand, Director of Export Connect, notes that exporters need to not only diversify into and across export markets but to generally have more customers to offset any risk of sales losses.

“Many businesses are dependent on domestic or export sales in a single offshore market, or on a small number of customers, increasing the risk being placed on small businesses.”

One challenge to opening new markets many small exporters currently face is that the more traditional ways of entering a new market – market visits and trade shows – have been placed on hold due to COVID-19 and travel restrictions around the globe.

So, how can Australian organic businesses navigate through it all?

Conducting extensive market research and analysing customers and competitors is the most important first step. Lawand says that knowing the economic, demographic, consumer, category and channel trends and growth prospects of a market is half the information you need to find the right export opportunities.

It is also essential to understand whether you have a unique selling proposition for an export market and must therefore know who your competitors are, how are their products packaged, what benefits do they claim, how do they look, and what is their price positioning.

In conjunction with Australian Organic Limited, Export Connect is hosting a webinar series that looks at a range of export markets, exploring consumer, channel and category trends in various countries. Webinars have already been conducted on Germany, Sweden, the UK, Singapore, Hong Kong and the UAE. View the Trade Organic website to learn tradeorganic.com.au