Export Facilitators Project update

BY MANUS STOCKDALE EXPORT DEVELOPMENT PROJECT LEAD, VEGETABLESWA

The Export Facilitator Project aims to help vegetable growers to get started exporting their produce to overseas markets. The project provides practical assistance to growers to help them identify opportunities in export markets and understand what is involved in exporting.

3 THE initial impact on Australian exports were related to the COVID-19 shut down in China which virtually brought the ports in the country to a standstill. Manus Stockdale is the Export Facilitator at vegetablesWA and usually he is out visiting growers to discuss export opportunities and how they can get involved in export but with the COVID-19 situation things are a bit different! While travel is a bit limited, Manus is still available to support growers remotely so if you have any issues with export or would like to know what is involve please get in touch.

Impact of COVID-19 on exports

The COVID-19 situation has had a dramatic impact on many aspects of our lives and the global economy over the past few months and vegetable exports have not escaped unscathed. The initial impact on Australian exports were related to the COVID-19 shut down in China which virtually brought the ports in the country to a standstill — imports weren’t clearing through the ports and there were almost no exports. This meant that apart from the problem of a back log of Australian and other countries products waiting to get into China there were no shipping containers being returned into the global market which led to shortages all over the world. In Western Australia there is a significant imbalance when if comes to the import and export of food products in refrigerated shipping containers, or reefers as they are known as. Approximately 25 reefers are exported from WA for every full one that is imported from overseas and therefore there are a large number of empty containers that need to be shipped back to Fremantle from markets such as China and Singapore. During the shutdown in China this return of empty reefers was not happening so there was a period of time when there was shortage of containers available in WA. There were also some disruptions to shipping timetables but services out Fremantle have pretty much got back to normal over the past few months. The major impact of COVID-19 on exports has been the massive reduction in air freight capacity. When Australia closed its borders in late March and the majority of passenger air services stopped flying to Perth, almost 95% of the air freight capacity was lost — this is because most of Australian air freight is carried in the holds of passenger flights rather than on dedicated freight planes. Almost overnight there was virtually no freight space and what was available was up to seven times more expensive than the rates that exporters normally pay. While all exporters were reeling at the sudden jump in freight prices vegetable exports were particularly badly affected as there is very little margin on vegetable products to adsorb the additional costs as compared to high value seafood or meat. Fortunately, at the peak of the of exporters can work with their freight disruption to freight, Australian forwarder to arrange ‘blocks’ of 10 domestic demand for food surged tonnes of freight or even whole charters and adsorbed the product that had and apply to IFAM for these to be been intended for export. As the supported financially. The IFAM team are weeks progressed more chartered encouraging industry to work together to freight services became available and achieve the best outcome for Australia the Australian and WA governments and maximise the efficient use of the announced programs to assist food available funds so that our presence exporters by offsetting the increased in export markets can be maintained. cost of freight. For more information please go to The International Freight Assistance Mechanism www.austrade.gov.au/news/news/ international-freight-assistancemechanism or call Manus to discuss. In early April, the Australian Government announced the $110 million International Freight Assistance Sea freight: an alternative to air freight? Mechanism (IFAM) as a temporary Western Australia has a distinct measure to help restore critical global advantage over other Australian supply chains which had been heavily states due to our proximity to key impacted by COVID-19 containment Asian markets so during the COVID-19 measures around the world. IFAM situation with high air freight has a dual purpose, to enable prices it may be worth looking essential imports such as medical supplies and to support the export of high-value agriculture and fisheries products. A network of 15 freight forwarders and air freight IFAM supports the export of highvalue agriculture and fisheriesproducts. at sea freight options for vegetable exports. With shipping times from Fremantle to markets such as Singapore of 5–8 days, sea freight may be a viable opportunity for some service providers was of the product lines that are been established to support usually air freighted such as the delivery of the IFAM which is broccoli and sweet corn. Obviously administered through Austrade (see getting the product to the customer in Figure 1). Exporters can access the excellent condition with sufficient shelf scheme by registering online and life is the priority and so having a good then working with their usual freight understanding of the ideal storage forwarder or one of the IFAM network temperature, handling requirements providers. There are a number of and maximum shelf life is important. different ways freight can be arranged In 2016 Hort Innovation funded through IFAM; there are subsidised the development of an Australian scheduled flights which are listed on the handbook of Postharvest management IFAM web page or exporter or groups of vegetables.

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3 AUSTRALIAN vegetable display at overseas trade show.

More information is available at Asia Fruit Logistica has been www.postharvest.net.au or get in touch rescheduled to late November 2020 in with Manus at vegetablesWA if you’d Singapore, however, it is not certain like a hard copy of the book (limited that travel restrictions will have copies available). lifted by then and even if they have If you don’t have the volume of product or the orders to fill a whole shipping attendance is likely to be much lower than usual. container on your own there are The question is, if you can’t travel to opportunities to utilise a freight export markets how can you identify forwarder to consolidate new export opportunities? Well your consignment with one option is to speak to other other shipments they have going to the destination or you could speak to another local exporter that you may be able combine shipping Asia Fruit Logistica has been rescheduled to late November 2020. exporters that you know in Australia and ask them to introduce you to their customers in a particular market. Most Australian with. In the current situation exporters are happy to we need to look for alternative make introductions and solutions to reduce freight costs provide advice to other and keep exports running. exporters, particularly if they are not Trade show update and export business development during COVID-19 direct competitors. Many overseas importers are also seeking alternative suppliers due to disruptions in their existing supply chains or changes With the restriction on overseas travel for Australians at present it seems unlikely that growers will attend any international tradeshows this calendar year. in customer buying behaviour and preferences during the coronavirus shutdown. If you are interested in looking for export opportunities get in touch as we are exploring ways

export CONTACT JASON RADFORD PERTH INTERNATIONAL AIRPORT to introduce international buyers to growers while trade shows and market visits are not an option.

Any sea freight delays or port issues?

A number of vegetable exporters have reported that there are experiencing delays and difficulties with sea freight, particularly, securing time slots for container drop offs at the port. vegetablesWA is keen to understand how widespread these issues are and to work with growers to find solutions. If you are experiencing any problems associated with sea freight please give

MORE INFORMATION

For more information on any of the activities in the article or to discuss export opportunities please contact Manus Stockdale on 0448 897 652 or email

manus.stockdale@vegetableswa.com.au

fReight WWW.GO2TIGERS.COM

0412 107 405 | JASON.RADFORD@GO2TIGERS.COM Manus a call to discuss.

Tigers are the largest perishable freight forwarder in Western Australia with the ability to handle export by air and sea. With a full range of facilities close to Perth Airport Tigers can handle all of your perishable freight requirements including air freight security screening, phytosanitary inspections and certification, fumigation services cold storage facilities.