Australian food exports to target rich customers

• Source: Xinhua
• [20:15 June 22 2009]
• Comments

Australia had lost its competitive advantage as a low-cost food producer, and should look to other advantages as it seeks to continue food exports, an international expert said on Monday.

Addressing the National Farmers' Federation congress, keynote speaker David Hughes said Australia faced declining shares of the world market in traditional exports like grains, beef and dairy. While value-adding options were lost as food producers concentrated on only the domestic market of 21 million people.

However, the nation had a good reputation in food safety, supply chain integrity and traceability.

"For Australia it's fine to have poor friends, but it's best to have rich customers," Hughes said.

"They value other things - quality, quality assurance, green, possibly organic, and consistent supply."

He said as the world population is projected to grow from 7 to 9 billion by 2050, finding customers would not be a problem, but Australia needs to find its place in the world market.

Hughes said food safety was paramount and Australian agriculture had to reinforce its positive image.

Research in the US had shown that Australia was perceived as a good source of food, but when asked what products were involved the only answer was "beer".