- A major contributor to the Australian economy – generates sales and service income in excess of A$100 billion annually
- Australia’s largest manufacturing sector, accounting for 26 percent of total manufacturing – four times larger than the automotive industry
- Australia’s largest manufacturing employer – 315,000 people, but this number is declining and it has lost 3,468 jobs since 2006-07
- A net-importer of food and grocery products – a trade surplus of $4.4 billion in 2004-05 has turned into a trade deficit of $1.8 billion in 2009-10
- On a turnover basis, Australia’s food and grocery sector is comparable in size to the Australian mining industry. However it is also under intense pressure from rising imports and flat export figures.
New Zealand food and beverage products are well accepted in Australia, with the major imports from New Zealand being wine, dairy, seafood, bakery products, beverages, frozen vegetables and soup.
The joint Australia New Zealand Food Standards Code means that the same food standards apply in both markets and there are few Australian Quarantine and Inspection Service (AQIS) issues which restrict entry of products.
Getting your product into market
There are a growing range of New Zealand products available across all retail channels, many of which are packaged for home brand or other local labels.
Companies looking to sell into the Australian market need to be well prepared and to carefully weigh up the market entry options with sound market research and intelligence.
Australia has a relatively sophisticated level of channel development, so alternative opportunities to reach the consumer should be carefully considered and costed before entering.
For advisory assistance on alternative market entry strategies and costing, NZTE staffs are happy to help.
Regulations
Food Standards Australia New Zealand sets the food standards for both countries, which are covered by the Australia New Zealand Food Standards Code (ANZFSC).
This includes labelling requirements for foods sold in Australia, food safety requirements, regulations for food additives, and specific food standards for different types of food, i.e. meats, dairy, fruits and vegetables, etc.
The most recent version of the ANZFSC is available at the following site: www.foodstandards.gov.au.
The Australian Quarantine Inspection Service (AQIS) is the equivalent of the Ministry of Agriculture and Forestry in New Zealand and is responsible for quarantine issues.
There are few entry restrictions for products from New Zealand. A small number of products such as potatoes are not permitted at all, and import permits or strict procedures are required for a limited number of other products such as pet food, raw egg products and fresh fruit and vegetables.
You can check import requirements on the AQIS Icon database at: www.aqis.gov.au/icon.
The major supermarkets and foodservice operators also have strict food safety requirements and demand that suppliers have HACCP (Hazard Analysis and Critical Control Point) or other quality programs in place.
Opportunities
Between 2011-12 food consumption is expected to grow by an average of around 4.5 percent. This is an improvement from growth of 2.1 percent in 2010 but it still significantly below the average annual expansion of 8.4 percent over the period 2003-07.
Opportunities in the foodservice sector are wide ranging with more people eating away from home and increased interest in specialty niche products in the market.
Current trends also include a growing concern with obesity and other health issues. This has created opportunities for products that can deliver fresh, healthy, natural snacks and meal solutions.
