Some highly-motivated countries are preparing to muscle in on Australia's export markets.
So Australia can’t afford to rest on its export laurels, a survey by the Australian Farm Institute (AFI) of emerging export competition has found.
“While the markets at the moment are indicating that supply of rural exports is limited in the face of a lot of demand, the potential is certainly there among lower-cost producers to compete strongly with Australia in certain markets,” said Mick Keogh, the AFI’s executive director.
“There is no room for complacency.”
The AFI survey looked at beef from Brazil, vegetables from China, milk from India (now the world’s biggest milk producer), fruit from Chile, Argentina and Peru, and grain from Russia.
“Despite being new kids on the block, these nations are using their inherent competitive advantages in particular industries, and developed nations like Australian need to seriously consider how they will respond,” Mr Keogh said.
What these potential rivals do not have is a literate, numerate and skilled workforce, able to implement the quality control schemes throughout the supply chain that have, among other things, delivered our beef markets reliable access to lucrative East Asian markets.
“Our advantage may not lie in our ability to produce a tonne of grain or kilo of beef cheaper than our competitors, but in having truck drivers, saleyard operators and abattoir workers who can read and write and implement the systems that give us access to high-value markets.”
* The full report, “New Kids on the Block: Emerging Agricultural Exporters", is available from the AFI website, www.farminstitute.org.au