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Agri-Food Trade Service
Agri-Food
Past, Present & Future Report
Australia
October 2010
The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information. This report is intended as a concise overview of the market for those interested in its potential and is not intended to provide in-depth analysis which may be required by the individual exporter. Although every effort has been made to ensure that the information is correct, Agriculture and Agri-Food Canada assumes no responsibility for its accuracy, reliability, or for any decisions arising from the information contained herein.
Please address any comments or suggestions you have on this report to: Ben Berry – ben.berry@agr.gc.ca
Table of Contents
Overview
Although Australia is located on the opposite side of the world, its similarities to Canada and market potential continue to bring the countries closer. With a population of 22 million, a strong economy, and a shared commonwealth background with Canada, the country provides several opportunities for Canadian investors and exporters.
Both the Canadian and Australian Governments have signed a Trade and Economic Cooperation Agreement (TECA) and are members of the World Trade Organization (WTO); both of which enhance and promote the countries' long term and stable bilateral relations. Canadians exporting to Australia will face strict food import standards, but once entry is granted, will find many opportunities.
The Australian economy proved its strength during the global economic slowdown, experiencing better conditions than many other countries. This reduction in damage has led to a significant opportunity for Canadian exporters as consumer food expenditures have recovered more quickly than in other countries. Australia has consistently been an important trading partner for Canada, currently ranking eleventh worldwide according to Canada's largest agri-food bilateral trade partners list. More specifically, the processed foods and ready-made meal categories have shown the greatest potential. In general, Canadian exporters of consumer-oriented goods, particularly those exporting pork and food preparations, will continue to achieve the most success in the Australian agri-food industry.
Canada - Australia Relations
Canada and Australia have a positive and long-standing relationship that is attributed to many shared qualities: large aboriginal communities, culturally diverse nations, healthy standards of living, as well as continental-sized and geographically dispersed landscapes, in addition to a shared strong commonwealth history. Moreover, the countries have built strong trade, defence, academic, cultural, and governmental relations. All of these factors help to make Australia a desirable location for Canadian trade and investment.
In recent years, Australia has experienced one of the developed world's highest rates of growth. The country is considered to be one of the most lucrative destinations for foreign investment in the world; presenting excellent opportunities for Canadian exporters and investors. Significant potential exists within the food processing, mining and energy, engineering, computer software, and media and communication sectors. With regards to foreign direct investment (FDI), Canada and Australia enjoy low risk business climates that are safe, secure, and profitable; thus contributing to attractive investment markets. In 2009, Canada was a significant partner, investing $12.8 billion in FDI to Australia. During the same year, Canada was among the top destinations for Australian FDI, receiving $4.8 billion.
A comprehensive range of bilateral agreements exist between Canada and Australia. These agreements cover a variety of topics, including trade, social security, air services, and consular services abroad. Both countries work closely together to promote a coherent and robust system of global trade and economic cooperation.
With a common interest in a fair, open, and non-discriminatory world trade system, they both became members of the WTO. They also belong to the Cairns Group, which is committed to achieving free and fair trade in agriculture, while providing real and sustainable benefits for the developing world.
In 2009, total trade between Canada and Australia amounted to $3.4 billion, placing Canada 22nd on Australia's list of largest trading partners. However, this value is an 8% decrease from 2008 when total trade was $3.7 billion. It is assumed that this decrease is due to the global economic crisis that affected both countries. Australia is Canada's 17th largest partner, moving up one spot from 2008. In the past, Canada and Australia have alternately been in a trade deficit. In 2009, Canada had a positive trade balance, exporting more than they imported.
| Australia Total Trade | $355.9 billion |
|---|---|
| Exports | $ 175.7 billion |
| Imports | $180.2 billion |
| Trade balance | ($4.5 billion) |
| Canada-Australia Trade | $3.4 billion |
| Exports | $1.8 billion |
| Imports | $1.6 billion |
| Trade Balance | $0.2 billion |
| Canada-Australia Agri-Food Trade | $654.3 million |
| Exports | $231.0 million |
| Imports | $423.3 million |
| Trade balance | ($192.3 million) |
| Canada- Australia Fish and Seafood Trade | $13.2 million |
| Exports | $7.3 million |
| Imports | $5.9 million |
| Trade Balance | $1.4 million |
- In 2009, Canada's exports to Australia totalled $1.8 billion, down 14% from $2.1 billion in 2008. Despite this decrease, the 2009 value represents an increase of 13% from 2004. In general, Canada's exports have shown gradual growth over the years.
- Canada's largest exports to Australia included meat (mainly pork), engines (aircraft, spacecraft, automobile), and to a lesser extent, telecommunication equipment.
- Canada's imports from Australia decreased by 2% to 1.6 billion in 2009. Similar to exports, the import value has remained consistent, averaging $1.7 billion over the past six years.
- Top imports included wine, medicaments (including veterinary), and motor vehicles.
Agricultural Trade
Australia has an advanced agriculture and food-processing sector, which grows and produces a significant amount of their food domestically. Despite this output, the country is heavily dependant on Canadian agriculture and agri-food products; thus generating great opportunity for Canadian exporters. In 2009, Australia imported $231 million in Canadian agri-food products. A substantial proportion of this value was allocated to pork, bread, food preparations, and sugars. The country also imported over $7 million in Canadian fish and seafood products, bringing the country's total agri-food, fish and seafood imports to $238.3 million, a 16% increase from 2008. In 2009, Australia was Canada's eleventh largest agricultural trading partner with bilateral trade exceeding $654 million.
| Meat of swine, fresh, chilled or frozen | $135.4 million |
| Bread, pastry | $24.7 million |
| Food preparations, nes | $15.7 million |
| Sugars, nes | $8.1 million |
| Vegetables | $6.5 million |
- Meat and edible meat offal represent Canada's largest agri-food category, accounting for 60% of exports into Australia in 2009.
- Fresh, chilled, or frozen pork continues to be Canada's largest type of meat export. In 2009, pork exports totalled $135.4 million, increasing 21% from 2008's value.
- Canada's top five exports account for 82% of Canada's total agricultural exports into Australia.
- Bread and pastry agricultural exports experienced the largest increase, growing 95%, from $12.6 million in 2008 to $24.7 million in 2009.
| Wine of fresh grapes | $251.4 million |
| Meat of sheep or goats | $51.2 million |
| Meat of bovine animals, frozen | $33.0 million |
| Peptones & derivs | $12.7 million |
| Honey, natural | $11.9 million |
- Canada's top five imports from Australia represent 85% of total agricultural imports.
- Total imports reached $423.3 million in 2009, an 8.3% decrease from 2008. This is mainly due to a decrease in the beverages, spirits, and vinegar category from 2008. Despite this decrease, wine is still the largest import product into Canada, representing almost 60% of total imports.
- Representing 12% of imports or $51.2 million, meat of sheep or goats is the second largest agri-food import, increasing from a value of $41.5 million in 2008.
Complete Statistical Summary Available: www.ats.agr.gc.ca/stats/da-do-eng.htm
- Canada's agri-food exports to Australia are comprised mainly of consumer-oriented goods. Consumer-oriented goods made up $200.4 million or 87% of exports, intermediate goods accounted for $25.8 million or 11.5%, while bulk goods contributed very little to exports at $2.7 million or 1.5% of the $231 million total.
- Throughout 2006 to 2009, consumer-oriented exports increased 34% from $149.7 million to $140.1 million. From 2008, these exports increased 21%.
- Canada's most valuable consumer-oriented exports included: meat of swine (67.6%), bread, pastry (12.3%), food preparations (7.9%), ice cream (1.7%), and fruits and nuts (1.7%).
- Intermediate agri-food exports have remained fairly stable, increasing 4% or $1 million from 2008 to reach $25.8 million in 2009. Sugars (31.5%), vegetables (25.3%), animal products (11.2%), and animal feed preparations (10.9%) were the largest categories.
- Bulk exports contributed the least, making up only 1.5% of agri-food exports into Australia. They were valued at $2.7 million in 2009. Key contributors to this sector were oilseeds (47.7%), buckwheat (27.1%), rape or colza seeds (11.4%), flax (7.0%) and linseed (5.2%).
Economy
Australia's free market economy relies heavily on trade, manufacturing, services, and finance. Prominent features of this economy include the abundance and diverse natural resources within the country's landscape. The reserves of coal, iron ore, copper, gold, natural gas, and renewable energy attract high levels of foreign investment. These reserves also present excellent export opportunities for Australia; shifting the economy from an inward to an outward focus. During this process, the government has initiated reforms for reducing tariff rates and removing trade barriers.
The Australian economy proved its strength during the global economic slowdown, reducing the impact and amount of damage on the economy. Although the economy's GDP fell from 2.3% in 2008 to around 0.8% in 2009, the country remained in positive terms compared to many other developed nations. The Australian financial system is currently planning to focus on raising the country's economic productivity throughout 2010.
Despite such strong performance throughout the global economic crisis, the country still experienced some impacts, mainly in the western and northern territories, where mining is the economic mainstay. A survey from Euromonitor displayed Australians' attitudes towards food purchases and consumer spending after the economic crisis. The study found that 73% of Australian shoppers were cutting back on confectionery purchases, 67% were buying fewer biscuits and potato chips, while 62% had cut back on soft drinks. The survey also found that 53% of people intended to shop around to get the best price for most items. It also showed the trend of eating out less often, and even when they did eat out, consumers chose cheaper options, such as quick-service restaurants.
| GDP | US$1.1 trillion |
| GDP growth | (2008) 2.3% (2009) 0.8% |
| GDP/ capita | US$54,000 |
| GDP/capita (PPP) US $39,000 | |
Current
- The industrial and agricultural sectors account for 26% and 4% respectively, while the service sector contributes 70% to the country's GDP.
- GDP growth slowed from 2.3% in 2008 to 0.8% in 2009. However, Australia's economy grew by 1.5% during the first three quarters of 2009. According to the Organization for Economic Cooperation and Development (OECD), this performance is better than any other market economy.
- Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.3% by February 2010.
- Despite the decline of Australia's inflation rate from 4.4% in 2008 to 1.9% in 2009, the rate increased to 2.9% as of March 2010.
Forecast
- The medium-term outlook for Australia's economy is positive; as the GDP is expected to grow between 2.6% and 3.2% until 2013.
- Unemployment forecasts for 2011 and 2012 suggest that the rate will remain steady at 5%.
- Due to a shortage of skilled labour and constraints in capacity, the inflation rate is expected to remain high.
Consumer Market
Population
Australia's population has been consistently growing, reaching 22 million in 2010. The country's urban centres account for 89% of the total population with rural residents representing the remaining 11%. Sydney and Melbourne are the two largest cities, with populations of more than 4 and 3.5 million respectively. In general, there has been a progressive ageing of Australia's population, leading to higher expenditures on health and social security. Approximately 14% of the population is 65 years or older. This amount is expected to double over the next 40 years as the baby boomer population moves up the age bracket. The ageing population, combined with Australia's declining birth rate, poses serious challenges for Australia's labour force.
Australia's declining birth rate has recently become a major concern for federal policy makers. This concern led to the introduction of the baby bonus in 2004. Under this system, parents having a baby receive a one-off payment of $5,000, regardless of their household income. In addition to this, other incentives such as an increase in the child tax rebate and a family tax benefit have been implemented. Although these incentives have increased the number of babies being born, the population proportion of babies and infants has continued to decline.
Trends in Consumer Eating
Recently, there have been several emerging consumer trends with regards to food consumption. There has been a shift in consumer demand for more convenient and healthier meal options. Throughout 2007 to 2008, fast food restaurants that offered healthier alternatives experienced a considerable growth in sales. However, during 2009, consumers became more conscious of their budgets, opting to spend less on meals out of the home.
In 2010, Australians spent almost US$65 billion on food, up 31% from 2000. Growth in spending was particularly strong for meat, vegetables, and fruit. Sales of fish and seafood also expanded, but still only represent a marginal presence in the national diet. The only category to decline throughout this period was sugar and confectionery, where the value of sales fell by 31%. It is assumed that the rising level of obesity within the nation was the cause of this decline. Currently, the number of overweight adults (18 or older) in Australia represents 53% of the adult population, a 9% increase from 1995.
Despite the increased value spent on food throughout the past decade, the global economic downturn has forced consumers to re-examine their food purchases. According to Nielsen data published in October 2008, 66% of Australians have reduced, or are planning to cut back on non-essential grocery items. Meanwhile, 41% say they intend to avoid the purchase of certain items altogether, while 38% are buying fewer items. The same study concluded that more than half of the respondents were checking shelf prices more carefully, indicating a shift towards more price sensitive consumers. That said, the market for premium products is likely to shrink.
Although consumers mentioned cooking at home in an effort to save money, as GDP growth picked up in 2010, so did consumer consumption at restaurants. The restaurant industry caters to Australians' busy lifestyles and increasing demand for healthier food options. This industry remains heavily influenced by five key drivers – food style and ethnicity, flavour profiles and presentation, hospitality, ambience, and value and overall food quality.
- In 2007, there were over 15,800 quick-service restaurants in Australia, up from 13,200 during 2002; the majority of which were chain outlets.
- The full-service restaurant sector remains dominated by independents, which represent 98% of all full-service restaurants. Australians look to full-service restaurants as a source of food adventure; places where they can sample new ingredients and experience new flavour combinations.
- Previously unknown cuisines, such as South American and African, are also becoming popular. Consumers are now increasingly judging restaurants not by their ability to faithfully reproduce, but by their ability to pleasantly surprise through creativity and expertise.
- Both time pressures and single living have had an impact on the food market. Ready-to-prepare meals, convenience foods, and single-serve portions have seen an enormous upsurge in demand over the last decade. In terms of absolute value, ready meal consumption increased by 45% from US$759 million in 2003 to US$1.1 billion in 2008. The population above the age of 55 consumed the most of this category.
- Bacon is the most popular chilled processed meat in Australia, followed by shaved meat.
- The organic and natural product market is growing rapidly. Although Australia is a large producer of organic raw products, it does not have the manufacturing capacity to satisfy demand for the processed segment. Market prospects are excellent for exporters of organic and natural ingredients.
- Functional and healthier hot drinks are becoming more popular, due to growth in the health-conscious consumer segment. Tea consumption has shifted away from the traditional black tea to a variety of other fortified alternatives.
- As parents become more concerned about their children's diets, soft drink consumption has become replaced by fruit/vegetable juice, bottled water, and sports drinks. The juices category in 2008 was valued at US$1.5 billion, a 25% increase from 2003. During the same year, the bottled water category was valued at US$730 million.
- In 2008, Australia was one of the main countries to have driven global sales of energy drinks. However, recent health concerns and negative publicity have forced this category to take a new avenue; promoting organic and health benefits. In 2008, Australia's energy and sport drink absolute value was US$900 million, with the population between the ages of 15 to 24 consuming the largest amount. This value is a 33% increase from 2003.
Overall, Australian consumers are reluctant when it comes to changing their consumption habits and product preferences. Despite this behaviour, the global economic crisis pushed consumers towards the notion of better value-for-money. Australian consumers have become increasingly price and value conscious; providing opportunities to companies that can successfully find the right balance between value and price.
Lucrative Consumer Segments
Pensioners
As the Australian population becomes older and the number of pensioners in the country increases, this consumer segment proves to be an influential food buyer. Between 1995 and 2007, the number of pensioners in Australia grew from 2.2 million to 2.8 million, a 28% increase. This segment is predicted to increase as the baby-boom generation continues to age. By 2015, the number of pensioners is forecasted to be 3.7 million. As this segment becomes increasingly concerned with their health and wellbeing, the demand for natural and nutrient rich food grows in the market.
Children
Australia's child population is an important consumer segment as they receive a tremendous amount of spending money from their parents; allowing them to make more purchasing decisions. In addition, manufacturers and advertising agencies have been taking advantage of the influence that media has on this group. With successful marketing and attractive promotions, the snack food and non-alcoholic beverage industries have grown in this market. However, with rising levels of obesity and the emerging health trend, the federal government is planning a “Healthy Kids Check” program that aims to ensure that all four year-olds are healthy and fit when they start primary school. This has jumpstarted the trend in buying organic, healthy packed food, and nutritional beverages.
Single Person Households
In the past decade, there have been a growing number of single person households. Between 1995 and 2007, the number of single person households expanded by 39% to reach 2.1 million. This is mainly due to the increase in the average age of marriage and life expectancy. Single households have a considerable impact on consumer demand, as they tend to grocery shop more frequently, command smaller package sizes, and dine out on a daily basis. When they do purchase food at a supermarket, they are less concerned about value for money; creating substantial opportunity for the premium product category.
Opportunities
Export Development Canada acknowledged that many business opportunities exist for Canadian exporters across a wide range of sectors in Australia. The number one potential for Canadian companies to export is processed food, with agricultural machinery ranking sixth.
Canada's Trade Commissioner Service believes that the most promising agricultural export prospects to Australia are Canadian pork, frozen potatoes, frozen blueberries, maple syrup, and tinned salmon. Other key areas include organic, functional, and nutritious foods.
Competitors
For many years, the United Kingdom and other European Union countries dominated the value added import market in Australia due to the large majority of its population being of English and Irish decent. Over the years, Australia's increasingly multicultural population has changed traditional tastes and broadened the country's scope to other international import markets. These countries include China, Italy, Malaysia, and Thailand.
Canada's top agri-food exports face competition from Denmark, Ireland, the United States (US), and New Zealand. Canada is Australia's second largest importer of meat and edible meat offal, exporting $140 million or 30% of total Australian meat and edible meat offal imports. Denmark is the largest exporter, representing 40% of this market. In 2009, Ireland dominated Canada's third largest export commodity, food preparations, while the US and China were the top suppliers under the oilseeds, fodder, and miscellaneous grains category (HS code 12). During the same year, New Zealand and Thailand were top seafood suppliers, exporting 43% of Australia's total fish and seafood import value.
Since 2002, Australia has signed free trade agreements (FTAs) with Singapore, Thailand, the US, and Chile. On February 27, 2009, Australia signed a trade agreement with ASEAN-New Zealand. The ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) is the largest FTA Australia has concluded up to date. This agreement aims to broaden the opportunities available to exporters by removing and reducing barriers to trade and investment, as well as to establish frameworks through which trade and investment linkages can evolve and expand.
In 2008, the Australian and South Korean governments began negotiations surrounding the idea of an FTA. The fifth round of FTA negotiations took place during May 2010. Overall, the majority of topics, including Barriers to Trade (TBT), Sanitary and Phytosanitary Standards (SPS), Dispute Settlement, Customs Procedures, and Trade Facilitation have been concluded. According to the Australian government, the Australia-Korea FTA may boost Australia's GDP by up to $22.7 billion and South Korea's by up to $29.6 billion over the 2007 to 2020 period.
Some of Australia's other bilateral agreements include:
Trade and Economic Cooperation Arrangement (TECA)
Both the Canadian and Australian governments signed this
bilateral initiative in 1995. The agreement acknowledges the mutual benefits
that result from long-term and stable economic relations and the further
development of trade and investment. Both countries are also members of the
World Trade Organization (WTO), creating significant opportunities for both
trade and investment.
Asia-Pacific Economic Cooperation (APEC)
APEC was established in 1989 in response to the growing
interdependence among Asia-Pacific economies. Begun as an informal dialogue
group, APEC has since become the primary regional vehicle for promoting open
trade and practical economic cooperation. Its goal is to advance Asia-Pacific
economic dynamism and sense of community.
Canada-Australia Consular Services Sharing Agreement
Signed in 1986, this is an agreement between the Government of
Australia and the Government of Canada concerning the sharing of consular
services abroad, and recognizing the similar philosophies underlying the
provision of consular services to their respective nationals as well as the
benefits flowing from cooperation in consular matters.
Read more: www.voyage.gc.ca/laws_lois/australia-canada-australie-eng.asp
Access Issues
With the Australian government active in reducing regulations and improving business infrastructure, access to Australia's market has been made easier. Furthermore, the Australian Department of Agriculture, Fisheries, and Forestry is working to remove trade barriers and improve access in key markets. When importing to Australia, Canadian producers must comply with the many food standards, labelling requirements, and sanitary and phytosanitary standards. To ensure successful importation and to avoid any delays with shipment, there are two requirements that imported food must meet. The first is quarantine and the second is food safety. ICON, Australia's quarantine import conditions database can be a very useful resource. This tool can be used to determine if a commodity intended for import into Australia requires a quarantine permit or treatment. Finally, the food must comply with Australia's Imported Food Control Act to ensure public health and safety.
For further details on ICON visit: www.daffa.gov.au/aqis/import/icon-icd
For further detail on Australia's Imported Food Control Act visit: www.comlaw.gov.au/ComLaw/Legislation...
- The High Commission of Canada identifies and alerts export-ready companies about potential opportunities in the Australian marketplace. www.tradecommissioner.gc.ca/eng/office.jsp?oid=168&cid=511
- Australia and New Zealand have a joint food standards code that applies to both countries. The Australia New Zealand Food Standards Code outlines standards in product, safety, and labelling requirements. A consolidated version of this code can be viewed at: www.foodstandards.gov.au/foodstandards
- The majority of imports enter through the country's two major ports located in Sydney and Melbourne. Other large cargo ports are located in Brisbane, Fremantle (Perth), and Adelaide.
Australian Importers
- The main concerns of Australian importers are price, quality, reliability, on-time delivery, and minimums.
- Importers are highly concerned with low prices because there is strong competition for imports into Australia's retail sector, yielding significantly low net profits.
- Canadians should take note of Australia's reverse buying seasons from that of the northern hemisphere. Many overseas suppliers are prepared to offer “off season” discounts for seasonal merchandise sales to Australia.
- When first dealing with overseas suppliers, Australians will often place two or three trial orders to ensure quality. Once business is going well, volumes may become more reasonable.
- Australian importers dislike bargaining. Importers are prepared to negotiate a reasonable price but will not “bargain” down a price by 20% or more. If an unrealistic price is offered by a supplier, the importer is likely to not even consider doing business.
- Australia's consumer market has become increasingly concerned with environmentally friendly packaging that is innovative and attractive. Because of this, importers consider retail packaging an important factor in making business deals.
- Australian retail grocery giants Coles and Woolworths have 78% of the retail grocery sales in the country. Both of these companies have been increasingly bypassing the traditional import systems by independently importing.
Business Travel Tips
Canadians doing business in Australia will benefit from the country's similar business environment, language, cultural norms, and customer expectations. Business etiquette is also closely shared between the countries, with attention to advanced planning, promptness, and punctuality. Australians' attitudes in business are generally informal and friendly, yet direct in making business deals.
When planning a business trip to Australia, Canadians must remember that the seasons are opposite from their own (i.e. the Australian summer takes place from December to February while winter takes place from June to August). Like many Canadians, Australians take vacations in the summer. However, due to seasonal differences between the two countries, Canadians may find it difficult to conduct regular business with Australians between the months of December and February. Business meetings in Australia commonly take place during lunch or breakfast, with it being unusual to see meetings scheduled over the weekend.
In a typical office, business casual dress is usually more than adequate. The weather is mostly warm to hot and not all buildings have air conditioning. Clothes are therefore more casual than in Canada. That being said, in a business situation one should still look presentable. The majority of the time, introductions will be made on a first name basis. It is usually normal to address the manager/superior by their first name. In general, Australians are down to earth and enjoy establishing a personal relationship before getting into business.
Working hours in Australia range depending on the employer, position, and type of industry. A standard working day is generally from 7 or 8 am to 3:30 or 4:30 pm, while working hours in most offices and shops are from 8:30 or 9:30 am until 4:30 or 5:30 pm with an hour's break for lunch.
Additionally, cars drive on the left hand side of the street (opposite from North America). There are also many roaming animals and "road-trains" (several semi-trailers hooked together) on the roads, so exercise caution when driving. The currency is the Australian dollar. Traveller's cheques are accepted at banks or large hotels, but may be restricted in small towns and outback areas. Automated banking machines are available in main cities.
For more detailed travel information on Australia, consult the Foreign Affairs and International Trade Canada travel report on Australia: www.voyage.gc.ca
Agriculture Sector & Policies
Australia, with its vast spaces, technical expertise, and diverse climates, produces a wide range of highly sought after agricultural, fisheries, and forestry products. Australia's location in the southern hemisphere also makes it ideally situated to supply counter-seasonal produce to markets in Asia, Europe, and America during their winter months. Australia's food industry plays an integral role in the economy by providing significant employment opportunities and investment, particularly in rural and regional areas. The country is also an important component of the world's food supply system, producing fresh fruit, vegetables, meat, and dairy products. In 2009, agriculture made up 4% of the country's GDP and employed 3.6% of the labour force.
Farm sizes range from relatively small part-time farms to operations of more than 5000 hectares. In general, Australian farming is characterized by large scale, highly mechanized, and efficient operations; contributing to Australia's significant agricultural production. The country is substantially export oriented, with agricultural exports reaching $26 billion in 2009. Beef is currently Australia's largest value-added agricultural export, with other major exports including wheat, barley, veal, tuna, prawns, lobsters, wine, sugar, and wool. Over the present decade, beef production has gradually been increasing alongside rising domestic consumption. Additionally, dairy and wheat domestic consumption has increased over the past decade. Rising wheat production is largely because of its greater use as a feed grain.
Despite increasing domestic demand, Australian farm land has recently experienced soil erosion from overgrazing, industrial development, urbanization, and poor farming practices. Moreover, the Great Barrier Reef, the largest coral reef in the world, has been threatened by increased shipping and its popularity as a tourist site. Australia's land has also been known to suffer from forest fires and severe drought. Over the past several years, drought has harshly affected the major agricultural regions of eastern and western Australia. These factors may create significant opportunities for Canadian exporters of agri-food, fish, and seafood products.
Contact Information
Canada's diplomatic representation in Australia comprises the Canadian High Commission in Canberra, the Canadian Consulate General in Sydney, and two honorary consuls located in Melbourne and Perth.
Canadian High Commission in Canberra
Address:
Commonwealth Avenue,
Canberra, ACT, 2600, Australia
Tel.: 61 (2) 6270-4000
Fax: 61 (2) 6270-4060
Email: cnbra@international.gc.ca
Web: www.canadainternational.gc.ca/australia-australie
Territories/Responsibilities:
The High Commission in Canberra helps Canadian firms to identify
market opportunities in the following sectors: Commonwealth government and
defence procurement; the aerospace industry; agriculture, food and beverages;
agricultural technology and equipment; fish and seafood products; science and
technology; mining, metals and minerals. It facilitates the development of
strategic alliances and investment in these sectors.
The Canadian Consulate General in Sydney
Address:
Level 5, Quay West, 111 Harrington Street
Sydney, NSW 2000, Australia
Telephone: (02) 9364 3000
Fax: (02) 9364 3098
Email: sydny@international.gc.ca
Web: www.canadainternational.gc.ca/australia-australie
Territories/Responsibilities:
New South Wales, Northern Territory, Queensland, Victoria,
Western Australia, South Australia, Tasmania & New Zealand(ICT sector only).
Office Hours: Mon-Fri: 0830-1630 – General Enquiries
(Trade/Public Affairs & Consular/Passports) Mon-Thurs: 0900-1200-
Immigration/Visa Enquiries
Time Difference: E.S.T.: +16
The Australian High Commission to Canada
Address:
50 O'Connor Street
Floor 7, Suite 710
Ottawa, ON, Canada
K1P 6L2
Tel: 613-236-0841
Fax: 613-236-4376
Web: www.canada.embassy.gov.au/otwa/contact.html
Office Hours: Mon-Thurs: 0830-1700 Fri: 0830-1630
Key Resources
Agriculture, Food and Beverage Sector Profile- Canberra Australia- 2010 www.tradecommissioner.gc.ca/eng/document.jsp?did=76842
Australian Government- Agriculture and the WTO www.dfat.gov.au/trade/negotiations/trade_in_agriculture.html
Australian Government- Canada Country brief- 2009 www.dfat.gov.au/geo/canada/brief.html
Australian Government Department of Foreign Affairs and Trade (DFAT) – Australia Fact sheet www.dfat.gov.au/geo/fs/aust.pdf
Australian Government- Importing to Australia- 2010 www.daff.gov.au/aqis/import
Australian Government- Trade and Market Access- 2010 www.daff.gov.au/market-access-trade
Canadian Agri-Food Trade System (Data from Statistics Canada) - 2010
Centre for Intercultural Learning- Australia Culture- 2009 www.intercultures.ca/cil-cai/culture-culture-eng.asp?iso=au
CIA – World Factbook – Australia https://www.cia.gov/cia/publications/factbook/geos/as.html
Euromonitor – Consumer Trends and Lifestyles- Australia- 2010 www.portal.euromonitor.com/Portal/Magazines/Topic.aspx
Export Development Canada – EDC Country Overview: Australia www.edc.ca/english/docs/gaustralia_e.pdf
Foreign Affairs and International Trade Canada (DFAIT) – Agricultural Commodities Sector Profile – Australia
Foreign Affairs and International Trade Canada (DFAIT) – Market Report-Australia- 2010 www.tradecommissioner.gc.ca/eng/market-reports-by-country...
Global Trade Atlas Navigator – Australia Export and Import Statistics- 2010
International Business Information- Australia Economic Overview- 2008 www.ic.gc.ca/eic/site/ibi-iai.nsf/eng/bi18710.html
Issues Insights- Factors Affecting Australian Agricultural Exports- 2009 www.abare.gov.au/publications_html/ins/insights_09/a5.pdf
National Food Industry Strategy- Agriculture, Fisheries, and Forestry Australia- 2002 www.innovation.gov.au/.../Industry/.../National_Food_AA_Report.pdf
Organisation for Economic Cooperation and Development- Australia- 2009 www.oecd.org/country/0,3377,en_33873108_33873229_1_1_1_1_1,00.html
The Australian- Budget 2010 www.theaustralian.com.au/in-depth/budget
