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Food and beverage overview

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(Last updated: 18 Nov 2010)

Overview

The Australian food and beverage industry is recognised worldwide for its high quality and healthy image, innovative manufacturing and packaging technologies. Australia offers a great diversity of foodstuffs including grains, meats, dairy products, seafood, fruit and vegetables, bakery goods, olive oil, wine and other beverages, confectionery plus a host of individual gourmet treats and specialty lines.

Climatic differences within the Australian continent from the tropical north to cooler south, contribute to an extensive range of produce grown in the country. With its southern hemisphere location, Australia offers counter-seasonal produce to northern hemisphere produce seasons.

Ethnic and cultural diversity in Australia is reflected in wide range of food available including European, Asian and Middle Eastern influenced products. Australian producers can also cater to specific consumer food needs such as certified organic, kosher and halal foods.

As Australia’s largest manufacturing industry, the food and beverage sector generated total sales and service income of $79 billion from food processing in 2006–07, an increase of $8 billion on the previous year. Improved seasonal conditions helped lift the value of Australian food-related farm and fisheries production to $37.4 billion in 2007–08; an increase of 18 per cent on the previous year.

(Source: Australian Food Statistics 2008 – Department of Agriculture, Fisheries and Forestry)

Key opportunities

The number one consumer trend today is for fresher and healthier foods, particularly those which are organic, chemical /additive free and nutritionally rich. Globally, consumers are also looking for fast foods without sacrificing flavour, quality or nutrition.

Because of Australia’s reputation as a clean, healthy and disease-free environment, exporters have a strong competitive edge over many other countries. There is also demand for differentiated food categories such as organic foods and functional foods which cut across many of the main product categories.

Increased awareness by consumers to product origin (including its ingredients) is today driving demand for minimally-processed foods. Food quality and safety issues are also becoming important considerations to consumers globally.

Japan and the US remain the biggest markets for the Australian food industry but destinations including the Pacific Rim, Saudi Arabia and the United Kingdom have shown recent grown and now provide key destination points for many Australian exporters.

Australia has, or is in the process of, negotiating free trade agreements with Japan, China, Malaysia, the Gulf Cooperation Council countries and the Republic of Korea. It also has an agreement with the Association of South East Asian Nations and New Zealand. These agreements seek to improve incomes and opportunities for Australian exporters by eliminating tariffs and other regulatory barriers.

(Source: Australian Food Statistics 2008 – Department of Agriculture, Fisheries and Forestry)

How can we help you?

With a worldwide network of highly experienced and qualified staff, Austrade provides a number of dedicated and tailored services to Australian exporters.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au.

Useful links and contacts

Industry:

Federal Government:

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