Transcript: A video case study on Golden North
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>>Trevor Pomery: My name’s Trevor Pomery and I’m the Marketing and Export Manager for Golden North Ice Cream here in South Australia.
Golden North makes premium ice-cream. We’ve been making it since 1923. Our ice-cream is still made with fresh milk and fresh cream and importantly, it’s all palm oil–free.
The new China free trade agreement, well, the biggest impact to us will be the price. By reducing the tariffs, it will make Australian products far more competitive in the Chinese market.
You know we don’t just export ice-cream, we also send fresh milk, and that competes with the local product. So with the free trade agreement, our product will be a lot more competitive on the shelf.
The Chinese market is very, very much looking to the green, clean fields of Australia to supply food for their needs.
We’ve only just started going into China but it is clearly identified by our board as one of the future targets that we want to challenge.
Ice-cream is a very seasonal business, obviously skewed towards summer and being northern hemisphere, it’s counter-seasonal for us – and that is excellent. It will increase production here in the factory, and will even out the production throughout the year.
We really expect volumes to increase into the China market and as that happens, we will have to get more staff to make that ice-cream, which is fantastic for the local economy up here; it’s also good for the dairy industry because it’s all South Australian milk and cream that goes up.
We are always looking at what we need to do at the factory here at Laura. We have plans to expand the production facilities here and give us more capacity. We have appointed an agent in China already and he has opened an office in China.
As the free trade agreement kicks in further and volumes grow, we will reassess what we need to do. If there’s an advantage to us opening an office in China, then that is definitely something that we will look at.
As volumes grow from this free trade agreement, we would anticipate that all of our suppliers will see the benefit. The free trade agreement gives us the opportunity to get into those markets, be competitive in those markets, build our brand in those markets and then everybody prospers.
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