Agriculture and Food Industry

Market opportunities for German food producers

Due to the vast extent of the country, Australia has been a net exporter of food and agricultural produce with an estimated export value of 48,7 bn AUD in 2016-17, especially Australia crops and meat and dairy products form the majority of exports. However, Australia also offers great opportunities for German food manufacturers, with German beverages, processed foods and confectionary becoming increasingly popular amongst the Australian consumers.

In addition, German manufacturers of agricultural machinery and equipment can profit from the status of Australia being the breadbasket of Asia’s expanding middle class. Since the local manufacturing capability is limited, farms and agricultural establishments are more and more reliant on imported equipment, machinery and tools.

On average, Australian households spend around 370 EUR per month on food and beverages, an equivalent of 15% of total spendings. In contrast, a German household only spend around 300 EUR.

According to forecasts, up to 200 million people will be supplied with Australian food and produce by 2020. In order to achieve this amibitious target, Australia requires innovative technology and equipment in order to increase productivity.

Australia currently enjoys 9 free trade agreements with important trade nations, such as the USA, the Republic of China and New Zealand. Hence, Australia is not only a lucrative sales market, but can also be utilised as hub for expansion in the entire Asia Pacific region .

The Australian food retailing market in 2015/16 exhibited a growth rate of 2,5%, in comparison to a moderate increase of 1,1% in Germany.

Biosecurity and food safety

Australian made food and beverages are internationally renowned for their excellent quality and high standrds. Apart from the strict food standards, which are defined in the Food Standards Australia New Zealand (FSANZ), Australia is very concernced about food safety and biohazards and sets out rules in order to protect ist people and its ecosystem. In order to keep away non-domestic pests and diseases, the Australian Department of Agriculture and Water Resources has established rigorous import and quarantine regulations for food and agricultural products.
In order to avoid seizure, return or even desctruction of products, sufficient research on restrictions and provisions should be conducted before exporting products to Australia.