Moves to nurture food and beverage exports to Korea

Australian food and beverage exporters are gearing up to take an even bigger slice of the Korean export market — already Australia’s third largest export destination — but businesses need to be well prepared to maximise the vast potential.

That was the key message from the Australia-Korea Business Council, which on Wednesday launched a new report which aims to prepare the next generation of Australian exporters to capitalise on the Korean market’s enormous potential, and develop long term, mutually-beneficial business relationships with Korea importers, distribution and customers.

Korea, which is the world’s 12th largest economy, already buys billions of dollars of Australian food and beverage products including beef, wheat, lamb, lupins, wine, rock lobsters, honey, chicken and turkey products, table grapes, citrus fruits, and cherries. Australian wine exports are also growing, rising by 81.5 per cent to $45.5m in the year ending September 2021.

But there is scope for further growth, the Food for Thought report said. AKBC executive director Liz Griffin said Koreans want Australia to pay close attention to the further potential of the market. Exporters should do their research carefully and seek to understand Korean customers, she said.

“Premium gift packaging, product reviews, e-commerce distribution channels, social media and many other aspects can all be vital and, ultimately, impact on eventual profitability,” she said.

“E-commerce, which has boomed since COVID-19, offers new distribution avenues.

“For example, one online retailer sells a single Australian mango for $23. But few Australian products are currently listed on Korean online grocery platforms such as G-Market, Market Kurley and Coupang, and there is great scope for Australian exporters to feature on these online platforms in future.”

Launching the report, Federal Trade Minister Dan Tehan said Koreans value Australia’s fresh, premium food and beverage products, and trust our reputation as a quality producer.

But he said Australia but faced strong competition.

“Exporters really need to know what they are up against and the work of the AKBC is making a real difference,” he said.

The Korea-Australia Free Trade Agreement, which came into force in December 2014, resulted in more than 99 per cent of Australaian exports to Korea eligible to enter duty-free or with preferential access.

Mr Tehan said while KAFTA has levelled the playing field substantially, the Australian Government is going further to assist food and beverage exporters to expand and diversify into Korea.

“With the support of the Government’s $72.7 million Agribusiness Expansion Initiative, Australian wineries and exporters have made their presence known in Korea last year via a series of virtual wine tastings and innovative business-matching programs” he said.