In today’s talking points: Australian Wine and Wool big winners in 2018, SPC to enter China, Foreign Investment Review Board Reform risk deterring overseas investment, Grants for Australian Agricultural Business to grow trade with China
Australian Wine and Wool big winners in 2018
Recently Rabobank released their annual ‘Argibusiness Outlook’ report for 2018, highlighting improved global economic conditions have made a positive impact on Australian agribusiness. In particular China is now Australia’s top export market, increasing 63% last year and now worth $AUD848 million. It follows the continuing rise of the middle class in Asia and their burgeoning appetite for quality foodstuffs and agricultural products. Tim Hunt from Rabobank affirmed “As people get richer in some countries they trade up for premium goods. But in many of our key markets, including China, the intake of food is stable.’
Read more: ABC
SPC to enter China
Tinned fruit giant SPC and Goulburn Valley will now enter the Chinese market, tapping into greater demand for higher quality food products. In collaboration with China State Farm Agribusiness Shanghai, one of the largest agribusiness conglomerates in China, their products will feature in high-end supermarkets and e-commerce platforms. SPC managing director said China expansion was key to the company’s future ambitions; stating, “The Chinese market is five times the size of the Australian processed fruit market, which makes this a huge opportunity.”
Read more: Australia China Business Review
Foreign Investment Review Board Reform risk deterring overseas investment
Last Thursday, Treasurer Scott Morrison announced that farmland worth >$15millon will have to be advertised to Australians for a period of 30 days before going on the market to overseas investors. Foreign Investment has undergone major reforms, with the Federal Government in 2015 lowering the threshold for scrutiny of farmland from $240million to $15million. Some commentators have warned that this may spur overseas investors to look elsewhere. The United Kingdom, China and the US are the three largest owners of Farmland in Australia respectively.
Read More: ABC
Grants for Australian Agricultural Business to grow trade with China
Australian agricultural businesses are now able to apply for funding projects to grow agricultural trade between Australia and China. This year’s program, provided under the Australia-China Agricultural Cooperation Agreement (ACACA), is focussed particularly on advanced agricultural techniques, farming sustainability and exploring niche markets, amongst other things. The ACACA program has been a significant part of Australia’s bilateral relationship over the past three decades. The grant gives businesses the ability to network in China, and also make a strong customer base.
Read More: Qld Country News