Food & Agribusiness Talking Points | 10 December 2018


In today’s talking points: China’s pork shortage may create opportunities for Australian exports, China’s ageing population pushes sales of ageing health and food for special medical purposes, and the US-China trade truce could affect Australia’s agribusiness.


China’s pork Shortage may create opportunities for Australian exports


Recent reports have confirmed dozens of cases of African Swine Fever in both China and Europe, leading to predicted shortages of Pork particularly in the next 12-24 months. Yet, despite being the world’s largest consumer of pork, the incidences of both China’s production and intake of the protein are expected to regress, thus facilitating the growth of other proteins and markets alike.

Although Australia do not currently export pork to its otherwise largest economic trade partner, the article suggests that this shortage of pork may be the necessary catalyst to further trade in the agriculture sector. Experts such as Andrew Spencer, CEO of Australian Pork Limited, have suggested that exports may include both pork and beef to meet the shortened supply of protein in China.

This will undoubtedly orchestrate further opportunity for Australian and other global meat exports in 2019 and beyond until the prevalence of Swine Fever can be curbed.

Source: Weekly Times Now


China’s ageing population pushes sales of ageing health and food for special medical purposes.

China’s population is aging and after 36 years of the One Child Policy, it is only going to get worse with time. In recently addressing Wattle Health Australia at its AGM< Executive Chairman Lazarus Karasavvidis commented that the senior market was a key focus for the company. Wattle Health Australia was initially a baby formula manufacturer but has noticed that the demand in China for infant formula is much smaller than that for ageing health and food for special medical purposes. The company has adapted its business and now manufacture organic baby formulas and food products to cater for this demand.

Mr Karasavvidis further noted that the demand for organic products was growing. Wattle Health has participated in a joint venture with Organic Dairy Farmers Australia to create Corio Bay Dairy Group to produce their own organic milk powder. Wattle health also purchased Little Innoscents Organic Baby skin care range. Mr Karasavvidis stated that formulas made from certified organic milk powders yielded higher prices due to their ultra-premium status.

Source: Weekly Times Now


The US-China truce could affect Australia’s agribusiness

 The trade truce that came about recently between China and the US may cause collateral damage to Australian exports. The US has claimed that in an act of peace, China has agreed to purchase a substantial amount of Agriculture, industrial goods and energy products.

Agriculture and resources are some of Australia’s biggest exports to China. Exports such as “Australian sorghum, wheat, cotton, beef and LNG” (which are overlapping exports from the US and Australia) would potentially be impacted if China agrees to buy from the US instead.

Although there are obvious benefits that would come with a trade war truce between the two countries there are also potential pitfalls for Australia. The Australian government is awaiting more details on what the deal exactly entails. When that comes to light the impact that it will have on Australian exports will become more apparent.

Source: Australian Financial Review