Working on trading relationships has benefited two nominees in the upcoming state exporter awards, while recently negotiated trade agreements will also boost business.
Working on trading relationships has benefited two nominees in the upcoming state exporter awards, while recently negotiated trade agreements will also boost business.
A booming trade with high-end hotels in the Middle East has laid the platform for major growth by Muchea-based honey producer Fewsters Farm, one of four nominees in the agribusiness category for the Western Australian Industry & Export Awards later this month.
Fewsters has more than tripled its turnover since 2013, thanks in large part to building trade relationships with the Middle East following a food expo in Dubai at which it exhibited, owner Kim Fewster told Business News.
A third of Fewsters’ production was sent overseas, Mr Fewster said, with those exports earning two thirds of the company’s revenue.
He said honey was popular in the Middle East because of its health benefits.
“Quite a few overseas people are looking for guaranteed 100 per cent Australian honey,” Mr Fewster said.
“We also export our honeycomb … it goes to food distributors to the hotels in Dubai, Macau and Abu Dhabi.
“That goes into the five- and six-star hotels, on to the breakfast buffet.”
Contenders
Joining Fewsters as nominees for the agribusiness award are seafood business Fremantle Octopus, 2016 Business News Rising Stars winner Austral Fisheries, and winery Churchview Estate.
Fremantle Octopus general manager Richard Buczak said 20 per cent of sales for the company were in the export market, mostly to the US, Singapore and Hong Kong.
“We did a couple of trips to Hong Kong seafood show and introduced ourselves to a company that exports to Singapore,” he said.
“From this point we were contacted from the US and established a relationship there.”
Mr Buczak said the company had received numerous inquiries from other potential destinations.
Trade agreements
Mr Fewster said the recently signed China-Australia Free Trade Agreement would be a winner for his company.
The growing middle class in China wanted to buy good quality food, he said.
“The free trade agreement with China has been received very well,” Mr Fewster told Business News.
“There’s a document we fill in which the Australian government provides to certify that the honey is produced in accordance with the (agreement).”
At the time of signing, the Chinese tariff on honey was 15 per cent, with a reduction to zero planned by the start of 2019.
Mr Fewster said the quota system currently imposed by Japan on imports of honey was a concern, although it would increase over time.
The FTA with Japan will lift the honey-trading quota from 80 tonnes in 2015 to 160t from April 2024 onwards, while the tariff falls from 25.5 per cent to zero in the same timeframe.
“South Korea, that’s still a ridiculous situation,” Mr Fewster said regarding the import duty of 243 per cent, which is set to continue despite the recent trade agreement.
“It’s just an absolute outrage.”
He said there were thousands of beekeepers in South Korea because the price of honey was kept artificially high.
In the case of Fremantle Octopus, the FTAs would more likely be of benefit further down the track.
“This could open more doors but for the moment we are concentrating in developing our brand in our existing international markets and strengthening relationships in those areas,” Mr Buczak said.
Tariffs on octopuses are coming down under all three agreements.
