Currency fluctuations have been ‘encouraging’ for Australian exporters, and the devaluing of the Chinese currency, followed by Monday’s 9 percent correction was an important sign, but the amount being traded is not enough to spur significant action, according to QC Fresh Director Quentin Carter. “With produce sales to China I think the bigger concern is that we’re not able to export over there. There’s still a lot we can’t legally send,” he said. “Stockmarkets are always cyclic, and we don’t, as individuals, understand what’s invested in them.”
Aside from a competitive currency rate, which Australia is edging closer to at 22 Chinese Yuan to the Dollar, produce has to be accepted, commodity pricing and packaging has to be accepted and other barriers to trade between the two nations need to come down, according to Mr Carter. “We’ve lost other markets recently too, we’ve had the hiccup in Vietnam which was worth $40 million” he added. “Even for that money what goes to Vietnam is mainly table grapes and citrus, and a good amount of one variety of pear.”
China could become a trading partner for counter seasonal produce such as mangoes, stonefruit, citrus and berries, but there is still negotiating to be done, Mr Carter said. “We’re not in a hurry to be Sino-centric. Pre-packed produce is being introduced to different countries.”
The Middle East, North America and down to the South Pacific are other significant trading regions for QC Fresh. “We cater to a broad band of countries. There’s nothing new in fresh produce, but how things are being packed and marketed is different.”
“Papua New Guinea and Indonesia too have taken measures to protect their domestic industry by restricting Australian imports. I think you can’t afford to lose anything.” Indonesia has restricted imports on citrus and beef, because it has local production, while Papua New Guinea has banned Australian produce imports thought to be worth around $3.8 million per year to allow local growers a right of supply. “I certainly understand the governments in those countries protecting their own industry, and the Australian government will say it’s not that big a deal, but I’m sure it could be remedied.”
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Quenton Carter
QC Fresh
Website: www.qcfresh.com.au