Korean FTA means big business for AU macadamias

The Australian Macadamia Society (AMS), the peak industry body for the Australian macadamia industry, has welcomed a new free trade agreement (FTA) with South Korea that will see the tariff on macadamia exports reduced from 30 per cent to just 18 per cent by 1 January 2015 and tariff-free by January 2018.

The new agreement comes into force today with an immediate 6 percent tariff reduction followed by a second reduction on 1 January 2015.

The exciting new development follows several years of hard work from the Australian macadamia industry which has set its sights on Korea as an important new market for this iconic Australian native plant food and has since invested over $A1.3 million to introduce macadamia nuts to Korean consumers.

Macadamias are on their way to becoming a firm favourite in Korea, with total imports increasing by 215 per cent over the last five years and exports reaching 253 tonnes with a value of $3.8 million per annum.

With the new tariff in place, the AMS expects the Korean market to grow over the next decade with the potential to reach a similar consumption per head to the Japanese market. This would result in a market of about 2500 tonnes of kernel per annum with a value of about $41 million.

Today’s news caps off a big year for the Australian macadamia industry. FTAs were also announced with China and Japan (the two largest export countries), adding fuel to the already booming Asian demand for Australian macadamias.

For more information:
Lynne Ziehlke
Australian Macadamia Society
Tel: +61 02 6622 4933
Email: lynne.ziehlke@macadamias.org
www.australian-macadamias.org/industry