Developing Australian Seafood in California
MARKET OPPORTUNITY
The USA is the world's most valuable individual agrifood market (with total annual food and beverage expenditure of over US$1 trillion (2002), with average per capita expenditure of US$3,488 per annum (2002), and a population of 300 million by 2006. One of the leading agrifood items over CY1995-2005 was fish/ crustaceans & molluscs (US$9.9 billion in 2005) (source UN, commodity Trade Database, October 2006).
Since 1999 the USA has become a net importer of Agrifood with a growing dependance on imported food products.
Australia and the USA have recently entered into a FTA. As part of the FTA the tariffs on up to 50 seafood products was and is being reduced. The competitiveness of Australian seafood products versus domestic and international competition has grown.
California is one of the most affluent economies in the world. Consumers have high disposable incomes and a propensity to spend money on entertainment. California also consumes 23% of the country’s specialty food indicating an appreciation and education of fine food, including a propensity to buy.
Food markets are driven by indulgence, health and convenience. No where in the world is this trend more relevant than California. Seafood delivers both indulgence and health in foodservice and indulgence, health and convenience to home consumer.
The purpose of this project is to collect and analyse the information needed to create an efficient, quality led supply chain from Australia to the regions top importer distributors.
Development and implementation of an industry Education and Market Awareness Program
There is currently a real shortage in cost effective opportunities for the fishing industry, particularly the smaller fisheries, to visit markets around australia in a coordinated and professional manner. Let alone start the process to gain access to potential new markets and build upon existing ones.
The key elelments missing to do this is knowledge and opportunity. To enter a market, or improve upon an existing one, industry must have a good understanding of the key drivers in each market. It is no longer acceptable for a business to just package a product and not care where it ends up or how it is used. It is vital seafood companies take the next step and start to see the whole chain, and understand how it impacts upon their bottom line and profit. To gain this knowledge they need a vehicle that will provide them access to a broad range of consumers (an in particular key stakeholders - buyers and users) in a cost effective manner.
There is a strong need for both industry (and opportunity for FRDC) to develop mechanisms through which to disseminate information to directly to key stakeholders - in particular opinion leaders and the broader community to understand that the Australian seafood industry is backed by rigorous science. In particular, this project would provide a mechanism to present information on:
- ESD, explain why our fisheries are sustainable.
- Biosecurity, explain why our fisheries are pristine, and the safety precautions undertaken by
industry to ensure the safety of products.
- Quality, explain where our seafood comes from and the best way to get it in a premium form.
- Value adding, explain where industry can add value to the consumer.
- Supply chain management, explain how to get our seafood.