South East Asian markets
About the region
The significance of South East Asia as an agricultural export market cannot be underestimated. While historically the region has always been a strong and strategic trading partner for Victoria, the impacts of COVID-19 and barriers to trade in other markets, combined with the fast industrialisation, economic and social changes in the region, mean that it is now positioned as a priority market for Victorian agriculture export for both growth and diversification strategies.
South East Asia includes 11 different economies and over 650 million people.
The region is a major market for Victorian meat, dairy, horticulture and grain production.
Victorian businesses are supported by international trading agreements to ensure lowering or removal of tariffs, quotas and regulation for key export commodities. These include:
- ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA);
- Bilateral agreements with Indonesia, Malaysia, Singapore and Thailand support the continued growth in trade within the region; and
- The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)
Key opportunities
A recent KPMG report into regional market diversification, commissioned by Agriculture Victoria, has identified a number of key opportunities for Victorian Food and Fibre export. These include:
- Beef and Sheep meat into food service
- Premium Wine into fine dining
- Infant formulae into industrialising markets
- Promotional activities for table grapes
- Targeting expatriate communities for rock lobster
- Plant-based protein to high-end retail
Each of these opportunities relies on targeting key stakeholders across the supply chain to ensure that each commodity is most appropriate for changing consumer needs and in-market purchases.
Significant work will build on these opportunities to grow existing exports, provide new commodities or product prospects to enter markets or support exporters diversify or pivot their export strategy.
Insights and forecasts
Food and fibre exports to South East Asia have seen some significant increases in the emerging markets of Vietnam and the Philippines, whilst smaller, sustained growth was achieved in the mature economies of Singapore, Malaysia and Indonesia.
Meat exports have been significantly affected due to COVID-19 and consumer spending habits in-market. Furthermore, aggressive marketing and pricing from major competitors such as the USA, Argentina and Brazil have reduced Victoria’s total meat exports to the region.
Grain, dairy and horticulture have seen growth into SE Asia in the last year. Consumers are looking to fruit, vegetable and dairy as healthy options, whilst at home baking during lockdowns has cited increased demand for grain imports.
Wine and seafood exports increased as diversification from other markets played a key role in the respective industries’ export strategies.
In the COVID-19 recovery period, food and agriculture export opportunities are real as the disposable income in the region grows significantly. Consumer trends indicate a preference for clean, healthy produce and commodities which the Australian brand is known for. Trends in-market moving to higher end hospitality, retail and e-commerce platforms will see Victorian products positioned well to capitalise in South East Asia.
Further information
To find out more about accessing South East Asian markets, contact the Pathways to Export team at pathwaystoexport@agriculture.vic.gov.au, or sign up to the newsletter.