export
Production | Export | Cheesemakingexports of australian specialist cheese
Whilst the majority of Australian Specialist Cheeses are sold in the domestic market, exports have recently started to become a new growth opportunity for small to medium manufacturers. Compared to the rest of the Australian dairy industry, the volumes are small, but given the high amount of value adding the value per kilogram is high.
Most exports of Australian specialist cheese are to the Asian/Pacific region where shorter travel times, relatively cheaper freight rates and a large number of expatriate Australians working in the region, mean that we have a slight advantage over our European competitors. Unfortunately for specialist cheesemakers, similar to their bulk producing cousins, our cheeses are not competing on a level playing field. World trade in specialty cheese is dominated by the Europeans who enjoy high subsidies on the price of their milk as well as generous export rebates. With these subsidies and the large economies of scale that European manufacturers enjoy, Australian specialist cheese tends to be expensive.
Whilst the quality of Australian specialist cheese is recognised by overseas customers, Australian cheese must be cheaper or sufficiently unique to overcome consumer prejudices that all good cheese only comes from the EU. This is especially true in the large importing markets of the USA and Japan.
export regulations
All dairy products made from bovine milk are controlled products and therefore the export of these products is regulated by Federal Law. Whilst the current laws are very prescriptive, it is relatively easy for existing manufacturers to meet the additional criteria set out under the regulations. Also with new legislation due to come into effect on 1st July 2005, it will be even easier for manufacturers to obtain an export license.
Whilst there are attempts to bring milk products from other sources such as caprine (goat), ovine (sheep) and bubaline (buffalo) under the new food standards code being formulated by FSANZ and ultimately use these guidelines for export. Exports of these products do not fall under the existing legislation and are free to export. One obvious exception is the EU, where without AQIS certification they will not be allowed entry.
At present the number of export registered establishments are limited to the larger manufacturers in the specialty industry. This may be a result of a lack of capacity and resources to supply the export market, but it is more likely the result of a lack of awareness at the ease with which existing manufacturers can get an export license. Local dairy regulations meet most current requirements under the Export Orders and a quick discussion with your state auditor would provide manufacturers with the minor details that need to be completed in order to get a license. Once this is achieved it is only a matter of paying a small fee to be registered with AQIS.
market opportunities
Unfortunately, simply having an export license does not mean that the door of export prosperity will immediately open. Export success requires a lot of determined effort, research, market visits and investment in time and money. It should be said that while the risks and costs may be slightly higher in developing export sales, it is no different from building up a viable domestic business. In fact it is often cheaper to increase volumes through exporting than having to fight for an increasingly tougher share of the domestic pie.
Current exports of specialist cheese are mostly limited to the larger specialty manufacturers or are made through export agents and consolidators. However, a number of smaller non-competitive manufacturers are joining forces to create export network groups where resources, experience and money can be pooled to assist in launching their products overseas. This enables companies to gain economies of scale in freight and share the cost of promotion.
