Rising demand from Asian countries has propelled Victoria’s exports of food and fibre to $19.6 billion, a $1.3 billion improvement on the year before and the highest result of any other Australian state or territory.
Treasurer Tim Pallas said the state had benefited from countries with improved household incomes diversifying their supplies of food, beverages and animal products, and that the state’s next challenge would be convincing smaller businesses to ship internationally.
Demand for Victorian food and fibre has surged in Singapore.Credit: iStock
A new report into Victoria’s food and fibre industry released on Wednesday found that in 2022-23, the state came within $400 million of its goal to export $20 billion from the sector by 2030.
The $19.6 billion result, a $1.3 billion increase on 2021-22, came off the back of surging growth across Asian countries.
The most dramatic of those was Singapore – exports to the city-state increased 57 per cent on the previous year to $994 million. Exports to Japan rose 13 per cent to $1.7 billion, and exports to Indonesia rose 21 per cent to $1 billion. South Korea and Malaysia received $810 million and $827 million in exports respectively.
China remained Victoria’s biggest customer with $4.7 billion in exports, an increase of 4 per cent. In 2022, Victoria was forced to look for new trade partners as tariffs and trade restrictions from China hurt grain, wine and other industries in the state.
Grain is Victoria’s biggest food and fibre export, worth $5.6 billion in 2022-23.Credit:
Pallas said Singapore was a “mature but growing market” that had a close working relationship with Victoria, and future growth was expected in East Asia and South-East Asia.
“The reason why you see the demand for our products grow in these markets – it’s not just a growth and diversification of their market, but it’s also a demonstration of the growing per-capita income in those jurisdictions,” he said.
“Victoria accounts for about 24 per cent of the nation’s total food and fibre export receipts, which makes us No.1 in the nation.”
Outside of Asia, the United Arab Emirates recorded a 36 per cent rise to $693 million, while New Zealand took its total to $1.1 billion, an improvement of 15 per cent.
The biggest food and fibre export for Victoria was grain ($5.6 billion), followed by meat ($4.5 billion).
Supply challenges mean the value of dairy shipped to other countries fell by 2 per cent to $2.45 billion, but Victoria remained the nation’s largest player in this industry, making up 73 per cent of all exports.
But Pallas said there was significant work to do, as just one in 10 Victorian companies exported their products.
“We’re now going to have to set new targets, and we’re going to have to find better ways of engaging with small and medium businesses,” he said.
“I’m not berating companies for not exporting, I’m just saying that perhaps a lot of them haven’t considered the possibilities.”
Remedy Drinks managing director Chris Gillard said the company was now exporting just under half its kombucha and soft-drink products from its Dandenong South factory to international customers.
He said the state trade agency had helped connect the company to foreign distributors, particularly in Asia and the Middle East.
Victorian beverage exports rose by 12 per cent in 2022-23.
Based on the value of products sold, Victoria is the biggest exporter in Australia of dairy, horticulture, animal fibre, skin and hides. Food and fibre make up one-third of the state’s total export market.
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