Australian exports subsidised with Government airfreight package

The right price will be a big factor in determining whether a new airfreight package delivering fresh food to the country’s key export markets is a success.

COMPETITION will be the key to the success of a new airfreight package aimed at delivering fresh food to Australia’s key export markets.

Horticulture producers say the Federal Government’s $110 million plan to co-ordinate dedicated freight routes to China, Japan, Hong Kong and Singapore was welcome, but the price must be right.

Global travel bans mean exporters have struggled to access airfreight, with produce usually travelling in the bellies of passenger craft.

Under the Government’s plan, dedicated freighters carrying red meat, seafood, dairy and horticultural produce will depart from Melbourne, Sydney, Brisbane and Perth, with the cost subsidised.

Exporters will still have to pay but, with freight rates currently three times higher than usual, the subsidy is expected to cut the cost to normal levels.

Australian Fresh Produce Alliance chief executive Michael Rogers said if the freight rate was too high, it would be difficult for anyone to export.

“That’s where it’s key to have more airfreight available because it will help bring down the price,” Mr Rogers said.

“If we can get a good capacity at the right price, then those issues will work themselves out.”

Mr Rogers expected the volumes and regularity of seafood and red meat exports — the higher value produce — would underpin the freight routes, with variable amounts of fruit and vegetables taking up the rest of the space.

AUSVEG national manager for export development Michael Coote said the organisation was waiting to see what costs would be passed on to exporters, but that the program was welcome.

“It is critical that we are able to continue to export our fresh produce and that vegetable growers have a commercially viable avenue to reach these markets,” Mr Coote said.

Trade Minister Simon Birmingham estimated more than $500 million in exports would return to the market under the scheme.