Exporters’ relief as Federal Government extends international airfreight scheme

The Federal Government has extended its popular airfreight subsidy program, throwing “a lifeline” to farmers in a bumper season.

The Government has extended its airfreight subsidy program for another three months.

FARMERS have welcomed a third extension of the Federal Government’s popular airfreight subsidy scheme until the end of September.

The announcement will come as a relief to exporters, who have relied on the program — known as the International Freight Assistance Mechanism — to export billions in agricultural produce overseas.

Global travel bans due to the COVID-19 crisis have meant there was limited freight space available, with produce usually travelling in the bellies of passenger craft.

The Government scheme set up dedicated airfreight routes to more than 50 locations including in China, Japan, Hong Kong, Singapore, Malaysia and the Middle East for primary producers, with the costs subsidised.

The program was due to end on June 30, sparking concern from farmers given ongoing travel restrictions mean freight prices are unlikely to drop to pre-COVID levels in the near future.

Horticulture has been the biggest user of the IFAM program — with exports of $1.2 billion of fresh fruit and vegetables sent to international markets — followed by seafood, lamb, beef and dairy.

Alternative transport methods are also struggling, with congestion on global shipping lines leading to a shortage of refrigerated and food quality containers.

The National Farmers’ Federation said the extension was “nothing short of a critical lifeline”.

“The extensions of the IFAm program gives these industries some breathing space to find alternate supply chains in the medium term,” NFF chief executive Tony Mahar said.

The Australian Meat Industry Council agreed the extension was “a shot in the arm” for the industry, which has exported 340,000 tonnes of produce valued at $4.9 billion through the scheme since it began.

“The extension of IFAM provides ongoing recognition of the importance of airfreight supply chains in delivering highly valuable, and perishable, protein to international markets,” AMIC chief executive Patrick Hutchinson said.