cherries to korea
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Cherries to Korea
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Phillip Georgios
Facilitator
Senior Global Engagement Manager
Australian Trade & Investment Commission
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Agribusiness Expansion Initiative
Suite of services to help clients expand and
diversify
Comprehensive sector/market info
online 24/7, self serve
Events and activities specifically for the agri-
food sector
Boots on the ground to work with you in multiple markets
Working with peak bodies and government agencies on agreed priorities and for seamless service
Helen Oh
Trade Commissioner Seoul
Australian Trade & Investment Commission
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Market Overview
Trade Korea is the 4th largest
trading
partner for Australia
Population51.8 million in 2020
Low birth rate (0.92)
EconomyGDP per capita in 2020 U$ 31,497
Eco growth rate 3.6% in 2021
(IMF Estimation)
KAFTA8th year of implementation
Tariff 0% for cherries
TrendsIncreased fruit import from Australia under
KAFTA
Covid-19Daily confirmed cases 1,500-2,200
Restriction level 4
Vaccine rollout 26.0% (2nd dose)
Market Overview
6
Consumer demands Distribution channel Considerations
• Increased fruit import from Australia under KAFTA
- Table grapes, citrus
• Ageing population and increasing number of single-person households.
– small purchasing unit
• Increasing demand for premium fruits
- Seeking new varieties
- Retail signboard on fruit variety
- SNS and viral marketing
• Increasing prominence of online platforms – e.g. Coupang, Naverand major retailers’ online stores
• Continuing importance of physical wholesale outlets and retail stores – e.g. Emart, Lotte Mart, Homeplus and Costco
• Decreased sales for fresh fruits in food service due to COVIDrestrictions on social gathering
• KAFTA tariff benefits
• Importance of food safety
• Strict regulations for quarantine inspection
• Korean buyers’ high standards for quality fruits
- hardness, sweetness, size
• Competition with Chilean cherries in price
• IFAM flights available in Melbourne and Sydney via Tokyo to Seoul.
Korea’s Cherries Import
Country 2016 2019 2020
Total 13,805 15,855 14,215
USA 12,376 11,501 10,807
Chile 690 4,155 3,120
Australia 310 13 87
Uzbekistan 150 113 124
New Zealand 279 71 67
Turkey - 8
• US is a major exporter (Air/Sea)
• Chilean export increased from 2019 following successful arrival of sea-freighted cherries
Korea’s total import volume for cherries in 2020: 14,215 tonnes
• Australian export increased from 2020 again with market access of mainland cherries in 2020
• Tasmanian cherries : 310 tonnes in 2016(Source : Korea International Trade Association)
Unit: Tonnes
Major Competitors
8
Country Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
USA
Air
Sea
Uzbekistan
Air
Turkey Air
Australia Air
Chile
Air
Sea
New Zealand
Air
Shipping methods and supply season by country
Christmas in Dec
There are no
imported cherries avail.
until Dec.
Opportunity
for Australia to supply
from Oct and Nov
Country Fumigation
USAYes/California 37 countiesNo/California 16 counties
Uzbekistan Yes
Turkey Yes
AustraliaYes/MainlandNo/Tasmania
Chile No
New Zealand No
Australian Cherries Last Year
• Target consumer price by retailer is below KRW 10,000-12,000 (A$ 12-14) per 1 pack (700g)
• Preferable size is 26mm
9
Emart
HypermarketA$ 14/500g
Homeplus
HypermarketA$ 14/300g
Coupang
Online EcommerceA$ 20/400g
To Remember
Top 3 takeaways Drivers of success
Market access of mainland cherries from last year with 0% KAFTA tariff.
Korean consumers seeking premium fruits and new variety.
Supplying window starts in October and competition with Chile starts in December.
Please check your air freight connection and price.
Air freighted marketing works for only premium fruits. Please send premium quality cherries with clean skin and crunchy texture.
Start communication with Korean importers early, starting in September.
Emma Hatcher
Agriculture Counsellor
Department of Agriculture, Water and the Environment
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Regulatory Overview
Covid-19 Impact Update
Challenges Considerations
• Interim arrangements –due to COVID-19 travel restrictions
• Container shortages and disrupted freight schedules
• Potential delay in arrival of phytosanitary certificates
• Korea has specific requirements for trade (protocol market)
• Avoiding non-compliance
• Quarantine and food safety requirements must be understood and met
• APQA is a diligent regulator – act early if you know there is a problem
• Some issues we can fix –others we can’t!
Market Access
Tasmanian cherries
• Recognised as a PFA for fruit flies
• Codling moth trap monitoring and inspection
Mainland (excluding WA)
• Finalised in January 2020 – 2021 first full season (but limited uptake)
• Methyl bromide fumigation
Interim arrangements for 2022 trade
• Ordinarily would require Korean inspectors for pre-clearance inspections (mainland) and on-site verification (Tasmania)
• Likely that DAWE will undertake remote verification/audit processes on behalf of APQA (as in 2021)
Korea – a protocol market for Australian cherries
14
To remember
Top 3 takeaways Drivers of success
Australia has good market access to Korea for cherries: interim arrangements for 2022
Australia is recognized for strong compliance (quarantine and food safety)
Act quickly to resolve any issues before fruit arrives
Adherence to Korea’s requirements is key to avoiding costly delays
Understand what Korea’s cherry import requirements are and comply
Partner with an experienced importer who fully understands Korea’s requirements
Korean Buyer Experience
Monica Lee, Business Development Manager
Australian Trade & Investment Commission
and
David Lee, Manager, PSK International
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Q&A
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What’s Next?
Reach out to your Tradestart or Global Engagement Manager
• 13 28 78New to Austrade? Get in touch to see how we can help and ask specific questions about grants, programs and services
• export.business.gov.auTry the Guide to Exporting tool to identify, understand and prioritise markets
• agriculture.gov.au
• austrade.gov.auRead more about the $72m Agribusiness Expansion Initiative
• austrade.gov.au/news/newsletters
Keep informed about the latest agribusiness news
Thank you for attending
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