Seeking something familiar for turbulent times? Picture this as your next export destination: a stable, modern, industrialized democracy with close U.S. ties, a vast land mass and well-to-do consumers whose language, culture and tastes seem almost like home.
Besides our neighbor up north, where might you look? Try down under.
Sydney, Melbourne and Brisbane lack the proximity of Toronto, Montreal and Vancouver, but many products that score with U.S. or Canadian shoppers find a similar welcome in Australia.
Despite its distant location and modest population of less than 20 million, Australia consistently ranks among the world's 15 or 20 largest export markets for U.S. consumer foods and beverages. For snacks, processed fruits and vegetables, and pet food, Australia is among our top 10 customers.
Bulk commodities generally account for less than 10 percent of total U.S. agricultural exports to this market-not surprising, since Australia is itself a leading agricultural producer and exporter. Soybean meal and other value-added intermediate products play a larger role in U.S. sales, but consumer foods typically top the list.
Exports of U.S. consumer foods to Australia climbed to a record $171 million in 2000, up by half since 1994. Then traders got a taste of the downside last year as U.S. sales slumped 16 percent to $144 million. Sales this year remained subdued, the result of a strong U.S. dollar and the slowdown in the Australian economy, among other factors.
Despite the fluctuations, the underlying trend has been upward-especially for products offering value and quality at competitive prices. For U.S. exporters comfortable with the changing demands and competitive pressures of a dynamic market, prospects for sales growth in coming years look promising.
Finding Success In a Crowded Field
Like most markets, Australia presents a mix of attractions and challenges. Aside from the commonalities in language and culture, U.S. exporters will find an educated and affluent society, with the infrastructure to support a vibrant commercial sector. This includes a modern legal and financial system; state-of-the-art transportation and communications systems; and a well-developed, economically diverse market.
