• Australia
• Chile
• China
• India
• Japan
• Mexico
• Russia
• South Africa
• South Korea
• Spain
• United Kingdom

International Resources: Global Market Profile: Australia

As part of its commitment to providing its members with market analysis and insight, PMA has compiled the following information about Australia from Attaché Reports submitted by the U.S. Department of Agriculture’s Foreign Agricultural Service, as well as the CIA World Factbook, embassy sites, and business etiquette reference guides.

Entering the Australian Market

Agents/distributors are key components in developing exports of consumer-ready foods to Australia. After sales, services (such as cooperative advertising) are an important aspect of successfully entering the market. Innovative packaging has an advantage. Most of the major Australian importers visit the United States at least once a year to see what is available and to place orders if the items are appealing.

Establishing a rapport is important. Small talk helps to build a relationship between you and your Australian counterpart. It is common to talk about sports or sightseeing, but do not try to seem like an expert on a topic of which you are not. Sports are very important in Australian culture. Among the most popular are Australian football, soccer, rugby, cricket, horse racing, basketball, cycling, ‘bush walking’ (hiking) and tennis. Good sportsmanship is considered very important. Controversial topics are enjoyed, but allow your counterpart to commence the subject. Also, giving a ‘thumbs-up’ is considered very rude.

Business hours are from 9:00 a.m. to 5:00 p.m. Monday through Friday and from 9:00 a.m. until noon on Saturday. When scheduling a business trip to Australia, the best time is March through November. Christmas and Easter are very hectic times of the year, as is December through February due to peak tourist season. However, if and when visiting, always call ahead.

Australians expect one's work to speak for itself, so they are not impressed with your position, title, or status. Boasting about achievements is not appropriate unless you have been asked to state what you have done in the past. Individuality is important in Australian culture as is privacy; however, whatever you disclose will be considered public, so only reveal what you do not mind being shared. Even though Australian’s speak English, sometimes it is difficult to follow, because words are often cut-off before they end or ran together. The term ‘mate’ is used when men refer to other men or women refer to other women, but not when men or women refer to a member of the opposite sex.

Gift giving is not a common practice. Invitations to a person’s home are rare and considered very special. If you are invited to someone’s home, a small gift, like chocolates, flowers or wine is acceptable. Gifts are opened upon receiving.

Currently agriculture counts for 3.8% of Australia’s GDP and 3.6% of the country’s labor.

Australia is a niche, high quality exporter of fruit and vegetables. It has some supply advantages in the world market due to its ability to supply in the counter seasons to the Northern Hemisphere. The main vegetable products included fresh carrots, asparagus, onions, cauliflower and potatoes, predominantly exported to Japan, Malaysia and UAE. Fresh fruit lines mainly included oranges, grapes and apples and were exported to the USA, Hong Kong, and Malaysia.

Major counter seasonal products include apples, citrus, mangoes, stone fruits, onions and asparagus. Counter seasonal competition for Australia comes from Chile and South Africa. The biggest market for Australian fruit and vegetable exports is Asia with the key markets being Japan, Hong Kong, Singapore and Malaysia. This is followed by New Zealand, the USA and the European Union.

Doing Business in the Australian Market

• Upon meeting, smiling and looking at the person's face is encouraged and it is appropriate to introduce yourself as 'Hello, I am John Smith, it is nice to meet you xxxxx'. It is common to use the term Sir, if you are unsure of a person’s particular title or honor.
• Always shake hands firmly, but not hard when meeting or greeting Australians. You also shake hands at the end of every meeting. Not everyone feels comfortable shaking a woman’s hand, so you can offer it, but don’t be offended if not reciprocated.
• Australians adopt using first names quickly, but always wait for your Australian counterpart to initiate. This is due to the casualness of Australian culture, and avoid being stiff or over courteous.
• Dress professionally and conservatively: men in dark colored suits with a tie and women in conservative attire (a dress or skirt and blouse for business is common). Women should not wear red, it is considered aggressive.
• Depending on the location and meeting type, dress codes can change. It is okay to ask your counterpart for what is appropriate to wear. Always remember it is better to over-dress than under-dress.
• Women should wear light make-up. Men should keep all hair neatly trimmed and shave daily.
• Be on time for all meetings; punctuality is critical. Leave time to find exactly where you are meeting (not just the building location).
• Appointments are necessary and should be made at least one month in advance if possible.
• Correspondence should begin as soon as possible. Time is a valued commodity and delays are seen as inefficiencies.
• It is important to speak directly because what you say will be taken literally. In turn, critiques and opinions should not be taken personally, but responded to with confidence and humor. Usually, Australians are trusting of people they consider their equals; this can change if you show them otherwise.
• Exchanging of business cards at the beginning of a meeting is a common practice.
• Good eye contact is crucial and shows professionalism and respect, as is active listening. Asking questions and giving opinions is respected. However, unsolicited advice or comments are unwelcome and should be avoided.
• During an executive style meeting with many people present, it is a good idea to watch and listen during the first part and then make a short and meaningful statement at an appropriate time - this may have more impact than stating your position at the beginning when you do not have additional details about the topic. This 'waiting' technique can also be considered less 'aggressive.'
• Taking notes during a meeting is acceptable as are PowerPoint presentations, but PowerPoint presentations should be limited.
• Australians value straightforward, simple presentations with both positive and negative outcomes listed. Try to be direct and brief, it is valued.
• Avoid aggressive sales techniques and keep negotiations to a reasonable amount of time. Negotiations will be quick, but do not rush, and bargaining is not appreciated. A decision will be made by high executives only after discussing matters with subordinates.
• Act modestly and casual in the business realm. Knowledge of Australian history is always a plus.
• Business is often conducted over drinks, but only if initiated by your Australian counterpart. It is customary to pay for rounds. When it is your turn for the round, make sure you pay, and do not go out of order, it is considered rude.
• If you invite others out for lunch or coffee, it is commonplace for you to pay, unless other arrangements have been made. When Australians invite business associates out for lunch or coffee, you will often “go Dutch.” If everyone is paying their own share, have notes and coin to pay for your part plus tip if required.
• Alcohol is served at meals, normally beer or wine, so if you are hosting, make sure it is on the menu.
• Australians take tea. Afternoon tea is around 4:00pm and tea is from 6:00 to 8:00pm. The tea at 6:00pm is considered dinner and it is expected you arrive a half an hour early or be on time.
• When traveling, if you are a single male passenger, you should sit in the front seat of a taxi.
• Avoid the terms rooting and stuffed, both have negative connotations in Australia.
• A man should never wink at a female. It is highly inappropriate.

Consumer Preferences, Tastes, and Traditions

Robust business, consumer confidence, high export prices for raw materials and agricultural products are fueling the economy.

Australia is a sophisticated market that is interested in new-to-market food products. An increasingly multicultural society creates opportunities for ethnic food products; however, Australia's rural population shows conservatism in their food preferences. They lack the desire for exotic and the gourmand sensibility that characterizes members of the metropolitan middle class. The aspects of food Australians find most pleasurable and valuable are nostalgia, tradition, balance, health, family togetherness, and sociality. There has been a shift towards fresh fruits and vegetables.

Export Business Reminders

• Before coming to Australia, use the many sources of information, for example, the U.S. Foreign Agricultural Service, state agricultural offices, and state/regional trade organizations.
• Build at least a minimum team within your company to help on the Australian market.
• Use metric terms.
• Ensure that all sales documentation is correct.
• Be patient regarding requests for documentation, ingredients lists, production process, and quality assurance.
• Respond to such requests with diligence and in a timely fashion.
• Use letters of credit to reduce risk.
• Hedge export values with your U.S. bank if you are concerned about exchange rate risk.
• Set up wire transfers for payments.

Food Standards and Regulations

Sanitary and Phytosanitary Measures

The United States maintains phytosanitary restrictions on many imports of Australian fruits, such as avocados and tropical fruit. Separate from the Free Trade Agreement, the United States has agreed to conduct import risk assessments on cherries, mangoes, avocados, and certain tropical fruit, while Australia has committed to addressing outstanding phytosanitary issues, including for apples, Florida citrus, and stone fruits.

The FTA affirms obligations under the WTO Sanitary and Phytosanitary (SPS) Agreement. It establishes an SPS Committee to enhance cooperation on SPS matters, including a focus on regulatory processes related to SPS measures, specific implementation issues concerning SPS matters, and other consultation procedures

The United States and Australia will work to resolve SPS barriers to agricultural trade, in particular for pork, poultry, citrus, apples, and stone fruit. 

• The Agreement establishes a new mechanism for scientific cooperation between U.S. and Australian authorities to resolve specific bilateral animal and plant health matters. 
• USDA’s Animal and Plant Health Inspection Service (APHIS) and Biosecurity Australia operate a standing technical working group to cooperate in the development of science-based measures that affect trade between the two countries.

Australia has strict food standards, as stated in the Food Standards Code: http://www.foodstandards.gov.au/thecode/foodstandardscode.cfm
http://www.foodstandards.gov.au/thecode/foodsafetystandardsaustraliaonly/index.cfm

Advantages/Disadvantages to Doing Business in Australia

Information: Import/Export

Agricultural imports from all countries (2004, in millions): $4,105, U.S. market share: 10%. Consumer food imports from all countries (2004, in millions): $2,920, U.S. market share: 9%.

U.S. Exports to Australia

*Calendar Year and Year-to-Date Comparison (In Thousands of Dollars)

U.S. Imports from Australia

*Calendar Year and Year-to-Date Comparison (In Thousands of Dollars)

Trade Agreements

PMA Global Trade Insights: U.S.-Australia Free Trade Agreement

The U.S.-Australia Free Trade Agreement (FTA) entered into force on January 1, 2005.  Negotiations for the FTA occurred between March 2003 and February 2004, and the agreement was signed in Washington, DC, on May 14, 2004.

In 2005, the United States exported a record of almost $555 million of agricultural products to Australia. U.S. exports to Australia were at record levels in 2005 for red meat, fresh and processed fruit and vegetables, tree nuts, pet food, vegetable oil, and rice, due in part to reduce Australian tariffs under the FTA.

During the same period, the United States imported about $2.5 billion of agricultural products from Australia. Since implementation, the U.S.-Australia FTA has provided America’s farmers, ranchers, food processors, and the businesses they support with improved and new access to Australia’s 20 million consumers.

For additional details, visit http://www.fas.usda.gov/itp/Australia/us-aus.asp

Annual Exporter Guide for Australia (2005)

http://www.fas.usda.gov/gainfiles/200510/146131118.doc

Information regarding market structure and trends in Australia available on page 5 of guide.

Australian related Links and Resources

Currency - the currency of Australia is the Australian dollar. Use the free currency converter to compare to dollars, British Pounds, etc.

Weather - visit Yahoo!'s up to date Weather for Australia.

News - check out all the latest Google news on Australia.

Intercultural Know-How - use the Intercultural Business Communication tool for tips on doing business in Australia.

Dialing Code - the international dialing code for Australia is +61.

Time -Australia encompasses three time zones. Canberra, Australia is +10 hours GMT. Get the time in Australia now.

History - read about the long and rich past of Australia at the DFAT.

Government Resources 

• Australian Department of Agriculture: http://www.daff.gov.au/.
•  U.S. Embassy and Consulates in Australia: http://canberra.usembassy.gov/contact.html or http://usembassy.state.gov/
• FSANZ is the food safety regulatory body in Australia.
• Background Notes on Australia.
• Horticulture Australia Ltd.