Australian exporters are taking advantage of growing demand and better access to agricultural products in Latin America.
The network of Australian government advisers expanded in 2019. Australian advisers (agriculture) were appointed in Santiago de Chile and Mexico City. Since 2019, market access has been improved for more than 35 agricultural products. Tariffs have also been reduced under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
This article explores recent victories and subsequent opportunities for barley, tallow, ruminant genetics and seeds.
First shipments of Australian barley to Mexico
Australia exported its first shipment of Australian barley to Mexico in January 2021. Subsequent shipments have led to more than $ 48 million in barley exports in 2021 to date (ABS 2021).
The increase in export opportunities is the result of several factors, including:
- ongoing work by government and industry to build relationships in Mexico
- reduced fares. Under the CPTPP, the Australian tariff rate on barley increased from 46% to 23% in 2021. Tariffs are expected to fall to 0% on January 1, 2022.
- demand for barley from Mexican brewers. Mexico is the fourth largest beer producer in the world. Australia is well positioned to fill the domestic supply gap.
- more efficient and cost-effective biosafety treatment options.
In May 2021, Australia also exported barley for the first time to Ecuador and Peru. Opportunities in Colombia continue to be explored.
New market access for tallow
Australia exported its first shipment of tallow to Mexico in August 2021. The shipment comes after long-term work by government and industry to establish market access.
Mexico imported $ 200 million worth of tallow in 2020, all supplied by the United States (TradeMap 2021).
Australia also gained market access for edible bovine tallow in November 2020 for Ecuador. This was followed by Costa Rica in June 2021.
Australian production of tallow and beef is expected to increase in 2021-2022.
Increased opportunities for ruminant genetics
Australia is a world leader in ruminant genetics. In April 2021, Australian market access for sheep and goat reproductive material in Brazil was confirmed. This came after the health certification provisions were changed.
In 2019, new access to reproductive material was obtained for Peru (sheep and goats) and Paraguay (cattle).
New market access for Australian seeds
In October 2021, Australia agreed to export conditions for rice seed for sowing to Argentina. This goal was achieved after only a few months of technical negotiations. It was one of the fastest market access openings in recent history. Argentina is now issuing import permits to allow trade to begin.
Since 2019, Australia has gained new access for a range of seed varieties in Latin America (see Table 1).
Table 1: Australian agricultural seeds with new access to Latin America since 2019
|Type of seeds||New market access|
The Importing Country Requirements Manual contains import requirements for agricultural products.
The Australian government has published a guide to help businesses get the most from CPTPP.