“We need to be smart about our products and our marketing,” CEO Allan Hood told bluenotes.
“We can’t compete on the scale of the major players, so we need to add value – something unique for the market we are targeting.”
Hood recently joined a delegation of Australian businesses leaders in Shanghai and Singapore as part of trip with ANZ’s International Business Development Team, touring worksites and meeting industry leaders.
“There’s such a huge appetite and interest for Australian products in Asia,” he says. “I think the quality of what we do, the history, the cleanliness, resonates with consumers in the market.
“It’s a great opportunity for us to take advantage of but it’s very daunting.”
The ratification of China-Australia Free Trade Agreement (CHAFTA) has eliminated significant dairy tariffs over the last two years, placing Australian companies in a much-stronger position than New Zealand, which has enjoyed a competitive advantage with lower tariffs in China since 2008.
“The progressive elimination of tariffs means we’re able to compete more on pricing with New Zealand and the EU,” Hood says. “The quality, taste and reputation of Australian products is well regarded and continues to drive demand in the market for us.”