Avocados Australia signs AUD $300 million purchase agreement with Shanghai Markets

Avocados Australia attended China's largest import expo in Shanghai. (Supplied)

From 5 to 10 November, Avocados Australia’s new chair, Matt Kleyn, new deputy chair, Lucia Philip, and chief executive officer, John Tyas, and a delegation of Australian avocado growers and exporters attended the China International Import Expo (CIIE) in Shanghai.

While in China, to assist with advancing Australian avocados’ market access, Avocados Australia signed a purchase agreement with Shanghai Huizhan International Trading Co. Ltd. for AUD $300 million and a number of Memorandums of Understanding (MOUs) with key organisations to pave the way for future trade.

These activities further demonstrated Avocados Australia’s commitment to do all it can to progress technical market access for Australian avocados, by attending China’s largest import expo, strengthening stakeholder relations, and showing the enormous interest in Australian avocados in China.

It is up to the Australian and Chinese Governments to determine the negotiation process and timeframe.

The Shanghai Huizhan International Trading Co. Ltd. is a multi-qualification import and export trade service platform enterprise invested and managed by Shanghai Huizhan Fruit & Vegetable Wholesale Market.

The markets have committed to pre orders of AUD $300 million worth of avocados from Australian growers and exporters as soon as access is granted by the General Administration of Customs China.

This unprecedented purchase agreement shows that Australian avocados are a valuable commodity and conducting negotiations for market access makes sense and would be in the best interests of both the Australian and Chinese Governments.

Avocados Australia signed MOUs with JD Super, a prominent e-commerce platform and number one online fresh fruit trader, Joy Wing Mau, the largest fruit importer in China, and the China Chamber of Commerce of Import & Export of Foodstuffs, Native Produce and Animal By-Products (CFNA), China’s fruit import and export association.

At the CIIE the Australian avocados stand, that was part of the Taste of Queensland pavilion within the Australian pavilion, attracted a lot of attention and Chinese delegates showed great interest in the Australian avocados brought in just for the occasion.

For this event, Avocados Australia partnered with Chinese company More Yoghurt to provide CIIE attendees with avocado smoothies made with fresh Australian avocados that were brought to Shanghai under special protocol conditions.

Avocados Australia cooperated with the Australian Department of Agriculture, Fisheries and Forestry (DAFF), General Administration of Customs China, CIIE Bureau, Austrade, Trade and Investment Queensland, and logistic partners DHL and Cosco, to secure the special protocol that enabled one tonne of fresh samples of Australian avocados to be available and served during the Expo.

The Australian avocados’ stand was extremely popular and created great excitement about the future prospect for Australian avocados in China.

Many Chinese media outlets were keen to learn more about the avocado industry’s ambitions in China and when they can expect to be able to buy this wonderful Australian product in China.

John Tyas, Avocados Australia’s chief executive officer, was delighted with the interest in Australian avocados and said that the Australian avocado More Yoghurt smoothies were a hit with delegates, buyers, and the public.

“It is clear that China is very keen to have access to Australian avocados and Australian growers and exporters are very keen to do business, we just need the technical market access,” he said.

“Achieving China market access would be a game changer for our industry, it will help give growers sustainable returns that will ensure the future prosperity of the industry, and regional avocado growing communities like those in the Bundaberg region.”

The Australian Government’s two current market access priorities for China are apples and blueberries.

Avocados Australia hopes that negotiations for apples will be successfully concluded soon, but the date is still not known.

Avocados Australia hopes that, once apples are approved, avocados are selected to replenish the apples in the 2X2 negotiation, with the new two priorities being set as avocados and blueberries.

“Given the tremendous support and demand for our avocados in China, reflected by the AUD $300 million purchase agreement and three strategic MOUs, we would be excited for the Chinese Government to have the option to assess our Australian avocado application,” said Mr Tyas.

Avocados Australia would like to thank the Queensland Government, and Trade and Investment Queensland for their assistance.

Special thanks also go to the contributing Australian avocado growers that provided additional financial support to assist with Avocados Australia’s media program in China.