February 16, 2021 News & Events

Hear from our partners: Aglive

Hear from our partners: Aglive

Australian farmers, retailers, producers, logistic workers and all individuals along the entire supply chain of a business have been doing it tough. From droughts, fires, COVID-19, trade tensions, supply chain closures and price pressures, there have been countless challenges. But Australians remain resilient in the face of adversity.

It is during these times that industries across the world are forced to innovate to solve some of the world’s most complex problems. Australian farmers and brands are now turning to innovative paddock to plate solutions, in order to prove the authenticity and provenance of their products across the entire supply chain.

“2020 has been an incredibly difficult year for Australians but in dire circumstances like these, people are forced to be more nimble, more efficient, and more innovative. Australians are leading a technology and supply-chain revolution: in 2021 we are seeing greater transparency and greater trust in both our imports, our exports and the food and products we consume and share,” said Paul Ryan, Managing Director of Aglive.
Agricultural technology innovators like Aglive have been helping farmers through some of the most difficult times by introducing innovative technology solutions that enable users to simply scan a QR code and save time on paperwork and logbooks. Farmers can track livestock from birth to plate via a world-first app, and upload any relevant data from ethical certificates,nutrient density, recipes and the stories behind their production techniques.
The most important way to make our supply chains more transparent is to ensure that data becomes available to all stakeholders along the supply chain, from compliance regulators to families in a shopping mall. Consumers can view in real time the trail of their purchase, and even provide live feedback after consumption.
The world’s producers are in the midst of a fight to solve the $50 billion global food fraud problem that has been exacerbated by the COVID-19 pandemic. According to PwC, every second kilogram of beef sold in China under the banner of Australian beef could be fraudulent. Supply chain provenance allows us to see proof of where our food comes from.
Mark Toohey, Aglive’s Managing Director, believes it took a global pandemic to learn that the lack of transparency along the supply chain is a national security issue. Now, it is farmers who are leading a supply-chain revolution.
“Governments have been slow to act, and are expecting farmers to seek new trade routes in the face of political tensions. That’s why we’re collaborating with the Australian agricultural industry’s biggest leaders, like Ceres Tag, Two Hands and Macka’s Beef, to lead technology-led initiatives in the Asia-Pacific and beyond to provide vital solutions to food traceability issues,” said Mark Toohey, Managing Director of Aglive.
February 2, 2021 News & Events

ECA Featured Member: Smart Mango

ECA Featured Member: Smart Mango

In this context of globalisation and fierce competition, consumers are exposed to so many choices from all over the world. The best exporters want to better understand their target market and apply specific marketing in order to succeed overseas.

“Having a good product with a decent budget and being able to speak English does not suffice to sell globally.”, says Doris Dunnon, the founder of Smart Mango.

Smart Mango, who has been with the ECA since 2016, specialises in Export Marketing and works with exporters to and from Australia. Their consultants help businesses through their export journey, from prospective marketing and market entry strategy to cultural adaptation, ‘re-branding’ and international promotion. Their expertise help reduce the typical risk, time and cost of growing overseas.

Smart mango was founded in 2013 in Sydney, Australia with the mission to change the typical approach to export. Doris Dunon, the founder had identified an unmet need, to apply marketing to export.

They have now grown into a specialised agency working on niche sectors of construction, manufacturing, IT, environment and education. Their clients come from all over the world, including Australia, France, Brazil, India, Indonesia, Japan, The Netherlands or Canada.
Q: What have been your Greatest achievement/s in 2019?
A: We are always really proud when we work with businesses on a specific project that gets transformed into helping them on their whole export journey, from the research phase of identifying opportunities to the successful market entry and continuous applied marketing. We started to work on their Australian export project two years ago with a market analysis, we then created a differentiating entry strategy. The company has now entered the market, we worked on the establishment of an Australian entity, recruitment, etc and are still working with them being in charge of 100% of their Australian marketing. We are taking them to Australian’s biggest trade show in their industry in 2020.
Q: What’s been big for 2020?
A: 2020 will be big in the construction industry. We are working on some exciting construction projects. We have signed some powerful partnerships some complementary businesses, event organisers in the UK and the US and have slowly but surely build a reputation as an export marketing specialist for building materials and services. We will be showcasing next month at the Sydney Build Expo.
Q: What have been the most notable exporter challenges/ how have they been overcome.
A: Biggest exporter challenge is that we target markets (Western Europe, North America or UAE) which are not on the export priority list of Australians authorities so there’s less support available in terms of information of trade missions.
Niching down has helped a lot and building our own network is key.
Q: Can you mention a few New Export Markets?
A: Markets with a strong offering in building materials and services such as Dubai, Canada, Germany, the UK.

To find more about Smart Mango, visit their website: http://www.smartmango.com.au

February 2, 2021 News & Events

The UK has confirmed over the past weekend, they will formally be applying to join trans-Pacific trade bloc

The UK has confirmed over the past weekend, they will formally be applying to join trans-Pacific trade bloc

The UK has taken a major step in the process of joining CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership), one of the world’s largest and most dynamic free trade areas.

International Trade Secretary, Liz Truss, alongside the current chair of the CPTPP Commission, Mexican Economy Minister Graciela Márquez, opened discussions between senior UK trade officials and Chief Negotiators from all 11 members of the Partnership to discuss potential UK accession.

This is the first time the UK has met with Chief Negotiators from all 11 members of the Partnership to discuss UK accession, and the first time CPTPP members have had such a discussion with a country seeking membership since the Partnership was created in 2018.
The UK held preparatory conversations with all CPTPP members. If the UK decides to apply, it will enter into a formal accession negotiation with all member states.
This meeting follows major progress in negotiations between the UK and Japan, the beginning of negotiations with Australia and New Zealand, and the resumption of negotiations with Canada, as the UK looks to focus on trade with the dynamic Asia-Pacific region. CPTPP membership also provides an opportunity to expand trade links with key partners in the Americas.
Liz Truss, International Trade Secretary, said:
“Joining CPTPP would send a powerful signal to the rest of the world that Britain is prepared to work with countries who champion free and fair trade.”
“Membership would bring new opportunities for our go-getting businesses, more choice for our consumers, and provide us with greater economic security. Strategically, it would help us forge closer ties with the wider Pacific region and put us in a stronger position to reshape global trading rules alongside countries who share our values.”
The UK aims to join CPTPP because membership will:
Help put the UK at the centre of a network of free trade deals with dynamic economies – making us a hub for international businesses trading with the rest of the world.

Put us in a stronger position to reshape global rules and drive reform at the WTO

Boost our economic security – hitching the UK to one of the world’s largest free trade areas. An advanced agreement full of countries who are committed to the rules of international trade.

Make us more resilient to future crises by diversifying our trade and supply chains.

The free trade area removes tariffs on 95% of goods traded between its members, which could reduce costs for businesses and create new economic opportunities for UK exporters. Since 2009 trade between the UK and CPTPP countries has grown on average by 6% every year and was worth over £112bn in 2019.
Wilson Del Socorro, Global Director of Government Affairs at Diageo, said:
“We welcome the UK’s ambition to join the CPTPP as part of its broader strategy to unlock international trade and investment opportunities for British business. We are excited by the growth opportunities that this trade deal will help unlock over the long-term where tackling import tariffs and improving the broader regulatory environment are key priorities for a number of markets.”
“Diageo already has significant presence and scale in many of the countries represented in this Agreement and we look forward to this Agreement creating stronger economic ties with the UK. For instance, in Mexico – a key export destination for Scotch whisky – we are the largest international spirits player directly employing over 1,200 people across a number of production sites and offices in the country. We are also market leaders in the fast-growing premium and super premium tequila category with our acquisition of Tequila Don Julio in 2015, Casamigos in 2017 and Pierde Almas 2018.”
Willian Santos, International Sales Manager at ABI Electronics, said:
“We thoroughly support the UK government’s initiative to join CPTPP. For nearly 40 years, ABI products have been supporting businesses across the region. From the textile industry in Peru and Aerospace in Malaysia to the toy manufacturer LEGO in Mexico and automotive conglomerates and Japan. In fact, it was from Malaysia that ABI’s first international order came from in 1986.”
“Becoming part of CPTPP will certainly encourage other British manufacturers to follow ABI’s footsteps leading to a transformational export journey.”

The partnership includes ambitious agreements on digital trade, data, financial, professional, and business services, all of which are areas where the UK is a global leader and stands to benefit from more trade.

This article was originally published by UK Government (20/09/2020)

February 2, 2021 News & Events

Exports showing steely resolve

Exports showing steely resolve

The December goods trade surplus of $9 billion was a significant increase, up $7.4 billion from the November surplus, according to newly released data by the Australian Bureau of Statistics (ABS).

“Imports have fallen following a November spike to be more in line with recent history”, said ABS Head of International Statistics, Katie Hutt, “while exports of metalliferous ores and cereals are the strongest in history, resulting in the fourth highest goods trade surplus on record”.
The strong surplus is heavily influenced by trade with China. Imports from China fell $641 million (7 per cent) in December, while exports to China increased $2.3 billion (21 per cent). Australia’s goods trade surplus with China alone stands at $5.2 billion for December.
Overall, a $4.9 billion (16 per cent) increase in exports was recorded for December 2020 bringing total exports to $34.9 billion. The main drivers were increases to metalliferous ores, cereals and coal. Metalliferous ores was up $2.8 billion (22 per cent), 82 per cent of which was iron ore, which was up $2.2 billion (21 per cent) to $12.5 billion.
The increase in cereals was driven by wheat, up $604 million (423 per cent) and barley, up $182 million (254 per cent). Strong growing conditions in Australia’s wheatbelt, and lower than average rainfall in the Black Sea growing region has driven demand for Australian wheat to record highs.
Driving the coal increase was hard coking coal, up $501 million (38 per cent). While hard coking coal exports to China have diminished since mid-2020, increased exports to India, Japan and South Korea have offset some of the fall.
Total imports decreased $2.5 billion (9 per cent), to $26 billion in December, following strong imports in November. This decrease was most evident in transport equipment, down $1 billion (74 per cent) and telecommunications and sound equipment, down $511 million (23 per cent).
Offsetting the decreases were specialised machinery, up $132 million (13 per cent) and road vehicles, up $66 million (2 per cent) to $3.7 billion.
“Carrying on the trend through the second half of this year, we continue to see a rise in road-vehicle imports with December recording the highest monthly value, surpassing the previous record set in June 2018” said Ms Hutt. Despite the record December, imports for the 2020 calendar year are the lowest since 2015, highlighting the pandemic’s impact on the imports of motor vehicles in early 2020.
The ABS would like to thank all those who contributed to this data.
February 2, 2021 News & Events

FTA upgrade with China applauded in New Zealand

FTA upgrade with China applauded in New Zealand

New Zealand’s politicians, business people and consumers are welcoming the signing of a protocol to upgrade a free trade agreement (FTA) between their country and China earlier this month.

On Saturday, New Zealand Prime Minister Jacinda Ardern told thousands of participants at the 2021 Chinese New Year Festival and Market Day event in Auckland that the signing of the FTA upgrade was a milestone for both countries.

“Alongside the renewed commitment to our people-to-people links, stands our ongoing commitment to our economic and trade ties, which are equally long and deep and important to us,” said Ardern.
“The FTA upgrade is a really important milestone for both countries, and shows the strength of our relationship,” she added.
According to the protocol signed on Tuesday, on the basis of the Regional Comprehensive Economic Partnership, China will further expand its opening-up in sectors including aviation, education, finance, elderly care, and passenger transport to New Zealand to boost the trade of services.
For the trade of goods, the upgraded FTA will see both countries open their markets for certain wood and paper products and optimize trade rules such as rules of origin, technical barriers to trade and customs facilitation, China’s Ministry of Commerce said in an online statement.
New Zealand will lower its threshold for reviewing Chinese investment, allowing it to receive the same review treatment as members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
In 2008, China signed an FTA with New Zealand, the first deal of this kind between China and a developed country. China is currently New Zealand’s largest trading partner, the largest source country of foreign students, and second-largest source of foreign tourists.
The New Zealand public is also applauding the FTA upgrade. Many people believe that the bilateral ties are getting fresh impetus and gaining greater momentum, while others are looking forward to the future business opportunities that the FTA upgrade will bring along.
Chris Lipscombe, international business strategist, was excited to hear the news.
“It is a clear statement around cooperation, particularly a commitment to fair non-discriminatory and transparent relationships between the two countries,” Lipscombe said, adding that “this is a really positive step forward.”
Bill Dwyer, international business lawyer and head of China Desk, Tavendale & Partners, believed that the upgrade is a welcoming development particularly for New Zealand exporters.
A really important thing is that “both parties are making greater commitments to free trade,” said Dwyer.
Notably, Auckland employee in the financial sector Dale Singh thought the upgrade is amazing news for New Zealand’s economic recovery from COVID-19.
This FTA upgrade will “really benefit the economy” especially with this hit by the coronavirus pandemic, said Singh.
“The FTA upgrade brings certainty during the COVID-19 uncertainty. It will give New Zealand businesses more confidence to plan for the future,” said John Qin, director of a New Zealand honey exporting company.
“We will use this chance to upgrade our products, adding up more honey flavors especially for (the) Chinese market. Let Chinese consumers have more chance to taste high quality New Zealand honey,” said Qin.
“Any trade improvement between China and New Zealand will always have flow on benefits for all exporters, so we will benefit eventually. Any strengthening of trade relations between countries always benefits everyone in the longer term,” said Roy van den Hurk, who runs a dairy company in New Zealand.
“It will speed up the overall supply chain which will benefit the consumers by having fresher product. It will also reduce costs, which will benefit the consumers by having less expensive high quality products,” he added.
Meanwhile, Auckland University student Tama Payne said that “hopefully we could bring some services to China and hopefully we could get services back from China.”
“I think it will be good for all of us,” added Payne.

This article was publised by Bigesnetwork.com (31/01/2021)

February 2, 2021 News & Events

“At a real pivot point”: What to expect in 2021 if you trade overseas

“At a real pivot point”: What to expect in 2021 if you trade overseas

We went from recession to recovery at whiplash speed in 2020. And every time the Aussie dollar goes up or down, so do the profits and losses of businesses with foreign exchange (FX) exposure.

Heads up for those SMEs: Steven Dooley, currency strategist at Western Union Business Solutions, says they think the Australia dollar could hit US$0.80 next year, but — well, there are a lot of buts.

For example, will the COVID-19 vaccine prove successful? How will Brexit affect European markets and trade in the UK? What about bubbling geopolitical tensions between China and the US and Australia? And all the other question marks hovering over global economies, as laid out in Western Union’s report Are you ready for 2021?

There’s no way out but through, so here’s what to expect next year — and how to manage all the uncertainties.

Confidence high for a strong recovery

More than 90% of countries could see their economies shrink this year, Western Union’s report says, while emerging markets collectively face their first year without growth in at least 60 years.
Sounds bleak. But the performance of the Aussie dollar tells another story.
Our national currency is traditionally closely tied to global growth expectations, Dooley explains, so we know that within stock markets at least people seem to expect a strong recovery.
“Before COVID-19 hit, the Aussie dollar was buying US$0.55, now it’s at its highest level in two years,” he says.
“And after the Federal budget was released in October, Australian consumer sentiment jumped 32%. So it’s incredible to think people feel more confident now than at the start of this year, when things were looking pretty good.”
Download Western Union’s latest report now in which experts uncover the key themes and events that could reshape the future of foreign exchange.

But it could go either way

Historic low interest rates and record government stimulus spending are contributing to this rosy outlook, but could be building what the report calls “a false sense of optimism”.
If the economy is an inflating balloon, there are lots of pins around that might prick it, including all the uncertainties and risk factors mentioned above. And with so many possible futures ahead of us, we’re at a pivotal point.
“If people still feel confident going into next year, the Aussie dollar could hit absolutely rocking highs, but if things go bad, it could fall very sharply,” Dooley says.
“Any business with FX exposure needs to recognise how much the fluctuating Australian dollar can impact their profits and their cash flows, and to know that we expect it to be more volatile in 2021.”

Balancing flexibility and FX exposure is key to managing volatility

With so much forecast uncertainty, the best thing SMEs can do is embrace it, Dooley says, while trying to embed as much flexibility and agility into their business as possible.
Here are his top tips for next year:

Plan ahead, twice. On an average year the Aussie dollar fluctuates by 19%, Dooley says. So from our current starting point we can expect it to fall between US$0.60-0.80 in 2021. Have a plan in place for what happens at each end of the range.

Balance short-term market protection against long-term flexibility. With the Aussie dollar at its highest rate in years, it might be tempting to lock them in with forward contracts long-term, but doing so means you could miss out on taking advantage of positive changes to the market.

“It’s different for every company, but in general only being protected for three months is important, giving you that flexibility over month four, five and six,” Dooley explains. “Because we just don’t know how things are going to play out.”
Just like this year, outperforming next year will depend heavily on your ability to react quickly to changing market conditions, not just in terms of FX exposure but also in a broader sense. For example, being able to go after new markets, or if you’re not sure of demand, ordering stock three months in advance instead of six.
“Having the ability to adapt and to identify new markets is going to be critical again next year, as we adjust to a rapidly changing world,” Dooley says. “That’s been the whole story of 2020, and likely to be the story for 2021 as well.”
February 2, 2021 News & Events

Good Strategy begins with assessing your Business’s Capability & Capacity

Good Strategy begins with assessing your Business’s Capability & Capacity

2021 has begun with a flurry of activity as we all continue to adapt to an everchanging landscape and plan strategically for an unknown future.

The shifting sands of strategy faced in 2020 will continue well into 2021.

Companies can no longer make decisions based on flight or fight responses, and everyone needs to assess their business’s capabilities and capacities before we can begin to build good strategy. A core focus for the ECA in 2021 across our training and support programs will be helping businesses develop good strategy to succeed in the unpredictable arena of international trade.

Begin with an assessment of 2020 and review how your domestic and export markets evolved. What similarities between your sales channels emerged and what lessons do they take into 2021? Can you through your reporting mechanisms, obtain clear view over pricing trends, inventory control and competitor’s activities. Reporting and the speed at which you report is key to weathering the changing landscape. The fluctuation and volatility of domestic, regional and international trade aren’t eliminated and there will be further hints of disruption along your sales and supply channels. You will need to remain agile in your approach and willing to continually evolve.
Moving forward, your capacity, resources and ability to scale will be tested. Consider how your financial situation has changed. Many businesses are still reigning in bad debt from 2020 and gaining control of cashflow will be critical to your success. Allow an assessment of your capacity to inform your financial plans for growth in 2021.

Next, look inward at your capabilities and how they have been stretched. We have seen new structures employed across a wide range of industries and the development of new expectations across workforces. Many businesses have become much flatter in decision making as they have adapted to the necessity of becoming more agile in decision making.

Where does your business rate on efficiency and speed of communication that is required for making strategic decisions? How are your teams placed and what is their attitude that they have returned with for 2021? The culture of your business has never been more important.

Businesses can no longer rely on old cultural structures; they must be cultures of accountability and learning in order to succeed. It is a business’s responsibility to rebuild staff capabilities to propel them towards the overall corporate objectives. With the world still changing, it’s time to realign.

Finally, a key activity across 2021 should be to assess and review your business’s digital position and data analytics. A digital position is no longer a choice, and most Australian exporters have not devoted adequate resources or skills to build a digital position. If you do not possess a strong digital position, then you will need to look outside of your organisation for the specific skills set. A digital position is a valuable investment and asset.
The ECA is focusing on developing skills and resources to assist exporters plan and measure their capabilities and capacities. These resources will be delivered through online training modules, webinars and face to face seminars. The ECA will also be offering a series of consulting and mentoring services to support businesses in 2021. If you would like to enquire about any of these services, please do not hesitate to contact the ECA at info@export.org.au
January 27, 2021 News & Events

Australia ‘frustrates the hell’ out of Xi Jinping with massive trade surplus

Australia ‘frustrates the hell’ out of Xi Jinping with massive trade surplus

Rising iron prices will “frustrate the hell” out of China President Xi Jinping, as Australia pushes past trade sanctions to its fourth-largest trade surplus on record.
That’s according to independent economist Saul Eslake, who said China’s trade war against Australia wasn’t having the effect it had hoped for.
Over the month of December, exports to China increased 25 per cent to $9.8 billion, according to preliminary data published by the ABS on Monday.

 

Iron ore accounted for 80 per cent of the exports to China, underpinning a 16 per cent increase in the value of Australia’s total monthly exports to $34.9 billion.

It drove Australia’s goods trade surplus (exports minus imports) up 18.4 per cent to $9 billion, helped along by a 9 per cent decline in imports.

Mr Eslake told The New Daily China “has no alternative” to Australian iron ore, which has so far been left out of the ongoing trade disputes.

“It’s offsetting the impact of the trade sanctions [that China is] imposing on a wide range of other [Australian goods],” he said.

China bought 11 per cent more Australian iron ore in December than in November, and paid 9 per cent more per tonne, as prices increased to more than $200 per tonne.

The double-whammy more than offset the impact of China’s sanctions on goods like barley, lobster and coal, which are widely regarded as retaliation for Australia’s foreign interference laws and human rights commentary.

The trade war has seen talks between trade officials ground to a halt over the past nine months.

Prime Minister Scott Morrison on Monday said it was unlikely he would meet Xi Jinping to discuss the relationship, unless China accepted a meeting with no policy conditions.

Although iron exports remain strong, the trade sanctions and disruptions from COVID-19 coincided with a 2.1 per cent decline in exports to China over 2020.

But businesses are diversifying, particularly in industries disrupted by China’s tactics, in what the ABS said showed a “steely resolve” among exporters.

Barley exports over the month of December increased by a record 254 per cent, as demand spiked from nations like Saudi Arabia, which bought $106 million worth.

Elsewhere, coal exports increased 26 per cent month on month to $173 million, as nations like Japan, India and South Korea increased their orders.

Coking coal exports increased 27 per cent to Japan, 38 per cent to India and 48 per cent to South Korea, while trade with nations like Saudi Arabia, Switzerland and France skyrocketed in December and annually.

Exports to Saudi Arabia shot up 154 per cent year on year to $183 million, and exports to Switzerland grew 274 per cent to $741 million.

Although both markets pale in comparison to the China trade, Export Council of Australia chair Dianne Tipping said the figures are an early sign that businesses are finding new buyers.

“COVID-19 has really highlighted the issues … with having our eggs all in one basket,” Ms Tipping told The New Daily. “So it’s exciting to see businesses start to expand the diversity of trade.”

China remains Australia’s largest and most influential trading partner, though, and broke a record of its own in December, buying $250 million worth of Australian wheat.

China had not bought any wheat for four months prior and its return to the market eclipsed monthly wheat exports to any country on record.

The ABS will publish final trade figures for December, including the services trade, on February 4.

This article was originally published on The New Daily (25/01/2021)

January 19, 2021 News & Events

Supporting balance of work at home and in the office

Supporting balance of work at home and in the office

So, fast forward to 2021 and the biggest change we have seen from a recruitment perspective is that employees want to continue to “Work At Home”.

Covid-19 forced many companies to create a work at home policy and I think many with great success. Work at home does not mean or need to be 5 days a week. The majority of employees are wanting a balance of work at home and in the office to ensure the team engagement and office support continues.

Below are a few points that may make you think twice before asking your team to come into the office

Increased Demand To Work At Home

The demand for flexibility in ‘where’ and ‘how’ people work has been building for years. Prior to Covid-19, surveys repeatedly showed 80% of employees want to work from home at least some of the time. Over a third would take a pay cut in exchange for the option. While the experience of working at home during this crisis may not have been ideal as whole families were in one location, it gave people a taste of what could be.

Why Management Don’t Want Employees Working At Home

One of the biggest holdbacks of Work At Home is trust—managers simply don’t trust their people to work unsupervised. They are used to managing by counting butts-in-seats, rather than by results. That’s not managing! What’s more, seeing the back of someone’s head tells a manager nothing about whether that person is actually working. If you don’t trust an employee, why are they employed within your business at all?
If employees are given a genuine Work- Life Balance, you will see just how much happier and engaged they are without the stress of commuting, being away from loved ones, workplace interruptions, etc.

Cost Saving Opportunities Of Work At Home

Work-at-home opportunities in the past have been for the attraction and retention of employees, but during Covid-19 it was purely about saving money. Organizational leaders desperate to shed costs, found they could do more with less real estate. Studies have shown employees are not at their desk 50% to 60% of the time! That’s a huge waste of money.

Potential Impact Of Work At Home On Sustainability

One of the reasons climate change experts have a hard time getting people to change their habits is that the impact is hard to see. But even in the early days of Covid-19 we saw a dramatic reduction in traffic, congestion, and pollution. While sadly sustainability has not been a primary driver of remote work in recent years, being able to see the effects may finally flick the switch for employers and employees. The fact is, there is no easier, quicker and cheaper way to reduce your carbon footprint than by reducing commuter travel.
January 19, 2021 News & Events

ECA featured member: Down Under Enterprises

ECA featured member: Down Under Enterprises

ECA Member Down Under Enterprises has been with the ECA for over five years now.

“Our business is over 90 per cent export – so we felt like we needed to be connected with ECA and the resources which ECA makes available to members,” said Phillip Prather, Head of Marketing and Operations at Down Under Enterprises.

Down Under Enterprises is an Australian family owned and operated company which grows, manufactures, markets, and exports across the globe a range of native Australian ingredients on a wholesale basis to manufacturers of products for the cosmetics/personal care, home care, pet care and other industries.

While their leading product is Tea Tree Oil, renowned globally for its antimicrobial properties, the company is also well recognised for a wide range of other Australian native ingredients like Eucalyptus, Sandalwood, Lemon Myrtle, and many more.

“Our company was founded in 2001 and until 2014, our sales were 100% export. In fact when we applied for the Export Awards that year, we listed 100% export and ECA contacted us thinking it was a typo on our submission. Our target markets have always been export oriented, to the US originally, and now across all continents and key markets globally,” Mr Prather said.

The company’s key industry verticals are cosmetics and home care products. Both of these industries are becoming more and more quality and regulatory focused.

“A significant amount of our time is spent working through product documentation, regulatory submissions, and various certifications to enable our products to be adopted by companies, especially the multi-nationals. These industries are moving towards a more regulated medical/pharma ingredient environment. What makes it even more challenging is staying up to date with each country/region’s specific requirements – and this level of regulatory scrutiny is constantly increasing,” he added.

“The most exciting thing that happned for Down Under Enterprises in 2020 was the consumer’s reactions to personal care and home care products once confronted with such a health crisis such as COVID-19.
Prior to the epidemic, some manufacturers turned a blind eye to ingredient purity and quality, as long as it gave them the ‘least cost’ option (often adulterated product). From early in the Coronavirus outbreak, we were overwhelmed by manufacturers wanting pure Tea Tree Oil for their personal care and home care cleaning products. When we quizzed them about their requirements, they often stated that it was due to overwhelming consumer demand for purity of the Tea Tree Oil – and Australian origin in particular. So in effect, when consumers’ health was really on the line, they sought out Australian grown Tea Tree Oil, spurning cheap, lowest cost alternatives.”
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