Company: AUSTRALIA-INDIA FRESH FRUIT ALLIANCE
DEVELOPING A NEW MARKET IN INDIA
In April 1999, after the Indian Government first liberalised fresh food imports, the Australian Horticultural Corporation responded quickly, leading a delegation of 12 exporters to India, taking samples of Australian citrus, apples and pears. Six exporters from Western Australia, South Australia, Victoria and Tasmania formed the Australia-India Fresh Fruit Alliance and then decided to develop a cool chain distribution system from the port to the consumer that was beyond the capability of any one exporter.
The Alliance continues to develop the Indian market, selling 140 tonnes of fruit worth A$152 000 in 2000 and 460 tonnes worth A$472 000 in 2001. The first visit, subsequent market research and assistance from Austrade in Mumbai and the Commonwealth Government initiative, Supermarket to Asia, provided the Alliance with contacts that later proved useful in solving problems and facilitating market entry.
Tariffs on fresh fruit are currently high, at nearly 60 per cent, reducing the profitability of the business. However, India’s WTO obligations require it to reduce these tariffs gradually over the next few years, which will make the market more attractive. In the meantime the Alliance is building the market for its brand by ensuring its product is maintained in a cool chain right up to delivery to the retailer.
Source: Australia India Fresh Food Alliance, 2001.