South Korea’s hunger for Australian farm exports – including a new-found taste for our eggs – has been accompanied by warnings that strict government export approvals must be adhered to.
Korea needs eggs to help fill a significant shortage in local production caused by Asia’s recent bird flu outbreaks which have claimed about a third of the nation’s layer flock.
Until now Australia’s egg markets in Asia have been limited to niche opportunities in Singapore, Hong Kong and Macau worth about $3 million a year, but last month Korea scrapped its 21 per cent tariff on imports until July and has already welcomed Australian fresh egg shipments.
Austrade is also anticipating future demand for hatching eggs and live chicks for breeding as Korea seeks to rebuild layer and breeding stocks.
South Korea is a big agricultural market for Australia, and our fourth largest trading partner overall.
Sales of many commodities have climbed fast since the Korea-Australia Free Trade Agreement (KAFTA) was sealed two years ago, reducing import barriers.
Fresh cherry exports values have surged more than 50-fold since 2014.
Exports of Australian chipping potatoes and shelled macadamias more than tripled in the first nine months of 2016, while solid increases have also been notched up by exporters of beef, sheepmeat, wine and sugar.
Tariffs on eggs are also due to decline slowly as part of KAFTA.
The egg shortage has prompted Korea to temporarily remove import tariffs applied to a number of countries, including Australia the US and Spain.
However, while egg producers are urged to take advantage of the tariff change, Austrade’s Seoul-based Senior Trade Commissioner, Amanda Hodges, warned South Korea still maintained strict requirements for imports.
All air and sea freight containers of shell eggs to carry an Australian government seal and the number of that seal must also be included on the export and import certificates.
“The temporary tariff removal is welcome news for the industry, helping to highlight Australia’s capabilities, but exporters still need to meet Korea’s import requirements,” she said.
Australian exports could be worth as much as $20m this year according to the local industry, assisted by Korea’s preference for brown shell eggs, rather than white shells commonly produced in Europe and North America.