Identification of impediments to Australia's seafood industry Development and opportunities on export markets

The Australian seafood industry is of significant importance in the Australian economy valued at A$1.04 billion in 2005. However, Australia’s real export value of seafood exports accounts only for about 2 per cent of the total real value of world seafood trade. Asia is the major destination for Australia’s fisheries products, accounting for about 79 per cent of the total real value of Australia’s seafood products exports. The purpose of this paper is to examine the impediments to and opportunities for Australian seafood exports on world export markets. The survey of impediments to Australian seafood exports suggested that a strong Australian exchange rate and world prices reduced seafood export returns. Thus, the relative importance of exchange rate and world seafood prices was tested using a linear regression model. The coefficients of these two variables are statistically significant at 1 per cent levels, and the results suggest that they are important determinants of Australia’s seafood exports. The findings of this study also reveal that Australia is highly restricted in its access to world food markets including seafood by the impact of rigid import controls, tariffs and other trade barriers including export subsidies provided by foreign countries for their own exports. Australia therefore needs to give priority to diversification of export markets, particularly in the emerging markets in Africa, Asia, the Americas and the Middle East, where reduced tariff barriers are expected to improve market access. Australia also needs to be competitive in terms of product quality, improved packaging, adoption of quality management, undertake marketing innovation and development, in order to capture a sizeable share of the market from its major global competitors that have established markets in Asia and other potential export markets