BULLETIN

7th April 2020

Airfreight support package and COVID-19 support updates 

Personal note from the STAG Chair

To all exporters and industry representatives,

The announcement last week by the Federal Government to support our airfreight dependent sector was a welcome relief to those that have been dealing with this crisis since January 24th.

The combination of a slowly improving China market and some better freight signals from commercial carriers means we can continue to trade, albeit with less certainty than we would like. When we started discussions with Government two weeks ago, we were facing zero flights and more uncertainty.

The addition of Government-backed flights means we have improved capacity available throughout the week in addition to current options.  Importantly this is at freight rates that reflect historical levels paid (based on product format).

I encourage you all to participate in the process underway by the International Freight Coordinator-General, Michael Byrne and his team. This is about getting our economies back on track by ensuring we keep our export businesses running, fishers in the sea while supporting our buyers and consumers with quality Australia product.

The collaboration across our seafood sector via this process with Lobster/Abalone/Salmon and Tuna has been exceptional and shows again what we can achieve when we unite on key market and trade access issues that affect us equally.

Thanks,

Nathan Maxwell-McGinn

Chair – Seafood Trade Advisory Group

*** Important: Register your interest in the Airfreight Support Package ***

All seafood exporters wanting to participate in the government’s airfreight support program need to register their interest in the government’s airfreight support package.  You can register online here.  You can also call the Department on 02 6272 2444. 

Airfreight Support Package – how does it work for seafood?

Last Friday we held a teleconference to discuss how the support will work for seafood.  Thank you to the Assistant Minister for Fisheries and Forestry Jonno Duniam for taking the time to join us.  The STAG and SIA thanked him and his office for the work done behind the scenes to make the package a reality.

It is important that the support package works effectively for seafood exporters. A number of issues were raised during the teleconference that the STAG will continue to work on including:

• Need for State Governments to provide additional funding and the process that will occur
• Need for flights ex Tasmania and South Australia and for the connections with international freight routes to be suitable for the needs of the product – noting the need for speed for live seafood
• Need for adequate space to be allocated to seafood (as a high-value premium export) over other lesser value/less time-sensitive products
• Need to recognise that transporting live seafood is a specialised area and that the freight support arrangements will need to allow those specialised operators to be involved.

The initial freight routes are detailed in the fact sheet here.  Note that these freight routes are the ones that appeared to have the most need during the initial industry consultation.  If you need freight space on a different route you are strongly encouraged to register your needs so that if possible they can be accommodated.  Michael Byrne has been appointed to coordinate the program nationally and work is proceeding quickly.  Michael can be contacted at Michael.byrne@austrade.gov.au

The key message is that there is no playbook – it is a work in progress and whenever possible the support will be provided where it is needed.

Export Market Development Grants – changes for 2019-2020 and 2020-2021 

An extra $49.8 million has been provided for the Export Market Development Grants (EMDG) program in the 2019-20 financial year.  This means:

• Any business which has incurred eligible EMDG expenses for promotional activities in 2019-20 financial year will be able to seek reimbursement for 50 percent of these expenses without the Export Performance Test applying, when they apply from July 1.
• Applications lodged in the 2020-21 financial year can claim expenses even if events have been cancelled due to circumstances beyond a business’s control.

For more information about this and other support that Austrade can provide please go to the Austrade COVID 19 Update Page where you can also get access to updates about markets in China, Europe and South Asia.

Seafood Industry Australia

SIA are continuing to monitor the situation and to lobby the government for support as the COVID 19 measures are impacting on seafood businesses.  Go to their website to find out more. Their most recent advice on COVID 19 is here.

China Market News

Note these reports are based on publicly available media reports (including informal translations of Chinese language media).  Readers need to verify the accuracy and relevance of the information before taking any action in their businesses.

The oldest restaurant in Guangzhou, Fisher's Village can't bear it anymore!

 Source: Seafood Guide, 22nd March 2020

The oldest and biggest seafood chain group in Guangzhou announced it will close one of its 20 stores because of COVID-19.   Fisher's Village, known as the ‘aircraft carrier in seafood ‘in Guangzhou, announced that it was so affected by COVID-19, it led to difficulties in the operation of the store and this put it under huge economic pressure. It became the first large-scale restaurant to close during COVID-19.  To read the full translated article, click here.

Hong Kong Market News

Note these reports are based on publicly available media reports (including informal translations of Chinese language media).  Readers need to verify the accuracy and relevance of the information before taking any action in their businesses.

Jumbo Floating Restaurant comes to an end

Source:  CEO, 24th March 2020

The largest, high-end seafood restaurant Jumbo Floating Restaurant that belonged to the Ho family decided to end their business last month after 44 years of operation. This famous restaurant is well known for its political, business and entertainment celebrity fans. Due to the constant decrease of tourists from mainland China and COVID-19, the owner announced the end of the business in March.  Click here to read the full translated article.

Japan Market News

Japan state of emergency to cover Tokyo, Osaka and five other prefectures

Source:  The Japan Times, 6th April 2020

Prime Minister Shinzo Abe said Monday the government would declare a state of emergency as soon as Tuesday.  It will cover Tokyo, Osaka and five other prefectures amid the growing outbreak of COVID-19, in a step that will empower prefectures to take restrictive measures.

Report from the Australia New Zealand Chamber of Commerce Japan Market Webinar - 3rd April 2020

Source:  The Japan Times, 6th April 2020 and the STAG

The Japanese government has announced an unprecedented economic stimulus package to assist businesses affected by the coronavirus epidemic. It is expected that the Bank of Japan will hold interest rates in the negative for the foreseeable future. Many smaller Japanese banks could be forced into mergers to survive, as credit concerns become a major issue.

Austrade - While Australian Embassy officials in Japan were given the opportunity to return to Australia during the coronavirus epidemic, most made the decision to remain in Japan and carry on their work. Therefore, the offices are still offering a full service to exporters and while customer visits and trade events cannot be organised, Austrade are able to offer market information and assistance with market intelligence and customer hook-ups.

Of interest for seafood exporters:

• The government’s airfreight support package includes Japan and Austrade is available to provide assistance to exporters if required
• Import clearance procedures protocols and systems appear at this point not to have been affected by virus restrictions
• While under the Japanese constitution the government cannot force the closure of restaurants, venues, etc. most Japanese businesses will follow government recommendations and guidelines, this is evident in current closures.
• A considerable number of larger Japanese companies are allowing employees to work remotely where possible.

Singapore Market News

Essential services that will remain open amid stricter COVID-19 measures in Singapore

Source: The Straits Times, 4th April 2020

From Tuesday 7th April, most workplaces and retail outlets - except for those in key economic sectors and essential services - will be closed, as Singapore adopts stricter safe distancing measures to stem the transmission of COVID-19.  Here are some services that will remain open during this period. 

Further information

If you would like to be included in future teleconferences and STAG activities, please register your interest on the STAG website.  You can also contact us by email admin@seafoodtradeadvisory.com

STAG Bulletins are available at http://www.seafoodtradeadvisory.com

STAG Bulletins are a resource for Australian seafood exporters.The Seafood Trade Advisory Group receives funds from the Fisheries Research and Development Corporation.  The Fisheries Research and Development Corporation plans, invests in and manages fisheries research and development throughout Australia. It is a statutory authority within the portfolio of the federal Minister for Agriculture, Fisheries and Forestry, jointly funded by the Australian Government and the fishing industry.