Home And Away

Innovative Australian producers are breaking barriers to enter the lucrative export market, writes Nikki Fisher.

WHEN Jan Nash, producer of Pastilla Nash, a specialty prune and walnut log, began her business in 2002 she was hopeful of export success. But not for a conventional bottom-line business reason.

"My dream was to grow the business to support animals - from dogs and cats in lost animal homes in Australia, to endangered chimpanzees and orang-utans in the Congo and Uganda," says Nash, who plans to donate 10% of her profit to animal charities as the business grows.

Exporting proudly to the likes of Dean & Deluca in New York and the Cheese Store in Beverly Hills, Los Angeles, and with markets also in Japan, Singapore, Hong Kong, Taiwan, New Zealand, Russia and Dubai, Nash feels her product was "born global". For the uninitiated, born global refers to exporters who succeed overseas before establishing their domestic market.

"I thought my product was really great for the overseas palate and I didnt want to rely on a niche market in Australia for our survival," Nash says.

Pastilla Nash is made by hand in Sydney using a traditional recipe entrusted to Nash by her elderly friend Zina. A tasting at the Simon Johnson store in Woollahra, NSW, introduced Dean & Deluca buyers to Pastilla Nash; other international markets opened up through Nashs relationship with Austrade, the Australian Governments export promotion agency.

"Japan wasnt a market Id considered until Austrade introduced me to importers (there)," Nash says. With a population of 127.7 million and insufficient land suitable for agriculture, Japan imports most of its food. Australias "clean and green" reputation provides competitive advantage in countries such as Japan, where food safety concerns have been heightened by food contamination scares. "Im so proud to have been accepted into the Japanese marketplace where standards of quality and presentation are so high," she says.

The value of Australian food exports grew from $17.4 billion in 1998-99 to almost $24 billion in 2005-06. The latest figures from the Department of Agriculture, Fisheries and Forestry show that in 2006-07 Australian food exports decreased by 4% to $23.3 billion, largely due to the drought.

As the world food industry is affected by fluctuating economies and environmental challenges, innovative Australian food exporters are turning barriers into opportunities; from modest beginnings their businesses are growing to global distribution.

Fifteen years ago, Melburnian Carolyn Creswell was a university student, working part-time packing muesli. Faced with losing her job when the owners of the muesli business decided to sell the flailing enterprise, Creswell offered $1000 to buy the business. Fast forward to 2008 and Carmans Fine Foods, makers of gourmet muesli and breakfast bars, is a carbon-neutral, multimillion-dollar business on BRWs list of 100 fastest-growing companies, exporting to supermarkets in 17 countries.

"In 2003, an Austrade export market development grant helped introduce me to international buyers," Creswell says. "We were well established in Australia; exporting was the next step. Our export business has grown immensely to include Hong Kong, Malaysia, Singapore, with our largest international accounts in supermarket chains Sainsburys and ASDA in Britain and Whole Foods Market in the US." Muesli bars account for 95% of Carmans exports, compared with 30% of sales in Australia. This concurs with Austrade market research that identifies the health and convenience sector as a growth area in food exports.

To handle the export growth and foster overseas relationships, Creswell appointed export manager Ellie Redman a year-and-a-half ago. "Customer relationships are so important; our buyers send us letters and photos of their families," Creswell says. "Ellie knows all the important personal details - such as our distributor in Hong Kong; her dogs name is Jelly, and Jelly sleeps on her bed at night. If Jelly has a cold, Ellie hears about it."

Austrades senior export adviser for food and beverage, Gary Hullin, says the major obstacle new exporters stumble over is the need to understand whats involved.

"Its important to research the marketplace and the culture of the country, learn the language of trade, freight and payment issues, quarantine requirements, food labelling rules; theres a lot of homework to be done."

Homework cant replace experience - and to that end Creswell is a firm believer in succeeding in your home market before venturing overseas.

"Weve taken huge risks to export," Creswell says.

America has the worlds largest food and beverage market, valued at more than $1.15 trillion a year. While entry to the market is coveted by exporters for its lucrative potential, the stakes are high. Austrades Washington-based food export specialist Peter Brennan - who assisted Creswell to see her product proudly enter the US Whole Foods Market, the worlds largest retailer of natural and organic foods - is adamant about the importance of preparation. "In this highly competitive market, buyers are constantly scouting to be the first to discover the next best-selling brand. Make it easy for the buyers; visit the market, check out the competition, develop your point of difference, work your trade pitch and be ready to support your launch for the long term," Brennan says.

"Carmans high-quality, healthy ingredients, packaging that pops on the shelf and the inspirational story of one person whose belief in her product led her to success in markets around the globe is the perfect storm of what US buyers (and customers) are looking for," he says.

With environmental issues becoming increasingly important to consumers worldwide, exporters are refining their practices.

Creswell cites Britain as the market where food miles - the distance food travels from producer to consumer - matters most to consumers, particularly air miles. "Were in the process of changing our packaging in the UK to promote the fact that all Carmans ingredients and products are shipped by sea so there are no air miles," she says. "Its important to me to do what is right; it also becomes part of the brand."

Maggi Miles and Gary Lines, founders of the globally successful Byron Bay Cookie Company, began baking and selling cookies at Byron Bays weekend markets in 1990. Retail demand saw the cookies go from selling at markets to cafes, then airlines to outlets in Asia, Europe and America. The companys "white choc chunk and macadamia" and "triple choc fudge" cookies are still top-sellers. However, managing director Richard Raffaelli says: "Our gluten-free product has given us the edge, as the health category is growing in the international marketplace. We have a definite market in the US for our gluten-free cookies. When compared to our competitors offerings, ours taste indulgent."

Another successful exporter and an ardent advocate for rural Australian exporters, and in particular rural women, is Mary Nenke, manager and exporter of Cambinata Yabbies, located in Kukerin, 300 kilometres south-east of Perth. Nenke is thrilled that the success of her family business means jobs for rural Australians.

"We didnt set out to do what weve done," says Nenke, who works alongside her husband, Michael, and their three sons and daughter-in-law.The Nenke family has been farming since 1914. In the late 1980s, with four of their six children to educate in the city, Michael began farming yabbies in the dam on their wheat and sheep farm, and selling them to friends for supplementary income.

Cambinata Yabbies was established in 1991 when they received an order from a Perth restaurant. The Nenkes took their first export order in 1993 from Singapore. "It was a disaster," Mary says. "The importer didnt have air-conditioning, let alone refrigeration."

Undeterred, the Nenkes built a registered export establishment in 1994 to enable them to prepare live yabbies for export. Produce is sourced from 700 farms in the region - many from women who have created their own enterprise by farming yabbies. In a good year, Cambinata Yabbies sells 75 tonnes of crustaceans, with 70% exported to Hong Kong, Italy, Korea, Germany, Dubai and London.

An Australian Department of Agriculture, Fisheries and Forestry grant for food processing in regional Australia has meant the business could expand and diversify to accredit its kitchen to produce Cambinata Gourmet, a range of marinated yabby and abalone products.

Nenke says advances in communications technology have had a vast impact on the export business. "Our web business is growing daily. We export live yabbies to Italy every fortnight, to customers weve never met - they found us on the internet," she says. "All the logistics have improved. In 1995, 470 kilograms of product went missing . . . (but) tracking is easier these days."

Last year, Nenke was proud to be the only woman awarded an Export Heroes Award from the Australian Institute of Export, for her achievement "in assisting in implementing an industrial plant to recycle water", which reduced water use by 90%, tripling its capacity to hold live yabbies.

Marilyn Lanyon, a Victorian tomato grower and the producer of Simply Green Tomatoes, cites overseas restaurant and catering as her biggest potential for export growth.

"I definitely didnt think of exporting when I began in 2002," Lanyon says. "Wed been growing tomatoes for processing since 1978 and at the end of the 90s, as factories began to close, we looked to create a value-added product.

"Id always made chutneys for family and friends, until an Italian friend said to me, Why dont you make what mum used to make? - so I did. We pick the tomatoes green and soak them in brine, then marinate them in olive oil, herbs and garlic. It took five seasons before my friend said, Yeah, it tastes like mums."

A research trip in 2001 for regional women to South-East Asia, sponsored by the local shire, introduced Lanyon and her green tomatoes to overseas buyers. Of the 22 countries Lanyon has sold her tomatoes to, the food services sector in Dubai is shaping up to be her strongest market. "I have someone on the ground in Dubai taking my product to chefs; the chefs are the creative ones looking for new products."

With the assistance of Austrade, Lanyon exhibited at the Malaysia International Halal Showcase (MIHAS) last year. The world halal food market is valued at $US2.1trillion ($A2.2 trillion) a year and is growing. Simply Green Tomatoes is one of nine Australian halal certified companies that signed their commitment to the Sultan of Bruneis own halal food brand, which he has in development.

"Its been really exciting presenting a new product to the world," Lanyon says. "But more than that, to start a new farm-related business in a continuing drought and to employ people in our small community is wonderful."

"Tailor your product to the country. In the UK, where food miles are at the forefront of consumers minds, were in the process of changing our packaging. - Carolyn Creswell, Carmans Fine Foods

"With exporting, nothing happens in a hurry - be patient and focused. It took two years from introducing my product to the Cheese Store in LA to them placing an order." - Jan Nash, Pastilla Nash

"Its mandatory to understand and respect the culture of the country - you cant do business otherwise. If you dont, dont go." - Marilyn Lanyon, Simply Green Tomatoes

"Be passionate about your product and build good relationships; know your customers as people not just a customer at the end of the line." - Mary Nenke, Cambinata Yabbies

"Building your domestic market allows you to work out the kinks from product to packaging and to build a strong team." - Richard Raffaelli, Byron Bay Cookie Company

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