Jacob Aldaco|2024-11-08
[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados

Coming off the heels of our recent look into the AmCham/USDA Pavilions, we're now going to venture down under.

The trade relationship between China and Australia is fascinating, with both economies having strong complementarity to each other. Australia produces a large number of raw materials, which China imports and then processes using its behemoth manufacturing capabilities.

For those in Shanghai, there's an intriguing connection: the very steel that forms the iconic skyscrapers defining the city's skyline, many of them have started as Australian ore, refined and manufactured into steel right here in China.

Before we dive into the Aussie Pavilion area, we had a quick chat with Simon Woods, the CEO of the Australian Chamber of Commerce, Shanghai, to give us the low down from the Aussie side. Fun fact (and perhaps a little unsurprising), AustCham Shanghai is (of course), the largest Australian Chamber of Commerce in China's mainland.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Brandon McGhee

Simon Woods, Executive Director and CEO of the Australia Chamber of Commerce, Shanghai.

CNS: How does the 2024 China International Import Expo (CIIE) compare to last year's event?

Simon Woods: Comparing 2024 to 2023, there have been significant changes. Last year, the Australian Prime Minister visited, which created quite a buzz, though he did his walk-through the day before the public opening when access was more restricted. This year, the Minister for Trade and Tourism visited.

This year, the Australian government has notably increased the size of its pavilion. Last year, the combined space for the Australian government and the various state governments was around 600 square meters. This year, it's grown to about 1,300 to 1,400 square meters, which includes both the Australia Pavilion and the Victorian Pavilion. We also have 253 exhibitors, which is the most we've ever had, and even more brands are represented overall. This growth has attracted significant attention, not just from the Australian government but also from local distributors and others who are interested in what we're doing.

It's also worth mentioning that both last year and this year, we were fortunate to have Platinum Members as official sponsors of the Australia Pavilion. Last year, ANZ Bank played this role, and this year, WorldFirst joined as the official Payment Solutions partner. Their support has been incredibly valuable in enhancing our presence and impact at the event.

CNS: How is the Australian Chamber of Commerce Shanghai leveraging the CIIE to support businesses?

Simon Woods: The CIIE is a fantastic opportunity for the Chamber. We engage with a variety of organizations – those entering China for the first time, those returning for a second time, and more established businesses. We discuss what they need and how the Chamber can help. Additionally, we are hosting a social event to connect and foster relationships. These engagements generate a valuable pipeline for the Chamber, allowing us to make new introductions and meet businesses we haven't interacted with before. It gives us a chance to discuss how we can support them in the China market, particularly in Shanghai.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Courtesy of Simon Woods

Simon welcoming guests at Thursday's CIIE Aussie Drinks night at the Shanghai Sukhothai Terrace.

CNS: Have there been any unexpected developments this year?

Simon Woods: One thing that surprised me this year, is the increase in events happening outside the main CIIE venue. For example, on Monday night, the Victorian government hosted a wine event. Tuesday night had a New South Wales government event. Tonight, there's a 'Friends of Victoria' event, while Queensland is hosting a simultaneous event. Even the Chamber is contributing to this with multiple events. It seems that this year, an additional ecosystem of events has sprung up supplementing what's happening at CIIE, which shows forward motion that the expo is continuing to expand in importance.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Courtesy of Simon Woods

Simon Woods with Brett Stevens, Commissioner for Victoria Government.

CNS: So what have you and the chamber been up to this week?

Simon Woods: Oh, we are quite busy. Tomorrow afternoon, we have an event focused on market access, which is an excellent opportunity for our members and the Chamber to showcase how we support the brands participating in the CIIE. Tomorrow night, we're hosting a social event as well. Then on Friday morning, we're assisting the Tasmanian Premier with a breakfast meeting. That same afternoon, the Chamber is running an industry event on the built environment and sustainability. Finally, Tasmania has another CIIE-related event on Friday evening. It's a packed schedule.

CNS: How are you managing the demanding schedule?

Simon Woods: Honestly, I'm quite exhausted! I'm soaking my feet as we speak! It's been a whirlwind of events and meetings, but it's certainly an exciting time. We'll take some notes and reflect on everything afterward. But so far, the energy and momentum at this year's CIIE signals a positive trajectory.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Dong Jun

The signing ceremony, cool! So, in 2023, Australia's exports to China reached a whopping US$219 BILLION in trade value. Not only was this an 18% increase over the year before, it was a record trade year between the two countries, accounting for 32 percent of Australia's total exports. Many expect this to be on a continued upward trend given the current administration's willingness to dialogue with China on a trade partner level.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Dong Jun

Australia's prized rock lobsters are about to make a grand return to Chinese tables, just in time for the Chinese New Year feast. Trade barriers are being lifted paving the way for Australia's A$750 million annual lobster exports to ramp up once more.

These crustaceans were a cherished import, and now, thanks to successful diplomatic efforts between Australia's current administration and China, the reunion is officially set. It's a major win for Aussie fishers and coastal communities, poised to revive a market that once upon a time, fetched a 300 percent profit margin in China. With lobsters destined for bustling Chinese markets once more, this is a delicious symbol of mending ties between two trading powerhouses.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Imaginechina

If the Americans didn't fill you up on their beef and pork… Australia will fill those gaps with their surf & turf.

So, did you know there are categorical differences between US and Aussie Beef?

There are! Let's do a quick 1-2 between both so that next time you're in a steakhouse, you'll have a little more context to the menu options.

When it comes to beef, the discussion between Australia and the US is a steak lover's showdown rooted in three things:

  • flavor
  • texture
  • farming philosophy

And there are differences!

US Beef

In the US, grain-fed beef reigns supreme, with cattle often fattened on corn and grains, resulting in that rich, buttery marbling synonymous with American steakhouse indulgence. It's a fattier, juicier experience, and the USDA's strict grading system ensures consistent, mouth-melting quality. The numbers back it up: over 70 percent of US beef is grain-finished, contributing to an industry worth over US$66 billion.

Australian Beef

Australia, however, brings a different vibe to the table. The Land Down Under is a global leader in grass-fed beef, boasting a cleaner, more robust flavor and leaner texture that's perfect for health-conscious carnivores. With 97 percent of Australian beef farms being family-owned and over half of its beef production exported worldwide, Aussies know their craft. Their grass-fed cuts are lower in saturated fats and higher in omega-3s, while premium grain-fed options, like Australian Wagyu, rival the best American Prime in melt-in-your-mouth texture. In the end, it's about choosing your fighter: US beef for that indulgent, marbled punch or Australian beef for a sustainable, flavor-forward experience.

There you have it. Learn something today folks?

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Imaginechina

Australian wood cutting boards! We switched away from plastic cutting boards to wood after finding out about MICROPLASTICS! Gah!

Have to say, the natural aesthetics of the wood here are quite handsome.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Dong Jun

Well, we already talked about lobster. Looks like CIIE is a great place to eat, drink, and be merry. If you have the right means to do so, definitely head down this weekend when it's open to the public.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Dong Jun

Here, we see the Queensland Pavilion. The trade relationship between China and this Australian state is an important bilateral trading ecosystem. Queensland has a gold mine of exports, and it's China that's been scooping up the riches. The coal rush has been the star player – thermal and metallurgical alike – feeding China's hunger for energy and steel to the tune of US$25 billion in value a year. But it's not all about black gold; Queensland's lush pastures are behind the sizzling beef exports carving out a meaty market of around US$2 billion in value that China's middle class can't seem to get enough of, and sugar flows thick from the state's fields to sweeten countless cups of tea. Even the US$1.4 billion seafood scene gets its time in the spotlight, with reef fish and prawns making a splash in Chinese markets.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Dong Jun

Oy. Avocado smoothies, mate!

The star here (aside from these cheerful dames), is Australian avocados. Australia's avocado industry is on the brink of something big: cracking into China's booming market, where demand has skyrocketed a jaw-dropping 311 percent, hitting 65,600 tonnes between 2015 and 2023. No wonder...guacamole is the bomb.

Talks are heating up, and in November 2023, Avocados Australia made a serious play by signing an MOU with the China Entry-Exit Inspection and Quarantine Association in Beijing, setting the stage for potential exports. As of late 2024, those coveted Aussie avocados haven't landed on Chinese shelves just yet, but optimism is running high given that another MOU was signed just two days ago. As of late 2024, those coveted Aussie avocados haven't landed on Chinese shelves just yet, but optimism is running high. With production projected to swell to 170,000 tonnes per year by 2026, this superfruit could soon be making waves in the Middle Kingdom's food scene. It's a calculated push, and if these negotiations bear fruit, the payoff will be sweet – or, in this case, creamy and green.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Imaginechina

Some facts and figures about another Australian state! China has surged to become South Australia's largest trading partner. As of October this year, its trade value reached US$4.27 billion, a 46 percent increase over the previous year. Impressive.

Wine, barley, and almonds are big exports from here.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Imaginechina

CIIE is not just about beef and wine folks. There are many offerings for those deeply concerned about beauty. Here's an Aussie brand right out of Queensland, The Three Graces Beauty.

The naming is the brand that spins the mythic into the modern, inspired by the divine allure of Aglaia, Euphrosyne, and Thalia – the three Graces who whispered beauty secrets to Aphrodite herself. Their products are produced in a facility that holds a Good Manufacturing Practice (GMP) license from an internationally recognized cert body. Very high Australian product quality standards here.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Imaginechina

Here are a few Australian exhibitors in the consumer goods space.

Thrive Australasia: An owned company specializing in premium milk powder products. Thrive sources high-quality milk from local dairy farms, blending it with premium ingredients to ensure exceptional quality in every tin.

Morlife: A health and wellness brand offering a range of organic supplements and pantry staples. Their lineup includes superfood powders, vitamins, and functional snacks designed to boost overall well-being.

Phytologic Holdings: A company dedicated to developing and distributing natural health products. They focus on high-quality supplements and herbal remedies that promote holistic health.

BJP Laboratories: A contract manufacturer recognized for producing probiotic products, listed medicines, and dietary supplements. With certifications from TGA, APVMA, and FDA, they offer formulations ranging from capsules to liquids, made in their state-of-the-art facility. More Aussie vitamins please!

Green & Gold Macadamias: A specialist company offering, high-quality macadamia products to the global market. They manage the entire supply chain, from farming and processing to marketing, ensuring premium quality nuts across the production and supply chains. Nice!

Good Earth Oils: A company specializing in high-quality, cold-pressed macadamia oil. Their oils are used for culinary and cosmetic purposes, strongly emphasizing natural and sustainable practices. Now, given the uproar about the questionable impacts on the health of seed oils, macadamia nut oil is considered a "healthy option" (just did some research here). It has a unique profile of fatty acids and high levels of beneficial compounds, this includes oleic acid, a heart-healthy fat that can help reduce bad cholesterol (LDL) and increase good cholesterol (HDL). Let's hope this stuff makes its way into Shanghai!

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Imaginechina

Here's Bundaberg, the Aussie legend of craft brewing, known far and wide for their iconic ginger beer that's as punchy and refreshing as a wave crashing on a Queensland beach. We've seen these in Shanghai! When they first came, I mistook them for kombucha!

They are Family-owned and four generations strong. They have been brewing their signature drinks using natural ingredients since 1960. With a commitment to bold, all-natural flavors and that unmistakable Bundaberg swing-top bottle, these guys have mastered the art of bringing a bit of fizz and fun to your glass, no matter where in the world you pop the cap.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Imaginechina

Move over to California, Australia can fill your wine glasses, too.

With positive changes in trade policy happening this year, we can expect Australian wines to begin proliferating within the market again.

This particular industry has seen wide fluctuations, peaking at 40 percent of Australia's total wine exports and US$1.24 billion, this dropped to less than US$1 million by 2022.

However, there is a strong rebound for Aussie wines, and when I say strong, I mean wow. In the first nine months of this year alone, trade value has catapulted to more than US$335 million, a 613-fold increase over the same period last year!

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Imaginechina

Here's Nutri-Brex a brand originally from Australia. It is part of the Sanitarium Health and Wellbeing Company, which is well-known for producing breakfast cereals and other health-focused food products in Australia and New Zealand. The brand gained popularity in Australia before expanding to international markets, including the UK, where it is known as a gluten-free and nutritious breakfast option.

[Inside CIIE] AustCham Shanghai's CEO, Aussie Lobster & Avocados
Imaginechina

This supplement brand was founded in 1989. They started with herbal liquid products. What are herbal liquids you ask?

Things like Valerian Root Liquid, that stinky herb that sometimes helps you sleep. Echinacea Liquid, St Mary's Thistle Liquid as well to name some others.

Over the years, however, they have expanded into vitamins, minerals, and other nutritional supplements.

Okay folks, I think we're done for this one. Lots of cool products for sure. But I think we should definitely emphasize, that the smattering of things we covered in this piece, is only a FRACTION of what is being showcased at this massive expo.

Remember, Australia has over 200 exhibitors alone!

A gentle encouragement: again if you have the means and time, this would definitely be worth checking out this weekend once it opens to the public. Brits, stay tuned, we're going to look at a few UK Pavilions tomorrow.

China International Import Expo
CIIE
ANZ