CANBERRA -- Australian horticulture exports to Korea have jumped since the start of a free trade agreement late last year, Australian officials say, boosting hopes for a similar benefit from a trade deal with China.
No official data has yet been released, but Australian Bureau of Agriculture, Resource Economics and Sciences (ABARES), executive director Karen Schneider says there were early signs of strong demand for products which have had tariffs removed, including cherries, dried grapes and some nuts.
Industry figures suggest cherry sales, are set to jump 25-fold, raising expectations Australia's total horticulture exports to Korea will beat an official estimate of A$19 million ($15 million).
"Overnight we went from a tariff of 24 percent to zero and with the dollar falling we have seen strong demand," says Simon Boughey, chief executive officer, Cherry Growers Australia.
Sales of Australian cherries to Korea, limited to production from Tasmania state due to biosecurity concerns, are on track to top 250 metric tons, worth more than A$3 million, from an historical average of 10 metric tons a year, he says.
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"The agreement only came into force in December so it is still early days, but it has been a plus for the horticulture products," says Jamie Penm, chief commodity analyst, ABARES.
The strong growth of Australian horticulture exports to Korea hints at a similar growth trajectory for Chinese exports once a free trade agreement sealed in November comes into force.
China is already Australia's top trading partner, with two-way trade of around A$150 billion in 2013.
No official data has yet been released, but Australian Bureau of Agriculture, Resource Economics and Sciences (ABARES), executive director Karen Schneider says there were early signs of strong demand for products which have had tariffs removed, including cherries, dried grapes and some nuts.
Industry figures suggest cherry sales, are set to jump 25-fold, raising expectations Australia's total horticulture exports to Korea will beat an official estimate of A$19 million ($15 million).
"Overnight we went from a tariff of 24 percent to zero and with the dollar falling we have seen strong demand," says Simon Boughey, chief executive officer, Cherry Growers Australia.
Sales of Australian cherries to Korea, limited to production from Tasmania state due to biosecurity concerns, are on track to top 250 metric tons, worth more than A$3 million, from an historical average of 10 metric tons a year, he says.
"The agreement only came into force in December so it is still early days, but it has been a plus for the horticulture products," says Jamie Penm, chief commodity analyst, ABARES.
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The strong growth of Australian horticulture exports to Korea hints at a similar growth trajectory for Chinese exports once a free trade agreement sealed in November comes into force.
China is already Australia's top trading partner, with two-way trade of around A$150 billion in 2013.
