Value-add Transhipment of Red Meat via Singapore
offshore further processing may be a risky market access strategy
| Project start date: | 14 January 2021 |
| Project end date: | 14 January 2021 |
| Publication date: | 20 July 2022 |
| Project status: | Completed |
| Livestock species: | Grain-fed Cattle, Grass-fed Cattle, Sheep, Goat, Lamb |
| Relevant regions: | Southern Australia, Northern Australia, National, NSW, Western Australia, Victoria, South Australia, Queensland, Northern Territory, Tasmania, Eastern Australia |
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Summary
This project sought to uncover what alternative supply chains may exist through a red meat re-export model via Singapore. Singapore was targeted as a natural facilitator of re-exported Australian red meat due to its unrivalled connectivity into key Asian markets, robust food safety credentials and regulatory environment, and eagerness to position itself as a food trade hub for the wider region. Due to the lack of agreed export protocols between Singapore and destination markets and unclear timeline to address such, this project was terminated after the desktop phase. While barriers prevented the project from being completed, interest in alternative supply chains remains amongst the trade in Australia and Singapore and regulatory discussions are ongoing.
Objectives
• Documentation and evaluation, via a desktop study, of the market access, regulatory and logistical challenges, and the value-adding opportunities in re-exporting Australian red meat from Singapore to Asian markets
• Conduct a commercial trial and cost-benefit analysis of re-exported Australian beef via Singapore to two markets identified in the desktop study
Key findings
The desktop phase of the project indicated that the re-export and value-add business model could be commercially viable. The degree of value-adding proposed may be adequate for it to be treated as Singapore-origin for the determination of border tariffs in the final market. Importantly, re-exporting via Singapore does not appear to add additional tariffs and other duties beyond what is paid on shipments direct from Australia. Initial conversations with Singapore government agencies indicated that bilateral agreements existed with the Philippines and Hong Kong to allow for re-exported fresh meat products to enter the end markets. However, existing agreements were limited to processed and cooked products.
Benefits to industry
Transhipment and processing in a third country may provide a cost-effective means of accessing growing Asian markets
MLA action
MLA remains interested in helping exporters develop alternate pathways for product to enter international markets.
Future research
Further exploration of transhipment and processing models are worthy of exploration, providing fundamental market access issues do not need to be addressed.
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for more information Contact Project Manager: Tim Ryan |
