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UK forays into Australian food market

In the emerging development in the food sector, Australian shoppers could get used to seeing a whole lot more British food on supermarket shelves under an ambitious $500 million strategy targeting food market post-Brexit. The British government will make Australian to taste black pudding, mushy peas and room temperature ale aren’t exactly the gastronomic holy grail. Grocery items are a key part of the UK government’s export action plan that and aims to rejuvenate existing trade and open up new avenues between the UK, Australia and New Zealand by 2020. Australian Food and Grocery Council CEO Tanya Barden said the renewed focus could pave the way for an influx of UK brands and products, and vice versa, as EU tariffs and quotas could be removed from food and drink.“There has been recent interest from several international supermarket retailers considering entering the Australian food and grocery market due to the relatively high Australian supermarket profit margins by global standards,” she told news.com.au. “If a free-trade agreement were to lead to investment from UK supermarket retailers, such as Waitrose or Tesco, into the Australian market this increase in competition would be welcomed by Australian manufacturers of food, beverage and grocery products as it would give them an alternate channel to sell their products.” At present Scotch whisky, gin, crackers, chocolate and cereal are some of the main products in the $560 million worth of items the UK exports to Australia annually. Australia sends mostly wine, meat and vegetables to the UK in what makes for our sixth largest trading partnership for food and drinks. However those figures have come under scrutiny in the UK hunt for new trade deals, with a newly created Department of International Trade working to promote British products in 18 countries through a specially designed Food Unit.

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