Australian Fishing Enterprises tuna fishing operations. (Photo Credit: AFE)
AUSTRALIATuesday, December 09, 2014, 01:40 (GMT + 9)
Australia's largest tuna processor, Australian Fishing Enterprises, has settled a trade agreement with one of China's largest listed seafood companies.
The Port Lincoln-based firm, which is part of the Sarin Group and has the highest southern bluefin tuna quota in Australia, hopes to open up opportunities for even greater international success through the supply agreement signed with the Chinese GroupZoneco (formerly called Zhangzidao Group), reported ABC Rural.
"China for us is a very new market, not just for our company but our industry," pointed out Group Marketing Manager for the Sarin Group Peter Fare.
"We've been an industry which has been dependent on Japan for the last 20 odd years, so we're trying to diversify away from our reliance on Japan," Fare added.
The executive also explained that this deal will mean breaking into a larger and much different market.
Zoneco, specialises in seafood farming, processing, imports and exports, and employs more than 6,000 people in China.
The signed agreement follows the settlement of a free trade agreement (FTA) between Australia and China, which, according to the Australian Government, will offer Australian enterprises "an unprecedented access to the world's second economy."
Referring to the trade agreement with China, Australian Southern Bluefin Tuna Industry Association (ASBTIA) chief executive Brian Jeffriess remarked it would eliminate a 12 per cent tariff that currently exists for exporting tuna to China, informed Port Lincoln Times.
This fact becomes relevant as, in his opinion, the biggest challenge the Australian tuna industry faced was to remain competitive on price.