Asian trade difficulties for SW businesses

Opportunities abound for Capes businesses to trade with Asian nations, say commerce chiefs.

Doing business with an economic powerhouse such as China was discussed at a Busselton Chamber of Commerce seminar last month.

National Australia Bank staff gave an overview of trading with Asian partners and outlined how they could facilitate links with local operators.

Margaret River Business Centre director Barbara Maidment said the difficulty for Capes producers was they were often too small to fulfil orders with large players like China.

Ms Maidment said the resulting inconsistency could often frustrate foreign importers, leading them to look elsewhere for a steady trade arrangement.

“The sheer size of China makes it hard for small producers to satisfy demand and this makes it challenging to establish a long-term trade relationship,” she said.

Ms Maidment said a potential solution in the viticulture industry might be setting up a co-operative of local producers, but this had been tried, with limited success.

Busselton Chamber of Commerce chief executive Ray McMillan said the scale of Asian markets like China should not act as a barrier for small operators.

“You don’t need to try to satisfy an entire country; it’s a matter of finding niche markets and satisfying those,” he said.

Adinfern Estate owner Jan Smith sold a sea container of wine to a Chinese buyer last year but the transaction was delayed by People’s Republic of China red tape.

“When we thought we would have another order by now the buyer is still trying to sell the last one,” she said.

“We haven’t made any extra wine at this stage, so if they come to us again we won’t be able to fulfil their order.”

Mr McMillan said overbearing foreign regulation could be a hurdle but there were still useful avenues into Asian markets.

“Banks like NAB are one way in, as is the Bunbury — Jiaxing Business Office, located in Bunbury at Chamber House, and the Western Australian Trade Office in Shanghai,” he said.

“Sure it takes time, but the other option is to sit back and let it pass you by.”