Overnight the Federal Government announced a package to provide airfreight support for essential agriculture, fisheries and forestry industries. The package, valued at $110 million, will help exports of high-quality, high-value produce access key overseas markets.

The International Freight Assistance Mechanism (IFAM) will be administrated by Michael Byrne as International Freight Coordinator General. Mr Byrne will advise the government on operational aspects of the program such as departure points, arrival points, freight mix, product eligibility and other factors. Mr Byrne has significant international logistics experience as Managing Director of Australia’s two largest logistics companies Toll Holdings and Linfox plus as a non-executive director of Australia Post.

Please click on the following to find out more information on IFAM:

Key points for Exporters:

  • Products are eligible may include:
    • Seafood
    • Premium red meat
    • Dairy
    • Horticulture (such as premium fruits and packages salad or vegetables)
  • The destination countries include:
    • China
    • Japan
    • Hong Kong
    • Singapore
    • UAE

This list may be expanded in the future based on demand, operating method and commercial opportunities.

  • The Australian departure points will be:
    • Melbourne
    • Brisbane
    • Sydney
    • Perth
  • The first flights of the program are likely to commence within two weeks. Flights will be scheduled as determined by demand and market access. Flights will be expedited as soon as they are full of produce.
  • The scheme is intended to operate until ordinary commercial markets return, or for six months, whichever is earlier. If demand, value and need are clear, the scheme may be extended.

What does this mean for Australian vegetable exporters? 

  • At the initial stage, IFAM will target high-value agricultural and fisheries exports, predominantly perishable products where Australian exporters have established customers in market.
  • The target also includes high-value, low-volume produce and that is coming into season.
  • The freight cost to growers is yet to be determined.
  • Whilst there will be additional airfreight capacity as a result of the scheme, cargo space on flights is limited and export volumes are likely to be greatly reduced.

The government will provide more details, such as detail on how to apply, over the next 48 hours.

AUSVEG is involved in ongoing discussions with the Federal Government and will be providing further information on IFAM and how it will operate shortly.

Funding Boost into Export Market Development Grant (EMDG) program 

The Morrison Government will inject an extra $49.8 million into the Export Market Development Grant (EMDG) program in the 2019-20 financial year, allowing exporters and tourism businesses to get additional reimbursements for costs incurred in marketing their products and services around the world.

Key points:

  • This extra $49.8 million to supplement the additional $60 million already committed by the Morrison Government will bring EMDG funding to its highest level in more than 20 years at $207.7 million for the 2019-20 financial year.
  • Any business which has incurred eligible EMDG expenses for promotional activities in 2019-20 financial year will be able to seek reimbursement for 50 per cent of these expenses without the Export Performance Test applying, when they apply from July 1.
  • Applications lodged in the 2020-21 financial year can claim expenses even if events have been cancelled due to circumstances beyond a business’s control.

Please click on the following to find out more on EMDG:

EMDG Scheme and how to apply