If you were to try and imagine a new business opportunity that could literally double or triple your revenues quickly (or more), most business owners would get fairly excited. Opportunities like that don’t come along very often, but a great deal of Australian business owners are now looking head-on at one later this year.
The free trade agreement with China that will come into effect by the end of 2015 will undoubtedly affect many different industries over time, but the fresh food industry is first in line to reap big rewards. Just under 1.4 billion people currently live in China, and by 2030 one billion of them are expected to be middle class. Hello, customers.
In this article we discuss the coming free trade agreement between Australia and China and how transparent auditing can secure your business’s future.
The Big, Big Boom
After China recently cut their outlook for the country’s gross domestic product, there has been much chatter concerning China’s economic future. However, they are on the cusp of the largest urbanisation phase in the history of the country.
There are plenty of reasons to be wary of the economics of China’s growth and modernisation, but the fact remains that it keeps moving forward at a fast pace and is undeterred by any roadblocks or speed bumps. The growing affluent class there wants fresh food, and we have a thriving agribusiness to help them out with that want.
The new free trade agreement removes 95% of the tariffs on Australian exports to China. The fresh food supply is only the beginning of the new business relationships expected to come from the deal, with the financial, legal, educational, and particularly healthcare industries lined up to be next.
The Trust Factor
Doing business in or with China requires developing a relationship with them based on trust. Considering the potential upside, that is a relationship that is worth working to build. In great part that will require spending “time in China familiarising ourself with Chinese culture and the Chinese country” according to Australia Post managing director Ahmed Fahour, as reported by the Herald Sun.
In addition to a better understanding of the Middle Kingdom’s culture and business practices, companies in agribusiness, food manufacturing, and the ‘cold chain’ that supports them in the fresh food trade need to be able to assure potential clients that their products and processes pass quality standards from beginning to end. A handshake won’t do that.
What will help establish that trust is empirical data that can be verified as accurate and ongoing, and that can be done with transparent audits and inspection results. A consistent auditing and compliance system from beginning to end is key to making this happen. Our free auditing software, Compliance Checkpoint, handles this process perfectly and can be easily tailored to meet the needs of any company in these industries.
In fact, we have already begun working closely with global leaders in FMCG, retail, and ‘cold chain’ partners to prepare for this incredible opportunity which has been laid at their doorstep. We are certain that Compliance Checkpoint will be a key component in many companies’ future success as this new and advantageous situation unfolds and grows.