SYDNEY • Australia's government announced yesterday that it will provide A$110 million (S$95.8 million) to fly local agriculture and fisheries products to key overseas markets, starting with Singapore, the UAE, China, Japan and Hong Kong.
The plan, which would see the government charter hundreds of flights full of products such as rock lobsters, beef and dairy to the key markets, was formulated after the coronavirus pandemic led to the cancellation of most of the commercial flights that usually carry fresh products. The flights will leave from Melbourne, Sydney, Brisbane and Perth.
Recent international flight groundings by airlines including Qantas and Virgin Australia have made it impossible to get products such as chilled seafood, red meat, dairy products and some fruit and vegetables to offshore markets.
"Getting our export sector back on its feet is crucial to reduce job losses through the crisis and a critical part of the ultimate economic recovery," said Trade Minister Simon Birmingham.
The planes will have capacity to carry medical supplies, medicine and equipment back to Australia.
The support comes as demand for Australian produce in China and some other key Asian markets has started to recover as restaurants reopen after months of shutdowns.
The drop in demand from China as well as the flight disruptions had pummelled global producers, causing US lobster prices to fall to the lowest in at least four years and prompting New Zealand to release catches back into the wild.
The freight plan is part of an overall A$170 million support package.
Mr Brad Adams, chief executive of Ocean Grown Abalone, said there had been a small uptick in appetite from China, Hong Kong and Singapore. He added that the company had sent a small shipment on a commercial flight to Hong Kong last weekend. "We have gone from no demand to some demand," he said.
Australia's domestic appetite for seafood remains minimal as hotels, restaurants and bars have progressively been shuttered to stem the spread of the virus.
BLOOMBERG