Freight forwarding company, Wiseway (ASX: WWG) is set to expand their international operations following the announcement that the company has been granted accreditation to export fruit directly to China. The news comes as the company signed an exclusive agreement with produce supplier and Chinese exporter, China Marketing Solutions.
Export accreditation of the Melbourne and Sydney facilities is a significant milestone for the company, who have a special focus on trade between the two countries. The accreditation would suggest that now more Australian fruit producers could have the opportunity to export their perishable products to China, where prices can fetch higher than they would locally.
CEO and Co-founder of Wiseway, Roger Tong, commented on the news of the export accreditation “This is a significant step, enabling our customers to cater to the fast-growing demand by Chinese customers for fresh Australian fruit. Prior to the new requirements, direct Australian fruit exports to China were limited to local Tasmanian produce only, now this opportunity is available to exports from all over Australia.”
Dong Wong, CEO of China Marketing Solutions, said on the Chinese imported fruit market “There is a growing market segment in China prepared to pay the highest price for the finest fruits from all over the world, including a high demand for Australian stone fruits, grapes, citrus and cherries.”
The exclusive, two-year agreement between the two companies would see Wiseway provide their export services to China Marketing Solutions. With Mr Wong noting Wiseway’s desirable position in the freight market between China and Australia.
The Sydney-based company listed on the ASX just over a year ago, servicing both sea and air freight, customs clearance, transport, warehousing, and distribution for domestic and international clients. Their recent purpose-built perishable storage facilities comply with the Chinese authorities strict quarantine and pest-control requirements for imported fruit allowing access to the lucrative industry.
Last year, China imported nearly US$7b of fruit, with an estimated 4.75% coming from Australia (Product Report 2018).