Solving supply chain disruptions for food exports

Tuesday, 28 April, 2020

Solving supply chain disruptions for food exports

The Australian Department of Agriculture has identified supply chain disruptions as the biggest threat to farmers and fishermen in the country, where around 65% of agricultural products are exported, with a majority going to China, Japan, United States, South Korea and several Asia Pacific countries.

An international provider of air, sea and road freight services, DHL Global Forwarding Australia has revealed that virtually all of its high-value perishables exports, including fruits, vegetables, pre-marinated and fresh meat, seafood and dairy products, are currently catered to food retail businesses such as supermarkets. Prior to the COVID-19 pandemic, supply chain distribution was dominated by wholesale networks with approximately 70% of the company’s food exports typically going to foodservice businesses.

The company has been appointed as part of the new air freight network established by the government to facilitate international freight as commercial airlines slowly return to normalcy. The network will allow the government’s $110 million International Freight Assistance Mechanism (IFAM) to ramp up assistance to exporters and re-establish global supply chains, in turn also assisting importers of essential goods, such as healthcare supplies, personal protective equipment, automobile spare parts, and construction and manufacturing materials.

“In perishables logistics, time is of the essence as fresh meats and produce need to arrive with their freshness and quality intact, and that is now possible as we can secure capacity through the air freight network for our customers. We are working towards restoring supply chains for all our customers. We are hopeful that with these measures, we can start to restore some of the pre-COVID volumes for perishable exports, and more if the Asian markets start to open up again once containment measures prove successful,” said Bernie Cooney, Perishables and Livestock Manager, DHL Global Forwarding Australia.

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