Austrade

Australian Trade Commission

Exporting Australian quality to the world: Adelaide baker Vili Milisits has grown exports of his pies and pastries to 14 countries worldwide

Austrade (the Australian Trade Commission) is the federal government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

Austrade’s mission is to contribute to community wealth by helping more Australians succeed in export and international business.

Represented in 105 locations in 58 countries, including an extensive domestic network throughout Australia, Austrade offers practical advice, market intelligence and ongoing sup-port (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

For overseas-based companies, Austrade can assist sourcing potential suppliers and partners to enhance their competitive position.

Winning with the Brumbies The status of Rugby Union has risen dramatically since upgrading from amateur to professional in 1996. In fact, Rugby World Cup 2003 is billed as the year’s number one sporting event. The growing profile of the game has contributed to the export success of the ACT Brumbies, which has developed a key ‘team management system’ for the professional Rugby environment. Brumbies Rugby Manager Ray McNicol says that clubs and sporting associations around the world are clamouring to find out the secret to the Brumbies success. “Our team won the Super 12 grand final in 2001 and made it into two other grand finals,” he says. “However, it hasn’t been easy to get where we are now. We started in 1996 in the Super 12 competition, and at that stage professional rugby was new to Australia. We were on a steep learning curve, and in 1998 had a horrendous year with injuries and poor results. “After that year we sat down and decided we needed to approach the game in a business-like way. To ensure success we implemented a management system to ensure that our keys to success were our focus, rather than day-to-day activity.” Working the system The Brumbies management system has nothing to do with actually playing the game, but rather with the management of the club. It is de-signed to encourage open and robust communication between players and coaches, and the implementation of objective reviews of all training cycles and performance. The system enables the year’s goals to be grouped, creating a learning environment where players and staff work together to achieve the same results. The sale of the system overseas has been largely due to the assistance of former captain of the Brumbies and Australian international player, Brett Robinson: “We’ve engaged Brett to do the marketing for us,” says Ray McNicol. “Once he sells the system, he and a management consultant assist the purchaser to ‘install’ the product. Our system includes a questionnaire to help us ascertain where they can make improvements. We send a list of survey questions to all members of the club – including the team, administration and management – then collate the results, and are able to work out their deficiencies based on the Brumbies’ benchmark results.” Austrade’s assistance So far, clubs in the UK have purchased the Brumbies system, with other countries expressing interest. “In the first year of exporting the system, we’ve achieved twice as many sales as we budgeted for,” says McNicol. “Without the funding assistance we’re going to receive through Austrade’s Export Market Development Grants (EMDG) scheme, we wouldn’t be able to pursue further export markets. The EMDG is crucial in helping us cope with the costs of travel, accommodation and other export-related costs.”

Doubling the number of Australia’s exporters
Exporting underpins Australia’s prosperity. One in five Australian jobs depends on exports (one in four in regional Australia), and exports account for more than one fifth of Australia’s gross domestic product.
Despite this, the Australian Bureau of Statistics (ABS) estimates there were only 25,000 exporters in Australia in 2001 – just 4% of all businesses, which is low by international standards. Bearing in mind the huge contribution of this relatively small section of the overall Australian business community, a commitment to increase exporter numbers holds enormous benefits for the Australian economy. And for the businesses themselves, expansion into export offers a far bigger market and the opportunity to learn from international practices.

In 2002, the federal government set in place a strategy aimed at doubling the number of Australian exporters by 2006. It is estimated that this will create additional export revenue growth of more than 5% a year, and add A$40bn to national income. As Minister for Trade Mark Vaile says, “Exporters are the powerhouse of the economy. They compete with the world’s best companies, they innovate, they grow fast.”

With Austrade as the lead federal agency driving the strategy, the doubling effort is on track. According to the ABS, the number of exporters in Australia in 2001/2 had grown to 31,450 – an increase of around 6450 exporters over the past year.

The practical steps being taken by the federal government to increase the number of exporters include:
o a whole-of-government approach, including cooperation with state and territory governments on a range of policy development issues, programs and events;

• consultations and alliances with the community and business;
• exporter assistance programs, including the New Exporter Development Program, launched in 2002; and
• fostering an export culture – from the grass-roots level of high schools through to programs aimed at bringing established companies into international business.

Assistance for exporters
Austrade’s services to Australian companies include:

• practical export information and advice;
• identification of overseas opportunities;
• on-the-ground exporting support overseas and in Australia;
• a comprehensive trade exhibition program;
• services to identify potential overseas business partners and to research and access high potential markets for Australian companies; and
• strategic export planning and network formation services.

Getting information and advice from Austrade
General information is provided at no charge to Austrade clients, available either through Austrade’s extensive website or by speaking with an export adviser on 13 28 78.

Specific tailored advice is provided to thousands of Australian companies each year, based on a quote in advance. Austrade’s fees are based on an hourly rate, and service levels are guaranteed.

Austrade’s regular seminars, and the information and advice provided, help businesses ready themselves for international market development. Austrade ensures that companies looking offshore know what they need to know about selecting the ‘right’ target market and the ‘right’ market entry strategy. Where clients are ready to export, or ready to expand into new international markets, Austrade works more closely to help them achieve their international goals.

Shipping out: Austrade supports Australian exporters through a range of advice, grants and programs

International connections
In addition to helping Australian companies enter overseas markets, Austrade’s global network also helps international businesses to source a wide range of products and services from Australia, and to identify Australian business partners or investors.

Austrade regularly attends and coordinates Australia’s business presence at major overseas trade exhibitions, and helps facilitate trade missions to and from Australia to en-courage business links between Australia and the world.

Austrade programs
TradeStart. A key part of the government’s strategy to double the number of Australian exporters, TradeStart raises awareness of exporting, ensures that business people outside the major metropolitan centres have access to Austrade’s export advisory services, and maximises the benefits of trade for local communities. The program is funded at A$21.5m over four years.

TradeStart provides access to services under Austrade’s New Exporter Development Program through a national network of export assistance offices. These offices operate as a partnership between Austrade and local entities – including industry associations, regional development organisations, and state and territory governments.

The new TradeStart network, which currently has 51 offices operating in all states and territories, is already helping a large number of Australian exporters. With a focus on helping new exporters on a one-on-one basis to ensure export success, TradeStart is aiming to assist around 800 companies throughout metropolitan and regional Australia in 2002/3.

New Exporter Development Pro-gram (NEDP). Providing opportunities to exporters in urban and regional areas throughout Australia, Austrade’s NEDP, established in July 2002, aims to take the exporter from the initial enquiry stage through to successful export.

Services are free, and include initial information and advice along with more detailed services such as coaching, mentoring, intensive workshops, delivering export opportunities, and international experience including assistance in-market for an initial market visit.

These services will be provided by locally-based export advisers and Austrade overseas staff, including overseas-based specialists, who will make targeted visits to Australia for the purpose. Through the TradeStart network, Austrade will also provide intensive workshops, expanded online services, specialised market visit programs, and trade missions tailored for new and intending exporters.

Export opportunities and initial advice. Austrade provides initial advice and information to telephone, email, fax and in-person enquirers. Based on previous use, in 2003 Austrade expects to handle approximately 47,000 individual phone and email contacts, and to deliver more than 1500 international sales opportunities to Australian companies.

Austrade also alerts suitable potential Australian suppliers to export opportunities identified by its overseas networks. Exporting companies are included in Austrade’s Australian Suppliers Database, an internet database where potential international customers can find out about Australian goods and services capabilities: www.austrade.gov.au/asd

Export Market Development Grants (EMDG). The EMDG scheme is the government’s primary financial assistance program for exporters. The scheme is designed to encourage small and medium enterprises in Australia to seek and develop export markets. Under the scheme, eligible businesses are reimbursed for a proportion of what they spend on promoting their exports. In 2001/2, a total of US$142.9m was paid in EMD grants to 3078 recipients. Demand for the scheme continues to grow, with both the number and value of applications rising in 2001/2 and 2002/3.

Amendments to the EMDG Act in June 2002 have made the scheme more attractive to small businesses by increasing the minimum grant payment from US$2500 to US$5000. This change came into effect for payments made in 2002/3 (grant year 2001/2).

An online EMDG eligibility checklist is available on the Austrade website to help exporters applying for a grant. The checklist allows prospective applicants to get an idea of how the program works and suggests ways for them to maximise their chances of a successful application.

Austrade hotline: 13 28 78
Website: www.austrade.gov.au