Strategic Insights Update

Australian exports to India due to new import conditions and reduced tariffs from the Australia-India Economic Cooperation and Trade Agreement. Improved market access and demand allow Australian suppliers to sell premium avocados. Despite perceptions, logistics for stone fruit in India are improving. Queensland companies are boosting trade with India, increasing exports from $14.3m in FY22/23 to $95.3m by April FY23/24. 

Australia has doubled its student visa application fees to $1,600. Australia already had some of the highest visa fees compared to other countries like the USA and Canada at $280 and $165, respectively. Alongside the visa fee increases, Queensland's state-nominated permanent skilled migration allocation will be reduced from 900 to 600 spots, and temporary visas reduced from 650 to 600. Critics warn these measures will deter international students and will hinder businesses and industry groups across Queensland as they won’t have the required number of workers to meet their growing demand. 

The global green ammonia market is expected to grow at 72% annually until 2032. Green ammonia, produced carbon-free from hydrogen, can help heavy industries like steel, shipping, and chemicals achieve net zero. While 29% of the electricity sector is decarbonizing, only 10% of heavy industries are, highlighting green ammonia's potential. Keppel Limited and Incitec Pivot Ltd. are developing a renewables-based ammonia production facility in Gladstone, part of the Central Queensland Hydrogen Project.

Scientists are worried about a new H5N1 avian flu subtype affecting birds, cows, and humans. A man in Colorado is the fourth US human case. Bird flu has hit 139 US farms, prompting a $176 million contract to Moderna for a vaccine. Finland is launching the world's first human bird flu vaccination, while New Zealand is vaccinating endangered birds. In Australia, avian flu has hit 11 poultry farms since May, leading to the culling of 1.5 million chickens, disrupting egg supplies, and prompting retailers to limit egg purchases. Authorities claim to contain the virus, but there is a risk to Queensland’s food supply chains.

Argentina is set to send corn shipments to China for the first time in 15 years, expanding agricultural trade and potentially shifting China's corn import sources. This renewed trading relationship emphasises China's ongoing efforts to secure global food security amid rising temperatures impacting global crop production. China’s search for new suppliers could impact Queensland exporters, as China is Queensland’s largest export market. 

According to Harvard Kennedy School’s Economic Complexity Index, Australia has slipped a long way behind the leaders in the manufacturing race. In the past 10 years Australia has slid 12 positions and currently sits at 93rd, between Uganda and Pakistan. Since 1995, when we were running at 55th, we've been overtaken by 38 countries. "Australia is less complex than expected for its income level," the Harvard study said. "As a result, its economy is projected to grow slowly.” The Albanese Government is trying to kick-start Australia’s manufacturing industry with the “Future Made in Australia” agenda.