Cheaper and faster freight to the United Arab Emirates and the Middle East is being embraced by local exporters following the return of direct Emirates flights from Adelaide to Dubai.
The new route has unlocked an additional 98 tonnes of direct, outbound air freight capacity weekly for South Australian exporters, bypassing other ports including Melbourne, saving time and lowering costs.
The total economic impact of daily Emirates flights in and out of Adelaide is estimated to be $160 million annually, with South Australia’s fresh meat, seafood, dairy and fruit producers well placed to benefit from the streamlined path to Middle Eastern consumers.
One local company already taking advantage of the direct link is The Yoghurt Shop, with its premium products already leaving Adelaide in the cargo hold of the Boeing 777 servicing the route.
The Yoghurt Shop is not only sending its stock into the Middle East in the belly of the plane, but also featuring on Emirates’ in-flight menu.
Perishable goods like yoghurt have shelf lives as short as 14 days. By bypassing Melbourne, The Yoghurt Shop’s products can be on display in Middle Eastern markets a day earlier – extending its time on shelves by 7 per cent.
Businesses using the service will also benefit by avoiding additional administrative requirements caused by navigating extra jurisdictions.
The Malinauskas Government also recently announced China Southern will be flying out of Adelaide and directly into China once more, with three flights scheduled to leave South Australia each week following the route’s resumption next month.
China Southern’s Boeing 787 Dreamliner will be able to accommodate 45 tonnes of outbound freight weekly.
Among those expected to take advantage of China Southern’s return are South Australia’s live lobster exporters, with trade restrictions expected to be lifted by the end of the year.
China is South Australia’s largest two-way trading partner, and latest ABS statistics show exports to the country are now worth a record high $4.27 billion to the state’s economy (+46 per cent), buoyed by the resurgence of wine and barley following the lifting of tariffs.
The UAE is South Australia’s largest trade and investment partner in the Middle East, with exports worth $292 million a year, with meat exports alone contributing $39.5 million (+34 per cent).
Nearly a quarter (22.5 per cent) of Australia’s exports to the UAE make their way to the country by air, almost double the 12.5 per cent across all markets.
Without a direct flight between Adelaide and Dubai in the year to August 2024, only 4.8 per cent of South Australian exports were transported to the UAE by air, a number which is now set to increase.
Negotiations have concluded on Australia’s Comprehensive Economic Partnership Agreement (CEPA) with the UAE, which is expected to come into force in the middle of next year.
The Aus-UAE CEPA will create more opportunities for South Australia’s exporters with the elimination of duties on more than 99 per cent of Australian exports.
South Australia’s exports to all markets remain near record highs at $17.6 billion in the year to August 2024.
As put by Joe Szakacs
Our flourishing trade relationship with the UAE is being bolstered by daily flights to Dubai, and will be further strengthened next year through a bilateral economic agreement between our two countries.
This route is already allowing South Australia’s premium products to enter the UAE and Middle East cheaper, quicker and with less hassle.
I encourage South Australian exporters to take advantage of this opportunity by contacting their freight forwarders to get booked onto the Emirates flights.
As put by Brandon Reynolds, COO, The Yoghurt Shop
We’re thrilled to be featured in-flight with Emirates – it’s a major milestone for The Yoghurt Shop and an incredible opportunity to introduce South Australian quality to a worldwide audience.
Emirates is a respected global brand, and aligning with them helps further our mission of showcasing premium Australian yoghurt on an international scale.
Our export strategy is all about growth, especially in the Middle East.
These new direct flights are game-changing, giving us a faster and more efficient route that avoids the delays and extra handling involved when sending stock through Melbourne.
This added speed is vital for a fresh product like ours, and we’re excited about what this means for our presence in the region.
