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Latin America Free Trade Agreement set to deliver business boost to Frosty Boy

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Latin America Free Trade Agreement set to deliver business boost to Frosty Boy

Frosty Boy Australia’s General Manager Sales and Marketing Felipe Demartini shares his thoughts on the potential of a new Free Trade Agreement with Latin America.


The recent announcement that Free Trade Agreement (FTA) negotiations are underway between Australia and the Pacific Alliance, the Latin American trading bloc made up of Mexico, Chile, Peru and Colombia, is exciting news for us at Frosty Boy Australia, as this would streamline import permits and reduce import duties.

A new FTA with the Pacific Alliance would create new export opportunities for Frosty Boy, levelling the playing field with local dairy providers. It would allow us to price our products more competitively in those markets and we’d anticipate substantial growth in sales as a result with initial estimates around the $10 million mark.

Frosty Boy has a proven track record in the creation of unique and customisable dessert and beverage solutions. We already have a strong foothold in Asia and the Middle East markets and would expect a similar result in Latin America once we could educate the market on the truly customisable nature of our powdered frozen dessert bases and beverage solutions.

The Latin American market encompasses some very unique flavourings with sapote, cheese, dulce de leche, rose petal, corn, jalapeno, mescal and chilli featuring in local products. As a company which innovates and customises flavour and taste solutions, we look forward to furthering our imprint in this market, embracing the local flavours and delivering some truly unique solutions for companies based in Latin America.


Latin America Free Trade Agreement set to deliver business boost to Frosty Boy

The region currently represents less than three per cent of our total sales. There’s no doubt a FTA, which would remove the existing high tariffs, would be a huge boost to our export opportunities. There’s a high demand for Frosty Boy products around the world, but our ability to capitalise on this demand is limited by the current high tariffs of up to 45 per cent applied to all dairy products.

We currently supply to a number of local chains in Latin America and export our soft serve, yoghurt smoothies and nitrogen gelato products. We look forward to the support which this FTA would provide; allowing us build on relationships with large multinationals we have relationships with in APAC. It would also ensure we are more competitive, as the existing high tariffs have been prohibitive for many Australian exporters.

Over the last 10 years, Mexico, Chile, Peru and Colombia economies have seen the fastest growth in the region. These four countries make up 37 per cent of Latin America’s population and 50 per cent of its total imports. Any activity that opens these markets has significant business potential for us as more than $780 billion worth of goods and services were imported to these countries in 2016 and a FTA would mean we could capitalise on this demand.

For more information on Frosty Boy and our customisation services,
visit www.frostyboy.com.au or to learn more about the Free Trade Agreement (FTA)
visit http://dfat.gov.au/trade/agreements/pacificalliancefta/Pages/default.aspx


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