Australia reaches agreement with airlines to fly food produce to Asia

The Australian Government has announced an agreement with Singapore Airlines (SIAL.SI) and Qantas Airways Ltd (QAN.AX) to carry foods to Asian markets.

The initiative is part of the government's plan to help businesses hit hard by the new coronavirus which has victimised over 3.6million people worldwide.

Food supplies such as chilled seafood, tuna, lamb, chicken meat and eggs, will be carried to Singapore, and later distributed to Hong Kong, Thailand and China.

While Qantas will fly seafood and other produce to Hong Kong from the country’s north, Queensland state on a weekly basis, Singapore Airlines will carry food from the state of South Australia, the government said.

Australia’s trade minister, Simon Birmingham, said the agreements would help re-establish direct freight routes for exporters who have been struggling to ship overseas during the pandemic.

“We recognise the current COVID-19 crisis has placed immense pressure on local seafood exporters, many of whom felt the earliest impacts when overseas demand began to dry up in January,” Birmingham said.

The flights will fall under a A$1 bln government fund to support regions, communities and industry sectors affected by COVID-19. Officials did not say whether the fund would pay for or subsidise the routes.

Reuters