In 2003, The Yoghurt Shop began as a single stall in Adelaide Central Market. Today, the business supplies yoghurt to supermarkets across Australia and exports to 13 countries, with the United Arab Emirates (UAE) emerging as a standout market.
The Yoghurt Shop's export journey began in 2016, after a Brunei supermarket representative from Supa Save discovered the company's yoghurt at the Fine Food Australia trade show. Impressed by the product, he asked if the business could supply yoghurt to his chain of supermarkets.
Within 9 months, The Yoghurt Shop had secured export accreditation, shifted part of its white-label production to support the order, and made its first international shipment.
'That first export opened doors,' says Brandon Reynolds, Chief Operating Officer at The Yoghurt Shop. 'It showed us the potential of selling overseas and kicked off interest from other markets such as China and Singapore.'
In 2023, the company made a strategic decision to reduce its reliance on Australian supermarkets and focus on growing its export business. It began with expansion in Southeast Asia, followed by the Middle East, which proved most compelling.
'In 9 months, we had more business from the UAE and Saudi Arabia than what had taken us over 7 years to build in Singapore,' says Reynolds.
The opportunity for growth in the region is set to strengthen under the Australia-UAE Comprehensive Economic Partnership Agreement (CEPA).
When fully implemented, A-UAE CEPA will eliminate tariffs on over 99% of Australia's exports to the UAE by value, including dairy products. It will provide Australian exporters like The Yoghurt Shop with improved access to the UAE's growing market for premium food and beverage products.
A high-value growth opportunity in the Middle East
Reynolds attributes several conditions to The Yoghurt Shop's fast entry into the Middle East. When the company attended its first trade show, it found buyers were eager to connect with suppliers. Many exporters had withdrawn from the UAE during the period of COVID-related supply chain disruptions. Buyers were now ready to restock their shelves.
The Yoghurt Shop had the right mix of experience, certifications and product quality to fill this gap. 'We had the track record, the compliance and, importantly, we showed up to build real relationships,' says Reynolds.
With help from Tradestart and Austrade, Reynolds met key buyers and decision-makers at Gulfood, one of the world's biggest food industry tradeshows. Shortly after, The Yoghurt Shop began supplying Spinneys, a premium UAE supermarket chain with 72 stores.
'The top end of the Middle East market appreciates value,' says Reynolds. 'They're happy to pay for quality, and we were in the right place, at the right time, with the right support.'
The Yoghurt Shop has since expanded to Qatar, Saudi Arabia and Bahrain, with more Gulf nations in sight.
The UAE is already a standout market for The Yoghurt Shop, and the upcoming A-UAE CEPA will set up the business for further growth.
A-UAE CEPA supports agrifood exporters
A-UAE CEPA is Australia's first free trade agreement with the Middle East. On entry into force, it will remove and reduce UAE import tariffs, giving agrifood exporters a competitive edge in the UAE's growing market for high-value premium products.
By using the UAE as a gateway, Australian businesses can benefit from reduced tariffs and existing trade routes to expand exports.
Once A-UAE CEPA is in force, The Yoghurt Shop will immediately benefit - with all tariffs on dairy products eliminated.
'It improves our importer's margin, strengthens our relationships and gives us leverage if challenges arise down the track,' says Reynolds.
The Austrade advantage
Reynolds is quick to credit Tradestart and Austrade's roles in accelerating the company's success in the Middle East.
'In the Middle East, the reputation of the Australian Government carries a lot of weight,' he says. 'When Austrade introduces you, it gives buyers confidence. That credibility is something you just can't buy.'
He adds that working with a team that has eyes and ears on the ground has helped move deals forward.
'The Austrade team has been fantastic, always accommodating and willing to help,' says Reynolds. 'They've taken us to major events and made sure we connected with the right people, and that guidance has been invaluable.'
Advice to succeed in the UAE and the Middle East
In 2023-24, the UAE was Australia's 11th largest export destination for agriculture, fisheries and forestry products, worth $1.7 billion (Source: Department of Agriculture, Fisheries and Forestry). As a major global trade hub, the UAE has trade agreements with many countries, including several in the Middle East.
The UAE is an important and growing market for Australian exports. Reynolds has this advice for Australian exporters considering the market.
Don't fear cultural differences
'People often think there's a big cultural barrier with the Middle East. But it's not very different from working with Coles or Woolworths. You're mostly dealing with professionals from places like the UK, US or Canada.'
Learn the ropes in more supported markets first
'The Middle East expects exporters to know what they're doing. I recommend starting in markets like Singapore, where you'll be guided through every step. That experience can help you get into the Middle East.'
Get your compliance right
'Exporting dairy can be complex. Whatever your category, you need robust and accurate documentation, along with the right certifications. Make it easy for the customs officer receiving your pallet on the other side of the world.'
Build relationships face-to-face
'Deals are unlikely to happen on your first trip. In the Middle East, your seriousness is judged by how often you show up. One visit is good, two is better, and three means you're serious and ready for business.'
