cotton - Greenmount Press

From Kingsgrove to Qingdao: A
story of exporting success
AT the 2012 Premier’s NSW Export Awards in October,
United World Enterprises Pty Ltd (which goes by the trade
name of UWE), a small to medium sized agricultural
commodities company based in the Sydney suburb of Kingsgrove,
was recognised for its significant exporting achievements by
winning the NSW category for Asian Exporter of the Year.
The win follows a long and varied history for the company
since its inception as a family-run business in 1993 by husband
and wife directors Jimmy and Freda Liu.
Responding to increasing demand
While the company began as a rag trader importing clothes
from Chinese manufacturers and selling to Australian retail
companies such as Best and Less, Gazal and Reebok, UWE
has diversified to become an exporter of their own wine label
(Jimmy Wine) and trader in agricultural commodities. UWE is
now well known to the Australian cotton industry. It was the first
Australian company to export cottonseed to China and is one
of the leading Australian exporters of cottonseed to Asia as the
award for Asian Exporter of the Year indicates.
Prior to 2008, Australia did not export much cottonseed
to China. But Jimmy had his ear to the ground and saw the
potential demand for Australian cottonseed in China. In a bold
move, UWE put a couple of shipping containers on the water
to test that potential. This opened up a significant market, and
while the company’s export volumes are varied due to shipping
capacity, its exports now average around 200,000 tonnes each
year.
Supplying directly to public and private entities
UWE sources its cottonseed from various gins, growers and
traders in Queensland and New South Wales and currently ships
cottonseed from ports in those states to ports in Shanghai and
Qingdao. The company has continued to push into the Chinese
market, supplying directly to the Chinese oilseed crushers.
Main buyers of the company’s cottonseed are larger Chinese
companies, including state-owned enterprises, publicly listed
companies and some private entities.
UWE also has an office on the ground in Shanghai which is
run by Jimmy and Freda’s daughter, Julia Liu and fiancé Dan zhu.
Financial challenges with rapid growth
Recently, UWE approached its bank ANz to increase their
banking facilities in order to meet growing business demand.
Since commencing its cottonseed exports three years ago, it has
established more concrete business networks, identified new
buyers and suppliers and needed working capital to offer more
flexible payment terms.
But due to a lack of security the bank was unable to provide
the funding UWE requested.
UWE and ANz approached Export Finance and Insurance
uWE Managing Director Jimmy Liu with Christine Tonkin,
Managing Director of ANZ Global Loans and Transactions.
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December 2012–January 2013 The Australian Cottongrower — 41