Marketing to Australia can bring the company profits with high margins. The political scenario in the region is sound, with a growing economy and an established central legal system. The social environment in the region is very similarity that in Canada, making the target market much more understandable and easier to relate to.
The business climate in for the Saskatoon berries is very strong and profitable right now as the berries are quite in demand due to their tastes, their use in dairy products, bakeries as well as ice creams as well as due to their antioxidant properties. The fruit has heritage links with China where a version of the fruit was originally grown, however, it has been discovered in central north Canada and has become a native original fruit to the region. It would be more profitable for the company to operate through Canada, as the cost of the logistics and the transportation of the Saskatoon berries would be much more feasible for the company than if it was outsourcing to China or operating from there.
The main risks that are present to the company for exporting to the region of Australia pertain to the risks associated with the spoilt and bad harvest, which can affect the supply of the product to the region. Moreover, the changes in the prices of the berries are also very volatile according to their demand and supply each season and the quality of the harvest produced. This can make operations very volatile with unpredictable revenues. Moreover, the Australian dollar is valued at a lesser denomination than the Canadian dollar with considerable fluctuation. This can affect the revenues of the company with the volatile exchange rates apply. Other risks that the company would be exposed to are conforming with and getting approval from the local Australian food control authorities. A case took place in 2004 when the Saskatoon berries were ordered off the shelves in the UK due to their bad quality of packaging which affected the quality of the berries. (Gillis, 2004)