Barrett Farm food: A small firms International Lunch Philip Austin, general manager of Barrett Farm Foods, was thrilled from the food industry trade fair in Cologne, Germany – the largest food and beverage fair in the world. Barrett Farm Foods, based in Melbourne, Victoria, is Australia's sixth-largest food company. It distributes both bulk agricultural commodities and processed food products. Among others, it sells macadamia nuts, cereal bars, ginner, dried fruits, and honey throughout Australia. Barrett has a healthy rate of growth over the past decade, and its sales reached USD $215 million last year. While Barrett is well known in the domestic market, its international experience has been limited responding to occasional, unsolicited orders from foreign. In completing these export orders, Barrett has relied on intermediaries in Australia that provided assistance for international logistics and payments. Yet Austin is enthusiastic about substantially expanding the export business over the next few years. Recognizing an Opportunity: What prompted Austin to attend the Cologne fair was a report from Austrade, the Australian government's trade promotion agency, which highlighted the potential of Australian foodstuffs exports. According to Austrade, Australian food exceeded AU $30 billion last year. Austrade believes processed foodstuffs are the coming trend and wants to boost exports. But this raises a dilemma: Much of current exports are primarily raw foods, not processed foods. If just 10percent of processed food value-adding were done in Australia, the countries balance of trade world improves. For example, instead of exporting raw grains to Europe, Austrade want Australian producers' to process the grains into bread and other bakery products, thereby creating jobs for Australians. Austrade believes meat, cereal, sugar dairy commodities, and