Australia has increased its malt exports from 370,000 tonnes in 1996/97 to almost 530,000 tonnes in 2002/03. It has a great logistical advantage over competitors for sales to Southeast and Far East Asia. Its government succeeded to conclude a Free Trade Agreement with Thailand, which will give an extra boost to Australian malt sales to that country. Southeast Asia is amongst the fastest growing beer markets of the world, and in spite of the recent opening of a malthouse in Vietnam the tropical and subtropical climates of that subcontinent do neither suit the cultivation of barley nor the production of malt. Ausmalt, the subsidiary of the recently merged Ausbulk and ABB, has targeted these markets, expanded its malting factory in Adelaide and now plans a new construction of an 80,000 tonnes malthouse in Victoria.