All up, exports of Australian rural goods - which include meat, fruits, vegetables and cotton sent by sea and air - were valued at A$42.7 billion in the 12 months to August, up 37 percent from five years ago, government statistics show. That accounts for about 13 percent of the nation's total exports.

SPACE SQUEEZE

The squeeze in space comes despite numbers from data provider MariTrade showing that Australian air freight export volumes nearly doubled in four years to 35,000 tonnes in June.

But high-end food producers say that increase is not keeping pace with growing appetite for their products from Asia's middle class. The shortage is particularly acute when demand peaks around Christmas and the Lunar New Year.

Qantas Airways,Virgin , Cathay Pacific 0293.H, and Singapore Airlines all told Reuters they had gradually increased cargo activity out of, or within, Australia.

Some in the air transport industry said that boosting flight numbers further was not easy due to aviation quota restrictions, while starting new routes involves considerable risk for airlines.

"If you are repositioning a $100 million aircraft, it's a big decision," said Phil Gregory, general manager of Wellcamp Airport, a A$200 million privately built air freight facility in the agriculture-rich state of Queensland.

Cathay, which operates two dedicated freight vessels between Hong Kong and Australia every week, will start a weekly cargo service next month from Wellcamp.

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