Trade reforms a positive kick start for 2016

Jan 23, 2016

Over the course of 2015, Australian Dairy Farmers (ADF), together with state members and industry partners has worked collaboratively with government to broker new trade deals which increase access to key Asian markets hungry for safe, clean and sustainable Australian dairy produce.

ADF welcomed the China-Australia Free Trade Agreement (FTA) which entered into force on 20 December 2015, followed quickly by a second round of tariff reductions on 1 January 2016.

Also on New Year’s Day, the Korea-Australia FTA progressed to its third year of benefits for dairy exporters, meaning further tariff reductions and increased quotas for a range of Australian dairy exports.

Similarly, the Malaysia-Australia FTA moved into its fourth year of implementation, translating to further increased liquid milk tariff rate quotas. The Thai-Australia and US-Australia FTA’s also celebrated a milestone in passing the 10 year point, and provided improved duty free quotas for Australian dairy.

Further to this, the finalisation of the Trans-Pacific Partnership negotiations in late 2015, plus the late December announcement of an agreement to abolish government subsidies on agricultural exports through the World Trade Organisation.

The Australian dairy industry still faces challenges in its export focused markets, especially with regard to technical barriers to trade which translate to higher production costs, reduced product returns and restricted export demands all combine to lower milk returns for farmers.

With these challenges in mind, ADF is celebrating the progress made in trade reform to the long-term benefit of our industry. This progress boosts the industry’s competitive position in the global market and contributes to building confidence to invest in a strong future for Australian dairy.

For more information on ADF’s Markets Trade and Value Chain priorities, click here.

Australian dairy industry welcomes ChAFTA entry into force

Dec 20, 2015

The Australian Dairy Industry Council (ADIC) has welcomed the China-Australia Free Trade Agreement (ChAFTA) entry into force on 20 December 2015.

ADIC Chair, Simone Jolliffe said the dairy industry was extremely pleased that the historic agreement has been ratified before the end of the 2015 calendar year.

“The entire dairy value chain, led by the ADIC, has lobbied strongly for the implementation of ChAFTA and we are pleased to see its entry into force,” Mrs Jolliffe said.

“On 20 December, Australian dairy exporters experiences the first year’s tranche of tariff reductions. This will be followed by a second round of tariff cuts on 1 January 2016.”

“In the long term this will mean more jobs across the Australian dairy industry both on farm and in processing plants. It will provide our industry with the confidence it needs to invest for a strong future.”

The ADIC thanked the Minister for Trade and Investment, Andrew Robb, and his team of negotiators as well as the Australian government, industry and the broader dairy community for its ongoing support and for ensuring the deal will be ratified in the 2015 calendar year.


 

 

Getting ChAFTA over the line requires united front

Sep 30, 2015

Getting the China-Australia Free Trade Agreement (ChAFTA) ratified will require farmers to show their communities what this opportunity means to them, according to Australian Dairy Farmers (ADF) President, Noel Campbell.

Mr Campbell, along with representatives from the United Dairyfarmers of Victoria (UDV) and the Victorian Farmers Federation (VFF), was in Northern Victoria as part of a Regional Roadshow which kicked off on Monday 21 September.

The industry used the roadshow to ask as many farmers as possible for their help in getting the China agreement ratified before the end of the 2015 calendar year.

“Farm lobby groups are leading the push to get the deal passed through Parliament.ADF, in collaboration with the State Dairy Farming Organisations has been wearing a path to Canberra, lobbying both sides of parliament and the independent senators to highlight why this deal is important,” Mr Campbell said.

“The ChAFTA is under threat. We need farmers, processors, service providers and regional communities to help us get this deal over the line before the end of the year. We need your help to explain to your neighbours, friends and family why this deal matters for Australia.”

The regional meetings were well attended, with over 100 farmers attending for the first three events in West Victoria. Farmers from all commodities – not just dairy – attended the meetings, demonstrating that the entire farming community is well aware of what is at stake.

Tatura dairy farmer, Ingrid Tysoe said the ChAFTA was about building long term sustainable profitability.

“For farm security, things are going to be a lot better; this gives courage for us to work towards the future,” Ms Tyson said.

"I felt that the session was really informative and it's giving us hope that the dairy industry is looking brighter for us.”

Mr Campbell told attendees that it was essential to highlight that the ChAFTA is a good deal not just for farmers but for the Australian community.

“We worked hard to get a true ‘free trade’ agreement with the ChAFTA last year. With tariffs down to zero over the next four to 11 years on dairy products, we believe this has been achieved,” Mr Campbell said.

“The ChAFTA is a great deal for Australian dairy and a great deal for the Australian community. If ratified this year, the dairy industry alone will see growth in job creation across the value chain. We expect that around 600-700 jobs will be created within the first year of ratification. More dairy jobs means more vibrant, prosperous and growing rural and regional communities across all of Australia's dairying regions.

“I urge all of you to get on board to help us ensure that this deal is implemented this year so that our industry, as well as the broader community can start to take advantage of the benefits this deal brings.”

With meetings in Victoria to conclude on Tuesday 29 September, ADF plans to take the regional roadshow to Tasmania to spread the word about how farmers can help get ChAFTA over the line.


ADIC reiterates need to implement China-Australia FTA in 2015

Jul 31, 2015

The Australian Dairy Industry Council (ADIC) has reiterated the importance of ratifying the China-Australia Free Trade Agreement (ChAFTA) within the 2015 calendar year, to ensure the benefits can reach Australian producers as quickly as possible.

Any delay in implementation of the deal beyond 31 December 2015 will cost Australian dairy between $20 million and $60 million in tariffs. This will make it more difficult for the Australian industry to compete and gain further market share.

ADIC Chair, Noel Campbell said while the council recognised that debate about the ChAFTA is part and parcel of a vibrant democracy, the Parliament needed to keep in mind the opportunities at stake for agriculture and food production.

“For Australian dairy to grow and invest in our future profitability, we will require markets that offer a way forward and match our progress,” Mr Campbell said.

“China’s population is set to reach 1.6 billion by 2050 offering enormous opportunity to sustainably grow beyond domestic markets. Our opportunity in China is underpinned by their demand for high quality, safe, value-added products such as infant formula.

Mr Campbell reiterated that parliamentary support for the agreement, that sees the removal of all tariffs on dairy imports over a decade, remains essential.

“With a long record of innovation and adaptation to changing conditions and markets, Australia’s dairy producers are in a strong position to meet the particular demands of boosting exports to China and growing our market share,” Mr Campbell explained.

The Australian dairy industry has had a long and close relationship with China and ChAFTA will allow our industries to further develop this long-term relationship to the mutual benefit of both countries.

Timing is of the essence. If farmers are to maximise benefits from the removal of tariffs then the deal must be implemented in this calendar year.”

The ADIC looks forward to working with both sides of Government to ensure the implementation of the ChAFTA by 31 December 2015. 

 


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