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.

What the TPP means for dairy

Oct 20, 2015

The 12 nations involved in negotiating the Trans Pacific Partnership (TPP) free trade agreement concluded negotiations in Atlanta on Tuesday 6 October 2015, delivering modest but important gains for the Australian dairy industry.


As the whole of value chain representative body, the Australian Dairy Industry Council (ADIC) acknowledged the conclusion of the agreement as a good result for Australian dairy farmers.

ADIC Chair, Noel Campbell said that the deal, in conjunction with the recently concluded China-Australia free trade agreement, would give farmers the confidence that if they are going to grow their businesses there are markets to match their growth.

“As an industry our future growth will be on the export market, as domestic growth has matured. The TPP provides improved access to markets such as Japan, where demand for our high quality, safe product is expected to increase in coming years,” Mr Campbell said.

“The industry is currently examining the agreement in its entirety to assess what the full extent of the benefits will be for Australian dairy. Early analysis indicates however that the TPP will enable more Australian cheese to be exported to Japan tariff-free. We’ve also got greater access for butter and skim milk powder than ever before.”

Mr Campbell said the industry appreciated the dedication of the Minister for Trade and Investment, the Hon. Andrew Robb MP and his team of negotiators, in continuing to seek trade agreements that benefit the Australian economy.

“On behalf of the Australian dairy industry I would like to extend my thanks to Minister Robb and the Australian negotiators for maintaining strong communication with industry throughout the TPP negotiations. They have done their utmost to balance the competing interest of industry and government across the 12 nations involved throughout a challenging process,” Mr Campbell said.

“The conclusion of the TPP continues a historic period of increased trade liberalisation over the past few years. The ADIC looks forward to reviewing the agreement in its entirety to fully quantify the benefits for dairy.”

Dairy remains hopeful of comprehensive TPP outcome

Aug 17, 2015

In the wake of the Maui Trans-Pacific Partnership (TPP) ministerial meetings, the Australian Dairy Industry Council (ADIC) has re-emphasised the importance of achieving a commercially meaningful outcome for all Australian dairy producers with regards to the Trans-Pacific Partnership Agreement (TPP).

While the ADIC is disappointed that a meaningful agreement has not been reached to date, it remains hopeful that in the near future a TPP which is in the best interests of the Australian dairy industry - and importantly the Australian community as a whole, will be completed.

The TPP is a multi-country Free Trade Agreement (FTA) currently under negotiation between Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, Japan, the United States, Vietnam, Mexico and Canada.

Sustained economic and population growth is driving an increase in dairy demand for the Asia-Pacific, but to take full advantage of this unprecedented opportunity, TPP must be ambitious, comprehensive and commercially meaningful.

ADIC Chair, Noel Campbell said there is still a lot of work to be done and key dairy market access outcomes across the TPP remain unresolved.

“Major dairy players must recognise the importance of trade liberalisation and honouring previously agreed positions to advancing negotiations in a positive manner,” Mr Campbell said.

“A commercially meaningful outcome for the TPP would provide benefits to all countries involved, their industries and consumers. Yet in order to achieve positive results across the board all TPP nations must demonstrate a willingness to negotiate in good faith.”

Mr Campbell acknowledged the efforts of the Minister for Trade, the Hon. Andrew Robb, his staff and the team of dedicated negotiators who have worked on its behalf.

“We will continue to promote the interests of Australian dairy as negotiations progress, and hope to see a comprehensive agreement reached in the near future.”

The ADIC remains are committed to working Government to reach a transformative outcome that provides opportunity for its farmers and processors.

To find out more about the ADIC’s work to liberalise access to key dairy export markets see here


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