Dairy industry disappointed with failure to milk opportunity
Date
April 9, 2014
Australian dairy farmers have expressed ''extreme disappointment'' over the new ''free trade'' deal with Japan, labeling it a ''dud deal'' and ''lost opportunity''.
According to figures released by the Australian Dairy Industry Council, Japan bought $511 million of Australian dairy exports in 2012-13, making it the country's biggest customer. But market access in Japan comes at a cost, with dairy exporters paying more than $100 million a year in tariffs.
The new deal, the council said, would reduce tariffs paid by dairy exporters by just $4.7 million in its first year, a figure that would rise to just $11.6 million by 2031.
''We were hopeful government had heeded the industry's message in regards to freeing up market access in Japan, however it now appears our words fell upon deaf ears,'' Robert Poole, deputy chairman of the council, said.
''There has been no movement in this agreement on fresh cheese - the number one objective for Australian dairy - with tariffs to remain at 29.8 per cent. A successful outcome on this tariff line would have delivered approximately $60 million in tariff savings. Instead, we have received nothing and the tariff stays in place.''
The president of United Dairyfarmers of Victoria, Tyran Jones, said it was ''not a particularly good deal'' for Australia's dairy industry.
''The bottom line is that in the first year the benefit is somewhere in the order of $4˝ million … which is not a meaningful amount in terms of Australian dairy trade,'' he said. ''It's just an opportunity lost. There was potential for a reduction in the cost of doing business in the dairy export sector.''
Acting Prime Minister Warren Truss said: ''There always has to be some element of give and take.
''We can't get everything that we would like. Clearly, I would like to see all agricultural trade barriers removed and that would be a huge boost to the Australian farm sector.''
Read more: http://www.smh.com.au/federal-politics/political-news/dairy-industry-disappointed-with-failure-to-milk-opportunity-20140408-36baz.html#ixzz2yKUKVVfi