Market Access News

24.02.2015 Market Access News Comments Off on Press Release – China wheat & barley protocol

Press Release – China wheat & barley protocol

Coordinated industry approach wins China wheat and barley protocol
The Australian Grains industry can be assured of ongoing trade worth in the order of $0.5-1.0 billion annually with China for wheat and barley following the agreement this month between both governments for a new biosecurity protocol.
The protocol is critical for ongoing trade, and was the result of a coordinated approach by the grains industry working together with government to achieve results, according to the Grains Industry Market Access Forum (GIMAF).
GIMAF executive manager, Tony Russell, said that while country to country trade protocols on the surface are always agreements between governments, the industry plays a vital part in helping craft and support the content of such agreements through a major consultative process.
“This is an established protocol that normally rolls over every three years, however for the latest renewal China proposed additional quarantine considerations that required thorough examination and detailed industry planning to propose practical solutions,” Mr Russell said.
“Quarantine is an important trade issue because the rules between countries have to be sensible, scientifically based, effective and practically achievable – something that sounds simple, but in reality can be quite complex because issues, concerns and the science surrounding them can change over time.
“Dealing with issues like this is precisely why GIMAF was formed, because input is needed from right across the industry.
“Resolving the new wheat and barley protocol has been a long process involving numerous discussions between industry members and briefings with Department of Agriculture officials, all during the sensitive period when the China-Australia Free Trade Agreement was being negotiated.
“GIMAF has coordinated several industry forums involving exporters and growers over the period including the most recent one in Melbourne just prior to Christmas. Then earlier this month GIMAF coordinated an industry tour for Chinese quarantine officials to confirm first-hand their understanding of the Australian grain export chain, visiting research facilities, a typical farm, a country storage and delivery facility, and a bulk export terminal.
“We felt that thanks to the effort of all those involved with the tour, the delegation gained a strong appreciation of the industry’s coordinated approach to biosecurity matters – hence their willingness to initial the agreement during the visit, ahead of formal signing in April.
“GIMAF would like to place on record its appreciation for the efforts of Minister Joyce and the team within the Department of Agriculture for their work and positive cooperation with the industry on this issue,” Mr Russell said.
Further information: Tony Russell, executive manager, GIMAF ph 0419 890 669

See over for further information about GIMAF and exports to China

GIMAF was established in 2011 by the grain industry to work together with the Australian government and its agencies to develop and implement international market access plans for the grains, fodder and seeds industries. Its members are the peak industry bodies: the Australia Grain Exporters Association, Australian Fodder Industry Association, Australian Oilseeds Federation, Australian Seeds Federation, Grain Producers Australia and Pulse Australia.
About wheat and barley trade with China
Australia has exported wheat and barley to China since the early 1960s and it remains one of the most important markets for Australian cereals.
Australian export statistics to China (source: ABARES and GIMAF)

Quantity(tonnes) 2013 2014
Wheat 870,554 2,000,000
Malting Barley 1,053,174 1,000,000
Feed Barley 705,326 700,000

Value ($A) 2013 2014
Wheat $283,306,303 $700,000,000
Malting Barley $300,000,000 $280,000,000
Feed Barley $180,000,000 $160,000,000
Total $763,306,303 $1,140,000,000

18.02.2015 Market Access News Comments Off on New Wheat & Barley Protocol agreed with China

New Wheat & Barley Protocol agreed with China

The trade in wheat and barley from Australia to China is set to continue under a new protocol which will formally commence in April this year. Discussions for the new protocol have been on-going for over 12 months following concerns raised by Chinese quarantine agency AQSIQ about a number of weed seeds and pests in Australian cereal exports received in China.
AQSIQ has agreed to an Industry Management Plan under which shipments of wheat and barley to China will be executed in accordance with the requirements spelled out in the Department of Agriculture’s MICoR database. The outcome of the plan is to reduce the level of specified weed seeds and pests in shipments to China.
An import permit will also be required before exporters finalise contracts with Chinese buyers under the new protocol.
AQSIQ officials visited Australia in the first week of February this year to see first hand the critical control points that our industry has in the supply chain to manage weed seeds and pests from production through to shipment. The new protocol was initialled by Dr Zhao Hanqing from AQSIQ and Dr Vanessa Findlay from Department of Agriculture in Canberra and is scheduled for formal signing in Beijing in April this year.
A copy of the Industry Management Plan is attached below:

Wheat Barley to China Industry Management Plan Final Nov14

08.04.2014 Market Access News Comments Off on Access for Lupins to India finally granted

Access for Lupins to India finally granted

After years of lobbying efforts by Pulse Australia and CBH along with technical negotiations by Department of Agriculture officials lupins for human consumption have been granted market access to India. Lupins have declined in production over the last decade due to lack of markets prepared to value the commodity at a level that provides a competitive return to growers. Recent publicity around the unique nutritional benefits of lupins in a human diet may have finally encouraged Indian authorities to consider the inclusion of lupins in the mix of pulses marketed and consumed in India. This announcement provides the possibility of renewed interest in the production of lupins as an important broadacre rotational crop.

08.04.2014 Market Access News Comments Off on Australia signs Free Trade Agreement with Japan

Australia signs Free Trade Agreement with Japan

Australia concluded an historic free trade agreement with Japan yesterday. The agreement has been under negotiation for more than 7 years and was announced with enthusiasm by Prime Minister’s Abe and Abbott in Tokyo.
The FTA is a ‘mixed bag’ for agriculture with some useful gains for some sectors but notably there is no access for Australian rice and the benefits for the grain sector are very modest.
The outcomes for grains are as follows:
• Australian Prime White and Australian Hard wheat to be traded through the simultaneous buy and sell system.
• Removal of tariff on wheat for animal feed.
• Market access for wheat (for food) and wheat gluten will be automatically reviewed five years after entry into force, with a view to improving access; and if Japan provides another country a better deal, a review will be automatically triggered with the aim of providing Australia equivalent treatment.

Barley and Malt
• Removal of tariff on barley for animal feed
• duty free Australia-only quota for unroasted malt of 86,000 tonnes (equivalent to our total 2013 trade).
• Market access for barley (for food) will be automatically reviewed five years after entry into force, with a view to improving access; and if Japan provides another country a better deal, a review will be automatically triggered with the aim of providing Australia the equivalent treatment.

Corn – tariffs up to 21.3% on milled corn products eliminated over periods between 5 and 10 years.

Sorghum – 3% tariff eliminated immediately on entry into force.

Oats – 12% tariff eliminated over 7 years.

Buckwheat – 9% tariff eliminated over 10 years.

Pulses – immediately, on entry into force, elimination of 8.5% tariffs on lentils and chickpeas.

Rice – Japan has excluded rice.

Oilseeds and Vegetable Oil

Note, oilseeds currently enter Japan duty-free.

• Canola Oil – 13.2 yen/kg tariff eliminated over 10 years
• Cottonseed Oil – 8.5 yen/kg tariff eliminated over 10 years
• Olive Oil – tariff will be bound at zero
• Mixtures of Oils – 13.2 yen/kg tariff eliminated over 10 years
• Safflower Oil – 8.5 yen/kg tariff eliminated over 5 years.
• Sunflower and Sesame Oils – 10.4 yen/kg and 8.5 yen/kg tariffs eliminated over 7 years
• Linseed Oil – 8.5 yen/kg tariff eliminated over 10 years
• Coconut oil (4.5%), Palm Kernel oil (4%), Palm Oil (3.5%), Castor oil (4.5%) – tariffs will be eliminated immediately on entry into force.
Overall comment: good for sorghum and vegetable oils – not much advantage in any other area, and no movement for our most important products: Noodle Wheat and Malting barley. Very positive that we have the renegotiation clause in after 5 years and equivalent terms if Japan does a better deal with other country after this deal done.

10.12.2013 Market Access News Comments Off on Korea-Australia Free Trade Deal Great For Agriculture

Korea-Australia Free Trade Deal Great For Agriculture

Trade Minister Andrew Robb and his Korean counterpart, Yoon Sang-jick, Korea Minister of Trade, Industry and Energy.
The Free-Trade deal concluded last week between South Korea and Australia is great news for the Australian grains industry. Tariffs will be eliminated on the major traded grain (wheat) enabling Australian growers to compete on a level playing field with the US who has enjoyed zero tariffs since the entry into force of the KORUS FTA on 1 January 2012. Based on average exports from Australia in recent years this could provide an additional revenue of $10 million to Australian producers. Other grains and oilseeds will enjoy a reduction and elimination of tariffs as well opening up potential new trade opportunities.
Full details of the agreement have yet to be released pending ratification of the deal by the respective governments.

22.08.2013 Market Access News Comments Off on Market Access Initiatives produce big results

Market Access Initiatives produce big results

Concentrated efforts by GIMAF, Australian Oilseed Federation and DAFF to regain market access for Australian canola into the Chinese market has brought a windfall for Australian growers since late March this year.  The market price surged up to $50 per tonne on the news at the time and the trade has responded resoundingly with more than 500,000 tonnes contracted for shipment for total value of over $300 million.  This result has far exceeded the expectations of the organisations involved in the drive for market access and vindicates the efforts applied.  A program of research activities has been implemented with Chinese quarantine authorities to support the risk mitigation of the unwanted pathogen Blackleg in shipments to China.  The resounding trade outcome to China in 2013 and the ongoing cooperation on technical risk management will underpin a positive future for the Australian canola industry.

23.11.2012 Market Access News Comments Off on Resumption of Canola trade to China – a step closer

Resumption of Canola trade to China – a step closer

Good progress has been achieved this week towards the re-establishment of the trade of Australian canola to China.  The Australian Oilseed Federation sponsored a visit for 4 Chinese scientists to meet with Australian government officials,  researchers, agronomists specialising in canola production, and other grains industry people.  The visit commenced in Perth where the Chinese visitors were hosted by the newly formed Australian Export Grains Innovation Centre and included a visit to CBH’s Kwinana Grain Terminal.  Then the visitors met SARDI researchers and quarantine staff in Adelaide.  Melbourne was the next stop and the delegation received an excellent presentation from researchers and crop management experts at University of Melbourne followed by a meeting with some of the major canola exporters.  Then the visitors had the opportunity to walk in some crops of canola in the field and were able to see first hand agronomic practices to manage pests and diseases by Australian farmers.  A full day of meetings with DAFF Biosecurity in Canberra followed to resolve a joint research program on blackleg and discuss protocol conditions for Australian canola to China.  The final days of the visit included a visit to Graincorp’s Port Kembla terminal and a final stopover in Sydney prior to departure.  We are hopeful that the visit will lead to the resumption in the canola trade to China by Australian exporters

10.09.2012 Market Access News Comments Off on GIMAF gets Australian barley exports to Korea back on track

GIMAF gets Australian barley exports to Korea back on track

South Korea has accepted the Australian barley industry supply chain measures document which will now offer industry a practical alternative to the requirement to screen all barley shipments from Australia.

The acceptance of this document by South Korea is a big win for the Australian barley industry, noting however that industry will need to ensure compliance with the industry practices as outlined in the document prepared by the Australian Grains Industry Market Access Forum (GIMAF) on behalf of the Australian barley industry.

The Supply chain measures document proposed that the requirement for freedom from live snails in Australian barley shipments will be done by a range of measures including:

  • Knowledge of the prevalence of, known as vineyard snail or common white snail, in grain received and stored in the Australian barley supply chain;
  • Barley will not be selected and allocated for shipment from areas where Cernuella virgata are  prevalent; and
  • Verification of the barley selection process through sampling and testing that barley selected for export will meet importing country phytosanitary requirements.

Industry should be aware that South Korea has warned that detection of snails in Australian barley consignments will result in additional quarantine measures, such as imposing import restrictions. Therefore it is the responsibility of industry to follow the measures as proposed in the document and provide written assurance to DAFF that consignments are free of snails and they have met their responsibility within the management plan. South Korea has requested DAFF to endorse phytosanitary certificates with the additional declaration ‘the consignment was inspected and found free from Cernuella virgata’.  DAFF will endorse phytosanitary certificates based upon exporters compliance with the supply chain measures as set out above, followed by DAFF inspection of the barley prior to export.

Exporters that do not comply with the industry best practices or are unable to provide written assurance will need to continue to screen barley for South Korea prior to DAFF phytosanitary inspection.

A copy of the industry management plan is attached here.

Barley to South Korea – Industry Management Plan