The Australian Horticultural Exporters' Association (AHEA) has hailed the release of the Agricultural Competitiveness White Paper as an "important building block" for raising farm gate returns, improving infrastructure and capturing greater market opportunities. 

The Federal Government's paper promises AUD$30.8 million in funding to break down barriers to trade and appoint five new agricultural counsellors, as well as AUD$200 million in national biosecurity surveillance and analysis, and AUD$12.4 million for modernizing food export traceability systems to enhance food safety credentials.

"We are encouraged at the commitment and focus on biosecurity, profitability, standards and improving Australia's trade position through securing new and better access to premium markets," AHEA executive director Michelle Christoe said in a release.

"The development of the Agricultural Competitiveness White Paper in consultation with the industry and associations such as AHEA has demonstrated the Government’s continued commitment to improving our competitiveness through not just eliminating tariffs but addressing the non-tarriff, technical barriers to trade and the supply chain.

"This will allow horticulture to take advantage of the recently announced FTAs in Korea, Japan and China; as well as market gaps that exist."

The AHEA highlighted the significance of horticulture for the prosperity of rural and regional Australia, as the country's third-largest agricultural sector with 59,500 people employed in addition to a further 6,250 who work in fruit and vegetable processing.

The group also cited Australian Bureau of Statistics figures from 2013-14 that show Australian horticulturalists export 60% of their farm products, with 90 fruit and vegetable products exported to more than 60 countries, with a value of AUD$790 million annually.

"Export must be part of the nation's strategy.  The time is ripe for the agriculture industry to start building their strategic plans against food trends of the middle class, invest and capitalise on its proximity to Asia.  The two must go 'hand in hand'," Christoe said.

"The government’s commitment to strengthening Australian overseas market efforts with five new Agriculture Counsellors is promising and well received by AHEA.

"Existing counsellors prove invaluable in maintaining government to government relationships with key trade partners, removing technical barriers and helping resolve horticulture incidents."

She said some other countries had an edge over Australia in terms of strategic intent and competitiveness.

"Australia in the past appeared to have no stated goal or clear strategy for expansion into Asia other than a desire to export whenever the returns are better than the domestic market. This is a start in the right direction."

Competitive priorities

Export market-oriented measures form just one part of the paper's five-pronged approach to Australian agriculture, which is worth a total of AUD$4 billion when also including the following priorities; a fairer go for farm businesses, building the infrastructure for the 21st century, strengthening the approach to drought and risk management, and farming smarter.

The first part entails helping farmers improve their profitability through a fairer supply chain and making agriculture easier through streamlined chemical approvals, reducing the cost of business and improving country of origin labeling so consumers know where their food is grown in processed.

The Australian Competition and Consumer Commission (ACCC) will boost its engagement with the sector to encourage fair-trading and strengthen competition in agricultural supply chains, while the government will also offer a two year pilot program to provide knowledge and materials on cooperatives, collective bargaining and innovative business models.

The second priority involves a AUD$500 million National Water Infrastructure Fund for farmers' future water security, in partnership with State and Territory governments and the private sector. The government has also pledged an additional AUD$60 million to the existing AUD$100 million project to improve mobile phone coverage across the country.

With the right water infrastructure in place, the second priority aims to improve how the industry handles drought and its risks, through a series of initiatives that will help give farmers more accurate weather forecasts, provide tax deductions for new water facilities and offer farm insurance advice over the next four years.

These measures will be supplemented by significant funding for drought concessional loans and local infrastructure projects, along with other consultative and support services.

The 'farming smarter' piece involves a AUD$100 million extension of the Rural R&D for Profit Programme to 2021–22, in order to get "research onto the farm". Additionally, AUD$50 million will go toward emergency pest and disease eradication capability, and a further AUD$50 million will be invested in giving farmers better tools and control methods against pest animals and weeds.

This priority will also provide funding for matching industry levies and contributions, and directing research and development priorities to direct these funds to areas that will improve farm gate returns.

More beaming industry responses

Citrus Australia Judith Damiani also welcomed the paper, and said the five priority areas would provide a real focus for the Australian government and agricultural industries to work together.

"The Australian agriculture sector is a vital part of the nation’s economy and will play an increasingly important role in feeding the growing Asian middle class," Damiani said.

"Citrus Australia is pleased to see greater support for the industry with increased resources for export market access; biosecurity; research, development and extension; and country of origin labelling.

"These are critical areas for the Australian citrus industry and we look forward to working with Agriculture Minister Barnaby Joyce and Prime Minster Tony Abbott as these measures are implemented."

Another industry group Voice of Horticulture particularly welcomed new measures for the protection of Australian produce from pests, as well as new investment to provide practical support for Australian producers to enter new markets.

The proposal to appoint five new agricultural counsellors to focus on access for foreign markets was also welcomed, in response to the sector's input in the white paper process. The organization said the new officers would provide practical on-the-ground assistance to growers and help maximize the benefits of increased market access generated by new free trade agreements.

"Australia produces the best quality produce in the world. These measures provide strong assistance to help Australian farmers to increase our share in world markets," Voice of Horticulture chair Tania Chapman said in a release.

The proposed commitment of AUD$200 million to provide stronger biosecurity measures was also "strongly welcomed".

"This measure will help protect Australian farmers from pests that could have the potential to destroy millions of dollars' worth of produce each year," Chapman said.

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