Increased US quota good news for Aussie sugar farmers

An announcement overnight by the United States that it would be increasing its quota for sugar imports was good news for Australian canegrowers, the Deputy Prime Minister and Minister for Trade, Mark Vaile, and Agriculture Minister, Peter McGauran, said today.

All up, the US has increased its total quota for raw cane sugar for the 2005 financial year by 76,600 tonnes, and reallocated another 53,400 tonnes from countries that will not be able to fill their quotas.

Mr Vaile said the increase is the result of problems, such as hurricanes in Florida, which are making it difficult for US sugar producers to meet domestic demand.

“As soon as it became clear there was an opportunity to increase our sugar exports, Australian officials consulted closely with our industry and quickly informed the US that we could help meet its domestic shortfall,” Mr Vaile said.

“In fact, we have secured a 17,159 tonne increase in our sugar exports to the US — 22 per cent more than our normal quota of around 79 290 tonnes.”

Mr McGauran said Australia’s willingness to provide the US with extra sugar was reinforced at meetings he and Mr Vaile had with US Agriculture Secretary Mike Johanns during his recent visit to Australia for the Quint meeting of Agriculture Ministers.

“Added to that is the confidence US buyers have in the quality and reliability of Australian sugar, with some having commercial relationships with Australian companies spanning many decades,” Mr McGauran said.

While welcoming the fact that the US would be importing some more sugar this year, the Ministers stressed that Australia would continue to push for substantial reform of agricultural trade, including for sugar, in the WTO Doha Round negotiations.

Contacts:

Minister Vaile’s office 02 6277 7420 - Minister McGauran’s office 0408 971 708