Australian Dried Fruits - Innovation and Export Success

Speech by the Australian Deputy Prime Minister and Minister for Trade, The Hon Tim Fischer to the Australian Dried Fruits Association Federal Council Dinner

Mildura Grand Hotel Resort, NSW, 29 July 1998.

Mr Peter MacIntosh, Chairman of the ADFA; Mr Ian Thorn, General Manager; my Federal colleague Mr Neil Andrew MP; distinguished guests, ladies and gentlemen.

It is a great pleasure for me to be here tonight at the kind invitation of the ADFA Board of Management. The Sunraysia region, and the jewel in that crown, marvellous Mildura, form one of Australia's great agricultural regions. Your industry is a vital component of the success that sees Mildura and its surrounds as the fastest growing provincial region in Victoria. Although a New Southwelshman from the other side of the river, I am more than pleased to cross the border tonight into my colleague John Forrest's electorate to help in singing the praises of an industry that is an integral part to the raft of agricultural success stories along the mighty Murray as it makes its way to the Great Southern Ocean.

Mildura, like your Association and your industry, has a proud tradition and history, but the city and region has also adapted well to changing times and circumstances. In fact the same pressures of change that replaced Mildura's paddle steamers with more efficient and competitive modes of transport have been faced by your industry on many occasions - and now you must again make important decisions about your future as an Association, as an industry and as growers.

Change and reform in the dried fruits industry

The dried vine fruit industry has embarked on a critical process of reform. Serious consideration is being given to the improvements and refinements necessary for the industry to continue to prosper and grow.

The Government fully supports your efforts in ensuring dried fruits remains an internationally competitive and proactive agricultural industry. In fact, the Government has, since coming to office in 1996, made the development of Australian export markets one of its top priorities. We are doing all we can to support Australian exporters through an integrated market opening strategy employing bilateral, regional and multilateral negotiations. Let's not forget, after all, that agricultural and food exports made up almost 30 per cent of total Australian merchandise exports in 1996-97 valued at over $23 billion.

The international trading environment brings challenges, but also greater opportunities, and we must seize them. I commend the efforts your industry has already made. In particular I want to acknowledge your decision to draw the export equalisation scheme to a close. As you probably know, legislation was introduced into Parliament on 2 July. These new arrangements will streamline regulation and lead to greater efficiency in the industry, allowing individual companies to gain direct benefit from their own innovation and marketing.

The industry has also been engaged in discussion with my colleague Senator Judith Troeth, Parliamentary Secretary for Primary Industries, on further reforms that may be required to existing institutional arrangements for the dried fruits industry and, in particular, the role and functions of the Australian Dried Fruits Board.

Innovation is now a word often associated with the dried fruits industry. You see it in new drying techniques, new developments in trellising, and your industry extension services. The most striking development came with the recent processing of the first commercial quantities of the Sunmuscat, an event of which the industry can be proud. The Sunmuscat is an excellent example of innovation that meets specific market needs - in this case, combining highly sought-after taste with superior processing qualities. A win for manufacturers and consumers!

An Action Plan for Australian Agriculture

I can assure you that the Government is conscious of the difficult times that many in rural and regional Australia face. And we are responding on a number of different fronts to secure a strong, vibrant future for areas such as the Sunraysia. Tonight I would like to draw your attention to two particular announcements by the Government in the last week with particular relevance to rural communities. The first is the Government's Action Plan for Australian Agriculture launched by my colleague John Anderson, Minister for Primary Industries and Energy, last week.

The Plan provides a framework for industry, government and communities to work together in the best interests of Australian agriculture. The vision behind the Action Plan is that within ten years Australian agriculture will be based on profitable, competitive and sustainable family farm businesses that are recognised as world leaders in their production efficiency, product quality, innovation and ability to supply and respond to market needs. Having a vision does not guarantee a bright future for everyone in agriculture. But when an industry is inspired to reach key goals, it will work together to address the key issues and move a lot closer to achieving it.

On-line Australia

Secondly I draw your attention to the Government's commitment to an inclusive approach to on-line and electronic commerce opportunities for regional Australia. Earlier today my colleague Richard Alston, Minister for Communications and the Information Economy, has announced details of the Government's draft strategy for the information economy. There is clear provision in the strategy for regional Australia to be given first-hand experience of the benefits, challenges and opportunities being offered by the information economy which will be facilitated through a series of high-level Regional Summits to be held over the coming months.

One of the Government's key objectives is to ensure that every Australian has access to affordable on-line services relevant to their individual needs. Agriculture industries have much to gain from harnessing these new technologies to access new market opportunities and business growth.

Winning export markets for Australia

We primary producers know only too well there will always be fluctuations in our markets - and that is why the Government is also committed to improving market access for Australian products at all levels.

The Market Development Task Force established by the Coalition Government provides a strategic and coordinated effort to secure trade and investment outcomes in targeted bilateral markets. In its first eighteen months, the Task Force pursued 112 priority objectives, with positive outcomes in 95 cases - ranging from better access for Australian sugar, rice and citrus in Japan, canola into Mexico and obtaining financial services licences in China and Thailand.

Some of our biggest breakthroughs in market access have resulted from lengthy negotiations in the World Trade Organization. In May I attended the WTO Ministerial Conference in Geneva, where Trade Ministers agreed that preparations for a new round of agricultural trade negotiations should begin this year.

The new WTO round will allow us to press for further significant cuts to agricultural protection and to close up loopholes in the current rules. Too many rich countries continue to hide inefficient agricultural industries behind protectionist barriers.

Australia has a good record in the trade world in this regard, with comparatively low levels of support and protection for its agricultural industries. You can be confident, therefore, that Australian industries will see significant gains from any further freeing up of world agricultural trade.

Trade safeguards

Just as Australia plays by the rules of the WTO to maximise the benefits for Australian exporters, so too we will not shirk from using existing international rules to ensure that the interests of competitive Australian businesses are not jeopardised by unfair trading practices. After all, there is no such thing as a level playing field. That is one of the reasons why the Government has recently put a trade safeguard mechanism in place.

Under this new procedure the Government can ask the Productivity Commission for recommendations on whether temporary trade barriers can be put in place if there has been a significant surge in imports. I cannot understand why the previous Labor Government didn't establish such a mechanism - it is, after all, allowed under WTO rules. Of course we need to play by these rules, to maximise the benefits for Australian exporters.

Changes to labelling requirements

The Government has also been assisting industry in the domestic market. Under the new labelling rules, the "Product of Australia" label will be reserved for goods containing 100 per cent local content. Producers using the claim "Made in Australia" will need to show that at least 50 per cent of their production costs were incurred in Australia and the product has been substantially transformed here. These arrangements will allow Australian companies proudly to promote their contribution to the local economy, and local consumers to be better informed about what they are buying.

Conclusion - working together for the industry

In concluding tonight, I would like to reaffirm that the Government is aiming to create an environment that will help the dried fruit industry to respond effectively to both domestic and international markets. Your industry, by seriously examining the needs for possible regulatory and institutional reform, is placing itself to make the most of new opportunities, and to establish a secure and bright future into the next century.

Before concluding, I want to salute Peter MacIntosh who has done so much to develop and transform the dried fruit industry in Australia. Peter stepped forward to address the hard facts when the industry needed it most. He has seen the industry through the period of uncertainty coinciding with the rapid development of the wine industry, and has worked tirelessly for the advancement and benefit of the industry as a whole.

It is with very mixed feelings, then, that we farewell him from the ADFA Board of Management. It is sad to see someone leave when we know them so well and they've performed so magnificently. But Peter can be justifiably proud of his achievements during his 17 years on the Board and his 6 years at the helm. I am sure you join me in wishing Peter all the very best for the future.