Speech at the Hokubee Presentation
Celebrating "Hastings Day" at the Australian Pavilion, 2005 Aichi World Expo

Australia-Japan Relations

Australian Pavilion, 2005 Aichi World Expo, Tuesday 19th April, 2.45pm

 

Mr Hayashi, President of Hokubee ...

... Mr Miyamoto, President of Hokubee Australia ...

... distinguished guests, ladies and gentlemen.

As Hokubee's only food processing facility in Australia was established in my electorate, it is my pleasure to address you today.

After the Federal Government provided an industry grant though the Dairy Regional Assistance programme, Hokubee Australia opened the $4 million Hastings Food Processing facility in Wauchope in 2002.

Since then, the facility has gone from strength to strength, and has become Australia's 9th largest exporter of value-added products. Last year, sales reached almost $12 million.

The investment by Hokubee is testament to the close economic relationship that Japan and Australia enjoy.

It is also testament to the mutual benefit that both countries can enjoy from closer business and investment links in the agri-food sector.

Japan has long been by far Australia's most important export market. And Japan is currently our largest market for beef.

The resource and primary product focus of Australia and Japan's trade will undoubtedly continue for many years into the future.

The Australian beef industry has been pleased to respond to requests from the Japanese food services industry and the Ministry of Agriculture, Forestry and Fisheries to make up for the shortfall in the Japanese market caused by the exclusion of United States beef following the discovery of BSE in the US.

We now supply 50 per cent of beef consumed in Japan and 91 per cent of imported beef...

... building on our record as a reliable supplier of safe, high quality beef, Aussie Beef exports to Japan increased by 41 per cent by volume in 2004.

But, Australia welcomes competition. Australia looks forward to the return of a healthy beef market in Japan, and the recovery of beef consumption to pre 2000 levels.

The Australian government also hopes that, given the unusual circumstances of the rapid increase of Aussie Beef exports to Japan, the Government of Japan will use its discretion and not apply the safeguard measure to chilled beef imports in August this year.

An 11.5 percentage point increase in the tariff on imported chilled beef would hurt not only the Australian beef industry but also Japanese beef traders, retailers and food service companies, not to mention consumers.

The Australian Government will continue to work hard to ensure that the healthy beef trade to Japan continues, and that the Japanese beef market recovers fully from the BSE crisis.

We need to think creatively and work hard to ensure that the good trade and economic relationship between Japan and Australia keeps pace with changes in the region.

At the commercial level there is scope to develop further the economic integration agenda between the two countries.

In particular, mutual recognition of internationally accepted science-based food safety standards would reduce transaction costs and facilitate trade in the agri-food sector.

We must work hard to nurture our relationship and secure an exciting future.

I wish you all the best in your business both here in Japan ...

... and in Australia.

 

Thank you.