Mr MITCHELL - 1998-02-25
With regard to the current currency crisis in the Asian region and the impact that may have on the live cattle export trade, can he
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indicate any alternative markets that may exist in that region?
ANSWER
Madam Speaker, the downturn in the Asian economies has indeed had a severe slowing effect on the live export trade from Darwin. Last year, 488 000 head of cattle were exported from the Port of Darwin. Unfortunately, the figure will be reduced seriously this year. Taking into account the currency crisis in Asia, we have been pro-active in trying to identify other markets.
Last December, I met with representatives of a Chinese company that holds 1 of only 3 import permits into China. As a result of those meetings, representatives from my department, in conjunction with AQIS and the AMLC, travelled to China to negotiate import protocols for cattle from the northern part of Australia. That was very important because, while there was in place an import protocol into China, it limited the cattle taken into China from the southern part of Australia because of the problems with bluetongue. Let me say that bluetongue has never been seen clinically in the Northern Territory. However, the antibodies do appear in various blood tests. As a result of those meetings in China, the Chinese officials, the equivalent of our AQIS, will be coming to the Northern Territory in the next couple of weeks to assess the bluetongue situation for themselves. We are confident that China will accept cattle from the northern part of Australia. We are currently conducting trials in relation to vector reductions and spraying the cattle to reduce the vectors that may bite them. However, in the dry season, there appears to be no barrier to the export of cattle through Darwin to China.
We were able to act so quickly because my department's virology laboratory, over a number of years, has collected a library of blood samples or sera. We were able to go back through that and survey almost the whole of the Northern Territory for bluetongue antibodies. That proved conclusively that, probably from south of Dunmarra, there is absolutely no problem at any time of the year. From north of Dunmarra, there could be a problem from December through to April. However, it will allow us to access the Chinese market which we believe will become at least the equivalent of Indonesia and the Philippines. The added advantage of that Chinese market is that it is for cattle direct for slaughter. They would be taking heavier cattle that now miss the Filipino or Indonesian boats. They will also require feed to sustain those cattle while they are held in yards in China awaiting slaughter.
There is also some potential for the export of cattle to Mexico of all places. We have identified a market opportunity there for pregnancy-tested in-calf (PTIC) heifers. The exporters here believe they can land PTIC heifers in Mexico for about $US200 cheaper than they can be bought across the Texan border. There is some work being carried out on that and on the import protocols to China. Boats have also been going to Libya from here. Once again, it is an indication of the efficiencies of our producers that Australia can land cattle in Libya cheaper than they can be bought from Italy. That is an indication of how efficient our Australian beef producers are.
We are confident that, notwithstanding the Asian market downturn, alternative markets will be identified and opened up for Northern Territory cattle. There is also an air of confidence, especially in relation to the Filipino market, that the cattle trade will return fairly quickly to previous levels. The industry is confident that, at the end of the day, the Indonesian trade will resume.
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indicate any alternative markets that may exist in that region?
ANSWER
Madam Speaker, the downturn in the Asian economies has indeed had a severe slowing effect on the live export trade from Darwin. Last year, 488 000 head of cattle were exported from the Port of Darwin. Unfortunately, the figure will be reduced seriously this year. Taking into account the currency crisis in Asia, we have been pro-active in trying to identify other markets.
Last December, I met with representatives of a Chinese company that holds 1 of only 3 import permits into China. As a result of those meetings, representatives from my department, in conjunction with AQIS and the AMLC, travelled to China to negotiate import protocols for cattle from the northern part of Australia. That was very important because, while there was in place an import protocol into China, it limited the cattle taken into China from the southern part of Australia because of the problems with bluetongue. Let me say that bluetongue has never been seen clinically in the Northern Territory. However, the antibodies do appear in various blood tests. As a result of those meetings in China, the Chinese officials, the equivalent of our AQIS, will be coming to the Northern Territory in the next couple of weeks to assess the bluetongue situation for themselves. We are confident that China will accept cattle from the northern part of Australia. We are currently conducting trials in relation to vector reductions and spraying the cattle to reduce the vectors that may bite them. However, in the dry season, there appears to be no barrier to the export of cattle through Darwin to China.
We were able to act so quickly because my department's virology laboratory, over a number of years, has collected a library of blood samples or sera. We were able to go back through that and survey almost the whole of the Northern Territory for bluetongue antibodies. That proved conclusively that, probably from south of Dunmarra, there is absolutely no problem at any time of the year. From north of Dunmarra, there could be a problem from December through to April. However, it will allow us to access the Chinese market which we believe will become at least the equivalent of Indonesia and the Philippines. The added advantage of that Chinese market is that it is for cattle direct for slaughter. They would be taking heavier cattle that now miss the Filipino or Indonesian boats. They will also require feed to sustain those cattle while they are held in yards in China awaiting slaughter.
There is also some potential for the export of cattle to Mexico of all places. We have identified a market opportunity there for pregnancy-tested in-calf (PTIC) heifers. The exporters here believe they can land PTIC heifers in Mexico for about $US200 cheaper than they can be bought across the Texan border. There is some work being carried out on that and on the import protocols to China. Boats have also been going to Libya from here. Once again, it is an indication of the efficiencies of our producers that Australia can land cattle in Libya cheaper than they can be bought from Italy. That is an indication of how efficient our Australian beef producers are.
We are confident that, notwithstanding the Asian market downturn, alternative markets will be identified and opened up for Northern Territory cattle. There is also an air of confidence, especially in relation to the Filipino market, that the cattle trade will return fairly quickly to previous levels. The industry is confident that, at the end of the day, the Indonesian trade will resume.
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Last updated: 09 Aug 2016