Mr ELFERINK - 1998-04-28
At the last sittings, he informed the Assembly of the potential for China to enter the live cattle export trade. He would be only too aware of the pressures on the Territory's beleaguered cattle export industry. Is there any positive news on China's desire to import cattle from the Northern Territory?
ANSWER
Madam Speaker, it is with some pleasure that I am able to advise the House that, last Friday, the Australian Quarantine Inspection Service (AQIS) and the Chinese Animal and Plant Quarantine Service (CAPQS) signed a protocol allowing the importation of cattle from the northern part of Australia to China. A protocol had been signed previously, but that had limited exports of cattle from Australia from a line south of the New South Wales/Queensland border. The Chinese have attempted in the past to import cattle under that protocol into China, but they found it was economically unviable given the length of time the cattle had to spend on boats and the type of cattle they were obtaining.
As I advised the House on 25 February, we had representatives in China, along with AQIS and the Australian Meat and Livestock Corporation (AMLC), attempting to negotiate a protocol. Officials from CAPQS came to the Northern Territory the week before last, inspected our new veterinary laboratories, had discussions with officers of my department and other people interested in the export industry and visited a number of properties in the Territory. As a result of that and of further discussions in Queensland on Friday, they have signed a protocol to allow the export of cattle from the Northern Territory from a line south of Powell Creek and Brunette Downs. The real advantage of this protocol is that it will allow the passage of those cattle through the buffer and the infected areas to the Port of Darwin. In the wet season, when the entomological load is such that it is to be expected that animals will be bitten by sandflies and vectors of blue tongue, the cattle will need to be transported direct to the port for loading. However, in the dry season, they are allowed a 48-hour spell around Katherine and other areas to be confirmed.
Not only is this a great opportunity for the Northern Territory and north Australia in terms of livestock export, but it also presents a great opportunity for our fodder producers. Whereas a vessel travelling with cattle from Darwin to, say, Surabaya or Cilacap in Indonesia takes about 5 days, and feed is required for 5 days until those cattle go into feedlots, this trade is based on cattle going direct for slaughter. It is about an 8-day or 9-day voyage, followed by a period during which the cattle are held in the yards in China prior to slaughter. Not only is feed required for extra days on the boat, but there is also potential to provide feed for the holding yards in China where the cattle are held until they are slaughtered.
This is a direct result of officers of my department, the industry, officers of AQIS and officers of the Queensland DPI taking a pro-active approach to finding markets for our cattle. It bears testimony to the good work of those officers who have been involved, the cooperation that exists between them and the cooperation they received from the Chinese officers that they have been able to open up this market which one would think will provide, in due course, huge opportunities for pastoralists, in the southern part of the Territory especially, to provide heavier cattle direct for slaughter. It has also the effect of taking the downward pressure off prices for export cattle in that this will fill a market and there will be less downward pressure on prices on the Filipino market. One would not expect this market to open up to any large degree very quickly. However, given the level of interest from China and the amount of investment
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that we understand the Chinese are now putting in place, one would expect this market to rival the Filipino market at least in 3 to 4 years.
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ANSWER
Madam Speaker, it is with some pleasure that I am able to advise the House that, last Friday, the Australian Quarantine Inspection Service (AQIS) and the Chinese Animal and Plant Quarantine Service (CAPQS) signed a protocol allowing the importation of cattle from the northern part of Australia to China. A protocol had been signed previously, but that had limited exports of cattle from Australia from a line south of the New South Wales/Queensland border. The Chinese have attempted in the past to import cattle under that protocol into China, but they found it was economically unviable given the length of time the cattle had to spend on boats and the type of cattle they were obtaining.
As I advised the House on 25 February, we had representatives in China, along with AQIS and the Australian Meat and Livestock Corporation (AMLC), attempting to negotiate a protocol. Officials from CAPQS came to the Northern Territory the week before last, inspected our new veterinary laboratories, had discussions with officers of my department and other people interested in the export industry and visited a number of properties in the Territory. As a result of that and of further discussions in Queensland on Friday, they have signed a protocol to allow the export of cattle from the Northern Territory from a line south of Powell Creek and Brunette Downs. The real advantage of this protocol is that it will allow the passage of those cattle through the buffer and the infected areas to the Port of Darwin. In the wet season, when the entomological load is such that it is to be expected that animals will be bitten by sandflies and vectors of blue tongue, the cattle will need to be transported direct to the port for loading. However, in the dry season, they are allowed a 48-hour spell around Katherine and other areas to be confirmed.
Not only is this a great opportunity for the Northern Territory and north Australia in terms of livestock export, but it also presents a great opportunity for our fodder producers. Whereas a vessel travelling with cattle from Darwin to, say, Surabaya or Cilacap in Indonesia takes about 5 days, and feed is required for 5 days until those cattle go into feedlots, this trade is based on cattle going direct for slaughter. It is about an 8-day or 9-day voyage, followed by a period during which the cattle are held in the yards in China prior to slaughter. Not only is feed required for extra days on the boat, but there is also potential to provide feed for the holding yards in China where the cattle are held until they are slaughtered.
This is a direct result of officers of my department, the industry, officers of AQIS and officers of the Queensland DPI taking a pro-active approach to finding markets for our cattle. It bears testimony to the good work of those officers who have been involved, the cooperation that exists between them and the cooperation they received from the Chinese officers that they have been able to open up this market which one would think will provide, in due course, huge opportunities for pastoralists, in the southern part of the Territory especially, to provide heavier cattle direct for slaughter. It has also the effect of taking the downward pressure off prices for export cattle in that this will fill a market and there will be less downward pressure on prices on the Filipino market. One would not expect this market to open up to any large degree very quickly. However, given the level of interest from China and the amount of investment
Page 210
that we understand the Chinese are now putting in place, one would expect this market to rival the Filipino market at least in 3 to 4 years.
Page 211
Last updated: 09 Aug 2016