Mr MITCHELL - 1998-10-06
Given that there is no doubt about the effect that the current Asian economic crisis has had on the cattle industry, there have been a few positive spin-offs for the buffalo industry. Can the minister expand on that, please?
ANSWER
Madam Speaker, there are totally unexpected positive effects of the Asian economic downturn. The drought in south-east Asia last year has led to an opening up in the market in some of those countries for our water buffalo or riverine buffalo.
Over the last 10 years, the farmers in those countries stopped using buffalo as draught animals and turned to machinery, but with the downturn and the drought combined, many of those farmers are unable to maintain that machinery. Indeed, many farmers are unable to maintain the payments and much of the machinery has been repossessed by the banks leading to a problem in ploughing the fields. Not only that, they proceeded to eat what buffalo they had.
As a result, we have recently transshipped 300 head of breeder buffalo to Sarawak, which are the first breeder buffaloes to go to that place for over 10 years, so as to re-establish their herds of draught animals. As my colleague, the Leader of Government Business, observed, it might be some years before Northern Territory buffaloes could be used in a straight furrow competition. However, it is one of the unexpected side-benefits from the downturn in the Asian economies.
I might just add, while I am on my feet, to 30 September this year we have shipped out 123 395 head of Northern Territory cattle and that compares to 246 000 for all of last year.
It has had a rather severe impact on the Northern Territory pastoral industry. However, we are confident that with emerging markets in Libya and Egypt it is likely that Indonesia could come back into the marketplace in the near future and that has been evidenced by recent shipments to Indonesia. If we could get support exchange cover in place with the exporters, also the likelihood of China opening up early in the new year, and arrangements almost finalised with the government of Vietnam to facilitate the export of live cattle from the Northern Territory to Vietnam, I would foresee by the middle of next year, or early in the year 2000, that the Northern Territory live export trade will be back at 1997 levels.
ANSWER
Madam Speaker, there are totally unexpected positive effects of the Asian economic downturn. The drought in south-east Asia last year has led to an opening up in the market in some of those countries for our water buffalo or riverine buffalo.
Over the last 10 years, the farmers in those countries stopped using buffalo as draught animals and turned to machinery, but with the downturn and the drought combined, many of those farmers are unable to maintain that machinery. Indeed, many farmers are unable to maintain the payments and much of the machinery has been repossessed by the banks leading to a problem in ploughing the fields. Not only that, they proceeded to eat what buffalo they had.
As a result, we have recently transshipped 300 head of breeder buffalo to Sarawak, which are the first breeder buffaloes to go to that place for over 10 years, so as to re-establish their herds of draught animals. As my colleague, the Leader of Government Business, observed, it might be some years before Northern Territory buffaloes could be used in a straight furrow competition. However, it is one of the unexpected side-benefits from the downturn in the Asian economies.
I might just add, while I am on my feet, to 30 September this year we have shipped out 123 395 head of Northern Territory cattle and that compares to 246 000 for all of last year.
It has had a rather severe impact on the Northern Territory pastoral industry. However, we are confident that with emerging markets in Libya and Egypt it is likely that Indonesia could come back into the marketplace in the near future and that has been evidenced by recent shipments to Indonesia. If we could get support exchange cover in place with the exporters, also the likelihood of China opening up early in the new year, and arrangements almost finalised with the government of Vietnam to facilitate the export of live cattle from the Northern Territory to Vietnam, I would foresee by the middle of next year, or early in the year 2000, that the Northern Territory live export trade will be back at 1997 levels.
Last updated: 09 Aug 2016