Dick Adams (Lyons, Australian Labor Party) Share this | Hansard source

I move:

That this House:

(1)

congratulates the farmers of Tasmania on their bid to bring the plight of all farmers to the attention of the community and the Premier of Tasmania for supporting them;

(2)

condemns the Federal Government for:

(a)

the lack of labelling laws to allow the community to make their own decisions on the purchase of fresh food;

(b)

the fact that farmers in Tasmania and the rest of Australia are suffering from the unlevel playing field that exists in the import and export of fresh foods;

(c)

the fact the Federal Government is not achieving enough gains for farmers in their negotiations on free trade agreements with many countries, including the US and China; and

(d)

the lack of leverage for farmers trying to negotiate fair and just contracting rates for their produce; and

(3)

calls on the Minister for Agriculture, Forestry and Fisheries to introduce legislation to ensure that labelling of farm products is unambiguous and works for the benefit of all Australian primary producers.

Members may remember towards the end of last year when the vegetable growers from Tasmania took to the road in their tractors and farm machinery and wended their way through the southern states to Canberra to point out the plight of vegetable farmers around Australia because of the terrible effects that some of the free trade agreements are having on Australian farmers. The ones of most concern are those with China and the US. They have been negotiated without decent labelling legislation that identifies to local buyers which fresh and frozen vegetables are grown in Australia and which are only packaged here. We could have solved this many years ago when the matter was raised before, but it has languished, gathering dust on a shelf somewhere. As the collection of farm vehicles drove to Canberra, support was given  by all the various shades of politics, all of which promised to do a number of things. Our state government in Tasmania had a look at the Food Standards ANZ recommendations in October last year and found them really lacking.

Much of this new interest was due to Tasmania’s industry developing a paper on the current situation and future of this industry. The Tasmanian vegetable industry situation paper covers issues of competitiveness, branding and labelling, trade, energy, quality assurance, regional factors, corporate buying policies of both supermarkets and quick service restaurants, transport, skills, water usage and structural matters—among others. It revealed some startling facts. For instance, Tasmania produces about eight per cent of Australia’s vegetables—at farm gate values. The vegetable sector represents 20 per cent of the value of the state’s agriculture, or $160 million at the farm gate and about $360 million when packed or processed.

Australian vegetables account for less than three per cent of the world’s vegetable trade and the industry faces declining competitiveness compared to other producing countries. Australia has been a net vegetable exporter but this is likely to be reversed within three to five years, placing supply pressure on the domestic Australian market. This market accounts for 70 per cent of all Tasmanian vegetable sales. Downturn in vegetable sector activity in Tasmania in 2005-06 is likely to reduce gross farm income by about $18.6 million. The wholesale value of lost production in processed vegetables and potatoes is likely to be more than $90 million. The economic impact will be most severe across northern Tasmania, especially the Cradle Coast region.

Based on industry figures, the gap between Australian and overseas competitors’ prices for some key commodities, such as potatoes, peas and corn, ranges from 19 per cent to 116 per cent. Key competitive differentials cited were input costs, including the costs of labour, occupational health and safety, quality assurance and environmental protection, current exchange rates and subsidies enjoyed by some major competitors. The high production costs and small scale of production units in Tasmania are cited by both processing companies as affecting the state’s competitiveness. McCain Foods’ average contract size in New Zealand is believed to be 7,000 tonnes, compared with a 700-tonne average in Tasmania. Similar situations exist in other crops and commodities.

Generally, there is an absence of Tasmanian branded produce in the marketplace, so it is impossible for local people to see what is ours—clean and green—and what is being imported. For example, I have been told that someone has been importing lettuces from China and selling them into McDonald’s, but it is hard to identify them when one is purchasing food from such a group. Supermarkets dominate the retail sector, which sells 65 per cent of all vegetables sold within Australia. Supermarkets are decreasing, and in some cases have entirely removed, suppliers’ brands from shelves. The local seasonal competitive advantage enjoyed by producers at certain times of the year is becoming less relevant as supermarkets and quick service food chains opt for global supply strategies. Existing country of origin labelling is inconsistently interpreted and applied and this is a situation that has existed for some time.

I was really pleased when this situation was highlighted by the farmers, because for too long we have not valued the produce grown in one of the most disease free areas of the world. We have something that other nations pay good money for, yet we are being targeted for produce dumping at the worst and, at the best, filling the pockets of the big supermarket chains. Labelling is one way of allowing the consumer to choose. If they want to pay a little more and buy jobs for Tasmanians, better products and the freshest around while also supporting the farmers develop new lines and ideas, then I think the labelling should reflect that.

I think my motion is pretty clear. The farmers and primary producers need some assistance, and that assistance should emphasise that when their product goes to market everyone knows it is fine Australian product and therefore consumers can make an informed choice. I hope the motion will be supported by all members. (Time expired)

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