Ken O'Dowd (Flynn, National Party) Share this | Hansard source

Today I want to talk about the ban in Indonesia on our mandarin citrus trade. The citrus industry is an important part of the Australian export economy and a huge driver of wealth and employment in my electorate of Flynn. The Australian citrus industry is the largest fresh fruit exporter in Australia, worth in excess of $200 million annually. Australia exported $15.5 million worth of citrus to Indonesia in 2014. Flynn is home to the largest section of the national citrus production—including the largest mandarin growers in the southern hemisphere, 2PH farms in Emerald, run by Craig and Bindi Pressler. Many growers in Flynn grow navel oranges and mandarins particularly for the Indonesian market. These producers are vital to their local economies, providing employment opportunities for both permanent and seasonal workers.

The Indonesian government has made trade decisions that impact quite severely on many of our citrus growers. Indonesian trade minister Thomas Lembong has placed a ban on the importation of Australian mandarins for a period from April until September 2016, rendering the Australian harvest irrelevant for this year. The Australian mandarin season lasts from April until August. Ironbark Citrus, near Mundubbera, operated by Allen and Susan Jenkin, produce high-quality mandarins, especially for the top-end Indonesian market. These changes threaten to decimate their business, a strong employer in the region. It is claimed by Mr Lembong that the move is to strengthen the domestic citrus industry—and you cannot blame him for that. While it is understandable for any country to want to promote their own industries, it is a shame to see a close neighbour and trade partner offer such protectionist and closed-market alternatives.

We have seen this approach before from Indonesia in the cattle industry, when the government tried to promote their own beef by cutting back the quota of live imports to Indonesia. This backfired on the Indonesian government when the people of Indonesia saw the cost of their beef products go through the roof. The government had to reverse that decision and then restart the importation of live cattle from northern Australia. You cannot stop and go on these matters; it takes a long time to grow a citrus tree suitable for a certain market—and it is the same with beef cattle at the weights.

This situation shows just how fickle the world of international trade can be and how our farmers bear the brunt. We hope that Austrade in Australia is able to negotiate a solution before 2016— (Time expired)

See this speech in context