Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Northern Australia, also representing the great Deputy Prime Minister, Senator Canavan. The question, Senator Canavan, is: could the minister update the Senate on the positive improvements in the beef industry and how the sector has returned to confidence since the re-election of the Joyce-Turnbull government?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

Thank you, Senator O'Sullivan, for that question. The re-emergence of the strength of the beef sector has been a great news story for our country over the last few years. It has been timed with the re-election of the coalition government in 2013. While there have been a number of factors involved, a big difference that this government has made is that it actually supports our beef producing sector; it supports a trade in beef across the world. It has signed a number of free trade agreements to open up market access for that sector and it of course supports our live export industry, which underpins so much opportunity for our producers to get a fair price for their hard work.

That re-emergence, that rebirth, of the strength of this sector is underlined by the simple prices that people see at the saleyards. The most commonly used price across the country is the Eastern Young Cattle Indicator which compares similar cattle sold right across the country. When we came to government in 2013, its price was just over 300c a kilogram and today, just over three years on, the price is more than 700c a kilogram. It has more than doubled in the space of three years, thanks to the policies, in part, of this government.

There has also been a shortage in cattle markets as well, but there is strength in our beef sector—strong world prices for the boxed beef products and live exports of our nation. This is a unique opportunity for us.

We often hear complaints from some that, for a long time, there have not been abattoirs across the north. You could draw a line from Townsville to Perth and there would be no abattoir north of there. Well, now, thanks to the strong beef sector, abattoirs have opened in Darwin, in February last year; and, only in the last week, the Kimberley Meat Company has opened their abattoir between Broome and Derby in Western Australia. This is a great news story for our beef sector and a great news story for northern Australian beef producers in particular.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator O'Sullivan, a supplementary question.

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

Could the minister advise the Senate of the importance of the red meat industry to northern Australia?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

The north of our country is cattle country. It is the heart of our cattle industry. Almost 45 per cent of our national herd has its home in northern Australia. The development of that industry is integral to the government's broader northern Australia development agenda—to grow agriculture in our north. Most of that cattle industry in the north, because of the state of pastures, is often breeding or not particularly strong fattening country. But what we would like to achieve with our investments in water and agricultural land is to provide the opportunities for beef producers to intensify their production, to make sure that they can turn off more cattle, and turning off more cattle means more money, and more money means more opportunity; it means more jobs; it means more people in the north. It will be a great thing for Northern Australia if we can get the support to develop the water resources that we have there, and the government has the opportunity to do that through its $6 billion northern Australia development agenda.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator O'Sullivan, a final supplementary question.

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

Can the minister apprise the Senate of the gains made to the global beef industry through the outstanding and unprecedented free trade agreement achievements of this government?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

The beef sector in this country is one almost uniquely exposed to world markets. We, of course, are lucky enough in this country to be able to buy affordable and high-quality beef, thanks to the sector. But the sector as a whole exports often more than 70 per cent of its production—indeed, in 2015-2016, 74 per cent of beef and veal production was exported. For that, we need strong access to overseas markets to get a good price for our beef producers, and that is what this government is helping to achieve with the free trade agreements we have signed.

I think it is important to stress what those free trade agreements have delivered for our beef sector. Under the Chinese free trade agreement, the tariff on fresh and frozen beef has already been cut from 12 per cent to 9.6 per cent, and by 2024 it will be zero. Under the Korean FTA, we have already had a reduction from 40 per cent to 32 per cent, and by 2028 it, too, will be zero. This is great news for our beef sector and great news for our nation.

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.