Dairy farmers want a Free Trade Agreement (FTA) with Japan but not at any cost, according to Australian Dairy Farmers (ADF) President, Noel Campbell.
Mr Campbell said Japan is a major market for Australian agriculture, and the dairy industry in particular.
“Japan is a hugely significant market for us, and Australian dairy farmers want an FTA that will add value to our exports, supports local manufacturing and strengthens the long term future of the industry,” Mr Campbell said.
“Advice to date indicates the offer for dairy market access to Japan falls well short of the industry’s expectations, and needs substantial improvement before dairy could accept an agreement.
“We need to get the fundamentals right and if that means there’s not a deal in the short term – then so be it.”
Japan is the largest and most important market for the Australian dairy industry – with $511 million in exports in 2012/131, 19% of our dairy exports by value.
This despite a range of trade barriers2and market distortions that cost Australian dairy exporters over $116 million (USD) in 2011/12 alone, including tariffs of up to and exceeding 35% on cheese.
Victorian dairy farmer, Adam Jenkins, from South Purrumbete, said if a deal was worth doing, it was worth doing right.
“Japan is a very important destination for our product and if we want a successful and internationally competitive Australian dairy industry in future, then we need fair and open market access,” Mr Jenkins said.
“An agreement for agreement’s sake that delivers next to nothing for dairy will end up not being worth the paper it’s written on.
“If we get this right, we see this as a great opportunity, not just for local dairy farmers but also Japanese consumers, who would benefit from access to a secure supply of high quality dairy products from a great producer and trade partner – Australia.”
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