AS farmer and mining groups combine to defend the China-Australia Free Trade Agreement (ChAFTA), horticulture stands cautiously optimistic over the new deals.
The Abbott government signed the ChAFTA in June concluding decade-long negotiations with the nation’s biggest trading partner.
At the time, Trade and Investment Minister Andrew Robb claimed the deal represented a “transformative moment” for the national economy; especially agricultural exports which comprised $9 billion last year.
But the historic tariff-cutting trade agreement is now facing growing threat with unions questioning the veracity of its labour agreements and adequacy of protections for Australian workers.
That outspoken opposition has been underpinned by a phone polling campaign in Coalition electorates backed by television advertising and public rallies warning the ChAFTA will favour jobs for Chinese workers over locals.
A panel forum at this year's National Horticulture Convention on the Gold Coast in June saw four industry representatives tackle the topic of what opportunities FTAs presented for growers in key markets.
Ausveg export development manager Michael Coote, Montague Fresh managing director Scott Montague, Australian Institute of Export CEO Lisa McAuley and Citrus Australia market access manager David Daniels made up the panel.
Each gave a brief presentation on their thoughts concerning Free Trade Agreements particularly the more recently signed agreements between Japan, Korea and that with China still being ironed out.
They also took questions from the floor.
While each brought a slightly different perspective on the FTAs from their relative positions and industries, the group delivered some tempered warnings.
Ausveg's Michael Coote was direct in his comments over past agreements.
"Horticulture has been used as bargaining chip for other industries," he said.
He encouraged growers and businesses to consider the FTAs already in place such as those with Thailand, Singapore, New Zealand, Chile and Malaysia, and continue to explore export opportunities with them.
There was a need to look at new products and build knowledge around the existing markets, according to Mr Coote.
Mr Coote said value-adding to products, such as processing, could get around the need for quarantine certificates.
Backing up the export cause of vegetables, Ausveg hosted 41 leading international buyers from Asia and the Middle East in a Reverse Trade Mission (RTM) coinciding with the National Horticulture Convention.
Importers and wholesalers from Japan, Singapore, Hong Kong, Malaysia and the United Arab Emirates took part in the trade mission, which aimed to increase the profile of the Australian vegetable industry and allow Australian growers to capitalise on expanding international markets.
More than 40 Australian vegetable growers participated in the produce display for RTM delegates, who also visited leading growing and production operations during their time in Australia.
“The Australian vegetable industry currently exports about $256 million worth of produce annually but there is enormous potential for growth in this space,” Mr Coote said.
FTAs not the "be all"
The family-run Montague Fresh owns and operates four apple orchards which, according to Scott Montague, should allow the business to export for 365 days a year.
He said exports could help ease the current apple oversupply, something he said "needs to change".
He said while the Pink Lady has been highly praised for its branding and international impact, the product was grown at below cost in recent seasons.
"I believe stonefruit is heading the same way," Mr Montague said.
"Our vision of the future is to go direct to retail in Asia and avoid the wet markets. Retailers there want this."
In order to achieve this, he said airfreight needs to be competitive.
He also cautioned about thinking of export as a fix-all saviour for all growers, saying it's not for everyone.
For those that do choose to pursue foreign trade, industry cooperation would go a long way toward easing paths into overseas markets according to Mr Montague.
"We need collaboration within industry, and use those who have paved the way already," he said.
"Pride gets in the way."
"If we don't change our culture through choice, it may be through pain."
Australian Institute of Export CEO Lisa McAuley reinforced that FTAs are not complete solutions.
"FTAs are not exactly 'free trade' - they are free-er trade," she said. "They don't solve all problems."
She took the opportunity to announce the new online tool, FTA Tool, which has been developed in conjunction with ANZ and went live on July 1.
The site is designed to help companies quickly and easily navigate what FTAs are and give some basic practicalities about understanding how to correctly classify products.
It also explains certificates of origin.
Dialogue as important as dollars
One horticulture industry to have particularly embraced exports is citrus.
Citrus Australia's market access manager David Daniels said the industry now exports some $200 million worth of fruit, a figured that is backed by a long history of exporting.
"We've changed the industry to very much an export culture," he said.
Korea stands as the largest citrus export market, however that needs to be kept in perspective on the world stage.
Mr Daniels said in the past year Australia has exported six containers to Korea whereas the US has exported 1000.
Still, citrus's history means it is at a point where it can now target more difficult markets.
There are costs involved for growers however. Mr Daniels said it can cost up to $2000/ha to set up orchard for export to China.
But the conversations established between Australian businesses and foreign traders are as important as the monetary exchange, according to Mr Daniels.
"That ongoing dialogue means a lot," he said.
"The FTA with China is valuable but the diplomacy is equally, if not more important."
He said it would be vital to pounce while the political discussion on FTAs simmered along.
"We need to capitalise on them (FTAs) while the excitement is still there," he said.
Better branding needed
Discussion about that need for industry collaboration was mirrored by other panel members.
Mr Daniels said "Brand Australia" is not sold well enough.
"The reality is, some major growers with unique brands are very protective," he said.
Ms McAuley agreed.
"Brand Australia is a complete mess at the moment," she said.
"Overseas no one cares if you are from Queensland, New South Wales or Western Australia. The states are competing against each other."
For citrus in particular, Mr Daniels said about 95 per cent of exports come out of six packing sheds, each with very independent brands.
"They feel their brand is more important I suppose than Brand Australia," he said.
"At the moment I don't think Australia has an identity in the world, like France or New Zealand. There's a lot of work to be done there.
"That's really what we are trying to sell to Asia, particularly in China, that when they buy an orange they are actually buying a piece of Australia- they are buying the blue skies, they are buying that photo of Ayers Rock.
"We sell the sweet, safe and healthy issue but our food is safe not because of the food safety systems we have or the MRLs we have, it is safe because of the environment we are growing it in and I don't think we sell that well enough."
