Opening the World to Australian Produce 25 September 2003 John Webster Managing Director

1. Opening the World to Australian Produce 25 September 2003 John Webster Managing Director Horticulture Australia Limited

2. Horticulture in Australia • Gross Value of Production $6b (++) • Fruit 34%; Vegetables 34% • Nursery 23%; Nuts 2% • Dried Fruits 2%; Other 5% • GVP increased 21% in last 5 years. • Enterprises up 15% - 4 years – to 17,273. • Employment up 26% - 4 years – to 64,000 (20% of total agriculture employment). • Exports (fresh) up 65% - 7 years – to $715m. • A growth industry past, present and future !!

3. GVP : $b : 2003/04 One of the largest agricultural industries in Australia

4. … but small compared to others AustraliaChina Fruit production 3,016kt 70,432kt Vegetable production 1,799kt 278,592kt Fruit exports 309kt 1,360kt Vegetable exports 169kt 2,400kt Population 19.1m 1,282.4m

5. Where does HAL fit into horticulture ? Assist industry to grow, and sell their products more profitably by creating commercial opportunities for Australian horticulture producers

6. Horticulture Australia • Company – under corporations law • Not for profit • Formed in January 2001 • 28 industries signed MOU (work with 40+) • Nuts, nursery, fruits, vegetables • $70m budget with staff of 42 • Service company - owned by industry • Industry elects Board • R&D & Marketing • Export control body • Export licensing etc

7. HAL - partnership with industry • Treat levies as an investment by industry • Focus on producers • Work in partnership with industry • Industry agree strategy • Industry agree annual priorities • Annual report on investment return • Capture synergies between industries and between R&D and marketing

8. HAL Budget – 2003/04 • R&D Marketing • levy $13.3m $9.4m • VC $16.1m $1.4m • matched $29.4m* - • Total $58.8m $10.8m • $70m • *Commonwealth government – silent partner

9. Focus with levies is vital • HAL investments of industry funds • R&DMarketingTotal • 2001/02 $48m $11m $60m • 2002/03 $60m $11m +$70m • 2003/04 $60m $11m +$70m • 2004/05 $60m $11m +$70m • 2005/06 $60m $11m +$70m • TOTAL $290m $55m +$340m • > Third of a Billion Dollars • (an awesome responsibility for HAL & Peak Industry Bodies) • Must focus on projects that provide real return: • Strategic Plan that provides focus on explicit goals • Annual Plan  worthwhile results every year • Measurable results !!! 25/9/03

10. HAL Strategic Plan • Consistently meeting consumers’ requirements • Consumer satisfaction initiative • Health initiative • Developing markets • Market access and export initiative • Enhancing supply chain efficiency & integrity • Production efficiency and sustainability • Water initiative • Supply of trained employees

11. Access in a tough environment • Australia is a relatively small producer • Without farm support programs • Counter-seasonal supply for major northern consumer markets • A focus on higher end of market • Meeting consumers’ interest in health • Meeting consumers’ demand for sustainable production With some advantages

12. Access important with future growth (tonnes) Almonds + 56% Macadamia + 29% Trees already planted Apples + 18% Citrus + 10%

13. .. So we need to open the world to Australian horticulture produce • Identify market access impediments / opportunities • Determine new market access priorities • Establish market access targets with government agencies • Develop industry wide policies, strategic positions & initiatives • Develop & report against market access strategic plan

14. Horticulture Market Access Committee (HMAC) • HAL • Industry reps • Exporters (AHEA) • Plant Biosecurity • AFFA – Policy • AQIS • DFAT • State Dept Ag

15. … with lots of challenges • Setting new market access priorities • Accepting that access is a two way street • Whilst requiring high standards for imports given our disease / pest free status • Being ‘clean & green’ as well as saying it • Our members accepting realistic expectations • Retaining a genuine partnership with govt • Developing the strategy together • Holding Government accountable for delivery • Being accountable for our responsibilities • Sufficient resources in Plant Biosecurity

16. … US FTA looking OK • Roughly balanced trade in horticulture • Aust less range of exports to USthan visa versa • 70% Aust imports (value) from US duty free • 2% of Aust exports (value) to US duty free • All products small % of domestic sales • Strong grounds to argue for immediate elimination of all tariffs across the board on Australian horticultural exports to the US • Greatly appreciate the partnership & professionalism of our negotiating team

17. … not so for Doha WTO round • Abrupt termination of the Cancun Ministerial Conference 14 Sept is a real disappointment • Negotiators must be urged to return to the negotiating table • Next step is WTO General Councilmeeting in Geneva by 15 December • Positive agriculture outcome essential – must reduce export subsidies in particular • Holding Cairns Group together is important • A real challenge for our negotiating team

18. … but progress in China • Formal access required on joining WTO • Australia behind competitors on access • Minister’s delegation positive • commitment to strengthen cooperation • latest access priorities raised with Chinese counterparts • commitment to accelerate efforts to progress market access requests • efforts will ensure assessments are based on sound science and are consistent with protecting the plant health status of both countries. The least trade restrictive measures consistent with the scientific analysis will be applied

19. We can make a real difference if we ‘get it right’ with access • If we: • Plan strategically • Focus on outcomes with real commercial opportunity • Concentrate where we can make a difference • Fund the program (govt plus industry) • everything necessary to achieve outcome • Can only do this if we are united – in focus - & within industry – & with government

20. We are committed to working with you to maximise trade and minimise risk while opening the World to Australian produce.