CHINA TRADE LINKS

The Hon. G.A. KANDELAARS (14:40): I seek leave to make a brief explanation before asking the Minister for Agriculture, Food and Fisheries a question about her recent trip to China.

Leave granted.

The Hon. G.A. KANDELAARS: China is on the brink of being the largest economy in the world and accounts for almost one-fifth of South Australia's exports. In 2011, we welcomed more than 19,000 tourists from China to South Australia alone. Can the minister further inform members about her recent time in China and some of the work done to strengthen the relationship between China and South Australia?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (14:41): I thank the honourable member for his most important question and his interest in these areas. The purpose of my recent visit to China was to promote South Australian goods and services and to try to create better trade links and a gateway for South Australian tourism, including food and beverage imports into China. We were particularly focused on the burgeoning middle class in China.

China's economic growth over the past two decades has been around 10 per cent and this has led to the materialisation of a growing middle class with changing consumption patterns and some fairly definitive consumer preferences, and they include quality produce and assurances about safety. Capturing a larger share of the China market means building awareness and promoting South Australia among Chinese buyers, investors, travellers and travel agents. It is essential to ensure that South Australia is perfectly positioned to be a long-term, reliable supplier and tourist destination for the Chinese market.

The Fujian province is identified as an important market close to the coast, with a major port and a climate similar to northern Australia, making our respective food production capabilities complementary. It was here that I met with the Governor of the Fujian Province, Mr Chen, and his delegation. The Fujian government is particularly interested in food safety and integrity. The result of discussions around strengthening bilateral relations between the South Australian government and the Fujian provincial government was the signing of a memorandum of understanding between Primary Industries and Regions South Australia and the Fujian Department of Agriculture. The MOU has been put in place initially for two years and seeks to underpin collaboration in establishing trade links for premium grade food and wine and also research links to support food hygiene and safety standards.

I also travelled to Xiamen city, the main port and gateway to the Fujian Province. Here I received a briefing from local government officials and China-Australia Entrepreneurs Association Incorporated regarding two projects in Zhangzhou. The first visit in Zhangzhou city was to the proposed food safety and hygiene project. The purpose of this facility will be to provide a research and testing centre that will incorporate a wholesale and retail system to ensure access to quality premium food and beverage from South Australia and also the Australian marketplace, but we were obviously there promoting South Australia's access.

The second project was a new Australian-style park. The China-Australia Entrepreneurs Association is building this centre in conjunction with the Zhangzhou city government, with an aim to introduce Australian customs and cultures into China. I was advised that they hope to have the project completed by the end of 2014. I was further advised that, once complete, the centre is to feature Australian food and wines and create an Australian experience. It will also feature Australian animals and plants. I understand that people from our zoo recently visited to look at the suitability of the environment to place some Australian animals there. It is anticipated that the centre will attract a lot of tourists and become a landmark under the support of governments at all levels of that province.

I also met with the management of China National Cereals, Oils and Foodstuffs Import and Export Corporation (COFCO). COFCO is one of China's state-owned food processing holding companies and is China's largest food processing manufacturer and trader. Discussions were broadly around South Australia's food and beverages, with COFCO being particularly interested in our wine. Following this, I met with representatives from the Ministry of Commerce to discuss the federal government China-Australia food security research project that is soon to be completed. I certainly made sure I put forward South Australia's food credentials as a premium food and wine producer.

I also progressed tourism initiatives whilst in China, such as with PATA, the leading authority on travel and tourism in the Asia-Pacific region. PATA works in partnership with private and public sector members to enhance sustainable growth, value and quality of travel and tourism to-and-from and within its regions. That meeting proved to be very insightful into the current and future potential of the Chinese outbound market.

I met with Mr Tan, the CEO of China Southern Airlines, to pave the way for further discussions and affirm the South Australian government's commitment to securing more direct international air access. China Southern Airlines is the largest of China's big three state-owned airlines. It has a hub in Guangzhou and Beijing and operates a fleet of 400 aircraft serving 172 cities, and it is a very successful organisation. In summary, the South Australian government will continue to promote South Australia to the Chinese market to extend opportunities for our food, beverage and tourism industries.