FOOD AND WINE EXPORTS

The Hon. CARMEL ZOLLO (15:01): I seek leave to ask the Minister for Agriculture, Food and Fisheries a question about the forthcoming Fujian delegation visit to South Australia.

Leave granted.

The Hon. CARMEL ZOLLO: The minister has spoken before in this place about her commitment to the government's premium food and wine from our clean environment priority and the opportunities presented by the Chinese market. Can the minister tell the chamber about an upcoming visit from Chinese business delegates with an interest in our premium food and wine?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (15:01): I thank the honourable member for her most important question. With global demand for food to increase by 70 per cent by 2050, South Australia is certainly ideally positioned to respond to this increased demand.

Following my visit to China last year, I was very pleased to announce a memorandum of understanding between the Fujian provincial government and the South Australian government to explore opportunities for collaboration and trade between our regions and to increase exports of premium food and wine from our clean environment.

I am very pleased to advise the chamber that a group of business leaders from Fujian Province in China arrive tomorrow in South Australia with a commitment to purchase an initial $1 million worth of local food and wine for export. This buying trip contributes to the commitment from businesses from the Fujian Province to South Australia and creates a very exciting opportunity to generate increased opportunities for local food and wine exports over the next 12 months.

The buying group, which consists of up to 20 high-profile Fujian business leaders, will visit places such as Port Lincoln, the Barossa Valley, McLaren Vale and Kangaroo Island. They will be here from 10 to 17 April. I am advised that there is a specific interest from the Chinese delegation particularly in meat, wine, seafood, dairy, healthcare products, olive oil, grain and nuts. In addition to these, the delegation will be treated to our fabulous array of fresh fruit and vegetables and also a very diverse range of our processed food production.

China has already grown to be South Australia's single largest export market. I am very pleased to advise that work is now underway in developing South Australian food hubs in the Fujian area to service consumers in the region and the large number of tourists who visit.

In December 2012, I called for an expression of interest from the South Australian food and beverages companies interested in developing trade and business relations with Fujian. Already, more than 60 businesses which believe they are in a position to develop trade and business relations have submitted their expression of interest to PIRSA to be involved in the first phase of the food hub program.

I am advised that most of these Chinese businesses are new buyers of South Australian premium food and wine. In fact, I think that almost all of them have not bought produce from South Australia previously. So, this is a fabulous opportunity. They are willing to retail our products to high-end consumers and corporate markets but are starting with the province of Fujian, an area where they have many interests.

In the future, the objective is for South Australian products to channel through the safe food centre that will be built in Fujian. A number of Chinese journalists will also travel with the group, meaning that this visit will generate, hopefully, very positive coverage for South Australia, promoting our clean and safe products to a large Chinese audience.

South Australia is renowned as a producer of premium food and wine from a clean environment—clean air, clean soil—and we have heard a lot about our clean waters today. I am sure honourable members, if they are keenly interested—

An honourable member: I've got more.

The Hon. G.E. GAGO: I'm sure he has got more. The strong interest from China reinforces how fortunate we are to have access to such diversity in premium, high quality and fresh local products.

With China's middle class expected to double from 100 million to 200 million over the next 10 years, now is a very good time for South Australia to continue to build strong and mutually beneficial trade relationships. Fujian alone has a population of 37 million. It is a fairly small region in China with 37 million people, and it is hard for us to comprehend that.

The development of opportunities with this provincial government is just one of the many ways that the Jay Weatherill government is enhancing and supporting the government's premium food and wine from our clean environment strategic priority. This government looks forward to a continuing engagement with the Fujian provincial government and businesses into the future. I would like to take this opportunity to welcome the business leaders to South Australia.