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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2013-07-23 Daily Xml
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Question Time

AGRICULTURAL EXPORTS

The Hon. J.S. LEE (15:11): I seek leave to make a brief explanation before asking the Minister for Agriculture, Food and Fisheries a question about exporters in the agricultural sector.

Leave granted.

The Hon. J.S. LEE: Many exporters have contacted my office raising concerns about the lack of support by federal and state government. The Export Market Development Grants (EMDG) legislation has been presented in the federal parliament which will introduce changes that will significantly impact on business operation for exporters. Feedback collected in consultation with industry and the Export Council of Australia indicates that the number of exporters accessing the scheme will drop. The level of complexity will increase, with increased compliance costs to be borne both by the exporter and Austrade in administering the scheme.

It appears that the EMDG Amendment Bill is bringing uncertainties for exporters involved in international trade, and South Australian companies are concerned about the staggering reduction of investment in our regions. As they have pointed out, the state budget for regional development and primary industries will spend $79.7 million this year compared to $96.6 million last year.

According to the exports data that the Australian Bureau of Statistics released on 3 July 2013, exports have continued to decline in April and May and, over the previous 12-month period, South Australian exports fell a staggering 8.6 per cent. My questions are:

1. Has the minister consulted with South Australian exporters in the agriculture, food and fisheries sectors regarding the impact of EMDG new changes on their business operations?

2. The agricultural sector is one of the most important export revenue earners for our state. What strategies will the minister introduce to provide certainties for South Australian exporters in the agricultural sector?

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) (15:14): I thank the honourable member for her important questions. Indeed, when we go to the 2011-12 Food ScoreCard, we see that, in fact, there have been significant gains made in much of our activity, including our exports.

For instance, gross food revenue has increased by $442 million, which is a 3 per cent increase, to reach record levels of $14.3 billion. Finished food values have grown by around $200 million, a 4 per cent increase, to reach record levels of $4.9 billion. Total overseas exports exceeded the record levels of 2010-11 by $207 million, a 6 per cent increase, to reach a record $3.7 billion. The value of Australian food exports increased by nearly 12.3 per cent, to $30.5 billion. South Australian food retail and food service sales grew over $300 million (4 per cent) to reach a record of $8.7 billion, and the value of food and liquor retailing in Australia grew by 4.2 per cent in 2011-12, to $135.8 billion.

Our food imports rose $74 million, 10 per cent, which is obviously in response to the high dollar, and the South Australian food industry and their value chains represent almost one in five or 17.8 per cent of the state's employed workforce. In the last 20 years, real growth in South Australia's agriculture, forestry and fisheries sector has averaged 4.1 per cent per annum. Over the same period, South Australia's total economy averaged a real growth of 2.8 per cent per annum. Nationally, the increase was about 3.5 per cent.

In 2011-12, the agriculture, forestry and fishing sectors contributed 5.8 per cent of the state's economy. I could go on. I find it interesting that the opposition continues to look only at those negative things. They fail to ever refer to the enormous achievements we make in this state, the hard work of our primary producers, the largely small to medium-size family businesses that devote their life's work to these activities and achieve a great deal. It is a real shame that the opposition continues to come into this place only pointing at the negatives.

Our Wine ScoreCard, gross wine revenue, increased by $26 million (1 per cent), to reach $1.75 billion. Grape production values increased by 17 per cent, to $421 million following a 2 per cent increase in volume, to just over 698,000 tonnes, and an increase in average farm-gate grape prices, from $528 per tonne to $603 per tonne—up 14 per cent. Wine making values increased by 5 per cent, local consumption values increased by $23 million, and interstate sales and stocks increased by $65 million. I could continue to go through our horticulture, our exports in 2011-12 totalling $118 million for citrus and almonds, being key exports, our livestock, our grains—there are so many areas in relation to our primary products in which we continue to achieve a great deal and are doing reasonably well overall in terms of exports.

We continue to do work here in South Australia in assisting industries to seek and develop new markets. We are doing a great deal of work I have reported in this place on a number of occasions, particularly the work in China, where we have burgeoning middle-class growth, consumers who are looking for premium quality products of high food safety, good quality assurance standards and good environmental standards. That is exactly the sort of produce we have here. We know that South Australia is not renowned for cheap bulk commodities. What we are best at is premium quality, safe primary produce.

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