Interview: Australia's agricultural industry has scope to grow even bigger under ChAFTA: government

Australia's agricultural export earnings are forecast to increase by 6.1 percent in the first year of the China-Australia Free Trade Agreement (chAFTA) coming into force, but the nation's Department of Agriculture has said there is scope to grow as more tariffs between the two nations are eliminated.

In an interview with Xinhua on Thursday, a spokesperson from Department of Agriculture said while this year's predicted increase in export earnings and overall farming production could be attributed to a bumper season and good winter weather, the future is bright for exporters wishing to take advantage of the benefits of ChAFTA.

"Improved market access achieved through recent free trade agreements makes Australian products relatively more competitive in our partner markets and hence relatively more appealing to consumers," the spokesperson said on Thursday.

"It is up to Australian exporters to make the most of the opportunities that the stronger demand for our products provides."

The spokesperson said while the forecasts for the 2016-17 season were looking particularly good, there was no reason why producers could not maintain that level of growth as further tariff reductions are rolled out across the agricultural industry.

"The China-Australia Free Trade Agreement delivers Australia significantly improved access for agriculture and foods by eliminating tariffs across a range of key products," the spokesperson told Xinhua.

"Some key outcomes include (but are not limited to) the (immediate) elimination of tariffs on barley and sorghum... (while) seafood, wine, horticulture and livestock tariffs will be eliminated by Jan. 1, 2019.

"Beef tariffs will be eliminated by Jan. 1, 2024, and sheep meat tariffs will be eliminated by Jan. 1, 2023.

"Infant formula tariffs will be eliminated by Jan. 1, 2019, liquid milk, cheese, butter, and yogurt tariffs eliminated by Jan. 1, 2024, and milk powder tariffs eliminated by Jan. 1, 2026."

Earlier this week the department released its forecasts for 2016-17 farm production, and the Bureau of Agricultural and Resource Economics and Sciences' Acting Executive Director, Peter Gooday said it was going to be a "bumper" year.

"Export earnings from farm commodities are forecast to increase by 6.7 percent to 35.15 billion U.S dollars in 201617, following a modest increase of 1.4 percent in 201516 to 33 billion U.S dollars," Gooday said in a statement on Tuesday.

"The gross value of crop production is forecast to increase by 14.7 percent to 23.5 billion U.S dollars in 201617.

"This is due in part to recent record high winter crop production of 52.4 million tonnes and forecast increases in the gross value of horticulture and cotton production."

According to the Australian government, the agricultural commodities "for which export earnings are forecast to rise in 201617" include wheat (up 25 percent), wool (3 percent), sugar (23 percent), wine (3 percent), barley (15 percent), cotton (56 percent), chickpeas (74 percent), lamb (4 percent), canola (33 percent) and rock lobster (6 percent).

The China-Australia Free Trade Agreement came into force in both nations on Dec. 20, 2015, following years of negotiations. Once the agreement is implemented in full, 95 percent of Australian exports heading to China will be tariff free. Endit