❓ Mr. Blayney asks about the potential economic impact of the MOU with Zhejiang Province regarding agricultural trade and live exports. The Premier details the existing relationship and future opportunities, particularly in live cattle exports, highlighting biosecurity and supply chain considerations.
AnsweredQoN 596Legislative Assembly
QuestionView source ↗
ZHEJIANG
PROVINCE — MEMORANDUM OF UNDERSTANDING
596. Mr I.C. BLAYNEY to the
Premier:
I was pleased to learn that the Premier, on behalf of the
Liberal–National government, signed a memorandum of understanding with
Zhejiang Province in China relating to agricultural trade and investment
opportunities, in particular live exports. With this in mind, can the Premier
please explain the potential impact this MOU will have on the Western
Australian economy?
PROVINCE — MEMORANDUM OF UNDERSTANDING
596. Mr I.C. BLAYNEY to the
Premier:
I was pleased to learn that the Premier, on behalf of the
Liberal–National government, signed a memorandum of understanding with
Zhejiang Province in China relating to agricultural trade and investment
opportunities, in particular live exports. With this in mind, can the Premier
please explain the potential impact this MOU will have on the Western
Australian economy?
AnswerView source ↗
Last week I took part in the biennial conference of Zhejiang
in China, with which we have a sister province relationship. That relationship
has matured over the years. It has been in existence for 26 years. Apart from
the close connections between the two levels of government, there are staff
exchanges within the public sector, sister schools and English education
contests. Research is now going on into different varieties of grain, in
particular barley, looking at genetics for frost resistance, salt resistance
and the like. There is now a new initiative in oceans research, and there is
collaboration in filmmaking and so on. After a quarter of a century, that
relationship has now reached a maturity whereby it grows upon itself in just a
natural way. That was my second visit to China this year. When I went in June,
there was a lot of discussion in China about food security, and in particular
food safety. There was also a lot of discussion in China about the need to
increase protein levels in the Chinese diet, and that translates broadly to
increasing meat consumption. Coupled with that, with urbanisation, a growing
middle class and a diversity of tastes, people want to consume more beef.
Indeed, there has been a dramatic increase in beef consumption. Exports to
China from Australia have gone up tenfold or so in just the past year.
Nevertheless, that represents a small part of the market.
Almost by chance, in June I raised the question of whether
live cattle exports were a prospect, bearing in mind that last year Western
Australia exported some 6 300 breeding dairy cattle, so the transfer and
handling of animals is not something new. To the great credit of the work done
by successive Ministers for Agriculture and Food, and also the department, that
progressed remarkably quickly, and a signing between the Department of
Agriculture and Food in Western Australia and the equivalent department in
Zhejiang took place. It was witnessed by me, as Premier, and by Dr Xia, as the
Party Secretary of Zhejiang.
Several members interjected.
Mr C.J. BARNETT :
The member laughs, but can I say that that would not have happened without the
knowledge and tacit approval of Beijing, if members know anything about the way
in which the Chinese system operates. There is still work to be done under this
memorandum of understanding; there is work to be done on the supply chain with
the involvement of private industry, within both China and Australia.
Mr W.J. Johnston interjected.
The SPEAKER :
Member for Cannington!
Mr C.J. BARNETT : I
expect to see that succeed over the next six to 12 months, and I expect Western
Australia to lead the charge in the development of live cattle export and
probably live sheep export. A great deal of work has been done at that level.
Obviously, we both have to deal with national governments on this in terms of
exporter supply chain assurance system protocols; I do not believe that will be
a problem in China. Indeed, I would expect that if abattoirs do not meet the
standard, new abattoirs will be built, probably very, very quickly. Similarly,
within China the issue is about disease or infection; particularly, I think
bluetongue is the issue for China. Members can imagine that if there is an
animal disease or infection of some sort in China, it is almost impossible to
control it, so the Chinese will place great scrutiny on the biosecurity issue.
We are well placed for that; the cattle going into China would probably come
from the south of the Pilbara, and Western Australia has a high degree of
freedom from infection and disease in cattle, so we are in a great position.
Demand for exports from Australia has grown very quickly, but
Western Australia is a very small part of that. In 2008, Australia exported 5.5
million tonnes of chilled beef to China, worth $19 million. In 2013 so far, 127
million tonnes has gone to China, worth $422 million; of that, Western
Australia provided only 1.25 million tonnes, or $3.8 million, yet we have the
greatest potential to succeed in the live export market. I have to say that I
am somewhat dismayed that the Leader of the Opposition has come out publicly
against this, and as the Pastoralists and Graziers Association has pointed out —
Mr
M. McGowan : You're verballing again. You can't help
yourself!
Mr
C.J. BARNETT : Does the Leader of the Opposition support the live cattle
industry, or not? I do not think he does.
Several members interjected.
The SPEAKER :
Members!
Mr C.J. BARNETT : I
cannot find the quote, but I think Rob Gillam from the P and G made it very,
very clear —
Mr
M. McGowan : P and G?
Mr
C.J. BARNETT : The Pastoralists and Graziers Association. The Leader of the
Opposition should have heard of it; it is on the other side of Darling Range.
He should go out there one day and have a look at what is out there; there is a
great agricultural industry. Once again, when Western Australia leads the
charge into China, which we have done for the last 25 years, it is the
opposition—this time, the Leader of the Opposition—that is not
interested. This will potentially open up a massive new industry and
opportunity for farmers in Western Australia, and on this side of the house we
support that, while the opposition side immediately takes a negative position.
in China, with which we have a sister province relationship. That relationship
has matured over the years. It has been in existence for 26 years. Apart from
the close connections between the two levels of government, there are staff
exchanges within the public sector, sister schools and English education
contests. Research is now going on into different varieties of grain, in
particular barley, looking at genetics for frost resistance, salt resistance
and the like. There is now a new initiative in oceans research, and there is
collaboration in filmmaking and so on. After a quarter of a century, that
relationship has now reached a maturity whereby it grows upon itself in just a
natural way. That was my second visit to China this year. When I went in June,
there was a lot of discussion in China about food security, and in particular
food safety. There was also a lot of discussion in China about the need to
increase protein levels in the Chinese diet, and that translates broadly to
increasing meat consumption. Coupled with that, with urbanisation, a growing
middle class and a diversity of tastes, people want to consume more beef.
Indeed, there has been a dramatic increase in beef consumption. Exports to
China from Australia have gone up tenfold or so in just the past year.
Nevertheless, that represents a small part of the market.
Almost by chance, in June I raised the question of whether
live cattle exports were a prospect, bearing in mind that last year Western
Australia exported some 6 300 breeding dairy cattle, so the transfer and
handling of animals is not something new. To the great credit of the work done
by successive Ministers for Agriculture and Food, and also the department, that
progressed remarkably quickly, and a signing between the Department of
Agriculture and Food in Western Australia and the equivalent department in
Zhejiang took place. It was witnessed by me, as Premier, and by Dr Xia, as the
Party Secretary of Zhejiang.
Several members interjected.
Mr C.J. BARNETT :
The member laughs, but can I say that that would not have happened without the
knowledge and tacit approval of Beijing, if members know anything about the way
in which the Chinese system operates. There is still work to be done under this
memorandum of understanding; there is work to be done on the supply chain with
the involvement of private industry, within both China and Australia.
Mr W.J. Johnston interjected.
The SPEAKER :
Member for Cannington!
Mr C.J. BARNETT : I
expect to see that succeed over the next six to 12 months, and I expect Western
Australia to lead the charge in the development of live cattle export and
probably live sheep export. A great deal of work has been done at that level.
Obviously, we both have to deal with national governments on this in terms of
exporter supply chain assurance system protocols; I do not believe that will be
a problem in China. Indeed, I would expect that if abattoirs do not meet the
standard, new abattoirs will be built, probably very, very quickly. Similarly,
within China the issue is about disease or infection; particularly, I think
bluetongue is the issue for China. Members can imagine that if there is an
animal disease or infection of some sort in China, it is almost impossible to
control it, so the Chinese will place great scrutiny on the biosecurity issue.
We are well placed for that; the cattle going into China would probably come
from the south of the Pilbara, and Western Australia has a high degree of
freedom from infection and disease in cattle, so we are in a great position.
Demand for exports from Australia has grown very quickly, but
Western Australia is a very small part of that. In 2008, Australia exported 5.5
million tonnes of chilled beef to China, worth $19 million. In 2013 so far, 127
million tonnes has gone to China, worth $422 million; of that, Western
Australia provided only 1.25 million tonnes, or $3.8 million, yet we have the
greatest potential to succeed in the live export market. I have to say that I
am somewhat dismayed that the Leader of the Opposition has come out publicly
against this, and as the Pastoralists and Graziers Association has pointed out —
Mr
M. McGowan : You're verballing again. You can't help
yourself!
Mr
C.J. BARNETT : Does the Leader of the Opposition support the live cattle
industry, or not? I do not think he does.
Several members interjected.
The SPEAKER :
Members!
Mr C.J. BARNETT : I
cannot find the quote, but I think Rob Gillam from the P and G made it very,
very clear —
Mr
M. McGowan : P and G?
Mr
C.J. BARNETT : The Pastoralists and Graziers Association. The Leader of the
Opposition should have heard of it; it is on the other side of Darling Range.
He should go out there one day and have a look at what is out there; there is a
great agricultural industry. Once again, when Western Australia leads the
charge into China, which we have done for the last 25 years, it is the
opposition—this time, the Leader of the Opposition—that is not
interested. This will potentially open up a massive new industry and
opportunity for farmers in Western Australia, and on this side of the house we
support that, while the opposition side immediately takes a negative position.
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