❓ Hon. Anthony Fels questions the Minister for Agriculture and Food regarding the WA government's stance on GM crops, given reports suggesting limited price premiums for non-GM grains. The Minister defends the moratorium, citing strong demand and premium prices for WA's non-GM canola.
AnsweredQoN 208Legislative Council
QuestionView source ↗
NON-GENETICALLY MODIFIED GRAINS
In a recent Australian Bureau of Agricultural and Resource Economics report entitled “GM Grains in Australia - Identity Preservation” it is noted that Foster, Berry and Hogan concluded that there was little evidence of widespread price premiums for non-genetically modified grains in world markets. A more recent analysis by Foster and French also found little convincing evidence of widespread price premiums for non-GM canola. Given that the minister has previously stated that price premiums for GM-free crops have been a factor in the government’s decision to maintain a moratorium on GM crops, will the minister now recommend that the government review its current position? Hon KIM CHANCE
In a recent Australian Bureau of Agricultural and Resource Economics report entitled “GM Grains in Australia - Identity Preservation” it is noted that Foster, Berry and Hogan concluded that there was little evidence of widespread price premiums for non-genetically modified grains in world markets. A more recent analysis by Foster and French also found little convincing evidence of widespread price premiums for non-GM canola. Given that the minister has previously stated that price premiums for GM-free crops have been a factor in the government’s decision to maintain a moratorium on GM crops, will the minister now recommend that the government review its current position? Hon KIM CHANCE
AnswerView source ↗
I thank Hon Anthony Fels for the opportunity to answer this question. It provides me with the opportunity to highlight the fact that market demand for non-GM canola has been particularly strong over the past couple of years. The Department of Agriculture and Food closely monitors international canola markets. Prices for Western Australian canola delivered to Fremantle have exceeded Canadian prices since early 2005. In the past, Canadian prices were generally well above Western Australian prices. This reversal coincided with large sales of canola to the European Union - 228 000 tonnes in 2005-06 - for conversion into biodiesel, with Canadian genetically modified canola prohibited in this market. In 2006-07 most of the exports of Western Australian canola have gone to Japan, with only negligible amounts to Europe, but the premium over Canadian canola continued to increase to around $A100 per tonne late last year. This has since dropped back to around $A50 per tonne in recent weeks. This answer was written on 22 March this year. I have no doubt that Western Australia’s ability to supply non-GM canola is a major contributing factor for the premium prices that are being obtained for Western Australian canola. I am aware that ABARE’s recent study reported little evidence of widespread premiums for non-GM canola. All I can say is that the findings seem to ignore the experience that we have had in Western Australia, with significant price premiums having been obtained for non-GM canola. Our experience has been different from that noted by ABARE.
Hon KIM CHANCE replied: I thank Hon Anthony Fels for the opportunity to answer this question. It provides me with the opportunity to highlight the fact that market demand for non-GM canola has been particularly strong over the past couple of years. The Department of Agriculture and Food closely monitors international canola markets. Prices for Western Australian canola delivered to Fremantle have exceeded Canadian prices since early 2005. In the past, Canadian prices were generally well above Western Australian prices. This reversal coincided with large sales of canola to the European Union - 228 000 tonnes in 2005-06 - for conversion into biodiesel, with Canadian genetically modified canola prohibited in this market. In 2006-07 most of the exports of Western Australian canola have gone to Japan, with only negligible amounts to Europe, but the premium over Canadian canola continued to increase to around $A100 per tonne late last year. This has since dropped back to around $A50 per tonne in recent weeks. This answer was written on 22 March this year. I have no doubt that Western Australia’s ability to supply non-GM canola is a major contributing factor for the premium prices that are being obtained for Western Australian canola. I am aware that ABARE’s recent study reported little evidence of widespread premiums for non-GM canola. All I can say is that the findings seem to ignore the experience that we have had in Western Australia, with significant price premiums having been obtained for non-GM canola. Our experience has been different from that noted by ABARE.
I thank Hon Anthony Fels for the opportunity to answer this question. It provides me with the opportunity to highlight the fact that market demand for non-GM canola has been particularly strong over the past couple of years. The Department of Agriculture and Food closely monitors international canola markets. Prices for Western Australian canola delivered to Fremantle have exceeded Canadian prices since early 2005. In the past, Canadian prices were generally well above Western Australian prices. This reversal coincided with large sales of canola to the European Union - 228 000 tonnes in 2005-06 - for conversion into biodiesel, with Canadian genetically modified canola prohibited in this market. In 2006-07 most of the exports of Western Australian canola have gone to Japan, with only negligible amounts to Europe, but the premium over Canadian canola continued to increase to around $A100 per tonne late last year. This has since dropped back to around $A50 per tonne in recent weeks. This answer was written on 22 March this year. I have no doubt that Western Australia’s ability to supply non-GM canola is a major contributing factor for the premium prices that are being obtained for Western Australian canola. I am aware that ABARE’s recent study reported little evidence of widespread premiums for non-GM canola. All I can say is that the findings seem to ignore the experience that we have had in Western Australia, with significant price premiums having been obtained for non-GM canola. Our experience has been different from that noted by ABARE.
Hon KIM CHANCE replied: I thank Hon Anthony Fels for the opportunity to answer this question. It provides me with the opportunity to highlight the fact that market demand for non-GM canola has been particularly strong over the past couple of years. The Department of Agriculture and Food closely monitors international canola markets. Prices for Western Australian canola delivered to Fremantle have exceeded Canadian prices since early 2005. In the past, Canadian prices were generally well above Western Australian prices. This reversal coincided with large sales of canola to the European Union - 228 000 tonnes in 2005-06 - for conversion into biodiesel, with Canadian genetically modified canola prohibited in this market. In 2006-07 most of the exports of Western Australian canola have gone to Japan, with only negligible amounts to Europe, but the premium over Canadian canola continued to increase to around $A100 per tonne late last year. This has since dropped back to around $A50 per tonne in recent weeks. This answer was written on 22 March this year. I have no doubt that Western Australia’s ability to supply non-GM canola is a major contributing factor for the premium prices that are being obtained for Western Australian canola. I am aware that ABARE’s recent study reported little evidence of widespread premiums for non-GM canola. All I can say is that the findings seem to ignore the experience that we have had in Western Australia, with significant price premiums having been obtained for non-GM canola. Our experience has been different from that noted by ABARE.
I thank Hon Anthony Fels for the opportunity to answer this question. It provides me with the opportunity to highlight the fact that market demand for non-GM canola has been particularly strong over the past couple of years. The Department of Agriculture and Food closely monitors international canola markets. Prices for Western Australian canola delivered to Fremantle have exceeded Canadian prices since early 2005. In the past, Canadian prices were generally well above Western Australian prices. This reversal coincided with large sales of canola to the European Union - 228 000 tonnes in 2005-06 - for conversion into biodiesel, with Canadian genetically modified canola prohibited in this market. In 2006-07 most of the exports of Western Australian canola have gone to Japan, with only negligible amounts to Europe, but the premium over Canadian canola continued to increase to around $A100 per tonne late last year. This has since dropped back to around $A50 per tonne in recent weeks. This answer was written on 22 March this year. I have no doubt that Western Australia’s ability to supply non-GM canola is a major contributing factor for the premium prices that are being obtained for Western Australian canola. I am aware that ABARE’s recent study reported little evidence of widespread premiums for non-GM canola. All I can say is that the findings seem to ignore the experience that we have had in Western Australia, with significant price premiums having been obtained for non-GM canola. Our experience has been different from that noted by ABARE.
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