Walcha Mayor Eric Noakes and Namoi Unlimited comment on China’s future agricultural policy

Acting ABARES Executive Director, Peter Gooday, said a clear understanding of the policy environment would help Australia’s agriculture industry to make the most of opportunities in China.

“China is one of the world’s great agriculture producers, importers and exporters and a valuable trading partner for Australia,” Mr Gooday said. 

“What happens in China can affect global agricultural markets and this can impact on Australian farmers and exporters in different ways.

“In recent years, China’s agricultural policy has been changing and the emphasis is now on supply-side structural reform and revitalisation of rural areas.

“These changes will likely be positive for Australian beef and dairy exports, but could have mixed implications for grains."

The seven shires involved in the local joint organisation of councils Namoi Unlimited began an international engagement project with China in 2017 that involved a trip to the Ningbo province by council representatives. Representatives from China subsequently toured the Namoi region to see what was on offer.

"We have known for some time that China is working hard to boost domestic livestock numbers and grain farming through rural revitalisation, however, it's clear the demand for quality products will remain strong," said Walcha Mayor Eric Noakes. 

"It’s not just food that’s important, but also fibre.  As it stands, wool is one of the top commodities exported to China and our farms produce the nation’s finest wool. The Namoi region is also home to innovation and experience, we are perfectly positioned to export our world-class products, services and knowledge in fibre, genetics and niche crops."

China has been Australia’s top agricultural export market since 2010 - 11 and round 25 per cent, or $11.8 billion, of Australian agricultural exports were destined for China in 2017–18. Wool ($3.3b), barley ($1.5b) and beef ($1.0b) were the top three commodities exported to China

Chair of Namoi Unlimited and mayor of Gunnedah, Jamie Chaffey said the Namoi region is considered a premier agricultural region in Australia. 

"As China’s food demand continues to grow and consumption shifts to western-style diets, we expect to see increased demand for beef, sheep and goat meat, along with speciality grains, milk, dairy, fruit and vegetables," Mr Chaffey said.

"Namoi Unlimited will continue to build strategic relationships into China as part of its international engagement strategy.  Namoi Unlimited believes China’s changing agricultural landscape presents unique opportunities for agriculture and producers across Walcha Council, Tamworth Regional Council, Liverpool Plains Shire Council, Gunnedah Shire Council and Gwydir Shire."

Peter Gooday said improved food safety standards will see an increased demand for meat from countries like Australia, where high food safety standards are already in place. 

“Policies to increase beef production and beef and dairy genetics could support increased demand for live feeder cattle, bovine semen and breeder cows," Mr Gooday said.

“China is also aiming to increase milk production by 6 per cent and dairy product production by 28 per cent by 2020, which could support increased imports of milk powder.

“For grains, their focus is on improving domestic grain production and the outlook for import demand is unclear at this stage.”

Mr Chaffey said navigating export, international demand, logistics, labelling and packaging can be complicated and  Namoi Unlimited had been advocating for funding for a regional export hub.

"A regional Export Hub with resources would help producers navigate export and potential markets," he said. 

"We will continue to call for support to grow exports from agriculture in the region. China has been Australia’s top agricultural market since 2010-11 however that doesn’t mean we should ignore emerging markets and other valuable trade partners. 

"In the coming months, Namoi Unlimited will look to build on its existing International Engagement Project attempting to establish relationships with other potential export markets."