WA agriculture must seize growing trade opportunities, Premier Barnett says

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Image credit: flickr User: Todd Klassy

Western Australian agriculture is on the verge of a new era and is looking at its best opportunities in more than half a century, Premier Colin Barnett said while giving the 2014 Muresk Lecture last Thursday.

Image credit: flickr User: Todd Klassy
Image credit: flickr User: Todd Klassy

He said the growth of Asia and China in particular has prompted a significant change and opportunities in the world’s food trade, which is being constrained by supply rather than demand.

“It’s a chance too good to miss. If we see this as just another ‘good time’ for farming then we will have failed. This is the opportunity to take agriculture to a new level and to provide greater financial security for farmers and to provide benefits for all West Australians,” Mr Barnett said.

“The global shift is fuelled by the same Asia-centric economic expansion that is driving the WA minerals and energy sectors.”

High growth rates in Asia over the past 20 years have seen significant demographic change, with annual incomes in China and India expected to grow at 5.5% each year to 2050 – double the rate expected in Australia.

Adertisement

“With higher incomes, consumers spend more and spend differently.  Staple food commodities will benefit, but the new prize will be in areas of higher quality and greater diversity.  The shift toward a more western diet is already obvious and has been for some time.  I’m just not sure that we have taken full advantage of that,” the Premier said.

The ANZ banking Group has identified several key challenges facing the sector, which included sourcing capital and skilled labour, accessing land and water, closing performance gaps on farms, improving supply chains and targeting premium markets.

The Premier said the Liberal Government was actively working to address these challenges and had already started rolling out a number of agriculture and food initiatives, including a $40 million Water for Food program, $20 million for boosting grains research, $15 million for northern beef futures, and $10 million to help grain growers manage risk by promoting a better flow of information between grain growers, their consultants, suppliers, grain buyers, researchers and suppliers of weather data.

He said governments had a role in establishing relationships with trading partners, broadening the relationships, promoting understanding of each other’s countries and negotiating a free trading environment.

The Premier said the WA agricultural sector would also benefit from more effective branding.

“We can look across the Tasman and marvel at the market success of ‘100% Pure’ and products such as New Zealand lamb and the kiwifruit,” he said.

“At home, Margaret River wine has a world brand.  I think Southern Forest Food has great potential and perhaps Kimberley beef will become a product in its own right.  Smart branding can improve market access and market price.”