European intransigence on agricultural subsidies could thwart any attempt by the federal government to extract concessions on behalf of the sheep meat industry at the current round of World Trade Organisation negotiations in Geneva, Switzerland, particula
European intransigence on agricultural subsidies could thwart any attempt by the federal government to extract concessions on behalf of the sheep meat industry at the current round of World Trade Organisation negotiations in Geneva, Switzerland, particularly with regard to market access.
Sheep Meat Council of Australia president Ian Feldtmann said if the EU’s quota for sheep meat from Australia was expanded by 20 per cent of current EU domestic consumption, farmers in this country would gain $60 million a year.
“As one of the world’s biggest sheep meat producers and exporters, Australia is well placed to meet EU demand for high quality lamb and mutton,” he said.
“We believe that Australian lamb and mutton is the best in the world, but competitors like New Zealand have 12 times our market access into Europe, despite the global exports of both countries being similar.
“Even Argentina has a larger EU quota than Australia, despite their sheep meat production being just 8 per cent of Australia’s.”
Albany Chamber of Commerce and Industry CEO Jo Hummerston said the sheep meat industry was crucial to Albany’s regional economy with Fletcher International Exports employing 500 local people.
“The positive flow-on effects of the sheep meat industry to other sectors of the Albany economy are immense,” she said.
“Increased access of Aussie lamb and mutton into European markets will also help to ensure the future prosperity of smaller nearby communities, such as Mount Barker, Denmark, Kendenup and Narrikup.”
Mrs Hummerston said a large proportion of every dollar earned by sheep meat workers was spent in the supermarkets, pharmacies, cafes, cinemas, clubs and retail shops of Albany and its neighbouring towns.
“The Great Southern Regional Saleyards and the district’s farmers are also heavily dependent upon the future success of Australia’s sheep meat industry,” she said.
“Greater EU market access for Aussie lamb and mutton will mean more jobs for the youth of Albany and its surrounding districts.”
Fletcher International Exports is Australia’s largest and most integrated sheep meat processor and exporter and is owned and operated by Roger Fletcher and his family.
The company has two abattoirs, one based near Albany while the other is based in Dubbo, New South Wales. Both plants have a total processing capacity of more than 90,000 sheep and lambs per week.
The company employs more than 1,000 staff and exports to more than 70 countries.
In 2005, the sheep meat industry generated $3 billion for the Australian economy, including $1 billion in export revenue.
Last month, Rabobank state manager for Western Australia, Crawford Taylor, said confidence was weak among all rural industry sectors.
“After improving last quarter, sentiment among sheep producers declined as a result of the volatility in wool prices and falls in prime lamb prices,” he said in reference to Rabobank’s Rural Confidence survey for the last quarter.
Of the farmers expecting the agricultural economy to worsen in the next 12 months, 62 per cent said higher input costs were a major concern compared with 50 per cent last quarter.
