Food & Agribusiness Talking Points | 13/09/2017

In today’s talking points: Agriculture powering Australia’s growth; Corn surplus to be help with animal production expansion; Australian citrus exports show increase; Peru set to export fresh seafood to China

Agriculture powering Australia’s growth

The latest national accounts figures from the Australian Bureau of Statistics (ABS) show that agriculture is the largest contributor to Australia’s gross domestic product and the fastest growing sector in Australia. Agriculture contributed 0.5 percentage points to the 1.9 per cent growth that Australia experienced in the past year, the sector itself grew by 23 per cent which was the largest of any of Australia’s sectors. Agriculture heavily impacted Australia’s current account by providing AU$50 billion in exports, accounting for 14 per cent of Australia’s total goods and services exports. Trade agreements, such as ChAFTA, signed in the last few years have been cited as one of the reasons for the growth of the sector.

Read more at: Farming Ahead

Corn surplus to be help with animal production expansion

China has a huge surplus in corn after years of encouraging production. The Agricultural Ministry now seeks to “walk the grain off the farm” by expanding animal production, particularly in the grain-producing north-eastern provinces. This plan also helps with moving hog production away from the heavier populated east coast where environmental regulations are becoming stricter. Subsidies have also been provided to convert existing corn stocks into other by-products such as starch and ethanol. The four north-eastern provinces of Heilongjiang, Liaoning, Jilin and Inner Mongolia account for a quarter of China’s grain production but only a tiny portion of meat and livestock. The expansion of animal production in the region will create a dairy supply base in North-eastern China.

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Australian citrus exports show increase

Australian citrus exports to Asian countries have lifted following a drop in the market earlier this year. The total value of citrus exports increased by 41 per cent to AU$154.3 million for June and July this year when compared to the same time last year. China, Singapore and Indonesia had the largest demand for citrus with Singapore in particular showing a greater demand for oranges with the market growing to AU$18 million from AU$12.9 million in 2014. This overall growth in Citrus exports is further reiterated by the fact that demand for naval oranges continue to outstrip supply according to the Citrus Australia Chief Executive Judith Damiani.

Read more at: The Weekly Times

Peru set to export fresh seafood to China

Peru and China are set to sign a protocol during the Peruvian Minister of Production Pedro Olaechea’s visit to Shanghai on September 16. This protocol would allow Peru to export its live seafood to China and China to have access to the Peruvian apple market. Currently, China receives frozen seafood from Peru but with China Eastern opening a cargo flight to Peru, this allows fresh seafood to be sent to China. This move is a joint step towards upgrading the free trade agreement between the two countries, signed in 2009. China is Peru’s biggest trading partner with bilateral trade reaching around US$17 billion last year.

Read more at: China Daily