***"I don't think the Australian Government has given the Indonesians any 
reason to be cooperative with us when we did ban the export of cattle to 
Indonesia, when we were telling them behind the scenes that we were going to 
continue to work with them," he said.

Indonesian import ban distresses Aussie growers

By Eleanor Bell
Posted February 17, 2012 20:54:49 

Fresh produce farmers are bracing for another blow as Indonesia clamps down on 
Australian food exports.

Indonesia became a free trade partner with Australia earlier this year, but 
next month will restrict fresh produce from entering most of its main ports. 

It claims concerns over quarantine and illegal imports are driving the 
introduction of stricter regulations.

Australian fruit and vegetable exporters say it is already taking a toll on 
profits.

Liberal Senator for Tasmania Richard Colbeck says it is another problem they do 
not need.

"[There is] one carrot producer who'll lose up to 75 per cent of his Indonesian 
market," he said. 

"The onion producers that I've been talking to are saying that the ports that 
are available aren't any good for their product, and not only are they 
distressed about it but their customers are very distressed as well." 

The new regulations will prevent shipping of Australian fruit and vegetables to 
all but four Indonesian ports.

"I'm told that some of the infrastructure there isn't suitable to receive their 
produce. They're very concerned about their cold chain survival," Senator 
Colbeck said.

"There's discussion about having to unpack containers and put their produce 
onto local transport 1,700 kilometres into where the markets are.

"And they're very concerned about the the extra time but also the potential 
damage to produce because they lose their cold chain supply."

The new regulations have not yet come into place. 

Because of that uncertainty, growers in Australia are unsure whether they 
should take the risk of placing their product on ships bound for Indonesia.

"Given that it takes over three weeks to get the product from Australia into 
Indonesia, they're in the situation of having to decide whether to put it on 
the boat or not and they don't know whether or not they will have markets if 
they wait until decisions are announced early in March," Senator Colbeck said.

Domestic challenges



Audio: Fruit and vegie producers face uncertainty over Indonesian export 
market. (PM)


Australia's fresh fruit and vegetable exports to Indonesia are valued at $40 
million a year - a small bite in an industry worth $9 billion annually.

But Marc Soccio, a senior analyst at agribusiness bank Rabobank, says the hit 
comes on top of other challenges.

"For a long time it's been the drought across the Murray-Darling Basin. 
Fortunately obviously that drought's broken in quite a spectacular way," he 
said. 

"But it's come with its own challenges obviously; flooding in certain parts of 
the country up in Queensland. 

"Last year it had quite a significant impact on the Australian vegetable 
growing industry which we've seen certainly in fruit and veg prices."

Importers like Indonesia want specific products - citrus, apples and vegetables 
- so the majority of Australia's fresh produce is grown for the domestic 
market. 

But there are challenges at home too.

"I think it's only been a matter of time until the retailers turn their minds 
to fresh produce," Mr Soccio said.

"Fresh produce is a very key part of their offer and they've been doing quite a 
bit of work in this space for some time, trying to improve their offering.

"There's quite a strong push. Obviously Woolworths has reinvigorated their 
fresh food people campaign and Coles has hit back with their own response and 
on the back of produce deflation anyway, the market is generally over-supplied 
and prices have been on their way down for some time."

The Department of Foreign Affairs and Trade says it is lobbying Indonesian 
officials in a bid to minimise the impact of the proposed regulations.

Senator Colbeck says the Government's handling of the Indonesia export cattle 
ban has strained our trade relationship.

"I don't think the Australian Government has given the Indonesians any reason 
to be cooperative with us when we did ban the export of cattle to Indonesia, 
when we were telling them behind the scenes that we were going to continue to 
work with them," he said.

http://www.abc.net.au/news/2012-02-17/f ... ts/3837020

[Non-text portions of this message have been removed]



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