Trade

[National Farmers' Federation] Australian farmers are applauding the ‘in-principle’ trade deal between Australia and the United Kingdom announced by prime ministers Scott Morrison and Boris Johnson in London overnight. The proposed deal is the first trade agreement reached by the United Kingdom following its separation from the European Union last year, and will guarantee tariff-free, quota-free access to the UK market for all agricultural products, after phase in periods of up to 15 years.

Australian farmgate production is on track for a record-breaking $66.3 billion year. ABARES’ June quarter 2021 Agriculture Commodities report shows how the sector has navigated the uncertainties and challenges posed by COVID-19 and changes in the international trade landscape.

Australia's alpaca producers are well positioned to develop new export markets following the opening of trade in alpacas with Chile ... "Health certification requirements are the foundation for trade in animals and this agreement means we can continue to build on trade opportunities as we work to revitalise our primary industries."

Global dairy prices continue to trade at elevated levels, despite being “stuck in neutral” for the past three months, as the market slowly returns to normal from the pandemic-led channel distortion, according to the latest Rabobank Global Dairy Quarterly report.

DNA testing Australian honey can reveal where it was produced and its main floral sources, according to research published today by Australia’s national science agency, CSIRO, and partners at the University of Melbourne and Curtin University. The $100 million Australian honey industry exports 4,500 tonnes of honey every year, and could benefit from the findings, which could be used for a honey certification program to confirm the floral composition and provenance of commercial honey.

A combination of global and localised factors is creating a “very tight” global beef cattle market – with strong demand and record high prices in many regions throughout the world – and this is coinciding with a fundamental shift in international market dynamics, Rabobank says in a newly-released report.

Australia is chairing the 25th anniversary meeting of the Codex Committee on Food Import and Export Inspection and Certification Systems (CCFICS), which started yesterday. “This meeting is important for Australia, in particular our agricultural sector, to help shape the science-based international standards underpinning food import and export,” says, Nicola Hinder, DAWE.

Australian Property Journal. Low cattle supply across the country is a major driving force in the current tight conditions in the global beef cattle market. According to the Rabobank Q2 Beef Quarterly report, the beef market is so tight, with growing demand, that localised disruptions, including conditions in Australia, are having a far greater impact on trade and prices than typically seen.

Rabobank. Agri commodity prices have taken a tumble so far in May, dropping by 6% on average, with grains leading losses. US weather has improved permitting quick plantings and that, together with expanding corn acreage expectations, has led to heavy fund profit-taking.

The global meat sector will be holding a Food Systems Dialogue on Wednesday 26 May (AEST) to inform the first-ever United Nations Food Systems Summit which will take place in New York in September. The inaugural Food Systems Summit is drawing on the input of global experts to identify sustainable solutions for the future of food.

"The NFF values the close relationship we have with our counterparts in the UK National Farmers Union," President Fiona Simson said. "The NFF was warmly welcomed to the UK in 2019 by NFU President Minette Batters and despite the distance and geographical differences our farmers share many of the same issues and challenges as our UK peers."

"Now, more than ever, Australia needs to look further west and seriously consider the expanding opportunities presented by its allies in the Middle East. There is an abundance of opportunity not only for Australian exporters but also for strategic investment in sectors such as Australian infrastructure which will greatly assist the recovery of the Australian economy with no strings attached," AACCI President and National Chairman, James Harb.

Agribusiness Elders, reporting a strong lift in sales and profit for the half year to March, is upbeat on the rest of the year with improved winter cropping conditions and good cattle prices. Sales at Elders were up 22% to $1.1 billion and statutory profit was 31% higher at $68.2 million.

GrainCorp, releasing its half year results, sees high global demand for Australian grain and oilseeds. In the six months to the end of March, underlying EBITDA from continuing operations was $140 million, up from $105 million.

Australia produces 80% of the wool used to manufacture the world’s woollen clothing and 80% of such wool is sent to China for processing and manufacturing. In recent times, our trading relationship with China has deteriorated and there is now the possibility that China may cease importing Australian wool.

The Hon Keith Pitt MP, Minister for Resources, Water and Northern Australia and Mr Phillip Thompson OAM, MP, Member for Herbert, Joint Media Relase. The Coalition Government is investing $20 million in a Global Resources Strategy which will help diversify exports and find new markets for Australia’s resources and technology. Minister for Resources, Water and Northern Australia Keith Pitt launched the new global strategy in Townsville with Member for Herbert, Phillip Thompson. Minister Pitt said it will help to strengthen Australian resources exports and promote Australia as a reliable and responsible supplier to the world.

Agricultural commodity prices continue to perform well for Australian producers with cattle prices the most compelling after the benchmark Eastern Young Cattle Indicator (EYCI) surpassed a record 900c/kg in April. The NAB Rural Commodities Wrap, released today, reports trends in global grain markets point to encouraging news for Australian grain growers, while wool prices continue their upward trend.

The results for the 2021 London Wine Competition were announced earlier this month and the prestigious Wine of the Year award went to Lévrier Wines’ Anubis Cabernet Sauvignon. The competition, in its 4th year, is unique in that each wine is judged on quality, value and package. The 2021 edition saw entries from 36 countries. Congratulations to Jo Irvine for taking top spot in the whole competition.

Any momentum Weipa had last year to normalise the community appears to have evaporated as new Rio Tinto GM Michelle Elvy dismissed the matter last week. Speaking at Rio Tinto Weipa’s first community forum of 2021, Ms Elvy deflected the only question regarding normalisation.

Despite the global economic shocks like those produced by the COVID-19 pandemic, agricultural sectors and economies overall are better off when exposed to international trade, the latest ABARES research paper shows. The research report, Understanding effects of supply disruptions on globally and locally focused economies, examines the effects of exposure to the global market on supply chains, and the risks and shocks of this exposure.