Indonesia

Indonesia boost for Australian exporters

Indonesia-Australia Comprehensive Economic Partnership Agreement will mean reduced tariffs and greater opportunities

Australian farmers will have tariffs reduced and be able to export more agricultural products including citrus to Indonesia, after the coalition government signed the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

It gives producers and exporters the opportunity to grow their A$3.5bn share of the Indonesian market - indeed, Indonesia is Australi's fourth-largest agricultural export destination.

Minister for Agriculture and Water Resources David Littleproud said the coalition government continued to deliver farmers better access to more markets.

“This agreement improve access for industries which trade most to Indonesia, including our livestock, beef and sheepmeat, grains, sugar, dairy, citrus and horticulture,” he said.

“Oranges and limes will get increased duty-free access while dairy, mandarins, potatoes and carrots will get reduced tariffs," he confirmed.

The conclusion of substantive negotiation of IA-CEPA was signed in Indonesia by Australian prime minister Scott Morrison.

Key agricultural outcomes of the IA-CEPA include immediate tariff cuts on mandarins from 25 per cent to 10 per cent for 7,500 tonnes per year, down to 0 per cent after 20 years for an unlimited volume, and duty free access for 10,000 tonnes of oranges per year, increasing 5 per cent each year, as well as duty free access for 5,000 tonnes of lemons and limes per year, increasing 2.5 per cent each year.

The agreement also means immediate tariff cuts for potatoes from 25 per cent to 10 per cent for 10,000 tonnes per year; after five years tariff further reduced to 5 per cent for 12,500 tonnes per year, increasing by 2.5 per cent per year, and immediate tariff cuts for carrots from 25 per cent to 10 per cent (from 25 per cent) for 5,000 tonnes per year; down to 0 per cent after 15 years for an unlimited volume.

Minister for Agriculture and Water Resources MEDIA RELEASE


The Hon. David Littleproud MP

Friday, 31 August 2018

Indonesia trade boost for Australian farmers

• Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) signed this week
• Improves market access for Australian livestock, beef and sheepmeat, grains, sugar, dairy, citrus and horticulture
• Allows farmers to grow their $3.5 billion share of the Indonesian market

Australian farmers will have tariffs reduced and be able to export more livestock, beef and sheep meat, grains, sugar, dairy, citrus and horticulture produce to Indonesia after the Coalition Government today signed the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).


Minister for Agriculture and Water Resources David Littleproud said the Coalition Government continued to deliver farmers better access to more markets.


“This agreement improve access for industries which trade most to Indonesia, including our livestock, beef and sheepmeat, grains, sugar, dairy, citrus and horticulture,” Minister Littleproud said.
“This agreement delivers duty free access for half a million tonnes of feed grains per year.
“Our wheat industry exported $1.3 billion worth of produce to Indonesia in 2016-17 and this will grow that further.
”The agreement will increase duty free access for live male cattle by 4 per cent a year to 700,000 head annually.
“Tariffs on most lines of beef and sheepmeat will be reduced from 5 to 0 per cent immediately, with all remaining tariffs to be removed after five years. This will help us build on the $261 million that these exports were worth to Australia in 2016-17.
“Our grain farmers will get guaranteed duty free access for 500,000 tonnes of wheat, barely and sorghum grains per year increasing at 5% per year to 775,664 tonnes.
“Tariffs on our sugar cane will drop from as high as 12 per cent to 5 per cent.
“Oranges and limes will get increased duty-free access while dairy, mandarins, potatoes and carrots will get reduced tariffs.”
Minister Littleproud thanked former trade Minister Steve Ciobo for his hard work on this agreement, and also thanked the trade division of the Australian Department of Agriculture.
The conclusion of substantive negotiation of IA-CEPA was signed today in Indonesia by Australian Prime Minister, Scott Morrison.

Background facts:
• Indonesia is our fourth most important agriculture market
* Agriculture makes up almost half of our total exports to Indonesia - worth $3.5 billion to our economy.
* Australia’s top agriculture exports in 2016-17 to Indonesia include wheat ($1.3 billion), sugar ($541 million) and live feeder/slaughter cattle ($620 million).

Key agricultural outcomes from the IA-CEPA include:
More than 99% of Australian goods exports to Indonesia will enter duty free or under significantly improved and preferential arrangements.
• Duty free access for 575,000 head of live male cattle per year, growing at 4% per year to 700,000 at year five of the agreement.
• Remaining tariffs on all Australian exports of frozen beef and sheepmeat into Indonesia reduced to 2.5% immediately, and eliminated after 5 years.
• Guaranteed duty free access for 500,000 tonnes of feed grains per year (wheat, barley, sorghum), increasing at 5% per year to 775,664 tonnes.
• Reducing the tariff on Australian sugar cane from 8-12 % to 5%.
• Immediate elimination of 5% tariff for milk and cream, concentrated or containing added sugar or other sweetening matter.
• Immediate elimination of 5% tariff for grated or powdered cheese, of all kinds.
• Immediate tariff cut mandarins from 25% to 10% for 7,500 tonnes per year; down to 0% after 20 years for an unlimited volume.
• Duty free access for 10,000 tonnes of oranges per year, increasing 5% each year.
• Duty free access for 5,000 tonnes of lemons and limes per year, increasing 2.5% each year.
• Immediate tariff cuts for potatoes from 25% to 10% for 10,000 tonnes per year; after five years tariff further reduced to 5% for 12,500 tonnes per year, increasing by 2.5% per year.
• Immediate tariff cuts for carrots from 25% to 10% (from 25%) for 5,000 tonnes per year; down to 0% after 15 years for an unlimited volume.
• Progressive elimination of 5% tariff on Australian honey after 15 years.
Media Contact:
Les White, 0409 805 122

Australia and Victoria seed potatoes gain market access to Indonesia

Certified seed potatoes from South Australia and Victoria have been approved for market access to our nearest neighbour, Indonesia, at recent bilateral trade discussions held in Melbourne.

Market access to Indonesia enables certified seed potato growers in South Australia and Victoria to supply the Indonesian market with potentially 85,000 tonnes of certified seed potatoes with a market value of $AUD110m annually.

The agreement signed by Australia and Indonesia is the result of a near decade long collaboration between industry groups (ViCSPA, Potatoes South Australia), certified seed potato growers, exporters, state and federal governments and Indonesian agencies. The result is a win for certified seed potato growers and is a demonstration of what can be achieved when strong relationships and collaboration is built between industry and government, at all levels.

The Seed Certification Scheme operated by ViCSPA provides complete traceability and documented evidence which supports the high health status of certified seed potatoes produced in South Australia and Victoria. The ViCSPA Seed Certification Scheme is on par with the world’s best and the ViCSPA Board has invested heavily in developing robust database management systems which underpin the certification scheme to trace all seed plots submitted for certification.

The robustness of the ViCSPA seed certification scheme has been integral to this pursuit and subsequent success of new markets such as Indonesia. The ViCSPA scheme has highly trained certification officers for crop inspections and uses modern crop monitoring systems to certify seed potato crops. Indonesian officials audited both the ViCSPA seed scheme and the seed production areas. It is gratifying that they were impressed with the comprehensiveness and professionalism of the ViCSPA Seed Certification Scheme and the quality of the seed potatoes that are the result of the strict protocols adhered to.

The Chair of ViCSPA, Kay Spierings said, “ViCSPA is delighted that as an independent, industry based organisation, ViCSPA continues to be recognised as a leader in seed potato certification. The export potential of the Indonesian market is significant and we look forward continuing our strong collaborative relationships to build further opportunities for our growers.” Dr Nigel Crump, General Manager, ViCSPA said, “On the back of the recent success, ViCSPA will continue to strive for excellence in our seed certification program to maintain existing markets and pursue new markets. Recently, with a grant from Agriculture Victoria, we have developed a geospatial software tool that has been integrated with the existing seed potato certification database”.

“Importantly, the collection of geospatial data that relates to the field used to produce seed potato crops enhances the evidence of data that is required to support market access and subsequent trade”, he added.

For ViCSPA, the long history of soil sampling and laboratory testing all fields used to produce certified seed for pests and disease such as Potato Cyst Nematode (PCN) and the ongoing leaf testing program for monitoring levels of Potato Virus Y were critical in securing market access to Indonesia. Surveillance of this type provides strong evidence to support claims made on the supply of high health certified seed potatoes.

Robbie Davis, CEO Potatoes South Australia stated that the industry was thrilled at this long-awaited protocol and that it provided a valuable new market. She said, “Of critical significance, the high quality of seed potatoes and professional approach by seed potato growers in South Australia and Victoria were major contributing factors in securing the trade. Strong collaboration has been key.”

It is envisaged that there will be an ongoing exchange of knowledge and capacity building between Australia and Indonesia and plans are already underway for ViCSPA to run pest and disease workshops in Indonesia later this year. It is important that the Indonesian and Australian potato industries work together into the future to continue to foster ‘business-to-business’ trade and improve potato production in both countries.

For for information:
Dr Nigel Crump (ViCSPA)
Email: nigel.crump@vicspa.org.au
Tel: +44 3 5962 0000


Publication date: 3/7/2018

Indonesia: Mangoes & dragon fruit to enter Australian market

During the 21st meeting of the Working Group on Agriculture, Food and Forestry Cooperation (WGAFFC) between Australia and Indonesia - held in Melbourne from Feb. 14 to 15 - it was agreed that Indonesia will soon start exporting mangoes and dragon fruit to Australia.

Acording to an article by thejakartapost.com, the head of the Indonesian Agriculture Ministry’s Agriculture Quarantine Agency, Banun Harpini, said Australia had agreed to irradiate the fruit to assure the products would meet Australian standards.

“We will start exporting mangoes of the upcoming harvest season to Australia in October,” said Banun. Exports of dragon fruit could start in the middle of this year.

Meanwhile, Louise Van Meurs of Australia’s Agricultural and Water Resources Department demanded that Indonesia accept imports of seed potatoes from South Australia and Victoria, which Indonesia agreed to during this meeting.

However, Australian dragon fruit growers struggling to stay afloat have criticised the Federal Government for what they said is complete ignorance of the negative fallout from trade deals.

Marcus Karlsson, a farmer in the Northern Territory and his family were the first in the country to start producing dragon fruits. He labelled this season as the worst he ever experienced. A trade protocol signed with Vietnam last year allowed dragon fruit to be imported, in direct competition with local growers. "It 's dragged the price down."

He said other farmers are also suffering, including nearby grower James Vong Nguyen from Harvest Hill Orchard at Humpty Doo. He purchased his property only three years ago and was now desperately worried about how he and his wife will make money. "We lost about $80-100,000 in the last six months," Mr Vong Nguyen said.

Publication date: 2/16/2018

More than just chat—Australia sprouts new market for seed potatoes

Seed potato producers in Victoria and South Australia have market access to Indonesia.
• The protocol was signed at a bilateral forum in Melbourne yesterday.
• Only Western Australian seed potatoes previously had access, and Victoria and South Australia are major seed potato producers.

More than 300 seed potato farmers across South Australia and Victoria will be celebrating after today’s breakthrough in securing new market access to Indonesia.

Minister for Agriculture and Water Resources, David Littleproud, said delivering this market access would provide opportunities for seed potato farmers to now compete in premium markets with the best produce the world has to offer.

“Agricultural trade is a priority for the Coalition Government and we are delivering, not just sitting around like couch potatoes on this issue,” Minister Littleproud said.

“The export protocol has been on the boil for a while and today we finally got it over the line - this will take an industry with a current production value of $520.3 million, to new heights.

“Today’s signing paves the way for trade in seed potatoes from Victoria and South Australia to commence as soon as possible, whenever farmers are ready.

“This is a fantastic result for farmers in these two states—as major seed potato producers—and builds on current seed potato access for Western Australia.

“Australia and Indonesia have a strong bilateral partnership, with two-way trade worth $4.28 billion in 2016-17 in agriculture alone.

“Australia is a trading nation and we continue to support our farmers as they sell our premium produce for premium prices to overseas markets.”

The Coalition Government has secured free-trade agreements with three significant export markets—Japan, Korea and China—and just signed the Peru-Australia Free Trade Agreement and recently concluded the Trans-Pacific Partnership Agreement.

• Through the Agricultural Competitiveness White Paper, we are investing $30.8 million to break down technical barriers to trade, and appointed five new agricultural counsellors in key small markets.
• In the agriculture portfolio since January 2016, we have had 64 key market access gains or restorations, along with 57 key market access improvements or actions to maintain market access.
Megan Dempsey
Assistant Media Adviser
Office of the Hon. David Littleproud MP
Minister for Agriculture and Water Resources
P 02 6277 7630 M: 0491 222 306 E: megan.dempsey@agriculture.gov.au

Horticulture production rises remain on track, according to quarterly figures

Figures released for the December quarter have confirmed that the gross value of horticultural production remains on track to pass $10billion dollars in 2018.

The Agricultural commodities report released by ABARES has estimated production across the major fruit and vegetable categories will continue its upward trend in terms of value increasing from $9.99billion to nearly $10.3billion in the 2017-18 financial year. Both vegetables and fruit and nuts are on track to be worth $4.1billion each, while table and dried grapes are set to increase from $364million to $374million.

This comes on the back of an increase in production which is forecast across the major categories. Potatoes are expected to rise from 1,295 kilotonnes (kt) to 1,385 kt, and onions are set to rise by 22 kt this financial year, and tomatoes 11 kt. In terms of fruit, bananas will rise by 28 kt according to the ABARES data, and oranges will be up from 395 to 418 kt. However, some produce lines are tipped to reduce slightly, including apples which will fall by just 2 kt, while carrot production will decrease by 4 kt.

Horticulture exports are tipped for another major rise in value, jumping from $2.5billion to $3.1billion. According to ABARES fruit exports should increase in value from $1billion in 2016-17 to more than $1.3billion in 2017-18, while tree nut exports look set for a rise of $310million. Vegetable exports will also rise, but by a much smaller margin of just $10million.

The increase in exports will continue to be led by the Chinese market, with the value continuing to increase from $260million to $341million in the next financial year. Fruit exports into the country are expected to again rise dramatically from $187million to $258million. Tree nuts and vegetables will also have slight increases in value.

The value of exports into Indonesia looks set to fall in this financial year by just over $13million. It is a similar story for the United States, with a significant drop in the value of tree nuts from $82.1million to $43.3million leading to an overall decrease of Australian horticultural produce into the country. However strong exports across all three categories (fruit, nuts and vegetables) means the value of exports to is Japan expected to rise from $178million $212million.

The full report can be viewed here

Publication date: 12/12/2017
Author: Matthew Russell
Copyright: www.freshplaza.com

Aus requests lower duties on tropical fruit and vegetables to Indonesia

Australia-Indoesia free trade talks enter final stage

Prime Minister Malcolm Turnbull is expected to meet Indonesian President Joko Widodo in coming days as the two countries hammer out the final details of the first free trade deal Indonesia has signed in almost a decade.

The 10th – and both countries hope final – round of negotiations will be held in Jakarta next week with Australia's chief trade negotiator Trudy Witbreuk stressing there was "no question about the level of commitment in trying to conclude this economic partnership agreement".

However Indonesia's chief negotiator Deddy Saleh has warned Indonesia, which is riding a wave of economic nationalism with protectionist resources policies and national targets for self sufficiency in some foods, will not be able to meet all of Australia's requests.

Mr Deddy said Australia had requested that Indonesia reduce import duties on meat, sugar, tropical fruit, vegetables, machinery and electrical goods. "Indonesia can give some but Indonesia is having some difficulties to give all requested by Australia."

Mr Deddy also pointed out the bilateral goods trade was going backwards, shrinking from $US10.6 billions in 2014 to $US8.4 billions last year. He said Indonesia had a trade deficit with Australia of about $2 billion.

Source: smh.com.au via www.freshplaza.com 

Publication date: 11/9/2017

NSW berry company capitalizes on Indonesian demand

Premium fresh fruit is what seems to be in demand from Indonesia, especially that which has been grown for the Indonesian palate.

Andrew Bell, director of Mountain Blue Farms in northern New South Wales, says the successful family-owned blueberry operation had been looking for export opportunities to expand beyond the domestic market, and eventually settled on Indonesia.

The country has a population of more than 255 million, making it a potentially important market.

"Indonesia has a significant population, right on our doorstep," says Bell, whose company also runs its own breeding operation. "They also have a rapidly growing middle class who are a food and health conscious, and there happened to be existing protocols for getting blueberries into Indonesia."

He says the typical agribusiness approach into Indonesia had either been about bulk supply (wheat, sugar), or it had entailed lower grade fruit and vegetables for specific markets.

"We saw a different market," says Bell. "We wanted to be in the quality supermarkets that are being built for the middle classes. We have a premium product and that's what we wanted to sell in Indonesia. We didn't want to compromise on what we do."

Read more at afr.com

Source: www.freshplaza.com

Publication date: 7/12/2017

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