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Minister Han Changfu meets Canadian counterpart

DATE:2016-11-07       SOURCE:MOA Information Office
 

Minister Han Changfu met with Mr. Lawrence MacAulay, Minister of Agriculture and Agri-Food of Canada, in Beijing on Nov. 3, 2016. The two sides exchanged views on furthering agricultural cooperation between China and Canada.

At the meeting, Minister Han noted that, with the support of leaders of both countries, significant progress has been made in China-Canada agricultural cooperation. The two sides have not only signed the Action Plan for agricultural cooperation but also properly handled the problems on beef and rapeseed trade.
 
Minister Han made the following suggestions for further cooperation.
 
1. Giving full play to the mechanism of China-Canada Joint Committee on Agriculture to promote cooperation in food security, food safety and agro-processing as outlined in the Action Plan in a pragmatic manner.
 
2. Strengthening cooperation in green agriculture to promote sustainable agricultural development. China is willing to establish demonstration areas for sustainable agriculture with Canada.
 
3. Enhancing bio-tech cooperation, conducting cooperation in S&T, including breeding R&D and germplasm exchanges, and communicating related regulatory policies.
 
4. Enriching the bilateral agricultural cooperation through joint projects led by local governments, research institutions and enterprises from both countries.
 

 
Mr. MacAulay said that the Canadian government fully recognizes the significance of the Chinese market for its farming sector and highly values the agricultural cooperation and exchanges with China. Mr. MacAulay agreed with Minister Han and expressed his willingness to deepen the bilateral cooperation in agricultural S&T, green agriculture development, agro-processing, agricultural trade and personnel exchanges to enhance agricultural sustainability and achieve common development for mutual benefit.
 

After the meeting, the two ministers witnessed the signing of MoU on beef cattle cooperation between China Agricultural University and the Canadian Beef Breeds Council.

 


勃林格殷格翰副总裁Stephan Lange采访原稿——Steven McOrist 教授倾情奉献

勃林格殷格翰副总裁Stephan Lange采访原稿——Steven McOrist 教授倾情奉献

2016-11-03 


译文:

我们最近在香港与勃林格殷格翰公司的高级人员-中国动物健康副总裁Stephan Lange和中国业务发展经理Xu Lin进行了会谈。

 

勃林格殷格翰(BI)是全球最大的家族型动保企业,主要产品包括疫苗和药品方面。勃林格在美国、德国及中国都拥有大型的研发实验室,为养猪业提供了新疫苗和其他现代技术产品。勃林格致力于为全球的养猪业带来新技术和创新产品,如PRRSPCV和回肠炎疫苗,它们都在亚洲和全球取得了显著成效。然而勃林格及其他规模较大的跨国动保公司在中国所占的市场份额相当低,仅占总市场份额的10% 2016年,1843家中国动保公司占据90%的市场份额,其中有101家为疫苗公司。

 

当被问及亚洲养猪业的未来趋势时,StephanXu表示中国的产业正在经历一场向大型农场整合的重大转变,其中许多公司现在正从上海和北京等传统密集型地区迁移到中国的中部和北部地区。他们预测,在未来的10年内,世界前十大猪肉生产公司中有8家将位于中国境内,但是中国猪业的快速增长也带来了弊端,农场需要更多专业的以及训练有素的技术经理对操作细节进行管理监督。

 

他们意识到中国乃至亚洲养猪业的需求正从治疗产品转向预防产品,例如疫苗的广泛使用。他们注意到随着疫苗使用量的增加也会带来一些难题,比如疫苗从生产商到使用终端这一过程中存在不同的运输方式。同时也发现由于标准研究及检测工具的限制性,这些新型疫苗的有效性可能会受到影响,比如对照动物实验和血清学实验。

 

他们觉得像勃林格这样的公司,与中国养猪行业从业人员进行互动,交流和沟通是一个非常重要的趋势。他们越来越多地使用数字技术,如微信和其他数字论坛,例如利用pig333.cn平台提供有关动物健康和营养方面的专业数据和信息。勃林格正在对数字基础设施进行重大投资,以保持与养猪业及其从业人员之间的密切联系。目前,中国1,843动物保健企业在销售和绩效方面的数据非常有限,所以新的数字技术可以为行业提供一个更有效的市场研究方法。

 

原文:

We chatted recently in Hong Kong SAR withsenior people in the BoehringerIngelheim Company. We met with Stephan Lange, VicePresident for Animal Health in China and Xu Lin, Business Development Managerfor China.

 

BoehringerIngelheim(BI) is the largest family-ownedmulti-national company operating globally in animal health products, including vaccines and pharmaceuticals. Boehringer has large Research and Development laboratories in the USA, Germany and China, developing new vaccines and other modern technology products for the pig industry. The Boehringer has a strong tradition of bringing new and innovative products with great benefits to the global pig farming industry, such as its PRRS, PCV and ileitis vaccines, many of which are Asian and global success stories.Inside China however, the proportion of the market taken by Boehringerand other large multi-national companies is still quite low, at only around 10 % of the total market share. In 2016, the 90% of the market share is taken up by the total of 1,843 Chinese animal health companies, of which 101 are vaccine companies.

 

When asked about likely future trends for the pig industry in Asia, Stephan and Xu indicated that Boehringer sees the major shifts in the Chinese industry towards consolidation into larger farm enter prises.Many of these companies are now moving away from the traditional pig-denselocations around Shanghai and Beijing, towards locations in central and northern China. They predicted that within 10 years, 8 out of the top 10 pig production companies in the world will be located inside China.This rapid growth in the Chinese pig industry has created its own problems, with a need for management oversight of the operational details by more new andwell-trained technical managers on these farms.

 

They also see shifts in Chinese and Asian pig industry away from the rapeutic products, towards products aimed at prevention,such as more vaccine usage. They do note some on-going problems in this increased usage of vaccines in the Chinese pig industry, in terms of variable methods for delivery of vaccines from the manufacturer to the end usage in pigs.They also note the limited usage of standard research and diagnostic tools inthe Chinese industry, such as controlled animal trials and serology, which mayimpactthe usefulness of these new vaccines.

 

They also see a major trend in the way that companies like Boehringer interact and engage and inform people in the pig industry in China. They increasingly use digital technology such as WeChat andother digital forums, like pig333.cn, to provide strong data and information onanimal health and nutrition. Boehringer is making major investments in digital infrastructure to keep a close and direct connection to the pig industry andits people. There is currently only limited data on the sales and performance of the 1,843 Chinese animal health companies, so the new digital technology can offer people in the Chinese industry a useful method to develop market research. 



来源:Dr Steven McOrist (Pig333译)

 

 

 

81

Milk price surges to highest point in 2 years (4)

Milk price surges to highest point in 2 years

Economists went back to the drawing board to revise up their farmgate milk price forecasts after wholemilk powder prices hit their highest point in just over two years at this morning's GlolbalDairyTrade (GDT) auction.

The GDT price index jumped by 11.4 per cent but the price of whole milk powder - which has the greatest influence over Fonterra's farmgate milk price - shot up by a much stronger than expected 20 per cent to US$3317/tonne.

Westpac revised up its farm gate milk price this season to $5.80 a kg from a previous forecast of $5.30 and ANZ said there were "upside risks" to forecasts into the low $6.00/kg mark.

ANZ said there appeared to be an element of buyers scrambling to meet near-term demand against a backdrop of reduced local supply, which has been curtailed by a wet and colder than normal spring.

"The key question now is whether or not gains can be maintained, especially with the possibility of warmer temperatures seeing improved North Island pasture growth," ANZ said in a commentary.

"Even so, farmers will no doubt welcome the move and it certainly suggests upside risks to milk price forecasts, perhaps into the low NZ$6 mark per kg of milk solids," ANZ said. ASB Bank and Rabobank have predicted a $6.00 milk price, compared with Fonterra's forecast of $5.25/kg.

After several auctions, when prices remained broadly stable, markets seem to have reacted strongly to Fonterra's revised production estimates for the 2016/17 season, Westpac senior economist Anne Boniface said.

In particular, Chinese bidders were notably more active in the latest auction, crowding out buyers from other regions, she said. "This suggests a genuine concern about being left short of stock is helping drive prices higher," she said.

Fonterra has been drawing attention to the poor October milk flows in parts of the upper North Island. The catalyst for the downward revisions to local production has been too much rain during October in key dairying regions including the Waikato, Northland and Bay of Plenty.

Consequently, Fonterra is now expecting to collect seven per cent less milk this season than last.

ASB rural economist Nathan Penny, who has long forecast a $6.00/kg milk price, said the lift in prices on the basis of rapidly falling production was just a matter of time.

"The 'big wet' has also sped up the dairy price correction, meaning we are ahead of where we thought prices would be at this stage of the season," he said. "In fact, prices have both lifted earlier and higher than we anticipated," he said.

As a result, if New Zealand production is indeed as weak as we anticipate, then prices are likely to stabilise at current levels, if not lift further, he said.

"In this respect, we see an increasing probability that this season's milk price lifts above our current $6.00/kg forecast," Penny said. 

Source:http://mobile.nzherald.co.nz/business/news/article.php?c_id=3&objectid=11740593


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Grocery Wars: Alibaba and JD.com Compete Against Supermarkets, Corner Stores

'There will absolutely be a war' as e-commerce rivals seek growth in sales of everyday household and grocery items

(Beijing) — For China's 720 million Internet users, websites run by the country's two biggest e-commerce companies, Alibaba Group and JD.com, have increasingly become the preferred shopping destinations. From trendy clothing and exquisite accessories to household appliances and the latest tech gadgets, a mouse click can get them almost anything.

Now the e-commerce behemoths are going after everyday indispensables — groceries and household items. Over the past few months, both have poured hundreds of millions of yuan into a price war aimed at dragging shoppers away from supermarkets and corner stores. Amazon.com Inc., Wal-Mart Stores Inc. and other online retailing giants are blazing a similar trail in the U.S.

As JD.com and Alibaba Group Holding Ltd. approach their respective ceilings for growth in sales of other goods, groceries will become the next battleground, said Xu Xin, CEO of the venture capital firm Capital Today, which invested in JD.com. Conquering the market for fresh food and other grocery items may eventually enable e-commerce companies to take control of as much as half of China's total market for consumer goods sales as Alibaba Chairman Jack Ma expected, Xu said.

In a 2015 letter to shareholders, Ma predicted that 'over 50% of China's consumption will be conducted online within 10 years.'

To reach that goal, 'there will absolutely be a war between Alibaba and JD.com,' said Cheng Shaoxiong, North China chief for the supermarket division of Tmall, Alibaba's business-to-consumer site. He said online grocery sales are the last frontier for e-commerce companies.

Online retail is flourishing in China thanks to the country's highly efficient and low-cost courier industry. In 2015, online purchases accounted for 10.8% of China's 30 trillion yuan ($4.4 trillion) in retail sales, a 32% increase over the previous year, according to the National Statistics Bureau. For fast-moving consumer goods, including toiletries, soft drinks and fresh food, nearly 20% of the purchases were made online.

By 2020, online sales of fast-moving consumer goods will grow at a much faster pace than apparel and electronics to expand fivefold from today and reach 1.2 trillion yuan, according to Yihaodian, one of China's earliest online grocery sites.

Fresh food and grocery items with quick turnover and higher profit margins have long been the competitive strength of large supermarket chains such as Wal-Mart and Yonghui Superstores. For e-commerce companies, moving into the sector requires heavy investments in logistics, warehousing and distribution capabilities.

Alibaba and JD.com have made tit-for-tat moves to get footholds in the blossoming online grocery market. On Oct. 19, Alibaba and smaller rival Suning Commerce Group Co. said they have established a new e-commerce joint venture with an investment of 1 billion yuan to manage Suning-owned stores on Alibaba sites. The venture is expected to combine the strengths of both companies. It is also a step forward for a partnership formed last year when Alibaba became Suning's second-largest shareholder through an equity swap.

The next day, JD.com stepped up its partnership with Wal-Mart. It opened Wal-Mart-branded stores on JD.com, using its huge logistics network to offer fast delivery for Wal-Mart in some cities. Wal-Mart also invested $50 million in the JD.com-backed online grocery specialist New Dada. JD.com and Wal-Mart had formed a strategic alliance in June when Wal-Mart sold its China online grocery store, Yihaodian, to JD.com.

Alibaba is the unrivaled titan in China's online retail market. In the fiscal year ended in March, the company's combined sales from its business-to-consumer site Tmall, consumer-to-consumer site Taobao and group-buying service Juhuasuan totaled 2.95 trillion yuan. That dwarfed JD.com's sales of 462.7 billion yuan, generated mainly from business-to-consumer transactions.

But JD.com is expanding at a faster pace. In the quarter between March and June, JD.com's gross merchandise volume, a measurement of total sales value, grew 47% from March to June a year earlier. Alibaba's rose 24%.

'JD.com is coming within shooting range of Alibaba,' said a source close to Alibaba's top management. Since the beginning of this year, Alibaba has set detailed monthly targets to counter JD.com, this individual said.

Despite their healthy sales growth, both companies face the same challenge — a slower expansion of users after years of explosive growth. Alibaba had 423 million active users while JD.com has 188 million, according to company documents.

Testing the Waters

Alibaba tested the supermarket waters in 2012 by launching Tmall grocery services in Shanghai and Hangzhou. But the 'business proved to be very difficult due to high logistics costs,' said a former Yihaodian manager who decline to be identified.

It was not until July 2015 that the grocery business was listed as one of Alibaba's four pillars of online retailing, along with Taobao, Tmall and Juhuasuan. That year, Alibaba spent 1 billion yuan in Beijing alone to subsidize grocery vendors and shoppers. Between 2012 and 2015, Alibaba made heavy investments in logistics and warehouse facilities, enabling it to engage in fresh produce sales, according to a staff member at Tmall.

JD.com quickly set up its own online supermarket division in October 2015. According to company financial reports, in the first quarter this year, JD.com's grocery sales rose 70% from the previous year, while Alibaba's supermarket sales grew 220%.

The expansion into groceries by the two e-commerce giants crushed smaller players. Wal-Mart-backed Yihaodian's market share in the country's e-commerce market shrank to less than 0.3% in 2015 from 2.6% in 2013, according to the e-commerce research website 100ec.cn. In the first quarter this year, the site barely recorded any growth from a year earlier.

That prompted Wal-Mart's sale of Yihaodian to JD.com in June in exchange for JD.com equity worth about $1.5 billion. The strategic alliance with Wal-Mart is expected to give JD.com shoppers wider access to imported Wal-Mart products and provide more ammunition for JD.com's battle with Alibaba.

After the deal, JD.com announced a 1 billion yuan investment in Yihaodian over the next three months and an ambitious goal of developing JD.com as the largest grocery retailer in three years, according to JD.com Vice President Feng Yi.

libaba quickly promised 2 billion yuan in subsidies for shoppers on its Tmall Supermarket site and 2 billion yuan of new investments to improve logistics and the supply chain.

The price war has escalated since September as Tmall Supermarket poured 180 million yuan into discounts for grocery shoppers Sept. 1-9. At the same time, JD.com offered 50% discounts on grocery items.

Some experts have questioned the price-war strategy.

'The gross profit margin of grocery items is less than 20%,' said Li Chengdong, an independent e-commerce analyst. Offering such big discounts 'is like burning money.'

A source close to Tmall Supermarket said Alibaba can afford the discounting because of the umbrella group's profitability.

But concerns over heavy spending are greater for JD.com, which has yet to make a profit after 12 years in business. In June, JD.com's share price on the New York Stock Exchange slumped to a historical low since its September 2014 listing. An APS Asset Management report had called money-losing JD.com 'wildly overpriced.' The stock revived in August after the second-quarter financial report indicated a narrowing loss.

Last year, JD.com lost $1.4 billion, while Alibaba recorded a net profit of $11.1 billion.

Reshaping Business

After more than a decade, Alibaba and JD.com have developed distinct identities in online retailing. Alibaba's Tmall and Taobao are the must-go places for many apparel shoppers because of their selection, offered by millions of vendors. JD.com has won more shoppers seeking branded electronic products. Alibaba has been focusing on operating platforms for numerous vendors and shoppers, while JD.com mainly sticks to direct sales backed by its highly effective, self-operated logistics network.

But as the grocery war unfolds, both companies have sought to fine-tune their respective strategies and gradually move in each other's direction. JD.com's Feng said the company's supermarket division aims to challenge Alibaba's strengths in cosmetics and apparel by expanding product variety.

Meanwhile, Alibaba recently said it sees growth potential in home appliance and cellphone sales. The company has actively expanded using its logistics division Cainiao, which now operates more than 128 warehouses across the country.

Backed by Cainiao's delivery capacity, Tmall Supermarket has adopted a JD.com-style direct-sales model, offering fresh produce sent directly from its own warehouse, rather than a third-party supplier. At the same time, JD.com has been gradually changing its business structure by inviting more third-party vendors onto its platform. According to company data, third-party vendors accounted for 45% of JD.com's gross sales in the third quarter, up from 40% a year ago.

As the two companies' strategies converge, both may increasingly face the same challenges, experts said. For instance, JD.com's standardized customer services have long been blamed for a lack of interaction with shoppers, failing to lure users to surf among its product catalogue as they usually do in Taobao and Tmall. At the same time, the huge number of vendors on Alibaba's platforms has made controlling counterfeit or substandard products a longstanding headache.

The e-commerce giants' efforts to reshape their businesses echoed Alibaba Chairman Ma's call for e-commerce companies to adapt a radical change in the global retail industry as the boundary between online and offline sales becomes increasingly blurred.

'In the coming years, we anticipate the birth of a reimagined retail industry driven by the integration of online, offline, logistics and data across a single value chain,' Ma wrote to Alibaba shareholders in a letter last week. 'With e-commerce itself rapidly becoming a 'traditional business,' pure e-commerce players will soon face tremendous challenges. This is why we are adapting.'


Agricultural Vietnam relies on imports to feed livestock sector

September 6, 2016

“Vietnam is an agricultural nation, but feed for pigs and chickens must be imported.”

During the first seven months of this year, Vietnam spent $1.8 billion on animal feed imports, the equivalent of 40 percent of the country’s revenue from rice exports, data from Vietnam Customs showed. That figure hit $2 billion in August, and shows no signs of slowing. The United States Department of Agriculture (USAD) forecasts that nearly half of Vietnam’s animal feed will be imported this year.

In recent years, approximately 45 percent of Vietnam’s demand for animal feed has been met by imports of soybean meal, corn and wheat. Local sources mostly provide bran rice and cassava.

“Vietnam is an agricultural nation, but feed for pigs and chickens must be imported,” said Le Ba Lich, chairman of the Vietnam Breeding Association..

Most of Vietnam’s imported animal feed comes from Argentina, accounting for 45 percent of the total value, followed by China and the U.S.

Vietnam has been looking to expand its corn and soybean plantations to minimize its reliance on imports since 2015. In March 2015, the country’s Ministry of Agriculture and Rural Development approved three genetically modified corn varieties for commercial planting, which were then planted a month later, making Vietnam the 29th country in the world to commercialize a biotech crop. However, local corn production still faces challenges from competitive prices offered by India, Argentina and Brazil.

Experts said that Vietnam does not have the best conditions for cultivating animal feed crops like corn, wheat and soybean, and emphasized that Vietnam’s livestock sector is facing many challenges due to market competition in the context of international integration.

Source: www.talkvietnam.com


AARTD 粉红的一天 Team Building: Pink & Red

 

作为刚刚过去的妇女节的礼物,我们的老大Michael给我们带来了一个“粉红色的惊喜”!他请了专业的插花师来,让我们这群爱花,爱美的姑娘们体验了一把专业插花的乐趣。



美丽的插花师们,在法国巴黎学的专业插花。



插画师不仅给我们带来了美丽的花艺,还给我们带来了礼物:来自法国的拿破仑小蛋糕!




在插花师的带领下,我们学会了怎样修整玫瑰花瓣,怎样刮掉玫瑰上尖锐的刺,怎样排列主花(玫瑰名字叫Boyfriend)怎样把蔷薇花,腊梅,兰花……点缀其中,怎样制作兰花的营养瓶……


大家在认真地学习,都渐渐融入到鲜花的海洋中





大家的作品都初具雏形~!




大功告成!!怎么样,是不是超级无敌美!!!



看我们的AARTD大家庭!每个人的笑容都是粉红色的!

Roses are red but also pink, AARTD workers, a strong bond.

Team building with a beautiful end; 

bearing flowers, roses of pink and red.





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快来关注我们吧! Please join us!

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MEDIA RELEASE Red meat industry welcomes ChAFTA entry into force

The Australian red meat and livestock industry has welcomed the news that the China-Australia Free Trade Agreement (ChAFTA) will enter into force (EIF) on 20 December 2015.

EIF of ChAFTA will see the first tariff cuts delivered across all red meat and livestock tariff lines - with the second tariff cuts due on 1 January 2016 (see table below).

“The quick succession of initial tariff cuts will greatly improve the competitiveness of Australian product – particularly as sheepmeat products from New Zealand will be duty free from 1 January 2016, and other beef suppliers have recently secured improved access,” Chairman of the Australian Red Meat ChAFTA Taskforce David Larkin said.

The current tariffs imposed on Australian beef, sheepmeat and co-products exported to China represent an annual tax on the supply chain in excess of $800 million.  The gradual removal of this cost burden will positively impact the profitability of Australian cattle and sheep producers, processors and exporters, as well as alleviate the inflated prices paid for Australian red meat and associated products by Chinese customers and consumers.

Once fully implemented ChAFTA has the potential to boost the gross value of beef production by $270 million annually by 2024.  Out to 2030, the total benefits for beef will approach $3.3 billion.  For the sheepmeat sector, the potential benefits are more than $150 million each year by 2024 – with the value over the next 16 years being in excess of $1.8 billion.

As China is also a destination for nearly 90% of Australia’s sheepskin exports and 80% of cattle hides, elimination of these tariffs, as well as those on offal, will add $436 million a year by 2024 across both beef and sheepmeat – and out to 2030, these benefits could total $6 billion.

Mr Larkin thanked the Minister for Trade and Investment, DFAT officials in Canberra and the Australian Embassy in Beijing for their combined efforts in achieving entry into force of the ChAFTA prior to the end of 2015.

“The benefits flowing from ChAFTA will add significant value to the Australian red meat and livestock industry and complement the gains derived from the other FTAs Australia has concluded to date,” Mr Larkin said.

Indicative ChAFTA tariff reductions

 

Current tariff (%)

21 Dec 2015

1 Jan 2016

1 Jan 2017

1 Jan 2018

1 Jan 2019

1 Jan 2020

1 Jan 2021

1 Jan 2022

1 Jan 2023

1 Jan 2024

Live animals

10

8

6

4

2

0

-

-

-

-

-

Beef

12

10.8

9.6

8.4

7.2

6

4.8

3.6

2.4

1.2

0

Sheepmeat

15

13.3

11.7

10

8.3

6.7

5

3.3

1.7

0

-

Offal

12

10.5

9

7.5

6

4.5

3

1.5

0

-

-

Source:  http://dfat.gov.au/trade/agreements/chafta/official-documents/Pages/official-documents.aspx

 


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China-Australia free trade agreement

Factsheet: Agriculture and Processed Food
China is Australia’s largest agriculture, forestry and fisheries export market, worth $8 billion in 2014, up from $5 billion in 2010.
China’s demand for high-quality agriculture and food products is growing rapidly. The Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES) predicts that China will account for 43 per cent of global growth in agricultural demand by 2050.
Until now, the absence of a bilateral FTA with China has meant Australian producers and exporters have faced significant tariffs on agricultural products and have been at a competitive disadvantage to countries that have an FTA with China – including New Zealand, Chile and ASEAN. The China-Australia Free Trade Agreement (ChAFTA) addresses this issue, and also gives Australia a significant advantage over larger players, such as the US, EU and Canada.
ChAFTA will also provide a base for further liberalisation through a commitment to review outcomes three years after entry into force.

Key Outcomes
Beef
China’s demand for high-quality beef is growing rapidly, driven by a growing middle class. The OECD assesses that beef will be the fastest-growing import sector in China.
In 2014 Australian beef exports to China totalled 128,000 tonnes, worth $655 million.
Australia – already China’s dominant supplier with 50 per cent of the import market and with an outstanding reputation for quality – will be ideally placed to capitalise on this growing demand, with ChAFTA delivering a real competitive advantage over other large beef exporters.
Key outcomes include:
 Elimination of tariffs on beef imports (currently ranging from 12-25 per cent) within 9 years.
 Elimination of the 12 per cent tariff on beef offal within 4-7 years.
China has retained the right to apply a discretionary safeguard on beef (not including offal) if imports exceed a set annual “safeguard” trigger volume. The trigger starts at 170,000 tonnes – 10 per cent above Australia’s historic calendar year peak export levels to China – and grows over time. There is also a set review process to consider removal of the safeguard.

Dairy
China is Australia’s second largest market for dairy exports. This market is expanding rapidly with exports worth $347 million in 2014. Australia’s main competitors are New Zealand, the EU and the US. Currently, New Zealand’s dairy produce receives a considerable tariff advantage under its bilateral FTA with China.
ChAFTA will progressively close this gap; tariffs will be progressively eliminated across all dairy products.
Crucially, New Zealand’s FTA with China contains restrictive safeguard measures on a wide range of dairy products, including liquid milk, cheese, butter and all milk powders (where China raises the tariff back to the higher normal rate when New Zealand exports exceed a certain volume). By contrast, under ChAFTA, Australia will only face a discretionary safeguard on whole milk powders, with the safeguard trigger volume set well above current trade levels and indexed to grow annually. For all other dairy products, Australia will receive unlimited preferential access.
Key outcomes under ChAFTA include:
 Elimination of the 15 per cent tariff on infant formula within 4 years.
 Elimination of the 10 – 19 per cent tariff on ice cream, lactose, casein and milk albumins within 4 years.
 Elimination of the 15 per cent tariff on liquid milk within 9 years.
 Elimination of the 10 to 15 per cent tariff on cheese, butter and yogurt within 9 years.
 Elimination of the 10 per cent tariff on milk powders within 11 years.

 

Sheep and goat meat
China’s demand for sheepmeat is also growing rapidly. In 2014, total Chinese imports of sheepmeat reached 281,000 tonnes, up from 124,000 tonnes in 2012. New Zealand has traditionally been China’s largest supplier and enjoys a competitive advantage over Australian exporters due to its FTA. New Zealand lamb now only faces tariffs ranging from 2.7 – 5.1 per cent and will be duty-free by 2016.
In 2014, Australian exports to China were worth $425 million (108,000 tonnes), up 10 per cent on 2013 exports at $385 million. China is already Australia’s second-most important sheepmeat export destination, despite China imposing tariffs ranging from 12 – 23 per cent.
With the progressive elimination of tariffs on sheepmeat, ChAFTA positions Australian farmers to further build trade and increase profitability.

Key outcomes include:
 Elimination of the tariffs on sheepmeat (currently ranging from 12 to 23 per cent) within 8 years.
 Elimination of the 18 per cent tariff on frozen sheepmeat offal within 7 years
 Elimination of the 20 per cent tariff on goat meat within 8 years.

Wool
China accounts for 70 per cent of Australia’s wool exports. Australia is China’s largest source of imported wool, with a 63 per cent market share, ahead of New Zealand (14 per cent).
China already provides virtually duty-free access on wool, under a large WTO tariff rate quota of 287,000 tonnes. Tariffs within this quota are set at just 1 per cent. While China has the right to impose a 38 per cent tariff outside the quota, traditionally it has not done this as wool is an important input into domestic manufacturing.
Under ChAFTA, in addition to the existing WTO quota, Australia will receive an exclusive duty-free Country Specific Quota of 30,000 tonnes clean wool (approximately 43,000 tonnes greasy wool). This volume will grow by 5 per cent each year to almost 45,000 tonnes clean (approximately 64,300 tonnes greasy) by 2024, all at duty-free rates. This is the best outcome China has provided in any of its FTAs to date.

Pork
Tariffs of up to 20 per cent on pork eliminated within 4 years.
Hides, skins and leather
Hides and skins are a crucial agricultural export to China worth $910 million in 2014. This is more than ten times our next largest market (Italy). Currently hides and skins face tariffs of 5 to 14 per cent.
Under ChAFTA, all tariffs on hides, skins and leather will be eliminated. Key outcomes include:
 Elimination of the 7 per cent tariff on sheep skins over 4 years – exports worth $342 million in 2014.
 Elimination of the 5 to 8.4 per cent tariffs on cow hides and skins between 2 and 7 years – imports worth around $518 million.
 Elimination of the 9 per cent tariff on kangaroo hides and skins and the 14 per cent tariff on kangaroo leather over 4 years.
 Elimination of tariffs between 5 and 14 per cent on a range of other leather products either on day one of the Agreement or over 4 years.

Wine and spirits
China’s wine import market is growing dramatically, almost doubling in size since 2010 to be worth over $1.7 billion in 2014.
China is Australia’s third-largest export market for wine, worth $211 million in 2014. However, Australia competes with New Zealand and Chile, both of which have preferential wine access under their FTAs with China. China’s wine imports from Chile have increased almost seven-fold since its FTA with China entered into force in 2006.
 Under ChAFTA, tariffs of 14 to 20 per cent on Australian wine imports will be eliminated within 4 years
 Tariffs of up to 65 per cent on other alcoholic beverages and spirits will be eliminated within 4 years.

Horticulture
China is a rapidly growing market for Australian horticultural products, with exports worth $56 million in 2014 – up from $13 million in 2010. However, China applies some of its highest tariffs on horticultural products.
Under ChAFTA, all tariffs on horticultural products will be progressively eliminated. Key outcomes include:
 Elimination of the 10 to 25 per cent tariff on macadamia nuts, almonds, walnuts, pistachios and all other nuts within 4 years.
 Elimination of the 11 to 30 per cent tariff on oranges, mandarins, lemons and all other citrus fruits within 8 years.
 Elimination of the 10 to 30 per cent tariff on all other fruit within 4 years.
 Elimination of the 10 to 13 per cent tariff on all fresh vegetables within 4 years.
Separate to the FTA negotiations, Australia already enjoys quarantine access protocols for export into China for many horticultural products, and will be able to take immediate advantage of tariff reductions for a range of products including citrus, grapes, almonds, macadamias, mangoes and some cherries.
There are no changes to Australia’s domestic science and risk-based quarantine measures as a result of ChAFTA.
ChAFTA facilitates customs processing of perishable goods, including horticulture products.

Barley, sorghum and other grains
Australia’s trade to China in barley and sorghum is significant and growing rapidly. In 2014, barley exports were worth more than $1 billion, up more than 330 per cent since 2010, while sorghum exports were worth $264 million. Key outcomes under ChAFTA include:
 Immediate elimination of the 3 per cent tariff on barley and 2 per cent tariff on sorghum.
 Elimination over 4 years of the 15 per cent tariff on cotton seeds – exports worth $21 million in 2014.
 Elimination of the 10 per cent tariff on malt and wheat gluten within 4 years.
 Immediate elimination of the 2 per cent tariff on oats, buckwheat, millet and quinoa.
 Elimination of tariffs of up to 7 per cent on pulses within 4 years.

Seafood
Australian seafood exports to China totalled $35 million in 2014. Australian abalone and rock lobster are the leading Australian premium seafood exports to China, with exports worth $15 million and $2 million, respectively, in 2014. Tariffs on all Australian seafood exports will be eliminated progressively over 4 years.
ChAFTA will create a huge opportunity for Australian seafood in the Chinese market. Since the China – New Zealand Free Trade Agreement came into force, China’s imports of seafood from New Zealand have quadrupled (to $402 million). Key outcomes under ChAFTA include:
 Elimination of the 10-14 per cent tariff on abalone within 4 years.
 Elimination of the 15 per cent tariff on rock lobster within 4 years.
 Elimination of the 12 per cent tariff on southern bluefin tuna, salmon, trout and swordfish within 4 years.
 Elimination of the 14 per cent tariff on crabs, oysters, scallops and mussels within 4 years.
 Elimination of the up-to-8 per cent tariffs on prawns within 4 years.

Processed foods
Changing consumption habits and Australia’s reputation for high-quality produce also provide great opportunities in the processed food sector. Key outcomes under ChAFTA include:
 Elimination of the 7.5 to 30 per cent tariff on orange juice within 7 years, and elimination of tariffs of up to 30 per cent on other fruit juices within 4 years.
 Elimination of the 15 per cent tariff on natural honey, and the up-to-25 per cent tariff on honey-related products, within 4 years.
 Elimination of the 15 per cent tariff on pasta within 4 years.
 Elimination of the 8 to 10 per cent tariff on chocolate within 4 years.
 Elimination of the 15 to 25 per cent tariff on canned tomatoes, peaches, pears and apricots within 4 years.
 Elimination of the 15 to 20 per cent tariff on biscuits and cakes within 4 years.

Live animals
China is Australia’s second largest market for live animals, worth $254 million in 2014. It is an important and growing market, with exports doubling from $117 million in 2010. Pure-bred cattle currently dominate Australia’s live animal exports to China, worth $206 million in 2014. Key outcomes under ChAFTA include:
 Elimination of all tariffs on live animal exports within four years, including the 10 per cent tariff on live cattle (pure-bred breeding cattle already enter China duty free).

China’s WTO quotas and related products

Under China’s WTO accession protocol, China applies quotas on imports of rice, wheat, maize, sugar and vegetable oils. These are open to all WTO members, including Australia. In-quota tariffs are set at only 1 per cent for wool, rice, wheat, cotton and maize; 8 to 10 per cent for vegetable oils and related products and 15 per cent for sugar. Imports of vegetable oils are no longer administered through a quota.
Australia’s exports of these products enter China under existing WTO arrangements. Arguing that these products are key staples and already enjoy virtually duty-free access, China has not further liberalised these products in any of its FTAs to date. Accordingly, China has not provided preferential access to Australia under ChAFTA.
However China has agreed to a built-in review process three years after the Agreement enters into force, including on market access.

China’s products into Australia
Consistent with all of Australia’s FTAs, Australia will eliminate remaining tariffs on agricultural and processed food imports from China. To allow adjustment by domestic industry, the elimination of some of these tariffs, in particular on a range of canned fruit products and peanuts, will be phased in over 3 years.


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China-Australia Free Trade Agreement to enter into force

Australian farmers will now benefit from the significant opportunities created by the China-Australia Free Trade Agreement (ChAFTA), with the landmark trade agreement entering into force on 20 December 2015.
 
Minister for Agriculture and Water Resources, Barnaby Joyce, said this entry into force before the end of 2015 means ChAFTA will deliver two tariff cuts in a row on agricultural exports to China, with the first round of tariff cuts to be made on 20 December, and a second cut to take effect on 1 January 2016.
 
“ChAFTA will deliver unprecedented opportunities to build our trading relationship with China,” Minister Joyce said.
 
“China has become the world’s second largest importer of agriculture, food and fishery products, worth almost US$120 billion in 2014, and has also become Australia’s biggest market for agricultural products—we exported around $9.7 billion in 2014-15, at tariffs up to 30 per cent, and ChAFTA will enable producers to build on this.
 
“ChAFTA will also close the gap between Australia and those countries that already have FTAs with China, such as New Zealand and Chile, and provides a significant advantage over other major competitors in the market which do not have FTAs with China.
 
“Now with the first round of tariff cuts to occur from 20 December 2015, benefits can start to flow through to the farmgate—and these benefits are significant.
 
“Tariffs on key grain exports of 3 per cent on barley and 2 per cent on sorghum will be eliminated on entry into force. Barley exports were valued at over $1.1 billion in 2014–15, while exports of sorghum were worth around $370 million in 2014–15.
 
“Tariffs on animal feed, oats and frozen prawns will also now be completely eliminated on 20 December.
 
“Tariffs on most seafood, wine, horticulture and livestock will be eliminated over 4 years. For example, the current 24 per cent tariff on our macadamia exports, worth $35.8 million in 2014–15, will be reduced to 19.2 per cent on 20 December, and further cut to 14.4 per cent on 1 January 2016.
 
“The 10 per cent tariff on live cattle exports will be cut to eight per cent on 20 December, and further cut to six per cent on 1 January 2016, helping exporters taking advantage of the recently negotiated feeder/slaughter cattle protocol with China.
 
“High tariffs on key growth commodities such as beef, sheepmeat, hides, skins and dairy will be eliminated over 7–11 years, providing a strong base to further grow what are already substantial trades.
 
“China is already Australia’s second largest market for dairy exports, worth $331 million in 2014–15, and the removal of tariffs of 10–20 per cent under ChAFTA will only further expand industry opportunities in this rapidly expanding market.
 
“For example, the 12–15 per cent tariff on Australia’s cheese export to China will be reduced to 10.8 per cent on 20 December, and further cut to 9.6 per cent on 1 January 2016. Australia’s cheese exports to China were worth $72.3 million in 2014-15, with tremendous potential to grow.
 
“I recently visited China with an industry delegation for the second time in two years to further exchange views with my counterpart Ministers and promote the opportunities for Australian agriculture under ChAFTA.
 
“The government is constantly working to improve and expand technical market access to China for Australian agricultural products in order to fully realise the benefits of ChAFTA.
 
“The recently concluded protocol on live feeder and slaughter cattle, and the updated wheat and barley protocol are significant examples of the government’s focus on these issues.”​​
 
Minister Joyce said the Australian Government continued to pursue the best market access opportunities to the benefit of Australian producers.
 
“After finalising FTAs with three of our biggest trading partners as well as with other Asia-Pacific nations, we’re now working hard on reaching an agreement with India, where demand for agrifood products continues to grow,” Minister Joyce said.
 
“Our work on trade is a testament to our commitment to better farmgate returns for Australian producers—and this is a huge step in boosting those returns.”
 
 

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