China still a good option
The ongoing rise of the Chinese middle class will drag up demand for New Zealand products there in the future.
The Australian Dairy Farmers (ADF) and the United Dairyfarmers of Victoria (UDV) have called for a "show of strength" against a union campaign, backed by the federal opposition, which threatens to derail the China Australia Free Trade Agreement (ChAFTA).
At least 300 farmers came together at regional roadshows across the state, making a resounding call for the ChAFTA to be ratified by the end of the year. They started in Warrnambool, touring through Colac, Timboon, Tatura, Cohuna, Leongatha and Warragul.
ADF president Noel Campbell says the dairy industry needs to be heard to make sure the "game changer" deal happens.
The ChAFTA took 10 years to negotiate and is worth a projected A$11 billion to the Australian dairy industry. Campbell says there is urgency to the campaign for the deal to be signed this calendar year to ensure a reduction in tariffs later this year and another in January.
He says the first priority for farmers should be a letter and email campaign to local and ALP MPs, but taking to the streets is also on the agenda.
"If needed, get on a bus and go to Melbourne and get your friends and neighbours and the whole community behind you. Make a noise," he said.
"I'm not saying 'go into the streets and go up against the police' but make sure the community knows how important it is. Delaying this trade deal means lost jobs and lost opportunities for farmers."
UDV manager Vin Delahunty says contrary to union reports, the FTA would protect jobs in regional Australia and that the union campaign was "not based on facts"; Campbell also dismissed the campaign saying Chinese companies would have to follow due process on 457 visas and first seek local labour, adding "agriculture generally does not use many workers on 457 visas".
However, he admitted the union campaign had gained traction. "It is clear this campaign has gained community following. I hear a lot of talkback on suburban radio and it's probably 10 to one against the ChAFTA. That's negative for us so we've got to tell Victoria the facts."
In response to a question, Campbell says it is hard to say how many more cents per litre -- or cents per kgMS -- farmers would receive under the deal. But the long-term benefits would be big for the industry.
"It's significant if you want the confidence to invest on your farm, and it would take some shock out of losses we make at certain times."
Campbell told Dairy News he was not confident the deadline could be reached in time, especially because many cross-bench senators have expressed their opposition to the deal.
"It's frustrating from an industry perspective.
"We would like to think it could be resolved by the end of the year, but it's getting harder every day as we get closer to the end of the year.
"We were hoping with the change of Prime Minister that we might see an opportunity for the parties to come together but so far that doesn't appear to have happened."
He says the ADF would continue to pursue a positive result and urge the ALP and cross-benchers to put politics aside "and support something that is clearly in the nation's best interest".
