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Australian Sugarcane Industry

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Presentation on theme: "Australian Sugarcane Industry"— Presentation transcript:

1 Australian Sugarcane Industry
Warren Males Head – Economics 4 December 2016

2 20% 80% Aussie sugar production key facts Raw Sugar 4 to 5 Mt
Exports around 3 Mt 1.7% of world consumption White Sugar 1.15 Mt Exports 250 kt 0.06% of world consumption 4000 30-35 Mt CANE FARM BUSINESSES CANE HARVESTED 20% DOMESTIC 80% EXPORTED

3 East Asia is a deficit sugar region
Australian export sugar can’t fill the gap Market access restrictions increase import costs Source: ISO Sugar Yearbook

4 Trade rules WTO MC10 (Nairobi) – Export Competition
Developed countries – immediately remove export subsidies Developing countries – elimination by 2018 The poorest and food-importing developing countries – remove by 2028.

5 Protection promotes “unofficial trade”
On 22 September the Chinese Ministry of Trade (MOFCOM) initiated an investigation on whether to apply ‘safeguard’ measures to protect the Chinese sugar industry from a surge in imported sugar (raw and refined) The situation Official (duty paid) sugar trade increased in response to an import need “Unofficial Trade” flows have increased faster in response to economic opportunity The challenge – manage trade flows The risk – restrictions on official imports could stimulate even more “unofficial” trade

6 RCEP could deliver huge benefits
Facts East-Asia is a deficit sugar region Consumption & import demand are growing quickly Efficient supply solutions are needed RCEP negotiations provide opportunity To boost economic growth & development throughout the region For importers to secure food supply through stronger trade structures For exporters to strengthen supply relationships The RCEP challenge to break the shackles of protectionism and establish a comprehensive regional economic partnership that will lift incomes and create opportunity

7 Thank you


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