1. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y The Australian Model of Agriculture: What relevance to the EU? Presentation to CEJA General Assembly 22 April 2007 Mr Greg Williamson Minister-Counsellor (Agriculture) Australian Embassy Brussels The Australian Model of Agriculture: Challenges and Relevance to the EU. Estonia Policy Forum 14 May 2008 Mr Greg Williamson Minister-Counsellor (Agriculture) Australian Embassy Brussels

2. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y New Policy Challenges Climate Change Food security Water Management

3. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y Policy Approaches Capacity building (innovation and R&D) Industry and business adjustment Market liberalisation Improved water management Response to exceptional events

4. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y The Australian Story Extensive structural and macroeconomic reforms Removing regulation and opening Australia’s agricultural sector to competition

5. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y Australian Exports

6. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y Current Policy Settings FarmBis The New Industries Development Programme (NIDP) Research and Development / Innovation Current Policy Settings Capacity building (innovation and R&D) Industry and business adjustment Market liberalisation Improved water management Response to exceptional events

7. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y Australian Experiences of Policy Reform The Australian Dairy Industry Australian Experiences of Policy Reform The Australian Dairy Industry A success story of change –from a low growth, regulated sector –to a high growth, internationally competitive industry.

8. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y Australian Dairy Statistics 1980/811995/962005/06 Farms '000s 2213.88.8 Production billion ltrs 5.28.710.1 Export $.00031.72.6 Prod n /cow '000s L 4.75.03

9. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y Value of dairy land and fixed improvements per hectare

10. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y The Way Forward Clear market signals over the long term will strengthen an industry. Even the most highly protected sectors stand to benefit from the implementation of market-liberalising reforms. Adjustment assistance may be needed to facilitate transition.

11. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y Producer Support Estimates

12. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y Farm Numbers by Country

13. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y The European Story European Policy Significant positive changes have been made to EU agricultural support policies. However significant market distorting support measures remain, including the use of tariffs, tariff quotas and export subsidies. High CAP payments continue to lead to distortions through impacts on farmer behaviour, and capitalisation of payments into land values.

14. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y Concluding Remarks True reform cannot be undertaken with continuing high tariffs and interventionist policy. The regulatory burden must be reduced and policies must encourage greater self-reliance. The Australian emphasis on self-determination, capacity building and adjustment is equally applicable to the European situation.

15. D E P A R T M E N T O F A G R I C U L T U R E, F I S H E R I E S A N D F O R E S T R Y THANK YOU FOR YOUR TIME