Janelle Saffin (Page, Australian Labor Party) Share this | Link to this | Hansard source

I am appalled that the United States has just taken a big backwards step towards protectionism, announcing its reintroduction of dairy export subsidies. This could lead to other countries blocking free trade. It could push prices down and distort the market. There are other ways to deal with need and adjustment. It might make them feel good, but it will distort the trade markets. The danger is that more will follow, like lemmings. This flies in the face of the G20 leaders agreement not to impose protectionist measures in the face of the global recession. We now have the EU and the US paying dairy subsidies. This further highlights the importance of concluding the WTO’s Doha round, which would see the complete elimination of export subsidies—a process we in Australia are committed to. I know from direct contact with dairy farmers that many are experiencing some tough times due to the difficult and challenging economic climate.

In my seat of Page, the dairy industry is a key industry. We are home to the long-established and successful dairy cooperative Norco. Our dairy farmers over the past decade and even before have coped with and adjusted to many reforms. Some have been painful, but they have come through. The combined value of farm milk production from the Northern Rivers to south-east Queensland was 230 million for the 2006-07 period. Many farmers have already had significant cuts to the farm gate price following the fall in international dairy prices from the historic highs of 2007-08. ABARE forecasts further reductions in prices paid to farmers until 2010-11, after which it forecasts that prices will begin to recover. In spite of this, I know that the industry is optimistic about its long-term future. Importantly, two-thirds of dairy farmers still feel very positive about their future.

In the Sunday Age of 24 May 2009 Alan Burgess said that the American subsidies will depress already low world prices. I agree. The headline was, ‘US kick in the guts to dairy farmers.’ I could not agree more. It felt like a kick in the guts to me when I read it knowing all the dairy farmers in my area who toil hard for long hours seven days a week. I am pleased that our Minister for Trade and the Minister for Agriculture, Fisheries and Forestry are running hard on this, protesting loudly and at the highest levels. All of us are going in to bat for our dairy farmers. I am also pleased to report that after much detailed negotiation by the government, the Indian market for Australian dairy exports has reopened for the first time since 2003—a hard market to crack. I ask our US friends to rethink. This is not a friendly act towards our dairy farmers.