CATTLE Council of Australia has urged a critical examination into how the recent ban of Australia’s meat export trade to China was handled, amid concerns about a lack of transparency from the meat processing sector at the expense of producers.
The peak, national cattle-producer body is also calling for the review to be conducted so as to avoid causing “considerable” reputational damage in any future market suspensions.
The Department of Foreign Affairs and Trade (DFAT) is also conducting a separate but informal look at what went on behind the scenes amid the costly and controversial trade suspension imposed on seven Australian meat processing facilities over labelling non-compliance issues, on July 24 this year.
Immediately after the ban was lifted on October 30, Cattle Council wrote to Red Meat Advisory Council (RMAC) Chair Don Mackay with the express aim of extending the role of cattle producers in any future negotiations underpinning an export trade ban.
In a veiled swipe at the Australian Meat Industry Council (AMIC), Mr Smith’s letter said his group had been contacted by members expressing concerns at how the Chinese suspension was managed.
“It has been estimated that the recent suspensions have cost the Australian red meat industry in excess of $90 million,” he wrote in a confidential version of the letter obtained by Fairfax Agricultural Media.
“With the expected increase in demand from the Chinese market due to reaccreditation of suspended plants, new establishment listings, additional chilled access and the tripe/offal protocol to be finalised, China is set to become a more significant market for Australian beef.
“CCA is concerned that the manner in which these recent suspensions were managed has considerably damaged the reputation of Australia’s $62 billion red meat industry.”
Mr Smith’s letter called on RMAC to coordinate a review of the decision-making process and actions undertaken by the meat industry and federal government, after the suspensions were issued on July 25.
It also urged a review of the industry operating framework for non-tariff barriers, which it said were a “significant barrier” to productivity and profitability for the red meat sector.
As part of any reforms stemming from an examination of the China ban, Mr Smith said CCA wanted Meat and Livestock Australia (MLA) to take on a more defined leadership role in overcoming technical trade suspensions.
“Accordingly, CCA will be recommending to RMAC that in the event of a subsequent suspension occurring, whilst a review into the industry operating framework and recent decision-making processes is being conducted, that MLA take any and all actions deemed appropriate, with the approval of PIC’s (peak industry councils) and in collaboration with AMPC (Australian Meat Processor Corporation) to re-establish trade within market,” it said.
RMAC did not provide any comment - but It’s understood AMIC is furious about Cattle Council’s letter being sent to red meat industry stakeholders and has demanded it be retracted.
However, acting Cattle Council CEO Margo Andrae said her group wasn’t “attacking anyone” and was simply asking for a review of the processes underpinning the Chinese suspension, during the delicate negotiations, because it directly impacted the industry; including cattle producers.
“We want to see what steps were taken by industry and the government in the talks that took place to see where it can be improved and the lessons that were learned,” she said.
“We are protecting our producers and ensuring that adequate resources are available to support industry and government.”
One well-placed senior industry source who asked not to be named for fear of retaliation said the Cattle Council letter was “basically a vote of no confidence in AMIC” while asking for MLA and cattle producers to have more say in future trade ban negotiations.
But AMIC Chairman Lachie Hart said his group welcomed the opportunity to undertake a comprehensive review of the management of the recent temporary suspension of export to China for five Australian red meat export processing companies.
“We are always looking at opportunities to make improvements in our processes and relationships,” he said.
“AMIC worked closely with the Department of Agriculture and Water Resources and the Department of Foreign Affairs and Trade to reach a resolution, and while the suspension was lifted expediently by comparison with other nations in similar situations, we want to ensure the process is working optimally.
“I am proud of the way the AMIC team managed the issue on behalf of members, however considering the critical and far reaching implication of such issues, we will review communications across the network of internal and external stakeholders to ensure we are meeting the needs of industry while maintaining our long term trade relationships.”
A DFAT spokesperson said China lifted the suspension of red meat imports from six Australia meat-processing facilities in October but the Australian government wasn’t conducting any formal review of the matter.
“DFAT maintains close contact with industry stakeholders, including discussions about how to improve our engagement with them,” the spokesperson said.
After the ban was lifted, Nationals leader and former Agriculture and Water Resources Minister Barnaby Joyce wrote to meat processors issuing a warning about the broader trade and economic risks associated with ignoring warnings about labelling protocols underpinning access to the Chinese market.
A notice was also issued to local meat processors highlighting tighter internal procedures around labelling, for exporting to the Chinese market.
Mr Joyce’s correspondence expressed concern and disappointment that despite the initial market suspension occurring in late July, more instances of labelling non-compliances had surfaced during the ban period.
He stated it was vital to the Australian meat export industry’s sustainability that market confidence in inspection and certification systems be maintained, while warning about the strict need to fully comply with China’s import requirements at all times.
His letter claimed there was inherent financial risk and trade damage associated with jeopardising the Australian agricultural industry’s broader reputation for exporting clean, green and safe foods into Asian markets, by meat exporters ignoring the higher standards of those importing nations, not just China, and breaching their regulatory requirements.