The Australian dairy industry is united in its fight against the European Union's (EU) geographic indicators (GIs) claim, which represents a potential $75-95 million loss.
The Department of Foreign Affairs and Trade (DFAT) describes geographic indicators as "a name used on a product that has a specific geographical origin and possesses qualities or a reputation that are essentially attributable to that origin".
You might have heard about GIs in the news recently. That's because talks on the Australia-EU free trade agreement kicked off again recently, and the EU wants GIs included.
The EU wants to restrict the use of more than 160 agricultural and food names in Australia. The list includes cheeses, meat and smallgoods, horticultural produce, alcoholic drinks and more. Fifty cheese names are included.
The claim could strip more than $75 million from the local industry.
- Rick Gladigau
The acceptance of GIs in Australia would have deep consequences for our dairy industry.
Australian favourites such as feta, parmesan and haloumi are among those potentially in danger.
Australian Dairy Farmers considers these are common names, adopted right around the world. These cheeses have been produced in Australia for generations, in some cases by immigrants who brought the heritage, traditions and cheese making skills here.
GIs are not accepted globally and are applied inconsistently in Europe. For example, the EU is trying to claim feta for Greece. However, the EU is also home to Danish feta.
Forcing cheesemakers to change the name of their product and denying them the right to use their branding due to evoking European heritage is unjustified. The effects of this will be greatly felt when it comes to farmgate prices, demand for raw milk, and the unfair displacement of local Australian producers and quality made products, putting up to 1000 jobs at risk.
This will inhibit Australian production so the EU can increase exports at our expense.
In addition, the potential direct impact on Australian dairy manufacturers from lost sales and increased marketing costs caused by the strict enforcement of GIs could range from a staggering $75 million to $95 million a year in the early stages of the FTA.
Not a fair claim
ADF supports free and fair trade. That's why we don't accept the EU's claim, and we wouldn't want to see a similar Australian claim forced upon our trading partners.
To flip the GIs argument - we often forget the macadamia tree is native to Australia.
Macadamia nuts are now grown in Australia, Hawaii, California, Central and South America and Africa.
Europeans clearly have an appetite for them. The Centre for the Promotion of Imports from Developing Countries - a Netherlands government department - suggests Europe is the second-largest importing region of macadamia nut kernels, buying 30 per cent of total world exports.
They're happily marketed as macadamias worldwide.
Similarly, the lamington originated in Queensland. But I can't imagine there's many people wanting to force European bakers to market "sponge squares covered in chocolate sauce and coconut".
Nobody likes the sound of yeast spread, and let's not explore a Chiko Roll.
A poor case
To add salt to the wound, the Europeans say products with GI protection can attract twice the value in sales. But research from Hazel Moir, Honorary Associate Professor, Centre for European Studies (CES), at the Australian National University, shows that the GI policy is politically motivated.
She found relevant economic data to support GI policy was most lacking in the EU, "where the European Commission does not yet collect good data to evaluate and improve GI policy".
Ms Moir reported Europe's most recent study, from 2013, "simply involves 13 case studies with almost no quantitative data".
A key point missing from the discussion to date has been the significant changes the Australian government would have to take, should it agree to protect EU GIs.
Implementing such an agreement would require legislative change which would come at a considerable cost to the Australian taxpayer.
Consumer confusion
It's important to recognise that this debate extends beyond the name of a product. It also includes how it is presented to the consumer.
That represents two layers of confusion for consumers.
Feta and parmesan are the cheeses at highest risk. There are more than 70 Australian brands of feta and 30 brands of parmesan in the market.
Under the GIs regimen, these products would become white, crumbly cheese stored in brine, or semi-hard, grainy cheese.
If introduced, Australian producers could also have to alter the packaging, labels and colours if they are deemed to contribute to a perception the product is of European origin.
Open trade support
Just as Australians value a fair go and share our produce with the world, we value a fair trading environment.
ADF supports free and fair trade, and we look forward to continuing to work with government on this FTA, to achieve a win-win outcome in the best interests of the Australian dairy sector.
The GIs claim represents millions of dollars the industry can't afford to lose.
Article supplied by Australian Dairy Farmers
Want to read more stories like this?
Sign up below (select Dairy News) to receive our e-newsletter delivered fresh to your email in-box twice a week.
