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Overhaul for dairy export system

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Minister for Agriculture, Fisheries and Forestry Tony Burke has announced an overhaul of the system for allocating the United States and European Union dairy tariff rate quotas, which he says will cut red tape and help improve market access. The quotas allow certain amounts of Australian dairy products to be exported to the US and EU with reduced or no tariffs, as negotiated through the World Trade Organisation and the Australia-United States Free Trade Agreement. "Australian dairy has a strong reputation around the world but our farmers are affected by factors such as the global fall in dairy prices," said Burke. "By opening up export markets and cutting red tape, we are helping to support local dairy producers." The reforms aim to improve the transparency of quota administration and provide support for small dairy exporters looking to grow market share. Changes include:
  • Replacing four sets of quota access rules with a single set of rules
  • Introducing an annual application process to give exporters more flexibility
  • Opening the quota to new players and setting aside a small proportion of quota for small and new exporters
In 2008/09, Australia exported dairy products worth $122 million to the US at zero tariffs and approximately $52 million in dairy products to the EU. For more information, see the Department of Agriculture, Fisheries and Forestry quota site.

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