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A growing concern for Australian farmers

Greg Barns-1

The rolling hills of Tasmania's northwestern coast are as fertile as anywhere on this Earth, allowing for large-scale potato, onion and green vegetable farming.

But the farmers there are up in arms over fears that a flood of cheap, imported vegetables will ruin their livelihoods. Sparked by the decision of fast-food chain McDonald's to buy potatoes from New Zealand, Tasmania's vegetable farmers are being joined by their Australian mainland cousins in a campaign to persuade Australian supermarket chains and consumers to resist the temptation to buy cheaper vegetables from countries such as China.

They want clearer labelling on packaging, so consumers know whether they are buying Australian produce. They reckon consumers will know that Australian-produced vegetables are fresh and safe - with the implication that Chinese vegetables might not be.

Michael Badcock, chairman of Ausveg - the peak lobbying group for the Australian vegetable industry - said in April that if Australia signs a free-trade agreement with China, 'vegetable growers stood to lose A$500 million [$2.88 billion] a year and 5,000 jobs'. Last month, he demanded strict labelling guidelines and stringent quality and environmental regulations for Chinese imports, in line with those covering Australian produce.

But Mr Badcock and his fellow Australian vegetable growers seem to be ignoring three vital facts about the Chinese vegetable market.

First, China is quickly running out of arable land on which to grow vegetables. Therefore, its capacity to export vegetables and feed its growing population is restricted.

Second, as Chinese move into towns and cities they are forced to buy vegetables, as they can no longer grow them any more. As one leading American agricultural research institute said last year: 'Strong economic gains have left millions of Chinese consumers clamouring to improve their diets.'

The US trade magazine Agexporter has noted: 'Demand for high-quality foods has increased dramatically [in China]. Consumers are more concerned with food safety and quality. Organic or 'green' produce is gaining in popularity, as are western foods, spurring demand for western vegetables.'

Finally, although Chinese agricultural practices often rely on pesticides and chemicals to a degree that will ensure their produce fails to meet Australia's stringent quarantine requirements, sustainable agriculture is emerging in that country. This is due both to China's accession to the World Trade Organisation and its increasingly discerning consumers.

The reality of life for Australia's vegetable farmers is that Australian supermarket chains, food companies such as McDonald's and vegetable processors like the US giant Simplot will acquire their produce from anywhere and everywhere. That is, as long as it meets their production and quality standards, and their consumers have a taste for it. As the consistency and quality of Chinese vegetables improves, they will be bought by these companies as part of their global sourcing.

Unlike their European and even US counterparts, Australia's vegetable farmers do not get government subsidies. But to turn now to protectionist solutions in the face of the emerging force of China in world agriculture would provide false hope to people like the farming communities of Tasmania's northwest coast.

Greg Barns is a political commentator in Australia and a former Australian government adviser

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