Voluntary Report - public distribution

**Date:** 3/8/2006

**GAIN Report Number:** AS6013

AS6013

**Australia**

**Agricultural Situation**

**The Corish Report: Agriculture & Food Policy for the Next Generation**

**2006**

**Approved by:**

![](media/image1.wmf)Kathleen Wainio, Agricultural Counselor

U.S. Embassy

**Prepared by:**

Kathleen Wainio, Agricultural Counselor

**Report Highlights:**

The recently released Corish report on future directions for Australian
agriculture proposes progressive and far-reaching actions on
international trade, biotechnology, and quarantine. The report
recommends a greater focus on innovation, cutting regulatory red tape
and more effective supply chains.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Canberra \[AS1\]

\[AS\]

On February 16, 2006, The Agriculture and Food Policy Reference Group
released its report, "Creating Our Future: Agriculture and Food Policy
for the Next Generation". Agriculture Minister McGauran commissioned the
report in March 2005 to help guide the development of future directions
in Australian agricultural policies. The reference group was chaired by
National Farmers' Federation President Peter Corish, and the report is
referred to as 'The Corish Report.'

The Corish Report findings affect governments at all levels, as well as
industry, and cover matters as diverse as trade, biotechnology, natural
resources, transport, quarantine and biosecurity. It also examines the
sector's capacity to adapt to change and remain competitive. Generally,
the Corish Report is optimistic about the sector's future, but warns
that there are major challenges ahead.

**Report Highlights:**

**International Markets**: Because Australia exports about two-thirds of
its farm output, it must maintain an ambitious approach to trade reform
in the WTO. Australia should pursue FTAs that cover all trade, including
agriculture, if they are consistent with its WTO objectives.

**Biotechnology**: The report calls for an immediate lifting of the
state moratoria on biotechnology as Australia's competitive advantages
are threatened by limited adoption of the technology. The report cites
North American research to develop GM wheat that emulates Australian
prime hard wheat, a major export to Asian markets.

**Quarantine and Biosecurity**: The import risk assessment (IRA) process
should be streamlined to improve confidence in the system, minimize
delays and relieve pressure on quarantine arrangements.

**Market Dynamics**: Competition regulation and enforcement must keep
pace with developments in the agriculture sector. The report notes that
the phasing out of statutory marketing arrangements has given more
responsibility and choice to farmers who can now respond to increasingly
complex market demands. Good market information and entrepreneurial
skills are essential to make the most of this greater flexibility.

**Research and Development:** Investment in R&D is crucial to generate
innovation in the agriculture sector.

**Labor, Supply, Education and Training**: To address the labor
shortage, report proposes training, improved employment conditions and
management practices, consideration of the concept of guest
workers---but any major changes to Australia's longstanding migration
policies must be analyzed carefully.

The entire report is available at the following websites:

<http://www.agfoodgroup.gov.au/next_generation.html>

<http://www.agfoodgroup.gov.au/publications.html>

**Recent Reports from FAS/Canberra**

The reports listed below can all be downloaded from the FAS website at:
<http://www.fas.usda.gov/scriptsw/AttacheRep/default.asp>.

  ---------- --------------------------------------------------- ----------
  **Report   **Title of Report**                                 **Date**
  Number**                                                       

  5035       Export Promotion Programs Annual                    11/07/05

  5036       Dairy Annual                                        11/10/05

  5037       Dried Fruit Annual                                  11/10/05

  5038       Country of Origin Labeling Changes Accepted         11/21/05

  5039       Calcium Fortification of Beverages, Soups &         11/21/05
             Biscuits Allowed                                    

  5040       Australia Free Of PMWS, Invites Government Contacts 11/21/05
             to Comment                                          

  5041       Australian Federal Court Ends Pork Legal Challenge  11/21/05

  5042       Citrus Annual                                       11/23/05

  5043       Cotton Quarterly Update                             11/29/05

  5044       Australia Issues Draft IRA Report for Apples from   12/02/05
             New Zealand                                         

  5045       Top Food Trends in Australia                        12/05/05

  5046       Nutrition & Health Claims Draft Standard Issued for 12/08/05
             Comment                                             

  5047       New Glycemic Index Food Label System                12/08/05

  5048       New Country of Origin Labeling Standard Becomes Law 12/08/05

  5049       Australia Prepares for Return of U.S. Beef to Japan 12/15/05

  5050       Grain Quarterly Update                              12/16/05

  5051       Cotton Outlook 2006/07                              12/21/05

  6001       Fresh Deciduous Fruit Annual                        12/28/05

  6002       Ag DownUnder, Issue 1                               01/13/06

  6003       Health Claims & Sugar Content of Fresh Fruit        01/24/06

  6004       Livestock Semi Annual                               02/08/06

  6005       Fine Food 2006 Trade Show -- Australia              01/27/06

  6006       Ag DownUnder Vol. 2                                 01/27/06

  6007       Comment Period for Proposed Health Claims Standard  02/06/06
             Extended                                            

  6008       Tree Nuts Annual                                    02/09/06

  6009       Ag DownUnder Vol. 3                                 02/15/06

  6010       Cotton Quarterly Update                             02/24/06

  6011       Comment Sought on Feasibility of Extending Country  02/28/06
             of Origin Labeling                                  

  6012       Biosecurity Australia Begins Assessment of U.S.     03/08/06
             Stone Fruit for Import                              
  ---------- --------------------------------------------------- ----------