Tasmanian Abalone Council Sub Council Meetings September 2014 - - PowerPoint PPT Presentation

Tasmanian Abalone Council

Sub Council Meetings September 2014

Abalone Royalty Negotiations – New Deed Holders

• New Abalone Deed was introduced in 2005
• New Abalone Deed holders currently pay 8.125% in royalty to the Government
• This is by far the highest level of royalty paid by any marine resource user in

Tasmania

• By comparison with other sectors:
• Abalone – 8.125%

($7 million on a GVP of $85 million)

• Rock Lobster – 4.8%

($3.1 million on a GVP of $65 million)

• Salmon Farms – 0.1%

($450 000 on a GVP of $450 million)

• The Abalone industry pays a much higher level of Marine Resources (MR) revenue

compared to other sectors:

• Abalone pays 61% of DPIPWE MR revenue
• Rock Lobster pays 27%
• Salmon pays a mere 4%
• The Tasmanian abalone industry is negotiating to achieve at flat 5% royalty – this

is still higher than any other sector!

• In WA, all marine resources users pay a flat 5% - this was introduced by Norman

Moore MHA in 2009 – a much fairer system!

New Liberal Government have agreed to bring on the necessary Legislative amendment during 2014 to reduce the abalone royalty for New Deed Holders from 8.125% to 7% commencing January 1 2015. Further discussions re additional reductions to 5% with the objective of achieving this during the current term of Government. 6% by January 2016 5% by January 2017

STAG – Past, Present and Future

Members of the STAG

The Seafood Trade Advisory Group (STAG) was established to create a unified platform for representing the China trade related interests of Abalone and Rock Lobster exporters. The primary objective of the group was “to advocate for the liberalisation and development of the direct trading relationship between Australia and China.” Formation of the group increased industry credibility in the eyes of government demonstrating internal cohesion and a commitment to professional government relations. Importantly the STAG membership is made up of significant commercial players from the Abalone and Rock Lobster industries, assuring government information provided by the STAG is informed by ‘on the ground’ experience and market understanding.

Crisis in the Industry

Challenges Description Credibility The reputation of the industry had suffered due to misunderstandings incurred during representation to government across the 2010 Chinese restriction of the HK grey trade Unity Government and department representatives indicated that a strong working relationship with the industry was challenged by the absence of a single representative body providing industry input on key trade issues Communicatio n Political engagement was addressed in an ‘ad hoc’ fashion by those members of industry with existing government relations. This led to inconsistent messaging. Evidence In the absence of a representative platform to promote the trade interests of the industries no formal research had been conducted to substantiate the needs for liberalisation of the trade – nor had the channels of communications been created to disseminate this research

• State Based Approach for Industry Representation (For Market & Trade Access Issues)

Crisis in the Industry

• Opportunity Existed to unite Abalone and Rock Lobster Industries.

Seafood CRC already working with Abalone Industry Abalone Industry United/Working Together Both Industries Share Common Issues

Industry Snap Shot

The Australian Abalone and Rock Lobster industries contribute in excess of $1.25 billion in gross domestic product The industries support an estimated 8500 jobs in regional and coastal communities across Australia’s southern states Abalone and Rock Lobster are Australia’s most valuable edible fisheries exports The combined value (FOB)

• f Australian

Abalone and Rock Lobster contributes approximately $632 million to the nation’s export earnings The industries have invested

• ver $5

million in cash commitments and in kind contributions

• ver the past

five years to strengthen the direct China trade

Government engagement

KEY KEY MESSA ESSAGES GES FO FOR IN INDUSTR USTRY ST STAKEHO KEHOLDER LDERS

The industries have a plan to strengthen the direct trade Industry is committed to work with the Australian and Chinese governments to facilitate, support and expand the legitimate direct trade platform for Australian Abalone and Rock Lobster into China. The Abalone and Rock Lobster industries have come together to form the Seafood Trade Advisory Group to present a unified front to government. The industries meet the highest standards of Australian accreditation (DAFF, EPBC) and are committed to building a set of reliable industry benchmarks for standards and integrity (“trustworthiness”) e.g. Australian Wild Abalone (AWA), SRL Clean and Green and Marine Stewardship Council Certification (MSC).

2:

• Expand government

Government engagement

KEY KEY MESSA ESSAGES GES FO FOR IN INDUSTR USTRY ST STAKEHO KEHOLDER LDERS

The industries have a plan to strengthen the direct trade The industries are building the foundations for long term results for all food industries in Australia and China. The industries have made over $5 million in cash commitments and in kind contributions over the past 5 years in strengthening the direct China trade We are unable to protect product integrity, pursue our provenance labelling and ‘Brand Australia’ efforts because we cannot track or control our products beyond the entry point under an indirect trade.

2:

• Expand government

FTA South Korea

Trans-Pacific Partnership (TPP)

• There are currently 12 parties

negotiating the TPP, five of which are among Australia's top 10 trading partners (Japan – 2, United States – 3, Singapore – 5, New Zealand – 7, Malaysia – 9).

• South Korea have formally

expressed an interest in joining the TPP.

• STAG submission lodged

STAG’s Position – “It is our wish to reduce and eventually entirely eliminate the customs duties of Korea for all Australian seafood products, including Abalone. As the negotiations on Australia-Korea FTA have been concluded, we hope that the TPP negotiations will ensure that further liberalisation

• ccurs”.

Economic Partnership Agreement - Japan

Australia – China FTA Update

5 - 8th May

Canberra 20th Round of Negotiations

Australia China FTA

A comprehensive FTA that reduces tariffs to zero would increase the value of the Abalone and Rock Lobster direct trade to Mainland China from $30.4 million to approximately $600 million. The industries represented by the STAG support the completion of a Free Trade Agreement between Australia and China that reduces tariffs on Abalone and Rock Lobster products to zero per cent.

Tariff reduction will also result in:

Increased competitiveness for Australian product directly traded into mainland China Increased certainty and transparency for Australian exporters directly trading with mainland buyers with legal recourse for trade disagreements and access to normal terms of trade Increased demand and market share for exporters able to promote and build brands based on Australian provenance and traceable food quality, sustainability and health standards Increased prices through unlocking new demand from currently inaccessible food and beverage customers in 2nd and 3rd tier cities

Barriers to Trade

• Australian Abalone and Rock Lobster are taxed with an average 15% tariff and 13% VAT when

entering mainland China directly.

High duties

• Australia’s major competitors, New Zealand and Chile both have free trade agreements with China.
• As a result their Abalone and Rock Lobster industry’s are advantaged in the market

Free trading competition

• The existence of grey channels into the Chinese market weakens the competitiveness of Australian

Abalone and Rock Lobster product exported directly to Mainland China.

• Chinese importers give preference to grey channel product as the duties levied on Australian direct

exports often render these shipments price prohibitive.

Grey trading competition

• STAG monitoring indicates that Beijing customs times are significantly behind the global standard

clearance period of 4 hours, and also behind the time achieved by Shanghai customs authorities.

• The average customs clearance time across Shanghai and Beijing is 6 hours. In Shanghai the

average is 4 hours, Beijing is 8 hours.

Customs clearance delays

• The non-listing of SO2 for canned abalone acts as a trade barrier to Australian shipments of

preserved Abalone that risk being impounded by Chinese customs for non-compliance.

Sulphur Dioxide

FTA Outcome objectives

2014

AWA™ Program Journey

Stage 1 2009 -2011 Research, trial and evaluate market opportunities Stage 2 - 2012 Develop Supply Chain Education Program Develop TMA Agenda

Stage 3 2013- 2014

Conduct Supply Chain Seminars Action TMA Agenda

2013/14 AWA EVENTS IN CHINA AND HONG KONG

IMPORTER BRIEFINGS

2013 - Hong Kong, Shanghai, Beijing, Shenzhen / 2014 – Hong Kong revisited 40 Foundation Participants joined the program in 2013 Gathering market intel and consumer information about consumers

AWA™ LAUNCH EVENTS

2013/2014 - Hong Kong & Shanghai 150+ attendees – importers, chefs, F&B purchasers and Chinese and Australian media Key Opinion Leaders – Chefs and Ministerial Key Speakers Shanghai Launch part of Australia Week In China – Government Trade mission Showcasing AWA™ exporters and products and product attributes

CHEFS WORKSHOPS

2014 Hong Kong Hosted by Master Chef Chan Tak Po for 40 top chefs from top restaurants and 5* hotels & food and Beverage media Focused on preparation and cooking of frozen and canned product, gathered useful feedback about purchasing trends and preferred products

• 105 events
• 700 Australian delegates
• 2,400 Chinese guests from

multiple sectors

• Media reaction in China

has been phenomenal

Will Hodgman Premier of Tasmania Bruce Billson Federal Minister for Small Business

MEDIA REPORT橄榄餐厅

评论合作方案

• ver AUD$270,000

Since November 2013

Targeted Food and Beverage media with additional F&B media posting and blogging online!…and Australian media coverage

MEDIA AND RESOURCE LIBRARY

4200 hits since January! No 1. Location – Australia No 7. China (123 hits)

WEBSITE

Videos available on YouTube, Facebook and our website

AWA™ PRODUCT LITERATURE AND EDUCATIONAL TOOLS

AWA™ Brochure and display folders

Meet the AWA™ Exporters (Multilingual)

AWA™ Product Information Sheets – Preparation Guidelines (multilingual)

Event Materials – co-branded

(Multilingual)

Exporter Banners

CHEFS GALLERY AND AWA™ AMBASSADORS

Australian Wild Abalone™ Chef Ambassadors and recipe library

Master Chef Chan Tak Po Hong Kong Executive Sous Chef Pasquo King Shanghai

Australian Wild Abalone™ Chef Ambassadors and recipe library

“Possibly the best Abalone I ever tasted!” Chef Terrance Crandall Shanghai Chef Sun Zhou

Fusion menu – Four Seasons Hotel

Shanghai Launch – fusion menu Executive Sous Chef Pasquo King and Steven Zheng

Hong Kong Chef Workshop Master Chef Chan Tak Po

China Cuisine Association partnership

• Peak Catering Industry Body in China
• CCA and AWA Memorandum of Understanding signed in Shanghai in April 2014
• Important resource and gateway to top chefs and restaurants in China

AWA MERCHANDISE DEVELOPMENT

Ready for our data collection station ‘pop-up shop’ style in Shanghai

• The Rules have now been finalised by the Exec

Committee…

• …and submitted to the ACCC
• A members application form has been developed

and supporting documents for new members

• The AWA website will be developed to include a

‘become a member’ page and members pages where they can access AWA resources and materials

Why invest in Marketing and STAG My how things have changed………… 1999 - Tasmania produced 25% of total annual global production of abalone 15 years later………. 2014 – Tasmania produces 2% of total annual global production Austerity measures in China Stubborn strength of AUD Tariff and non tariff trade barriers

Funding for the Australian Wild Abalone™ ceases in July 2015

• Marketing Levy required to maintain AWA™ Program
• Business Case currently being developed for presentation to

industry

• 6Th National Convention proposed 1.5% of GVP to roll out

AWA™ Program across China, Hong Kong, Japan, Singapore & Taiwan

• $290 per unit or 53 cents per Kilogram is currently

equivalent to 1.5% GVP

• 5 units - $1450 per annum
• 10 units - $2900 per annum
• 20 units - $5800 per annum
• 30 units - $8700 per annum