Chapter 3 Agriculture, Water and the Environment

3.1

This chapter considers the key issues discussed during the hearings for the Agriculture, Water and the Environment portfolio on 26 and 27 May 2021.

3.2

The committee heard from divisions of the Department of Agriculture, Water and the Environment (the department) and portfolio agencies in the following order:

Corporate Matters Divisions (Corporate and Business Services; Finance; Information Services; Legal; and People);

Outcome Three Divisions (Agricultural Policy; AGVET Chemicals, Fisheries, Forestry and Engagement; Climate Adaption and Resilience; Drought and Bushfire Response; Trade, Market Access ad International; Portfolio Strategy; Australian Bureau of Agricultural and Resource Economics and Sciences; and Water);

Outcome Four Divisions (Biosecurity Animal; Biosecurity Plant; Compliance; Biosecurity Operations; Biosecurity Strategy and Reform; Exports and Veterinary Services; Plant and Live Animal Exports; and Trade Reform/Digital Trade Initiatives);

Inspector-General of Biosecurity;

Australian Livestock Export Corporation (Livecorp);

Meat and Livestock Australia Limited;

Australian Meat Processor Corporation;

Australian Wool Innovation;

Regional Investment Corporation;

Cotton Research and Development Corporation;

Wine Australia;

Horticulture Innovation Australia;

Australian Pesticides and Veterinary Medicines Authority; and

Dairy Australia.

Corporate Matters

3.3

Mr Andrew Metcalfe AO, Secretary of the Department of Agriculture, Water and the Environment, read a short statement detailing output of Australia's agricultural sector, challenges in international trading, and strengthening of biosecurity systems.1

3.4

Topics discussed with the Corporate Matters Divisions include:

the development of the department’s reconciliation action plan;

the Northern Australia Quarantine Strategy and the role of indigenous ranger groups in biosecurity; and

agenda items discussed during meetings of the Agriculture Ministers Forum.2

Outcome Three

3.5

Topics discussed with divisions under Outcome Three include:

the mouse plague in New South Wales, Queensland, Victoria, and
South Australia including eradication methods, the prospect of the plague reaching suburban Sydney via road and train transport, and briefings between the department and the Minister;

water infrastructure commitments in Tasmania;

funding and role of AgAttract and related programs;

development of the national poultry standards and guidelines;

national standards for livestock welfare;

the federal court judgement regarding logging in possum habitats;

agricultural workforce challenges and programs;

the delivery of the Food Waste for Healthy Soils Fund;

opportunities for cotton growing in the Northern Territory;

progress of the National Fisheries Plan;

programs funded by the Future Drought Fund;

allocation of funding to the Agricultural Stewardship package; and

the National Soil Information System.3

Outcome Four

3.6

Topics discussed with divisions under Outcome Four include:

the national framework for pests and diseases, particularly the Weeds of National Significance List and the Management of Established Pests and Diseases of National Significance;

yellow crazy ant outbreak in North Queensland;

progress on the establishment of a national horse traceability register;

the reopening of live trade with Saudi Arabia;

the fire ant eradication program;

the spread of ehrlichiosis – a disease spread via ticks affecting dogs – in the Northern Territory and Northern Western Australia; and

the effect of the American foulbrood disease on bees and honey.4

Inspector-General of Biosecurity

3.7

Mr Rob Delane, Inspector-General of Biosecurity, gave a short statement detailing a number reviews conducted by the Inspector-General, recommendations made, and potential weaknesses in Australia's biosecurity systems.5

Australian Livestock Export Corporation (LiveCorp)

3.8

Mr Troy Setter, Chairman, Australian Livestock Export Corporation Limited, gave a brief opening statement detailing some activities and challenges faced by the agency since previous hearings including:

the effect of the COVID pandemic on international markets and resulting uncertainty of trade and prices;

attendance at the annual Beef Week event in Rockhampton; and

participation in the regulatory roundtable with the federal government to enact cost recovery measures.6

3.9

The committee received an update on the activities of the corporation since previous hearings including:

research on dehumidification and inter-vessel connectivity to bring real-time condition updates from decks to vets and stockpeople;

value and volume of live animal exports;

effects of quarantine arrangements and border closures on live transports; and

studies on livestock stocking density.7

Meat and Livestock Australia

3.10

Topics discussed with Meat and Livestock Australia include:

research and marketing spend by the agency;

the status of internationally based staff with respect to the COVID pandemic;

the agencies presence and representation at international trade shows;

effects of trade disruption with China on the red meat industry;

PFAS contamination in red meat;

possible increases in red meat exports resulting from Australia and
United Kingdom and Australia and European Union free trade agreements; and

the development of National Vendor Declarations by Integrity Systems Company.8

Australian Meat Processor Corporation

3.11

Topics discussed with the Australian Meat Processor Corporation include:

research and development projects to attract and retain workers, particularly due to border closures; and

the development of new safety measures for meat processors.9

Australian Wool Innovation

3.12

Mr Stuart McCullough, Chief Executive Officer, Australian Wool Innovation, gave an opening statement providing an overview of the agencies operations including:

an increase in wool production from previous years;

a reduction in staffing and marketing due to a drop in revenue;

both on-farm and off-farm research projects, particularly the merino lifetime productivity project; and

the challenge of relying on the Chinese market for 90 per cent of exports.10

3.13

Topics canvassed with Australian Wool Innovation include:

the nomination process in the lead up to the most recent board election;

changes to the board charter;

the inclusion of North Korea in the emerging markets strategy;

other emerging opportunities in Vietnam, Bangladesh, Laos, and Cambodia;

feasibility studies for wool processing within Australia; and

consultation on, and uptake of, the WoolQ program.11

Regional Investment Corporation

3.14

The committee sought information from the Regional Investment Corporation on:

the definition of primary producer for the purpose of access to loans;

loans for new plantation developments to aid bushfire recovery; and

loan processing times.12

Cotton Research and Development Corporation

3.15

The committee heard details of the challenges and highlights of the agency including:

the effect of trade disruptions with China on cotton producers;

worker shortages due to border closures; and

research projects into cotton farming in the Northern Territory.13

Wine Australia

3.16

Discussion with Wine Australia flowed from answers to questions taken on notice at previous estimates hearings, particularly the following topics:

the growth of exports to the UK during the previous year;

the steep decline of exports to China as a result of tariffs;

effects of climate change on wine production; and

reduction of foreign workers in the industry due to border closures.14

Horticulture Innovation Australia

3.17

Topics discussed with Horticulture Innovation Australia include:

quantifying the gap between horticultural labour supply and demand;

initiatives to support the horticulture industry across research and development and stakeholder engagement;

effectiveness of the Good Mood Food campaign; and

the director nomination process.15

Australian Pesticides and Veterinary Medicines Authority

3.18

Topics discussed with the Australian Pesticides and Veterinary Medicines Authority include:

development of baits to control the ongoing mouse plague;

permit application for the use of bromadiolone to combat mice infestation;

application approval timelines for autogenous vaccine permits; and

the use of sodium fluoroacetate in the wet tropics region in
Northern Australia.16

Dairy Australia

3.19

Mr James Mann, Chair, Dairy Australia, gave a short opening statement detailing improved farmgate milk prices, labour shortages on dairy farms, and the launch of a new five-year strategic plan and climate change strategy.17

3.20

Topics discussed with Dairy Australia include:

research and development activities to increase dairy production;

total spending on marketing activities;

the decision, made along with Australian Dairy Farmers and the
Australian Dairy Products Federation, not to establish a single
whole-of-industry national dairy federation; and

research into reducing nitrates as a cost saving measure and to reduce pollution.18

1

Proof Hansard, 26 May 2021, pp. 5–6.
2

Proof Hansard, 26 May 2021, pp. 6–11.
3

Proof Hansard, 26 May 2021, pp. 12–61.
4

Proof Hansard, 26 May 2021, pp. 62–93.
5

Proof Hansard, 26 May 2021, pp. 93–94.
6

Proof Hansard, 27 May 2021, pp. 5–6.
7

Proof Hansard, 27 May 2021, pp. 6–14.
8

Proof Hansard, 27 May 2021, pp. 14–29.
9

Proof Hansard, 27 May 2021, pp. 29–32.
10

Proof Hansard, 27 May 2021, p. 33.
11

Proof Hansard, 27 May 2021, pp. 33–46.
12

Proof Hansard, 27 May 2021, pp. 46–55.
13

Proof Hansard, 27 May 2021, pp. 55–63.
14

Proof Hansard, 27 May 2021, pp. 63–66.
15

Proof Hansard, 27 May 2021, pp. 66–73.
16

Proof Hansard, 27 May 2021, pp. 73–84.
17

Proof Hansard, 27 May 2021, p. 85.
18

Proof Hansard, 27 May 2021, pp. 86–96.

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