Category: Agri Labour

• The Trans-Pacific Partnership agreement (TPP-11) signed in Chile on 8 March.
• TPP-11 will give Australian farmers improved access to markets with a combined GDP of $13.7 trillion.
• Will work with Australian agricultural industries to deliver new technical market access opportunities presented by the TPP-11.

 

Australian producers will have new and better access to markets with a combined GDP of $13.7 trillion including three of our top 10 agricultural trade markets—Japan, Vietnam and New Zealand.

The signing of the TPP-11 would provide preferential access for more than $5.5 billion of Australia’s dutiable agricultural exports.

Minister for Agriculture and Water Resources David Littleproud said the trade deal would have an immediate benefit for exporters and create brand new opportunities into two new markets – Canada and Mexico.

“This is the world’s largest ever regional trade agreement, creating huge opportunities for our beef, sheep, dairy, sugar, wool, wine and horticulture producers in current and new markets,” Minister Littleproud said.

“My department is supporting industry’s efforts to improve sheep meat export arrangements to Mexico, to capitalise on Mexico’s elimination of tariffs on sheep meat within 8 years of entry into force.

“Into Japan Australia is seeking to regain access for blueberries and improve market access for other horticulture commodities, including mangoes.

“Work is ongoing to establish technical market access for Australian beef exports to Peru to take advantage of market access outcomes from both the TPP-11 and the Peru-Australia Free Trade Agreement.

The Agreement will eliminate more than 98 percent of tariffs in the free trade area. Highlights include:

• new reductions in Japan’s tariffs on beef (Australian exports worth $2.1 billion in 2016-17);
• new access for dairy products into Japan, Canada and Mexico, including the elimination of a range of cheese tariffs into Japan covering over $100 million of trade;
• new sugar access into the Japanese, Canadian and Mexican markets;
• tariff reductions and new access for Australian cereals and grains exporters into Japan, including new access for rice products into Japan for the first time in 20 years;
• elimination of all tariffs on sheepmeat, cotton and wool; and
• elimination of tariffs on seafood, horticulture and wine.

“TPP-11 countries include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, creating a regional free trade area that links the Americas and Asia.

“Last year Australia exported around $12 billion worth of agricultural goods to the TPP-11 countries, so this is a real game changer with huge potential.”

Fast Facts:

• The TPP-11 was signed by Minister for Trade, Tourism and Investment on 8 March in Chile.
• Australia exported around $12 billion worth of agricultural goods to TPP-11 countries in FY2016-17, representing close to 23 per cent of total exports of these products.
• Since 1 January 2016 the Department of Agriculture and Water Resources has secured approximately 122 technical market access gains across a broad range of markets and commodities. This includes 54 for new market access, 11 restored, 43 improved and 14 maintained. This includes restoring access for cherries into Vietnam and new access for breeder sheep and goats to Canada.

 

Download official media release here

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Please find below the latest media release from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). Previous media releases can be read on the ABARES and the Department of Agriculture and Water Resources websites.

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Media release –
Late boost to winter crop production

Favourable seasonal conditions in spring and early summer have resulted in the 2017-18 winter crop harvest exceeding expectations in some key growing regions of Western Australia, Victoria and South Australia.

ABARES Executive Director, Dr Steve Hatfield-Dodds, said that in contrast, production in Queensland and New South Wales is likely to be lower than the December 2017 ABARES crop forecast.

“Total winter crop production is estimated to have decreased by 36 per cent to 37.8 million tonnes in 2017-18, but with the late season boost to production it looks likely to remain 6 per cent above the ten-year average to 2015-16,” Dr Hatfield-Dodds said.

“For the major crops overall, wheat production is estimated to have decreased by 38 per cent to 21.2 million tonnes, barley by 33 per cent to 8.9 million tonnes and canola by 15 per cent to 3.7 million tonnes.

“Amongst other crops, chickpea production is estimated to have decreased by 49 per cent to one million tonnes, and oats production by 40 per cent to 1.1 million tonnes.”

Below average rainfall and above average temperatures over summer have dented expectations for dryland crop production in 2017-18.

“Unfavourable weather conditions through the hottest months of the year prompted farmers to reconsider their crop planting strategies, which will result in less dryland crop area than anticipated and lower yields,” Dr Hatfield-Dodds said.

“The area planted to cotton in 2017-18 fell by around 10 per cent to 500,000 hectares, while the area planted to rice is estimated to have decreased by 2 per cent to 80,000 hectares.

“Around 501,000 hectares have been dedicated to grain sorghum plantings over summer-an increase of 26 per cent on the 2016-17 figure. Grain sorghum production is forecast to increase by 44 per cent to around 1.5 million tonnes.

“Planting of summer crops is now largely complete, and planted area is estimated to have increased by two per cent to 1.3 million hectares.

“Summer crop production is forecast to increase by 12 per cent in 2017-18 to around 4.3 million tonnes.”

See the full February crop report here: www.agriculture.gov.au/crop-report.

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Agri Labour Australia has become one of the first Australian companies to secure a place on the StaffSure registry as a certified workforce service provider.

One of only a handful of firms to have made it into the registry so far, Agri Labour Australia submitted to a full audit of its business practices to ensure everything was up to StaffSure standards.

StaffSure is a proactive and industry-led initiative which rewards those firms who have invested in systems and processes to protect clients and workers.

This certification makes it simple for business, government and workers to check that Workforce Service Providers (such as labour hire companies and agricultural recruitment firms) are reputable and adhere to strict codes of conduct.

Certification by StaffSure will also reduce joint-liability risk for business and government that engage certified providers.

StaffSure was developed by RCSA to help operators prove their business integrity when providing workforce services for the agriculture industry. As the peak body, RCSA knew that the problem of poor business practice was wider than traditional ‘labour hire’ and that a scheme was needed to validate all forms of workforce services.

In developing StaffSure, RCSA worked in consultation with industries that use Workforce Service Providers, regulatory government bodies, unions that employ workers and certification experts with global experience.

To become certified, Agri Labour Australia was required to submit to an independent audit against the StaffSure Standard of these six core principles:

1. Fit & Proper Persons own and run the business
2. Work Status & Remuneration to ensure workers receive minimum employment Entitlements
3. Financial Assurance to operate the business sustainably
4. Safe Work for all workers
5. Immigration and visa laws are complied with
6. Accommodation supplied by employers or clients is suitable and rent is fair

Of the firms who made it through the certification process, StaffSure chief executive officer Charles Cameron says: “Through your leadership and belief, we have taken a massive step forward in cleaning up our industry and in the promotion of professionals.” 

Agri Labour Australia recognised at the Telstra Business Awards.

This week was a proud week for Agri Labour Australia. We are officially a Queensland finalist in the Telstra Business Awards Small Business category. For the past 25 years, the awards have recognised, rewarded and empowered Australia’s best SMEs and more recently, charities.

The awards recognise that it takes something special to set up and sustain a business like ours and we couldn’t be more thrilled with our nomination.

Judges were no doubt impressed by the idea of a recruitment consultancy that is tailored to Australia’s agriculture industry, which historically has experienced a labour shortfall.

Another deciding factor may have been Agri Labour Australia’s unique point of difference. That is, our founders’ deep understanding of how farm projects operate and our knowledge of the diverse and ever-changing recruitment needs of rural Australia.

Given the Telstra Business Awards’ recent focus on corporate social responsibility (CSR), what may have also helped secure our nomination is the Agri Veterans program – a runaway success that benefits both the community and our economy.

Our demonstrated creativity and innovation will hopefully get Agri Labour Australia over the line this year! We were a finalist once before in 2015 and this time we’re confident that the final judging panel will be impressed by our persistence and resilience in overcoming obstacles.

CASEY BROWN SAYS:

“We’re incredibly proud to be a finalist for the second time but not at all surprised. This goes to show that Agri Labour Australia is continuing to make great strides and wow the industry. Judges are clearly impressed by how our niche recruitment and HR consultancy solves workforce problems for farmers and other agricultural employers, providing the industry with a steady stream of casual, seasonal and permanent employees.”

Stay tuned for the winner’s announcement later this month and keep updated on Twitter @TelstraAwards #telstrabizawards

The highly politicised, emotionally charged concept of ‘Big foreign conglomerates buying up our land and putting Aussie farmers out of business’ is certainly nothing new – but is it true? For many years, the reality has been somewhat obscured.

Depending on which political party is dominating the conversation, the stats and facts tend to be presented differently.

As far as the general public goes, we really didn’t know who owned Australia’s agricultural land. We knew that some land was controlled by ‘foreign’ interests, but their origin and purpose was unclear.

Between July 2015 and June 2016, the ATO compiled the first Register of Foreign Ownership of Agricultural Land. While authorities are unable to disclose personal details and identities of owners, they can tell us about nationalities. Here’s a region-by-region breakdown:

What proportion of land is held by foreign interests?

As you can see, the percentage varies substantially depending on where you are in Australia.

The figures are relatively high in sparsely-populated areas such as The Northern Territory and Tasmania, and comparatively low in New South Wales and Victoria.

 

Where are the foreign owners from?

Here is a visual representation of the Top 10 foreign owners by country. At a glance, it’s clear that UK foreign interests are by far the most prevalent, followed distantly by the USA, the Netherlands, Singapore, China and others. This may come as a surprise to some, but there you have it. We didn’t realise Jersey was a major player!

What are they using the land for?

In regards to what this foreign-owned land is producing, for the vast majority, the answer is livestock. Crops and forestry are other recorded purposed.

Officials say that Annual Reports from the Register will now be compiled each financial year, allowing us to see how these figures changes. Watch this space.

It’s all over bar the shouting, and 2015 will go down in history as a big year for landmark FTAs – one signalling unprecedented access to the biggest consumer market on Earth.

We wouldn’t go so far to say it’s been a victory across the board for Australian agriculture, but June’s Australia-China Free Trade Agreement (ChaFTA for short) and October’s Trans-Pacific Partnership (TPP) are set to usher in a new era of prosperity and growth in many key sectors. It looks likely that agriculture’s great white hope, sugar, will stay where it is for now, but who knows what the future will hold?

China-Australia Free Trade Agreement

After 10 years and much negotiation, ancient trade barriers finally buckled when then-PM Tony Abbott and China’s commerce minister Gao Hucheng signed on the dotted line in Canberra.

Demand for food in middle-class China is off the charts and Australia has the means to feed them. The only thing in the way were tariffs. Big ones. ChAFTA goes a long way to opening up the market for agriculture and processed foods, with equal or better access to China than any other FTA partner. Tariffs on some exports will be reduced by up to 30%. Let’s take a look at what’s going down and by how much:

And the winners are:

Beef: tariffs of 12-25 per cent will be wiped out within 9 years of entry into force.
Dairy: all tariffs (currently up to 20 per cent) will be eliminated within 4-11 years. *Translation: we predict big things for infant formula (Aussie brands are in hot demand in China) and ice cream in particular.
Horticulture: tariffs of up to 30% on fruit, vegetables and nuts will be eliminated, most within 4 years. *Translation: macadamias, almonds, walnuts and pistachios will shed their 10-25% tariff. The 11-30% tariff on oranges, mandarins, lemons and all other citrus fruits will also be peeled off.
Sheep and goat meat: tariffs of 12-23 per cent will be gone within 8 years.
Pork: all tariffs (up to 20 per cent) will be scratched within 4 years.
Hides and skins: tariffs of 5-14 per cent will be eliminated within 2-7 years.
Wine and spirits: in four years, tariffs of 14-20 per cent on wine and up to 65 per cent on alcoholic beverages and spirits will be a thing of the past. *Translation: wine imports are booming in China, which could well be a boon for our esteemed Aussie winemakers.
Seafood: tariffs on all seafood exports will be eliminated within 4 years. Including tariffs of up to 15% on fresh abalone and rock lobster within 4 years.
Honourable mentions: barley and sorghum, a range of processed foods and wool also secured victories.

Better luck next time:

Hopes were high, but no inroads were made for sugar or rice growers. The chairman of Canegrowers Queensland told news.com.au: “It’s disappointing given that it’s a huge market. We only wanted to fill in the gap between their domestic production and consumption, but we didn’t gain much traction except a framework for further reviews.”

Trans-Pacific Partnership (TPP)

Eight years of debate was finally put to bed last month when 12 Pacific Rim nations signed the biggest free-trade agreement in history, covering 40% of the global economy. We now have agreements in place with countries where previously there were none – Peru, Mexico and Canada. What does this mean for agriculture? Thousands of tariffs will be removed. Not quite as many as hoped, but nothing to be sniffed at.

And the winners are:

Dairy: The TPP clinched victories for Aussie cheese – the deal spells the end of tariffs on some products and paves the way for tariff reductions and new quota allocations for others.
Grains: The TPP will create new quota volumes for wheat and barley exports to Japan (worth approximately $481 million in 2014). Tariffs on exports of Australian wheat and barley will be no more, and the TPP also means new quota access for roasted malt exports.
Rice: It was a no-go zone in ChaFTA, but the TPP will see a new 6000-tonne quota access to Japan, plus reduced tariffs on rice preparation products, plus an amendment to the WTO quota of an extra 60,000 tonnes of medium grain rice for processing use.
Wool and cotton: All remaining tariffs on Australian raw wool and cotton exports to TPP countries will be removed. The TPP will also deliver improved rules of origin for textiles, potentially upping demand for Australian fibre products.

Better luck next time:

Dairy: They say it’s best to shoot for the Moon, but some were disappointed in the dairy deal – saying it failed to live up to its full potential of total tariff elimination.

Did you know?

Australia currently has 9 FTAs up and running and 7 more under discussion

*NB: ChaFTA’s status is ‘signed’ and TPP’s is ‘negotiations concluded’.

Rural employers and Working Holiday Visa holders are concerned about proposed Working Holiday Visa income tax changes. 

Proposed changes to the income tax rules for the Working Holiday Visa (WHV) announced in the last Federal Budget sparked outcry among both Working Holiday Visa holders and the sectors who employ them the most – Tourism and Agriculture.

As the 1st of July 2016 approaches, we outline the changes, the expected effects, and the potential outlook for rural employers.

THE CHANGES: A SUMMARY

No more tax-free threshold

Previously, backpackers who were residents for tax purposes (they lived and worked in Australia for more than 183 days) weren’t required to pay tax for the first $18,200 they earned.

Higher tax rates

Once they’d earned $18,200 or more, they paid 19 cents on every dollar above this figure, following standard resident-status tax rules. If the proposed changes are passed, from 1st July 2016 they will be paying 32.5 cents from the very first dollar they earn.

No more resident status

Because they will be taxed as non-residents regardless of how long they stay, backpackers will no longer benefit from trying to reach the 183-day requirement.

WHAT WORKING HOLIDAY VISA MAKERS CURRENTLY CONTRIBUTE

As noted by ATEC Managing Director Peter Shelley and others, backpackers visiting Australia on 417 visas spend $13,000 during their time here. Annually, this equates to around $2.6 billion in economic injection.

These working holidaymakers also provide much-needed labour to remote Australia, particularly to the agricultural and hospitality sectors.

Thanks in no small part to the 88-day rural requirement (to qualify for a second year on their visa, they must do at least this much rural work), backpackers have proven to be an appreciated source of motivated labour for the rural, hospitality and tourism sectors.

THE DEBATE

The response to these tax changes – from both the public and the stakeholders – has been largely pessimistic.

That’s not to say that the potential contributions from working holidaymakers won’t contribute much-needed tax dollars, but many still see the changes as a short-term solution with long-term ramifications.

Tourism & Transport Forum CEO Margy Osmond called the move a “backward step” and an “own goal”, saying it would “damage Australia’s international reputation.”

The general sentiment elsewhere is similar, with many commenters and even politicians complaining that this policy is effectively penalising backpackers for not being residents.

Some have called the proposal a short-sighted money grab that doesn’t consider the long-term detriment to Australia’s international appeal as a working holiday destination.

We must note that 417 visa holders are working holidaymakers – not just workers. The idea of the visa is to enable them to supplement their travel funds while experiencing Australia. While some suggest that taxing them at a non-resident rate is simply a reflection of the fact that they are indeed visitors, others suggest that it will impact their desire to come to Australia in the first place.

The actual effects of this policy change remain to be seen – and with a new treasurer now in office, who knows if things will revert to the way they previously were.

THE IMPACT ON RURAL AUSTRALIA

As mentioned before, the 88-day requirement has been a boon to the agricultural industry.

We are lucky to live in a country where travellers are so in love with it that they will happily spend three months (or more) living out in remote areas, performing often difficult and strenuous work.

Along with the ongoing exodus of working-age Australians from rural areas, these travellers have helped to revitalise rural communities while offering affordable labour to our understaffed agricultural producers.

It has been suggested that a reduction in these WHV staff will cause a reduction in labour availability, which will in turn impact farmers and farming communities.

This theory makes sense on the surface, but we simply won’t know until we get the figures back from Immigration and the ATO next year.

Anecdotal reports do however show that backpacker-focused online forums and social networks immediately latched onto news of the ex-Treasurer’s proposed changes, but again, we can’t comment on the real-world consequences until they occur.

The Agri Labour Australia team are more than aware of the current rural labour shortage, so it concerns us when things like this come up. But that doesn’t mean there are no solutions.

No matter what happens in the halls of Canberra, we will continue to work on and develop new opportunities and alternatives for remedying the agricultural labour shortage.

From field deployment to farm employment: The Agri Veterans Program

As you may be aware, Agri Labour Australia has recently partnered with veteran-run charity Walking Wounded to help place returned military personnel in agricultural careers.

Through the Agri Veterans Program, our mutual aim is to help ex-Defence Force members make the transition back to civilian life, and to provide a framework on which to build not just a job, but a new career, purpose and path.

The benefit for returning troops comes in the form of stable, rewarding employment opportunities that match their existing skill sets. And for the agricultural industry, it means a source of skilled and dedicated staff helping to counteract the ever-worsening labour shortage.

More than just a job

At the core of the Agri Veteran Program is the idea that the majority of ex-ADF jobseekers don’t just want a job – they want a career with a sense of purpose.

Every time we speak to a veteran, one thing comes through loud and clear: the transition back to civilian life is tough on many levels – especially when looking for employment.

When you factor in physical and psychological wounds, it is clear that some careers are more suitable than others.

It occurred to us that agriculture fit the bill better than many other options. Farming could provide veterans with real-life career opportunities in peaceful surroundings and with a sense of purpose.

Embracing rehabilitation

It is a sad fact that some veterans suffer disadvantages – especially when looking for work – due to the stigmas attached to the physical and psychological traumas they may have suffered during and after their deployments.

It’s therefore important to place ex-service people in roles with understanding employers who are willing to help them through the difficulties they may be experiencing. This is central to Walking Wounded’s purpose as an organisation, and with a recruitment company like Agri Labour Australia by its side, it can better achieve this goal.

Regional Australia – a perfect environment?

When we talk about finding appropriate employment for our ex-military jobseekers, it is clear that regional Australia is well suited in many ways.

Upon their return from service, the majority of ADF personnel remain in the towns and cities where their barracks are located. Feedback suggests that this isn’t an ideal situation as the pace of the city life is difficult to adjust to on return from deployment.

Regional and rural areas, on the other hand, offer a tranquillity and sense of community that is lacking in built-up areas; the peace and community spirit of the country makes it a nice place to be, and the outdoor lifestyle appears to fit many veterans well.

Giving veterans the opportunity to live, work and build a life in regional Australia is therefore a logical solution to their employment concerns.

The only thing to do now is to find them rural jobs that match their skills. Fortunately, this isn’t an issue.

Matching skills with opportunities and openings

Agriculture and related industries offer a wide range of appropriate jobs that closely match veterans’ existing skills.

From un-skilled and semi-skilled roles to technical and supervisory positions, agriculture features a large number of opportunities that veterans can almost walk straight into.

These roles could include machinery operation and maintenance, logistics and transport, livestock, storage & handling, among others. Ex-military personnel are already familiar with deadlines, discipline, checks and balances, teamwork, shared goals, and so on – all of which make them a fitting choice for rural employers.

The good news for farmers is that this solves a problem that has been plaguing them for years: the labour shortage.

The continuing exodus of rural youth to the cities and mines has caused a drought of skills and manpower that our troops are perfect to fill, whether their background is in engineering or electronics.

Agri Labour Australia has therefore decided to team up with Walking Wounded to identify jobseekers, match them to appropriate roles, and help them on the path to a new life and career in the country.

We hope that this initiative will help to breathe new life into our agricultural industry while giving new opportunity to our returned soldiers.

Get involved with the Agri Veteran Program

Employers – If you’re an employer who would like to know more about the Agri Veteran Program, please get in touch with us on 1800 247 823

Veterans – For more information on the program, please contact one of our recruitment specialists on 1300 247 823, or for other support please get in touch with Walking Wounded on 0432 398 827.