FEDERAL Agriculture Minister Joe Ludwig has reiterated the growing importance of Australia’s wool trade with China while attending a roundtable discussion with industry representatives in Shanghai last week.
The discussion was held with members of the Chinese wool industry as part of the Minister’s visit to China from December 7 to 10.
The Minister also toured Japan for several days before visiting the Republic of Korea, as part of bilateral talks on agricultural trade.
China is a critical market for Australian wool imports, with up to 50 per cent consumed domestically within China.
Wool remains Australia’s largest exported agricultural commodity with exports to China valued at $2.24 billion in 2010-11, or around 43pc of the total Australian agricultural, fisheries and forestry exports to China.
In China, Minister Ludwig witnessed Australian wool being processed at a plant owned by South Australian company Michell, one of Australia’s largest exporters of Australian wool fibre. The company's $10 million state-of-the-art facility is located in Suzhou, Jiangsu province.
The province is a major producer of textiles and importer of Australian wool and home to the Nanjing Wool Market.
Senator Ludwig said the Australia-China trade relationship was very important to Australia’s agriculture, fisheries and forestry industries and has brought enormous benefit to both Australian and Chinese consumers.
"I want to thank the Australian Wool Innovation (AWI) for organising this event in Shanghai," he said.
"Participants were able to engage on key issues and opportunities for the wool industry and discuss the needs of our trading partners.
"Australian wool provides the raw material to support China’s textile industry, employing a large number of Chinese workers, whose garments are exported to the world and increasingly consumed in China.
"Australia and China have a long history of co-operating on wool through delegation exchanges.
"(We) would like to further enhance this co-operation with strong partnerships, such as those AWI has with Chinese trade and agricultural organisations."
AWI chief Stuart McCullough said participants in the roundtable discussion broadly represented the Chinese supply chain and retail sectors.
"In this part of the world actions speak louder than words and a visit by the Minister demonstrated great commitment and support for the wool industry," he said.
Senator Ludwig also met with China’s Minister of the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), Zhi Shuping, during talks in Beijing where he signed several protocol agreements for the importation of Australian products.
"I would like to acknowledge Minister Zhi Shuping and his efforts to see these important protocols finalised," he said.
"The agreements will continue to facilitate Australian wheat and barley imports into China and enable Chinese producers to access genetic material from Australian cattle, in order to diversify livestock bloodlines.
"These protocols recognise Australia’s clean and green credentials including our favourable pest and disease status, such as having tuberculosis-free cattle.
"This visit and our ongoing relationship with China has direct benefits for Australian farmers."
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