CHANGES to export cost recovery arrangements announced by the federal Department of Agriculture, Fisheries and Forestry (DAFF) have been questioned by industry.
President of the National Farmers’ Federation (an entity close to the Liberal Party) Hamish McIntyre said the changes announced in the mid-year economic forecast could hurt agricultural competitiveness.
In a document published on 12 December entitled Enabling agricultural exports into the future, DAFF announced several changes.
These included a new cost recovery arrangement for export regulatory services from 1 July 2026, with a phased transition to full cost recovery over a three-year period.
The package also proposes certain regulatory activities currently undertaken to be moved to cost recovery, including some activities allowing DAFF to regulate agricultural exports to China.
The government is also providing $48.7 million to supplement a revenue gap in seven export arrangements.
Mr McIntyre said Australian agriculture exported 80% of the food and fibre it produced, so any hit to their international competitiveness across value chains had a direct impact on the sector’s productivity.
“This trade delivers public good not just into regional communities, but to the entire nation,” he said.
“It is imperative that the principles of equity and fairness are embedded into cost recovery frameworks both for the entire sector, and between agricultural industries.
“The costs of any changes, proposed to roll out over the course of the next three years, will most likely be passed onto producers.”
Mr McIntyre said while export regulatory activities were essential for trade, supply chain participants reported export service functions were “often inefficient, complex and cumbersome to comply with and have not adopted contemporary regulatory technology”.
NFF members have also expressed concerns about export cost recovery frameworks used to support the broader departmental cost base.
“The department must improve the underlying efficiency and effectiveness of export services it intends to fully cost recover from industry, ensuring they are fit for purpose,” he said.
“Meaningful and responsive consultation will be of the utmost importance as the proposed changes are implemented.”