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Non-tariff barrier on Australian dairy items goes .


Date: 09-03-2009
Subject: Non-tariff barrier on Australian dairy items goes
Australian cheese brands such as ‘Bega’ and ‘King Island’ may soon be seen on Indian shelves, with the Union Government doing away with a requirement banning use of artificial oestrogens (female sex hormones) in cows. 

The requirement has been viewed by the Australian dairy industry as a non-tariff barrier translating into a virtual ban on exports to India since 2003, when it was first put in place. 

“We have received an official communication from your Government that the requirement (which entails declaration by exporters that the milk processed by them is not sourced from oestrogen-injected animals) will no longer be necessary,” said Mr Mark Schipp, General Manager at the Australian Quarantine and Inspection Service (AQIS). 

Re-open market 

The decision would basically re-open the Indian market for Australian dairy products. “This will be a great opportunity for the industry at a time when our dairy producers have been going through a difficult period arising from falling farm-gate prices. We are quite excited,” the Australian Minister for Agriculture, Fisheries and Forestry, Mr Tony Burke, told Indian presspersons on a Australian Department of Foreign Affairs and Trade-sponsored visit. 

Synthetic oestrogens 

Australian farmers use synthetic oestrogens (in addition to what is naturally produced in the body) mainly to induce heat in cows so as to synchronise their breeding. These enable the farmers to control the timing of pregnancy of the animals, making it easier to regulate their feeding and milk production regime. 

“It took us detailed negotiations to convince them (the Indian side) that the oestrogen injected in cattle does not turn up in the milk and it cannot be detected at all in quarantine inspections. At the same time, obtaining certification of no-oestrogen use raises transaction costs for our exporters,” Mr Schipp said. 

Specific products 

Prior to the requirement being imposed, Australia used to export dairy products (mainly milk powder and lactose) annually worth around $6 million. 

“We are not interested in bulk commodities such as milk powder and butter oil. Our focus would be more at speciality cheeses, caseins and dairy protein extracts targeting the high-end segment,” said Mr Paul Morris, Executive Manager at the Department of Agriculture, Fisheries and Forestry. 

Mangoes, grapes 

He said Australia, from its side, is willing to open up the market for Indian mangoes and table grapes. 

“There are issues relating to pests such as fruit fly and seed weevils in Indian mangoes, which your Government has proposed to tackle through irradiation similar to what it has done for shipments to the US. 

Source : The  Hindu



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