ISPM15 Taiwan

Please be advised that Taiwan Authorities will adopt strictly the ISPM15 regulations,
since 01-Jan-2009 (Cargo Arrival Date). In case the relevant certificates are not obtained
prior to Customs declaration, it is possible for the goods not to be cleared, to be rejected
for entry by Customs or to result in extra charges. Attached announcement is for your
reference.

Importance of Bell Bay Infrastructure

The proposed expansion of the Bell Bay Port was a vital step in ensuring Tasmania’s transport system met the challenges of the future
The project to increase the size of the working port through a 8.38 hectare deepwater reclamation, will remove an infrastructure bottleneck for Tasmania’s import and export dependent industries.
The Minister for Infrastructure, Graeme Sturges, said that the project was critical in ensuring that the State was able to deal with a forecast substantial increase in container transport, maximising the use of rail and easing pressure on other parts of the transport system.
The expanded area will be used as a as a staging and operational area for container traffic which is presently experiencing a 5.5 percent market increase each year. While growth is expected to slow, increases will continue with container traffic through the port forecast to double by 2023.
“This is well beyond the existing capacity of Tasmania’s Ports,” Mr Sturges said.
“The long term strategy is to consolidate container traffic at Devonport and Bell with the highest growth at Bell Bay. This in turn will free up space at Burnie Port for bulk exports particularly mining exports from the West Coast.”
Mr Sturges said the nomination of the project as one which was deserving of greater investigation reinforced the importance of taking a strategic approach to infrastructure development in the State.
“The focus of the State’s submission to Infrastructure Australia was on critical projects which would unlock constraints in its transport system to deliver real benefits in terms of national productivity,” Mr Sturges said
“That means addressing export limitations and improving freight efficiency along the key national supply chains of the North, South and West Coast of Tasmania
“The State Government understands the importance of infrastructure investment in the State and will continue to support its commitments, election promises and large-scale infrastructure projects.
“This reflects our commitment to doing what we have promised to do – and our desire to keep stimulating the local economy.
“We will continue to work closely with the Australian Government to provide further detailed analysis to allow this and the other priorities to be further assessed.
The Tasmanian Government’s submission to Infrastructure Australia is available at www.dier.tas.gov.au.

China issues new standards for freight forwarders

CHINA has issued five sets of standards for the domestics freight forwarding industry governing service procedures, quality, terms and conditions, statistical survey conduction, freight forwarder qualifications and assessment criteria.
The standards were drafted by China International Freight Forwarders Association and approved by the Chinese Ministry of Commerce. Sinotrans, China Shipping and Sinosteel Corporation participated in the drafting.
The standards are said to secure fast and healthy development of the domestic freight forwarding industry by providing guidelines for government's policy making and regulation.
Another five sets of standards are also on the way to be issued on manifest and documentation, documentation coding approach, information and data exchange and risk assessment. The drafting of these standards is expected to be done in next year and will facilitate the establishment of a public freight forwarding information portal.
The Ministry of Commerce has also given green light to the foundation of a committee that monitors implementation of these technical standards.

With Yangshan purchase, Shanghai poised to beat Singapore

SHANGHAI International Port Group is buying part of the new Yangshan container dock and thus threatens Singapore's No 1 spot as the busiest container port in the world.
News of the acquisition from Tongsheng Investment Group, a one-third owner, pending approval from shareholders, came in a statement to the Shanghai Stock Exchange, and will add 1.15 million TEU capacity in 2009 and 1.3 million TEU in 2010.
The port operator is to sell CNY3.7 billion (US$540 million) in one-year bonds to fund the acquisition from Shanghai Tongsheng Investment, but the overall sale price is as yet undisclosed, reports Bloomberg News.
Such an acquisition is predicted to have Shanghai container volumes surpass Singapore's, with the addition of Phase 3 section likely to produce net income of CNY43 million over two years, said Shanghai Port in the report.
Shanghai growth, according to the municipal statistics bureau over the last 10 months, has dropped to 8.7 per cent, likely a 12 per cent growth overall, down from 20.5 per cent growth in the full year 2007 when throughput hit 23.9 million TEU.

Judge delays declaratory judgment on legality of clean trucks scheme

A US JUDGE has declined to provide a declaratory judgment on the legality of the California ports' clean truck programme until hearing more arguments, thus leaving its provisions in place, reports Newark-based Traffic World.
"It's not an easy issue," said US District Judge Richard Leon. "There is a lot of complexity to it."
Judge Leon dashed hopes of the Federal Maritime Commission (FMC) that believes that the demands of the clean truck programme through Los Angeles and Long Beach unlawfully interfere with legal trade and, therefore are ultra vires.
The two ports affected have delayed collection of a US$35 per TEU tax from trucks built before 2007, but FMC attorney Benjamin Trogdon said truckers already are seeing the impact on competition and costs to shippers will rise.
"The shippers have begun to shift, to look for operators that have compliant trucks," he said. "There has been evidence of irreparable harm to the country" as shippers act to avoid coming fees.
Judge Leon has set December 17 as the date for lawyers to file responses to legal arguments made by FMC, rather than issuing or denying an immediate injunction.
The programme also denies access to owner-operators of trucks to the ports in favour of employee-drivers of certified motor carriers as the Teamsters union has demanded. The FMC case wants to scrap those provisions and stop subsidies for truck purchases as well as exemptions for some truckers at the ports.
But Port and City of Los Angeles lawyer Steven Rosenthal said there was no evidence of a change in the marketplace or in competition. "It's been two months and there have been no problems, no evidence of people going out of business, no parade of horribles. Life is proceeding normally." "And the environment is getting cleaner," the judge added in the report.

300,000 TEU laid up, more to follow in the New Year

SOME 135 purpose-built containerships, totalling 300,000 TEU, are believed to be laid up, according to the latest Alphaliner count on December 8, up from around 270,000 TEU two weeks ago and 150,000 TEU six weeks ago.
This is 2.5 per cent of the world cellular fleet. Ninety of them are charter market vessels awaiting service with 16 in the 5,000-7,500 TEU class, 11 in the 3,000-4,000 TEU class, 20 in the 2,000-3,000 TEU class, 60 in the 1,000-2,000 TEU class and 30 ships in the 500-1,000 TEU class.
Laid up ship numbers will increase in coming weeks, as vessels are put at anchor or in semi-lay up as they terminate rotations, said Paris-based Alphaliner News.
With the closure of further services this month and next, the latest round of lay-ups to come has become known when Maersk announced the laying up of eight ships in the 6,500 TEU class.
Alphaliner also said most of the ships had been recently removed from the Far East-Mexico-Centram AC-2 service and replaced by 8,200-9,600 TEU ships, further to the merger of this service with the AC-1. The ships involved are in the enhanced 6,500 TEU class with a nominal intake of 7,250 TEU, four of which are idle in Hong Kong and Korea while two others are ending their rotations and likely head for lay up.

Los Angeles cargo volume to drop 20-30pc in first quarter: report

THE US Port of Los Angeles cargo is expected to fall 20 to 30 per cent in the first quarter of 2009 based on feedback from customers, said the Cunningham Report which specialises in transport and maritime affairs.
It noted that business at one Los Angeles container terminal had fallen by 50 per cent compared to last year.
The bleak forecast follows recent announcements by Maersk Line, the port's greatest revenue earner, that it will scrap one of its services to Los Angeles due to a new vessel-sharing agreement with CMA-CGM that comes into effect in May. This is a blow for the port given that nearly its seven container terminals reportedly generate 80 per cent of its income.
As a result of the weak US economy, the report said the port will reduce spending in the current fiscal year by more than US$20.5 million.

Dutch boxship's speed foils rare pirate attack off Tanzania

A CONTAINERSHIP suffered a rare pirate attack off the African coast, and put out a fire on board ignited by a rocket propelled grenade, but outran the pirates, as high-speed, high-decked boxships usually do, an International Maritime Bureau official told CNN.
The attack on the Dutch-operated ship was also rare because it happened far to the south, off the Tanzanian coast, 500 miles out to sea, well beyond the range of pirates preying on slower, lower tankers and bulk carriers in the Gulf of Aden as they steam to or from the Red Sea.
American Shipper said the attack is evidence that pirates are expanding their zone of operation, first off the East Coast of Somalia, and now south off Kenya and Tanzania.
Ironically, a Danish warship rescued seven suspected pirates adrift with a broken motor on their speedboat. The Danish crew provided provisions, confiscated their RPGs and AK-47s, and sank their speedboat after picking them up 90 miles off Yemen, but did not arrest them.
The Danish Navy said it did not make arrests because the men were not caught in an act of piracy. The Somali men were instead handed over to the Yemeni coast guard.

Guangdong delays stringent labour law, lets cities make rules

FACTORIES in the Pearl Delta do not need to meet the rigorous demands of the new PRC Employment Contract Law after the Guangdong provincial government decided put off province-wide implementation, reports Hong Kong legal journal China Law & Practice.
Instead, provincial authorities will allow the cities facing the global economic downturn, Shenzhen and Dongguan among them, to issue their own labour rules in such a way as not to deter business or increase costs which have risen sharply.
After an unspecified trial period, Guangdong said it will consider issuing provincial regulations, said the legal journal. Guangdong manufacturers have welcomed the move because strict implementation risks higher costs, which if passed on, will discourage exports.
"By allowing cities to continue to apply existing rules, the Guangdong government aims to at least help enterprises to pass their critical economic difficulties," said, Fangda Partners attorney Jay Chen.
The national Implementing Regulations for the PRC Employment Contract Law were issued September 18. Thus far, only Guangdong has made an official announcement regarding implementation.

Top China researcher sees newbuilding orders fall 60pc in '09

NEWBUILDING orders in China will fall 60 per cent in 2009 as prices drop 30 per cent from their 2010 high, says Beijing's China Shipbuilding Economy Research Centre's chief analyst Bao Zhangjing.
Mr Bao told the Asia Ship Finance and Leasing Forum in Shanghai that he saw a modest recovery in 2011 when shipyards would start to reload capacity, but said that would not start before 2012 when orders returned to a 100 million deadweight ton level. "Owners will not order as long as they believe prices will fall further," he said, adding that orders have already dropped 14 million tons in August to less than 1 million in November, and will again drop 60 per cent next year from this year's 150 million tons. He expected a continued decline in 2010 to 50 million tons.

Panama Canal Authority takes bids for dry excavation project

THE Panama Canal Authority (ACP) says it has officially received a total of six bids for the third out of four dry excavation contracts to be awarded under its Canal Expansion Programme.
The next step now is to review the submissions with a view to determining a winner of the contract before the end of this month, in order to move ahead with the next phase of expansion works, which "remains on track," according to a statement issued by the ACP.
The scope of work for this latest dry excavation contract is said to encompass the excavation, removal and disposal of 8 million cubic metres of material, which will further reduce Paraiso (Paradise) Hill from 46 metres to 27.5 metres above sea level.
It also calls for the construction of approximately 2.5 kilometres of access and the clearing of 190 hectares of land bearing munitions and explosives of consideration (MEC), remnants from former US military training in Panama.
When all four of the dry excavation contracts are completed, the works would have created a "critical" access channel linking the new Pacific locks with the Canal's existing Gaillard Cut, which is the narrowest stretch of the Panama Canal.
Similar to the first and second dry excavation projects, the third contract will be awarded to the firm with the lowest-priced bid that meets all of the requirements stated in the request for proposals.
"With the prices offered today by the bidders for this contract, the Canal's expansion programme remains on-track and on-budget," said executive vice president of Engineering and Programme Management Jorge Quijano.
"The third dry excavation contract is an essential intermediate step in the creation of the Pacific access channel, and we are pleased with the interest shown by the competing companies. We look forward to reviewing the documentation of the winning bid and welcoming another partner to the Canal Expansion Programme."
Ultimately, the expansion project will build a new lane of traffic along the Panama Canal through the construction of a new set of locks to double capacity and allow access to more traffic and longer, wider ships.

MOL resumes independently-operated service to Southampton

THE arrival of the 8,100-TEU MOL Cosmos at the UK Port of Southampton has marked a return of MOL-owned vessels calling at the port after a break of several months. In the interim period, MOL had been offering services into Southampton in partnership with The New World Alliance carriers.
The MOL Cosmos is currently operating on the Japanese shipping line's South China Express Service that also makes stops at the ports of Zeebrugge, Hamburg and Rotterdam before heading back to the Far East via the Suez Canal, as the vessel is too large to transit the Panama Canal.
"We are delighted to welcome the captain and crew of the MOL Cosmos on her maiden call to DP World Southampton. As one of our oldest customers, I am especially pleased to welcome MOL back to the terminal and we look forward to servicing MOL ships in Southampton for many years to come," said Campbell Mason, managing director of DP World Southampton, in a company statement from the terminal operator.

Long Beach and LA ports give green light to projects

LA and Long Beach port officials are giving the green light to US$2 billion plus valued-projects in the belief that it will result in economic stimulus despite cargo slowdown and unemployment increases, reports Los Angeles Times.
"After years of robust growth, we have a chance to take a breath and concentrate on some infrastructure projects," said Richard Steinke, executive director of the Port of Long Beach. "We can stimulate economic growth, put people back to work and position ourselves for the turnaround."
There is high resistance to Geraldine Knatz the executive director of the Port of LA's plan for a new cruise terminal at its Outer Harbour said to create 7,300 direct jobs and 17,700 indirect construction-related ones, and 438 permanent jobs over the five to seven year building period.
With union dockworkers scrabbling about for work as many cargo ships go idle and more join the unemployment queue the timing is a point of contention. Latest figures for eleven months of 2008 show a drop of 5 per cent to 7.3 million TEU at Port of LA, and 6 million TEU at Long Beach, a 10 per cent decrease. Rate cuts to less than $600 per FEU from highs of $3,400 in 2007 shows a picture of an industry in retrenchment.
The tourist sector say that the location of the 1960s facility makes for entrance only in reverse and an unglamorous arrival with its view of an industrial port scene and its attendant grime and fumes. Latest figures from Cruise Lines International Association rank Los Angeles fourth with a meek 6 per cent in cruise embarkations share.
"People have this image of how their ship will arrive in port, the wind in your hair, streamers flying, maybe a bottle of champagne, and here in Los Angeles you arrive creeping along in reverse. It's pretty hard to put your best face forward that way," said Judy Parker, VP for Worldview Travel, a travel agency based in California, Florida and New York.
Long Beach plan to combine its two existing terminals in a 10 year, US$750-million investment plan with green initiatives to combat the pollution problems by electric grids for vessels and a switch-off rule for diesel engines.
Port officials long term vision is in light of the ports ability to be prepared for an upturn and to avoid a 2004 'boom' situation when vessels were queuing up and unable to unload cargo, added the report.

Consumers want brand clarity

By Adam Stephen

Organic consumers want a simple labelling system for produce.Currently there's no uniform label for organic produce, and consumers are confronted with different labels depending on which company certified the product.An Organic Federation of Australia commissioned Newspoll survey found over 70 per cent of regular buyers just want to see the words 'certified organic' on the produce.OFA chairman André Leu says the industry needs to take on the advice. "Everywhere where it's been put in, for instance when Germany did it, organic sales skyrocketed. In the USA they just have one logo and the same thing has happened there. What happens is, when consumers know one logo, it makes it very easy for them to have confidence in the product that this product is a genuine certified organic product."
In this report: OFA chairman André Leu

Transport industry tax to hit farmers and possibly consumers

By Mary Goode

Any extra money farmers are saving with cheaper fuel could be eroded by a new trucking tax.It's called the Interstate Road Transport Charge Amendment Bill .It's passed through Parliament, and will mean truck owners will pay an extra one-point-three cents a litre, or around 15-thousand dollars a year. It's effectively a tax increase from 19 cents to 21 cents a litre.And while it doesn't sound much, with the large amount of kilometres truckies do, those extra cents soon add up.Luke Fraser from the Australian Livestock Transporters Association says it's a good tax - because it'll mean better roads and more efficient travel.He says the pay day has come for our regional and rural roads.Mr Fraser says while this will mean more money for roads - the costs will be passed on to the customers - which in rural areas will mostly be farmers.But the question is - will producers be stuck with those costs or can they pass them on to the consumer?Greg Brown from the Cattle Council of Australia says farmers won't be able to pass on the costs, because farmers are price takers and not price setters.He says it's not in farmers' power to change that.John Cummings is chairman of the National Association of Retail Grocers of Australia .He says the tax must be passed on, because farmers can't be expected to foot another bill. Mr Cummings believes it could help push meat prices up 10 to 15 per cent, that's including the price hikes that farmers are already experiencing."No doubt, there is no doubt that in Australia, the producer is the least who can afford any increase in costs," he says."So we would assume that these must in the end be passed on to consumers."
In this report: Luke Fraser, Australian Livestock Transporters Association; Greg Brown, Cattle Council of Australia; John Cummings, National Association of Retail Grocers of Australia

Extended research effort for Tasmania's wine

By Cameron Wilson

Making Tasmania's sparkling wine and Pinot Noir even better will be the aim of the newly established Tasmanian base for the Australian Wine Research Institute (AWRI).It's an exciting time for the local industry, with Tasmania chosen above other Australian regions for the first expansion of the South Australian based AWRI.Dr Bob Dambergs has relocated to oversee the new research projects including dry red table wines, the viticulture and wine making of sparkling wines, engineering design for new spray technology and cheaper alternatives to oak maturation.Tasmania is already renowned as a premium producer of sparkling and Pinot Noir, but Bob Dambergs says the research will build on those strengths."There is a bit of a grape glut on the mainland at the moment but the sort of wines that are produced in Tasmania are still in demand, and Tasmania really specialises in Pinot Noir and sparkling wines, and that's really the focus of the research projects we'll be undertaking here.""My vision would be to see Tasmania as the Australian equivalent of Champagne in France for sparkling wines, and the equivalent of Burgundy for dry red Pinot Noir."
In this report: Dr Bob Dambergs, Australian Wine Research Institute.

ABARE downgrades export earning forecasts

Monday, 15/12/2008
Australia's earnings from commodity exports will take a hit in 2009, thanks to the global financial crisis.In its latest estimate, the Australian Bureau of Agricultural and Resource Economics says earnings will be around $192 billion.That's $22 billion less than in September.ABARE chief commodity analyst Jammie Penm said export earnings are now forecast to be $192 billion for the next financial year."This is a downward revision from what we forecast in September this year. The forecast then was $214 billion, but naturally due to the global financial crisis it's been revised down," he said.Crop earnings are forecast to increase by 18 per cent to $15 billion. However, export earnings from livestock and livestock products will decline by 3 per cent to $14 billion.Minerals and energy exports have also been revised downwards. From the $180 billion figure in September, ABARE now estimates earnings will be $159 billion.
In this report: ABARE chief commodity analyst Jammie Penm

AQIS and Biosecurity to merge

By Mary Goode
Thursday, 18/12/2008
AQIS and Biosecurity Australia will merge as part of a major overhaul to Australia's biosecurity system.It's one of 84 recommendations from the Beale review of Australia's quarantine system, released by the Federal Government.As well, a council of experts will be set up and a new position will be created with the power to investigate whether the department is working well enough.It also recommends replacing the Quarantine Act of 1908 with a new Biosecurity Act.Federal agriculture minister Tony Burke says despite concern from the apple and pear industry a national authority will work well. "Ah what there would be though, and this what the apple and pear industry would want to bear in mind, import risk assessments will be dealt with by a seperate organisation that will be the Biosecurity Standards Commission," he says.The report says Australia's biosecurity agencies are under-funded and suggests the government spend $260m per year, funded by tax payers and business. As well as $225m to upgrade information technology and business systems.Mr Burke says an increase in biosecurity measures will see farmers contribute a bit to that."The cost recovery guidelines would result in that, that's true," he says."It will also result in a bigger contribution from the Commonwealth as well."The NFF says it supports most of the recommendations, but further consultation with industry is vital.The opposition says the overhaul will see exporters stung by an extra $144million over four years.
In this report: Tony Burke, federal agriculture minister.

Nickel slump causes mine closure

Nickel slump causes mine closure
By Sarah Bester

The Avebury Nickel Mine on Tasmania's West Coast is to be closed indefinitely, resulting in the loss of 189 jobs.Oz Minerals has decided to place the mine near Zeehan on "care and maintenance".The closure is due to a drastic drop in the price of nickel of 68 per cent over the past nine months.Terry Long from the Tasmanian Minerals Council says it is a serious blow to the state's industry."It's very significant, it's a new nickel mine with a couple of hundred employees, if anything it was regarded as being the jewel in the crown of the Tasmanian mining industry."So to see it go on to care and maintenance in a disastrous metals climate is quite sobering."
In this report: Terry Long, Tasmanian Minerals Council

Large but late grain harvest

Report: Sally Dakis
The cooler than usual summer has pushed back the start of Tasmania's grain harvest, which despite the devastating October frost, looks like being one of the states bigger harvests.Headers usually start to harvest in the Christmas week, but it's now not due to start for another fortnight.Manager of Ruralco's stock feed, seed and grain division Frank de Bruyn says they are making some contingency plans for additional grain storage in the eventuality of a large crop."There are silo bags used across the country and what we have done is secure access to the silo bag equipment at fairly short notice if we have to, and we could probably utilise the bunker site at Powranna if we have to."A drop in global demand, combined with larger supplies of grain downgraded to feed quality after rain on mainland Australia has depressed prices."Looking at the current pricing on the mainland, we are seeing real reluctance from growers to actually sell their grain, and a lot of grain across the mainland has been warehoused, so they retain ownership of that.That's a fairly uncommon thing in Tasmania, but we are looking at options for that as well for growers."

Business spending up

The Treasurer, Michael Aird, said private new capital expenditure data released today by the Australian Bureau of Statistics was another indication that Tasmania’s long‑term economic fundamentals are sound.
Private new capital expenditure in Tasmania increased by 36.7 per cent in the year to September 2008, to $1.17 billion.
“The Tasmanian increase in private new capital expenditure compares to a national increase of 12.5 per cent over the same period,” Mr Aird said.
“In the year to September 2008, expenditure on buildings and structures increased by $6 million (or 1.9 per cent).
“Expenditure on equipment, plant and machinery increased by $305 million (or 56.5 per cent) over the same period.
“This comes on the back of data released yesterday by the Australian Bureau of Statistics, which showed that the total value of construction work done in Tasmania during the year to September 2008 was a record high $2.06 billion, 5.3 per cent above the level of the previous year.
“Tasmania is not immune to global economic conditions and there will be economic and Budget impacts,” he said.
“But recent data clearly shows the underlying strength of Tasmania’s economy.
“We are well placed to weather the storm

Bunker Reductions

Bunker Surcharge
North East Asia - Import & Export

The regular review of bunker costs has been completed and the decreasing costs of bunker fuel are reflected in the following new levels of Bunker Surcharge to be applied to cargo to and from North East Asia.


Area

20’
40’
Effective date
North East Asia
Import
US$325
US$650
5 December 2008
Taiwan
Import
US$325
US$650
20 December 2008
North East Asia
Export
US$325
US$650
5 December 2008
Taiwan
Export
US$325
US$650
20 December 2008



Yours sincerely,
OOCL (Australia) Pty Ltd.

David Ball
The Environment: We take it personally

New Ta Ann Mill For Tasmania

The Premier, David Bartlett, today officially opened Ta Ann Tasmania’s new mill at Smithton, the second of its rotary peeled veneer mills to be built in Tasmania.
“Timber mills and the families that rely on them for jobs, have been a part of the landscape up here for generations,” Mr Bartlett said.
“It’s an industry that has helped to build the characteristics of the people here – the resilience, the sense of humour, and the strong sense of community.
“A mill is so much more than an economic entity that churns out timber products. It’s a place that provides jobs for Tasmanians.
“It gives new opportunities for people to stay living in their local area to build a career and provides flow-on economic benefits to shops and restaurants and services right around Circular Head. The mill becomes a part of the community.”
The mill will process 150,000 tonnes of eucalypt logs per year, supplied from regrowth forests and plantations in north west Tasmania. Forestry Tasmania has built on the resource security offered by the Regional Forest Agreement, and has signed a twenty-year agreement for log supply.
The two mills cost $75 million to build and have resulted directly in 138 new jobs. They will produce 145,000 cubic metres a year of dried veneer, worth about $35 million per year.
The Premier said that the State Government would continue to support economic growth and investment in value-adding industries in Tasmania.
“Just yesterday, I was pleased to launch the Tasmanian Skills Strategy – a ten-year plan to make sure that Tasmanians have the skills needed to build a decent future for themselves and their families.
“The forest and timber industry is a great example of where the level of skill needed as an employee has grown enormously.
“The Tasmanian forest industry in 2008 is a sophisticated, technologically advanced place in which to work.
“What the Tasmanian Skills Strategy will do is make sure that young Tasmanians in particular are given the tools that will make them attractive to employers like Ta Ann into the future.
“In times of global economic uncertainty and challenge – it’s more important than ever that we encourage investment in Tasmania.
“I welcome Ta Ann’s further investment in the kind of clever, value-added products that will come to dominate Tasmania’s economic future; the jobs that this mill will support here, and the injection it will provide to Tasmania’s broader economy,” Mr Bartlett said.
Further information:
Tasmanian Government Communications UnitPhone: (03) 6233 6573

Christmas Function

Ian Martin and Leaha Dent from

THE LAUNCESTON EXPORT HUB


Invite you to a

Christmas networking night on Wednesday 3 December 5.30 - 7pm

at the Export Hub, Old Launceston Post Office, 68 Cameron St

Tristram Travers, State Manager of Austrade, is back from 3 months in Singapore

and will discuss his experiences of opportunities for exportersin Singapore

RSVP by Nov 28 by return email or by phoning 6331 4183

Warships deploy in the Gulf of Aden as NATO makes war on piracy

THE North Atlantic Treaty Organisation (NATO) has ordered its naval forces to suppress piracy in the Gulf of Aden off the coast of Somalia, said its secretary-general, Jaap de Hoop Scheffer.
The announcement came as the world shipping industry officials pressed the United Nations to provide a resolution that would give international forces the power of arrest, convict and punish pirates, reported Lloyd's List.
"I believe that NATO can and must be a force for stability at sea as we have been on land," said Mr Scheffer.
The move will form part of wider push by the military alliance to re-establish maritime security as one of the core functions of NATO.
NATO will introduce a sophisticated intelligence network to work with the flotilla of frigates already deploying in the Gulf.
Existing naval operations in the Gulf are made up of destroyers from Italy and the United States, frigates from Germany, Greece, Turkey and Britain, and a German auxiliary vessel. The force is afflicted with differing and enervating rules of engagement that have limited their effectiveness.
Mr Scheffer still sees problems facing the new NATO fleet. "Who for instance will pay the price? But given the urgency of preventing lawlessness on the high seas and the need to ensure oil and gas deliveries there is clearly a role for NATO to play," he said.
But the NATO fleet will have a clearer command structure, and Mr Scheffer felt that the new maritime intelligence network would prove useful in tracking pirates using the latest technology.
"It will also allow us to share much more data with our navies and the national authorities in coastal areas," he said.
NATO and the UN's International Maritime Organisation (IMO) are attempting to establish language of the mandate that would establish a legal jurisdiction to arrest and convict and punish pirates.
Lloyd's chairman Lord Peter Levene also met UK's Ministry of Defence officials to discuss the recent piracy surge, which is understood to have cost over US$100 million in ransom payments.
"We hope that the combination of EU and NATO action here can mirror the success of the Malacca Strait, which proved the value of international co-operation," Lord Levene said.

India proposes rail freight service for Bangladesh boxes

INDIA is proposing to launch a rail freight service to Bangladesh for container cargo, just months after the two nations recommenced a direct passenger train service, after suspending the Dhaka-Calcutta route for 43 years.
According to media reports from India, the nation is proposing to operate rail freight service for containers on the Uttar Pradesh-Dhaka route to help reduce transportation costs and reduce transit times, reported the New Age newspaper, quoting the Bangladesh Railway's director general Belayet Hossain.
The proposal is expected to be raised during a two-day meeting of railway officials from both sides in New Delhi in November.
According to comments by unidentified railway officials, India is proposing to send 30 containers per trip from Uttar Pradesh to the inland container depot of Dhaka, and to operate four such trips every month, The Hindu newspaper reported.
Mr Hossain said that Dhaka had already asked New Delhi to provide the design and capacity of the container trains and excess load for the consideration of local engineers.
The officials said New Delhi is proposing that the rail freight service be operated using the same track as the Gede-Darshana route that is currently use by the Maitree Express passenger train between the West Bengal capital and Dhaka.

US regulator takes LA-Beach to court over clean truck tax

THE US Federal Maritime Commission (FMC) and the Ports of Los Angeles and Long Beach will be appearing in the US District Court in Washington on December 5.
This comes after the FMC filed a motion for injunctive relief with the court in a bid to prevent a number of "objectionable" provisions of the ports' clean trucks programme from being implemented.
Collection of the clean-truck fee was originally slated to begin on November 17, however, the imposition of the levy on importers and exporters has been delayed for an undetermined period by the ports amid the row with the FMC, reports the Journal of Commerce Online.
It said the FMC is seeking a preliminary injunction from the court against portions of the clean-truck concession plans that the commission believes will restrict trucking competition and result in an unreasonable increase in freight rates.
In its filing, the FMC is asking the court to block the Port of Los Angeles from taking further action on its requirement that only licensed motor carriers with employee drivers be allowed to operate at the port. Long Beach does not have an employee driver mandate, the report noted.
The commission is also requesting that the court enjoin both ports from establishing truck purchase incentives and subsidies for some motor carriers but not for certain classes of operators.
Similarly the FMC is seeking to prevent the ports from charging clean-truck fees for some operators while also allowing other operators to be exempt from paying these fees.
In response to the FMC's move, the Port of Los Angeles was quoted as saying in the report: "This action further demonstrates the FMC's fundamental misunderstanding of the ports' clean-trucks programme and underscores the inappropriateness of the FMC's attempts to intervene and block programmes that are outside of its expertise or jurisdiction."

Port of Hamburg's box volumes slows to single-digit growth

CONTAINER traffic remains important to the German Port of Hamburg, says its CEO Walter Schulze-Freyburg, in spite of box volume growth slowing to single digit percentages.
Mr Schultze-Freyburg was cited as saying that he hoped the end of the Port's seven straight years of double-digit growth did not mean the port was now about to experience seven lean years, reports outsourced-logistics.com.
The port had benefited in recent years from the fall of the Iron Curtain and Poland's entry to the European Union, as the removal of the Customs border between Germany and Poland had enabled goods to flow more easily between the two traditional trading partners and further east into Russia, the Ukraine and other states within the former eastern Bloc, which had been undergoing rapid economic development until the global financial crisis hit, the report noted.

MOL quits Pacific agreements

Janet Porter, Mike Grinter and Sandra Tsui - Wednesday 29 October 2008
JAPANESE line MOL is quitting two discussion agreements covering the Pacific trades rather than risk legal challenges following the end of conferences in Europe. Mitsui OSK Lines president: Akimitsu Ashida said the company would resign from the Transpacific Stabilization Agreement and the Canada Transpacific Stabilization at the end of November. “With the European Union’s abolition of liner antitrust immunity, it has become extremely difficult to align the business processes of our entire organisation when its regional divisions must operate to differing standards,” Mr Ashida continued. The TSA and CTSA differ from price-setting conferences by not having a common tariff, although they will issue recommended rate increases. Fifteen ocean carriers are members of the TSA which describes itself as research and discussion forum for major container shipping lines serving the trade from Asia to ports and inland points in the US. Almost all the top lines currently belong, with the exception of Maersk that left some time ago and reaffirmed recently that it saw “no value” in membership that was “very time consuming”. Neptune Orient Lines chief executive Ron Widdows is current chairman of the TSA, but is likely to hand over to another senior executive before the end of the year. Some lawyers have warned that membership of the TSA could potentially create legal problems for lines that also serve Europe where conferences were formally outlawed earlier this month, should there be any suspicion that discussions had broadened beyond the Pacific trades. “Having done a thorough analysis of marketplace dynamics and the roles of TSA/CTSA relative to our unique ability to differentiate, we concluded MOL and its customers would be better served by conducting business independently from transpacific liner agreements,” said Masakazu Yakushiji, executive vice president of MOL. MOL has been a member of TSA and CTSA since they were formed 1989, but resigned from the westbound discussion agreements in June 2005. Hiroki Tsujii, manager of strategic planning at MOL, told Lloyd’s List: “At a staff level we are concerned that our Asian based sales team should adhere to one standard. Currently the sales staff in Asia conduct business on trade from Asia to the US and Europe. If they are allowed to consult with other shipping lines when it comes to business to the US the temptation may be there to talk to the same shipping companies over business to Europe.” Some legal experts have warned in the past that even though the TSA covers a trade lane on the other side of the world from Europe, that would not necessarily protect it from scrutiny by Brussels. European Union law applies to any agreement that could be regarded as anti-competitive. TSA lines, all of which have a presence in Europe-Asia and transatlantic trades as well, could find themselves under investigation if information they acquired during the course of a routine meeting about the transpacific trades had a subsequent bearing on behaviour elsewhere in the world. Capacity could be shifted from one route to another, for example, due to what is learned about conditions on the Pacific. A large number of ships have been moved from Pacific to Asia-Europe routes over the past year as one trade lane weakened before the other.
Several other members of the TSA, including Yang Ming Marine, China Shipping, Cosco and Evergreen all told Lloyd’s List that they have no plans to withdraw from TSA at present.

NOL axes 1,000 jobs on grim outlook

By Marcus Hand in Jakarta - Wednesday 19 November 2008
NEPTUNE Orient Lines is axing close to one tenth of its workforce as it describes the outlook for 2009 as “grim” with a prolonged downturn expected.Singapore-headquartered NOL said that in an effort to save costs it was cutting 1,000 jobs, mainly in North America, out of a total global workforce of around 11,000.The company said that the largest impact would be in North America where its cost base is highest. NOL also plans to shift its regional headquarters in North America from Oakland, California, “to a more cost effective location elsewhere in the United States.”It said that the new location and the planned move would be announced in December.There will also be staff cuts in Europe and Asia with around 50 staff losing their jobs at its Singapore headquarters.Most of the lay-offs will be made in what were described “as non-customer facing positions”.“The negative conditions we are seeing in the market place are unprecedented in our industry’s history. This necessitates these very difficult decisions,” said Ron Widdows, NOL president and chief executive.The company described the prospects for profitability in 2009 as “grim” and believes that the sharp market downturn seen over the last 12 months could last for several years.In October NOL announced it was reducing its containership capacity by up to 25% on some trades, laying-up vessels and returning ships to charterers, in an effort to save $200m in operating costs. At the time it also said there would be redundancies but gave no details.“Last month, we initiated capacity reductions which will significantly reduce our vessel network and operating costs. Now, in view of the deteriorating market conditions, we take these additional steps.“This reflects our considered view that what we are seeing goes beyond a normal cyclical downturn,” Mr Widdows said.The move will result in a $33m restructuring charge on NOL’s fourth quarter results and it expects to make further charges in 2009.Last month NOL reported a third quarter net profit of $35m, 82% lower than the corresponding period last year, and warned that it expected an operating loss in the fourth quarter, its first since the fourth quarter of 2002.“Our aim is to ensure a viable future, to shape the company to handle the turbulence ahead and to be positioned for success when the global economy recovers,” Mr Widdows explained.Earlier this month AP Moller-Maersk announced it was cutting 700 jobs in China by mid-2009, closing down two customer service centres.

Suez Canal transits hold up but decline is predicted

By David Osler - Thursday 27 November 2008

Egypt depends on the canal as its third-largest owner of foreign exchange after tourism and remittances from overseas workers.VESSEL numbers through the Suez Canal seem to be holding up well, despite highly publicised decisions by some shipowners to re-route round the Cape of Good Hope, one of Egypt’s leading shipping agents has confirmed. Dan Delaney, manager at the Alexandria office of local Lloyd’s agency network affiliate Marine Technical Services, said that numbers of ships in convoys continued to fluctuate around normal levels. However, he did predict an eventual decrease, probably within the next few weeks. One way or the other, the outcome is of vital economic importance to Egypt, which depends on the canal as its third-largest owner of foreign exchange after tourism and remittances from overseas workers. AP Moller-Maersk, Svitzer, Odfjell and Pacific Carriers are among the companies that have taken the decision to re-route in some circumstances, and a number of shipping industry household names have said that they are considering their position. “You can get one day 18-20 vessels, the next day 45-50. There’s no appreciable difference, and we are going to have to wait at least a few more weeks before we notice a trend,” Mr Delaney commented. “I know some owners are going around the Cape now, and I don’t blame them. I think we will see a drop, but at the moment there is no drop we are noticing sufficient to say yes, this is now a trend.” The picture should be clearer towards the middle or even the end of next month, Mr Delaney suggested. Officials of the Suez Canal Authority have told the media that they are fearful of the impact of continued Somali piracy on canal business. Adel Lami, chairman of Port Said Navigation Chamber, a shipping trade organisation, told Associated Press: “One or two more piracy attacks will just send an alarm, and we will find ourselves with a big problem.”

Worries over GM canola hay

By Will Ockenden
When the first genetically modified canola crops were planted earlier this year in Victoria and New South Wales, farmers would have been hoping for a good crop.But when the rains didn't come, both GM and conventional canola crops failed.Some farmers were forced to bale their crops, turning what was left into hay or silage to recoup losses.There are worries some of that hay, used locally or sent interstate, will contain GM canola seeds that will escape and grow.Alex Schaap is the General Manager of Tasmanian Biosecurity. He says he's surprised the problem started in the first season."If hay is exported, that hay may carry viable seeds. It would cause problems for maintaining GM freedom," he says."It's a bit early to say how much of a problem it will be, but it's something extra for us to look out for at the quarantine barrier."The company responsible for a variety of GM canola is Monsanto. It recently sent a letter to farmers growing GM canola. It said farmers should inform buyers the hay or silage includes GM material.The seller then has to give Monsanto the details of the buyer, including phone number and address. A spokeswoman at Monsanto said buyer details are needed to track the goods in case anything goes wrong.Scott Kinnear is from Biological Farmers Australia. He says even if Monsanto is tracking sales, it doesn't go far enough and GM segregation has broken down. "There's a lot of fodder that is traded. Fodder merchants move hay interstate. There's no way to know where the bales of hay will end up," he said."Monsanto's tracking system is commercial in confidence; it's not on the public record. Secondly merchants wouldn't be required to pass on the details of the buyers they sell their hay to. The tracking system won't add anything to the possible leakage of GM canola seeds right across the state of Victoria and possibly interstate."
In this report: Biological Farmers Australia spokesperson Scott Kinnear;General Manager of Tasmanian Biosecurity Alex Schaap

Abalone industry remains 'on alert'

By Sally Dakis

The Tasmanian abalone industry is breathing a sigh of relief, with news that many restrictions on abalone movement have been lifted.Controls on the movement of the fish were introduced as a means of limiting any potential spread of the deadly ganglio neuritis virus, which had been discovered in 3 fish in an abalone processing plant, and one fish in the wild.Since then, no futher positive detections have been found in any of the 1600 tests taken.Restrictions on the movement of abalone from parts of the D'Entrecasteaux Channel will remain, as will a ban on imported abalone, and the feeding of abalone guts as bait.Chairman of Tasmania's Abalone Council Dean Lisson says it's good news that there's no evidence of the disease in the wild, but the industry remains on high alert."We haven't covered every single bay or reef around Tasmania's 5,000 km coastline so there is still a small chance there could be a population of abalone, somewhere, that have been affected by this."Mr Lisson expects further changes to abalone fishing and farming management in Tasmania, including effluent treatment, in the future. "One of the things we will have to address is the issue of outfall pipes from processing facilities from farms" he said."A disease in a farm or indeed if it ever happened in a processing facility that empties directly into the ocean is a very effective way to spread it, and it's one of the high areas of risk that we've identified that needs to be addressed."
In this report: Dean Lisson, Tasmania's Abalone Council

Salmon farms under attack

By Kathy Cogo

Scientists, tourist operators and environmentalists in the Northern Hemisphere have got it in for salmon farms. They're sending the United Nations a declaration against the practice saying it's unsustainable.It's another attack on sea cage aquaculture - an industry that's struggled for widespread acceptance.Critics say industrial net pen salmon farming started in Norway and has spread to the rest of the world.They want to see salmon farmed in closed tanks to stop disease spreading to wild fish and waters being polluted.But surely Australia's salmon farms, which are predominantly in Tasmania, are immune from such criticisms. Not says Craig Bohm from the Australian Marine Conservation Society. He says there are inherent problems with caged aquaculture. One problem is the effluent. "It's a bit like having raw sewage going straight into the sea from the coast without a sewerage treatment plant being in the way to filter out pollution. Other concerns we have are escapes. In one year in 2004 for example the low level escapes was 135,000 fish escapes."Mr Bohm also has concerns about farming exotic fish that have the potential to upset the ecosystem if they adapted to the environment. If the AMCS is opposed to this type of fish farming, what are the alternatives? Mr Bohm says there are sustainable ways to farm fish. "We say that landbased, closed system, well regulated, pollution managed aquaculture systems are the way to go." Simon Bennison from the National Aquaculture Council says salmon farming in Australia is oceans apart from the problems in the Northern Hemisphere because farms are highly regulated.He says, "And that has specific criteria that limits the industry being able to overload in certain areas. It's very tightly regulated. It's very compliant. You know it's quite a different situation to what's happened in other parts of the world." Is he worried that the reputation of salmon will suffer as a result of the declaration to the UN? Mr Bennison says, "I can't speak internationally about the salmon industry but the credentials of fish farming in Australia in particular are very good and we don't have any quarms about demonstrating the sustainability of the industry. Internationally the implications are difficult to assess. This is nothing new. A number of these groups have been jumping up and down making noises about various industries, not just ours." Tasmanian salmon farmer Mark Ryan agrees and says there haven't been any escapees from salmon farms in Australia for years. He doesn't see any connection between the problems experienced overseas and Australian farms.
In this report: Craig Bohm, Australian Marine Conservation SocietySimon Bennison, National Aquaculture Council

Infrastructure money flows to Tasmania

Tasmanian councils are $8 million better off, after yesterday's Federal Government handout in Canberra.The money was allocated to Australia's 500 or so municipalities as a part of the Commonwealth's financial stimulus package, to be spent on what they call 'quality of life infrastructure' projects.Mayor of the Glamorgan Spring Bay Council on the East Coast Bertrand Cadart says the council will receive $100,000, which is likely to spent on health, aged care and tourism infrastructure. The good news, he said was that Prime Minister indicated that there will be more next year.
In this report: Bertrand Cadart, mayor of the Glamorgan Spring Bay Council.

Japanese recession won't hit ag exports

Australia's food exports to Japan could increase, even though that country is slipping into recession.The Asian nation is the biggest buyer of Australian agriculture, with beef, dairy, grain and seafood the main exports.But with Japan only producing 40 per cent of its own food - it's reliant on imports - and therefore needs to keep buying food for its nation.The interesting thing about Japan is that while its economy has slipped into recession, it's still home to some of the wealthiest people in the world.And when you're wealthy you can choose what you want to buy.AusTrade's Tokyo-based senior trade commissioner Elizabeth Masamune says that's good news for Australian food producers during a Japanese recession.She says historically, Australia's exports have continued to expand even when Japan's economy has been in much deeper trouble.She says food safety is very important to Japanese consumers, and with recent scares from China, importers are looking for more from Australia because of its strong food safety record.Ms Masamune expects Australian beef to increase its share of the market, but the dairy industry might not benefit because its products are considered expensive. "But for other products, a lot of it will again stem back to that issue of traceability and safety," she says."They feel very comfortable with Australian foods and I think it's a matter of how we position them and get them to the right price point."Ms Masamune says the lower Australian dollar is keeping demand strong, with importers coming back into the market in recent months.The four biggest Australian food exports to Japan are meat, dairy, grains and then seafood.Meanwhile, manager of international trade development at Dairy Australia, Phill Goode, says dairy exports are looking strong. "Basically we have a world shortage of dairy products," he says."So when we see an adjustment in the market that really doesn't change the basic fundamentals, which is that demand around the world is growing particularly in south east Asia and the middle east, while at the same time supply isn't growing."Opposition minister for trade Warren Truss isn't so optimistic about the situation.He's criticised the government's decision to scale back talks on a Japanese and Australia free trade agreement.
In this report: Elizabeth Masamune, Tokyo-based senior trade commissioner, AusTrade; Phill Goode, manager of international trade and development, Dairy Australia; Warren Truss, opposition minister for Trade.

Poppy growers celebrating a multi-million dollar rain

The Easterly rain pattern that began late last week is estimated to have added millions of dollars to the farming community.The head of Tasmania's poppy growers, Lyndley Chopping says the rain has saved many crops from imminent failure, and he's predicting the rain is worth up to $10 million for his industry alone.Many poppy crops are now on the point of flowering, and the rain will not only carry them through to harvest, but Lyndley Chopping says the rain will also boost the pharmaceutical quality of the crop."Some crops will now make it."There's been quite a few that haven't and there are some that were right in the balance and this will make them make the grade now, and we're absolutely delighted about that."Mr Chopping says while the financial benefit will flow through rural towns, it's impossible to value the boost to morale."Tails are up, it's turned things around about 180 degrees."
In this report: Lyndley Chopping, president of the Tasmanian Poppy Growers

Extended GM moratorium aims to give Tasmania a marketing edge

The Tasmanian Farmers and Graziers Association (TFGA) is calling on the State Government to put up $10 million to help market the state's GM-free status, after the Labor Governmnet voted to keep the existing moratorium.State cabinet agreed to keep the moratorium on commercially grown genetically modified crops until at least 2014.The decision is based on the belief that a GM-free status will allow Tasmania to tap into growing demand for non-GM foods around the world, which the Minister for Primary Industries, David Llewellyn, describes as a premium market.The State Government has committed to working with Brand Tasmania to develop a marketing strategy, but president of the TFGA Roger Swain says that's not enough."What we need to see is a financial commitment to make sure that all happens, that's the only way this can be justified, beyond that it just becomes a simple ideological decision not based on proper science."But tapping into demand for GM-free food is not as simple as just labelling produce as conventionally grown, according to a food industry analyst. Martin Kneebone from Freshlogic says shoppers who are willing to pay a premium for their food are interested in the entire production process."If you look at the precedents around the world we think that probably the strongest option would be to look at the whole category of ethical food benefits."
In this report: Roger Swain, president TFGA; Martin Kneebone, Freshlogic

Beekeepers to submit new funding request

The group that represents Australia's bee keepers is preparing a fresh case for more federal funds since its latest bid for more money was rejected.The Australian Honey Bee Industry Council has been lobbying hard for funding for baited hives installed near all ports to trap any bees arriving on ships and planes as well as a range of other measures.Council chairman, Lindsay Bourke says his latest meeting with the Federal Agriculture Minister Tony Burke in Canberra only secured $300,000 of the $50 million his Council was asking for."I'm a little bit disappointed that we found out that we're not going to get the $50 million. He made it quite clear there isn't money for that, but he would take on board the things that had most priority and one of them was the sentinel and bait hive program which is quarantine for out ports that is most important."
In this report: Lindsay Bourke, chairman of the Australian Honey Bee Industry Council

Minister explains GM ban

By Cameron Wilson
Earlier this week the state government voted to keep Tasmanian's ben on commercially grown Genetically Modified (GM) crops for at least another five years. It's a decision that has been applauded by some groups, while others such as the Tasmanian Farmers and Graziers Association and some canola growers have questioned the benefits.The Primary Industries Minister David Llewellyn says the ban will give Tasmanian a unique opportunity access the premium GM-free market."We'll be looking to the Brand Tasmania council, which will be developing a more aggressive marketing campaign to maximise the business opportunities flowing from the extension of the GM ban."There is a very high level and sensitive market, I believe, in some countries overseas, particularly our major marketing country Japan for non-GM products."The Minister says the ban will not effect research by the poppy industry, and it's unlikely the moratorium on commercial plantings will have any impact on growers."I've had discussions with both (poppy) companies and they both agree that there's nothing really on the horizon so far as GM poppies are concerned.
In this report: David Llewellyn, Minister for Primary Industries

Dry spring cuts crop forecasts

A lack of spring rainfall across Victoria, South Australia and southern New South Wales has resulted in a marked deterioration in the major winter crops. “These developments have prompted ABARE to revise down its forecasts for Australian wheat, barley and canola production in 2008-09,” Mr Philip Glyde, Executive Director of ABARE said today.
“Australian wheat production in 2008-09 is now forecast to be 19.9 million tonnes, some 11 per cent less than forecast in September,” Mr Glyde said. Mr Glyde added that, ”despite the poor spring in some areas total wheat production is forecast to be around 7 million tonnes above last year’s drought affected harvest”.
Rainfall in the critical September and October months was well below average in Victoria, resulting in widespread crop failures. Wheat production in Victoria is now forecast to be 1.4 million tonnes in 2008-09, compared with ABARE’s September forecast of 2.7 million tonnes and last season’s harvest of 1.9 million tonnes.
Mr Glyde noted that, “rainfall in parts of South Australia was also below average in September and October”. While winter crop prospects have deteriorated in South Australia there is extreme variability in yield potential across the state. Wheat production is forecast to be 2.3 million tonnes in 2008-09, 1.1 million tonnes below the September forecast and similar to last year’s harvest.
The condition of winter crops in New South Wales varies considerably across the state. Mr Glyde noted ”the north of the state and most of the central west are expecting average to above average yields, whereas crops in western areas of the state and much of the south are in poor condition”. Mr Glyde added that, “as a result, New South Wales’ wheat production is forecast to be similar to the September figure of around 6.6 million tonnes, with the effect of poor conditions in the south being offset by better conditions in the north and central west”.
Late frost across parts of the Western Australia grains belt may affect grain quality and has resulted in some crop losses. Despite this setback, a forecast wheat crop of around 7.8 million tonnes is 1.7 million tonnes better than last year’s outcome. Harvest has commenced in Queensland and the quality and quantity of grain is better than originally anticipated. Australian barley production is forecast to be 6.3 million tonnes in 2008-09, a 20 per cent decline from ABARE’s September forecast. Canola production is forecast to be 1.3 million tonnes in 2008-09, a decline of nearly 320 000 tonnes from the September forecast.

Trade Finance: Servicing an Evolving Global Economy

27 October 2008 - From Bob's Guide
Trade financing is evolving due to changing global trade patterns as well as shifts in supply and demand. The emergence of Asia and growth prospects in Latin America and Africa have had a significant impact on banks' trade financing techniques.In a new report, Trade Finance: Servicing an Evolving Global Economy , Celent provides in-depth analysis of new international trade patterns. In the first half of 2008, world trade growth decelerated to 4.5 percent, down from 5 percent in the third quarter of 2007. It is likely to be even lower by the end of 2008. In developed economies, business and consumer demand have continued to fall, and industrial production has weakened. In contrast, the growth rate in developing countries is currently around 7 percent, contributing more than 40 percent to global output growth in 2007.South-South trade, the trade between developing countries, is playing an increasingly important role. Asia is the world's most important trade hub, with intra-Asian trade accounting for about 90 percent of total South-South trade. As of 2008, developing countries have a 40 percent share of world exports. The 2030 estimate is that 45 percent of international trade will be by developing countries, while higher income countries' share will fall by 13 percent to 55 percent.Latin America is another emerging trade hub. Demand for agro-products from Latin America is increasing, driven by the rapid expansion of the middle class in China and India. This demand has been heightened by Latin America's use of alternative energy sources.Trade financing techniques are changing as credit availability becomes more limited and risk capital requirements are on the rise. Open accounts seem to be the preferred choice for trading firms and more and more clients want their banks to enhance their supply chains.Intra-firm trade comprises 45 percent of international trade and is a major driver of open account transactions. Another trend is the ever increasing contributions of small and medium enterprises to merchandise trade, which range from 20 percent to as high as 60 percent in some countries."There is a strong belief that we are just one major crisis away from returning to traditional products, but in the aftermath of subprime crisis, we have not seen a return of the L/Cs," says Axel Pierron , Senior Vice President at Celent and coauthor of the report."Basel II will limit the trade financing activities of banks through higher allocation of risk capital," says Sreekrishna Sankar. "With the securitization market experiencing turmoil, international trade financing will attract other sources of funding such as hedge funds."This report examines emerging trade flow patterns and the new opportunities trade finance represents for banks. It looks at how banks should adapt their business models based on trends in trade and tighter credit controls. The report concludes with key points for banks on refocusing and repositioning themselves in order to remain competitive in this new trade climate.

Lift for export prices as shipping prices plunge

MATT CAWOOD
23/10/2008 6:16:00 PM
Australia can now ship its agricultural commodities a lot more cheaply, thanks to the global economic downturn, which has seen the costs of ocean shipping plunge in past months.
Faced with a rapid downturn in shipping, and credit challenges of their own, shipowners large and small are now mothballing or even scrapping ships and waiting for a turnaround—if circumstances allow.
“Shipping is an entrepreneurial game, and there are people losing their shirts at the moment,” executive director of the Australian Shipowners Association, Teresa Hatch, says.
“But it might be the bust that we had to have.
"Shipyards have been so far behind on meeting demand, people have been waiting up to four years for a ship.”
Manager of ABB’s Barley Marketing Operations, Rob Green, says getting a 60,000 tonne bulk shipment of grain to Saudi Arabia three months ago cost US$90-$100 per tonne.
Now, that's down to US$25-$30 a tonne — a rate that hasn’t been seen for at least five years.
Mr Green says the downturn has been so steep that there is now the threat that older ships will be scrapped, creating another cargo shortage if economic conditions pick up again.
“While there will be an impact, no-one is talking about panicking,” he says.
Ms Hatch agreed, saying that there are now likely to be a lot of small bulk carriers vying for contracts to ship grain.
But like the financial meltdown itself, it’s difficult to see what the ultimate consequences of the shipping downturn will be.
Whole shipping lines have frozen up, according to a Business Spectator report on Tuesday, because shipowners don’t want to take the risk of carting cargo for clients who may not be able to pay because of the credit crisis.
“Like many of the other clogged arteries of global finance, letters of credit and therefore global shipping could presumably unclog fairly quickly if the interbank credit market got moving again,” wrote the article’s author, Alan Kohler.
“But a big fall in shipping rates, as measured by the key price indicator, the Baltic Dry Index, is always a harbinger of a downturn in trade and therefore economic activity.”
The Baltic Dry Index of bulk shipping rates has collapsed 89pc since May, from 12,000 to 1355.

Melbourne moves to ease congestionBy

Ian Jarrett Perth
Port of Melbourne is clearing the way for more efficient use of its container berths, but while dredging of the port's shipping channels continues on schedule, congestion on the wharves is restricting movement of containers.The congestion has forced Australia's shipping industry body to make a fresh call for improvements to container clearing facilities at Australia's largest container port.Shipping Australia Ltd (SAL) chief executive Llew Russell said his members warned the Port of Melbourne Corporation long ago that with the continued growth of containers, existing facilities would be put under severe pressure."Our fears have come to pass," he said. "Our members using the DP World container terminal at Swanson Dock in Melbourne have complained that they have been unable to ship out all the empty containers they need to, due to yard congestion."One member had to cancel 3,000 planned exports of empties over the past two months.'' The SAL chief acknowledged that more vessels were falling outside their berthing windows due to international trading conditions, "but this has to be expected and should be capable of being handled''.Russell called for an investigation into the potential for metropolitan intermodal terminals to relieve the pressure.Shipping Australia recently agreed to a trial organised by Tradegate called PortBis in Sydney to explore the advantages for all parties in community-based data systems. A trial is also being conducted in Melbourne under the Freight Connect umbrella and the results of the Sydney trial will provide a comparison for shipping lines.Russell said these types of systems were now in place in more than 25 ports worldwide. "Eventually we will need to standardise on basically one type of system nationally if all the potential benefits of these types of systems are to be realised," he said.

Maritime industry offered a life raft

October 24, 2008 - 10:18AM
Australia's struggling shipping industry may have a lifeline thanks to new recommendations from a parliamentary committee.
There are only about 40 commercial ships left flying the Australian flag.
The number has been in free fall for a decade and without government intervention the decline appears terminal. But recommendations from a parliamentary committee this week could provide salvation.
Following the brutal waterside fight between former prime minister John Howard, his industrial relations minister Peter Reith and the unions, the shipping industry was left to die.
With Labor back in town the industry is looking for a kickstart.
It has been given one by the committee's report which recommends major legislative changes to the way shipping is taxed and the creation of a National Maritime Training Authority.
While Transport Minister Anthony Albanese has not committed the government to adopting any of the committee's recommendations, Labor's intentions are clear.
Earlier this year Albanese called for the profile of the industry to be raised.
"The government's aim is for a viable coastal shipping industry in a competitive domestic transport sector," he said in a speech to industry leaders in June.
Albanese was more guarded following the committee's findings.
"The government will now consider the report's recommendations in detail and respond to each of them during 2009," he said.
One of those recommendations is for the introduction of a tonnage tax.
The tax would be optional, but likely popular because it would allow companies to calculate tax on their tonnage rather than their profit.
"Recently, ships have been highly profitable, so a tonnage tax regime is considered to be of particular economic benefit," the committee wrote.
Similar taxes are in place in Britain, Belgium, Germany, Greece, Norway and Denmark.
Committee chair and Labor backbencher Catherine King said the chief inspiration had come from the UK, where the tax was successful in increasing the number of British registered ships.
The tax has support across the industry. Both the Maritime Union of Australia (MUA) and the Australian Shipowners Association (ASA) back the plan.
There is just one catch for companies who want to take advantage of the flat tax rate - they have to train new staff.
"The (staff) shortage has been described as reaching a critical point and is undoubtedly the biggest issue facing the industry today," the committee found.
Just one per cent of local seafarers are 21 or under and by 2010 the ASA says the industry will be 2,000 staff short, further adding to bulging capacity constraints across the wider transport sector.
Paddy Crumlin is the national secretary of the MUA and sees the committee's findings as a lifeline for both an industry and a way of life.
"If intelligently developed and implemented the policies and regulatory proposals in the report provide the basis for Australia to become a regional centre for maritime trade and training in the Asia Pacific region," Crumlin said.
The union veteran may just get his way.

Oil prices slip on demand risks

Brian Baskin October 28, 2008
CRUDE oil futures settled near a 17-month low as concerns about falling demand outweighed talk of a second OPEC production cut.Light, sweet crude for December delivery settled down US93 cents, or 1.5 per cent, at $US63.22 a barrel on the New York Mercantile Exchange, the lowest settlement price since May 29, 2007. December Brent crude on the ICE futures exchange settled down US64c, or 1 per cent, at $US61.41 a barrel. Oil prices remain locked in a downward spiral based on expectations that global demand growth will be drastically lower in 2009 as economies cool worldwide. While little new happened to deepen demand worries, the market failed to receive any sign that it had hit bottom, either. Futures rallied briefly on comments by Organisation of Petroleum Exporting Countries secretary general Abdalla Salem el-Badri that the group could hold a second emergency meeting before its regular session in December. Mr El-Badri raised the prospect of another production cut, on top of the 1.5 million-barrels-a-day reduction announced last Friday, at OPEC's first emergency meeting. "OPEC is just going to address the supply side," said Darin Newsom, senior analyst with DTN, a market information service. "Adjustments to supply are not having the desired effect on the market, and they probably won't." Market participants have also raised doubts that OPEC members will fully comply with cuts. The US is moving toward an oversupply of crude, with analysts anticipating a 1.6-million-barrel build in crude stocks in weekly data due later this week from the US Energy Information Administration. Oil inventories are already above the five-year average, as refiners hold down runs in response to weak demand. "Refiners aren't in a real hurry to start making a lot of product that they're not selling much of," said Phil Flynn, an analyst with Alaron Trading. "Crude should continue to build for a while." Analysts surveyed by Dow Jones also gave an average forecast of a 1.8-million-barrel build in petrol inventories and a 500,000-barrel build in distillate stocks, which include heating oil and diesel.

Australian Dollar Falls, RBA Intervenes; N.Z. Currency Advances

By Candice Zachariahs
Oct. 28 (Bloomberg) -- The Australian dollar plunged to a five-year low against the greenback, as concern over a global recession led investors to buy the U.S. dollar as a safe haven. New Zealand's currency gained.
The Reserve Bank of Australia bought its own currency for the third day as it came close to dropping below 60 U.S. cents for the first time since April 2003. Australia's currency slid against the yen for a sixth session as U.S. stocks declined after the Standard & Poor's 500 Index swung between gains and loses at least 20 times during the day.
Carry-trades and commodities ``have previously been big supporting factors for the Aussie,'' said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia. ``They're being pared back in the global margin call that we're seeing being unwound now. We see more downside pressure to the Aussie,'' he said referring to the currency by its nickname.
The Australian dollar fell for a sixth day, dropping to 60.09 U.S. cents, the weakest since April 2003, before trading at 60.14 U.S. cents as of 8:04 a.m. in Sydney from 60.58 cents late in Asia yesterday. It fell 0.7 percent to 55.71 yen from 56.11 yen yesterday.
New Zealand's dollar gained 0.3 percent to 54.19 cents from 54.01 in Asian trading yesterday. It bought 50.14 yen from 50 yen.
Australia's dollar has lost 37 percent against the yen in the past month and New Zealand's is 31 percent weaker as investors bought back Japan's currency borrowed in so-called carry trades used to purchase the South Pacific nations' assets.
RBA Intervention
The central bank intervened in the market, a spokesman for the Sydney-based RBA said today by phone. He declined to be identified. The intervention came amid similar circumstances to those yesterday and on Oct. 24, when the bank ``provided liquidity,'' according to the spokesman.
Australia's currency is the worst-performer of the world's 16 most-active currencies against the dollar and yen in the past month as investors have dumped equities amid widespread concern that the global economy will fall into recession.
The currency rallied briefly yesterday after the Group of Seven expressed concern over the ``recent excessive volatility'' in the exchange rate of the yen.
``We expect any bounce to be quite temporary'' as a result of intervention, said David Forrester, a currency economist at Barclays Capital, in Singapore yesterday. ``There's no quick fix that policy makers can undertake to alleviate the problems which currently are impacting on foreign-exchange markets.''
Benchmark interest rates are 6 percent in Australia and 6.5 percent in New Zealand, compared with 0.5 percent in Japan and 1.5 percent in the U.S. The differences in yield have attracted investors to the South Pacific nations' assets. The risk in such trades is that currency market moves will erase profits.
To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net

Asian enquires rise for Australian dairy

By James Nunez
Tuesday, 07/10/2008
The milk powder contaminations in China, which killed four babies, and caused tens of thousands of children to become sick, has boosted export demand for Australian dairy products.The Murray Goulburn Dairy Co-operative is reporting a 20 to 30 per cent increase in inquiries from Asian markets.Most Murray Goulburn products are produced in Victoria, but the processor plays an important role in setting the price Australian dairy farmers get paid for their milk. General Manager of International Sales for Murray Goulburn, Mal Beniston, says the contamination has caused consumers to think twice about Chinese milk products."So my guess is yes, there'll be a short-term increase in demand for products particularly from Australia, New Zealand and Europe. But ultimately there's a lot of milk in China which I'm sure will get right eventually."
In this report: Mal Beniston, general manager of international sales, Murray Goulburn.

GM - A national perspective

By Cameron Wilson
Friday, 10/10/2008
With the heads of each state farmers group in Hobart, The Country Hour took the chance to discuss the different approach three states are taking to GM policy.President of the West Australian Farmers Federation Mike Norton explained how the change of state government is leading to a re-think of the planned moratorium and the expectation that regulated commercial planting of GM crops will go ahead.President of the New South Wales Farmers Association Jock Laurie explained the licensing system that is regulating GM crop production in NSW and the focus of segregating the GM industry from conventional growers.President of the Tasmanian Farmers and Graziers Association Roger Swain gave his thought on the different state approaches and the implications for Tasmania.
In this report: Mike Norton, president of the West Australian Farmers Federation; Jock Laurie, president of the New South Wales Farmers Association; Roger Swain, president TFGA

Call for urgent bee biosecurity

By Rosemary Grant
Monday, 13/10/2008
The Australian Honey Bee Industry Council wants immediate action to reduce the risk of pests and diseases, and it's calling for a national incursion simulation to see where weaknesses are.The Council also wants baited hives installed near all ports to trap any bees arriving on ships and planes.Council chairman, Lindsay Bourke says vegetable and fruit industry groups are also joining them to pressure the Government to implement recommendations from a Senate inquiry into the future development of the industry."All the people who use our services have got together in the Pollination Australia industry alliance and they are putting real money in where their mouth is to fight incursions and all the things that will affect our honey bee industry. We've got $430,000 to spend on that," he said.
In this report: Lindsay Bourke, chairman of the Australian Honey Bee Industry Council

Tasmanian farm machinery exports a winner

By Eliza Wood
Monday, 13/10/2008
The global credit crisis was no doubt on the minds of those at the Tasmanian Export Awards on Friday night in Hobart.The head of one of the winning companies, Philip Dobson from Dobson's Vegetable Machinery, says it's a real concern in his line of work.The Ulverstone-based business, in its 25th year, took home the Regional Exporter Award.Philip Dobson says they strive to be different in order to compete."We obviously have to compete with a lot of international companies, major European and American manufacturers. We aim to have alternate products because we could never compete head on with some of the major manufacturers," he said.
In this report: Philip Dobson, Dobson's Vegetable Machinery.

Tasmanian farm machinery exports a winner

By Eliza Wood
Monday, 13/10/2008
The global credit crisis was no doubt on the minds of those at the Tasmanian Export Awards on Friday night in Hobart.The head of one of the winning companies, Philip Dobson from Dobson's Vegetable Machinery, says it's a real concern in his line of work.The Ulverstone-based business, in its 25th year, took home the Regional Exporter Award.Philip Dobson says they strive to be different in order to compete."We obviously have to compete with a lot of international companies, major European and American manufacturers. We aim to have alternate products because we could never compete head on with some of the major manufacturers," he said.
In this report: Philip Dobson, Dobson's Vegetable Machinery.

Farmers pin hopes on GE grass

By Kathy Cogo
Tuesday, 14/10/2008
Would you buy milk labelled as having a genetically engineered product?Farmers are considering growing a genetically engineered grass in future which reduces the amount of methane a cow produces. A collaboration between Australian scientists and a New Zealand stock and station company is researching a grass which is hoped to maintain production levels at the same time as reducing greenhouse gas emissions.Researchers have found that the amount of methane a cow produces depends on what they eat.Lachlan McKenzie from Federated Farmers of New Zealand explains why scientists are developing a high sugar grass. "Methane is the bi-product of protein, the break down of protein and so if you have a higher sugar content in your pasture relative to the protein then the animal can use that protein rather than having to break it down for energy use." Mr McKenzie says as a result the grass should produce a more productive cow. He says they might have little choice but to grow GE grass in future. "Politicians in their wisdom have certainly indicated on both sides of the Tasman that they want to decrease the emissions of greenhouse gases from agricultural land ... so that's why the pressure's on for the researchers to actually come up with solutions for the regulations that are coming in." Are they worried about trying to sell milk that derives from genetically engineered grass? No. Mr McKenzie thinks consumers are more pragmatic and accepting in their attitudes towards GE food.
In this report: Lachlan McKenzie, dairy representative, Federated Farmers of New Zealand

Lowering trade barriers will ease world hunger

By Will Ockenden
Thursday, 16/10/2008
Australian farm groups say lowering international trade barriers is the best way to ensure global food security.Today's World Food Day, an annual event promoted by the United Nation's Food and Agriculture organisation. The focus this year is global food security. As financial turmoil becomes the major focus for politicians, there are warnings that food security remains an critical issue.Earlier this year, there were riots in Indonesia, Haiti and the Philippines as wheat and rice prices more than doubled. Mick Keogh, from the Australian Farm Institute, said there'd be a lot fewer hungry people in the world if agricultural trade was opened up. "The balance between demand and supply is tipping back towards increased demand, which hasn't been the case for the last 50 years," he said. "I think that's going to put pressure on governments to recognise the need to free up agricultural trade, and in that way to increase the flow of food and food supplies globally."At a busy inner-city Melbourne supermarket shoppers are buying food for dinner. Shopper Cameron Wolf said while food prices in Australia have increased, at least it's available. "I think it's one of the things we take for granted. It's hard to say weather we appreciate what we've got or the fact that the country we live in runs itself to provide markets for food."Shortages of rice are now common in many parts of the world, but that only hit home in Australia when supermarkets put limits on how much rice could be bought per person.Dr Beth Woods chairs the International Rice Research Institute. She said the rising price of food has caused the most pain for poor people in third world countries. "Some countries have provided additional payments to poor people, others have released government stores of food. Some of those are measures you wouldn't want to see in the long term, but in the short term governments should see it as a number one priority to ensure their people have food."
In this report: Director of the Australian Farm Institute Mick Keogh;Chair of the International Rice Research Institute Dr Beth WoodsSupermarket shopper Cameron Wolf

Financial crisis hits dairy markets

By Sally Dakis
Friday, 17/10/2008
Dairyfarmers have been warned to expect more volatility in dairy prices as a result of the global financial crisis.Dairy commodities have been cut by 20 per cent over the past few months, and Dairy Australia is predicting more uncertainty in the market.Dairy Australia's manager of Strategy and Knowledge Joanne Bills says the crisis is having an impact on some of Australia's key dairy export markets in Asia."Already over the last couple of months commodity prices have dropped quite sharply, around 20 per cent on average, in particular milk powders have been under a fair bit of pressure" she said."We're probably expecting that those prices will continue to be volatile, it's a very tight supply and demand situation still, but we are seeing some signs of demand softening and the possibility that we will have more supply to the world market. So perhaps a bit more weakness in those commodity prices to come".But Ms Bills says Dairy Australia is unable to quantify the magnitude of further falls."It is really difficult to predict at this stage, they have fallen very sharply in the last couple of months, we hope we don't continue to experience falls like that. We feel that there might be some more downward pressure on milk powders because of the activity of the US and the European Union, and the supply that's coming on stream from South America and New Zealand.""We think that butter and cheese has probably got a bit more resilience in terms of pricing for those commodities."In spite of this outlook though, Joanne Bills says dairy farmer confidence in the industry remains strong, with historically high farm gate prices, and farmers adopting a medium to long term outlook in the industry.
In this report: Joanne Bills, Dairy Australia's manager of Strategy and Knowledge

Frost losses at 40 per cent for some growers

By Cameron Wilson
Friday, 24/10/2008
Frost has destroyed up to 40 per cent of fruit crops for some growers worst hit by the drop in temperature earlier in the week.Temperatures dropped to well below zero in the Midlands, Derwent Valley, Coal River Valley and Huon Valley on Wednesday night and Thursday morning this week, at a time when cherries, apples, apricots and wine grapes are highly vulnerable to frost damage.After initial assessment it was thought that most growers has escaped serious damage, but Ken Bell from fruit marketers TopQual says those orchards that have been hit are now reporting extensive damage."The Derwent Valley is probably showing on some orchards there, (but) not all orchards, some growers had some fairly extensive frost protection in place and have been able to minimise the damage but on some other orchards there cold be up to 40 per cent (crop loss)."Around the Richmond area seems to be a little bit more damaged than other areas in the Coal River, Richmond is showing around about 40 per cent damage as well and there could be some damage even in the apricots out there."
In this report: Ken Bell, managing director TopQual

Nickel market tarnished by credit crunch

Report: Babs McHugh
A year ago, it was being called the 'new gold', but now the price of nickel has plummeted so low, it's costing more to produce than it's worth.Nickel is used in quality stainless steel.From a high of US$50,000 a tonne 18 months ago, it's now worth one fifth of that.Carey Smith, from Alto Capital, says nickel is another casualty of the global credit turmoil."Nickel's been caught up in the whole commodity cycle, and if you look at all the coppers and the zincs and the leads, they've fallen just as much basically, but nickel's fallen a bit further than most," he says."With the credit crisis in the US, in Europe and the UK, people just need money. They'll sell anything at any price."

Grain growers counting cost of recent frost

By Cameron Wilson
Monday, 27/10/2008
As midday temperatures peak today in the mid 20's, spare a thought for midlands grain growers who're taking stock of barley and canola crops that have been badly hit by frost.The extent of the frost damage to broad acre cereals and oilseeds is only now emerging, after last Thursday's cold snap.Rural reporter Rosemary Grant says for some farmers this will now be the third years of failed crops."I've talked to one consultant this morning who's travelled from Tunbridge through (Cambell Town) and north as far as Evandale and into the Fingal Valley."Certainly in the low lying areas it's pretty extensive."I spoke to one farmer today who estimated that they've probably lost $1 million worth of crops just in their area."
In this report: Rose Grant, rural reporter

Scientists push for GM labelling

By Jane Bardon
Monday, 27/10/2008
State and Federal food regulation meeting recently in Adelaide are facing renewed calls for all genetically modified food to be labelled.Fifteen Australian and international scientists have written an open letter to the ministers, saying independent studies are raising more concerns about GM food.And the scientists want testing of GM food to be done in Australia.At the moment only GM food with altered protein, for example foods containing GM soy, have to be labelled in Australia.Other foods containing highly processed GM like canola oil, cottonseed oil and corn, and even GM potatoes don't have to be labelled.Professor Jack Heineman is a molecular biologist at the University of Canterbury in New Zealand, and he says that has to change so consumers can choose."There is a growing number of independently derived studies that indicate the plausibility of harms that may have been overlooked, and certainly, could currently be overlooked using the types of studies that are available to our regulators now."Independent Australian food nutritionist Dr Rosemary Stanton says labelling is also needed because if health problems do arise with GM foods in future, nutritionists and scientists won't know where the problems have come from because they won't know which foods people have been eating contain Gm material.But the Chief Scientist at the national food regulator Food Standards Australia New Zealand Dr Paul Brent says the state and federal food ministers don't need to change labelling laws.In their letter to the food ministers, the scientists are also calling for an independent review of the safety assessment procedure for GM food.Rosemary Stanton agrees with them it's unacceptable that Food Standards doesn't do its own safety testing.It relies on tests done by the GM companies and peer reviews of that by food authorities in other countries.Paul Brent from Food Standards says its okay to rely on GM company data and international assessments of that."The US FDA and the Health Canada Food Directorate and the Japanese, and the European Food Safety Authority have all looked at the same data, and have all come up with the same independent conclusions that these GM foods are safe."The standard procedure all over the world for chemical and drugs and for foods is for industry to supply the data. This idea that it has to be independently tested is a furphy."The regulator also says in its recent consumer attitudes survey only one on percent of people were worried about eating GM.But Rosemary Stanton says if state and federal governments don't change the law and demand GM food testing by the regulator farmers will suffer.She thinks once the new GM canola crops being grown for the first time in some states start to enter the food chain consumers might start avoiding eating any canola to try not to eat GM.A spokeswoman for the Federal Government Parliamentary secretary for health, Jan McLucas says Australia's processes for assessing and labelling food are based on worlds best practice, and Food Standards is taking a very cautious approach.But GM labelling may be discussed at the meeting.
In this report: Professor Jack Heineman molecular biologist at the University of Canterbury in New Zealand, Dr Paul Brent Chief Scientist Food Standards Australia New Zealand; Dr Rosemary Stanton nutritionist

Tasmania says no to GM seeds

By Sally Dakis
Monday, 15/09/2008
A seed company has elected to withdraw it's canola seed from sale in Tasmania in the light of the State's zero tolerance for Genetic Modification (GM). Manager of Roberts Seeds at Carrick, Rob Winter, says companies are worried about their potential legal exposure with the State's decision to set a nil tolerance for GM in any seed material under it's GM moratorium.Across the globe different tolerance levels for GM have been established, from Tasmania's nil tolerance, to 0.5 per cent in other states, and up to 5 per cent by some buyers.Mr Winter is concerned that other seed companies may follow suit, denying the state access to the best seed varieties."Seed companies from around the world are looking to the latest technology as a major part of their breeding programs," he said. "In fact it's estimated that 80 per cent of new seed lines have some sort of genetically modified component in them so even if full segregation was possible, we might only have the older varieties or less economically viable varieties available to us which is still not a good situation."
In this report: Rob Winter, Manager of Roberts Seeds.

Tasmania organics make the history books

By Eliza Wood
Wednesday, 17/09/2008
The history of the organics movement in Tasmania is about to be made into a book, and the writer is looking for your stories. The Organic Farming and Gardening Society had fourteen branches in Tasmania starting in the 1970s, and after more than 30 years, the society will hold its last meeting next June.Organics enthusiast Graeme Stevenson has been commissioned to write the history and says while it's sad the society is folding, there is an upside."They've done their job, because look how many organic veg you can buy in Woolies and Coles now. They stirred, they pushed, they ran field days, had festivals, and printed magazines that went across Australia. Whoever was interested adopted it, so they've done their job," he said.
In this report: Graeme Stevenson, Organic Farming and Gardening Society.

Closed loop abalone processing a radical suggestion

By Jayne Landsberg
Wednesday, 17/09/2008
Introducing a closed loop system for Tasmanian abalone farmers has been described as a radical proposal that could cost millions of dollars.The call for closed loop and effluent recycling for Tasmanian abalone farms has been made in the light of the discovery of ganglioneuritis in four Tasmanian abalone.The concern is that if a virus is found in a farm, the disease could be magnified and spread to the wild through effluent.Nick Savva from Australian Ocean Biotechnology, farms abalone at Clarence Point on the Tamar River and thinks it's likely that closed loop effluent systems could only be mandatory for abalone processors in the long term. "It would be a radical proposal for farms to go to complete recirc without any effluent or without complete sterilisation of effluent. As far as I'm aware there's no abalone farm in the world that works that way," he said."Mistakes can always happen and just guarding against the possibility of having a virus enter the farm in the first place is the best way to manage that."
In this report: Nick Savva, abalone farmer Clarence Point.