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.