CEO COMMENT

By Dan Galligan, CEO CANEGROWERS

A FOCUSED TRADE STRATEGY PROVIDES HIP POCKET OUTCOMES

With over 85% of our sustainably produced Australian sugar destined for overseas markets, there is no doubt that our industry needs to be proactive on trade strategy.

Like other Australian agricultural commodities, our industry has learnt to scrap it out in the international arena.

Often, as the saying goes, punching above our weight to ensure Australian products make it onto tables across the globe.

Since Australia dropped all its trade protection policies, every exporting industry has had to employ a combination of defensive and offensive strategies to either protect or build our markets.

For Australian sugar, the need is even more acute compared to other commodities. Sugar is seen as a very sensitive product in many developing countries who have a high need to import sugar but also a desire to protect their domestic production bases and what is often a very poor community relying on agriculture for its survival.

As an industry, we are very conscious of that. However, the very profitability of our growers is fully exposed to the global market and therefore we must be in the market as much as possible.

That is why CANEGROWERS has for decades taken a lead role in trade strategy development and implementation.

For years we have done this collaboratively with the Australian Sugar Milling Council (ASMC) and QSL.

Most recently, with ASMC we have developed a new five-year trade and market access strategy that is focused on analysing our most profitable markets and taking action to engage with sugar buyers and policy makers to ensure Australian sugar can be sold at the best price and at the best time into the best markets.

Close working relationships with the Australian Government’s Department of Foreign Affairs and Trade have seen this strategy identify a work plan that, as we move into implementation, will focus on opening up new markets with appropriate access terms through the negotiation of free trade agreements that don’t avoid sensitives of sugar, as may have happened in the past, but instead seek to identify and deliver opportunities.

One of these is the existing and growing demand for certified sustainably produced sugar. Many sugar buyers want to have confidence in the sustainability of the product they are buying and, in some instances, they provide a market advantage for that verification.

The efforts of Australian cane farmers to demonstrate their sustainability has put us in a great position to meet this demand and as we do so we need to leverage our strong reputation to turn sustainability into hip pocket outcomes.

Our trade strategy, now recognised and supported by the Australian Government, has us set up to be on the front foot like never before. With CANEGROWERS at the heart of this effort, we aim to ensure that growers see the dividends of their hard work.

Much of this collaborative approach has been lead by one of our most passionate advocates for trade. After 39 years of representative roles in CANEGROWERS our chairman Paul Schembri retires this month.

Paul's approach to leadership has informed me greatly as he has shown respect, integrity and at all times passion and focus to keep CANEGROWERS delivering for growers. Paul has positively impacted the culture of CANEGROWERS, to position us to be strong advocates and trusted collaborators.

Paul is always applying a creative mind, that is focused on solutions and he has brought about a new approach to membership service and engagement that ensures we will never take our members for granted.

Having the front row seat, as he demonstrates a focus on the issues of growers while supporting the future of the whole industry, has allowed me to learn from one of agricultures greatest leaders and it has been an honor. •