Coronavirus: Government hands seafood, beef and dairy producers a lifeline

A new $170m exporter support package will see Australian seafood, beef and dairy ferried into key Asian markets.

Then Ji Lung fillets a fish at the Sydney Fish Market. Picture: AAP

Australia’s seafood, beef and dairy producers have been handed a COVID-19 lifeline by the government who will help facilitate flights to transport up to $500 million worth of products into key Asian markets over the next six-months.

A new $170m exporter support package will see up to 40 tonnes of premium seafood and agricultural products per flight ferried to China, Japan, Hong Kong, Singapore and the United Arab Emirates.

Return flights operating under the $110m International Freight Assistance Mechanism, designed to “protect regional jobs”, will bring back medical supplies, medicines and equipment in support of the government’s COVID-19 health response.

Australian products including chilled rock lobsters, crabs, abalone, fresh fish, prawns, Wagyu beef, dairy and table grapes will benefit from the export program, which has been set-up under the government’s $1bn coronavirus relief and recovery fund.

Michael Byrne, the former head of Toll Holdings and Linfox, will oversee the freight assistance mechanism operating out of four departure hubs in Melbourne, Sydney, Brisbane and Perth.

The government has also waived around $10m in Australian Fisheries Management Authority levies for the rest of the year and injected $49.8m into the Export Market Development grants program to help market Australian products and services across the globe.

Deputy Prime Minister Michael McCormack said the export of Australian products on hundreds of flights would “help restore key freight routes for our farmers until commercial capacity can be restored again”.

“We are doing everything possible to help our high-value agricultural and fisheries exporters get their produce on airplanes and into overseas markets,” Mr McCormack said.

“Everything we are doing as a government in response to this pandemic is focused on saving lives and saving livelihoods and we know our agriculture industry is key to this.”

The Australian understands primary producers would absorb some of the costs and that the government’s initial six-month commitment to support exporters could be extended if travel bans ground commercial flights for a longer period.

Trade Minister Simon Birmingham said the COVID-19 pandemic had “disrupted supply chains around the world” and the new export program would see Australian seafood from water to the plate within 24-hours.

“This temporary action will help Australian producers to protect the jobs of those who rely upon Australia’s export of safe, quality food into the world,” Senator Birmingham said.

“Getting our export sector back on its feet is crucial to reduce job losses through the crisis and a critical part of the ultimate economic recovery.

“By getting flights off the ground, full of Australian produce, we’re supporting our farmers and fishers who have been hit hard by this crisis.”

Coronavirus outbreaks in Asian countries, key destinations for premium Australian seafood and agriculture products, had effectively brought the premium food export sector to a standstill.

Agriculture Minister David Littleproud said it was critical to get “high-quality product into overseas markets”.

Assistant Minister for Fisheries Jonno Duniam said he hoped the extra support would help “get thousands of fishers, divers, deckhands and processors back on the job”.

Mr Byrne will work alongside Austrade to establish arrangements with exporters, airlines and industry bodies and advise the government of freight selection and destinations.

The COVID-19 economic shock has been significant for primary producers, with reduced demand in countries including China and travel restrictions cancelling international flights.

Senator Birmingham said Australian exporters had “felt the earliest and deepest aspects of the economic downturn” triggered by the COVID-19 crisis.

“This is about making sure our farmers and fishers can get their high-quality product out of Australia and into high-demand markets helping to protect global food security,” he said.

“Necessary public health restrictions are already placing massive pressure on business viability and job security. We can’t afford for our farmers, fishers and exporters to be under similar pressure just because they can’t get their goods onto a plane.”