THE REMOVAL of restricting tariff rate quotas and implementation of zero tariffs across Thailand has opened up easier export access for the region’s potato farmers.
The two key commitments are now realised under the Thailand-Australia Free Trade Agreement, which previously limited the volume and time of the year Australian seed and processing potatoes could be exported.
Tariffs for Australian seed and processing potatoes have decreased on an annual basis from 27pc in 2005 to zero in 2020 under the
agreement.
Mingbool potato producer Terry Buckley said the removal of the international constraints would open up opportunity to expand Australia’s export market.
Mr Buckley said Australia had exported potatoes to Thailand historically, but producers had been limited in more recent years due to exporting fees, which made it virtually impossible to make profit.
“It was a real hassle for us … the tariff was reasonably high, which you could not afford and blew it the costs out something terrible,” he said.
“We will now be able to get them into cold storage and ship them over there at the right time of the year where they can put them into cold stores, use up their dormancy so when they warm up they are ready to sprout.
“It is certainly a great thing for our industry and our relationship with Thailand.”
With the previous restrictions lifted last month, Mr Buckley said the timing did not suit Australian producers but it could not worked around.
“We have to compete against India, Egypt, Europe and occasionally America and the big help we have is we produce during to opposite time of the year,” he said.
“Stock coming out from the USA in Autumn has already been stored for four or five months, damage marks start to show and the cooking colour starts to drop off.
“We can send them fresh product which performs better than their stored product.”
Describing Australia’s potatoes as the best in the world, Mr Buckley said the Limestone Coast was in an ideal position to expand its production.
“We are currently working with Indonesia, Philippines, Hong Kong and South Korea and this will allow our area to get back working with Thailand,” he said.
“Buying seed out of America and Europe does not necessarily suit the process and Southern Hemisphere seed is the best to help them along.
“I think the Asian consumer market will grow quicker than what I think they can grow their production.”
Mr Buckley said being able to sell into another market was confidence building.
“One of my life motos is if you have options, you have hope,” he said.
“Exporting in Australia is growing, but only steadily and things like this are going to help it along.”
Welcoming the news, Member for Barker Tony Pasin said last year, Thailand was Australia’s second largest potato export market at $4.6m in 2019 and the removal of constraints would only help grow exports.
In South Australia, more than 11,900 hectares of potatoes are under cultivation and the industry consists of around 100 businesses, directly employing more than 2000 people.
