World Grain - October 2019 - 45

Melissa Conley Tyler, director of diplomacy,
Asialink, University of Melbourne, referred to the
Asian Investment Bank as another example of an initiative led by China that would foster trade through the
investment in infrastructure.
Tyler went on to say it was an example that highOLJKWHGWKHFRQÀLFWEHWZHHQ$XVWUDOLD¶VWUDGHUHODWLRQship with China and strategic partnership with the
United States.
³$XVWUDOLDVLJQHGXSRQWKHODVWSRVVLEOHGD\R൵HQGLQJ:DVKLQJWRQDQGDWWKHVDPHWLPHR൵HQGLQJ&KLQD
too (for not signing earlier)," Tyler said.
During the panel discussion, it was noted that the
Australian federal government recently had used language and rhetoric that took a hard line against China
when a more measured and nuanced response would
have been better.
-RQHVVDLGVKH¶GQRWLFHGDVKLIWLQVHQWLPHQWZLWKLQ
China toward foreign business with a growing wariness.
In discussing the challenges of the relationship between China and Australia and whether government
rhetoric had a negative impact on trade, Jones said
&KLQD¶VVWUDWHJ\ZDVQRWWRUHO\RQRQHFRXQWU\WRVXSply all its needs for a particular commodity.

AA Co. has approval for
2,000 solar cells but
government has not set up
the infrastructure needed to
connect it to the grid despite
a desire for more renewables.
Donald McGauchie, NuFarm and AA Co.
Referring to barley, Jones said China was not likely
to rely solely on Australia to source the grain and that
$XVWUDOLD¶VEHVWZD\RIPDQDJLQJLWVKRXOGEHWRGLYHUsify to include other trading partners.
BUILDING TRADE RELATIONSHIPS
The need for Australia to build trading relationships
with countries other than China was a recurring theme
throughout the conference.
Ken Eriksen, senior vice-president at IEG Vantage,
Agribusiness Intelligence, U.S., pointed out that India
ZDVDVLJQL¿FDQWHFRQRP\DQGKDVWKHSRWHQWLDOWRVXUpass China in terms of population. He also noted there
was a shift toward a higher protein diet in India, even
though meat consumption is discouraged in the country
for religious reasons.
www.World-Grain.com / World Grain / October 2019

On Brexit, the panel said the U.K. is likely to experience a contraction in the short term as it would take
time for the country to negotiate trade deals.
Tyler said countries in the E.U. that had contemplated an
exit of their own are rethinking their stance as they view
Brexit as a massive "own goal" by the U.K.
As in past conferences, discussion on rail and the
need for investment was prominently featured. The
IHGHUDO JRYHUQPHQW¶V LQODQG UDLO SURMHFW ZKHQ FRPpleted, will connect Melbourne and Brisbane with an
H[SHFWHGUDLOMRXUQH\RIXQGHUKRXUVDQGZLWK
UHOLDELOLW\ &XUUHQWO\ WKH MRXUQH\ WDNHV KRXUV ZLWK
UHOLDELOLW\
Michael Clancy of the Australian Rail Track Corp.
VDLGWKHLQODQGUDLOSURMHFWZDVDOUHDG\XQGHUZD\ZLWK
work and approvals. It is expected to be completed
E\
&ODQF\VDLGWKHSURMHFWSUHVHQWHGVLJQL¿FDQWFKDOOHQJHV
including the building of a tunnel under the Toowoomba
ranges. He also said planning approvals were complex as
WUDFNWKDWPDGHXSWKHQHWZRUNSDVVHGWKURXJKGL൵HUHQW
states that have their own planning laws.
Clancy said the upgraded rail infrastructure would
allow for heavy trains to be driven on the network,
something that already was starting to happen.
Michelle Kerr of Riordan Grain Services said inland
rail would open up the supply chain in the north and
provide better access for customers.
"Twenty-four hours travel time will be a big opportunity and opens up the sorghum market to Victoria,"
Kerr said.
&ODQF\QRWHGWKDWLWZDVQRWMXVWWKHUDLOLQIUDVWUXFture that is needed but also support along the supply
chain and access.

Chris Heinjus,
managing director
of Rural Directions, takes time
to network with
fellow delegates
at the AGIC.

Chris Gillies is a freelance writer based in Sydney, Australia.
He may be reached at chris.gillies@jamtincopy.com.au.
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World Grain - October 2019

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