FTAs are good for business, but technical barriers must now be smashed

The Australian Food and Grocery Council said that improvements in regulatory systems and customs requirements would further enhance the momentum generated by Australia’s recent Free Trade Agreements.

A report by the AFGC found that 65% of key Australian agri-food organisations considered that technical and regulatory barriers had either a significant impact on their export performance or blocked exports completely.

Its chief executive, Gary Dawson, said that the recent conclusion of the FTAs with China, Japan and Korea had injected renewed confidence in agri-food exports, but significantly more work was now needed for the industry to maximise the opportunities these deals provide.

“Technical, or non-tariff, barriers are impeding billions of dollars in trade. To quantify these costs industry analysis undertaken for the Australian red meat and dairy export industries have estimated the industry impact of technical barriers to trade at around A$1.25bn and A$1.57bn respectively [US$0.92bn and US$1.15bn]​.

“We as an industry need to work with the government to address priority non-tariff barriers that include product registration and certification, labelling requirements and changing customs requirements in foreign markets​.”

Australian food and beverage exports are currently booming, and have grown by 28% over the last year to A$25.7bn (US$18.84bn). The sector now runs a trade surplus of A$10.4bn.

“The country has now negotiated FTAs with eight of its top 10 export food and beverage markets, with the China bilateral deal being the ninth such agreement. 

“The impact of the FTAs on the economy is already being seen in the strong contribution of export growth to overall GDP growth in the National Accounts. To maximise the export benefits achieved through trade negotiations, a renewed focus should be given to addressing the non-tariff barriers that remain​,” Dawson said.

More stories from Down Under…​

97% of regular KFC customers express satisfaction​

Almost six in 10 Australians get food from fast-food chains each month, and the more they frequent a store, the more satisfied they will be with it, according to market research.​

Roy Morgan research found that McDonald’s, which is visited by roughly 30% of Australians in any given four-week period, is the most popular chain; followed by KFC (20%), Subway (16%), Hungry Jacks (13%) and Domino’s Pizza (11%). 

For each of these chains, there is a dramatic difference in satisfaction levels between their “heavy” customers, who dine in or take away five or more times in an average month, and “light” customers, who only visit occasionally. 

While McDonalds and KFC’s overall​ customer satisfaction ratings tend to be towards the lower end of the spectrum compared to many other chains, this is not the case among their most frequent customers. 

An impressive 83% of heavy McDonalds customers and 85% of heavy KFC customers said they were satisfied with the stores, Roy Morgan found. 

While Subway generally rates very well for customer satisfaction across the board, the chain still sees its scores skyrocket among heavy customers—a staggering 97% of whom reported being satisfied with the chain. 

“In one respect, these results are not particularly surprising: if someone returns to the same quick service restaurant five or more times in one month, they’re not doing it because they’re dissatisfied​,” said Andrew Price of Roy Morgan Research.

“But the challenge here is for quick service restaurants to encourage return visits from their infrequent customers, who tend to be noticeably less satisfied​. 

“As our data shows, satisfaction starts improving as soon as a customer makes that transition from one-off to return visitor, rising exponentially with more frequent visits​.”

Kiwi university finds lightning fast way to test for leeching DEHP ​

Massey University engineers have developed a highly sensitive device that is able to detect synthetic compounds that leach from plastic packaging into food. ​

Asif Zia and Subhas Mukhopadhyay developed an electrochemical sensing system that is able to rapidly quantify DEHP, a synthetic compound that induces flexibility in packaging but which can leach into the surrounding environment. 

DEHP, which interferes with the body’s natural hormonal system, has been linked to genetic, developmental and fertility defects in humans, the researchers said. 

The World Health Organisation classifies concentrations of DEHP greater than six parts per billion as hazardous for human health.

Dr Zia’s 2.5x2.5mm sensor can be swirled through a liquid to detect concentration levels as low as two parts per billion, using a test that takes less than 10 minutes. 

It is coated with a molecular imprinted polymer that selectively catches only DEHP molecules in liquids, which “stick​” by forming weak hydrogen bonds with the coating. 

After the sensor is rinsed, spectroscopy is used to deduce the concentration of DEHP present.

Dr Zia said the reusable technology was fast, simple to use and sensitive enough to detect small amounts of DEHP. Previous methods, he said, required lab work and could take up to a week, compared to the minutes it would take with his new technology.

“Some countries, like the United States, have already banned DEHP’s use in plastics but for others who have not, this device provides a simple and cost-effective way to make sure there aren’t harmful levels of contamination in juices or other drinks​,” Dr Zia said.

Raw apricot kernels banned due to cyanide poisoning risk​

Regulators have banned retail sales of raw apricot kernels after changes to its food standards code have come into effect.​

Food Standards Australia New Zealand chief executive Steve McCutcheon said the kernels, both with and without skin, posed an acute public health and safety risk.

“Raw apricot kernels contain cyanogenic glycosides, which are broken down to release cyanide when eaten​,” McCutcheon said.

“There have been a number of cases of cyanide poisoning related to consumption of apricot kernels​.”

While some consumers believe the product can help cure or prevent cancer, McCutcheon said there was no credible evidence of this.

The prohibition does not apply to apricot kernel-derived ingredients, which can be shown to be safe to use as ingredients in other foods.

In September, the Fsanz board approved a proposal to prohibit the sale of raw apricot kernels, which food safety ministers agreed to adopt.

Citing instances of cyanide poisoning in Canada, the proposal noted that such reports sometimes resulted from the consumption of apricot kernels for medicinal or natural health purposes.

It pointed out that in Europe, 15 notifications on cyanide in apricot kernels were transmitted through the Rapid Alert System for Food Feed database of the European Commission between 2005 and 2008.

The proposal was prepared to assess the public health risks of some foods derived from plants containing cyanogenic glycosides and to develop appropriate risk management strategies for them, including a need for food regulatory measures in the food standards code.

Palau ratifies international illegal fishing agreement​

The island nation of Palau has become the first Pacific island state to ratify an international agreement to combat illegal fishing, which the FAO estimates will deprive the global economy of up to US$23bn each year and endanger biodiversity.​

"I welcome Palau's ratification of the Port State Measure Agreement as the first-ever country in the Pacific to have done so​," said José Graziano da Silva, secretary general of the Food and Agriculture Organisation of the United Nations, on the sidelines of the United Nations climate conference in Paris. 

"I hope this will encourage other small islands to do the same, as they are heavily dependent on fisheries, and for that reason, particularly vulnerable to the negative effects of illicit fishing​.”

Port state measures set standards for inspection of foreign vessels that seek to enter the port of another state. Importantly, the measures allow a country to block ships it suspects of having engaged in illicit fishing and thereby prevent illegally caught seafood from entering local and international markets.

Illegal, unreported and unregulated (IUU) fishing practices may account for as much as 26m tonnes of seafood each year, or more than 15 % of the total global output, the FAO estimates.